In exercise of the powers conferred by section 295 read with sub-section (3)
of section 199 and sub-section (4) of section 206C of 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 :-
*1.* (1) These rules may be called the Income-tax (Sixth Amendment) Rules,
2009.
(2) They shall come into force with effect from the 1st day of April, 2009.
*2.* In the Income-tax Rules, 1962,-
(A) after rule 37B, the following rule shall be inserted, namely:
*37BA. (1) Credit for tax deducted at source for the purposes of section 199
*-Credit for tax deducted at source and paid to the Central Government in
accordance with the provisions of Chapter XVII, shall be given to the person
to whom payment has been made or credit has been given (hereinafter referred
to as deductee) on the basis of information relating to deduction of tax
furnished by the deductor to the income-tax authority or the person
authorised by such authority.
(2) (i) If the income on which tax has been deducted at source is assessable
in the hands of a person other than the deductee, credit for tax deducted at
source shall be given to the other person in cases where–
(a) the income of the deductee is included in the total income of another
person under the provisions of section 60, section 61, section 64, section
93 or section 94;
(b) the income of a deductee being an association of persons or a trust is
assessable in the hands of members of the association of persons, or in the
hands of trustees, as the case may be;
(c) the income from an asset held in the name of a deductee, being a partner
of a firm or a karta of a Hindu undivided family, is assessable as the
income of the firm, or Hindu undivided family, as the case may be;
(d) the income from a property, deposit, security, unit or share held in the
name of a deductee is owned jointly by the deductee and other persons and
the income is assessable in their hands in the same proportion as their
ownership of the asset:
*Provided that *the deductee files a declaration with the deductor and the
deductor reports the tax deduction in the name of the other person in the
information relating to deduction of tax referred to in sub-rule (1).
(ii) The declaration filed by the deductee under clause (i) shall contain
the name, address, permanent account number of the person to whom credit is
to be given, payment or credit in relation to which credit is to be given
and reasons for giving credit to such person.
(iii) The deductor shall issue the certificate for decuction of tax at
source in the name of the person in whose name credit is shown in the
information relating to deduction of tax referred to in sub-rule (1) and
shall keep the declaration in his safe custody.
(3) (i) Credit for tax deducted at source and paid to the Central
Government, shall be given for the assessment year for which such income is
assessable.
(ii) Where tax has been deducted at source and paid to the Central
Government and the income is assessable over a number of years, credit for
tax deducted at source shall be allowed across those years in the same
proportion in which the income is assessable to tax.
(4) Credit for tax deducted at source and paid to the account of the Central
Government shall be granted on the basis of -
(i) the information relating to deduction of tax furnished by the deductor
to the income-tax authority or the person authorized by such authority: and
(ii) the information in the return of income in respect of the claim for the
credit,
subject to verification in accordance with the risk management strategy
formulated by the Board from time to time.”
(B) after rule 37H, the following rule shall be inserted, namely:–
*37-I.(1) Credit for tax collected a source for the purposes of sub-section
(4) of section 206C.-*Credit for tax collect at source and paid to the
Central Government in accordance with provisions of section 260C of the Act,
shall be given to the person form whom the tax has been collected, on the
basis of the information relating to collection of tax at source
(hereinafter referred to as the collector) to the income-tax authority or
the person authorized by such authority.
(2) (i) Where tax has been collected at source and paid to the Central
Government, credit for such tax shall be given for the assessment year for
which the income is assessable to tax.
(iii) Where tax has been collected at source and paid to the Central
Government and the lease or license is relatable to more than one year,
credit for tax collected at source shall be allowed across those years to
which the lease or license relates in the same proportion.
(3) Credit for tax collected at source and paid to the account of the
Central Government shall be granted on the basis of -
(i) the information relating to collection of tax furnished by the collector
to the income-tax authority or the person authorized by such authority; and
(ii) the information in the return of income in respect of the claim for the
credit,
subject to verification in accordance with the risk management strategy
formulated by the Board from time to time.”