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CS Executive · Tax Laws and Practice · Income from Other Sources

A non-resident's total income during the tax year consists only of interest on notified bonds of an Indian company purchased in foreign currency, and tax has been deducted at source under Chapter XIX-B. Under section 209 of the Income-tax Act, 2025, what is the filing position?

The non-resident need not furnish a return. Section 209(4) relieves a non-resident from filing under section 263(1) when total income consists only of such bond interest or GDR dividend and the tax deductible at source under Chapter XIX-B has been deducted.

  1. AReturn must be filed under section 263(1) in all cases
  2. BReturn must be filed only if interest exceeds the basic exemption limit
  3. CReturn is not required to be furnishedCorrect
  4. DReturn is required only if the bonds were held over 24 months

Explanation

Section 209(4) exempts the non-resident from furnishing a return under section 263(1) if total income consists only of Sl. No. 1 and 2 income and tax deductible at source has been deducted. Both conditions are met here. Holding period and exemption limit are irrelevant to this relief.

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