Foreign investors in alternative investment funds (AIF) operating in an international financial services centre (IFSC) will not require a permanent account number or PAN, the Central Board of Direct Taxes (CBDT) said in a set of new rules notified on Tuesday.
The board exempted foreign investors of AIF category I and II from requiring PAN if the fund deducts tax from their income and details of the investor’s name, address, country of residence and Tax Identification Number of the investor’s territory of residence is provided to the fund.
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“The provisions of section 206AA shall not apply in respect of payments made to a person being a non-resident, not being a company, or a foreign company if the provisions of section 139A do not apply to such person on account of rule 114AAB,” the board said in the notification dated August 10.
Further, the fund will have to furnish quarterly statements for such investors in Form 49 BA, which the board notified separately.
Source: Economic Times