NOTIFICATION No. 04/2024 F. No. 370142/48/2023-TPL, DATED 04-01-2024

The Ministry of Finance, through the Central Board of Direct Taxes, has issued a significant notification under clause (4G) of section 10 of the Income Tax Act, 1961. Dated January 4, 2024, Notification S.O. 66(E) focuses on the activity of investment in a financial product by non-residents. This investment is facilitated through a contract with a capital market intermediary, specifically, a Unit of an International Financial Services Centre (IFSC). The notification outlines the conditions under which such investments will be recognized, especially when the income is received in the non-resident’s account with the Offshore Banking Unit of the IFSC, as mentioned in section 80LA. This is a progressive step towards facilitating non-resident investments. By streamlining the process through recognized IFSC Units and aligning with section 80LA, the government aims to attract foreign investment while ensuring clarity on tax implications. This move is expected to stimulate offshore banking activities and enhance the role of IFSCs in financial markets.

NOTIFICATION No. 16/2024 F. No. 370142/49/2023-TPL 24-01-2024

Recently, the Central Board of Direct Taxes (CBDT) released a significant notification, identified as Notification No. 16/2024 on January 24, 2024. This notification introduces the revised Income Tax Return (ITR) Form ITR-6 tailored for companies (excluding those eligible for exemption under section 11) for the Assessment Year (A.Y.) 2024-25. The modifications in the form are scheduled to be implemented starting April 01, 2024.