The Income-tax (Twenty-fourth Amendment) Rules, 2023 were notified on October 10, 2023, by the Central Board of Direct Taxes (CBDT). These rules amend the Income-tax Rules, 1962, to exempt non-resident individuals (not being companies) and foreign companies from submitting Form 60 in respect of certain transactions specified under Rule 114B of the Income-tax Rules, 1962, provided that:
- the transaction is entered into with an IFSC banking unit, and
- the non-resident individual or foreign company does not have any income chargeable to tax in India.
This exemption is intended to simplify the compliance burden on non-resident individuals and foreign companies and to promote ease of doing business in India.
Here is a summary of the key amendments made by the Income-tax Twenty-fourth Amendment Rules, 2023
- Exemption from Form 60 for non-resident individuals and foreign companies: Companies and firms that are involved in transactions specified under Rule 114B of the IT Rules cannot submit Form 60 to the Income-tax Department if the other party to the transaction is a non-resident individual or foreign company that does not have any income chargeable to tax in India.
- New conditions for claiming deduction under section 194R: To claim deduction under section 194R of the IT Act, the deductee must ensure that the deductee has provided a valid Taxpayer Identification Number (TIN) and that the payment is made through a banking channel.
These amendments are aimed at simplifying the tax compliance process for businesses and individuals, and to reduce tax evasion.
Click here to view/download the official notification
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