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The Central Board of Direct Taxes issues the Income-tax (6th Amendment) Rules, 2022, to insert rule 21AAA and Form No. 10-EE regarding the taxation of income from retirement benefit accounts maintained in a notified country. A specified person may choose to include accrued income from a specified account in total income for the assessment year when the notified country taxes the withdrawal or redemption. The specified person submits Form No. 10-EE electronically on or before the due date for furnishing the return of income under sub-section (1) of section 139 of the Act. The option applies to all specified accounts and remains in effect for all subsequent previous years. When the specified person becomes a non-resident during a later previous year, the option becomes invalid and accrued income becomes taxable.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 4th April, 2022
G.S.R. 256(E).— In exercise of the powers conferred by section 89A 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:─
Short title and commencement:- (1) These rules may be called the Income-tax (6th Amendment), Rules, 2022.
(2) They shall come into force from the date of their publication in the Official Gazette.
In the Income-tax Rules, 1962 (hereafter referred to as the principal rules), after rule 21AA, the following rules shall be inserted, namely:—
―21AAA. Taxation of income from retirement benefit account maintained in a notified country – (1) Where a specified person has income accrued in a specified account or accounts, during a previous year relevant to any assessment year beginning on or after the 1st day of April, 2022, such income shall, at the option of the specified person, be included in his total income of the previous year relevant to the assessment year in which income from the said specified account or accounts is taxed at the time of withdrawal or redemption, as the case may be, in the notified country.
(2) Where the option has been exercised by a specified person under sub-rule (1), the total income of the specified person for the previous year in which income is taxable under sub-rule (1) shall not include the income which,—
(3) The option under sub-rule (1) shall be exercised by the specified person in respect of all the specified accounts maintained by the specified person.
(4) In a case where the specified person becomes a non-resident during any relevant previous year, then-
(5) The option to be exercised under sub-rule (1) by the specified person, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2022, shall be in Form No. 10-EE and it shall be furnished electronically under digital signature or electronic verification code on or before the due date specified under sub-section (1) of section 139 of the Act, for furnishing the return of income.
(6) Subject to the provisions of sub-rule (4), the option once exercised for a specified account or accounts in respect of a previous year under sub-rule (1) in Form No. 10- EE shall apply to all subsequent previous years and cannot be subsequently withdrawn for the previous year for which the option was exercised or any previous year subsequent to that previous year.
(7) The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems), as the case may be, shall specify the procedures, formats and standards for ensuring secure capture and transmission of data and shall be responsible for evolving and implementing appropriate security, archival and retrieval policies in respect of Form No. 10-EE.
Explanation.— For the purposes of this rule,-
“FORM No. 10-EE
[See sub-rule (1) of rule 21AAA]
| S. No. | ||
|---|---|---|
| 1. | Name of the specified person | : |
| 2. | PAN of specified person | : |
| 3. | Address of specified person | : |
| 4. | Previous year in respect of which option is being exercised | : yyyy - yyyy |
| S.No. | Account number | Name of Retirement Fund | Name of notified Country < select from drop down> | Balance as on last day of the financial year prior to the previous year for which this Form is being filled | Year in which account opened <dd.mm.yyyy> | Specify how the income from specified account is taxable in the notified country ($) < Select relevant code> | Specify the previous year in which the income from specified account is eligible to be withdrawn (yyyy-yyyy) | Nature of Income ($$) < Select relevant code> | Amount of income from the specified account which has already been included in the income of any earlier previous year during which such income accrued as referred to in -clause (a) of sub-rule (2). (in Rs) | Specify the previous year or years in which amount referred to in column (x) has been included (yyyy-yyyy) | Amount of Income from the specified account which was not taxable in India due to reasons referred in clause (b) of sub-rule (2) of rule 21AAA (in Rs) | Specify the previous year or years in which amount referred to in column (xii) is exempt on account of the specified person being ―non-resident‖ or ―not ordinarily resident‖ (yyyy-yyyy) | Whether return of income for the previous year referred to in column (xii) was furnished in India? Yes/No (If yes, please quote acknowledgement numer) |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (i) | (ii) | (iii) | (iv) | (v) | (vi) | (vii) | (viii) | (ix) | (x) | (xi) | (xii) | (xiii) | (xiv) |
| The income accrued in specified accounts as specified in paragraph 5, shall be included in the total income for the previous year relevant to the assessment year in which income from the said specified account has been taxed or taxable in the notified country at the time of withdrawal or redemption | : Yes/No |
|---|
Declaration
I, __________________________________________________________________ (Name in full and in block letters) son/daughter/wife of __________________________________________ do hereby declare that to the best of my knowledge and belief what is stated in the form above is correct and complete. I further declare that I am competent to make this declaration and furnish this statement.
2. I hereby declare that I have exercised the option as per paragraph 6 for all the specified accounts mentioned in paragraph 5.
3. I understand that the above option, once exercised for any previous year, cannot be subsequently withdrawn for the previous year for which option is exercised or any previous year subsequent to that previous year.
