Executive Summary:
This notification from the Central Board of Direct Taxes amends the Income-tax Rules, 1962. The amendment specifies additional electronic modes for certain transactions under the Income-tax Act, 1961 and modifies rules regarding permissible payment methods exceeding ten thousand rupees. Some amendments are retrospectively effective from September 1, 2019.
Key Points / Main Content:
Electronic Modes of Payment:
* Rule 6ABBA is inserted, effective September 1, 2019, specifying other electronic modes for transactions under various sections of the Income-tax Act.
* The specified electronic modes are: Credit Card, Debit Card, Net Banking, IMPS (Immediate Payment Service), UPI (Unified Payment Interface), RTGS (Real Time Gross Settlement), NEFT (National Electronic Funds Transfer), and BHIM (Bharat Interface for Money) Aadhar Pay.
Cash Payment Restrictions:
* Rule 6DD is amended regarding payments exceeding ten thousand rupees.
* The rule now includes "use of electronic clearing system through a bank account or through such other electronic mode as prescribed under rule 6ABBA" as permissible payment methods.
* References to payments exceeding twenty thousand rupees are replaced with ten thousand rupees when referring to the use of electronic clearing systems or other modes under rule 6ABBA.
* Subclauses v, vi, and vii of clause c in rule 6DD are omitted.
* Clause j of rule 6DD is omitted.
Impact Analysis:
Tax Payers:
* Impact: Taxpayers now have a wider range of options for making payments electronically for various transactions covered under the Income-tax Act. The reduced threshold for cash payments affects how businesses and individuals conduct transactions.
* Action Required: Taxpayers should familiarize themselves with the new electronic payment modes and ensure compliance with the revised rules regarding cash payments exceeding ten thousand rupees.
Businesses:
* Impact: Businesses need to adapt their payment systems to accommodate the newly specified electronic modes and ensure adherence to the cash payment restrictions.
* Action Required: Update accounting and payment systems to reflect the changes in permissible payment methods and thresholds.
Central Board of Direct Taxes (CBDT):
* Impact: The CBDT is responsible for implementing and enforcing the amended rules.
* Action Required: Ensure that the updated rules are effectively communicated to taxpayers and that assessment procedures align with the changes.
Key Entities Referenced
Central Board of Direct Taxes: An organization under the Department of Revenue, Ministry of Finance, responsible for direct tax administration in India.
Income-tax Act, 1961: A law governing income tax in India. Various sections of the act are mentioned in the context of amendments and powers conferred.
Income-tax Rules, 1962: Rules pertaining to the Income-tax Act, 1961, which are being amended by this notification.
Income-tax 3rd Amendment Rules, 2020: The title of the amendment rules being introduced by this notification.
Section 13A: A section of the Income-tax Act, 1961 related to taxes.
Section 35AD: A section of the Income-tax Act, 1961 related to taxes.
Section 40A: A section of the Income-tax Act, 1961 related to taxes.
New Delhi: The location of the Ministry of Finance and Central Board of Direct Taxes, where the notification was issued.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. NO. D. L.-33004/99
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सी.जी.-डी.एल.-अ.-30012020-215804
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CG-DL-E-30012020-215804
असाधारण
EXTRAORDINARY
भाग II—खण्ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 53] नई ददल्ली, बधु िार, जनिरी 29, 2020/माघ 9, 1941
No. 53] NEW DELHI, WEDNESDAY, JANUARY 29, 2020/MAGHA 9, 1941
जित्त म्ं ालय
(राजस्ट्ि जिभाग
(केन्दर ीय प्रत्य क्ष कर बरडड
अजधसचू ना
नई ददल् ली, 29 जनिरी, 2020
आयकर
सा.का.जन. 56(अ .—केन्द रीय प्रत् यक्ष कर बरड,ड आयकर अजधजनयम, 1961 (1961 का 43 की धारा 13क,
धारा 35कघ, धारा 40क, धारा 43, धारा 43गक, धारा 44कघ, धारा 50ग, धारा 56, धारा 80ञञकक, धारा
269धध, धारा 269धन और धारा 269न के साथ पठठत धारा 295 द्वारा प्रदत् त िजतत यक का प्रयरग करते ए ए आयकर
जनयम, 1962 का और संिरधन करन े के जलए जनम् नजलजखत जनयम बनाता ै, अथाडत:्-
1. संजक्ष प्त नाम और प्रारंभ.—(1 इन जनयमक का संजक्ष प् त नाम आयकर (तीसरा संिरधन जनयम, 2020 ै ।
(2) इन जनयमक में अन्दयथा उपबंजधत के जसिाय, ये राजप् में उनके प्रकािन की तारीख कर प्रिृत् त ैकगे ।
2. आयकर जनयम, 1962 म,ें (जजसे इसमें इसके पश् चात् मलू जनयम कैा गया ै ,-
(i) जनयम 6कखख के बाद, जनम्न जलजखत जनयम के अंत:स्ट् थाजपत दकया जाएगा और इसे 1 जसतंबर, 2019 स े
अंत:स्ट् थाजपत माना जाएगा:-
579 GI/2020 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
"अन्द य इल तर ाजनक रीजत
6कखखक. धारा 13क के प्रथम परंतुक के खंड (घ , धारा कघ के उपखंड (8 के खंड (च , उपधारा (3क , धारा 40क
की उपधारा (3क और उपधारा (4 के परंतुक, धारा 43 के खंड (1 के दसू रे परंतुक, धारा 43गक की उपधारा (4 ,
धारा 44कघ की उपधारा (1 का परंतुक, धारा 50ग की उपधारा (1 के दसू रे परंतुक, धारा 56 की उपधारा (2 के
खंड (भ के उपखडं (ख के दसू रे परंतुक, धारा 80ञञकक के स्ट् पष्ट ीकरण के प्रथम परंतुक के खंड (i के खडं (ख , धारा
269धध, धारा 269धन और धारा 269न के उद्देश् यक के जलए जनम्न जलजखत अन्द य इलत र ाजनक रीजत ैकगी, अथाडत ्:-
(क) क्रेजडट काडड ;
(ख) डेजबट काडड ;
(ग) नेट बैंककग ;
(घ) आइएमपीएस (त् िठरत भुगतान सेिा ;
(ङ) यूपीआई (यूजनफाइड पेमेंट इंटरफेस ;
(च) आरटीजीएस (ठरयल टाइम ग्ररस सेटलमेंट);
(छ) एनईएफटी (राष्र ीय इलेतर ाजनक करत अतं रण ; और
(ज) बीएचआईएम (भारत इंटरफेस फॉर मनी आधार भगु तान";
(ii) जनयम 6घघ,-
(क पाश् िड िीतडक के जलए, जनम्न जलजखत पाश् िड िीतडक कर रखा जाएगा अथाडत:् -
"िे मामल े और पठरजस्ट्थ जतया ं जजनमें दकसी यजतत कर एक ददन म ें दस ैजार पएपए स े अजधक की रकम म ें भगु तान या
कुल भुगतान दकसी बैंक के नाम जलखे गए पाने िाले के खाते म ें देय च क से या पाने िाले के खाते में देय बैंक ड्राफ्ट स े
या बैंक खाते के माध् यम से इलते ररजनक समािरधन प्रणाली के उपयरग से या जनयम 6कखखक में यथा जिजैत ऐस े
अन्द य इलेतररजनक प्रणाली के माध् यम से दकया जा सकेगा" ।;
(ख आरंजभक प रा में, "पाने िाले के खाते म ें देय बैंक ड्राफ्ट, बीस ैजार पएपए से अजधक", िब्द क, अंकक और अक्ष रक के
स्ट् थान पर "पाने िाले के खाते में देय बैंक ड्राफ्ट या बैंक खाते के माध् यम से इलेतररजनक समािरधन प्रणाली या जनयम
6कखखक में यथा जिजैत ऐस ेअन्द य इलेतररजनक रीजत के माध्य म स,े दस ैजार पएपए से अजधक" कर रखा जाएगा ;
(ग खडं (ग म ेंउपखंड (v), (vi), और (vii) का लरप दकया जाएगा;
(घ खंड (ञ का लरप दकया जाएगा ।"
[अजधसूचना सं. 8/2020/फा.स.ं 370142/14/2019-टीपीएल]
सौरभ गुप् ता, अिर सजचि (कर नीजत और जिधायी प्रभाग
स्ट्प ष्ट ीकारक ञापापन: यै प्रमाजणत दकया जाता ै दक इस अजधसचू ना के खंड 2 के उप-खंड (i) में यथा जिजैत सिं रधन
के संबंध म,ें इस अजधसूचना के भूतलक्ष ी प्रभाि देने स ेदकसी भी यजतत पर करई जिपरीत प्रभाि नैीं पडेगा ।
ठटप्प ण: मलू अजधसूचना, भारत के राजप्, असाधारण, भाग II, खडं 3, उप-खंड (ii म,ें अजधसूचना संख यांक
का.आ. 969(अ , तारीख 26 माचड, 1962 द्वारा प्रकाजित दकए गए थ े और अंजतम संिरधन, अजधसूचना संख यांक
सा.का.जन. 14(अ तारीख 6 जनिरी, 2020 द्वारा दकए गए थ े।भाग II खण् ड (i) भारत का राजप् : असाधारण 3
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 29th January, 2020
Income-tax
G.S.R. 56(E).—In exercise of the powers conferred by section 295 read with section 13A, section 35AD,
section 40A, section 43, section 43CA, section 44AD, section 50C, section 56, section 80JJAA, section 269SS,
section 269ST and section 269T 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 (3rd Amendment) Rules,
2020.
(2) Save as otherwise provided in these rules, they shall come into force on the date of their
publication in the Official Gazette.
2. In the Income-tax Rules, 1962 (hereafter referred to as the principal rules),−
(i) after rule 6ABB, the following rule shall be inserted and shall be deemed to have been inserted from
the 1st day of September, 2019, namely:-
“Other electronic modes
6ABBA. The following shall be the other electronic modes for the purposes of clause (d) of first proviso to
section 13A, clause (f) of sub-section (8) of section 35AD, sub-section (3), sub-section (3A), proviso to sub-
section (3A) and sub-section (4) of section 40A, second proviso to clause (1) of Section 43, sub-section (4)
of section 43CA, proviso to sub-section (1) of section 44AD, second proviso to sub-section (1) of section
50C, second proviso to sub-clause (b) of clause (x) of sub-section (2) of section 56, clause (b) of first
proviso of clause (i) of Explanation to section 80JJAA, section 269SS, section 269ST and section 269T,
namely:−
(a) Credit Card;
(b) Debit Card;
(c) Net Banking;
(d) IMPS (Immediate Payment Service);
(e) UPI (Unified Payment Interface);
(f) RTGS (Real Time Gross Settlement);
(g) NEFT (National Electronic Funds Transfer), and
(h) BHIM (Bharat Interface for Money) Aadhar Pay”;
(ii) in rule 6DD,−
(a) for the marginal heading, the following marginal heading shall be substituted, namely:−
“Cases and circumstances in which a payment or aggregate of payments exceeding ten
thousand rupees may be made to a person in a day, otherwise than by an account payee cheque
drawn on a bank or account payee bank draft or use of electronic clearing system through
a bank account or through such other electronic mode as prescribed in rule 6ABBA.”;
(b) In the opening paragraph, for the words “account payee bank draft, exceeds twenty thousand rupees”,
the words, figures and letters “account payee bank draft or use of electronic clearing system through a
bank account or through such other electronic mode as prescribed under rule 6ABBA, exceeds ten
thousand rupees” shall be substituted;
(c) in clause (c), sub-clauses (v), (vi) and (vii) shall be omitted;
(d) clause (j) shall be omitted.
[Notification No. 8/2020/F. No. 370142/14/2019-TPL]
SAURABH GUPTA, Under Secy. (Tax Policy and Legislation Division)4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
Explanatory Memorandum :− It is certified that no person is being adversely affected by giving retrospective
effect to this notification, in relation to amendment as provided in sub-clause (i) of clause 2 of this notification.
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 14(E), dated 6th January, 2020.
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