Notices of defective returns were issued under section 139(9) of the Income-tax Act to Foreign Institutional Investors/Foreign Portfolio Investors (FIIs/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:

i) is registered with SEBI

ii) has no Permanent Establishment/ Place of Business in India

iii) has provided basic information required under section 139(9)(f) of the Income-tax Act, if there is business income

All such cases , where the SEBI registration number has been provided by the FIIs/FPIs in the return for AY 2015-16 are being taken up for processing at CPC Bengaluru. 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 (www.incometaxindiaefiling.gov.in) to the previously issued notice u/s 139(9) of the Income-tax Act.

Defective return treatment for foreign portfolio investors: SEBI registration, no permanent establishment and required disclosures avoid defect notices. Returns of FIIs/FPIs will not be treated as defective if the filer is registered with SEBI, has no permanent establishment or place of business in India, and has provided the basic information required under the defective-return information requirement when business income exists; CPC Bengaluru will process AY2015-16 returns with SEBI registration numbers, and FIIs/FPIs for earlier years may submit missing details via the e-filing portal in response to existing defective-return notices.