Laws and sections by number or title, due dates, pages, and updates.
The Central Board of Direct Taxes amends the Income-tax Rules, 1962, to introduce rules for taxation under section 115BAC. The rules specify exemptions for allowances and free food or beverage for employees taxed under section 115BAC. The rules set depreciation limits for specified companies and societies. The rules add a process for exercising or withdrawing the tax option in Form No. 10-IEA. The rules come into force on the date of publication in the Official Gazette.
What you must do
Key dates
Law this touches
Who is affected
Thresholds
Ask about this notification
MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 21st June, 2023 INCOME-TAX G.S.R. 452(E).—In exercise of the powers conferred by clauses (i) and (iii) of sub-section (2), second proviso to sub-section (3) and sub-section (6) of section 115BAC, sub- clause (iii) of clause (c) of sub-section (2) of section 115BAE read with section 295 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: -
(a) in rule 2BB, for sub-rule (3), the following sub-rule shall be substituted, namely:- (3) Notwithstanding anything contained in sub-rule (1) and (2), an employee, being an assessee, - (i) who has exercised option under sub-section (5) of section 115BAC; or (ii) whose income is chargeable to tax under sub-section (1A) of section 115BAC, shall be entitled to exemption only in respect of the allowances mentioned in sub-clauses (a) to (c) of sub-rule (1) and at serial no. 11 of the Table below sub-rule (2) to the extent and subject to the conditions, if any, specified therein.”;
(b) in rule 3, in sub-rule (7), in clause (iii), for the second proviso, the following proviso shall be substituted, namely:- “Provided further that the provisions of the first proviso in respect of free food and non-alcoholic beverage provided by the employer through paid voucher shall not apply to an employee, being an assessee, who has exercised an option under sub-section (5) of section 115BAC or whose income is chargeable to tax under sub-section (1A) of section 115BAC.”;
(c) in rule 5, in sub-rule (1) -
(d) after rule 21AG, the following rule shall be inserted, namely:- “21AGA. Exercise of option under sub-section (6) of section 115BAC.-(1) The option to be exercised in accordance with the provisions of sub-section (6) of section 115BAC by a person, being an individual or Hindu undivided family, or an association of persons (other than a co-operative society) or a body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2024, shall be, - (a) in Form No. 10-IEA on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for such assessment year, in the case of a person having income from business or profession; (b) in the return of income to be furnished under sub-section (1) of section 139 for such assessment year, in the case of a person not having income from business or profession as referred to in clause (i). (2) The withdrawal of option under the proviso to sub-section (6) of section 115BAC shall also be in Form No. 10-IEA. (3) Form No. 10-IEA shall be furnished electronically either under digital signature or electronic verification code. (4) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall, - (a) specify the procedure for furnishing of Form No. 10-IEA; (b) specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (3), for verification of the person furnishing the said Form; and (c) be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished. Explanation.—For the purposes of this rule "electronic verification code" means a code generated for the purpose of electronic verification of the person furnishing the Form as per the data structure and standards specified by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) as the case may be.”
(e) In the principal rules, in the Appendix, after Form No. 10IE, the following form shall be inserted, namely:- “FORM No. 10-IEA [See rule 21AGA] Application for exercise of option under clause (i) of sub-section (6) of section 115BAC or withdrawal of option under the proviso to sub-section (6) of section 115BAC of the Income-tax Act, 1961 To, The Assessing Officer …………….. ……….........
| Sl.No. | |||
|---|---|---|---|
| 1. | Name | : | |
| 2. | PAN | : | |
| 3. | Status of the person referred to in sub-section(1A) of section 115BAC | : | |
| 4. | Assessment year for which the form is being furnished | : | yyyy - yy |
| 5. | Whether opting out of or re-entering the regime provided under sub-section (1A) of section 115BAC | : | Opting out/ Re-entering |
| 6. | If re-entering as per inputs in 5, provide details of the option exercised earlier. | Date of exercising the option for opting out under clause (i) of sub-section (6) of section 115BAC in Form No. 10IEA | First assessment year for which the option was exercised. Dd/mm/yyyy 20…. |
| 7. | Whether having any Unit in International Financial Services Centre (IFSC), as referred to in sub-section (1A) of section 80LA ( if re-entering as per row 5) | : | Yes/No |
| 8. | If yes in 7, provide details regarding Units in IFSC: (Add number of columns depending on number of Units) | Unit 1 | Unit 2 Unit 3 |
| (1) | (2) (3) (4) | ||
| Name of Unit | |||
| Address of Unit | |||
| Nature of activities undertaken in Unit |
