The Central Board of Direct Taxes (CBDT) recently issued clarifications on the Common Application Form (CAF) for Foreign Portfolio Investors (FPIs) under the new Income-tax Rules, 2026. The clarifications address practical issues arising from additional requirements introduced in the revised PAN (Permanent Account Number) application process, particularly around Representative Assessee (RA) / Authorised Representative (AR) information.
Recent development
Clarifications issued by CBDT
KPMG comment
These clarifications should simplify FPI onboarding and reduce documentation requirements for PAN applications. In particular, the guidance provides operational flexibility and clarifies that an authorized signatory does not assume broader tax liabilities through the CAF process.
As a result, we expect this will ease the current practical compliance challenges faced by FPIs investing into India and simultaneously support a more streamlined registration process.
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