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The Central Board of Direct Taxes amends the Income-tax Rules, 1962 to revise procedures for issuing certificates for lower tax deduction or no tax deduction under section 197. The Assessing Officer determines existing and estimated tax liability using specific criteria like estimated income, past returns, and advance tax payments. The amended rules update rule 28AA, modify rule 31A regarding statement particulars, and substitute Form No. 13 in Appendix-II. The updated rules take effect on the first day of April, 2011.
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[TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY,PARTII, SECTION 3, SUB-SECTION (ii)]
GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES)
Notification
New Delhi, the 29th March, 2011.
INCOMETAX
S.O. 647 (E).‐ In exercise of the powers conferred by 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) These rules may be called the Income‐tax (Second Amendment) Rules, 2011. (2) They shall come into force on the 1st day of April, 2011.
In the Income-tax rules, 1962, –
(a) for rule 28AA, the following rule shall be substituted, namely:-
“Certificate for deduction at lower rates or no deduction of tax from income other than dividends.
28AA. (1) Where the Assessing Officer, on an application made by a person under sub- rule (1) of rule 28 is satisfied that existing and estimated tax liability of a person justifies the deduction of tax at lower rate or no deduction of tax, as the case may be, the Assessing Officer shall issue a certificate in accordance with the provisions of sub- section (1) of section 197 for deduction of tax at such lower rate or no deduction of tax.
(2) 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 income, as the case may be, of the last three previous years;
(iii) existing liability under the Income-tax Act,1961 and Wealth-tax Act,1957;
(iv) advance tax payment for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28;
(v) tax deducted at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28; and (vi) tax collected at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28.
(3) The certificate shall be valid for such period of the previous year as may be specified in the certificate, unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period.
(4) The certificate shall be valid only with regard to the person responsible for deducting the tax and named therein.
(5) The certificate shall be issued direct to the person responsible for deducting the tax under advice to the person who made an application for issue of such certificate.” (b) in rule 31A, in sub-rule (4), after clause (iv),the following clauses shall be inserted, namely:-
“(v) furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee;
(vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee.”
(c) in Appendix-II , for Form No.13, the following Form shall be substituted, namely:-
“FORM NO. 13 [See rules 28 and 37G] Application by a person for a certificate under sections 197 and/or 206C(9) of the Income-tax Act, 1961, for no *deduction/collection of tax or *deduction/ collection of tax at a lower rate To
The Assessing Officer,
and/or
*I,_______________of__________________________________do, hereby, request that a certificate may be issued to the seller, being the person responsible for collecting the tax from me in respect of the amount payable by me as the buyer of[specify the nature of goods referred to in the Table in sub-section (1) of section 206C]/lessee or licensee of _______________________________________________________[specify the nature of contract or licence or lease referred to in the Table in sub-section (1C) of section 206C] (Strike out whichever is not applicable) authorizing him to collect income-tax at the rate of____________________per cent at the time of debit of such amount to my account or receipt thereof from me, as the case may be. The particulars of my income and other details are as per para 2.
(i) Status (State whether individual, Hindu undivided family, firm, body of individuals, Company, etc.)
(ii) Residential status (Whether resident / resident but not ordinarily resident / non-resident)
(iii) Permanent Account No. (PAN)
(iv) Tax Deduction and Collection Account No. (TAN)
(v) Details of returns/statements which have become due but have not been filed :
| Section under which return/statement has become due | Assessment year/ quarter | Due date for filing | Reason for not filing |
|---|---|---|---|
| (1) | (2) | (3) | (4) |
| Section 139 | |||
| Section 200 | |||
| Section 206C |
(vi) Details of returned income/ assessed income for the last three assessment years: (enclose copies of returns of income filed along with their enclosures and copies of assessment orders, if assessed, for the last three assessment years.)
| Assessment year | Total income as per return of income | Total income as per latest assessment | Total tax including interest payable on returned income | Total tax including interest payable on assessed income |
|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) |
(vii) Details of tax payment for the last three assessment years:
| Assessment year | Total payment of tax including interest | Tax paid by way of Advance tax | Credit claimed for tax deduction at source. | Credit claimed for tax collection at source. | Tax paid by way of self assessment tax | Tax paid in response to notice of demand under section 156 |
|---|---|---|---|---|---|---|
| (1) | (2) | (3) | (4) | (5) | (6) | (7) |
(viii) Details of sales, profit, etc. for the last three previous years in the case of assessee whose income include income under the head “Profits and gains of business or profession”: (enclose copies of profit and loss account and balance sheet along with audit report, if audited, for the last three previous years)
Previous year | Gross sales, turnover receipt of business or profession | Gross profit | Net profit In rupees | In percentage to amount stated in column (1) | In rupees | In percentage to amount stated in column (1) (1) | (2) | (3) | (4) | (5) | (6) | | | | |
(ix) Details of existing liability under Income-tax Act, 1961 and Wealth-tax Act, 1957:
| Liability under the Income-tax Act, 1961 | |||||
|---|---|---|---|---|---|
| Assessment Year/ period | 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. | Amount payable under the Wealth-tax Act, 1957 |
| (1) | (2) | (3) | (4) | (5) | (6) |
(x) Assessment year to which the payments relate
(xi) Estimated total income of the previous year relevant to the assessment year referred to in (x) above (give detailed computation and basis thereof)
(xii) Total tax including interest payable on the income at (xi)
(xiii) How the liability mentioned in col. (ix) and col. (xii) is proposed to be discharged?
(xiv) Details of payment of advance-tax and tax already deducted/collected for the assessment year relevant to the current previous year till date.
| Nature of prepaid tax | Date of payment/deduction/collection |
|---|---|
| Advance tax | |
| TDS | |
| TCS |
(xv) Details of income claimed to be exempt and not included in the total income in col. (xi) (Please append a note giving reason for claiming such exemption).
(xvi) Please furnish the particulars in Annexure-I in respect of no deduction of tax or deduction of tax at a lower rate under section 197 and/or in Annexure-II for collection of tax at lower rate under section 206C(9) of the Income-tax Act, as the case may be.
*I,___________________________________the trustee/co-trustee of_______________________do hereby declare that the securities/sums/shares, particulars of which are given in the Annexure, are properly held under trust wholly for charitable or religious purposes and that the income therefrom qualifies for exemption under sections 11 and 13 of the Income-tax Act, 1961.
*I declare that the securities/sums/shares, particulars of which are given in the Schedules above, stand in my name and are beneficially owned by me, and the income therefrom is 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. Date________________ _____________________ Signature
Place________________
Address *Strike out whichever is not applicable.
