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CMA Intermediate · Direct and Indirect Taxation · PAN

Ms. Fiona Dsouza, not domiciled in India, visited India as a foreign tourist for sightseeing. Another visitor, Mr. Hans Weber, not domiciled in India, came to India for business and has Indian-source income. Considering the provisions of the Income-tax Act, 2025, which statement is correct?

The undertaking requirement does not apply to a non-domiciled foreign tourist or visitor whose purpose is unconnected with business, profession or employment. A non-domiciled visitor who came for business and has Indian-source income must furnish the undertaking, subject to any notified exceptions.

  1. ABoth must furnish an employer undertaking before leaving India
  2. BNeither is subject to any requirement before leaving India
  3. CFiona is outside the undertaking requirement, whereas Hans must furnish the undertaking, subject to notified exceptionsCorrect
  4. DFiona must furnish the undertaking, while Hans is exempt because his visit is short

Explanation

Section 420(2) states that sub-section (1) does not apply to a non-domiciled person visiting India as a foreign tourist or for any purpose not connected with business, profession or employment. Hans, who came for business and has Indian-source income, falls within sub-section (1) and needs the undertaking.

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