Notified Country under section 89A of the Income tax Act, 1961

## Report on Notification Regarding Section 89A of the Income-tax Act, 1961 **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, concerning Section 89A of the Income-tax Act, 1961. This notification, effective from April 4, 2022, designates Canada, the United Kingdom of Great Britain and Northern Ireland, and the United States of America as notified countries for the purposes of Section 89A. This designation likely impacts tax relief eligibility for individuals with income from these countries, although the specific implications require further context beyond the provided text. **2. Introduction:** This report aims to provide a detailed overview of Notification No. 25/2022, published in the Gazette of India on April 4, 2022, regarding Section 89A of the Income-tax Act, 1961. The analysis is based solely on the provided text. **3. Policy Overview:** * This appears to be a new policy notification clarifying the application of Section 89A of the Income-tax Act, 1961. * **Core Objective:** The core objective, inferred from the text, is to specify the countries to which the provisions of Section 89A of the Income-tax Act, 1961, apply. **4. Background and Rationale:** * As a new policy notification clarifying the application of an existing section of the Income-tax Act, it can be inferred that this notification addresses potential ambiguity or a need for specific guidance on which countries fall under the purview of Section 89A. The absence of a list previously may have created uncertainty for taxpayers and tax authorities. **5. Key Provisions / Changes:** * This notification specifically *adds* the following countries to the list of "notified countries" under Section 89A of the Income-tax Act, 1961: * Canada * United Kingdom of Great Britain and Northern Ireland * United States of America * The *new* rule is that Section 89A of the Income-tax Act, 1961 now applies to the listed countries. Without further context on Section 89A, it's difficult to assess the impact of this change. * The *effect* of this notification is that individuals subject to income tax in India with income arising from sources in these listed countries are now subject to the provisions of Section 89A of the Income-tax Act, 1961. Again, the specific nature of these provisions cannot be clarified based on this document alone. **6. Target Audience and Stakeholders:** Based on the provided text, the target audience includes: * Individuals and entities subject to income tax in India. * Tax professionals and advisors. * The Central Board of Direct Taxes (CBDT) and other tax authorities. * Potentially residents of Canada, the UK, and the USA with income taxable in India, although this relies on understanding the purpose of Section 89A. **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The Central Board of Direct Taxes (CBDT) and the Ministry of Finance, Department of Revenue are responsible for the implementation of this notification. * **Timelines:** The notification came into force on April 4, 2022, the date of its publication in the Official Gazette. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of this notification is to: * Provide clarity and certainty regarding the applicability of Section 89A to the specified countries. * Facilitate the proper application of Section 89A to income earned in these countries by Indian taxpayers. **9. Conclusion:** Notification No. 25/2022 designates Canada, the United Kingdom of Great Britain and Northern Ireland, and the United States of America as notified countries for the purposes of Section 89A of the Income-tax Act, 1961. This notification, effective from April 4, 2022, aims to provide clarity and facilitate the application of Section 89A to income earned by Indian taxpayers in these countries. Further research into the specifics of Section 89A is recommended to fully understand the implications of this notification.

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