(1) These rules may be called the Income-tax Rules, 1962.
(2) They shall come into force on the 1st day of April, 1962.
(1) In these rules, unless the context otherwise requires,--
(a) "Act" means the Income-tax Act, 1961 (43 of 1961);
(aa) "authorised bank" means any bank as may be appointed by the Reserve Bank of India as its agent under the provisions of subsection (1) of section 45 of the Reserve Bank of India Act, 1934 (2 of 1934);
(b) "Chapter", "section" and "Schedule" means respectively Chapter and section of, and Schedule to, the Act.
(2) All references to "Forms" in these rules shall be construed as references to the forms set out in Appendix II hereto.
The amount which is not to be included in the total income of an assessee in respect of the special allowance referred to in clause (13A) of section 10 shall be--
(a) the actual amount of such allowance received by the assessee in respect of the relevant period; or
(b) the amount by which the expenditure actually incurred by the assessee in payment of rent in respect of residential accommodation occupied by him exceeds one-tenth of the amount of salary due to the assessee in respect of the relevant period; or
(c) an amount equal to--
(i) where such accommodation is situate at Bombay, Calcutta, Delhi or Madras, one-half of the amount of salary due to the assessee in respect of the relevant period; and
(ii) where such accommodation is situate at any other place, two-fifth of the amount of salary due to the assessee in respect of the relevant period,
(d) Omitted by the IT (Fourth Amdt.) Rules, 1986, w.e.f. 1-4-1987.
whichever is the least.
Explanation : In this rule--
(i) "salary" shall have the meaning assigned to it in clause (h) of rule 2 of Part A of the Fourth Schedule;
(ii) "relevant period" means the period during which the said accommodation was occupied by the assessee during the previous year.
(iii) Omitted by the IT (Fourth Amdt.) Rules, 1986, w.e.f. 1-4-1987.
(1) The amount exempted under clause (5) of section 10 in respect of the value of travel concession or assistance received by or due to the individual from his employer or former employer for himself and his family, in connection with his proceeding,--
(a) on leave to any place in India;
(b) to any place in India after retirement from service or after the termination of his service;
shall be the amount actually incurred on the performance of such travel subject to the following conditions, namely :--
1[(i) where the journey is performed on or after the 1st day of October, 1997, by air, an amount not exceeding the air economy fare of the national carrier by the shortest route to the place of destination;
(ii) where places of origin of journey and destination are connected by rail and the journey is performed on or after the 1st day of October, 1997, by any mode of transport other than by air, an amount not exceeding the air-conditioned first class rail fare by the shortest route to the place of destination; and
(iii) where the places of origin of journey and destination or part thereof are not connected by rail and the journey is performed on or after the 1st day of October, 1997, between such places, the amount eligible for exemption shall be :--
(A) where a recognised public transport system exists, an amount not exceeding the 1st class or deluxe class fare, as the case may he, on such transport by the shortest route to the place of destination; and
(B) where no recognised public transport system exists, an amount equivalent to the air-conditioned first class rail fare, for the distance of the journey by the shortest route, as if the journey had been performed by rail.
(2) The exemption referred to in sub-rule (1) shall be available to an individual in respect of two journeys performed in a block of four calendar years commencing from the calendar year 1986 :
2[Provided that nothing contained in this sub-rule shall apply to the benefit already availed of by the assessee in respect of any number of journeys performed before the 1st day of April, 1989 except to the extent that the journey or journeys so performed shall be taken into account for computing the limit of two journeys specified in this sub-rule.]
(3) Where such travel concession or assistance is not availed of by the individual during any such block of four calendar years, an amount in respect of the value of the travel concession or assistance, if any, first availed of by the individual during first calendar year of the immediately succeeding block of four calendar years shall be eligible for exemption.
Explanation : The amount in respect of the value of the travel concession or assistance referred to in this sub-rule shall not be taken into account in determining the eligibility of the amount in respect of the value of the travel concession or assistance in relation to the number of journeys under sub-rule (2).
3[(4) The exemption referred to in sub-rule (1) shall not be available to more than two surviving children of an individual after 1st October, 1998 :
Provided that this sub-rule shall not apply in respect of children born before 1st October, 1998, and also in case of multiple births after one child.]
_________________________________
1. Substituted by the IT (First Amdt.) Rules, 1998, w.r.e.f. 1-10-1997, Prior to their substitution, clauses (i) (ii) and (iii), as amended by the IT (Fifth Amdt.) Rules, 1990, w.r.e.f. 1-4-1989, read as under:
(i) where the journey is performed on or after the 1st day April, 1989 by rail, an amount not exceeding the air-conditioned second class fare by the shortest route to the place of destination;
(ii) where places of origin of journey and destination are connected by rail and the journey os performed on or after the 1st day of April, 1989 between such places, the amount eligible for exemption shall be,-
(A) where a recognized public transport system exists, an amount not exceeding the 1st class or deluxe fare, as the case may be, on such transport by the shortest route to the place of destination; and
(B) where no recognized public transport system exists, an amount equivalent to the air-conditioned second class rail fare, for the distance of the journey by the shortest route, as if the journey had been performed by rail.
2. Inserted by the IT (Fifth Amdt.) Rules, 1990, w.r.e.f. 1-4-1989.
3. Inserted by the IT (Fifth Amdt.) Rules, 1998, w.r.e.f. 1-10-1997.
The amount received by an employee of
(i) a public sector company; or
(ii) any other company; or
(iii) an authority established under a Central, State or Provincial Act; or
(iv) a local 2[authority; or]
3[(v) a co-operative society; or
(vi) a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956); or
(vii) an Indian Institute of Technology within the meaning of clause (g) of section 3 of the Institutes of Technology Act, 1961 (59 of 1961); or
13[(viia) an institution, having importance throughout India or in any State or States, as the Central Government may, by notification in the Official Gazette, specify in this behalf; or]
(viii) such institute of management as the Central Government may, by notification in the Official Gazette specify in this behalf,
at the time of his voluntary retirement 4[or voluntary separation] shall be exempt under clause (10C) of section 10 only if the scheme of voluntary retirement framed by the aforesaid company or authority 5[or co-operative society or University or institute], as the case may be 6[or if the scheme of voluntary separation framed by a public sector company,] is in accordance with the following requirements, namely :--
(i) it applies to an employee 7[***] who has completed 10 years of service or completed 40 years of age;
8[(ii) it applies to all employees (by whatever name called) including workers and executives of a company or of an authority or of a cooperative society, as the case may be, excepting directors of a company or of a co-operative society;]
(iii) the scheme of voluntary retirement 9[or voluntary separation] has been drawn to result in overall reduction in the existing strength of the employees 10[***];
(iv) the vacancy caused by the voluntary retirement 9[or voluntary separation] is not to be filled up;
(v) the retiring employee of a company shall not be employed in another company or concern belonging to the same management;
(vi) the amount receivable on account of voluntary retirement 9[or voluntary separation] of the employee does not exceed the amount equivalent to 12[three months] salary for each completed year of service or salary at the time of retirement multiplied by the balance months of service left before the date of his retirement on superannuation:
11[Provided that requirement of (i) above would not be applicable in case of amount received by an employee of a public sector company under the scheme of voluntary separation framed by such public sector company]
Explanation : In this rule, the expression "salary" shall have the same meaning as is assigned to it in clause (h) of rule 2 of Part A of the Fourth Schedule.
________________________________
1 Substituted by the IT (First Amdt.) Rules, 1993, w.r.e.f.) 18-8-1992. Prior to its substitution, rule 2BA as inserted by the IT (Sixteenth Amdt.) Rules, 1992, w.e.f. 18-8-1992, and amended by the IT (Third Amdt.) Rules, 1993, w.e.f. 26-2-1993, read as under:
2BA. Guidelines for the purpose of section10(10C).The amount received by an employee of a public sector company or of any other company at the time of his voluntary retirement shall be exempt under clause (10C) of section 10 only if the scheme of voluntary retirement shall be exempt under clause (10C) of section 10 only if the scheme of voluntary retirement framed by the aforesaid company is in accordance with the following requirements, namely :--
(i) it applies to an employee of the company who has completed 10 years of service or completed 40 years of age;
(ii) it applies to all employees (by whatever name called) including workers and executives of the company excepting Directors of the company;
(iii) the scheme of voluntary retirement has been drawn up to result in overall reduction in the existing strength of the employees of the company;
(iv) the vacancy caused by voluntary retirement is not to be filled up, nor the retiring employee is to be employed in another company or concern belonging to the same management.
(v) the amount receivable on account of voluntary retirement of the employee, does not exceed the amount equivalent to one and one-half months salary for each completed year of service or salary at the time of retirement multiplied by the balance months of service left before the date of his retirement on superannuation.
In any case, the amount should not exceed rupees five lakhs in case of each employee;
(vi) the employee has not availed in the past, the benefit of any other voluntary retirement scheme.
Explanation : In this rule, the expression salary shall have the same meaning as is assigned to it in clause (h) of rule 2 of Part A of the Fourth Schedule.
2 Subsituted for authority, by the IT (Fifth Amdt.) Rules, 1994, w.r.ef. 1-4-1994.
3 Inserted, by the IT (Fifth Amdt.) Rules, 1994, w.r.ef. 1-4-1994.
4 Inserted by the IT (Twenty-third Amdt.) Rules, 2000, w.e.f. 24-11-2000.
5 Inserted by the IT (Fifth Amdt.) Rules, 1994, w.r.e.f 1-4-1994.
6 Inserted by the IT (Twenty-third Amdt.) Rules, 2000, w.e.f. 24-11-2000.
7 Words of the company or the authority, as the case may be, omitted by the IT (Fifth Amdt.) Rules, 1994, w.r.e.f. 1-4-1994.
8 Substituted, by the IT (Fifth Amdt.) Rules, 1994, w.r.e.f. 1-4-1994. Prior to substitution, it read as under :
(ii) it applies to all employees (by whatever name called) including workers and execu-
tives of the company or the authority, as the case may be, excepting Directors of the
company;
9 Inserted by the IT (Twenty-third Amdt.) Rules, 2000, w.ef. 24-11-2000.
10 Words of the company or the authority, as the case may be omitted by the IT (Fifth Amdt.)
Rules, 1994, w.r.e.f. 1-4-1994.
11 Inserted by the IT (Twenty-third Amdt.) Rules, 2000, w.ef. 24-11-2000.
12 Substituted for one and one-half months by the IT (Tenth Amdt.) Rules, 1994, w.e.f. 1-11-1994.
13 Inserted by IT (Tenth Amdt.) Rules, 2002 w.e.f. 19.06.2002.
(1) For the purposes of sub-clause (i) of clause (14) of section 10, prescribed allowances, by whatever name called, shall be the following, namely:--
(a) any allowance granted to meet the cost of travel on tour or on transfer;
(b) any allowance, whether, granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty;
(c) any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit :
Provided that free conveyance is not provided by the employer;
(d) any allowance granted to meet the expenditure incurred on a helper where such helper is engaged for the performance of the duties of an office or employment of profit;
(e) any allowance granted for encouraging the academic, research and training pursuits in educational and research institutions;
(f) any allowance granted to meet the expenditure incurred on the purchase or maintenance of uniform for wear during the performance of the duties of an office or employment of profit.
Explanation : For the purpose of clause (a), "allowance granted to meet the cost of travel on transfer" includes any sum paid in connection with transfer, packing and transportation of personal effects on such transfer.
(2) For the purposes of sub-clause (ii) of clause (14) of section 10, the prescribed allowances, by whatever name called, and the extent thereof shall be the following, namely :--
TABLE
Sl. No. Name of allowance Place at which allowance is exempt Extent to which allowance is exempt
(1) (2) (3) (4)
1. Any Special Compensatory Allowance in the nature of 2[Special Compensatory (Hilly Areas) Allowance] or High Altitude Allowance or Uncongenial Climate Allowance or Snow Bound Area Allowance I (a) Manipur Mollan/ RH-2365.
(b) Arunachal Pradesh
(i) Kameng;
(ii) North Eastern Arunachal Pradesh where heights are 9,000 ft. And above;
(iii) Areas east or west of Siang and Subansiri sectors
(c) Sikkim (i) Area North _NE- East of line Chhaten LR 0105, Launchung LR 1902, pt. 4326 LW 1790, pt. 4349 LW 1479, pt. 3601 LW 1471 to mile 13 LW 1367 to Berluk LW 2253.
(ii) All other areas at 9,000 ft. And above
(d) Uttar Pradesh Areas of Harsil, Mana and Malari Sub-divisions and other areas of heights at 9,000 ft. And above.
(e) Himachal Pradesh
(i) All areas at 9,000 ft. And above ahead of line joining Puhkajakunzomla towards the bower.
(ii) Area ahead of line joining Karchham and Shigrila towards the bower.
(iii) All areas in Kalpa, Spiti, Lahul and Tisa.
(f) Jammu and Kashmir
(i) All areas from NR 396950 to NR 350850. NR 370790NR 311776 North of Shaikhra Village. North of Pindi Village to NR 240800.
(ii) Areas of Doda, Sank and other posts located in areas at a height of 9,000 ft. And above.
(iii) North of line Kud-Dudu and Bastttgarh, Bilwar, Batote and Patnitop.
(iv) All areas ahead of Zojila served by Road Srinagar-Zojila-Leh in Leh District.
(v) Gulmarg- All areas forward of line joining Anita Linyan 3309 _ Kaunrali-2407.
(vi) Uri South _ All areas forward of Kaunrali- Kandi 1810 Kustam 1505 _ Sebasantra 1006 Changez 0507 _ Jak 19904 Keekar 9704 jammu 9607 Neeta 9508.
(vii) BAAZ Kaiyan Bowl _ All areas forward of Dulurja 9712- BAAZ 0317- Shamsher 0416 including New Shamsher 0615-Zorawar 1017 _ Malaugan Base 1027 _ Radha 0836 to Nastachun Pass 9847.
(viii) Tangdhar _ All areas west of Nastachun Pass Tangdhar Bowl and on Shamshabari Range and forward of it.
(ix) Karan and Machhal sub-sectors- All areas along the line Pharkiangali 0869 to Z Gali 4376 and forward of Shamshabari Range.
(x) Panzgam, Trehgam and Drugmul. 3[Rs. 800 per month]
II. Siachen area of Jammu and Kashmir 4[Rs. 7000 per month]
III All places located at a height of 1,000 metres or more above the sea level, other than places specified at (I) and (II) above. 5[Rs. 300 per month]
62
Any special Compensatory Allowance in the nature of Border. Area Allowance, Remote Locality Allowance or Difficult Area Allowance or Disturbed Area Allowance I. (a) Little Andaman, Nicobar and Narcondum Islands;
(b) North and Middle Andamans;
(c) Throughout Lakshadweep and Minicoy Islands;
(d) All places on or north of the following demarcation line : Point 14600 (2881) to Sala MS 2686- Matau MS 6777-Sakong MT 1379- Bamong-Khonawa MO 2803-Nyapin MO 7525-River Khru to its junction with the river Kamla MP-2226-Talihayapuik MK 7410- Gshong MK 9749 - Yinki Yong NF 4324 - Damoroh MF 6208 - Ahinkolin NF 8811 - Kronli MG 2407 - Hanli NM 4096 Gurongon NM 4592 Loon NM 7579 - Mayuliang NM 0169 - Chawah NM 9943 - Kamphu NM 1125 - Point 6490 (NM 1493) Vijayanagar NSA - 486.
(e) Following areas in Himachal Pradesh: (i) Pangi Tehsil of Chamba District;
(ii) Following Panchayats and villages of Bharmour Tehsil of Chamba District (A) Panchayat Badgaun, Bajol, Deol Kugti Nayagam and Tundah. (B) Villages Ghatu of Gram Panchayat Jagat Kanarsi of Gram Panchayat Cauhata.
(iii) Lahul and Spiti District;
(iv) Kinnaur district: (A) Asrang, Chitkul and Hango Kuno Charang Panchayats
(B) 15/20 Area comprising the Gram Panchayats of Chhota Khamba, Nathpa and Rupi.
(C) Pooh sub-Division excluding the Panchayat Areas specified above.
(v) 15/20 Area of Rampur Tehsil comprising of Panchayats of Koot, Labana-Sadana, Sarpara and Chandi Branda of Shimla District.
(vi) 15/20 Area of Nirmand Tehsil, comprising the Gram Panchayats of Kharga, Kushwar and Sarga of Kullu District.
(f) Chimptuipui District of Mizoram and areas beyond 25 km from Lunglei town in Lunglei District of Mizoram.
(g) following areas in Jammu and kashmir :-
(i) Niabat Bani, Lihi, Malhar and Macchodi of Kathua District;
(ii) Dudu Basantgarh Lander Bhamag Illaqa, Thakrakote and Nagote of Udhampur District.
(iii) All areas in Tehsil Mahore except those specified at III(f) (i) below in Udhampur District; (iv) Illaqas of Padder and Niabat Nowgaon in Kishtwar Tehsil of Doda District;
(v) Leh District;
(vi) Entire Gurez - Nirabat, Tangdar Sub-Division and Keran Illaqa of Baramulla District.
(h) Following areas of Uttar Pradesh:- (i) Chamoli District;
(ii) Pithoragarh District;
(iii) Uttarakashi District; (i) Throughout Sikkim State II. Installations in the continental shelf of India and the Exclusive Economic Zone of India. III. (a) Throughout Aruanchal Pradesh other than areas covered by those specified at I(d) above.
(b) Throughout Nagaland State.
(c) South Andaman (including Port Blair).
(d) Throughout Lunglei District (excluding areas beyond 25 km from Lunglei town) of Mizoram.
(e) Dharmanagar, Kailasahar, Amarpur and Khowai in Tripura.
(f) Following areas in Jammu and Kashmir:-
(i) Areas up to Goel from Kamban side and areas upto Arnas from Keasi side in Tehsil Mahore of Udhampur District;
(ii) Matchill in Barmulla District.
(g) Following areas in Himchal Pradesh:- (i) Bharmour Tehsil, excluding Panchayats and villages covered by those specified at I(e)(ii) above of Chamba District.
(ii) Chhota Bhangal and Bara Bhangal area of Kangra District;
(iii) Kinnaur District other than areas specified at I(e)(iv);
(iv) Dodra-Kawar Tehsil, Gram Panchayats of Darakali in Rampur, Kashapath Tehsil and Munish, Ghori Chaibis of Pargana Sarahan of Shimla District. IV.
(a) Throughout Aizawal District of Mizoram;
(b) Throughout Tripura except areas those specified at III(e);
(c) Throughout Manipur;
(d) Followings ares of Himachal Pradesh: (i) Jhandru Panchayat in Bhatiyat Tehsil, Churah Tehsil, Dalhousie Town (including Banikhet proper) of Chamba District;
(ii) Cuter Seraj (excluding Village of Jakat-Khana and Burow in Nirmand Tehsil of Kullu District;
(iii) Following areas of Mansi District: (A) Chhuhar Valley (Joginder nagar Tehsil);
(B) Bagra, Chhatri, Chhotdhar, Garagushain, Gatoo, Gharyas, Janjehli, Jaryar, Johar Kalhani Kalwan, Kholanal, Loth, Silibagi, Somachan, Thachdhar, Thachi and Thana Panchayats of Thunag Tehsil;
(C) Binga, Kamlah, Saklana, Tanyar and Tara-kholah, Panchayats of Dharampur Block;
(D) Balidhur, Bagra, Gopalpur, Khajol, Mahog, Mehudi, Manj, Pekhi, Sainj, Sarahan and Teban, Panchayats of Karsog Tehsil;
(E) Bohi, Batwara, Dhanyara, Paura-Kothi, Seri and Shoja, Panchayats of Sundernagar Tehsil.
(iv) Following areas and officers of Kangara District:
(A) Dharamsala town and Women's ITI, Dari, Mechanical Workshop, Ramnagar; Child Welfare and Twon Country Planning Offices, Sakoh; CRSF Office at lower Sakoh; Kangra Milk Supply Scheme, Shamanagar; Tea Factory, Dari; Forest Corporation Office, Shamnagar; Tea Factory, Dari; Settlement Office, Shamnagar and Binwa Project, Shamnagar. Offices located outside the Municipal limit of Dharamshala town but included in Dharamsala town for spurposes of eligibility to special Compensatory (Remote Locality) Allowance;
(B) Palampur town, incluidng HPKVV Campus at Palampur and H.P. Krishi Vishvavidyala Campus; Cattle Development Office/Jersy Farm, Banuri; Sericulture Office/Indo-German Agriculture Workshop/ HPPWD Division, Bundla; Electrical Sub-Division, Lohna; D.P.O. Corporation, Bundla and Electrical HPSEE Division, Ghuggar offices located outside the municipal limits of Palampur town but included in Palampur town for the purpose of above allowance.
(v) Chopal Tehsil; Ghoris, Panjgaon, Patsnu, Naubis and Teen Koti of Pargana Sarahan; Deothi Gram Panchayat of Taklesh Area; Pargana Barabis; Kasba Rampur and Ghori Nog Pargana Ramputr of Rampur Tehsil of Shimla District and Shimla Town and its suburbs (Dhalli, Jatog, Kasumpti, Mashobra, Taradevi and Tutu)
(vi) Panchayats of Bani, Bakhali (Pachhad Tehsil), Bharog Bheneri (Paonata Tehsil), Birla (Nahan Tehsil), Dibber (Pachhad Tehsil) of Thanan Kasoga (Nahan Tehsil) in Sirmour District and Thansgiri Tract of Sirmour District;
(vii) Mangal Panchayat of Solan District;
(e) Following areas in Jammu and Kashmir:- (i) Areas in Poonch and Rojouri Districts excluding the towns of Poonch and Rajouri and Sunderbani and other Uraban areas in the two districts;
(f) Following areas in Jammu and Kashmir:- Areas not included in I(g), III(f) and IV(e) above, but which are within a distance of 8km from the line of actual control or at places which may be declared as qualifying for Border Allowance from time to time by the State Government for their own staff V. Jog Falls in Shimoga District in Karnataka.
VI. (a) Throughout the State of Himachal Pradesh other than areas covered by those specified in I(e), III(g) and IV(d)
(b) Throughout the State of Assam and Meghalaya Rs. 1300 per month Rs. 1100/- per month Rs. 1050/- per month Rs. 750 per month Rs. 300/ per month Rs. 200 per month]
3. 7[Special Compensatory (Tribal Areas/Schedule Areas/ Agency Areas) Allowance] (a) Madhya Pradesh
(b) Tamil Nadu
(c) Uttar Pradesh
(d) Karnataka
(e) Tripura
(f) Assam
(g) West Bengal
(h) Bihar
(i) Orissa 8[Rs. 200 per month]
4. Any allowance granted to an employee working in any transport system to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place, provided that such employee is not in receipt of daily allowance. Whole of India 70 percent of such allowance up to a maximum of 22[Rs. 10,000 per month]
5. Children Education Allowance Whole of India 10[Rs. 100 per month per child] up to a maximum of two children.
6. Any allowance granted to an employee to meet the hostel expenditure on his child Whole of India 11[Rs. 300 per month per child] up to a maximum of two children.
7. Compensatory Field Area Allowance (a) Following areas in Arunachal Pradesh:-
(i) Tirap and Changlang Districts;
(ii) All areas North of line joining point 4448 in LZ 4179 _ Nukme Dong MS 3272 _ Sepla MT 2969 _ Palin MO 9213 _ Daporijo NR 5841 _ Along NL 1273 Hunli NM 3196- Tidding Tuwi MT 6369 _ Hayuliang NN 0170- Tawaken MT 8136 _ Champai Bun NM 8814, all inclusive.
(b) Throughout Manipur and Nagaland.
(c) Following areas in Sikkim:- All areas North and North East of line joining Phalut LV 4750- Gezing LV 7059- Mangkha LV 6160- Penlang LaLW 0666- Rangli LW 1448-BP 1 in LW 2453 ON Indo _ Bhutan Border. all inclusive.
(d) Folloeing areas in Himachal Pradesh: All areas East of line joining Umasila NV 3951 _ Udaipur NY 8663- Manikaran SB 2300-Pir Parbati Pass TA 1459- Taranda TA 2335- Barasua-Pass TA 8801, all inclusive.
(e) Following areas in Uttar Pradesh:- All areas North and North-East of line joining Barasua Pass Gangnani TG 1362-Govind Ghat TG 0937- Tapovan TH 1822-Musiari TN 8982-Relaged TO 2466-all inclusive.
(f) Following areas in Jammu and Kashmir:-
(i) Areas North and East of line joining Zojila MU 3036 - Baralachala NE 6672 along the great Himalayan Range, all inclusive;
(ii) All areas West of Line joining point 1556 in NR 5470 _ Gulmarg MT 3105- Naushara MY 3105- Ringapat MT 2133- Handwara MT 2043- Laingyal MT 2339- Point 8405 in NG 4565 - North of line joining point 8403 Bunakut MT 5453 Razan NN 2239 - Zojila, all inclusive;
(iii) All areas West of line joining tip of Chicken Neck RD 7073 _ Canal junction RD 6364-Mawa Brahmana RD 6183- Chauki RD 6393 - Road junction RD 6499- Baramgala MY 3854 _ Point 1556 in NR 5470. all inclusive. 12[Rs. 2,600 per month]
8. Compensatory Modified Field Area Allowance (a) Following areas in Punjab and Rajasthan:- Areas West of line joining Jessai, Barmer, Jaisalmer, Pokharan, Udasar, Mahajan Ranges, Suratgarh, Lalgarh Jattan, Abohar, Govindgarh, Fazilka, Jandiala Guru, Moga, Dholewal, Deas, Bir Sarangwal, Hussainiwala, Dera Baba Nanak, Laisain pulge upto the international border, all inclusive.
(b) Following areas in Haryana:- Satrod (Hissar).
(c) Following areas in Himachal Pradesh: Areas North of line joining Narkhanda. keylong upto Field Area line/ High Altitude line. (
d) Following areas in Arunachal Pradesh and Assam:-
(i) Cachar and North Cachar and District of Assam including Silchar;
(ii) All areas of Arunachal Pradesh and Assam North of river Brahmaputra except Tejpur-Misamari and Field Areas.
(e) Throughout Mizoram and Tripura.
(f) Following areas in Sikkim and West Bengal:- Areas Northwards of line joining Sevoke LV 9112, Burdong LV 985 - Sherwani LV 9453 _ Bagrakot LW 0113- Damdim LW 1109 _ New Mal- Hasimara-QB 7894 Ganga Ram Tea Estate QA 1377 upto the High Altitude line/ field area line/ international border, all inclusive.
(g) Following areas in Uttar Pradesh:- Areas North of line joining Uttarkashi. Karan Prayag, Gauchar, Joshimath, Chamoli, Rudra Prayag, Askote, Charamgad, Dharchula, Kausani and Narendra Nagar upto international border, all inclusive.
(h) Following areas in Jammu and Kashmir:
(i) Areas West of line joining Pattan, Baramulla, Kupwara, Drugmula, Panges, Mankes Buniyar, Pantha Chowk, Khanabal, Anantnag, Khundru and Khru upto the existing High Altitude line, all inclusive;
(ii) Areas West of line joining _ BP _19. Brahmanadi-Bari, Jindra, Dhansal, Katra, Sanjhi Chatt, Batote Patni Top, Ram ban and Banihal upto the exiting High altitude line, all inclusive. 13[Rs. 1,000 per month]
9. Any special allowance in the nature of counter-insurgency allowance granted to the members of armed fores operating in areas away from their permanent locations for a period of more than 30 days Whole of India 14[Rs. 3,900 per month]
1510.
Transport allowance granted to an employee 16[other than an employee referred to in serial number 11] to meet his expenditure for the purpose of commuting between the place of his residence and the place of his duty. Whole of India Rs. 800 per month
17[11.
Transport allowance granted to an employee, who is blind or orthopaedically handicapped with disability of lower extremities, to meet his expenditure for the purpose of commuting between the place of his residence and the place of his residence and the place of his duty. Whole of India Rs. 1,600 per month]
18[12.
Underground allowance granted to an employee who is working in uncongenial, unnatural climate in underground 21[***] mines.
Whole of India. Rs.800 per month.]
19[13.
Any special allowance in the nature of high altitude (uncongenial climate) allowance granted to the member of the armed forces operating in high altitude areas (a) For altitude of 9,000 to 15,000 feet
(b) For altitude of 15,000 feet Rs. 1,060 per month Rs. 1,600 per month
14. Any special allowance granted to the members of the armed forces in the nature of special compensatory highly active field area allowance Whole of India Rs. 4,200 per month]
20[15.
Any special allowance granted to the member of the armed forces in the nature of Island (duty) allowance Andaman & Nicobar and Lakshadweep Group of Islands Rs. 3,250 per month:]
________________________
1. Inserted by the IT (Eighth Amdt.) Rules, 1995, w.e.f. 1-7-1995.
2. Substituted for Composite Hill Compensatory Allowance by the IT (Third Amdt.) Rules 2000, w.r.ef. 1-8-1997
3 Substituted for Rs. 600, by the IT (Third Amdt.) Rules, 2000, w.r.ef. 1-8-1997.
4. Substituted for Rs. 1200 by the IT (Third Amdt.) Rules, 2000, w.r.e.f. 1-8-1997.
5. Substituded for Rs. 150 by the IT (Third Amdt.) Rules, 2000, w.r.e.f. 1-8-1997.
6. Substituded, by the IT (Third Amdt.) Rules, 2000, w.r.e.f. 1-8-1997.
7. Substituted for Tribal Area Allowance by the IT (Third Amdt.) Rules, 2000, w.r.e.f. 1-8-1997.
8. Substituted for Rs. 100, by the IT (Third Amdt.) Rules, 2000, w.r.e.f. 1-8-1997.
9. Substituted for Rs. 3,000 by the IT (Third Amdt.) Rules, 2000, w.r.e.f. 1-8-1997.
10. Substituted for Rs. 50, by the IT (Third Amdt.) Rules, 2000, w.r.e.f. 1-8-1997.
11. Subsitituted for Rs. 150, by the IT (Third Amdt.) Rules, 2000, w.r.e.f. 1-8-1997.
12. Substituted for Rs. 1,300 by the IT (Twenty-second Amdt.) Rules, 2000, w.r.e.f. 1-5-1999. Earlier Rs. 1,300 was substituted for Rs. 975 by the IT (Third Amdt.) Rules, 2000, w.r.e.f. 1-8-1997.
13. Substituted for Rs. 500 by the IT (Twenty-second Amdt.) Rules, w.r.e.f. 1-5-1999. Earlier Rs. 500 was substituted for Rs. 375 by the IT (Third Amdt.) Rules, 2000, w.r.e.f. 1-8-1997.
14. Substituted for Rs. 1,300 by the IT ( Twenty-second Amdt.) Rules, 2000, w.r.e.f 1-5-1999. Earlier Rs. 1,300 was substituted for Rs. 975 by the IT (Third Amdt.) Rules, 2000, w.r.e.f. 1-8-1997.
15. Inserted by the IT (Seventh Amdt.) Rules, 1998, w.r.e.f. 1-8
16. Inserted by the IT ((Twenty-ninth Amdt.) Rules, 1999, w.r.e.f. 1-8-1997.
17. Inserted by the IT (Twenty-ninth Amdt.) Rules, 1999, w.r.e.f. 1-8-1997.
18. Inserted by the IT (Fourth Amdt.) Rules, 2000, w.e.f. 24-4-2000.
19. Inserted by the IT (Twenty-second Amdt.) Rules, 2000, w.r.e.f 1-5-1999.
20. Inserted by the IT (Twenty-first Amdt.) Rules, 2000, w.r.e.f. 29-2-2000.
21. Omitted by the IT (Thirteenth Amdt.) Rules, 2007, prior to omission it read as "coal".
22. Substituted by the Income-tax (Eighth Amendment) Rules, 2010 vide Notification No. 85/2010 dated 22.11.2010 w.e.f. 01.09.2008 for the following : - "9[Rs. 6,000 per month]"
(1) For the purposes of clause (19) of section 10, the circumstances of death of a member of the armed forces (including para-militray forces) of the Union in the course of operational duties shall be the following, namely :-
(i) acts of violence or kidnepping or attacks by terrorists or anti-social elements;
(ii) action against extremists or anti-social elements;
(iii) enemy action in international war;
(iv) action during deployment with a peace keeping mission abroad;
(v) border skirmishes;
(vi) laying or clearance of mines including enemy mines as also mine sweeping operations;
(vii) explosions of mines while laying operationally oriented mine-fields or lifting or negotiation mine fields laid by the enemy or own forces in operational areas near international borders or the line of control ;
(viii) in the aid of civil power in dealing with natural calamities and rescue operations;
(ix) in the aid of civil power in quelling agitation or riots or revolts by demonstrators.
(2) It shall be certified by the Head of the Department where the deceased member of the armed forces (including para-military forces) last served, or the service headquarters, as the case may be, that the death of such member has occurred in the course of operational duties in circumstances mentioned in sub-rule (1).
_________________________________________
1.Inserted by Income-tax (4th Amendment) Rules, 2005 vide Notification No: 45/2005 dated 09.02.2005.
1[Amount of annual receipts for the purposes of sub-clauses (iiiad) and (iiiae) of clause (23C) of section 10.
(1) For the purposes of sub-clause (iiiad) of clause (23C) of section 10, the amount of annual receipts on or after the 1st day of April, 1998, of any university or other educational institution, existing solely for educational purposes and not for purposes of profit, shall be one crore rupees.
(2) For the purposes of sub-clause (iiiae) of clause (23C) of section 10, the amount of annual receipts on or after the 1st day of April, 1998, of any hospital or other institution for the reception and treatment of persons suffering from illness or mental defectiveness or for the reception and treatment of persons during convalescence or of persons requiring medical attention or rehabilitation, existing solely for philanthropic purposes and not for purposes of profit, shall be one crore rupees. Application under section 10(23) and under sub-clauses (iv) and (v) of section 10 clause (23C)
______________________________
1 Inserted by the IT (Eighteenth Amdt.) Rules, 1998, w.e.f. 12-10-1998.
(1) The prescribed authority under sub-clauses (iv) and (v) of clause (23C) of section 10 shall be the Chief Commissioner or Director General, to whom the application shall be made as provided in sub-rule (2).
(2) The application to be furnished under sub-clauses (iv) and (v) of clause (23C) of section 10 by a fund, trust or institution shall be in Form No. 56.
Explanation. For the purposes of this rule, Chief Commissioner or Director General means the Chief Commissioner or Director General whom the Central Board of Direct Taxes may, authorise to act as prescribed authority for the purposes of sub-clause (iv) or sub-clause (v) of clause (23C) of section 10 in relation to any fund or trust or institution.]
__________________________________
1. Inserted by the IT (Ninth Amdt.) Rules, 1989, w.e.f. 28-8-1989.
2. Substituted by the Income-tax (Sixth Amendment) Rules, 2007 vide notification No. 194/2007 dated 30.05.2007 w.e.f. 01.06.2007. Prior to substitution it read as:
"2C.- 1[Application under section 10(23) and under sub-clauses (iv) and (v) of section 10(23C). (1) The prescribed authority under clause (23) and sub-clauses (iv) and (v) of clause (23C) of section 10 shall be the Director General (Income-tax Exemptions), to whom the applications shall be made as provided in sub-rules (2) and (3).
(2) The Form in which an application is to be furnished under clause (23C) of section 10 by a sports association or institution shall be in Form No. 55.
(3) The Form of application to be furnished under sub-clauses (iv) and (v) of clause (23C) of section 10 by a fund, trust or institution shall be in Form No. 56.]."
(1) The prescribed authority under sub-clauses (vi) and (via) of clause (23C) of section 10 shall be the Chief Commissioner or Director General, to whom the application shall be made as provided in sub-rule (2).
(1A) The prescribed authority under sub-clauses (vi) and (via) of clause (23C) of section 10 shall be the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 (54 of 1963) for applications received prior to 3rd day of April, 2001.
3[Provided that in case of applications received prior to 3rd day of April, 2001 where no order has been passed granting approval or rejecting the application as on 31st day of May, 2007, the prescribed authority under sub-clauses (vi) and (via) of clause (23C) of section 10 shall be the Chief Commissioner or Director General.]
(2) An application for approval shall be made in Form No. 56D by any university or other educational institution or any hospital or other medical institution referred to in sub-clause (vi) or sub-clause (via) of clause (23C) of section 10.
(3) 2[The approval of the Central Board of Direct Taxes or Chief Commissioner or Director General, as the case may be, granted before the 1st day of December, 2006 shall at any one time have effect for a period not exceeding three assessment years.]
4[Explanation. For the purposes of this rule, Chief Commissioner or Director General means the Chief Commissioner or Director General whom the Central Board of Direct Taxes may, authorise to act as prescribed authority, for the purposes of sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, in relation to any university or other educational institution or any hospital or other medical institution.]
_________________________________
1 Substituted by the I.T. (Seventeenth Amendment) Rules 2001, w.e.f. 38-2001. Prior to its substituted the Rule stood as under :
(1) The prescribed authority under sub-clauses (vi) and (via) of clause (23C) of section 10 shall be the [Chief Commissioner], to whom the application shall be made as provided in sub-rule (2),
(2) An application for approval shall be made in Form No. 56D by any university or other educational institution or any hospital or other medical institution referred to in sub-clause (vi) or sub-clause (via) of clause (23C) of section 10
(3) The approval of the [Chief Commissioner] shall at any one time have effect for a period not exceeding three assessment years.]
Explanation.--For the purposes of this rule, the "Chief Commissioner" means the Chief Commissioner to whom the Assessing Officer having jurisdiction to assess the university or other educational institutions or any hospital or other medical institutions referred to in sub-clattse(vi) or sub-clause (via) of clause (23C) of section 10 of the Act is subordinate.
2. Substituted by the I.T. (Fourteenth Amendment) Rules 2006, dated 24-11-2006. Prior to its substituted the Rule stood as under :
(3) The approval of the Central Board of Direct Taxes or Chief Commissioner or Director General, as the case may be, shall at any one time have effect for a period not exceeding three assessment years.
3. Inserted by the Income-tax (Fifth Amendment) Rules, 2007 vide notification no. 193/2007 dated 30.05.2007 w.e.f. 01.06.2007.
4. Substituted by the Income-tax (Fifth Amendment) Rules, 2007 vide notification no. 193/2007 dated 30.05.2007 w.e.f. 01.06.2007. Prior to substitution it read as:
"Explanation.--For the purposes of this rule, "Chief Commissioner or Director General" means the Chief Commissioner or Director General to whom the Assessing Officer having jurisdiction to assess the university or other educational institutions or any hospital or other medical institutions referred to in sub-clause (vi) and sub-clause (via) of clause (23C) of Section 10 of the Act is subordinate."
.(1) For the purposes of clause (23F) of section 10, the prescribed authority shall be the Director of Income-tax (Exemptions) having jurisdiction over the venture capital fund or the venture capital company who makes application for approval under sub-rule (2).
(2) An application for approval shall be made in Form No.56A by a venture capital fund or a venture capital company to the Director of Income-tax (Exemptions) referred to in sub-rule (1).
(3) Every application under sub-rule (2) may be made in any previous year in which any income by way of dividend or long-term capital gains of a venture capital fund or a venture capital company from investments made by way of equity shares in a venture capital undertaking shall not be included in computing the total income of such venture capital fund or venture capital company.
(4) Every application for approval under sub-rule (2) shall be accompanied by the following documents, namely :--
(a) a copy of trust deed or certificate of incorporation under Companies Act, 1956 (1 of 1956); balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made;
(c) Forms 56B and 56C duly filled in and signed by the applicant; and
(d) a copy of the certificate of registration issued by the Securities and Exchange Board of India.
(5) The Director of Income-tax (Exemptions) shall approve the venture capital fund or the venture capital company, as the case may be, subject to the following conditions, namely:--
(a) the venture capital fund or the venture capital company, as the case may be, is registered with the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of1992):
(b)2[***]
(c)2[***]
(d) a venture capital fund or a venture capital company, as the case may be, shall not invest more than 3[twenty] per cent of its total monies raised or total paid-up share capital in one venture capital undertaking;
(e) a venture capital fund or a venture capital company, as the case may be, shall not make investment of more than forty per cent in the equity capital of one venture capital undertaking;
(f) every venture capital fund and venture capital company, shall maintain books of account and get such books audited by an accountant, as defined in Explanation to sub-section (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Director of Income-tax (Exemptions) before the due date of filing of the return under sub-section (1) of section 139.
(6) The Director of Income-tax (Exemptions) shall pass an order in writing granting approval or refusing approval to the venture capital fund or venture capital company, as the case may be :
Provided that the Director of Income-tax (Exempt ions) shall not refuse the approval except in concurrence with the Director-General of Income-tax (Exemptions):
Provided further that every venture capital fund or venture capital company, as the case may be, shall be given an opportunity of being heard before passing an order under this rule.
(7) The Director of Income-tax (Exemptions) shall withdraw the approval granted under sub-rule (6) in the following circumstances, namely :--
(a) if the venture capital fund or the venture capital company--
(i) fails to make investments in the manner specified in sub-rule (5);
(ii) invests more than 3[twenty]per cent of the monies raised by a venture capital fund or 3[twenty] per cent of paid-up share capital of the venture capital company, as the case may be, in one venture capital undertaking;
(iii) makes an investment of more than forty per cent in the equity capital in one venture capital undertaking; fails to maintain books of account and get such accounts audited by an accountant or fails to file the audit report required in clause (f) of sub-rule (5);
(iv) violates the provisions of the Act or rules made there under;
(b) if the certificate of registration granted under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), to a venture capital fund or a venture capital company is suspended or cancelled by the Securities and Exchange Board of India.
___________________________
1. Inserted by the IT (Eleventh Amdt.) Rules, 1995, w.e.f. 18-7-1995.
2. Clauses (b) and (c) omitted by the IT (Twenty-sixth Amdt.) Rules, 1998, w.e.f. 1-4-1999. Prior to its omission clauses (b) and (c), as inserted by the IT (Eleventh Amdt.) Rules, 1995, w.e.f. 18-7-1995, reads as under:
(b) every venture capital fund invests an amount not less than eighty per cent of its total monies (hereinafter referred to as such monies) raised for investments by way of acquiring equity shares of the venture capital undertakings in the following manner, namely:-
(i) twenty per cent or more of such monies shall be invested during or before the end of the previous year in which the application is made under sub-rule (3) by way of acquiring equity shares of the venture vapital undertakings;
(ii) fifty per cent or more of such monies [including the investments referred to in sub-clause (i) above] shall be invested, during or before the end of the previous year immediately succeeding the previous year in which investment of twenty per cent referred to in sub-clause (i) has been made, by way of acquiring equity shares of the venture capital undertakings;
(iii) eighty per cent or more of such monies [including the investments, referred to in sub-clause (ii) above] shall be invested, during or before the end of the previous year immediately succeeding the previous year in which fifty per cent investment referred to in sub-clause (ii) has been made, by way of acquiring equity shares of the venture capital undertakings;
(c) every venture capital company invests an amount not less than eighty per cent of its total paid-up capital (hereinafter referred to as such capital) by way of acquiring equity shares of the venture capital undertakings in the following manner, namely :--
(i) twenty per cent or more of such capital shall be invested, during or before the end of the previous year in which theapplication is made under sub-rule (3), by way of acquiring equity shares of the venture capital undertaking;
(ii) fifty per cent or more of such capital [including the investments referred to in sub-clause (i) above] shall be invested,
during or before the end ofthe previous year immediately succeeding the previous year in which investment of twenty per cent referred to in sub-clause (i) above has been mede, by way of acquiring equity shares of the venture capital undertadings;
(iii) eighty per cent or more of such capital [including the investments referred to in sub-clause (ii) above] shall be invested, during or before the end of the previous year in which fifty per cent investment referred to in sub-clause (ii) has been made, by way of acquiring equity shares of the venture capital undertakings;
3. Substituted for five by the IT (Sixth Amdt.) Rules, 1997, w.e.f. 28-4-1997.
.(1) An application for approval shall be made in Form No. 56AA by a venture capital fund or a venture capital company to the Central Government.
(2) Every application under sub-rule (1) may be made in any previous year in which any income by way of dividend or long-term capital gains of a venture capital fund or a venture capital company from investments made by way of equity shares in a venture capital undertaking shall not be included in computing the total income of such venture capital fund or venture capital company.
(3) Every application for approval under sub-rule (1) shall be accompanied by the following documents, namely :--
(a) A copy of the trust deed registered under the provision of the Registration Act, 1908 or a certificate of incorporation under the Companies Act, 1956 (1 of 1956) ;
(b) Balance sheets and profit and loss accounts for three previous years immediately preceding the previous year in which the application is made;
(c) Forms 56BA and 56CA duly filled in and signed by the applicant; and
(d) A copy of the certificate of registration issued by the Securities and Exchange Board of India under sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) .
(4) The Central Government may approve the venture capital fund or the venture capital company, as the case may be, subject to the following conditions, namely:--
(a) A venture capital fund or a venture capital company, as the case may be, is registered with the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) ;
(b) A venture capital fund or a venture capital company, as the case may be, shall not invest more than twenty-five per cent of its total monies raised or total paid-up share capital in one venture capital undertaking;
(c) Every venture capital fund and venture capital company, shall maintain books of account and get such books audited by an accountant, as defined in Explanation to sub-section (2) of section 288 of the Act and, furnish the report of such audit duly signed and verified by such accountant to the Central Government before the due date of filing of the return under sub-section (1) of section 139 of the Act.
(5) The Central Government may pass an order in writing granting approval or refusing approval to the venture capital fund or venture capital company, as the case may be :
Provided that no order refusing the approval shall be passed unless an opportunity of being heard has been given to the venture capital fund or the venture capital company.
(6) The approval of the Central Government under sub-rule (5) shall at any one time has effect for such assessment year or years, not exceeding three assessment years.
(7) The Central Government shall withdraw the approval granted under sub-rule (5) in the following circumstances :--
(a) If the venture capital fund or the venture capital company--
(i) Fails to make investments in the manner specified in sub-rule (4) ;
(ii) Invests more than twenty-five per cent of the monies raised by a venture capital fund or twenty-five per cent of paid-up share capital of the venture capital company, as the case may be, in one venture capital undertaking;
(iii) Fails to maintain books of accounts and get such accounts audited by an accountant or fails to file the audit report required in clause (d) of sub-rule (4) ;
(iv) Violates the provisions of the Act or rules made there under;
(b) If the certificate of registration granted under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) , to a venture capital fund or a venture capital company is suspended or cancelled by the Securities and Exchange Board of India.
__________________________
1. Inserted by the IT (Thirty-fourth Amendment) Rules, 1999, w.e.f. 27-12-1999.
(1) An application for approval shall be made on or after the 1st day of June 1998 in Form No. 56E by an enterprise to the Central Government.
(2) Every application for approval made under sub-rule (1) shall be accompanied by the following documents, namely:
(a) a copy of certificate of incorporation under the Companies Act, 1956 (1 of 1956) or a copy of the document evidencing the constitution of the enterprise and its legal status;
(b) a copy of the project report or agreement in respect of the eligible business duly approved by the Central Government or any State Government or any local authority or any other statutory body, as the case may be;
(c) balance sheets and profit and loss accounts for the three previous years immediately preceding the previous year in which the application has been made and also for the relevant part of the previous year in which the application has been made :
Provided that an application made under sub-rule (1) may be accompanied by the balance sheets and profit and loss accounts for less than three previous years where an enterprise has been formed at any time during the three previous years immediately preceding the previous year in which the application has been made and also for the relevant part of the previous year in which the application has been made.
(3) The Central Government shall approve an enterprise for the purposes of clause (23G) of section 10, if such enterprise is wholly engaged in the eligible business.
(4) The Central Government may, before approving an enterprise, call for such documents (including audited annual accounts) or information from the enterprise, as it thinks necessary in order to satisfy itself that such enterprise is wholly engaged in the eligible business and that Government may also make such enquiries as it may deem necessary in this behalf.
(5) The Central Government shall pass an order in writing while granting approval or refusing approval to the enterprise:
Provided that no order refusing the approval shall be passed unless an opportunity of being heard has been given to the enterprise.
(6) Every enterprise approved under sub-rule (5) shall maintain books of account and get such books audited by an accountant, as defined in Explanation to subsection (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Chief Commissioner of Income-tax under whose jurisdiction it is assessed, before the due date of filing of the return under subsection (1) of section 139.
(7) Where the enterprise,-
(a) ceases to carry on the eligible business; or
(b) fails to maintain books of account and get such accounts audited by an accountant as required by sub-rule (6); or
(c) fails to furnish the audit report as required by sub-rule (6);
the Chief Commissioner of Income-tax shall, after making such enquiries as he may deem necessary, furnish a report on the circumstances referred to in clause (a), (b) and (c) to the Central Government, within six months from the due date of filing of return under sub-section (1) of section 139.
(8) The Central Government, on being satisfied that any or all of the circumstances referred to in clauses (a), (b) and (c) of sub-rule (7) exist, shall withdraw the approval granted under sub-rule (5).
Provided that no order withdrawing the approval shall be passed unless an opportunity of being heard has been given to the enterprise.
Explanation: For the purposes of this rule,
(a) the expression enterprise means any enterprise wholly engaged in the eligible business ;
(b) the expression eligible business means the business referred to in sub-section(4) of section 80 IA or a housing project referred to in sub-section (10) of section 80- IB and which fulfils the conditions specified in the said sub-sections or a hotel project or a hospital project as defined in clauses (g) and (h) of Explanation 1 to clause (23G) of Section 10.]
_______________________________
1. Substituted by IT (Sixth Amdt), Rules, 2004 w.e.f. 12.04.2004, which was earlier, inserted by the IT (Eighteen th Amdt.) Rules, 1998, w.e.f. 12-10-1998. Prior to Substitution the text of Rule 2E read as under:
2E.- Guidelines for approval under clause (23G) of section 10.(1) An application for approval shall be made on or after the 1st day of June, 1998 in Form No. 56E by an enterprise to the Central Government.
(2) Every application for approval made under sub-rule (1) shall be accompanied by the following documents, namely :--
(a) a copy of certificate of incorporation under the Companies Act, 1956 (1 of 1956) or a copy of the document evidencing the constitution of the enterprise and its legal status;
(b) a copy of the project report or agreement in respect of the infrastructure facility duly approved by the Central Government or any State Government or any local authority or any other statutory body, as the case may be;
(c) balance sheets and profit and loss accounts for the three previous years immediately preceding the previous year in which the application has been made and also for the relevant part of the previous year in which the application has been made :
Provided that an application made under sub-rule (1) may be accompanied by the balance sheets and profit and loss accounts for less than three previous years where an enterprise has been formed at any time during the three previous years immediately preceding the previous year in which the application has been made and also for the relevant part of the previous year in which the application has been made.
(3) The Central Government shall approve an enterprise for the purposes of clause (23G) of section 10, if such enterprise is wholly engaged in the business of developing, maintaining and operating any infrastructure facility.
(4) The Central Government may, before approving an enterprise, call for such documents (including audited annual accounts) or information from the enterprise, as it thinks necessary in order to satisfy itself that such enterprise is wholly engaged in the business of developing, maintaining and operating an infrastructure facility and that Government may also make such enquiries as it may deem necessary in this behalf.
(5) The Central Government shall pass an order in writing while granting approval or refusing approval to the enterprise :
Provided that no order refusing the approval shall be passed unless an opportunity of being heard has been given to the enterprise.
(6) The approval of the Central Government under sub-rule (5) shall at any one time have effect for a period not exceeding three assessment years.
(7) Every enterprise approved under sub-rule (5) shall maintain books of account and get such books audited by an accountant, as defined in Explanation to subsection (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Central Government before the due date of filing of the return under sub-section (1) of section 139.
(8) The Central Government shall withdraw the approval granted under sub-rule (5) if the enterprise--
(a) ceases to carry on infrastructure facility; or
(b) fails to maintain books of account and get such accounts audited by an accountant as required by sub-rule (7); or
(c) fails to furnish the audit report as required by sub-rule (7).
Explanation : For the purposes of this rule,--
(a) the expression "enterprise" means any enterprise wholly engaged in the business of developing, maintaining and operating any infrastructure facility;
(b) the expression "infrastructure facility" shall have the meaning assigned to it in clause (c) of Explanation to clause (23G) of section 10.
20[For the purpose of computing the income chargeable under the head Salaries, the value of perquisites provided by the employer directly or indirectly to the assessee (hereinafter referred to as employee) or to any member of his household by reason of his employment shall be determined in accordance with the following sub-rules, namely:-
(1) The value of residential accommodation provided by the employer during the previous year shall be determined on the basis provided in the Table below :-
TABLE - I
Sl.
No. Circumstances Where accommodation is unfurnished Where accommodation is furnished
(1) (2) (3) (4)
(1) Where the accommodation is provided by the Central Government or any State Government to the employees either holding office or post in connection with the affairs of the Union or of such State. License fee determined by the Central Government or any State Government in respect of accommodation in accordance with the rules framed by such Government as reduced by the rent actually paid by the employee. The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment) or if such furniture is hired from a third party, the actual hire charges payable for the same as reduced by any charges paid or payable for he same by the employee during the previous year.
(2) Where the accommodation is provided by any other employer and
(a) where the accommodation is owned by the employer, or
(b) where the accommodation is taken on lease or rent by the employer. (i) 15% of salary in cities having population exceeding 25 lakhs as per 2001 census;
(ii) 10% of salary in cities having population exceeding 10 lakhs but not exceeding 25 lakhs as per 2001 census;
(iii) 7.5% of salary in other areas, in respect of the period during which the said accommodation was occupied by the employee during the previous year as reduced by the rent, if any, actually paid by the employee.
Actual amount of lease rental paid or payable by the employer or 15% of salary whichever is lower as reduced by the rent, if any, actually paid by the employee. The value of perquisites as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, refrigerators, other household appliances, air-conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year.
The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (incl ding television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year.
(3) Where the accommodation is provided by the employer specified in serial number (1) or (2) in a hotel (except where the employee is provided such accommodation for a period not exceeding in aggregate fifteen days on his transfer from one place to another) Not applicable 24% of salary paid or payable for the previous year or the actual charges paid or payable to such hotel, which is lower, for the period during which such accommodation is provided as reduced by the rent, if any, actually paid or payable by the employee:
Provided that nothing contained in this sub-rule shall apply to any accommodation provided to an employee working at a mining site or an on-shore oil exploration site or a project execution site, or a dam site or a power generation site or an off-shore site-
(i) which, being of a temporary nature and having plinth area not exceeding 800 square feet, is located not less than eight kilometers away from the local limits of any municipality or a cantonment board; or
(ii) which is located in a remote area:
Provided further that where on account of his transfer from one place to another, the employee is provided with accommodation at the new place of posting while retaining the accommodation at the other place, the value of perquisite shall be determined with reference to only one such accommodation which has the lower value with reference to the Table above for a period not exceeding 90 days and thereafter the value of perquisite shall be charged for both such accommodations in accordance with the Table.
Explanation.- For the purposes of this sub-rule, where the accommodation is provided by the Central Government or any State Government to an employee who is serving on deputation with any body or undertaking under the control of such Government,-
(i) the employer of such an employee shall be deemed to be that body or undertaking where the employee is serving on deputation; and
(ii) the value of perquisite of such an accommodation shall be the amount calculated in accordance with Sl. No. (2)(a) of Table I, as if the accommodation is owned by the employer.
(2) (A) The value of perquisite by way of use of motor car to an employee by an employer shall be determined in accordance with the following Table, namely:-
TABLE II
VALUE OF PERQUISITE PER CALENDAR MONTH
Sl.
No. Circumstances Where cubic capacity of engine does not exceed 1.6 litres Where cubic capacity of engine exceeds 1.6 litres
(1) (2) (3) (4)
(1) Where the motor car is owned or hired by the employer and
(a) is used wholly and exclusively in the performance of his official duties;
(b) is used exclusively for the private or personal purposes of the employee or any member of his household and the running and maintenance expenses are met or reimbursed by the employer;
(c) is used partly in the performance of duties and partly for private or personal purposes of his own or any member of his household and-
(i) the expenses on maintenance and running are met or reimbursed by the employer;
(ii) the expenses on running and maintenance for private or personal use are fully met by the assessee. No value:
Providedthat the documents specified in clause (B) of this sub-rule are maintained by the employer.
Actual amount of expenditure incurred by the employer on the running and maintenance of motor car during the relevant previous year including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by any amount charged form the employee for such use.
Rs. 1,800 (plus Rs. 900, if chauffeur is also provided to run the motor car)
Rs. 600 (plus Rs.900, if chauffeur is also provided by the employer to run the motor car) No value:
Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.
Actual amount of expenditure incurred by the employer on the running and maintenance of motor car during the relevant previous year including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by any amount charged form the employee for such use.
Rs. 2,400 (plus Rs. 900, if chauffeur is also provided to run the motor car)
Rs. 900 (plus Rs. 900, if chauffeur is also provided to run the motor car)
(2) Where the employee owns a motor car but the actual running and maintenance charges (including remuneration of the chauffeur, if any) are met or reimbursed to him by the employer and-
(i) such reimbursement is for the use of the vehicle wholly and exclusively for official purposes;
(ii) such reimbursement is for the use of the vehicle partly for official purposes and partly for personal or private purposes of the employee or any member of his household. No value:
Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.
Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above. No value:
Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.
Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above
(3) Where the employee owns any other automotive conveyance but the actual running and maintenance charges are met or reimbursed to him by the employer and
(i) such reimbursement is for the use of the vehicle wholly and exclusively for official purposes;
(ii) such reimbursement is for the use of vehicle partly for official purposes and partly for personal or private purposes of the employee. No value:
Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.
Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount of Rs. 900. Not applicable.
Provided that where one or more motor-cars are owned or hired by the employer and the employee or any member of his household are allowed the use of such motor-car or all of any of such motor-cars (otherwise than wholly and exclusively in the performance of his duties), the value of perquisite shall be the amount calculated in respect of one car in accordance with Sl. No. (1)(c)(i) of Table II as if the employee had been provided one motor-car for use partly in the performance of his duties and partly for his private or personal purposes and the amount calculated in respect of the other car or cars in accordance with Sl. No. (1)(b) of Table II as if he had been provided with such car exclusively for his private or personal purposes.
(B) Where the employer or the employee claims that the motor-car is used wholly and exclusively in the performance of official duty or that the actual expenses on the running and maintenance of the motor-car owned by the employee for official purposes is more than the amounts deductible in Sl. No. 2(ii) or 3(ii) of Table II, he may claim a higher amount attributable to such official use and the value of perquisite in such a case shall be the actual amount of charges met or reimbursed by the employer was reduced by such higher amount attributable to official use of the vehicle provided that the following conditions are fulfilled:-
(a) the employer has maintained complete details of journey undertaken for official purpose which may include date of journey, destination, mileage, and the amount of expenditure incurred thereon;
(b) the employer gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties.
Explanation.- For the purposes of this sub-rule, the normal wear and tear of a motor-car shall be taken at 10% per annum of the actual cost of the motor-car or cars.
(3) The value of benefit to the employee or any member of his household resulting from the provision by the employer or services of a sweeper, a gardener, a watchman or a personal attendant, shall be the actual cost to the employer. The actual cost in such a case shall be the total amount of salary paid or payable by the employer or any other person on his behalf for such services as reduced by any amount paid by the employee for such services.
(4) The value of the benefit to the employee resulting from the supply of gas, electric energy or water for his household consumption shall be determined as the sum equal to the amount paid on that account by the employer to the agency supplying the gas, electric energy or water. Where such supply is made from resources owned by the employer, without purchasing them from any other outside agency, the value of perquisite would be the manufacturing cost per unit incurred by the employer. Where the employee is paying any amount in respect of such services, the amount so paid shall be deducted from the value so arrived at.
(5) The value of benefit to the employee resulting from the provision of free or concessional educational facilities for any member of his household shall be determined as the sum equal to the amount of expenditure incurred by the employer in that behalf or where the educational institution is itself maintained and owned by the employer or where free educational facilities for such member of employees household are allowed in any other educational institution by reason of his being in employment of that employer, the value of the perquisite to the employee shall be determined with reference to the cost of such education in a similar institution in or near the locality. Where any amount is paid or recovered from the employee on that account, the value of benefit shall be reduced by the amount so paid or recovered:
Provided that where the educational institution itself is maintained and owned by the employer and free educational facilities are provided to the children of the employee or where such free educational facilities are provided in any institution by reason of his being in employment of that employer, nothing contained in this sub-rule shall apply if the cost of such education or the value of such benefit per child does not exceed one thousand rupees per month.
(6) The value of any benefit or amenity resulting from the provision by an employer who is engaged in the carriage of passengers or goods, to any employee or to any member of his household for personal or private journey free of cost or at concessional fare, in any conveyance owned, leased or made available by any other arrangement by such employer for the purpose of transport of passengers or goods shall be taken to be the value at which such benefit or amenity is offered by such employer to the public as reduced by the amount, if any, paid by or recovered from the employee for such benefit or amenity:
Provided that nothing contained in this sub-rule shall apply to the employees of an airline or the railways.
(7) In terms of provisions contained in sub-clause (viii) of clause 2 of section 17, the following other benefits or amenities and value thereof shall be determined in the manner provided hereunder:
(i) The value of the benefit to the assessee resulting from the provision of interest-free or concessional loan for any purpose made available to the employee or any member of his household during the relevant previous year by the employer or any person on his behalf shall be determined as the sum equal to the interest computed at the rate charged per annum by the State Bank of India, constituted under the State Bank of India Act, 1955 (23 of 1955), as on the 1st day of the relevant previous year in respect of loans for the same purpose advanced by it on the maximum outstanding monthly balance as reduced by the interest, if any, actually paid by him or any such member of his household:
Provided that no value would be charged if such loans are made available for medical treatment in respect of diseases specified in rule 3A of these Rules or where the amount of loans are petty not exceeding in the aggregate twenty thousand rupees:
Provided further that where the benefit relates to the loans made available for medical treatment referred to above, the exemption so provided shall not apply to so much of the loan as has been reimbursed to the employee under any medical insurance scheme.
(ii) The value of traveling, touring, accommodation and any other expenses paid for or borne or reimbursed by the employer for any holiday availed of by the employee or any member of his household, other than concession or assistance referred to in rule 2B of these rules, shall be determined as the sum equal to the amount of the expenditure incurred by such employer in that behalf. Where such facility is maintained by the employer, and is not available uniformly to all employees, the value of benefit shall be taken to be the value at which such facilities are offered by other agencies to the public. Where the employee is on official tour and the expenses are incurred in respect of any member of his household accompanying him, the amount of expenditure so incurred shall also be a fringe benefit or amenity:
Provided that where any official tour is extended as a vacation, the value of such fringe benefit shall be limited to the expenses incurred in relation to such extended period of stay or vacation. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity.
(iii) The value of free food and non-alcoholic beverages provided by the employer to an employee shall be the amount of expenditure incurred by such employer. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity:
Provided that nothing contained in this clause shall apply to free food and non-alcoholic beverages provided by such employer during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, to the extent the value thereof either case does not exceed fifty rupees per meal or to tea or snacks provided during working hours or to free food and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation.
(iv) The value of any gift, or voucher, or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise from the employer shall be determined as the sum equal to the amount of such gift:
Provided that where the value of such gift, voucher or token, as the case may be, is below five thousand rupees in the aggregate during the previous year, the value of perquisite shall be taken as nil.
(v) The amount of expenses including membership fees and annual fees incurred by the employee or any member of his household, which is charged to a credit card (including any add-on-card) provided by the employer, or otherwise, paid for or reimbursed by such employer shall be taken to be the value of perquisite chargeable to tax as reduced by the amount, if any paid or recovered from the employee for such benefit or amenity:
Provided that there shall be no value of such benefit where expenses are incurred wholly and exclusively for official purposes and the following conditions are fulfilled:
(a) complete details in respect of such expenditure are maintained by the employer which may, inter alia, include the date of expenditure and the nature of expenditure;
(b) the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.
(vi) (A) The value of benefit to the employee resulting from the payment or reimbursement by the employer of any expenditure incurred (including the amount of annual or periodical fee) in a club by him or by an member of his household shall be determined to be the actual amount of expenditure incurred or reimbursed by such employer on that account. The amount so determined shall be reduced by the amount, if any paid or recovered from the employee for such benefit or amenity:
Provided that where the employer has obtained corporate membership of the club and the facility is enjoyed by the employee or any member of his household, the value of perquisite shall not include the initial fee paid for acquiring such corporate membership.
(B) Nothing contained in this clause shall apply if such expenditure is incurred wholly and exclusively for business purposes and the following conditions are fulfilled:-
(a) complete details in respect of such expenditure are maintained by the employer which may, inter alia, include the date of expenditure, the nature of expenditure and its business expediency;
(b) the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.
(C) Nothing contained in this clause shall apply for use of health club, sports and similar facilities provided uniformly to all employees by the employer.
(vii) The value of benefit to the employee resulting from the use by the employee or any member of his household of any movable asset (other than assets already specified in this rule and other than laptops and computers) belonging to the employer or hired by him shall be determined at 10% per annum of the actual cost of such asset or the amount of rent or charge paid or payable by the employer, as the case may be, as reduced by the amount, if any, paid or recovered from the employee for such use.
(viii) The value of benefit to the employee arising from the transfer of any movable asset belonging to the employer directly or indirectly to the employee or any member of his household shall be determined to be the amount representing the actual cost of such assets to the employer as reduced by the cost of normal wear and tear calculated at the rate of 10% of such cost for each completed year during which such asset was put to use by the employer and as further reduced by the amount, if any, paid or recovered from the employee being the consideration for such transfer:
Provided that in the case of computers and electronic items, the normal wear and tear would be calculated at the rate of 50% and in the case of motor cars at the rate of 20% by the reducing balance method.
(ix) The value of any other benefit or amenity, service, right or privilege provided by the employer shall be determined on the basis of cost to the employer under an arms length transaction as reduced by the employees contribution, if any:
Provided that nothing contained in this clause shall apply to the expenses on telephones including a mobile phone actually incurred on behalf of the employee by the employer.
(8) (i) For the purposes of sub-clause (vi) of clause 2 of section 17, the fair market value of any specified security or sweat equity share, being an equity share in a company, on the date on which the option is exercised by the employee, shall be determined in accordance with the provisions of clause (ii) or clause (iii).
(ii) In a case where, on the date of the exercising of the option, the share in the company is listed on a recognized stock exchange, the fair market value shall be the average of the opening price and closing price of the share on that date on the said stock exchange:
Provided that where, on the date of exercising of the option, the share is listed on more than one recognized stock exchanges, the fair market value shall be the average of opening price and closing price of the share on the recognised stock exchange which records the highest volume of trading in the share:
Provided further that where, on the date of exercising of the option, there is no trading in the share on any recognized stock exchange, the fair market value shall be
(a) the closing price of the share on any recognised stock exchange on a date closest to the date of exercising of the option and immediately preceding such date; or
(b) the closing price of the share on a recognised stock exchange, which records the highest volume of trading in such share, if the closing price, as on the date closest to the date of exercising of the option and immediately preceding such date, is recorded on more than one recognized stock exchange.
(iii) In a case where, on the date of exercising of the option, the share in the company is not listed on a recognised stock exchange, the fair market value shall be such value of the share in the company as determined by a merchant banker on the specified date.
(iv) For the purpose of this sub-rule,
(a) closing price of a share on a recognised stock exchange on a date shall be the price of the last settlement on such date on such stock exchange:
Provided that where the stock exchange quotes both buy and sell prices, the closing price shall be the sell price of the last settlement.
(b) merchant banker means category I merchant banker registered with Security and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(c) opening price of a share on a recognised stock exchange on a date shall be the price of the first settlement on such date on such stock exchange:
Provided that where the stock exchange quotes both buy and sell prices, the opening price shall be the sell price of the first settlement.
(d) recognised stock exchange shall have the same meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(e) specified date means,
(i) the date of exercising of the option; or
(ii) any date earlier than the date of the exercising of the option, not being a date which is more than 180 days earlier than the date of the exercising.
(9) For the purposes of sub-clause (vi) of clause 2 of section 17, the fair market value of any specified security, not being an equity share in a company, on the date on which the option is exercised by the employee, shall be such value as determined by a merchant banker on the specified date.
Explanation. - For the purposes of this sub-rule, merchant banker and specified date shall have the meanings assigned to them in sub-clause (b) and sub-clause (e) respectively of clause (iv) of sub-rule (8).
(10) This rule shall come into force with effect from the 1st day of April, 2009.
Explanation.- For the purposes of this rule-
(i) accommodation includes a house, flat, farm house or part thereof, or accommodation in a hotel, motel, service apartment, guest house, caravan, mobile home, ship or other floating structure;
(ii) entertainment includes hospitality of any kind and also, expenditure on business gifts other than free samples of the employers own product with the aim of advertising to the general public;
(iii) hotel includes licensed accommodation in the nature of motel, service apartment or guest house;
(iv) member of household shall include-
(a) spouse(s),
(b) children and their spouses,
(c) parents, and
(d) servants and dependants;
(v) remote area, for purposes of proviso to this sub-rule means an area that is located at least 40 kilometres away from a town having a population not exceeding 20,000 based on latest published all-India census;
(vi) salary includes the pay, allowances, bonus or commission payable monthly or otherwise or any monetary payment, by whatever name called from one or more employers, as the case may be, but does not include the following, namely:-
(a) dearness allowance or dearness pay unless it enters into the computation of superannuation or retirement benefits of the employee concerned;
(b) employers contribution to the provident fund account of the employee;
(c) allowances which are exempted from payment of tax;
(d) the value of perquisites specified in clause (2) of section 17 of the Income-tax Act;
(e) any payment or expenditure specifically excluded under proviso to sub-clause (iii) of clause (2) or proviso to clause (2) of section 17;
(f) lump-sum payments received at the time of termination of service or superannuation or voluntary retirement, like gratuity, severance pay, leave encashment, voluntary retrenchment benefits, commutation of pension and similar payments;
(vii) maximum outstanding monthly balance means the aggregate outstanding balance for each loan as on the last day of each month.]
____________________________
1. Substituted by The I.T (Twenty Second Amendment) Rules, 2001 w.e.f. 01.04.2001 Prior to substitution rule 3 read as under:
3.- Valuation of perquisites.
For the purpose of computing the income chargeable under the head "Salaries" the value of the perquisites (not provided for by way of monetary payment to the asscssee) mentioned below shall be determined in accordance with the following clauses, namely:--
(a) The value of rent-free residential accommodation shall be determined on the basis provided hereunder, namely :--
(1) where the accommodation is provided
(A) by Government to a person holding an office or post in connection with the affairs of the Union or of a State;
(B) by a body or undertaking under the control of Government to any officer of Government whose services have been lent to that body or undertaking (the accommodation itself having been allotted to it by Government), an amount equal to
(1) if the accommodation is unfurnished, the rent which has been or would have been determined as payable by such person or officer in accordance with the rules framed by Government for allotment of residences to its officers;
(2) if the accommodation is furnished, an amount calculated in accordance with sub-clause (i) (1) plus 10 per cent per annum, of the original cost of the furniture (including television sets, radio sets, refrigerators, other household appliances and air-conditioning plant or equipment) or if such furniture is hired from a third party, the actual hire charges payable therefor;
(ii) where the accommodation is provided
(A) by the Reserve Bank of India, to any person employed by it;
(B) by a corporation established by a Central, State or Provincial Act, or by a company in which all the shares arc held (whether singly or taken together) by the Government or the Reserve Bank of India or a corporation owned by that Bank, to any person employed by it;
(BB) by a company not being a company referred to in sub-clause (ii)(B) or sub-clause (ii)(D) in which all the shares are held by a corporation referred to in sub-clause (ii)(B) or by a company referred to in that sub-clause, to any person employed by it;
(C) by a body or undertaking including a society registered under the Societies Registration Act, 1860 (21 of 1860), financed wholly or mainly by the Government, to any person employed by it;
(D) by a company not being a company referred to in sub-clause (ii)(B) or sub-clause (ii)(BB) in which not less than 40 per cent of the shares are held (whether singly or taken together) by the Government or the Reserve Bank of India or a corporation owned by that Bank, to any officer of Government whose services have been lent to it or to any person employed by it after his retirement from the service of Government,
an amount equal to
(1) if the accommodation is unfurnished, 10 per cent of the salary due to such person or officer, as the case may be, inrespect of the period during which the said accommodation was occupied by him during the previous yean
Provided that where the assessee claims and the Assessing Officer is satisfied that the sum arrived at on the aforesaid basis exceeds the fair rental value of the accommodation, the value of the perquisite to the assessec shall be limited to such fair rental value;
(2) if the accommodation is furnished, an amount calculated in accordance with sub-clause (ii)(1) plus 10 per cent per annum, of the original cost of the furniture (including television sets, radio sets, refrigerators, other household appliances and air-conditioning plant or equipment) or if such furniture is hired from a third party, the actual hire charges payable therefor;
(iii) n any other case,--
(A) the value of rent-free residential accommodation which is not furnished shall ordinarily be a sum equal to 10 per cent of the salary due to the assesses in respect of the period during which the said accommodation was occupied by him during the previous year:
Provided that
(1) where the fair rental value of the accommodation is in excess of 20 per cent of the asscssee's salary, the value of the perquisite shall be taken to be 10 per cent of the salary increased by a sum equal to the amount by which the fair rental value exceeds 20 per cent of the salary; so, however, that the Assessing Officer may, having regard to the nature of the accommodation, determine the sum by which 10 per cent of the salary is to be increased, as a percentage (not exceeding 100 per cent) of the amount by which the fair rental value exceeds 20 per cent of the salary;
(2) where the assessee claims, and the Assessing Officer is satisfied that the sum arrived at on the basis provided above exceeds the fair rental value of the accommodation, the value of the perquisite to the assessee shall be limited to such fair rental value; (B) where the accommodation is furnished, the value of rent-free residential accommodation shall be the aggregate of the following sums, namely:--
(1) the fair rental value of the accommodation arrived at in accordance with the provisions of sub-clause (iii)(A) as if the accommodation were not furnished; and
(2) the fair rent for the furniture (including television sets, radio sets, refrigerators, other household appliances and air-conditioning plant or equipment) calculated at 10 per cent per annum of the original cost of such furniture or if such furniture is hired from a third party, the actual hire charges payable therefor.
Explanation 1: "Salary" includes the pay, allowances, bonus or commission payable monthly or otherwise, but does not include the following, namely :--
(i) dearness allowance or dearness pay unless it enters into the computation of superannuation or retirement benefits of the assessee concerned;
(ii) employer's contributions to the provident fund account of the assessee; (iii) allowances which are exempted from payment of tax;
(iv) any allowance in the nature of an entertainment allowance, to the extent such allowance is deductible under clause of section 16.
Explanation 2 : For the purposes of sub-clause (iii), the fair rental value of accommodation which is not furnished shall be the rent which a similar accommodation would realise in the same locality or the municipal valuation in respect of the accommodation, whichever is higher.
(b) The value of residential accommodation provided at a confessional rent shall be determined as the sum by which the value computed in accordance with clause (a), as if the accommodation were provided free of rent, exceeds the rent actually payable by the assessee for the period of his occupation during the relevant previous year.
[(ba) The benefit to the assessee resulting from the provision by the employer of free services of a sweeper, a gardener or a watchman shall be valued at Rs. 120 per month per person.]
(c) (i) The value of a motor-car provided by the employer for use by the assessee exclusively for his private or personal purposes shall be determined as the sum actually expended by the employer on the maintenance and running of the motorcar during the relevant previous year (including remuneration, if any, paid by the employer to the chauffeur) and, where the motor-car is owned by the employer, as the aggregate of such sum and the amount representing the normal wear and tear of the motor-car;
(ii) the value of a motor-ear provided by the employer for use by the assessee partly in the performance of his duties and partly for his private or personal purposes shall be determined to be a sum equal to that part of the amount actually expended by the employer on the maintenance and running of the motor-ear during the relevant previous year (including remuneration, if any, paid by the employer to the chauffeur) which can reasonably be attributed to the user of the motor-car by the assessee for his private or personal purposes or, where the motor-car is owned by the employer, the aggregate of such sum and of a sum equal to that part of the amount representing the normal wear and tear of the motor-car which can reasonably be attributed to the user of the motor-car by the assessee for his private or personal purposes; so, however, that where a determination on the basis mentioned above presents difficulty, the value of the perquisite may be determined on the basis provided in the Table below :
TABLE
Value of perquisite per calendar month
1 2 3
Where the h.p. rating of the car does not exceed 16 or the cubic capacity of the engine does not exceed 1.88 liters Where the h.p. rating of the car exceeds 16 or the cubic capacity of the engine exceeds 1.88 liters
1.Where the motor-car is owned or hired by the employer and all the expenses on maintenance and running are met or reimbursed to the assessee by the employer
2. Where the motor-car is owned or hired by the employer butthe expenses on maintenance and running for the assessees private or personal purpose are met by the assessees private or personal purposes are met by the assesee
Rs.
[600]
[200]
Rs.
[800]
[300]
Provided that where a chauffeur is also provided to run the motor-car, the value of the perquisite as calculated in accordance with this Table shall be increased by a sum of Rs. [300] per month;
(iii) where one or more motor-cars are owned or hired by the employer of theassessec and the assessce is allowed the use of such motor-car or all or any of such motor-cars (otherwise than wholly and exclusively in the performance of his duties), an amount calculated in accordance with the Table under sub-clause (ii) and the proviso thereto as if the asscssee had been provided one motor-car for use partly in the performance of his duties and partly for his private or personal purposes:
Provided that where two or more motor-cars are allowed to be so used and the h.p.rating of any one of such motor-cars exceeds 16 or the cubic capacity of the engine of any one of such motor-cars exceeds 1.88 litres, the assessce shall be deemed to have been provided by the employer with one motor-car of h.p. rating exceeding 16:
Provided further that where two or more motor-cars are allowed to be so used and a chauffeur is also provided to run any such motor-car, the value of the perquisite as so calculated shall be increased by a sum of Rs. [300] per month;
(iv) where the assessce owns a motor-car but (he actual running or maintenance charges (including remuneration of the chauffeur, if any) are met, or reimbursed to him, by the employer, the value of the perquisite to the assessee shall be determined as the sum actually expended by the employer which, in the opinion of the Assessing Officer, can reasonably be attributed to the user of the car by the assessee otherwise than wholly and exclusively in the performance of his duties; (v) the value of a motor-car or motor-cars provided for the use of, or allowed to be used by, the assessee (otherwise than wholly and exclusively in the performance of his duties) at a concessional rate shall be determined as the sum by which the value computed in accordance with the foregoing provisions of this clause exceeds the amount actually payable by the assessee for the use of such motor-car or motorcars for the period of use during the relevant previous year;
(vi) the value of the free use by the assessee of any other type of conveyance provided by the employer shall be determined as so much of the sum actually expended by the employer on the maintenance and running of the conveyance during the relevant previous year, and where the conveyance is owned by the employer, as so much of the aggregate of sueh sum and the amount representing the normal wear and tear of the conveyance, as, in the opinion of the Assessing Officer, can reasonably be attributed to the user by the assessee, otherwise than wholly and exclusively in the performance of his duties;
(d) the value of the benefit to the assessee resulting from the supply of gas, electric energy or water for his household consumption free of any charge shall be determined as the sum equal to the amount paid on that account by the employer to the agency supplying the gas, electric energy or water, but--
(i) where such supply is made from resources owned by the employer without purchasing them from any other outside agency, the value therefor shall be taken as nil, and
(ii) where the Asscssing Officer is satisfied that the gas, electric energy or water supply to any assessee are consumed also for the purposes of his official duties, the Assessing Officer shall determine the value of the benefit to the assessee to be equal to the amount paid on that account by the employer to the agency supplying the gas, electric energy or water or 6 1/4 per cent of the salary of the assessee, whichever is lower;
(e) the value of the benefit to the assessee resulting from the provision of free education facilities for any member of his household shall be determined as the sum equal to the amount of the expenditure incurred by the employer in that behalf, but where the educational institution itself is maintained and run by the employer for the benefit of all his employees as a group, the value of the perquisite to the assessee shall be determined with reference to the reasonable cost of such education in a similar institution in or near the locality;
(f) the value of any benefit or amenity resulting from the provision by any undertaking engaged in the carriage of passengers or goods to any employee of the undertaking or to members of his family or his dependent relatives, of journey free of cost or at concessional fares, in any conveyance owned by the undertaking for the purpose of transport of passengers or goods shall be taken as nil;
(g) the value of any benefit or amenity not included in the preceding clauses of this rule shall be determined on such basis and in such amount as the Assessing Officer considers fair and reasonable.
2 Inserted by the I.T (Second Amendment) Rules, 2002 w.r.e.f. 01.04.2001.
3 Substituted by IT (17th Amdt.) Rules, 2002. w.e.f. 01.08.2002. Prior to substitution clause (B) read as under:
(B) Where the employer or the employee claims that the motor-car is used wholly and exclusively in the performance of official duty or that the actual expenses on the running and maintenance of the motor-car owned by the employee for official purposes is more than the amounts deductible in items 2(ii) or 3(ii) of the above Table, he may claim a higher amount attributable to such official use and the value of perquisite in such a case shall be the actual amount of charges met or reimbursed by the employer as reduced by such higher amount attributable to official use of the vehicle provided that the following conditions are fulfilled:-
i) the employer has maintained complete details of journey undertaken for official purpose which may include date of journey, destination, mileage, and the amount of expenditure incurred thereon;
ii) the employee gives a certificate that the expenditure was incurred wholly and exclusively for the performance of his official duty;
iii) the supervising authority of the employee, wherever applicable, gives a certificate to the effect that the expenditure was incurred wholly and exclusively for the performance of official duties
4 Substituted by IT (17th Amdt.) Rules, 2002. w.e.f. 01.08.2002. Prior to substitution clause (v) read as under:
(v) The amount of expenses including membership fees and annual fees incurred by the employee or any member of his household, which is charged to a credit card (including any add-on-card), provided by the employer or otherwise, paid for or reimbursed by the employer shall be taken to be the value of perquisite chargeable to tax. However, there shall be no value of such benefit where the expenses are incurred wholly and exclusively for official purposes and the following conditions are fulfilled:-
(a) complete details in respect of such expenditure is maintained by the employer which may, inter-alia, include the date of expenditure and the nature of expenditure;
(b) it is certified by the employee that such expenditure was incurred wholly and exclusively for the performance of official duty;
(c) the supervising authority of the employee gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties.
(d) where an employee incurs expenditure on entertainment and claims the same to have been incurred wholly and exclusively, in the performance of his duties, details of such entertainment expenses, inter-alia, include the nature and purpose of entertainment and persons entertained.
The amount so determined shall be reduced by the amount, if any paid or recovered from the employee for such benefit or amenity.
5 Substituted by IT (17th Amdt.) Rules, 2002. w.e.f. 01.08.2002. Prior to substitution clause (B) read as under:
(B) Nothing contained in this sub-rule shall apply if such expenditure is incurred wholly and exclusively for business purposes and the following conditions are fulfilled-
(a) complete details in respect of such expenditure is maintained by the employer which may, inter-alia, include the date of expenditure, the nature of expenditure and its business expediency;
(b) it is certified by the employee that such expenditure was incurred wholly and exclusively for the performance of official duty;
(c) the supervising authority of the employee gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties;
(d) where an employee incurs expenditure on entertainment and claims the same to have been incurred wholly and exclusively for the performance of his duties, details of such entertainment expenses, inter-alia, include the nature and purpose of entertainment, persons entertained and business expediency for such entertainment.
6 Inserted by IT (19th Amdt) Rules, 2002 w.r.e.f 01.04.2001
7 The words or the Railways omitted by IT (19th Amdt) Rules, 2002 w.r.e.f 01.04.2001
8 Substituted for "the Railways" by IT (2nd Amdt.) Rules, 2003 w.r.e.f 01.04.2002.
9 Substituted by Income-tax (First Amendment) Rules, 2004 w.e.f. 01.04.2004. Prior to substitution it read as under:
"concessional loan made available to the employee or any member of his household during the relevant previous year by the employer or any person on his behalf shall be determined as the sum equal to the simple interest computed at the rate of 10% per annum in respect of loans for house and conveyance and at the rate of 13% per annum for other loans"
10. Substituted by Income-tax (13th Amendment) Rules, 2004 w.e.f. 03.11.2004. Prior to substitution it read as under:
"Provided that nothing contained in this sub-rule would be applicable to any accommodation located in a 'remote area' provided to an employee working at a mining site or an onshore oil exploration site, or a project execution site or an accommodation provided in an offshore site of similar nature:"
11. Substituted by Income-tax (13th Amendment) Rules, 2004 w.e.f. 03.11.2004 for the words "value of free meals".
12. Substituted by Income-tax (13th Amendment) Rules, 2004 w.e.f. 03.11.2004. Prior to substitution it read as under:
"Provided that nothing contained in this sub-rule shall apply to free meals provided by the employer during office hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints if the value thereof in either case is upto Rs.50/- per meal or to tea or snacks provided during office hours or to free meals during working hours provided in a remote area or an offshore installation."
13 Substituted by Income-tax (seventh Amendment) Rules, 2005 w.e.f. 01.04.2005. Prior to substitution it read as under:
SI. No Circumstances Where the accommodation is unfurnished Where the accommodation is furnished
(1) (2) (3) (4)
(1) Where the accommodation is provided by Union or State Government to their employees either holding office or post in connection with the affairs of Union or State or serving with any body or undertaking under the control of such Government on deputation License fee determined by Union or State Government in respect of accommodation in accordance with the rules framed by that government as reduced by the rent actually paid by the employee. The value of perquisite as determined under col. (3) and increased by 10% of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air conditioning plant or equipment) or if such furniture is hired from a third party, the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year.
(2) Where the accommodation is provided by any other employer and
(a)Where the accommodation is owned by the employer or
(b) Where the accommodation is taken on lease or rent by the employer.
i)10% of salary in cities having population exceeding 4 lacs as per 1991 census;
ii) 7.5% of salary in other cities, in respect of the period during which the said accommodation was occupied by the employee during the previous year as reduced by the rent, if any, actually paid by the employee
Actual amount of lease rental paid or payable by the employer or 10% of salary whichever is lower as reduced by the rent, if any, actually paid by the employee. The value of perquisite as determined under col. (3) and increased by 10% of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous years.
(3) Where the accommodation is provided by the employer specified in Sl. No. (1) or (2) above in a hotel (except where the employee is provided such accommodation for a period not exceeding in aggregate 15 days on his transfer from once place to another)
Not applicable 24% of salary paid or payable for the previous year or the actual charges paid or payable to such hotel, which is lower, for the period which such accommodation is provided as reduced by the rent, if any, actually paid or payable by the employee.
14. Substituted by Income-tax (seventh Amendment) Rules, 2005 w.e.f. 01.04.2005. Prior to substitution it read as under:
"(2) (A) The value of perquisite provided by way of use of motor car shall be determined on the basis provided in the Table-II below:
(1) 2[In granting approval to any hospital other than a hospital for Indian system of medicine and homoeopathic treatment for the purposes of sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause (2) of section 17], the Chief Commissioner shall satisfy himself that the hospital is registered with the local authority and fulfils the following requirements, namely :--
(i) The building used for the hospital complies with the municipal bye-laws in force.
(ii) The rooms are well ventilated, lighted and are kept in clean and hygienicconditions.
(iii) At least ten iron spring beds are provided for patients. (iv) At least one properly equipped operation theatre is provided, with minimum floor space of 180 square feet and with a separate sterilization room.
(iv) At least one labour room is provided, with minimum floor space of 180 square feet, in case the hospital provides medical service for maternity cases.
(v) Aseptic conditions are maintained in the operation theatre and the labour room.
(vi) A duty room is provided for the nursing staff on duty.
(vii) Adequate space for storage of medicines, food articles, equipments, etc., is provided.
(viii) The water used in the hospital or nursing home is fit for drinking.
(ix) Adequate arrangements are made for isolating septic and infectious patients.
(x) The hospital is provided with and maintains :--
(a) high pressure sterilizer and instrument sterilizer;
(b) oxygen cylinders and necessary attachments for giving oxygen;
(c) adequate surgical equipments, instruments and apparatus including intravenous apparatus;
(d) a pathological laboratory for testing of blood, urine and stool;
(e) electro-cardiogram monitoring system;
(f) stand-by generator for use in case of power failure.
(xi) There is at least one qualified doctor available on duty round the clock for every twenty beds or fraction thereof.
(xiii)) In hospitals providing intensive care unit facilities, there are at least two qualified doctors available on duty round the clock exclusively for such intensive care unit.
(xiv) One nurse is on duty round the clock for every five beds or a fraction thereof.
(xv)) In hospitals providing intensive care unit facilities, there are at least four nurses provided exclusively for every four beds or fraction thereof for such intensive care unit.
(xvi) The hospital maintains record of health of every patient containing information about the patient's name, address, occupation, sex, age, dale of admission, date of discharge, diagnosis of disease and treatment undertaken.
3[(1A) In granting approval to any hospital for Indian system of medicine and homoeopathic treatment for the purposes of sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause 2 of section 17, the Chief Commissioner shall satisfy himself that the hospital fulfils the conditions specified vide Office Memorandum dated the 6th June, 2002, by the Department of Indian Systems of Medicine and Homoeopathy, Ministry of Health and Family Welfare for approval of private hospitals for Indian system of medicine and homoeopathic treatment to Central Government Health Scheme beneficiaries and Central Government employees.]
(2) 4[For the purpose of sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause (2) of section 17], the prescribed diseases or ailments shall be the following, namely :--
(a) cancer;
(b) tuberculosis;
(c) acquired immunity deficiency syndrome;
(d) disease or ailment of the heart, blood, lymph glands, bone marrow, respiratory system, central nervous system, urinary system, liver, gall bladder, digestive system, endocrine glandsor the skin, requiring surgical operation;
(e) ailment or disease of the eye, ear, nose or throat, requiring surgical operation;
(f) fracture in any part of the skeletal system or dislocation of vertebrae requiring surgical operation or orthopaedic treatment;
(g) gynaecological or obstetric ailment or disease requiring surgical operation, caesarean operation or laperoscopic intervention;
(h) ailment or disease of the organs mentioned at (d) , requiring medical treatment in a hospital for at least three continuous days;
(i) gynaecological or obstetric ailment or disease requiring medical treatment in a hospital for at least three continuous days;
(j) burn injuries requiring medical treatment in a hospital for at least three continuous days;
(k) mental disorder - neurotic or psychotic - requiring medical treatment in a hospital for at least three continuous days;
(l) drug addiction requiring medical treatment in a hospital for at least seven continuous days;
(m) anaphylectic shocks including insulin shocks, drug reactions and other allergic manifestations requiring medical treatment in a hospital for at least three continuous days.
Explanation : For the purpose of this rule,--
(a) "qualified doctor" means a person who holds a degree recognised by the Medical Council of India and is registered by the Medical Council of any State;
(b) "nurse" means a person who holds a certificate of a recognised Nursing Council and is registered under any law for the registration of nurses;
(c)) "surgical operation" includes treatment by modern methodology such as angioplasty, dialysis, lithotropsy, laser or eryo-surgery.]
________________________________
1. Inserted by the IT (Nineteenth Amdt.) Rules, 1992, w.e.f. 7-10-1992.
2. Substituted by the IT (19th Amendment) Rules, 2004 for the following :-
In granting approval to any hospital for the purposes of sub-clause (b) of clause (ii) of the proviso to clause (2) of section 17
3. Inserted by the IT (19th Amendment) Rules, 2004.
4. Substituted by the IT (19th Amendment) Rules, 2004 for the following :-
For the purpose of sub-clause (b) of clause (ii) of the proviso to clause (2) of section 17
For the purposes of the Explanation below sub-section (1) of section 23, the amount of rent which the owner cannot realise shall be equal to the amount of rent payable but not paid by a tenant of the assessee and so proved to be lost and irrecoverable where,-
a) the tenancy is bona fide;
b) the defaulting tenant has vacated, or steps have been taken to compel him to vacate the property;
c) the defaulting tenant is not in occupation of any other property of the assessee;
d) the assessee has taken all reasonable steps to institute legal proceedings for the recovery of the unpaid rent or satisfies the Assessing Officer that legal proceedings would be useless."
_____________________________
1. Substituted by I.T. (Eighth Amdt.) Rules 200, w.e.f. 2-07-2001. Prior to its Substitution Rule 4 read as under
4.- Unrealised rent .Under clause (x) of sub-section (1) of section 24, deduction shall be allowed of such part of income in respect of which tax is payable under the head "Income from house property" as is equal to the amount of rent payable but not paid by a tenant of the assessec and so proved to be lost and irrecoverable where--
(a) the tenancy is bona fide;
(b) the defaulting tenant has vacated, or steps have been taken to compel him to vacate the property;
(c) the defaulting tenant is not in occupation of any other properly of the assessee;
(d) the assessee has taken all reasonable steps to institute legal proceedings for the recovery of the unpaid rent or satisfies the Assessing Officer that legal proceedings would be useless; and
(e) the annual value of the properly to which the unpaid rent relates has been included in the assessed income of the previous year during which that rent was due and tax has been duly paid on such assessed income :
Provided that the deduction to be allowed on this account shall not exceed the income under the head "Income from house property" included in the total income as computed without making any deduction under this rule.
(1) Subject to the provisions of sub-rule (2), the allowance under clause (ii) of subsection (I) of section 32 in respect of depreciation of any block of assets shall be calculated at the percentages specified in the second column of the Table in Appendix I to these rules on the written down value of such block of assets as are used for the purposes of the business or profession of the assessee at any time during the previous year.
1[(1A) The allowance under clause (i) of sub-section (1) of section 32 of the Act in respect of depreciation of assets acquired on or after 1st day of April, 1997 shall be calculated at the percentage specified in the second column of the Table in Appendix IA of these rules on the actual cost thereof to the assessee as are used for the purposes of the business of the assessee at any time during the previous year :
Provided that the aggregate depreciation allowed in respect of any asset for different assessment years shall not exceed the actual cost of the said asset :
Provided further that the undertaking specified in clause (i) of sub-section (1) of section 32 of the Act may, instead of the depreciation specified in Appendix IA, at its option, be allowed depreciation under sub-rule (1) read with Appendix I, if such option is exercised before the due date for furnishing the return of income under sub-section (f) of section 139 of the Act,
(a) for the assessment year 1998-99, in the case of an underlaking which began to generate power prior to 1st day of April, 1997; and
(b) for the assessment year relevant to the previous year in which it begins to generate power, in case of any other undertaking :
Provided also that any such option once exercised shall be final and shall apply to all the subsequent assessment years.]
(2) Where any new-machinery or plant is installed during the previous year relevant to the assessment year commencing on or after the 1st day of April, 1988, for the purposes of business of manufacture or production of any article or thing and such article or thing--
(a) is manufactured or produced by using any technology (including anyprocess) or other know-how developed in,or
(b) is an article or thing invented in a laboratory owned or financed by the Government or a laboratory owned by a public sector company or a University or an institution recognised in this behalf by the Secretary, Department of Scientific and Industrial Research, Government of India, such piant or machinery shall be treated as a part of block of assets qualifying for depreciation at the rate of 2[40] per cent of written down value, if the following conditions are fulfilled, namely :--
(i) the right to use such technology (including any process) or other know-how or to manufacture or produce such article or thing has been acquired from the owner of such laboratory or any person deriving title from such owner ;
(ii) the return furnished by the asscssee for his income, or the income of any other person in respect of which he is assessable, for any previous year in whieh the said machinery or plant is acquired, shall be accompanied by a certificate from the Secretary, Department of Scientific and Industrial Research, Government of India, to the effect that such article or thing is manufactured or produced by using such technology (including any process) or other know-how developed in such laboratory or is an article or thing invented in such laboratory ; and
(iii) the machinery or plant is not used for the purpose of business of manufacture or production of any article or thing specified in the list in the Eleventh Schedule to the Act.
Explanation : For the purposes of this sub-rule,--
(a) "laboratory financed by the Government" means a laboratory owned by any body including a society registered under the Societies Registration Act, 1860 (21 of 1860)], and financed wholly or mainly by the Government ;
(b) "public sector company" means any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) ; and
(c) "University" means a University established or incorporated by or under a Central, State or Provincial Act and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be a University for the purposes of that Act.
_______________________________
1. Inserted by the IT (Twelfth Amdt.) Rules, 1997, w.r.e.f. 2-4-1997.
2. Substituted for 50 by the IT (Tenth Amdt.) Rules, 1991, w.e.f. 1-4-1992.
1[5A. -Form of report by an accountant for claiming deduction under section 32(1)(iia)
The report from an accountant which is required to be furnished by the assessee under the third proviso to clause (iia) of sub-section (1) of section 32 shall be in Form No. 3AA.]
1. Inserted by IT (Fourteenth Amdt.) Rules, 2002 w.e.f 1.04.2003
For the purposes of sub-section (2B) of section 32A, the "prescribed authority" shall be the Secretary, Department of Scientific and Industrial Research, Government of India.
___________________________
1 Rule 5A renumbered as Rule 5AA by IT (Fourteenth Amendment.) Rules, 2002 w.e.f. 01.04.2003.
The report of audit of the accounts of an assessec, which is required to be furnished under sub-section (5) of section 32AB shall be in 1[Form No. 3AAA].
________________________
1. Substituted for Form No. 3AA by IT (Fourteenth Amdt.) Rules w.e.f. 1.04.2003.
The report of audit of the accounts of an assesses, which is required to be furnished under sub-section (2) of section 33AB. shall be in Form No. 3AC.]
_______________________________
1. Inserted by the IT (Second Amendment) Rules, 1992, w.e.f. 14-1-1992.
The report of audit of the accounts of an assesses, which is required to be furnished under sub-section (2) of section 33ABA, shall be in Form No. 3AD.]
________________________
1. Inserted by the IT (Twenty-fourth Amdt.) Rules, 1999, w.e.f. 30-6-1999.
The deduction to be allowed by way of development rebate in respect of any ship or machinery or plant referred to in sub-section (1A) of section 33 shall be a sum equivalent to--
(a) in the case of any such ship--
(i) where the ship is acquired by the assessee at any time before the expiry of seven years from the date she was built, thirty per cent of the actual cost of the ship to the assessee ; and
(ii) in any other case, twenty per cent of the actual cost of the ship to the assessee;
(b) in the case of any such machinery or plant installed after the 31st day of March, 1964--
(i) where it is installed before the 1st day of April, 1966, for the purposes of business of mining coal, twenty per cent of the actual cost of the machinery or plant to the assessee ; and
(ii) in any other case, ten per cent of the actual cost of the machinery or plant to the assessee.
Explanation : In this rule, "actual cost" shall have the meaning assigned to it in clause (1) of section 43.]
(1) An application for approval,
(i) under clause (ii) 5[or clause (iii)] of sub-section (1) of section 35 by a 4[***] research association in duplicate in Form No. 3CF-I;
(ii) under clause (ii) or clause (iii) of sub-section (1) of section 35 by a university, college or other institution in duplicate in Form No. 3CF-II shall be made, at any time during the financial year immediately preceding the assessment year from which the approval is sought, to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the applicant.
(2) Annexure to the application in Form No. 3CF-I shall be filled out if the association claims exemption under clause (21) of section 10 of the Income-tax Act.
(3) The applicant shall send a copy of the application in Form No. 3CF-I or, as the case may be, Form No. 3CF-II to Member (IT), Central Board of Direct Taxes accompanied by the acknowledgement receipt as evidence of having furnished the application Form in duplicate in the office of the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case.
(4) The period of one year, as specified in the fourth proviso to sub-section (1) of section 35, before the expiry of which approval is to be granted or the application is to be rejected by the Central Government shall be reckoned from the end of the month in which the application Form from the applicant for approval is received in the office of Member (IT), Central Board of Direct Taxes.
(5) If any defect is noticed in the application in Form No. 3CF-I or Form No. 3CF-II or if any relevant document is not attached thereto, the Commissioner of Income-tax or, as the case may be, the Director of Income-tax shall serve a deficiency letter on the applicant, before the expiry of one month from the date of receipt of the application Form in his office.
(6) The applicant shall remove the deficiency within a period of fifteen days from the date of service of the deficiency letter or within such further period which, on an application made in this behalf may be extended, so however, that the total period for removal of deficiency does not exceed thirty days, and if the applicant fails to remove the deficiency within the period of thirty days so allowed, the Commissioner of Income-tax or, as the case may be, the Director of Income-tax shall send his recommendation for treating the application as invalid to the Member (IT), Central Board of Direct Taxes.
(7) The Central Government, if satisfied, may pass an order treating the application as invalid.
(8) If the application Form is complete in all respects, the Commissioner of Income-tax or, as the case may be, the Director of Income-tax, may make such inquiry as he may consider necessary regarding the genuineness of the activity of the association or university or college or other institution and send his recommendation to the Member (IT) for grant of approval or rejection of the application before the expiry of the period of three months to be reckoned from the end of the month in which the application Form was received in his office.
(9) The Central Government may before granting approval under clause (ii) or clause (iii) shall call for such documents or information from the applicant as it may consider necessary and may get any inquiry made for verification of the genuineness of the activity of the applicant.
(10) The Central Government may, under sub-section (1) of section 35, issue the notification to be published in the Official Gazette granting approval to the association or university or college or other institution or for reasons to be recorded in writing reject the application.
(11) The Central Government may withdraw the approval granted under clause (ii) or clause (iii) of sub-section (1) of section 35 if it is satisfied that the 4[***] research association or university or college or other institution has ceased its activities or its activities are not genuine or are not being carried out in accordance with all or any of the conditions under rule 5D or rule 5E.
(12) No order treating the application as invalid or rejecting the application or withdrawing the approval, shall be passed without giving a reasonable opportunity of being heard to the 4[***] research association or university or college or other institution.
(13) A copy of the order invalidating or rejecting the application or withdrawing the approval shall be communicated to the applicant, the Assessing Officer and the Commissioner of Income-tax or, as the case may be, the Director of Income-tax.
……………………………………….
1. Inserted by the Income-tax (Twelfth Amendment) Rules, 2006, dated 30.10.2006.
4. Omitted by the Income-Tax (Fourth Amendment) Rules, 2011 vide Circular No. 19/2011 dated 05.04.2011 for the following : - "scientific"
(1) The sole object of the applicant research association shall be to undertake scientific research or research in social science or statistical research as the case may be.]
(2) The applicant research association shall carry on the research activity by itself.
(3) The research association seeking approval under clause (ii) or clause (iii) of sub-section (1) of section 35 shall maintain books of account and get such books audited by an accountant as defined in the Explanation to sub-section (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (1) of section 139.
(4) The research association shall maintain a separate statement of donations received and amount applied for scientific research or research in social science or statistical research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to in sub-rule (3).
(5) The research association shall, by the due date of furnishing the return of income under sub-section (1) of section 139, furnish a statement to the Commissioner of Income-tax or Director of Income-tax containing
(i) a detailed note on the research work undertaken by it during the previous year;
(ii) a summary of research articles published in national or international journals during the year;
(iii) any patent or other similar rights applied for or registered during the year;
(iv) programme of research projects to be undertaken during the forthcoming year and the financial allocation for such programme.
(6) If the Commissioner of Income-tax or the Director of Income-tax is satisfied that the research association,
(a) is not maintaining books of account, or
(b) has failed to furnish its audit report, or
(c) has not furnished its statement of the sums received and the sums applied for scientific research or research in social science or statistical research or a statement referred to in sub-rule (5), or
(d) has ceased to carry on its research activities, or its activities are not genuine, or
(e) is not fulfilling the conditions subject to which approval was granted to it, he may after making appropriate enquiries furnish a report on the circumstances referred to in clauses (a) to (e) above to the Central Government within six months from the date of furnishing the return of income under sub-section (1) of section 139.]
.............................................
6. Substituted by the Income-Tax (Fourth Amendment) Rules, 2011 vide Circular No. 19/2011 dated 05.04.2011 for the following : -
"5D. Conditions subject to which approval is to be granted to a Scientific Research Association under clause (ii) of sub-section (1) of section 35.--
(1) The sole object of the applicant scientific research association shall be to undertake scientific research.
(2) The applicant scientific research association shall carry on the scientific research activity by itself.
(3) The scientific research association seeking approval under clause (ii) of sub-section (1) of section 35 shall maintain books of account and get such books audited by an accountant as defined in the Explanation to sub-section (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (1) of section 139.
(4) The scientific research association shall maintain a separate statement of donations received and amount applied for scientific research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to in sub-rule (3).
3[(4A) The scientific research association shall, by the due date of furnishing the return of income under sub-section (1) of section 139, furnish a statement to the Commissioner of Income-tax or Director of Income-tax containing-
(i) a detailed note on the research work undertaken by it during the previous year;
(ii) a summary of research articles published in national or international journals during the year;
(iii) any patent or other similar rights applied for or registered during the year;
(iv) programme of research projects to be undertaken during the forthcoming year and the financial allocation for such programme]
(5) If the Commissioner of Income-tax or the Director of Income-tax is satisfied that the scientific research association,
(a) is not maintaining books of account, or
(b) has failed to furnish its audit report, or
(c) has not furnished its statement of the sums received and the sums applied for scientific research 3[or a statement referred to in sub-rule (4A)], or
(d) has ceased to carry on its research activities, or its activities are not genuine, or
(e) is not fulfilling the conditions subject to which approval was granted to it
he may after making appropriate enquiries furnish a report on the circumstances referred to in clauses (a) to (e) above to the Central Government within six months from the date of furnishing the return of income under sub-section (1) of section 139.
(1) The sum paid to a university, college or other institution shall be used for scientific research and research in social science or statistical research.
(2) The applicant university, college or other institution shall carry out scientific research, research in social science or statistical research through its faculty members or its enrolled students.
(3) A university or college or other institution approved under clause (ii) or clause (iii) of sub-section (1) of section 35 shall maintain separate books of account in respect of the sums received by it for scientific research or, as the case may be, for research in social science or statistical research, reflect therein the amount used for carrying out research, get such books of account audited by an accountant, as defined in the Explanation to sub-section (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (1) of section 139.
(4) The university or college or other institution shall maintain a separate statement of donations received and the amount used for research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to in sub-rule (3).
3[(4A) The university, college or other institution shall, by the due date of furnishing the return of income under sub-section (1) of section 139, furnish a statement to the Commissioner of Income-tax or Director of Income-tax containing.-
(i) a detailed note on the research work undertaken by it during the previous year;
(ii) a summary of research articles published in national or international journals during the year;
(iii) any patent or other similar rights applied for or registered during the year;
(iv) programme of research projects to be undertaken during the forthcoming year and the financial allocation for such programme]
(5) If the Commissioner of Income-tax or the Director of Income-tax is satisfied that the university or college or other institution,-
(a) is not maintaining separate books of account for research activities, or
(b) has failed to furnish its audit report, or
(c) has not furnished its statement of the sums received and the sums used for research 3[or a statement referred to in sub-rule (4A)], or
(d) has ceased to carry on its research activities, or its activities are not genuine, or
(e) is not fulfilling the conditions subject to which approval was granted to it,
he may after making appropriate enquiries furnish a report on the circumstances referred to in clauses (a) to (e) above to the Central Government within six months from the date of furnishing the return of income under section 139(1).]
.................................................
3. Inserted by the Income-tax (2nd Amendment) Rules, 2009 vide Notification No. 02/2009 dated 05.01.2009, w.e.f 01.04.2008.
(1) For the purposes of clause (iia) of sub-section (1) of section 35, the prescribed authority shall be the Chief Commissioner of Income -tax having jurisdiction over the applicant.
(2) Guidelines, form and manner in respect of approval under clause (iia) of sub-section (1) of section 35 shall be as under:
(a) An application for approval under clause (iia) of sub-section (1) of section 35 by a company shall be made in duplicate in Form No. 3CF-III, to the Commissioner of Income -tax having jurisdiction over the applicant, at any time during the financial year immediately preceding the assessment year from which the approval is sought.
(b) The applicant shall send a copy of the application in Form No. 3CF-III to the prescribed authority, accompanied by the acknowledgement receipt as evidence of having furnished the application form in duplicate in the office of the Commissioner of Income -tax having jurisdiction over the case.
(c) Every notification under clause (iia) of sub-section (1) of section 35 shall be issued or an order rejecting the application shall be passed within a period of twelve months from the end of the month in which the application was received in the office of the Chief Commissioner of Income-tax.
(d) If any defect is noticed in the application in Form No. 3CF -III or if any relevant document is not attached thereto, the Commissioner of Income -tax shall serve a deficiency letter on the applicant before the expiry of one month from the date of receipt of the application form in his office.
(e) The applicant shall remove the deficiency within a period of fifteen days from the date of service of the deficiency letter or within such further period which, on an application made in this behalf may be extended, so however, that the total period for removal of deficiency does not exceed thirty days, and if the applicant fails to remove the deficiency within the period of thirty days so allowed, the Commissioner of Income -tax shall send his recommendation to the Chief Commissioner of Income- tax for treating the application as invalid.
(f) The Chief Commissioner of Income -tax may, after examining the recommendations referred to in clause (e), pass an order that the application is invalid.
(g) If the application form is complete in all respects, the Commissioner of Income -tax may, make such inquiry as he may consider necessary regarding the genuineness of the activity of the company and send his recommendation to the Chief Commissioner of Income -tax for grant of approval or rejection of the application before the expiry of the period of three months to be reckoned from the end of the month in which the application form was received in his office.
(h) The Chief Commissioner of Income -tax may, before granting approval under clause (iia) of sub-section (1) of section 35, call for such documents or information from the applicant as it considers necessary and may get any inquiry made for verification of the genuineness of the activity of the applicant.
(i) The Chief Commissioner of Income -tax may, under sub-section (1) of section 35, issue the notification to be published in the Official Gazette granting approval to the company or for reasons to be recorded in writing reject the application.
(j) The Chief Commissioner of Income -tax may withdraw the approval granted under clause ( iia ) of sub-section (1) of section 35 if he is satisfied that the company has ceased to carry on its activities or its activities are not genuine or are not being carried on in accordance with all or any of the conditions under this rule:
Provided that no order treating the application as invalid or rejecting the application or withdrawing the approval shall be passed without giving a reasonable opportunity of being heard to the company.
(k) A copy of the order invalidating or rejecting the application or withdrawing the approval shall be communicated to the applicant, the Assessing Officer and the Commissioner of Income -tax.
(3) Approval to a company under clause ( iia ) of sub-section (1) of section 35 shall be subject to the following conditions, namely:
(a) The sum paid to the company shall be used for scientific research;
(b) The applicant company shall carry on scientific research through its own employees using its own assets;
(c) A company approved under clause (iia ) of sub-section (1) of section 35 shall maintain separate books of account in respect of the sums received by it for scientific research, reflect therein the amount used for carrying on research, get such books of account audited by an accountant, and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income -tax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (1) of section 139.
Explanation .- For the purpose of this clause "accountant" shall have the same meaning as assigned to it in Explanation to sub-section (2) of section 288 of the Act.
(d) The company shall maintain a separate statement of donations received and the amount used for research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to in sub-rule (3).
(e) Subsequent to approval, the company shall, every year, by the due date of furnishing the return of income under sub-section (1) of section 139, furnish a statement to the Commissioner of income-tax containing the following information, namely:
(i) a detailed note on the research work undertaken by it during the previous year;
(ii) a summary of research articles published in national or international journals during the year;
(iii) any patents or other similar rights applied for or registered during the year;
(iv) programme of research projects to be undertaken during the forthcoming year and the financial allocation for such subjects.
(f) If the Commissioner of Income -tax is satisfied that the company,
(i) is not maintaining separate books of account for research activities, or
(ii) has failed to furnish its audit report, or
(iii) has not furnished its statement of the sums received and the sums used for research, or a statement referred to in sub-clause (e),or
(iv) has ceased to carry on its research activities, or its activities are not genuine, or
(v) is not fulfilling the conditions subject to which approval was granted to it, he may after making appropriate enquiries, furnish a report on the circumstances referred to in sub-clauses (i) to (v) to the jurisdictional Chief Commissioner o f Income tax within six months from the date of furnishing the return of income under sub-section (1) of section 139.]
............................................
2. Inserted by the Income -tax (Tenth Amendment) Rules, 2008 vide Notification No. 107/2008 dated 11.12.2008.
(1) For the purposes of [2[clause (i) of]sub-section (1) and sub-section (2A) of] section 35, the prescribed authority shall be the Director General (Income-tax Exemptions) in concurrence with the Secretary, Department of Scientific and Industrial Research, Government of India.
13[(1A) For the purposes of sub-section (2AA) of section 35, the prescribed authority shall be-
(a) in the case of a National Laboratory or a University or an Indian Institute of Technology the head of the National Laboratory or the University or the Indian Institute of Technology, as the case may be; and
(b) in the case of a specified person, the Principal Scientific Adviser to the Government of India.]
3[(1B) For the purposes of sub-section (2AB) of section 35, the prescribed authority shall be the Secretary, Department of Scientifc and Industrial Research.
17[***]
4[(3) The application for obtaining approval under sub-section (2AA) of section 35 shall he made by a sponsor in Form No.3CG.
Explanation : For the purposes of this rule "sponsor" means a person who makes an application in Form No. 3CG.]
5((4) The application required to be furnished by a company under sub-section (2AB) of section 35 shall be in Form No. 3CK.
6[(5) The head of the National Laboratory or the University or the Indian Institute of Technology 14[or the Principal Scientific Adviser to the Government of India] shall, if he is satisfied that it is feasible to cany out the scientific research programme then, subject to other conditions prescribed in this rule and section 35 (2AA) of the Act, pass an order in wnting in Form No. 3CH :
Provided that a reasonable opportunity of being heard shall be granted to the sponsor before rejecting an application :
Provided further that an order under this rule shall be passed within two months of the receipt of the application under sub-rule (1A) .
16[Provided also that the Principal Scientific Adviser to the Government of India may authorise an, officer who is not below the rank of a Deputy Secretary to issue such order, after the scientific research programme has been approved by him.]
7[(5A) The prescribed authority shall, if he is satisfied that the conditions provided in this rule and in sub-section (2AB) of section 35 of the Act arc fulfilled, pass an order in writing in form No. 3CM :
Provided that a reasonable opportunity of being heard shall be granted to the company before rejecting an application.] 8[***]
9[(6) The National Laboratory 15[University,Indian Institute of Technology or specified person] shall issue a receipt of payment for carrying out an approved programme of scientific research under sub-section (2AA) in Form No. 3CI.]
11[(7) Approval of a programme under sub-section (2AA) shall be subject to the following conditions:--
(a)) The programme should not relate purely to market research, sales promotion, quality control, testing, commercial production, style changes, routine data collection or activities of a like nature ;
(b)) The prescribed authority shall submit its report to the Director General (Income-tax Exemptions) in Form No. 3CJ within a period of three months from the date of granting approval to the programme ;
16[Provided that the officer authorised by the prescribed authority, being the Principal Scientific Adviser to the Government of India, under sub-rule (5) shall submit such report to the Director General (Income-tax Exemptions) ;]
(c) The sponsor and the National Laboratory, 15[University, Indian Institute of Technology or specified person], as the case may be, shall submit to the Director General (Income-tax Exemptions) a yearly statement showing progress of implementation of the approved programme and actuals of expenditure incurred thereon ;
(d)) The prescribed authority shall not extend the duration of the programme or approve any escalation in costs ;
(e) The National Laboratory, 15[University, Indian Institute of Technology or specified person], as the case may be, shall maintain a separate account for each approved programme; which shall be audited annually and a copy thereof shall be furnished to the Director General (Income-tax Exemptions) by 31st day of October of each succeeding year ;
(f)) Assets acquired by the prescribed authority for executing the approved programme shall not be disposed of without the approval of the Director General (Income-tax Exemptions) ;
(g) On completion of the approved programme, a completion certificate along with a copy of the report on the research activities carried out and salient features of the result obtained and its further application for commercial exploitation shall be jointly submitted by the sponsor and the National Laboratory15[University, Indian Institute of Technology or specified person ]to the Director General (Income-lax Exemptions) ;
(h) A copy of the audited statement of accounts for the approved programme shall be submitted by the Head of the National Laboratory, University or Indian Institute of Technology 14[or the Principal Scientific Adviser to the Government of India] to the Director General (Income-tax Exemptions) within six months of the completion of the programme.)
12[(7A) Approval of expenditure incurred on in-house research and development facility by a company under sub-section (2AB) of section 35 shall be subject to the following conditions, namely :--
(a)) The facility should not relate purely to market research, sales promotion, quality control, testing, commercial production, style changes, routine data collection or activities of a like nature;
(b)) The prescribed authority shall submit its report in relation to the approval of in-house Research and Development facility in Form No. 3CL to the Director General (Income-tax Exemptions) within sixty days of its granting approval;
(c)) The company shall maintain a separate account for each approved facility; which shall be audited annually and a copy thereof shall be furnished to the Secretary, Department of Scientifc and Industrial Research by 31st day of October of each succeeding year.
Explanation : For the puiposes of this sub-rule the expression "audited" means the audit of accounts by an accountant, as defined in the Explanation below sub-section (2) of section 288 of the Income-tax Act, 1961;
(d)) Assets acquired in respect of development of scientitic research and development facility shall not be disposed off without the approval of the Secretary, Department of Scientifc and Industrial Research.
_______________________________
2 Inserted by the IT (Twenty-second Amdt.) Rules, 1999, w.e.f. 25-6-1999.
3 Inserted by the IT (Fifth Amdt.) Rules, 1998, w.e.f. 1-4-1998.
4 Inserted by the IT (Sixteenth Amdt.) Rules, 1993, w.e.f. 15-9-1993.
5 Inserted by the IT (Fifth Amdt.) Rules, 1998, w.e.f. 1-4-1998. Earlier sub-rule (4) , as inserted by the IT (Sixteenth Amdt.) Rules, 1993, w.e.f. 15-9-1993, and later on omitted by the IT (Ninth Amdt.) Rules, 1996, w.e.f. 1-10-1996, read as under :
(4) The Secretary, Department of Scientific and Industrial Research shall, within eight weeks of the receipt of an application to the Director General (Income-tax Exemptions) .
6 Substituted by the IT (Ninth Amdt.) Rules, 1996, w.r.e.f. 1-10-1996. Prior to its substitution, sub-rule (5) , as inserted by the IT (Sixteenth Amendment) Rules, 1993, w.e.f. 15-9-1993, read as under :
(5) The Director General (Income-tax Exemptions) shall within four weeks of the receipt of the decision conveyed by the Secretary, Department of Scientific and Industrial Research, issue an order of programme in Form No. 3CH.
7. Inserted by the IT (Fifth Amdt.) Rules, 1998, w.e.f. 1-4-1998.
8. Second proviso omitted by the IT (Twenty-sixth Amdt.) Rules, 1999, w.e.f. 5-7-1999. Prior to its omission, second proviso, as inserted by the IT (Fifth Amdt.) Rules, 1998, w.e.f. 1-4-1998, read as under :
Provided further that an order under this rule shall be passed within two months of the receipt of application under sub-rule (4) .
9. Inserted by the IT (Sixteenth Amdt.) Rules, 1993, w.e.f. 15-9-1993.
11. Substituted by the IT (Ninth Amdt.) Rules, 1996, w.r.e.f. 1-10-1996. Prior to its substitution, sub-rule (7) was inserted by the IT (Sixteenth Amd.) Rules, 1993, w.e.f. 15-9-1993 and later amended by the IT (Eleventh Amdt.) Rules, w.e.f. 23-11-1994.
12. Inserted by the IT (Fifth Amdt.) Rules, 1998, w.e.f. 1-4-1998.
13. Substituted by the IT (Eighteenth Aamdt. ) Rules 2001 w.e.f. 08-08-2001. Prior to its substitution sub Rule 1A read as under :
(1A) For the purposes of sub-section (2AA) of section 35, the prescribed authority shall be the head of the National Laboratory or the University or the Indian Institute of Technology, as the case may be.
14 Inserted by the IT (Eighteenth Amdt.) Rules, 2001, w.e.f. 08-08-2001.
15 Substituted for University or Indian Institute of Technology by the IT (Eighteenth Amdt.) Rules 2001 w.e.f. 08-08-2001
16 Inserted by Income-tax (Twelfth Amendment) Rules, 2004.
17 Omitted by the Income-tax (Twelfth Amendment) Rules, 2006 dated 30.10.2006. Earlier the provision read as ---
"(2) The application required to be furnished by a scientific or industrial research organisation or institution under clause (ii) or (iii) of sub-section (1) of section 35 shall be in Form No. 3CF."
Omitted by the IT (Thirty-second Amdt) Rules, 1999, w.e.f. 19-11-1999.
For the purposes of sections 35CC and 35CCA,--
(i) the "prescribed authority" to approve the programme of rural development referred to in sub-section (1) of sections 35CC and in clause (a) of sub-section (1) of section 35CCA shall be the Committee consisting of the following, namely:--
(a) The Chief Commissioner or Commissioner of Income-tax who exercises jurisdiction over the State or, as the case may be, the Union territory in which the programme of rural development is to be carried out--Chairman ;
(b) An officer not below the rank of a Secretary to the Government of the Stale or, as the case may be, the Union territory in which the programme of rural development is to be carried out--Member;
(ii) the "prescribed authority" to approve an association or institution referred to in clause (a) or clause (b) of sub-section (1)of section 35CCA shall be the Committee consisting of the following, namely :--
(a) The Chief Commissioner or Commissioner of Income-tax, who exercises jurisdiction over the Stale or, as the case may be, the Union territory in which the principal office of the association or institution is situalcd--Chairman ;
(b) An officer not below the rank of a Secretary to the Government of the State or, as the case may be, the Union territory in which the principal office of the association or institution is situaled--Member :
Provided that where in a case whether falling under clause (i) or clause (ii) two or more Commissioners exercise jurisdiction over the State or, as the ease may be, the Union territory, the Board may, by notification in the Official Gazette, empower the Chief Commissioner or Commissioner] specified in this behalf to be the Chairman of the Committee.
Explanation : In this rule, "programme of rural development" shall have the meaning assigned to it in the Explanation to sub-section (1) of sections 35CC of the Income-tax Act.
For the purposes of section 35CCB, the "prescribed authority" shall be the Secretary, Department of Environment, Government of India.
The report of audit of the accounts of an assessee, other than a company or a co-operative society, which is required to be furnished under sub-section (4) of sections 35D or sub-section (6) of section 35E shall be in 1[Form No. 3AE]
________________________________
1. Substituted by Income-tax (11th Amendment) Rules, 2006 for the words " Form No. 3B"
For the purposes of clause (viia) of sub-section (1) of section 36, the aggregate average advances made by the rural branches of a scheduled bank shall be computed in the following manner, namely :--
(a) the amounts of advances made by each rural branch as outstanding at the end of the last day of each month comprised in the previous year shall be aggregated separately ;
(b) the sum so arrived at in the case of each such branch shall be divided by the number of months for which the outstanding advances have been taken into account for the purposes of clause (a) ;
(c) the aggregate of the sums so arrived at in respect of each of the rural branches shall be the aggregate average advances made by the rural branches of the scheduled bank.
Explanation : In this rule, "rural branch" and "scheduled bank" shall have the meanings assigned to them in the Explanation to clause (vita) of sub-section (1) of section 36.
The conditions to be fulfilled by a public facility to be eligible to be notified as an infrastructure facility in accordance with the provisions of clause (d) of the Explanation to clause (viii) of sub-section (1) of section 36 shall be the following, namely:
(a) it is owned by a company registered in India or by a consortium of such companies or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act;
(b) it has entered into an agreement with the Central Government or a State Government or a local authority or any other statutory body for (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining a new infrastructure facility similar in nature to an infrastructure facility referred to in the Explanation to clause (i) of sub-section (4) of section 80-IA;
(c) it has started or starts operating and maintaining such infrastructure facility on or after the 1st of April, 1995.]
__________________________
1. Inserted by Income-tax (Sixth Amendment) Rules, 2006 vide Notification no. SO1152(E) dated 20.07.2006.
The report of an accountant, which is required to be furnished under clause (xi) of sub-section (1) of section 36.shall be in Form No. 3BA.]
..........................................................
1. Inserted by the IT (Twentieth Amendment) Rules, 1999, w,e.f. 1-4-2000.
Cases and circumstances in which a payment or aggregate of payments exceeding twenty thousand rupees may be made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft. 6DD. No disallowance under sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business under sub-section (3A) of section 40A where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees in the case and circumstances specified hereunder, namely:-
(a) where the payment is made to-
(i) the Reserve Bank of India of any banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
(ii) the State Bank of India or any subsidiary bank as defined in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(iii) any co-operative bank of land mortgage bank;
(iv) any primary agricultural credit society or any primary credit society as defined under section 56 of the Banking Regulation Act, 1949 (10 of 1949);
(v) the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956);
(b) where the payment made to the Government and, under the rules framed by it, such payment is required to be made in legal tender;
(c) where the payment is made by
(i) any letter of credit arrangements through a batik,
(ii) a mail or telegraphic transfer through a bank;
(iii) a book adjustment from any account in a bank to any other account in that or any other bank;
(iv) a bill of exchange made payable only to a bank; (v) the use of electronic clearing system through a bank account;
(vi) a credit card;
(vii) a debit card.
Explanation -For the purposes of this clause and clause (g), the term "bank" means any bank, banking company or society referred to in sub-clauses (i) to (iv) of clause (a) and includes any bank [not being a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949)]. whether incorporated or not, which is established outside India;
(d) where the payment is made by way of adjustment against the amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee;
(e) where the payment is made for the purchase of
(i) agricultural or forest produce; or -
(ii) the produce of animal husbandry (including livestock, meat, hides and skins) or dairy or poultry farming; or
(iii) fish or fish products; or
(iv) the products of horticulture or apiculture, to the cultivator, grower or producer of such articles, produce or products;
(f) where the payment is made for the purchase of the products manufactured or processed without the aid of power in a cottage industry, to the producer of such products;
(g) where the payment is made in a village or town, which on the date of such payment is not served by any bank, to any person who ordinarily resides, or is carrying on any business, profession or vocation, in any such village or town;
(h) where arty payment is made to an employee of the assessee or the heir of any such employee, on or in connection with tire retirement, retrenchment, resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his their does not exceed fifty thousand rupees;
(i) where the payment is made by an assessee by way of salary to his employee after deducting the income -tax from salary in accordance with the provisions of section 192 of the Act, and when such employee
(ii) is temporarily posted for a continuo is period of fifteen days or more in a place other than his normal place of duty or on a ship and
(ii) does not maintain any account in any bank at such place or ship;
(j) where the payment was required to be made on a day on which, the banks were closed either on account of holiday or strike;
(k) where the payment is made by any person to his agent who is required to make payment in cash for goods or services on behalf of such person;
(l) where the payment is made by an authorised dealer or a money changer against purchase of foreign currency or travellers cheques in the normal course of his business.
Explanation - For the purposes of this clause, the expressions "authorised dealer" or "money changer" means a person authorised as an authorised dealer or a money changer to deal in foreign currency or foreign exchange under any law for the time being in force.]
______________________________
1 Substituted for "ten thousand" by the IT (Thirty-first Amdt.) Rules, 1999, w.e.f. 1-4-1997. Earlier "ten thousand" was substisuted for "two
thousand five hundred" by the IT (Fifth Amdt.) Rules, 1989, w.e.f. 18-5-1989.
2.Clauses (j), (k) and (l) inserted by the IT (Twenty-First Amdt.) Rules, 1995, w.e.f. 1-12-1995.
3. Inserted by the IT (Sixteenth Amdt.) Rules, 2000, w.e.f. 25-7-1995
4. Substituted by IT (13th Amendment) Rules, 2006 for the words an account payee cheque drawn on a bank or account payee bank draft
5. Substituted by The Income-tax (8th Amendment) Rules, 2007, dated 27.06.2007 w.e.f. the assessment year 2008-09 for the following:
"6DD.- Cases and circumstances In which payment in a sum exceeding twenty thousand rupees may be made otherwise than by 4[an account payee cheque drawn on a bank or account payee bank draft]
No disallowance under sub-section (3) of section 40A shall be made where any payment in a sum exceeding 1[twenty thousand] rupees is madeotherwise than by 4[an account payee cheque drawn on a bank or account payee bank draft] in the cases and circumstances specified hereunder, namely :--
(a) where the payment is made to--
(i) the Reserve Bank of India or any banking company as defined in clause (c) of section 5 ot the Banking Regulation Act, 1949 (10 of 1949);
(ii) the State Bank of India or any subsidiary bank as defined in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959(38 of 1959);
(iii) any co-operative bank or land mortgage bank ;
(iv) any primary agricultural credit society as defined in clause (cii) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934), or any primary credit society as defined in clause (civ) of that section ;
(v) the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956);
(vi) the Industrial Finance Corporation of India established under section 3 of the Industrial Finance Corporation Act, 1948 (15 of 1948);
(vii) the Industrial Credit and Investment Corporation of India Ltd.;
(viii) the Industrial Development Bank of India established under section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964);
(ix) the Unit Trust of India established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963);
(x) the Madras Industrial Investment Corporation Ltd., Madras;
(xi) the Andhra Pradesh Industrial Development Corporation Ltd., Hyderabad;
(xii) the Kerala State Industrial Development Corporation Ltd., Trivandrum;
(xiii) the State Industrial and Investment Corporation of Maharashtra Ltd., Bombay ;
(xiv) the Punjab State Industrial Development Corporation Ltd., Chandigarh;
(xv) the National Industrial Development Corporation Ltd., New Delhi;
(xvi) the Mysore State Industrial Investment and Development Corporation Ltd., Bangalore;
(xvii) the Haryana State Industrial Development Corporation Ltd., Chandigarh;
(xviii) any State Financial Corporation established under section 3 of the State Financial Corporations Act, 1951 (63 of 1951);
(a) where the payment is made to Government and, under the rules framed by it, such payment is required to be made in legal tender;
(b) where under any contract entered into by the asscssce before the 1st day of April, 1969, the payment is required to be made in legal tender ;
(c) where the payment is made by--(i) any letter of credit arrangements through a bank ; (ii) a mail or telegraphic transfer through a bank; (iii) a book adjustment from any account in a bank to any other account in that or any other bank; (iv) a bill of exchange made payable only to a bank.
Explanation : For the purposes of this clause and clause (h), the term "bank" means any bank, banking company or society referred to in sub-clauses (i) to (iv) of clause (a) and includes any bank [not being a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949)], whether incorporated or not, which is established outside India;
(d) where the payment is made by way of adjustment against the amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee ;
(e) where the payment is made for the purchase of--(i) agricultural or forest produce ; or (ii) the produce of animal husbandry (including hides and skins) or dairy or poultry farming ; or (in) fish or fish products ; or (iv) the products of horticulture or apiculture, to the cultivator, grower or producer of such articles, produce or products;
(f) where the payment is made for the purchase of the products manufactured or processed without the aid of power in a cottage industry, to the producer of such products;
(g) where the payment is made in a village or town, which on the date of such payment is not served by any bank, to any person who ordinarily resides, or is carrying on any business, profession or vocation, in any such village or town;
(h) where any payment by way of gratuity, retrenchment compensation or similar terminal benefit, is made to an employee of the assessee or the heirs of any such employee on or in connection with the retrenchment, resignation, discharge or death of such employee, if the income chargeable under the head "Salaries" of the employee in respect of the financial year in which such retirement, resignation, discharge or death took place or the immediately preceding financial year did not exceed Rs. 7,500;
2[(j) where the payment is made by an assessee by way of salary to his employee after deducting the income-tax from salary in accordance with the provisions of section 192 of the Act, and when such employee--
(A). is temporarily posted for a continuous period of fifteen days or more in a place other than his normal place of duty or on a ship; and
(B). does not maintain any account in any bank at such place or ship;
(k) where the payment was required to be made on aday on which the banks were closed either on account of holiday or strike;
(l) where the payment is made by any person to his agent who is required to make payment in cash for goods or services on behalf of such person;]
3[(m) where the payment is made by an authorised dealer or a money changer against purchase of foreign currency or travellers cheques in the normal course of his business.
Explanation : For the purpose of this clause, the expression "authorised dealer" or "money changer" means a person authorised as an authorised dealer or money changer to deal in foreign currency or foreign exchange under any law for the time being in force."
6.Substituted by the Income -tax (7th Amendment) Rules, 2008 vide Notification No. 97/2008 dated 10.10.2008 for the following :-
5[Cases and circumstances in which payment in a sum exceeding twenty thousand rupees may be made otherwise than by an account payee cheque drawn on a bank or account payee bank draft.6DD. No disallowance under clause (a) of sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under clause (b) of sub-section (3) of section 40A where any payment in a sum exceeding twenty thousand rupees is made otherwise than by an account payee cheque drawn on a bank or account payee bank draft in the cases and circumstances specified hereunder, namely:
(a) where the payment is made to
(i) the Reserve Bank of India or any banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
(ii) the State Bank of India or any subsidiary bank as defined in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);
(iii) any co-operative bank or land mortgage bank;
(iv) any primary agricultural credit society or any primary credit society as defined under section 56 of the Banking Regulation Act, 1949 (10 of 1949);
(v) the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956);
(b) where the payment is made to the Government and, under the rules framed by it, such payment is required to be made in legal tender;
(c) where the payment is made by
(i) any letter of credit arrangements through a bank;
(ii) a mail or telegraphic transfer through a bank;
(iii) a book adjustment from any account in a bank to any other account in that or any other bank;
(iv) a bill of exchange made payable only to a bank;
(v) the use of electronic clearing system through a bank account;
(vi) a credit card;
(vii) a debit card.
Explanation.- For the purposes of this clause and clause (g), the term "bank" means any bank, banking company or society referred to in sub-clauses (i) to (iv) of clause (a) and includes any bank [not being a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949)], whether incorporated or not, which is established outside India;
(d) where the payment is made by way of adjustment against the amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee;
(e) where the payment is made for the purchase of
(i) agricultural or forest produce; or
(ii) the produce of animal husbandry (including livestock, meat, hides and skins) or dairy or poultry farming; or
(iii) fish or fish products; or
(iv) the products of horticulture or apiculture,
to the cultivator, grower or producer of such articles, produce or products;
(f) where the payment is made for the purchase of the products manufactured or processed without the aid of power in a cottage industry, to the producer of such products;
(g) where the payment is made in a village or town, which on the date of such payment is not served by any bank, to any person who ordinarily resides, or is carrying on any business, profession or vocation, in any such village or town;
(h) where any payment is made to an employee of the assessee or the heir of any such employee, on or in connection with the retirement, retrenchment, resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his heir does not exceed fifty thousand rupees;
(i) where the payment is made by an assessee by way of salary to his employee after deducting the income-tax from salary in accordance with the provisions of section 192 of the Act, and when such employee -
(i) is temporarily posted for a continuous period of fifteen days or more in a place other than his normal place of duty or on a ship; and
(ii) does not maintain any account in any bank at such place or ship;
(j) where the payment was required to be made on a day on which the banks were closed either on account of holiday or strike;
(k) where the payment is made by any person to his agent who is required to make payment in cash for goods or services on behalf of such person;
(l) where the payment is made by an authorised dealer or a money changer against purchase of foreign currency or travellers cheques in the normal course of his business.
Explanation.- For the purposes of this clause, the expressions "authorised dealer" or "money changer" means a person authorised as an authorised dealer or a money changer to deal in foreign currency or foreign exchange under any law for the time being in force.]"
For the purposes of clause (d) of proviso to clause (5) of Section 43, a stock exchange shall fulfil the following conditions in respect of trading in derivatives, namely:--
(i) the stock exchange shall have the approval of the Securities and Exchange Board of India established under the Securities and Exchange Board of India Act, 1992 (15 of 1992) in respect of trading in derivatives and shall function in accordance with the guidelines or conditions laid down by the Securities and Exchange Board of India;
(ii) the stock exchange shall ensure that the particulars of the client (including unique client identity number and PAN) are duly recorded and stored in its databases;
(iii) the stock exchange shall maintain a complete audit trail of all transactions (in respect of cash and derivative market) for a period of seven years on its system;
2[(iv) the stock exchange shall ensure that transactions (in respect of cash and derivative market) once registered in the system are not erased:]
3[(v) the stock exchange shall ensure that the transactions (in respect of cash and derivative market) once registered in the system are modified only in cases of genuine error and maintain data regarding all transactions (in respect of cash and derivative market) registered in the system which have been modified and submit a monthly statement in Form No. 3BB to the Director General of Income-tax (Intelligence), New Delhi within fifteen days from the last day of each month to which such statement relates.]
______________________________
1. Inserted by Income-tax (20th Amendment) Rules, 2005 vide Notification No. 181/2005 dated 01.07.2005.
2. Substituted by the Income-tax (First Amendment) Rules, 2011 vide Notification No. 14/2011 dated 09.03.2011 w.e.f. 01.04.2011 for the following : -
"(iv) the stock exchange shall ensure that transactions once registered in the system cannot be erased or modified.]"
3. Inserted by the Income-tax (First Amendment) Rules, 2011 vide Notification No. 14/2011 dated 09.03.2011 w.e.f. 01.04.2011.
(1) An application for notification of a stock exchange as a recognised stock exchange for the purposes of clause (d) of proviso to clause (5) of Section 43 may be made to the Member(L), Central Board of Direct Taxes, North Block, New Delhi-110 001.
(2) The application referred to in sub-rule (1) shall be accompanied with the following documents, namely:--
(i) approval granted by Securities and Exchange Board of India for trading in derivatives;
(ii) up-to-date rules, bye-laws and trading regulations of the stock exchange;
(iii) confirmation regarding fulfilling the conditions referred to in clause (ii) to 2[clause (v)] of rule 6DDA; (iv) such other information as the stock exchange may like to place before the Central Government.
(3) The Central Government may call for such other information from the applicant as it deems necessary for taking a decision on the application.
(4) The Central Government, after examining the information furnished by the stock exchange under sub-rule (2) or sub-rule (3), shall notify the stock exchange as a recognised stock exchange for the purposes of clause (d) of proviso to clause (5) of Section 43 or issue an order rejecting the application before the expiry of four months from the end of the month in which the application is received.
(5) The notification referred to in sub-rule (4) shall be effective until the approval granted by the Securities and Exchange Board of India is withdrawn or expired, or the notification is rescinded by the Central Government.]
Back
____________________________
1. Inserted by Income-tax (20th Amendment) Rules, 2005 vide Notification No. 181/2005 dated 01.07.2005.
2. Substituted by the Income-tax (First Amendment) Rules, 2011 vide Notification No. 14/2011 dated 09.03.2011 for the following :- " clause (iv)"
In the computation of profits and gains of any business of insurance other than life insurance, the amount carried over to a reserve for unexpired risks including any amount carried over to any such additional reserve which is to be allowed as a deduction under clause (c) of rule 5 of the First Schedule, shall not exceed
2[(a) where the insurance business relates to fire insurance or engineering insurance and which provides insurance for terrorism risks, 100 per cent of the net premium income of such business of the previous year;
(aa) where the insurance business relates to fire insurance or miscellaneous insurance other than the insurance business covered under clause (a), 50 per cent of the net premium income of such business of the previous year;]
(b) where the insurance business relates to marine insurance, 100 per cent of the net premium income of such business of the previous year:
Provided that any amount out of the amount carried over to such reserve or additional reserve which is not allowed as a deduction under this rule in respect of any previous year shall not be included in the total income for the assessment year relevant to the immediately next succeeding previous year in the revenue account relating to which the amount aforesaid is credited.
1[Explanation.--For the purposes of this rule,--
(a) 'net premium income" means the amount of premium received as
reduced by the amount of reinsurance premium paid during the relevant previous year;
(b) "marine insurance" includes the Export Credit Insurance.]
__________________________________
1 Substituted for the following by the IT (First Amendment) Rule, 1997, w.r.e.f. 9-8-1962: Explanation.-For the purposes of this rule, net premium income means the amount of premiums received as reduced by the amount of reinsurance premiums paid during the relevant previous year.
2.Substituted by the Income-tax (Seventh Amendment) Rules, 2002, w.e.f. 01.04.2003. Prior to substitution clause (a) read as under :
(a) where the insurance business relates to fire insurance or miscellaneous insurance, 50 percent of the net premium income of such business of the previous year;
The provisions of section 43D shall apply in the case of every public financial institution, scheduled bank, State financial corporation and State industrial investment corporation where its income by way of interest pertains to the following categories of bad and doubtful debts, namely:--
(a) (i) Non-viable or sticky advances, i.e., where irregularities of the nature specified in sub-clause (ii) are noticed in the accounts of the borrowers for a period of six months and more and there are no minimum prospects of regularisation of accounts, or where the accounts or information in relation to such accounts reflect usual signs of sickness, such as,--
(1) apparent stagnation in the business as a result of the slow or negligible turnover;
(2) frequent requests for overdrawing or issue of cheques without ensuring availability of funds in the account;
(3) bills purchased or discounted remain overdue for 3 months and more or the recovery of such bills from the borrower poses difficulties;
(4) in the case of term-loans, instalments which are overdue for 6 months or more;
(5) unexplained delays by the borrower in submission of quarterly or half-yearly operating statements or stock statements or balance sheets and other information required by the bank;
(6) slow movement or stagnation of stocks observed during inspections;
(7) low or negligible level of activity observed during inspections or suspension or closure of the business;
(8) persistent delay in compliance with vital requirements like execution of documents, producing additional security when required or non-compliance with such requirements;
(9) diversion of funds to sister units or acquiring capital assets not relevant to the business or large personal withdrawals by the borrowers;
(10) intentional non-adherence to project schedules leading to substantial cost escalations and requirement of additional term-finance; .
(11) the pressure on the liquidity leading to non-payment of wages to workers or statutory dues or rents of office and factory premises;
(12) the current liabilities exceeding current assets;
(13) any grave irregularities observed by the auditors of the borrowers which remain to be rectified;
(14) basic weakness revealed by the financial statements of the unit, for example, continued cash loss beyond one year.
(ii) The irregularities referred to in sub-clause (i) in the accounts of the borrowers are,--
(1) where the accounts are overdrawn beyond the drawing power or the sanctioned limit, for a temporary period;
(2) instalments in respect of term-loans are overdue for less than 6 months or import bills under letters of credit or instalments under deferred payment carried are overdue for less than 3 months;
(3) bills not exceeding 10% to 15% of the total outstandings in the bills purchased or discounted account of the borrower are overdue for payment for a period of less than 3 months and refund in respect of unpaid bills is not forthcoming immediately.
(b) Advances recalled, i.e., where the repayment is highly doubtful and revival of the unit is not considered worthwhile and a decision has been taken to recall the advances.
(c) Suit-filed accounts, i.e., where legal action or recovery proceedings have been initiated and suits are pending for recovery of advances.
(d) Decreed debts, i.e., where suits have been filed and decree obtained and such decree is pending for execution.
(e) Debts recoverability whereof has become doubtful on account of shortfalls in value of security, difficulty in enforcing and realising the securities, or inability or unwillingness of the borrower to repay the banks dues - partly or wholly - and such debts have not been included in preceding clauses (a) to (d) .
_____________________________
1. Inserted by the It (Tenth Amdt.)) Rules, 1992 w.r.e.f. 1-4-1992.
The provisions of clause (b) of section 43D shall apply in the case of every public company where its income by way of interest pertains to the following categories of bad and dobtful debts, namely :--
(a) (i) doubtful asset, that is, a debt which has remained a non-performing asset of the nature specified in sub-clause for a period exceeding two years;
(ii) Non-performing asset referred to in sub-clause (i) shall be the following:--
(1) term loan beyond one year, if the interest amount remains 'past due' for six months or instalment is overdue for more than six months;
(2) lease rental or hire purchase instalment, if the rental or the instalment is 'past due' for six months;
(3) bill purchased or discounted, if the bill remains overdue and unpaid for six months; or
(4) any other credit facility in the nature of short term loan or advance [other than those referred to in (1), (2) and (3) above], if any amount to be received in respect of such a facility remains 'past due' for a period of six months;
(b) loss asset, that is, a debt which has been identified as loss and considered as uncollectible but has not been written off in the accounts of the assessee.
Explanation.--For the purposes of this rule, an amount shall be deemed to be 'past due' when it remains unpaid for thirty days beyond the due date.]
____________________________
1. Inserted by the It (Thirtieth Amendment) Rules, 199, w.e.f. 6-10-1999.
Books of account and other documents to be kept and maintained under section 44AA(3) by persons carrying on certain professions.
(1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or authorised representative or film artist shall keep and maintain the books of account and other documents specified in sub-rule (2) :
1[Provided that nothing in this sub-rule shall apply in relation to any previous year in the case of any person if his total gross receipts in the profession do not exceed one lakh fifty thousand rupees in any one of the three years immediately preceding
the previous year, or, where the profession has been newly set up in the previous year, his total gross receipts in the profession for that year are not likely to exceed the said amount.]
(2) The books of account and other documents referred to in sub-rule (1) shall be the following, namely:--
(i) a cash book;
(ii) a journal, if the accounts are maintained according to the mercantile system of accounting;
(iii)) a ledger;
(iv)) carbon copies of bills, whether machine numbered or otherwise serially numbered, wherever such bills are issued by the person, and carbon copies or counterfoils of machine numbered or otherwise serially numbered receipts issued by him:
Provided that nothing in this clause shall apply in relation to sums not exceeding twenty-five rupees;
(v)) original bills wherever issued to the person and receipts in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed fifty rupees, payment vouchers prepared and signed by the person:
Provided that the requirements as to the preparation and signing of payment vouchers shall not apply in a case where the cash book maintained by the person contains adequate particulars in respect of the expenditure incurred by him.
Explanation: In this rule,--
(a)) "authorised representative" means a person who represents any other person, on payment of any fee or remuneration before any Tribunal or authority constituted or appointed by or under any law for the time being in force, but does not include an employee of the person so represented or aperson carrying on legal profession or a person carrying on the profession of accountancy;
(b) "cash book" means a record of all cash receipts and payments, kept and maintained from day-to-day and giving the cash balance in hand at the end of each day or at the end of a specified period not exceeding a month;
(c) "film artist" means any person engaged in his professional capacity in the production of a cinematograph film whether produced by him or by any other person, as
(i) an actor;
(ii) a cameraman;
(iii) a director, including an assistant director;
(iv) a music director, including an assistant music director;
(v) an art director, including an assistant art director;
(vi) a dance director, including an assistant dance director;
(vii) an editor;
(viii) a singer;
(ix) a lyricist;
(x) a story writer;
(xi) a screen-play writer;
(xii) a dialogue writer; and
(xiii) a dress designer.
(3) Aperson carrying on medical profession shall, in addition to the books of account and other documents specified in sub-rule (2) , keep and maintain the following, namely:--
(i) a daily case register in Form No.3C;
(ii)) an inventory under broad heads, as on the first and the last day of the previous year, of the stock of drugs, medicines and other consumable accessories used for the purpose of his profession.
(4) The books of account and other documents specified in sub-rule (2) and sub-rule (3) other than those relating to a previous year which has come to an end shall be kept and maintained by the person at the place where he is carrying on the profession or, where the profession is carried on in more places than one, at the principal place of his profession:
Provided that where the person keeps and maintains separate books of account in respect of each place where the profession is carried on, such books of account and other documents may be kept and maintained at the respective places at which the profession is carried on.
(5) The books of account and other documents specified in sub-rule (2) and sub-rule (3) shall be kept and maintained for a period of 2[six years] from the end of the relevant assessment year:
3[***]
4[Provided] that where the assessment in relation to any assessment year has been reopened under section 147 of the Act within the period specified in section 149 of the Act, all the books of account and other documents which were kept and maintained at the time of reopening of the assessment shall continue to be so kept and maintained till the assessment so reopened has been completed.
(6) Notwithstanding anything contained in sub-rules (1) to (3) , it shall not be necessary for any person carrying on any of the professions specified in sub-rule (1) to keep and maintain the books of account and other documents specified in sub-rule (2) or sub-rule (3) in relation to any previous year commencing before the first day of March, 1983.
_______________________________
1 Substituted by the IT (First Amdt.)) Rules, 2000, w.e.f. 6-4-2000. Prior to its substitution.proviso, as inserted by the It (Fifth Amdt.)) Rules, 1983, w.e.f. 28-2-1983, read as under: provided the nothing in this sub-rule shall apply in relation to any previous year-
(a) in the case of any person other than a person referred to in clause (b) , if his total gross receipts in the profession do not exceed sixty thousand rupees in any one of the three years immediately preceding the previous year, or, where the profession has been newly set up in the previous year, his total gross receipts in the profession for that year are not likely to exceed the said amount:
(b) in case of a person who, in the course of his medical profession, dispenses drugs and medicines, his total gross receipts in the profession do not exceed eighty thousand rupees in any one of the three years immediately preceding the previous year, or, where the profession (including the dispensing of drugs and medicines) has been newly set up in the previous year, his total gross receipts in the profession for that year are not likely to exceed the said amount.
2. Substituted for eight years by the I.T. (First Amendment) Rules, 2002 w.e.f 04.02.2002.
3. Omitted by the I.T. (First Amendment) Rules, 2002 w.e.f 04.02.2002. Prior to omission the proviso read as under:
Provided that in relation to the books of account referred to in clause (i) and clause (iii) of sub-rule (2) , the provisions of this sub-rule shall apply as if for the words "eight years", the words "sixteen years" had been substituted;
4. Substituted for the words Provided further by the I.T. (First Amendment) Rules, 2002 w.e.f 04.02.2002.
(1) The report of audit of the accounts of a person required to be furnished under, section 44AB shall,--
(a) in the case of a person who carries on business or profession and who is required by or under any other law to get his accounts audited, be in Form No. 3CA;
(b) in the case of a person who carries on business or profession, but not being a person referred to in clause (a), be in Form No. 3CB.
(2) The particulars which are required to be furnished under section 44AB shall be in Form No. 3CD.
_____________________________
1. Substituted by the IT (Fourteenth Amdt.) Rules, 1999, w.e.f. 4-6-1999. Prior to its substitution, rule 6F, as inserted by the IT (Amdt.) Rules, 1985, w.e.f. 1-4-1985 and later on amended by the IT (Sixth Amdt.) Rules, 1985, w.e.f. 1-4-1985, read as under:
6G. Report of audit of accounts to be furnished under section 44AB.-(1) The report of audit of the accounts of a person required to be furnished under section 44AB shall,-
(a) in the case of a person who carries on business and who is required by or under any other law to get his accounts audited, be in From No. 3CA;
(b) in the case of a person who carries on business, but not being a person referred to in clause (a), be in Form No. 3CB;
(c) in the case of person who carries on profession, be in Form No. 3CE.
(2) The particulars which are required to be furnished under section 44AB shall,-
(a) in the case of a person carrying on business, be in Form NO. 3CD;
(b) in the case of a person carrying on profession, be in Form No. 3CE.
The report of audit of accounts of the non-resident (not being a company) or a foreign company, which is required to be furnished under sub-section (2) of section 44DA shall be in Form No. 3CE.]
______________________________
1. Inserted vide the Income-tax (Twenty-Seventh Amendment) Rules, 2003 w.e.f. 20.11.2003
The report of an accountant which is required to be furnished by every assessee along with the return of income, in case of slump sale, under sub-section (3) of section 50B. shall be in Form No. 3 CEA.]
(1) In the case of income which is partially agricultural income as defined in section 2 and partially income chargeable to income-tax under the head 'Profits and gains of business", in determining that part which is chargeable to income-tax the market value of any agricultural produce which has been raised by the assessee or received by him as rent-in-kind and which has been utilised as a raw material in such business or the sale receipts of which are included in the accounts of the business shall he deducted, and no further deduction shall be made in respect of any expenditure incurred by the assesses as a cultivator or receiver of rent-in-kind.
(2) For the purposes of sub-rule (1) "market value" shall be deemed to be:--
(a) where agricultural produce is ordinarily sold in the market in its raw state, or after application to it of any process ordinarily employed by a cultivator or receiver of rent-in-kind to render it f it to be taken to market, the value calculated according to the average price at which it has been so sold during the relevant previous year;
(b) where agricultural produce is not ordinarily sold in the market in its raw state or after application to it of any process aforesaid, the aggregate of
(i) the expenses of cultivation;
(ii)the land revenue or rent paid for the area in which it was grown; and
(iii) such amount as the Assessing Officer finds, having regard to all the circumstances in each case, to represent a reasonable profit.
2[(1) Income derived from the sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe, re-milled crepe, smoked blanket crepe or flat bark crepe) or technically specified block rubbers manufactured or processed from field latex or coagulum obtained from rubber plants grown by the seller in India shall be computed as if it were income derived from business, and thirty-five per cent of such income shall be deemed to be income liable to tax.]
(2) In computing such income, an allowance shall be made in respect of the cost of planting rubber plants in replacement of plants that have died or became permanently useless in an area already planted, if such area has not previously been abandoned, and for the purpose of determining such cost, no deduction shall be made in respect of the amount of any subsidy which, under the provisions of clause (31) of section 10, is not includible in the total income.]
_____________________________
1 Inserted by the It (second Amdt.) Rule, 2001, w.e.f. 1-4-2002.
2. Substituted by the I.T. (Third Amdt.) Rules 2002 w.e.f. 01-04-2003. Prior to its substitution the Rule read as under :
"(1) Income derived from the sale of centrifuged latex or cenex manufactured from rubber plants grown by the seller in India shall be computed as if it were income derived from business, and thirty-five per cent of such income shall be deemed to be income liable to tax."
2[(1) Income derived from the sale of coffee grown and cured by the seller in India shall be computed as if it were income derived from business, and twenty-five per cent of such income shall be deemed to be income liable to tax.
(1A) Income derived from the sale of coffee grown, cured, roasted and grounded by the seller in India, with or without mixing chicory or other flavouring ingredients, shall be computed as if it were income derived from business, and forty per cent of such income shall be deemed to be income liable; to tax.
Explanation: For the purposes of sub-rules (1) and (1A) curing shall have the same meaning as assigned to it in sub-section (d) of section 3 of the Coffee Act, 1942 (7 of 1942).]
(2) 3[In computing the incomes referred to in sub-rules (1) and (1A)], an allowance shall be made in respect of the cost of planting coffee plants in replacement of plants that have died or become permanently useless in an area already planted, if such area has not previously been abandoned, and for the purpose of determining such cost, no deduction shall be made in respect of the amount of any subsidy which, under the provisions of clause (31) of section 10, is not includible in the total income]
_________________________________
1. Inserted by the IT (Second Amdt.) Rules, 2001, w.e.f. 1-4-2002.
2. Substituted by IT (Eleventh Amdt.) Rules, 2002 w.e.f. 01.04.2002. Prior to substitution clause (1) read as under :
(1) Income derived from the sale of coffee grown and manufactured by the seller in India, with or without mixing of chicory or other flavouring ingredients, shall be computed as if it were income derived from business, and forty per cent of such income shall be deemed to be income liable to tax.
3. Substituted for In computing such income by IT (Eleventh Amdt.) Rules, 2002 w.e.f. 01.04.2002.
(1) Income derived from the sale of lea grown and manufactured by the seller in India shall be computed as if it were income derived from business, and forty per cent of such income shall be deemed to be income liable to tax.
(2) In computing such income an allowance shall be made in respect of the cost of planting bushes in replacement of bushes that have died or become permanently useless in an area already planted, if such area has not previously been abandoned , and for the purpose of determining such cost, no deduction shall be made in respect of the amount of any subsidy which, under the provisions of clause (30) of section 10, is not includible in the total income.
The other conditions referred to in clause (iii) of sub-section (3) of section 33A shall be the following, namely:--
(a) the assessee shall, at least three months before commencing the operations for planting or, as the case may be, replanting tea bushes, give notice of his intention to do so to the Tea Board in writing in Form No. 4:
Provided that in a case where such operations have commenced before the 1st day of January, 1968, this condition shall be deemed to have been fulfilled if notice of such commencement is given by the assessee before the 1st day of February, 1968;
(b) the assessee shall afford the Tea Board or such other person or agency as may be authorised in writing by the Tea Board in this behalf, every reasonable facility to enter upon and inspect the area under planting or, as the case may be, replanting;
(c) the assessee shall furnish lo the Tea Board such particulars, documents or statements, in relation to the planting or replanting of tea, as the Tea Board may require him to furnish;
(d) the assessee shall furnish to the Assessing Officer, along with his return of income for the previous year for which the deduction is claimed, a certificate from the Tea Board in Form No. 5 and a statement of particulars in Form No. 5A.
Explanation: For the purposes of this rule, "Tea Board" means the Tea Board established under section 4 of the Tea Act, 1953 (29 of 1953).
1[8B. (1) Guidelines for notification of zero coupon bond. An application by an infrastructure capital company or infrastructure capital fund or a public sector company for notification under clause (48) of section 2 of any zero coupon bond proposed to be issued by it shall be made in Form No. 5B at least three months before the date of issue of such bond:
Provided that an application shall not be made for notification of a bond to be issued after two financial years following the financial year in which the application is made.
(2) Every application, under sub-rule (1), shall be accompanied by the following documents, namely:
(i) where the application is made by any infrastructural capital company or a public sector company, being a government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), a copy of certificate of incorporation under the Companies Act, 1956 (1 of 1956);
(ii) where the application is made by any infrastructure capital fund, a copy of the trust deed registered under the provisions of the Registration Act, 1908 (16 of 1908);
(iii) where the application is made by a public sector company, being any corporation, established by or under any Central or State or Provincial Act, a copy of the relevant Act;
(3) The Central Government, while specifying a zero coupon bond by notification in the Official Gazette shall satisfy itself that the following conditions are fulfilled, namely:
(i) the period of life of the bond is not less than ten years and not more than twenty years;
(ii) the infrastructure capital company or infrastructure capital fund or public sector company proposing to issue a zero coupon bond has an investment grade rating from at least two credit rating agencies registered under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(iii) necessary arrangement has been made by the infrastructure capital company or infrastructure capital fund or public sector company for listing the zero coupon bond in a recognised stock exchange in India;
(iv) where the application is made by the infrastructural capital company or infrastructure capital fund, such company or fund shall furnish along with the application an undertaking that the money realised on issue of the zero coupon bond shall be invested by it in the following manner, namely:
(i) twenty-five per cent, or more of such realisation before the end of the financial year immediately following the financial year in which the bond is issued;
(ii) the balance of such realization within a period of four financial years immediately following the financial year in which the bond is issued;
(v) where the application is made by a pubic sector company, such company shall furnish along with the application an undertaking that the money realised on issue of the zero coupon bond shall be invested or utilised by it in the following manner, namely:
(i) fifteen per cent, or more of such realisation before the end of the financial year immediately following the financial year in which the bond is issued;
(ii) the balance of such realisation within a period of six financial years immediately following the financial year in which the bond is issued;
(4) The Central Government, after having satisfied itself about fulfilling of the conditions referred to in sub-rule (1), sub-rule (2), and sub-rule (3) shall specify the bond, by notification in the Official Gazette, giving therein, inter alia, the following particulars, namely:
(a) name of the bond;
(b) period of life of the bond;
(c) the time schedule of the issue of the bond;
(d) the amount to be paid on maturity or redemption of the bond;
(e) the discount;
(f) the number of bonds to be issued;
(5) The Central Government may, if the applicant fails to fulfil the conditions referred to in sub-rule (1) or sub-rule (2) or sub-rule (3), reject the application for notification after giving an opportunity of being heard to the infrastructure capital company or infrastructure capital fund or public sector company, as the case may be.
(6) Every infrastructure capital company or infrastructure capital fund or public sector company shall submit within two months from the end of each financial year referred to in sub-clause (i) or sub-clause (ii) of clause (iv) of sub-rule (3), or as the case may be, in sub-clause (i) or sub-clause (ii) of clause (v) of sub-rule (3), a certificate from an accountant as defined in the Explanation to sub-section (2) of section 288, specifying the amount invested in each year.
(7) The Central Government shall have the power to withdraw the notification if the applicant fails to fulfil any of the conditions referred to in sub-rule (3) or sub-rule (6).
Explanation. - For the purpose of this rule, the expressions discount and period of life of the bond shall have the same meanings respectively assigned to them in clause (i) and clause (ii) of the Explanation to clause (iiia) of sub-section (1) of section 36 Computation of pro rata amount of discount on a zero coupon bond for the purpose of clause (iiia) of sub-section (1) of section 36.
.................................................
1. Inserted by Income-tax (3rd Amendment) Rules, 2006 vide Notification No. 93/2006 dt. 30.03.2006.
For the purposes of clause (iiia) of sub-section (1) of section 36, the pro rata amount of discount on a zero coupon bond shall be computed in the following manner, namely:
(a) the period of the life of the bond shall be converted into number of calendar months and, for this purpose, where the calendar month in which the bond is issued or the bond matures or is redeemed contains a part of a calendar month then, if such part is fifteen days or more than fifteen days, it shall be increased to one calendar month and if such part is less than fifteen days it shall be ignored;
(b) the amount of discount shall be divided by the number of calendar months determined in accordance with clause (a);
(c) where one or more than one calendar month out of calendar months determined in accordance with clause (a) is or are included in a previous year, the amount determined in accordance with clause (b) shall be multiplied by the number of calendar months so included and the amount so arrived at shall be taken to be the pro rata amount of discount for that previous year.]
(1) Where the Assessing Officer, having regard to the accounts of the assessee of a previous year, is not satisfied with-
(a) the correctness of the claim of expenditure made by the assessee; or
(b) the claim made by the assessee that no expenditure has been incurred, in relation to income which does not form part of the total income under the Act for such previous year, he shall determine the amount of expenditure in relation to such income in accordance with the provisions of sub-rule (2).
(2) The expenditure in relation to income which does not form part of the total income shall be the aggregate of following amounts, namely:-
(i) the amount of expenditure directly relating to income which does not form part of total income;
(ii) in a case where the assessee has incurred expenditure by way of interest during the previous year which is not directly attributable to any particular income or receipt, an amount computed in accordance with the following formula, namely:-
A x B = C
Where A = amount of expenditure by way of interest other than the amount of interest included in clause (i) incurred during the previous year;
B = the average of value of investment, income from which does not or shall not form part of the total income, as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year;
C = the average of total assets as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year;
(iii) an amount equal to one-half per cent of the average of the value of investment, income from which does not or shall not form part of the total income, as appearing in the balance sheet of the assessee, on the first day and the last day of the previous year.]
Explanation: For the purposes of this rule, the 'total assets' shall mean, total assets as appearing in the balance sheet excluding the increase on account of revaluation of assets but including the decrease on account of revaluation of assets.
_____________________________
1. Inserted by the Income-tax (Fifth Amendment) Rules, 2008 vide Notification No. 45/2008 dated 24.03.2008.
(1) Where a claim for an allocation is or has been made under section 12AA of the Indian Income-tax Act, 1922 (11 of 1922), in respect of the amount referred to in that section, it shall be dealt with in the following manner, namely:--
(i) where the time taken by the author of the literary or artistic work in the making thereof is more than twelve but less than twenty-four months, one-half of the amount referred to in the said section shall be included in the total income of the previous year in which the whole amount is received or receivable, and the other half in the total income of the next succeeding previous year; and
(ii) where the time so taken is twenty-four months or more, one-third of the amount referred to in the said section shall be included in the total income of the previous year in which the whole amount is received or receivable and one- third of the said amount in the total income of each of the two next succeeding previous years.
(2) Where a claim for an allocation is made by an assessee under section 180 for the assessment year 1962-63 or any subsequent assessment year, it shall be dealt with in the following manner, namely:--
(i) the tax for the assessment year relevant to the previous year in which the whole amount is received or receivable shall be--
(a) the amount of tax payable on the total income as reduced by two-thirds of the amount referred to in section 180 included in the total income of the previous year aforesaid had the total income so reduced been his total income; plus
(b) the tax on an amount equal to two-thirds of the amount referred to in section 180 included in the lolal income of the previous year aforesaid at the rate applicable to a total income of an amount equal to one-third of such inclusion; and
(ii) one-third of the amount referred to in section 180 included in the total income of the previous year aforesaid shall be included in the total income of each of the two next succeeding previous years and the tax payable, if any, in respect of each of the assessments relevant to the two said succeeding previous years shall be reduced by an amount equal to one-half of the tax referred to in sub-clause (b) of clause (i).
(1) In computing the profits and gains of the business of production of feature films carried on by a person (the person carrying on such business hereafter in this rule referred to as film producer), the deduction in respect of the cost of production of a feature film certified for release by the Board of Film Censors in a previous year shall be allowed in accordance with the provisions of sub-rule (2) to sub-rule (4),
Explanation : In this rule,--
(i) "Board of Film Censors" means the Board of Film Censors constituted under the Cinematograph Act, 1952 (37 of1952);
(ii) "cost of production", in relation to a feature film, means the expenditure incurred on the production of the film, not being-
(a) the expenditure incurred for the preparation of the positive prints of the film; and
(b) the expenditure incurred in connection with the advertisement of the film after it is certified for release by the Board of Film Censors:
Provided that the cost of production of a feature film, shall be reduced by the subsidy received by the film producer under any scheme framed by the Government, where such amount of subsidy has not been included in computing the total income of the assessce for any assessment year.
(2) Where a feature film is certified for release by the Board of Film Censors in any previous year and in such previous year,--
(a) the film producer sells all rights of exhibition of the film, the entire cost of production of the film shall be allowed as a deduction in computing the profits and gains of such previous year; or
(b) the film producer--
(i) himself exhibits the film on a commercial basis in all or some of the areas; or
(ii) sells the rights of exhibition of the film in respect of some of the areas; or
(iii) himself exhibits the film on a commercial basis in certain areas and sells the rights of exhibition of the film in respect of all or some of the remaining areas, and the film is released for exhibition on a commereial basis at least 1ninety days before the end of such previous year, the entire cost of production of the film shall be allowed as a deduction in computing the profits and gains of such previous year.
(3) Where a feature film is certified for release by the Board of Film Censors in any previous year and in such previous year, the film producer--
(a) himself exhibits the film on a commercial basis in all or some of the areas; or
(b) sells the rights of exhibition of the film in respect of some of the areas; or
(c) himself exhibits the film on a commercial basis in certain areas and sells the rights of exhibition of the film in respect of all or some of the remaining areas,
and the film is not released for exhibition on a commercial basis at least 2 [ninety] days before the end of such previous year, the cost of production of the film in so far as it does not exceed the amount realised by the film producer by exhibiting the film on a commercial basis or the amount for which the rights of exhibition are sold or, as the case may be, the aggregate of the amounts realised by the film producer by exhibiting the film and by the sale of the rights of exhibition, shall be allowed as a deduction in computing the profits and gains of such previous year; and the balance, if any, shall be carried forward to the next following previous year and allowed as a deduction in that year.
(4) Where, during the previous year in which a feature film is certified for release by the Board of Film Censors, the film producer does not himself exhibit the film on a commercial basis or does not sell the rights of exhibition of the film, no deduction shall be allowed in respect of the cost of production of the film in computing the profits and gains of such previous year; and the entire cost of production of the film shall be carried forward to the next following previous year and allowed as a deduction in that year.
(5) Notwithstanding anything contained in the foregoing provisions of this rule, the deduction under this rule shall not be allowed unless,--
(a) in a case where the film producer--
(i) has himself exhibited the feature film on a commercial basis; or
(ii) has sold the rights of exhibition of the feature film; or
(iii) has himself exhibited the feature film on a commercial basis in some areas and has sold the lights of exhibition of the feature film in respect of all or some of the remaining areas, the amount realised by exhibiting the film, or the amount for which the rights of exhibition have been sold or, as the case may be, the aggregate of such amounts, is credited in the books of account maintained by him in respect of the year in which the deduction is admissible;
(b) in a case where the film producer has transferred the rights of exhibition of the feature film on a minimum guarantee basis, the minimum amount guaranteed and the amount, if any, received or due in excess of the guaranteed amount or where the film producer follows cash system of accounting, the amount received towards the minimum guarantee and the amount, if any, received in excess of the guaranteed amount, arc credited in the books of account maintained by him in respect of the year in which the deduction is admissible.
(6) Where the Assessing Officer is of opinion that--
(a) the rights of exhibition of the feature film have been transferred by the film producer by a mode not covered by the provisions of this rule; or
(b) having regard to the facts and circumstances of any case, it is not practicable to apply the provisions of this rule to such case, deduction in respect of the cost of production of the film may be allowed by the Asscssing Officer in such other manner as he may deem suitable.
(7) For the purposes of this rule,--
(i) the sale of the rights of exhibition of a feature film includes the lease of such rights or their transfer on a minimum guarantee basis;
(ii)the rights of exhibition of a feature film shall be deemed to have been sold only on the date when the positive prints of the film are delivered by the film producer to the purchaser of such rights or where in terms of the agreement between the film producer and the film distributor as defined in rule 9B, the positive prints are to be made by the film distributor, the date on which the negative of the film is delivered by the film producer to the film distributor.
(8) Nothing contained in this rule shall apply in relation to any assessment year commencing before the 1st day of April, 1987.
__________________________
1. Substituted for one hundred and eighty by the It (Ninth Amdt.) Rules, 1998, w.e.f. 1-4-1999.
2. Substituted for one hundred and eighty by the IT (Ninth Amdt.) Rules, 1998, w.e.f. 1-4-1999. Earlier one hundred and eighty was substituted for ninety by the IT (Second Amdt.) Rules, 1986, w.e.f. 2-4-1986.
(1) In computing the profits and gains of the business of distribution of feature films carried on by a person (the person carrying on such business hereafter in this rule referred to as film distributor), the deduction in respect of the cost of acquisition of a feature film shall be allowed in accordance with sub-rule (2) to sub-rule (4).
Explanation : For the purposes of this rule, "cost of acquisition", in relation to a feature film, means the amount paid by the film distributor to the film producer or to another distributor under an agreement entered into by the film distributor with such film producer or such other distributor, as the case may be for acquiring the rights of exhibition and, where the rights of exhibition have been acquired on a minimum guarantee basis, the minimum amount guaranteed, not being--
(i) the amount of expenditure incurred by the film distributor for the preparation of the positive prints of the film; and
(ii) the expenditure incurred by him in connection with the advertisement of the film.
(2) Where a feature film is acquired by the film distributor in any previous year and in such previous year--
(a) the film distributor sells all rights of exhibition of the film, the entire cost of acquisition of the film shall be allowed as a deduction in computing the profits and gains of such previous year; or
(b) the film distributor,--
(i) himself exhibits the film on a commercial basis in all or some of the areas; or
(ii) sells the rights of exhibition of the film in respect of some of the areas; or
(iii) himself exhibits the film on a commercial basis in certain areas and sells the rights of exhibition of the film in respect of all or some of the remaining areas,
and the film is released for exhibition on a commercial basis at least 1[ninety] days before the end of such previous year, the entire cost of acquisition of the film shall be allowed as a deduction in computing the profits and gains of such previous year.
(3) Where a feature film is acquired by the film distributor in any previous year and in such previous year the film distributor--
(a) himself exhibits the film on a commercial basis in all or some of the areas; or
(b) sells the rights of exhibition of the film in respect of sonic of the areas; or
(c) himself exhibits the film on a commercial basis in certain areas and sells the rights of exhibition of the film in respect of all or some of the remaining areas, and the film is not released for exhibition on a commercial basis at least 2[ninety] days before the end of such previous year, the cost of acquisition of the film in so far as it docs not exceed the amount realised by the film distributor by exhibiting the film on a commercial basis or the amount for which the rights of exhibition have been sold or, as the case may be, the aggregate of the amounts realised by the film distributor by exhibiting the film and by the sale of the lights of exhibition, shall be allowed as a deduction in computing the profits and gains of such previous year; and the balance, if any, shall be carried forward to the next following previous year and allowed as a deduction in that year.
(4) Where during the previous year in which a feature film is acquired by the film distributor, he docs not himself exhibit the film on a commercial basis or docs not sell the rights of exhibition of the film, no deduction shall be allowed in respect of the cost of acquisition of the film in computing the profits and gains of such previous year; and the entire cost of acquisition shall be carried forward to the next following previous year and allowed as a deduction in that year.
(5) Notwithstanding anything contained in the foregoing provisions of this rule, the deduction under this rule shall not be allowed unless--
(a) in a case where the film distributor,--
(i) has himself exhibited the feature film on a commercial basis; or
(ii) has sold the rights of exhibition of the feature film; or
(iii) has himself exhibited the feature film on a commercial basis in some areas and has sold the rights of exhibition of the feature film in respect of all or some of the remaining areas, the amount realised by exhibiting the film, or the amount for which the rights of exhibition have been sold, or, as the case may be, the aggregate of such amounts, is credited in the books of account maintained by him in respect of the year in which the deduction is admissible ;
in a case where the film distributor has transferred the rights of exhibition of the feature film on a minimum guarantee basis, the minimum amount guaranteed and the amount, if any, received or due in excess of the guaranteed amount, or where the film distributor follows cash system of accounting, the amount received towards the minimum guarantee and the amount, if any, received in excess of the guaranteed amount, are credited in the books of account maintained by him in respect of the year in which the deduction is admissible.
(6) For the purposes of this rule,--
(i) the sale of the rights of exhibition of a feature film includes the lease of such rights or their transfer on a minimum guarantee basis;
(ii) the rights of exhibition of a feature film shall be deemed to have been sold only on the dale when the positive prints of the film are delivered by the film distributor to the purchaser of such rights ;
(iii) distributor shall include a sub-distributor.
(7) Nothing contained in this rule shall apply in relation to any assessment year commencing before the 1st day of April, 1987.
___________________________
1. Substituted for one hundred and eighty by the IT (Ninth Amdt.) Rules, 1998, w.e.f. 1-4-1999.
2. Substituted for one hundred and eighty by the IT (Ninth Amdt.) Rules, 1998, w.e.f. 1-4-1999.
The conditions referred to in clause (iii) of sub-section (2) of section 72A shall be the following, namely :--
(a) the amalgamated company, owning an industrial undertaking of the amalgamating company by way of amalgamation, shall achieve the level of production of at least fifty per cent of the installed capacity of the said undertaking before the end of four years from the date of amalgamation and continue to maintain the said minimum level of production till the end of five years from the date of amalgamation :
Provided that the Central Government, on an application made by the amalgamated company, may relax the condition of achieving the level of production or the period during which the same is to be achieved or both in suitable cases having regard to the genuine efforts made by the amalgamated company to attain the prescribed level of production and the circumstances preventing such efforts from achieving the same;
(b) the amalgamated company shall furnish to the Assessing Officer a certificate in Form No. 62, duly verified by an accountant, with reference to the books of accounts and other documents showing particulars of production, along with the return of income for the assessment year relevant to the previous year during which the prescribed level of product ion is achieved and for subsequent assessment years relevant to the previous years falling within five years from the date of amalgamation.
Explanation.--For the purposes of this rule,--
(a) "installed capacity" means the capacity of production existing on the date of amalgamation; and
(b) "accountant" means the accountant as defined in the Explanation below sub-section (2) of section 288 of theIncome-tax Act, 1961.]
_____________________________
1. Inserted by the IT (Thirty-third Amdt.) Rules, 1999, w.e.f. 15-12-1999.
In any case in which the Assessing Officer is of opinion that the actual amount of the income accruing or arising to any non-resident person whether directly or indirectly, through or from any business connection in India or through or from any property in India or through or from any asset or source of income in India or through or from any money lent at interest and brought into India in cash or in kind cannot be definitely ascertained, the amount of such income for the purposes of assessment to income-tax may be calculated:--
(i) at such percentage of the turnover so accruing or arising as the Assessing Officer may consider to be reasonable, or
(ii) on any amount which bears the same proportion to the total profits and gains of the business of such person (such profits and gains being computed in accordance with the provisions of the Act), as the receipts so accruing or arising bear to the total receipts of the business, or
(iii) in such other manner as the Assessing Officer may deem suitable.
For the purposes of this rule and rules 10B to 10E,-
(a) uncontrolled transaction means a transaction between enterprises other than associated enterprises, whether resident or non-resident;
(b) property includes goods, articles or things, and intangible property;
(c) services include financial services;
(d) transaction includes a number of closely linked transactions.
__________________________________
1 Inserted by the I.T. (twenty first Amendmetn) Rules , 2001 w.e.f 21.08.2001
(1) For the purposes of sub-section (2) of section 92C, the arms length price in relation to an international transaction shall be determined by any of the following methods, being the most appropriate method, in the following manner, namely:-
(a) comparable uncontrolled price method, by which,-
(i) the price charged or paid for property transferred or services provided in a comparable uncontrolled transaction, or a number of such transactions, is identified;
(ii) such price is adjusted to account for differences, if any, between the international transaction and the comparable uncontrolled transactions or between the enterprises entering into such transactions, which could materially affect the price in the open market;
(iii) the adjusted price arrived at under sub-clause (ii) is taken to be an arms length price in respect of the property transferred or services provided in the international transaction;
(b) resale price method, by which,-
(i) the price at which property purchased or services obtained by the enterprise from an associated enterprise is resold or are provided to an unrelated enterprise, is identified;
(ii) such resale price is reduced by the amount of a normal gross profit margin accruing to the enterprise or to an unrelated enterprise from the purchase and resale of the same or similar property or from obtaining and providing the same or similar services, in a comparable uncontrolled transaction, or a number of such transactions;
(iii) the price so arrived at is further reduced by the expenses incurred by the enterprise in connection with the purchase of property or obtaining of services;
(iv) the price so arrived at is adjusted to take into account the functional and other differences, including differences in accounting practices, if any, between the international transaction and the comparable uncontrolled transactions, or between the enterprises entering into such transactions, which could materially affect the amount of gross profit margin in the open market;
(v) the adjusted price arrived at under sub-clause(iv) is taken to be an arms length price in respect of the purchase of the property or obtaining of the services by the enterprise from the associated enterprise;
(c) cost plus method, by which,-
(i) the direct and indirect costs of production incurred by the enterprise in respect of property transferred or services provided to an associated enterprise, are determined;
(ii) the amount of a normal gross profit mark-up to such costs (computed according to the same accounting norms) arising from the transfer or provision of the same or similar property or services by the enterprise, or by an unrelated enterprise, in a comparable uncontrolled transaction, or a number of such transactions, is determined;
(iii) the normal gross profit mark-up referred to in sub-clause (ii) is adjusted to take into account the functional and other differences, if any, between the international transaction and the comparable uncontrolled transactions, or between the enterprises entering into such transactions, which could materially affect such profit mark-up in the open market;
(iv) the costs referred to in sub-clause(i) are increased by the adjusted profit mark-up arrived at under sub-clause (iii);
(v) the sum so arrived at is taken to be an arms length price in relation to the supply of the property or provision of services by the enterprise;
(d) profit split method, which may be applicable mainly in international transactions involving transfer of unique intangibles or in multiple international transactions which are so interrelated that they cannot be evaluated separately for the purpose of determining the arms length price of any one transaction, by which-
(i) the combined net profit of the associated enterprises arising from the international transaction in which they are engaged, is determined;
(ii) the relative contribution made by each of the associated enterprises to the earning of such combined net profit, isthen evaluated on the basis of the functions performed, assets employed or to be employed and risks assumed by each enterprise and on the basis of reliable external market data which indicates how such contribution would be evaluated by unrelated enterprises performing comparable functions in similar circumstances;
(iii) the combined net profit is then split amongst the enterprises in proportion to their relative contributions, as evaluated under sub-clause (ii);
(iv) the profit thus apportioned to the assessee is taken into account to arrive at an arms length price in relation to the international transaction:
Provided that the combined net profit referred to in sub-clause (i) may, in the first instance, be partially allocated to each enterprise so as to provide it with a basic return appropriate for the type of international transaction in which it is engaged, with reference to market returns achieved for similar types of transactions by independent enterprises, and thereafter, the residual net profit remaining after such allocation may be split amongst the enterprises in proportion to their relative contribution in the manner specified under sub-clauses (ii) and (iii), and in such a case the aggregate of the net profit allocated to the enterprise in the first instance together with the residual net profit apportioned to that enterprise on the basis of its relative contribution shall be taken to be the net profit arising to that enterprise from the international transaction;
(e) transactional net margin method, by which,-
(i) the net profit margin realised by the enterprise from an international transaction entered into with an associated enterprise is computed in relation to costs incurred or sales effected or assets employed or to be employed by the enterprise or having regard to any other relevant base;
(ii) the net profit margin realised by the enterprise or by an unrelated enterprise from a comparable uncontrolled transaction or a number of such transactions is computed having regard to the same base;
(iii) the net profit margin referred to in sub-clause (ii) arising in comparable uncontrolled transactions is adjusted to take into account the differences, if any, between the international transaction and the comparable uncontrolled transactions, or between the enterprises entering into such transactions, which could materially affect the amount of net profit margin in the open market;
(iv) the net profit margin realised by the enterprise and referred to in sub-clause (i) is established to be the same as the net profit margin referred to in sub-clause (iii);
(v) the net profit margin thus established is then taken into account to arrive at an arms length price in relation to the international transaction.
(2) For the purposes of sub-rule (1), the comparability of an international transaction with an uncontrolled transaction shall be judged with reference to the following, namely:-
(a) the specific characteristics of the property transferred or services provided in either transaction;
(b) the functions performed, taking into account assets employed or to be employed and the risks assumed, by the respective parties to the transactions;
(c) the contractual terms (whether or not such terms are formal or in writing) of the transactions which lay down explicitly or implicitly how the responsibilities, risks and benefits are to be divided between the respective parties to the transactions;
(d) conditions prevailing in the markets in which the respective parties to the transactions operate, including the geographical location and size of the markets, the laws and government orders in force, costs of labour and capital in the markets, overall economic development and level of competition and whether the markets are wholesale or retail.
(3) An uncontrolled transaction shall be comparable to an international transaction if
(i) none of the differences, if any, between the transactions being compared, or between the enterprises entering into such transactions are likely to materially affect the price or cost charged or paid in, or the profit arising from, such transactions in the open market; or
(ii) reasonably accurate adjustments can be made to eliminate the material effects of such differences.
(4) The data to be used in analysing the comparability of an uncontrolled transaction with an international transaction shall be the data relating to the financial year in which the international transaction has been entered into:
Provided that data relating to a period not being more than two years prior to such financial year may also be considered if such data reveals facts which could have an influence on the determination of transfer prices in relation to the transactions being compared.
___________________________
1. Inserted by the I.T. (twenty first Amendment) Rules , 2001 w.e.f 21.08.2001
(1) For the purposes of sub-section (1) of section 92C, the most appropriate method shall be the method which is best suited to the facts and circumstances of each particular international transaction, and which provides the most reliable measure of an arms length price in relation to the international transaction.
(2) In selecting the most appropriate method as specified in sub-rule (1), the following factors shall be taken into account, namely:-
(a) the nature and class of the international transaction;
(b) the class or classes of associated enterprises entering into the transaction and the functions performed by them taking into account assets employed or to be employed and risks assumed by such enterprises;
(c) the availability, coverage and reliability of data necessary for application of the method;
(d) the degree of comparability existing between the international transaction and the uncontrolled transaction and between the enterprises entering into such transactions;
(e) the extent to which reliable and accurate adjustments can be made to account for differences, if any, between the international transaction and the comparable uncontrolled transaction or between the enterprises entering into such transactions;
(f) the nature, extent and reliability of assumptions required to be made in application of a method.
________________________
1. Inserted by the I.T. (twenty first Amendment) Rules , 2001 w.e.f 21.08.2001
(1) Every person who has entered into an international transaction shall keep and maintain the following information and documents, namely:-
(a) a description of the ownership structure of the assessee enterprise with details of shares or other ownership interest held therein by other enterprises;
(b) a profile of the multinational group of which the assessee enterprise is a part along with the name, address, legal status and country of tax residence of each of the enterprises comprised in the group with whom international transactions have been entered into by the assessee, and ownership linkages among them;
(c) a broad description of the business of the assessee and the industry in which the assessee operates, and of the business of the associated enterprises with whom the assessee has transacted;
(d) the nature and terms (including prices) of international transactions entered into with each associated enterprise, details of property transferred or services provided and the quantum and the value of each such transaction or class of such transaction;
(e) a description of the functions performed, risks assumed and assets employed or to be employed by the assessee and by the associated enterprises involved in the international transaction;
(f) a record of the economic and market analyses, forecasts, budgets or any other financial estimates prepared by the assessee for the business as a whole and for each division or product separately, which may have a bearing on the international transactions entered into by the assessee;
(g) a record of uncontrolled transactions taken into account for analysing their comparability with the international transactions entered into, including a record of the nature, terms and conditions relating to any uncontrolled transaction with third parties which may be of relevance to the pricing of the international transactions;
(h) a record of the analysis performed to evaluate comparability of uncontrolled transactions with the relevant international transaction;
(i) a description of the methods considered for determining the arms length price in relation to each international transaction or class of transaction, the method selected as the most appropriate method along with explanations as to why such method was so selected, and how such method was applied in each case;
(j) a record of the actual working carried out for determining the arms length price, including details of the comparable data and financial information used in applying the most appropriate method, and adjustments, if any, which were made to account for differences between the international transaction and the comparable uncontrolled transactions, or between the enterprises entering into such transactions;
(k) the assumptions, policies and price negotiations, if any, which have critically affected the determination of the arms length price;
(l) details of the adjustments, if any, made to transfer prices to align them with arms length prices determined under these rules and consequent adjustment made to the total income for tax purposes;
(m) any other information, data or document, including information or data relating to the associated enterprise, which may be relevant for determination of the arms length price.
(2) Nothing contained in sub-rule (1) shall apply in a case where the aggregate value, as recorded in the books of account, of international transactions entered into by the assessee does not exceed one crore rupees:
Provided that the assessee shall be required to substantiate, on the basis of material available with him, that income arising from international transactions entered into by him has been computed in accordance with section 92.
(3) The information specified in sub-rule (1) shall be supported by authentic documents, which may include the following:
(a) official publications, reports, studies and data bases from the Government of the country of residence of the associated enterprise, or of any other country;
(b) reports of market research studies carried out and technical publications brought out by institutions of national or international repute;
(c) price publications including stock exchange and commodity market quotations;
(d) published accounts and financial statements relating to the business affairs of the associated enterprises;
(e) agreements and contracts entered into with associated enterprises or with unrelated enterprises in respect of transactions similar to the international transactions;
(f) letters and other correspondence documenting any terms negotiated between the assessee and the associated enterprise;
(g) documents normally issued in connection with various transactions under the accounting practices followed.
(4) The information and documents specified under sub-rules (1) and (2), should, as far as possible, be contemporaneous and should exist latest by the specified date referred to in clause (iv) of section 92F:
Provided that where an international transaction continues to have effect over more than one previous years, fresh documentation need not be maintained separately in respect of each previous year, unless there is any significant change in the nature or terms of the international transaction, in the assumptions made, or in any other factor which could influence the transfer price, and in case of such significant change, fresh documentation as may be necessary under sub-rules (1) and (2) shall be maintained bringing out the impact of the change on the pricing of the international transaction.
(5) The information and documents specified in sub-rules (1) and (2) shall be kept and maintained for a period of eight years from the end of the relevant assessment year.
_________________________
1 Inserted by the I.T. (twenty first Amendment) Rules , 2001 w.e.f 21.08.2001.
The report from an accountant required to be furnished under section 92E by every person who has entered into an international transaction during a previous year shall be in Form No. 3CEB and be verified in the manner indicated therein.]
……………………………………………..
1 Inserted by the I.T. (twenty first Amdt.) Rules , 2001 w.e.f 21.08.2001.
(Omitted by the I.T. (21st Amendment) Rules, 2001 w.e.f 21.08.2001)
___________________________
1. (Omitted by the I.T. (21st Amendment) Rules, 2001 w.e.f 21.08.2001) Prior to its omission it stood as under :
The profits and gains derived from any business carried on in the manner referred to in section 92 may be determined for the purposes of assessment to income-tax according to rule 10.
(1) For the purposes of clause (e) of the Explanation to Sub-section (4) of Section 8ODD and clause (d) of the Explanation to Sub-section (2) of Section 80U, the medical authority for certifying autism, cerebral palsy, multiple disabilities, person with disability and severe disability referred to in clauses (a), (c), (h), (j) and (o) of Section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999), shall consist of the following,-
(i) a Neurologist having a degree of Doctor of Medicine (MD) in Neurology (in case of children, a Paediatric Neurologist having an equivalent degree); or
(ii) a Civil Surgeon or Chief Medical Officer in a Government hospital.
(2) For the purposes of Sub-section (4) of Section 8ODD and Sub-section (2) of Section 80U, the assessee shall furnish along with the return of income, a copy of the certificate issued by the medical authority,-
(i) in Form No.10-IA, where the person with disability or severe disability is suffering from autism, cerebral palsy or multiple disability; or
(ii) in the form prescribed vide notification No. 16-18/97-NI. 1, dated the 1st June, 2001 published in the Gazette of India, Part I, Section 1, dated the 13th June, 2001 and notification No. 16-18/97-NI. 1, dated the 18th February, 2002 published in the Gazette of India, Part I, Section 1 dated the 27th February, 2002 and notified under the Guidelines for evaluation of various disabilities and procedure for certification, keeping in view the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), in any other case.
(3) Where the condition of disability is temporary and requires reassessment after a specified period, the certificate shall be valid for the period starting from the assessment year relevant to the previous year during which the certificate was issued and ending with the assessment year relevant to the previous year during which the validity of the certificate expires.;]
______________________________
1. Substituted by IT (20th Amendment) Rules, 2003 w.e.f. 01.04.2003. Prior to substitution it read as under:
11A. Permanent physical disability for purposes of deduction under section 80DD.
For the purposes of section 80DD: -
(i) permanent physical disability shall be regarded as a permanent physical disability if it falls in any one of the categories specified below, namely:-
(a) permanent physical disability of more than 50 per cent in one limb; or
(b) permanent physical disability of more than 60 per cent in two or more limbs; or
(c) permanent deafness with hearing impairment of 71 decibels and above; or
(d) permanent and total loss of voice;
(ii) blindness shall be regarded as a permanent physical disability, if it is incurable and falls in any one of the category specified below, namely:-
All with corrections
Better eye Worse eye
(a) 6/60 4/60
or
Field of vision 110 - 20 3/60 to Nil
(b) 3/60 to 1/60
or
Field of vision 100 F.C at 1 foot to Nil
(c) F.C at 1 foot to Nil
or
Field of vision 100 F.C. at 1 foot to Nil
or
Field of vision 100
(d) Total absence of sight Total absence of sight;
(iii) mental retardation shall be regarded as a mental retardation if intelligence quotient is less than 50 on a test with a mean of 100 and a standard deviation of 15 such as the Wechsle scale.
2. Substituted by Income-tax (18th Amendment) Rules, 2005 vide Notification No. 177/2005 dated 29.06.2005 for the following :-
111A Certificate to be obtained from the medical authority for the purposes of deduction under section 80DD and section 80 U
1. For the purpose of sub-section (4) of section 80 DD and sub-section (2) of section 80 U, the assessee shall furnish along with the return of income, a copy of the certificate issued by the medical authority in the form prescribed vide information No. 16-18/97-NI.1, dated 1st June, 2001 published in the Gazette of India, Part 1,Section 1 dated the 13th June, 2001 and notification No. 16-18/97-NI.1, dated 18th Febuary,2002 published in the Gazette of India , Part 1, Section 1 dated the 27th February, 2002 and notified under the Guidelines for evaluation of various disabilities and procedure for certification, keeping in view the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996).
2. Where the condition of disability is temporary and requires reassessment after a specified period, the certificate shall be valid for the period starting from the assessment year relevant to the previous year during which the certificate was issued and ending with the assessment year relevant to the previous year during which the validity of the certificate expires.
(1) The application for approval of any institution or fund under clause (vi) of subjection (5) of section 80G shall be in Form No. 10G and shall be made in triplicate.
(2) The application shall be accompanied by the following documents, namely :--
(i) Copy of registration granted under section 12A or copy of notification issued under section 10(23) or 10(23C) ;
(ii) Notes on activities of institution or fund since its inception or during the last three years, whichever is less ;
(iii) Copies of accounts of the institution or fund since its inception or during the last three years, whichever is less.
(3) The Commissioner may call for such further documents or information from the institution or fund or cause such inquiries to be made as he may deem necessary in order to satisfy himself about the genuineness of the activities of such institution or fund.
(4) Where the Commissioner is satisfied that all the conditions laid down in clauses (i) to (v) of sub-section (5) of section 80G are fulfilled by the institution or fund, he shall record such satisfaction in writing and grant approval to the institution or fund specifying the assessment year or years for which the approval is valid.
(5) Where the Commissioner is satisfied that one or more of the conditions laid down in clauses (i) to (v) of sub-section (5) of section 80G are not fulfilled, he shall reject the application for approval, after recording the reasons for such rejection in writing:
Provided that no order of rejection of an application shall be passed without giving the institution or fund an opportunity of being heard.
(6) The time limit within which the Commissioner shall pass an order either granting the approval or rejecting the application shall not exceed six months from the date on which such application was made :
Provided that in computing the period of six months, any time taken by the applicant in not complying with the directions of the Commissioner under sub-rule (3) shall be excluded.]
______________________________
1. Inserted by the IT (Seventeenth Amendment) Rules, 1992, w.e.f. 21-9-1992.
The deduction to be allowed under section 80GG in respect of any expenditure incurred by an assessee towards payment of rent for any furnished or unfurnished accommodation occupied by him for the purposes of his own residence shall be allowed subject to the condition that the assessee files the declaration in Form No. 10BA.]
______________________________
1. Substituted by the IT (Nineteenth Amendment) Rules, 1998 w.e.f. 13-10-1998. Prior to its substitution, rule 11B , as inserted by the IT (Fourth Amendment) Rules, 1976, w.e.f. 2-4-1976 and amended by the IT (Third Amendment) Rules, 1981, read as under:
"11B. Condition for allowance of deduction under section 80 FF.The deduction to be allowed under section 80GG in respect of any expenditure incurred by an assessee towards payment of rent for any furnished or unfurnished accommodation occupied by him for the purposes of his own residence shall be allowed subject to the condition that the accommodation is situated by any one of the following places, namely:--
(i) Agra, Ahmedabad, Allahabad, Amritsar, Bangalore, Bhopal, Calcutta, Coimbatore, Delhi, Faridabad, Gwalior (Lashkar), Hyderabad, Indore, Jabalpur, Jaipur, Kanpur, Lacknow, Ludhiana city, Madurai, Nagpur, Paatna, Poona, Srinagar, Surat, Vadodara (Baroda) or Varanasi (Banaras) or the urban agglomeration of each of such place; or
(ii) Bombay, Calicut, Cochin, Ghaziabad, Hudbi-Dharwar, Madras, Sholapur, Trivandram or Vishakhapatnam.Explanation: Urban agglomeration, in relation to a place referred to in this rule, means the area for the time being included in the urban agglomeration of such place for the purpose of grant of house rent allowance by the central Government to its employees under the orders issues by it from time to time in this regard."
For the purposes of clause (vi) of Explanation 2 to section 80RRA, the prescribed fields shall be,--
(a) the profession of actuaries ;
(b) banking;
(c) insurance; and
(d) journalism,
___________________________
1. Prior to its omission, rule 11D, as Substituted by the IT (Third Amendment) Rules, 1992-clauses (i) and (ii) are substituted w.r.e.f. 1-4-1990 and clause (iii) is substituted w.e.f. 1-4-1992 read as under:
For the purposes of section 80U,--
(i) permanent physical disability shall be regarded as a permanent physical disability if it falls in any one of the categories specified below, namely:--
(a) permanent physical disability of more than 50 per cent in one limb; or
(b) permanent physical disability of more than 60 per cent in two or more limbs; or
(c) permanent deafness with hearing impairment of 71 decibels and above; or
(d) permanent and total loss of voice ;
(ii)mental retardation shall be regarded as a mental retardation if intelligence quotient is less than 50 on a test with a mean of 100 and a standard deviation of 15 such as the Wcchsle scale;
(iii) blindness shall be regarded as a permanent physical disability, if it is incurable and falls in any one of the categories specified below, namely:--
Better eye All with corrections Worse eye
(a) 6/60 4/60
or
Field of vision
110 20 3/60 to Nil
(b) 3/60 to 1/60
or
Field of vision
100 F.C. at 1 Foot to Nil
(c) F.C. at 1 foot to Nil
or
Field of vision
100 F.C. at 1 foot to Nil
or
Field of vision
100
(d) Total absence of sight Total absence of sight;
(1) For the purposes of section 8ODDB, the following shall be the eligible diseases or ailments: -
(i) Neurological Diseases where the disability level has been certified to be of 40% and above
(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinsons Disease
(2) The certificate in respect of the diseases or ailments specified in sub-rule (1) shall be issued by the following specialists working in a Government hospital
(3) The certificate from the prescribed authority to be furnished along with the return of income shall be in Form 10-I.]
____________________________
1. Substituted by Income-tax (Twenty-Fifth Amendment) Rules, 2003 w.e.f. 01.04.2003
[11DD. Specified diseases and ailments for the purpose of deduction under section 80DDB.
(1) For the purposes of section 80DDB, the specified diseases and ailments shall be as under :--
(i) Neurological diseases
(a) Dementia
(b) Dystonia Musculorum Deformans
(c) Motor Neuron Disease
(d) Ataxia
(e) Chorea
(f) Hemiballismus
(g) Aphasia
(h) Parkinsons Disease
Explanation.-- For the purposes of this rule the abovementioned diseases shall be treated as chronic and protracted, if the disability has been certified to be 40% and above.
(ii) Cancer
(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) (iv) Chronic Renal failure
(v) Hemophilia (vi) Thalassaemia
(2) For the purposes of section 80DDB, the prescribed authority shall be any doctor registered with the Indian Medical Association with post-graduate qualifications.
(3) The certificate shall be from the prescribed authority in Form No. 10-L]
Omitted by the IT (Thirty-second Amendment) Rules, 1999, w.e.f. 19-11-1999.
_____________________________
1 Prior to its omission, rule 11E, as inserted by the IT (Tenth Amendment) Rules, 1988, w.e.f. 1-4-1989, read as under :
11E. Application for approval fo agreement under section 80-O.
The application to the Chielf Commissioner or the Director General, as the case may be, under the first proviso the section 80-O for approval of any agreement shall be in Form No. 10F.
3[(1)] In specifying a district for notification as an industrially backward district 3[of Category 'A'] under 2[sub-section (5) of section 80-IB], the Central Government shall satisfy itself that,--
(a) the district has a "Total Weighted Index Count" of 250 or less in the "All India Gradation List" appended in Appendix III of these rules; or
(b) the district is a "no industry" district as indicated in the "All India Gradation List" mentioned in clause (a); or
(c) the district is an inaccessible hill area district as indicated in the Eighth Plan Document and has a "Total Weighted Index Count" of 500 or less in the "All India Gradation List" mentioned in clause (a); or
(d) the district has no rail head as on 1-4-1994 and has a "Total Weighted Index Count" of 500 or less in the "All India Gradation List" mentioned in clause (a).
Explanation: A district notified under these rules, shall be based on the districts as they stood in the Census Report of 1991. Where a district notified under these rules, is reorganised, either by split or otherwise, after the Census Report of 1991, all the areas comprised in the district as it existed in the Census Report of 1991 will qualify for the purpose of these rules.
4[(2) In specifying a district for notification as an industrially backward district of category 'B' under 5[sub-section (5) of section 80-IB,] the Central Government shall satisfy itself that,--
(a) the district has a "Total Weighted Index Count" of more than 250 but less than or equal to 500 in the "All India Gradation List" as indicated in the "All India Gradation List" mentioned in clause (a) of sub-rule (1):
Provided that no district shall be notified under this sub-rule if such district has been notified under sub-rule (1).]
___________________________
1 Inserted by the IT (Ninth Amdt.) Rules, 1997, w.r.e.f. 1-10-1994.
2 Substituted for sub-clause of clause (iv) of sub-section (2) of section 80-IA by the IT (Seventeenth Amdt.) Rules, 199, w.e.f. 1-4-2000.
3. Inserted by the IT (Eleventh Amdt.) Rules, 1997, w.r.e.f. 1-10-1994
4 Inserted by the IT (Eleventh Amdt.) Rules, 1997, w.r.e.f. 1-10-1994.
5 Substituted for sub-clause fo clause (iv) of sub-section (2) of section 80-IA by the IT (Seventeenth Amdt.) Rules, 1999, w.e.f. 1-4-2000.
Omitted by the IT (Thirty-second Amendment) Rules, 1999, w.e.f. 19-11-1999.
_____________________________
1 Inserted by the IT (Fourteenth Amendment) Rules, 1992, w.e.f. 2-7-1992.
2 Prior to its omission, rule 11EE,
11EE. From of statement to be furnished under section 115K.
(1) The statement which is required to be submitted by any person under the provisions of section 115K shall be in form NO. 4A and shall be verified in the manner indicated therein.
(2) The form shall be in duplicate and shall also serve as a challan for the payment of tax under the provisions of sub-section (3) of section 115K.
In this sub-part "National Committee" means the National Committee defined in section 35AC.
___________________________
1. Inserted by the IT (First Amdt.) Rules, 1992, w.e.f. 2-1-1992.
(1) The National Committee shall consist of fourteen members appointed by the Central Government from amongst persons of eminence in public life.
(2) The term of office of a member shall be for three years commencing on the date of notification.
1[(3) One of the members of the National Committee shall be appointed as Chairman by the Central Government. In the event of vacancy of the office of Chairman for any reason and until a new Chairman is appointed, no meeting of the National Committee shall be held :
Provided that if for any meeting, the Chairman is absent, the members present for the meeting may elect one amongst themselves to preside over the day's sitting.
(4) The National Committee may appoint one or more sub-committees from among its members for looking into specific areas of activity from time to time. The National Committee may invite any expert to examine any matter of technical nature.
__________________________
1. Substituted by the IT (Fourth Amdt.) Rules, 1993, w.e.f. 5-3-1993. Prior to its substitution, sub-rule (3), as inserted by the IT (First Amdt.) Rules, 1992, w.e.f. 2-1-1992, read as under: (3) One of the members of the National Committee shall be appointed as Chairman by the Central Government. In the event of vacancy of the office of Chairman for any reason and until a new Chairman is appointed, any other member may be elected by the National Committee to fill the vacancy. If, for any meeting, the Chairman is absent, the members present for the meeting may elect one amongst themselves to preside over the days sitting.
(1) The headquarters of the National Committee shall be at New Delhi. Its sittings shall take place at New Delhi or such other place as the Central Government may decide.
(2) Secretariat to the Committee will be provided by the Department of Revenue, Ministry of Finance, Government of India and a Joint Secretary to the Government of India, in the Department of Revenue shall act as Secretary to the Committee.
The functions of the National Committee shall be
(i) to approve associations and institutions for the purpose of carrying out any eligible project or scheme; and
(ii) to recommend to the Central Government projects and schemes of any company including a public sector company, a local authority or an approved association or institution, for being notified as eligible projects or schemes for the purposes of section 35AC.
In according approval to any association or institution, the National Committee shall satisfy itself that,--
(i) the association or institution is--
(a) constituted as a public charitable trust; or
(b) registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to thatAct in force in any part of India; or
(c) registered under section 25 of the Companies Act, 1956 (1 of 1956);
(ii) persons managing the affairs of the association or institution are persons of proven integrity;
(iii) the activities of the association or institution are open to citizens of India without any distinction of religion, race, caste, sex, place of birth or any of them and are not expressed to be for the benefit of any individual or community;
(iv) the association or institution maintains regular accounts of its receipts and expenditure; and
(v) the instrument under which the association or institution is constituted does not or the rules or regulations governing the association or institution do not contain any provision for the transfer or application, at any time, of the whole or any part of the income or assets of the association or institution for any purpose other than a charitable purpose.
In making recommendations to the Central Government with regard to any project or scheme for being notified in the Official Gazette as an eligible project or scheme, the National Committee shall satisfy itself that,--
(i) the project or scheme relates to the provisions of one or more of the following:--
(a) construction and maintenance of drinking water projects in rural areas and in urban slums including installation of pump-sets, digging of wells, tube-wells and laying of pipes for supply of drinking water;
(b) construction of dwelling units for the economically weaker sections;
(c) construction of school buildings primarily for children belonging to the economically weaker sections of the society;
(d) establishment and running of non-conventional and renewable source of energy systems;
(e) construction and maintenance of bridges, public highways and other roads;
(f) any other programme for uplift of the rural poor or the urban slum dwellers, as the National Committee may consider fit for support;
1[(g) promotion of sports;]
2[(h) pollution control;]
3[(i) establishment and running of educational institutions in rural areas, exclusively for women and children upto 12 years of age;
(j) establishment and running of hospitals and medical facilities in rural areas, exclusively for women and children upto 12 years of age;
(k) establishment and running of creches and schools for the children of workers employed in factories or at building sites;
(l) encouraging the production of bacteria induced fertilisers;
(m) any programme that promotes road safety, prevention of accidents and traffic awareness;]
4[(n) construction of hostel accommodation for women or handicapped individuals or individuals who are of the age of sixty-five years or more;]
5[(o) establishment and running of institutions for vocational education and training in rural areas or towns which consist of population of less than five lakhs;]
6[(p) establishment and running of institutions imparting education in the field of engineering and medicine in rural areas or towns which consists of population of less than 5 lakhs]
7[(q) Plantation of softwood on degraded non-forest land;
(r) Any programme of conservation of natural resources or of afforestation;]
8[(s) Relief and rehabilitation of handicapped individuals]
(ii) the benefit of the project or scheme shall flow to the public in general or to individuals belonging to the economically weaker sections of the society;
(iii) the applicant has the necessary expertise, personnel and other facilities for efficient implementation of the project or scheme;
(iv) the applicant shall maintain separate accounts in respect of the eligible project or scheme.
____________________________
1. Inserted by the IT (Seventh Amendment) Rules, 1993, w.e.f. 16-4-1993.
2. Inserted by the IT (Eighth Amendment) Rules, 1994, w.e.f. 12-8-1994.
3. Inserted by the IT (Tenth Amendment) Rules, 1998, w.e.f. 30-7-1998.
4 Inserted by the IT (Seventh Amendment) Rules, 1999, w.e.f. 14-5-1999.
5 Inserted by the IT (Second Amendment) Rules, 2000, w.e.f. 6-4-2000.
6. Inserted by the IT( fourth Amendment) Rules 2001, w.e.f. 4-5-2001.
7. Inserted by the IT( Fifth Amendment) Rules 2002, w.e.f. 1-4-2002.
8. Inserted by the IT (Sixth Amendment) Rules, 2002 w.e.f. 07-05-2002.
(1) An application for approval of an association or institution or for recommendation of a project or scheme by the National Committee for the purposes of section 35AC may be made to the Secretary to the National Committee for Promotion of Social and Economic Welfare, Department of Revenue, Government of India, North Block, New Delhi - 110 001.
(2) The application should be submitted in 2 sets, written either in English or Hindi, and should be accompanied with details about the name, address and status of applicant, the district/ward/circle where assessed/registered, permanent account number, audited balance sheet and profit and loss account or income and expenditure account for the latest year for which these are available and two preceding years.
(3) The application for approval of an association or institution should contain the following particulars and be accompanied with relevant documents :--
(i) Name and address of the association or institution;
(ii) How constituted (whether as a trust, society, etc.) supported by relevant documents like trust deed, rules and regulations, memorandum of association, etc., and registration certificate, if any;
(iii) Names and addresses of the persons managing the affairs of the association or institution, including those who had, at any time, during the three years preceding the date of application, managed the affairs of the association or institution;
(iv) If the association or the institution is notified by the Central Government for the purposes of sub-clause (iv) or (v) of clause (23C) of section 10 of the Income-tax Act, 1961 (43 of 1961), or is approved for the purposes of section 80G, the particulars of the approval granted;
1[(v) Brief particulars of the activities of the association or institution during three years preceding the date of application :
Provided that when an association or institution has been in existence for a period of less than 3 years, in that case, that association or institution may furnish particulars of its activities for the period of its existence;
(vi) Such other information as the association or institution may like to place before the National Committee.
(4) The application for recommendation of a project or scheme should contain the following particulars and be accompanied with relevant documents,--
(i) Title of project or scheme;
(ii) Date of commencement;
(iii) Duration and the likely date of completion;
(iv) Estimated cost of the project or scheme duly supported by a copy of the resolution of the Managing Committee of the association, institution or the local authority or, as the case may be, the Board of Directors of the company;
(v) Categories or classes of persons who are likely to be benefited from the project or scheme;
(vi) Affirmation that no benefit from the project or scheme, other than remuneration or honorarium for whole time or part-time work done or for reimbursement of actual expenses related to the project will accrue to the persons managing the affairs of the association or institution or to individuals not belonging to the economically weaker sections of the society;
(vii) Where the project or scheme is to be executed by a company, information about whether the project or scheme is such which the company is required to execute under any law for the time being in force or under agreement with employees or otherwise;
(viii) Such other particulars as the applicant may like to place before the National Committee.
_________________________
1. Substituted by the IT (Fourth Amendment) Rules, 1993, w.e.f. 5-3-1993. Prior to its substitution, clause (v), as inserted by the IT (First Amendment) Rules, 1992, w.e.f. 2-1-1992, read as under:
(v) Brief Particulars of the activities of the association or institution during three years proceding the date of application;
(1) All applications under rule 11L should be circulated by the Secretary to the National Committee to all the members of the Committee and will be considered by the National Committee at its sitting held at least seven days after the date on which the application is circulated. In exceptional cases, the Chairman may curtail the period of notice and may also direct consideration of the application by circulation only.
(2) The National Committee may call for such other information from the applicant as it deems necessary for taking a decision on the application and may also direct its Secretary to make or cause to be made enquiries on any matter relating to the application.
(3) The quorum for taking a decision on an application shall be at least five members, including Chairman. If a meeting is adjourned without taking a decision for lack of quorum, the 1[decision to adjourn the meeting] may be taken by the members present, even without the requisite quorum. 2[This decision would be conveyed to the absentee members along with notice about the date, time and place for re-holding the adjourned meeting.]
(4) Approval of an association or institution shall be for such period as the National Committee may decide, generally not exceeding a period of three years at a time. Subsequent approvals, if required, for a further period, can be granted only if the National Committee is satisfied about the activities of the association or institution during the preceding period of approval.
(5) The National Committee shall recommend ordinarily to the Central Government a project or scheme for being notified as an eligible project or scheme for an initial period up to three financial years. If the project or scheme is likely to extend beyond three financial years, the National Committee shall make further recommendations for a period of three years at a time after being satisfied that the project or, as the case may be, scheme is being executed properly. For this purpose, the National Committee may monitor the execution of project or scheme and call for such information as it deems necessary. Other provisions.
(1) The report to be furnished by the approved association or institution under clause (ii) of sub-section (4) of section 35AC shall be in Form No. 58C.
(2) The report referred to in sub-rule (1) shall be furnished to the National Committee before the expiry of three months from the end of the financial year.
(3) The National Committee, after receipt of the report referred to in sub-rule (2) may, at any time, undertake to inspect or verify the information furnished by the association or institution.]
(1) The report to be furnished by a public sector company or local authority or an association or institution in respect of the eligible project or scheme, under clause (ii) of sub-section (5) of section 35AC shall be in Form No. 58D.
(2) The report referred to in sub-rule (1) shall be furnished to the National Committee before the expiry of three months from the end of the financial year.
(3) The National Committee, after receipt of the report referred to in sub-rule (2) may, at any time, undertake to inspect or verify the information furnished by the public sector company or local authority or association or institution.]
_____________________________
1. Substituted for decision at the adjourned meeting by the IT (Second Amendment) Rules, 1995, w.e.f. 17-2-1995.
2. Inserted, by the IT (Second Amendment) Rules, 1995, w.e.f. 17-2-1995
3. Inserte by IT (15th Amendment) Rules, 2005.
(1) The members of the National Committee shall not be entitled to any remuneration.
1[(2) The members and Chairman of the National Committee shall be entitled to--
(i) Sitting fee of Rs. 2[3000] per day for attending a meeting of the National Committee or any Subordinate Committee set up by the Chairman of the National Committee. However, sitting fee would not be payable where applications are considered by circulation or when a member is on tour.
(ii) Reimbursement of actual expenditure incurred by way of travel by rail, road or air, for attending any meeting of the National Committee or its Subordinate Committee. The entitlement of air travel would be restricted to the amount charged by Indian Airlines for its economy class for the members and to the amount charged for the executive class of the Indian Airlines for the Chairman. Members including Chairman may travel by any class on train. Members and Chairman would also be entitled to the reimbursement of 3[air conditioned taxi] fare for reaching the venue of the meeting from their place of stay and for going back to the place of stay after the meeting.
4[***]
(iv) 5[The out-station Chairman or Member may stay and claim reimbursement of rent in any State guest house or for single room in medium range ITDC hotel like Lodi Hotel, Qutab Hotel, Janpath Hotel, Ashoka Yatri Niwas or State Government run tourist hotels/hostels or residential accommodation provided by registered societies like India international Centre or India Habitat Centre. They would separately be entitled for reimbursement of food allowance at the rate of Rs. 500/- per day.]
(v) Members and Chairman would have the same entitlement for travel, boarding and lodging in respect of tours undertaken in pursuance of a decision taken by the National Committee. However, sitting fee would not be admissible while on tour.
(vi) Sitting fee would not be admissible in case the National Committee takes decisions by circulation of the application alone. Actual postal charges and other expenses incurred by Members and Chairman for circulating the application would be reimbursed.
(vii) Reimbursement of any other expenditure with the approval of Secretary (Revenue) and the Financial Advisor, Department of Revenue, Ministry of Finance.
(3) In granting approval to any project or scheme undertaken by a company, the National Committee shall satisfy itself that, where any expenditure is to be incurred in the acquisition or erection of a capital asset, the applicant-company has made adequate arrangements for divesting itself of the ownership of such asset without consideration in cash or otherwise immediately on completion of the eligible project, in the following manner :--
(i) in the case of drinking water projects, to individuals belonging to the economically weaker sections or to the local authority or the village panchayat, as the case may be;
(ii) in the case of dwelling units, to individuals belonging to the economically weaker sections, or to the local authority, village panchayat or an authority constituted under any law for the purpose of satisfying the need for housing accommodation or for the purpose of development or improvement of cities, towns and villages, as the National Committee may decide;
(iii) in the case of school buildings, to an educational institution existing solely for educational purposes and not for profit or to the State Government, local authority or a village panchayat;
(iv) in the case of non-conventional or renewable energy systems, to the district administration, local authority, village panchayat or to individuals belonging to the economically weaker sections, or such other statutory body as the National Committee may decide;
(v) in the case of bridges, public highways or other roads to the Central or the State Government, local authority or such other statutory body as the National Committee may decide;
(vi) in the case of equipment purchased for the purpose of eligible project or scheme, to the State Government, local authority or such other statutory body as the National Committee may decide having regard to the capacity of the authority concerned to gainfully utilise such equipments;
Note : Where before the completion of any eligible project/scheme, the company undertakes other eligible projcct(s)/schenie(s) and transfers the equipments to such subsequent project/scheme, the company will be required to divest itself of the ownership of the equipment only after the completion of the last eligible project/ scheme,
(vii) in any other ease, to such authority as the National Committee may decide.
(4) Immediately on completion of an eligible project/scheme, the company shall furnish details of the execution thereof to the National Committee. The National Committee shall satisfy itself that the project/scheme has been completed in accordance with the approval granted and that the company has divested itself of the assets in the manner prescribed by the National Committee. If the National Committee is not so satisfied, it may, after giving an opportunity of being heard on the proposed action, order withdrawal of the approval which shall then be deemed never to have been granted.
__________________________________
1 Substituted, by the IT (Second Amendment) Rules, 1995, w.e.f. 17-2-1995, for the following :-
(2) The members may be paid sitting fee up to Rs. 250 for each meeting of the National Committee attended by a member. In addition, they shall be entitled to reimbursement of actual cost of travel by air, rail or road as well as actual cost of boarding and local transport subject to the limits provided by the Central Government in respect of such expenditure by members of High Level Committee.
2. Substituted by the Income-tax (Twelfth Amendment) Rules, 2009 vide Notification No. 65/2009 dated 02.09.2009 for the figure:- "3000"
3. Substituted by the Income-tax (Twelfth Amendment) Rules, 2009 vide Notification No. 65/2009 dated 02.09.2009 for the word:- "taxi"
4. Omitted by the Income-tax (Twelfth Amendment) Rules, 2009 vide Notification No. 65/2009 dated 02.09.2009 for the following : -
"(iii) Daily allowance for out-station members would be admissible in accordance with the following Table :
A B C
City or Locality Stay in hotel and/or other Establishment providing boarding and/or lodging at at scheduledtariff Does not stay in hotel or makes own arrangement
(Rs.) (Rs.)
I. A Class Cities/Specially Expensive Localities
(i) Cities 265 106
(1) Ahmedabad U.A.
(2) Bangalore U.A.
(3) Calcutta U.A.
(4) Delhi U.A.
(5) Greater Bombay U.A.
(6) Haderabad U.A.
(7) Kanpur U.A.
(8) Madras U.A.
(9) Pune U.A.
(ii) Localities
(1) Darjeeling District (except Siliguri Sub-division)
(2) Darjeeling Town
(3) NEFA areas beyond Inner Line
(4) Naga Hills Tuensang area beyhond the Inner Line
(5) The following expensive/remote localities of Himachal Pradesh:--
1. Lahaul and Spite District;
2. Kinnaur District;
3. Barmour sub-division and Pangi Sub-division of Chamba District;
4. Paragana of Pandrahbis; Outer Seraj and Malana Panchayat area of Kulu District;
5. Chhuhar Valley of Jogindernagar Tehsil of Mandi District;
6. Mangal Panchayat area of Solan District;
7. Dodrakwar area of Rohru Tehsil; Paraganas of Chhebis, Naubis, Barabis, Pandrahbis and Atharahbis; Sarahan and Gram Panchayats of Munish, Darkali and Kashpet of Rampur Tehsil of Simla District; and
8.Chhota Bhangal and Bara Bhangal Areas of Palampur Sub-division of Kangra District;
(6) The following hill areas in Manipur which do not Fall on the National Highway :--
1. Ukhrul
2. Churachandpur
3. Tamenlong
4. Jiribam
5. Mao Maram
6. Tengnampal
II. B-1 Class Cities/Expensive Localities
(i) Cities 225 85
(1) Coimbatore U.A.
(2) Indore City U.A.
(3) Jaipur U.A.
(4) Lucknow U.A.
(5) Madurai U.A.
(6) Nagpur U.A.
(7) Patna U.A.
(8) Surat U.A.
(ii) Expensive Localities
(1) The Following areas of Himachal Pradesh
1. Simla;
2. Janjehli Block of Chachoit Tehsil of Mandi District;
3. Chopal Tehsil of Simla District;
4. Trans-Giri Tract of Sirmur District;
5. Churach Tehsil, Salooni Tehsil, Kunr Panchayat and Belej Paragana of Chamba Tehsil of Chamba District;
6. Manali-Ujhi area, Parvati and Lagg Valley and Banjar Block of Kulu District;
(2) The whole of Jammu and Kashmir;
(3) Andaman and Nicobar Islands;
(4) The entire territory of the Laccadive, Minicoy and Amindivi Islands
(iii) Other cases 205 78"
5. Substituted by the Income-tax (Twelfth Amendment) Rules, 2009 vide Notification No. 65/2009 dated 02.09.2009 for the following:-
"At the option of the Chairman or Member, in lieu of daily allowance mentioned in item (iii) above, the out-station Chairman or Member may opt to stay and claim reimbursement of rent in any State guest house or for single room in medium range ITDC hotel like Lodi Hotel, Qutab Hotel, Janpath Hotel, Ashoka Yatri Niwas or State Government run tourist hotels/hostels or residential accommodation provided by registered societies like India International Centre or India Habitat Centre. In this situation the daily allowance would be restricted to Rs. 72, Rs. 57 or Rs. 53 for the 'A' Class, 'B-1' Class and other cities or localities respectively mentioned in item (iii) above."
(1) The certificate referred to in clause (a) of sub-section (2) of section 35AC shall be in Form No. 58A.
(2) The certificate referred to in clause (b) of sub-section (2) of section 35AC shall be in Form No.56B.
(3) Every public sector company or a local authority or an association or institution, as the case may be, who issues a certificate referred to in sub-rule (1) or sub-rule (2) shall, in respect of the 31st March in each financial year, deliver or cause to be delivered to the Secretary, National Committee, an annual report indicating the progress of work relating to the project/scheme during the year as well as the following information (please specify the information in respect of each contributor separately):--
(i) Names of the contributors and their addresses.
(ii) Permanent Account Number/G.I.R. Number of the contributors, (iii) Amount(s) of contribution. (iv) Theproject/scheme for which contribution was made.
(v) Total amount of contribution received during the previous year.
(vi) Total cost of the project approved by the National Committee (with date of Committee's approval).
(4) Every public sector company or a local authority or an association or institution, as the case may be, who issues a certificate referred to in sub-rule (1) or sub-rule (2) shall send an annual statement of donation received and the details of the project to the National Committee and to each contributor by 30th June, following the financial year in which the amounts are received.]
__________________________
1. Inserted by the IT (Second Amendment) Rules, 1993, w.e.f. 24-2-1993.
An application under sub-section (1) of section 115VP for exercising an option for the tonnage tax scheme or under sub-section (1) of section 115VR for renewing the option for the tonnage tax scheme, as the case may be, shall be made in Form No. 65 and shall be verified in the manner provided therein.]
_________________________
1. Inserted by Notification No SO1067(E) dated 29.09.2004.
(1) For the purpose of the Explanation to sub-section (4) of section 115VG, deemed tonnage in respect of an arrangement of purchase of slots and slot charter shall be computed (illustrative formula given in Note 3 appearing after the corresponding form No. 66) on the following basis:
2.5 TEU = 1 Net Tonnage (1 NT) where TEU is Twenty foot Equivalent Unit (Container of this size)
(2) Computation of deemed tonnage (illustrative formula given in Note 4 appearing after the corresponding form No. 66) in respect of an arrangement of sharing of break-bulk vessel shall be made on the following basis:
(i) in case where cargo is restricted by volume : 19 cubic meter (cbm) = 1 net tonnage (1 NT) and
(ii) in case where Cargo is restricted by weight 14 metric tons = 1 net tonnage (1 NT)]
___________________________
1. Inserted by the IT ((Eighth Amendment) Rules, 2005 w.e.f. 01.04.2005.
The incidental activities (details given in Note 5 appearing after the corresponding form No. 66) referred to in sub-section (5) of section 115V-I shall be the following, namely:-
(i) maritime consultancy charges;
(ii) income from loading or unloading of cargo;
(iii) ship management fees or remuneration received for managed vessels; and
(iv) maritime education or recruitment fees.]
_____________________________
1. Inserted by the IT ((Eighth Amendment) Rules, 2005 w.e.f. 01.04.2005.
The limit for charter-in of tonnage of the qualifying ships referred to in section 115 VV (to be worked out according to the illustration explained in Note 6 appearing after the corresponding form No. 66) during any previous year shall be computed by dividing the total number of chartered-in ton days by the total number of ton days operated by the company.]
___________________________
1. Inserted by the IT ((Eighth Amendment) Rules, 2005 w.e.f. 01.04.2005.
The report of audit of accounts of a qualified company which is required to be furnished under clause (ii) of section 115VW shall be in Form No.66.';]
__________________________
1. Inserted by the IT ((Eighth Amendment) Rules, 2005 w.e.f. 01.04.2005.
For the proposes of this rule and rule 11UA,
(a) "accountant" shall have the same meaning as assigned in the Explanation to section 288 of the Act;
(b) "balance-sheet", in relation to any company, means the balance-sheet of such company (including the notes annexed thereto and forming part of the accounts) as drawn up on the valuation date;
(c) "merchant banker" means category I merchant banker registered with Security and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(d) "quoted shares or securities" in relation to share or securities means a share or security quoted on any recognized stock exchange with regularity from time to time, where the quotations of such shares or securities are based on current transaction made in the ordinary course of business;
(e) "recognized stock exchange" shall have the same meaning as assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(f) "registered dealer" means a dealer who is registered under Central Sale-tax Act, 1956 or General Sales-tax Law for the time being in force in any State including value added tax laws;
(g) "registered valuer" shall have the same meaning as assigned to it in section 34AB of the Wealth Tax Act, 1957(27 of 1957) read with rule 8A of wealth-tax Rules, 1957;
(h) "securities" shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(i) "unquoted shares and securities", in relation to shares or securities, means shares and securities which is not a quoted shares or securities;
(j) "valuation date" means the date on which the respective property is received by the assessee.
For the purposes of section 56 of the Act, the fair market value of a property, other than immovable property, shall be determined in the following manner, namely,
(a) valuation of Jewellery.-
(i) the fair market value of jewellery shall be estimated to be the price which such jewellery would fetch if sold in the open market on the valuation date;
(ii) in case the jewellery is received by the way of purchase on the valuation date, from a registered dealer, the invoice value of the jewellery shall be the fair market value;
(iii) In case the jewellery is received by any other mode and the value of the jewellery exceeds rupees fifty thousand, then assessee may obtain the report of registered valuer in respect of the price it would fetch if sold in the open market on the valuation date;
(b) valuation of archeological collections, drawings, paintings, sculptures or any work of art.
(i) the fair market value of archeological collections, drawings, paintings, sculptures or any work of art (hereinafter referred as artistic work) shall be estimated to be price which it would fetch if sold in the open market on the valuation date;
(ii) in case the artistic work is received by the way of purchase on the valuation date, from a registered dealer, the invoice value of the artistic work shall be the fair market value;
(iii) in case the artistic work is received by any other mode and the value of the artistic work exceeds rupees fifty thousand, then assessee may obtain the report of registered valuer in respect of the price it would fetch if sold in the open market on the valuation date;
(c) valuation of shares and securities.-
(a) the fair market value of quoted shares and securities shall be determined in the following manner, namely;
(i) if the quoted shares and securities are received by way of transaction carried out through any recognized stock exchange, the fair market value of such shares and securities shall be the transaction value as recorded in such stock exchange;
(ii) if such quoted shares and securities are received by way of transaction carried out other than through any recognized stock exchange, the fair market value of such shares and securities shall be,
(a) the lowest price of such shares and securities quoted on any recognized stock exchange on the valuation date, and
(b) the lowest price of such shares and securities on any recognized stock exchange on a date immediately preceding the valuation date when such shares and securities were traded on such stock exchange, in cases where on the valuation date there is no trading in such shares and securities on any recognized stock exchange;
(b) the fair market value of unquoted equity shares shall be the value, on the valuation date, of such unquoted equity shares as determined in the following manner namely;
The fair market value of unquoted equity shares = (A-L) / (PE) * (PV)
Where, A= Book value of the assets in Balance Sheet as reduced by any amount paid as advance tax under the Income-tax Act and any amount shown in the balance sheet including the debit balance of the profit and loss account or the profit and loss appropriation account which does not represent the value of any asset.
L= Book value of liabilities shown in the Balance Sheet but not including the following amounts:-
(i) the paid-up capital in respect of equity shares;
(ii) the amount set apart for payment of dividends on preference shares and equity shares where such dividends have not been declared before the date of transfer at a general body meeting of the company;
(iii) reserves, by whatever name called, other than those set apart towards depreciation;
(iv) credit balance of the profit and loss account;
(v) any amount representing provision for taxation, other than amount paid as advance tax under the Income-tax Act, to the extent of the excess over the tax payable with reference to the book profits in accordance with the law applicable thereto;
(vi) any amount representing provisions made for meeting liabilities, other than ascertained liabilities;
(vii) any amount representing contingent liabilities other than arrears of dividends payable in respect of cumulative preference shares.
PE = Total amount of paid up equity share capital as shown in Balance Sheet.
PV = the paid up value of such equity shares.
(c) the fair market value of unquoted shares and securities other than equity shares in a company which are not listed in any recognized stock exchange shall be estimated to be price it would fetch if sold in the open market on the valuation date and the assessee may obtain a report from a merchant banker or an accountant in respect of such valuation.]
Toc
_______________________________
1. Inserted by the Income-tax (Second Amendment) Rules, 2010 w.e.f. 01.010.2009.
(1) The return of income required to be furnished under sub-section (1) or sub-section (3) or sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) of section 139 or clause (i) of sub-section (1) of section 142 or sub-section (1) of section 148 or section 153A 29[***] relating to the assessment year commencing 22[on the 1st day of April, 30[2011]] shall, -
27[(a) in the case of a person being an individual where the total income includes income chargeable to income tax, under the head,-
(i) "Salaries" or income in the nature of family pension as defined in the Explanation to clause (iia) of section 57; or
(ii) "Income from house property", where assessee does not own more than one house property and does not have any brought forward loss under the head; or
(iii) "Income from other sources", except winnings from lottery or income from race horses, be in Form 31[SAHAJ] (ITR-I) and be verified in the manner indicated therein;]
(b) in the case of a person being an individual [not being an individual to whom clause (a) applies] or a Hindu Undivided family where the total income does not include any income chargeable to income-tax under the head Profits or gains of business or profession, be in Form No. ITR-2 and be verified in the manner indicated therein;
(c) in the case of a person being an individual or a Hindu Undivided family who is a partner in a firm and where income chargeable to income-tax under the head Profits or gains of business or profession does not include any income except the income by way of any interest, salary, bonus, commission or remuneration, by whatever name called, due to, or received by him from such firm, be in Form No. ITR-3 and be verified in the manner indicated therein;
32[(ca) in the case of a person being an individual or a Hindu undivided family deriving business income and such income is computed in accordance with special provisions, referred to in section 44AD and section 44AE of the Act for computation of business income be in Form SUGAM (ITR-4S) and be verified in the manner indicated therein.]
(d) in the case of a person being an individual or a Hindu Undivided family other than the individual or Hindu Undivided family referred to in clause (a) or clause (b) or clause (c) 32[or clause (ca)] and deriving income from a proprietary business or profession, be in Form No. ITR-4 and be verified in the manner indicated therein;
(e) in the case of a person not being an individual or a Hindu Undivided family or a company or a person to which clause (g) applies, be in Form No. ITR-5 and be verified in the manner indicated therein;
(f) in the case of a company not being a company to which clause (g) applies, be in Form No. ITR-6 and be verified in the manner indicated therein;
(g) In the case of a person including a company whether or not registered under section 25 of the Companies Act, 1956 (1 of 1956), required to file a return under sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) of section 139, be in Form No. ITR-7 and be verified in the manner indicated therein;
33[***]
34[(2) The return of income required to be furnished in Form SAHAJ (ITR-1) or Form No. ITR-2 or Form No. ITR-3 or Form SUGAM (ITR-4S) or Form No. ITR-4 or Form No. ITR-5 or Form No. ITR-6 shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deducted or collected at source or the advance tax or tax on self-assessment, if any, claimed to have been paid or any document or copy of any account or form or report of audit required to be attached with the return of income under any of the provisions of the Act.]
(3) The return of income 35[***] referred to in sub-rule (1) may be furnished in any of the following manners, namely:-
(i) furnishing the return in a paper form;
(ii) furnishing the return electronically under digital signature;
(iii) transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V;
(iv) furnishing a bar-coded return in a paper form:
Provided that -
37[(a) a firm required to furnish the return in Form ITR-5 or an individual or Hindu Undivided Family (HUF) required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable, shall furnish the return for assessment year 2011-12 and subsequent assessment years in the manner specified in clause (ii);]
(ab) a company required to furnish the return in Form ITR-6 shall furnish the return for Assessment Year 2010-11 and subsequent Assessment Years in the manner specified in clause (ii)]
(b) a person required to furnish the return in Form ITR-7 shall furnish the return in the manner specified in clause (i).
(4) The Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing the returns in the manners specified in clauses (ii), (iii) and (iv) of sub-rule (3).
(5) Where a return of income 35[***] relates to the assessment year commencing 23[on the 1st day of April, 36[2010]] or any earlier assessment year, it shall be furnished in the appropriate form as applicable in that assessment year.]
__________________________________
1 Inserted by the IT (Eighth Amendment) Rules, 1997, w.e.f. 27-6-1997.
2 Inserted by the IT (Eighth Amendment) Rules, 1991, w.e.f. 1-4-1989.
3 Omitted by IT (Tenth Amendment) Rules 2001, w.e.f. 2-07-2001. Prior to its omission sub clause (ii) read as under :
(ii) where, in the case of an individual or a Hindu undivided family, resident in India, the total income
(A) does not exceed two lakh rupees;
(B) does not include income chargeable to income-tax under the head "Profits and gains of business or profession"; and
(C) does not include any brought forward or carried forward loss or allowance except under the head "Income from house properly", be in Form No. 2A and be verified in the manner indicated therein :
Provided that the assesses to whom this sub-clause applies shall also have the option of filing the return in Form No. 3;
6. Inserted by the IT (Thirteenth Amendment) Rules, 2002, w.e.f. 24-06-2002.
7. Inserted by the It (Eighth Amendment) Rules, 1997, w.e.f. 27-6-1997,
8. Inserted by the IT (Sixteenth Amendment) Rules, 1995, w.e.f. 23-8-1995.
9. Substituted by IT (Tenth Amendment) Rule 2001 w.e.f. 02-07-2001. Prior to its substitution sub clause (iii) read as under :
(iii) where the total income does not include any income chargeable to income-tax under the head "Profits and gains of business or profession " and the case does not fall under sub-clause (ii) be in Form No. 3 and be verified in the manner indicated therein ,
Provided that the assessee to whom clause (b) applies shall also have the option of filing the return in Form No. 2D : SARAL;
10. Inserted by IT (2nd Amendment) Rules, 2003 w.e.f 28.01.2003
11. Inserted by the IT (Sixth Amendment) Rules 2003, w.e.f. 14.05.2003
12. Inserted by IT (Fifth Amendment) Rules, 2004, w.e.f. 01.04.2004.
13. Substituted by Income-tax (Fifth Amendment) Rules, 2006 for the words " return in Form No.2E NAYA SARAL"
14. Inserted by Income-tax (Fifth Amendment) Rules, 2006.
15Substituted for the following words "Return of income" by the Income-tax ( seventh Amendment ) Rules, 2006, w.e.f. 24.07.2006.
16Substituted for the following by the Income-tax (seventh Amendment ) Rules, 2006, w.e.f. 24.07.2006.
"The return of income required to be furnished under sub-section (1), 1[or proviso to sub-section (1), or sub-section (2), or sub-section (3), or sub-section (4A), or sub-section (4B) 10[or sub-section (4C)] of section 139 2[or clause (i) of sub-section (1) of section 142] shall,--"
17Inserted by Income-tax (seventh Amendment ) Rules, 2006, w.e.f. 24.07.2006.
18 Substituted for the following words "sub-section (4C) of section 139" by the Income-tax (11th Amendment ) Rules, 2006, dated 19.10.2006.
19. Substituted by the Income-tax (4th Amendment ) Rules, 2007, dated 14.05.2007 w.e.f. 14.05.2007. Prior to substitution it read as:
"12. 15[Return of income and return of fringe benefits] (1) 16[The return of income required to be furnished under sub-section (1), or proviso to sub-section (1), or sub-section (2), or sub-section (3), or sub-section (4A), or sub-section (4B) or 18[sub-section (4C) of section 139 or sub-section (4D) of section 139] or clause (i) of sub-section (1) of section 142 or the return of fringe benefits required to be furnished under sub-section (1) or sub-section (2) of section 115WD or under sub-section (3) of section 115WH shall,-]
(a) in the case of a company not being a company to which clause (c) applies, be in Form No.1 and be verified in the manner indicated therein;
(b) in the case of a person not being a company to which clause (a) applies, and not being a person to whom clause (c) applies--
(i) where the total income includes any income chargeable to income-tax under the head "Profits and gains of business or profession", be in Form No.2 and be verified in the manner indicated therein;
3[(ii) (Omitted)]
9["(iii) where the total income does not include any income chargeable to income-tax under the head "Profits and gains of business or profession" be in Form No.3 and be verified in the manner indicated therein;"]
6[Provided that the assessee to whom clause (b) applies shall also have the option of filing the return in Form No.2D : SARAL;]
11[Provided further that in the case of an individual or a Hindu undivided family, resident in India, where the total income does not include income chargeable to income-tax under the head "Profits and gains of business or profession" or "Capital gains" or agricultural income, the assessee shall also have the option of filing the 13[return in Form No. 2E : Naya Saral on or before 31st day of July, 2006];]
14[Provided also that in the case of an assessee being an individual or a Hindu undivided family, resident in India, where
(a) the total income does not include income chargeable to income-tax under the head Profits and gains of business or profession or Capital gains or agricultural income;
(b) no relief under section 89 in respect of arrears or advance of salary is claimed; and
(c) he does not own more than one house property,
the assessee shall also have the option of filing the return in Form No. 2F and the return in this Form shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deducted at source or the advance tax or tax on self-assessment, if any, claimed to have been paid:]
12[Provided also that in the case of an individual, resident in India, where-
a) his total income includes income chargeable to income-tax under the head 'Salaries';
b) the income from salaries before allowing deductions under section 16 of the Income-tax Act, 1961 does not exceed rupees one lakh fifty thousand;
c) his total income does not include income chargeable to income-tax under the head 'Profits and gains of business or profession' or 'Capital gains' or agricultural income; and
d) he is not in receipt of any other income from which tax has been deducted at source by any person other than the employer; the assessee shall also have the option of filing return in Form No.16AA.]
(c) in the case of a person including a company whether or not registered under section 25 of the Companies Act, 1956 (1 of 1956), in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes, or in part only for such purposes, who claims exemption under section 11, be in Form No. 3A and be verified in the manner indicated therein;
7[(d) in the case of a person required lo file a return under proviso to sub-section (1) of section 139, be in Form No.2C and verified in the manner prescribed therein.]
10[(e) in the case of a person required to file a return under 18[sub-section (4C) of section 139 or sub-section (4D) of section 139], be in Form No. 3A and be verified in the manner indicated therein.]
17[(f) in the case of a person who -
(i) is required to furnish the return of income and also the return of fringe benefits but has filed the return of income in Form No. 1 or Form No. 2 or Form No. 2D or Form No. 3A for the assessment year 2006-07 before the publication of these rules or opts to furnish the return of income in Form No. 2D; or
(ii) is not required to furnish the return of income but is required to furnish the return of fringe benefits,
the return of fringe benefits shall be in Form No. 3B and be verified in the manner indicated therein.]
8[(1A) The return setting forth the total income including the undisclosed income for the block period required to be furnished under clause (a) of section 158BC shall be in Form No. 2B and be verified in the manner indicated therein.]
(2) Notwithstanding anything contained in sub-rule (1),--
(a) where a return of income relates to the assessment year commencing on the 1st day of April, 1961, or any earlier assessment year, it shall be furnished in the appropriate form prescribed in rule 19 of the Indian Income-tax Rules, 1922, and shall be verified in the manner indicated therein;
(b) where a return of income relates to the assessment year commencing on the 1st day of April, 1962, or the 1st day of April, 1963, or the 1st day of April, 1964, it shall be furnished in the appropriate form in force immediately before the 1 st day of April, 1967, and shall be verified in the manner indicated therein.
17[(3) The return of income or the return of fringe benefits to be furnished in Form No.1 or Form No.2 or Form No.3 or Form No. 3B shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deducted at source or the advance tax or tax on self-assessment, if any, claimed to have been paid or any document or copy of any account or Form or report of audit required to be attached with the return of income or the return of fringe benefits under any of the provisions of the Income-tax Act, 1961.]".
20. Substituted by the Income-tax (Sixth Amendment) Rules, 2008 vide Notification No : SO752(E) dated 28.03.2008 for the words, figures and letters on the 1st day of April, 2007 or any subsequent assessment year
21. Substituted by the Income-tax (Sixth Amendment) Rules, 2008 vide Notification No : SO752(E) dated 28.03.2008 for the words, figures and letters on the 1st day of April, 2006.
22. Substituted by the Income-tax (9th Amendment) Rules, 2009 vide Notification No. 32/2009 dated 27.03.2009 for the following : -
"20[on the 1st day of April, 2008]"
23. Substituted by the Income-tax (9th Amendment) Rules, 2009 vide Notification No. 32/2009 dated 27.03.2009 for the following : -
"21[on the 1st day of April, 2007]"
24. Substituted by the Income-tax (Fourth Amendment) Rules, 2010 vide Notification No. 29/2010 dated 23.04.2010 w.e.f. 23.04.2010 for the following : - "2009"
25. Substituted by the Income-tax (Fourth Amendment) Rules, 2010 vide Notification No. 29/2010 dated 23.04.2010 w.e.f. 23.04.2010 for the following : - "2008"
26. Substituted by the Income-tax (Fourth Amendment) Rules, 2010 vide Notification No. 33/2010 dated 11.05.2010 w.e.f. 01.04.2010 for the following : "Form No. ITR-1"
27. Substituted by the Income-tax (Fourth Amendment) Rules, 2010 vide Notification No. 33/2010 Dated 11.05.2010 w.e.f. 01.04.2010 for the following :-
"(a) in the case of a person being an individual where the total income includes income chargeable to income-tax under the head salaries or income in the nature of family pension as defined in the Explanation to clause (iia) of section 57 but does not include any other income except income by way of interest chargeable to income-tax under the head income from other sources, be in 26[Form SAHAJ (ITR1)] and be verified in the manner indicated therein;"
28. Substituted by the Income-tax (Seventh Amendment) Rules, 2010 vide Notification No. 49/2010 dated 09.07.2010 for the following :-
"(a) a firm required to furnish the return in Form ITR-5 and to whom provisions of section 44AB are applicable or a company required to furnish the return in Form ITR-6 shall furnish the return in the manner specified in clause (ii) or clause (iii);"
29. Omitted by the Income-tax (3rd Amendment) Rules, 2011 vide Notification No. 18/2011 dated 05.04.2011 w.e.f. 01.04.2011 for the following : -
"or the return of fringe benefits required to be furnished under sub-section (1) or sub-section (2) of section 115WD"
30. Substituted by the Income-tax (3rd Amendment) Rules, 2011 vide Notification No. 18/2011 dated 05.04.2011 w.e.f. 01.04.2011 for the following : - "24[2010]"
31. Substituted by the Income-tax (3rd Amendment) Rules, 2011 vide Notification No. 18/2011 dated 05.04.2011 w.e.f. 01.04.2011 for the following : - "SARAL-II"
32. Inserted by the Income-tax (3rd Amendment) Rules, 2011 vide Notification No. 18/2011 dated 05.04.2011 w.e.f. 01.04.2011.
33. Omitted by the Income-tax (3rd Amendment) Rules, 2011 vide Notification No. 18/2011 dated 05.04.2011 w.e.f. 01.04.2011 for the following :-
"(h) in the case of a person who is not required to furnish the return of income but is required to furnish the return of fringe benefits, be in Form No. ITR-8 and be verified in the manner indicated therein."
34. Substituted by the Income-tax (3rd Amendment) Rules, 2011 vide Notification No. 18/2011 dated 05.04.2011 w.e.f. 01.04.2011 for the following : -
"(2) The return of income and return of fringe benefits required to be furnished in Form No.ITR-1 or Form No ITR-.2 or Form No. ITR-3 or Form No.ITR-4 or Form No.ITR-5 or Form No.ITR-6 or Form No.ITR-8 shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deducted or collected at source or the advance tax or tax on self-assessment, if any, claimed to have been paid or any document or copy of any account or Form or report of audit required to be attached with the return of income or the return of fringe benefits under any of the provisions of the Act."
35. Omitted by the Income-tax (3rd Amendment) Rules, 2011 vide Notification No. 18/2011 dated 05.04.2011 w.e.f. 01.04.2011 for the following :- "or return of fringe benefits"
36. Substituted by the Income-tax (3rd Amendment) Rules, 2011 vide Notification No. 18/2011 dated 05.04.2011 w.e.f. 01.04.2011 for the following :- "25[2009]"
37. Substituted by the Income-tax (Sixth Amendment) Rules, 2011 vide Notification No. 37/2011 dated 01.07.2011 for the following : -
"28[(a) a firm required to furnish the return in Form ITR-5 and to whom provisions of section 44AB are applicable shall furnish the return in the manner specified in clause (ii) or clause (iii);
(aa) an individual or HUF required to furnish the return in Form ITR-4 and to whom provisions of section 44AB are applicable shall furnish the return for Assessment Year 2010-11 and subsequent Assessment Years in the manner specified in clause (ii) or clause (iii);"
Every authorised representative of an assessec, being an authorised representative specified in clause (iii) or clause (iv) or clause (v) or clause (vi) or clause (vii) of sub-section (2) of section 288, who has prepared the return of income furnished by the assessee shall, either before making an appearance before the Assessing Officer having jurisdiction to assess that assessee, or immediately after making such appearance, furnish to that officer--
(a) particulars of accounts, statements or other documents supplied to him by the assessee for the preparation of the return of income; and
(b) where the authorised representative has for the purpose of preparation of the return of income carried out any examination of such accounts, statements or documents, a report on the scope and results of such examination.
(1) The statement of income distributed shall be furnished as provided in sub-rules (2) and (3) to.--
(i)the Assessing Officer so designated by the Chief Commissioner or Commissioner of Income-tax, within whose area of jurisdiction, the principle office of the Unit Trust of India or the concerned Mutual Fund is situated;
(ii) in any other case, to the Assessing Officer within whose area of jurisdiction, the principal office of the Unit Trust of India or the concerned Mutual Fund is situated.
(2) The statement of distributed income which is to be furnished under sub-section (3 A) of section 115R by the Unit Trust of India shall be in Form No. 63, duly verified by an accountant in the manner indicated therein.
(3) The statement of distributed income which is to be furnished under sub-section (3A) of section 115R by a Mutual Fund shall be in Form No. 63A, duly verified by an accountant in the manner indicated therein.
_________________________
1. Inserted by the IT (Fourteenth Amendment) Rules, 2000, w.e.f. 29-8-2000
(1) The statement of distributed income shall be furnished by the 30th November of the financial year following the previous year during which such income is distributed, to the Chief Commissioner or Commissioner of Income-tax, within whose jurisdiction, the principal office of the Venture Capital Company or the Venture Capita! Fund, as the case may be, is situated.
(2) The statement of distributed income which is to be furnished under sub-section (2) of section 115U by the Venture Capital Company or the Venture Capital Fund shall be in Form No. 64, duly verified by an accountant in the manner indicated therein.]
_________________________
1. Inserted by the IT (Fifteenth Amendment) Rules, 2000, w.e.f. 29-8-2000.
Omitted by the IT (Fifth Amendment) Rules, 1989, w.e.f. 18-5-1989.)
Omitted by the IT (Fifth Amendment) Rules, 1989, w.e.f. 18-5-1989.)
The information which a person is required by the Assessing Officer to furnish under clause (it) of sub-section (1) of section 142 shall be verified in the following manner, namely :--
"I declare that to the best of my knowledge and belief, the information furnished in the statement/statements is correct and complete and other particulars shown therein are truly stated."
The report of audit of the accounts of an asscssee which is required to be furnished under sub-section (2A) of section 142 shall be in Form No. 6B.
Omitted by the IT (Fifth Amdt.) Rules, 1989, w.e.f. 18-5-1989.
(1) Subject to the provisions of rules 38 and 48A, the notice of demand under section 156 shall be in Form No. 7.
(2) Omitted by the IT (Third Amendment) Rules, 1964.
(1) The declaration referred to in sub-section (1) of section 158A. shall be in Form No. 8 and shall be verified in the manner indicated therein.
(2) The declaration and the verification referred to in sub-rule (1) shall be signed by the person specified in sub-rule (2) of rule 45.
(3) The declaration referred to in sub-rule (1) shall,--
(a) in a case where it is furnished to the Deputy Commissioner (Appeals) or the Commissioner (Appeals), be in duplicate, and
(b) in a case where it is furnished to the Appellate Tribunal, be in triplicate.
For the purposes of sub-clause (viia) of clause (6) of section 101, the "prescribed authority" shall be the Secretary, Department of Scientific and Industrial Research, Government of India:
Provided that every ease pending on or before the 1st day of June, 1982, with any, authority, other than the said Secretary, shall stand transferred to the said Secretary for disposal.
__________________________
1. Section 10(6) (viia) was omitted by the Finance (No. 2) Act, 1998, w.e.f. 1-4-1999.
For the purposes of clauses (8A) and (8B) of section 10, the "prescribed authority" shall be the Additional Secretary, Department of Economic Affairs in the Ministry of Finance, Government of India in concurrence with Member (Income-tax) of the Board.]
_________________________
1 Inserted by the IT (Eighteenth Amdt.) Rules, 1993, w.e.f. 30-9-1993.
(1) The fund shall be formed under a trust and it shall be evidenced by a trust deed.
(2) The contributions to the fund are to be made by the employees by way of periodical subscription.
(3) The application for approval of any fund under clause 10(23AAA) of section 10 shall be made in Form No. 9 to the Commissioner having jurisdiction over the area or territory in which the accounts are kept and such application shall be accompanied by the documents mentioned therein.
(4) Where the Commissioner is satisfied that all the conditions laid down in clause 10(23AAA) of section 10 are fulfilled in the case of the fund, he shall record such satisfaction in writing and grant approval to the fund specifying the assessment year or years for which the approval is valid so however that such approval shall, at one time, have effect for such assessment year or years not exceeding three assessment years.
(5) Where the Commissioner is satisfied thatone or more of the conditions laid down in clause 10(23AAA) of section 10 are not fulfilled, he shall reject the application for approval, after recording the reasons for such rejection in writing :
Provided that no order of rejection of an application shall be passed without giving an opportunity of being heard.]
The report of audit of the accounts of a fund or trust or institution or any university or other educational institution or any hospital or other medical institution which is required to be furnished under the tenth proviso to clause (23C) of section 10 shall be in Form No. 10BB.]
_____________________________
1 Inserted by the IT (Fifteenth Amendment) Rules, 1995, w.e.f. 27-7-1995.
2 Inserted by Income-tax (Eighth Amendment) Rules, 2006 vide Notification No. SO1176(E) dated 25.07.2006.
The report of an accountant which is required to be furnished by the assessee along with the return of income, under sub-section (5) of section 10A shall be in Form No. 56F.]
____________________________
1 Inserted by the IT (Seventeenth Amdt.) Rules, 2000, w.e.f. 27-9-2000.
The particulars, which are required to be furnished by the assessee along with the return of income under clause (b) of Sub-section (1B) of Section 10A.
The particulars, which are required to be furnished by the assessee along with the return of income under clause (b) of Sub-section (1B) of Section 10A shall be in Form No.56FF
_____________________________
1. Inserted by the Income Tax (15th Amendment) Rules, 2003, w.e.f. 26.8.2003.
The report of an accountant which is required to be furnished by the assessee along with the return of income, under sub-section (5) of section 10B shall be in Form No. 56G.]
______________________________
1. Inserted by the IT (Eighteenth Amdt.) Rules, 2000, w.e.f. 27-9-2000.
The report of an accountant which is required to be furnished by the assessee along with the return of income, under sub-section (5) of section 10BA shall be in Form No. 56H.
...............................................
1. Inserted by the Income-Tax (Seventh Amendment) Rules, 2004 w.e.f. 31.03.2004.
The notice to be given to the Assessing Officer or the prescribed authority under
sub-section (2) of section 11 or under the said provision as applicable under clauses (21) and (23) of section 10 shall be in Form No.10 and shall be delivered before the expiry of the time allowed under sub-section (1) of section 139, for furnishing the return of income.
An application under clause (a) of section 12A for registration of a charitable or religious trust or institution shall be made in duplicate in Form No. 10A and shall be accompanied by the following documents, namely :--
1[(aa)] where the trust is created, or the institution is established, under an instrument, the instrument in original, together with one copy thereof; and where the trust is created, or the institution is established, otherwise than under an instrument, the document evidencing the creation of the trust or the establishment of the institution, together with one copy thereof:
Provided that if the instrument or document in original cannot conveniently be produced, it shall be open to the 2[***] Commissioner to accept a certified copy in lieu of the original;
(b) where the trust or institution has been in existence during any year or years, prior to the financial year in which the application for registration is made, two copies of the accounts of the trust or institution relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up.
_________________________________
1. Substituted for the word, brackets and letter clause "(a)", by the Income-tax (Seventh Amendment) Rules, 2007 vide notification no. 197/2007 dated 30.05.2007 w.e.f. 01.06.2007.
2. Omitted by the Income-tax (Seventh Amendment) Rules, 2007 vide notification no. 197/2007 dated 30.05.2007 w.e.f. 01.06.2007. Prior to omission it was: "Chief Commissioner or".
The report of audit of the accounts of a trust or institution which is required to be furnished under clause (b) of section 12A, shall be in Form No. 10B.
The forms and modes of investment or deposits under clause (xii) of subsection (5) of section 11 shall be the following, namely :--
(i) investment in the units issued under any scheme of the mutual fund referred to in clause (23D) of section 10 ofthe Income-tax Act, 1961;
(ii) any transfer of deposits to the Public Account of India;
2[(iii) deposits made with an authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both;]
3[(iv) investment by way of acquiring equity shares of a depository as defined in clause (e) of sub-section (1) of section2 of the Depositories Act, 1996 (22 of 1996).]
4[(v) investment made by a recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), (hereafter referred to as investor) in the equity share capital of a company (hereafter referred to as investee)-
(A) which is engaged in dealing with securities or mainly associated with the securities market;
(B) whose main object is to acquire the membership of another recognised stock exchange for the sole purpose of facilitating the members of the investor to trade on the said stock exchange through the investee in accordance with the directions or guidelines issued under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by the Securities and Exchange Board of India established under section 3 of that Act; and
(C) in which at least fifty one per cent, of equity shares are held by the investor and the balance equity shares are held by members of such investor]
5[(vi) investment by way of acquiring equity shares of an incubatee by an incubator.
Explanation. For the purposes of this clause,
(a) incubatee shall mean such incubatee as may be notified by the Government of India in the Ministry of Science and Technology;
(b) incubator shall mean such Technology Business Incubator or Science and Technology Entrepreneurship Park as may be notified by the Government of India in the Ministry of Science and Technology.]
6[(vii) investment by way of acquiring shares of National Skill Development Corporation.]
____________________________
1. Inserted by the IT (Eighth Amendment) Rules, 1990, w.e.f. 29-3-1990.
2. Inserted by the IT (First Amendment) Rules, 1995, w.e.f. 6-1-1995.
3. Inserted by the IT (Fifteenth Amendment) Rules, 1998, w.e.f. 6-1-1998.
4. Inserted by the IT (Tenth Amendment) Rules, 2006, w.e.f. 26-11-1999.
5. Inserted by the IT (Second Amendment) Rules, 2007, w.e.f. 1-3-2007.
6. Inserted by the Income-tax (Ninth Amendment) Rules, 2008 vide Notification No. 99/2008 dated 22.10.2008.
For the purposes of sub-clause (iii) of clause (b) of sub-section (2) of section 80HHB, any project for execution of work of exploration, exploitation, development and production of hydrocarbons outside India shall be a foreign project.]
__________________________
1. Inserted by the IT (Thirteenth Amdt.) Rules, 1999, w.e.f. 2-6-1999.
For the purpose of sub-clause (iiif) of clause (a) of sub-section (2) of section 80G, the prescribed authority,--
(a) in relation to a university or any non-technical institution of national eminence, shall be the Director General (Income-tax Exemptions), who shall grant approval with the concurrence of the Secretary, University Grants Commission;
(b) in relation to any technical institution of national eminence, shall be the Director General (Income-tax Exemptions) who shall grant approval with the concurrence of the Secretary, All India Council of Technical Education.
Explanation : For the purposes of this rule,--
(1) "All India Council of Technical Education" means the All India Council of Technical Education established under section 3 of the All India Council for Technical Education Act, 1987 (52 of 1987);
(2) "University Grants Commission" means the University Grants Commission established under section 4 ofthe University Grants Commission Act, 1956 (3 of 1956).]
_______________________
1. Inserted by the IT (Fourteenth Amendment) Rules, 1993, w.e.f. 6-9-1993.
(1) For the purpose of Sub-section (5C) of Section 80G, the prescribed authority shall be the Director General of Income-tax (Exemptions).
(2) The trust, the fund or the institution, which is established in India for a charitable purpose and is approved in terms for of clause (vi) of Sub-section (5) shall maintain separate accounts of income and expenditure for providing relief to the victims of earthquake in Gujarat and get such accounts audited by an accountant, as defined in the Explanation to Sub-section (2) of Section 288 and furnish the report of such audit, duly signed and verified by such accountant to the Director General of Income-tax (Exemptions) in Form No. 10AA. Such authority, on receipt of the accounts in the said form, shall give the findings as to whether the donations received for the purpose of providing relief to the victims of earthquake in Gujarat are chargeable to tax in the hands of the trusts or the fund or the institution under clause (23C) of Section 10 or under Section 12 or not, as the case may be, and determine the extent thereof.
(3) Where the findings of the Director General of Income-tax (Exemptions) are not beneficial to the assessee, such authority shall give an opportunity to the assessee before making the findings.
(4) The Director General of Income-tax (exemptions) shall bring his findings to the knowledge of the concerned assessing officer within one month of making such findings.]
1 Inserted by IT (22nd Amdt.) Rules, 2002 w.e.f 03.02.2002
In specifying an association or institution for notification under clause (c) of sub-section (2) of section 80G, the Central Government shall satisfy itself that,
(a) the association or institution has as its object the control, supervision, regulation or encouragement in India of the games or sports notified under Explanation 4 to Section 80G;
(b) the association or institution has a proven record of its dedication towards development of infrastructure of sports or games or promotion of sports or games for at least a period of three years;
(c) the association or institution does not distribute any part of its income in any manner to its members except as grants to any association or institution affiliated to it;
(d) the association or institution applies the amount received by way of donation referred to in clause (c) of sub-section (2) of section 80G for purposes of development of infrastructure for games or sports in India or for sponsoring of games or sports in India;
(e) the association or institution maintains regular accounts of its receipt and expenditure;
(f) the association or institution files its return of income regularly;
(g) the notification issued by the Central Government under clause (c) of sub-section (2) of section 80G shall have effect in relation to the assessment year or years, not exceeding three assessment years (including an assessment year or years commencing before the date on which such notification is issued), as may be specified in such notification.]
_______________________________
1. Inserted by Income-tax (26th Amendment) Rules, 2002. w.e.f. 29.11.2002.
For the purposes of sub-section (4B) of section 80-IA, the prescribed authority shall be the Secretary, Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India.]
____________________________
1. Inseerted by the IT (Tenth Amdt.) Rules, 1996, w.e.f. 1-4-1997.
The report of audit of the accounts of an assessee, other than a company or a co-operative society, which is required to be furnished under sub-section (5) of section 80HH shall be in Form No. 10C.
The report of the audit of the accounts of an assessee, other than a company or a co-operative society, which is required to he furnished under subsection (4) of section 80HHA shall be in Form No. 10CC
(1) The report of the audit of the accounts of an assessee, other than a company or a co-operative society, which is required to be furnished under clause (1) of sub-section (3) of section 80HHB shall be in Form No. 10CCA.
1[(1A) The report of the audit of the accounts of an assessee which is required to be furnished under clause (i) of sub-section (2) of section 80HHBA shall be in Form No. 10CCAA.]
2[(1B) The certificate from an accountant which is required to be furnished by the assessee under clause (ia) of sub-section (3) of section 80HHB shall be in Form No. 10CCAH.]
(2) The certificate from the Export House or Trading House which is required to be furnished by the supporting manufacturer under clause (b) of sub-section (4A) of section 80HHC shall be in Form No. 10CCAB.
(3) The report of an accountant which is required to be furnished by the assessee under sub-section (4) or clause (a) of sub-section (4A) of section 80HHC shall be in Form No. 10CCAC
(4) The report of the accountant which is required to be furnished by the assessee under sub-section (6) of section 80HHD shall be in Form No. 10CCAD.
(5) For the purposes of section 80HHD, the "prescribed authority" shall be the Director General in the Directorate General of Tourism, Government of India.
3[(6) The certificate from a person making payment to an assessee, engaged in the business of a hotel or of a tour operator or of a travel agent which is required to be furnished under sub-section (2A) of section 80HHD shall be in Form No. 10CCAE.]
4[(7) The report of an accountant which is required to be furnished by the assessee under sub-section (4) or clause (i) of sub-section (4A) of section 80HHE shall be in Form No. 10CCAF.]
6[(8) The certificate from the exporting company which is required to be furnished by the supporting software developer under clause (it) of sub-section (4A) of section 80HHE shall be in Form No. 10CCAG.]
7[ (9) The report of an accountant which is required to be furnished by the assessee under sub-section (4) of section 80HHF shall be in Form No. 10CCAL]
___________________________
1. Inserted by the IT (Second Amendment) Rules, 1999, w.e.f. 15-1-1999.
2. Inserted by the IT (Twelfth Amendment) Rules, 1999, w.e.f. 1-6-1999.
3. Inserted by the IT (Sixth Amendment) Rules, 1992, w.e.f. 1-4-1992.
4. Inserted by the IT (Fourth Amendment) Rules, 1992, w.e.f. 15-1-1991.
5. Inserted by the IT (Twenty-second Amendment) Rules, 1998, w.e.f. 23-101998.
6. Inserted by the IT (Twenty-third Amendment) Rules, 1998, w.e.f. 23-101998.
7. Inserted by the IT (Eighteenth Amendment) Rules, 1999, w.e.f. 1-4-2000.
18BBB.(1) The report of the audit of the accounts of an assessee, which is required to be furnished under sub-section (7) of section 80-IA or sub-section (7) of section 80-I, except in the cases of multiplex theatres as defined in sub-section (7A) of section 80-IB of convention centers as defined in sub-section (7B) of section 80-IB 3[or hospitals in rural areas as defined in sub-section (11B) of section 80-IB], shall be in Form Number 10CCB.
(2) A separate report is to be furnished by each undertaking or enterprise of the assessee claiming deduction under section 80-I or 80-IA or 80-IB 3[or 80-IC] and shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity.
(3) In the case of an enterprise carrying on the business of developing or operating and maintaining or developing, operating and maintaining an infra structure facility, the form shall be accompanied by a copy of the agreement of the enterprise with the central government or the state government or the local authority for carrying on the business of developing or operating and maintaining or developing, operating and maintaining the infrastructure facility.
(4) In any other case, the form shall be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the central government or the state government or the local authority for carrying on the eligible business.]
_________________________
1 Substituted by IT (23rd Amendment) Rules, 2002 w..e.f. 01.04.2002 (Effective date substituted from 1st day of April, 2002 to 6th day of September, 2002 vide IT(9th Amendment) Rules, 2003
Prior to substitution Rule 18BBB read as under:
18BBB. Form of audit report for claiming deduction under section 80-I or section 80-IA The report of the audit of the accounts of an assessee, other than a company or a co-operative society, which is required to be furnished under sub-section (7) of section 80-I or sub-section 2(7) of section 80-IA shall be in Form No. 10CCB.
2 Substituted by Income-tax (Third Amendment) Rules, 2005 w.e.f. 04.02.2005 for the words Section 80-IB
3 Inserted by Income-tax (Third Amendment) Rules, 2005 w.e.f. 04.02.2005.
(1) For the purposes of sub-clause (iii) of clause © of sub-section (7) of section 80-IB, the prescribed authority,--
(a) in relation to hotels located in an area or place referred to in clause (a) of that sub-section, shall be the Director General (Income-tax Exemptions) who shall grant approval on the concurrence of the Director General in the Directorate General of Tourism, Government of India;
(b) in relation to hotels located in any place referred to in clause (b) of that sub-section, shall be the Director General in the Directorate General of Tourism, Government of India.
(2) For the purpose of clause (a) of sub-section (7) of section 80-IB, a hotel shall be approved by the prescribed authority if the following conditions are fulfilled, namely:--
(a) such hotel is located in an area or place specified under clause (a) of the said sub-section (7);
(b) there are not more than 300 hotel rooms of 3-star category and above in the aggregate, in areas or places specified under clause (a) of the said sub-section (7) within the jurisdiction of the revenue sub-division in which the hotel is located;
© in case the hotel is located in a place where there is need for development of infrastructure for tourism, such place has been specified by the Central Government under clause (a) of the said sub-section (7) on the recommendations of the Department of Tourism.
________________________________
1. Substituted by the IT (Nineteenth Amendment) Rules, 1999, w.e.f. 1-4-2000. Prior to its substitution, Rule 18BBC, as inserted by the IT (Seventh Amendment) Rules, 1992, w.e.f. 27-3-1992 and amended by the IT (Eighth Amendment) Rules, 1998, w.e.f. 29-5-1998, read as under:
18BBC. Prescribed authority for approval of hotels located in certain areas.
(1) For the purposes of clause (v) of sub-section (4) of section 80-IA, the prescribed authority,
(a) in relation to hotels located in an area or place referred to in clause (iii) or clause (iiia)of that sub-section, shall be the Director General (Income-Tax Exemptions) who shall grant approval on the concurrence of the Director General in the Directorate General of Tourism, Government of India;
(b) in relation to hotels located in any place referred to in clause (iv) or clause (iva) of that sub-section, shall be the Director General in the Directorate General of Tourism, Government of India.
(2) Four the purpose of clause (iii) of sub-section (4), and the first proviso of clause 9ii) of sub-section (5), of section 80-IA, a hotel shall be approved by the prescribed authority if the following conditions are fulfilled, namely :--
(a) such hotel is located in an area or place specified under clause (iii) of the said sub-section (4);
(b) there are not more than 3000 hotel rooms of 3-star category and above in the aggregate, in areas or places specified under clause (iii) of the said sub-section (4) within the jurisdiction of the revenue sub-section in which the hotel is located;
(c) in case the hotel is located in a place where there is need for development of infrastructure for tourism, such place has been specified by the Central Government under clause (iii) of the said sub-section (4) on the recommendations of the Department of Tourism.
(3) Four the purpose of clause (iiia) of sub-section (4), and the proviso of clause (iia) of sub-section (5) of section 80-IA, a hotel shall be approved by the prescribed authority if the following conditions are fulfilled, namely :--
(a) such hotel is located in an area or place specified under clause (iiia) of the said sub-section (4);
(b) there are not more than 1,000 hotel rooms of 3-star category and above in the aggregate, in areas or places specified under clause (iiia) of the said sub-section (4) within the jurisdiction of the revenue sub-division in which the hotel is located;
(c) in case the hotel is located in a place where there is need for development of infrastructure for tourism, such place has been specified by the Central Government under clause (iiia) of the said sub-section (4) on the recommendations of the Department of Tourism.
For the purposes of sub-section (4B) of section 80-IA, the prescribed authority shall be the Secretary in the Department of Scientific and Industrial Research and Development, Ministry of Science and Technology, Government of India.]
_________________________
1. Inserted by the IT (Fifth Amendment) Rules, 1996, w.e.f. 21-11-1996.
(1) For the purpose of sub-section 2[(6)] of section 80-IA, the profits of housing or other activities, whieh arc integral part of a highway project, shall be computed on the basis and manner specified below :--
(i) in a case where the annual profits of the housing or other activities which arc integral part of a highway project can be arrived atin accordance with the regular method of accounting followed, the profits so arrived at as computed under the provisions of the Act;
(ii) in any other case, the amount of profits arrived at based on the percentage of completion of the activities referred to in clause (i) during the relevant previous year.
(2) Every assessee shall maintain separate accounts for the activities referred to in sub-rule (1) and shall submit a certificate from an accountant, specifying the amount credited to the reserve account and the amount utilised during the relevant previous year for the highway project.
Explanation : For the purposes of this rule, "accountant" means,--
(i) a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949); or
(ii) any person who, in relation to any State, is, by virtue of the provisions in sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), entitled to be appointed to act as an auditor of companies registered in that State.
(3) The certificate referred to in sub-rule (2) shall be in Form No. 10CCC.]
___________________________
1. Inserted by the IT (Third Amendment) Rules, w.e.f. 4-2-1998.
2. Substituted for (7A) by the IT (Sixteenth Amendment) Rules, 1999, w.e.f. 1-4-2000.
(1) The undertaking shall begin to develop, develop and operate or maintain and operate an industrial park any time during the period beginning on the 1st day of April, 2006, and ending on the 31st day of March, 5[2011].
(2) The undertaking and the Industrial Park shall be notified by the Central Government under the Industrial Park Scheme, 2008.
(3) The undertaking shall continue to fulfill the conditions envisaged in the Industrial Park Scheme, 2008.]
4. Substituted by the Income-tax (First Amendment) Rules, 2008 vide Notification No. 2/2008 dated 08.01.2008 for the following: -
"1[Eligibility of Industrial Parks and Special Economic Zones for benefits under Section 80-IA(4)(iii)] (1) The undertaking shall begin to operate an industrial park during the period beginning on the 1st day of April, 1997, and ending on the 31st day of March, 2002.
2[(1A) The undertaking shall begin to develop or develop and operate or maintain and operate a special economic zone any time during the period beginning of 1st day of April, 2001 and ending on 31st day of March 2003.]
(2) The undertaking shall be duly approved by the 3[Ministry of Commerce and Industry] in the Central Government under the scheme for industrial park 2[or special economic zones] notified by that Ministry.
(3) The undertaking shall continue to fulfill the conditions envisaged in the scheme.
(4) On approval under sub-rule (2), the Central Board of Direct Taxes, shall notify industrial parks for benefits under section 80-IA.]
5. Substituted by the Income Tax (fifth Amendment) Rules, 2010 vide Notification No. 38/2010 dated 21.05.2010 for the following:- "2009"
(1) For the purposes of sub-section (8A) of section 80-IB, the prescribed authority shall be the Secretary, Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India.
(2) The prescribed authority shall initially grant approval to a company carrying on scientific research and development for a period of three assessment years and subject to satisfactory performance of that company on periodic review extend the said approval for a further period of three assessment years so that the total period of approval is for ten consecutive assessment years, beginning from the initial assessment year.
___________________________
1. Inserted by the IT (First Amendment) Rules, 2001, w.e.f. 31-1-2001
(1) Any company carrying on scientific research and development shall be eligible for deduction specified in sub-section (8A) of section 80-IB, if such company--
(a) is registered in India;
(b) has its main object the scientific and industrial research and development;
(c) has adequate infrastructure such as laboratory facilities, qualified manpower, scale-up facilities and prototype development facilities for undertaking scientific research and development of its own;
(d) has a well formulated research and development programme comprising of time bound research and development projects with proper mechanism for selection and review of the projects or programme;
(e) is engaged exclusively in scientific research and development activities leading to technology development, improvement of technology and transfer of technology developed by themselves;
(f) submits the annual return alongwith statement of accounts and annual report within eight months after the close of each accounting year to the prescribed authority.
(2) Every company which is approved under sub-rule (2) of rule 18D shall--
(a) sell any prototype or output, if any, from its laboratories or pilot plants with the prior permission of the prescribed authority;
(b) intimate the change, if any, in its memorandum of association and articles of association relating to its main objects and forvard the altered copy of memorandum of association and articles of association to the prescribed authority;
(c) apply for extension of the approval at least three months before expiry of the approval already granted by the prescribed authority;
(d) have a system of monitoring the cost of research and development projects.
(3) If, at any stage, it is found that--
(a) the approval granted to the company referred to in sub-rule (2) of rule 18D is to avoid payment of taxes by its group companies or companies related to its directors or majority of its shareholders;
(b) any provisions of the Act or the rules have been violated, the prescibed authority specified may withdraw the approval so granted.
(4) Every company referred to in sub-rule (1) shall make an application to the prescribed authority for the purposes of obtaining approval.
(5) Every application referred to in sub-rule (4) shall be accompanied by--
(a) memorandum of association and articles of association incorporating all amendments duly certified by the company secretary or managing director of the company;
(b) annual report of the company for the last three years, if available;
(c) photocopies of the memorandum of understanding relating to all ongoing and future sponsored research projects or programmes.
(6) The prescribed authority may call for any information or document which may be necessary for consideration of the grant of approval under sub-rule (2) of rule 18D.
(7) The prescribed authority shall grant approval within four months from the date of receipt of the application:
Provided that where the approval is not granted, the decision of the said authority shall he communicated to the applicant within the said period of four months:
Provided further that no approval shall be refused unless the applicant has been given an opportunity of being heard.
(1) For the purpose of sub-section (7A) and clause (da) of sub-section 14 of section 80-IB, the multiplex theatre shall have the following area, facilities and amenities:-
(a) The total built-up area occupied by all the cinema theatres comprised in the multiplex shall be not less than 22,500 square feet, and shall consist at least 50% of the total built-up area of the multiplex excluding the area specified for parking.
(b) The multiplex theatres shall be comprised of at least three cinema theatres and at least three commercial shops.
(c) Total seating capacity of all the cinema theatre comprised in the multiplex shall be at least 900 seats, and no cinema theatres should consist of less than 100 seats.
(d) The total built-up area occupied by all the commercial shops comprised in the multiplex theatre shall be not less than 3000 sq. ft., and the minimum built-up area of each shop shall not be less than 250 sq. ft.
(e) There shall be at least one lobby or foyer in the cinema theatres, whose area shall be at least 3 sq. ft. per seat. (f) The multiplex theatre shall have adequate parking, toilet blocks and other public conveniences, as per local building or cinema regulations, and shall also fulfill all local building or cinema regulations in respect of fire and safety.
(g) The cinema theatres comprised in the multiplex theatre shall use modern stereo projection systems with at least two screen speakers per screen and one surround speaker per 25 seats in a theatre.
(h) The cinema theatres shall use seats with seat pitch not less than 20" (centre to centre).
(i) Ticketing system employed by the cinema theatres shall be fully computerised.
(j) The multiplex theatre cinema shall be centrally air-conditioned.
Explanation.- For the purposes of this rule, the expression modern stereo projection systems shall consist of xenon lamp, platter and digital sound systems.
(2) A separate report of the audit, shall be furnished along with the return of income in respect of each eligible multiplex theatre, in Form Number, 10-CCBA and shall be duly signed and verified by an accountant as defined in the Explanation below sub-section (2) of section 288.
(3) In the first year of the claim of deduction, the assessee shall enclose along with the audit report, a copy of approvals for exhibition of cinema given by various State or local authorities, which shall, where applicable, include the following:-
(a) no-Objection-Certificate with respect to the location of the multiplex by the concerned licensing authority;
(b) permission for construction of the multiplex by the concerned licensing authority;
(c) permission to construct the building from the town planning authority or municipal corporation;
(d) completion certificate or occupation certificate, as the case may be, from the town planning authority or municipal corporation, certifying the completion of the multiplex theatre, during the period commencing on the 1st day of April, 2002 and ending on the 31st day of March, 2005; and
(e) operating license issued by the concerned licensing authority.
(4) After the first year of claim of deduction, in the subsequent four years, the audit report shall be enclosed with the operating license issued from time to time, by the concerned licensing authority for exhibition of cinema.]
_____________________________
1 Inserted by IT(27th Amendment) Rules, 2002 w.e.f. 01.04.2002.
(1) For the purpose of Sub-section (7B) and clause (aa) of Sub-section (14) of Section 80-IB, the convention centre shall have the following area, facilities and amenities,-
(i) A convention centre located in a town or city mentioned in column (1) of the table below, shall have a minimum plinth area mentioned in column (2), minimum seating capacity mentioned in column (3) and minimum number of conference or seminar halls mentioned in column (4) of the said table, as under :--
Town size population (as per 2001 census) Minimum area covered plinth area (in Sq. mtrs.) Minimum seating capacity range Minimum number of Conference or Seminar halls
(1) (2) (3) (4)
Below 5 lakhs 2000 200-300 2
5--10 lakhs 5000 500-750 3
10--40 lakhs 10000 1000-1500 5
Above 40 lakhs Mega cities 15000 1500-2000 7
(ii) The convention center shall have conference or seminar halls, auditorium and exhibition halls for holding seminars, conferences.
(iii) Each conference, seminar hall, exhibition hall and the auditorium of the convention center shall be equipped with modern public address system, slide and power point projection system and LCD projector or Video screening facility.
(iv) The convention center shall also have a documentation center with computers and printers, telephone with STD/ISD facilities, E-mail, photocopy and scanning facility along with trained operators to provide these facilities.
(v) The conference or seminar hall, documentation center, auditorium and the exhibition hall of the convention center shall be air-conditioned.
(vi) The convention center shall have adequate parking facility and other public conveniences as per the local building regulations and should also fulfill all local building regulations in respect of fire and safety.
(2) In audition to facilities mentioned in sub-rule (1), the convention centers may have,--
(i) an amphitheatre, landscaped open spaces for outdoor conference or seminar related activities.
(ii) a kitchen, dining facility cafeteria or restaurant only to support events in the convention center.
(3) A separate report of the audit, shall be furnished along with the return of income in respect of each eligible convention centre, in Form No. 10-CCBB and shall be duly signed and verified by an accountant as defined in the Explanation below sub-section (2) of Section 288.
(4) In the first year of the claim of deduction, the assessee shall enclose along with the audit report, a copy of approvals for building of convention center given by State or local authorities, which shall, where applicable, include the following :--
(i) permission for construction of the convention center, from the town planning authority or municipal corporation;
(ii) completion certificate or occupation certificate, as the case may be, from the town planning authority or municipal corporation, certifying the completion of the convention center, during the period commencing on the 1st day of April, 2002 and ending on the 31st day of March, 2005.]
_____________________________
1. Inserted by Income-tax (Eighth Amendment) Rules, 2004 w.e.f. 01.04.2002.
The report of an accountant which is required to be furnished by the assessee along with the return of income, under sub-section (11B) of section 80-IB shall be in Form No. 10CCBC.
__________________________
1. Inserted by Income-tax (5th Amendment) Rules, 2005 vide Notification No. 58/2005 dated 17.02.2005.
The report of an accountant which is required to be furnished by the assessee along with the return of income, under sub-section (11C) of section 80-IB shall be in Form No. 10CCBD.]
___________________________
1. Inserted by the Income-tax (Eighth Amendment) Rules, 2008 vide Notification No. 98/2008 dated 22.10.2008.
(1) For the purposes of clause (a) of sub-section (6) of section 80-ID, the convention centre shall have the following area, facilities and amenities,
(a) A convention centre located in the specified area mentioned in column (1) of the Table below, shall have a minimum covered plinth area mentioned in column (2), minimum seating capacity mentioned in column (3) and minimum number of convention halls, for the purpose of holding conferences and seminars, mentioned in column (4) of the said table.
Table
Specified area Minimum covered plinth area (in sq. mtrs.) Minimum seating capacity Minimum number of convention halls
(1) (2) (3) (4)
National Capital Territory of Delhi, Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad 25000 3000 10
(b) The convention centre shall have convention halls, whether called conference halls or seminar halls or auditorium or by any other name, for holding seminars and conferences.
(c) Each convention hall of the convention centre shall be equipped with modern public address system, slide and power point projection system and LCD projector or Video screening facility.
(d) The convention centre shall have a documentation centre with computers and printers, telephone with STD/ISD facilities, E-mail, photocopy and scanning facility along with trained operators to provide these facilities.
(e) The convention centre shall be completely centrally air-conditioned.
(f) The convention centre shall have adequate parking facility and other public conveniences as per the local building regulations and should also fulfil all local building regulations in respect of fire and safety.
(2) In addition to the facilities mentioned in sub-rule (1), the convention centres may have,
(a) an amphitheatre and landscaped open spaces for outdoor conference or seminar related activities;
(b) a kitchen, dining facility, cafeteria or restaurant only to support events in the convention centre.
(3) For the purposes of clause (iv) of sub-section (3) of section 80-ID, the report of an audit shall be in Form No. 10CCBBA.]
______________________________
1. Inserted by Income-tax (15th Amendment) Rules, 2007 vide Notification No. 281/2007 dated 27.11.2007, w.e.f. 01.04.2008.
Report of an accountant which is required to be furnished by the assessee along with the return of income under clause (b) of sub-section (2) of section 80JJAA shall be in Form No. 10DA.]
___________________________
1. Inserted by the IT (Twenty-first Amendment) Rules, 1998, w.e.f. 23-10-1998.
(1) The Certificate, which is required to be furnished by the assessee under sub-section (3) of section 80QQB from a person responsible for making payment to the assessee, shall be in Form No. 10CCD.
(2) The Certificate in Form No. 10CCD duly verified by the person responsible for making the payment to the assessee is required to be furnished along with the return of income.
_______________________________
1. Inserted by IT (19th Amendment) Rules, 2003 w.e.f. 01.04.2003.
(1) For the purposes of sub-section (2) of section 80RRB, the prescribed authority shall be the Controller, referred to in clause (b) of sub-section (1) of the Patents Act, 1970 (39 of 1970).
(2) The certificate, which is required to be furnished by the assessee under sub-section (2) of section 80RRB from the prescribed authority shall be in Form No. 10CCE
……………………………………………..
1. Inserted by IT (18th Amendment) Rules, 2003 w.e.f.05.09.2003
The report of the accountant, which is required to be furnished by the assessee under sub-section (3) of section 80-LA shall be in Form No. 10 CCF.]--
________________________
1. Inserted by Income-tax (26th Amendment) Rules, 2003 w.e.f. 13.11.2003.
The Board, before granting approval to a public company, 4[under clause (xix) of sub-section (2) of section 80C or] under clause (xvi) of sub-section (2) of section 88, shall satisfy itself that the application made to it fulfils the following requirements, namely:--
(1) An application for approval has been made in the Form No. 59 by the public company three months before the 2[eligible issue of capital].
5[Explanation.- For the purposes of this rule, "the eligible issue of capital" means an issue referred to in clause (i) of the Explanation to clause (xix) in sub-section (2) of section 80C or in clause (i) of the Explanation to clause (xvi) in sub-section (2) of section 88.]
(2) Every application shall be accompanied by the following documents, namely:--
(a) a copy of the certificate of incorporation under the Companies Act, 1956 (1 of 1956);
(b) audited balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made:
Provided that where a company has been in existence for a period of less than three years, in that case that company may furnish balance sheet and profit and loss account for the period of its existence.
(3) Every such public company shall invest its total paid-up capital (hereinafter referred to as such capital) raised through equity issue or debentures in the following manner :--
(i) twenty-five per cent or more of such capital shall be invested in the infrastructure facility before the end of one year from the date of approval of the Board;
(ii) the balance of such capital shall be invested within a period of three years from the date of approval.
(4) Every such public company shall submit a certificate from an accountant, as defined in the Explanation in sub-section (2) of section 288, specifying the amount invested in each year, from the dale of approval of the Board.
(5) The Board shall pass an order in writing granting approval or refusing approval to such public company, as the case may be :
Provided that no order refusing approval shall be passed by the Board before allowing an opportunity of being heard to the public company.
(6) The Board shall have the power to withdraw the approval granted under sub-rule (5) in the following circumstances, namely :--
(a) if such public company fails to make investments as per conditions mentioned in sub-rule (3); or
(b) if such public company fails to file the certificate referred to in sub-rule (4).
_____________________________________
1. Inserted by the IT (Sixth Amendment) Rules, 1996, w.e.f. 22-11-1996. Earlier Existing rule 20 was omitted by the IT (Fifth Amendment) Rules, 1989, w.e.f. 18-5-1989.
2. Substituted for public issue by the IT (Second Amendment) Rules, 1997, w.e.f. 22-11-1996.
3. Inserted, by the IT (Second Amendment) Rules, 1997, w.e.f. 22-11-1996.
4. Inserted by Income-tax (24th Amendment) Rules, 2005.
5. Substituted by Income-tax (24th Amendment) Rules, 2005 for the following explanation:-
"3[Explanation.--For the purpose of this rule, "the eligible issue of capital" means an issue referred to in clause (i) of Explanation of clause (xvi) in sub-section (2) of section 88.]"
(1) For the purpose of 2[clause (xx) of sub-section (2) of section 80C or] clause (xvii) of sub-section (2) of section 88,the prescribed authority shall be the Central Board of Direct Taxes.
(2) An application for approval shall be made in Form No. 59A by the Mutual Fund to the Board referred in sub-rule (1) three months before the public issue.
(3) Every application for approval under sub-rule (2) shall be accompanied by the following documents, namely :--
(a) audited balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made:
Provided that where a Mutual Fund has been in existence for a period of less than three years, in that case that company may furnish balance sheet and profit and loss account for the period of its existence;
(b) a copy of the certificate of registration issued by the Securities and Exchange Board of India.
(4) Every such Mutual Fund shall invest its total paid-up capital (hereinafter referred to as such capital) raised through equity issue or debentures in the following manner :--
(i) twenty-five per cent or more of such capital shall be invested in the "eligible issue of capital of any company" referred to in 2[clause (i) of Explanation to clause (xix) of sub-section (2) of section 80C or in] clause (i) of Explanation to clause (xvi) of sub-section (2) of section 88, before the end of one year from the dale of approval of the Board;
(ii) the balance of such capital shall be invested within a period of three years from the date of approval.
(5) Every such Mutual Fund shall submit a certificate from an accountant, as defined in the Explanation to sub-section (2) of section 288, specifying the amount invested in each year, from the date of approval of the Board.
(6) The Board shall pass an order in writing granting approval or refusing approval to such Mutual Fund, as the case may be :
Provided that no order of refusing approval shall be passed by the Board without an opportunity of being heard given to the Mutual Fund.
(7) The Board shall have the power to withdraw the approval granted under sub-rule (6) under the following circumstances, namely :--
(a) if such Mutual Fund fails to make investments as mentioned in sub-rule (4); or
(b) if such Mutual Fund fails to file the certificate referred to in sub-rule (5).
____________________________
1. Inserted by the IT (Eleventh Amendment) Rules, 1996, w.e.f. 26-12-1996.
2. Substituted by Income-tax (24th Amendment) Rules, 2005.
The evidence of payment of securities transaction tax which is required to be furnished alongwith the return of income by the assessee under first proviso to section 88E, -
(i) on value of transaction entered into by him a recognised stock exchange, shall be in Form No. 10DB and shall be verified in the manner indicated therein ;
(ii) on value of transaction of sale, by him, of a unit of an equity oriented fund to the Mutual Fund, shall be in Form No. 10DC and shall be verified in the manner indicated therein.]
______________________________
1. Inserted by the IT (1st Amendment) Rules, 2005 w.e.f. 06-01-2005.
1[(1) Where, by reason of any portion of an assessees salary being paid in arrears or in advance or, by reason of any portion of family pension received by an assessee being paid in arrears or, by reason of his having received in any one financial year salary for more than twelve months or a payment which under the provisions of clause (3) of Section 17 is a profit in lieu of salary, his income is assessed at a rate higher than that at which it would be otherwise have been assessed, the relief to be granted under Sub-section (1) of Section 89 shall be
(a) where any portion of the assessees salary is received in arrears or in advance or, any portion of family pension is received by an assessee in arrears, in accordance with the provisions of Sub-rule (2);
(b) where the payment is in the nature of gratuity in respect of past services of the assessee extending over a period of not less than five years, in accordance with the provisions of Sub-rule (3);
(c) where the payment is in the nature of compensation received by the assessee from his employer or former employer at or in connection with the termination of his employment after continuous service for not less than three years, in accordance with the provisions of Sub-rule (4);
(d) where the payment is in connection of pensions, in accordance with the provisions of Sub-rule (5); and
(e) where the payment is not in the nature of salary paid in arrears or in advance or gratuity in respect of past services or compensation received at or in connection with the termination of employment or in commutation of pension, in accordance with the provisions of Sub-rule (6).
(2) (a) In a case referred to in clause (a) of Sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the salary is received in arrears or in advance or, in which the family pension is received in arrears (such salary or family pension being hereafter in this Sub-rule referred to respectively as the additional salary or additional family pension, as the case may be, and such previous year being hereafter in this Sub-rule referred to as the relevant previous year) shall be reduced by the amount, if any, by which the tax on the additional salary or additional family pension, calculated in the manner specified in clause (c) or clause (d), as the case may be.
(b) Tax shall be calculated on the total income of the relevant previous year as reduced by the additional salary or additional family pension, as the case may be, as if the total income so reduced were the total income of the assessee, and the amount by which the tax so calculated falls short of the tax on the total income before such reduction shall, for the purposes of clause (a), be taken to be the tax on the additional salary or additional family pension, under this clause.
(c) Where the additional salary or additional family pension, as the case may be, relates to only one previous year, tax shall be calculated on the total income of the said previous year as increased by the additional salary or additional family pension, as if the total income so increased were the total income of the assessee, and the amount by which the tax so calculated exceeds the tax payable by the assessee in respect of the total income of the said previous year shall, for the purposes of clause (a), be taken to be the tax on the additional salary or additional family pension, under this clause.
(d) Where the additional salary or additional family pension, as the case may be, relates to more than one previous year,--
(i) the previous years to which the additional salary or additional family pension relates and the amount relating to each such previous year shall first be ascertained;
(ii) tax shall, then, be calculated on the total income of each such previous year as increased by the amount relating to such previous year ascertained under Sub-clause (i), as if the total income so increased were the total income of that previous year, and the amount by which the aggregate amount of tax in respect of the aforesaid previous years as calculated under Sub-clause (ii) exceeds the aggregate amount of tax payable by the assessee in respect of the total income of the said previous years shall, for the purposes of clause (a), be taken to be the aggregate tax on the additional salary or additional family pension, under the clause.]
(3) (a) In a case referred to in clause (b) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the payment by way of gratuity is received (such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by the amount, if any, by which the tax on the amount of the gratuity included in the total income of the relevant previous year, calculated at the average rate of tax applicable to such total income, exceeds the tax on the amount of such gratuity, calculated at the rate of tax determined under clause (b) or, as the case may be, clause (c).
(b) Where the payment by way of gratuity is made in respect of past services of the aasessee extending over a period of not less than five years but less than fifteen years,--
(i) the total income of the assessee in respect of each of the two previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-half of the amount of the gratuity included in the total income of the relevant previous year, and the average rate of lax for each of the said two previous years shall be calculated as if the total income so increased were the total income of that previous year; and
(ii) the average of the average rates of tax for the two previous years immediately preceding the relevant previous year, calculated in accordance with sub-clause (i), shall, for the purposes of clause (a), be the rate of tax determined under this clause.
(c) Where the payment by way of gratuity is made in respect of past services of the asscssce extending over a period of not less than fifteen years,--
(i) the total income of the assessee in respect of each of the three previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-third of the amount of the gratuity included in the total income of the relevant previous year, and the average rate of tax for each of the said three previous years shall be calculated as if the total income so increased were the total income of that previous year; and
(ii) the average of the average rates of tax for the three previous years immediately preceding the relevant previous year, calculated in accordance with sub-clause (i), shall, for the purposes of clause (a), be the rate of tax determined under this clause.
(4) (a) In a case referred to in clause (c) of sub-rule (1), the lax payable by the assessee on his total income of the previous year in which the payment by way of compensation is received (such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by the amount, if any, by which the tax on the amount of the compensation included in the total income of the relevant previous year, calculated at the average rate of tax applicable to such total income, exceeds the tax on the amount of such compensation, calculated at the rate of tax determined under clause (b).
(b) The total income of the assessee in respect of each of the three previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-third of the amount of the compensation included in the total income of the relevant previous year, and the average rate of tax for each of the said three previous years shall be calculated as if the total income so increased were the total income of that previous year; and the average of the average rates of tax so calculated for the three previous years shall, for the purposes of clause (a), be the rate of lax determined under this clause.
(5) (a) In a case referred to in clause (d) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the payment in commutation of pension is received (such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by the amount, if any, by which the tax on the payment in commutation of pension included in the total income of the relevant previous year, calculated at the average rate of tax applicable to such total income, exceeds the tax on the amount of such payment, calculated at the rate of tax determined under clause (b).
(b) The total income of the assessee in respect of each of the three previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-third of the amount of payment in commutation of pension included in he total income of the relevant previous year, and the average rate of tax for each of the said three previous years shall be calculated as if the total income so increased were the total income of that previous year; and the average of the average rates of tax so calculated for the three previous years shall, for the purposes of clause (a), be the rate of tax determined under this clause.
(6) In a case referred to in clause (e) of sub-rule (1), the Board may, having regard to the circumstances of the case, allow such relief as it deems fit.
_________________________
1 Substituted by IT (21st Amdt.) Rules, 2002 w.e.f 01.04.2002. Prior to substitution sub-rules (1) and (2) of Rule 21A read as under :
(1) Where, by reason of any portion of an asscssee's salary being paid in arrears or in advance or by reason of his having received in any one financial year salary for more than twelve months or a payment which under the provisions of clause (3) of section 17 is a profit in lieu of salary, his income is assessed at a rate higher than that at which it would otherwise have been assessed, the relief to be granted under sub-section (1) of section 89 shall be--
(a) where any portion of the assessee's salary is received in arrears or in advance, in accordance with the provisions of sub-rule (2);
(b) where the payment is in the nature of gratuity in respect of past services of the assessee extending over a period of not less than five years, in accordance with the provisions of sub-rule (3);
(c) where the payment is in the nature of compensation received by the assessee from his employer or former employer at or in connection with the termination of his employment after continuous service for not less than three years and where the unexpired portion of his term of employment is also not less than three years, in accordance with the provisions of sub-rule (4);
(d) where the payment is in commutation of pension, in accordance with the provisions of sub-rule (5); and
(e) where the payment is not in the nature of salary paid in arrears or in advance or gratuity in respect of past services or compensation received at or in connection with the termination of employment or in commutation of pension, in accordance with the provisions of sub-rule (6).
(2) (a) In a case referred to in clause (a) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the salary is received in arrears or in .advance (such salary and such previous year being hereafter in this sub-rule referred to respectively as the additional salary and the relevant previous year) shall be reduced by the amount, if any, by which the tax on the additional salary, calculated in the manner specified in clause (b), exceeds the tax or the aggregate tax on the additional salary, calculated in the manner specified in clause (c) or clause (d), as the case may be.
(b) Tax shall be calculated on the total income of the relevant previous year as reduced by the additional salary, as if the total income so reduced were the total income of the assessee, and the amount by which the tax so calculated falls short of the tax on the total income before such reduction shall, for the purposes of clause (a), be taken to be the tax on the additional salary under this clause.
(c) Where the additional salary relates to only one previous year, tax shall be calculated on the total income of the said previous year as increased by the additional salary, as if the total income so increased were the total income of the assessee, and the amount by which the tax so calculated exceeds the lax payable by the assessee in respect of the total income of the said previous year shall, for the purposes of clause (a), be taken to be the tax on the additional salary under this clause.
(d) Where the additional salary relates to more than one previous year,--
(i) the previous years to which the additional salary relates and the amount relating to each such previous year shall first be ascertained;
(ii) tax shall, then, be calculated on the total income of each such previous year as increased by the amount relating to such previous year ascertained under sub-clause (i), as if the total income so increased were the total income of that previous year, and
the amount by which the aggregate amount of tax in respect of the aforesaid previous years as calculated under sub-clause (ii) exceeds the aggregate amount of tax payable by the assessee in respect of the total income of the said previous years shall, for the purposes of clause (a), be taken to be the aggregate tax on the additional salary under this clause.
Where the assessee, being a Government servant or an employee in a company, co-operative society, local authority, university, institution, association or body, is entitled to relief under sub-section (1) of section 89, he may furnish to the person responsible for making the payment referred to in sub-section (1) of section 192, the particulars specified in Form No. 10E.
2[(1) Subject to the provisions of sub-rule (2), for the purposes of sub-section (5) of section 90 and sub-section (5) of section 90A, the following information shall be provided by an assessee in Form No. 10F, namely:-
(i) Status (individual, company, firm etc.) of the assessee;
(ii) Nationality (in case of an individual) or country or specified territory of incorporation or registration (in case of others);
(iii) Assessee's tax identification number in the country or specified territory of residence and in case there is no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory of which the asseessee claims to be a resident;
(iv) Period for which the residential status, as mentioned in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A, is applicable; and
(v) Address of the assessee in the country or specified territory outside India, during the period for which the certificate, as mentioned in (iv) above, is applicable.
(2) The assessee may not be required to provide the information or any part thereof referred to in sub-rule (1) if the information or the part thereof, as the case may be, is contained in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A.
(2A) The assessee shall keep and maintain such documents as are necessary to substantiate the information provided under sub-rule (1) and an income-tax authority may require the assessee to provide the said documents in relation to a claim by the said assessee of any relief under an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A, as the case may be.]
(3) An assessee, being a resident in India, shall, for obtaining a certificate of residence for the purposes of an agreement referred to in section 90 and section 90A, make an application in Form No. 10FA to the Assessing Officer.
(4) The Assessing Officer on receipt of an application referred to in sub-rule (3) and being satisfied in this behalf, shall issue a certificate of residence in respect of the assessee in Form No. 10FB.]
_________________________
1. Inserted by the Income-tax (12th Amendment) Rules, 2012 vide Notification No. 39/2012 dated 17.09.2012 w.e.f. 01.04.2013 for the following :-
2. Substituted by the Income-Tax (Eleventh Amendment) Rules, 2013 vide Notification No. 57/2013 dated 01.08.2013 w.e.f. 01.04.2013 for the following : -
"(1) The certificate referred to in sub-section (4) of section 90 and sub-section (4) of section 90A to be obtained by an assessee, not being a resident in India, from the Government of the country or the specified territory shall contain the following particulars, namely:-
(i) Name of the assessee;
(ii) Status (individual, company, firm etc.) of the assessee;
(iii) Nationality (in case of individual);
(iv) Country or specified territory of incorporation or registration (in case of others);
(v) Assessee's tax identification number in the country or specified territory of residence or in case no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory;
(vi) Residential status for the purposes of tax;
(vii) Period for which the certificate is applicable; and
(viii) Address of the applicant for the period for which the certificate is applicable;
(2) The certificate referred to in sub-rule (1) shall be duly verified by the Government of the country or the specified territory of which the assessee, referred to in sub-rule (1), claims to be a resident for the purposes of tax."
(1) For the purposes of clause (a) of sub-section (3) of section 94A, the authorisation to be submitted by the assessee, shall be in Form No. 10 FC.
(2) The assessee shall cause the first copy of the duly filled Form No. 10FC to be deposited with or transmitted to the financial institution referred to in clause (a) of sub-section (3) of section 94A.
(3) The second copy of the Form No. 10FC along with the evidence of the first copy of said Form having been deposited or transmitted to the financial institution shall be submitted by the assessee to the Assessing Officer having jurisdiction over him.
(4) For the purpose of ensuring that the authorisation in Form No. 10FC is legally enforceable, the assessee shall take all necessary steps as are required under any law for the time being in force in India or outside India.
(5) For the purposes of clause (b) of sub-section (3) of section 94A, the assessee who has entered into a transaction with a person located in a notified jurisdictional area (hereinafter referred to as the specified person) shall, in addition to information and documents referred to in sub-rule (1) of rule 10D, keep and maintain the following information and documents, namely:-
(a) a description of the ownership structure of the specified person, including name and address of individuals or other entities, whether located in the notified jurisdictional area or outside, having directly or indirectly more than ten per cent. shareholding or ownership interests;
(b) a profile of the multinational group of which the specified person is a part along with the name, address, legal status and country of tax residence of each of the enterprises comprised in the group with whom the assessee has entered into a transaction, and ownership linkage among them;
(c) a broad description of the business of the specified person and the industry it operates in;
(d) any other information, data or document, which may be relevant for the transaction with the specified person.
(6) The information and documents specified in sub-rule (5) shall be for the period upto the due date of filing of return of income under sub-section (1) of section 139.
(7) The information and documents specified in sub-rule (5) shall be kept and maintained for a period of eight years from the end of the relevant assessment year.]
________________________
1. Inserted by the Income-tax (8th Amendment) Rules, 2013 vide Notification No. 47/2013 dated 26.06.2013.
(1) An application for registration of a firm for the purposes of the Act shall be made in accordance with the provisions of sub-rules (2) to (5).
(2) Where the application is made before the end of the relvant previos year
(i) and where no change in the constitution of the firm or the shares of the partners has taken place during the previous year before the date of the application
(a) the application shall be made in Form No. 11; and
(b) It shall be accompanied by the original instrument evidencing the partnership at the date of the application together with a copy thereof. A certified copy of the instrument together with a duplicate copy thereof may be attached to the application if, for sufficient reason, the original instrument cannot be produced;
(ii) and where any change or changes in the constitution of the firm or the shares of the partners have taken place during the previous year before the date of the application
(a) The application shall be made in Form No. 11A; and
(b) It shall be accompanied by the original instrument or instruments, evidencing the partnership as in existence from time to time during the previous year up to the date of the application together with copies thereof. A certified copy of the instrument or instruments together with a duplicate copy thereof may be attached to the application if, for sufficient reason, the original instrument or instruments cannot be produced.
(3) Where after the date of making an application under sub-rule (2), any change or changes in the constitution of the firm or the shares of the partners have taken place during the previous year, a fresh application shall be made after each such change takes place in accordance with the provisions of sub-clauses (a) and (b) of clause (ii) of sub-rule (2) and the time-limit prescribed in sub-section (4)f section 184 shall apply to each such application.
(4) Where the application is made after the end of the relevant previous year
(i) and where no change in the constitution of the firm or the shares of the partners has taken place during the said previous year and up to the date of the application, the application shall be made in accordance with the provisions of sub-clauses (a) and (b) of clause (i) of sub-rule (2);
(ii) and where any change or changes in the constitution of the firm or the shares of the partners have taken place during the said previous year and/or after the end of the previous year but before the date of the application--
(a) The application shall be made in Form No. 11A; and
(b) It shall be accompanied by the original instrument or instruments evidencing the partnership as in existence from time to time during the previous year and up to the date of the application together with copies thereof. A certified copy of the instrument or instruments together with a duplicate copy thereof may be attached to the application if, for sufficient reason, the original instrument or instruments cannot be produced.
(5) The application shall be signed personally by all the partners (not being minors) in the firm as constituted at the date of the application and, in the case of a dissolved firm, personally by all the persons (not being minors) who were partners in the firm immediately before its dissolution and by the legal representative of any such partner who is deceased so, however, that in the case of any partner who is absent from India or is a lunatic or an idiot, the application may be signed by any person duly authorised by him in this behalf, or, as the case may be, by a person entitled under law to represent him.
If after the date of the application, or of the last application where more than one application are made, for registration of a firm for any assessment year and before the assessment for that assessment year is completed by the Assessing Officer, so far as known to the firm, any change or changes take place in the constitution of the firm or the shares of the partners, the details of such change or changes shall be communicated by the firm to the Assessing Officer as soon as possible after each such change takes place.
The declaration to be furnished under sub-section (7) of section 184 shall be in Form No. 12 and shall be verified in the manner indicated therein and shall be signed by the persons concerned in accordance with sub-rule (5) of rule 22.
(1) The communication required to be made by any partner of a firm under clause (b) of the Explanation below sub-section (1) of section 185 shall be in Form No. 12A.
(2) The communication referred to in sub-rule (1) shall be made,--
(a) in a case where the firm has not been registered under section 184, before the end of the previous year for the assessment year in respect of which registration of the firm is sought:
Provided that where the registration is sought for the assessment year commencing on the 1st day of April, 1976, the communication may he made before the expiry of the time allowed under sub-section (1) or subsection (2) of section 139 (whether fixed originally or on extension) for furnishing the return of income for that assessment year;
(b) in a case where the registration of the firm has effect under sub-section (7) of section 184 for any assessment year, before the expiry of the time allowed under sub-section (1) or sub-section (2) of section 139 (whether fixed originally or on extension) for furnishing the return of income for that assessment year.
The certificate under sub-section (4) of section 185 shall be recorded on the last of the instruments evidencing the partnership during the relevant previous year (or on the certified copy submitted in lieu thereof) attached with the application for registration of the firm made in accordance with sub-rules (2) to (4) of rule 22.
For the purpose of deduction of tax at source on any income payable in foreign currency, the rate of exchange for the calculation of the value in rupees of such income payable to an assesses outside India shall be the telegraphic transfer buying rate of such currency as on the date on which the tax is required to be deducted at source under the provisions of Chapter XVII-B by the person responsible for paying such income.
Explanation: For the purposes of this rule, "telegraphic transfer buying rate", in relation to a foreign currency, means 1[the rate or rates of exchange] adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), for buying such currency 2[having regard to the guidelines specified from time to time by the Reserve Bank of India for buying such currency,] where such currency is made available to that bank through a telegraphic transfer.
__________________________
1. Substituted for the rate of exchange by the IT (First Amendment) Rules, 1993, w.e.f. 5-1-1993.
2. Inserted, by the IT (First Amendment) Rules, 1993, w.e.f. 5-1-1993.
(1) The assessee may furnish to the person responsible for making the payment referred to in sub-section (1) of section 192, the details of the income under the head "Salaries " due or received by him from the other employer or employers referred to in subsection (2) of that section and of any tax deducted at source from such income in Form No.12B.
(2) The person responsible for paying any income chargeable under the head "Salaries" shall furnish to the person to whom such payment is made, a statement giving correct and complete particulars of perquisites or profits in lieu of salary and the value there of in,-
(a) relevant columns provided in Form No. 16, if the amount of salary paid or payable to the employee is not more than one lakh and fifty thousand rupees; or
(b) 2[Form No. 12BA, if the amount of salary paid or payable to the employee is more than one lakh and fifty thousand rupees, which shall accompany the return of income of the employee.]
Explanation - 'Salary' for the purposes of this rule shall have the same meaning as given in rule 3.]
____________________________
1 Substituted by the I.T. (Twenty Second Amendment) Rules, 2001 w.e.f. 01.04.2001. Prior to substitution rule 26A read as under :
Furnishing of particulars of income under the head "Salaries" received from other employer(s) for deduction of tax at source. The assesses may furnish to the person responsible for making the payment referred to in sub-section (1) of section 192, the details of the income under the head "Salaries" due or received by him from the other employer or employers referred to in sub-section (2) of that section and of any tax deducted at source from such income in Form No. 12B.
2. Substituted by Income tax (25th Amdt) Rules, 2002 w.e.f. 01.06.2002. Prior to substitution it read as under ;
(b) in Form No.12BA , if the amount of salary paid or payable to the employee is more than one lakh and fifty thousand rupees.
1[(1) The assessee may send to the person responsible for making payment under sub-section (1) of section 192, a statement of any income chargeable under any head of income other than "Salaries" (not being a loss under any such had other than the loss under the head "Income from house property"), received by the assessee for the same financial year, and of any tax deducted on such income.
(2) A Verification in the following form shall be annexed to the statement referred to in sub-rule (1): -
FORM OF VERIFICATION
I,.................. (name of the assessee), d declare that what is stated above is true to the best of my information and belief.]
__________________________
1. Substituted by Income-tax (Twenty-Fourth Amendment) Rules, 2003 w.e.f. 01.10.2003. Prior to substitution it read as under:
The assesses may send to the person responsible for making the payment referred to in sub-section (1) of section 192, the particulars of any income chargeable under any head of income other than "Salaries" (not being a loss under any such head other than the loss under the head "Income from house property"), received by the assesses for the same financial year, and of any tax deducted on such income in Form No. 12C.
The arrangements referred to in sections 194 and 236 to be made by a company for the declaration and payment of dividends (including dividends on preference shares) within India shall be as follows :
(1) The share-register of the company for all shareholders shall be regularly maintained at its principal place of business within India, in respect of any assessment year from a date not later than the 1st day of April of such year.
(2) The general meeting for passing the accounts of the previous year relevant to the assessment year and for declaring any dividends in respect thereof shall be held only at a place within India.
(3) The dividends declared, if any, shall be payable only within India to all shareholders.
(1) An application by a person 1[***] for a certificate under sub-section (1) of section 197 shall be made in Form No. 13.
(2) 5[***]
(3) 2[***]
3[***]
4[***]
________________________
1 Words , other than a company, omitted by the IT (Twentieth Amdt.) Rules, 1992, w.e.f. 23-12-1992.
2 Omitted by the IT (Tenth Amdt.) Rules, 1993, w.e.f. 16-6-1993. Prior to its omission sub-rule (3), as amended by the IT (Tird Amdt.) Rules, 1988, w.e.f. 9-6-1988, stood as under :
(3) An application by a person, other than a company, for a certificate under the second proviso to section 194 shall be made in Form No. 14.
3 Omitted by Income-tax (Twenty-Fourth Amendment) Rules, 2003 w.e.f. 01.10.2003. Prior to omission as Inserted by the IT (Twentieth Amdt.) Rules, 1992, w.e.f. 23-12-1992 read as under:
(4) An application by a person for a certificate under sub-section (2) of section 194G shall be made in Form No. 13D.
4 Omitted by Income-tax (Twenty-Fourth Amendment) Rules, 2003 w.e.f. 01.10.2003. Prior to omission as Inserted by the IT (Seventeenth Amdt.) Rules, 1995, w.e.f. 1-7-1995.
(5) An application by a person for a certificate under sub-section (2) of section 194J shall be made in Form No. 13E.
5. Substituted by Income-tax (Twenty-Fourth Amendment) Rules, 2003 w.e.f. 01.10.2003. Prior to omission it read as under:
"(2) An application by a contractor or a sub-contractor for a certificate under subsection (4) of section 194C in respect of income comprised in payments to contractors and sub-contractors shall be made in Form No. 13C."
Omitted by the IT (Third Amendment) Rules, 1996, w.e.f. 2-7-1996.
(1) Where the Assessing Officer, on an application made by a person under sub-rule (1) of rule 28 is satisfied that existing and estimated tax liability of a person justifies the deduction of tax at lower rate or no deduction of tax, as the case may be, the Assessing Officer shall issue a certificate in accordance with the provisions of sub-section (1) of section 197 for deduction of tax at such lower rate or no deduction of tax.
(2) The existing and estimated liability referred to in sub-rule (1) shall be determined by the Assessing Officer after taking into consideration the following:-
(i) tax payable on estimated income of the previous year relevant to the assessment year;
(ii) tax payable on the assessed or returned income, as the case may be, of the last three previous years;
(iii) existing liability under the Income-tax Act,1961 and Wealth-tax Act,1957;
(iv) advance tax payment for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28;
(v) tax deducted at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28; and
(vi) tax collected at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28.
(3) The certificate shall be valid for such period of the previous year as may be specified in the certificate, unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period.
(4) The certificate shall be valid only with regard to the person responsible for deducting the tax and named therein.
(5) The certificate shall be issued direct to the person responsible for deducting the tax under advice to the person who made an application for issue of such certificate.]
_________________________
1 Substituted for , other than a company, under sub-rule (1) of rule 28, may issue a certificate in accordance with the provisions of clause (a) of sub-section (1) of section 197 by the IT (Twentieth Amendment) Rules, 1992, w.e.f. 23-12-1992.
2 Words or sub-rule (3) omitted by the IT (Tenth Amendment) Rules, 1993, w.e.f. 16-6-1993.
3 Omitted by Income-tax (Twenty-Fourth Amendment) Rules, 2003 w.e.f. 01.10.2003. Prior to omission it read as under:
(5) The certificate shall be issued in Form No. 15AA.
4. Substituted by the Income tax (Second Amendment) Rules, 2011 vide Notification No. 16/2011 dated 29.03.2011 w.e.f. 01.04.2011 for the following : -
"28AA. -Certificate of no deduction of lax or deduction at lower rales from Income other than dividends.--
(i) The Assessing Officer, on an application made by a person 1[under sub-rule (1) of rule 28, may issue a certificate in accordance with the provisions of sub-section (1) of section 197 for deduction of lax at source at the rate or rales calculated in the manner specified below :
(i) at such average rate of tax as determined by the total lax payable on estimated income, as reduced by the sum of advance tax already paid and tax already deducted at source, as a percentage of the payment referred lo in section 197 for which the application under sub-rule (I) 2[***] of rule 28 has been made; or
(ii) at the average of the average rates of tax paid by the assessee in the last three years; whichever is higher.
(2) The certificale shall be valid for the assessment year to be specified in the certificate, unless it is cancelled by him at any time before the expiry of the specified period. An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate.
(3) The certificate shall be valid only for the person named therein.
(4) The certificate shall be issued direct to the person responsible for paying the income under advice to the applicant.
3[***]"
(1) Subject to the conditions specified in sub-rule (2), a person
(a) in receipt of income or deemed income derived from property held under trust wholly for charitable or religious purposes and who claims exemption under section 11 or section 12; or
(b) required to file a return in respect of a scientific research association, news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union referred to in sub-section (4C) of section 139, may make an application to the Assessing Officer for the grant of a certificate under sub-section (1) of section 197 authorizing him to receive incomes without deduction of tax at source.
(2) The conditions referred to in sub-rule (2) are the following, namely:-
(i) the person concerned has furnished the returns of income for all assessment years for which such returns became due on or before the date on which the application under sub-rule (1) is made;
(ii) the trust, scientific research association, news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union referred to in sub-rule (1) is for the time being approved for the purpose of exemption from income-tax; and
(iii) the applicant gives a list of deductors from whom amounts are to be received without deduction of tax at source every six months alongwith the names, addresses and the amounts received.
(3) An application for the certificate is to be made to the Assessing Officer in accordance with sub-rule (1) of rule 28.
(4) The Assessing Officer may issue a certificate authorizing payment of incomes without deduction of tax at source if he is satisfied that all the conditions laid down in sub-rule (2) are fulfilled and the issue of any such certificate will not be prejudicial to the interests of revenue.
(5) The applicant may furnish copies of certificate issued under subrule (4) to the person responsible for paying the income for the purpose of no deduction of tax at source.
(6) The certificate shall be valid for the financial year specified therein unless it is cancelled by the Assessing Officer at any time before the expiry of the said financial year.
(7) An application for a fresh certificate may be made, if the assessee so desires, after the expiry of the period of validity of the earlier certificate.]
____________________________
1. Inserted vide Income-tax (Third Amendment) Rules, 2004 w.e.f. 01.04.2004.
1(1) The Assessing Officer, on being satisfied that the total income of the shareholder justifies the deduction of income-tax at any lower rates or no deduction of income-tax, as the case may be, shall, on an application made under sub-rule (1) of rule 28 by the assessee, give him a certificate authorising the payment of a dividend to him, under sub-section (1) of section 197, without deduction of tax or, as the case may be, after deduction of tax at rates lower than the rates in force only if the following conditions are satisfied, namely :
(a) The shares in respect of which the certificate is sought for by him
(i) are shares in public companies; and
(ii) stand in his name and are beneficially owned by him, and the dividends therefrom are not includible in the total income of any other person under sections 60 to 64, or stand in his name and are held by him under trust wholly for charitable or religious purposes, and the dividends therefrom 2[are exempt from tax under the provisions of sections 11 to 31]
(b) An application for the certificate is made to the Assessing Officer in accordance with sub-rule (1) of rule 28.
(2) The certificate shall be valid for such period (not exceeding three years from the date of certificate), as the Assessing Officer may specify therein, unless it is cancelled by him at any time before the expiry of the specified period. An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate.
(3) The certificate shall be valid only for the person named therein, and shall cease to be operative from the date of notice to the company of the transfer of any of the shares mentioned therein to another person, in respect of the shares so transferred.
(4) The certificate shall be issued direct to the principal officer of the company under advice to the applicant shareholder.
3[***]
_____________________________
1 Substituted for the words beginning with The Assessing Officer and ending with the word namely: by the IT (Tenth Amendment) Rules, 1993, w.e.f. 16-6-1993. Prior to their substitution, the said words read as under :
The Assessing Officer may give a certificate authorising the payment of a dividend,-
(i) to a shareholder, other than a company, under the second proviso to section 194,
(ii) to a shareholder, being a non-resident, under sub-section (1) of section 197,
without deduction of tax or, as the case may be, after deduction of tax at rates lower than the rates in force only if the following conditions are satisfied, namely :These words were earlier amended from time to time by the IT (Amendment) Rules, 1967, IT (Sixth Amendment) Rules, 1977, w.e.f. 1-10-1977 and IT (Third Amendment) Rules, 1988, w.e.f. 9-6-1988.
2 Substituted for qualify for deduction under the provisions of section 82F by the IT (Twentieth Amendment) Rules, 1992, w.e.f. 23-12-1992.
3 Omitted by Income-tax (Twenty-Fourth Amendment) Rules, 2003 w.e.f. 01.10.2003. Prior to omission it read as under:
(5) The certificate shall be issued in Form No. 15.
(1) The certificate referred to in sub-section (4) of section 80QQB, sub-section (3) of section 80RRB, sections 80R, 80RR and 80RRA shall be in Form No. 10H.
(2) For the purpose of sub-section (4) of section 80QQB and sub-section (3) of Section 80RRB, the prescribed authority shall be the Reserve Bank of India or such other authority as is authorised under any law for the time being in force for regulating payments and dealings in foreign exchange.;
________________________________
1 Substituted by IT (19thh Amendment) Rules, 2003 w.r.e.f. 01.04.2003. Prior to substitution it read as under:
"29A [Form of certification to be filled with the return of Income for claiming deduction under sections 80R, 80RR and 80RRA.--
The certificate referred to in sections 80R, 80RR and 80RRA shall be in Form No. 10H.]"
The certificate referred to in second proviso lo section 80-O shall be in Form No. 10HA.]
________________________________
1. Inserted by the IT (Eleventh Amendment) Rules, 1999, w.e.f. 1-6-1999.
(1) Any person entitled to receive any interest, or other sum, on which income-tax has to be deducted under sub-section (1) of section 195 may, if he fulfils the conditions specified in sub-rule (2), make an application for the grant of a certificate under sub-section (3) of section 195 authorizing him to receive without deduction of tax under sub-section (1) of that section any such income as is specified here in below, namely:--
(i) where the person concerned is a banking company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India, and which carries on operations in India through a branch, any income by way of interest, not being "interest on securities", or any other sum, not being dividends;
(ii) in the case of any other person who carries on a business or profession in India through a branch, any sum, not being interest or dividends, in so far as such interest or other sum is receivable by such branch on its own account and not on behalf of its head office or any branch situated outside India, or any other person.
(2) The conditions referred to in sub-rule (1) are the following, namely :--
(i) the person concerned has been regularly assessed to income-tax in India and has furnished the returns of income for all assessment years for which such returns became due on or before the date on which the application under sub-rule (1) is made;
(ii) he is not in default or deemed to be in default in respect of any tax (including advance tax and tax payable under section 140A), interest, penalty, fine, or any other sum payable under the Act;
(iii) he has not been subjected to penalty under clause (iii) of sub-section (1) of section 271;
(iv) where the person concerned is not a banking company referred to in clause (i) of sub-rule (1)--
(a) he has been carrying on business or profession in India continuously for a period of not less than five years immediately preceding the date of the application, and
(b) the value of the fixed assets in India of such business or profession as shown in his books for the previous year which ended immediately before the date of the application or, where the accounts in respect of such previous year have not been made up before the said date, the previous year immediately preceding that year, exceeds fifty lakhs of rupees.
(3) The application under sub-rule (1) by a banking company shall be in Form No. 15C and by any other person referred to in clause (ii) of sub-rule (1) shall be in Form No. 15D.
(4) The Assessing Officer may give a certificate authorising the person concerned to receive the income specified in clause (i) or clause (ii) of sub-rule (1), without deduction of tax under sub-section (1) of section 195, if he is satisfied that all the conditions laid down in sub-rule (2) are fulfilled and the issue of any such certificate will not be prejudicial to the interests of revenue.
(5) The certificate shall be valid for the financial year specified therein, unless it is cancelled by the Assessing Officer at any time before the expiry of the said financial year. An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate, or within three months before the expiry thereof.
1[***]
___________________________
1. Omitted by Income-tax (Twenty-Fourth Amendment) Rules, 2003 w.e.f. 01.10.2003. Prior to omission it read as under:
(6) The certificate shall be in Form No.15E.
(1) A declaration under sub-section (1) by an individual or under sub-section (1A) of section 197A by a person (not being a company or firm) shall be in Form No. 15G and shall be verified in the manner indicated therein.
8[(1A) A declaration under sub-section (1C) of section 197A by an individual resident in India, who is of the age of sixty-five years or mores at any time during the previous year and is entitled to a deduction from the amount of income-tax on his total income referred to in section 88B shall be in Form No. 15H and shall be verified in the manner indicated therein.]
(2) The declaration referred to in sub-rule (1) 8[or sub-rule (1A)] shall be furnished in duplicate to the person responsible for paying the "interest on securities" or dividend or interest other than "interest on securities" or, income in respect of units or, as the case may be, any amount referred to in clause (a) of sub-section (2) of section 80CCA.
(3) The person referred to in sub-rule (2) shall deliver or cause to be delivered to the Chief Commissioner or Commissioner, one copy of the declaration referred to in sub-rule (1) 8[or sub-rule (1A)] on or before the seventh day of the month next following the month in which the declaration is furnished to him.
Explanation: For the purposes of sub-rule (3), the Chief Commissioner or the Commissioner means the Chief Commissioner or Commissioner to whom the Assessing Officer having jurisdiction to assess the person referred to in sub-rule (2) is subordinate.]
................................................
7 Subsituted by IT(Eighth Amendment) Rules 2003 w.e.f. 09.06.2003. Prior to its substitution, Rule 29C read as under:
29C. - Declaration by person claiming receipt of certain incomes without deduction of tax. 1(1) Omitted by the IT (Thirty-second Amendment) Rules, 1999, w.e.f. 19-11-1999.
(2) A declaration under sub-section (1) of section 197A by an individual, who is resident in India, for payment of dividend without deduction of tax under section 194 shall be in Form No. 15G and shall be verified in the manner indicated therein.
2[(3) A declaration under sub-section (1 A) of section 197A by a person (not being a company or firm) for payment, without deduction of tax at source, of interest on securities under section 193, interest other than "interest on securities" under section 194A or income in respect of units under section 194K, as the case may be, shall be in Form No. 15H and shall be verified in the manner indicated therein.]
3[(3A) A declaration under sub-section (1) of section 197A by an individual, being resident in India, for payment of any amount referred to in clause (a) of sub-section (2) of section 80CCA without deduction of tax under section 194EE shall be in Form No.15-I and shall be verified in the manner indicated therein.]
(4) The declaration referred to in sub-rule (1) or sub-rule (2) or sub-rule (3) or sub-rule (3A) shall be furnished in duplicate to the person responsible for paying the "interest on securities" or dividend or 4[interest other than "interest on securities" or, 5[income in respect of units], as the case may be, any amount referred to in clause (a) of sub-section (2) of section 80CCA.
(5) The person referred to in sub-rule (4) shall deliver or cause to be delivered to the Chief Commissioner or Commissioner one copy of the declaration referred to in sub-rule (1) or sub-rule (2) or 6[sub-rule (3) or, as the case may be, sub-rule (3A)] on or before the seventh day of the month next following the month in which the declaration is furnished to him.
Explanation: For the purposes of sub-rule (5), Chief Commissioner or Commissioner means the Chief Commissioner or Commissioner to whom the Assessing Officer having jurisdiction to assess the person referred to in sub-rule (4) is subordinate.
8. Inserted by Income-Tax (14th Amendment) Rules, 2003 w.e.f. 01.08.2003
(1) The declaration under the second proviso to clause(i) of sub-section (3) of section 194C by a subcontractor shall be in Form No.15-I and shall be verified in the manner indicated therein by such subcontractor.
(2) The declaration referred to in sub-rule (1) may be furnished to the contractor responsible for paying or crediting any sum to the account of the sub-contractor before the event of such sum being credited or paid to such sub-contactor.
(3) The particulars under the third proviso to clause (i) of sub-section (3) of section 194C to be furnished by a contractor responsible for paying any sum to such sub-contractor shall be in Form No. 15J.
(4) The particulars referred to in sub-rule (3) shall be furnished,-
(i) to the Commissioner of Income-tax, so designated by the Chief Commissioner of Income-tax; within whose area of jurisdiction, the office of the contractor referred to in sub-rule (3) is situated:
(ii) on or before the 30th June following the financial year.]
................................................
9. Inserted by IT (14th Amendment) Rules, 2005.
(1) All sums deducted in accordance with the provisions of Chapter XVII-B by an office of the Government shall be paid to the credit of the Central Government -
(a) on the same day where the tax is paid without production of an income-tax challan; and
(b) on or before seven days from the end of the month in which the deduction is made or income-tax is due under sub-section (1A) of section 192, where tax is paid accompanied by an income-tax challan.
(2) All sums deducted in accordance with the provisions of Chapter XVII-B by deductors other than an office of the Government shall be paid to the credit of the Central Government -
(a) on or before 30th day of April where the income or amount is credited or paid in the month of March; and
(b) in any other case, on or before seven days from the end of the month in which-
(i) the deduction is made; or
(ii) income-tax is due under sub-section (1A) of section 192.
(3) Notwithstanding anything contained in sub-rule (2), in special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of the Table below by the date referred to in column (3) of the said Table:-
Table
Sl. No. Quarter of the Financial Year ended on Date for quarterly payment
(1) (2) (3)
1. 30th June 7th July
2. 30th September 7th October
3. 31st December 7th January
4. 31st March 30th April.
B.- Mode of payment
(4) In the case of an office of the Government, where tax has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person by whatever name called to whom the deductor reports the tax so deducted and who is responsible for crediting such sum to the credit of the Central Government, shall-
(a) submit a statement in Form No. 24G within ten days from the end of the month to the agency authorised by the Director General of Income-tax (Systems) in respect of tax deducted by the deductors and reported to him for that month; and
(b) intimate the number (hereinafter referred to as the Book Identification Number) generated by the agency to each of the deductors in respect of whom the sum deducted has been credited.
(5) For the purpose of sub-rule (4), the Director General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data, and shall also be responsible for the day-to-day administration in relation to furnishing the information in the manner so specified.
(6) (i) Where tax has been deposited accompanied by an income-tax challan, the amount of tax so deducted or collected shall be deposited to the credit of the Central Government by remitting it within the time specified in clause (b) of sub-rule (1) or in sub-rule (2) or in sub-rule (3) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorised bank;
(ii) Where tax is to be deposited in accordance with clause (i), by persons referred to in sub-rule (1) of rule 125, the amount deducted shall be electronically remitted into the Reserve Bank of India or the State Bank of India or any authorised bank accompanied by an electronic income-tax challan.
(7) For the purpose of this rule, the amount shall be construed as electronically remitted to the Reserve Bank of India or to the State Bank of India or to any authorised bank, if the amount is remitted by way of-
(a) internet banking facility of the Reserve Bank of India or of the State Bank of India or of any authorised bank; or
(b) debit card.
(8) Where tax is deducted before the 1st day of April, 2010, the provisions of this rule shall apply as they stood immediately before their substitution by the Income-tax (40[6th] Amendment) Rules, 2010.]
...................................................
39. Substituted by the Income tax (sixth Amendment) Rules, 2010 vide Notification No. 41/2010 dated 31.05.2010 w.e.f. 01.04.2010 previous text was : -
"38[30. Time and mode of payment to Government account of tax deducted at source or tax paid under sub-section (1A) of section 192.--
(1) All sums deducted in accordance with the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, section 194LA, section 195, section 196A, section 196B, section 196C and section 196D shall be paid to the credit of the Central Government-
(a) in the case of deduction by or on behalf of the Government, on the same day;
(b) in the case of deduction by or on behalf of persons other than those mentioned in clause (a),-
(i) in respect of sums deducted in accordance with the provisions of section 193, section 194A, section 194C, section 194D, section 194E, section 194G, section 194H, section 194-I, section 194J, section 195, section 196A, section 196B, section 196C and section 196D-
(1) where the income by way of interest on securities referred to in section 193 or the income by way of interest referred to in section 194A or the sum referred to in section 194C or the income by way of insurance commission referred to in section 194D or the payment to non-resident sportsmen or sports associations referred to in section 194E or the income by way of commission, remuneration or prize on sale of lottery tickets referred to in section 194G or the income by way of commission or brokerage referred to in section 194H or the income by way of rent referred to in section 194-I or the income by way of fees for professional or technical services referred to in section 194J or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in sub-section (2) of section 196A or the income from units referred to in section 196B or the income from foreign currency bonds or shares of an Indian company referred to in section 196C or the income of Foreign Institutional Investors from securities referred to in section 196D is credited by a person to the account of the payee as on the date up to which the accounts of such person are made, within two months of the expiration of the month in which that date falls;
(2) in any other case, within one week from the last day of the month in which the deduction is made; and
(ii) in respect of sums deducted in accordance with the other provisions within one week from the last day of the month in which the deduction is made:
Provided that the Assessing Officer may, in special cases, and with the approval of the Joint Commissioner-
(a) in cases falling under sub-clause (i), permit any person to pay the income-tax deducted from any income by way of interest, other than income by way of interest on securities or any income by way of insurance commission or any income by way of commission or brokerage referred to in section 194H quarterly on July 15, October 15, January 15 and April 15; and
(b) in cases falling under sub-clause (ii), permit an employer to pay income-tax deducted from any income chargeable under the head Salaries quarterly on June 15, September 15, December 15 and March 15.
(1A) All sums paid under sub-section (1A) of section 192 shall be paid to the credit of the Central Government-
(a) in the case of payment on behalf of the Government, on the same day;
(b) in all other cases, within one week from the last day of each month on which the income-tax is due under sub-section (1B) of section 192.
(2) The person responsible for making the deduction from any income chargeable under the head Salaries or, the person who pays tax, referred to in sub-section (1A) of section 192 or, in cases covered by sub-section (5) of section 192, the trustees shall pay the amount of tax so deducted to the credit of the Central Government by remitting it within the time prescribed in sub-rule (1) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorized bank accompanied by an income-tax challan :
Provided that where the deduction or payment, as the case may be, is made by or on behalf of Government, the amounts shall be credited within the time and in the manner aforesaid without the production of a challan.
(3) The person responsible for making deduction under sections 193, 194, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194F, 194G, 194H, 194-I, 194J, 194K, 195, 196A, 196B, 196C and 196D shall pay the amount of tax so deducted to the credit of the Central Government by remitting it within the time prescribed in sub-rule (1) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorized bank accompanied by an income-tax challan, provided that where the deduction is made by or on behalf of Government the amount shall be credited within the time and in the manner aforesaid without the production of a challan.]"
38. Substituted by the Income tax (first Amendment) Rules, 2010 vide Notification No. 9/2010 dated 18.02.2010 w.e.f. 01.04.2009 previous text was : -
"37[30. Time and mode of payment to Government account of tax deducted at source or tax paid under Chapter XVII-B.--
(1) All sums deducted in accordance with the provisions of Chapter XVII-B shall be paid to the credit of the Central Government
(a) within two months from the end of the month in which the amount is credited by the payer to the account of the payee if the crediting is on the date up to which the accounts of the payer are made; and
(b) in any other case, within one week from the end of the month in which the-
(i) deduction is made; or
(ii) income-tax is due under sub-section (1A) of section 192.
(2) Notwithstanding anything contained in sub-rule (1), the Assessing Officer may permit, in special cases, -
(a) quarterly payment of the amount on June 15, September 15, December 15 and March 15 if the amount is deducted from any income chargeable under the head Salaries; and
(b) quarterly payment of the amount on July 15, October 15, January 15 and April 15 if the amount is deducted from any income by way of-
(i) interest, other than interest on securities;
(ii) insurance commission; or
(iii) commission or brokerage referred to in section 194H.
(3) No permission under sub-rule (2) shall be granted without the prior approval of the Joint Commissioner.
(4) The person responsible for making deduction, or payment of tax, under Chapter XVII-B shall, within the time specified in sub-rule (1), or sub-rule (2), -
(a) electronically furnish an income-tax challan in Form No.17; and
(b) pay the amount so deducted to the credit of the Central Government by electronically remitting it into the Reserve Bank of India, State Bank of India or any authorised bank.
(5) For the purposes of this rule, the amount shall be construed as electronically remitted to the Reserve Bank of India or of the State Bank of India or of any authorised bank, if the amount is remitted by way of
(a) internet banking facility of the Reserve Bank of India or of the State Bank of India or of any authorised bank; or
(b) credit or debit card.]"
37. Substituted by the Income-tax Eighth Amendment Rules 2009 vide notification No. 31/2009 dated 25.03.2009 Effective date of Substituted Rules amended to 1st July 2009 instead of 1st April 2009 vide notification Press Release from file No. 402/92/2006-MC (11 of 2009) Dated 11.05.2009.
"30.- Time and mode of payment to Government account of 32[tax deducted at source or tax paid under Sub-section (1A) of Section 192].
35[(1) All sums deducted in accordance with the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, 36[section 194LA], section 195, section 196A, section 196B, section 196C and section 196D shall be paid to the credit of the Central Government--
(a) in the case of deduction by or on behalf of the Government, on the same day;
(b) in the case of deduction by or on behalf of persons other than those mentioned in clause (a),-
(i) in respect of sums deducted in accordance with the provisions of section 193, section 194A, section 194C, section 194D, section 194E, section 194G, section 194H, section 194-I, section 194J, section 195, section 196A, section 196B, section 196C and section 196D
(1) where the income by way of interest on securities referred to in section 193 or the income by way of interest referred to in section 194A or the sum referred to in section 194C or the income by way of insurance commission referred to in section 194D or the payment to non-resident sportsmen or sports associations referred to in section 194E or the income by way of commission, remuneration or prize on sale of lottery tickets referred to in section 194G or the income by way of commission or brokerage referred to in section 194H or the income by way of rent referred to in section 194-I or the income by way of fees for professional or technical services referred to in section 194J or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in sub-section (2) of section 196A or the income from units referred to in section 196B or the income from foreign currency bonds or shares of an Indian company referred to in section 196C or the income of Foreign Institutional Investors from securities referred to in section 196D is credited by a person to the account of the payee as on the date up to which the accounts of such person are made, within two months of the expiration of the month in which that date falls;
(2) in any other case, within one week from the last day of the month in which the deduction is made; and
(ii) in respect of sums deducted in accordance with the other provisions within one week from the last day of the month in which the deduction is made :
Provided that the Assessing Officer may, in special cases, and with the approval of the Joint Commissioner-
(a) in cases falling under sub-clause (i), permit any person to pay the income-tax deducted from any income by way of interest, other than income by way of interest on securities or any income by way of insurance commission or any income by way of commission or brokerage referred to in section 194H quarterly on July 15, October 15, January 15 and April 15; and
(b) in cases falling under sub-clause (ii), permit an employer to pay income-tax deducted from any income chargeable under the head "Salaries" quarterly on June 15, September 15, December 15 and March 15.]
33[(1A) All sums paid under Sub-section (1A) of section 192 shall be paid to the credit of the Central Government--
(a) in the case of payment on behalf of the Government, on the same day;
(b) in all other cases, within one week from the last day of each month on which the income-tax is due under subsection (1 B) of section 192;]
(2) The person responsible for making the deduction from any income chargeable under the head "Salaries" or, 33[the person who pays tax, referred to in sub-section (1 A) of section 192 or] in cases covered by sub-section (5) of section 192, the trustees shall pay the amount of tax so deducted to the credit of the Central Government by remitting it within the time prescribed in sub-rule (1) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorised bank accompanied by an income-tax challan 22[***]:
23[***]
Provided 24[***] that where the 34[deduction or payment, as the case may be,] is made by or on behalf of Government, the amounts shall be credited within the time and in the manner aforesaid without the production of a challan.
(3) The person responsible for making deduction under sections 193, 194, 194A, 194B, 194BB, 194C, 25[194D, 194E, 26[194EE, 194F, 194G, 194H, 27[194-I,] 28[194J, 194K,] 195, 196A 29[,196B 30[,196C and 196D]]]]] shall pay the amount of tax so deducted to the credit of the Central Government by remitting it within the time prescribed in sub-rule (1) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorised bank accompanied by an income-tax challan, 31[***] provided that where the deduction is made by or on behalf of Government the amount shall be credited within the time and in the manner aforesaid without the production of a challan."
32 Substituted for tax deducted at source by IT (25th Amdt) Rules, 2002 w.r.e.f. 01.06.2002.
33 Inserted by IT (25th Amdt) Rules, 2002 w.r.e.f. 01.06.2002.
34 Substituted for word deduction by IT (25th Amdt) Rules, 2002 w.r.e.f. 01.06.2002.
35 Substituted by Income-Tax (12th Amendment) Rules, 2003 w.e.f. 31.07.2003. Prior to substitution sub-rule (1) read as under:
(1) All sums deducted in accordance with the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C] 1[section 194D, section 194E, 2[section 194EE, section 194F, section 194G, section 194H, 3[section 194-I,] 4[section 194J, section 194K,] section 195, section 196A 5[section 196B 6[section 196C and section 196D]]]] shall be paid to the credit of the Central Government--
(a) in the case of deduction by or on behalf of the Government, on the same day;
(b) in all other cases,--
(i) in respect of sums deducted in accordance with the provisions of section 193, section 194A, section 194C, 7[section 194D section 194E, 8[section 194G, section 194H, 9[section 194-I,] 10[section 194J, section 194K,] section 195, section 196A 11[, section 196B 12[section 196C and section 196D]]]]]--
(1) 13[where the income by way of interest on securities referred to in section 193 or the income by way of interest referred to in section 194A or the sum referred to in section 194C or the income by way of insurance commission referred to in section 194D] 14[or the payment to non-resident sportsmen or sports associations referred to in section 194E 15[or the income by way of commission, remuneration or prize on sale of lottery tickets referred to in section 194G or the income by way of commission or brokerage referred to in section 194H 9[or the income by way of rent referred to in section 194-I] 10[or the income by way of fees for professional or technical services referred to in section 194J] or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in sub-section (2) of section 196A or the income from units referred to in section 196B 16[or the income from foreign currency bonds or shares of an Indian company referred to in section 196C 17[or the income of Foreign Institutional Investors from securities referred to in section 196D]]]] is credited by a person 18[to the account of the payee as on the date up to which the accounts of such person] are made, within two months of the expiration of the month in which that date falls;
(2) in any other case, within one week from the last day of the month in which the deduction is made; and]
(ii) in respect of sums deducted in accordance with the other provisions, 19[***] within one week from the date of such deduction :
Provided that the Assessing Officer may, in special cases, and with the approval of the Deputy Commissioner
(a) in cases falling under clause (i). permit any person to pay the income-tax deducted from any income by way of interest, other than 20[income by way of interest on securities] 21or any income by way of insurance commission or any income by way of commission or brokerage referred to in section 194H quarterly on July 15, October 15, January 15 and April 15, and
(b) in cases falling under clause (ii), permit an employer to pay income-tax deducted from any income chargeable under the head "Salaries" quarterly on June 15, September 15, December 15 and March 15.]
1 Substituted for ,section 194D and section 195 by the IT (Sixth Amdt.) Rules, 1991, w.e.f. 28-2-1991.
2 Substituted for section 195 and section 196A by the IT (Eleventh Amdt. ) Rules, 1991, w.e.f. 1-10-1991.
3 Inserted by the IT (Fourth Amdt.) Rules, 1994, w.e.f. 1-6-1994.
4 Inserted by the IT (Twelfth Amdt.) Rules 1995, w.e.f. 1-7-1995.
5 Substituted for and section 196B by the IT (Eleventh Amdt.) Rules, 1992, w.e.f. 1-6-1992.
6 Substituted for and section 196 by the IT (Tenth Amdt.) Rules, 1993, w.e.f. 16-6-1993.
7 Substituted for section 194D and section 195 by the IT (Sixth Amdt.) Rules, 1991, w.e.f.
28-2-1991. Earlier it was amended by the IT (Twelfth Amdt.) Rules, 1990, w.e.f. 8-6-1990.
8 Substituted for section 195 and section 196A by the IT (Eleventh Amdt.) Rules, 1991, w.e.f. 1-10-1991.
9 Inserted by the IT (Fourth Amdt.) Rules, 1994, w.e.f. 1-6-1994.
10 Inserted by the IT (Twelfth Amdt.) Rules, 1995, w.e.f. 1-7-1995.
11 Substituted for and section 196B by the IT (Eleventh Amdt.) Rules, 1992, w.e.f. 1-6-1992.
12 Substituted for and section 196C by the IT (Tenth Amdt.) Rules, 1993, w.e.f. 16-6-1993.
13 Substituted for where the income by way of interest referred to in section 194A or the sum referred to in section 194C or the income by way of insurance commission referred to in section 194D by the IT (Twelfth Amdt.) Rules, 1990, w.e.f. 8-6-1990.
14 Substituted for or the interest or any other sum referred to in section 195 by the IT (Sixth Amdt.) Rules, 1991, w.e.f. 28-2-1991.
15 Substituted for or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in sub-section (2) of section 196A by the IT (Eleventh Amdt.) Rules, 1991, w.e.f. 1-10-1991.
16 Inserted by the IT (Eleventh Amdt.) Rules, 1992, w.e.f. 1-6-1992.
17 Inserted by the IT (Tenth Amdt.) Rules, 1993, w.e.f. 16-6-1993.
18 Substituted for carrying on a business or profession to the account of the payee as on the date up to which the accounts of such business or profession by the IT (Third Amdt.) Rules, 1996, w.e.f. 2-7-1996.
19 Words within one week from the date of receipt of the challan by the person making the deduction, who shall make an application to the Assessing Officer omitted by the IT (Twelfth Amdt.) Rules, 1990, w.e.f. 8-6-1990.
20 Substituted for income chargeable under the head Interest on securities by the IT (Twelfth Amdt.) Rules, 1990, w.e.f. 8-6-1990.
21 Inserted by the IT (Eleventh Amdt.) Rules, 1991, w.e.f. 1-10-1991.
22 Words blank copies of which shall be supplied by the Assessing Officer on request for the purpose omitted by the IT (Twelfth Amdt.) Rules, 1990, w.e.f. 8-6-1990.
23 Omitted, Prior to its omission first proviso read as under :
Provided that on receipt of the statement or the certificate referred to in rule 32 or the return referred to in rule 33 the Assessing Officer may, if so expressly requested and if satisfied that there is sufficient ground for the request, himself have the necessary challans prepared and forwarded to the person concerned, who shall thereupon pay the amount to the credit of the Central Government in the manner above described.
Earlier it was amended by the IT (Sixth Amdt.) Rules, 1988, w.e.f. 12-7-1988.
24 Word further omitted by the IT (Twelfth Amdt.) Rules, 1990, w.e.f. 8-6-1990.
25 Substituted for 194D and 195 by the IT (Sixth Amdt.) Rules, 1991, w.e.f. 1-10-1991.
26 Substituted for 195 and 196A by the IT (Sixth Amdt.) Rules, 1991, w.e.f. 1-6-1991.
27 Inserted by the IT (Fourth Amdt.) Rules, 1994, w.e.f. 1-6-1994.
28 Inserted by the IT (Twelfth Amdt.) Rules, 1995 w.e.f. 1-7-1995.
29 Substituted for and 196B by the IT (Eleventh Amdt.) Rules, 1992, w.e.f. 1-6-1992.
30 Substituted for and 196C by the IT (Tenth Amdt.) Rules, 1993, w.e.f. 16-6-1993.
31 Words blank copies of which will be supplied by the Assessing Officer on request for the purpose omitted by the IT (Twelfth Amdt.) Rules, 1990, w.e.f. 8-6-1990.
(1) The certificate of deduction of tax at source by any person in accordance with Chapter XVII-B or the certificate of payment of tax by the employer on behalf of the employee under sub-section (1A) of section 192 shall be in-
(a) Form No. 16, if the deduction or payment of tax is under section 192; and
(b) Form No. 16A if the deduction is under any other provision of Chapter XVII-B.
(2) The certificate referred to in sub-rule (1) shall specify:-
(a) valid permanent account number (PAN) of the deductee;
(b) valid tax deduction and collection account number (TAN) of the deductor;
(c) (i) book identification number or numbers where deposit of tax deducted is without production of challan in case of an office of the Government;
(ii) challan identification number or numbers in case of payment through bank.
(d) (i) receipt number of the relevant quarterly statement of tax deducted at source which is furnished in accordance with the provisions of rule 31A;
(ii) receipt numbers of all the relevant quarterly statements in case the statement referred to in clause (i) is for tax deducted at source from income chargeable under the head Salaries.
(3) The certificates in Forms specified in column (2) of the Table below shall be furnished to the employee or the payee, as the case may be, as per the periodicity specified in the corresponding entry in column (3) and by the time specified in the corresponding entry in column (4) of the said Table:-
Table
Sl. No. Form No. Periodicity Due date
(1) (2) (3) (4)
1. 16 Annual By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted
2. 16A Quarterly Within fifteen days from the due date for furnishing the statement of tax deducted at source under rule 31A.
(4) If an assessee is employed by more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers and Part B may be issued by each of the employers or the last employer at the option of the assessee.
(5) The deductor may issue a duplicate certificate in Form No. 16 or Form No. 16A if the deductee has lost the original certificate so issued and makes a request for issuance of a duplicate certificate and such duplicate certificate is certified as duplicate by the deductor.
(6) (i) Where a certificate is to be furnished in Form No. 16, the deductor may, at his option, use digital signatures to authenticate such certificates.
(ii) In case of certificates issued under clause (i), the deductor shall ensure that-
(a) the provisions of sub-rule (2) are complied with;
(b) once the certificate is digitally signed, the contents of the certificates are not amenable to change; and
(c) the certificates have a control number and a log of such certificates is maintained by the deductor.
(7) Where a certificate is to be furnished for tax deducted before the 1st day of April, 2010, it shall be furnished in the Form in accordance with the provisions of the rules as they stood immediately before their substitution by the Income-tax (9[6th] Amendment) Rules, 2010.
Explanation.- For the purpose of this rule and rule 37D, challan identification number means the number comprising the Basic Statistical Returns (BSR) Code of the Bank branch where the tax has been deposited, the date on which the tax has been deposited and challan serial number given by the bank.]
.............................................
1. Substituted by the IT (Sixth Amendment) Rules, 1991, w.e.f. 28-2-1991. Prior to its substitution sub-rules (1) read as under :
(1) The certificate of deduction of tax at source under section 203 to be furnished by any person deducting tax in accordance with the provisions of sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D and section 195 shall be in Form No. 16.
2. Substituted for clauses (b) and (c) by the IT (Eleventh Amendment) Rules, 1993, w.e.f. 1-7-1993. Prior to substitution, clauses (b) and (c), stood as under:
(b) section 193, section 194, section 194A in so far as it relates to interest on time deposits referred to in clauses (vii) and (viia) of sub-section (3) of this section, section 194D, section 194EE, section 194F, section 194G, section 194H, section 196B, section 196C and section 196D shall be in Form No. 16A;
(c) section 194A other than in the case of interest on the time deposits referred to in clauses (vii) and (viia) of sub-section (3) of this section 194B, section 194BB, section 194C, section 194E, section 195 and section 196A shall be in Form No. 16B.
3. Inserted by the IT (Fourth Amendment) Rules, 1994, w.e.f. 1-6-1994.
4. Inserted by the IT (Twelfth Amendment) Rules, 1995, w.e.f. 1-7-1995.
5. Omitted by the IT (Twelfth Amendment) Rules, 1993, w.e.f. 1-7-1993. Prior to omission, sub-rule (2), read as under:
(2) The certificate mentioned in clause (c) of sub-rule (1) shall be issued on paper serially numbered and printed by the Central Government in book form and supplied for a consideration to the person deducting tax at source on an application made by him in Form No. 17 to the Chief Commissioner having jurisdiction over him in this regard:
6. Substituted by the Income-tax Eighth Amendment Rules 2009 vide Notification No. 31/2009 dated 25.03.2009 Effective date of Substituted Rules amended to 1st July 2009 instead of 1st April 2009 vide notification Press Release from file No. 402/92/2006-MC (11 of 2009) Dated 11.05.2009.
"31.- Certificate of 19[tax deducted at source or tax paid under Sub-section (1A) of Section 192]
1[(1) 20[The certificate of deduction of tax at source or, the certificate of payment of tax by the employer on behalf of the employee, under section 203] to be furnished by any person deducting tax in accordance with the provisions of-
(a) section 192 shall be in Form No. 16;
2[(b) section 193, section 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, 3[section 194-I,] 4[section 194J, section 194K,] 23[section 194LA] section 195, section 196A, section 196B, section 196C and section 196D shall be in Form No. 16A.]]
22[Provided that in the case of an individual, resident in India, where his income from salaries before allowing deductions under section 16 of the Income-tax Act, 1961 does not exceed rupees one lakh fifty thousand, the certificate of deduction of tax at source shall be in Form No.16AA.]
(2) 5[***]
(3) The certificate mentioned in sub-rule (1) shall be furnished within a period of 6[one month from the end of the month during which the credit has been given or the sums have been paid or, as the case may be, a cheque or warrant for payment of any dividend has been issued to a shareholder]:
Provided that 7[where the income by way of interest on securities referred to in section 193 or the income by way of interest referred to in section 194A or the sum referred to in section 194C or the income by way of insurance commission referred to in section 194D or the payment to non-resident sportsmen or sports associations referred to in section 194E 8[or the income by way of commission, remuneration or prize on sale of lottery tickets referred to in section 194G or the income by way of commission or brokerage referred to in section 194H 9[or the income by way of rent referred to in section 194-I] 10[or the income by way of fees for professional or technical services referred to in section 194J] or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in sub-section (2) of section 196A or the income from units referred to in section 196B 11[or the income from foreign currency bonds or shares of an Indian company referred to in section 196C 12[or the income of Foreign Institutional Investors from securities referred to in section 196D]]]] is credited by a person 13[to the account of the payee as on the dale up to which the account of such person] are made, the certificate under sub-rule (1) shall be issued within a week after the expiry of two months from the month in which income is so credited :
Provided further 21[that the certificate in the case of deduction of tax under sub-section (1) of section 192 or, payment of tax by the employer on behalf of the employee, under sub-section (1A), of that section] may be furnished within one month from the close of the financial year in which such deduction was made :
15[Provided also that the certificate in cases, other than those mentioned in the second proviso, where payment of income-tax deducted is permitted quarterly in accordance with clause (a) of the proviso to clause (b) of sub-rule (1) of rule 30 may be furnished within fourteen days from the date of payment of income-tax :]
16[Provided also that where more than one certificate is required to be furnished to a payee for deductions of income-tax made during a financial year, the person deducting the tax, may on request from such payee, issue within one month from the close of such financial year a consolidated certificate in Form No. 16A for tax deducted during whole of such financial year.]
(4) Where in a case, the TDS certificate issued under this rule is lost, the person deducting tax at source may issue a duplicate certificate of deduction of tax at source on a plain paper giving necessary details as contained in Form No. 16 17[or Form No. 16A 18[***], as the case may be.
(5) The Assessing Officer before giving credit for the tax deducted at source on the basis of duplicate certificate referred to in sub-rule (4), shall get the payment certified from the Assessing Officer designated in this behalf by the Chief Commissioner or the Commissioner and shall also obtain an Indemnity Bond from the assessee."
7. Substituted by the Income tax (first Amendment) Rules, 2010 vide Notification No. 9/2010 dated 18.02.2010 w.e.f. 01.04.2009 previous text was : -
"6[31. Certificate of tax deducted at source or tax paid under sub-section (1A) of section 192.--
(1) The certificate of deduction of tax at source or, the certificate of payment of tax by the employer on behalf of the employee, under section 203 shall be in
(a) Form No.16 if the deduction or, payment of tax, is under section 192; and
(b) Form No.16A if the deduction is under any other provision of Chapter XVII-B.
(2) The certificate referred to in sub-rule (1) shall be furnished to the deductee-
(a) within one week after the date on which the sum of tax deducted at source is paid to the credit of the Central Government if the payment in respect of which the tax so deducted is by way of crediting on the date upto which the accounts of the deductor are made;
(b) within one month from the end of the financial year in which the payment is made to the deductee if-
(i) the deduction of tax is made under sub-section (1) of section 192;
(ii) the certificate relates to payment of tax by the employer on behalf of the employee under section (1A) of section 192;
(iii) the deduction of tax is made under section 194D; or
(iv) more than one certificate is required to be furnished to a deductee for deductions of income-tax made during a financial year and the deductee has requested for issue of a consolidated certificate in respect of such deductions;
(c) within fourteen days from the date of payment of income-tax if the payment is made quarterly under sub-rule (2) of rule 30;
(d) within one month from the end of the month in which the deduction of tax at source is made, in all other cases.
(3) The deductor may issue a duplicate certificate in Form No.16 or Form No.16A, as the case may be, if the deductee has lost the original certificate so issued and makes a request for issuance of a duplicate certificate and such duplicate certificate is certified as duplicate by the deductor.
(4) The Assessing Officer, before giving credit for the tax deducted at source on the basis of duplicate certificate referred to in sub-rule (3), shall-
(a) obtain an Indemnity Bond from the deductee; and
(b) get the payment certified by the Assessing Officer designated in this behalf by the Chief Commissioner or the Commissioner.]"
8. Substituted by the Income tax (sixth Amendment) Rules, 2010 vide Notification No. 41/2010 dated 31.05.2010 w.e.f. 01.04.2010 previous text was : -
"7[31. Certificate of tax deducted at source or tax paid under sub-section (1A) of section 192.--
(1) The certificate of deduction of tax at source or, the certificate of payment of tax by the employer on behalf of the employee, under section 203 to be furnished by any person deducting tax in accordance with the provisions of-
(a) section 192 shall be in Form No. 16:
Provided that in the case of an individual, resident in India, where his income from salaries before allowing deductions under section 16 of the Income-tax Act, 1961 does not exceed rupees one lakh fifty thousand, the certificate of deduction of tax at source shall be in Form No. 16AA;
(b) section 193, section 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194-I, section 194J, section 194K, section 194LA, section 195, section 196A, section 196B, section 196C and section 196D shall be in Form No. 16A.
(2) The certificate mentioned in sub-rule (1) shall be furnished within a period of one month from the end of the month during which the credit has been given or the sums have been paid or, as the case may be, a cheque or warrant for payment of any dividend has been issued to a shareholder:
Provided that where the income by way of interest on securities referred to in section 193 or the income by way of interest referred to in section 194A or the sum referred to in section 194C or the income by way of insurance commission referred to in section 194D or the payment to non-resident sportsmen or sports associations referred to in section 194E or the income by way of commission, remuneration or prize on sale of lottery tickets referred to in section 194G or the income by way of commission or brokerage referred to in section 194H or the income by way of rent referred to in section 194-I or the income by way of fees for professional or technical services referred to in section 194J or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in sub-section (2) of section 196A or the income from units referred to in section 196B or the income from foreign currency bonds or shares of an Indian company referred to in section 196C or the income of Foreign Institutional Investors from securities referred to in section 196D is credited by a person to the account of the payee as on the date up to which the account of such person are made, the certificate under sub-rule (1) shall be issued within a week after the expiry of two months from the month in which income is so credited :
Provided further that the certificate in the case of deduction of tax under sub-section (1) of section 192 or, payment of tax by the employer on behalf of the employee, under sub-section (1A) of that section or section 194D may be furnished within one month from the close of the financial year in which such deduction was made :
Provided also that the certificate in cases, other than those mentioned in the second proviso, where payment of income-tax deducted is permitted quarterly in accordance with clause (a) of the proviso to clause (b) of sub-rule (1) of rule 30 may be furnished within fourteen days from the date of payment of income- tax:
Provided also that where more than one certificate is required to be furnished to a payee for deductions of income-tax made during a financial year, the person deducting the tax, may on request from such payee, issue within one month from the close of such financial year a consolidated certificate in Form No. 16A for tax deducted during whole of such financial year.
(3) Where in a case, the TDS certificate issued under this rule is lost, the person deducting tax at source may issue a duplicate certificate of deduction of tax at source on a plain paper giving necessary details as contained in Form No. 16 or Form No. 16A, as the case may be.
(4) The Assessing Officer before giving credit for the tax deducted at source on the basis of duplicate certificate referred to in sub-rule (3), shall get the payment certified from the Assessing Officer designated in this behalf by the Chief Commissioner or the Commissioner and shall also obtain an Indemnity Bond from the assessee.]"
9. Inserted vide Notification No. 55/2010 dated 19.07.2010.
(1) Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:-
(a) Statement of deduction of tax under section 192 in Form No. 24Q;
(b) Statement of deduction of tax under sections 193 to 196D in-
(i) Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and
(ii) Form No. 26Q in respect of all other deductees.
12[(2) Statements referred to in sub-rule (1) for the quarter of the financial year ending with the date specified in column (2) of the Table below shall be furnished by
(i) the due date specified in the corresponding entry in column (3) of the said Table, if the deductor is an office of Government; and
(ii) the due date specified in the corresponding entry in column (4) of the said Table, if the deductor is a person other than the person referred to in clause (i).
Table
Sl. No. Date of ending of the quarter of the financial year Due date Due date
(1) (2) (3) (4)
1. 30th June 31st July of the financial year 15th July of the financial year
2. 30th September 31st October of the financial year 15th October of the financial year
3. 31st December 31st January of the financial year 15th January of the financial year
4. 31st March 15th May of the financial year immediately following the financial year in which deduction is made 15th May of the financial year immediately following the financial year in which deduction is made.]
(3) (i) The statements referred to in sub-rule (1) may be furnished in any of the following manners, namely:-
(a) furnishing the statement in paper form;
(b) furnishing the statement electronically in accordance with the procedures, formats and standards specified under sub-rule (5) alongwith the verification of the statement in Form 27A.
(ii) Where,-
(a) the deduct or is an office of the Government; or
(b) the deduct or is the principal officer of a company; or
(c) the deduct or is a person who is required to get his accounts audited under section 44AB in the immediately preceding financial year; or
(d) the number of deductees records in a statement for any quarter of the financial year are twenty or more, the deductor shall furnish the statement in the manner specified in item (b) of clause (i).
(iii) Where deduct or is a person other than the person referred to in clause (ii), the statements referred to in sub-rule (1) may, at his option, be delivered or cause to be delivered in the manner specified in item (b) of clause (i).
(4) The deduct or at the time of preparing statements of tax deducted shall,-
(i) quote his tax deduction and collection account number (TAN) in the statement;
(ii) quote his permanent account number (PAN) in the statement except in the case where the deductor is an office of the Government;
(iii) quote the permanent account number of all deductees;
(iv) furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be.
11[(v) furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee;
(vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee.]
13[(vii) furnish particulars of amount paid or credited on which tax was not deducted in view of the furnishing of declaration under sub-section (1) or sub-section (1A) or sub-section (IC) of section 197A by the payee.]
(5) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing of the statements and shall be responsible for the day to day administration in relation to furnishing of the statements in the manner so specified.
(6) Where a statement of tax deducted at source is to be furnished for tax deducted before the 1st day of April, 2010, the provisions of this rule and rule 37A shall apply as they stood immediately before their substitution or omission by the Income-tax (10[6th] Amendment) Rules, 2010.]
________________________________
1. Inserted by Income-tax (Tenth Amendment) Rules, 2005 vide Notification No. 123/2005 dated 30.03.2005.
2. Rules 31A renumbered as sub-rule (1) thereof by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dt 30.06.2005
3. Substituted by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dt 30.06.2005 for the words the prescribed income-tax authority or to the person authorised by such authority.
4. Substituted by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dt 30.06.2005 for the words on or before the 30th April
5. Inserted by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dt 30.06.2005.
6. Substituted by Income-tax (Ninth Amendment) Rules, 2007 vide Notification No. 238/2007 dt 30.08.2007, w.e.f. 01.09.2007 for:
"5[Provided that the person responsible for deducting tax at source in the case of every office of Government and the principal officer in the case of every company responsible for deducting tax at source shall deliver or cause to be delivered such quarterly statements on computer media (3.5" 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):]"
7. Substituted by the Income-tax Eighth Amendment Rules 2009 vide notification No. 31/2009 dated 25.03.2009 Effective date of Substituted Rules amended to 1st July 2009 instead of 1st April 2009 vide notification Press Release from file No. 402/92/2006-MC (11 of 2009) Dated 11.05.2009.
1[31A. Quarterly statement of deduction of tax under sub-section (3) of section 200.--
2[(1)} Every person, being a person responsible for deducting tax under Chapter XVII-B shall, in accordance with the provisions of sub-section (3) of section 200, deliver or cause to be delivered to 3[the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems)], quarterly statement-
(i) in Form No. 24Q in respect of deduction of tax at source under sub-sections (1) and (1A) of section 192; and
(ii) in Form No. 26Q in respect of other cases of deduction of tax at source,
on or before the 15th July, the 15th October, the 15th January in respect of the first three quarters of the financial year and 4[on or before the 15th June] following the last quarter of the financial year.]
6[Provided that where,-
(a) the deductor is an office of Government: or
(b) the deductor is a company; or
(c) the deductor is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or
(d) the number of deductees records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,
the person responsible for deducting tax at source, and the principal officer in the case of a company shall deliver or cause to be delivered such quarterly statements on computer media (3.5 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):]
Provided further that a person other than a person referred to in the first proviso, responsible for deducting tax at source, may at his option, deliver or cause to be delivered the quarterly statements on computer media (3.5" 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):
Provided also that a person responsible for deducting tax at source from the payments referred to in rule 37A shall furnish quarterly statements in accordance with the provisions of rule 37A and rule 37B,.]
5[(2) The person responsible for deducting tax at source and preparing quarterly statements shall,-
(i) quote his tax deduction and collection account number (TAN) and permanent account number (PAN) in the quarterly statement:
Provided that the permanent account number shall not be required to be quoted where tax has been deducted by or on behalf of the Government;
(ii) quote the permanent account number of all persons in respect of whose income, tax has been deducted:
Provided that the permanent account number shall not be quoted in respect of the persons to whom the second proviso to sub-section (5B) of section 139A of the Act applies;
(iii) furnish particulars of the tax paid to the Central Government.
(3) The person responsible for deducting tax at source and preparing quarterly statements on computer media shall, in addition to the provisions in sub-rule (2),-
(i) prepare the quarterly statement as per the data structure provided by the e-filing Administrator designated by the Board for the purposes of administration of Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003 supported by a declaration in Form No.27A in paper format:
Provided that in case any compression software has been used for preparing the quarterly statement on computer media, such compression software shall be furnished on the same computer media;
(ii) affix a label indicating name, permanent account number, tax deduction and collection account number and address of the person responsible for deduction of tax at source, the period to which the statement pertains and the volume number of the said computer media in case more than one volume of such media is used.;]
8. Substituted by the Income tax (first Amendment) Rules, 2010 vide Notification No. 9/2010 dated 18.02.2010 w.e.f. 01.04.2009 previous text was: -
"7[31A. Quarterly statement of deduction of tax or collection of tax.--
(1) Every person who has been allotted a tax deduction and collection account number under section 203A shall deliver, or cause to be delivered the following quarterly statements; namely:-
(a) the TDS Compliance Statement in Form No.24C;
(b) the Quarterly Statement of deduction of tax under section 192 in Form No.24Q;
(c) the Quarterly Statement of deduction of tax under sections 193 to 196D in-
(i) Form No.27Q in respect of the deductee other than a company, being a non-resident or resident but not ordinarily resident, or the deductee being a foreign company; and
(ii) Form No.26Q in respect of all other deductees; and
(d) the Quarterly Statement for collection of tax under section 206C in Form No.27EQ.
(2) Every person, who is required to deliver, or cause to be delivered, under sub-rule (1), the statements referred to therein, shall deliver, or cause to be delivered, such statements electronically to the Director General of Income Tax (Systems) or the person authorised by the Director General of Income Tax (Systems).
(3) The statement in Form No.24C referred to in sub-rule (1), shall be delivered, or caused to be delivered, on or before the 15th July, the 15th October, the 15th January in respect of the first three quarters of the financial year, respectively, and on or before the 15th June following the last quarter of the financial year.
(4) The statements in Form No.24Q, Form No.26Q, Form No.27Q and Form No.27EQ referred to in sub-rule(1), shall be delivered, or caused to be delivered, on or before the 15th June following the financial year.]"
9. Substituted by the Income tax (sixth Amendment) Rules, 2010 vide Notification No. 41/2010 dated 31.05.2010 w.e.f. 01.04.2010 previous text was : -
8[31A. Quarterly statement of deduction of tax under sub-section (3) of section 200.--
(1) Every person, being a person responsible for deducting tax under Chapter XVII-B shall, in accordance with the provisions of sub-section (3) of section 200, deliver or cause to be delivered to the Director-General of Income-tax (Systems) or the person authorized by the Director General of Income-tax (Systems), quarterly statement-
(i) in Form No. 24Q in respect of deduction of tax at source under sub-sections (1) and (1A) of section 192; and
(ii) in Form No. 26Q in respect of other cases of deduction of tax at source, on or before the 15th July, the 15th October, the 15th January in respect of the first three quarters of the financial year and on or before the 15th June following the last quarter of the financial year:
Provided that where,-
(a) the deductor is an office of Government; or
(b) the deductor is a company; or
(c) the deductor is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or
(d) the number of deductees records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty, the person responsible for deducting tax at source, and the principal officer in the case of a company shall deliver or cause to be delivered such quarterly statements on computer media (3.5 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):
Provided further that a person other than a person referred to in the first proviso, responsible for deducting tax at source, may at his option, deliver or cause to be delivered the quarterly statements on computer media (3.5" 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):
Provided also that a person responsible for deducting tax at source from the payments referred to in rule 37A shall furnish quarterly statements in accordance with the provisions of rule 37A and rule 37B.
(2) The person responsible for deducting tax at source and preparing quarterly statements shall,-
(i) quote his tax deduction and collection account number (TAN) and permanent account number (PAN) in the quarterly statement:
Provided that the permanent account number shall not be required to be quoted where tax has been deducted by or on behalf of the Government;
(ii) quote the permanent account number of all persons in respect of whose income, tax has been deducted:
Provided that the permanent account number shall not be quoted in respect of the persons to whom the second proviso to sub-section (5B) of section 139A of the Act applies;
(iii) furnish particulars of the tax paid to the Central Government.
(3) The person responsible for deducting tax at source and preparing quarterly statements on computer media shall, in addition to the provisions in sub-rule (2),-
(i) prepare the quarterly statement as per the data structure provided by the e-filing Administrator designated by the Board for the purposes of administration of Electronic Filing of Returns of Tax Deducted at Source Scheme, 2003 supported by a declaration in Form No. 27A in paper format:
Provided that in case any compression software has been used for preparing the quarterly statement on computer media, such compression software shall be furnished on the same computer media;
(ii) affix a label indicating name, permanent account number, tax deduction and collection account number and address of the person responsible for deduction of tax at source, the period to which the statement pertains and the volume number of the said computer media in case more than one volume of such media is used.]"
10. Inserted vide Notification No. 55/2010 dated 19.07.2010.
11. Inserted by the Income tax (Second Amendment) Rules, 2011 vide Notification No : 16/2011 dated 29.03.2011 w.e.f. 01.04.2011.
12. Substituted by the Income-tax (Eighth Amendment) Rules, 2011 vide Notification No. 57/2011 dated 24.10.2011 w.e.f. 01.11.2011 for the following : -
(2) Statements referred to in sub-rule (1) for the quarter of the financial year ending with the date specified in column (2) of the Table below shall be furnished by the due date specified in the corresponding entry in column (3) of the said Table:-
"Table
Sl. No. Date of ending of the quarter of the financial year Due date
(1) (2) (3)
1. 30th June 15th July of the financial year
2. 30th September 15th October of the financial year
3. 31st December 15th January of the financial year
4. 31st March 15th May of the financial year immediately following the financial year in which deduction is made"
13. Inserted by the Income-tax (Eighth Amendment) Rules, 2011 vide Notification No. 57/2011 dated 24.10.2011 w.e.f. 01.11.2011.
(1) Every collector, shall, in accordance with the provisions of the proviso to sub-section (3) of section 206C, deliver, or cause to be delivered, to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), a quarterly statement in Form No. 27EQ.
(2) Statements referred to in sub-rule (1) for the quarter of the financial year ending with the date specified in column (2) of the Table below shall be furnished by the due date specified in the corresponding entry in column (3) of the said Table:-
Sl. No. Quarter of the financial year ended Due date
(1) (2) (3)
1. 30th June 15th July of the financial year
2. 30th September 15th October of the financial year
3. 31st December 15th January of the financial year
4. 31st March 15th May of the financial year immediately following the financial year in which collection is made
(3) (i) The statement referred to in sub-rule (1) may be furnished in any of the following manners, namely:-
(a) furnishing the statement in paper form;
(b) furnishing the statement electronically in accordance with the procedures, formats and standards specified under sub-rule (5) alongwith the verification of the statement in Form 27A.
(ii) Where,-
(a) the collector is an office of the Government; or
(b) the collector is the principal officer of a company; or
(c) the collector is a person who is required to get his accounts audited under section 44AB in the immediately preceding financial year;
(d) the number of collectees records in a statement for any quarter of the financial year are twenty or more,
the collector shall furnish the statement in the manner specified in item (b) of clause (i).
(iv) Where the collector is a person other than the person referred to in clause (ii), the statement referred to in sub-rule (1) may, at his option, be delivered or cause to be delivered in the manner specified in item (b) of clause (i).
(4) The collector at the time of preparing statements of tax collected shall,-
(i) quote his tax deduction and collection account number (TAN) in the statement;
(ii) quote his permanent account number (PAN) in the statement except in the case where the collector is an office of the Government;
(iii) quote the permanent account number of all collectees;
(iv) furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be.
(5) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing of the statements and shall be responsible for the day to day administration in relation to furnishing of the statements in the manner so specified.
(6) Where a statement of tax collected at source is to be furnished for tax collected before the 1st day of April, 2010, the provisions of this rule shall apply as they stood immediately before their substitution by the Income-tax (9[6th] Amendment) Rules, 2010.]
_____________________________________
1. Inserted by Income-tax (Tenth Amendment) Rules, 2005 vide Notification No. 123/2005 dated 30.03.2005.
2. Rules 31AA renumbered as sub-rule (1) thereof by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dt 30.06.2005
3. Substituted by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dt 30.06.2005 for the words the prescribed income-tax authority or the person authorised by such authority.
4. Inserted by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dt 30.06.2005.
5. Substituted by Income-tax (Ninth Amendment) Rules, 2007 vide Notification No. 238/2007 dt 30.08.2007, w.e.f. 01.09.2007 for:
"4[Provided that the person responsible for collecting tax at source on behalf of Government and the principal officer in the case of every company responsible for collecting tax at source shall deliver or cause to be delivered such quarterly statements on computer media(3.5" 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):]"
6. Omitted by the Income-tax (Eighth Amendment) Rules, 2009 with effect from 1st April, 2009. Thereafter, again effective date amended from 1st April 2009 to 1st July, 2009]
"[1[31AA. Quarterly statement of collection of tax under sub-section (3) of section 206C
2[(1)]Every person, being a person responsible for collecting tax under section 206C shall, in accordance with the proviso to sub-section (3) of section 206C, deliver or cause to be delivered to 3[the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems)], quarterly statement in Form No. 27EQ on or before the 15th July, the 15th October, the 15th January in respect of the first three quarters of the financial year and on or before the 30th April following the last quarter of the financial year.]
5[Provided that where,-
(a) the Collector is an office of Government: or
(b) the Collector is a company; or
(c) the Collector is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or
(d) the number of collectees records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,
the person responsible for deducting tax at source, and the principal officer in the case of a company shall deliver or cause to be delivered such quarterly statements on computer media (3.5 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):]
Provided further that a person other than a person referred to in the first proviso, responsible for collecting tax at source, may at his option, deliver or cause to be delivered the quarterly statements on computer media(3.5" 1.44 MB floppy diskette or CD-ROM of 650 MB capacity),;]
4[(2) The person responsible for collecting tax at source and preparing quarterly statements shall,-
(i) quote his tax deduction and collection account number (TAN) and permanent account number (PAN) in the quarterly statement:
Provided that the permanent account number shall not be required to be quoted where tax has been collected by or on behalf of the Government;
(ii) quote the permanent account number of all persons in respect of whose income, tax has been collected;
(iii) furnish particulars of the tax paid to the Central Government;
(3) The person responsible for collecting tax at source and preparing quarterly statements on computer media shall, in addition to the provisions in sub-rule (2),-
(i) prepare the quarterly statement as per the data structure provided by the e-filing Administrator designated by the Board for the purposes of administration of Electronic Filing of Returns of Tax Collected at Source Scheme, 2005 supported by a declaration in Form No.27B in paper format:
Provided that in case any compression software has been used for preparing the quarterly statement on computer media, such compression software shall be furnished on the same computer media;
(ii) affix a label indicating name, permanent account number, tax deduction and collection account number and address of the person responsible for collection of tax at source, the period to which the statement pertains and the volume number of the said computer media in case more than one volume of such media is used,;]"
7. Inserted by the Income tax (first Amendment) Rules, 2010 vide Notification No. 9/2010 dated 18.02.2010 w.e.f. 01.04.2009.
8. Substituted by the Income tax (sixth Amendment) Rules, 2010 vide Notification No. 41/2010 dated 31.05.2010 w.e.f. 01.04.2010 previous text was : -
"7[31AA. Quarterly statement of collection of tax under sub-section (3) of section 206C.--
(1) Every person, being a person responsible for collecting tax under section 206C shall, in accordance with the proviso to sub-section (3) of section 206C, deliver or cause to be delivered to the Director-General of Income-tax (Systems) or the person authorized by the Director General of Income-tax (Systems), quarterly statement in Form No. 27EQ on or before the 15th July, the 15th October, the 15th January in respect of the first three quarters of the financial year and on or before the 30th April following the last quarter of the financial year:
Provided that where,-
(a) the collector is an office of Government; or
(b) the collector is a company; or
(c) the collector is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or
(d) the number of collectees records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty, the person responsible for collecting tax at source, and the principal officer in the case of a company shall deliver or cause to be delivered such quarterly statements on computer media (3.5 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):
Provided further that a person other than a person referred to in the first proviso, responsible for collecting tax at source, may at his option, deliver or cause to be delivered the quarterly statements on computer media (3.5" 1.44 MB floppy diskette or CD-ROM of 650 MB capacity).
(2) The person responsible for collecting tax at source and preparing quarterly statements shall,-
(i) quote his tax deduction and collection account number (TAN) and permanent account number (PAN) in the quarterly statement:
Provided that the permanent account number shall not be required to be quoted where tax has been collected by or on behalf of the Government;
(ii) quote the permanent account number of all persons in respect of whose income, tax has been collected;
(iii) furnish particulars of the tax paid to the Central Government.
(3) The person responsible for collecting tax at source and preparing quarterly statements on computer media shall, in addition to the provisions in sub-rule (2),-
(i) prepare the quarterly statement as per the data structure provided by the e-filing Administrator designated by the Board for the purposes of administration of Electronic Filing of Returns of Tax Collected at Source Scheme, 2005 supported by a declaration in Form No. 27B in paper format:
Provided that in case any compression software has been used for preparing the quarterly statement on computer media, such compression software shall be furnished on the same computer media;
(ii) affix a label indicating name, permanent account number, tax deduction and collection account number and address of the person responsible for collection of tax at source, the period to which the statement pertains and the volume number of the said computer media in case more than one volume of such media is used.]"
9. Inserted vide Notification No. 55/2010 dated 19.07.2010.
2[The Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems)] shall deliver,-
(i) to every person from whose income the tax has been deducted; or
(ii) to the buyer referred to in sub-section (1) or, as the case may be, to the licencee or lessee referred to in sub-section (1C) of section 206C from whom the amount has been collected; or
(iii) to every person in respect of whose income the tax has been paid,
3[a statement referred to in section 203AA or the second proviso to sub-section (5) of section 206C, in Form No. 26AS by the 31st July] following the financial year during which taxes were deducted or collected or paid.]
______________________________
1. Inserted by Income-tax (Tenth Amendment) Rules, 2005 vide Notification No. 123/2005 dated 30.03.2005.
2. Substituted by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dated 30.06.2005 for the following :-
The prescribed income-tax authority or the person authorised by such authority referred to in section 203AA or the second proviso to sub-section (5) of section 206C
3. Substituted by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dated 30.06.2005 for the words a statement in Form No. 26AS by the 15th June.
(1) Every branch of a banking company, which is required to make a quarterly return under sub-section (1) of section 206A in respect of interest on time deposits without deduction of tax at source, shall keep and maintain the particulars of such time deposits in Form No. 26QA.
(2) Every branch referred to in sub-rule (1) which is maintaining its daily accounts on computer media, shall keep and maintain the particulars in Form No. 26QA on computer readable media.
..................................................
2. Substituted by the Income-tax (Second Amendment) Rules 2006 vide Notification No. 71/2006 dated 17.03.2006.
1[31AC. Quarterly return of non-deduction of tax at source under section 206A
(1) The quarterly return to be furnished under sub-section (1) or sub-section (2) of section 206A shall be in Form No. 26QA and shall be verified in the manner indicated therein.
(2) The quarterly return referred to in sub-rule (1) shall be furnished, -
(i) to the Director General of Income tax (Systems) or the person authorised by the Director General of Income-tax (Systems)
(ii) on or before the 31st July, the 31st October, the 31st January and the 30th June following the respective quarter of the financial year.]
1. Inserted by Income-tax (17th Amendment ) Rules, 2005 vide Notification No. 176/2005 dated 28.06.2005.
(1) The quarterly return to be furnished by a banking company under sub-section (1) of section 206A in respect of time deposits shall be in Form No. 26QAA and shall be verified in the manner indicated therein.
(2) The quarterly return referred to in sub-rule (1) shall be furnished, -
(i) to the Director General of Income-tax (Investigation), New Delhi or the person authorised by the Director General of Income-tax (Investigation), New Delhi;
(ii) on or before the 31st July, the 31st October, the 31st January and the 30th June following the respective quarter of the financial year.
(3) The quarterly return comprising Part A and Part B of Form No. 26QAA, referred to in sub-rule (1), shall be furnished on computer readable media being a CD-ROM (650 MB or higher capacity) or Digital Video Disc (DVD), along with Part-A of such Form on paper.
(4) The person responsible for furnishing the return referred to in sub-rule (1) shall ensure that -
(i) where the data relating to the return is copied using data compression or backup software utility, the corresponding software utility or procedure for its decompression or restoration shall also be furnished along with the return made on computer readable media;
(ii) the return is accompanied with a certificate regarding dean and virus free data.
Explanation. - For the purposes of rule 31AC and rule 31ACA, "time deposits" means deposits (excluding recurring deposits) repayable on the expiry of fixed periods.]
Omitted by the IT (Third Amendment) Rules, 1996, w.e.f. 2-7-1996.
(1) In cases where the trustees of an approved superannuation fund pay any contributions made by an employer, including interest on such contributions, to an employee during his life time, they shall send within two months from the end of the financial year to the Assessing Officer referred to in rule 36A, a statement giving the following particulars, namely:
(i) Name of the superannuation fund;
(ii) Name and address of the employee;
(iii) The period for which the employee has contributed to the superannuation fund;
(iv) The amount of contribution repaid on account of principal and interest;
(v) The average rate of deduction of tax during the preceding three years; and
(vi) The amount of tax deducted on repayment.
(2) A verification in the following form shall be annexed to the statement referred to in sub-rule (1):
FORM OF VERIFICATION
We/I, the trustee(s) of the above named fund, do declare that what is stated in the above statement is true to the best of our/my information and belief.]
(2) Omitted by the IT (Sixth Amendment) Rules, 1988, w.e.f. 12-7-1988.
_________________________________
1. Omitted by Income-tax (Twenty-Fourth Amendment) Rules, 2003 w.e.f. 01.10.2003. Prior to omission it read as under:
33.- Return of deduction of tax from contributions paid by the trustees of an approved superannuation fund.
(1) In cases where the trustees of an approved superannuation fund pay any contributions made by an employer, including interest on such contributions, to an employee during his lifetime, they shall send within two months from the end of the financial year to the Assessing Officer referred to in rule 36A a return in Form No. 22.
Omitted by the IT (Sixth Amendment) Rules, 1988, w.e.f. 12-7-1988.
Omitted by the IT (Sixth Amendment) Rules, 1988, w.e.f. 12-7-1988.
(1) In the case of offices of the Government the return under section 206 shall be furnished by-
(a) Officers and others who draw their pay from Audit Offices/Pay and Civil Audit Officers/Pay and Accounts Officers for all Gazetted Accounts Offices on separate bills ; and also for all pensioners who draw their pensions from audit offices ;
(b) Treasury Officers for all Gazetted Officers and others who draw their pay from treasuries on separate bills without counter-signature and also for all pensioners who draw their pensions from treasuries ;
(c) Heads of Civil or Military offices for all Gazetted Officers and others, except those referred to in clause (b), and all non-gazetted officers, whose pay is drawn on establishment bills or on bills countersigned by the Head of Office;
(d) Forest Disbursing Officers and Public Works Department Disbursing Officers in cases where direct payment from treasuries is not made, for themselves and their establishments ;
(e) Head Postmasters for (i) themselves, their gazetted subordinates and the establishments of which the establishment pay bills arc prepared by them, and (ii) gazetted supervising and controlling officers of whose headquarters post office they are in charge, and (iii) pensioners drawing their pensions through post offices ; head record clerks for themselves and all the staff whose pay is drawn in their establishment pay bills ; Divisional Engineers in respect of Telegraph and Telephone Engineering Divisions; Accounts Officers, Stores and Workshops for the Stores and Workshops organisation and the Disbursing Officers in the case of the Administrative and Audit offices ;
(f) (i) Controllers of Defence Accounts for Defence Services Officers and others including civilian gazetted officers under their payment control;
(ii)Officer Commanding Air Force Central Accounts Office, New Delhi--for Air Force Officers and others for whom IRLAs are maintained by them;
(iii) Supply Officer-in-charge, Naval Pay Office, Bombay--for navy officers and ratings for whom IRLAs are maintained by them ;
(iv) Chief Accounting Officer, London--for Defence Services Personnel serving in or attached to High Commission in UK;
(g) The Financial Advisor and Chief Accounts Officer/Deputy Financial Advisor and Chief Accounts Officer of the Railways concerned--for all railway employees including the employees of the Railway Audit Department under their payment control;
(h)Heads of Offices in the Missions and Posts abroad for themselves and for all gazetted and other officers under their administrative control;
(i)Trade Commissioners abroad, wherever their establishments arc independent of the Missions, for themselves and for all gazetted and other officers under their administrative control;
(j)The Chief Accounts Officers, India Supply Mission, Washington, and India Stores Department, London for themselves and for the gazetted and other officers under their administrative control;
(k) The Directors /Managers of the tourist offices abroad, for themselves and for the gazetted and other officers under their administrative control.
(2) In the case of a local authority or any other public body or association, the return under section 206 shall be furnished by--
(a) the secretary, treasurer, manager or agent of the authority, public body or association, or
(b) any person connected with the management or administration of the local authority, public body or association upon whom the Assessing Officer has served a notice of his intention of treating him as the person responsible for filing the return.
The returns referred to in rules 37 and 37A shall be furnished to the Director General of Income-tax (Systems) or the person or agency authorised by the Director General of Income-tax (Systems),;]
_______________________________
1. Substituted by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dt 30.06.2005 for the following :-
36A.- Income-tax authority for purposes of section 206.--
The returns referred to in rules 37 and 37A shall be furnished to--
(i) the Assessing Officer, so designated by the Chief Commissioner or Commissioner of Income-tax, within whose area of jurisdiction, the office of the person responsible for deducting tax under Chapter XVII-B is situated; or
(ii) in any other case, to the Assessing Officer within whose area of jurisdiction, the office of the person responsible for deducting tax under Chapter XVII-B is situated.
Every person, being a person responsible for deducting tax under Chapter XVII-B shall, in respect of a previous year, deliver or cause to be delivered to the 13[Director General of Income-tax (Systems) or the person or agency authorised by the Director General of Income-tax (Systems)] referred to in rule 36A, the returns mentioned in column (1) of the Table below in Form No. specified in the corresponding entry in column (2) of the said Table by the end of the month falling in the financial year immediately following the previous year as specified in the corresponding entry in column (3) of the said Table :--
11[TABLE
Sl.No. Nature of returns Form No. Month
(i) (2) (3)
1. Annual return of deduction of tax under section 192 from "Salaries" 24
June
2. Annual return of deduction of tax under section 193 from "Interest on securities", under section 194 from "Dividends", under section 194A from "Interest other than interest on securities", under section 194B from "Winnings from lotteries or crossword puzzles", under section 194BB from "Winnings from horse races", under section 194C from "Payments to any contractor or sub-contractor", under section 194D from "Insurance commission", under section 194EE from "Payments in respect of deposits under National Savings Scheme, etc.", under section 194F from "Payments on account of repurchase of units by Mutual Fund or. Unit Trust of India", under section 194G from "Commission, etc., on sale of lottery tickets", under section 194H from "Commission or brokerage", under section 194-I from "Rent", under section 194J from "Fees for professional or technical services" 12[under section 194K from "Income in respect of units" and under section 194LA from "Payment of compensation on acquisition of certain immovable property.] 26
June.';
_________________________________
1. Substituted for April by the IT (Sixth Amendment) Rules, 1991, w.e.f. 28-2-1991.
2. Substituted for May by the IT (Twelfth Amendment) Rules, 1990 w.e.f. 8-6-1990.
3. Inserted by the IT (Twelfth Amendment) Rules, 1995, w.e.f. 1-7-1995.
4. Substituted for April by the IT (twelfth Amendment) Rules, 1990, w.e.f. 8-6-1990.
5. Substituted for May by the IT (Twelfth Amendment) Rules, 1990, w.e.f. 8-6-1990
6. Omitted by the IT (Fourth Amendment) Rules, 1997, w.e.f. 19-3-1997. Prior to its omission serial No. 9, a as substituted by the IT (Fourth Admt.) Rules, 1988, w.e.f. 12-7-1988, read as under :
9.Annual return of insurance commission paid/credited 26E June during the year without deduction of tax
7. Inserted by the IT (Fifth Amendment) Rules, 1992, w.e.f. 1-4-1992.
8. Inserted by the I.T ( Twenty Third Amendment) Rules , 2001 w.e.f. 11.10.2001.
9. Inserted by the IT (Fourth Amendment) Rules, 1994, w.e.f. 1-6-1994.
10. Inserted by the IT (Twelfth Amendment) Rules, 1995, w.e.f. 1-7-1995.
11. Substituted by Income-Tax (12th Amendment) Rules, 2003 w.e.f. 31.07.2003. Prior to substitution the table read as under:
"TABLE
S.No. Name of returns Form No. Month
(1) (2) (3)
1. Annual return of deduction of tax under section 192 from Salaries 24
1[May]
2. Annual return of deduction of tax under section 193 from Interest on securities 25 2[June]
3. Annual return of deduction of tax under section 194 form Dividends 3[or under section 194K from Income in respect of units] 26
April
4. Annual return of deduction of tax under section 194A from Interest other than interest on securities 26A 4[June]
5. Annual return of deduction of tax under section 194B from Winnings from lotteries or crossword puzzles 26B May
6. Annual return of deduction of tax under section 194BB from Winnings from horse race 26BB May
7. Annual return of deduction of tax under section 194C from Payments to any contractor or sub-contractor 26C 5[June]
8. Annual return of deduction of tax under section 194D from Insurance commission 26D June
9. 6[***]
710.
Annual return of deduction of tax under section 194EE from Payments in respect of deposits under national Savings Scheme, etc. 26F June
11. Annual return of deduction of Tax under section 194EE from Payments on account o repurchaseof units by Mutual fund or Unit Trust of India 26G June
12. Annual return of deduction of tax under section 194G from Commission, etc., on sale of lottery tickets 26H June
13. 8[Annual return of deduction of tax under section 194H from Commission or brokerage] 26I June
914.
Annual return of deduction of tax under section 194-I from Rent 26J June
1015.
Annual return of deduction of tax under section 194J from Fees for profession or technical services 26K June
12. Substituted by Income-tax (Eleventh Amendment) Rules, 2005 vide Notification No. 124/2005 dated 30.03.2005 for the following :-
and under section 194K from "Income in respect of units"
13.Substituted by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dated 30.06.2005 for the words Assessing Officer.
The person making deduction of tax in accordance with sections 193, 194, 194E, 195,196A, 196B, 196C and 196D of the Act from any payment made to--
(i) a person, not being a company, who is a non-resident or a resident but not ordinarily resident, or
(ii) a company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India;
shall send within fourteen days from the end of the quarter a statement in Form No. 27Q to the Director General of Income-tax (Systems) or the person or agency authorized by the Director General of Income-tax (Systems) referred to in rule 36A :
Provided that where the income by way of interest on securities referred to in section 193 or the payment to non-resident sportsmen or sports associations referred to in section 194E or the interest or any other sum referred to in section 195 or the income of a foreign company referred to in sub-section (2) of section 196A or the income from units referred to in section 196B or the income from foreign currency bonds or shares of an Indian company referred to in section 196C or the income of Foreign Institutional Investors from securities referred to in section 196D is credited by a person to the account of the payee as on the date up to which the accounts of such person are made, the statement in Form No. 27Q shall be sent within fourteen days after the expiry of two months from the month in which income is so credited.]"
......................................................
Omitted by the IT (Fourth Amendment) Rules, 1997, w.e.f. 19-3-1997.
(1) Where a person responsible for deducting tax under Chapter XVII-B is required to file any return or statement referred to in rule 37 or rule 37A on a computer media, he shall deliver or cause to be delivered such return or statement in accordance with such scheme as may be specified by the Board in this behalf within the time specified under rule 37 or rule 37A, as the case may be.
(2) The return or statement filed on a computer media shall contain all the information required under rule 37 or rule 37A, as the case may be.
(3) The return or statement filed on computer media shall be accompanied by Form No. 27A furnishing the information specified therein.
...............................................
2 Substituted by IT (Sixteenth Amendment) Rules, 2003 w.e.f. 26.08.2003. Prior to Substitution it read as under:
1[Returns regarding tax deducted at source on computer media under sub-section (2) of section 206. (1) Where a person responsible for deducting the tax under Chapter XVII-B desires to file any return or statement referred to in rule 37 or rule 37A on a computer media, he shall deliver or cause to be delivered to the Assessing Officer referred to in rule 36A such return or statement on a computer media within the time specified under rule 37 or rule 37A, as the case may be.
(2) The return or statement filed on a computer media must contain all the information required under rule 37 or rule 37A, as the case may be.
(3) The computer media must conform to the following specifications :
(a) CD ROM of 650 MB capacity;
(b) 4mm 2 GB/4GB (90M/120M) DAT Cartridge; or
(c) 3.5" 1.44 MB floppy diskette.
(4) While filing the return or statement on a computer media, the person responsible for deducting the tax shall ensure that:
(i) the return or statement is accompanied with Form No. 27A furnishing the information specified therein;
(ii) in no case, more than one return or statement is included on one unit of computer media. However, a single return or statement may spawn multiple units of the same computer media. If more than one unit of computer media is used in the case of a particular type of return or statement, then each computer media will be serially numbered;
(iii) if the data relating to a return or statement is copied using data compression or backup software utility, the corresponding software utility or procedure for its decompression or restoration shall also be furnished along with the computer media return or statement;
(iv) the return or statement is accompanied with a certificate regard ing clean and virus free data.]
(1) The information under sub-section (6) of section 195 shall be furnished by the person responsible for making the payment to a non-resident, not being a company, or to a foreign company, after obtaining a certificate from an accountant as defined in the Explanation to section 288 of the Income-tax Act, 1961.
(2) The information to be furnished under sub-section (6) of section 195 shall be in Form No.15CA and shall be verified in the manner indicated therein and the certificate from an accountant referred to in sub-rule (1) shall be obtained in Form No.15CB.
(3) The information in Form No. 15CA shall be furnished electronically to the website designated by the Income-tax Department and thereafter signed printout of the said form shall be submitted prior to remitting the payment.
(4) The Director-General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture, transmission of data and shall also be responsible for the day-to-day administration in relation to furnishing the information in the manner specified.]
Toc
___________________________
1. Inserted by the Income-tax (Seventh Amendment) Rules, 2009 vide Notification No. 30/2009 dated 25.03.2009.
(1) A declaration under sub-section (1A) of section 206C to the effect that any of the gods referred to in the Table in sub-section (1) of that section are to be utilised for the purposes of manufacturing, processing or producing or producing articles or things and not for trading purposes shall be in Form No. 27C and shall be verified in the manner indicated therein.
(2) The declaration referred to in sub-rule (1) shall be furnished in duplicate to the person responsible for collecting tax.
(3) The person referred to in sub-rule (2) shall deliver or cause to be delivered to the Chief Commissioner or Commissioner, one copy of the declaration referred to in sub-rule (1) on or before the seventh day of the month next following the month in which the declaration is furnished to him.
Explanation. - For the purposes of sub-rule (3), the Chief Commissioner or Commissioner means the Chief Commissioner or Commissioner to whom the Assessing Officer, having jurisdiction to assess the person referred to in sub-rule (2), is subordinate.
..........................................................
1. Substituted by Income-tax (Twenty-Second Amendment) Rules, 2003 w.e.f. 30.09.2003. Prior to substitution it read as under:
37C.- Certificate for no collection of tax at source under section 206C(1). (1) The certificate to he given by the Assessing Officer to the effect that any of the goods referred to in the Table in sub-section (1) section 206C are to be utilised for the purposes of manufacturing, processing or producing articles or things and not for trading purposes shall be in Form No. 27C.
(2) The certificate given under sub-rule (1) shall be valid for such period (not exceeding one year from the date of certificate) as the Assessing Officer may specify therein, unless it is cancelled by him at any time before the expiry of the specified period.
(3) An application for a fresh certificate may be made, if required, alter the expiry of the period of validity of the earlier certificate.
(4) The certificate shall be valid only for the person named therein.
(1) All sums collected in accordance with the provisions of sub-section (1) or sub-section (1C) of section 206C by an office of the Government shall be paid to the credit of the Central Government -
(a) on the same day where the tax is so paid without production of an income-tax challan; and
(b) on or before seven days from the end of the month in which the collection is made, where tax is paid accompanied by an income-tax challan.
(2) All sums collected in accordance with the provisions of sub-section (1) or sub-section (1C) of section 206C by collectors other than an office of the Government shall be paid to the credit of the Central Government within one week from the last day of the month in which the collection is made.
(3) In the case of an office of the Government, where tax has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person by whatever name called to whom the collector reports the tax so collected and who is responsible for crediting such sum to the credit of the Central Government, shall-
(a) submit a statement in Form No. 24G within ten days from the end of the month to the agency authorised by the Director General of Income-tax (Systems) in respect of tax collected by the collectors and reported to him for that month; and
(b) intimate the number (hereinafter referred to as the Book Identification Number) generated by the agency to each of the collectors in respect of whom the sum collected has been credited.
(4) For the purpose of sub-rule (3), the Director General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data, and shall also be responsible for the day-to-day administration in relation to furnishing the information in the manner so specified.
(5) (i) Where tax has been deposited accompanied by an income-tax challan, the tax collected under sub-section (1) or sub-section (1C) of section 206C shall be deposited to the credit of the Central Government by remitting it within the time specified in clause (b) of sub-rule (1) or in sub-rule (2) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorised bank.
(ii) Where tax is to be deposited in accordance with clause (i), by persons referred to in sub-rule (1) of rule 125, the amount collected shall be electronically remitted into the Reserve Bank of India or the State Bank of India or any authorised bank accompanied by an electronic income-tax challan.
(6) For the purpose of this rule, the amount shall be construed as electronically remitted to the Reserve Bank of India or to the State Bank of India or to any authorised bank, if the amount is remitted by way of-
(a) internet banking facility of the Reserve Bank of India or of the State Bank of India or of any authorised bank; or
(b) debit card.
(7) Where tax is collected before the 1st day of April, 2010, the provisions of this rule shall apply as they stood immediately before their substitution by the Income-tax (6[6th] Amendment) Rules, 2010.]
...............................................
5. Substituted by the Income tax (sixth Amendment) Rules, 2010 vide Notification No. 41/2010 dated 31.05.2010 w.e.f. 01.04.2010 previous text was :-
"4[37CA. Time and mode of payment to Government account of tax collected at source under section 206C.--
(1) All sums collected in accordance with the provisions of sub-section (1) or sub-section (1C) of section 206C shall be paid to the credit of the Central Government within one week from the last day of the month in which the collection is made.
(2) The person responsible for making collection under sub-section (1) or sub-section (1C) of section 206C shall pay the amount of tax so collected to the credit of the Central Government by remitting it within the time prescribed in sub-rule (1) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorized bank accompanied by an income-tax challan:
Provided that where the collection is made by or on behalf of the Government, the amount shall be credited within the time and in the manner aforesaid without the production of a challan."
6. Inserted vide Notification No. 55/2010 dated 19.07.2010.
4. Inserted by the Income tax (first Amendment) Rules, 2010 vide Notification No. 9/2010 dated 18.02.2010 w.e.f. 01.04.2009 previous text was : -
"3[37CA. Time and mode of payment to Government account of tax collected at source under Chapter XVII-BB.--
(1) All sums collected in accordance with the provisions of Chapter XVII-BB shall be paid to the credit of the Central Government within one week from the end of the month in which the collection is made.
(2) The person responsible for making collection under Chapter XVII-BB shall, within the time specified in sub-rule (1), -
(a) electronically furnish an income-tax challan in Form No.17; and
(b) pay the amount so collected to the credit of the Central Government by electronically remitting it into the Reserve Bank of India, State Bank of India or any authorised bank.
(3) For the purposes of this rule, the amount shall be construed as electronically remitted to the Reserve Bank of India or of the State Bank of India or of any authorised bank, if the amount is remitted by way of
(a) internet banking facility of the Reserve Bank of India or of the State Bank of India or of any authorised bank; or
(b) credit or debit card.]"
3. Substituted by the Income Tax Eighth Amendment Rules 2009 vide notification No. 31/2009 dated 25.03.2009.
37CA. Time and mode of payment of Government account of tax collected at source under section 206C (1) All sums collected in accordance with the provisions of sub-section (1) 2[or sub-section (IC)] of section 206C shall be paid to the credit of the Central Government within one week from the last day of the month in which the collection is made.
(2) The person responsible for making collection under sub-section (1) 2[or sub-section (IC)] of section 206C shall pay the amount of tax so collected to the credit of the Central government by remitting it within the time prescribed in sub-rule (1) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorized bank accompanied by an income-tax challan:
Provided that where the collection is made by or on behalf of the Government, the amount shall be credited within the time and in the manner aforesaid without the production of a Challan.]
2. Inserted by Income-tax (Sixteenth Amendment) Rules, 2004 dated 30.11.2004.
(1) The certificate of collection of tax at source under sub-section (5) of section 206C to be furnished by the collector shall be in Form 27D.
(2) The certificate referred to in sub-rule (1) shall specify:-
(a) valid permanent account number (PAN) of the collectee;
(b) valid tax deduction and collection account number (TAN) of the collector;
(c) (i) book identification number or numbers where deposit of tax collected is without production of challan in case of an office of the Government;
(ii) challan identification number or numbers in case of payment through bank;
(d) receipt number of the relevant quarterly statement of tax collected at source which is furnished in accordance with the provisions of rule 31AA.
(3) The certificate in the Form No. 27D referred to in sub-rule (1) shall be furnished to the collectee within fifteen days from the due date for furnishing the statement of tax collected at source specified under sub-rule (2) of rule 31AA.
(4) The collector may issue a duplicate certificate in Form No. 27D if the collectee has lost the original certificate so issued and makes a request for issuance of a duplicate certificate and such duplicate certificate is certified as duplicate by the collector.
(5) Where a certificate is to be furnished for tax collected before the 1st day of April, 2010, it shall be furnished in the Form in accordance with the provisions of the rules as they stood immediately before their substitution by the Income-tax (6[6th] Amendment) Rules, 2010.]
,,.........................................
1. Substituted by the Income-tax (Twenty-Second Amendment) Rules, 2003 w.e.f. 30.09.2003 for the following : -
"37D.- Certificate for collection of tax at source under section 206C(5). The certificate to he furnished by any person collecting tax at source under sub-section (5) of section 206C shall be in Form No. 27D."
2. Inserted by the Income-tax (Sixteenth Amendment) Rules, 2004 w.e.f. 30.11.2004.
3. Substituted by the Income Tax Eighth Amendment Rules 2009 vide notification No. 31/2009 dated 25.03.2009 for the following : -
"1[37D. Certificate for collection of tax at source under section 206C(5).-
(1) The certificate of collection of tax at source under sub-section (5) of section 206C to be furnished by any person collecting tax at source under sub-section (1) 2[or sub-section (IC)] of that section shall be in Form No. 27D.
(2) The certificate referred in sub-rule (1) 2[or sub-section (IC)] shall be furnished within a period of one month from the end of the month during which the amount is debited to the account of the buyer or payment is received from the buyer, as the case may be:
Provided that where more than one certificate is required to be furnished to a buyer for tax collected at source in respect of the period ending on the 30th September and the 31st March in each financial year, the person collecting the tax, may or request from such buyer, issue within one month from the end of such period, a consolidated certificate in Form No. 27D for tax collected during whole of such period.
(3) Where in a case, the certificate for tax collected at source issued under this rule is lost the person collecting tax at source may issue a duplicate certificate of collection of tax at source on a plain paper giving necessary details as contained in Form No. 27D.
(4) The Assessing Officer before giving credit for the tax collected at source on the basis of duplicate certificate referred to in sub-rule (3), shall get the payment certified from the Assessing Officer designated in this behalf by the Chief Commissioner or Commissioner and shall also obtain an Indemnity Bond from the assessee.]"
4. Substituted by the Income tax (first Amendment) Rules, 2010 vide Notification No. 9/2010 dated 18.02.2010 w.e.f. 01.04.2009 previous text was : -
"3[37D. (1) The certificate of collection of tax at source under sub-section (5) of section 206C shall be in Form No.27D.
(2) The certificate referred to in sub-rule (1), shall be furnished to the deductee within one month from the end of the month in which the amount is debited to the account of the buyer or licensee or lessee or payment is received from the buyer or licensee or lessee, as the case may be.
(3) The person responsible for collecting tax at source may issue a duplicate certificate in Form No.27D, if the buyer or licensee or lessee has lost the original certificate so issued and makes a request for issuance of a duplicate certificate and such duplicate certificate is certified as duplicate by the person responsible for collecting tax at source.
(4) The Assessing Officer, before giving credit for the tax collected at source on the basis of duplicate certificate referred to in sub-rule (3), shall-
(a) obtain an Indemnity Bond from the buyer or licensee or lessee; and
(b) get the payment certified by the Assessing Officer designated in this behalf by the Chief Commissioner or the Commissioner.]"
5. Substituted by the Income tax (sixth Amendment) Rules, 2010 vide Notification No. 41/2010 dated 31.05.2010 w.e.f. 01.04.2010 previous text was : -
"4[37D. Certificate for collection of tax at source under section 206C (5).--
(1) The certificate of collection of tax at source under sub-section (5) of section 206C to be furnished by any person collecting tax at source under sub-section (1) or subsection (1C) of that section shall be in Form No. 27D.
(2) The certificate referred to in sub-rule (1) shall be furnished within a period of one month from the end of the month during which the amount is debited to the account of the buyer or licensee or lessee or payment is received from the buyer or licensee or lessee, as the case may be:
Provided that where more than one certificate is required to be furnished to a buyer or licensee or lessee for tax collected at source in respect of the period ending on the 30th September and the 31st March in each financial year, the person collecting the tax, may on request from such buyer or licensee or lessee, issue within one month from the end of such period, a consolidated certificate in Form No. 27D for tax collected during whole of such period.
(3) Where in a case, the certificate for tax collected at source issued under this rule is lost, the person collecting tax at source may issue a duplicate certificate of collection of tax at source on a plain paper giving necessary details as contained in Form No. 27D.
(4) The Assessing Officer before giving credit for the tax collected at source on the basis of duplicate certificate referred to in sub-rule (3), shall get the payment certified from the Assessing Officer designated in this behalf by the Chief Commissioner or Commissioner and shall also obtain an Indemnity Bond from the assessee.]"
6. Inserted vide Notification No. 55/2010 dated 19.07.2010.
Every person collecting tax in accordance with the provisions of section 206C shall, in respect of a financial year, deliver or cause to be delivered to the 6[Director General of Income-tax (Systems) or the person or agency authorised by the Director General of Income-tax (Systems)] referred to in rule 37F, the return for collection of tax in Form No.27E by the end of June following the financial year.]
Back
___________________________
1. Inserted by the IT (Third Amendment) Rules, 1990, w.e.f. 19-2-1990.
2 Substituted by the IT (Fourth Amendment) Rules, 1997, w.e.f. 19-3-1997. Prior to its substitution the Table, as inserted by the IT (Third Amendment) Rules, 1990, w.e.f. 19-2-1990, read as under:
Sl No. Nature of Returns Form No.
1. Half-yearly return of collection of tax under section 206C from buyers of alcoholic liquor for human consumption 27EA
2. Half-yearly return of collection of tax under section 206C from buyers of timber obtained under a forest lease. 27EB
3. Half-yearly return of collection of tax under section 206C from buyers of timber obtained by any mode other than under a forest lease. 27EC
4. Half-yearly return of collection of tax under section 206C from buyers of any other forest produce not being timber. 27ED
3.Substituted by Income-Tax (13th Amendment) Rules, 2003 w.e.f. 31.7.2003. Prior to its substitution Rule 36 read as under:
37E. 1[Prescribed returns regarding tax collected at source under section 206C(5A).--
Every person collecting tax in accordance with the provisions of section 206C shall, in respect of the period ending on 30th September and 31st March in each financial year, deliver or caused to be delivered to the Income-tax Officer referred to in rule 37F, the returns mentioned in column (1) of the Table below in Form No. specified in the corresponding entry in column (2) of the said Table within one month from the end of the period for which the return mentioned in column (1) of the Table is required to be filed :--
2TABLE
Sl No. Nature of Returns Form No.
1. Half-yearly return of collection of tax under section 206C from
the buyers of alcoholic liquor for hum
an consumption (other
than Indian made foreign liquor) and tendu leaves. 27EA
2. Half-yearly return of collection of tax under section 206C from
buyers of timber obtained under a forest lease. 27EB
3. Half-yearly return of collection of tax under section 206C from
buyers of timber obtained by any mode other than under a forest lease. 27EC
4. Half-yearly return of collection of tax under section 206C from
buyers of any other forest produce not being timber or tendu
leaves 27ED
4. Inserted by Income-tax (Twenty-Second Amendment) Rules, 2003 w.e.f. 30.09.2003.
5. Substituted by Income-tax (Eleventh Amendment) Rules, 2005 vide Notification No. 124/2005 dated 30.03.2005.
3[37E. Every person collecting tax in accordance with the provisions of section 206C shall, in respect of the period ending on 30th September and 31st March in each financial year, deliver or cause to be delivered to the income-tax authority referred to in rule 37F, the return for collection of tax in Form No.27E.] 4[within one month from the end of the period for which the return is required to be filed.]
6. Substituted by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dt 30.06.2005 for the words Income-tax Authority.
(1) Where a person responsible for collecting tax under Chapter XVII-BB is required to file any return referred to in rule 37E on computer media, such person shall deliver or cause to be delivered such return in accordance with such scheme as may be specified by the Board in this behalf within the time specified under rule 37E.
(2) The return filed on the computer media shall contain all the information required under rule 37E.
(3) The return filed on the computer media shall be accompanied by Form No.27B furnishing the information specified therein.]
_____________________________
1. Inserted by the IT (Twenty-fifth Amendment) Rules, 1999, w.e.f. 2-7-1999.
2. Substituted by IT (9th Amendment) Rules, 2005, w.e.f. 30.03.2005.
37EA. 1[Returns regarding tax collected at source on computer media under sub-section (5B) of section 206C.
(1) Where a person responsible for collecting the tax under Chapter XVII-BB of the Act desires to file any return of the nature referred to in rule 37E on a computer media, he shall deliver or cause to be delivered to the Income-tax Officer referred to in rule 37F such return on a computer media within the time specified under rule 37E.
(2) The return filed on a computer media shall be in the Form No. 27EA or Form No. 27ED or 27EC or 27ED, as the case may be, and contain all the information, details and particulars specified in such Forms.
(3) The computer media shall conform to the following specifications, namely :--
(a) CD ROM of 650 MB capacity; or
(b) 4mm 2 GB/4GB (90M/120M) DAT Cartridge; or
(c) 3.5 1.44 MB floppy diskette.
(4) While filing the return on a computer media, the person responsible for collecting the tax shall ensure that:--
(i) such return is accompanied with Form No. 27B and verified in the manner indicated therein;
(i) only one return is included on one unit of computer media. However, a single return may spawn multiple units of the same computer media. If more than one unit of computer media is used in the ease of a particular type of return, then each computer media will be serially numbered;
(ii) in a case where the data relating to a return is copied using data compression or backup software utility, the corresponding software utility or procedure for its decompression or restoration shall also be furnished along with the computer media return;
(iv) the return is accompanied with a certificate regarding clean and virus free data.
The return referred to in rule 37E shall be furnished to the Director General of Income-tax (Systems) or the person or agency authorised by the Director General of Income-tax (Systems);]
____________________________
1. Inserted by the IT (Third Amendment) Rules, 1990, w.e.f. 19-2-1990.
2. Substituted by Income-tax (19th Amendment) Rules, 2005 vide Notification No. 178/2005 dated 30.06.2005 for the following:-
37F. 1[Income-tax authority for purposes of section 206C (5A).-The return referred to in rule 37E shall be furnished to :--
(i) the Income-tax Officer so designated by the Chief Commissioner or Commissioner of Income-tax within whose area of jurisdiction the officeof the person responsible for collecting tax under Chapter XVII-BB is situated; or in any other case, to the Income-tax Officer within whose area of jurisdiction the office of the person responsible for collecting tax under Chapter XVII-BB is situated.]
An application by the buyer or licensee or lessee for a certificate under sub-section (9) of section 206C shall be made in Form No.13.]
_________________________
1. Rules 37G and 37H inserted by the IT (Twenty-third Amendment) Rules, 1999, w.e.f. 29-6-1999.
2. Substituted for words Form No. 27F. by Income-tax (Twenty-Fourth Amendment) Rules, 2003 w.e.f. 01.10.2003
3. Substituted by Income-tax (Sixteenth Amendment) Rules, 2004 w.e.f. 31.11.2004. for the following:-
37G. 1[Application for certificate for collection of tax at lower rates under sub-section (9) of section 206C.--
An application by a buyer for a certificate under sub-section (9) of section 206C shall be made in 2[Form No.13.]
(1) Where the Assessing Officer is satisfied that the total income of the 2[buyer or licensee or lessee] justifies the collection of tax at any lower rate than the relevant rate specified in 3[or sub-section (IC)] of section 206C, he shall, on an application made by the 2[buyer or licensee or lessee] under rule 37G, give to him a certificate in 1[***] for collection of tax at such lower rate than the relevant rate specified in 3[or sub-section (IC)] of that section.
(2) The certificate given under sub-rule (1) shall be valid for the assessment year specified in that certificate, unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period.
(3) An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate given under sub-rule (1).
(4) The certificate shall be valid only for the person named therein.
(5) The certificate shall be issued direct to the person responsible for collecting the tax under advice to the buyer who made an application for issue of such certificate.
______________________________
1. Omitted Form No. 27G by Income-tax (Twenty-Fourth Amendment) Rules, 2003 w.e.f. 01.10.2003
2. Substituted by Income-tax (Sixteenth Amendment) Rules, 2004 w.e.f. 30.11.2004 for the word buyer.
3 Substituted by Income-tax (Sixteenth Amendment) Rules, 2004 w.e.f. 30.11.2004 for the word sub-section (I).
(1) Credit for tax collected at source and paid to the Central Government in accordance with provisions of section 206C of the Act, shall be given to the person form whom the tax has been collected, on the basis of the information relating to collection of tax furnished by the person responsible for collection of tax at source (hereinafter referred to as the collector) to the income-tax authority or the person authorized by such authority.
(2) (i) Where tax has been collected at source and paid to the Central Government, credit for such tax shall be given for the assessment year for which the income is assessable to tax.
(ii) Where tax has been collected at source and paid to the Central Government and the lease or license is relatable to more than one year, credit for tax collected at source shall be allowed across those years to which the lease or license relates in the same proportion.
(3) Credit for tax collected at source and paid to the account of the Central Government shall be granted on the basis of -
(i) the information relating to collection of tax furnished by the collector to the income-tax authority or the person authorized by such authority; and
(ii) the information in the return of income in respect of the claim for the credit,
subject to verification in accordance with the risk management strategy formulated by the Board from time to time.]
___________________________________
1. Inserted vide Notification No. 28/2009 dated 16.03.2009 Income-tax (Sixth Amendment) Rules, 2009 w.e.f 01.04.2009
Notwithstanding anything contained in rule 15, the notice of demand under section 156 to be served upon the asscssee in pursuance of an order under section 210 shall be in Form No. 28.
Omitted by the IT (Tenth Amendment) Rules, 1989, w.e.f. 13-9-1989.
The intimation which an assessee has to send to the Assessing Officer under sub-section (5) of section 210 shall be in Form No. 28A.
The Assessing Officer may reduce or waive the interest payable under section 215 or section 217 in the cases and under the circumstances mentioned below, namely:--
(1) When the relevant assessment is completed more than one year after the submission of the return, the delay in assessment not being attributable to the assessee. (2) Where a person is under section 163 treated as an agent of another person and is assessed upon the latter's income.
(2) Where the assesscc has income from an unregistered firm assessed under the provisions of clause (b) of section 183.Where the previous year is the financial year or any year ending about the close of the financial year and large profits are made after the 1st March (or the 15th March in cases where the proviso to section 211 applies), in circumstances which could not be foreseen.
(3) Any case in which the Deputy Commissioner considers that the circumstances are such that a reduction or waiver of the interest payable under section 215 or section 217 is justified.
(4) Nothing contained in this rule shall apply in respect of any assessment for the assessment year commencing on the first day of April, 1989, or any subsequent assessment year.
Omitted by the IT (Fifth Amendment) Rules, 1989, w.e.f. 18-5-1989. Earlier it was inserted by the IT (Second Amendment) Rules, 1968.
The report of an accountant which is required !o be furnished by the assessee along with the return of income, under sub-section (4) of section 115JB shall be in Form No. 29B.
.........................................
1. Inserted by the Income-tax (Nineteenth Amendment) Rules, 2000, w.e.f. 27-9-2000.
The report of an accountant which is required to be furnished by the assessee under sub-section (3) of section 115JC, shall be in Form No.29C.]
.......................................
2. Inserted by the Income-tax (9th Amendment) Rules, 2011, w.e.f. 01.04.2012.
(1) For the purposes of clause (ba) of sub-section (1) of section 115WC, the fair market value of any specified security or sweat equity share, being an equity share in a company, on the date on which the option vests with the employee, shall be determined in accordance with the provisions of sub-rule (2) or sub-rule (3).
(2) In a case where, on the date of the vesting of the option, the share in the company is listed on a recognized stock exchange, the fair market value shall be the average of the opening price and closing price of the share on that date on the said stock exchange:
Provided that where, on the date of vesting of the option, the share is listed on more than one recognized stock exchanges, the fair market value shall be the average of opening price and closing price of the share on the recognised stock exchange which records the highest volume of trading in the share:
Provided further that where, on the date of vesting of the option, there is no trading in the share on any recognized stock exchange, the fair market value shall be -
(a) the closing price of the share on any recognised stock exchange on a date closest to the date of vesting of the option and immediately preceding such date; or
(b) the closing price of the share on a recognised stock exchange, which records the highest volume of trading in such share, if the closing price, as on the date closest to the date of vesting of the option and immediately preceding such date, is recorded on more than one recognized stock exchange.
(3) In a case where, on the date of vesting of the option, the share in the company is not listed on a recognized stock exchange, the fair market value shall be such value of the share in the company as determined by a merchant banker on the specified date.
(4) For the purpose of this rule,-
(a) closing price of a share on a recognised stock exchange on a date shall be the price of the last settlement on such date on such stock exchange:
Provided that where the stock exchange quotes both buy and sell prices, the closing price shall be the sell price of the last settlement.
(b) merchant banker means category I merchant banker registered with Security and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(c) opening price of a share on a recognised stock exchange on a date shall be the price of the first settlement on such date on such stock exchange:
Provided that where the stock exchange quotes both buy and sell prices, the opening price shall be the sell price of the first settlement.
(d) recognised stock exchange shall have the same meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(e) specified date means,-
(i) the date of vesting of the option; or
(ii) any date earlier than the date of the vesting of the option, not being a date which is more than 180 days earlier than the date of the vesting;
2[***]
[F. No. 142/25/2007-TPL]
EXPLANATORY MEMORANDUM
The Finance Act, 2007 amended the provisions of the Income-tax Act to provide that employers will be liable to pay fringe benefit tax on the value of ESOPs granted to employees as and when the ESOPs were allotted or transferred to the employees. The value of ESOPs for the purposes of levy of FBT shall be the fair market value of the ESOPs on the date of vesting of the options as reduced by the amount actually paid, or recovered from, the employee.
Explanation (i) to clause (ba) of sub-section (1) of section 115WC of the Income-tax Act defines fair market value to mean the value determined in accordance with the method as may be prescribed by the Board. Accordingly, a new Rule 40C has been inserted in the Income-tax Rules for this purpose.
The new Rule 40C will take effect from the 1st April, 2008 and will, accordingly, apply in relation to the assessment year 2008-2009 and subsequent years.]
....................................................
1. Inserted by the Income-tax (Twelfth Amendment) Rules, 2007 vide Notification No : 264/2007 dated 23.10.2007 w.e.f. 01.04.2008.
2. Omitted by the Income-tax (Second Amendment) Rules, 2008 Notification No : 11/2008 w.e.f. 01.04.2008 for the following :-
"(f) equity share shall have the meaning assigned to it in section 85 of the Companies Act, 1956 (1 of 1956)"
For the purposes of clause (ba) of sub-section (1) of section 115WC, the fair market value of any specified security, not being an equity share in a company, on the date on which the option vests with the employee, shall be such value as determined by a merchant banker on the specified date.
Explanation. For the purposes of this rule, merchant banker and specified date shall have the meanings assigned to them in clause (b) and clause (e) respectively of sub-rule (4) of rule 40C.]
_________________________
1. Inserted by the Income-tax (Second Amendment) Rules, 2008 Notification No. 11/2008 w.e.f. 01.04.2008.
40E. For the purposes of sub-clause (iii) of clause (B) of sub-section (2) of section 115WB, the non-transferable pre-paid electronic meal card (hereinafter called the "card") shall fulfill the following conditions, namely:-
(i) The card shall be granted by the employer to its employees under a scheme framed by the employer specifying therein the circumstances under which the meal card can be used by the employee.
(ii) The card under clause (i) shall be issued by the issuing bank.
(iii) An employee shall not be issued more than one card.
(iv) The card shall bear the name of the employer along with the name, photograph and signature of the employee to whom the card is issued.
(v) The card shall be used only by the employee to whom the card is issued.
(vi) The card shall be used by the employee only for the purpose of purchasing ready to eat food or non-alcoholic beverage from a member establishment.
(vii) The aggregate amount of ready to eat food or non-alcoholic beverage purchased during a day by an employee shall not exceed one hundred rupees.
(viii) The details of each transaction of purchases made by the employee against the card shall be maintained by the employer and the member establishment in such manner and for such period as is required under the Act for any other similar transaction.
Explanation.- for the purposes of this rule,-
(i) "banking company" shall have the same meaning as assigned to in clause (viii) of subsection
(1) of section 36 of the Act;
(ii) "issuing bank" means a banking company-
(a) which issues the card to the employees of an employer in pursuance to an agreement entered into with the employer; and
(b) which has entered into a contract with the member establishment authorizing him to allow purchases against the card issued by it in accordance with the conditions stipulated in sub-clause (iii) of clause (B) of sub-section (2) of section 115WB and this rule; and
(iii) "member establishment" shall mean a restaurant, hotel, canteen or an outlet which sells ready to eat food or non-alcoholic beverage, but shall not include a restaurant, hotel, canteen or an outlet selling alcoholic beverage.
1. Inserted by the Income-tax (First Amendment) Rules, 2009 vide Notification No : 01/2009 dated 05.01.2009 w.e.f. 01.04.2009.
(1) A claim for refund under Chapter XIX shall be made in Form No. 30.
(2) The claim under sub-rule (1) shall be accompanied by a return in the form prescribed under section 139 unless the claimant has already made such a return to the Assessing Officer
(3) Where any part of the total income of a person making a claim for refund of tax consists of dividends or any other income from which tax has been deducted under the provisions of sections 192 to 194, section 194A and section 195, the claim shall be accompanied by the certificates prescribed under section 203.
(4) The claim under sub-rule (1) may be presented by the claimant in person or through a duly authorised agent or may be sent by post.
(1) For the purposes of sub-section (1) of section 230, the prescribed authority shall be the Chief Commissioner of Income-tax or the Director-General of Income-tax, as the case may be, who has jurisdiction over the persons not domiciled in India or any other income-tax authority authorized by such Chief Commissioner or Director General in this behalf.
(2) For the purposes of sub-section (1A) of section 230, the prescribed authority shall be the Chief Commissioner of Income-tax having jurisdiction over the persons domiciled in India or any other income-tax authority authorized by him in this behalf:
Provided that in the case of a person domiciled in India referred to in the first proviso to sub-section (1A) of section 230, the application shall be made to the Assessing Officer who has jurisdiction to assess such person.]
______________________________
1. Substituted by Income-tax (Twenty-Eighth Amendment) Rules, 2003 w.e.f. 21.11.2003. Prior to substitution it read as under:
42. Application for tax clearance certificate. (1) An application under section 230 for a tax clearance certificate or an exemption certificate may be made in Form No. 31 to any competent authority.
(2) Where the applicant is a person domiciled in India or is a person who has been assessed by an Assessing Officer anywhere in India, the application shall be accompanied by an authorisation in Form No. 32 to be obtained by the applicant from the Assessing Officer who has jurisdiction to assess him.
(1) An undertaking to be furnished to the prescribed authority by a person not domiciled in India from the persons referred to in clause (i) or clause (ii), as the case may be, shall be in Form No. 30A.
(2) A No-Objection Certificate to be issued by the prescribed authority under sub-section (1) of section 230 shall be in Form No. 30B and shall be valid for the period mentioned, therein.
(3) The information to be furnished by a person domiciled in India shall be in Form No. 30C.
(4) An application under the first proviso to sub-section (1A) of section 230 may be made in Form No. 31.
(5) A tax clearance certificate issued under the first proviso to sub-section (1A) of section 230 shall be in Form No. 33 and shall be valid for the period mentioned therein.
(6) A copy the undertaking referred to in sub-rule (1) and the non-objection certificate referred to in sub-rule (2) shall be forwarded to the Chief Commissioner or Director General, as the case may be, having jurisdiction over the persons referred to in clause (i) or clause (ii) of sub-section (i) or section 230.]
_________________________
1.Substituted by Income-tax (Twenty-Eighth Amendment) Rules, 2003 w.e.f. 21.11.2003. Prior to substitution it read as under:
"43. Form of certificate.--(1) A lax clearance certificate issued under sub-section (1) of section 230 shall be in Form No. 33 and shall be valid for the period mentioned therein.
(2) An exemption certificate issued under the proviso to sub-section (1) of section 230 shall be in Form No. 34 and shall be valid for the period mentioned therein."
Any person leaving India shall, at the request of any Customs Officer, produce to him for examination the tax clearance certificate or the exemption certificate, as the case may be.
An application under sub-section (2) of section 230A for a certificate under sub-section (1) of that section shall be made in duplicate in Form No. 34A to the Assessing Officer.
Within 60 days of the receipt of the application referred to in rule 44A, the Assessing Officer shall--
(i) if he is satisfied that the applicant has either paid or made satisfactory provision for payment of all existing liabilities under the enactments specified in clause (a) of sub-section (1) of section 230A or that the registration of the document referred to in the application will not prejudicially affect the recovery of any such liability, grant the certificate and forward the same to the registering officer concerned ; or
(ii) if he is not so satisfied, pass an order in writing refusing to grant the certificate, recording his reasons therefor.
(1) An application for settlement of a case under sub-section (1) of section 245C shall be made in quintuplicatc in Form No. 34B 'and shall be verified in the manner indicated therein.
(2) The application referred to in sub-rule (1), the verification appended thereto, the Annexure to the said application and the statements and documents accompanying the Annexure shall be signed by the person specified in sub-rule (2) of rule 45.
(3) Every application in connection with the settlement of a case shall be accompanied by a fee of five hundred rupees.
2[(4) The assessee shall, on the date on which he makes the application to the Settlement Commission, intimate in Form No. 34BA to the Assessing Officer of having made such application to the Commission.]
______________________________
1. Substituted by the Income-tax (Ninth Amendment) Rules, 2007 w.e.f. 07.08.2007 vide Notification No. 215/2007 for the heading :-
"Form of application for settlement of case"
2. Inserted by the Income-tax (Ninth Amendment) Rules, 2007 w.e.f. 07.08.2007 vide Notification No. 215/2007 .
1[(1) The Settlement Commission shall, while calling for a report from the Commissioner under sub-section (2B) of section 245D, forward a copy of the application in Form No. 34B (other than the Annexure and the statements and other documents accompanying such Annexure) along with a copy of the order under sub-section (1) of section 245D or, as the case may be, an intimation in respect of an application deemed to have been allowed to be proceeded with under sub-section (2A) of that section 245D.
(2) Where an application has not been declared invalid under sub-section (2C) of section 245D or an application has been allowed to be further proceeded with under sub-section (2D) of section 245D, the information contained in the Annexure to the application in Form No. 34B and in the statements and other documents accompanying such Annexure shall be sent to the Commissioner.
(c) in Appendix II, for Form No. 34B, the following Forms shall be substituted, namely :
Form No. 34B
Form No. 34BA]
__________________________________
1. Substituted by the Income-tax (Ninth Amendment) Rules, 2007 w.e.f. 07.08.2007 vide Notification No. 215/2007 for the following :-
"(1) The Settlement Commission may, while calling for a report from the Commissioner under sub-section (1) of section 245D, forward a copy of the application filed in Form No. 34B (other than the Annexure and the statements and other documents accompanying such Annexure).
(2) Where an order under sub-section (1) of section 245D allowing the application to be proceeded with is made by the Settlement Commission, the information contained in the Annexure to the application in Form No. 34B and in the statements and other documents accompanying such Annexure shall be sent to the Commissioner along with a copy of the said order."
(1) The following scale of fees shall be levied by the Settlement Commission for furnishing under section 245G a copy of any report or part of any report made by any income-tax authority to the Settlement Commission :--
For the first two hundred words or less 80 paise
For every additional hundred words or fraction thereof 40 paise.
(2) The fee referred to in sub-rule (1) shall be recovered in advance in cash.
2[(1) An application for obtaining an advance ruling under sub-section (1) of section 245Q shall be made in quadruplicate,--
(a) in Form No. 34C in respect of a non-resident applicant;
3[(b) in Form No. 34D in respect of a resident applicant seeking advance ruling in relation to a transaction undertaken or proposed to be undertaken by him with a non-resident; and
(c) in Form No. 34E in respect of a resident falling within any such class or category of person as notified by the Central Government in exercise of the powers conferred by sub-clause (iii) of clause (b) of section 245N, and shall be verified in the manner indicated therein.]
(2) The application referred to in sub-rule (1), the verification appended thereto, the annexures to the said application and the statements and documents accompanying it, shall be signed,--
(a) in the case of an individual,--
(i) by the individual himself;
(ii)where, for any unavoidable reason, it is not possible for the individual to sign the application, by any person duly authorised by him in this behalf:
Provided that in a case referred to in sub-clause (ii), the person signing the application holds a valid power of attorney from the individual to do so, which shall be attached to the application;
(b) in the case of a Hindu undivided family,--
(i) by the karta thereof, and
(ii)where, for any unavoidable reason, it is not possible for the karta to sign the application, by any other adult member of such family ;
(c) in the case of a company,--
(i) by the Managing Director thereof, or where for any unavoidable reason such Managing Director is not able to sign and verify the application, or where there is no Managing Director, by any Director thereof;
(ii)where, for any unavoidable reason, it is not possible for the Managing Director or the Director to sign the application, by any person duly authorised by the company in this behalf:
Provided that in the case referred to in sub-clause (ii), the person signing the application holds a valid power of attorney from the company to do so, which shall be attached to the application ;
(d) in the case of a firm, by the managing partner thereof, or where for any unavoidable reason such managing partner is not able to sign and verify the application or where there is no managing partner as such, by any partner thereof, not being a minor;
(e) in the case of an association of persons, by any member of the association or the principal officer thereof and
(f) in the case of any other person, by that person or by some person competent to act on his behalf.
______________________________
1. Inserted by the IT (Nineteenth Amendment) Rules, 1993, w.e.f. 2-11-1993.
2. Substituted by the IT (Tenth Amendment) Rules, 1999, w.e.f. 28-5-1999. Prior to its substitution, sub-rule (1) read as under :
(1) An application for obtaining as advance ruling under sub-section (1) of section 245Q shall be made in quadruplicate in Form No. 34C and shall be verified in the manner indicated therein.
3. Substituted by the IT (Thirteenth Amendment) Rules, 2000, w.e.f. 3-8-2000. Prior to their substitution, clauses (b) and (c) read as under :
(b) in Form No. 34D in respect of a person seeking advance ruling in relation to the tax liability of a non-resident arising out of transaction undertaken or proposed to be undertaken by him with a non-resident; and
(c) in Form No. 34E in respect of a resident falling within any such class or category of person as notified by Central Government in exercise of power conferred by sub-clause (ii) of clause (b) of section 245N,
The copy of the advance ruling pronounced by the Authority to be sent to the applicant and to the Commissioner having jurisdiction over his case, shall be certified to be true copy thereof by the Commissioner or Deputy Commissioner, Authority for Advance Rulings, as the case may be.
(1) Where a resident assessee is aggrieved by any action of the tax authorities of any country outside India for the reason that, according to him, such action is not in accordance with the terms of agreement with such other country outside India, he may make an application to the Competent Authority in India seeking to invoke the mutual agreement procedure, if any, provided therein, in terms of Form No.34F]
______________________________________________
1. Inserted by IT (Amendment) Rules, 2002 w.e.f 06.02.2003.
(1) Where a reference has been received from the competent authority of a country outside India under any agreement with that country with regard to any action taken by any Income-tax authority in India, the Competent Authority in India shall call for and examine the relevant records with a view to give his response to the competent authority of the country outside India.
(2) The Competent Authority in India shall endeavour to arrive at a resolution of the case in accordance with such agreement.
(3) The resolution arrived at under mutual agreement procedure, in consultation with the competent authority of the country outside India, shall be communicated wherever necessary, to the Chief Commissioner or the Director-General of Income-tax, as the case be, in writing.
(4) The effect to the resolution arrived at under mutual agreement procedure shall be given by the Assessing Officer within ninety days of receipt of the same by the Chief Commissioner or the Director-General of Income-tax, if the assessee,
(i) gives his acceptance to the resolution taken under mutual agreement procedure; and
(ii) withdraws his appeal, if any, pending on the issue which was the subject matter for adjudication under mutual agreement procedure
(5) The amount of tax, interest or penalty already determined shall be adjusted after incorporating the decision taken under mutual agreement procedure in the manner provided under the Income-tax Act, 1961(43 of 1961), or the rules made thereunder to the extent that they are not contrary to the resolution arrived at.
Explanation: - For the purposes of rules 44G and 44H, "Competent Authority of India" shall mean an officer authorised by the Central Government for the purposes of discharging the functions as such.
________________________________
1. Inserted by IT (Amendment) Rules, 2002 w.e.f 06.02.2003.
(1) An appeal to 3[***] the commissioner (Appeals) shall be made in Form No. 35.
(2) The form of appeal prescribed by sub-rule (1), the grounds of appeal and the form of verification appended thereto relating to an asscsscc shall be signed and verified by the person who is authorised to sign the return of income under section 140 of the Income-tax Act, 1961, as applicable to the assessee.
___________________________
1. Words Deputy Commissioner (Appeals) omitted by the IT (Twentieth Amendment) Rules, 1998, w.e.f. 22-10-1998. Earlier Deputy Commissioner (Appeals) was substituted for Appellate Assistant Commissioner by the IT (Fifth Amendment) Rules, 1989, w.r.e.f. 1-4-1988.
2. Word and omitted by the IT (Twentieth Amendment) Rules, 1998 w.e.f. 22-10-1998. Earlier and was inserted by the IT (Seventh Amendment) Rules, 1978, w.e.f. 10-7-1978.
3. Words the deputy Commissioner (Appeals) or, as the case may be, omitted by the IT (Twentieth Amendment) Rules, 1998, w.e.f. 22-10-1998. Earlier Deputy Commissioner (Appeals) was substituted for Appellate Assitant Commissioner bt the IT (Fifth Amendment) Rules, 1989, w.r.e.f. 1-4-1988.
(1) The intimation of any such order as is referred to in clause (c) of sub-section (2) of section 249 shall be served in the same manner as is laid down in section 282 for the service of a notice or requisition.
(2) Any other order, not being a notice or requisition, which is to be sent or communicated to, or served on, any person shall be sent, communicated or served either by post or as if it were a summons issued by a Court under the Code of Civil Procedure, 1908 (5 of 1908).
(1) The appellant shall not be entitled to produce before the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals), any evidence, whether oral or documentary, other than the evidence produced by him during the course of proceedings before the Assessing Officer, except in the following circumstances, namely :--
(a) here the Assessing Officer has refused to admit evidence which ought to have been admitted ; or
(b) here the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the Assessing Officer; or
(c) here the appellant was prevented by sufficient cause from producing before the Assessing Officer any evidence which is relevant to any ground of appeal ; or
(d) here the Assessing Officer has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal.
(2) No evidence shall be admitted under sub-rule (1) unless the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) records in writing the reasons for its admission.
(3) The Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) shall not take into account any evidence produced under sub-rule (1) unless the Assessing Officer has been allowed a reasonable opportunity--
(a) to examine the evidence or document or to cross-examine the witness produced by the appellant, or
(b) to produce any evidence or document or any witness in rebuttal of the additional evidence produced by the appellant.
(4) Nothing contained in this rule shall affect the power of the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) to direct the production of any document, or the examination of any witness, to enable him to dispose of the appeal, or for any other substantial cause including the enhancement of the assessment or penalty (whether on his own motion or on the request of the Assessing Officer) under clause (a) of sub-section (1) of section 251 or the imposition of penalty under section 271.
(1) An appeal under sub-section (1) or sub-section (2) of section 253 to the Appellate Tribunal shall be made in Form No. 36, and where the appeal is made by the assessee, the form of appeal, the grounds of appeal and the form of verification appended thereto shall be signed by the person specified in sub-rule (2) of rule 45.
(2) A memorandum of cross-objections under sub-section (4) of section 253 to the Appellate Tribunal shall be made in Form No. 36A, and where the memorandum of cross-objection is made by the assessee, the form of memorandum of cross-objections, the grounds of cross-objections and the form of verification appended thereto shall be signed by the person specified in sub-rule (2) of rule 45.
Omitted by the IT (Fifth Amendment) Rules, 1989, w.e.f. 18-5-1989.
Omitted by the IT (Fifth Amendment) Rules, 1989, w.e.f. 18-5-1989.
Where any immovable property is situate within the local limits of the jurisdiction of two or more competent authorities, the competent authority within whose jurisdiction the office of the registering officer who registered the instrument of transfer in respect of such property is situate shall be the competent authority to perform the functions of competent authority under Chapter XXA in relation to such property.
(1) The statement required to be registered with the competent authority under sub-section (2) of section 269AB shall be in Form No. 37EE and shall be signed and verified in the manner indicated therein by each of the parties to the transaction referred to in sub-section (1) of that section or by any of the parties to such transaction acting on behalf of himself and on behalf of the other parties.
(2) The statement in Form No. 37EE shall be made in duplicate and shall be furnished to the competent authority within a period of thirty days from the date on which the transaction referred to in sub-section (1) of section 269AB takes place :
Provided that in relation to any such transaction which has taken place between the 1st day of July, 1982 and the date of the publication of the Income-tax (Eighth Amendment) Rules, 1982 in the Official Gazette, the provisions of this sub-rule shall have effect as if for the words "thirty days", the words "sixty days" had been substituted.
(3) Where the competent authority considers that the statement in Form No. 37EE furnished under sub-section (2) of section 269AB is defective, he may intimate the defect to the parties or, as the case may be, the party furnishing such statement and give them an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the competent authority may, in his discretion allow; and if the defect is not rectified within the period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this rule, the statement in Form No. 37EE shall be treated as an invalid statement and the provisions of the Act shall apply as if the parties to the transaction had not complied with the provision of section 269AB.
(4) The competent authority shall, within a period of sixty days from the date of the receipt by him of the statement in Form No. 37EE or, as the case may be, from the date of the rectification of the defects under sub-rule (3), make an order registering the statement under section 269AB; and if no such order is made by the competent authority within the said period of sixty days, the statement shall be deemed to have been registered under section 269AB as on the date on which the said period of sixty days expires.
The substance of the notice under sub-section (1) of section 269D in respect of any immovable property shall be made known in the locality in which such properly is situate by proclamation in the language of the District by beat of drum or other customary mode.
The statement required to he furnished to the registering officer under subsection (1) of section 269P shall be in Form No. 37G, and shall be signed and verified by the transferee in the manner indicated therein.
The return to be forwarded by the registering officer to the competent authority under clause (b) of sub-section (2) of section 269P shall be in Form No.37H and be verified in the manner indicated therein.