CBDT notifies Income Tax (31st Amendment) Rules, 2021

The Central Board of Direct Taxes notified the Income Tax (31st Amendment) Rules, 2021 which seeks to further amend Income Tax Rules, 1962. Key changes brought by the amendment are as follows:

 

  • The 31st Amendment Rules, 2021 has introduced new Rules 11UE and 11UF, after Rule UD for provisions relating to ‘Indirect transfer prior to 28.05.2012 of assets situated in India’ along with Form 1 or 2 or 3.
  • Rule 11UE – Specified conditions under Explanation to fifth and sixth proviso to Explanation 5 to clause (i) of sub-section (1) of section 9 which states that the declarant shall furnish an undertaking in Form No. 1 and shall append the undertakings from all the interested parties in Part M of the Annexure to the undertaking in Form No. 1 and furnish all the attachments required to be furnished under any clause or Part thereof.
  • Rule 11UFManner of furnishing undertaking which states that the undertaking in Form No. 1 under sub-rule (1) of rule 11UE shall be submitted by the declarant to the jurisdictional Principal Commissioner or Commissioner within 45 days from the date of commencement of the Income-tax (31st Amendment) Rules, 2021.

After the undertaking in Form No. 1 under sub-rule (1) of rule 11UE is furnished by the declarant, the jurisdictional Principal Commissioner or Commissioner shall, within a period of 15 days from the date of receipt of the said undertaking, grant a certificate in Form No. 2 accepting such undertaking; or pass an order rejecting such undertaking, where the undertaking in Form No. 1 is incorrect or incomplete or any part thereof or any of the attachments or evidences or the indemnity bonds provided therein or any of the authorisations, as referred to in sub-rule (3) of rule 11UE is incorrect or incomplete or not furnished, after giving an opportunity of being heard to the declarant.

  • The Amendment provides revised Form No. 1 for filing undertaking declaring that specified orders have been passed or made in respect of income accruing or arising through or from the transfer of an asset or a capital asset situated in India in consequence of the transfer of a share or interest in a company or entity registered or incorporated outside India made before the May 28, 2012.


*Tanvi Singh, Editorial Assistant has reported this brief.

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