Income Tax Rules Amendment: Non-Resident Entities with Liaison Offices in India must File Form 49C within 8 Months of FY-End [Read Notification]

The Ministry of Finance, through the Central Board of Direct Taxes ( CBDT ), has issued Notification No. 14/2025 dated February 7, 2025, introducing the Income-tax (Fourth Amendment) Rules, 2025. This amendment comes into effect from the date of publication in the Official Gazette, and imposes stricter compliance requirements on non-resident entities operating Liaison Offices ( LOs ) in India.

Under the revised rules, foreign Liaison Offices are now required to file Form No. 49C within eight months from the end of the relevant financial year. This amendment modifies Rule 114DA of the Income-tax Rules, 1962, replacing the previous reference to Form No. 49C with the new timeline for submission. These rules titled Income-tax (Fourth Amendment) Rules, 2025

Key Highlights of the Notification:

Amendment to Rule 114DA: Changes in Form No. 49C:

• The words “Form No. 49C” are now replaced with “Form No. 49C within eight months from the end of such financial year”.
• This means non-resident entities with Liaison Offices (LOs) in India must submit Form 49C within 8 months from the financial year-end.

New Format for Form No. 49C (Annexed to the Notification):

1. General Entity Information

• Financial year for which the statement is being submitted.
• Name, contact details, and addresses of the Head Office and Principal Office in India.
• Permanent Account Number (PAN) (if allotted) & Tax Identification Number ( TIN ) from the entity’s home country.
• Date of submission of the Annual Activity Certificate to the Reserve Bank of India (RBI).

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2. Details of Chartered Accountant

• Name and contact details of the Chartered Accountant responsible for signing the Annual Activity Certificate.

3. Employee & Representative Information

• Details of employees working in India, including those receiving compensation from outside India.
• Information about agents, representatives, and distributors associated with the Liaison Office.

4. Liaison Office-Specific Information

• RBI Registration Number of the Liaison Office.
• Nature of activities conducted by the Liaison Office.
• Date of opening of the Liaison Office and RBI approval date.
• List of the top 5 Indian entities with which the Liaison Office engages.

5. Financial Disclosures

• Receipts and expenses incurred in India.
• Details of purchases, sales, and services between Indian and foreign entities.
• Information on other group entities in India, including Branch Offices, LLPs, or Companies.

Verification Requirement: A designated Authorized Signatory must verify the information before submission.

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Click the blue button below to view the new Form 49C in the notification.

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