Section 505
Section 505: annual statement by a non-resident with an Indian liaison office
Section 505 places a reporting obligation on non-residents that operate a liaison office in India under Reserve Bank of India guidelines - they must file a statement of their activities for each tax year.
What Section 505 requires
"Every person, being a non-resident, having a liaison office in India set up as per the guidelines issued by the Reserve Bank of India under the Foreign Exchange Management Act, 1999 (42 of 1999), shall, in respect of its activities in a tax year, prepare and deliver to the Assessing Officer having jurisdiction, a statement, in such form and containing such particulars within such period, as may be prescribed."
Frequently asked questions
Who must file a statement under Section 505?
A non-resident that has a liaison office in India, set up under Reserve Bank of India guidelines issued under the Foreign Exchange Management Act, 1999.
What does the statement need to cover?
The non-resident's activities in India for the tax year, in the form, with the particulars, and within the period, as may be prescribed.
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Talk to our tax team about this sectionLast updated 9 September 2026