Skip to content

CMA Final · Direct Tax Laws and International Taxation · Interest and Fees

Under section 207(8) of the Income-tax Act, 2025, when is a non-resident not required to furnish a return of income under section 263(1)?

A return is not needed when total income consists only of the specified section 207(1) items (serial 1 to 7) and section 207(2) royalty and technical fees items, and tax deducted at source was at a rate not less than the rates specified in section 207(1) and (2).

  1. AWhen the total income exceeds the exemption limit but tax has been paid in advance
  2. BWhen total income during the tax year consisted only of specified section 207(1) Table (serial 1 to 7) and section 207(2) Table (serial 1 and 2) income, and tax was deducted at source at a rate not less than the specified ratesCorrect
  3. CWhen the non-resident has no PAN
  4. DWhen the income consists only of any capital gains

Explanation

Section 207(8) gives relief from filing only if both conditions are met: income consists only of the specified dividend, interest, unit, royalty and fees items, and TDS under Chapter XIX-B was at a rate not less than the section 207(1) and (2) rates. Advance tax or capital gains do not qualify.

Did you get it right without looking?

One question tells you little. A timed set on Interest and Fees shows your real accuracy, how long you take and where you lose marks.

Practise Interest and FeesFree diagnostic mock

More Interest and Fees questions