The Central Board of Direct Taxes has notified Income Tax (21st Amendment) Rules, 2021 on July 29, 2021. New Rules 131 and 132 have been inserted vide 21st Amendment Rules 2021 by amending Income Tax Act, 1962:
- Rule 131 provides for omission of certain Rules and saving clause under the Act.
- Rule 132 provides for electronic furnishing of any forms, returns, statements, reports, orders etc. in two ways:
- Under digital signature in cases where, the return of income is required to be furnished under digital signature; or
- Through electronic verification code in other cases.
Further, The Principal Director General of Income-tax (Systems) or the Director General of Income tax (Systems) with the approval of Board shall be responsible for the following:
- Specify the forms, returns, statements, reports, orders, which are to be furnished electronically;
- Lay down the data structure, standards and procedure of furnishing and verification of such forms, returns, statements, reports, orders, including modification in format, if required, to make it compatible for furnishing electronically; and
- Formulation and implementation of appropriate security, archival and retrieval policies in relation to the said Forms, returns, statements, reports, orders.
*Tanvi Singh, Editorial Assistant has reported this brief.