Returns filed by FIIs and FPIs without balance sheet not to be treated defective: CBDT

NEW DELHI: The Central Board of Direct Taxes, the apex direct taxes body, has said returns filed by foreign institutional investors or foreign portfolio investors sans balance sheet or profit and loss account will not be treated as defective.

This would apply to FIIs/FPIs who are registered with Sebi, have no permanent establishment or place of business in India or have provided requisite information.

Notices of defective returns were issued under section 139(9) of the Income-tax Act to FIIs and FPIs in cases where balance sheet and P&L account were not filled.

"In order to overcome this difficulty, it is clarified that such returns will not be treated as defective in cases where the FIIs/FPIs," the CBDT said in a statement on Thursday.

All such cases, where the SEBI registration number has been provided by the FIIs/FPIs in the return for assessment year 2015-16 are being taken up for processing.

For previous assessment years where the above information is not available in the Income Tax Return, FII/FPI may provide such details in their online response on the e-filing portal of the income-tax department.