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Date: 16-Oct-2024 Category: Extra Ordinary State: Union Government Country: India

amendment made due to amendment in Section 206C

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

Description of the Gazette Notification

  • This gazette notification, G.S.R. 645(E), dated October 16, 2024, from the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes, amends the Income-tax Rules, 1962. It's titled the Income-tax (Ninth Amendment) Rules, 2024 and came into effect on the date of publication.
  • The amendment modifies several clauses within Rule 31AA and Rule 37-I, and adds a new note (8A) to Form No. 27EQ. These changes primarily relate to tax collection at source (TCS) under section 206C of the Income Tax Act, 1961.

Key Changes

  • Rule 31AA(4)(vi): The numbering of provisos is updated. 'Fourth proviso' becomes 'fifth proviso' and 'fifth proviso' becomes 'sixth proviso'.
  • Rule 31AA(4): A new clause (viii) is added, requiring furnishing particulars of amounts where tax wasn't collected or was collected at a lower rate due to a notification under section 206C(12).
  • Rule 37-I(1): The phrase 'has been collected' is amended to include '(hereinafter referred to as the collectee)'.
  • Rule 37-I: A new sub-rule (1A) is added, addressing situations where the income of the 'collectee' (the entity responsible for collecting tax at source) is assessable in the hands of another person. This sub-rule clarifies credit allocation and reporting procedures.
  • Form No. 27EQ: A new Note 8A is added to indicate ('J') when no collection or lower collection of tax occurs due to a notification under section 206C(12).

Impact Analysis

Taxpayers

  • Changes to Rule 37-I and the addition of sub-rule (1A) will impact taxpayers who are not the ultimate tax obligors but are involved in TCS. They will need to understand the new credit allocation and declaration procedures.

Tax Authorities

  • Potential for increased tax revenue due to better enforcement of TCS rules and clearer reporting requirements.

Software Providers

  • Need to update tax compliance software to accommodate the changes in reporting requirements, especially for Rule 31AA(4)(viii) and Form No. 27EQ (Note 8A).

Suggested Actions

  • Monitor the implementation of the amendments and make necessary adjustments as needed.

Key Entities Referenced

Ministry of Finance (Department of Revenue): The issuing authority of the notification. Central Board of Direct Taxes (CBDT): The body responsible for administering direct taxes in India. Income-tax Act, 1961 (43 of 1961): The primary legislation governing income tax in India. Section 206C deals with Tax Collection at Source (TCS). Income-tax Rules, 1962: Rules framed under the Income-tax Act, 1961. These rules have been amended by the notification. Form No. 27EQ: A tax form that has been amended to include a new note reflecting the changes in TCS rules. Notification No. S.O. 969(E), dated March 26, 1962: The original publication of the Income-tax Rules, 1962. Notification No. G.S.R. 639(E), dated October 15, 2024: The previous amendment to the Income-tax Rules, 1962.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-16102024-257956 CG-DxLx-xEG-I1D6H1x0x2x0 24-257956 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 589] नई दिल्ली, बुधिार, अक्त बू र 16, 2024/आज‍ि न 24, 1946 No. 589] NEW DELHI, WEDNESDAY, OCTOBER 16, 2024/ASVINA 24, 1946 जित्त मत्रं ालय (रािस्ट्ि जिभाग) (केन्द्रीय प्रत्यक्ष कर बोडड) अधिसचू ना नई दिल् ली, 16 अक् तूबर, 2024 सा.का.जन. 645(अ).—केन्द्रीय प्रत्यक्ष कर बोडड, आय-कर अजधजनयम, 1961 (1961 का 43) की धारा 206ग के साथ पठित धारा 295 द्वारा प्रित्त िजियों का प्रयोग करत ेहुए, आय-कर जनयम, 1962 का जनम्नजलजखत और संिोधन करता ह,ै अथाडत ् :- 1. (1) इन जनयमों का संजक्षप्त नाम आय-कर (नौवाां संिोधन) जनयम, 2024 ह ै। (2) ये रािपत्र में उनके प्रकािन की तारीख को प्रिृत्त होंगे । 2. आय-कर जनयम, 1962 में,— (क) जनयम 31कक के उपजनयम (4) म,ें — (i) खडं (vi) में,— (अ) उपखडं (ख) म,ें “चौथ ेपरंतुक” िब्िों के स्ट्थान पर, “पाचं िे परंतुक” िब्ि रखे िाएगं े ; 6739 GI/2024 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (आ) उपखंड (ग) में, “पांचिे परंतुक” िब्िों के स्ट्थान पर, “छिे परंतुक” िब्ि रखे िाएगं े ; (ii) खंड (vii) म,ें जहन्द्िी पाि में संिोधन की आि‍यकता नहीं ह ै। (iii) खडं के पश्चात ्जनम्नजलजखत खडं अन्द्तःस्ट्थाजपत दकया िाएगा, अथाडत ् :- “(viii) प्राप्त या जिकजलत रकम की जिजिजियां प्रस्ट्तुत करें, जिस पर कर एकजत्रत नहीं दकया गया था या धारा 206ग की उपधारा (12) के अधीन िारी की गई दकसी अजधसूचना को ध्यान म ें रखत े हुए कम िर पर कर एकजत्रत दकया गया था ।”; (ख) जनयम 37झ म,ें — (i) उपजनयम (1) म,ें “संग्रहीत दकया िा चुका ह”ै िब्िों के स्ट्थान पर, “व्यजि (जिसे इसम ेंइसके पश्चात् संग्रहणकता ड कहा गया ह)ै द्वारा दिए गए कर संग्रहण के संबंध में सूचना के आधार पर एकजत्रत दकया िा चुका है” िब्ि और कोष्ठक रखें िाएंग े ; (ii) उपजनयम (1) के पश्चात,् जनम्नजलजखत उपजनयम अतं ःस्ट्थाजपत दकए िाएंगे, अथाडत् :— “(1अ) (क) िहां अजधजनयम के दकन्द्हीं उपबंधों के अधीन, संग्रहकताड की आय, संग्रहकताड से जभन्न दकसी अन्द्य व्यजि के हाथ म ें जनधाडरणीय ह ैतो स्रोत पर संग्रहीत कर के जलए क्रेजडट ऐसे अन्द्य व्यजि को दिया िाएगा न दक संग्रहकताड को : परंतु संग्रहकताड, कलक्टर के पास उद्घोषणा पत्र फाइल करेगा और कलक्टर उपजनयम (1) में जनर्िडि कर के संग्रहण स ेसंबंजधत िानकारी म ेंअन्द्य व्यजि के नाम में कर संग्रहण की ठरपोटड करेगा । (ख) खंड (क) के परंतुक के अधीन सग्रं हकताड द्वारा फाइल की गई उद्घोषणा में उस व्यजि का नाम, पता स्ट्थायी खाता संखयांक अन्द्तर्िडि होगा जिसको स्रोत पर कर की कटौती का क्रेजडट दिया िाना ह,ै उस संिाय की िह रकम, जिसके सबं ंध में क्रेजडट दिया िाना ह ै और ऐस े व्यजि को क्रेजडट दिए िाने के कारण भी अंतर्िडि होंगे। (ग) कलक्टर, अजधजनयम की धारा 206ग की उपाधारा (3) के अधीन स्रोत पर कर संग्रहण के जलए प्रमाणपत्र उस व्यजि के नाम म ेंिारी करेगा जिसके नाम में उपजनयम (1) म ेंजनर्िडि कर के संग्रहण से संबंजधत िानकारी में क्रेजडट ििाडया गया ह ैऔर उद्घोषणा को अपनी सुरजक्षत अजभरक्षा में रखेगा।” (ग) प्ररुप सं. 27ड.थ के, उपाबंध में, सत्यापन के पश्चात्, ठटप्पणों में, ठटप्पण (8) के पश्चात् जनम्नजलजखत ठटप्पण अंतःस्ट्थाजपत दकया िाएगा, अथाडत् :- ‘8क. यदि धारा 206ग की उपधारा (12) के अधीन िारी की गई अजधसूचना को ध्यान म ेंरखते हुए कोई संग्रहण नहीं ह ैया कम संग्रहण ह ैतो “ञ” जलख ें।’। [सं. 114/2024/फा. सं. 370142/21/2024-टीपीएल] खुिबू लािर, अिर सजचि ठटप्पण: आय कर अजधजनयम, 1962, भारत के रािपत्र, असाधारण, भाग II, खडं 3, उपखडं (i) म,ें अजधसूचना सं. का. आ. 969(अ), तारीख 26 माचड, 1962 द्वारा प्रकाजित दकए गए थ ेऔर अजधसूचना सं. सा.का.जन.639 (अ), तारीख 15 अकतूबर, 2024 द्वारा अंजतम बार संिोजधत दकए गए थे।[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 16th October, 2024 G.S.R. 645(E).—In exercise of the powers conferred by section 295 read with section 206C of the Income- tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:– 1. (1) These rules may be called the Income-tax (Ninth Amendment) Rules, 2024. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Income-tax Rules, 1962,–– (a) in rule 31AA, in sub-rule (4),— (i) in clause (vi),– (A) in sub-clause (b), for the words “fourth proviso”, the words “fifth proviso” shall be substituted; (B) in sub-clause (c), for the words “fifth proviso”, the words “sixth proviso” shall be substituted; (ii) in clause (vii), for the word, figures and letter “section 206C.” occurring at the end, the word, figures and letter “section 206C;” shall be substituted; (iii) after clause (vii), the following clause shall be inserted, namely:– “(viii) furnish particulars of amount received or debited on which tax was not collected or tax was collected at a lower rate in view of any notification issued under sub-section (12) of section 206C.”; (b) in rule 37-I,— (i) in sub-rule (1), after the words “has been collected”, the brackets and words “(hereinafter referred to as the collectee)” shall be inserted; (ii) after sub-rule (1), the following sub-rule shall be inserted, namely: –– “(1A) (a) Where under any provisions of the Act, the income of the collectee is assessable in the hands of any person other than the collectee, the credit for the tax collected at source, shall be given to such other person and not to the collectee: Provided that the collectee shall file a declaration with the collector and the collector shall report the tax collection in the name of the other person in the information relating to collection of tax referred to in sub-rule (1). (b) The declaration filed by the collectee under the proviso to clause (a) shall contain the name, address, permanent account number of the person to whom credit for the tax collectible at source is to be given, amount of payment in relation to which credit is to be given and reasons for giving credit to such person. (c) The collector shall issue the certificate for collection of tax at source under sub-section (3) of section 206C of the Act, in the name of the person in whose name credit is shown in the information relating to collection of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody.”; (c) in Form No. 27EQ, in the Annexure, after Verification, in the Notes, after Note 8, the following Note shall be inserted, namely:– '8A. Write “J” if no collection or lower collection is in view of notification issued under sub-section (12) of section 206C.'. [No. 114/2024/F. No. 370142/21/2024-TPL] KHUSHBOO LATHER, Under Secy. Note : The Income-tax Rules, 1962 were published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) vide notification number S.O. 969 (E), dated the 26th March, 1962 and were last amended vide notification number G.S.R 639 (E), dated the 15th October, 2024. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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