Rule 234: Annual statement in Form No. 162 by a non-resident having a liaison office in India
Section 505 of the Income-tax Act, 2025 requires a non-resident with a liaison office in India, set up under the Reserve Bank of India guidelines issued under the Foreign Exchange Management Act, 1999, to deliver a statement of its activities in a tax year to the Assessing Officer having jurisdiction. Rule 234 prescribes Form No. 162, the time limit of eight months from the end of the financial year, and electronic filing with a digital signature.
Official notified Income-tax Rules, 2026Need advice on Rule 234?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
On this page
Bare law
Rule 234 - Furnishing of annual statement by a non-resident having liaison office in India
(1) The annual statement as provided under section 505 for every financial year, shall be furnished in Form No. 162 within eight months from the end of such financial year.
(2) The annual statement referred to in sub-rule (1) shall be furnished in electronic form along with digital signature, duly verified by the Chartered Accountant or the person authorised in this behalf by the non-resident person, who shall be known as the authorised signatory.
Rule breakdown
Form and time limit: Rule 234(1)
The annual statement under section 505 for every financial year is furnished in Form No. 162 within eight months from the end of that financial year.
Manner of filing: Rule 234(2)
The statement is furnished in electronic form along with a digital signature.
It must be duly verified by the Chartered Accountant or by the person authorised in this behalf by the non-resident person. The rule calls that person the authorised signatory.
Who must file
Section 505 applies to 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. The statement relates to its activities in a tax year.
Key takeaways
Form No. 162
The section 505 annual statement is filed in Form No. 162.
Eight months
File within eight months from the end of the financial year.
Digital signature
File electronically with a digital signature, verified by the Chartered Accountant or the authorised signatory.
Practical checklist
- Diary the eight-month deadline for each financial year.
- Arrange a valid digital signature for the person who will verify the statement.
- Record in writing who the authorised signatory is.
Avoid
- Do not file on paper; Rule 234(2) requires electronic form with a digital signature.
- Do not let an unauthorised person verify the statement.
FAQs
Who files Form No. 162?
A non-resident having a liaison office in India set up under the Reserve Bank of India guidelines issued under the Foreign Exchange Management Act, 1999 (section 505).
What is the due date?
Within eight months from the end of the financial year to which the statement relates (Rule 234(1)).
Who verifies the statement?
The Chartered Accountant or the person authorised in this behalf by the non-resident, called the authorised signatory (Rule 234(2)).
Glossary
- Liaison office
- An office in India of a non-resident set up as per the Reserve Bank of India guidelines under the Foreign Exchange Management Act, 1999 (section 505).
- Authorised signatory
- The person authorised by the non-resident to verify the statement (Rule 234(2)).