Income Tax – Agents of Non- Residents need not file electronic returns
It has been brought to the notice of the CBDT that the agents of non-residents, within the meaning of section 160(1)(i) of the Income-tax Act, are facing difficulties in electronically furnishing the returns of non-residents. This is because of the reason that there may be more than one agent for a non-resident in India for different transactions or a person in India may be an agent of more than one non-resident. Such situations are not covered by the existing software which functions on the principle of one assessee – one PAN – one return.
Accordingly, it has been decided by the Board that it will not be mandatory for agents of non-residents, within the meaning of section 160(1)(i) of the Income-tax Act, to electronically furnish the returns of non-residents for assessment year 2008-09. A circular has been issued by the Board (Circular no. 8/2008 dated 22.09.2008) to clarify the above position.
All our efforts to trace this circular failed. We will bring it to you later in the day.