## Policy Analysis Report: Income-tax 21st Amendment Rules, 2021
**1. Executive Summary:**
This report analyzes the "Income-tax 21st Amendment Rules, 2021" based solely on the provided government notification. This amendment primarily focuses on the **omission of certain rules and forms from the Income-tax Rules, 1962**, and mandates the **electronic furnishing of various tax-related documents**. The key findings indicate a move towards streamlining the tax filing process by removing outdated rules/forms and mandating electronic submission for efficiency and better record management.
**2. Introduction:**
This report provides an overview and analysis of the Income-tax 21st Amendment Rules, 2021. The analysis is based exclusively on the content of the provided government notification and aims to inform stakeholders about the changes introduced.
**3. Policy Overview:**
* **Original Policy Being Amended:** Income-tax Rules, 1962
* **Core Objective(s):**
* To amend the existing Income-tax Rules, 1962.
* To omit specified rules and forms.
* To enable electronic furnishing of various tax related forms, returns, statements, reports and orders.
**4. Background and Rationale:**
The amendment likely aims to streamline the Income-tax Rules, 1962 by removing outdated or redundant rules and forms. The rationale for these specific changes seems to be focused on modernization of the tax system through digitization, making processes easier for taxpayers, and more efficient for the tax authorities. The mandate for electronic submission is intended to improve data management, security, and accessibility.
**5. Key Provisions / Changes:**
This amendment introduces the following changes to the Income-tax Rules, 1962:
* **Omission of Rules and Forms:** Rule 130 explicitly omits a significant number of existing rules (5A, 5AB, 6ABB, 12B, 12BA, 16D, 16DD, 16E, 16F, 18B, 18BB, 18BBA, 18DD, 18DDA, 20AB, 29AA, 29D, 37, 37E, 37F, 44A, 48, 123, and 124) and corresponding forms listed in Appendix II. These omissions simplify the overall regulatory landscape by removing requirements. This affects requirements, compliance and filing procedures for tax payers.
* **Electronic Furnishing Mandate:** Rule 131 mandates the electronic furnishing of various forms, returns, statements, reports, and orders prescribed in Appendix II. The Principal Director General of Income-tax Systems or the Director General of Income-tax Systems, with the approval of the Board, will specify the forms subject to electronic submission. This will require taxpayers to adopt digital methods of filing their income tax information.
* **Continuation of Pending Proceedings:** Clause 3 of Rule 130 states that any pending proceeding (appeal, reference, or revision) will continue and be disposed of as if the omitted rules and forms were still in effect. Similarly, agreements, appointments, approvals, recognitions, directions, instructions, notifications, or orders issued under the omitted rules and forms will remain in force.
**6. Target Audience and Stakeholders:**
The primary target audience includes:
* **Taxpayers:** Individuals, businesses, and other entities subject to income tax, as they will be impacted by the changes in rules, forms, and filing procedures.
* **Tax Professionals:** Accountants, tax consultants, and other professionals who advise taxpayers on compliance matters.
* **Tax Authorities:** The Central Board of Direct Taxes (CBDT) and its associated departments are responsible for implementing and administering the rules.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:**
* Central Board of Direct Taxes (CBDT).
* Principal Director General of Income-tax Systems or the Director General of Income-tax Systems.
* **Timelines/Procedures:**
* The amendment came into force from the date of its publication in the Official Gazette (July 29, 2021).
* The Principal Director General of Income-tax Systems or the Director General of Income-tax Systems will specify the data structure, standards, and procedures for electronic furnishing, including any required modifications to the format.
* **Amendment Specifics:**
* The electronic furnishing requirement will be implemented gradually as the specified authorities make the necessary specifications and provide guidance.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes of these changes are:
* **Simplified Compliance:** Omission of rules and forms should lead to a simplified tax compliance process for taxpayers.
* **Increased Efficiency:** Electronic filing should result in faster processing times, reduced paperwork, and improved data accuracy.
* **Improved Data Management:** Electronic submission enables better storage, retrieval, and analysis of tax data.
* **Modernization of Tax System:** The changes demonstrate a commitment to modernizing the tax system through digital transformation.
**9. Conclusion:**
The Income-tax 21st Amendment Rules, 2021 represent a significant step towards streamlining and modernizing the Indian tax system. By omitting redundant rules and forms and mandating electronic filing, the amendment aims to enhance efficiency, improve compliance, and facilitate better data management. The changes are likely to have a positive impact on both taxpayers and tax authorities. Affected Industry is advised to stay informed about the specific details of electronic filing procedures and the forms that are now omitted to ensure compliance.
Key Entities Referenced
New Delhi: Location of notification issuance.
Central Board of Direct Taxes: Issuing authority for the notification.
Incometax Act, 1961: Act under which the powers are conferred for making the rules.
Incometax Rules, 1962: Rules being amended by this notification.
Incometax 21st Amendment Rules, 2021: Name of the amended rules.
Official Gazette: The gazette in which the notification will be published.
Principal Director General of Incometax Systems: Authority responsible for specifying the forms, returns, statements, reports and orders to be furnished electronically.
Director General of Incometax Systems: Authority responsible for specifying the forms, returns, statements, reports and orders to be furnished electronically.
Board: Referring to Central Board of Direct Taxes, grants approval for specifying forms and laying down data structure.
Tax Policy and Legislation Division: Division under which the Under Secretary operates.
ANKIT JAIN: Under Secretary of Tax Policy and Legislation Division.
Ministry of Finance: Ministry under which the Department of Revenue and Central Board of Direct Taxes function.
Department of Revenue: Department under which the Central Board of Direct Taxes functions.
Government of India Press, Ring Road, Mayapuri, New Delhi: Location of Dte. of Printing
Delhi: Location of Controller of Publications
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एलxx.x-GअID.-E2x9xx0 72021-228559
CG-DL-E-29072021-228559
असाधारण
EXTRAORDINARY
भाग II—खण्ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 416] नई ददल्ली, बहृ स्ट्प जतिार, जलु ाई 29, 2021/श्रािण 7, 1943
No. 416] NEW DELHI, THURSDAY, JULY 29, 2021/SHRAVANA 7, 1943
जित्त मत्रं ालय
(राजस्ट्ि जिभाग)
(केंद्रीय प्रत्यक्ष-कर बोड)ड
अजधसचू ना
नई ददल्ली, 29 जुलाई, 2021
(आय-कर)
सा.का.जन. 514(अ).—केंद्रीय प्रत्यक्ष-कर बोडड, आय-कर अजधजनयम, 1961 (1961 का 43) की धारा 295 द्वारा
प्रदत्त िजियों का प्रयोग करते हुए, आय-कर जनयम, 1962 का और संिोधन करने के जलए जनम्नजलजखत जनयम बनाता है,
अथाडत् :--
1. संजक्षप्त नाम और प्रारंभ—(1) इन जनयमों का संजक्षप्त नाम आय-कर (इक्कीसिा संिोधन) जनयम, 2021 ह ै।
(2) ये राजपत्र में अजधसूचना के प्रकािन की तारीख को प्रिृत्त होंगे ।
2. आय-कर जनयम, 1962 में, जनयम 129 के पश्चात्, जनम्नजलजखत जनयम अंत:स्ट्थाजपत दकए जाएंगे, अथाडत् :--
‘‘130. कजतपय जनयमों और प्ररूप का लोप तथा व्यािजृ त्तया — (1) जनयम 5क, जनयम 5कख, जनयम 6कखख, जनयम 12ख,
जनयम 12खक, जनयम 16घ, जनयम 16घघ, जनयम 16ङ, जनयम 16च, जनयम 18ख, जनयम 18खख, जनयम 18खखक,
जनयम 18घघ, जनयम 18घघक, जनयम 20कख, जनयम 29कक, जनयम 29घ, जनयम 37, जनयम 37ङ, जनयम 37च, जनयम
44क, जनयम 48, जनयम 123 और जनयम 124 का लोप दकया जाएगा ।
(2) पररजिष्ट 2 के प्ररूप आईटीआर-8, 2ख, 2ग, 2ङ, 3कक, 3ककक, 3खक, 4, 5, 5क, 10कक, 10ग, 10गग, 10गगक,
10गगकक, 10गगकख, 10गगकखक, 10गगकग, 10गगकघ, 10गगकङ, 10गगकच, 10गगकछ, 10गगकज, 10गगकझ,
4143 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
10गगखक, 10गगखख, 10गगखखक, 10गगखग, 10गगखघ, 10घख, 10घग, 10छ, 10जक, 11, 11क, 12, 12क,
15झ, 15ञ, 16कक, 22, 24, 26, 27ङ, 30, 34क, 34ख, 34खक, 37, 37ङङ, 37च, 37छ, 37ज, 37झ, 54, 55,
56क, 56कक, 56ख, 56खक, 56ग, 56गक, 56ङ, 56च, 56चच, 56छ, 56ज, 58क, 58ख, 63, 63क और प्ररूप 63कक
का लोप दकया जाएगा ।
(3) ऐसे लोप में दकसी बात के होते हुए भी, इस जनयम के प्रारंभ की तारीख से ही—
(i) अपील, जनदिे या पुनरीक्षण के रूप में दकसी आय-कर प्राजधकारी, दकसी अपील अजधकरण या दकसी न्यायालय के समक्ष
लंजबत कोई कायडिाही जारी रखी जाएगी या उनका जनपटारा दकया जाएगा, मानो उपजनयम (1) और उपजनयम (2) में
उजल्लजखत जनयमों और प्ररूपों का लोप नहीं दकया गया ह ै ;
(ii) उपजनयम (1) और उपजनयम (2) में उजल्लजखत जनयमों और प्ररूपों के अधीन दकया गया कोई करार, की गई जनयुजि,
ददया गया अनुमोदन, प्रदान की गई मान्यता, जारी दकया गया जनदिे , अनुदिे , अजधसूचना या आदिे को प्रिृत्त बना हुआ
समझा जाएगा, मानो उपजनयम (1) और उपजनयम (2) में उजल्लजखत जनयमों और प्ररूपों का लोप नहीं दकया गया ह ै।
131. प्ररूप, जििरणी, जििरण, ररपोटड, आदिे , इत्यादद को इलक्ट्े राजनक रूप म ें दने ा—(1) यथाजस्ट्थजत, प्रधान महाजनदिे क,
आय-कर (प्रणाली) या महाजनदिे क, आय-कर (प्रणाली) बोडड के अनुमोदन से यह जिजनर्ददष्ट कर सकेगा दक पररजिष्ट 2 में
जिजहत कोई भी प्ररूप, जििरणी, जििरण, ररपोटड, आदिे , चाह ेजजस नाम से ज्ञात हो, इलेक्ट्राजनक रूप में ददया जाएगा—
(i) यदद आय की जििरणी अंकीय हस्ट्ताक्षर के अधीन ददया जाना अपेजक्षत ह ैतो आय-कर हस्ट्ताक्षर के अधीन ; या
(ii) खंड (i) के अधीन न आने िाले मामलों की दिा में, इलेक्ट्राजनक सत्यापन कोड के माध्यम से ।
(2) यथाजस्ट्थजत, प्रधान महाजनदिे क, आय-कर (प्रणाली) या महाजनदिे क, आय-कर (प्रणाली)—
(i) बोडड के अनुमोदन से उपजनयम (1) में जनर्ददष्ट प्ररूप, जििरणी, जििरण, ररपोटड, आदिे को जिजनर्ददष्ट करेगा, जजसे
इलेक्ट्राजनक रूप से ददया जाना ह ै ;
(ii) रूप जिधान में उपांतरण के साथ डाटा संरचना, मानक और दने े की प्रदिया तथा ऐसे प्ररूप, जििरणी, जििरण,
ररपोटड, आदिे का सत्यापन अजधकजथत करेगा, यदद इलेक्ट्राजनक रूप से दने े के जलए इसके अनुरूप बनाना आिश्यक हो ;
और
(iii) उि प्ररूप, जििरणी, जििरण, ररपोटड, आदिे के संबंध में समुजचत सुरक्षा, पुरालेखीय और पुन:प्राजप्त नीजतयों को
बनाने और उन्ह ें लागू करने के जलए दायी होगा ।‘’
[अजधसूचना सं. 83/2021/फा. सं. 370142/30/2021-टीपीएल]
अंदकत जैन, अिर सजचि (कर नीजत और जिधायन प्रभाग)
रटप्पण : मूल जनयम भारत के राजपत्र, असाधारण, भाग II, खंड 3, उपखंड (ii) में अजधसूचना संखयांक का0आ0 969(अ),
तारीख 26 माचड, 1962 द्वारा प्रकाजित दकए गए थे और अजधसूचना संखयांक सा0का0जन0 509 (अ), तारीख
27 जुलाई, 2021 द्वारा अंजतम संिोधन दकया गया ।
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 29th July, 2021
(INCOME-TAX)
G.S.R. 514(E).––In exercise of the powers conferred by 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 (21st Amendment)
Rules, 2021.
(2) They shall come into force from the date of publication of notification in the Official Gazette.[भाग II—खण् ड 3(i)] भारत का राजपत्र : असाधारण 3
2. In the Income-tax Rules, 1962, after rule 129, the following rules shall be inserted, namely:-
―130. Omission of certain rules and Forms and savings.-(1) Rules 5A, 5AB, 6ABB, 12B, 12BA, 16D,
16DD, 16E, 16F, 18B, 18BB, 18BBA, 18DD, 18DDA, 20AB, 29AA, 29D, 37, 37E, 37F, 44A, 48, 123 and
rule 124 shall be omitted.
(2) In Appendix II, Forms ITR-8, 2B, 2C, 2E, 3AA, 3AAA, 3BA, 4, 5, 5A, 10AA, 10C, 10CC, 10CCA,
10CCAA, 10CCAB, 10CCABA, 10CCAC, 10CCAD, 10CCAE, 10CCAF, 10CCAG, 10CCAH, 10CCAI,
10CCBA, 10CCBB, 10CCBBA, 10CCBC, 10CCBD, 10DB, 10DC, 10G, 10HA, 11, 11A, 12, 12A, 15I,
15J, 16AA, 22, 24, 26, 27E, 30, 34A, 34B, 34BA, 37, 37EE, 37F, 37G, 37H, 37-I, 54, 55, 56A, 56AA,
56B, 56BA, 56C, 56CA, 56E, 56F, 56FF, 56G, 56H, 58A, 58B, 63, 63A and Form 63AA shall be omitted.
(3) Notwithstanding such omission, on and from the date of commencement of this rule–
(i) any proceeding pending before any income-tax authority, any Appellate Tribunal or any court, by
way of appeal, reference or revision, shall be continued and disposed of as if rules and forms mentioned in
sub-rule (1) and sub-rule (2) have not been omitted;
(ii) any agreement entered into, appointment made, approval given, recognition granted, direction,
instruction, notification or order issued under the rules and Forms mentioned in sub-rule (1) and sub-rule
(2) shall be deemed to continue in force as if rules and forms mentioned in sub-rule (1) and sub-rule (2)
have not been omitted.
131. Electronic furnishing of Forms, Returns, Statements, Reports, orders etc.- (1) The Principal
Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case
may be, may with the approval of the Board specify that any of the Forms, returns, statements, reports,
orders, by whatever name called, prescribed in Appendix II, shall be furnished electronically—
(i) under digital signature, if the return of income is required to be furnished under digital signature; or
(ii) through electronic verification code in a case not covered under clause (i).
(2) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax
(Systems), as the case may be, shall-
(i) with the approval of the Board specify the Forms, returns, statements, reports, orders, referred to in
sub-rule (1), which are to be furnished electronically;
(ii) lay down the data structure, standards and procedure of furnishing and verification of such Forms,
returns, statements, reports, orders, including modification in format, if required, to make it
compatible for furnishing electronically; and
(iii) be responsible for formulating and implementing appropriate security, archival and retrieval
policies in relation to the said Forms, returns, statements, reports, orders.‖.
[Notification No. 83/2021/F. No. 370142/30/2021-TPL]
ANKIT JAIN, Under Secy. (Tax Policy and Legislation Division)
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. 509(E) dated 27th July, 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.