Home India Ministry of Finance Income tax Seventh Amendment Rules, 2023 amendment of Rule 1...
Date: 30-May-2023 Category: Extra Ordinary State: Union Government Country: India

Income tax Seventh Amendment Rules, 2023 amendment of Rule 11AA

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • The notification issued by the Central Board of Direct Taxes (CBDT) amends the Income-tax Rules, 1962, specifically concerning the effective date of provisional approval for applications made under section 80G of the Income-tax Act, 1961.

Key Changes

  • The Income-tax (7th Amendment) Rules, 2023 are introduced and will be effective from the date of their publication in the Official Gazette (May 30, 2023).
  • Rule 11AA of the Income-tax Rules, 1962 is amended by substituting sub-rule (7).
  • The amended sub-rule (7) specifies that in the case of an application made under clause (iv) of the first proviso to sub-section (5) of section 80G, the provisional approval will be effective from the assessment year relevant to the previous year in which the application was made.

Impact Analysis

Non-Profit Organizations/Trusts/Charitable Institutions

  • Action Item: Review existing and future 80G applications to ensure compliance with the amended rule regarding the effective date of provisional approval.

Donors

  • Action Item: Donors should verify the effective date of the 80G approval of the organizations they donate to, in order to accurately claim tax deductions.

Tax Authorities

  • Action Item: Update internal guidelines and systems to reflect the change in the effective date of provisional approvals under section 80G.

Key Entities Referenced

Central Board of Direct Taxes (CBDT): The issuing authority for the notification, responsible for amending the Income-tax Rules, 1962. Income-tax Act, 1961: The principal legislation governing income tax in India, specifically section 80G which deals with deductions for donations to certain funds, charitable institutions, etc. Income-tax Rules, 1962: The set of rules framed under the Income-tax Act, 1961, which are being amended by this notification. Rule 11AA is specifically mentioned. Section 80G: Section of the Income-tax Act, 1961 that provides for deductions in respect of donations to certain funds, charitable institutions, etc.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-30052023-246168 xxxGIDHxxx CG-DL-E-30052023-246168 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.ं 325] नई दिल्ली, मगं लिार, मई 30, 2023/ज्य ष्े ि 9, 1945 No. 325] NEW DELHI, TUESDAY, MAY 30, 2023/JYAISHTHA 9, 1945 जित्त मत्रं ालय (रािस्ट्ि जिभाग) (केंद्रीय प्रत्यक्ष-कर बोड)ड अजधसचू ना नई दिल्ली, 30 मई, 2023 आय-कर सा.का.जन. 399(अ).—केंद्रीय प्रत्यक्ष कर बोड,ड आय-कर अजधजनयम, 1961 (1961 का 43) की धारा 295 के साथ पठित धारा 80छ की उपधारा (5) के पहल े परंतुक के खंड (i) खडं (ii), खंड (iii) और खंड (iv) और धारा 80छ की उपधारा (5) के तीसरे परंतुक द्वारा प्रित्त िजियों का प्रयोग करते हुए, आय-कर जनयम, 1962 का और संिोधन करन े के जलए जनम्नजलजखत जनयम बनाता ह,ै अथाडत ् :-- 1. संजक्षप्त नाम और प्रारंभ—(1) इन जनयमों का संजक्षप्त नाम आय-कर (सातिााँ संिोधन) जनयम, 2023 ह।ै (2) य ेरािपत्र में उनके प्रकािन की तारीख को प्रिृत्त होंगे। 2. आय-कर जनयम, 1962 म,ें जनयम 11कक के, उप-जनयम (7) के स्ट् थान पर जनम्नजलजखत उप-जनयम रखा िाएगा, अथाडत:् - “(7) धारा 80छ की उपधारा (5) के पहले परन्तुक के खंड (iv) के अधीन दकए गए दकसी आिेिन की ििा में, अनंजतम अनुमोिन उस पूिड िर्,ड जिसमें ऐसा आिेिन दकया गया ह ैके ससु ंगत जनधाडरण िर्ड स ेप्रभािी होगा ।"। 3419 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] [अजधसूचना स.ं 34/ 2023 / फाईल नंबर 370142/13/2023-टीपीएल] जिपुल अग्रिाल, जनििे क (कर नीजत और जिधान प्रभाग) ठटप्पण : मलू जनयम भारत के रािपत्र, असाधारण, भाग- 2, खडं -3, उप-खडं (ii) म ें संख्या का.आ. 969 (अ) तारीख 26 माच,ड 1962 द्वारा प्रकाजित दकए गए थ े और अंजतम बार अजधसूचना संख्या सा0का0जन0 396 (अ) तारीख 29 मई, 2023 द्वारा संिोजधत दकए गए थ े। MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, 30th May, 2023 INCOME-TAX G.S.R. 399(E).—In exercise of the powers conferred by clauses (i), (ii), (iii) and (iv) of the first proviso to sub-section (5) of section 80G and the third proviso to sub-section (5) of section 80G 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) These rules may be called the Income-tax (7th Amendment) Rules, 2023. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Income-tax Rules, 1962, in rule 11AA, for sub-rule (7), the following sub-rule shall be substituted, namely:- “(7) ̶̶In ̶̶case ̶̶of ̶̶an ̶̶application ̶̶made ̶̶under ̶̶clause ̶̶(iv) ̶̶of ̶̶the ̶̶first ̶̶proviso ̶̶to ̶̶sub-section (5) of section 80G of the Act, the provisional approval shall be effective from the assessment year relevant to the previous year in which such application ̶̶is ̶̶made.”. [Notification No. 34/2023/ F. No. 370142/13/2023-TPL] VIPUL AGARWAL, Director (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 26th March, 1962 and were last amended vide notification number G.S.R. 396 (E) dated 29th May, 2023. 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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