Budget 2020: In areas of ease of compliance, one such amendment proposed by the Finance Minister is to extend exemption to non-residents from filing annual income-tax return in India in additional cases.
Budget 2020 was presented by the Hon’ble Finance Minister on 1 February 2020. The Budget is woven around three prominent themes “Aspirational India, Economic Development for All and A Caring Society”. From the tax perspective, apart from the reform measures already taken so far, it is focused on crucial aspects such as ‘stimulate growth, simplify tax structure, bring ease of compliance, and reduce litigations’.
The current government has put a lot of thrust on manufacturing in India, promoting start-ups, developing job opportunities, widening and deepening of tax base, tax certainty, reducing litigations and simplifying tax laws.
In areas of ease of compliance, one such amendment proposed by the Hon’ble Finance Minister is to extend exemption to non-residents from filing annual income-tax return in India in additional cases.
Under the provisions of the Income Tax Act, 1961 (the Act), specific tax rates have been prescribed for different categories of income.
Further, a non-resident is currently not required to file his return of income, if his total income consists only of dividend or interest income and TDS on such income has been deducted according to the provisions of the Act.
Non-residents earning royalty or fees for technical services (FTS) from India were, however, still required to file their return of income in India.