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Tax Return Filings for FPI

Tax advisors in India are well-equipped to provide such compliance services to FPIs

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Original Return
Eligibility Due Date
FPIs are required to file an Income-tax return in India if:
  1. It is incorporated as a company or a partnership firm, regardless of income level.
  2. Has any income chargeable to tax in India (such as capital gains, interest, or dividends).
  3. Has deposited INR 10 million or more in its current accounts maintained with the local custodian in India, irrespective of whether it has taxable income in India.
  4. The aggregate amount of tax deducted or withheld during the financial year exceeds INR 25,000, irrespective of whether it has taxable income in India.
  5. It intends to claim a refund of taxes withheld at source.
  6. It seeks to carry forward losses to future years.
TAXPAYER FILING DATE
Non-corporate taxpayer Before 31 July following the financial year*
Corporate taxpayer Before 31 October following the financial year*

* Extended to 30 November, where transfer pricing provisions apply to the taxpayer. Income tax returns may be subjected to scrutiny proceedings.
Belated Return
Eligibility Implications Due Date
FPIs who fail to file their income tax return within the original due date can still file a belated return.
  1. Fee for default in filing return of income, levied under Section 234F shall be applicable as follows:

    2. Total Income Fee under section 234F
    > INR 500,000 INR 5,000
    < INR 500,000 INR 1,000
  2. Additionally, interest may be levied under Sections 234A (delay in filing), 234B (shortfall in advance tax), and 234C (deferment of advance tax) of the Act.
  3. Carry forward of capital losses shall not be allowed in case the original return of income is not filed within the due date i.e., belated.
  1. The belated return must be filed on or before 31st December of the relevant assessment year, or before the completion of assessment, whichever is earlier. This due date may be extended by the CBDT via circular/ notifications.
  2. A belated return can be revised before 31st December of the relevant assessment year.
Revised Return
Eligibility Implications Due Date
An FPI may file a revised return as per the provisions of the Act, under the following conditions:
  1. The original or belated return has already been filed.
  2. There is a discovery of any omission or wrong statement in the previously filed return.
  1. A return can be revised multiple times within the allowed period
  2. Filing a revised return replaces the original/belated return and only the latest filed return is considered as valid.
The revised return must be filed on or before 31st December of the relevant assessment year or before the completion of assessment, whichever is earlier.
Updated Return
Eligibility Implications Due Date
Introduced via the Finance Act 2022, the updated return allows taxpayers to voluntarily disclose additional income or correct omissions, even if no return was filed earlier.
  1. Can be filed by any person, whether or not any original, belated or revised return was filed.
  2. Must be filed in the prescribed form, verified appropriately.
 An Updated Return cannot be filed if:
  1. Updated return has already been filed for the relevant assessment year.
  2. It is a return of loss.
  3. It reduces the total tax liability compared to the previously filed return.
  4. It results in a refund or increases the refund claimed in the earlier return.
  5. Assessment/reassessment proceedings are ongoing.
  6. A search/survey/requisition has been conducted under Sections 132/132A/133A.
An updated return must be filed within 4 years from the end of the relevant assessment year. An additional tax is required to be payable while filing an updated return, the details of which have been provided below.

Time Limits & Additional Tax:

Time from End of AY Additional Tax Payable
Within 12 months 25% of additional tax (tax + interest)
Within 24 months 50% of additional tax (tax + interest)
Within 36 months 60% of additional tax (tax + interest)
Within 48 months 70% of additional tax (tax + interest)