No need for NRIs to disclose foreign directorships in tax returns: Indian tax authority

India’s tax authority clarified that non-resident Indians (NRIs) and foreign citizens who are required to file income tax returns in India will not need to disclose their directorships in foreign companies that do not generate income from India in their tax return forms. 

The income tax return (ITR) forms for FY 2018-19 earlier this year introduced a new column regarding details about directorships of NRIs and other non-residents
The income tax return (ITR) forms for FY 2018-19 earlier this year introduced a new column regarding details about directorships of NRIs and other non-residents. Photo courtesy: Flickr

The Central Board of Direct Taxes (CBDT) decision ahead of the August 31 income tax return filing deadline is welcome news for several NRI businessmen and top executives.

“It is hereby clarified that a non-resident shall not be required to disclose details of his directorship in a foreign company, which does not have any income received in India, or accruing or arising in India,” CBDT said.

In addition, a non-resident taxpayer who is a director in an Indian company and also in a foreign company which does not have any income received in India, accruing or arising in India would only need to provide details of directorship in the Indian company, the Indian tax authority said.

The income tax return (ITR) forms for FY 2018-19 earlier this year introduced a new column regarding details about directorships of NRIs and other non-residents such as their Director Identification Number (DIN), name of the company, whether the company’s shares are listed or unlisted and PAN (Permanent Account Number).

The CBDT clarification came in response to leading industry bodies in India making representations against seeking such details for overseas companies in the new tax return forms.

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CtoI News Desk
CtoI News Desk – CtoI

Singapore-headquartered online media company targeting Indian Diaspora across Singapore, US, UK and Dubai. Connected to India covers developments around Indians abroad, informing, engaging and entertaining its audiences.

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