Income-tax (Ninth Amendment) Rules, 2007

NOTIFICATION No. 238/2007, dated 30-8-2007



In exercise of the powers conferred by section 295 read with sub-section (3) of section 200 and proviso to sub-section (3) 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 (Ninth Amendment) Rules, 2007.

(2) They shall come into force with effect from the 1st day of September, 2007.

2. In the Income-tax Rules, 1962, -

(1) in the rule 31A, in sub-rule (1), for the first proviso, the following proviso shall be substituted namely:-

‘Provided that where,-

(a) the deductor is an office of Government: or

(b) the deductor is a company; or

(c) the deductor is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or

(d) the number of deductees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,

the person responsible for deducting tax at source, and the principal officer in the case of a company shall deliver or cause to be delivered such quarterly statements on computer media (3.5” 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):”;

(2) in rule 31AA, in sub-rule (1), for the first proviso, the following proviso shall be substituted namely:-

‘Provided that where,-

(a) the collector is an office of Government: or

(b) the collector is a company; or

(c) the collector is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or

(d) the number of collectees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,

the person responsible for deducting tax at source, and the principal officer in the case of a company shall deliver or cause to be delivered such quarterly statements on computer media (3.5” 1.44 MB floppy diskette or CD-ROM of 650 MB capacity):”;

[F. No. 142/26/2007-TPL]

The Income-tax (9th Amendment) Rules, 2009 [S.O. 866(E)]

Download The Notification Click Here

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
CENTRAL BOARD OF DIRECT TAXES

New Delhi, 27th March, 2009

NOTIFICATION

S.O. 866(E) - In exercise of the powers conferred by section 295 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 (9th Amendment) Rules, 2009.

(2) They shall come into force on the 1st day of April, 2009.

2. In the Income-tax Rules, 1962, -

(a) in rule 12,

(i) in sub-rule (1), for the words, figures and letters on the 1st day of April, 2008, the words, figures and letters on the 1st day of April, 2009 shall be substituted;

(ii) in sub-rule (5), for the words, figures and letters on the 1st day of April, 2007, the words, figures and letters on the 1st day of April, 2008 shall be substituted;

(b) in Appendix-II, for Form ITR-1, Form ITR-2, Form ITR-3, Form ITR-4, Form ITR-5, Form ITR-6, Form ITR-7, Form ITR-8 and ITR-V the following forms shall be substituted, namely:-

A.Y. 2009-10
Form No.

ITR 1
ITR 2
ITR 3
ITR 4
ITR 5
ITR 6
ITR 7
ITR 8
ITR V & Acknowledgement

Income Tax Audit Report - Form 3CD amended - Income-tax (Tenth Amendment) Rules, 2009

CBDT has issued notification no. 36/2009 dated 13-4-2009 [Income-tax (Tenth Amendment) Rules, 2009] to amend form 3CD (Statement of particulars required to be furnished under Section 44AB of the Income Tax Act, 1961).

Accordingly a new entry no. 17A has been inserted as:

"17A. Amount of interest inadmissible under section 23 of the Micro, Small and Medium Enterprises Development Act, 2006."

Wealth-Tax (Second Amendment) Rules, 2009 - Amendment in Rule 3A Notification No. 16/2009, dated 13-2-2009

In exercise of the powers conferred by section 46 of the Wealth-tax Act, 1957 (27 of 1957), the Central Board of Direct Taxes hereby makes the following rules further to amend the Wealth-tax Rules, 1957, namely :—

1. (1). these rules may be called the Wealth-tax (Second Amendment) Rules, 2009.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Wealth-tax Rules, 1957, in rule 3A, —

(a) in sub-rule (3), —

(i) in clause (i), for the letters, figures and word “Rs. 50 lakhs”, the letters, figures and word “Rs. 300 lakhs” shall be substituted;

(ii) in clause (ii), for the letters, figures and words “Rs. 10 lakhs” and “Rs. 50 lakhs”, the letters, figures and words “Rs. 40 lakhs” and “Rs. 300 lakhs” shall respectively be substituted;

(iii) in clause (iii), for the letters, figures and word “Rs. 10 lakhs”, the letters, figures and word “Rs. 40 lakhs” shall be substituted;

(b) for sub-rule (4), the following sub-rule shall be substituted, namely:—

“(4) Where the valuation of any asset, being building or land or any right in any building or land, referred to the District Valuation Officer, the Valuation Officer or the Assistant Valuation Officer, as the case may be, is pending with him on the 13th February, 2009, being the date of commencement of the Wealth-tax (Second Amendment) Rules, 2009, —

(i) the District Valuation Officer shall transfer the reference to the Valuation Officer, if the value of the asset as declared in the return made by the assessee under section 14 or section 15 does not exceed Rs. 300 lakhs ;

(ii) The Valuation Officer shall transfer the reference to the Assistant Valuation Officer, if the value of the asset as declared in the return made by the assessee under section 14 or section 15 does not exceed Rs. 40 lakhs.”

[F. No. 149/159/2008-TPL]

*Income-tax (Sixth Amendment) Rules, 2009-Insertion of rules 37 BA and 37-I-Rules regarding credit for TDS/TCS*

Notification No. 28/2009, dt. 16-3-2009 [F.No. 133/93/2008-TPL]

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.”

DISALLOWANCE U/S 40(a)(ia) TDS DEFAULT ALLOWED

Provision relating to section 40(a)(ia) has been amend to give us relief from minor tds deduction defaults from retrospective effect from assessment year 2005-06 means since inception of this controversial amendments.

what was the position earlier

as per section 40(a)(ia) all the expenses u/s 30-38 will be disallowed if
tds has not been deducted
tds has been deducted but has not been paid during previous year or in subsequent year in time as prescribed in section 200.
on
Interest,
commission,
brokerage,
rent,
royalty,
fees for technical/professional services payable to a resident ,
amounts payable (for carrying out any work contract)
to a resident contractor/sub-contractor

provided that
if tax has been deducted and paid in subsequent year or
deducted in previous year but paid in subsequent year after expiry of the time limit u/s 200
then expenditure will be allowed in the year of payment of tds.

what is position now after changes in budget


Tax is deductible but not deducted

No deduction in the current previous year
If tax is deducted in any subsequent year, the expenditure will be deducted in the year in which TDS will be deposited by the assessee with the Government.

Tax is deductible (and is so deducted) during the last month (i.e., in the month of March) of the previous year but it is not deposited on or before the due date of submission of return of income under section 139(1)

No deduction in the current previous year
If tax is deposited with the Government after the due date of submission of return of income, the expenditure will be deductible in that year in which tax will be deposited.

Tax is deductible (and is so deducted) during any month but other than the last month (i.e., any time before March 1) of the previous year but it is not deposited on or before March 31 of the previous year

No deduction in the current previous year
If tax is deposited with the Government after the end of the current previous year, the expenditure will be deductible in that year in which tax is deposited.
though some relief has been given that in case we pay tds on or before due date of filing of the income tax return expenditure will be allowed in the same previous year but in case of non deduction of the tds when it is deductible then expenditure will be disallowed fully.


suppose xyz ltd has paid for work of 100000 to abc ltd for some non recurring work and forget to deduct tds ,the expenses of 100000 will be disallowed to xyz ltd.if there will no further transaction between xyzltd and abc ltd ,in that case xyz ltd can not deduct tax from abc ltd hence can not claim expenditure in subsequent year also.

my point is that tds is not a source of revenue for income tax department ,they only collect it as a advance tax on behalf of the firm abc.if abc ltd has discharged his tax liability fully by paying tax
then there will be no loss of revenue to the state .these provision seems valid where the deductee is non resident and tax can not be recovered from non resident.so in the above example dis allowance of the expenditure to xyz ltd even abc ltd has discharged his tax liability fully is not justified but that is the position of law we can not do nothing in this and have to bear with these provisions .so we should be more care full in deduction of tax so that all genuine expenditure will allowed while calculating income of the previous year.