Contents
Rule 2AHouse 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)
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 ` 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 ` 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 Sections 35(1)(ii)/(iii) and 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
Prescribed authority, guidelines, form, manner and conditions for approval under section 35(1)(iia)
Position effective from 1-6-2020 [Extended to 1-10-2020 via Press Release dt. 9-5-2020]
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
Rule 6ABBA--Electronic Modes of Payment under Certain Provisions
Provision where payment via other electronic modes referred to
Prescribed electronic modes
Rule 6ABAA--Condition to be Fulfilled for Being Notified as Public Facility for the Purposes of Section 36(1)(viii)
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)
Amendments by Finance Act, 2020
Recognised stock exchange--Meaning
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
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-a-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
Assessee an insurance company assessable according to provision of section 44
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 certain person
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
Additional conditions imposed by Finance Act, 2020 for purpose of deduction under section 80G
Requirement as to approval w.e.f. 1-6-2020
Deduction under section 80G in respect of donation to be allowed after verification thereof
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
Rules 11U, 11UA & 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
Rule 11UAB--Fair Market Value for Inventory
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 11UAC--Prescribed Class of Persons for the Purpose of Clause (XI) of the Proviso to Section 56(2)(x)
Non applicability of section 56(2)(x)
Prescribed class of persons
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 2020-21
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 2019-20
Consequences of not furnishing return in the prescribed form
Due date for filing the return [Explanation to section 139(1)]
Extension of date for filing of return of income for assessment year 2020-21 in wake of COVID-19
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 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-a-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 1(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 [As Applicable Prior to Amendment by Finance Act, 2020]
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
Registration Procedure Effective from 1-6-2020 [Extended
Upto 1-10-2020 via Press Release dt. 9-5-2020]
Conditions for applicability of exemption under sections 11 and 12
Procedure for registration under new regime
Status of pending applications
Time period for passing order of registration
Cancellation of registration under new scheme
New procedure at a glance
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
Condonation of delay in filing Form No. 10B for years prior to assessment year 2018-19--Circular No. 10/2019, dt. 22-5-2019
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]
Rule 18AAA--Deduction in Respect of Donations
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
Rule 18AAAA--Authority for Purpose of Section 80G(5C)
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
Rule 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 reports to be furnished electronically
Rule 18BBC--Approval of Hotels Located in Certain Areas
Deduction to hotel under section 80-IB
Approval of hotels located in specified area
Prescribed authority
Rule 18BBE--Computation of Profits of Certain Activities Forming Integral Part of a Highway Project
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 [Applicable from assessment year 2017-18]
To whom deduction allowable
Amount of deduction
Period of deduction
When deduction not allowable
Audit requirements
Additional employee cost--Meaning of
Additional employee
Emoluments--Meaning of
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 s. 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 Domestic 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
Rule 21AE--Exercise of Option Under Section 115BAA(5)
Tax on certain domestic companies
Tax when option under section 115BAA is exercised
Time limit for exercising option under section 115BAA
Procedure as to exercise of option under section 115BAA(5)
Rule 21AF--Exercise of Option under Section 115BAB(7)
Option under section 115BAB to new domestic manufacturing companies
Time limit for exercising option
Procedure as to exercise of option under section 115BAB(7)
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)]
TDS in respect of income pertaining to ESOP of start-ups [Section 192(1C)]
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 co-operative 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 194-IB]
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 Income in Respect of Units [Section 194K]
W. TDS from payment of compensation on acquisition of certain immovable property [Section 194LA]
X. TDS on Certain Income from Business Trust [Section 194LBA]
Y. TDS on Income in Respect of Units of Investment Fund [Section 194LBB]
Z. TDS from Income in Respect of Investment in Securitisation Trust [Section 194LBC]
ZA. Payment to Contractor, Commission Agent & Professionals not covered by section 194C, 194H and 194J [Section 194M]
ZB. TDS on Cash Withdrawal from Bank, Post Office, Etc. [Section 194N]
ZC. TDS from Payment by E-commerce Operator to E-commerce Participant [Section 194-O, w.e.f. 1-10-2020]
ZD. Reduction in Rate of Tax Deduction at Source
[From 14-5-2020 to 31-3-2021]
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 "municipal debt securities"
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 on Income in Respect of Units of Non-Residents [Section 196A]
F. TDS from payments to offshore fund [Section 196B]
G. TDS from income from foreign currency bonds or shares of Indian company to non-resident Indians [Section 196C]
H. 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
Time for deposit of TDS where tax is deducted under section 194M
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 sections 194-IA, 194-IB and 194M
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 or under section 194M
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 or under section 194M
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 [As relevant upto 31-5-2020]
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 ` 10 lakh, either in cash or otherwise
TCS on Foreign remittance and on selling of overseas tour package [w.e.f. 1-10-2020]
Overall limit while applying TCS on sale of goods [Section 206C(1H), w.e.f. 1-10-2020]
Issuance of guidelines by CBDT
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
Reduction in rate of Tax Collection at Source [From 14-5-2020 to 31-3-2021]
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]
Rule 44G--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]
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
Rule 114AAA--Manner for Making PAN Inoperative
PAN when becomes inoperative
Consequences when PAN becomes inoperative
Authority for verifying operational status of PAN
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 114-I--Annual Information Statement
Furnishing of annual information statement under section 285BB
Information to be uploaded by the prescribed authority
Uploading of other information
Authority who is required to specify relevant procedure
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 119AA--Modes of Payment for Purpose of Section 269SU
Acceptance of payment in certain cases through prescribed electronic modes
Penalty to be levied on violation of section 269SU
Modes prescribed for purpose of section 269SU
Clarification via Circular No. 32/2019, dt. 30-12-2019
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
Relaxation of Certain Provisions Due to COVID-19