F.No.370142/10/2018-TPL

Government of India

Ministry of Finance Department of Revenue

Central Board of Direct Taxes (TPL Division)

***

New Delhi, dated the 17^th August, 2018

Subject: Draft notification proposing an amendment of the Income-tax Rules, 1962 for making the process of issue of certificate for no deduction, lower deduction and collection of tax electronic – reg.

Section 197 of the Income-tax Act, 1961 („the Act?) contains provisions enabling the Assessing Officer („AO?) to give the assessee a certificate for deduction of income-tax at any lower rates or no deduction of income-tax, if he is satisfied, upon an application made by the assessee in this behalf, that the total income of the recipient justifies no deduction or deduction at lower rates. Similarly, sub-sections section 206C of the Act contain provisions enabling the AO to give a certificate for collection at lower rate if he is satisfied and upon an application made by the assessee in this behalf. Further, rules 28, 28AA & 28AB, 37G & 37H and Form No. 13 have been inserted in the Income-tax Rules, 1962 („the Rules?) to specify the form and manner in which the application for grant of the certificate for lower rate of deduction or collection or no deduction may be made.

2. It is felt that the existing Form No. 13 and relevant rules are required to be rationalised. Hence, in order to rationalise and make the process of issuance of certificate for no deduction of tax or deduction/collection of tax at lower rate electronic, the existing Form No.13 and relevant rules are required to be amended. Accordingly, certain amendments in Form No. 13, and rules 28, 28AA, 28AB, 37G and 37H of the Income-tax Rules, 1962 are proposed.

3. The draft proposal is as under:-

“In the Income-tax Rules, 1962,-

(I) for rule 28, the following rule shall be substituted, namely:-

'Application for certificates for deduction of tax at lower rates.

28. (1) An application by a person for a certificate under sub-section (1) of section 197 shall be made in Form No. 13 electronically,-

(i) under digital signature; or

(ii) through electronic verification code.

(2) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify procedures, formats and standards for ensuring secure capture and transmission of data and uploading of documents. The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the furnishing of Form No.13.';

(II) in rule 28AA,-

'(a) in sub-rule (2), in clause (ii), for the words “income, as the case may be, of the last three”, the words “or estimated income, as the case may be, of last four” shall be substituted;

(b) in sub-rule (2), in clause (iv), after the word “payment”, the words “, tax deducted at source and tax collected at source” shall be inserted”;

(c) in sub-rule (2), clause (v) and clause (vi) shall be omitted;

(d) in sub-rule (4), after the word “deduction”, the words “or lower deduction” shall be inserted;

(e) for sub-rule (6), the following shall be substituted:

'(6) The certificate for deduction of tax at lower rate may be issued to the person who made an application for issue of such certificate, authorising him to receive income or sum after deduction of tax at lower rate, where the number of persons responsible for deducting the tax is likely to exceed hundred and the details of such persons are not available at the time of making application with the person making such application.

(7) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify procedures, formats and standards for issuance of certificate under sub-rule (5) and sub-rule (6). The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the issuance of said certificate.';

(III) in rule 28AB,-

'(a) in sub-rule (2), in clause (i), after the word “made;” the word “and” shall be inserted;

(b) in sub-rule (2), in clause (ii), for the words “income-tax; and” the word “income-tax.” shall be substituted;

(c) in sub-rule (2), clause (iii) shall be omitted.';

(IV) for rule 37G, the following rule shall be substituted, namely:-

'Application for certificate for collection of tax at lower rates under sub-section (9) of section 206C.

37G. (1) An application by the buyer or licensee or lessee for a certificate under sub-section (9) of section 206C shall be made in Form No. 13 electronically, -

(i) under digital signature; or

(ii) through electronic verification code.

(2) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify procedures, formats and standards for ensuring secure capture and transmission of data and uploading of documents. The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the furnishing of Form No.13-;

(V) in rule 37H,-

'(a) for sub-rule (1), following rule shall be substituted, namely:-

'(1) Where the Assessing Officer, on an application made by a person under sub-rule (1) of rule 37G is satisfied that existing and estimated tax liability of a person justifies the collection of tax at lower rate, the Assessing Officer shall issue a certificate in accordance with the provisions of sub-section (9) of section 206C for collection of tax at such lower rate;

(1A) The existing and estimated liability referred to in sub-rule (1) shall be determined by the Assessing Officer after taking into consideration the following:-

(i) tax payable on estimated income of the previous year relevant to the assessment year;

(ii) tax payable on the assessed or returned or estimated income, as the case may be, of the last four previous years;

(iii) existing liability under the Income-tax Act, 1961 and Wealth-tax Act, 1957;

(iv) advance tax payment, tax deducted at source and tax collected at source for the relevant assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 37G.';

(b) after sub-rule (5), the following rule shall be inserted, namely, :-

'(6) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify procedures, formats and standards for issuance of certificate under sub-rule (5). The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the issuance of said certificate.';

(VI) in Appendix II, for Form No.13, the following shall be substituted, namely:-

--------------

FORM NO. 13

[See rules 28 and 37G]

Application by a person for a certificate under section 197

and/or 206C(9) of the Income-tax Act, 1961, for no

deduction of tax or deduction/

collection of tax at a lower rate

To

The Assessing Officer,

1. I, ____________of_____________ do, hereby, request that a certificate may be issued to the person responsible for paying me the incomes/sum, authorising him, not to deduct/deduct income-tax at lower rate, at the time of payment of such income/sum to me. The details are specified in Annexure-I.

and/or

I, _______________of _____________do, hereby, request that a certificate may be issued to me for

receiving the incomes/sum:-

(i) after deduction of income-tax at lower rate as I do not have the details of the person making payments and their number is likely to exceed______.

(ii) without deduction of income-tax as this application is made for the person/entity specified in rule 28AB.

The details are specified in Annexure-II.

and/or

I,_______________ of _______________ do, hereby, request that a certificate may be issued to the seller/lessee or licensee, authorizing him to collect income-tax at lower rate at the time of debit of such amount to my account or receipt thereof from me, as the case may be. The details are specified in Annexure-III.

2. The particulars of my income and other relevant details are as under :
(i) Status (State whether individual, Hindu undivided family, firm, body of individuals, etc.)
(ii) Residential status (Whether resident / resident but not ordinarily resident / non-resident during the year which is sought)
(iii) Permanent Account No.
(iv) E-mail ID
(v) Mobile Number
(vi) Details of existing liability under Income-tax Act, 1961 and Wealth-tax Act, 1957:
	Assessment Year	Liability under the Income-tax Act, 1961				Amount payable under the Wealth-tax Act, 1957
		Amount payable in respect of advance-tax	Amount payable for self assessment tax	Amount for which notice of demand under section 156 has been served but not paid	Amount payable as deductor or collector which had become due but not paid
	(1)	(2)	(3)	(4)	(5)	(6)
(vii) Previous year to which the payments/receipts relate
(viii) Estimated total income of the previous year referred to in (vii) (Please upload computation of estimated total income of the previous year)
(ix) Total tax including interest payable for the total income referred to in (viii)
(x) Details of income claimed to be exempt and not included in the total income in (viii) (Please upload a note giving reason for claiming such exemption)
(xi) Details of payment of advance-tax and tax deducted/collected, if any, for the previous year referred to in (vii) till date
	Nature of prepaid tax	Amount of Total Tax Paid
	Advance Tax
	TDS
	TCS
(xii) whether exemption under section 10, section 11 or section 12 is claimed (Yes/No) (If Yes, please upload registration/exemption certificate, if any, issued by the Income-tax Authority)
(xiii) Where return of income for any of the four previous year preceding to the previous year referred to in (vii) has not been filed, please upload a computation of estimated total income of the previous year for which return of income has not been filed.
(xiv) Where return of income for any of the four previous year has been filed in paper form, please upload the copy of such

 

returns.
I, do hereby declare that to the best of my knowledge and belief what is stated above is correct, complete and truly stated, I declare that the incomes/sum referred to in this form are not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961. I further declare that what is stated in this application is correct. I further declare that I am making application in my capacity as and I am also competent to make this application and verify it. I am holding permanent account number (if allotted).   Date: Signature   Place: Address
ANNEXURE I Please furnish following particulars in respect of the payments for which the certificate is sought
Sl.No.	Tax deduction and Collection Account No. (TAN) or Permanent account number (PAN) of the person making payment	Section under which tax at source is to be deducted	Estimated amount of income/sum to be received	Requested rate of Deduction (Please fill '0' where 'NIL' deduction is requested)
(1)	(2)	(3)	(4)	(5)
ANNEXURE II [For the purpose of tax deduction at source ] Please furnish following particulars in respect of the payments for which the certificate is sought. (Please upload a note justifying the issue of certificate under sub-rule (6) of rule 28AA)
Sl.No.	Section under which tax at source is to be deducted	Estimated amount of income/sum to be received	Requested rate of Deduction
(1)	(2)	(3)	(4)
ANNEXURE III [For the purpose of tax collection at source] Please furnish following particulars in respect of receipts for which the certificate is sought

 

Sl.No.	Tax deduction and Collection Account No. (TAN) or Permanent account number (PAN) of the Seller/Lessor/Licensor	Section under which tax at source is to be collected	Estimated amount to be paid	Requested rate of collection
(1)	(2)	(3)	(4)	(5)
Date: Place:			Signature Address

 

4. The comments and suggestions of stakeholders and general public on the above draft notification are invited. The comments and suggestions may be sent electronically by 04th September, 2018 at the email address,  ts.mapwal@nic.in

 

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

                                                                                New Delhi, 18th August, 2018

 PRESS RELEASE

CBDT issues Circular on amendment of Tax Audit Report

Section 44AB of the Income-tax Act, 1961 (‘the Act’) read with rule 6G of the Income-tax Rules, 1962 (‘the Rules’) requires prescribed persons to furnish the Tax Audit Report alongwith the prescribed particulars in Form No. 3CD. The existing Form No. 3CD was amended vide notification no. GSR 666(E) dated 20^th July, 2018 with effect from 20^th August, 2018.

Representations have been received by the Central Board of Direct Taxes (CBDT) that the implementation of reporting requirements under the proposed clause 30C (pertaining to General Anti-Avoidance Rules (GAAR)) and proposed clause 44 (pertaining to Goods and Services Tax (GST) compliance) of the Form No. 3CD may be deferred. 

On consideration of the matter, the CBDT has decided, vide Circular No. 6/2018 dated 17^th August, 2018, that the reporting under the proposed clause 30C and proposed clause 44 of the Tax Audit Report shall be kept in abeyance till 31^st March, 2019. The Circular has been uploaded on the departmental website www.incometaxindia.gov.in

 

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT

 

Click here to read facts and download copy of ITAT reported in [TS-7665-ITAT-2018(Jaipur)-O]

 

ITAT allows assessee's appeal, holds that " If the assessee is entitled to deduction while computing the long term capital gain, that cannot be denied on the ground that such a claim was not before the AO."; Explains that a lawful claim of deduction cannot be denied by the revenue authorities purely on technicalities, that tax is to be levied and collected in accordance with the law; Relies on Bombay HC decision in  [TS-463-HC-2012(BOM)-O], wherein it was held that even if a claim is not made before the AO, it can be made before the appellate authorities; On perusal of the JDA, notes that there was a building on the land and hence assessee was entitled to deduction u/s. 54, holds that " Even assuming that there was no building over the property that was subject matter of JDA, still the assessee would be entitled to deduction u/s. 54F of the Act"; Rejecting Revenue's stand that assessee is not entitled to deduction, ITAT holds that " deduction u/s. 54F of the Act cannot be denied on the ground that multiple flats are obtained by the assessee."; Follows jurisdictional HC decision in [TS-170-HC-2010(KAR)-O]  wherein it was held that the 4 flats received by the assessee in a JDA constituted 'a residential house' for purpose of deduction;

Click here to read facts and download copy of ITAT reported in [TS-7702-ITAT-2018(Bangalore)-O]

 

Ministry of Finance

New Pension Scheme (NPS)

Dated: 10 AUG 2018

 

National Pension System (NPS) has been designed giving utmost importance to the welfare of the subscribers. Government has made a conscious move to shift from the defined benefit Pension Scheme to defined contribution pension scheme i.e. NPS, due to rising and unsustainable pension bill. There are a number of benefits available to the employees under NPS. Some of the benefits are enlisted below:

i) NPS is a well designed pension system managed through an unbundled architecture involving intermediaries appointed by the Pension Fund Regulatory and Development Authority (PFRDA) viz. pension funds, custodian, central record keeping and accounting agency, National Pension System Trust, trustee bank, points of presence and Annuity service providers. It is prudently regulated by PFRDA which is a statutory regulatory body established to promote old age income security and to protect the interest of subscribers of NPS.

ii) The pension wealth which accumulates over a period of time till retirement grows with a compounding effect. The all-in-costs of the institutional architecture of NPS are among the lowest in the world.

iii) Contribution made to the NPS Tier-I account is eligible for tax deduction under the Income Tax Act, 1961. An additional tax rebate of Rs.50000 is also allowed for contributions made to NPS Tier-I under Section 80CCD (1B) of the Income Tax Act, 1961.

iv) Subscribers can withdraw up to 25% of their own contributions before attaining age of superannuation, subject to certain conditions. Further, PFRDA vide “PFRDA (Exits and Withdrawals under the NPS) (First Amendment) Regulations, 2017” dated 10.08.2017 has liberalized norms for partial withdrawals which also include reduction of requirement of minimum years of being enrolled under NPS from 10 years to 3 years from the date of joining.

v) PFRDA has increased the maximum age limit from 60 years to 65 years for joining NPS-All Citizen Model and Corporate Sector Model, vide “PFRDA (Exits and Withdrawals under the NPS) (Second Amendment) Regulations, 2017” dated 06.10.2017.

vi) PFRDA vide “PFRDA (Exits and Withdrawals under the NPS) (Third Amendment) Regulations, 2018” dated 02.02.2018 has facilitated easy exit & withdrawal in case of disability and incapacitation of the subscriber covered under NPS.

vii) Transparency and Portability is ensured through online access of the pension account by the NPS subscribers, across all geographical locations and portability of employments.

     Representations have been received which inter alia also include the demand that the Government may revert to old defined benefit pension system. However, due to rising and unsustainable pension bill and competing claims on the fiscal, there is no proposal to replace the NPS with old pension scheme in respect of Central Government employees recruited on or after 01.01.2004.

This was stated by Shri Shiv Pratap Shukla, Minister of State for Finance in a Written reply to a question in Lok Sabha today.

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DSM/KA

(Release ID: 1542753)