Executive Summary:
This notification, issued by the Central Board of Direct Taxes, amends the Income-tax Rules, 1962. It addresses the time period for furnishing reports under subsection 4 of section 286 of the Income-tax Act, 1961. The amendment rules, called the Income-tax 14th Amendment Rules, 2018, come into force on the date of their publication in the Official Gazette, December 18, 2018.
Key Points / Main Content:
* **Amendment Overview:**
* The Income-tax Rules, 1962, are further amended.
* This is the "Income-tax 14th Amendment Rules, 2018."
* **Effective Date:**
* The rules come into force on the date of their publication in the Official Gazette, December 18, 2018.
* **Rule 10DB Amendment:**
* In Part II, in rule 10DB, for sub-rule 4, a new sub-rule is substituted.
* **Reporting Period:**
* The period for furnishing the report under subsection 4 of section 286 is twelve months from the end of the reporting accounting year.
* **Exception for Systemic Failure:**
* If the parent entity is in a country/territory with a systemic failure that has been intimated to the constituent entity, the reporting period is six months from the end of the month in which the systemic failure was intimated.
Impact Analysis:
Constituent Entities:
* Impact: Constituent entities must adhere to the revised timelines for furnishing reports under Section 286(4) of the Income-tax Act, 1961. The systemic failure of the parent entity's country/territory can shorten the reporting deadline.
* Action Required: Constituent entities must be aware of the reporting accounting year-end and the standard twelve-month deadline, and they must monitor whether the parent entity's country/territory experiences a systemic failure, triggering the six-month reporting deadline.
Tax Authorities:
* Impact: The amendment provides clarity on reporting deadlines, assisting tax authorities in ensuring compliance with Section 286 of the Income-tax Act, 1961.
* Action Required: Tax authorities must implement and enforce the amended rules, particularly concerning systemic failure notifications and the corresponding six-month reporting deadline.
Parent Entities:
* Impact: Parent entities located in a country/territory that has systemic failure will impact the constituent entity.
* Action Required: Parent entities must intimate constituent entities if they are located in a country/territory which experiences systemic failure so the constituent entity can adhere to the six-month deadline.
Key Entities Referenced
Income-tax Act, 1961: A law of India, specifically Act 43 of 1961, which is being amended by this notification.
Central Board of Direct Taxes: The organisation issuing the notification under the Ministry of Finance, Department of Revenue.
Income-tax Rules, 1962: The rules which are being amended by this notification.
Income-tax 14th Amendment Rules, 2018: The short title of the amendment rules introduced by this notification.
Section 286: A section of the Income-tax Act, 1961 related to furnishing a report by a constituent entity.
Section 295: A section of the Income-tax Act, 1961.
Ministry of Finance: The ministry under which the Department of Revenue and Central Board of Direct Taxes operate.
Department of Revenue: A department under the Ministry of Finance.
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PART II—Section 3—Sub-section (i)
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No. 905] NEW DELHI, TUESDAY, DECEMBER 18, 2018/AGRAHAYANA 27, 1940
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अअअअििििधधधधससससचचूूचचूू ननननाााा
नई (cid:4)द(cid:6) ली, 18 (cid:4)दस(cid:12) बर, 2018
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के िलए िन(cid:12)न िलिखत िनयम बनाता ह,ै अथात(cid:24) ् :—
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(2) य ेराजप4 म(cid:15) उनके (cid:18)काशन क(cid:26) तारीख को (cid:18)वृ(cid:19)त ह&गे ।
2222.... आय-कर िनयम, 1962 के भाग 2 के िनयम 10घख के उपिनयम (4) के ;थ ान पर िन(cid:12)न िलिखत उपिनयम रखा जाएगा,
अथा(cid:24)त ्:--
‘‘(4) धारा 286 क(cid:26) उपधारा (4) म(cid:15) िन<द=(cid:24) ट घटक अि; त(cid:19)व #ारा उस उपधारा के अधीन (cid:30)रपोट(cid:24) दने े क(cid:26) अविध,
(cid:30)रपोट(cid:24) दने ेवाले लेखा वष (cid:24)के अतं से बारह मास क(cid:26) होगी :
परंतु य(cid:4)द घटक अि;त (cid:19)व का वत(cid:24)मान अि; त(cid:19) व (cid:4)कसी ऐस े दशे या राC य(cid:20)4े का िनवासी ह,ै जहां दशे या राC य(cid:20)े4
कोई (cid:18)ाियक िन=फ लता हो गई ह ै और उ% त िन= फलता के बारे म(cid:15) ऐसे घटक अि; त(cid:19) व को सिू चत कर (cid:4)दया गया ह,ै
वहां (cid:30)रपोट(cid:24) (cid:18);त ुत करन ेक(cid:26) अविध उस मास के अंत स ेछह मास क(cid:26) होगी, िजसम (cid:15)उ% त (cid:18)ाियक िन= फलता सिू चत क(cid:26)
गई ह ै।’’।
[अिधसूचना स.ं 88/2018/फा. स.ं 370142/17/2018-टीपीएल]
नीरज कुमार, अवर सिचव (कर नीित और िवधान)
7428 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
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1962 #ारा (cid:18)कािशत (cid:4)कए गए थ ेऔर अंितम संशोधन अिधसचू ना स.ं का.आ. 6054(अ), तारीख, 6 (cid:4)दसंबर, 2018
#ारा (cid:4)कया गया ।
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 18th December, 2018
INCOME-TAX
G.S.R. 1217(E).—In exercise of the powers conferred by sub-section (4) of section 286 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) This rule may be called the Income-tax (14th Amendment) Rules, 2018.
(2) They shall come into force from the date of its publication in the Official Gazette.
2. In the Income-tax Rules, 1962, in Part II, in rule 10DB, for sub-rule (4), the following sub-rule shall
be substituted, namely: ___
“(4) The period for furnishing of the report under sub-section (4) of section 286 by the constituent
entity referred to in that sub-section shall be twelve months from the end of the reporting accounting
year:
Provided that in case the parent entity of the constituent entity is resident of a country or territory,
where, there has been a systemic failure of the country or territory and the said failure has been
intimated to such constituent entity, the period for submission of the report shall be six months from the
end of the month in which said systemic failure has been intimated.”.
[Notification No. 88/2018/ F. No. 370142/17/2018-TPL]
NIRAJ KUMAR, Under Secy. (Tax Policy and Legislation)
Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-
section (ii) vide number S.O. 969(E), dated the 26th March, 1962 and were last amended vide
notification number S.O. 6054(E) dated 6th December, 2018.
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.