Foreign Cos Without PAN Can Open Bank Accounts in IFSC-GIFT City: CBDT

On October 10, 2023, the Central Board of Direct Taxes (CBDT) notified certain amendments to the Income-tax Rules, 1962, exempting non-resident individuals and foreign companies from submitting Permanent Account Number (PAN) for opening bank accounts at GIFT International Financial Services Centre (IFSC). Instead, they will be required to submit a declaration in Form No.60.

The 1962 rules require the quoting of PAN in documents pertaining to certain transactions such as the sale of immovable property, etc. However, any person not having a PAN could enter into the transactions by making a declaration in Form No.60 in which the details of the transaction have to be provided in the prescribed manner. The new amendment specifies that this particular exemption applies to “any person, not being a company or a firm”.

The notification also extends the exemption to non-resident individuals and foreign companies (not having any income chargeable to tax in India), for opening bank accounts in IFSC banking units. It further modifies Annexure II by providing for the revised Form.