Home India Ministry of Finance Application for recomputation of income under sub section (1...
Date: 2022-09-28 Category: Extra Ordinary State: Union Government Country: India

Application for recomputation of income under sub section (18) of section 155 of the Income tax Act

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

## Report on Income-tax 32nd Amendment Rules, 2022 **1. Executive Summary:** This report provides an overview of the Income-tax 32nd Amendment Rules, 2022, as detailed in the provided notification (G.S.R. 733(E)). The amendment introduces Rule 132 to the Income-tax Rules, 1962, establishing a process for recomputing income under subsection 18 of section 155 of the Income-tax Act, 1961, specifically related to disallowing deductions claimed for surcharge or cess under section 40. Key findings include the introduction of Form No. 69 for application and Form No. 70 for intimation of tax payment. The amendment targets assessees who have previously claimed such deductions. **2. Introduction:** This report aims to inform the affected industry about the Income-tax 32nd Amendment Rules, 2022, based on the official notification provided. It outlines the key provisions, implications, and implementation aspects of these amendments. **3. Policy Overview:** * This is an **Amendment** to the Income-tax Rules, 1962. * **Core Objective(s):** The core objective of this amendment, as inferred from the text, is to provide a mechanism for recomputing income where deductions for surcharge or cess have been claimed and allowed under section 40, which are now potentially disallowed under subsection 18 of section 155 of the Income-tax Act, 1961. **4. Background and Rationale:** The amendment appears to address situations where assessees have claimed deductions for surcharge or cess, and the government now seeks to disallow these deductions. The introduction of Rule 132 and related forms suggests a need for a formal, standardized process to handle the recomputation of income and subsequent tax adjustments. This change may stem from a reassessment of the deductibility of these charges under the Income-tax Act. **5. Key Provisions / Changes:** This amendment introduces the following specific changes: * **Addition of Rule 132:** A new rule is inserted after Rule 131 in the Income-tax Rules, 1962. This rule outlines the application process for recomputation of income. * **Form No. 69:** * *What is being changed:* A new form is being introduced to facilitate the application for recomputation of income under subsection 18 of section 155. * *New Rule/Provision:* The form, designated as Form No. 69, is to be used by assessees requesting recomputation of total income for previous years where a deduction for surcharge or cess was claimed and allowed under section 40. The application must be filed electronically by March 31, 2023, with the specified authorities (Principal Director General of Income-tax Systems or the Director General of Income-tax Systems). * *Difference/Effect:* This form provides a structured way for assessees to request a recomputation and for the Income Tax Department to process such requests related to the disallowance of surcharge/cess deductions. * **Form No. 70:** * *What is being changed:* A new form is being introduced to facilitate the intimation of tax payment. * *New Rule/Provision:* The form, designated as Form No. 70, is to be used by assessees to intimate the Assessing Officer about the payment of tax determined after the recomputation under subrule 4 of Rule 132. The assessee must furnish the details of the payment of tax in Form No. 70 to the Assessing Officer within thirty days from the date of making the payment. * *Difference/Effect:* This form provides a structured way for assessees to inform the Income Tax Department about the tax payments related to the recomputation. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * Assessees (taxpayers) who have previously claimed deductions for surcharge or cess under section 40 in previous years. * The Central Board of Direct Taxes (CBDT). * Principal Director General of Income-tax Systems and the Director General of Income-tax Systems. * Assessing Officers (AOs). **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The Central Board of Direct Taxes (CBDT) is responsible for issuing the rules. The Principal Director General of Income-tax Systems and the Director General of Income-tax Systems are responsible for laying down procedures for Form No. 69. Assessing Officers are responsible for recomputing income and issuing notices. * **Timelines:** Applications using Form No. 69 must be submitted on or before March 31, 2023. Payment details using Form No. 70 must be submitted within 30 days of tax payment. * **Procedures:** The Principal Director General of Income-tax Systems or the Director General of Income-tax Systems will establish procedures for submitting and verifying Form No. 69. The Assessing Officer will recompute the total income and issue a notice under section 156. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these changes is to: * Ensure compliance with the revised interpretation of deductibility rules regarding surcharge and cess. * Recover taxes that were previously not collected due to the now-disallowed deductions. * Standardize the process for recomputing income and collecting additional taxes related to these deductions. * The amendment is expected to lead to increased tax revenue for the government and potentially increased tax liabilities for affected assessees. **9. Conclusion:** The Income-tax 32nd Amendment Rules, 2022, introduce a structured process for recomputing income related to previously claimed deductions for surcharge and cess. The introduction of Form No. 69 and Form No. 70 formalizes the application and payment processes, respectively. This amendment is significant as it impacts assessees who have claimed such deductions and requires them to recompute their income and potentially pay additional taxes. The amendment aims to rectify past deductions deemed non-compliant with the current interpretation of the Income-tax Act, 1961.

Key Entities Referenced

New Delhi: Location of publication of the Gazette of India Incometax Act, 1961: The Act under which the rules are being amended, specifically referenced by section 295 and subsection 18 of section 155. Central Board of Direct Taxes: The organization making the amendments to the Incometax Rules. Incometax Rules, 1962: The rules being amended by this notification. Incometax 32nd Amendment Rules, 2022: The short title of the amendment rules introduced in this notification. Principal Director General of Incometax Systems: An authority to whom Form No. 69 shall be furnished electronically. Director General of Incometax Systems: An authority to whom Form No. 69 shall be furnished electronically. Form No. 69: Application for recomputation of income under subsection 18 of section 155. Form No. 70: Intimation to the Assessing Officer of the payment of tax on income recomputed under subsection 18 of section 155 Assessing Officer: The officer who receives Form No. 69 and Form No. 70 Ministry of Finance: The ministry under which the Department of Revenue and Central Board of Direct Taxes operate. Department of Revenue: The department under which the Central Board of Direct Taxes operates. Om Prakash Meena: Under Secretary who issued the notification. Mayapuri, New Delhi: Location of Dte. of Printing at Government of India Press. Delhi: Location of Controller of Publications.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-29092022-239196 xxxGIDHxxx CG-DL-E-29092022-239196 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.ं 652] नई दिल्ली, बुधिार, जसतम्ब र 28, 2022/आजश्ि न 6, 1944 No. 652] NEW DELHI, WEDNESDAY, SEPTEMBER 28, 2022/ ASVINA 6, 1944 जित्त मत्रं ालय (रािस्ट्ि जिभाग) (केन्‍दर ीय प्रत्य क्ष कर बोड)ड अजधसचू ना नई दिल् ली, 28 जसतम्बर, 2022 आय-कर सा.का.जन. 733(अ).—केन्‍द रीय प्रत् यक्ष कर बोड,ड आय-कर अजधजनयम, 1961 की धारा 155 की उपधारा (18) के साथ पठित धारा 295 द्वारा प्रित् त िज‍त यों का प्रयोग करत े हुए, आय-कर जनयम, 1962 का और संिोधन करन े के जलए जनम्न जलजखत जनयम बनाता ह,ै अथाडत ् :- 1. संजक्षप् त नाम और प्रारंभ.- (1) इन जनयमों का संजक्षप् त नाम आय-कर (बत्तीस्ट्िां संिोधन)जनयम, 2022 ह ै। (2) ये 1 अ‍त ूबर, 2022 को प्रिृत् त होंगे । 2. आय-कर जनयम, 1962 (जिसे इसम ें इसके पश् चात ् मलू जनयम कहा गया ह)ै म ें जनयम 131 के पश् चात् जनम्न जलजखत जनयम अंत:स्ट्थ ाजपत दकए िाएंग,े अथाडत ्:- “धारा 155 की उपधारा (18) के अधीन आय की पनु : संगणना करन े के जलए आिेिन । 132. (1) अजधभार या उपकर की कटौती के जलए िािा अनुज्ञात दकए जबना पूि ड िर् ड की कुल आय की पुन: संगणना हते ु प्राथनड ा करन े का आिेिन, जिसम ें उ‍त पूिड िर्ड म ें धारा 40 के अधीन कटौती के रूप म ें िािा दकया गया और अनुज्ञात दकया गया, 31 माच,ड 2023 को या उससे पूिड प्ररूप स.ं 69 म ें दकया िाएगा । 6510 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (2) प्ररूप स.ं 69 प्रधान महाजनिेिक आय-कर (प्रणाली) या महाजनिेिक आय-कर (प्रणाली) या प्रधान महाजनिेिक आय-कर (प्रणाली) या महाजनिेिक आयकर (प्रणाली) द्वारा प्राजधकृत को इल‍े र ाजनक रूप स े प्रस्ट् ततु दकया िाएगा । (3) प्रधान महाजनिेिक आय-कर (प्रणाली) या महाजनिेिक आय-कर (प्रणाली) प्ररूप स.ं 69 को प्रस्ट् तुत करने और सत् याजपत करन े के जलए प्रदियाओं और मानकों को अजभकजथत करेगा और प्ररूप स.ं 69 म ें ग्रहण दकए आिेिन को जनधाडरण अजधकारी को प्रस्ट्त ुत करेगा । (4) जनधाडरण अजधकारी, प्ररूप स.ं 69 म ें आिेिन की प्राजप् त पर सुसंगत आििे म ें संिोधन करते हुए, कुल आय की पुन: संगणना करेगा और धारा 156 के अधीन- (i) उपधारा (1) म ें जनर्िष्ड ट पूििती िर्ड के सुसंगत जनधाडरण िर्ड के जलए, और (ii) खंड (1) म ें जनर्िष्ड ट जनधारड ण िर् ड के पश् चातिती जनधाडरण िर्ों के जलए; ऐसी समय-सीमा को जिजनर्िष्ड ट करते हुए, जिसम ें संिेय कर की रकम यदि कोई हो, जिसका संिाय दकया िाना ह,ै सूचना िारी करेगा, यदि ऐसे जनधाडरण िर्ड के जलए आिेि का पठरणाम धारा 115 ञकक और धारा 115 ञघ के अधीन िेर् अिक्षण के जलए हाजन या मोक या कर के जलए प्रत् यय अग्रनीत करने म ेंफेरफार होता ह ै। (5) जनधाडठरती उपधारा (4) के अधीन जिजनजश् चत दकए गए कर को संिाय करने के पश्च ात् संिाय करने की तारीख स े तीस दिनों के भीतर जनधाडरण अजधकारी को प्ररूप स.ं 70 में कर के संिाय के ब् यौरे प्रस्ट् तुत करेगा ।”। 3. मूल जनयम म,ें प्ररूप स.ं 68 के पश् चात ्जनम्न जलजखत प्ररूप अंत:स्ट् थाजपत दकया िाएगा, अथाडत् :- “प्ररूप स.ं 69 [जनयम 132 िेजखए] धारा 155 की उपधारा (18) के अधीन आय की पनु : संगणना करन े के जलए आिेिन (1) आिेिन फाइल करन े िाले व् यज‍त का नाम (2) आिेिन फाइल करन े िाले व् यज‍त का पनै या आधार स.ं (यदि उपलब् ध हो) (3) ऐस े व् यज‍त का नाम जिसके संबंध म ेंआिेिन फाइल दकया िाना ह ै(यदि (1) स े जभन्‍द न हो) (4) उस व् यज‍त का पनै जिसके संबंध म ेंआिेिन फाइल दकया िाना ह ै(यदि (2) स े जभन्‍द न हो) (5) पता (6) ई-मेल पता (7) मोबाइल संख् या (8) अजधभार और उपकर की कटौती के जबना कुल आय की संगणना करन े के ब् यौरे िम जनधाडरण कटौती (3) में (3) में (4क (3) में (3) में (6क संित् त हाजन/िेर् सं. िर्ड के रूप में उजल् लजखत उजल् लजखत या उजल् लजखत उजल् लजखत या दकए अिक्षयण- िािा रकम की रकम की 4ख) रकम की रकम की 6ख) िाने एमएटी/एएमटी दकए गए कटौती कटौती में कटौती कटौती पर िाला प्रत् यय के अग्रनीत और अनुज्ञात अनुज्ञात आय अनुज्ञात अनुज्ञात संिये िेर् पर समाघात अनुज्ञात करने करने के पर दकए जबना दकए जबना कर कर ठटप्प णीयां यदि दकए गए पश् चात् पश् चात् संित् त कुल धारा 115 कोई हो अजधभार कुल धारा 115 या आय/हाजन ञख/115 और आय/हाजन ञख/115 संिये ञग के उपकर ञग के कुल अधीन की रकम अधीन कर समझी गई समझी गई कुल आय कुल आय (1) (2) (3) (4क) (4ख) (5) (6क) (6ख) (7) (8) = (9) (7)- (5)[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 सत्य ापन मैं..................पुत्र/पुत्री श्री..........जिस का पैन/आधार स.ं यह................ह ैयह घोर्णा करता ह/ंकरती ह ं दक िो भी िह ऊपर कहा गया ह ै िह मेरी सिोत् तम िानकारी के अनुसार सही, पूण ड ह ै और सत् यता स े कहा गया ह ै । म ैं यह भी घोर्णा करता ह ं दक म.ैं ................की ह,ै हजै सयत स े आिेिन कर रहा ह ं और म ैं यह आिेिन करने तथा इस े सत् याजपत करने के जलए सक्षम ह ं। तारीख : हस्ट्त ाक्षर : स्ट् थान : पता : *संिेय कर जिसम ें संिेय कर पर ब् याि, अजधभार और उपकर िाजमल ह ै। #कुल आय/समझी गई कुल आय यथाजस्ट् थजत निीनतम जनधाडरण/पुन:जनधाडरण/पनु :सगं णना आिेि के अनुसार ठरपोट ड की िानी चाजहए । ठटप् पण : 1. पंज‍त स.ं (3) और (4) आिश् यक होनी चाजहए िहां : (i) उत् तराजधकारी अजस्ट् तत् ि, पूिाडजधकारी अजस्ट् तत् ि िो अजस्ट्त त् ि म ेंनहीं ह,ै के जलए प्ररूप फाइल करना ह ै (ii) प्ररूप मतृ व् यज‍त के जिजधक उत् तराजधकारी द्वारा फाइल दकया गया ह ै 2. पृथक प्ररूप प्रत् यके पूिाडजधकारी अजस्ट् तत् ि, यदि िे एक स े अजधक पूिाडजधकारी ह,ैं के जलए फाइल दकया िाना चाजहए 3. पृथक प्ररूप उत् तराजधकारी और पूिाडजधकारी के जलए फाइल दकया िाना चाजहए । प्ररूप स.ं 70 [जनयम 132 दिजखए] धारा 155 की उपधारा (18) के अधीन पुन: सगं जणत की गई आय पर कर के संिाय की जनधारड ण अजधकारी को सूचना सेिा म,ें जनधाडरण अजधकारी, ................................. श्रीमती/श्रीमान म,ैं .....................पुत्री/पुत्र श्री.......................जनिासी...............की अपनी हजै सयत से................जिसका पैन..................ह ै यह सूचना िेता ह ं दक आिेि जिसके ब् यौरे नीचे उजल्ल जखत ह,ैं द्वारा धारा 155(18) के परन्‍द तुक के अनुसार पनु :सगं जणत की गई कुल आय पर कर (जिसम ें उस पर ब् याि, अजधभार और उपकर भी िाजमल ह)ै नीच े दिए गए ब् यौरो के अनुसार संित् त कर दिया गया ह ै। िम सं. जनधाडरण आिेि की आिेि की कर की चालान पहचान संख् या िर्ड तारीख* िस्ट् तािेि पहचान रकम बैंक िाखा का चालान कर संिाय सं. (डीआईएन) (जिसमें उस बीएसआर िम सं. की तारीख पर ब् याि, कूट अजधभार और उपकर िाजमल ह)ै कुल4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] *तारीख/ मास /िर् ड मैं, यह अनुरोध करता ह ं दक उपयुड‍ त ब् यौरे ठरकाडड म ें अद्यतन दकए गए ह ैं । म ैं यह घोर्णा करता ह ं दक उपयुड‍ त िो कुछ कहा गया ह ैिह िीक ह ै। हस्ट् ताक्षर : ......................... तारीख :.................... पता :................... [अजधसूचना सं. 111/2022/फा.सं. 370142/32/2022-टीपीएल] ओम प्रकाि मीना, अिर सजचि ठटप्प ण : मलू जनयम अजधसूचना सं. का.आ. तारीख 26 माचड, 1962 द्वारा भारत के रािपत्र, असाधारण, भाग II, खंड 3, उपखंड (ii) म ें प्रकाजित दकए गए थ े और अंजतम बार अजधसचू ना सं. सा.का.जन.709(अ), तारीख 19.09.2022 द्वारा संिोजधत दकए गए थ े। MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 28th September, 2022 INCOME-TAX G.S.R. 733(E).–– In exercise of the powers conferred by section 295 read with sub-section (18) of section 155 of the Income-tax Act, 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 (32nd Amendment) Rules, 2022. (2) They shall come into force from the 1st day of October, 2022. 2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 131, the following rule shall be inserted, namely–– “Application for recomputation of income under sub-section (18) of section 155. 132. (1) An application requesting for recomputation of total income of the previous year without allowing the claim for deduction of surcharge or cess, which has been claimed and allowed as deduction under section 40 in the said previous year, shall be made in Form No. 69 on or before the 31st day of March, 2023. (2) Form No. 69 shall be furnished electronically to the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or the person authorized by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems). (3) Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall lay down the procedures and standards for furnishing and verification of Form No. 69 and to forward the application received in Form No. 69 to the Assessing Officer. (4) The Assessing Officer shall, on receipt of the application in Form No. 69, recompute the total income by amending the relevant order and issue notice under section 156 specifying the time period within which amount of tax payable, if any, is to be paid,- (i) for the assessment year relevant to the previous year referred to in sub-rule (1); and (ii) for the assessment years subsequent to the assessment year referred to in clause (i), if the order for such assessment year results in variation in carry forward of loss or allowance for unabsorbed depreciation or credit for tax under section 115JAA or section 115JD.[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 5 (5) The assessee shall, after making the payment of the tax determined under sub-rule (4), furnish the details of payment of tax in Form No.70 to the Assessing Officer within thirty days from date of making the payment.”. 3. In the principal rules, after Form No.68, the following Forms shall be inserted, namely:- “Form No. 69 [See rule 132] Application for recomputation of income under sub-section (18) of section 155 (1) Name of the person filing the application : (2) PAN or Aadhaar number (if available) of the person filing the application : (3) Name of the person in respect of which the application is being filed (if different from (1)) : (4) PAN of the person in respect of which the application is being filed (if different from (2) : (5) Address : (6) E-mail Id : (7) Mobile Number : (8) Details of computation of total income without deduction of surcharge and cess S. Assessme Amount Total Deemed Total Total Deemed Tax Balan Impact on carry No nt year of income/lo Total taxes income/lo total payab ce tax forward of . surchar ss after Income paid ss income le on to be loss/unabsorbed ge and allowing under or without under (6A paid depreciation/MAT/ cess deduction section payab allowing section or AMT Credit, claimed of 115JB/115 le on deduction 115JB/115 6B)* remarks if any and amount JC after incom of JC allowed mentione allowing e at amount without as d in (3) # deduction (4A mentione allowing deducti of amount or d in (3)# deduction on mentioned 4B)* of amount in (3)# mentioned in (3)# (1) (2) (3) (4A) (4B) (5) (6A) (6B) (7) (8) = (9) (7)-(5) VERIFICATION I……………………….… son/daughter of …………………………. having PAN/Aadhaar number………………….. do hereby declare that to the best of my knowledge and belief what is stated above is correct, complete and truly stated. I also declare that I am making application in my capacity as ……………………. of …………………… and I am also competent to make this application and verify it. Date: Signature: Place: Address: *Tax payable includes interest, surcharge and cess on the tax payable. # Total income/deemed total income should be reported as per latest assessment/ reassessment/ recomputation order, as the case may be. Note: 1. Row no. (3) and (4) would be needed where: (i) the successor entity is filing the Form for predecessor entity who is no longer in existence (ii) the Form is filed by the legal heir of deceased person 2. Separate Form must be filed for each predecessor entity if there are more than one predecessors 3. Separate Form must be filed for successor and predecessor.6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] Form No. 70 [See rule 132] Intimation to the Assessing Officer of the payment of tax on income recomputed under sub-section (18) of section 155 To, The Assessing Officer, ….……………………………. Madam/Sir, I,…………………………………,daughter/son of …………………………….., in my capacity as …………………………………. of ……………………………., having ………..(quote PAN) hereby intimate that tax (including interest, surcharge and cess thereon) on total income recomputed, as per proviso to section 155(18), by orders, details of which are mentioned herein below, has been paid as per the details below: S. Assessment Date of Document Amount of tax Challan Identification Number No. Year Order* Identification (including interest, BSR code of Challan Date of payment No. (DIN) of surcharge and cess the Bank serial no. of tax* Order thereon) branch Total *dd/mm/yyyy I, therefore, request that the above details may be updated in the record. I hereby declare that what is stated above is correct. Signature Date ………………………… Address …………………………….”. [Notification No. 111/2022/F. No. 370142/32/2022-TPL] Om Prakash Meena, 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 was last amended vide notification number G.S.R.709 (E) dated 19.09.2022 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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