The Ministry of Finance (Department of Revenue), through the Central Board of Direct Taxes (CBDT), has issued Notification No. 14/2025, introducing amendments to the Income-tax Rules, 1962.

The key changes include:

• Amendment to Rule 114DA: The phrase “Form No. 49C” has been replaced with “Form No. 49C within eight months from the end of such financial year,” thereby specifying a clear timeline for submission. Earlier it was 60 days from the end of such financial year.
• Revised Form No. 49C: Appendix-II has been updated with a new format of Form No. 49C, which requires non-resident entities with liaison offices in India to submit detailed annual statements.

The revised Form No. 49C includes:

1. Details of the Non-Resident Person: Name, registered office details, principal office in India, PAN (if allotted), and tax identification number of the country of incorporation.
2. Chartered Accountant Details: Information of the CA signing the Annual Activity Certificate for RBI compliance.
3. Liaison Office Information: Registration details, date of approval, activities undertaken, employee count, and financial transactions.
4. Employee & Financial Information: Salary details of employees working in the liaison office and financial data related to receipts, expenses, and transactions with Indian entities.

What It Means

This amendment enhances compliance requirements for non-resident entities operating liaison offices in India. By mandating a more detailed disclosure format and a specific timeline for submission, the CBDT aims to increase transparency and ensure better tracking of non-resident business activities in India. The revised form requires comprehensive financial and operational details, making it essential for non-resident entities to maintain accurate records and adhere to reporting obligations.