Amendment in manner of furnishing of report/information by international group vide Income-tax (9th Amendment) Rules, 2021

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The CBDT vide Notification No. 31/2021-Income-tax, dated April 5, 2021, has issued the ‘Income-tax (9th Amendment) Rules, 2021’ to further amend the Income-tax Rules, 1962 (“Income-tax Rules”), w.e.f. April 1, 2021, in a following manner:

  • The word “Commissioner”, has been substituted with the word “Director” in Rule 10DA(2) and Rule 10DA(4)(b) of the Income-tax Rules that deals with maintenance and furnishing of information and document by certain person. Further, the words “constituent entities resident in India of an international grouphas been substituted with the words, “constituent entities of an international group required to file the information and document under sub-rule (2)” under Rule 10DA(4) of the Income-tax Rules.
  • Substituted Rule 10DB(1) of the Income-tax Rules to authorise the Joint Director as the Income-tax authority under Section 286 of the Income Tax Act, 1961 (i.e., furnishing of report in respect of international group).
  • Amended Rule 10DB(6) to increase the total consolidated group revenue of the international group from INR 5500 Crore to INR 6400 Crores.
  • Omitted the words “, resident of India” in the Appendix II, in Form No. 3CEAB in the heading. Previously the heading read as “Intimation by a designated constituent entity, resident in India, of an international group, for the purposes of sub-section (4) of section 92D of the Income-tax Act, 1961”

The amended Income-tax Rules/ Form now reads as below:

Rule 10DA(2) of the Income-tax Rules:

“10DA. Maintenance and furnishing of information and document by certain person under section 92D

(2) The information and document specified under sub-rule (1) shall be furnished to the Joint Director referred to in sub-rule (1) of rule 10DB, in Form No. 3CEAA on or before the due date for furnishing the return of income as specified under sub-section (1) of section 139.”

Rule 10DA(4) of the Income-tax Rules:

“10DA. Maintenance and furnishing of information and document by certain person under section 92D

(4) Where there are more than one constituent entities of an international group required to file the information and document under sub-rule (2), the Form No. 3CEAA may be furnished by any one constituent entity, if, –

(a) the international group has designated such entity for this purpose; and

(b) the information has been conveyed in Form No. 3CEAB to the Joint Director referred to in sub-rule (1) of rule 10DB, in this behalf thirty days before the due date of furnishing the Form No. 3CEAA.”

Rule 10DB(1) of the Income-tax Rules:

“10DB Furnishing of Report in respect of an International Group

(1) The income-tax authority for the purposes of section 286 shall be the Joint Director as may be designated by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be

Rule 10DB(6) of the Income-tax Rules:

“10DB Furnishing of Report in respect of an International Group

(6) For the purposes of sub-section (7) of section 286, the total consolidated group revenue of the international group shall be six thousand four hundred crore rupees.”

Heading of Form 3CEAB in the Appendix II of the Income-tax Rules:

“Intimation by a designated constituent entity, of an international group, for the purposes of sub-section (4) of section 92D of the Income-tax Act, 1961”

Further, clarified that no person is being adversely affected by giving retrospective effect to this notification.

The Notification can be accessed at: https://www.incometaxindia.gov.in/communications/notification/notification_31_2021.pdf

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