Ministry of Finance

CBDT notifies changes to Rule 11UA in respect of ANGEL TAX

Dated: 26 SEP 2023

The Finance Act, 2023, brought in an amendment to bring the consideration received from non-residents for issue of shares by an unlisted company within the ambit of section 56(2)(viib) of the Income-tax Act, 1961(the Act), which provides that if such consideration for issue of shares exceeds the Fair Market Value (FMV) of the shares, it shall be chargeable to income-tax under the head ‘Income from other sources’. 

Keeping in line with the commitment of the Government to involve stakeholders in the drafting of the law, suggestions and feedback were invited from stakeholders and general public on the Draft Rule 11UA for valuation of methods for calculating the Fair Market price vide Press Release dated 19th May, 2023.

Taking into consideration the suggestions received in this regard and detailed interactions held with stakeholders, Rule 11UA for valuation of shares for the purposes of section 56(2)(viib) of the Act has been modified vide notification no. 81/2023 dated 25th September, 2023.

The key highlights of the changes in Rule 11 UA are:

a) In addition to the two methods for valuation of shares, namely, Discounted Cash Flow (DCF) and Net Asset Value (NAV) method, available to residents under Rule 11UA, five more valuation methods have been made available for non-resident investors, namely, Comparable Company Multiple Method, Probability Weighted Expected Return Method, Option Pricing Method, Milestone Analysis Method, Replacement Cost Method.

b) Where any consideration is received for issue of shares from any non-resident entity notified by the Central Govt., the price of the equity shares corresponding to such consideration may be taken as the FMV of the equity shares for resident and non-resident investors, subject to the following: 

(i) To the extent the consideration from such FMV does not exceed the aggregate consideration that is received from the notified entity, and

(ii) The consideration has been received by the company from the notified entity within a period of ninety days before or after the date of issue of shares which are the subject matter of valuation.

c) On similar lines, price matching for resident and non-resident investors would be available with reference to investment by Venture Capital Funds or Specified Funds. 

d) Valuation methods for calculating the FMV of Compulsorily Convertible Preference Shares(CCPS) have also been provided.

e) A safe harbor of 10% variation in value has been provided.

The notified Rule provides for expansion of the valuation methodologies to include globally accepted methodology and provide a broad parity to resident and non-resident investors.

The Notification No. 81/2023 dated 25th September, 2023 is available at www.incometaxindia.gov.in.

 

Press Information Bureau
Government of India
Ministry of Finance
18 SEP 2023 4:20PM by PIB Delhi

Gross Direct Tax collections for Financial Year 2023-24 (as on 16.09.2023) register a growth of 18.29%

The provisional figures of Direct Tax collections for the Financial Year 2023-24 (as on 16.09.2023) show that net collections are at Rs. 8,65,117 crore, compared to Rs. 7,00,416 crore in the corresponding period of the preceding Financial Year (i.e. FY 2022-23), representing an increase of 23.51%.

The Net Direct Tax collections of Rs. 8,65,117 crore (as on 16.09.2023) include Corporation Tax (CIT) at Rs. 4,16,217 crore (net of refund) and Personal Income Tax (PIT) including Securities Transaction Tax (STT) at Rs. 4,47,291 crore (net of refund).

The provisional figures of Gross collection of Direct Taxes (before adjusting for refunds) for the Financial Year 2023-24 stands at Rs. 9,87,061 crore compared to Rs. 8,34,469 crore in the corresponding period of the preceding financial year, showing a growth of 18.29%.

The Gross collection of Rs. 9,87,061 crore includes Corporation Tax (CIT) at Rs. 4,71,692 crore and Personal Income Tax (PIT) including Securities Transaction Tax (STT) at Rs. 5,13,724 crore. Minor head wise collection comprises Advance Tax of Rs. 3,55,481 crore; Tax Deducted at Source of Rs. 5,19,696 crore; Self-Assessment Tax of Rs. 82,460 crore; Regular Assessment Tax of Rs. 21,175 crore; and Tax under other minor heads of Rs. 8,248 crore.

Provisional figures of Advance Tax collections for Financial Year 2023-24 (as on 16.09.2023) stand at Rs. 3,55,481 crore, against Advance Tax collections of Rs. 2,94,433 crore for the corresponding period of the immediately preceding Financial Year i.e. 2022-23, showing a growth of 20.73%. The Advance Tax collection of Rs. 3,55,481 crore as on 16.09.2023 comprises Corporation Tax (CIT) at Rs. 2,80,620 crore and Personal Income Tax (PIT) at Rs. 74,858 crore.

Refunds amounting to Rs. 1,21,944 crore have also been issued in the FY 2023-24 till 16.09.2023.

 

Press Information Bureau
Government of India
Ministry of Finance
18 SEP 2023 8:19PM by PIB Delhi

CBDT extends due date for filing of Form 10B/10BB and Form ITR-7 for the Assessment Year 2023-24

The due date of furnishing Audit reports in Form 10B/Form 10BB for the Financial Year 2022-23, which is 30.09.2023 has now been extended by the Central Board of Direct Taxes (CBDT) to 31.10.2023.

The due date of furnishing of Return of Income in Form ITR-7 for Assessment Year 2023-24, which is 31.10.2023 is also extended to 30.11.2023.

CBDT Circular No. 16/2023 in 225/177/2023/ITA-II dated 18.09.2023 issued. The said Circular is available on www.incometaxindia.gov.in.

 

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

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New Delhi, 5^th September, 2023

Press Release

CBDT committed to speedy processing of Income Tax Returns

The Income Tax Department is committed to process the Income Tax Returns (ITRs) in a speedy and efficient manner. As on 05.09.2023, 6.98 crore ITRs for AY 2023-24 were filed, out of which 6.84 crore ITRs have been verified. More than 6 crore ITRs of AY 2023-24 have been processed out of the verified ITRs as on 05.09.2023, resulting in processing of over 88% of the verified ITRs. More than 2.45 crore refunds for AY 2023-24 have already been issued.

           The Department’s efforts to provide seamless and expeditious taxpayer services are being continuously strengthened. In line with the same, average processing time of ITRs (after verification) has been reduced to 10 days for Returns filed for AY 2023-24 compared to 82 days for AY 2019-20 and 16 days for AY 2022-23.  

It is pertinent to state that the Department is not able to process the following categories of ITRs for want of certain information/action on the part of taxpayers:

a) There are about 14 lakh ITRs for AY 2023-24 which have been filed but are yet to be verified by the taxpayers as on 04.09.2023. Failure to verify the Returns causes delays in processing as the Return can only be taken up for processing once the verification has been completed by the taxpayer. Taxpayers are urged to complete the verification process immediately.

b) There are about 12 lakh verified ITRs in which further information has been sought by the Department, for which requisite communication has been sent to the taxpayers through their registered e-filing accounts. Taxpayers are requested to respond to such communication expeditiously.

There are several cases in which the ITRs have been processed and refunds have also been determined but the Department is unable to issue them as taxpayers have not yet validated their bank account in which the refund is to be credited. Taxpayers are requested to validate their bank accounts through the e-filing portal.

         The Department remains committed to speedy processing and expeditious issue of refunds and solicits the cooperation of the taxpayers.

(Surabhi Ahluwalia)

Pr. Commissioner of Income Tax

(Media and Technical Policy) &

Official Spokesperson, CBDT

 

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

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New Delhi, 26^th  August, 2023

PRESS RELEASE

CBDT launches the revamped National Website of the Income Tax Department www.incometaxindia.gov.in

          In order to enhance taxpayer experience and keep pace with new technology, the Income Tax Department has revamped its National website www.incometaxindia.gov.in  with a user-friendly interface, value-added features, and new modules. The newly revamped website was launched by Shri. Nitin Gupta, Chairman, CBDT, on 26^th August, 2023, at the ‘Chintan Shivir’, organised by Directorate of Income Tax (Systems) at Udaipur.         

          This website serves as a comprehensive repository of tax and other related information. It provides access to Direct Tax laws, several other Allied Acts, Rules, Income Tax Circulars and Notifications, all cross-referenced and hyperlinked. The site also offers a 'Taxpayer Services Module' featuring various tax tools to assist taxpayers in filing their income tax returns.

        The revamped website has been aesthetically redesigned with a mobile-responsive layout. The website also has a ‘Mega Menu’ for content, with new features, and functionalities. For the convenience of the visitors to the website, all these new additions are explained through a guided virtual tour and new button indicators.

         The new functionalities, allow users to compare different Acts, Sections, Rules, and Tax treaties. All relevant content on the site is now tagged with Income Tax sections for easy navigation. Further, dynamic due date alerts functionality provides reverse countdowns, tooltips, and links to relevant portals to help taxpayers to comply easily.

        The revamped website is another initiative in providing enhanced taxpayer services and will continue to educate taxpayers and facilitate tax compliance.

(Surabhi Ahluwalia)

Pr. Commissioner of Income Tax

(Media and Technical Policy) &

Official Spokesperson, CBDT