On 6th May, 2022, Ministry of Finance amended Income Tax Rules, 1962 by Income-tax Amendment (13th Amendment) Rules, 2022 which will come into force with immediate effect.
Key Features:
- For the purpose of valuation of total income Section 10 of Income Tax Act, 1961 defines those incomes that are exempted from valuation. Where any income is not included in the specified person’s [defined under Explanation of Section 10(23FE)] income, and when after any previous year if a person fails to meet any of these provisions, in order for the valuation of that incomes which has to be excluded, it will be taxed as personal income.
- In order to bind the income-tax authority and the ‘specified person’, Ministry along with the Board will issue the guidelines/notifications under Section 10 (23FE).
- For Computation of minimum investment and exempt income under Section 10 (23FE) of the Act, Rule 2DCA inserted.
- Computation is inserted in the following manner by Rule 2 for the Items under Clause (iii)-
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- A Category-I or Category-II Alternative Investment Fund regulated under SEBI- (A+C+D)/B * 100.
- A domestic company [defined under Explanation 1(c)] having minimum 75% investments in one or more of the companies or enterprises or entities- E/F * 100.
- A non-banking financial company (NBFC) [defined under Explanation 1(g)] registered as an Infrastructure Finance Company- G/H * 100.
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- A unit holder of an Alternative Investment Fund [defined under Explanation 1(a)]- I+J+K+L
- The exempt income during the relevant previous year [defined under Explanation 1(h)] under Fifth Proviso- M/O * N
- The exempt income during the relevant previous year under Sixth Proviso- P/R*Q
- By Rule 3 following modifications will be incorporated in the Rules-
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- Intimation Form [10BBB] by Pension Fund of investment under Section 10(23FE); substituted.
- Form 10BBC- Certificate of accountant in respect of compliance to the provisions by the notified Pension Fund; substituted.
- Form 10BBD- Statement of eligible investment received; inserted.