November 2023 / India

October 13 2023

India Allows Non-residents, Foreign Companies to Open, Operate Accounts in IFSC Banking Units Without Tax Registration

The Central Board of Direct Taxes (CBDT) has issued a notification that a tax registration number or permanent account number (PAN) is not required for non-resident taxpayers and foreign companies opening accounts in the International Financial Services Centres (IFSC) banking units, provided they file Form 60 and do not have any other taxable income in India.

More specifically, the notification provides as follows:

  • a non-resident (not being a company) or a foreign company, having no taxable income in India, is not required to quote a PAN or Aadhar number while making deposits, withdrawals or opening bank accounts with IFSC banking units; and
  • a foreign company, having no PAN and no taxable income in India, can execute specific transactions with an IFSC banking unit by filing Form 60 (as amended in the same notification).
The full text of notification 88/2023, dated 10 October 2023 is availableĀ here.