## Policy Analysis Report: Income-tax 35th Amendment Rules, 2021
**1. Executive Summary:**
This report analyzes the Income-tax 35th Amendment Rules, 2021, as published in the Gazette of India on December 29, 2021. This amendment focuses on clarifying and reinstating provisions related to claiming deductions under clause (b) of subsection (1B) of section 10A of the Income-tax Act, 1961, specifically concerning the Special Economic Zone Reinvestment Allowance Reserve Account. The key finding is the reinstatement of Form No. 56FF and associated rules after their inadvertent omission. This amendment impacts businesses operating within Special Economic Zones (SEZs) and claiming the reinvestment allowance.
**2. Introduction:**
The purpose of this report is to provide an informative overview of the Income-tax 35th Amendment Rules, 2021, based on the official policy text published in the Gazette of India. This analysis focuses on understanding the amendment's core objective, key changes, affected stakeholders, and potential implications for businesses.
**3. Policy Overview:**
This is an amendment to the Income-tax Rules, 1962. The core objective, as inferred from the text, is to provide clarity and maintain continuity regarding the procedure for claiming deductions related to reinvestment allowance for businesses operating in Special Economic Zones (SEZs). The specific focus is on reinstating the use of Form No. 56FF for furnishing particulars when claiming these deductions.
**4. Background and Rationale:**
The amendment addresses an inadvertent omission of rule 16DD and Form 56FF from the Income-tax Rules, 1962. The explanatory memorandum states that these provisions were unintentionally omitted but the intention of the Central Board of Direct Taxes was to maintain them. This amendment rectifies this error by reinstating the requirement for businesses to use Form No. 56FF when claiming deductions under section 10A(1B)(b) of the Income-tax Act, 1961.
**5. Key Provisions / Changes:**
This amendment introduces the following key changes:
* **Reinstatement of Form 56FF:** The amendment reinstates Form No. 56FF, which is titled "Particulars to be furnished under clause (b) of subsection (1B) of section 10A of the Income-tax Act, 1961." This form requires assessees to provide detailed information about their Special Economic Zone Reinvestment Allowance Reserve Account, including amounts debited, withdrawn, and the outstanding balance. It also requires details of any new plant/machinery purchased using funds withdrawn from the reserve.
* **Amendment to Rule 130:** The amendment specifically omits the figures and letters "16DD" in subrule 1 and "56FF" in subrule 2 of rule 130, effectively reversing their earlier omission.
* **Insertion of Form 56FF in Appendix II:** The amendment inserts Form No. 56FF into Appendix II of the Income-tax Rules, 1962, providing the official format for the form.
The *effect* of these changes is to re-establish the mandatory requirement for businesses to use Form No. 56FF when claiming deductions under section 10A(1B)(b) related to reinvestment in SEZs. This ensures that the Income-tax Rules, 1962 are consistent with the intent of the Central Board of Direct Taxes.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders are businesses operating within Special Economic Zones (SEZs) that are eligible for and intend to claim deductions under clause (b) of subsection (1B) of section 10A of the Income-tax Act, 1961. These businesses are directly affected by the requirement to furnish the specified particulars in Form No. 56FF.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Central Board of Direct Taxes (CBDT) is the responsible body for implementing and administering these rules, as indicated by the notification issued by the Department of Revenue, Ministry of Finance.
* **Timelines and Procedures:** The amendment is deemed to have come into force from July 29, 2021, which means it has retrospective effect. Businesses claiming deductions under section 10A(1B)(b) for the relevant assessment year are required to furnish Form No. 56FF along with their return of income.
* **Specific to Changes:** The implementation requires SEZ businesses to resume using Form 56FF for claiming the relevant deductions, ensuring their returns comply with the amended rules.
**8. Expected Outcomes / Impact of Changes:**
The intended outcome of these changes is to ensure that businesses operating in SEZs can continue to claim deductions related to reinvestment allowance smoothly and without any ambiguity. By reinstating Form No. 56FF, the amendment aims to:
* Provide a clear and standardized format for businesses to furnish the required particulars.
* Facilitate the processing of deduction claims by the tax authorities.
* Maintain the intended benefits and incentives for businesses operating in SEZs, encouraging further investment and growth.
The potential impact is a reduced risk of non-compliance for businesses and a smoother process for claiming deductions, ultimately promoting investment within SEZs.
**9. Conclusion:**
The Income-tax 35th Amendment Rules, 2021, represent a crucial clarification and correction to the Income-tax Rules, 1962. By reinstating Form No. 56FF and associated rules, the amendment ensures the continued availability and clear procedure for businesses in SEZs to claim reinvestment allowance deductions under section 10A(1B)(b) of the Income-tax Act, 1961. This amendment is significant for businesses operating within SEZs as it provides clarity and certainty regarding the documentation required for claiming these deductions, supporting their investment and growth objectives.
Key Entities Referenced
NEW DELHI: Capital of India, place of publication of the Gazette notification.
Incometax Act, 1961: A law, specifically section 10A and section 295, are referenced as providing the authority for the Central Board of Direct Taxes to make the rules.
Central Board of Direct Taxes: An organisation, part of the Department of Revenue, Ministry of Finance, responsible for making amendments to the Incometax Rules.
Incometax Rules, 1962: A set of rules being amended by the notification.
Incometax 35th Amendment Rules, 2021: The specific amendment rules being introduced.
Form No. 56FF: A form to furnish particulars along with return of income for claiming deduction under clause b of subsection 1B of section 10A.
Special Economic Zone Reinvestment Allowance Reserve Account: A financial account related to reinvestment allowance within a Special Economic Zone.
Ministry of Finance: The government ministry under which the Department of Revenue and Central Board of Direct Taxes operate.
Department of Revenue: The department within the Ministry of Finance that oversees the Central Board of Direct Taxes.
Rule 16DD: Relates to the form of particulars to be furnished along with return of income for claiming deduction under clause b of subsection 1B of section 10A.
Mayapuri, New Delhi: Location of the Government of India Press.
Delhi: Location of the Controller of Publications.
ANKIT JAIN: Under Secretary.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एxलx.x-GअID.-E2xx9x1 22021-232244
CG-DL-E-29122021-232244
असाधारण
EXTRAORDINARY
भाग I—खण्ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 735] नई ददल्ली, बधु िार, ददसम्ब र 29, 2021/पौष 8, 1943
No. 735] NEW DELHI, WEDNESDAY, DECEMBER 29, 2021/PAUSA 8, 1943
जित्त मत्रं ालय
(राजस्ट्ि जिभाग)
(केन्द्रीय प्रत्यक्ष कर बोडड)
अजधसचू ना
नई ददल्ली, 29 ददसम् बर, 2021
आयकर
सा.का.जन. 903(अ).—केंरीय प्रत्यक्ष कर बोडड आयकर अजधजनयम, 1961(1961 का 43) की धारा 295 के साथ
पठित धारा 10क की उप-धारा (5) द्वारा प्रदत्त िजियों का प्रयोग करत े हुए आयकर जनयम, 1962 का और संिोधन करन े
के जलए जनम्नजलजखत जनयम बनाता ह,ै अथाडत:्-
1. संजक्षप्त नाम और प्रारंभ - (1) इन जनयमों का संजक्षप्त नाम आयकर (35िां संिोधन) जनयम, 2021 ह ै।
(2) ये 29 जुलाई, 2021 स े प्रिृत्त होंगी ।
2. आयकर जनयम, 1962 में (जजसे इसमें इसके पश्चात मलू जनयम कहा गया ह)ै ,के जनयम 16घ के पश्चात जनम्नजलजखत
जनयम अंत:स्ट्थाजपत दकया जाएगा, अथातड ्:-
"16घघ. धारा 10क की उप-धारा (1ख) के खडं (ख) के अधीन कटौती का दािा करन े के जलए आय की जििरणी के साथ दी
जान े िाल े जिजिजियों का प्ररूप- -िे जिजिजियां,जजसे धारा 10क की उप-धारा (1ख) के खंड (ख) के अधीन आय की
जििरणी के साथ जनधाडठरती द्वारा दी जानी अपेजक्षत ह ैप्ररूप संख्या 56 चच म ेंहोंगी।
3. मूल जनयम के जनयम 130 में,—
(क) उप-जनयम (1) म,ें "16घघ" अंक और अक्षर का लोप दकया जाएगा;
(ख) उप-जनयम (2) म,ें "56 चच" अंक और अक्षर का लोप दकया जाएगा ।
7639 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
4. मूल जनयमों म ेंपठरजिि II में, प्ररूप सख्ं या 56च के पश्चात, जनम्नजलजखत अंत:स्ट्थाजपत दकया जाएगा, अथाडत्:-
"प्ररूप सख्ं या 56 चच
[जनयम 16घघ दखे ]ें
आयकर अजधजनयम, 1961 की धारा 10क की उप-धारा (1ख) के खडं (ख) के अधीन दी जान ेिाली जिजिजिया ं
अ. जििेष आर्थथक जोन पुनर्थिजनधान भत्ता आरजक्षजत खाते का ब्यौरा (रुपयों में)
(1) (2) (3) (4)
I पात्र लाभों की िे रक़म,ें जो लाभ और हाजन खाते नामे डाली गई ह ै और जििेष आर्थथक
जोन पुनर्थिजनधान भत्ता आरजक्षजत खाते म ेंजमा की गई ह।ैं |
(i) को समाप्त होने िाल े....... चालू पूिड िष ड के दौरान
(ii) को समाप्त होने िाल े ......ऊपर (i) में िर्थणत पूि ड िषड के िीक जपछल े पूिड िष ड के
दौरान,
(iii) को समाप्त होने िाले ......ऊपर (ii) में िर्थणत पूिड िषड के िीक जपछले पूिड िषड के
दौरान,
(iv) को समाप्त होने िाल े ......ऊपर (iii) म ें िर्थणत पूि ड िष ड के िीक जपछल े पूि ड िष ड के
दौरान,
(v) कुल (i)+(ii)+(iii)+(iv)
II जििेष आर्थथक जोन पुनर्थिजनधान भत्ता आरजक्षजत खात े से जनकाली गई रकम पात्र पात्र
प्रयोजन प्रयोजन
के जलए के जलए
उपयुि उपयुि
नहीं
(i) को समाप्त होने िाल े....... चालू पूिड िष ड के दौरान
(ii) को समाप्त होने िाल े ......ऊपर (i) में िर्थणत पूि ड िषड के िीक जपछल े पूिड िष ड के
दौरान,
(iii) को समाप्त होने िाले ......ऊपर (ii) में िर्थणत पूिड िषड के िीक जपछले पूिड िषड के
दौरान,
(iv) को समाप्त होने िाल े ......ऊपर (iii) म ें िर्थणत पूि ड िष ड के िीक जपछल े पूि ड िष ड के
दौरान,
(v) कुल (i)+(ii)+(iii)+(iv)
III को समाप्त होने िाल े ....... चालू पूि ड िषड के उस अंजतम ददन को जििेष आर्थथक जोन
पुनर्थिजनधान भत्ता आरजक्षजत खाता में की बकाया िुद्ध रकम
[II.(v)-I.(v)
आ. जििेष आर्थथक जोन पनु र्थिजनधान भत्ता आरजक्षजत खाते से आहठरत रकम में स े क्रय दकए गए नए संयंत्र/मिीनरी का
ब्योरा
क्र.सं. नए संयंत्र/मिीनरी का नए संयंत्र/मिीनरी के संयंत्र/मिीनरी के िह तारीख (तारीखें)जजसको नए
ब्योरा (मेक संख्या और प्रदायकताड का नाम अजधग्रहण की संयंत्र/मिीनरी का सबसे पहले प्रयोग
माडल सख्ं या दें) और पता । तारीख (तारीखें) में लाई गई थी[भाग II—खण् ड 3(i)] भारत का राजपत्र : असाधारण 3
सत्यापन
मै/हम............................जो श्री ..........................का/के पुत्र ..............................ह/ूँ ह ैं ......................... नामक
उपक्रम का/के स्ट्िामी/भागीदार/जनदेिकह/ूँह,ैंमेरा/हमारा [स्ट्थायी खाता संख्या या आधार संख्या]........... ह ैं और जो जििेष
आर्थथक जोन में जस्ट्थत ह,ैयह सत्याजपत करता ह/ूँकरते ह ैं दक उि उपक्रम ने पूिड िषड के दौरान ऊपर यथा िर्थणत नया संयंत्र/
मिीनरी अर्थजत दक ह,ै जजसके जलए जनधाडठरती द्वारा बनाए रखा गया आर्थथक जोन पुनर्थिजनधान भत्ता आरजक्षत खाता से
रकम जनकासी करके क्रय मूल्य का संदाय दकया गया ह ै ।
………………………………………………………
तारीख: ……….
स्ट्थान: ........ उपक्रम के स्ट्िामी/भागीदार/जनदिे क के हस्ट्ताक्षर,नाम और पता ।"।
[अजधसूचना संख्या. 140/2021/फा. सं. 370142/59/2021-टीपीएल]
अंदकत जैन, अिर सजचि
ठटप्पण : मलू जनयम भारत के राजपत्र,असाधारण, भाग-II, खंड 3, उप-खंड (ii) अजधसूचना संख्या का.आ. 969 (अ),
तारीख 26 माचड, 1962 द्वारा प्रकाजित दकए गए थ े और अंजतम अजधसूचना संख्या सा.का.जन. 883 (अ),
तारीख 27 ददसंबर, 2021 द्वारा संिोजधत की गई ।
स्ट्पिीकारक ज्ञापन :- जनयम 130 को 29 जुलाई, 2021 से लाया गया था जहां जनयम 16घघ में उसके उप-जनयम (1) और
प्ररूप 56चच म ें उसके उप-जनयम (2) के जलए ददया गया संदभड अनिधानता म ें उल्लेख दकया गया था । बोडड का आिय
जनयम 16घघ और प्ररूप 56चच को चालू रखन े की ह।ै अत:,जनरंतरता बनाए रखन े के जलए भूतलक्षी प्रभाि देने का प्रस्ट्ताि
ह।ै यह प्रमाजणत दकया जाता ह ै दक इस अजधसूचना को भूतलक्षी प्रभाि देकर दकसी भी व्यजि पर प्रजतकूल प्रभाि नहीं
डाला जा रहा ह।ै
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 29th December, 2021
INCOME-TAX
G.S.R. 903(E).— In exercise of the powers conferred by sub-section (5) of section 10A read with
section 295 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. Short title and commencement. –– (1) These rules may be called the Income-tax (35th Amendment)
Rules, 2021.
(2) They shall be deemed to have come into force from the 29th day of July, 2021.
2. In the Income-tax Rules, 1962 (hereinafter referred to as principal rules), after rule 16D, the following
rule shall be inserted, namely:––
―16DD. Form of particulars to be furnished along with return of income for claiming deduction
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.‖4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
3. In the principal rules, in rule 130,–
(a) in sub-rule (1), the figures and letters ―16DD‖ shall be omitted;
(b) in sub-rule (2), the figures and letters ―56FF‖ shall be omitted.
4. In the principal rules, in Appendix II, after Form No. 56F, the following Form shall be inserted, namely:–
―Form No. 56FF
[See rule 16DD]
Particulars to be furnished under clause (b) of sub-section (1B) of section 10A of the Income-tax Act,
1961
A. Details of Special Economic Zone Reinvestment Allowance Reserve Account (in rupees)
(1) (2) (3) (4)
I Amounts of eligible profits debited to the profit and loss account
and credited to the Special Economic Zone Reinvestment
Allowance Reserve Account:
(i) During the current previous year ending on ….
(ii) During the previous year, immediately preceding the
previous year mentioned at (i) ending on ….
(iii) During the previous year, immediately preceding the
previous year mentioned at (ii) ending on …..
(iv) During the previous year immediately preceding the
previous year mentioned at (iii) ending on ….
(v) Total (i)+(ii)+(iii)+(iv)
II Amounts withdrawn from the Special Economic Zone Used for Not used
Reinvestment Allowance Reserve Account: eligible for
purposes eligible
purposes
(i) During the current previous year ending on ….
(ii) During the previous year, immediately preceding the
previous year mentioned at (i) ending on…
(iii) During the previous year, immediately preceding the
previous year mentioned at (ii) ending on….
(iv) During the previous year, immediately preceding the
previous year mentioned at (iii) ending on….
(v) Total amounts withdrawn (i)+(ii)+(iii)+(iv)
III Net amount outstanding the Special Economic Zone
Reinvestment Allowance Reserve Account on the last day of the
current previous year ending on ….
[II.(v)–I.(v)]
B. Details of new plant/machinery purchased out of amounts withdrawn from Special Economic Zone
Reinvestment Allowance Reserve Account
S. No. Details of the new plant/ Name and address of Date(s) of Date(s) on which
machinery (give Make the supplier of the acquisition of the new plant/
Number and Model new plant/ machinery plant/ machinery machinery was
Number) first put to use[भाग II—खण् ड 3(i)] भारत का राजपत्र : असाधारण 5
Verification
I/We,…. s/o………………….. being proprietor/partner/director of the undertaking named ……. having
[Permanent Account Number or Aadhaar Number] …… situated in the Special Economic Zone …….
Verify that the said undertaking during the previous year, acquired the new plant/ machinery, as mentioned
above for which the purchase price has been paid by making withdrawal from the Special Economic Zone
Reinvestment Allowance Reserve Account maintained by the assessee.
…………………………………….
Date: ………………. Signature, Name and Address of
Place: ..………….. the proprietor/partner/director of the undertaking.‖.
[Notification No. 140 /2021/F. No. 370142/59/2021-TPL]
ANKIT JAIN, Under Secy.
Note : The principal rules 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 last amended
vide notification number G.S.R. 883 (E), dated 27th December, 2021.
Explanatory Memorandum:– Rule 130 was brought into force from the 29th day of July, 2021 where
reference to rule 16DD in sub-rule (1) thereof and Form 56FF in sub-rule (2) thereof were inadvertently
mentioned. The intention of the Board is to continue with the rule 16DD and Form 56FF. Hence, it is
proposed to give retrospective effect to maintain continuity. It is certified that no person is being adversely
affected by granting retrospective effect to this notification.
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.