## Policy Analysis Report: Notification S.O. 3814(E) - Extension of Time Limits Under Taxation and Benami Acts
**1. Executive Summary:**
This report analyzes Notification S.O. 3814(E), issued by the Ministry of Finance on September 17, 2021. This notification acts as an amendment to previously issued notifications related to the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Its core purpose is to extend the time limits for specific actions under the Income-tax Act, 1961, and the Prohibition of Benami Property Transaction Act, 1988. Key findings indicate that the amendment provides relief by extending deadlines for penalty imposition under the Income-tax Act and Aadhaar intimation, and for specific actions under the Benami Act, primarily due to potential disruptions caused by unforeseen circumstances (inferred).
**2. Introduction:**
This report aims to provide a detailed analysis of Notification S.O. 3814(E) based solely on the provided text. The analysis will focus on understanding the amendments made to existing policies related to taxation and benami property transactions.
**3. Policy Overview:**
* **Amendment:** This notification amends earlier notifications, specifically No. 93/2020, No. 10/2021, No. 20/2021 and No. 7/2021.
* **Core Objective(s):** The core objective, as inferred from the text, is to provide extensions for completing certain actions under the Income-tax Act, 1961, and the Prohibition of Benami Property Transaction Act, 1988. This objective is achieved by modifying existing time limits for these actions.
**4. Background and Rationale:**
* **Amendment:** The likely reason for this amendment is to address potential difficulties faced by individuals and the tax authorities in meeting the original deadlines. The extension of time limits suggests an acknowledgement of external factors impacting the ability to complete actions related to penalty imposition, Aadhaar intimation and benami property transactions within the initially prescribed timeframe. The parent act, "Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020" suggests the rational is linked to disruptions from unforseen circumstances.
**5. Key Provisions / Changes:**
The amendment introduces the following key changes to time limits:
* **Income-tax Act, 1961:**
* **Penalty Imposition:** For passing any order for imposition of penalty under Chapter XXI of the Income-tax Act, the end date of the period during which the time limit falls is extended to March 30, 2022. The end date to which the time limit for completion of such action shall stand extended is March 31, 2022. This appears to modify the deadline for the tax authorities to finalise and issue penalty orders.
* **Aadhaar Intimation:** The time limit for intimating the Aadhaar number to the prescribed authority under subsection 2 of section 139AA of the Incometax Act is extended to March 31, 2022. This benefits taxpayers who may have missed the original deadline for linking Aadhaar with their PAN.
* **Prohibition of Benami Property Transaction Act, 1988:**
* **Issue of Notice/Order:** For actions relating to issuing notice under subsection 1 or passing any order under subsection 3 of section 26 of the Benami Act, the end date of the period during which the time limit falls is June 30, 2021. The end date to which the time limit for completion of such action shall stand extended is March 31, 2022. This impacts the benami property transaction proceedings.
**6. Target Audience and Stakeholders:**
The target audience and stakeholders directly affected by these changes include:
* Taxpayers liable to penalties under the Income-tax Act, 1961.
* Taxpayers required to intimate their Aadhaar number.
* Persons involved in benami property transactions subject to actions under the Prohibition of Benami Property Transaction Act, 1988.
* Tax authorities responsible for administering and enforcing these Acts.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Central Board of Direct Taxes (CBDT), under the Department of Revenue, Ministry of Finance, is the responsible body for implementing these changes.
* **Timelines and Procedures:** The notification explicitly specifies the extended timelines for completion of the actions mentioned. The exact procedures remain governed by the respective Acts and related rules, but the notification effectively shifts the deadlines.
* **Amendment Implementation:** The implementation involves updating the operational guidelines and systems to reflect the extended deadlines. The tax authorities need to ensure that all processes related to penalty imposition, Aadhaar intimation, and benami property transactions are aligned with the new timelines.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these specific changes introduced by the amendment include:
* **Reduced Burden on Taxpayers:** The extended deadlines provide taxpayers with more time to comply with the requirements, potentially reducing the burden of penalties and legal consequences due to missed deadlines.
* **Facilitated Compliance:** The extension for Aadhaar intimation aims to facilitate better compliance with the Aadhaar-PAN linking mandate.
* **Efficient Administration:** By providing more realistic timelines, the amendment may enable tax authorities to manage their workload more efficiently.
* **Smooth Benami Transactions Procedures:** Providing more time for the actions under the Benami Act allows for more careful consideration of cases.
**9. Conclusion:**
Notification S.O. 3814(E) is a significant amendment that extends crucial deadlines under the Income-tax Act, 1961, and the Prohibition of Benami Property Transaction Act, 1988. This provides relief and facilitates compliance for taxpayers while potentially improving administrative efficiency. The amendment highlights the government's responsiveness to practical challenges in meeting regulatory timelines.
Key Entities Referenced
New Delhi: Location of the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes.
Ministry of Finance: The ministry under which the Department of Revenue and Central Board of Direct Taxes operate.
Department of Revenue: The department within the Ministry of Finance responsible for revenue collection.
Central Board of Direct Taxes: The issuing authority for the notification, under the Department of Revenue.
Taxation and Other Laws Relaxation and Amendment of Certain Provisions Act, 2020: Act that confers powers exercised in the notification.
Income-tax Act, 1961: The specified Act for which certain actions and compliances are being extended. (43 of 1961)
Prohibition of Benami Property Transaction Act, 1988: The specified Act for which certain actions and compliances are being extended. (45 of 1988)
SHEFALI SINGH: Under Secretary, Tax Policy and Legislation Division. Signatory of the notification.
Tax Policy and Legislation Division: Division of the Ministry of Finance involved in the notification.
Aadhaar: Identification number that needs to be intimated to the prescribed authority under subsection 2 of section 139AA of the Income-tax Act.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-17092021-229743
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 3502] नई दिल्ली, िक्रु िार, जसतम् बर 17, 2021/भार 26, 1943
No. 3502] NEW DELHI, FRIDAY, SEPTEMBER 17, 2021/BHADRA 26, 1943
जित्त मत्रं ालय
(रािस्ट्ि जिभाग )
(केन्द्रीय प्रत्यक्ष कर बोड)ड
अजधसचू ना
नई दिल्ली, 17 जसतम्ब र, 2021
का.आ. 3814(अ).—केन्द्रीय सरकार, कराधान और अन्द् य जिजध (कजतपय उपबंधों का जिजिलीकरण और
संिोधन) अजधजनयम 2020 (2020 का 38) (जिसे इसके पश्च ात उत अजधजनयम काा गया ा) की धारा 3 की उपधारा
(1) द्वारा प्रित् त िजत यों का प्रयोग करते ए ए और भारत सरकार, जित् त मंत्रालय(रािस्ट्ि जिभाग) अजधसूचना संख् या
93/2020 तारीख 31 दिसम् बर, 2020 िो भारत के रािपत्र, असाधारण, भाग II, खंड 3, उपखंड (ii) का.आ. 4805(अ)
तारीख 31 दिसंबर, 2020 द्वारा प्रकाजित और अजधसूचना सं. 10/2021 तारीख 27, फरिरी 2021,िो भारत के
रािपत्र, असाधारण, भाग II, खंड 3, उपखंड (ii) का.आ. संख्य ा 9 (अ) तारीख 27 फरिरी, 2021 द्वारा प्रकाजित तिा
अजधसूचना सं. 20/2021 तारीख 31 माचड 2021 िो भारत के रािपत्र, असाधारण, भाग II, खंड 3, उपखंड (ii) का.आ.
संख् यांक 1432(अ) तारीख 31 माचड, 2021 द्वारा प्रकाजित तिा अजधसूचना सं. 74/2021 तारीख 25 िून, 2021 िो
भारत के रािपत्र, असाधारण, भाग II, खंड 3, उपखडं (ii) का.आ. 2580(अ) तारीख 25 िून, 2021 (जिसे इसके पश् चात
उत अजधसूचना काा गया ा) द्वारा प्रकाजित की गई िी, की अजधसूचनाओं म ें आंजिक संिोधन करते ए ए, उत
अजधजनयम की उपधारा (1) का प्रयोिन के जलए जिजनर्िष्ड ट करती ा, दक_
(अ) िाां जिजनर्िष्ड ट अजधजनयम आयकर अजधजनयम 19 1 (1961 का 43) ा (जिसे इसके पश् चात आयकर अजधजनयम
काा गया ा) और,_
5236 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(क) उत अजधजनयम की धारा 3 की उपधारा (1) के खंड (क) म ें जनर्िष्टड दकसी कारडिाई की पूणडता, दकसी आििे
पाररत करने से संबंजधत ा, आयकर अजधजनयम के अध् याय XXI के अधीन िाजस्ट् त लगान े के जलए,-
(i) 30 माच,ड 2022 उस अिजध की अंजतम तारीख ाोगी जिसके िौरान उसमें जिजनर्िष्ड ट समय-सीमा तय की
गई ा, अििा आयकर अजधजनयम के अधीन ऐसी कारडिाई को पूणड करने के जलए जिजात या अजधसूजचत की
गई ा।
(ii) 31 माच,ड 2022 िा अंजतम तारीख ाोगी िो ऐसी कारडिाई को पूरा करन े की समय-सीमा को बढाकर कर
दिया िाएगा।
(ख) उत अजधजनयम की धारा 3 उपधारा (1) के खंड (ख) में जनर्िष्टड दकसी कारडिाई का अनपु ालन आयकर
अजधजनयम की धारा 139कक की उपधारा (2) के अधीन जिजात प्राजधकारी की आधार संख्य ा सूजचत करन े
के संबंजधत ा, और ऐस े कारडिाई को पूरा करन े की समय-सीमा आग े बढाकर 31 माच,ड 2022 कर दिया
िाएगा।
(ब) िाां जनर्िष्टड अजधजनयम बेनामी संपजत्त लेनिेन जनषधे अजधजनयम, 1988, (1988 का 45) (इसके बाि बेनामी
अजधजनयम के रूप म ें संिर्भडत) और उप-धारा (1) के खडं (क) म ें संिर्भडत दकसी भी कारडिाई को पूरा करना ा। उक्त
अजधजनयम की धारा 3 का, बेनामी अजधजनयम की धारा 2 की उप-धारा (1) के तात नोरटस िारी करन े और उप-धारा
(3) के तात या दकसी आिेि को पाररत करने स ेसंबंजधत ा, -
(i) 30 िून, 2021 उस अिजध की अंजतम तारीख ाोगी जिसके िौरान बेनामी अजधजनयम म ें जनर्िष्टड या
जनधाडररत या अजधसूजचत समय-सीमा ऐसी कारडिाई को पूरा करने के जलए आती ा; तिा
(ii) 31 माच,ड 2022 िा अंजतम तारीख ाोगी जिसके जलए ऐसी कारडिाई को पूरा करन े की समय-सीमा बढाई
िाएगी।
[अजधसूचना स.ं 113 /2021/ फा.सं. 370142/35/2020/टीपीएल-भाग1]
िेफाली ससंा, अिर सजचि (कर नीजत ि जिधान)
रटप्प ण : मुख्य अजधसूचना भारत के रािपत्र, असाधारण भाग II, धारा 3, उपधारा (ii) का.आ. 4805(अ) तारीख 31
दिसंबर, 2020 को प्रकाजित की गई िी और का.आ. 2580(अ) तारीख 25 िून, 2021 द्वारा अंजतम संिोधन
दकया गया ।
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 17th September, 2021
S.O. 3814(E).—In exercise of the powers conferred by sub-section (1) of section 3 of the Taxation
and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 (38 of 2020) (hereinafter
referred to as the said Act), and in partial modification of the notifications of the Government of India in
the Ministry of Finance, (Department of Revenue) No. 93/2020 dated the 31st December, 2020, published
in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), vide number S.O. 4805(E), dated
the 31st December, 2020 and No. 10/2021 dated the 27th February, 2021, published in the Gazette of India,
Extraordinary, Part-II, Section 3, Sub-section (ii),vide number S.O. 966(E) dated the 27th February, 2021
and No. 20/2021 dated the 31st March, 2021, published in the Gazette of India, Extraordinary, Part-II,
Section 3, Sub-section (ii), vide number S.O 1432(E) dated the 31st March, 2021and No. 74/2021 dated
25th June, 2021, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), vide
number S.O. 2580(E) dated the 25th June, 2021, (hereinafter referred to as the said notifications), the
Central Government hereby specifies for the purpose of sub-section (1) of section 3 of the said Act, that,––[भाग II—खण् ड 3(ii)] भारत का रािपत्र : असाधारण 3
(A) where the specified Act is the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the
Income-tax Act) and, ––
(a) the completion of any action, referred to in clause (a) of sub-section (1) of section 3 of the said
Act, relates to passing of any order for imposition of penalty under Chapter XXI of the Income-tax
Act, —
(i) the 30th day of March, 2022 shall be the end date of the period during which the time-
limit specified in, or prescribed or notified under, the Income-tax Act falls for the
completion of such action; and
(ii) the 31st day of March, 2022 shall be the end date to which the time-limit for
completion of such action shall stand extended;
(b) the compliance of any action, referred to in clause (b) of sub-section (1) of section 3 of the said
Act, relates to intimation of Aadhaar number to the prescribed authority under sub-section (2) of
section 139AA of the Income-tax Act, the time-limit for such the compliance of such action shall
stand extended to the 31st day of March, 2022.
(B) where the specified Act is the Prohibition of Benami Property Transaction Act, 1988, (45 of 1988)
(hereinafter referred to as the Benami Act) and the completion of any action, as referred to in clause (a) of
sub-section (1) of section 3 of the said Act, relates to issue of notice under sub-section (1) or passing of any
order under sub-section (3) of section 26 of the Benami Act,—
(i) the 30th day of June, 2021 shall be the end date of the period during which the time-limit
specified in or prescribed or notified under the Benami Act falls, for the completion of such action;
and
(ii) the 31st day of March, 2022 shall be the end date to which the time-limit for completion of such
action shall stand extended.
[Notification No. 113/2021/ F. No. 370142/35/2020-TPL-Part 1]
SHEFALI SINGH, Under Secy., Tax Policy and Legislation Division
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (ii) vide S.O. 4805(E) dated 31st December, 2020 and was last amended vide
S.O. 2580(E) dated 25th June, 2021.
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.