Section 285 applies to every non-resident that has a liaison office in India set up under the guidelines issued by the Reserve Bank of India under the Foreign Exchange Management Act, 1999. In respect of its activities in a financial year, the non-resident must prepare and deliver to the Assessing Officer having jurisdiction a statement in the prescribed form, containing the prescribed particulars, within the prescribed period.
The time limit is now left to the rules. The Act's note records that the words "such period, a statement" were substituted for "sixty days from the end of such financial year, a statement" by Act No. 15 of 2024, with effect from 1-4-2025.
Operative consequences
The statement is an annual obligation tied to the liaison office's activities in each financial year.
Failure to furnish the statement within the prescribed period attracts a penalty under s. 271GC of one thousand rupees for every day the failure continues, if the failure does not exceed three months, or one lakh rupees in any other case.
The statement goes to the Assessing Officer having jurisdiction over the non-resident.
Status
Section 285 is operative for assessment year 2026-27. It is not time-limited. The Finance Act, 2026 did not amend this section.
The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 505, with the penalty in s. 460.
Function in the statutory architecture
Section 285 applies to every non-resident that has a liaison office in India set up under the guidelines issued by the Reserve Bank of India under the Foreign Exchange Management Act, 1999. In respect of its activities in a financial year, the non-resident must prepare and deliver to the Assessing Officer having jurisdiction a statement in the prescribed form, containing the prescribed particulars, within the prescribed period.
The time limit is now left to the rules. The Act's note records that the words "such period, a statement" were substituted for "sixty days from the end of such financial year, a statement" by Act No. 15 of 2024, with effect from 1-4-2025.
Operative consequences
Status
Section 285 is operative for assessment year 2026-27. It is not time-limited. The Finance Act, 2026 did not amend this section.
The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 505, with the penalty in s. 460.