Contents
Rule 2A-- House Rent Allowance |
Chargeability of HRA |
Exemption under section 10(13A) read with rule 2A |
Conditions for exemption under section 10(13A) |
Payment of rent to wife |
Production of rent receipt |
Rent paid to employee's HUF |
Rent deposited in courts or with rent controller |
House rent allowance received by retired judges |
Assessee receiving HRA as well as rent free accommodation |
Illustration 1 |
Illustration 2 |
Illustration 3 |
Rule 2B-- Leave Travel Concession |
Scheme of section 10(5) |
Meaning of the term "family" |
Conditions as to exemption provided by rule 2B |
Amount of exemption under section 10(5) read with rule 2B |
Exemption only in respect of two journeys in a block of four years |
Carrying over of concession |
Exemption available for two children only |
Exemption where places neither connected by rail nor road |
Purpose or period of leave has no relevance with exemption |
Scope of exemption |
No exemption if LTC spent on overseas journey |
Constitutional validity of rule 2B(a) |
Evidence to be kept preserved |
Rule 2BA-- Amount Received or Receivable on Voluntary Retirement or Termination of Service |
Scheme of section 10(10C) |
Condition precedent for grant of exemption |
Upper limit of exempt amount receivable under Voluntary Retirement Scheme |
Constitutional validity of section 10(10C) |
Provision of section 10(10C) and conditions of rule 2BA both shall be satisfied for exemption being allowed |
Condition of section 10(10C) read with rule 2BA |
Exemption available even in respect of receivable amount |
Companies free to frame different schemes for different categories of employees |
Certain controversial issues answered--Circular No. 640, dated 26-11-1992 |
Amount received under "Optional Early Retirement Scheme" (OERS) entitled to exemption under section 10(10C) |
No exemption can be provided under section 10(10C) in respect of payments received under Voluntary Retirement Scheme, where relief under section 89 obtained |
Institutes of management notified for section 10(10C)(viii) |
Institute notified for the purpose of section 10(10C)(viic) |
Rule 2BB-- Special Allowance |
Purpose of exemption under section 10(14) |
Pre-conditions for section 10(14)(i) |
Pre-conditions for section 10(14)(ii) |
Boarding and lodging expenses of foreign-national employees met directly by employer |
Pocket allowance |
Allowances received by MLAs |
Transport allowance granted to employees of Central Government |
Prescribed allowances for the purpose of section 10(14)(i)--Rule 2BB |
Prescribed allowances for the purpose of section 10(14)(ii)--Rule 2BB(2) |
Illustration |
Rule 2BBA-- Circumstances and Conditions for Purposes of Section 10(19) |
Scheme of section 10(19) |
Circumstances specified by CBDT |
Circumstances to be certified by Head of Department |
Rule 2BBB-- Exemption to Educational Institutions and Hospitals Etc. Covered by Clauses (iiiab)/(iiiac) of Section 10(23C) |
Exemption when available under section 10(23C)(iiiab)/(iiiac) |
Meaning of expression substantially financed by Government |
Percentage of Government Grant for considering university, hospital etc. as substantially financed by the Government for the purposes of section 10(23C) |
Assessee society recognized as government established/sponsored entity |
Rule 2BC-- Exemption to Educational Institutions and Hospitals, Etc. Under Clauses (iiiad)/(iiiae) of Section 10(23C) |
Scheme of exemption under section 10(23C)(iiiad) |
Scheme of exemption under section 10(23C)(iiiae) |
No exemption to anonymous donation referred to in section 115BBC |
Taxability of anonymous donations |
Monetary limits prescribed by rule 2BC for the purposes of section 10(23C) (iiiad)/(iiiae) |
Meaning of "aggregate annual receipt" |
No exemption where institution having profit motive |
Capital receipt not form part of annual receipt for purpose of computing limit of Rs. 1 crore |
No approval required where receipt below one crore |
Exemption available only where institution is an educational or medical institution |
Meaning of 'illness' and medical attention for purpose of section 10(23C)(iiiae) |
Rule 2C [As Applicable Upto 4-11-2019]-- Income of Specified Institutions, Funds, Trusts, Etc., for Charitable Purpose |
Scheme of exemption under section 10(23C)(iv) |
Scheme of exemption under section 10(23C)(v) |
Application for grant of exemption be made |
Prescribed authority can ask for certain documents be produced |
Time period within which application be disposed of |
Power to rescind notification |
Time limit for making of application |
Application of income |
Restriction on application of income |
Investment of funds in specified media |
Income from business--When exempt |
No exemption if receipt from commercial activities exceeds 20% of total receipts |
Institution approved for section 10(23C)(iv)/(v) not eligible to claim general exemption under other clauses of section 10 except for agricultural income |
Validity period of notification |
Making of an application--Rule 2C |
Prescribed authority and specified date for purposes of approval under section 10(23C)(iv)/(v) |
Form of application |
Points to be taken care of while filling the form |
Procedure to be adopted |
Enclosures to application |
Furnishing of any other document and information |
Notified Institutions |
Rule 2CA [As Applicable Upto 4-11-2019]-- Exemption to Educational Institutions and Hospitals having Annual Receipts Exceeding Rs. 1 Crore |
Scheme of section 10(23C)(vi) |
Scheme of section 10(23C)(via) |
Prescribed authority |
Prescribed authority for application received prior to 3-4-2001 |
Prescribed authorities after specified date |
Prescribed authority and specified date for purpose of approval under section 10(23C)(vi)/(via) |
Prescribed form |
Time limit for making application |
Impact of consolidated application for exemption |
Power of Principal Chief Commissioner or Chief Commissioner to condone delay |
Application for approval not to be rejected without specifying grounds therefor |
Approval to institutions specified in section 10(23C)(vi)/(via) to be granted within twelve months of the end of month in which application for approval is made |
Validity period of approval |
Withdrawal of approval by the prescribed authority |
Procedure to be adopted |
Documents required to be annexed |
Furnishing of other documents or information |
No exemption in absence of approval |
Exemption cannot be denied by assessing officer where approval granted |
Rejection of application for approval--Justification under varying circumstances |
Filing of fresh application on rejection of earlier application |
Furnishing of application by society |
Withdrawal of approval |
Sufficient opportunity of being heard to be given |
Clarification on certain issues related to grant of approval and claim of exemption under section 10(23C)(vi) |
Rule 2C [As applicable from 5-11-2019]-- Application for Grant of Approval for Purpose of Exemption Under Section 10(23C)(iv)/(v)/(vi)/(via) |
Substitution of rule 2C and 2CA |
Prescribed authority for purpose of approval under section 10(23C)(iv)/(v)/ (vi)/(via) |
Application for grant of approval under section 10(23C)(iv)/(v)/(vi)/(via) |
Manner of furnishing application |
Authority for laying down related procedures |
Attachments required with Form No. 56 |
Rule 2F-- Guidelines for Setting Up an Infrastructure Debt Fund for Purpose of Exemption Under Section 10(47) |
Exemption to infrastructure debt fund |
Special rate of tax provided for interest received from infrastructure debt fund |
Guidelines for setting up of Infrastructure Debt Fund for the purpose of exemption under clause (47) of section 10 |
Rule 3 Valuation of Perquisites |
Perquisites defined [Section 17(2)] |
Conditions precedent to treat a payment or benefit as perquisite |
Meaning of "specified employee" [Section 17(2)(iii)] |
Valuation of perquisites |
Salary for the purpose of rule 3 [Clause (vi) of Explanation to Rule 3] |
Division of employees in two categories for purpose of valuation of perquisite |
Member of household [Explanation (iv) to Rule 3] |
Perquisite value of accommodation [Rule 3(1)] |
Notional interest on interest-free deposits to landlord |
Perquisite value of concessional accommodation |
Benefits or amenities to specified employees [Section 17(2)(iii)] |
Perquisite should be authorised |
No necessity of agreement between employer and employee |
Benefit to family members not perquisite |
Benefit obtained by assessee director having debit balance with company |
Perquisite value of free supply of gas, electric energy or water, etc. |
Medical expenses incurred abroad reimbursed to director |
Journey by employees from residence to office |
Motor car perquisite [Rule 3(2)] |
Perquisite value of facility of domestic servant i.e. sweeper, gardener, watchman, etc. [Rule 3(3)] |
Perquisite value of free supply of gas, electric energy or water etc. [Rule 3(4)] |
Perquisite value of free or concessional educational facilities [Rule 3(5)] |
Perquisite value of free or concessional transport facility [Rule 3(6)] |
Interest free and concessional loans to employees [Rule 3(7)(i)] |
Valuation of holiday home facility [Rule 3(7)(ii)] |
Free food or beverages to employees [Rule 3(7)(iii)] |
Gift from employer [Rule 3(7)(iv)] |
Membership fees and annual fees of credit card [Rule 3(7)(v)] |
Annual fee or periodical fee to clubs [Rule 3(7)(vi)] |
Valuation of free use of movable assets [Rule 3(7)(vii)] |
Movable asset transferred to employees [Rule 3(7)(viii)] |
Transfer Grant Allowance |
Taxability of certain monetary perquisites |
Perquisite value of any other benefit or amenity and telephone facility [Rule 3(7)(ix)] |
Perquisite value of ESOP [Rule 3(8) and 3(9)] |
Rule 3A-- Medical Perquisite |
Introductory |
Rule 3A |
Rule 4-- Unrealised Rent |
Treatment of unrealised rent |
Conditions precedent for being unrealised rent [Rule 4] |
Rule 5-- Depreciation |
Ingredients of rule 5 |
Section 32 of Income Tax Act |
Applicability of depreciation rates |
Whether Income Tax Rules and rates pertain to substantive or procedural law |
Constitutional validity of special rate of depreciation or exclusion of some asset |
Construction of entry in Depreciation Table in Appendix I of Income Tax Rules |
Rates of depreciation : Block of assets concept [Rule 5(1)] |
Depreciation at half the normal rate if asset used for less than 180 days |
Depreciation to be restricted to 40 per cent in case of domestic company who has exercised option under section 115BA(4) |
Depreciation to power companies [Rule 5(1A)] |
Use of indigenous technology/know-how |
Mandatory deduction under section 32 |
Rates at which depreciation admissible as per Appendix I to Income Tax Rules for rule 5 |
Rates at which depreciation available to units engaged in power generation as per Appendix IA of Income Tax Rules--Rule 5(1A) |
Rule 5A-- Additional Depreciation |
Allowance of additional depreciation |
Additional depreciation at the rate of 35 percent for investment in State of Andhra Pradesh or Bihar or Telangana or West Bengal |
No additional depreciation in certain cases |
No relevance of rule 5A as of now |
Rule 5AC-- Tea or Coffee or Rubber Development Account |
Scheme of section 33AB |
Amount of deduction |
Audit requirements |
Form of audit report--Rule 5AC |
Rule 5AD-- Site Restoration Fund |
Scheme of section 33ABA |
Amount of deduction |
Audit requirements |
Form of audit report as per rule 5AD |
Rules 5C, 5D, 5E and 5F-- Guidelines, Form, Manner and Conditions Precedent in Respect of Approval Under Secs. 35(1)(ii)/(iii) & 35(1)(iia) |
Introduction |
Meaning of 'Scientific research and Scientific research expenditure |
Deduction in respect of expenditure incurred by assessee himself [Section 35(1)(i)] |
Deduction in respect of contribution to an outside agency |
Deduction to be allowed to a person carrying on business or profession if he makes payment to a company carrying on scientific research [Section 35(1)(iia)] |
CBDT empowered to prescribe guidelines, the manner and the conditions for granting approval for the purpose of section 35(1)(ii)/(iii) |
Notification issued by CBDT to prescribe guidelines, the manner and relevant conditions |
Guidelines, form and manner for approval |
Conditions subject to which approval is to be granted to a Research Association under clause (ii) or clause (iii) of sub-section (1) of section 35 |
Conditions subject to which approval is to be granted to a University, College or other Institution under clause (ii) and clause (iii) of sub-section (1) of section 35 |
Details to be furnished in Form No. 3CF-I |
Annexure to be furnished with Form 3CF-I |
Form No. 3CF-II |
Summary of the procedure for approvals to scientific research institutions |
Prescribed authority, guidelines, form, manner and conditions for approval under section 35(1)(iia) |
Rule 5G-- Option Form for Taxation of Income from Patent Under Section 115BBF |
Scheme of taxation of income from patent |
Exercise of option |
Form and manner for exercising option |
Time limit for furnishing Form 3CFA |
Authority for administering procedure |
Rule 6-- Expenditure on Scientific Research |
Provisions relating to deduction under section 35 in a tabular form |
Rule 6--What it provides |
Conditions for approval of a programme under section 35(2AA) [Rule 6(7)] |
Conditions for approval of expenditure for purpose of section 35(2AB) [Rule 6(7A)] |
Prescribed authority for purpose of rule 6 |
Approval by DSIR vis-a-vis deduction under section 35(2AB) |
Relevant case law |
Rule 6A-- Expenditure for Obtaining Right to Use Spectrum for Telecommunication Services Programmes |
Amortisation of spectrum fee for purchase of spectrum for telecommunication services |
Meaning of "payment has actually been made" |
Recomputation of total income where assessee failed to comply with requisite conditions in case of deferred payment |
Rule 6AAA-- Deduction in Respect of Payment to Associations and Institutions for Carrying Out Rural Development Programmes |
Scheme of deduction under section 35CCA |
Conditions precedent for allowability |
Deduction not to be denied merely on ground of withdrawal of approval subsequently |
Prescribed authority for purposes of section 35CCA |
Rule 6AAD and 6AAE-- Guidelines for Approval of Agricultural Extension Project Under Section 35CCC and Conditions Subject to Which an Agricultural Extension Project is to be Notified Under Section 35CCC |
Allowability of weighted deduction for expenditure on notified agricultural extension project under section 35CCC |
No deduction under any other provisions of the Act |
Guidelines for approval of agricultural extension project under section 35CCC |
Conditions subject to which an agricultural extension project is to be notified under section 35CCC |
Rule 6AAF, 6AAG and 6AAH-- Guidelines and Conditions Regarding Skill Development Project for Purpose of Deduction Under Section 35CCD |
Deduction when available in respect of expenditure on skill development project |
Guidelines for approval of skill development project under section 35CCD |
Conditions subject to which a skill development project is to be notified under section 35CCD |
Meaning of certain expressions used in rule 6AAF and rule 6AAG |
Rule 6AB-- Amortisation of Preliminary Expenses, Etc. |
A. PROVISIONS OF SECTION 35D |
Introductory |
Extension of provisions of section 35D to all sectors |
Heads of qualifying expenditure |
Provision for audit |
Form of audit report |
B. Provisions of Section 35E |
Basic scheme of section 35E |
Audit provisions [Section 35E(6)] |
Form of audit report |
Rule 6ABA-- Provision for Bad and Doubtful Debts |
Introduction |
Quantum of deduction in case of scheduled bank/Non-scheduled bank/co-operative bank |
Rural branch--Meaning of |
Scheduled bank--Meaning of |
Non-scheduled bank--Meaning of |
Co-operative bank--Meaning of |
Computation of the aggregate of average advances |
Distinction between rural and other advances eliminated while computing deduction for bad and doubtful debts in case of banks |
Deduction in respect of special reserve |
Quantum of deduction under section 36(1)(viii) |
Ceiling over the quantum of deduction under section 36(1)(viii) |
Meaning of 'specified entity' for purpose of section 36(1)(viii) |
Meaning of 'eligible business' for purpose of section 36(1)(viii) |
Conditions to be fulfilled for being notified as public facility for the purpose of section 36(1)(viii) |
Rule 6DD-- Disallowance of Cash Payments |
Cash payments exceeding specified limit not allowable under section 40A(3) |
Exceptions provided by rule 6DD |
Exceptions specified in rule 6DD now not cover unavoidable or exceptional circumstances |
Scope of the term expenditure |
Meaning of 'cheque' and scope of 'bank' referred to under section 40A(3) |
Purchase of stock-in-trade, whether expenditure to be covered under section 40A(3) |
No disallowance can be made under section 40A(3) where flat rate of profit applied |
Applicability of section 40A(3) to loan transaction |
Section 40A(3) attracted to payments made at a time and not to the aggregate amount |
Explanation regarding scope, operation and exceptions of section 40A(3) |
Section 40A(3) applicable to all categories of expenditure for which deduction is available in the computation of taxable income |
Some important observations |
Rule 6DD, not an aid to construction of section 40A(3) |
Burden of proof |
Payment to sister concern under compelling situation, on banker's imposing certain conditions |
Payment to government or on behalf of government covered by clause (b) of rule 6DD |
Cash payment not made directly to producer of forest produce |
Payment to producer of chickens |
Payment to suppliers of hide and skin covered by rule 6DD hence not disallowable |
Payment after banking hours |
Purchaser and seller both have no bank account in the place of transaction |
Payment on bank holiday |
Payment for outstanding balance and not for purchase of goods |
Payment in cash allowable where genuineness of transaction not in doubt |
No exceptional circumstances existed--Payment in excess of specified limits disallowable |
Foreign currency exchanged under RBI permission |
Applicability of rule 6DD in case cash payments made to employee for purchase of goods |
Payments made in cash at a place where banking facilities were available |
Cash payment made for purchase of agricultural produce |
Processed fish whether covered by exception |
Payment made to co-operative milk producers union |
Payment through agent--Applicability of rule 6DD(k) |
Rules 6DDA and 6DDB-- Conditions and Notifications for Purposes of Clause (d) of Proviso to Section 43(5) |
Derivative transaction not to be treated as speculative transaction |
Meaning of recognised stock exchange |
Conditions required to be fulfilled by a stock exchange |
Notification of a recognised stock exchange for the purposes of clause (d) of proviso to section 43(5) |
Rule 6DDC and 6DDD-- Conditions and Notification as to Recognised Association for Purpose of Section 43(5)(e) |
Speculative transactions--Meaning of |
Meaning of--Eligible transaction in commodity |
Meaning of--Commodity derivative |
Recognised association--Meaning |
Recognised Association |
Conditions that a recognised association is required to fulfil to be notified as a recognised association for the purposes of clause (e) of the proviso to section 43(5) |
Notification of a recognised association for the purposes of clause (e) of the proviso to section 43(5) |
Rule 6E-- Limits of Reserve for Unexpired Risks |
Section 44 of Income Tax Act |
Manner of computation of reserve for unexpired risks |
Rule 6EA-- Provisions in Case of Income of Public Financial Institution, Etc. |
Scheme of section 43D |
Applicability of section 43D |
Categorization of bad and doubtful debts as per RBI Guidelines vis-a-vis rule 6EA |
Rule 6EB-- Categories of Bad or Doubtful Debts in the Case of a Public Company |
Scheme of section 43D |
Categories of bad or doubtful debts in the case of a public company |
Rule 6F-- Maintenance of Books of Account |
Compliance with section 44AA |
Requirement to maintain specified accounts |
Books of account specified under rule 6F |
Additional books in case of medical profession |
Place of keeping account books |
Preservation of records |
Penal provision |
Rule 6G-- Report of Audit of Accounts |
Applicability of section 44AB |
Applicability in case of non-residents |
Exemptions |
Relaxation |
Penalty on assessee's failure to get its accounts audited |
Section 44AB is constitutionally valid |
Specified date |
Who can conduct audit |
Audit report : Prescribed forms |
Rule 6GA-- Report of Audit Under Section 44DA |
Introduction |
Conditions precedent for applicability |
Compulsory audit of accounts |
Form of audit report |
Rule 6H-- Report in the Case of Slump Sale |
Introduction |
Cost of acquisition and cost of improvement in case of slump sale |
Furnishing of certificate of a Chartered Accountant specifying that the net worth of undertaking correctly claimed |
Form of report of an accountant |
Rule 7-- Income Which is Partially Agricultural and Partially from Business |
Introductory |
Method of computing of income of business arising from agricultural operations [Rule 7] |
Allowability of expenses while apportioning : Rule 7(1) |
Market value : Rule 7(2) |
Additional price payable to cultivators of sugarcane |
Rule 7A-- Income from Manufacture of Rubber |
Statutory backdrop |
Computation of income from manufacture of rubber |
Rule 7B-- Income from Manufacture of Coffee |
Statutory backdrop |
Computation of income from manufacture of coffee |
Rule 8-- Income from Tea Manufacturing |
Statutory backdrop |
Discretionary power of the assessing officer |
Apportionment of income in respect of tea grown and manufactured by the seller [Rule 8(1)] |
Computation by applying rule 8 |
Agricultural Income Tax Officer bound by apportionment under Central Act |
Lessee also entitled to apportionment |
Salary and interest to partner of firm running a tea estate--Apportionment |
Commission paid to managing partner |
Constitutional validity of rule 8 |
Basic agricultural and subsequent manufacturing operations to be carried out by same person |
Receipt under insurance policy for damage to tea gardens |
Sale of scrap and miscellaneous garden income |
Premium on import licence |
Interest received on loan--Not income from sale of tea |
Allowance to be made in respect of cost of planting fresh bushes [Rules 8(2)] |
Rule 8 of Income Tax Rules--Effect on 60% : 40% formula of Supreme Court decision that manufactured and packed tea is agricultural produce |
Cess on green leaf--Treatment thereof |
Rule 8AA-- Method of Determination of Period of Holding of Capital Assets in Certain Cases |
Relevance of rule 8AA |
Determination of period of holding of capital assets other than those mentioned in Explanation 1(i) of section 2(42A) |
Period of holding in case of share or debenture became property under section 47(x) |
Period of holding in case of capital asset declared under IDS, 2016 |
Period of holding in case of conversion of branch of foreign company referred to in section 115JG |
Rule 8B-- Notification of Zero Coupon Bond |
Meaning of "zero coupon bond" |
Application for notification of a bond |
Documents to be filed with application |
Conditions to be fulfilled while specifying a zero coupon bond by notification |
Particulars to be given by the Central Government while specifying to the bond by notification |
Rejection of application for notification |
Submission of certificate from a Chartered Accountant specifying amount of investment in each year by infrastructure capital company or fund |
Power to withdraw notification |
Meaning of 'discount' and 'period of life of bond' |
Rule 8C-- Calculation of Pro-rata Amount of Discount on Zero Coupon Bond |
Allowability of discount on zero coupon bond |
Computation of pro-rata amount of discount |
Rule 8D-- Method for Determining Amount of Expenditure in Relation to Income not Includible in Total Income |
Disallowance of expenditure under section 14A |
Assessing officer empowered to determine amount of expenditure incurred in relation to exempt incomes |
Method for determining amount of expenditure in relation to income not includible in total income |
Disallowance cannot exceed expenditure incurred by the assessee |
Applicability of rule 8D of Income Tax Rules, 1962 and disallowance of expenses related to exempt income |
Computation of disallowable expenses |
Applicability of rule 8D |
Assessing officer when can invoke rule 8D |
Justifiability of disallowance under section 14A where no expenditure incurred for earning exempt income |
Invocation of rule 8D vis-à-vis computation of book profit under section 115JB |
Interest-free funds available with assessee were more than the investment for exempt income |
Rule 8D applicable to investments and not to stock-in-trade |
Assessee earned no exempt income |
Investment in shares of group companies to get controlling stake |
Various issues relevant to section 14A clarified by Delhi High Court in Maxopp Investment Ltd. & Others v. CIT & Others |
Clarification regarding disallowance of expenses under section 14A of the Income Tax Act in cases where corresponding exempt income has not been earned during the Financial Year--Circular No. 5/2014, dt. 11-2-2014 |
Rule 9A-- Deduction in Respect of Expenditure on Production of Feature Films |
Introduction |
Eligible assessee |
Deduction of cost of production in respect of feature film released for exhibition on a commercial basis at least 90 days in any previous year |
Deduction of cost of production in respect of any feature film released for exhibition on a commercial basis for less than 90 days in any previous year |
Condition precedent |
Power of assessing officer |
What constitutes cost of production in relation to a feature film |
Constitutional validity |
Timing of deduction of cost |
Allowability of post production expenses |
Recent decision of Bombay High Court in Dharma Productions case |
Non-applicability of Rule 9A in the case of abandoned feature films |
Rule 9B-- Deduction in Respect of Expenditure on Acquisition of Distribution Rights of Feature Films |
Eligible assessee |
Deduction of cost of acquisition in respect of feature film released for exhibition on a commercial basis for at least 90 days in previous year |
Deduction of cost of acquisition in respect of any feature film released for exhibition on a commercial basis for less than 90 days in any previous year |
Conditions precedent |
Applicability of rule 9A vis-a-vis rule 9B |
Rule 9C-- Conditions for Carrying Forward or Set-Off of Accumulated Loss and Unabsorbed Depreciation Allowance in Case of Amalgamation |
Scheme of section 72A |
Conditions to be fulfilled for availing of benefit under section 72A |
Conditions notified by the Central Government |
Rule 10-- Determination of Income in Case of Non-Residents |
Introductory |
Applicability of rule 10 |
Apportionment of income by the assessing officer |
Recommendation by CBDT Committee regarding attribution of profit |
Transaction not connected with the activities of business in India to be taken into account |
Destination earnings collected in India--To be treated as part of Indian earning |
Depreciation actually allowed--Treatment thereof |
Determination of extent of income reasonably attributable |
Extension of apportionment of profit not to money-lending business |
Manufacture, purchase and sale in taxable and non-taxable territories |
Apportionment of losses as well |
Rules 10A to 10CA-- Determination of Income from International Transactions or Specified Domestic Transaction Having Regard to Arm's Length Price |
Significance of arm's length price |
Computation of arm's length price |
Important terminologies |
Other method of determination of arm's length price for purposes of section 92C(1)(f) |
Determination of arm's length price |
Comparable uncontrolled price (CUP) method |
Resale price method (RPM) |
Cost plus method |
Profit split method |
Transactional net margin method (TNMM) |
Any other method as provided in rule 10AB |
Aggregation of transactions |
Comparability of international transaction or specified domestic transaction with an uncontrolled transaction--How to be judged? |
List of factors illustrative rather than exhaustive |
Rule 10B whether directory or mandatory |
Uncontrolled transaction when shall be comparable to an international transaction or specified domestic transaction |
Rules as to adjustment of difference |
Data of which year to be used? |
First proviso not applicable in relation to transactions entered into on or after 1-4-2014 |
Data to be used in respect of transactions entered into on or after 1-4-2014 and method employed for determining ALP is RPM, CPM or TNMM |
Selection of comparable cases |
Benchmarking of comparables |
Adoption of different methods for different payments |
Inclusion of new comparables at appellate stage |
Most appropriate method |
Computation of arms length price as per rule 10CA where more than one price is determined by applying most appropriate method |
Important terms relevant to rule 10CA |
Illustrations |
Applicability of TNMM method or CUP method |
Resale price method vis-a-vis TNMM method |
External TNMM or internal TNMM |
TNMM vis-a-vis internal cost plus method (CPM) |
Traditional transaction method vis-a-vis transaction profit method |
External CUP method vis-a-vis Internal CUP method |
Determination of ALP by cost plus method |
Applicability of TNMM and examination of comparables bench making ALP |
Method for determining ALP |
Relevance of rule 10B(1)(b) |
Application of provisions in case of receipt of dividend from associated enterprise |
Clubbing of transactions linked with each other |
Adjustment on account of working capital differences |
Rule 10CB-- Secondary Adjustments in Transfer Pricing [Rule 10CB] |
What is secondary adjustment |
Meaning of primary adjustment |
Secondary adjustment when to be made |
No secondary adjustment in certain cases |
No refund of taxes already paid under pre amended provision |
Excess money and secondary adjustment |
Treatment of excess money |
Option to assessee to pay additional income-tax on excess money not repatriated in time |
Computation of interest income pursuant to secondary adjustment |
Computation of interest where excess money not repatriated within prescribed time limit |
Meaning of 'international transaction' |
Rate of exchange for calculation of value in rupees |
Rule 10D-- Keeping and Maintenance of Information and Documents in Case of International and Specified Domestic Transactions |
Requirement as to keeping and maintaining information and documents |
Time limit for furnishing requisite information or documents |
Nature of information and documents to be kept and maintained |
Exemption provisions |
Information and documents to be maintained by a Government company engaged in the business of generation, supply, transmission or distribution of electricity |
Information and documents to be maintained by a co-operative society engaged in the business of procuring and marketing milk and milk products |
Supporting documentation |
Time limit upto which information and documents required to be kept ready |
Documents when not maintained as per rule 10D |
Period of maintenance of documents, etc. |
Rule 10DA-- Keeping and Maintenance of Information and Documents by Constituent Entity in Respect of an International Group |
Requirement as to keeping and maintaining information and documents |
Meaning of constituent entity |
Meaning of international group |
Information and documents to be kept and maintained by constituent entity |
Furnishing of report of the information |
Furnishing of information in case of more than one constituent entities resident in India |
Authority responsible for specifying procedure |
Time period for keeping and maintaining information and documents |
Rate of exchange for calculating value of transaction |
Meaning of certain terms relevant to rule 10DA |
Rule 10DB-- Furnishing of Report in Respect of International Group |
Reporting requirement in respect of international group |
Duty of constituent entity |
Furnishing of report |
Case of entity other than referred to in section 286(2) |
Determining accuracy of report |
Non-applicability of provision of section 286 |
Authority prescribed for evolving and implementing appropriate policies under rule 10DB |
Meaning of various terms used in rule 10DB |
Consequence for failure in furnishing report under section 286 |
Rule 10E-- Audit Report in Case of International and Specified Domestic Transaction |
Requirement of audit report in case of international transaction and specified domestic transaction |
Form and manner for furnishing audit report |
Rules 10F to 10T-- Advance Pricing Agreement Scheme |
Advance pricing agreement for international transaction |
CBDT empowered to prescribe scheme specifying manner, form, procedure etc. in respect of advance pricing agreement |
Meaning of expressions used in matters in respect of advance pricing agreement |
Person eligible to enter into an agreement |
Mechanism for pre-filing consultation |
Procedure for filing application for advance pricing agreement |
Withdrawal of application for agreement |
Preliminary processing of application |
Procedure after application allowed to be proceeded with |
Terms of agreement |
Roll Back of the Agreement |
Possibility of amendments to application [Rule 10N] |
Furnishing of annual compliance Report [Rule 10-O] |
Compliance audit of the agreement |
Revision of an agreement [Rule 10Q] |
Cancellation of an agreement [Rule 10R] |
Procedure for giving effect to rollback provision of an Agreement |
Renewing of an agreement [Rule 10S] |
Miscellaneous [Rule 10T] |
Rules 10TA to 10TG-- Safe Harbour Rules for International Transactions |
Introduction |
Arm's length price shall be subject to safe harbour rules |
Meaning of 'safe harbour' |
Rules regarding safe harbour |
Who can take benefit of safe harbour rules ? |
Eligible international transaction for safe harbour |
Terminologies defined |
Transfer price declared by assessee to be adopted |
Procedure for invoking safe harbour rules |
Safe harbour rules not to apply in certain cases |
Mutual Agreement Procedure not to apply |
Rules 10TH to 10THD-- Safe Harbour Rules for Specified Domestic Transactions |
Meaning of specified domestic transaction (SDT) |
Eligible assessee |
Eligible specified domestic transaction |
Safe harbour i.e. transfer price declared by assessee to be adopted |
Procedure for invoking safe harbour rules |
Rules 10U to 10UC-- Application for General Anti Avoidance Rule |
Non-application of GAAR provision |
Meaning of Foreign Institutional Investor |
Meaning of offshore derivative instrument |
What is 'tax benefit' |
Determination of consequences of impermissible avoidance arrangements |
Reference to Principal Commissioner or Commissioner under section 144BA |
Notice, Forms for reference under section 144BA |
Form for Reference to the Approving Panel |
Procedure before the Approving Panel |
Remuneration |
Rules 10V to 10VB-- Guidelines for Application of Section 9A |
Fund management activity when not constitutes business connection |
Guidelines for application of section 9A |
How can approval of the Board be obtained by an investment fund for the purpose of section 9A |
Statement to be furnished by the fund |
Rule 11A-- Certificate to be Obtained from Medical Authority for Purposes of Deduction Under Section 80DD and Section 80U |
Scheme of deduction under section 80DD |
Conditions precedent |
Meaning of 'disability', 'person with disability' and 'person with severe disability' |
Deduction under section 80U |
Medical authority for certifying autism, cerebral palsy and multiple disabilities |
Copy of certificate to be furnished |
Form of certificate |
Validity period of certificate |
Rule 11AA [As applicable upto 4-11-2019]-- Approval of Institutions/Funds for Purpose of Section 80G |
Deduction under section 80G(2)(a)(iv) |
Receiving approval under section 80G(5)(vi) [Rule 11AA] |
Application for continuance of approval |
Time limit for submitting application |
Action to be taken by the Principal Commissioner or Commissioner on receipt of application |
Opportunity of hearing to be provided to assessee prior to rejection of application |
Time limit for approval to be mentioned in the order |
Time limit for passing the order of Commissioner |
Rule 11AA [As applicable from 5-11-2019]-- Requirements for Approval of an Institution Fund Under Section 80G |
Form for approval of institution/fund under section 80G |
Manner of furnishing Form No. 10G |
Authority prescribed for laying down related procedures |
Power to call for requisite documents and information |
Approval or rejection of approval |
Time limit for passing order regarding approval |
Attachments to be furnished with Form No. 10G |
Rule 11B-- Allowance of Deduction under Section 80GG |
Deduction in respect of rent paid under section 80GG |
Conditions precedent for deduction |
Deductible amount |
Filing of declaration [Rule 11B] |
Illustration |
Rule 11DD-- Deduction in Respect of Medical Treatment, Etc., Under Section 80DDB |
Who is eligible for deduction |
Amount of deduction |
Conditions precedent for allowability of deduction |
Government hospital--Defined |
Senior citizen--Defined |
Very senior citizen--Defined |
Specified diseases for the purpose of section 80DDB [Rule 11DD] |
Prescribed authority |
Requisites of prescription |
Rule 11EA-- Deduction to Industrial Undertakings Located in Industrially Backward Districts |
Scheme of deduction |
Guidelines for specifying industrially backward districts [Rule 11EA] |
Rules 11F to 11-O-- Expenditure on Eligible Projects or Scheme |
Introduction |
Expenditure for eligible projects or schemes |
National committee |
Eligible projects and schemes |
Guidelines for approval of associations and institutions [Rule 11J] |
Guidelines for recommending projects or schemes [Rule 11K] |
Application for approval of an association or institution or for recommendation of a project or scheme by National Committee [Rule 11L] |
Processing of application by National Committee : Procedural aspects [Rule 11M] |
Form of report by an approved association or institution under section 35AC(4)(ii) [Rule 11MA] |
Form of report by public sector company or local authority or association or institution, which is carrying out a notified eligible project or scheme, under section 35AC(5)(ii) [Rule 11MAA] |
Other provisions relating to members of National Committee, points to be kept in view while granting approval by them or its withdrawal, and submission of completion certificate [Rule 11N] |
Certificate of payment of expenditure eligible for deduction |
Annual report and annual statement of donations--Furnishing of by recipient |
Prohibition in respect of further claims |
Rule 11-OA and 11-OB-- Guidelines for Notification of Affordable Housing Project and Guidelines for Notification of a Semiconductor Wafer Fabrication Manufacturing Unit |
Scheme of deduction under section 35AD |
Weighted deduction to certain specified businesses [Relevant upto assessment year 2017-18] |
No deduction under Chapter VI-A and no double deduction permissible |
Specified business for purpose of section 35AD |
Guidelines for notification of affordable housing project as specified business under section 35AD(8)(c)(vii) |
Guidelines for notification of a semiconductor wafer fabrication manufacturing unit as specified business under section 35AD(8)(c)(xiii) |
Rule 11P-- Application for Exercising or Renewing Option for Tonnage Tax Scheme |
Option available to shipping companies to opt for tonnage tax scheme |
Form of application for exercising or renewing the option |
Rule 11Q-- Computation of Deemed Tonnage |
Computation of tonnage income |
Amount deemed as income |
Tonnage income of each qualifying ship |
Meaning of 'tonnage' |
Computation of deemed tonnage in respect of an arrangement of purchase of slots and slot charter |
Computation of deemed tonnage in respect of an arrangement of sharing of break-bulk vessel |
Rule 11R-- Incidental Activities for Purposes of Relevant Shipping Income |
Relevance of incidental activities |
Prescribed incidental activities |
Rule 11S-- Computation of Average of Net Tonnage for Charter-in of Tonnage |
Limit for Charter-in of tonnage |
Net tonnage chartered in exceeding 49 per cent limit |
Net tonnage chartered in exceeding 49 per cent limit for two years |
Computation of average of net tonnage for charter in of tonnage |
Rule 11T-- Form of Report of an Accountant Under Section 115VW(ii) |
Statutory requirement as per section 115VW |
Meaning of "accountant" |
Form of report |
Rule 11U, 11UA and 11UAA-- Determination of Fair Market Value and Meaning of Expressions Used Therein |
Tax on sum/property received without consideration [Section 56(2)(x), effective from 1-4-2017] |
Specified property chargeable under section 56(2)(x) |
Receipts that will not be taxed under section 56(2)(x) |
Definition of 'relative' for purpose of section 56(2)(x) |
Chargeability of gift of property other than immovable property |
Determination of 'fair market value' for purposes of section section 56(2)(x) [as referred to in section 56(2)(vii)] |
Consideration received for issue of shares by a privately held company to be taxed in certain cases |
Determination of fair market value of unquoted shares for purposes of section 56(2)(viib) |
Determination of Fair Market Value of Unquoted Equity Shares of 'Start Up' Companies |
Determination of Fair Market Value for share other than quoted share |
Conversion of inventory into capital asset to be taxed as business income |
Judicial opinion on issue |
Amendment by Finance Act, 2018 |
Fair value on date of conversion to be treated as business income |
Determination of fair market value for inventory |
Determination of actual cost of the asset |
Effect of subsequent transfer of capital asset |
Illustration |
Rule 11UB-- Fair Market Value of Assets in Certain Cases |
Requirement as to furnishing of information or documents by an Indian concern in certain cases |
Explanation 5 to section 9(1)(i) |
Computation of fair market value of assets |
Fair market value of listed shares of an Indian company |
Fair market value of unlisted shares of an Indian company |
Fair market value of interest in a partnership firm or an AOP |
Fair market value of other assets |
Fair market value of all assets of a foreign company |
Modification in fair market value where it is determined on basis of interim balance sheet |
Fair market value to be determined irrespective of whether the assets or business operations are located in India or outside |
Rate of exchange for calculation in foreign currency |
Other terms for the purposes of rule 11UB and 11UC |
Rule 11UC-- Determination of Income Attributable to Assets in India |
Method to determine income attributable to assets in India |
Report to be obtained and furnished by the transferor |
Rule 12-- Return of Income |
Statutory obligation to file return of income |
Return of income to be filed on basis of gross total income and not the total income |
Resident persons required to furnish return compulsorily in certain cases |
Return to be filed compulsorily in some more cases |
Voluntary return of income under section 139(1) |
Filing of return of income by coffee growers, being individuals covered by Rule 7B of the Income Tax Rules--Clarifications |
Return of income of another person |
Filing of returns in electronic form [Section 139(1B)] |
Central government empowered to exempt any class of persons from furnishing return of income |
Form of return of income relating to assessment year 2019-20 |
All returns shall be annexure less |
Certain reports and notices to be furnished electronically |
Manner of furnishing of return |
Authority empowered to specify procedures, formats, etc. in relation to furnishing return |
Forms to be used for assessment year prior to assessment year 2018-19 |
Consequences of not furnishing return in the prescribed form |
Due date for filing the return [Explanation to section 139(1)] |
Delegation of powers for acceptance/rejection of applications for condonation of delay in filing income-tax return |
Verifying of return of income [Section 140] |
Filing of return under section 139(1) not necessary in certain cases |
Filing of return through Tax Return Preparers |
CBDT empowered to dispense with requirement for furnishing of documents, etc. alongwith the return of income |
CBDT empowered to make rules for filing of return in electronic form |
Bulk filing of returns |
Return of income by charitable trust |
Political parties and return of income |
Furnishing of return by certain persons |
Return to be filed by universities, etc. referred to in section 35(1)(ii)/35(1)(iii) |
Return to be filed by business trust |
Return to be filed by investment fund |
Penalty and prosecution in case of failure to file return |
Rule 12A-- Preparation of Return by Authorised Representative |
Authorised representative |
Duty of authorised representative |
Condition precedent for attraction of rule 12A |
Rule 12B-- Statement under Section 115R(3A) [Relevant upto Asst. Yr. 2014-15] |
Rule 12B not relevant from assessment year 2015-16 |
Rule 12C-- Statement under Section 115U : Income from Investments in Venture Capital Company/Fund |
Object of section 115U |
Statement containing details of income paid to the investor to be furnished |
Time for furnishing statement |
Form and manner for furnishing statement |
Authority responsible for administering statement |
Rule 12CA-- Statement Under Section 115UA(4) Regarding Income Distributed by Business Trusts |
Tax on income of unit holder and business trust |
Furnishing of statement regarding income distributed by business trust |
Form and manner for furnishing statement to the prescribed authority |
Form and manner for furnishing statement to unit holder |
Rule 12CB-- Statement Regarding Income Paid or Credited by Investment Funds Under Section 115UB(7) |
Requirement as to furnishing of statement by the investment fund |
Form and time limit for furnishing statement by investment to the unit holder |
Form and time limit for furnishing statement to the prescribed authority |
Authority responsible to specify procedure, etc. |
Rule 12CC-- Statement Under Section 115TCA(4) |
Furnishing of statement by Securitisation Trust |
Time period for furnishing statement |
Form in which statement shall be submitted |
Authority responsible to specify procedure, etc. |
Rule 12D-- Income Tax Authority Empowered Under Section 133C to Call for Information |
Power to call for information by prescribed income-tax authority |
Prescribed authority |
Rule 12E-- Authority for Purpose of Section 143(2) |
Notice to complete scrutiny assessment under section 143(2) |
Authority prescribed for section 143(2) |
Rule 14-- Form of Verification Under Section 142 |
Statutory background |
Form of verification |
Rules 14A and 14B-- Special Audit Under Section 142(2A) |
Statutory provisions |
Form of audit report |
Extension of the time for audit made suo motu by the assessing officer |
Special audit of assessee whose accounts have already been audited |
Special audit justified where all conditions in regard thereto satisfied |
Circumstances in which audit under section 142(2A) can be directed |
Section 142(2A) is applicable when there is both complexity of accounts and interest of revenue affected |
Audit under section 142(2A) can be ordered irrespective of audit under section 44AB |
Conditions precedent for section 142(2A) audit |
Approval of special audit can be given either by the Commissioner or by the Chief Commissioner |
Validity of approval of Chief Commissioner |
Assessee's duty versus auditor's duty |
Extension of time limit for submission of report--When can be granted? |
Special audit report discarded without assigning reasons |
Direction for special audit justified where there was involved complexity of accounts |
Justification of direction for special audit |
Difference and scope of audits under sections 44AB and 142(2A) |
Direction for special audit cannot be given without affording opportunity of hearing |
Direction for special audit justified where there were found financial irregularities |
No writ maintainable where assessing officer had enough material to issue direction for special audit |
Formation of opinion by assessing officer necessary for directing special audit |
Scope of judicial review of AO's opinion |
Opinion of assessing officer vis-a-vis higher authority |
Direction for special audit under section 142(2A) where there were found anomalies in accounts |
Interference through writ not permissible where assessee did not behaved properly |
Once the assessee was questioned or confronted with its accounts in relation to nature and complexity thereof direction for special audit was justified |
Place of audit |
Guidelines for selection of cases for audit under section 142(2A) |
Guidelines for the purposes of determining expenses for audit [Rule 14B] |
Rule 15-- Notice of Demand |
Introductory |
Prescribed form |
Rule 16-- Avoidance of Repetitive Appeals |
Declaration by assessee where identical question of law is pending before High Court or Supreme Court |
Prescribed Form |
No. of copies to be filed |
Procedure on receipt of declaration |
Assessee's claim may be admitted or rejected |
Justification of not accepting assessee's application under section 158A |
Consequences of admission of claim |
Application of decision |
No immunity to assessee from payment of tax due |
Rule 16B-- Exemption in Respect of Remuneration to Non-Resident Consultants, Etc. |
Remuneration or fees received by non-resident technical consultants |
Conditions precedent for availing of exemption |
Remuneration received by non-resident employee of technical consultant [Section 10(8B)] |
Prescribed authority |
Rule 16C-- Exemption to Employees Welfare Funds |
Statutory requirements |
Conditions precedent for availing of exemption |
Notified purposes for establishment of fund |
Requirements for obtaining approval |
Rule 16CC-- Form in which Audit Report under Section 10(23C)(iv)/(v)/(vi)/ (via) to be Filed |
Power to call audited account |
Audit requirement |
Audit, when to be done |
Who can conduct audit? |
When audit report is to be filed? |
Form of report for the purposes of section 10(23C)(iv)/(v)/(vi)/(via) |
Audit report in a form other than relevant form |
Approval under section 10(23C)(iv) vis-à-vis filing of audit report |
Rule 16D-- Form of Report for Claiming Deduction Under Section 10A |
Scheme of section 10A in brief |
Deduction also to on-site development of computer software |
Period for which deduction allowable |
Location and commencement of operation |
No deduction under section 10A from the assessment year 2012-13 |
Report of an accountant certifying the deduction is to be furnished |
Form of audit report |
Rule 16DD-- Form of Particulars to be Furnished Under Section 10A(1B) |
Deduction to units located in special economic zone [Section 10A(1A)] |
Form in which particulars to be furnished |
Rule 16E-- Form of Report for Claiming Deduction Under Section 10B |
Deduction in respect of profits derived by hundred per cent export oriented undertaking from export of articles or things or computer software |
On-site development of software--Eligible for deduction under section 10B |
Benefits under section 10B also available in respect of business of cutting and polishing of precious and semi-precious stones |
Period of deduction |
No deduction under section 10B to be allowed from assessment year 2012-13 |
Report of an accountant certifying the deduction is to be furnished [Section 10B(5)] |
Form of report |
Rule 16F-- Form of Audit Report for Claiming Deduction Under Section 10BA |
When exemption will be allowed |
Period of deduction |
Conditions precedent |
Form of audit report |
Rule 17-- Exercise of Option, Etc., Under Section 11(1) |
Option available under Explanation (2) to section 11(1) |
Form and time limit for exercising option under Explanation to section 11(1) |
Statement to be furnished for accumulation of income under section 11(2) |
Form for furnishing statement under section 11(2) |
Manner of furnishing Form No. 9A and Form No. 10 |
Rule 17A-- Registration of Charitable Trust |
Registration one of the conditions precedent for availing of exemption under section 11 |
Requirement regarding registration as applicable from 1-6-2007 |
Fresh application for registration each time whenever objects of trust get modified |
Availability of exemption for prior years once registration granted under section 12AA |
Form of application for registration of charitable or religious trusts, etc. |
Manner of furnishing Form No. 10A |
Verification of Form No. 10A |
Authority responsible for specifying related procedures |
Suggestions vis-a-vis filing of Form No. 10A |
Attachments to be filed with Form 10A |
Some practical tips vis-a-vis Form No. 10A |
Registration pre-requisite for exemption under section 11 |
Scope of enquiry while granting registration |
Assessing officer empowered to treat society as unregistered under section 12A in case intimation of alteration of objects not given to Commissioner |
Justification of denial of registration on failure to furnish complete list of donors |
Justification of denial of registration on ground of registration twice with Registrar of Societies |
Application of income need not to be examined while granting registration under section 12AA |
Registration to be granted if trust existed as a genuine trust |
Registration should be granted immediately on settlement of dispute |
Impact of failure to take action on application for registration of charitable trust within six months |
Prescribed time limit in passing order under section 12AA to be strictly adhered to |
Registration not to be granted subject to imposition of certain conditions |
Justification of rejection of application for registration |
Registration not to be refused on ground of non-commencement of charitable activity |
No rejection on ground of shortcomings in the functioning of society |
Rejection of application without speaking order not justified |
Justification of rejection of application on basis of Accountant General's report regarding genuineness of accounts |
Restoration of application for registration |
Commissioner asking for a fresh trust deed |
Scope of documents evidencing creation of trust |
Effective date of registration |
Registration not be denied on ground that it applied after several years and no returns were filed |
Registration application not to be disposed of by the authority other than Commissioner |
Non-filing of audited accounts alongwith application |
Registration and alleged violation under section 13 |
Cancellation of registration |
Rule 17B-- Audit of Charitable Trust |
Statutory requirement [Section 12A(b)] |
Form of audit report |
Maintenance of accounts |
Submission of audit report along with return whether mandatory |
Rule 17C-- Modes of Investment or Deposits by Charitable or Religious Trust |
Introduction |
Other modes of investment specified by rule 17C |
Mutual funds referred in section 10(23D) |
Charitable trust not to lose exemption, if funds remain invested for three years in public sector companies on their disinvestment [Proviso for clause (vii) of section 11(5)] |
Time limit for making application for the investment in specified securities |
Subscription to chit held to be investment mode under section 11(5) |
Investment of surplus funds in immovable property |
Rule 17CA-- Functions of Electoral Trusts |
Exemption to voluntary contributions received by an electoral trust |
Functions of electoral trusts |
Rule 17CB-- Method of Valuation for Section 115TD(2) |
Tax to be paid by charitable trust or institution on accreted income in certain cases |
What is accreted income |
Determination of FMV for purpose of section 115TD(2) |
Determination of FMV of assets |
Determination of liabilities |
Meaning of various relevant terms [Explanation to rule 17CB] |
Deduction in respect of donations to certain funds, charitable institutions, etc. [Section 80G] |
Prescribed authority for section 80G(2)(a)(iiif) |
Meaning of certain terms |
Scheme of section 80G(5C) |
Prescribed authority for the purpose of receiving separate accounts from trusts or funds or institutions for providing relief to the victims of earthquake in Gujarat |
Opportunity of hearing |
Time limit for communication of findings to assessing officer |
Rules 18AAAAA-- Guidelines for Specifying an Association or Institution for the Purposes of Notification Under Section 80G(2)(c) |
Introduction |
Guidelines for specifying an association or institution for the purpose of section 80G(2)(c) |
Rules 18AAB and 18BBD-- Deduction to Companies Engaged in Scientific and Industrial Research |
Deduction to companies engaged in scientific and industrial research |
Conditions precedent for allowability of deduction |
Prescribed authority |
Rule 18BBB----Form of Report under Section 80-I or 80-IA or 80-IAB or 80-IB or 80-IC |
Audit requirements vis-a-vis section 80-IA |
Whose accounts need be audited? |
Maintenance of accounts |
Year for which audit is required |
When audit report is to be filed? |
Separate audit report for each undertaking |
Special provision in case of infrastructure facility |
Audit report accompaniments in other cases |
Audit requirements vis-a-vis section 80-IAB |
Audit requirements vis-a-vis section 80-IB |
Audit requirements vis-a-vis section 80-IC |
Audit requirement vis-a-vis section 80-IE |
Certain report1s to be furnished electronically |
Deduction to hotel under section 80-IB |
Approval of hotels located in specified area |
Prescribed authority |
Special exemption to highway projects referred to in section 80-IA(6) |
Computation of profits from certain activities forming intergral part of a highway project for the purpose of section 80-IA |
Certificate from accountant |
Who can give the certificate? |
Year for which certificate is required |
Rule 18C-- Availability of Benefit Under Section 80-IA(4)(iii) to Industrial Parks and Special Economic Zones |
Deduction to Industrial Parks and Special Economic Zones |
Eligibility criteria prescribed by rule 18C |
Rules 18D and 18DA-- Authority for Approval of Companies Carrying on Scientific Research and Development and Conditions Precedent for Deduction under Section 80-IB(8A) |
Scheme of section 80-IB(8A) |
Amount and period of deduction |
Prescribed authority for approval of companies carrying on scientific research and development |
Prescribed conditions for deduction under section 80-IB(8A) |
Rule 18DB-- Conditions for Claiming Deduction Under Section 80-IB (7A) in Respect of Multiplex Theatres |
Scheme of deduction under section 80-IB(7A) |
Conditions precedent for allowability of deduction |
Amount and period of deduction |
Meaning of 'multiplex theatre' |
Prescribed area, facilities and amenities for multiplex theatres |
Filing of audit report |
Rule 18DC-- Conditions for Claiming Deduction Under Section 80-IB(7B) in Respect of Convention Centres |
Assessee eligible for deduction under section 80-IB(7B) |
Conditions precedent for deduction under section 80-IB(7B) |
Amount and period of deduction |
Convention centre defined |
Prescribed area, facilities and amenities for convention centre |
Additional facilities |
Form of audit report in case of convention centre |
Additional documents to be filed with first audit report |
Rule 18DD-- Report for Claiming Deduction Under Section 80-IB(11B) |
Scheme of deduction under section 80-IB(11B) |
Conditions precedent for availing of deduction |
Amount and period of deduction |
Form of audit report |
Rule 18DDA----Report for Claiming Deduction under Section 80-IB(11C) |
Scheme of deduction under section 80-IB(11C) |
Form of audit report |
Rule 18DE-- Deduction in Respect of Profits and Gains of Convention Centres in National Capital Region Under Section 80-ID |
Introduction under section 80-ID |
Who is eligible for deduction under section 80-ID? |
Eligible business for deduction under section 80-ID |
Amount of deduction |
Period of deduction |
Conditions for hotel being eligible for deduction |
Conditions for convention centre being eligible for deduction |
Convention centre--Meaning of |
Powers delegated to CBDT |
Prescribed area, minimum seating capacity, facilities and amenities for convention centres; minimum number of convention halls in the convention centres |
Form of audit report |
Rule 19AB-- Deduction in Respect of Employment of New Workmen |
Scheme of section 80JJAA [As applicable upto assessment year 2016-17] |
Scheme of section 80JJAA [Applicable from assessment year 2017-18] |
Form of report for claiming deduction under section 80JJAA |
Rule 19AC-- Certificate to be Furnished under Section 80QQB |
Deduction under section 80QQB |
Amount of deduction |
Certificate to be furnished |
Form of certificate |
Rule 19AD-- Certificate to be Furnished under Section 80RRB |
Deduction under section 80RRB in respect of royalty on patents |
Amount of deduction |
Certificate to be furnished |
Form of certificate |
Prescribed authority for purposes of section 80RRB(2) |
Rule 19AE-- Audit Report under Section 80LA |
Introduction |
Assessee eligible for deduction and amount of deduction |
Incomes eligible for deduction |
Conditions precedent for deduction |
Year for which report is to be furnished |
Form of report |
Rule 20-- Approval of Issue of Public Companies under Section 80C(2)(xix) |
Deduction under section 80C(2)(xix) |
Guidelines for approval |
Rule 20A-- Approval of Mutual Funds under Section 80C(2)(xx) |
Deduction under section 80C(2)(xx) |
Guidelines for approval |
Rule 21A-- Relief When Salary, Family Pension, Gratuity, Compensation, Pension, Etc. is Paid in Arrears or in Advance |
Relief under section 89 read with rule 21A, where salary, etc., is paid in arrear or in advance |
No exemption under section 10(10C) where relief under section 89 obtained |
Lump sum compensation awarded to employee, in lieu of back wages, etc., entitled to relief |
Ex gratia compensation consequent to resignation |
Calculation of relief |
Rules governing the calculation of relief |
Computation of relief in respect of salary received in arrear or in advance |
Where the additional salary relates to more than one previous year |
Relief where gratuity paid in respect of services for a period of less than 5 years |
Relief in relation to gratuity [Rule 21A(3)] |
Relief in relation to compensation on termination of employment [Rule 21A(4)] |
Computation of relief in relation to commuted pension [Rule 21A(5)] |
Computation of relief in relation to other payments [Rule 21A(6)] |
Procedural aspects of relief |
Rule 21AA-- Relief on Salary in Respect of Specified Employees |
Relief under section 192 (2A) |
Form for particulars |
Rule 21AB-- Tax Residency Certificate for Claiming Double Taxation Relief under an Agreement Referred to in Sections 90 and 90A |
Tax residency certificate to be submitted by certain assessees |
Information to be provided under section 90(5) or under section 90A(5) |
Documents to be kept and maintained by assessee |
Form of application for obtaining certificate of residence |
Form for certificate to be issued for purposes of sections 90 and 90A |
Rule 21AC-- Furnishing of Authorisation and Maintenance of Documents, Etc. for the Purposes of Section 94A |
A. Furnishing of Authorisation by Assessee for Avoiding Disallowance in Respect of Payment to Financial Institutions |
No deduction in respect of payment to financial institution shall be allowed unless requisite authorisation furnished by assessee |
Overriding nature of section 94A(3)--Effect of |
Meaning of Financial Institution |
Form for authorisation |
Manner of furnishing authorisation |
Assessee need to take all necessary steps for legal enforceability of authorisation |
B. Maintenance of Documents and Information for Purpose of Section 94A |
No deduction for any expenses unless assessee maintains requisite documents |
Maintenance of documents in addition to documents referred to in section 92D |
Documents and information required to be maintained for purpose of section 94A(3)(b) |
Period relating to which information and documents required to be maintained |
Time limit for maintenance of information and documents |
Applicability of provisions of section 94A(3)(b) in the context of other provisions of the Act |
Rule 21AD-- Exercise of Option by Certain Domesticc Manufacturing Companies under Section 115BA(4) |
Section 115BA provides option to certain domestic companies for lower rate of tax |
Option when to be exercised |
Manner of exercising option |
Rules 26 to 29 and 29B to 37BC-- Tax Deduction at Source |
A. introductory |
Sections and rules dealing with TDS |
Payments requiring deduction of tax at source |
Income Tax Rules relevant to TDS |
B. TDS from salary [Section 192] |
Deduction of tax from salaries paid to employees |
Option given to employer to pay tax on behalf of employees [Section 192(1A)] |
Method of determination of tax under sub-section (1A) [Section 192(1B)] |
Intimation by employee to employer about the salary due or received from other employer [Section 192(2)] |
Intimation by employee to employer about other income for deduction of tax at source [Section 192(2B)] |
Person responsible for paying salaries required to file details of perquisites and profits in lieu of salary [Section 192(2C)] |
Tax deductor to collect specified particulars from tax deductee [Section 192(2D)] |
Adjustment of deficiency or excess of tax [Section 192(3)] |
Deduction of tax from payment of accumulated balance in the recognised provident fund of an employee as a trustee thereof [Section 192(4)] |
Deduction of tax from contribution paid to employee from an approved superannuation fund [Section 192(5)] |
Rate of exchange for deduction of tax at source on income payable in foreign currency [Section 192(6)] |
Time for deduction of tax |
Tax deduction in respect of pensioners |
Tax deduction on salary paid to non-residents |
Tax deduction from salaries payable to non-resident for services rendered outside India |
Tax deduction on salaries payable to residents for services rendered outside India |
Rate at which tax be deducted |
TDS on salary refunded by employee |
Home salary to expatriates liable to TDS |
TDS on LTC |
Payment of professional fee to doctors visiting hospital for providing medical treatment |
Non-deduction of TDS on granting of stock options to employees as no method prescribed to determine perquisite value |
TDS where gratuity payment is below ceiling limit fixed by notification by Central Government |
TDS on alleged misuse of meal coupons by employees |
Voluntary payments to employees |
Tax deduction from salary paid to overseas managing director |
TDS on payment of tip to hotel employees |
Excess TDS to be refunded |
Payment of commission to directors |
No TDS on incomes exempt under sections 10(5) and 10(14) |
TDS on contribution to superannuation fund |
Contribution towards unrecognised provident fund deducted while making tax deduction at source on salaries |
Provisions on account for leave encashment, bonus and gratuity expenses |
TDS on advances given to employees for purchasing goods in the name of employer |
TDS in case of grant of Employee's Stock Option Plan (ESOP) |
Payment of leave encashment paid by statutory corporation to retired employees |
Credit for the taxes deducted during deputation outside India |
Deposition of the amounts deducted from "salaries" to the credit of the Central Government [Section 200 and Rule 30] |
Quarterly deposition permissible |
Consequences in case of default |
Furnishing prescribed statements, etc., in respect of tax deducted at source from "salaries" |
Issuance of certificate of tax deducted at source or tax paid under sub-section (1A) of section 192 [Section 203 and Rule 31] |
Certificate of tax deduction in case of pensioners |
Credit for tax deducted at source from salaries by employees [Section 199] |
Furnishing of annual statement by department |
Obtaining a certificate of deduction of tax at lower rate or non-deduction of tax from assessing officer |
C. TDS on Premature Withdrawal from Employee Provident Fund [Section 192A] |
D. TDS from Interest on Securities [Section 193] |
Deduction of tax at source on payment of interest on securities |
When tax is to be deducted |
Income from deep discount bonds |
Deposit of tax deducted at source from interest on securities to the credit of Central Government [Section 200 and Rule 30] |
Furnishing of quarterly statements of TDS [Section 200(3) and Rule 31A] |
Issuance of certificate of tax deducted at source from interest on securities [Section 203 r/w rule 31] |
Credit for tax deducted at source from interest on securities [Section 199] |
Receiving a certificate of deduction of tax at lower rates or non-deduction of tax from interest on securities [Section 197] |
Filing a declaration and avoiding deduction of tax from interest on securities [Section 197A] |
E. TDS from dividends [Section 194] |
Deduction of tax at source from dividends |
Prescribed arrangements for declaration and payment of dividends within India |
Receiving dividend without deduction of tax or deduction of tax at lower rates [Section 197] |
Filing a declaration and avoiding deduction of tax from dividends [Section 197A and Rule 29C] |
No TDS where payment to non-shareholders |
Non-deduction of tax at source on accrued interest on debenture |
Issuance of certificate of tax deducted at source from dividends [Section 203 and rule 31] |
Credit for tax deducted at source from dividends |
Deposit of tax deducted at source from dividends to the credit of Central Government [Rule 30] |
Furnishing of quarterly statements of TDS [Section 200(3) read with rule 31A] |
F. TDS from interest other than interest on securities [Section 194A] |
Deduction of tax at source from payment of interest other than interest on securities |
Interest to a charitable trust |
Finance charges accruing or arising to hire purchase companies |
Discount to subscribers of chit |
Interest on loans allegedly by directors routed through assessee-company |
Deduction of tax from provision for interest |
Interest on enhanced compensation awarded on account of acquisition of agriculture land |
Cheque discounting charges |
Payment through Electronic Clearing System (ECS) |
Interest payments to bank |
Payment of delayed pay-in-charges paid to share brokers |
TDS from gross interest |
Assessee utilising credit limit of other party and reimbursing interest to that party--Payment, whether constitute interest for the purposes of section 194A |
Interest on compensation awarded by Motor Accidents Claims Tribunal (MACT) |
Applicability of section 194A in case of assessee-employees provident fund |
No need for tax deduction where assessee obtained Form No. 15G/15H from payees |
Interest paid by partners to firm on money borrowed if partners liable to tax audit |
Applicability of section 194A vis-a-vis interest payment by Co-operative Bank to its member |
Deposit of tax deducted from interest other than interest on securities to the credit of Central Government [Section 200 and rule 30] |
Furnishing of quarterly statements in respect of tax deducted at source from interest other than interest on securities [Section 200(3) read with rule 31A] |
Issuance of certificate of tax deducted at source from interest other than interest on securities [Section 203 and Rule 31] |
Receiving a certificate of deduction of tax at lower rates or non-deduction of tax from interest other than interest on securities [Section 197] |
G. TDS from winnings from lottery or crossword puzzle [Section 194B] |
Deduction of tax at source from winnings from lotteries or crossword puzzles |
Contest requiring skill or knowledge |
Prizes won in motor rally--Not income from lottery |
Winnings from chit fund scheme liable to TDS under section 194B |
Prize money on unsold tickets reverting to the organisers |
Prize coupon given without any price under a gift linked saving scheme |
Deposit of tax deducted from winnings from lottery or crossword puzzles to the credit of Central Government [Section 200 and rule 30] |
Furnishing of statements in respect of tax deducted at source from winnings from lottery or crossword puzzles [Rule 31A] |
Issuance of certificate of deduction of tax at source from winnings from lottery or crossword puzzles [Section 203 and Rule 31] |
H. TDS from winnings from horse races [Section 194BB] |
Deduction of tax at source from winnings from horse races |
Deposit of tax deducted at source from winnings from horse races to the credit of the Central Government [Rule 30] |
Furnishing of quarterly statement in respect of tax deducted at source from winnings from horse races [Rule 31A] |
I. TDS from payment to contractor or sub-contractors [Section 194C] |
Payments covered by section 194C |
Person responsible for tax deduction (Being specified person) |
When tax is to be deducted |
Contract to include sub-contract |
Work--Meaning of |
Payment for manufacturing or supplying a product as per customer specification and liability to deduct tax |
No tax deduction in certain cases |
Rate of tax deduction |
CBDT's clarifications regarding applicability of section 194C |
Existence of contract necessary for applicability of section 194C |
TDS on reimbursement of actual cost |
Contract for sale vis-a-vis contract for work |
TDS liability in case of assessee being a clearing and forwarding agent |
Payment to franchisees for carrying out its business of running coaching centre |
Payments made to cooperative housing societies for monthly maintenance charges in respect of flats owned by assessee |
Annual Maintenance Contract (AMC) expenditure |
Payments to artists participating as guests or judges in reality shows hosted by assessee |
Payments made towards internet and communication charges |
Deposit of tax deducted from payments to contractors and sub-constractors to the credit of Central Government [Rule 30] |
Furnishing of quarterly statements in respect of tax deducted at source from payments to contractors and sub-contractors [Rule 31A] |
Issuance of certificate of tax deducted at source from payments to contractors and sub-contractors [Rule 31] |
J. TDS from insurance commission [Section 194D] |
Deduction of tax at source from payment of insurance commission |
Commission paid to insurance companies for re-insurance |
Deposit of tax deducted from payment of insurance commission to the credit of Central Government [Rule 30] |
Furnishing of quarterly statements in respect of tax deducted at source from payment of insurance commission [Rule 31A] |
Issuance of certificate of tax deducted at source from insurance commission [Rule 31] |
K. TDS from Payment in Respect of Life Insurance Policy [Section 194DA] |
L. TDS from payments to Non-Resident Sportsman/ Sports Associations [Section 194E] |
Deduction of tax from payments to non-resident sportsman or sports association |
Prize money paid to foreign cricket team and amount paid to foreign umpires and referees |
Existence of DTAA vis-a-vis TDS under section 194E |
Deposit of tax deducted from the payments to non-residents to the credit of the Central Government [Section 194E] |
Furnishing of quarterly statements in respect of tax deducted at source from payment to non-residents [Section 194E read with Rule 31A] |
Issuance of certificate of tax deducted at source from payments to non-resident [Section 194E read with rule 31] |
M. TDS from payments in respect of deposits under NSS, etc. [Section 194EE] |
Deduction of tax at source from payments in respect of National Savings Scheme, etc. |
Furnishing of quarterly statement in respect of tax deducted at source from repayment of deposits in the National Saving Scheme, 1987 [Rule 31A] |
Issuance of certificate of tax deducted at source from payment of deposits in National Saving Scheme, 1987 [Rule 31] |
Annual statement to be issued by department |
N. TDS from payments on account of repurchase of units by UTI/Mutual Fund [Section 194F] |
O. TDS from commission on sale of lottery tickets [Section 194G] |
P. TDS from commission or brokerage [Section 194-H] |
Procedure to deduct tax at source from commission or brokerage |
Applicability of section 194H in respect of discount allowed to stamp vendors |
Discount given to distributors on sale of pre-paid sim cards |
Transaction on principal to principal basis |
Discount vis-a-vis commission |
Payment of guarantee commission to bank |
Bank charges retained out of credit card |
Commission and brokerage paid to sub-brokers in relation to Mutual Fund or securities |
No TDS on reimbursement of commission to dealers |
Payments by Television Channels and Publishing Houses to Advertisement Companies for Procuring or Canvassing for Advertisements |
Q. TDS from payment of rent [Section 194-I] |
Deduction of tax at source from payment of rent |
Deduction where rent is paid to co-owners |
Composite licence agreement leasing out entire factory alongwith residential quarters |
Tax be deducted if asset is under control or possession of payer |
Applicability of section 194-I where recipient paid advance tax |
Rent received by an Industrial Development Authority |
Landing fee or parking fee of aircraft |
Passenger service fee |
Payment made for hiring dumpers |
Payment of transmission and wheeling charges |
Wagon facilitation charges |
Wharfage charges |
Composite agreement for loading, unloading and for payment of hire charges |
Rate of TDS on use of machinery or plant or equipment |
Payment of lease rent to Yamuna Expressway Industrial Development Authority (YEIDA) |
Payment to AAI |
Deposit of amount of tax deducted from payment of rent to the credit of the Central Government [Rule 30] |
Furnishing of quarterly statements in respect of tax deducted at source from payment of rent [Rule 31A] |
Issuance of certificate of tax deducted at source from payment of rent [Rule 31] |
R. TDS on payment on transfer of certain immovable property [Section 194-IA] |
S. TDS from payment of rent by certain individuals or huf not covered by section 194-I [Section 194IB] |
T. TDS from PAYMENT UNDER SPECIFIED AGREEMENT REFERRED TO IN SECTION 45(5A) [SECTION 194-IC] |
U. TDS from fees for professional or technical services [Section 194-J] |
Procedure for tax deduction at source under section 194J |
No tax deduction in case of payment towards software in certain cases--Notification No. 21/2012, dt. 13-6-2012 |
Clarifications issued by CBDT |
TDS in case of reimbursement of expenses |
Same payment cannot be subjected to tax deduction under two sections |
Fees paid by foreign companies to law firms in India through proper channels and in the prescribed manner not subjected to tax deduction at source |
Transactions by the Third Party Administrators (TPAs) with Hospitals, etc. |
Payment of transmission/wheeling and State Load Dispatch Centre charges [SLDC] |
Scope of term 'professional fee' |
Depository charges |
Payment to news reporters by newspaper company--Coverage by section 194J |
Commission to whole-time directors |
V. TDS from payment of compensation on acquisition of certain immovable property [Section 194LA] |
W. TDS on Certain Income from Business Trust [Section 194LBA] |
X. TDS on Income in Respect of Units of Investment Fund [Section 194LBB] |
Y. TDS from Income in Respect of Investment in Securitisation Trust [Section 194LBC] |
Z. Payment to Contractor, Commission Agent & Professionals not covered by section 194C, 194H and 194J [Section 194M] [Effective from 1-9-2019] |
ZA. TDS on Cash Withdrawal from Bank, Post Office, Etc. [Section 194N] [Effective from 1-9-2019] |
Rules 26, 30, 31, 31A, 37BB and 37BC-- TDS from Payment to Non-Residents |
A. TDS from payment of interest from infrastructure debt fund [Section 194LB] |
B. TDS on income by way of interest from Indian Company [Section 194LC] |
C. Payment of interest on certain bonds and government securities to FII's or QFI's [Section 194LD] |
Person responsible to deduct tax under section 194LD |
Rate of tax deduction |
Time for deduction of tax |
Interest on which tax is required to be deducted under section 194LD |
Meaning of "Foreign Institutional Investor" |
Meaning of "Government Security" |
Meaning of "Qualified Foreign Investor" |
D. TDS from Other payments to non-residents [Section 195] |
Payment to non-residents under section 195 |
Furnishing of information regarding payment to non-resident as provided under section 195(6) [Rule 37BB] |
Furnishing of information where payment to non-resident is chargeable to tax |
Furnishing information where payment is not chargeable to tax |
Information when not required to be furnished |
Manner of furnishing information in Form 15CA |
Authorised dealer may be required to furnish signed printout for any other proceedings |
Furnishing and verification of certificate in Form 15CB |
Furnishing of quarterly statement by authorised dealer |
Authority responsible for administering information |
Procedure for submission of Form 15CC by an authorised dealer in respect of remittances under section 195(6) |
Application under section 195(3) by banking company |
CBDT empowered to notify class of persons or cases where person responsible to make payment shall make application to assessing officer for determination of appropriate proportion of sum chargeable |
Procedure for refund to tax deducted at source under section 195 |
Interest under section 244A on refund--Whether admissible |
Tax deductor entitled to interest on refund under section 244A(1B) |
Rate of exchange for the purpose of deduction of tax at source on income payable in foreign currency [Rule 26] |
Relaxation from deduction of tax at higher rate under section 206AA [Rule 37BC] |
E. TDS from payments to offshore fund [Section 196B] |
F. TDS from income from foreign currency bonds or shares of Indian company to non-resident Indians [Section 196C] |
G. TDS from income of foreign institutional investors from securities [Section 196D] |
Rules 28(1), 28AA, 28AB, 29, 29B and 29C-- Procedure to Avoid Tax Deduction or Getting Tax Deducted at Lower Rate |
A. Certificate of tax deduction at lower rate or no tax deduction [Section 197(1)] |
Payments for which certificate under section 197 can be obtained |
Procedure to get certificate for purpose of section 197 [Rule 28 and 28AA] |
Instructions for issue of certificate under section 197 mandatorily through ITD system |
Certificate of no deduction of tax in case of certain entities |
Certificate of no deduction of tax or deduction at lower rates from dividends |
No certificate can be issued after amounts subject to TDS stand credited or paid |
Validity period of certificate of deduction |
Cancellation of certificate |
Validity of one certificate issued for two separate units having two TANs |
Justification of denial of certificate under section 197(1) |
Department when required to issue certificate under section 197 |
Justification of rejection of assessee's claim for no deduction of TDS |
Powers of the Board |
Maintainability of writ against order under section 197 |
B. No tax deduction in certain cases [Section 197A read with rule 29C] |
Provision enabling non deduction of tax at source |
Resident individual eligible to the benefit under section 197A(1) |
Any person except company or firm eligible to take benefit under section 197A(1A) |
Benefit of section 197A not available if income referred to in section 197A exceeds maximum amount not chargeable to tax [Section 197A(1B)] |
Relief to senior citizens [Section 197A(1C)] |
No deduction in case of offshore banking units [Section 197A(1D)] |
No deduction in case of New Pension System (NPS) [Section 197A(1E)] |
No deduction in case of notified institution, association or body or class thereof [Section 197A(1F)] |
Relief to tax exempt entities |
Manner of furnishing declaration under section 197A(1)/(1A) |
Allotment of UIN by person responsible for making payment |
Furnishing of particulars of declaration in quarterly statement of TDS |
Assessing officer empowered to call for furnishing declaration within a period of seven years |
Authority to administer furnishing and verification of declaration |
Duty of Principal Director General of Income Tax System to make available information of declaration to Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner |
Declaration in Form 15G/15H to be furnished to the deductor/payer for each Financial Year |
C. Application for certificate authorising receipt of interest and other sums without deduction of tax [Rule 29B] |
Income in respect of which certificate may be obtained |
Conditions to be satisfied |
Form of application |
When certificate may be granted |
Rule 30-- Time and Manner for Deposit of TDS |
Deposition of tax with Central Government |
TDS on behalf of Government |
Furnishing of statement for reporting of payment of TDS through book entry |
Time for deposit of TDS in case of deductors other than Government authorities |
Time for deposit of TDS where tax is deducted under section 194-IA |
Time for deposit of TDS where tax is deducted under section 194-IB |
Facility of quarterly payment in specific cases |
Mode of payment of TDS in case of deductors other than Government authorities |
Mode of payment where tax is deducted under section 194-IA and 194-IB |
Rule 31-- Issuance of TDS Certificate |
Issuance of TDS certificate [Section 203] |
Form and periodicity of TDS certificate |
Contents of TDS certificate |
TDS certificate where tax is deducted under section 194-IA or under section 194-IB |
Issuance of TDS certificate where assessee employed by more than one employer |
Issuance of duplicate certificate if original lost |
Form 16 may be authenticated by using digital signature |
Certificate for tax deduction while making payment 'net of tax' |
Consequences of the default in the issue of TDS certificates |
Writ to compel issue of TDS certificate |
Issuance of TDS Certificates in Form No. 16A downloaded from TIN website and Option to Authenticate Same by Way of Digital Signature--Circular No. 3/2011, dt. 13-5-2011 |
TDS certificate in respect of tax deducted on or after 1-4-2012 shall be issued in Form 16A generated through TIN central system--Circular No. 1/2012, dt. 9-4-2012 |
Issuance of certificate for tax deducted at source in Form No. 16 made on or after 1-4-2012 by generating and subsequently downloading through TRACES Portal--Circular No. 4/2013, dt. 17-4-2013 |
Procedure, Format and Standards for Issuance of Certificate for Tax Deducted at Source in Part B of Form No. 16--Notification No. 09/2019, dt. 6-5-2019 |
Procedure for generating Form 16A from TRACES |
Procedure as to check status of request for Form 16A |
Signature on TDS certificate |
Modification in Form 16A generated by TDS CPC |
Rule 31A-- Filing of Statement of TDS |
Requirements as to filing of quarterly statement of TDS |
Rule relevant to furnishing of statement of TDS |
Form of statement of deduction of tax |
Authority to whom statement is to be furnished |
Time limit for furnishing statement |
Manner of furnishing statement |
Furnishing of challan-cum-statement by person deducting tax under section 194-IA or under section 194-IB |
TDS and filing of ITR in case both the parents are dead of minor |
TDS on interest on deposits made under the Capital Gains Accounts Scheme, 1988 where the depositor has deceased |
Consequences of non-filing of TDS statement |
Rule 37BA-- Credit for TDS |
Credit to be given to person from whose income deduction is made |
Furnishing of challan-cum-statement where tax is deducted under section 194-IA |
Credit for tax deducted under section 192(1A) |
CBDT empowered to make rules |
Rules regarding granting of credit for tax deducted [Rule 37BA] |
Credit for TDS where certificate issued in name of Joint Venture or Directors and not in name of erstwhile firm |
Credit where corresponding income was neither admitted nor offered for tax |
Credit to be given in case of discrepancy with respect to credit shown in Form No. 26AS |
Credit where not claimed in the return |
Short credit for TDS under section 199 |
TDS credit where not reflected in PAN of assessee in his individual capacity |
Mismatch between details uploaded by deductor and furnished by assessee |
Year of credit where income not chargeable to tax in that year |
Benefit of TDS in succeeding year |
Credit not available where income from which tax was deducted was not included in total income |
Tax credit in respect of unrealised rent |
Credit for TDS where status of assessee changed |
Credit in case of non-furnishing of TDS certificates |
Credit to be allowed where assessing officer failed to comply specific direction of CIT(A) |
Credit for TDS where rent realized belonged to assessee partially |
Directions of Delhi High Court regarding credit for TDS in case of mismatch in information uploaded by deductor in TDS return |
TDS and filing of ITR in case of minor or where both the parents are dead |
TDS on interest on deposits made under the Capital Gains Accounts Scheme, 1988 where the depositor has deceased |
Rule 29A-- Deduction in Respect of Receipt from Foreign Sources |
Deduction in respect of receipt from foreign sources |
Prescribed Form |
Prescribed authority for section 80QQB and section 80RRB |
Rule 31AB-- Annual Statement of Tax Deducted or Collected |
Requirement as to furnish annual statement of TDS |
Requirement as to furnish annual statement of TCS |
Form of statement |
Person authorised to issue statement |
Mismatch in TDS certificate and Form 26AS |
Remedies available to rectify errors |
Time limit for furnishing statement |
Rule 31AC and 31ACA-- Quarterly Return Under Section 206A and Maintenance of Particulars of Time Deposits by Banking Companies for this Purpose |
Quarterly return by banking company, co-operative society or housing finance company |
Quarterly return by any other person [Section 206A(2)] |
Power of CBDT and Central Government in respect of quarterly return |
Penalty for non-furnishing of quarterly return |
Maintenance of particulars of time deposits by a banking company for furnishing quarterly return under section 206A |
Form, authority and time for filing quarterly return |
Filing of quarterly return on computer readable media |
Meaning of "time deposit" |
Substitution of section 206A with effect from 1-9-2019 |
Rule 31ACB----Form of Furnishing Certificate of Accountant under Section 201 |
Payer not deemed to be in default under section 201(1A) if payee discharges his tax liability |
Relief extended in case of payment to non-resident |
Form for furnishing certificate of accountant under first proviso to section 201(1) |
Rule 31AA and Rules 37C to 37J-- Collection of Tax at Source |
Person being seller responsible for tax collection at source |
When individual or HUF is liable to collect tax |
Specified goods for the purposes of section 206C(1) |
Meaning of 'Seller' |
Meaning of "Buyer" |
No tax to be collected in case of manufacturing and processing units |
Parking auctions, toll auctions, mining and quarrying leases and TCS provision [Section 206C(1C)] |
Tax to be collected at source on sale of motor vehicle of the value exceeding Rs. 10 lakh, either in cash or otherwise |
Certain clarifications as to scope of TCS in case of sale of motor vehicle, goods for providing services |
Credit for TCS to be given in accordance with rules made by CBDT |
Manner for providing credit as per rule 37-I |
Furnishing of quarterly statement of TCS [Proviso to section 206C(3) read with rule 31AA] |
Procedure for online submission of statement of collection of tax--Notification No. 6/2016, dt. 4-5-2016 |
Furnishing of correction statement |
Furnishing of TCS certificate [Section 206C(5) read with rule 37D] |
Time when tax is to be collected |
Rate of tax collection |
No collection of tax by seller in certain cases [Section 206C(1A), 206C(1B) read with rule 37C] |
Payment of tax collected by seller or licensor or lessor to the account of government [Section 206C read with rule 37CA] |
Annual statement of tax collected at source |
Application for collection of tax at lower rate [Section 206C(9) read with rule 37G] |
Certificate of tax collection at lower rate [Rule 37H] |
Person responsible to collect tax not to be deemed in default if buyer, licensee or lessee discharged their tax liability |
Form for furnishing certificate of accountant under the first proviso to sub-section (6A) of section 206C [Rule 37J] |
Rules 38 and 39-- Advance Tax |
Payment of advance tax |
No advance tax to be paid by resident individual of age of sixty years or more not having any income chargeable under the head "Profits and gains of business or profession" |
Due date of instalment of advance tax |
Notice demanding advance-tax [Rule 38] |
Intimation for reducing demanded advance tax [Rule 39] |
Rules 40B-- Special Provision for Payment of Tax by Certain Companies |
Scheme of section 115JB |
Report and certificate from Chartered Accountant [Section 115JB(4)] |
Form prescribed for the purpose of section 115JB(4) |
Rule 40BA-- Special Provisions for Payment of Tax by Certain Persons Other than a Company |
Levy of alternate minimum tax on all assessees other than company |
Report of Chartered Accountant to be obtained and furnished |
Form of report prescribed for purposes of section 115JC(3) |
Rule 40BB-- Amount Received by the Company in Respect of Issue of Share |
Levy of tax on income distributed by companies by way of buy back of shares |
Rate of tax on distributed income by way buy back of shares |
Distributed income for purpose of section 115QA |
Manner of determining amount received by the company in respect of issue of shares |
Rule 40F-- Rules 40C to 40E Not to Apply from 1-4-2010 |
Rule 41-- Refund Claim |
Right to claim refund [Section 237] |
Person entitled to claim refund in special cases [Section 238] |
Claim of refund [Section 239(1)] |
Time limit for making claim of refund |
CBDT can condone the delay in making refund application |
Conditions precedent under rule 41 |
Interest on amount of interest payable on refund |
Rules 42 to 44B-- Tax Clearance Certificate |
Statutory provisions |
Prescribed authority for purposes of section 230(1) and 230(1A) |
Forms and certificates to be furnished under sections 230(1) and 230(1A) |
Production of certificate [Rule 44] |
Rules 44C to 44D-- Settlement Commission |
Application for settlement of cases |
Form of application for settlement of case and intimation to the assessing officer |
Calling for report of Commissioner [Rule 44CA] |
Fee for furnishing copy of report [Rule 44D] |
Rules 44E and 44F-- Advance Rulings |
Application for advance ruling |
Form for obtaining an advance ruling [Rule 44E] |
Fees for making application for advance ruling |
Withdrawal of application |
Persons competent to sign the application [Rule 44E(2)] |
Copy of advance ruling [Rule 44F] |
Rules 44G and 44H-- Mutual Agreement Procedure |
Power to make rule in respect of double tax avoidance agreement |
Application for giving effect to the terms of any agreement under clause (h) of sub-section (2) of section 295 [Rule 44G] |
Procedure to deal with requests for bilateral or multilateral advance pricing agreements [Rule 44GA] |
Action by the competent authority of India and procedure for giving effect to the decision, under the agreement [Rule 44H] |
Rules 45 and 46-- Form for Filing First Appeal and Appeal Fees |
Filing of appeal to Commissioner (Appeals) |
Form of appeal |
Manner of furnishing form of appeal and other documents |
Person authorised to verify form of appeal |
Importance of proper signature |
Controversy about signing the memo of appeal and revision thereof |
Misdescription of capacity on the Form not to take away right of appeal |
Procedural irregularity does not affect maintainability of appeal |
Procedural rules not to be interpreted to confer profit which a party is not entitled to |
Strict rule of evidence not applicable |
Documents to accompany an appeal memo |
Certified copy of order--Nature of requirement |
Enclosure of demand notice |
Significance of grounds of appeal |
Opportunity to cure defects |
Fees payable for appeal to Commissioner (Appeals) |
Mode of service of order referred to in section 249(2)(c) [Rule 46(1)] |
Mode of service of any other order [Rule 46(2)] |
Rule 46A-- Production of Additional Evidence |
Power of first appellate authority to admit additional evidence |
Circumstances in which additional evidence can be furnished |
Recording of reasons |
Assessing officer to be heard before admitting additional evidence |
General powers of the appellate authority |
Issuance of order |
Constitutional validity of rule 46A |
Admission of additional evidence to be on proper grounds |
Reasons to be recorded before admitting additional evidence |
Opportunity to be given to other side |
Additional evidence admitted without speaking order--Effect of |
Additional evidence to be within the scope of rule 46A |
Additional evidence necessary for disposal of appeal |
Applicability of section 250(4) vis-a-vis rule 46A |
Failure of assessee to produce evidence before assessing officer |
Technical plea against admissibility of additional evidence |
Procedure for admissibility of additional evidence where not followed |
Affidavit reiterating submissions |
Rule 47-- Second Appeal--Filing of Memorandum of Appeal and Memorandum of Cross Objections |
Time limit for filing appeal and memorandum of cross objection |
Fees payable for filing appeal before Tribunal |
Filing of appeal and memorandum of cross objections |
A. Filing of Memorandum of Appeal |
Form of filing appeal |
Procedure as to memorandum of appeals |
No defect memo issued |
Maintainability of revised memo of appeal filed beyond limitation |
Appeal memo signed by power of attorney holder in Japan |
Relevant case law dealing with memorandum of appeal |
Procedure for filling up form of appeal |
B. Filing of Memorandum of Cross Objections |
Filing of memorandum of cross objections |
Form of memorandum of cross objections |
Scope of memorandum of cross objections |
Procedure for filling up form of cross objections |
Rules 49 to 66-- Authorised Representatives |
Appointment of authorised representative |
Authorised representative defined |
Meaning of accountant |
Accountancy examinations recognised [Rule 50] |
Educational qualifications prescribed [Rule 51] |
Prescribed business relationships for the purposes of section 288 [Rule 51A] |
Prescribed authority [Rule 52] |
Maintenance of register of members [Rule 53 to 66] |
Rules 67 to 81-- Recognised Provident Fund |
Introduction |
Part A of the Fourth Schedule |
Procedural aspect |
Investment of fund moneys [Rule 67] |
Applying for recognition of fund [Rule 77] |
Withdrawal of recognition |
Taxing authorities not empowered to review recognition once granted |
Rules 82 to 97-- Approved Superannuation Funds |
Introduction |
Part B of Fourth Schedule |
Procedural aspect |
Investment of fund moneys [Rule 85] |
Application for approval [Rule 95] |
Rules 98 to 111-- Approved Gratuity Funds |
Introduction |
Part C of Fourth Schedule |
Procedural aspect |
Investment of fund moneys [Rule 101] |
Application for approval |
Rules 111AA and 111AB-- Reference to Valuation Officer |
Statutory provisions |
Prescribed percentage and amount [Rule 111AA] |
Form of report of valuation by registered valuer [Rule 111AB] |
Section 55A can be invoked to determine fair market value and not to determine full value of consideration |
Assessing officer need not offer opportunity of being heard to assessee while making reference to valuation officer |
Assessing officer can call for report on valuation of cost of construction |
Second reference to valuation officer |
Assessment determining capital gains where already completed |
Making of reference to valuation officer--Conditions precedent |
Value of land adopted by assessee far exceeded fair market value arrived at in approved valuer's report--Reference not justified |
Reference to DVO not valid where fair market value declared by assessee supported by valuation report of registered valuer |
Reference to valuation officer under section 55A--When cannot be made |
DVO's report binding in nature |
Case involving sale simplicitor of property involved no need for reference to valuation officer |
Fair market value of property shown by assessee far exceeding estimated value proposed by DVO |
Reference to valuation officer in violation of provisions of section 55A |
Fair value determined on the basis of valuation report of registered valuer |
Assessing officer to form opinion that conditions precedent for making reference exists |
Validity of reference to DVO under section 55A |
Reference only for the purpose of allocation of sale value towards land and building |
Condition precedent for making a reference |
Transfer of land or building and reference under section 55A |
Sale value of land being an amount equal to stamp value--No reference under section 55A can be made |
Reference to DVO--Fair market value as on 1-4-1981 |
Rule 111B-- Publication and Circulation of Board's Order |
Power of Board to issue instructions |
Manner of publication |
Rules 112 to 112C-- Search and Seizure |
Statutory provisions |
Procedure prescribed by rule 112 |
Powers as envisaged under rule 112 |
Forms to be used for issuing search warrant |
Use of retained assets for recovering any existing liability under direct tax laws [Clause (i) of section 132B(1)] |
Rule relevant to return of surplus |
Rule 112D-- Requisition of Books of Account, Etc. |
Scheme of section 132A |
Conditions precedent for applying provisions of section 132A |
Procedure for requisition |
Rule 112E-- Power to Collect Certain Information |
Scheme of section 133B |
Limited powers under section 133B |
Form for furnishing information |
Rule 112F-- Class or Classes of Cases in Which the Assessing Officer shall not be Required to Issue Notice for Assessment or Reassessment of the Total Income for Six Assessment Years Immediately Preceding the Assessment Year |
Central Government empowered to specify class of search cases where notice not required to be issued for past six years |
Class or Classes of cases in which the Assessing Officer shall not be required to issue notice for assessment or reassessment of the total income for six assessment years immediately preceding the assessment year |
Circumstances when exemption provided in rule 112F shall not be applicable |
Rule 113-- Disclosure of Information Respecting Assessees |
Disclosure of information to certain authorities |
Application to commissioner [Rule 113(1)] |
Form of 'information' [Rule 113(2), 113(3), 113(4)] |
Rule 114-- Allotment of Permanent Account Number |
Persons require to obtain PAN |
Duty of persons entering into specified transactions and person receiving documents relating to such transactions to ensure quoting of PAN/Aadhaar Number |
CBDT's power to make rules relating to PAN |
Procedure for applying for Permanent Account Number |
Meaning of authentication for purpose of section 139A |
Accompaniments to the application |
Authority responsible for administrating application |
Rule 114A-- Application for Allotment of a Tax Deduction and Collection Account Number |
Relevance of tax deduction and collection account number |
Quoting of TAN |
Form of application |
Application to assessing officer |
Time limit for applying |
Penalty for failure to comply with provisions of section 203A |
Rules 114B to 114D-- Quoting of Permanent Account Number |
Requirement under section 139A(5)(c) |
Board empowered to make rules [Section 139A(8)] |
Transaction in respect of which PAN must be quoted [Rule 114B] |
Quoting of PAN in case of minor |
Quoting of PAN by persons not having PAN |
Transactions in respect of which PAN is not required to be quoted |
Furnishing of PAN prior to 30-6-2017 to banks, post office, etc., if not furnished at the time of opening of account |
Meaning of certain terms relevant to rule 114B |
Verification of Permanent Account Number in transactions specified in rule 114B |
Duty to ensure as to proper mention of PAN in records maintained and in any information furnished to prescribed authorities |
Time and manner in which persons referred to in rule 114C shall furnish a statement containing particulars of Form No. 60 |
Rule 114DA----Furnishing of Annual Statement by a Non-resident Having Liaison Office in India |
Non-resident having liaison office in India to file statement containing particulars of its activity |
Form for furnishing annual statement |
Verification of annual statement |
Manner of furnishing annual statement |
Rule 114DB----Information and Documents to be Furnished Under Section 285A |
Requirement as to furnishing of information or documents by an Indian concern in certain cases |
Time and manner of furnishing of information |
Documents to be prepared by the Indian concern |
Authority prescribed for specifying procedure |
Period for which information and documents to be kept and maintained |
Important terms used in rule 114DB |
Rules 114E to 114H-- Furnishing of Statement of Financial Transaction or Reportable Account |
Person required to file statement of Financial Transaction or Reportable Account |
Furnishing of statement |
Meaning of specified financial transaction |
Rectification of defect in statement |
Consequences of failure in furnishing statement |
Intimation as regards to any inaccuracy in information provided in the statement and correction thereof |
Rules to be specified by Central Government |
Penalty for furnishing inaccurate statement of financial transaction or reportable account |
I. Furnishing of Statement of Financial Transaction [Rule 114E, as applicable from 1-4-2016] |
Form for furnishing statement of financial transaction |
Nature and value of transaction in respect of which reporting required and class of person who will report |
Authority to whom Form No. 61A to be furnished and manner of furnishing the same |
Authority competent to specify procedures administration, etc. |
Time limit for furnishing statement of financial transactions |
Duties of reporting person |
Person authorised to sign statement of financial transaction |
II. Reporting Financial Institution and Due Diligence--Requirement [Rules 114F to 114H, Effective from 7-8-2015] |
Information required to be maintained and reported by the reporting financial institution |
Due diligence requirement |
Important terms relevant to due diligence |
Due diligence procedure for the purposes of identifying reportable accounts among pre-existing individual accounts |
Due diligence procedure for purposes of identifying reportable accounts among new individual accounts |
Procedure shall be applicable for purposes of identifying reportable accounts among pre-existing entity accounts |
Procedure for purposes of identifying reportable accounts and accounts held by non-participating financial institutions among new entity accounts |
Other procedures prescribed for implementing the due diligence requirement |
Alternative procedures have been prescribed in case of a U.S. reportable account opened on or after the 1-4-2014 but before the date of entry into force of FATCA agreement |
Meaning of financial account |
Meaning of 'financial asset' |
Meaning of the term 'financial institution' |
Meaning of "non-participating financial institution" |
Meaning of "non-reporting financial institution" |
Meaning of the term 'reportable account' |
Meaning of "reporting financial institution" |
Meaning of 'reportable person' |
Other terms for the purpose of rule 114G and rule 114H |
Guidance notes on implementation of reporting requirements under rules 114F to 114H |
Rule 115-- Rate of Exchange for Conversion of Income in Foreign Currency |
Statutory provisions |
Prescribed rate of exchange |
What is the meaning of specified date |
Important considerations |
Rule 115A-- Computation of Capital Gains under Proviso to Section 48 |
Statutory provisions |
Prescribed rate of exchange |
Rule 117B-- Certificate to Tax Recovery Officer |
Statutory provisions |
Form of certificate [Rule 117B] |
Rule 117C-- Tax Recovery Officer to Exercise or Perform Certain Powers and Functions of an Assessing Officer |
Rule 119A-- Procedure to be Followed in Calculation of Interest |
Mode of calculation |
Rounding off of tax, penalty or interest |
Meaning of 'month' |
Rule 121A-- Form of Statement to be Furnished by Producer of Cinematograph Films |
Submission of statement by producers of cinematograph films |
Time limit |
Required particulars |
Penalty and prosecution |
Rule 125 E--Payment of Taxes |
Persons required to pay taxes electronically |
Mode of e-payment of tax |
Tax--Meaning of |
Rule 126-- Computation of Period of Stay in India in Certain Cases |
Determination of residential status |
Period of stay in India of a citizen being member of crew of a foreign bound ship leaving India to be determined as per prescribed rules |
Method to compute period of stay in India |
Meaning of "Continuous Discharge Certificate" |
Eligible voyage--Meaning of |
Rule 127-- Service of Notice, Summons, Requisition, Order and Other Communication |
Service of notice, summons, requisitions, etc. |
Board empowered to make rules for providing addresses |
Addresses as provided by the Board |
Addresses for communication in the manner provided in clause (a) or clause (b) of section 282(1) |
Addresses for communication transmitted electronically |
Authority competent to specify related procedure, etc. |
Rule 127A-- Authentication of Notices and Other Documents |
When notice or document communicated in electronic form shall be deemed to be authenticated |
Authority who will specify the related procedures |
Meaning of 'electronic mail' and 'electronical mail' message |
Meaning of 'electronic record' |
Rule 128-- Foreign Tax Credit (FTC) |
Foreign tax credit when available |
Meaning of foreign tax |
FTC available against tax, surcharge and cess |
No credit against disputed tax |
Method to compute FTC |
Documents to be furnished for availing of FTC |
Time limit for furnishing requisite documents |
Rule 129-- Form of Application Under Section 270AA |
Immunity from penalty and prosecution proceedings |
Time limit for filing application for granting immunity |
Form of application under section 270AA |