Income Tax Rules

Rule-2B, Income-tax Rules

• 2B. (1) The amount exempted under clause (5) of section 10 in respect of the value of travel concession or assistance received by or due to the individual from his employer or former employer for himself and his family, in connection with his proceeding,—
• (a) Â on leave to any place in India;
• (b) Â to any place in India after retirement from service or after the termination of his service,
• [(i) Â where the journey is performed on or after the 1st day of October, 1997, by air, an amount not exceeding the air economy fare of the national carrier by the shortest route to the place of destination;
• (ii) Â where places of origin of journey and destination are connected by rail and the journey is performed on or after the 1st day of October, 1997, by any mode of transport other than by air, an amount not exceeding the air-conditioned first class rail fare by the shortest route to the place of destination; and
• (iii)  where the places of origin of journey and destination or part thereof are not connected by rail and the journey is performed on or after the 1st day of October, 1997, between such places, the amount eligible for exemption shall be :—
• (A) Â where a recognised public transport system exists, an amount not exceeding the 1st class or deluxe class fare, as the case may be, on such transport by the shortest route to the place of destination; and
• (B) Â where no recognised public transport system exists, an amount equivalent to the air-conditioned first class rail fare, for the distance of the journey by the shortest route, as if the journey had been performed by rail.]
• (2) The exemption referred to in sub-rule (1) shall be available to an individual in respect of two journeys performed in a block of four calendar years commencing from the calendar year 1986 :
• [Provided that nothing contained in this sub-rule shall apply to the benefit already availed of by the assessee in respect of any number of journeys performed before the 1st day of April, 1989 except to the extent that the journey or journeys so performed shall be taken into account for computing the limit of two journeys specified in this sub-rule.]
• (3) Where such travel concession or assistance is not availed of by the individual during any such block of four calendar years, an amount in respect of the value of the travel concession or assistance, if any, first availed of by the individual during first calendar year of the immediately succeeding block of four calendar years shall be eligible for exemption.
• Explanation : The amount in respect of the value of the travel concession or assistance referred to in this sub-rule shall not be taken into account in deter-mining the eligibility of the amount in respect of the value of the travel con-cession or assistance in relation to the number of journeys under sub-rule (2).]
• [(4) The exemption referred to in sub-rule (1) shall not be available to more than two surviving children of an individual after 1st October, 1998 :
• Provided that this sub-rule shall not apply in respect of children born before 1st October, 1998, and also in case of multiple births after one child.]

Rule-2BA, Income-tax Rules

• 2BA. The amount received by an employee of—
• (i) Â a public sector company; or
• (ii) Â any other company; or
• (iii) Â an authority established under a Central, State or Provincial Act; or
• (iv) Â a local [authority; or]
• [(v) Â a co-operative society; or
• (vi) Â a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 (3 of 1956); or
• (vii) Â an Indian Institute of Technology within the meaning of clause (g) of section 3 of the Institutes of Technology Act, 1961 (59 of 1961); or
• [(viia) Â an institution, having importance throughout India or in any State or States, as the Central Government may, by notification in the Official Gazette, specify in this behalf; or]
• (viii)  such institute of management as the Central Government may, by notification in the Official Gazette, specify in this behalf,] at the time of his voluntary retirement [or voluntary separation] shall be exempt under clause (10C) of section 10 only if the scheme of voluntary retirement framed by the aforesaid company or authority [or co-operative society or University or institute], as the case may be [or if the scheme of voluntary separation framed by a public sector company,] is in accordance with the following requirements, namely :—
• (i) Â it applies to an employee [***] who has completed 10 years of service or completed 40 years of age;
• [(ii) Â it applies to all employees (by whatever name called) including workers and executives of a company or of an authority or of a co-operative society, as the case may be, excepting directors of a company or of a co-operative society;]
• (iii) Â the scheme of voluntary retirement [or voluntary separation] has been drawn to result in overall reduction in the existing strength of the employees [***];
• (iv) Â the vacancy caused by the voluntary retirement [or voluntary separation] is not to be filled up;
• (v) Â the retiring employee of a company shall not be employed in another company or concern belonging to the same management;
• (vi)  the amount receivable on account of voluntary retirement [or voluntary separation] of the employee does not exceed the amount equivalent to [three months’] salary for each completed year of service or salary at the time of retirement multiplied by the balance months of service left before the date of his retirement on superannuation :

Rule-2BBA, Income-tax Rules

[Circumstances and conditions for the purposes of clause (19) of section 10.

• 2BBA. (1) For the purposes of clause (19) of section 10, the circumstances of death of a member of the armed forces (including para-military forces) of the Union in the course of operational duties shall be the following, namely :—
• (i) Â acts of violence or kidnapping or attacks by terrorists or anti-social elements;
• (ii) Â action against extremists or anti-social elements;
• (iii) Â enemy action in international war;
• (iv) Â action during deployment with a peace keeping mission abroad;
• (v) Â border skirmishes;
• (vi) Â laying or clearance of mines including enemy mines as also mine sweeping operations;
• (vii) Â explosions of mines while laying operationally oriented mine-fields or lifting or negotiation mine-fields laid by the enemy or own forces in operational areas near international borders or the line of control;
• (viii) Â in the aid of civil power in dealing with natural calamities and rescue operations;
• (ix) Â in the aid of civil power in quelling agitation or riots or revolts by demonstrators.
• (2) It shall be certified by the Head of the Department where the deceased member of the armed forces (including para-military forces) last served, or the service headquarters, as the case may be, that the death of such member has occurred in the course of operational duties in circumstances mentioned in sub-rule (1).]

Rule-2C, Income-tax Rules

• 2C. (1) The prescribed authority under sub-clause (iv), sub-clause (v), sub-clause (vi) and sub-clause (via) of clause (23C) of section 10 shall be the Principal Commissioner or Commissioner whom the Central Board of Direct Taxes may authorise to act in this behalf.
• (2) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council.
• (2) An application for grant of approval for the exemption under sub-clause (iv), sub-clause (v), sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 to any fund or institution, any trust (including any other legal obligation) or institution, any university or other educational institution and any hospital or other institution (hereinafter referred to as 'the applicant') shall be made in Form No. 56 and shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the assessee.
• (3) Form No. 56 shall be furnished electronically, —
• (i) Â under digital signature, if the return of income is required to be furnished under digital signature; or
• (ii) Â through electronic verification code in a case not covered under clause (i).
• (4) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall lay down the data structure, standards and procedure of furnishing and verification of Form No. 56 and shall be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the said form so furnished.]

Rule-2D, Income-tax Rules

• 2D. (1) For the purposes of clause (23F) of section 10, the prescribed authority shall be the Director of Income-tax (Exemptions) having jurisdiction over the venture capital fund or the venture capital company who makes application for approval under sub-rule (2).
• (2) An application for approval shall be made in Form No. 56A by a venture capital fund or a venture capital company to the Director of Income-tax (Exemptions) referred to in sub-rule (1).
• (3) Every application under sub-rule (2) may be made in any previous year in which any income by way of dividend or long-term capital gains of a venture capital fund or a venture capital company from investments made by way of equity shares in a venture capital undertaking shall not be included in computing the total income of such venture capital fund or venture capital company.
• (4) Every application for approval under sub-rule (2) shall be accompanied by the following documents, namely :—
• (a) Â a copy of trust deed or certificate of incorporation under the Companies Act, 1956 (1 of 1956);
• (b) Â balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made;
• (c) Â Forms 56B and 56C duly filled in and signed by the applicant; and
• (d) Â a copy of the certificate of registration issued by the Securities and Exchange Board of India.
• (5) The Director of Income-tax (Exemptions) shall approve the venture capital fund or the venture capital company, as the case may be, subject to the following conditions, namely :—
• (a) Â the venture capital fund or the venture capital company, as the case may be, is registered with the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);
• (b) Â a venture capital fund or a venture capital company, as the case may be, shall not invest more than [twenty] per cent of its total monies raised or total paid-up share capital in one venture capital undertaking;
• (c) Â a venture capital fund or a venture capital company, as the case may be, shall not make investment of more than forty per cent in the equity capital of one venture capital undertaking;
• (d) Â every venture capital fund and venture capital company, shall maintain books of account and get such books audited by an accountant, as defined in Explanation to sub-section (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Director of Income-tax (Exemptions) before the due date of filing of the return under sub-section (1) of section 139.
• (6) The Director of Income-tax (Exemptions) shall pass an order in writing granting approval or refusing approval to the venture capital fund or venture capital company, as the case may be :
• Provided that the Director of Income-tax (Exemptions) shall not refuse the approval except in concurrence with the Director-General of Income-tax (Exemptions):
• Provided further that every venture capital fund or venture capital company, as the case may be, shall be given an opportunity of being heard before passing an order under this rule.
• (7) The Director of Income-tax (Exemptions) shall withdraw the approval granted under sub-rule (6) in the following circumstances, namely :—
• (a)  if the venture capital fund or the venture capital company—
• (i) Â fails to make investments in the manner specified in sub-rule (5);
• (ii) Â invests more than [twenty] per cent of the monies raised by a venture capital fund or [twenty] per cent of paid-up share capital of the venture capital company, as the case may be, in one venture capital undertaking;
• (iii) Â makes an investment of more than forty per cent in the equity capital in one venture capital undertaking;
• (iv) Â fails to maintain books of account and get such accounts audited by an accountant or fails to file the audit report required in clause (f) of sub-rule (5);
• (v) Â violates the provisions of the Act or rules made thereunder;
• (b) Â if the certificate of registration granted under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), to a venture capital fund or a venture capital company is suspended or cancelled by the Securities and Exchange Board of India.]

Rule-2DA, Income-tax Rules

[Guidelines for approval under clause (23FA) of section 10.

• 2DA. (1) An application for approval shall be made in Form No. 56AA by a venture capital fund or a venture capital company to the Central Government.
• (2) Every application under sub-rule (1) may be made in any previous year in which any income by way of dividend or long-term capital gains of a venture capital fund or a venture capital company from investments made by way of equity shares in a venture capital undertaking shall not be included in computing the total income of such venture capital fund or venture capital company.
• (3) Every application for approval under sub-rule (1) shall be accompanied by the following documents, namely :—
• (a) Â a copy of the trust deed registered under the provision of the Registration Act, 1908 or a certificate of incorporation under the Companies Act, 1956 (1 of 1956);
• (b) Â balance sheets and profit and loss accounts for three previous years immediately preceding the previous year in which the application is made;
• (c) Â Forms 56BA and 56CA duly filled in and signed by the applicant; and
• (d) Â a copy of the certificate of registration issued by the Securities and Exchange Board of India under sub-section (1) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992).
• (4) The Central Government may approve the venture capital fund or the venture capital company, as the case may be, subject to the following conditions, namely :—
• (a) Â a venture capital fund or a venture capital company, as the case may be, is registered with the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992);
• (b) Â a venture capital fund or a venture capital company, as the case may be, shall not invest more than twenty-five per cent of its total monies raised or total paid-up share capital in one venture capital undertaking;
• (c) Â every venture capital fund and venture capital company, shall maintain books of account and get such books audited by an accountant, as defined in Explanation to sub-section (2) of section 288 of the Act and, furnish the report of such audit duly signed and verified by such accountant to the Central Government before the due date of filing of the return under sub-section (1) of section 139 of the Act.
• (5) The Central Government may pass an order in writing granting approval or refusing approval to the venture capital fund or venture capital company, as the case may be :
• Provided that no order refusing the approval shall be passed unless an opportunity of being heard has been given to the venture capital fund or the venture capital company.
• (6) The approval of the Central Government under sub-rule (5) shall at any one time have effect for such assessment year or years, not exceeding three assessment years.
• (7) The Central Government shall withdraw the approval granted under sub-rule (5) in the following circumstances :—
• (a)  if the venture capital fund or the venture capital company—
• (i) Â fails to make investments in the manner specified in sub-rule (4);
• (ii) Â invests more than twenty-five per cent of the monies raised by a venture capital fund or twenty-five per cent of paid-up share capital of the venture capital company, as the case may be, in one venture capital undertaking;
• (iii) Â fails to maintain books of account and get such accounts audited by an accountant or fails to file the audit report required in clause (d) of sub-rule (4);
• (iv) Â violates the provisions of the Act or rules made thereunder;
• (b) Â if the certificate of registration granted under section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), to a venture capital fund or a venture capital company is suspended or cancelled by the Securities and Exchange Board of India.]

Rule-2E, Income-tax Rules

• 2E. (1) An application for approval shall be made on or after the 1st day of June, 1998 in Form No. 56E by an enterprise to the Central Government.
• (2) Every application for approval made under sub-rule (1) shall be accompanied by the following documents, namely :—
• (a) Â a copy of certificate of incorporation under the Companies Act, 1956 (1 of 1956) or a copy of the document evidencing the constitution of the enterprise and its legal status;
• (b) Â a copy of the project report or agreement in respect of the eligible business duly approved by the Central Government or any State Government or any local authority or any other statutory body, as the case may be;
• (c) Â balance sheets and profit and loss accounts for the three previous years immediately preceding the previous year in which the application has been made and also for the relevant part of the previous year in which the application has been made :
• Provided that an application made under sub-rule (1) may be accompanied by the balance sheets and profit and loss accounts for less than three previous years where an enterprise has been formed at any time during the three previous years immediately preceding the previous year in which the application has been made and also for the relevant part of the previous year in which the application has been made.
• (3) The Central Government shall approve an enterprise for the purposes of clause (23G) of section 10, if such enterprise is wholly engaged in the eligible business.
• (4) The Central Government may, before approving an enterprise, call for such documents (including audited annual accounts) or information from the enterprise, as it thinks necessary in order to satisfy itself that such enterprise is wholly engaged in the eligible business and that Government may also make such enquiries as it may deem necessary in this behalf.
• (5) The Central Government shall pass an order in writing while granting approval or refusing approval to the enterprise :
• (6) Every enterprise approved under sub-rule (5) shall maintain books of account and get such books audited by an accountant, as defined in Explanation to sub-section (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Chief Commissioner of Income-tax under whose jurisdiction it is assessed, before the due date of filing of the return under sub-section (1) of section 139.
• (7) Where the enterprise,—
• (a) Â ceases to carry on the eligible business; or
• (b) Â fails to maintain books of account and get such accounts audited by an accountant as required by sub-rule (6); or
• (c) Â fails to furnish the audit report as required by sub-rule (6),
• the Chief Commissioner of Income-tax shall, after making such enquiries as he may deem necessary, furnish a report on the circumstances referred to in clauses (a), (b) and (c) to the Central Government, within six months from the due date of filing of return under sub-section (1) of section 139.
• (8) The Central Government, on being satisfied that any or all of the circumstances referred to in clauses (a), (b) and (c) of sub-rule (7) exist, shall withdraw the approval granted under sub-rule (5) :
• Provided that no order withdrawing the approval shall be passed unless an opportunity of being heard has been given to the enterprise.
• Explanation : For the purposes of this rule,—
• (a)  the expression “enterprise” means any enterprise wholly engaged in the eligible business;
• (b)  the expression “eligible business” means the business referred to in sub-section (4) of section 80-IA or a housing project referred to in sub-section (10) of section 80-IB and which fulfils the conditions specified in the said sub-sections or a hotel project or a hospital project as defined in clauses (g) and (h) of Explanation 1 to clause (23G) of section 10.]

Rule-2F, Income-tax Rules

• 2F. [ (1) The Infrastructure Debt Fund shall be set up as a Non-Banking Financial Company conforming to and satisfying the conditions provided by the Reserve Bank of India in the Infrastructure -Debt Fund – Non-Banking Financial Companies (Reserve Bank) Directions, 2011, vide Notification No.DNBS.233/CGM (US)-2011, dated the 21st November, 2011 as amended vide Notification No.DNBR.020/CGM (CDS)-2015, dated the 14th May, 2015.]
• [ (2) The funds of the Infrastructure Debt Fund shall be invested only in Post Commencement Operation Date Infrastructure Projects which have completed at least one year of satisfactory commercial operations that are—
• (i) Â Public Private Partnership Projects and are a party to tripartite agreement with the concessionaire and the project authority for ensuring compulsory buy out and termination payment;
• (ii) Â Non-Public Private Partnership Projects and Public Private Partnership Projects without a project authority, in sectors where there is no project authority.]
• (3) The Infrastructure Debt Fund shall issue rupee denominated bonds or foreign currency bonds in accordance with the directions of Reserve Bank of India (RBI) and the relevant regulations under the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000, as amended from time to time.
• (4) The terms and conditions of any bond issued by the Infrastructure Debt Fund shall be in accordance with the said directions of the Reserve Bank of India and the regulations referred to in sub-rule (3).
• (5) In case of an investor in the aforesaid bond being a non-resident, the original or initial maturity of bond, at time of first investment by such non-resident investor, shall not be less than a period of five years :
• (6) The investment made by the Infrastructure Debt Fund in an individual project or project belonging to a group at any time, shall not exceed twenty per cent, of the corpus of the fund.
• (7) No investment shall be made by the Infrastructure Debt Fund in any project where its sponsor or the associate enterprise or the group of such sponsor has a substantial interest.
• (8) The Infrastructure Debt Fund shall file its return of income as required by sub-section (4C) of section 139 on or before the due date.
• (9) In case the Infrastructure Debt Fund does not fulfil any of the conditions provided in this rule or directions of the Reserve Bank of India, all provisions of the Act shall apply as if it is not an Infrastructure Debt Fund referred to in clause (47) of section 10 of the Act.
• Explanation.—For the purpose of this rule,—
• (i)  “associate enterprise” shall have the same meaning as assigned to it in section 92A of the Act;
• (ii)  “concern” shall have the same meaning as in clause (a) of Explanation 3 of *sub-section (22) of section 2 of the Act;
• (iii)  “concessionaire”, “tripartite agreement” and “project authority” respectively shall have the same meaning as assigned to them in the Infrastructure Debt Fund - Non-Banking Financial Companies (Reserve Bank) Directions, 2011;
• (iv)  “corpus” means the total funds of the Infrastructure Debt Fund raised for the purpose of investment;
• (v)  “group” means a group as defined in clause (mm) of section 2†of Securities and Exchange Board of India (Mutual Funds) Regulations, 1996;
• (vii)  “relative”, in relation to an individual, means— (a)  spouse of the individual; (b)  brother or sister of the individual; (c)  brother or sister of the spouse of the individual; (d)  brother or sister of either of the parents of the individual; (e)  any lineal ascendant or descendant of the individual; (f)  any lineal ascendant or descendant of the spouse of the individual; (g)  spouse of the persons referred to in sub-clauses (b) to (f); or (h)  any lineal descendant of a brother or sister of either the individual or of the spouse of the individual;
• (viii)  “sponsor” means a non-banking financial company, or a bank which is allowed to act as sponsor of Infrastructure Debt Fund in accordance with the directions of Reserve Bank of India. ]

Rule-3, Income-tax Rules

• 3. For the purpose of computing the income chargeable under the head “Salaries”, the value of perquisites provided by the employer directly or indirectly to the assessee (hereinafter referred to as employee) or to any member of his household by reason of his employment shall be determined in accordance with the following sub-rules, namely:—
• (1) The value of residential accommodation provided by the employer during the previous year shall be determined on the basis provided in the Table below (See page 1.39) :

TABLE I

Sl. No.
Circumstances
Where accommodation is unfurnished
Where accommodation is furnished
(1)
(2)
(3)
(4)
1
Where the accommodation is provided by the Central Government or any State Government to the employees either holding office or post in connection with the affairs of the Union or of such State.
License fee determined by the Central Government or any State Government in respect of accommodation in accordance with the rules framed by such Government as reduced by the rent actually paid by the employee.
The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment) or if such furniture is hired from a third party, the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year.
2
Where the accommodation is provided by any other employer and—Â
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(a) where the accommodation is owned by the employer, or
(i) 15% of salary in cities having population exceeding 25 lakhs as per 2001 census; (ii) 10% of salary in cities having population exceeding 10 lakhs but not exceeding 25 lakhs as per 2001 census; (iii) 7.5% of salary in other areas, in respect of the period during which the said accommodation was occupied by the employee during the previous year as reduced by the rent, if any, actually paid by the employee.
The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year.
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(b) where the accommodation is taken on lease or rent by the employer.
Actual amount of lease rental paid or payable by the employer or 15% of salary whichever is lower as reduced by the rent, if any, actually paid by the employee.
The value of perquisite as determined under column (3) and increased by 10% per annum of the cost of furniture (including television sets, radio sets, refrigerators, other household appliances, air-conditioning plant or equipment or other similar appliances or gadgets) or if such furniture is hired from a third party, by the actual hire charges payable for the same as reduced by any charges paid or payable for the same by the employee during the previous year.
3
 Where the accommodation is provided by the employer specified in serial number (1) or (2) in a hotel (except where the employee is provided such accommodation for a period not exceeding in aggregate fifteen days on his transfer from one place to another).
Not applicable
24% of salary paid or payable for the previous year or the actual charges paid or payable to such hotel, which is lower, for the period during which such accommodation is provided as reduced by the rent, if any, actually paid or payable by the employee:
• Provided that nothing contained in this sub-rule shall apply to any accommodation provided to an employee working at a mining site or an on-shore oil exploration site or a project execution site, or a dam site or a power generation site or an off-shore site— (i)  which, being of a temporary nature and having plinth area not exceeding 800 square feet, is located not less than eight kilometres away from the local limits of any municipality or a cantonment board; or (ii)  which is located in a remote area:
• Provided further that where on account of his transfer from one place to another, the employee is provided with accommodation at the new place of posting while retaining the accommodation at the other place, the value of perquisite shall be determined with reference to only one such accommodation which has the lower value with reference to the Table above for a period not exceeding 90 days and thereafter the value of perquisite shall be charged for both such accommodations in accordance with the Table. Explanation.—For the purposes of this sub-rule, where the accommodation is provided by the Central Government or any State Government to an employee who is serving on deputation with any body or undertaking under the control of such Government,— (i)  the employer of such an employee shall be deemed to be that body or undertaking where the employee is serving on deputation; and (ii)  the value of perquisite of such an accommodation shall be the amount calculated in accordance with Sl. No. (2)(a) of Table I, as if the accommodation is owned by the employer. (2)(A) The value of perquisite by way of use of motor car to an employee by an employer shall be determined in accordance with the following Table, namely:—

TABLE II

VALUE OF PERQUISITE PER CALENDAR MONTH

Sl. No.
Circumstances
Where cubic capacity of engine does not exceed 1.6 litres
Where cubic capacity of engine exceeds 1.6 litres
(1)
(2)
(3)
(4)
1
Where the motor car is owned or hired by the employer and—
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(a) is used wholly and exclusively in the performance of his official duties;
No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.
No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.
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(b) is used exclusively for the private or personal purposes of the employee or any member of his household and the running and maintenance expenses are met or reimbursed by the employer;
Actual amount of expenditure incurred by the employer on the running and maintenance of motor car during the relevant previous year including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by any amount charged from the employee for such use.
Actual amount of expenditure incurred by the employer on the running and maintenance of motor car during the relevant previous year including remuneration, if any, paid by the employer to the chauffeur as increased by the amount representing normal wear and tear of the motor car and as reduced by any amount charged from the employee for such use.
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(c) is used partly in the performance of duties and partly for private or personal purposes of his own or any member of his household and—
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(i) the expenses on maintenance and running are met or reimbursed by the employer;
Rs. 1,800 (plus Rs. 900, if chauffeur is also provided to run the motor car)
Rs. 2,400 (plus Rs. 900, if chauffeur is also provided to run the motor car)
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(ii) the expenses on running and maintenance for private or personal use are fully met by the assessee.
Rs. 600 (plus Rs. 900, if chauffeur is also provided by the employer to run the motor car)
Rs. 900 (plus Rs. 900, if chauffeur is also provided to run the motor car)
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(2) Where the employee owns a motor car but the actual running and maintenance charges (including remuneration of the chauffeur, if any) are met or reimbursed to him by the employer and
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(i)Â such reimbursement is for the use of the vehicle wholly and exclusively for official purposes;
No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.
No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.
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(ii)Â such reimbursement is for the use of the vehicle partly for official purposes and partly for personal or private purposes of the employee or any member of his household.
Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above.
Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount specified in Sl. No. (1)(c)(i) above.
3
 Where the employee owns any other automotive conveyance but the actual running and maintenance charges are met or reimbursed to him by the employer and—
Â
Â
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(i)Â such reimbursement is for the use of the vehicle wholly and exclusively for official purposes;
No value: Provided that the documents specified in clause (B) of this sub-rule are maintained by the employer.
Not applicable
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(ii)Â such reimbursement is for the use of vehicle partly for official purposes and partly for personal or private purposes of the employee.
Subject to the provisions of clause (B) of this sub-rule, the actual amount of expenditure incurred by the employer as reduced by the amount of Rs. 900.
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• (3) The value of benefit to the employee or any member of his household resulting from the provision by the employer of services of a sweeper, a gardener, a watchman or a personal attendant, shall be the actual cost to the employer. The actual cost in such a case shall be the total amount of salary paid or payable by the employer or any other person on his behalf for such services as reduced by any amount paid by the employee for such services.
• (4) The value of the benefit to the employee resulting from the supply of gas, electric energy or water for his household consumption shall be determined as the sum equal to the amount paid on that account by the employer to the agency supplying the gas, electric energy or water. Where such supply is made from resources owned by the employer, without purchasing them from any other outside agency, the value of perquisite would be the manufacturing cost per unit incurred by the employer. Where the employee is paying any amount in respect of such services, the amount so paid shall be deducted from the value so arrived at.
• (5) The value of benefit to the employee resulting from the provision of free or concessional educational facilities for any member of his household shall be determined as the sum equal to the amount of expenditure incurred by the employer in that behalf or where the educational institution is itself maintained and owned by the employer or where free educational facilities for such member of employees’ household are allowed in any other educational institution by reason of his being in employment of that employer, the value of the perquisite to the employee shall be determined with reference to the cost of such education in a similar institution in or near the locality. Where any amount is paid or recovered from the employee on that account, the value of benefit shall be reduced by the amount so paid or recovered :
• Provided that where the educational institution itself is maintained and owned by the employer and free educational facilities are provided to the children of the employee or where such free educational facilities are provided in any institution by reason of his being in employment of that employer, nothing contained in this sub-rule shall apply if the cost of such education or the value of such benefit per child does not exceed one thousand rupees per month.
• (6) The value of any benefit or amenity resulting from the provision by an employer who is engaged in the carriage of passengers or goods, to any employee or to any member of his household for personal or private journey free of cost or at concessional fare, in any conveyance owned, leased or made available by any other arrangement by such employer for the purpose of transport of passengers or goods shall be taken to be the value at which such benefit or amenity is offered by such employer to the public as reduced by the amount, if any, paid by or recovered from the employee for such benefit or amenity :
• (7) In terms of provisions contained in sub-clause (viii) of clause (2) of section 17, the following other benefits or amenities and value thereof shall be determined in the manner provided hereunder: (i)  The value of the benefit to the assessee resulting from the provision of interest-free or concessional loan for any purpose made available to the employee or any member of his household during the relevant previous year by the employer or any person on his behalf shall be determined as the sum equal to the interest computed at the rate charged per annum by the State Bank of India, constituted under the State Bank of India Act, 1955 (23 of 1955), as on the 1st day of the relevant previous year in respect of loans for the same purpose advanced by it on the maximum outstanding monthly balance as reduced by the interest, if any, actually paid by him or any such member of his household:  Provided that no value would be charged if such loans are made available for medical treatment in respect of diseases specified in rule 3A of these Rules or where the amount of loans are petty not exceeding in the aggregate twenty thousand rupees:  Provided further that where the benefit relates to the loans made available for medical treatment referred to above, the exemption so provided shall not apply to so much of the loan as has been reimbursed to the employee under any medical insurance scheme. (ii)  The value of travelling, touring, accommodation and any other expenses paid for or borne or reimbursed by the employer for any holiday availed of by the employee or any member of his household, other than concession or assistance referred to in rule 2B of these rules, shall be determined as the sum equal to the amount of the expenditure incurred by such employer in that behalf. Where such facility is maintained by the employer, and is not available uniformly to all employees, the value of benefit shall be taken to be the value at which such facilities are offered by other agencies to the public. Where the employee is on official tour and the expenses are incurred in respect of any member of his household accompanying him, the amount of expenditure so incurred shall also be a fringe benefit or amenity:  Provided that where any official tour is extended as a vacation, the value of such fringe benefit shall be limited to the expenses incurred in relation to such extended period of stay or vacation. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity. (iii)  The value of free food and non-alcoholic beverages provided by the employer to an employee shall be the amount of expenditure incurred by such employer. The amount so determined shall be reduced by the amount, if any, paid or recovered from the employee for such benefit or amenity:  Provided that nothing contained in this clause shall apply to free food and non-alcoholic beverages provided by such employer during working hours at office or business premises or through paid vouchers which are not transferable and usable only at eating joints, to the extent the value thereof in either case does not exceed fifty rupees per meal or to tea or snacks provided during working hours or to free food and non-alcoholic beverages during working hours provided in a remote area or an off-shore installation. (iv)  The value of any gift, or voucher, or token in lieu of which such gift may be received by the employee or by member of his household on ceremonial occasions or otherwise from the employer shall be determined as the sum equal to the amount of such gift:  Provided that where the value of such gift, voucher or token, as the case may be, is below five thousand rupees in the aggregate during the previous year, the value of perquisite shall be taken as “nil”. (v)  The amount of expenses including membership fees and annual fees incurred by the employee or any member of his household, which is charged to a credit card (including any add-on-card) provided by the employer, or otherwise, paid for or reimbursed by such employer shall be taken to be the value of perquisite chargeable to tax as reduced by the amount, if any paid or recovered from the employee for such benefit or amenity:  Provided that there shall be no value of such benefit where expenses are incurred wholly and exclusively for official purposes and the following conditions are fulfilled:— (a)  complete details in respect of such expenditure are maintained by the employer which may, inter alia, include the date of expenditure and the nature of expenditure; (b)  the employer gives a certificate for such expenditure to the effect that the same was incurred wholly and exclusively for the performance of official duties. (vi)  (A) The value of benefit to the employee resulting from the payment or reimbursement by the employer of any expenditure incurred (including the amount of annual or periodical fee) in a club by him or by a member of his household shall be determined to be the actual amount of expenditure incurred or reimbursed by such employer on that account. The amount so determined shall be reduced by the amount, if any paid or recovered from the employee for such benefit or amenity:
• (8)(i) For the purposes of sub-clause (vi) of clause (2) of section 17, the fair market value of any specified security or sweat equity share, being an equity share in a company, on the date on which the option is exercised by the employee, shall be determined in accordance with the provisions of clause (ii) or clause (iii). (ii) In a case where, on the date of the exercising of the option, the share in the company is listed on a recognized stock exchange, the fair market value shall be the average of the opening price and closing price of the share on that date on the said stock exchange :

Rule-3A, Income-tax Rules

• 3A. (1) [In granting approval to any hospital other than a hospital for Indian system of medicine and homoeopathic treatment for the purposes of sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause (2) of section 17], the Chief Commissioner shall satisfy himself that the hospital is registered with the local authority and fulfils the following requirements, namely :—
• (i) Â The building used for the hospital complies with the municipal bye-laws in force
• (ii) Â The rooms are well ventilated, lighted and are kept in clean and hygienic conditions. (iii) Â At least ten iron spring beds are provided for patients. (iv) Â At least one properly equipped operation theatre is provided, with minimum floor space of 180 square feet and with a separate sterilisation room. (v) Â At least one labour room is provided, with minimum floor space of 180 square feet, in case the hospital provides medical service for maternity cases.
• (vi) Â Aseptic conditions are maintained in the operation theatre and the labour room
• (vii) Â A duty room is provided for the nursing staff on duty.
• (viii) Â Adequate space for storage of medicines, food articles, equipments, etc., is provided.
• (ix) Â The water used in the hospital or nursing home is fit for drinking.
• (x)  Adequate arrangements are made for isolating septic and infectious patients. (xi)  The hospital is provided with and maintains :— (a)  high pressure sterilizer and instrument sterilizer; (b)  oxygen cylinders and necessary attachments for giving oxygen; (c)  adequate surgical equipments, instruments and apparatus including intravenous apparatus; (d)  a pathological laboratory for testing of blood, urine and stool; (e)  electro-cardiogram monitoring system; (f)  stand-by generator for use in case of power failure.
• [(1A) In granting approval to any hospital for Indian system of medicine and homoeopathic treatment for the purposes of sub-clause (b) of clause (ii) of the proviso to sub-clause (vi) of clause (2) of section 17, the Chief Commissioner shall satisfy himself that the hospital fulfils the conditions specified vide Office Memorandum dated the 6th June, 2002, by the Department of Indian Systems of Medicine and Homoeopathy, Ministry of Health and Family Welfare for approval of private hospitals for Indian system of medicine and homoeopathic treatment to Central Government Health Scheme beneficiaries and Central Government employees.]
• (2) For the purpose of sub-clause (b) of clause (ii) of the proviso to [sub-clause (vi) of] clause (2) of section 17, the prescribed diseases or ailments shall be the following, namely :—
• (a)  cancer; (b)  tuberculosis; (c)  acquired immunity deficiency syndrome; (d)  disease or ailment of the heart, blood, lymph glands, bone marrow, respiratory system, central nervous system, urinary system, liver, gall bladder, digestive system, endocrine glands or the skin, requiring surgical operation; (e)  ailment or disease of the eye, ear, nose or throat, requiring surgical operation; (f)  fracture in any part of the skeletal system or dislocation of vertebrae requiring surgical operation or orthopaedic treatment; (g)  gynaecological or obstetric ailment or disease requiring surgical operation, caesarean operation or laperoscopic intervention; (h)  ailment or disease of the organs mentioned at (d), requiring medical treatment in a hospital for at least three continuous days; (i)  gynaecological or obstetric ailment or disease requiring medical treatment in a hospital for at least three continuous days; (j)  burn injuries requiring medical treatment in a hospital for at least three continuous days; (k)  mental disorder - neurotic or psychotic - requiring medical treatment in a hospital for at least three continuous days; (l)  drug addiction requiring medical treatment in a hospital for at least seven continuous days; (m)  anaphylectic shocks including insulin shocks, drug reactions and other allergic manifestations requiring medical treatment in a hospital for at least three continuous days.
• Explanation : For the purpose of this rule,—
• (a)  “qualified doctor” means a person who holds a degree recognised by the Medical Council of India and is registered by the Medical Council of any State;
• (b)  “nurse” means a person who holds a certificate of a recognised Nursing Council and is registered under any law for the registration of nurses;
• (c)  “surgical operation” includes treatment by modern methodology such as angioplasty, dialysis, lithotropsy, laser or cryo-surgery.]

Rule-4, Income-tax Rules

• 4. For the purposes of the Explanation below sub-section (1) of section 23, the amount of rent which the owner cannot realise shall be equal to the amount of rent payable but not paid by a tenant of the assessee and so proved to be lost and irrecoverable where,—
• (a) Â the tenancy is bona fide;
• (b) Â the defaulting tenant has vacated, or steps have been taken to compel him to vacate the property;
• (c) Â the defaulting tenant is not in occupation of any other property of the assessee;
• (d) Â the assessee has taken all reasonable steps to institute legal proceedings for the recovery of the unpaid rent or satisfies the Assessing Officer that legal proceedings would be useless.]

Rule-5, Income-tax Rules

• 5. (1) Subject to the provisions of sub-rule (2), the allowance under clause (ii) of sub- section (1) of section 32 in respect of depreciation of any block of assets shall be calculated at the percentages specified in the second column of the Table in Appendix I to these rules on the written down value of such block of assets as are used for the purposes of the business or profession of the assessee at any time during the previous year:
• [Provided that in case of a domestic company which has exercised option under sub-section (4) of section 115BA, the allowance under clause (ii) of sub-section (1) of section 32 in respect of depreciation of any block of assets entitled to more than forty per cent shall be restricted to forty per cent on the written down value of such block of assets.]
• [(1A) The allowance under clause (i) of sub-section (1) of section 32 of the Act in respect of depreciation of assets acquired on or after 1st day of April, 1997 shall be calculated at the percentage specified in the second column of the Table in Appendix IA of these rules on the actual cost thereof to the assessee as are used for the purposes of the business of the assessee at any time during the previous year :
• Provided further that the undertaking specified in clause (i) of sub-section (1) of section 32 of the Act may, instead of the depreciation specified in Appendix IA, at its option, be allowed depreciation under sub-rule (1) read with Appendix I, if such option is exercised before the due date for furnishing the return of income under sub-section (1) of section 139 of the Act,
• (a) Â for the assessment year 1998-99, in the case of an undertaking which began to generate power prior to 1st day of April, 1997; and (b) Â for the assessment year relevant to the previous year in which it begins to generate power, in case of any other undertaking :
• (2) Where any new machinery or plant is installed during the previous year relevant to the assessment year commencing on or after the 1st day of April, 1988, for the purposes of business of manufacture or production of any article or thing and such article or thing—
• (a)  is manufactured or produced by using any technology (including any process) or other know-how developed in, or (b)  is an article or thing invented in, a laboratory owned or financed by the Government or a laboratory owned by a public sector company or a University or an institution recognised in this behalf by the Secretary, Department of Scientific and Industrial Research, Government of India, such plant or machinery shall be treated as a part of block of assets qualifying for depreciation at the rate of [40] per cent of written down value, if the following conditions are fulfilled, namely :—
• (i) Â the right to use such technology (including any process) or other know- how or to manufacture or produce such article or thing has been acquired from the owner of such laboratory or any person deriving title from such owner ; (ii) Â the return furnished by the assessee for his income, or the income of any other person in respect of which he is assessable, for any previous year in which the said machinery or plant is acquired, shall be accompanied by a certificate from the Secretary, Department of Scientific and Industrial Research, Government of India, to the effect that such article or thing is manufactured or produced by using such technology (including any process) or other know-how developed in such laboratory or is an article or thing invented in such laboratory ; and (iii) Â the machinery or plant is not used for the purpose of business of manufacture or production of any article or thing specified in the list in the Eleventh Schedule to the Act.
• Explanation : For the purposes of this sub-rule,—
• (a)  “laboratory financed by the Government” means a laboratory owned by any body [including a society registered under the Societies Registration Act, 1860 (21 of 1860)], and financed wholly or mainly by the Government ;
• (b)  “public sector company” means any corporation established by or under any Central, State or Provincial Act or a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956) ; and
• (c)  “University” means a University established or incorporated by or under a Central, State or Provincial Act and includes an institution declared under section 3 of the University Grants Commission Act, 1956 (3 of 1956), to be a University for the purposes of that Act.]

Rule-5A, Income-tax Rules

• 5A. The report from an accountant which is required to be furnished by the assessee under the third proviso to clause (iia) of sub-section (1) of section 32 shall be in Form No. 3AA.]

Rule-5AA, Income-tax Rules

• [5AA.] For the purposes of sub-section (2B) of section 32A, the “prescribed authority” shall be the Secretary, Department of [Scientific and Industrial Research], Government of India.]

Rule-5AB, Income-tax Rules

• 5AB. The report of audit of the accounts of an assessee, which is required to be furnished under sub-section (5) of section 32AB shall be in Form No. 3AAA.]]

Rule-5AC, Income-tax Rules

• 5AC. The report of audit of the accounts of an assessee, which is required to be furnished under sub-section (2) of section 33AB shall be in Form No. 3AC.]

Rule-5AD, Income-tax Rules

• 5AD. The report of audit of the accounts of an assessee, which is required to be furnished under sub-section (2) of section 33ABA, shall be in Form No. 3AD.]

Rule-5B, Income-tax Rules

• 5B. The deduction to be allowed by way of development rebate in respect of any ship or machinery or plant referred to in sub-section (1A) of section 33 shall be a sum equivalent to—
• [(a)  in the case of any such ship—
• (i) Â where the ship is acquired by the assessee at any time before the expiry of seven years from the date she was built, thirty per cent of the actual cost of the ship to the assessee ; and
• (ii) Â in any other case, twenty per cent of the actual cost of the ship to the assessee ;]
• (b)  in the case of any such machinery or plant installed after the 31st day of March, 1964—
• (i) Â where it is installed before the 1st day of April, 1966, for the purposes of business of mining coal, twenty per cent of the actual cost of the machinery or plant to the assessee ; and (ii) Â in any other case, ten per cent of the actual cost of the machinery or plant to the assessee.

Rule-5C, Income-tax Rules

• 5C. (1) An application for approval,—
• (i) Â under clause (ii) [or clause (iii)] of sub-section (1) of section 35 by a [***] research association in duplicate in Form No. 3CF-I; (ii) Â under clause (ii) or clause (iii) of sub-section (1) of section 35 by a university, college or other institution in duplicate in Form No. 3CF-II, shall be made, at any time during the financial year immediately preceding the assessment year from which the approval is sought, to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the applicant.
• (2) Annexure to the application [in] Form No. 3CF-I shall be filled out if the association claims exemption under clause (21) of section 10 of the Income-tax Act.
• (3) The applicant shall send a copy of the application in Form No. 3CF-I or, as the case may be, Form No. 3CF-II to Member (IT), Central Board of Direct Taxes accompanied by the acknowledgement receipt as evidence of having furnished the application form in duplicate in the office of the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case.
• (4) The period of one year, as specified in the fourth proviso to sub-section (1) of section 35, before the expiry of which approval is to be granted or the application is to be rejected by the Central Government shall be reckoned from the end of the month in which the application form from the applicant for approval is received in the office of Member (IT), Central Board of Direct Taxes.
• (5) If any defect is noticed in the application in Form No. 3CF-I or Form No. 3CF-II or if any relevant document is not attached thereto, the Commissioner of Income-tax or, as the case may be, the Director of Income-tax shall serve a deficiency letter on the applicant before the expiry of one month from the date of receipt of the application form in his office.
• (6) The applicant shall remove the deficiency within a period of fifteen days from the date of service of the deficiency letter or within such further period which, on an application made in this behalf may be extended, so however, that the total period for removal of deficiency does not exceed thirty days, and if the applicant fails to remove the deficiency within the period of thirty days so allowed, the Commissioner of Income-tax or, as the case may be, the Director of Income-tax shall send his recommendation for treating the application as invalid to the Member (IT), Central Board of Direct Taxes.
• (7) The Central Government, if satisfied, may pass an order treating the application as invalid.
• (8) If the application form is complete in all respects, the Commissioner of Income-tax or, as the case may be, the Director of Income-tax, may make such inquiry as he may consider necessary regarding the genuineness of the activity of the association or university or college or other institution and send his recommendation to the Member (IT) for grant of approval or rejection of the application before the expiry of the period of three months to be reckoned from the end of the month in which the application form was received in his office.
• (9) The Central Government may before granting approval under clause (ii) or clause (iii) shall call for such documents or information from the applicant as it may consider necessary and may get any inquiry made for verification of the genuineness of the activity of the applicant.
• (10) The Central Government may, under sub-section (1) of section 35, issue the notification to be published in the Official Gazette granting approval to the association or university or college or other institution or for reasons to be recorded in writing reject the application.
• (11) The Central Government may withdraw the approval granted under clause (ii) or clause (iii) of sub-section (1) of section 35 if it is satisfied that the [***] research association or university or college or other institution has ceased its activities or its activities are not genuine or are not being carried out in accordance with all or any of the conditions under rule 5D or rule 5E.
• (12) No order treating the application as invalid or rejecting the application or withdrawing the approval, shall be passed without giving a reasonable opportunity of being heard to the [***] research association or university or college or other institution.
• (13) A copy of the order invalidating or rejecting the application or withdrawing the approval shall be communicated to the applicant, the Assessing Officer and the Commissioner of Income-tax or, as the case may be, the Director of Income-tax.

Rule-5D, Income-tax Rules

• 5D. (1) The sole object of the applicant research association shall be to undertake scientific research or research in social science or statistical research, as the case may be.
• (2) The applicant research association shall carry on the research activity by itself.
• (3) The research association seeking approval under clause (ii) or clause (iii) of sub-section (1) of section 35 shall maintain books of account and get such books audited by an accountant as defined in the Explanation to sub-section (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (1) of section 139.
• (4) The research association shall maintain a separate statement of donations received and amount applied for scientific research or research in social science or statistical research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to in sub-rule (3).
• (5) The research association shall, by the due date of furnishing the return of income under sub-section (1) of section 139, furnish a statement to the Commissioner of Income-tax or Director of Income-tax containing—
• (i) Â a detailed note on the research work undertaken by it during the previous year; (ii) Â a summary of research articles published in national or international journals during the year; (iii) Â any patent or other similar rights applied for or registered during the year; (iv) Â programme of research projects to be undertaken during the forthcoming year and the financial allocation for such programme.
• (6) If the Commissioner of Income-tax or the Director of Income-tax is satisfied that the research association,—
• (a) Â is not maintaining books of account, or (b) Â has failed to furnish its audit report, or (c) Â has not furnished its statement of the sums received and the sums applied for scientific research or research in social science or statistical research or a statement referred to in sub-rule (5), or (d) Â has ceased to carry on its research activities, or its activities are not genuine, or (e) Â is not fulfilling the conditions subject to which approval was granted to it,
• he may after making appropriate enquiries furnish a report on the circumstances referred to in clauses (a) to (e) above to the Central Government within six months from the date of furnishing the return of income under sub-section (1) of section 139.]

Rule-5E, Income-tax Rules

• 5E. (1) The sum paid to a university, college or other institution shall be used for scientific research and research in social science or statistical research.
• (2) The applicant university, college or other institution shall carry out scientific research, research in social science or statistical research through its faculty members or its enrolled students.
• (3) A university or college or other institution approved under clause (ii) or clause (iii) of sub-section (1) of section 35 shall maintain separate books of account in respect of the sums received by it for scientific research or, as the case may be, for research in social science or statistical research, reflect therein the amount used for carrying out research, get such books of account audited by an accountant, as defined in the Explanation to sub-section (2) of section 288 and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax or the Director of Income-tax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (1) of section 139.
• (4) The university or college or other institution shall maintain a separate statement of donations received and the amount used for research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to in sub-rule (3).
• [(4A) The university, college or other institution shall, by the due date of furnishing the return of income under sub-section (1) of section 139, furnish a statement to the Commissioner of Income-tax or Director of Income-tax containing—
• (i) Â a detailed note on the research work undertaken by it during the previous year; (ii) Â a summary of research articles published in national or international journals during the year; (iii) Â any patent or other similar rights applied for or registered during the year; (iv) Â programme of research projects to be undertaken during the forthcoming year and the financial allocation for such programme.]
• (5) If the Commissioner of Income-tax or the Director of Income-tax is satisfied that the university or college or other institution,— (a)  is not maintaining separate books of account for research activities, or (b)  has failed to furnish its audit report, or (c)  has not furnished its statement of the sums received and the sums used for research [or a statement referred to in sub-rule (4A)], or (d)  has ceased to carry on its research activities, or its activities are not genuine, or (e)  is not fulfilling the conditions subject to which approval was granted to it,
• he may after making appropriate enquiries furnish a report on the circumstances referred to in clauses (a) to (e) above to the Central Government within six months from the date of furnishing the return of income under section 139(1).]

Rule-5F, Income-tax Rules

• 5F. (1) For the purposes of clause (iia) of sub-section (1) of section 35, the pre- scribed authority shall be the Chief Commissioner of Income-tax having jurisdiction over the applicant.
• (2) Guidelines, form and manner in respect of approval under clause (iia) of sub-section (1) of section 35 shall be as under :—
• (a) Â An application for approval under clause (iia) of sub-section (1) of section 35 by a company shall be made in duplicate in Form No. 3CF-III, to the Commissioner of Income-tax having jurisdiction over the applicant, at any time during the financial year immediately preceding the assessment year from which the approval is sought. (b) Â The applicant shall send a copy of the application in Form No. 3CF-III to the prescribed authority, accompanied by the acknowledgement receipt as evidence of having furnished the application form in duplicate in the Office of the Commissioner of Income-tax having jurisdiction over the case. (c) Â Every notification under clause (iia) of sub-section (1) of section 35 shall be issued or an order rejecting the application shall be passed within a period of twelve months from the end of the month in which the application was received in the Office of the Chief Commissioner of Income-tax. (d) Â If any defect is noticed in the application in Form No. 3CF-III or if any relevant document is not attached thereto, the Commissioner of Income-tax shall serve a deficiency letter on the applicant before the expiry of one month from the date of receipt of the application form in his office. (e) Â The applicant shall remove the deficiency within a period of fifteen days from the date of service of the deficiency letter or within such further period which, on an application made in this behalf may be extended, so however, that the total period for removal of deficiency does not exceed thirty days, and if the applicant fails to remove the deficiency within the period of thirty days so allowed, the Commissioner of Income-tax shall send his recommendation to the Chief Commissioner of Income-tax for treating the application as invalid. (f) Â The Chief Commissioner of Income-tax may, after examining the re-commendations referred to in clause (e), pass an order that the application is invalid. (g) Â If the application form is complete in all respects, the Commissioner of Income-tax may, make such inquiry as he may consider necessary regarding the genuineness of the activity of the company and send his recommendation to the Chief Commissioner of Income-tax for grant of approval or rejection of the application before the expiry of the period of three months to be reckoned from the end of the month in which the application form was received in his office. (h) Â The Chief Commissioner of Income-tax may, before granting approval under clause (iia) of sub-section (1) of section 35, call for such documents or information from the applicant as it considers necessary and may get any inquiry made for verification of the genuineness of the activity of the applicant. (i) Â The Chief Commissioner of Income-tax may, under sub-section (1) of section 35, issue the notification to be published in the Official Gazette granting approval to the company or for reasons to be recorded in writing reject the application. (j) Â The Chief Commissioner of Income-tax may withdraw the approval granted under clause (iia) of sub-section (1) of section 35 if he is satisfied that the company has ceased to carry on its activities or its activities are not genuine or are not being carried on in accordance with all or any of the conditions under this rule : Â Provided that no order treating the application as invalid or rejecting the application or withdrawing the approval shall be passed without giving a reasonable opportunity of being heard to the company. (k) Â A copy of the order invalidating or rejecting the application or withdrawing the approval shall be communicated to the applicant, the Assessing Officer and the Commissioner of Income-tax.
• (3) Approval to a company under clause (iia) of sub-section (1) of section 35 shall be subject to the following conditions, namely :— (a)  The sum paid to the company shall be used for scientific research; (b)  The applicant company shall carry on scientific research through its own employees using its own assets; (c)  A company approved under clause (iia) of sub-section (1) of section 35 shall maintain separate books of account in respect of the sums received by it for scientific research, reflect therein the amount used for carrying on research, get such books of account audited by an accountant, and furnish the report of such audit duly signed and verified by such accountant to the Commissioner of Income-tax having jurisdiction over the case, by the due date of furnishing the return of income under sub-section (1) of section 139.  Explanation.—For the purpose of this clause “accountant” shall have the same meaning as assigned to it in Explanation to sub-section (2) of section 288 of the Act; (d)  The company shall maintain a separate statement of donations received and the amount used for research and a copy of such statement duly certified by the auditor shall accompany the report of audit referred to in sub-rule (3). (e)  Subsequent to approval, the company shall, every year, by the due date of furnishing the return of income under sub-section (1) of section 139, furnish a statement to the Commissioner of Income-tax containing the following information, namely :— (i)  a detailed note on the research work undertaken by it during the previous year; (ii)  a summary of research articles published in national or international journals during the year; (iii)  any patents or other similar rights applied for or registered during the year; (iv)  programme of research projects to be undertaken during the forthcoming year and the financial allocation for such subjects. (f)  If the Commissioner of Income-tax is satisfied that the company,— (i)  is not maintaining separate books of account for research activities, or (ii)  has failed to furnish its audit report, or (iii)  has not furnished its statement of the sums received and the sums used for research, or a statement referred to in sub-clause (e), or (iv)  has ceased to carry on its research activities, or its activities are not genuine, or (v)  is not fulfilling the conditions subject to which approval was granted to it,
• Â he may after making appropriate enquiries, furnish a report on the circumstances referred to in sub-clauses (i) to (v) to the jurisdictional Chief Commissioner of Income-tax within six months from the date of furnishing the return of income under sub-section (1) of section 139.]

Rule-6, Income-tax Rules

• 6. (1) For the purposes of [[clause (i) of] sub-section (1) and sub-section (2A) of] section 35, the prescribed authority shall be the Director General (Income-tax Exemptions) in concurrence with the Secretary, Department of Scientific and Industrial Research, Government of India.
• [(1A) For the purposes of sub-section (2AA) of section 35, the prescribed authority shall be— (a)  in the case of a National Laboratory or a University or an Indian Institute of Technology, the head of the National Laboratory or the University or the Indian Institute of Technology, as the case may be; and (b)  in the case of a specified person, the Principal Scientific Adviser to the Government of India.] [(1B) For the purposes of sub-section (2AB) of section 35, the prescribed authority shall be the Secretary, Department of Scientific and Industrial Research.]
• [(3) The application for obtaining approval under sub-section (2AA) of section 35 shall be made by a sponsor in Form No. 3CG.
• [(4) The application required to be furnished by a company under sub-section (2AB) of section 35 shall be in Form No. 3CK.]
• [(5) The head of the National Laboratory or the University or the Indian Institute of Technology [or the Principal Scientific Adviser to the Government of India] shall, if he is satisfied that it is feasible to carry out the scientific research programme then, subject to other conditions prescribed in this rule and section 35(2AA) of the Act, pass an order in writing in Form No. 3CH :
• [(5A) The prescribed authority shall, if he is satisfied that the conditions provided in this rule and in sub-section (2AB) of section 35 of the Act are fulfilled, pass an order in writing in Form No. 3CM :
• [(6) The National Laboratory, [University, Indian Institute of Technology or specified person] shall issue a receipt of payment for carrying out an approved programme of scientific research under sub-section (2AA) in Form No. 3CI.]
• [(7) Approval of a programme under sub-section (2AA) shall be subject to the following conditions :— (a)  The programme should not relate purely to market research, sales promotion, quality control, testing, commercial production, style changes, routine data collection or activities of a like nature ; (b)  The prescribed authority shall submit its report to the [Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax having jurisdiction over the sponsor] in Form No. 3CJ within a period of three months from the date of granting approval to the programme :  [Provided that the officer authorised by the prescribed authority, being the Principal Scientific Adviser to the Government of India, under sub-rule (5) shall submit such report to the [Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax having jurisdiction over the sponsor];] (c)  The sponsor and the National Laboratory, [University, Indian Institute of Technology or specified person], as the case may be, shall submit to the [Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax having jurisdiction over the sponsor] a yearly statement showing progress of implementation of the approved programme and actuals of expenditure incurred thereon; (d)  The prescribed authority shall not extend the duration of the programme or approve any escalation in costs; (e)  The National Laboratory, [University, Indian Institute of Technology or specified person], as the case may be, shall maintain a separate account for each approved programme ; which shall be audited annually and a copy thereof shall be furnished to the [Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax having jurisdiction over the sponsor] by 31st day of October of each succeeding year; (f)  Assets acquired by the prescribed authority for executing the approved programme shall not be disposed of without the approval of the [Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax having jurisdiction over the sponsor]; (g)  On completion of the approved programme, a completion certificate along with a copy of the report on the research activities carried out and salient features of the result obtained and its further application for commercial exploitation shall be jointly submitted by the sponsor and the National Laboratory, [University, Indian Institute of Technology or specified person] to the [Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax having jurisdiction over the sponsor] ; (h)  A copy of the audited statement of accounts for the approved programme shall be submitted by the Head of the National Laboratory, University or Indian Institute of Technology [or the Principal Scientific Adviser to the Government of India] to the [Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax or Principal Director General of Income-tax or Director General of Income-tax having jurisdiction over the sponsor] within six months of the completion of the programme.]
• [ (8). For the purposes of this rule, the Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture and transmission of data, and shall also be responsible for the day-to-day administration in relation to furnishing the information in the manner so specified.]

Rule-6A, Income-tax Rules

• 6A. (1) For the purpose of section 35ABA, the term "payment has actually been made" shall mean,— (a)  where an assessee has opted and been allowed by the Department of Telecommunications, Government of India to make full upfront payment of spectrum fee, the actual payment of expenditure irrespective of the previous year in which the liability for the expenditure was incurred according to the method of accounting regularly employed by the assessee; (b)  where an assessee has opted and been allowed by the Department of Telecommunications, Government of India to make deferred payment, the amount which would have been payable by the assessee had he opted for full upfront payment of spectrum fee irrespective of the previous year in which the liability for the expenditure was incurred according to the method of accounting regularly employed by the assessee. (2) In case of deferred payment referred to in clause (b) of sub-rule (1), where there is failure by the assessee to comply with any of the conditions specified by the scheme of the Department of Telecommunications, Government of India and Department of Telecommunications terminates the allotment or assignment of spectrum, the Assessing Officer shall, in exercise of power vested in him under sub-section (3) of section 35ABA shall re-compute the total income of the assessee for the previous year in which the deduction has been claimed and granted to him by deeming that,— (i)  the total amount of spectrum fee paid up to the date of termination is the amount of "payment actually been made"; (ii)  the spectrum was in force up to the date of its termination for the purpose of computing "relevant previous year" ]

Rule-6AA, Income-tax Rules

• 6AA. [Omitted by the IT (Thirty-second Amdt.) Rules, 1999, w.e.f. 19-11-1999.]

Rule-6AAA, Income-tax Rules

• [6AAA.] For the purposes of section 35CC and section 35CCA,— (i)  the “prescribed authority” to approve the programme of rural development referred to in sub-section (1) of section 35CC and in clause (a) of sub-section (1) of section 35CCA shall be the Committee consisting of the following, namely :— (a)  The [Chief Commissioner or Commissioner] of Income-tax who exercises jurisdiction over the State or, as the case may be, the Union territory in which the programme of rural development is to be carried out—Chairman; (b)  An officer not below the rank of a Secretary to the Government of the State or, as the case may be, the Union territory in which the programme of rural development is to be carried out—Member; (ii)  the “prescribed authority” to approve an association or institution referred to in clause (a) or clause (b) of sub-section (1) of section 35CCA shall be the Committee consisting of the following, namely :— (a)  The [Chief Commissioner or Commissioner] of Income-tax, who exercises jurisdiction over the State or, as the case may be, the Union territory in which the principal office of the association or institution is situated—Chairman; (b)  An officer not below the rank of a Secretary to the Government of the State or, as the case may be, the Union territory in which the principal office of the association or institution is situated— Member : Provided that where in a case whether falling under clause (i) or clause (ii) two or more Commissioners exercise jurisdiction over the State or, as the case may be, the Union territory, the Board may, by notification in the Official Gazette, empower the [Chief Commissioner or Commissioner] specified in this behalf to be the Chairman of the Committee. Explanation : In this rule, “programme of rural development” shall have the meaning assigned to it in the Explanation to sub-section (1) of section 35CC of the Income-tax Act.]

Rule-6AAD, Income-tax Rules

• 6AAD . (1) The agricultural extension project shall be considered for notification if it fulfils all of the following conditions, namely :— (i)  the project shall be undertaken by an assessee for training, education and guidance of farmers; (ii)  the project shall have prior approval of the Ministry of Agriculture, Government of India; and (iii)  an expenditure (not being expenditure in the nature of cost of any land or building) exceeding the amount of twenty-five lakh rupees is expected to be incurred for the project.
• (2) Before undertaking any agricultural extension project, an assessee shall make an application in Form No. 3C-O to the Member (IT), Central Board of Direct Taxes for notification of such project under sub-section (1) of section 35CCC.
• (3) The application referred to in sub-rule (2) shall be accompanied by the following, namely :— (a)  a detailed note on the agricultural extension project to be undertaken by the assessee; (b)  details of the expenditure expected to be incurred on the project and expected date of completion of the project; and (c)  a letter approving the project and specifying the amount of expenditure expected to be incurred on the project from the Ministry of Agriculture, Government of India.
• (4) Where any defect is noticed in the application referred to in sub-rule (2) or a relevant document is not attached thereto, the Central Board of Direct Taxes shall, before the expiry of one month from the date of receipt of the application in its office, intimate the defect to the applicant for its rectification.
• (5) The applicant shall remove the defect within a period of fifteen days from the date of such intimation or within such further period as may be extended by the Central Board of Direct Taxes, on an application made in this behalf by the applicant, so however, that the total period for removal of defect does not exceed thirty days, and if the applicant fails to remove the defect within such period as allowed, the Central Board of Direct Taxes shall pass an order treating the application as invalid.
• (6) If the application form is complete in all respects, the Central Board of Direct Taxes shall, within a period of one month from the end of the month in which it receives the application form complete in all respects, issue under sub-section (1) of section 35CCC, a notification in Form No. 3CP to be published in Official Gazette specifying the agricultural extension project, subject to the conditions mentioned in rule 6AAE or such other conditions, as it may deem fit, to be effective for such period not exceeding three assessment years.
• (7) The assessee, may, atleast two months before the expiry of the effective period of the notification issued under sub-rule (6), make an application to the Central Board of Direct Taxes for notification of such project for a further period.
• (8) The Central Board of Direct Taxes shall, after receiving the application under sub-rule (7), call for a report from the Commissioner of Income-tax or the Director of Income-tax, as the case may be, having jurisdiction over the case regarding the activities of the agricultural extension project during the period of notification and fulfilment of conditions mentioned in rule 6AAE and any other conditions subject to which the agricultural extension project was notified under sub-rule (6).
• (9) On being satisfied with the report received under sub-rule (8) on the agricultural extension project, the Central Board of Direct Taxes may, within a period of three months from the end of the month in which it receives application referred to in sub-rule (7), notify the said project for a further period not exceeding three assessment years.

Rule-6AAE, Income-tax Rules

• 6AAE. (1) The assessee undertaking agricultural extension project shall maintain separate books of account of the agricultural extension project notified under sub-section (1) of section 35CCC, and get such books of account audited by an accountant as defined in the Explanation below sub-section (2) of section 288.
• (2) The audit report referred to in sub-rule (1) shall include the comments of the auditor on the true and fair view of the books of account maintained for agricultural extension project, the genuineness of the activities of the agricultural extension project and fulfilment of the conditions specified in the relevant provisions of the Act or the rules or the conditions mentioned in the [notification issued under sub-rule (6) or sub-rule (9) of rule 6AAD. ]
• (3) The assessee shall not accept an amount exceeding the amount as approved in the notification from the beneficiary under the eligible agricultural extension project for training, education, guidance or any material distributed for the purposes of such training, education or guidance.
• (4) The assessee shall not get any direct or indirect benefit from the notified agricultural extension project except the deduction of the eligible expenditure in accordance with the provisions of section 35CCC of the Act, rule 6AAD and this rule.
• (5) All expenses (not being expenditure in the nature of cost of any land or building), as reduced by the amount received from beneficiary, if any, incurred wholly and exclusively for undertaking an eligible agricultural extension project shall be eligible for deduction under section 35CCC :
• Provided that any expenditure incurred on the agricultural extension project which is reimbursed or reimbursable to the assessee by any person, whether directly or indirectly, shall not be eligible for deduction under section 35CCC.

Rule-6AAF, Income-tax Rules

• 6AAF. (1) A skill development project shall be considered for notification if it is undertaken by an eligible company and the project is undertaken in separate facilities in a training institute.
• (2) The eligible company, before undertaking any skill development project, shall make an application for notification of such project under sub-section (1) of section 35CCD, in duplicate, in Form No. 3CQ, to the National Skill Development Agency (hereinafter referred to as the NSDA).
• (3) The eligible company shall also send a copy of the application in Form No. 3CQ to the Commissioner of Income-tax or the Director of Income-tax, as the case may be, having jurisdiction over the case, accompanied by the acknowledgement receipt as evidence of having furnished the application form in duplicate to the NSDA.
• (4) The application shall be accompanied by the following, namely :— (a)  detailed note on the skill development project to be undertaken by the eligible company; (b)  details of the expenditure expected to be incurred on the project and expected date of completion of the project; and (c)  a letter of concurrence from the training institute in which the skill development project is to be undertaken.
• (5) If any defect is noticed in the application referred to in sub-rule (2) or if any relevant document is not attached thereto, the NSDA shall, before the expiry of one month from the date of receipt of the application in its office, intimate the defect to the applicant for its rectification.
• (6) The applicant shall remove the defect within a period of fifteen days from the date of such intimation or within such further period as, on an application made in this behalf, may be extended by the NSDA, so however, that the total period for removal of the defect does not exceed thirty days, and if the applicant fails to remove the defect within such period so allowed, the NSDA shall send its recommendation for treating the application as invalid to the CBDT.
• (7) On receipt of recommendation of the NSDA under sub-rule (6), the CBDT, if satisfied, may pass an order treating the application as invalid.
• (8) If the application form is complete in all respects, the NSDA may make such inquiry or call for such documents from the eligible company or the training institute as it may consider necessary for satisfying itself regarding the genuineness of the current and proposed activity of the applicant and send its recommendation to the CBDT for grant of approval or rejection of the application before the expiry of the period of two months to be reckoned from the end of the month in which the application form complete in all respects was received in its office.
• (9) The Commissioner of Income-tax or the Director of Income-tax, as the case may be, having jurisdiction over the case shall send his recommendation to the NSDA for grant of approval or rejection of the application, after considering the compliance of the applicant with the various provisions of Income-tax Act, 1961 and Wealth-tax Act, 1957, before the expiry of the period of one month to be reckoned from the end of the month in which the copy of the application was received in his office.
• (10) If the NSDA recommends the grant of approval under sub-rule (8), the CBDT shall, within a period of fifteen days from the end of the month in which it receives the report from the NSDA, under sub-section (1) of section 35CCD, issue a notification in Form No. 3CR to be published in the Official Gazette specifying the skill development project subject to conditions mentioned in rule 6AAG or such other conditions, as it may deem fit, to be effective for such period not exceeding three assessment years and if the NSDA recommends the rejection of the application under sub-rule (8), the CBDT shall pass an order rejecting the application.
• (11) If the CBDT is satisfied with the activities of the skill development project during the period of notification, it may notify the said project for a further period in consultation with the NSDA.
• (12) A copy of the notification issued under sub-rule (10) or sub-rule (11) shall be sent to the applicant, the NSDA, the training institute and the Commissioner of Income-tax or the Director of Income-tax, as the case may be, having jurisdiction over the case.
• (13) The CBDT may rescind the notification issued under sub-rule (10) or sub-rule (11) at any time, if it is satisfied that the eligible company or the training institute, as the case may be, has ceased its activities or its activities are not genuine or the activities of the skill development project are not being carried out in accordance with all or any of the relevant provisions of the Act or this rule or rule 6AAG or the conditions subject to which the notification was issued.
• (14) An order rescinding the notification shall not be passed unless the applicant has been given an opportunity of being heard in the matter.
• (15) A copy of any order invalidating or rejecting the application or rescinding the notification shall be sent to the applicant, the training institute, the NSDA and the Commissioner of Income-tax or the Director of Income-tax, as the case may be, having jurisdiction over the case.

Rule-6AAG, Income-tax Rules

• 6AAG. (1) The company undertaking skill development project shall maintain separate books of account of the skill development project notified under sub-section (1) of section 35CCD, and get such books of account audited by an accountant as defined in the Explanation below sub-section (2) of section 288.
• (2) The audit report referred to in sub-rule (1) shall include the comments of the auditor on the true and fair view of the books of account maintained for skill development project, the genuineness of the activities of the skill development project and fulfilment of the conditions specified in the relevant provisions of the Act or the rules or the conditions mentioned in the notification issued under sub-rule (10) or sub-rule (11) of rule 6AAF.
• (3) A skill development project in respect of existing employees of the company shall not be eligible for notification under sub-section (1) of section 35CCD, where the training of such employees commences after six months of their recruitment.
• (4) All expenses (not being expenditure in the nature of cost of any land or building), incurred wholly and exclusively for undertaking a notified skill development project shall be eligible for deduction under section 35CCD :
• (5) The company shall, on or before the due date of furnishing the return of income under sub-section (1) of section 139, furnish the audited statement of accounts of the skill development project for the previous year along with the audit report and amount of deduction claimed under sub-section (1) of section 35CCD to the Commissioner of Income-tax or the Director of Income-tax, as the case may be.

Rule-6AAH, Income-tax Rules

• 6AAH. For the purposes of rule 6AAF and rule 6AAG—
• (i)  “Eligible company” means a company, which is—
• (a) Â engaged in the business of manufacture or production of any article or thing, not being an article or thing mentioned at serial number 1 and serial number 2 of the list of articles or things specified in the Eleventh Schedule; or
• (b) Â engaged in providing services mentioned in column (2) of the Table below:

Table

• 1. Accounting services
• 2. Architect services
• 3. Automobile repair or maintenance
• 4. Banking, insurance and financial services including ATM installation, maintenance and operations or banking correspondents or insurance agents
• 5. Beauty and cosmetology, including hair styling or manicurists or pedicurists
• 6. Cable operators or Direct To Home (DTH) services
• 7. Cargo Handling and stevedoring services
• 8. Construction including painting or woodwork or plumbing or flooring or electrical wiring or installation or maintenance of lifts
• 9. Courier services
• 10. Design services including fashion or gems and jewellery or apparel or industrial designing  11. Event management
• 12. Facilities management, housekeeping, cleaning services
• 13. Fire and safety services
• 14. Food processing or preservation services, including post harvesting and post farm-gate skills
• 15. Health and Wellness services including spa or nutritionists or weight management or health instructors or yoga or gym trainers
• 16. Home decor services, landscaping
• [ (ii)  "Training institute" means a training institute,— (a)  set up by the Central Government or a State Government or a local authority; (b)  affiliated to the National Council for Vocational Training or a State Council for Vocational Training; (c)  affiliated to, or approved by, or empanelled by, the National Skill Development Agency; (d)  affiliated to, or approved by, or empanelled by, the Central Government and certified by the National Council for Vocational Training as having training standards equivalent to training institutes affiliated to the National Council for Vocational Training; or (e)  affiliated to, or approved by or empanelled by, the State Government and certified by the National Council for Vocational Training or a State Council for Vocational Training as having training standards equivalent to training institutes affiliated to the National Council for Vocational Training or, as the case may be, the State Council for Vocational Training.] (iii)  “National Council for Vocational Training” means the National Council for Training in Vocational Trades established by the resolution of the Government of India in the Ministry of Labour (Directorate General of Resettlement and Employment) No. TR/E.P.-24/56, dated the 21st August, 1956 and re-named as the National Council for Vocational Training by the resolution of the Government of India in the Ministry of Labour (Directorate General of Employment and Training) No. DGET/12/21/80-TC, dated the 30th September, 1981, (iv)  “State Council for Vocational Training” means a State Council for Training in Vocational Trades established by the State Government. ] [ (v)  "National Skill Development Agency" means the agency constituted by the Government of India vide notification No. 14/27/2012-EC, dated the 6th June, 2013.]

Rule-6ABA, Income-tax Rules

• 6ABA. For the purposes of clause (viia) of sub-section (1) of section 36, the aggregate average advances made by the rural branches of a scheduled bank shall be computed in the following manner, namely :—
• (a) Â the amounts of advances made by each rural branch as outstanding at the end of the last day of each month comprised in the previous year shall be aggregated separately ;
• (b) Â the sum so arrived at in the case of each such branch shall be divided by the number of months for which the outstanding advances have been taken into account for the purposes of clause (a) ;
• (c) Â the aggregate of the sums so arrived at in respect of each of the rural branches shall be the aggregate average advances made by the rural branches of the scheduled bank.
• Explanation : In this rule, “rural branch” and “scheduled bank” shall have the meanings assigned to them in the Explanation to clause (viia) of sub-section (1) of section 36.]

Rule-6ABAA, Income-tax Rules

• 6ABAA. The conditions to be fulfilled by a public facility to be eligible to be notified as an infrastructure facility in accordance with the provisions of clause (d) of the Explanation to clause (viii) of sub-section (1) of section 36 shall be the following, namely :—
• (a) Â it is owned by a company registered in India or by a consortium of such companies or by an authority or a board or a corporation or any other body established or constituted under any Central or State Act;
• (b) Â it has entered into an agreement with the Central Government or a State Government or a local authority or any other statutory body for (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining a new infrastructure facility similar in nature to an infrastructure facility referred to in the Explanation to clause (i) of sub-section (4) of section 80-IA;
• (c) Â it has started or starts operating and maintaining such infrastructure facility on or after the 1st day of April, 1995.]

Rule-6DD, Income-tax Rules

• 6DD. No disallowance under sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section (3A) of section 40A where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account 2[account payee bank draft or use of electronic clearing system through a bank account or through such other electronic mode as prescribed under rule 6ABBA, exceeds ten thousand rupees]
• (a)  where the payment is made to— (i)  the Reserve Bank of India or any banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (ii)  the State Bank of India or any subsidiary bank as defined in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); (iii)  any co-operative bank or land mortgage bank; (iv)  any primary agricultural credit society or any primary credit society as defined under section 56 of the Banking Regulation Act, 1949 (10 of 1949); (v)  the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956);
• (a)  where the payment is made to— (i)  the Reserve Bank of India or any banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); (ii)  the State Bank of India or any subsidiary bank as defined in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); (iii)  any co-operative bank or land mortgage bank; (iv)  any primary agricultural credit society or any primary credit society as defined under section 56 of the Banking Regulation Act, 1949 (10 of 1949); (v)  the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956);

Rule-6DDB, Income-tax Rules

• 6DDB. (1) An application for notification of a stock exchange as a recognised stock exchange for the purposes of clause (d) of proviso to clause (5) of section 43 may be made to the 1[Member (Income Tax)], Central Board of Direct Taxes, North Block, New Delhi - 110001.
• (2) The application referred to in sub-rule (1) shall be accompanied with the following documents, namely :— (i)  approval granted by Securities and Exchange Board of India for trading in derivatives; (ii)  up-to-date rules, bye-laws and trading regulations of the stock exchange; (iii)  confirmation regarding fulfilling the conditions referred to in clause (ii) to [clause (v)] of rule 6DDA; (iv)  such other information as the stock exchange may like to place before the Central Government.
• (3) The Central Government may call for such other information from the applicant as it deems necessary for taking a decision on the application.
• (4) The Central Government, after examining the information furnished by the stock exchange under sub-rule (2) or sub-rule (3), shall notify the stock exchange as a recognised stock exchange for the purposes of clause (d) of proviso to clause (5) of section 43 or issue an order rejecting the application before the expiry of four months from the end of the month in which the application is received.
• (5) The notification referred to in sub-rule (4) shall be effective until the approval granted by the Securities and Exchange Board of India is withdrawn or expired, or the notification is rescinded by the Central Government.]

Rule-6DDC, Income-tax Rules

• 6DDC. For the purposes of clause (e) of the proviso to clause (5) of section 43, a recognised association shall fulfil the following conditions in respect of trading in derivatives, namely:—
• (i) Â the recognised association shall have the approval of the Forward Markets Commission established under the Forward Contracts (Regulation) Act, 1952 (74 of 1952) in respect of trading in derivatives and shall function in accordance with the guidelines or conditions laid down by the Forward Markets Commission;
• (ii) Â the recognised association shall ensure that the particulars of the client (including unique client identity number and PAN) are duly recorded and stored in its databases;
• (iii) Â the recognised association shall maintain a complete audit trail of all transactions (in respect of derivative market) for a period of seven years on its system;
• (iv) Â the recognised association shall ensure that transactions (in respect of derivative market) once registered in the system are not erased;
• (v) Â the recognised association shall ensure that the transactions (in respect of derivative market) once registered in the system are modified only in cases of genuine error and maintain data regarding all transactions (in respect of derivative market) registered in the system which have been modified and submit a monthly statement in Form No. 3BC to the Director General of Income-tax (Intelligence and Criminal Investigation), New Delhi within fifteen days from the last day of each month to which such statement relates.

Rule-6DDD, Income-tax Rules

• 6DDD. (1) An application for notification of a recognised association (as per clause (j) of section 2 of the Forward Contracts (Regulation) Act, 1952) as a recognised association for the purposes of clause (e) of the proviso to clause (5) of section 43 may be made to the 1[Member (Income Tax)], Central Board of Direct Taxes, North Block, New Delhi.
• (2) The application referred to in sub-rule (1) shall be accompanied with the following documents, namely :— (i)  approval granted by Forward Markets Commission for trading in derivatives; (ii)  up-to-date rules, bye-laws and trading regulations of the recognised association; (iii)  confirmation regarding fulfilling the conditions referred to in clause (ii) to clause (v) of rule 6DDC; (iv)  such other information as the recognised association may like to place before the Central Government.
• (3) The Central Government may call for such other information from the applicant as it deems necessary for taking a decision on the application.
• (4) The Central Government, after examining the information furnished by the recognised association under sub-rule (2) or sub-rule (3), shall notify the recognised association as a recognised association for the purposes of clause (e) of the proviso to clause (5) of section 43 or issue an order rejecting the application before the expiry of four months from the end of the month in which the application is received.
• (5) The notification referred to in sub-rule (4) shall be effective until the approval granted by the Forward Markets Commission is withdrawn or expired, or the notification is rescinded by the Central Government.]

Rule-6E, Income-tax Rules

• 6E. In the computation of profits and gains of any business of insurance other than life insurance, the amount carried over to a reserve for unexpired risks including any amount carried over to any such additional reserve which is to be allowed as a deduction under clause (c) of rule 5 of the First Schedule, shall not exceed—
• [(a) Â where the insurance business relates to fire insurance or engineering insurance and which provides insurance for terrorism risks, 100 per cent of the net premium income of such business of the previous year; (aa) Â where the insurance business relates to fire insurance or miscellaneous insurance other than the insurance business covered under clause (a), 50 per cent of the net premium income of such business of the previous year;] (b) Â where the insurance business relates to marine insurance, 100 per cent of the net premium income of such business of the previous year:
• Provided that any amount out of the amount carried over to such reserve or additional reserve which is not allowed as a deduction under this rule in respect of any previous year shall not be included in the total income for the assessment year relevant to the immediately next succeeding previous year in the revenue account relating to which the amount aforesaid is credited. [Explanation.—For the purposes of this rule,— (a)  “net premium income” means the amount of premium received as reduced by the amount of reinsurance premium paid during the relevant previous year; (b)  “marine insurance” includes the Export Credit Insurance.]]

Rule-6EA, Income-tax Rules

• [6EA. The provisions of section 43D shall apply in the case of every public financial institution, scheduled bank, State financial corporation and State industrial investment corporation where its income by way of interest pertains to the following categories of bad and doubtful debts, namely:—
• (a) (i)  Non-viable or sticky advances, i.e., where irregularities of the nature specified in sub-clause (ii) are noticed in the accounts of the borrowers for a period of six months and more and there are no minimum prospects of regularisation of accounts, or where the accounts or information in relation to such accounts reflect usual signs of sickness, such as,— (1)  apparent stagnation in the business as a result of the slow or negligible turnover; (2)  frequent requests for overdrawing or issue of cheques without ensuring availability of funds in the account; (3)  bills purchased or discounted remain overdue for 3 months and more or the recovery of such bills from the borrower poses difficulties; (4)  in the case of term-loans, instalments which are overdue for 6 months or more; (5)  unexplained delays by the borrower in submission of quarterly or half-yearly operating statements or stock statements or balance sheets and other information required by the bank; (6)  slow movement or stagnation of stocks observed during inspections; (7)  low or negligible level of activity observed during inspections or suspension or closure of the business; (8)  persistent delay in compliance with vital requirements like execution of documents, producing additional security when required or non-compliance with such requirements; (9)  diversion of funds to sister units or acquiring capital assets not relevant to the business or large personal withdrawals by the borrowers; (10)  intentional non-adherence to project schedules leading to sub-stantial cost escalations and requirement of additional term-finance; (11)  the pressure on the liquidity leading to non-payment of wages to workers or statutory dues or rents of office and factory premises; (12)  the current liabilities exceeding current assets; (13)  any grave irregularities observed by the auditors of the borrowers which remain to be rectified; (14)  basic weakness revealed by the financial statements of the unit, for example, continued cash loss beyond one year.
• (ii)  The irregularities referred to in sub-clause (i) in the accounts of the borrowers are,— (1)  where the accounts are overdrawn beyond the drawing power or the sanctioned limit, for a temporary period; (2)  instalments in respect of term-loans are overdue for less than 6 months or import bills under letters of credit or instalments under deferred payment carried are overdue for less than 3 months; (3)  bills not exceeding 10% to 15% of the total outstandings in the bills purchased or discounted account of the borrower are overdue for payment for a period of less than 3 months and refund in respect of unpaid bills is not forthcoming immediately.
• (b) Â Advances recalled, i.e., where the repayment is highly doubtful and revival of the unit is not considered worthwhile and a decision has been taken to recall the advances.
• (c) Â Suit-filed accounts, i.e., where legal action or recovery proceedings have been initiated and suits are pending for recovery of advances.
• (d) Â Decreed debts, i.e., where suits have been filed and decree obtained and such decree is pending for execution. (e) Â Debts recoverability whereof has become doubtful on account of shortfalls in value of security, difficulty in enforcing and realising the securities, or inability or unwillingness of the borrower to repay the banks dues, partly or wholly, and such debts have not been included in preceding clauses (a) to (d).]

Rule-6EB, Income-tax Rules

• 6EB. The provisions of clause (b) of section 43D shall apply in the case of every public company where its income by way of interest pertains to the following categories of bad and doubtful debts, namely :—
• (a)(i) Â doubtful asset, that is, a debt which has remained a non-performing asset of the nature specified in sub-clause (ii) for a period exceeding two years;
• (ii)  non-performing asset referred to in sub-clause (i) shall be the following :— (1)  term loan beyond one year, if the interest amount remains “past due” for six months or instalment is overdue for more than six months; (2)  lease rental or hire purchase instalment, if the rental or the instalment is “past due” for six months; (3)  bill purchased or discounted, if the bill remains overdue and unpaid for six months; or (4)  any other credit facility in the nature of short term loan or advance [other than those referred to in (1), (2) and (3) above], if any amount to be received in respect of such a facility remains “past due” for a period of six months;
• (b) Â loss asset, that is, a debt which has been identified as loss and considered as uncollectible but has not been written off in the accounts of the assessee.
• Explanation.—For the purposes of this rule, an amount shall be deemed to be “past due” when it remains unpaid for thirty days beyond the due date.]

Rule-6F, Income-tax Rules

• 6F. (1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or authorised representative or film artist shall keep and maintain the books of account and other documents specified in sub-rule (2)Â :
• [Provided that nothing in this sub-rule shall apply in relation to any previous year in the case of any person if his total gross receipts in the profession do not exceed one lakh fifty thousand rupees in any one of the three years immediately preceding the previous year, or, where the profession has been newly set up in the previous year, his total gross receipts in the profession for that year are not likely to exceed the said amount.]
• (2) The books of account and other documents referred to in sub-rule (1) shall be the following, namely:—
• (i) Â a cash book; (ii) Â a journal, if the accounts are maintained according to the mercantile system of accounting; (iii) Â a ledger; [(iv) Â carbon copies of bills, whether machine numbered or otherwise serially numbered, wherever such bills are issued by the person, and carbon copies or counterfoils of machine numbered or otherwise serially numbered receipts issued by him: Â Provided that nothing in this clause shall apply in relation to sums not exceeding twenty-five rupees;] (v) Â original bills wherever issued to the person and receipts in respect of expenditure incurred by the person or, where such bills and receipts are not issued and the expenditure incurred does not exceed fifty rupees, payment vouchers prepared and signed by the person: Â [Provided that the requirements as to the preparation and signing of payment vouchers shall not apply in a case where the cash book maintained by the person contains adequate particulars in respect of the expenditure incurred by him.]
• Explanation : In this rule,— (a)  “authorised representative” means a person who represents any other person, on payment of any fee or remuneration before any Tribunal or authority constituted or appointed by or under any law for the time being in force, but does not include an employee of the person so represented or a person carrying on legal profession or a person carrying on the profession of accountancy; (b)  “cash book” means a record of all cash receipts and payments, kept and maintained from day-to-day and giving the cash balance in hand at the end of each day or at the end of a specified period not exceeding a [month]; (c)  “film artist” means any person engaged in his professional capacity in the production of a cinematograph film whether produced by him or by any other person, as— (i)  an actor; (ii)  a cameraman; (iii)  a director, including an assistant director; (iv)  a music director, including an assistant music director; (v)  an art director, including an assistant art director; (vi)  a dance director, including an assistant dance director; (vii)  an editor; (viii)  a singer; (ix)  a lyricist; (x)  a story writer; (xi)  a screen-play writer; (xii)  a dialogue writer; and (xiii)  a dress designer.
• (3) A person carrying on medical profession shall, in addition to the books of account and other documents specified in sub-rule (2), keep and maintain the following, namely :— (i)  a daily case register in Form No. 3C; (ii)  an inventory [under broad heads,] as on the first and the last day of the previous year, of the stock of drugs, medicines and other consumable accessories used for the purpose of his profession.
• (4) The books of account and other documents specified in sub-rule (2) and sub-rule (3) [other than those relating to a previous year which has come to an end] shall be kept and maintained by the person at the place where he is carrying on the profession or, where the profession is carried on in more places than one, at the principal place of his profession:
• (5) The books of account and other documents specified in sub-rule (2) and sub-rule (3) shall be kept and maintained for a period of [six] years from the end of the relevant assessment year:
• [(6) Notwithstanding anything contained in sub-rules (1) to (3), it shall not be necessary for any person carrying on any of the professions specified in sub-rule (1) to keep and maintain the books of account and other documents specified in sub-rule (2) or sub-rule (3) in relation to any previous year commencing before the [first day of March, 1983].]

Rule-8B, Income-tax Rules

• 8B. (1) An application by an infrastructure capital company or infrastructure capital fund or a public sector company for notification under clause (48) of section 2 of any zero coupon bond proposed to be issued by it shall be made in Form No. 5B at least three months before the date of issue of such bond:
• (2) Every application, under sub-rule (1), shall be accompanied by the following documents, namely:— (i)  where the application is made by any infrastructure capital company or a public sector company, being a Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956), a copy of certificate of incorporation under the Companies Act, 1956 (1 of 1956); (ii)  where the application is made by any infrastructure capital fund, a copy of the trust deed registered under the provisions of the Registration Act, 1908 (16 of 1908); (iii)  where the application is made by a public sector company, being any corporation, established by or under any Central or State or Provincial Act, a copy of the relevant Act.
• (3) The Central Government, while specifying a zero coupon bond by notification in the Official Gazette shall satisfy itself that the following conditions are fulfilled, namely:— (i)  the period of life of the bond is not less than ten years and not more than twenty years; (ii)  the infrastructure capital company or infrastructure capital fund or public sector company proposing to issue a zero coupon bond has an investment grade rating from at least two credit rating agencies registered under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (iii)  necessary arrangement has been made by the infrastructure capital company or infrastructure capital fund or public sector company for listing the zero coupon bond in a recognised stock exchange in India; (iv)  where the application is made by the infrastructure capital company or infrastructure capital fund, such company or fund shall furnish along with the application an undertaking that the money realised on issue of the zero coupon bond shall be invested by it in the following manner, namely:— (i)  twenty-five per cent or more of such realisation before the end of the financial year immediately following the financial year in which the bond is issued; (ii)  the balance of such realisation within a period of four financial years immediately following the financial year in which the bond is issued; (v)  where the application is made by a public sector company, such company shall furnish along with the application an undertaking that the money realised on issue of the zero coupon bond shall be invested or utilised by it in the following manner, namely:— (i)  fifteen per cent or more of such realisation before the end of the financial year immediately following the financial year in which the bond is issued; (ii)  the balance of such realisation within a period of six financial years immediately following the financial year in which the bond is issued.
• (4) The Central Government, after having satisfied itself about fulfilling of the conditions referred to in sub-rule (1), sub-rule (2) and sub-rule (3) shall specify the bond, by notification in the Official Gazette, giving therein, inter alia, the following particulars, namely:—
• (5) The Central Government may, if the applicant fails to fulfil the conditions referred to in sub-rule (1) or sub-rule (2) or sub-rule (3), reject the application for notification after giving an opportunity of being heard to the infrastructure capital company or infrastructure capital fund or public sector company, as the case may be.
• (6) Every infrastructure capital company or infrastructure capital fund or public sector company shall submit within two months from the end of each financial year referred to in sub-clause (i) or sub-clause (ii) of clause (iv) of sub-rule (3), or, as the case may be, in sub-clause (i) or sub-clause (ii) of clause (v) of sub-rule (3), a certificate from an accountant as defined in the Explanation to sub-section (2) of section 288, specifying the amount invested in each year.
• (7) The Central Government shall have the power to withdraw the notification if the applicant fails to fulfil any of the conditions referred to in sub-rule (3) or sub-rule (6).

Rule-9A, Income-tax Rules

• 9A. [(1) In computing the profits and gains of the business of production of feature films carried on by a person (the person carrying on such business hereafter in this rule referred to as film producer), the deduction in respect of the cost of production of a feature film certified for release by the Board of Film Censors in a previous year shall be allowed in accordance with the provisions of sub-rule (2) to sub-rule (4). Explanation : In this rule,— (i)  “Board of Film Censors” means the Board of Film Censors constituted under the Cinematograph Act, 1952 (37 of 1952); (ii)  “cost of production”, in relation to a feature film, means the expenditure incurred on the production of the film, not being— (a)  the expenditure incurred for the preparation of the positive prints of the film; and (b)  the expenditure incurred in connection with the advertisement of the film after it is certified for release by the Board of Film Censors:]
• (2) Where a [***] feature film is certified for release by the Board of Film Censors in any previous year and in such previous year,— (a)  the film producer sells all rights of exhibition of the film, the entire cost of production of the film shall be allowed as a deduction in computing the profits and gains of such previous year; or (b)  the film producer— (i)  himself exhibits the film on a commercial basis in all or some of the areas; or (ii)  sells the rights of exhibition of the film in respect of some of the areas; or (iii)  himself exhibits the film on a commercial basis in certain areas and sells the rights of exhibition of the film in respect of all or some of the remaining areas, and the film is released for exhibition on a commercial basis at least [ninety] days before the end of such previous year, the entire cost of production of the film shall be allowed as a deduction in computing the profits and gains of such previous year.
• (3) Where a [***] feature film is certified for release by the Board of Film Censors in any previous year and in such previous year, the film producer— (a)  himself exhibits the film on a commercial basis in all or some of the areas; or (b)  sells the rights of exhibition of the film in respect of some of the areas; or (c)  himself exhibits the film on a commercial basis in certain areas and sells the rights of exhibition of the film in respect of all or some of the remaining areas, and the film is not released for exhibition on a commercial basis at least [ninety] days before the end of such previous year, the cost of production of the film in so far as it does not exceed the amount realised by the film producer by exhibiting the film on a commercial basis or the amount for which the rights of exhibition are sold or, as the case may be, the aggregate of the amounts realised by the film producer by exhibiting the film and by the sale of the rights of exhibition, shall be allowed as a deduction in computing the profits and gains of such previous year; and the balance, if any, shall be carried forward to the next following previous year and allowed as a deduction in that year.
• (4) Where, during the previous year in which a [***] feature film is certified for release by the Board of Film Censors, the film producer does not himself exhibit the film on a commercial basis or does not sell the rights of exhibition of the film, no deduction shall be allowed in respect of the cost of production of the film in computing the profits and gains of such previous year; and the entire cost of production of the film shall be carried forward to the next following previous year and allowed as a deduction in that year.
• [(5)] Notwithstanding anything contained in the foregoing provisions of this rule, the deduction under this rule shall not be allowed unless,— (a)  in a case where the film producer— (i)  has himself exhibited the feature film on a commercial basis; or (ii)  has sold the rights of exhibition of the feature film; or [(iii)  has himself exhibited the feature film on a commercial basis in some areas and has sold the rights of exhibition of the feature film in respect of all or some of the remaining areas,]  the amount realised by exhibiting the film, or the amount for which the rights of exhibition have been sold or, as the case may be, the aggregate of such amounts, is credited in the books of account maintained by him in respect of the year in which the deduction is admissible; (b)  in a case where the film producer has transferred the rights of exhibition of the feature film on a minimum guarantee basis, the minimum amount guaranteed and the amount, if any, received or due in excess of the guaranteed amount or where the film producer follows cash system of accounting, the amount received towards the minimum guarantee and the amount, if any, received in excess of the guaranteed amount, are credited in the books of account maintained by him in respect of the year in which the deduction is admissible.

Rule-9B, Income-tax Rules

• 9B. (1) In computing the profits and gains of the business of distribution of feature films carried on by a person (the person carrying on such business hereafter in this rule referred to as film distributor), the deduction in respect of the cost of acquisition of a feature film shall be allowed in accordance with sub-rule (2) to sub-rule (4).
• (2) Where a feature film is acquired by the film distributor in any previous year and in such previous year— (a)  the film distributor sells all rights of exhibition of the film, the entire cost of acquisition of the film shall be allowed as a deduction in computing the profits and gains of such previous year; or (b)  the film distributor,— (i)  himself exhibits the film on a commercial basis in all or some of the areas; or (ii)  sells the rights of exhibition of the film in respect of some of the areas; or (iii)  himself exhibits the film on a commercial basis in certain areas and sells the rights of exhibition of the film in respect of all or some of the remaining areas, and the film is released for exhibition on a commercial basis at least [ninety] days before the end of such previous year, the entire cost of acquisition of the film shall be allowed as a deduction in computing the profits and gains of such previous year.
• (3) Where a feature film is acquired by the film distributor in any previous year and in such previous year the film distributor— (a)  himself exhibits the film on a commercial basis in all or some of the areas; or (b)  sells the rights of exhibition of the film in respect of some of the areas; or (c)  himself exhibits the film on a commercial basis in certain areas and sells the rights of exhibition of the film in respect of all or some of the remaining areas, and the film is not released for exhibition on a commercial basis at least [ninety] days before the end of such previous year, the cost of acquisition of the film in so far as it does not exceed the amount realised by the film distributor by exhibiting the film on a commercial basis or the amount for which the rights of exhibition have been sold or, as the case may be, the aggregate of the amounts realised by the film distributor by exhibiting the film and by the sale of the rights of exhibition, shall be allowed as a deduction in computing the profits and gains of such previous year; and the balance, if any, shall be carried forward to the next following previous year and allowed as a deduction in that year.
• (4) Where during the previous year in which a feature film is acquired by the film distributor, he does not himself exhibit the film on a commercial basis or does not sell the rights of exhibition of the film, no deduction shall be allowed in respect of the cost of acquisition of the film in computing the profits and gains of such previous year; and the entire cost of acquisition shall be carried forward to the next following previous year and allowed as a deduction in that year.

Rule-9C, Income-tax Rules

• 9C. The conditions referred to in clause (iii) of sub-section (2) of section 72A shall be the following, namely :— (a)  the amalgamated company, owning an industrial undertaking of the amalgamating company by way of amalgamation, shall achieve the level of production of at least fifty per cent of the installed capacity of the said undertaking before the end of four years from the date of amalgamation and continue to maintain the said minimum level of production till the end of five years from the date of amalgamation :  Provided that the Central Government, on an application made by the amalgamated company, may relax the condition of achieving the level of production or the period during which the same is to be achieved or both in suitable cases having regard to the genuine efforts made by the amalgamated company to attain the prescribed level of production and the circumstances preventing such efforts from achieving the same; (b)  the amalgamated company shall furnish to the Assessing Officer a certificate in Form No. 62, duly verified by an accountant, with reference to the books of account and other documents showing particulars of production, along with the return of income for the assessment year relevant to the previous year during which the prescribed level of production is achieved and for subsequent assessment years relevant to the previous years falling within five years from the date of amalga-mation. Explanation.—For the purposes of this rule,— (a)  “installed capacity” means the capacity of production existing on the date of amalgamation; and (b)  “accountant” means the accountant as defined in the Explanation below sub-section (2) of section 288 of the Income-tax Act, 1961.]

Rule-10A, Income-tax Rules

• 10A. For the purposes of this rule and rules [10AB] to 10E,— [(a)  "associated enterprise" shall,— (i)  have the same meaning as assigned to it in section 92A; and (ii)  in relation to a specified domestic transaction entered into by an assessee, include — (A)  the persons referred to in clause (b) of sub-section (2) of section 40A in respect of a transaction referred to in clause (a) of sub-section (2) of the said section; (B)  other units or undertakings or businesses of such assessee in respect of a transaction referred to in section 80A or, as the case may be, sub-section (8) of section 80-IA; (C)  any other person referred to in sub-section (10) of section 80-IA in respect of a transaction referred to therein; (D)  other units, undertakings, enterprises or business of such assessee, or other person referred to in sub-section (10) of section 80-IA, as the case may be, in respect of a transaction referred to in section 10AA or the transactions referred to in Chapter VI-A to which the provisions of sub-section (8) or, as the case may be, the provisions of sub-section (10) of section 80-IA are applicable; (aa)  "enterprise" shall have the same meaning as assigned to it in clause (iii) of section 92F and shall, for the purposes of a specified domestic transaction, include a unit, or an enterprise, or an undertaking or a business of a person who undertakes such transaction;] [(ab)]  "uncontrolled transaction" means a transaction between enterprises other than associated enterprises, whether resident or non-resident; (b)  "property" includes goods, articles or things, and intangible property; (c)  "services" include financial services; (d)  "transaction" includes a number of closely linked transactions.

Rule-10B, Income-tax Rules

• 10B . (1) For the purposes of sub-section (2) of section 92C, the arm`s length price in relation to an international transaction [or a specified domestic transaction] shall be determined by any of the following methods, being the most appropriate method, in the following manner, namely :—
• 10B . (1) For the purposes of sub-section (2) of section 92C, the arm`s length price in relation to an international transaction [or a specified domestic transaction] shall be determined by any of the following methods, being the most appropriate method, in the following manner, namely :—
• [ (f)  any other method as provided in rule 10AB. ] (2) For the purposes of sub-rule (1), the comparability of an international transaction [or a specified domestic transaction] with an uncontrolled transaction shall be judged with reference to the following, namely:— (a)  the specific characteristics of the property transferred or services provided in either transaction; (b)  the functions performed, taking into account assets employed or to be employed and the risks assumed, by the respective parties to the transactions; (c)  the contractual terms (whether or not such terms are formal or in writing) of the transactions which lay down explicitly or implicitly how the responsibilities, risks and benefits are to be divided between the respective parties to the transactions; (d)  conditions prevailing in the markets in which the respective parties to the transactions operate, including the geographical location and size of the markets, the laws and Government orders in force, costs of labour and capital in the markets, overall economic development and level of competition and whether the markets are wholesale or retail.
• (3) An uncontrolled transaction shall be comparable to an international transaction [or a specified domestic transaction] if— (i)  none of the differences, if any, between the transactions being compared, or between the enterprises entering into such transactions are likely to materially affect the price or cost charged or paid in, or the profit arising from, such transactions in the open market; or (ii)  reasonably accurate adjustments can be made to eliminate the material effects of such differences. (4) The data to be used in analysing the comparability of an uncontrolled transaction with an international transaction [or a specified domestic transaction] shall be the data relating to the financial year [(hereafter in this rule and in rule 10CA referred to as the `current year`)] in which the international transaction [or the specified domestic transaction] has been entered into :
• [ (5) In a case where the most appropriate method for determination of the arm`s length price of an international transaction or a specified domestic transaction, entered into on or after the 1st day of April, 2014, is the method specified in clause (b), clause (c) or clause (e) of sub-section (1) of section 92C, then, notwithstanding anything contained in sub-rule (4), the data to be used for analysing the comparability of an uncontrolled transaction with an international transaction or a specified domestic transaction shall be,— (i)  the data relating to the current year; or (ii)  the data relating to the financial year immediately preceding the current, if the data relating to the current year is not available at the time of furnishing the return of income by the assessee, for the assessment year relevant to the current year: Provided that where the data relating to the current year is subsequently available at the time of determination of arm`s length price of an international transaction or a specified domestic transaction during the course of any assessment proceeding for the assessment year relevant to the current year, then, such data shall be used for such determination irrespective of the fact that the data was not available at the time of furnishing the return of income of the relevant assessment year.]

Rule-10D, Income-tax Rules

• 10D . (1) Every person who has entered into an international transaction [or a specified domestic transaction] shall keep and maintain the following information and documents, namely:— (a)  a description of the ownership structure of the assessee enterprise with details of shares or other ownership interest held therein by other enterprises; (b)  a profile of the multinational group of which the assessee enterprise is a part along with the name, address, legal status and country of tax residence of each of the enterprises comprised in the group with whom international transactions [or specified domestic transactions, as the case may be,] have been entered into by the assessee, and ownership linkages among them; (c)  a broad description of the business of the assessee and the industry in which the assessee operates, and of the business of the associated enterprises with whom the assessee has transacted; (d)  the nature and terms (including prices) of international transactions [or specified domestic transactions] entered into with each associated enterprise, details of property transferred or services provided and the quantum and the value of each such transaction or class of such transaction; (e)  a description of the functions performed, risks assumed and assets employed or to be employed by the assessee and by the associated enterprises involved in the international transaction [or the specified domestic transaction] ; (f)  a record of the economic and market analyses, forecasts, budgets or any other financial estimates prepared by the assessee for the business as a whole and for each division or product separately, which may have a bearing on the international transactions [or the specified domestic transactions] entered into by the assessee; (g)  a record of uncontrolled transactions taken into account for analysing their comparability with the international transactions [or the specified domestic transactions] entered into, including a record of the nature, terms and conditions relating to any uncontrolled transaction with third parties which may be of relevance to the pricing of the international transactions [or specified domestic transactions, as the case may be] ; (h)  a record of the analysis performed to evaluate comparability of uncontrolled transactions with the relevant international transaction [or specified domestic transaction] ; (i)  a description of the methods considered for determining the arm`s length price in relation to each international transaction [or specified domestic transaction] or class of transaction, the method selected as the most appropriate method along with explanations as to why such method was so selected, and how such method was applied in each case; (j)  a record of the actual working carried out for determining the arm`s length price, including details of the comparable data and financial information used in applying the most appropriate method, and adjustments, if any, which were made to account for differences between the international transaction [or the specified domestic transaction] and the comparable uncontrolled transactions, or between the enterprises entering into such transactions; (k)  the assumptions, policies and price negotiations, if any, which have critically affected the determination of the arm`s length price; (l)  details of the adjustments, if any, made to transfer prices to align them with arm`s length prices determined under these rules and consequent adjustment made to the total income for tax purposes; (m)  any other information, data or document, including information or data relating to the associated enterprise, which may be relevant for determination of the arm`s length price.
• [(2A) Nothing contained in sub-rule (1), in so far as it relates to an eligible specified domestic transaction referred to in rule 10THB, shall apply in a case of an eligible assessee mentioned in rule 10THA and— (a)  the eligible assessee, referred to in clause (i) of rule 10THA, shall keep and maintain the following information and documents, namely:— (i)  a desciption of the ownership structure of the assessee enterprise with details of shares or other ownership interest held therein by other enterprises; (ii)  a broad description of the business of the assessee and the industry in which the assessee operates, and of the business of the associated enterprises with whom the assessee has transacted; (iii)  the nature and terms (including prices) of specified domestic transactions entered into with each associated enterprise and the quantum and value of each such transaction or class of such transaction; (iv)  a record of proceedings, if any, before the regulatory commission and orders of such commission relating to the specified domestic transaction; (v)  a record of the actual working carried out for determining the transfer price of the specified domestic transaction; (vi)  the assumptions, policies and price negotiations, if any, which have critically affected the determination of the transfer price; and (vii)  any other information, data or document, including information or data relating to the associated enterprise, which may be relevant for determination of the transfer price; (b)  the eligible assessee, referred to in clause (ii) of rule 10THA, shall keep and maintain the following information and documents, namely:— (i)  a description of the ownership structure of the assessee co-operative society with details of shares or other ownership interest held therein by the members; (ii)  description of members including their addresses and period of membership; (iii)  the nature and terms (including prices) of specified domestic transactions entered into with each member and the quantum and value of each such transaction or class of such transaction; (iv)  a record of the actual working carried out for determining the transfer price of the specified domestic transaction; (v)  the assumptions, policies and price negotiations, if any, which have critically affected the determination of the transfer price; (vi)  the documentation regarding price being routinely declared in transparent manner and being available in public domain; and (vii)  any other information, data or document which may be relevant for determination of the transfer price.]
• (3) The information specified in [sub-rules (1) and (2A)] shall be supported by authentic documents, which may include the following : (a) Â official publications, reports, studies and data bases from the Government of the country of residence of the associated enterprise, or of any other country; (b) Â reports of market research studies carried out and technical publications brought out by institutions of national or international repute; (c) Â price publications including stock exchange and commodity market quotations; (d) Â published accounts and financial statements relating to the business affairs of the associated enterprises; (e) Â agreements and contracts entered into with associated enterprises or with unrelated enterprises in respect of transactions similar to the international transactions [or the specified domestic transactions, as the case may be]; (f) Â letters and other correspondence documenting any terms negotiated between the assessee and the associated enterprise; (g) Â documents normally issued in connection with various transactions under the accounting practices followed. (4) The information and documents specified under [sub-rules (1), (2) and (2A)], should, as far as possible, be contemporaneous and should exist latest by the specified date referred to in clause (iv) of section 92F:
• (5) The information and documents specified in [sub-rules (1), (2) and (2A)] shall be kept and maintained for a period of eight years from the end of the relevant assessment year.

Rule-10F, Income-tax Rules

• 10F . For the purposes of this rule and rules 10G to 10T,— (a)  "agreement" means an advance pricing agreement entered into between the Board and the applicant, with the approval of the Central Government, as referred to in sub-section (1) of section 92CC of the Act; (b)  "application" means an application for advance pricing agreement made under rule 10-I; [(ba)  "applicant" means a person who has made an application;] (c)  "bilateral agreement" means an agreement between the Board and the applicant, subsequent to, and based on, any agreement referred to in rule 44GA between the competent authority in India with the competent authority in the other country regarding the most appropriate transfer pricing method or the arms` length price; (d)  "competent authority in India" means an officer authorised by the Central Government for the purpose of discharging the functions as such for matters in respect of any agreement entered into under section 90 or 90A of the Act; (e)  "covered transaction" means the international transaction or transactions for which agreement has been entered into; (f)  "critical assumptions" means the factors and assumptions that are so critical and significant that neither party entering into an agreement will continue to be bound by the agreement, if any of the factors or assumptions is changed; (g)  "most appropriate transfer pricing method" means any of the transfer pricing method, referred to in sub-section (1) of section 92C of the Act, being the most appropriate method, having regard to the nature of transaction or class of transaction or class of associated persons or function performed by such persons or such other relevant factors prescribed by the Board under rules 10B and 10C; (h)  "multilateral agreement" means an agreement between the Board and the applicant, subsequent to, and based on, any agreement referred to in rule 44GA between the competent authority in India with the competent authorities in the other countries regarding the most appropriate transfer pricing method or the arms` length price; [(ha)  "rollback year" means any previous year, falling within the period not exceeding four previous years, preceding the first of the previous years referred to in sub-section (4) of section 92CC;] (i)  "tax treaty" means an agreement under section 90, or section 90A of the Act for the avoidance of double taxation; (j)  "team" means advance pricing agreement team consisting of income-tax authorities as constituted by the Board and including such number of experts in economics, statistics, law or any other field as may be nominated by the Director General of Income-tax (International Taxation); (k)  "unilateral agreement" means an agreement between the Board and the applicant which is neither a bilateral nor multilateral agreement.

Rule-10H, Income-tax Rules

Rule-10-I, Income-tax Rules

• 10-I . (1) Any person, [referred to in rule 10G] may, if desires to enter into an agreement furnish an application in Form No. 3CED along with the requisite fee.
• (2) The application shall be furnished to Director General of Income-tax (International Taxation) in case of unilateral agreement and to the competent authority in India in case of bilateral or multilateral agreement.
• (3) Application in Form No. 3CED may be filed by the person referred to in rule 10G at any time— (i)  before the first day of the previous year relevant to the first assessment year for which the application is made, in respect of transactions which are of a continuing nature from dealings that are already occurring; or (ii)  before undertaking the transaction in respect of remaining transactions.
• (4) Every application in Form No. 3CED shall be accompanied by the proof of payment of fees as specified in sub-rule (5).
• (5) The fees payable shall be in accordance with following table based on the amount of international transaction entered into or proposed to be undertaken in respect of which the agreement is proposed:
• Amount of international transaction entered into or proposed to be undertaken in respect of which agreement is proposed during the proposed period of agreement.
• Amount not exceeding Rs. 100 crores 10 lacs
• Amount not exceeding Rs. 200 crores 15 lacs
• Amount exceeding Rs. 200 crores 20 lacs

Rule-10J, Income-tax Rules

• 10J. (1) The applicant may withdraw the application for agreement at any time before the finalisation of the terms of the agreement. (2) The application for withdrawal shall be in Form No. 3CEE. (3) The fee paid shall not be refunded on withdrawal of application by the applicant.

Rule-10L, Income-tax Rules

• 10L. (1) If the application referred to in rule 10K has been allowed to be proceeded with, the team or the competent authority in India or his representative shall process the same in consultation and discussion with the applicant in accordance with provisions of this rule.
• (2) For the purpose of sub-rule (1), it shall be competent for the team or the competent authority in India or its representative to— (i)  hold meetings with the applicant on such time and date as it deem fit; (ii)  call for additional document or information or material from the applicant; (iii)  visit the applicant`s business premises; or (iv)  make such inquiries as it deems fit in the circumstances of the case
• (3) For the purpose of sub-rule (1), the applicant may, if he considers it necessary, provide further document and information for consideration of the team or the competent authority in India or his representative.
• (4) For bilateral or multilateral agreement, the competent authority shall forward the application to Director General of Income-tax (International Taxation) who shall assign it to one of the teams.
• (5) The team, to whom the application has been assigned under sub-rule (4), shall carry out the enquiry and prepare a draft report which shall be forwarded by the Director General of Income-tax (International Taxation) to the competent authority in India.
• (6) If the applicant makes a request for bilateral or multilateral agreement in its application, the competent authority in India shall in addition to the procedure provided in this rule invoke the procedure provided in rule 44GA.
• (7) The Director General of Income-tax (International Taxation) (for unilateral agreement) or the competent authority in India (for bilateral or multilateral agreement) and the applicant shall prepare a proposed mutually agreed draft agreement enumerating the result of the process referred to in sub-rule (1) including the effect of the arrangement referred to in sub-rule (5) of rule 44GA which has been accepted by the applicant in accordance with sub-rule (8) of the said rule.
• (8) The agreement shall be entered into by the Board with the applicant after its approval by the Central Government.
• (9) Once an agreement has been entered into the Director General of Income-tax (International Taxation) or the competent authority in India, as the case may be, shall cause a copy of the agreement to be sent to the Commissioner of Income-tax having jurisdiction over the assessee.

Rule-10N, Income-tax Rules

• 10N. (1) An applicant may request in writing for an amendment to an application at any stage, before the finalisation of the terms of the agreement. (2) The Director General of Income-tax (International Taxation) (for unilateral agreement) or the competent authority in India (for bilateral or multilateral agreement) may, allow the amendment to the application, if such an amendment does not have effect of altering the nature of the application as originally filed. (3) The amendment shall be given effect only if it is accompanied by the additional fee, if any, necessitated by such amendment in accordance with fee as provided in rule 10-I.

Rule-10P, Income-tax Rules

• 10P. (1) The Transfer Pricing Officer having the jurisdiction over the assessee shall carry out the compliance audit of the agreement for each of the year covered in the agreement.
• (2) For the purposes of sub-rule (1), the Transfer Pricing Officer may require— (i)  the assessee to substantiate compliance with the terms of the agreement, including satisfaction of the critical assumptions, correctness of the supporting data or information and consistency of the application of the transfer pricing method; (ii)  the assessee to submit any information, or document, to establish that the terms of the agreement has been complied with.
• (3) The Transfer Pricing Officer shall submit the compliance audit report, for each year covered in the agreement, to the Director General of Income-tax (International Taxation) in case of unilateral agreement and to the competent authority in India, in case of bilateral or multilateral agreement, mentioning therein his findings as regards compliance by the assessee with terms of the agreement.
• (4) The Director General of Income-tax (International Taxation) shall forward the report to the Board in a case where there is finding of failure on part of assessee to comply with terms of agreement and cancellation of the agreement is required.
• (5) The compliance audit report shall be furnished by the Transfer Pricing Officer within six months from the end of the month in which the Annual Compliance Report referred to in rule 10-O is received by the Transfer Pricing Officer.
• (6) The regular audit of the covered transactions shall not be undertaken by the Transfer Pricing Officer if an agreement has been entered into under rule 10L except where the agreement has been cancelled under rule 10R.

Rule-10Q, Income-tax Rules

• 10Q. (1) An agreement, subsequent to it having been entered into, may be revised by the Board, if,— (a)  there is a change in critical assumptions or failure to meet a condition subject to which the agreement has been entered into; (b)  there is a change in law that modifies any matter covered by the agreement but is not of the nature which renders the agreement to be non-binding ; or (c)  there is a request from competent authority in the other country requesting revision of agreement, in case of bilateral or multilateral agreement.
• (2) An agreement may be revised by the Board either suo motu or on request of the assessee or the competent authority in India or the Director General of Income-tax (International Taxation).
• (3) Except when the agreement is proposed to be revised on the request of the assessee, the agreement shall not be revised unless an opportunity of being heard has been provided to the assessee and the assessee is in agreement with the proposed revision.
• (4) In case the assessee is not in agreement with the proposed revision the agreement may be cancelled in accordance with rule 10R.
• (5) In case the Board is not in agreement with the request of the assessee for revision of the agreement, the Board shall reject the request in writing giving reason for such rejection.
• (6) For the purpose of arriving at the agreement for the proposed revision, the procedure provided in rule 10L may be followed so far as they apply.
• (7) The revised agreement shall include the date till which the original agreement is to apply and the date from which the revised agreement is to apply.

Rule-10R, Income-tax Rules

• 10R . (1) An agreement shall be cancelled by the Board for any of the following reasons: (i) Â the compliance audit referred to in rule 10P has resulted in the finding of failure on the part of the assessee to comply with the terms of the agreement; (ii) Â the assessee has failed to file the annual compliance report in time; (iii) Â the annual compliance report furnished by the assessee contains material errors; or (iv) Â the agreement is to be cancelled under sub-rule (4) of rule 10Q [or sub-rule (7) of rule 10RA].
• (2) The Board shall give an opportunity of being heard to the assessee, before proceeding to cancel an application.
• (3) The competent authority in India shall communicate with the competent authority in the other country or countries and provide reason for the proposed cancellation of the agreement in case of bilateral or multilateral agreement.
• (4) The order of cancellation of the agreement shall be in writing and shall provide reasons for cancellation and for non-acceptance of assessee`s submission, if any.
• (5) The order of cancellation shall also specify the effective date of cancellation of the agreement, where applicable.
• (6) The order under the Act, declaring the agreement as void ab initio, on account of fraud or misrepresentation of facts, shall be in writing and shall provide reason for such declaration and for non-acceptance of assessee`s submission, if any.
• (7) The order of cancellation shall be intimated to the Assessing Officer and the Transfer Pricing Officer, having jurisdiction over the assessee.

Rule-10TA, Income-tax Rules

• 10TA. For the purposes of this rule and rule 10TB to rule 10TG,—
• a) "accountant" means an accountant referred to in the Explanation below sub-section (2) of section 288 of the Act and includes any person recognised for undertaking cost certification by the Government of the country where the associated enterprise is registered or incorporated or any of its agencies, who fulfils the following conditions, namely:— (I) if he is a member or partner in any entity engaged in rendering accountancy or valuation services then,— (i) the entity or its affiliates have presence in more than two countries; and (ii) the annual receipt of the entity in the year preceding the year in which cost certification is undertaken exceeds ten crore rupees; (II) if he is pursuing the profession of accountancy individually or is a valuer then,— (i) his annual receipt in the year preceding the year in which cost certification is undertaken, from the exercise of profession, exceeds one crore rupees; and (ii) he has professional experience of not less than ten years.]
• aa)] "contract research and development services wholly or partly relating to software development" means the following, namely:— (i) research and development producing new theorems and algorithms in the field of theoretical computer science; (ii) development of information technology at the level of operating systems, programming languages, data management, communications software and software development tools; (iii) development of Internet technology; (iv) research into methods of designing, developing, deploying or maintaining software; (v) software development that produces advances in generic approaches for capturing, transmitting, storing, retrieving, manipulating or displaying information; (vi) experimental development aimed at filling technology knowledge gaps as necessary to develop a software programme or system; (vii) research and development on software tools or technologies in specialised areas of computing (image processing, geographic data presentation, character recognition, artificial intelligence and such other areas);or (viii) upgradation of existing products where source code has been made available by the principal 3[, except where the source code has been made available to carry out routine functions like debugging of the software];
• (b) "core auto components" means,— (i) engine and engine parts, including piston and piston rings, engine valves and parts cooling systems and parts and power train components; (ii) transmission and steering parts, including gears, wheels, steering systems, axles and clutches; (iii) suspension and braking parts, including brake and brake assemblies, brake linings, shock absorbers and leaf springs; (c) "corporate guarantee" means explicit corporate guarantee extended by a company to its wholly owned subsidiary being a non-resident in respect of any short-term or long-term borrowing. Explanation.—For the purposes of this clause, explicit corporate guarantee does not include letter of comfort, implicit corporate guarantee, performance guarantee or any other guarantee of similar nature;
• (ca) "employee cost" includes,— (i) salaries and wages; (ii) gratuities; (iii) contribution to Provident Fund and other funds; (iv) the value of perquisites as specified in clause (2) of section 17 of the Act; (v) employment related allowances, like medical allowance, dearness allowance, travel allowance and any other allowance; (vi) bonus or commission by whatever name called; (vii) lump sum payments received at the time of termination of service or superannuation or voluntary retirement, such as gratuity, severance pay, leave encashment, voluntary retrenchment benefits, commutation of pension and similar payments; (viii) expenses incurred on contractual employment of persons performing tasks similar to those performed by the regular employees; (ix) outsourcing expenses, to the extent of employee cost, wherever ascertainable, embedded in the total outsourcing expenses:
• Provided that where the extent of employee cost embedded in the total outsourcing expenses is not ascertainable, eighty per cent of the total outsourcing expenses shall be deemed to be the employee cost embedded in the total outsourcing expenses; (x) recruitment expenses; (xi) relocation expenses; (xii) training expenses; (xiii) staff welfare expenses; and (xiv) any other expenses related to employees or the employment;]
• (d) "generic pharmaceutical drug" means a drug that is comparable to a drug already approved by the regulatory authority in dosage form, strength, route of administration, quality and performance characteristics, and intended use; (e) "information technology enabled services" means the following business process outsourcing services provided mainly with the assistance or use of information technology, namely:— (i) back office operations; (ii) call centres or contact centre services; (iii) data processing and data mining; (iv) insurance claim processing; (v) legal databases; (vi) creation and maintenance of medical transcription excluding medical advice; (vii) translation services;
• iii) payroll; (ix) remote maintenance; (x) revenue accounting; (xi) support centres; (xii) website services; (xiii) data search integration and analysis; (xiv) remote education excluding education content development; or (xv) clinical database management services excluding clinical trials, but does not include any research and development services whether or not in the nature of contract research and development services; (f) "intra-group loan" means loan advanced to wholly owned subsidiary being a non-resident, where the loan— (i) is sourced in Indian rupees; (ii) is not advanced by an enterprise, being a financial company including a bank or a financial institution or an enterprise engaged in lending or borrowing in the normal course of business; and (iii) does not include credit line or any other loan facility which has no fixed term for repayment; (g) "knowledge process outsourcing services" means the following business process outsourcing services provided mainly with the assistance or use of information technology requiring application of knowledge and advanced analytical and technical skills, nam
• (i) geographic information system; (ii) human resources services; (iii) engineering and design services; (iv) animation or content development and management; (v) business analytics; (vi) financial analytics; or (vii) market research, but does not include any research and development services whether or not in the nature of contract research and development services;
• a) "low value-adding intra-group services" means services that are performed by one or more members of a multinational enterprise group on behalf of one or more other members of the same multinational enterprise group and which,— (i) are in the nature of support services; (ii) are not part of the core business of the multinational enterprise group, i.e., such services neither constitute the profit-earning activities nor contribute to the economically significant activities of the multinational enterprise group; (iii) are not in the nature of shareholder services or duplicate services; (iv) neither require the use of unique and valuable intangibles nor lead to the creation of unique and valuable intangibles; (v) neither involve the assumption or control of significant risk by the service provider nor give rise to the creation of significant risk for the service provider; and (vi) do not have reliable external comparable services that can be used for determining their arm's length price, but does not include the following services, namely:—
• (i) research and development services; (ii) manufacturing and production services; (iii) information technology (software development) services; (iv) knowledge process outsourcing services; (v) business process outsourcing services; (vi) purchasing activities of raw materials or other materials that are used in the manufacturing or production process; (vii) sales, marketing and distribution activities; (viii) financial transactions; (ix) extraction, exploration, or processing of natural resources; and (x) insurance and reinsurance;]
• (ix) extraction, exploration, or processing of natural resources; and (x) insurance and reinsurance;] (h) "non-core auto components" mean auto components other than core auto components; (i) "no tax or low tax country or territory" means a country or territory in which the maximum rate of income-tax is less than fifteen per cent; (j) "operating expense" means the costs incurred in the previous year by the assessee in relation to the international transaction during the course of its normal operations including 6[costs relating to Employee Stock Option Plan or similar stock-based compensation provided for by the associated enterprises of the assessee to the employees of the assessee, reimbursement to associated enterprises of expenses incurred by the associated enterprises on behalf of the assessee, amounts recovered from associated enterprises on account of expenses incurred by the assessee on behalf of those associated enterprises and which relate to normal operations of the assessee and] depreciation and amortisation expenses relating to the assets used by the assessee, but not including the following, namely:— (i) interest expense; (ii) provision for unascertained liabilities; (iii) pre-operating expenses; (iv) loss arising on account of foreign currency fluctuations; (v) extraordinary expenses; (vi) loss on transfer of assets or investments; (vii) expense on account of income-tax; and (viii) other expenses not relating to normal operations of the assessee:
• 7[Provided that reimbursement to associated enterprises of expenses incurred by the associated enterprises on behalf of the assessee shall be at cost: Provided further that amounts recovered from associated enterprises on account of expenses incurred by the assessee on behalf of the associated enterprises and which relate to normal operations of the assessee shall be at cost;] (k) "operating revenue" means the revenue earned by the assessee in the previous year in relation to the international transaction during the course of its normal operations 8[including costs relating to Employee Stock Option Plan or similar stock-based compensation provided for by the associated enterprises of the assessee to the employees of the assessee] but not including the following, namely:— (i) interest income; (ii) income arising on account of foreign currency fluctuations; (iii) income on transfer of assets or investments; (iv) refunds relating to income-tax; (v) provisions written back; (vi) extraordinary incomes; and (vii) other incomes not relating to normal operations of the assessee.
• (l) "operating profit margin" in relation to operating expense means the ratio of operating profit, being the operating revenue in excess of operating expense, to the operating expense expressed in terms of percentage; 9[(la) "relevant previous year" means the previous year relevant to the assessment year in which the option for safe harbour is validly exercised;] (m) "software development services" means,— (i) business application software and information system development using known methods and existing software tools; (ii) support for existing systems; (iii) converting or translating computer languages; (iv) adding user functionality to application programmes; (v) debugging of systems; (vi) adaptation of existing software; or (vii) preparation of user documentation, but does not include any research and development services whether or not in the nature of contract research and development services.]

Rule-10TB, Income-tax Rules

• 10TB. (1) Subject to the provisions of sub-rules (2) and (3), the 'eligible assessee' means a person who has exercised a valid option for application of safe harbour rules in accordance with rule 10TE, and—
• (i) is engaged in providing software development services or information technology enabled services or knowledge process outsourcing services, with insignificant risk, to a non-resident associated enterprise (hereinafter referred as foreign principal); (ii) has made any intra-group loan; (iii) has provided a corporate guarantee; (iv) is engaged in providing contract research and development services wholly or partly relating to software development, with insignificant risk, to a foreign principal; (v) is engaged in providing contract research and development services wholly or partly relating to generic pharmaceutical drugs, with insignificant risk, to a foreign principal; 1[***] (vi) is engaged in the manufacture and export of core or non-core auto components and where ninety per cent or more of total turnover during the relevant previous year is in the nature of original equipment manufacturer sales 2[; or] 3[(vii) is in receipt of low value-adding intra-group services from one or more members of its group.]
• (2) For the purposes of identifying an eligible assessee, with insignificant risk, referred to in item (i) of sub-rule (1), the Assessing Officer or the Transfer Pricing Officer, as the case may be, shall have regard to the following factors, namely:— (a) the foreign principal performs most of the economically significant functions involved, including the critical functions such as conceptualisation and design of the product and providing the strategic direction and framework, either through its own employees or through its other associated enterprises, while the eligible assessee carries out the work assigned to it by the foreign principal; (b) the capital and funds and other economically significant assets including the intangibles required, are provided by the foreign principal or its other associated enterprises, and the eligible assessee is only provided a remuneration for the work carried out by it; (c) the eligible assessee works under the direct supervision of the foreign principal or its associated enterprise which not only has the capability to control or supervise but also actually controls or supervises the activities carried out through its strategic decisions to perform core functions as well as by monitoring activities on a regular basis; (d) the eligible assessee does not assume or has no economically significant realised risks, and if a contract shows that the foreign principal is obligated to control the risk but the conduct shows that the eligible assessee is doing so, the contractual terms shall not be the final determinant; (e) the eligible assessee has no ownership right, legal or economic, on any intangible generated or on the outcome of any intangible generated or arising during the course of rendering of services, which vests with the foreign principal as evident from the contract and the conduct of the parties.
• (3) For the purposes of identifying an eligible assessee, with insignificant risk, referred to in items (iv) and (v) of sub-rule (1), the Assessing Officer or the Transfer Pricing Officer, as the case may be, shall have regard to the following factors, namely:— (a) the foreign principal performs most of the economically significant functions involved in research or product development cycle, including the critical functions such as conceptualisation and design of the product and providing the strategic direction and framework, either through its own employees or through its other associated enterprises while the eligible assessee carries out the work assigned to it by the foreign principal; (b) the foreign principal or its other associated enterprises provides the funds or capital and other economically significant assets including intangibles required for research or product development and also provides a remuneration to the eligible assessee for the work carried out by it; (c) the eligible assessee works under the direct supervision of the foreign principal or its other associated enterprise which has not only the capability to control or supervise but also actually controls or supervises research or product development, through its strategic decisions to perform core functions as well as by monitoring activities on a regular basis; (d) the eligible assessee does not assume or has no economically significant realised risks, and if a contract shows that the foreign principal is obligated to control the risk but the conduct shows that the eligible assessee is doing so, the contractual terms shall not be the final determinant; (e) the eligible assessee has no ownership right, legal or economic, on the outcome of the research which vests with the foreign principal and is evident from the contract as well as the conduct of the parties.]

Rule-10TC, Income-tax Rules

• 10TC. 'Eligible international transaction' means an international transaction between the eligible assessee and its associated enterprise, either or both of whom are non-resident, and which comprises of: (i) provision of software development services; (ii) provision of information technology enabled services; (iii) provision of knowledge process outsourcing services; (iv) advance of intra-group loan; (v) provision of corporate guarantee, where the amount guaranteed,—
• (a) does not exceed one hundred crore rupees; or (b) exceeds one hundred crore rupees, and the credit rating of the associated enterprise, done by an agency registered with the Securities and Exchange Board of India, is of the adequate to highest safety; (vi) provision of contract research and development services wholly or partly relating to software development; (vii) provision of contract research and development services wholly or partly relating to generic pharmaceutical drugs; (viii) manufacture and export of core auto components; 1[***] (ix) manufacture and export of non-core auto components 2[; or] by the eligible assessee. 3[(x) receipt of low value-adding intra-group services from one or more members of its group,]

Rule-10TD, Income-tax Rules

• 10TD. (1) Where an eligible assessee has entered into an eligible international transaction and the option exercised by the said assessee is not held to be invalid under rule 10TE, the transfer price declared by the assessee in respect of such transaction shall be accepted by the income-tax authorities, if it is in accordance with the circumstances as specified in sub-rule (2) 1[or, as the case may be, sub-rule (2A)].
• (2) The circumstances referred to in sub-rule (1) in respect of the eligible international transaction specified in column (2) of the Table below shall be as specified in the corresponding entry in column (3) of the said Table:—
Sl. No.
Eligible International Transaction
Circumstances
(1)
(2)
(3)
1.
Provision of software development services referred to in item (i) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense incurred is - (i) not less than 20 per cent, where the aggregate value of such transactions entered into during the previous year does not exceed a sum of five hundred crore rupees; or (ii) not less than 22 per cent, where the aggregate value of such transactions entered into during the previous year exceeds a sum of five hundred crore rupees.
2.
Provision of information technology enabled services referred to in item (ii) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense is - (i) not less than 20 per cent, where the aggregate value of such transactions entered into during the previous year does not exceed a sum of five hundred crore rupees; or (ii) not less than 22 per cent, where the aggregate value of such transactions entered into during the previous year exceeds a sum of five hundred crore rupees.
3.
Provision of knowledge process outsourcing services referred to in item (iii) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense is not less than 25 per cent.
4.
Advancing of intra-group loans referred to in item (iv) of rule 10TC where the amount of loan does not exceed fifty crore rupees.
The Interest rate declared in relation to the eligible international transaction is not less than the base rate of State Bank of India as on 30th June of the relevant previous year plus 150 basis points.
5.
Advancing of intra-group loans referred to in item (iv) of rule 10TC where the amount of loan exceeds fifty crore rupees.
The Interest rate declared in relation to the eligible international transaction is not less than the base rate of State Bank of India as on 30th June of the relevant previous year plus 300 basis points.
6.
Providing corporate guarantee referred to in sub-item (a) of item (v) of rule 10TC.
The commission or fee declared in relation to the eligible international transaction is at the rate not less than 2 per cent per annum on the amount guaranteed.
7.
Providing corporate guarantee referred to in sub-item (b) of item (v) of rule 10TC.
The commission or fee declared in relation to the eligible international transaction is at the rate not less than 1.75 per cent. per annum on the amount guaranteed.
8.
Provision of contract research and development services wholly or partly relating to software development referred to in item (vi) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense incurred is not less than 30 per cent.
9.
Provision of contract research and development services wholly or partly relating to generic pharmaceutical drugs referred to in item (vii) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense incurred is not less than 29 per cent.
10.
Manufacture and export of core auto components referred to in item (viii) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense is not less than 12 per cent.
11.
Manufacture and export of non-core auto components referred to in item (ix) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense is not less than 8.5 per cent.
• 2[(2A) The circumstances referred to in sub-rule (1) in respect of the eligible international transaction specified in column (2) of the Table below shall be as specified in the corresponding entry in column (3) of the said Table:—
Sl. No.
Eligible International Transaction
Circumstances
(1)
(2)
(3)
1.
Provision of software development services referred to in item (i) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense incurred is - (i) not less than 17 per cent, where the value of international transaction does not exceed a sum of one hundred crore rupees; or (ii) not less than 18 per cent, where the value of international transaction exceeds a sum of one hundred crore rupees but does not exceed a sum of two hundred crore rupees.
2.
Provision of information technology enabled services referred to in item (ii) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense is - (i) not less than 17 per cent, where the aggregate value of such transactions entered into during the previous year does not exceed a sum of one hundred crore rupees; or (ii) not less than 18 per cent, where the aggregate value of such transactions entered into during the previous year exceeds a sum of one hundred crore rupees but does not exceed a sum of two hundred crore rupees.
3.
Provision of knowledge process outsourcing services referred to in item (iii) of rule 10TC.
The value of international transaction does not exceed a sum of two hundred crore rupees and the operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense is - (i) not less than 24 per cent. and the Employee Cost in relation to the Operating Expense is at least sixty per cent. (ii) not less than 21 per cent. and the Employee Cost in relation to the Operating Expense is forty per cent. or more but less than sixty per cent. or (iii) not less than 18 per cent and the Employee Cost in relation to the Operating Expense does not exceed forty per cent.
4.
Advancing of intra-group loans referred to in item (iv) of rule 10TC where the amount of loan is denominated in Indian Rupees (INR).
The interest rate declared in relation to the eligible international transaction is not less than the one-year marginal cost of funds lending rate of State Bank of India as on 1st April of the relevant previous year plus,- (i) 175 basis points, where the associated enterprise has CRISIL credit rating between AAA to A or its equivalent; (ii) 325 basis points, where the associated enterprise has CRISIL credit rating of BBB-, BBB or BBB+ or its equivalent; (iii) 475 basis points, where the associated enterprise has CRISIL credit rating between BB to B or its equivalent; (iv) 625 basis points, where the associated enterprise has CRISIL credit rating between C to D or its equivalent; or (v) 425 basis points, where credit rating of the associated enterprise is not available and the amount of loan advanced to the associated enterprise including loans to all associated enterprises in Indian Rupees does not exceed a sum of one hundred crore rupees in the aggregate as on 31st March of the relevant previous year.
5.
Advancing of intra-group loans referred to in item (iv) of rule 10TC where the amount of loan is denominated in foreign currency.
The interest rate declared in relation to the eligible international transaction is not less than the six-month London Inter-Bank Offer Rate of the relevant foreign currency as on 30th September of the relevant previous year plus, - (i) 150 basis points, where the associated enterprise has CRISIL credit rating between AAA to A or its equivalent; (ii) 300 basis points, where the associated enterprise has CRISIL credit rating of BBB-, BBB or BBB+ or its equivalent; (iii) 450 basis points, where the associated enterprise has CRISIL credit rating between BB to B or its equivalent; (iv) 600 basis points, where the associated enterprise has CRISIL credit rating between C to D or its equivalent; or (v) 400 basis points, where credit rating of the associated enterprise is not available and the amount of loan advanced to the associated enterprise including loans to all associated enterprises does not exceed a sum equivalent to one hundred crore Indian rupees in the aggregate as on 31st March of the relevant previous year.
6.
Providing corporate guarantee referred to in sub-item (a) or sub-item (b) of item (v) of rule 10TC.
The commission or fee declared in relation to the eligible international transaction is at the rate not less than one per cent per annum on the amount guaranteed.
7.
Provision of contract research and development services wholly or partly relating to software development referred to in item (vi) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense incurred is not less than 24 per cent, where the value of the international transaction does not exceed a sum of two hundred crore rupees.
8.
Provision of contract research and development services wholly or partly relating to generic pharmaceutical drugs referred to in item (vii) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense incurred is not less than 24 per cent, where the value of the international transaction does not exceed a sum of two hundred crore rupees.
9.
Manufacture and export of core auto components referred to in item (viii) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense is not less than 12 per cent.
10.
Manufacture and export of non-core auto components referred to in item (ix) of rule 10TC.
The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense is not less than 8.5 per cent.
11.
Receipt of low value-adding intra-group services in item (x) of rule 10TC.
The entire value of the international transaction, including a mark-up not exceeding 5 per cent., does not exceed a sum of ten crore rupees: Provided that the method of cost pooling, the exclusion of shareholder costs and duplicate costs from the cost pool and the reasonableness of the allocation keys used for allocation of costs to the assessee by the overseas associated enterprise, is certified by an accountant.]
a
• (3) The provisions of sub‐rules (1) and (2) shall apply for the assessment year 2013-14 and four assessment years immediately following that assessment year.
• 3[(3A) The provisions of sub-rules (1) and (2A) shall apply for the assessment year 2017-18 and two assessment years immediately following that assessment year:
• Provided that where an eligible assessee is eligible to exercise option under sub-rule (2) or, as the case may be, sub-rule (2A) above, the assessee shall have the right to choose the option which is most beneficial to him.]
• 4[(3B) The provisions of sub-rules (1) and (2A) shall apply for the assessment year 2020-21]
• (4) No comparability adjustment and allowance under the second proviso to sub-section (2) of section 92C shall be made to the transfer price declared by the eligible assessee and accepted under sub-rules (1) and (2) 5[or, as the case may be, (2A)] above.
• (5) The provisions of sections 92D and 92E in respect of an international transaction shall apply irrespective of the fact that the assessee exercises his option for safe harbour in respect of such transaction.]

Rule-10TE, Income-tax Rules

• 10TE. (1) For the purposes of exercise of the option for safe harbour, the assessee shall furnish a Form 3CEFA, complete in all respects, to the Assessing Officer on or before the due date specified in Explanation 2 below sub-section (1) of section 139 for furnishing the return of income for— (i) the relevant assessment year, in case the option is exercised only for that assessment year; or (ii) the first of the assessment years, in case the option is exercised for more than one assessment year: Provided that the return of income for the relevant assessment year or the first of the relevant assessment years, as the case may be, is furnished by the assessee on or before the date of furnishing of Form 3CEFA. (2) The option for safe harbour validly exercised shall continue to remain in force for the period specified in Form 3CEFA or a period of five years whichever is less: Provided that the assessee shall, in respect of the assessment year or years following the initial assessment year, furnish a statement to the Assessing Officer before furnishing return of income of that year, providing details of eligible transactions, their quantum and the profit margins or the rate of interest or commission shown: Provided further that an option for safe harbour shall not remain in force in respect of any assessment year following the initial assessment year, if— (i) the option is held to be invalid for the relevant assessment year by the Transfer Pricing Officer under sub-rule (11) or by the Commissioner under sub-rule (8) in respect of an objection filed by the assessee against the order of the Transfer Pricing Officer under sub-rule (11), as the case may be; or (ii) the eligible assessee opts out of the safe harbour, for the relevant assessment year, by furnishing a declaration to that effect, to the Assessing Officer: 2[Provided also that nothing contained in this sub-rule shall apply to the option for safe harbour validly exercised under sub-rule (3B) of rule 10TD.; and] 3[Provided also that in case of the option for safe harbour validly exercised under sub-rule (2A) of rule 10TD, the word "three" shall be substituted for "five".]
• 3) On receipt of Form 3CEFA, the Assessing Officer shall verify whether— (i) the assessee exercising the option is an eligible assessee; and (ii) the transaction in respect of which the option is exercised is an eligible international transaction, before the option for safe harbour by the assessee is treated to be validly exercised.
• (4) Where the Assessing officer doubts the valid exercise of the option for the safe harbour by an assessee, he shall make a reference to the Transfer Pricing Officer for determination of the eligibility of the assessee or the international transaction or both for the purposes of the safe harbour.
• (5) For the purposes of sub-rule (4) and sub-rule (10), the Transfer Pricing Officer may require the assessee, by notice in writing, to furnish such information or documents or other evidence as he may consider necessary, and the assessee shall furnish the same within the time specified in such notice.
• (6) Where— (a) the assessee does not furnish the information or documents or other evidence required by the Transfer Pricing Officer; or (b) the Transfer Pricing Officer finds that the assessee is not an eligible assessee; or (c) the Transfer Pricing Officer finds that the international transaction in respect of which the option referred to in sub-rule (1) has been exercised is not an eligible international transaction, the Transfer Pricing Officer shall, by order in writing, declare the option exercised by the assessee under sub-rule (1) to be invalid and cause a copy of the said order to be served on the assessee and the Assessing Officer: Provided that no order declaring the option exercised by the assessee to be invalid shall be passed without giving an opportunity of being heard to the assessee.
• (7) If the assessee objects to the order of the Transfer Pricing Officer under sub-rule (6) or sub-rule (11) declaring the option to be invalid, he may file his objections with the Commissioner, to whom the Transfer Pricing Officer is subordinate, within fifteen days of receipt of the order of the Transfer Pricing Officer.
• (8) On receipt of the objection referred to in sub-rule (7), the Commissioner shall after providing an opportunity of being heard to the assessee pass appropriate orders in respect of the validity or otherwise of the option exercised by the assessee and cause a copy of the said order to be served on the assessee and the Assessing Officer.
• (9) In a case where option exercised by the assessee has been held to be valid, the Assessing officer shall proceed to verify whether the transfer price declared by the assessee in respect of the relevant eligible international transactions is in accordance with the circumstances specified in sub-rule (2) 4[or, as the case may be, sub-rule (2A)] of rule 10 TD and, if it is not in accordance with the said circumstances, the Assessing Officer shall adopt the operating profit margin or rate of interest or commission specified in sub-rule (2) 5[or, as the case may be, sub-rule (2A)] of rule 10TD.
• (10) Where the facts and circumstances on the basis of which the option exercised by the assessee was held to be valid have changed and the Assessing Officer has reason to doubt the eligibility of an assessee or the international transaction for any assessment year other than the initial Assessment Year falling within the period for which the option was exercised by the assessee, he shall make a reference to the Transfer Pricing Officer for determination of eligibility of the assessee or the international transaction or both for the purpose of safe harbour.
• Explanation.—For purposes of this sub-rule the facts and circumstances include:— (a) functional profile of the assessee in respect of the international transaction; (b) the risks being undertaken by the assessee; (c) the substantive contractual conditions governing the role of the assessee in respect of the international transaction; (d) the conduct of the assessee as referred to in sub-rule (2) or sub-rule (3) of rule 10TB; or (e) the substantive nature of the international transaction.
• (11) The Transfer Pricing Officer on receipt of a reference under sub-rule (10) shall, by an order in writing, determine the validity or otherwise of the option exercised by the assessee for the relevant year after providing an opportunity of being heard to the assessee and cause a copy of the said order to be served on the assessee and the Assessing Officer.
• (12) Nothing contained in this rule shall affect the power of the Assessing Officer to make a reference under section 92CA in respect of international transaction other than the eligible international transaction.
• (13) Where no option for safe harbour has been exercised under sub-rule (1) by an eligible assessee in respect of an eligible international transaction entered into by the assessee or the option exercised by the assessee is held to be invalid, the arm's length price in relation to such international transaction shall be determined in accordance with the provisions of sections 92C and 92CA without having regard to the profit margin or the rate of interest or commission as specified in sub-rule (2) 6[or, as the case may be, sub-rule (2A)] of rule 10TD.
• (14) For the purposes of this rule,— (i) no reference under sub-rule(4) shall be made by an Assessing Officer after expiry of a period of two months from the end of the month in which Form 3CEFA is received by him; (ii) no order under sub-rule (6) or sub-rule (11) shall be passed by the Transfer Pricing Officer after expiry of a period of two months from the end of the month in which the reference from the Assessing officer under sub-rule(4) or sub-rule (10), as the case may be, is received by him; (iii) the order under sub-rule (8) shall be passed by the Commissioner within a period of two months from the end of the month in which the objection filed by the assessee under sub-rule (7) is received by him.
• (15) If the Assessing Officer or the Transfer Pricing Officer or the Commissioner, as the case may be, does not make a reference or pass an order, as the case may be, within the time specified in sub-rule (14), then the option for safe harbour exercised by the assessee shall be treated as valid.]

Rule-10U, Income-tax Rules

• 10U. Chapter X-A not to apply in certain cases.—(1) The provisions of Chapter X-A shall not apply to—
• (a) an arrangement where the tax benefit in the relevant assessment year arising, in aggregate, to all the parties to the arrangement does not exceed a sum of rupees three crore; (b) a Foreign Institutional Investor,— (i) who is an assessee under the Act; (ii) who has not taken benefit of an agreement referred to in section 90 or section 90A as the case may be; and (iii) who has invested in listed securities, or unlisted securities, with the prior permission of the competent authority, in accordance with the Securities and Exchange Board of India (Foreign Institutional Investor) Regulations, 1995 and such other regulations as may be applicable, in relation to such investments; (c) a person, being a non-resident, in relation to investment made by him by way of offshore derivative instruments or otherwise, directly or indirectly, in a Foreign Institutional Investor; (d) any income accruing or arising to, or deemed to accrue or arise to, or received or deemed to be received by, any person from transfer of investments made before the [1st day of April, 2017] by such person.
• (2) Without prejudice to the provisions of clause (d) of sub-rule (1), the provisions of Chapter X-A shall apply to any arrangement, irrespective of the date on which it has been entered into, in respect of the tax benefit obtained from the arrangement on or after the [1st day of April, 2017].
• (3) For the purposes of this rule,— (i) "Foreign Institutional Investor" shall have the same meaning as assigned to it in the Explanation to section 115AD; (ii) "off shore derivative instrument" shall have the same meaning as assigned to it in the Securities and Exchange Board of India (Foreign Institutional Investor) Regulations, 1995 issued under Securities and Exchange Board of India Act, 1992 (15 of 1992) ; (iii) "Securities and Exchange Board of India" shall have the same meaning as assigned to it in clause (a) of sub-section (1) of section 2 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (iv) "tax benefit" as defined in clause (10) of section 102 and computed in accordance with Chapter X-A shall be with reference to— (a) sub-clauses (a) to (e) of the said clause, the amount of tax; and (b) sub-clause (f) of the said clause, the tax that would have been chargeable had the increase in loss referred to therein been the total income.]

Rule-10UA, Income-tax Rules

• 10UA . For the purposes of sub-section (1) of section 98, where a part of an arrangement is declared to be an impermissible avoidance arrangement, the consequences in relation to tax shall be determined with reference to such part only.]

Rule-10UB, Income-tax Rules

• 10UB. (1) For the purposes of sub-section (1) of section 144BA, the Assessing Officer shall, before making a reference to the Commissioner, issue a notice in writing to the assessee seeking objections, if any, to the applicability of provisions of Chapter X-A in his case.
• (2) The notice referred to in sub-rule (1) shall contain the following:— (i) details of the arrangement to which the provisions of Chapter X-A are proposed to be applied; (ii) the tax benefit arising under the arrangement; (iii) the basis and reason for considering that the main purpose of the identified arrangement is to obtain tax benefit; (iv) the basis and the reasons why the arrangement satisfies the condition provided in clause (a), (b), (c) or (d) of sub-section (1) of section 96; and (v) the list of documents and evidence relied upon in respect of (iii) and (iv) above.
• (3) The reference by the Assessing Officer to the Commissioner under sub-section (1) of section 144BA shall be in Form No. 3CEG.
• (4) Where the Commissioner is satisfied that the provisions of Chapter X-A are not required to be invoked with reference to an arrangement after considering— (i) the reference received from the Assessing Officer under sub-section (1) of section 144BA; or (ii) the reply of the assessee in response to the notice issued under sub-section (2) of section 144BA, he shall issue directions to the Assessing Officer in Form No. 3CEH.
• (5) Before a reference is made by the Commissioner to the Approving Panel under sub-section (4) of section 144BA, he shall record his satisfaction regarding the applicability of the provisions of Chapter X-A in Form No. 3CEI and enclose the same with the reference.]

Rule-10UC, Income-tax Rules

• 10UC. (1) For the purposes of section 144BA,—
• (i) no directions under sub-section (3) of section 144BA shall be issued by the Commissioner after the expiry of one month from the end of the month in which the date of compliance of the notice issued under sub-section (2) of section 144BA falls; (ii) no reference shall be made by the Commissioner to the Approving Panel under sub-section (4) of section 144BA after the expiry of two months from the end of the month in which the final submission of the assessee in response to the notice issued under sub-section (2) of section 144BA is received; (iii) the Commissioner shall issue directions to the Assessing Officer in Form No.3CEH,—
• (a) in the case referred to in clause (i) of sub-rule (4) of rule 10UB, within a period of one month from the end of month in which the reference is received by him; and (b) in the case referred to in clause (ii) of sub-rule (4) of rule 10UB, within a period of two months from the end of month in which the final submission of the assessee in response to the notice issued under sub-section (2) of section 144BA is received by him.]

Rule-11, Income-tax Rules

• 11. [Omitted by the IT (Twenty-first Amdt.) Rules, 2001, w.e.f. 21-8-2001.]

Rule-11A, Income-tax Rules

• 11A. (1) For the purposes of clause (e) of the Explanation to sub-section (4) of section 80DD and clause (d) of the Explanation to sub-section (2) of section 80U, the medical authority for certifying "autism", "cerebral palsy", "multiple disabilities", "person with disability" and "severe disability" referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999), shall consist of the following,— (i)  a Neurologist having a degree of Doctor of Medicine (MD) in Neurology (in case of children, a Paediatric Neurologist having an equivalent degree); or (ii)  a Civil Surgeon or Chief Medical Officer in a Government hospital.
• (2) For the purposes of sub-section (4) of section 80DD and sub-section (2) of section 80U, the assessee shall furnish along with the return of income, a copy of the certificate issued by the medical authority,— (i)  in Form No. 10-IA, where the person with disability or severe disability is suffering from autism, cerebral palsy or multiple disability; or (ii)  in the form prescribed vide notification No. 16-18/97-NI.1, dated the 1st June, 2001 published in the Gazette of India, Part I, Section 1, dated the 13th June, 2001 and Notification No. 16-18/97-NI.1, dated the 18th February, 2002 published in the Gazette of India, Part I, Section 1, dated the 27th February, 2002 and notified under the Guidelines for evaluation of various disabilities and procedure for certification, keeping in view the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 (1 of 1996), in any other case.
• (3) Where the condition of disability is temporary and requires reassessment after a specified period, the certificate shall be valid for the period starting from the assessment year relevant to the previous year during which the certificate was issued and ending with the assessment year relevant to the previous year during which the validity of the certificate expires.]

Rule-11F, Income-tax Rules

• 11F. In this sub-part "National Committee" means the National Committee defined in section 35AC.

Rule-11K, Income-tax Rules

• 11K . In making recommendations to the Central Government with regard to any project or scheme for being notified in the Official Gazette as an eligible project or scheme, the National Committee shall satisfy itself that,—
• (i)  the project or scheme relates to the provisions of one or more of the following :— (a)  construction and maintenance of drinking water projects in rural areas and in urban slums including installation of pump-sets, digging of wells, tube-wells and laying of pipes for supply of drinking water; (b)  construction of dwelling units for the economically weaker sections; (c)  construction of school buildings primarily for children belonging to the economically weaker sections of the society; (d)  establishment and running of non-conventional and renewable source of energy systems; (e)  construction and maintenance of bridges, public highways and other roads; (f)  any other programme for uplift of the rural poor or the urban slum dwellers, as the National Committee may consider fit for support; [(g)  promotion of sports;] [(h)  pollution control;] [(i)  establishment and running of educational institutions in rural areas, exclusively for women and children upto 12 years of age; (j)  establishment and running of hospitals and medical facilities in rural areas, exclusively for women and children upto 12 years of age; (k)  establishment and running of creches and schools for the children of workers employed in factories or at building sites; (l)  encouraging the production of bacteria induced fertilisers; (m)  any programme that promotes road safety, prevention of accidents and traffic awareness;] [(n)  construction of hostel accommodation for women or handicapped individuals or individuals who are of the age of sixty-five years or more;] [(o)  establishment and running of institutions for vocational education and training in rural areas or towns which consist of population of less than five lakhs;] [(p)  establishment and running of institutions imparting education in the field of engineering and medicine in rural areas or towns which consist of population of less than 5 lakhs;] [(q)  plantation of softwood on degraded non-forest land; (r)  any programme of conservation of natural resources or of afforestation;] [(s)  relief and rehabilitation of handicapped individuals;]
• (ii) Â the benefit of the project or scheme shall flow to the public in general or to individuals belonging to the economically weaker sections of the society; (iii) Â the applicant has the necessary expertise, personnel and other facilities for efficient implementation of the project or scheme; (iv) Â the applicant shall maintain separate accounts in respect of the eligible project or scheme.

Rule-11L, Income-tax Rules

• 11L. (1) An application for approval of an association or institution or for recommendation of a project or scheme by the National Committee for the purposes of section 35AC may be made to the Secretary to the National Committee for Promotion of Social and Economic Welfare, Department of Revenue, Government of India, North Block, New Delhi - 110 001.
• (2) The application should be submitted in 2 sets, written either in English or Hindi, and should be accompanied with details about the name, address and status of applicant, the district/ward/circle where assessed/registered, permanent account number, audited balance sheet and profit and loss account or income and expenditure account for the latest year for which these are available and two preceding years.
• (3) The application for approval of an association or institution should contain the following particulars and be accompanied with relevant documents :— (i)  Name and address of the association or institution; (ii)  How constituted (whether as a trust, society, etc.) supported by relevant documents like trust deed, rules and regulations, memorandum of association, etc., and registration certificate, if any ; (iii)  Names and addresses of the persons managing the affairs of the association or institution, including those who had, at any time, during the three years preceding the date of application, managed the affairs of the association or institution; (iv)  If the association or the institution is notified by the Central Government for the purposes of sub-clause (iv) or (v) of clause (23C) of section 10 of the Income-tax Act, 1961 (43 of 1961), or is approved for the purposes of section 80G, the particulars of the approval granted; [(v)  Brief particulars of the activities of the association or institution during three years preceding the date of application :  Provided that when an association or institution has been in existence for a period of less than 3 years, in that case, that association or institution may furnish particulars of its activities for the period of its existence;] (vi)  Such other information as the association or institution may like to place before the National Committee.
• (4) The application for recommendation of a project or scheme should contain the following particulars and be accompanied with relevant documents,— (i)  Title of project or scheme; (ii)  Date of commencement; (iii)  Duration and the likely date of completion; (iv)  Estimated cost of the project or scheme duly supported by a copy of the resolution of the Managing Committee of the association, institution or the local authority or, as the case may be, the Board of Directors of the company; (v)  Categories or classes of persons who are likely to be benefited from the project or scheme; (vi)  Affirmation that no benefit from the project or scheme, other than remuneration or honorarium for whole time or part-time work done or for reimbursement of actual expenses related to the project will accrue to the persons managing the affairs of the association or institution or to individuals not belonging to the economically weaker sections of the society; (vii)  Where the project or scheme is to be executed by a company, information about whether the project or scheme is such which the company is required to execute under any law for the time being in force or under agreement with employees or otherwise; (viii)  Such other particulars as the applicant may like to place before the National Committee.

Rule-11N, Income-tax Rules

• 11N. (1) The members of the National Committee shall not be entitled to any remuneration.
• [(2) The members and Chairman of the National Committee shall be entitled to— (i)  Sitting fee of Rs. 1[6000] per day for attending a meeting of the National Committee or any Subordinate Committee set up by the Chairman of the National Committee. However, sitting fee would not be payable where applications are considered by circulation or when a member is on tour. (ii)  Reimbursement of actual expenditure incurred by way of travel by rail, road or air, for attending any meeting of the National Committee or its Subordinate Committee. The entitlement of air travel would be restricted to the amount charged by Indian Airlines for its economy class for the members and to the amount charged for the executive class of the Indian Airlines for the Chairman. Members including Chairman may travel by any class on train. Members and Chairman would also be entitled to the reimbursement of [air-conditioned] taxi fare for reaching the venue of the meeting from their place of stay and for going back to the place of stay after the meeting. (iii)  [***] [(iv)  The out-station Chairman or Member may stay and claim reimbursement of rent in any State guest house or for single room in medium range ITDC hotel like Lodi Hotel, Qutab Hotel, Janpath Hotel, Ashoka Yatri Niwas or State Government run tourist hotels/hostels or residential accommodation provided by registered societies like India International Centre or India Habitat Centre. They would separately be entitled for reimbursement of food allowance at the rate of Rs. 500 per day.] (v)  Members and Chairman would have the same entitlement for travel, boarding and lodging in respect of tours undertaken in pursuance of a decision taken by the National Committee. However, sitting fee would not be admissible while on tour. (vi)  Sitting fee would not be admissible in case the National Committee takes decisions by circulation of the application alone. Actual postal charges and other expenses incurred by Members and Chairman for circulating the application would be reimbursed. (vii)  Reimbursement of any other expenditure with the approval of Secretary (Revenue) and the Financial Advisor, Department of Revenue, Ministry of Finance.]
• (3) In granting approval to any project or scheme undertaken by a company, the National Committee shall satisfy itself that, where any expenditure is to be incurred in the acquisition or erection of a capital asset, the applicant-company has made adequate arrangements for divesting itself of the ownership of such asset without consideration in cash or otherwise immediately on completion of the eligible project, in the following manner :— (i)  in the case of drinking water projects, to individuals belonging to the economically weaker sections or to the local authority or the village panchayat, as the case may be; (ii)  in the case of dwelling units, to individuals belonging to the economically weaker sections, or to the local authority, village panchayat or an authority constituted under any law for the purpose of satisfying the need for housing accommodation or for the purpose of development or improvement of cities, towns and villages, as the National Committee may decide; (iii)  in the case of school buildings, to an educational institution existing solely for educational purposes and not for profit or to the State Government, local authority or a village panchayat; (iv)  in the case of non-conventional or renewable energy systems, to the district administration, local authority, village panchayat or to indivi-duals belonging to the economically weaker sections, or such other statutory body as the National Committee may decide; (v)  in the case of bridges, public highways or other roads to the Central or the State Government, local authority or such other statutory body as the National Committee may decide; (vi)  in the case of equipment purchased for the purpose of eligible project or scheme, to the State Government, local authority or such other statutory body as the National Committee may decide having regard to the capacity of the authority concerned to gainfully utilise such equipments;  Note : Where before the completion of any eligible project/scheme, the company undertakes other eligible project(s)/scheme(s) and transfers the equipments to such subsequent project/scheme, the company will be required to divest itself of the ownership of the equipment only after the completion of the last eligible project/scheme. (vii)  in any other case, to such authority as the National Committee may decide.
• (4) Immediately on completion of an eligible project/scheme, the company shall furnish details of the execution thereof to the National Committee. The National Committee shall satisfy itself that the project/scheme has been completed in accordance with the approval granted and that the company has divested itself of the assets in the manner prescribed by the National Committee. If the National Committee is not so satisfied, it may, after giving an opportunity of being heard on the proposed action, order withdrawal of the approval which shall then be deemed never to have been granted.]

Rule-11-OA, Income-tax Rules

• 11-OA. (1) The form and manner in respect of notification of an affordable housing project as a specified business under sub-clause (vii) of clause (c) of sub-section (8) of section 35AD of the Act shall be as follows:— (a)  the applicant shall apply for notification of the project in Form No. 3CN to Member (IT), Central Board of Direct Taxes, Department of Revenue, Ministry of Finance, North Block, New Delhi; (b)  if any defect is noticed in the application in Form No. 3CN or if any relevant document is not attached thereto, a deficiency letter may be served on the applicant; (c)  the applicant shall remove the deficiency within a period of fifteen days from the date of service of the deficiency letter or within such further period which, on an application made in this behalf may be extended; (d)  if the applicant fails to remove the deficiency within the period so allowed, the Board, if satisfied, may pass an order treating the application as invalid; (e)  the Board may, before granting approval, call for such documents or information from the applicant as it may consider necessary and may call for further details or information from the applicant as well as from the income-tax authorities and other Departments or agencies, as it may deem fit; (f)  the Board may issue the notification to be published in the Official Gazette granting approval to the project or for reasons to be recorded in writing, reject the application; (g)  the Board may withdraw the approval if it is satisfied that the assessee has ceased its activities relating to the specified business or its activities are not genuine or are not being carried out in accordance with all or any of the conditions under this rule; (h)  no order treating the application as invalid or rejecting the application or withdrawing the approval or cancellation of the notification, shall be passed without giving an opportunity of being heard to the assessee; (i)  a copy of the order invalidating or rejecting the application or withdrawing the approval shall be communicated to the applicant as well as the Assessing Officer and the Commissioner having jurisdiction over the assessee.
• (2) A project shall be considered for notification if it fulfils all of the following conditions, namely: — (a)  the project shall have prior sanction of the competent authority empowered under the Scheme of Affordable Housing in Partnership framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; (b)  the date of commencement of operations of the project shall be on or after the 1st day of April 2011; (c)  the project shall be on a plot of land which has a minimum area of one acre; (d)  at least thirty per cent of the total allocable rentable area of the project shall comprise of affordable housing units of EWS category; (e)  at least sixty per cent of the total allocable rentable area of the project shall comprise of affordable housing units of EWS and LIG categories; (f)  at least ninety per cent of the total allocable rentable area of the project shall comprise of affordable housing units of EWS, LIG and MIG categories; (g)  the remaining ten per cent or less of the total allocable rentable area of the project may comprise of other residential or commercial units; (h)  the layout and specifications including design of the project to be developed and built shall be approved by the State or Union territory Government or its designated implementing agency; (i)  the project shall be completed within a period of five years from the end of the financial year in which the project is sanctioned by the competent authority empowered under the Scheme of Affordable Housing in Partnership framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India.
• (3) The assessee shall maintain separate books of accounts for the project with complete details of all capital expenditure incurred during the previous year on which it intends to claim the said deduction under section 35AD and shall file the relevant income-tax returns by the due date to the Income-tax Department to avail the tax benefit under section 35AD.
• (4) A project notified under sub-clause (vii) of clause (c) of sub-section (8) of section 35AD shall continue to be governed by the provisions of this rule to the extent it is not in contravention with the provisions of the Act, as amended from time to time.

Rule-11U, Income-tax Rules

• 11U. For the purposes of this rule and rule 11UA,— (a)  1[***] (b)  "balance-sheet", in relation to any company, means,— (i) for the purposes of sub-rule (2) of rule 11UA, the balance-sheet of such company (including the notes annexed thereto and forming part of the accounts) as drawn up on the valuation date which has been audited by the auditor of the company appointed under section 224 of the Companies Act, 1956 (1 of 1956) and where the balance-sheet on the valuation date is not drawn up, the balance-sheet (including the notes annexed thereto and forming part of the accounts) drawn up as on a date immediately preceding the valuation date which has been approved and adopted in the annual general meeting of the shareholders of the company; and 14aa[(ii) in any other case,— (A) in relation to an Indian company, the balance-sheet of such company (including the notes annexed thereto and forming part of the accounts) as drawn up on the valuation date which has been audited by the auditor of the company appointed under the laws relating to companies in force; and (B) in relation to a company, not being an Indian company, the balance-sheet of the company (including the notes annexed thereto and forming part of the accounts) as drawn up on the valuation date which has been audited by the auditor of the company, if any, appointed under the laws in force of the country in which the company is registered or incorporated;] (c)  "merchant banker" means category I merchant banker registered with Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (d)  "quoted shares or securities" in relation to share or securities means a share or security quoted on any recognized stock exchange with regularity from time to time, where the quotations of such shares or securities are based on current transaction made in the ordinary course of business; (e)  "recognized stock exchange" shall have the same meaning as assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (f)  "registered dealer" means a dealer who is registered under Central Sales Tax Act, 1956 or General Sales Tax Law for the time being in force in any State including value added tax laws; (g)  "registered valuer" shall have the same meaning as assigned to it in section 34AB of the Wealth-tax Act, 1957 (27 of 1957) read with rule 8A of Wealth-tax Rules, 1957; (h)  "securities" shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (i)  "unquoted shares and securities", in relation to shares or securities, means shares and securities which is not a quoted shares or securities; [(j)  "valuation date" means the date on which the property or consideration, as the case may be, is received by the assessee.]

Rule-12, Income-tax Rules

• 12. (1) The return of income required to be furnished under sub-section (1) or sub- section (3) or sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) [or sub-section (4E)] [or sub-section (4F)] of section 139 or clause (i) of sub-section (1) of section 142 or sub-section (1) of section 148 or section 153A [***] relating to the assessment year commencing [on the 1st day of April, 1[2020] shall,—
• [(a)  in the case of a person being 2[an individual who is a resident other than not ordinarily resident and] where the total income includes income chargeable to income-tax, under the head,— (i)  "Salaries" or income in the nature of family pension as defined in the Explanation to clause (iia) of section 57; or (ii)  "Income from house property", where assessee does not own more than one house property and does not have any brought forward loss 3[or loss to be carried forward] under the head; or (iii)  "Income from other sources", except winnings from lottery or income from race horses [and does not have any loss under the head],  be in Form [SAHAJ] (ITR-1) and be verified in the manner indicated therein:]  [Provided that the provisions of this clause shall not apply to a person who,— 4[(I)  has assets (including financial interest in any entity) located outside India; (IA)  has signing authority in any account located outside India; (IB)  has income from any source outside India; (IC)  has income to be apportioned in accordance with provisions of section 5A;] 4a[(ID) has claimed deduction under section 57, other than deduction claimed under clause (iia) thereof; (IE) is a director in any company; (IF) has held any unlisted equity share at any time during the previous year; (IG) is assessable for the whole or any part of the income on which tax has been deducted at source in the hands of a person other than the assessee;] (II)  has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91; 6[***] [(III)  has agricultural income, exceeding five thousand rupees;]] 7[(IV)  has total income, exceeding fifty lakh rupees; (V)  has income taxable under section 115BBDA; 7a[***] 6a[or] (VI)  has income of the nature referred to in section 115BBE;] 7aa[(VII) 6aa[***] (VIII) (b)  8[***] (ba)  9[***] 10[(c)  in the case of a person being an individual [not being an individual to whom clause (a) applies] or a Hindu undivided family where the total income does not include income 11[under the head] business or profession, be in Form No. ITR-2 and be verified in the manner indicated therein; ] [(ca)  in the case of a person being an individual or 11a[a Hindu undivided family, who is a resident other than not ordinarily resident, or a firm, other than limited liability partnership firm, which is a resident] deriving 12["income under the head Profits or gains of business or profession" and such income is computed in accordance with special provisions referred to in section 44AD, section 44ADA and section 44AE of the Act for computation of such income, be in Form SUGAM (ITR-4)] and be verified in the manner indicated therein:]  [Provided that the provisions of this clause shall not apply to a person who,— 12a[(I)  has assets (including financial interest in any entity) located outside India; (IA) has signing authority in any account located outside India; (IB) has income from any source outside India; (IC) has income to be apportioned in accordance with provisions of section 5A; (ID) is a director in any company; (IE) has held any unlisted equity share at any time during the previous year; (IF) has total income, exceeding fifty lakh rupees; (IG) owns more than one house property, the income of which is chargeable under the head "Income from house property"; (IH) has any brought forward loss or loss to be carried forward under any head of income; (IJ) is assessable for the whole or any part of the income on which tax has been deducted at source in the hands of a person other than the assessee; ] (II)  has claimed any relief of tax under section 90 or 90A or deduction of tax under section 91; 13[***] [(III)  has agricultural income, exceeding five thousand rupees;]] 14[(IV)  has income taxable under section 115BBDA; or (V)  has income of the nature referred to in section 115BBE;] (VI) 14a[***] (d)  in the case of a person being an individual or a Hindu undivided family other than the individual or Hindu undivided family referred to in clause (a) or 16[***] clause (c) [or clause (ca)] and 15[having income under the head] business or profession, be in 17[Form No.ITR-3] and be verified in the manner indicated therein; (e)  in the case of a person not being an individual or a Hindu undivided family or a company or a person to which clause (g) applies, be in Form No. ITR-5 and be verified in the manner indicated therein; (f)  in the case of a company not being a company to which clause (g) applies, be in Form No. ITR-6 and be verified in the manner indicated therein; (g)  in the case of a person including a company whether or not registered under section 25 of the Companies Act, 1956 (1 of 1956), required to file a return under sub-section (4A) or sub-section (4B) or sub-section (4C) or sub-section (4D) 17a[***] of section 139, be in Form No. ITR-7 and be verified in the manner indicated therein; (h)  [***]
• [(2) The return of income required to be furnished in Form SAHAJ (ITR-1) or Form No. ITR-2 or Form No. ITR-3 or 18[Form SUGAM (ITR-4)] or Form No. ITR-5 or Form No. ITR-6 [or Form No. ITR-7] shall not be accompanied by a statement showing the computation of the tax payable on the basis of the return, or proof of the tax, if any, claimed to have been deducted or collected at source or the advance tax or tax on self-assessment, if any, claimed to have been paid or any document or copy of any account or form or report of audit required to be attached with the return of income under any of the provisions of the Act:]

Rule-16B, Income-tax Rules

• 16B. For the purposes of clauses (8A) and (8B) of section 10, the "prescribed authority" shall be the Additional Secretary, Department of Economic Affairs in the Ministry of Finance, Government of India in concurrence with Member (Income-tax) of the Board.]

Rule-16C, Income-tax Rules

• 16C. (1) The fund shall be formed under a trust and it shall be evidenced by a trust deed.
• (2) The contributions to the fund are to be made by the employees by way of periodical subscription.
• (3) The application for approval of any fund under clause (23AAA) of section 10 shall be made in Form No. 9 to the Commissioner having jurisdiction over the area or territory in which the accounts are kept and such application shall be accompanied by the documents mentioned therein.
• (4) Where the Commissioner is satisfied that all the conditions laid down in clause (23AAA) of section 10 are fulfilled in the case of the fund, he shall record such satisfaction in writing and grant approval to the fund specifying the assessment year or years for which the approval is valid so however that such approval shall, at one time, have effect for such assessment year or years not exceeding three assessment years.
• (5) Where the Commissioner is satisfied that one or more of the conditions laid down in clause (23AAA) of section 10 are not fulfilled, he shall reject the application for approval, after recording the reasons for such rejection in writing :

Rule-16DD, Income-tax Rules

• 16DD. The particulars, which are required to be furnished by the assessee along with the return of income under clause (b) of sub-section (1B) of section 10A shall be in Form No. 56FF.]

Rule-16E, Income-tax Rules

• 16E. The report of an accountant which is required to be furnished by the assessee along with the return of income, under sub-section (5) of section 10B shall be in Form No. 56G.]

Rule-17, Income-tax Rules

• 17. (1) The option to be exercised in accordance with the provisions of the Explanation to sub-section (1) of section 11 in respect of income of any previous year relevant to the assessment year beginning on or after the 1st day of April, 2016 shall be in Form No. 9A and shall be furnished before the expiry of the time allowed under sub-section (1) of section 139 for furnishing the return of income of the relevant assessment year.
• (2) The statement to be furnished to the Assessing Officer or the prescribed authority under sub-section (2) of section 11 or under the said provision as applicable under clause (21) of section 10 shall be in Form No. 10 and shall be furnished before the expiry of the time allowed under sub-section (1) of section 139, for furnishing the return of income.
• (3) The option in Form No. 9A referred to in sub-rule (1) and the statement in Form No.10 referred to in sub-rule (2) shall be furnished electronically either under digital signature or electronic verification code.
• (4) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall— (i)  specify the procedure for filing of Forms referred to in sub-rule (3); (ii)  specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule(3), for purpose of verification of the person furnishing the said Forms; and (iii)  be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to Forms so furnished. ]

Rule-17A, Income-tax Rules

• 17A(1). An application under clause (aa) or clause (ab) of sub-section (1) of section 12A for registration of a charitable or religious trust or institution shall be made in Form No. 10A and accompanied by the following documents, namely:— (a)  where the trust is created, or the institution is established, under an instrument, self-certified copy of the instrument creating the trust or establishing the institution; (b)  where the trust is created, or the institution is established, otherwise than under an instrument, self-certified copy of the document evidencing the creation of the trust, or establishment of the institution; (c)  self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be; (d)  self-certified copy of the documents evidencing adoption or modification of the objects, if any; (e)  where the trust or institution has been in existence during any year or years prior to the financial year in which the application for registration is made, self certified copies of the annual accounts of the trust or institution relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up; (f)  note on the activities of the trust or institution; (g)  self-certified copy of existing order granting registration under section 12A or section 12AA, as the case may be; and (h)  self-certified copy of order of rejection of application for grant of registration under section 12A or section 12AA, as the case may be, if any.
• (2) Form No. 10A shall be furnished electronically,— (i)  under digital signature, if the return of income is required to be furnished under digital signature; (ii)  through electronic verification code in a case not covered under clause (i).
• (3) Form No. 10A shall be verified by the person who is authorised to verify the return of income under section 140, as applicable to the assessee.
• (4) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify the data structure, standards and procedure of furnishing and verification of Form No. 10A and be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the said form so furnished.]

Rule-17C, Income-tax Rules

• 17C . The forms and modes of investment or deposits under clause (xii) of sub-section (5) of section 11 shall be the following, namely :— (i)  investment in the units issued under any scheme of the mutual fund referred to in clause (23D) of section 10 of the Income-tax Act, 1961;  [* * *] (ii)  any transfer of deposits to the Public Account of India;] [(iii)  deposits made with an authority constituted in India by or under any law enacted either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both;] [(iv)  investment by way of acquiring equity shares of a depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996);] [(v)  investment made by a recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) (hereafter referred to as investor) in the equity share capital of a company (hereafter referred to as investee)— (A)  which is engaged in dealing with securities or mainly associated with the securities market; (B)  whose main object is to acquire the membership of another recognised stock exchange for the sole purpose of facilitating the members of the investor to trade on the said stock exchange through the investee in accordance with the directions or guidelines issued under the Securities and Exchange Board of India Act, 1992 (15 of 1992) by the Securities and Exchange Board of India established under section 3 of that Act; and (C)  in which at least fifty-one per cent of equity shares are held by the investor and the balance equity shares are held by members of such investor;] 1[ (va) investment made by a person, authorised under section 4 of the Payment and Settlement Systems Act, 2007, in the equity share capital or bonds or debentures of a company — (A)  which is engaged in operations of retail payments system or digital payments settlement or similar activities in India and abroad and is approved by the Reserve Bank of India for this purpose; and (B)  in which at least fifty-one per cent of equity shares are held by National Payments Corporation of India.] [(vi)  investment by way of acquiring equity shares of an incubatee by an incubator.  Explanation.—For the purposes of this clause,— (a)  "incubatee" shall mean such incubatee as may be notified by the Government of India in the Ministry of Science and Technology; (b)  "incubator" shall mean such Technology Business Incubator or Science and Technology Entrepreneurship Park as may be notified by the Government of India in the Ministry of Science and Techno-logy;] [(vii)  investment by way of acquiring shares of National Skill Development Corporation;] [ (viii)  investment in debt instruments issued by any infrastructure Finance Company registered with the Reserve Bank of India; ] [ (ix)  investment in "Stock Certificate" as defined in clause (c) of paragraph 2 of the Sovereign Gold Bonds Scheme, 2015, published in the Official Gazette vide notification number G.S.R. 827(E), dated the 30th October, 2015.]

Rule-17CA, Income-tax Rules

• 17CA. (1) The functions of an electoral trust referred to in section 13B shall be as provided in this rule.
• (2) The electoral trust may receive voluntary contributions from — (a)  an individual who is a citizen of India; (b)  a company which is registered in India; and (c)  a firm or Hindu undivided family or an Association of persons or a body of individuals, resident in India.
• (3) A receipt indicating the following shall be issued by the trust immediately on receipt of any contribution indicating the following:— (a)  name and address of the contributor; (b)  Permanent account number of the contributor or passport number in the case of a citizen who is not a resident; (c)  amount and mode of contribution including name and branch of the Bank and date of receipt of such contribution; (d)  name of the electoral trust; (e)  Permanent account number of the electoral trust; (f)  date and number of approval by the prescribed authority; and (g)  Name and designation of the person issuing the receipt.
• (4) The electoral trust shall not accept contributions— (a)  from an individual who is not a citizen of India or from any foreign entity whether incorporated or not; [***] (b)  from any other electoral trust which has been registered as a company under section 25 of the Companies Act, 1956 (1 of 1956) and approved as an electoral trust under the Electoral Trusts Scheme, 2013; [ (c)  from a Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013); and (d)  from a foreign source as defined in clause (j) of section 2 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010).]
• (5) The electoral trust shall accept contributions only by way of an account payee cheque drawn on a bank or account payee bank draft or by electronic transfer to its bank account and shall not accept any contribution in cash.
• (6) The electoral trust shall not accept any contribution without the permanent account number of the contributor, who is a resident and the passport number in the case of a citizen of India, who is not a resident.
• (7) A political party registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) shall be an eligible political party and an electoral trust shall distribute funds only to the eligible political parties.
• (8) (i) The electoral trust may, for the purposes of managing its affairs, spend up to five per cent of the total contributions received in a year subject to an aggregate limit of rupees five hundred thousand in the first year of incorporation and rupees three hundred thousand in subsequent years;
• (9) The trust shall obtain a receipt from the eligible political party indicating the name of the political party, its permanent account number, registration number, amount of fund received from the trust, date of the receipt and name and designation of person signing such receipt.
• (10) The electoral trust shall not utilize any contributions for the direct or indirect benefit of the members or contributors, or for any of the following persons, namely:— (a)  the members (including members of its Executive Committee, Governing Committee or Board of Directors) of the electoral trust; (b)  any relative of such Members; (c)  where such member or contributor is a Hindu undivided family, a member of that Hindu undivided family; (d)  any person who has made a contribution to the trust; (e)  any person referred to in sub-section (3) of section 13 of the Act; and (f)  any concern in which any of the persons referred to in clauses (a), (b), (c), (d) and (e) has a substantial interest.
• (11) (i) An electoral trust shall keep and maintain such books of account and other documents in respect of its receipts, distributions and expenditure as may enable the computation of its total income in accordance with the provisions of the Act; (ii) The electoral trust shall also maintain a list of persons from whom contributions have been received and to whom the same have been distributed, containing the name, address and permanent account number of each such person along with the details of the amount and mode of its payment including the name and branch of the bank.
• (12) Every electoral trust shall get its accounts audited by an accountant as defined in the Explanation below sub-section (2) of section 288 and furnish the audit report in Form No. 10BC along with particulars forming part of its Annexure, to the Commissioner of Income-tax or the Director of Income-tax, as the case may be, having jurisdiction over the electoral trust, on or before the due date specified for furnishing the return of income by a company under section 139.
• (13) An electoral trust shall maintain a regular record of proceedings of all meetings and decisions taken therein.
• (14) Every electoral trust shall furnish a certified copy of list of contributors and a list of political parties, to whom sums were distributed in the manner prescribed in sub-rule (8), to the Commissioner of Income-tax or the Director of Income-tax, as the case may be, every year along with the audit report as stipulated under sub-rule (12).
• (15) Any change in the shareholders, subsequent to the approval granted under the Electoral Trusts Scheme, 2013 shall be intimated to the Board within thirty days of such change. ]

Rule-18AAAAA, Income-tax Rules

• 18AAAAA. In specifying an association or institution for notification under clause (c) of sub-section (2) of section 80G, the Central Government shall satisfy itself that,— (a)  the association or institution has as its object the control, supervision, regulation or encouragement in India of the games or sports notified under Explanation 4 to section 80G; (b)  the association or institution has a proven record of its dedication towards development of infrastructure of sports or games or promotion of sports or games for at least a period of three years; (c)  the association or institution does not distribute any part of its income in any manner to its members except as grants to any association or institution affiliated to it; (d)  the association or institution applies the amount received by way of donation referred to in clause (c) of sub-section (2) of section 80G for purposes of development of infrastructure for games or sports in India or for sponsoring of games or sports in India; (e)  the association or institution maintains regular accounts of its receipt and expenditure; (f)  the association or institution files its return of income regularly; (g)  the notification issued by the Central Government under clause (c) of sub-section (2) of section 80G shall have effect in relation to the assessment year or years, not exceeding three assessment years (including an assessment year or years commencing before the date on which such notification is issued), as may be specified in such notification.]

Rule-18BBA, Income-tax Rules

• 18BBA. (1) The report of the audit of the accounts of an assessee, other than a company or a co-operative society, which is required to be furnished under clause (i) of sub-section (3) of section 80HHB shall be in Form No. 10CCA.
• [(1A) The report of the audit of the accounts of an assessee which is required to be furnished under clause (i) of sub-section (2) of section 80HHBA shall be in Form No. 10CCAA.] [(1B) The certificate from an accountant which is required to be furnished by the assessee under clause (ia) of sub-section (3) of section 80HHB shall be in Form No. 10CCAH.]
• [(2) The certificate from the Export House or Trading House which is required to be furnished by the supporting manufacturer under clause (b) of sub-section (4A) of section 80HHC shall be in Form No. 10CCAB.] [(2A) The certificate from the undertaking in the Special Economic Zone which is required to be furnished under proviso to sub-section (4) of section 80HHC by an undertaking referred to in sub-section (4C) of that section shall be in Form No. 10CCABA.]
• (3) The report of an accountant which is required to be furnished by the assessee under sub-section (4) or clause (a) of sub-section (4A) of section 80HHC shall be in Form No. 10CCAC.] [(4) The report of the accountant which is required to be furnished by the assessee under sub-section (6) of section 80HHD shall be in Form No. 10CCAD.]
• [(5) For the purposes of section 80HHD, the "prescribed authority" shall be the Director General in the Directorate General of Tourism, Government of India.]
• [(6) The certificate from a person making payment to an assessee, engaged in the business of a hotel or of a tour operator or of a travel agent which is required to be furnished under sub-section (2A) of section 80HHD shall be in Form No. 10CCAE.]
• [(7) The report of an accountant which is required to be furnished by the assessee under sub-section (4) [or clause (i) of sub-section (4A)] of section 80HHE shall be in Form No. 10CCAF.]
• [(8) The certificate from the exporting company which is required to be furnished by the supporting software developer under clause (ii) of sub-section (4A) of section 80HHE shall be in Form No. 10CCAG.]
• [(9) The report of an accountant which is required to be furnished by the assessee under sub-section (4) of section 80HHF shall be in Form No. 10CCAI.]

Rule-18BBB, Income-tax Rules

• 18BBB. (1) The report of the audit of the accounts of an assessee, which is required to be furnished under sub-section (7) of section 80-IA or sub-section (7) of section 80-I, except in the cases of multiplex theatres as defined in sub-section (7A) of section 80-IB or convention centres as defined in sub-section (7B) of section 80-IB [or hospitals in rural areas as defined in sub-section (11B) of section 80-IB], shall be in Form No. 10CCB.
• (2) A separate report is to be furnished by each undertaking or enterprise of the assessee claiming deduction under section 80-I or 80-IA or 80-IB [or 80-IC] and shall be accompanied by the Profit and Loss Account and Balance Sheet of the undertaking or enterprise as if the undertaking or the enterprise were a distinct entity.
• (3) In the case of an enterprise carrying on the business of developing or operating and maintaining or developing, operating and maintaining an infrastructure facility, the form shall be accompanied by a copy of the agreement of the enterprise with the Central Government or the State Government or the local authority for carrying on the business of developing or operating and maintaining or developing, operating and maintaining the infrastructure facility.
• (4) In any other case, the form shall be accompanied by a copy of the agreement, approval or permission, as the case may be, to carry on the activity signed or issued by the Central Government or the State Government or the local authority for carrying on the eligible business.]

Rule-18BBC, Income-tax Rules

• 18BBC. (1) For the purposes of sub-clause (iii) of clause (c) of sub-section (7) of section 80-IB, the prescribed authority,— (a)  in relation to hotels located in an area or place referred to in clause (a) of that sub-section, shall be the Director General (Income-tax Exemptions) who shall grant approval on the concurrence of the Director General in the Directorate General of Tourism, Government of India; (b)  in relation to hotels located in any place referred to in clause (b) of that sub-section, shall be the Director General in the Directorate General of Tourism, Government of India.
• (2) For the purpose of clause (a) of sub-section (7) of section 80-IB, a hotel shall be approved by the prescribed authority if the following conditions are fulfilled, namely :— (a)  such hotel is located in an area or place specified under clause (a) of the said sub-section (7); (b)  there are not more than 300 hotel rooms of 3-star category and above in the aggregate, in areas or places specified under clause (a) of the said sub-section (7) within the jurisdiction of the revenue sub-division in which the hotel is located; (c)  in case the hotel is located in a place where there is need for development of infrastructure for tourism, such place has been specified by the Central Government under clause (a) of the said sub-section (7) on the recommendations of the Department of Tourism.]

Rule-18DB, Income-tax Rules

• 18DB. (1) For the purpose of sub-section (7A) and clause (da) of sub-section (14) of section 80-IB, the multiplex theatre shall have the following area, facilities and amenities :— (a)  The total built-up area occupied by all the cinema theatres comprised in the multiplex shall not be less than 22,500 square feet, and shall consist at least 50% of the total built-up area of the multiplex excluding the area specified for parking. (b)  The multiplex theatres shall be comprised of at least three cinema theatres and at least three commercial shops. (c)  Total seating capacity of all the cinema theatres comprised in the multiplex shall be at least 900 seats, and no cinema theatre should consist of less than 100 seats. (d)  The total built-up area occupied by all the commercial shops comprised in the multiplex theatre shall not be less than 3000 sq. ft., and the minimum built-up area of each shop shall not be less than 250 sq. ft. (e)  There shall be at least one lobby or foyer in the cinema theatres, whose area shall be at least 3 sq. ft. per seat. (f)  The multiplex theatre shall have adequate parking, toilet blocks and other public conveniences, as per local building or cinema regulations, and shall also fulfil all local building or cinema regulations in respect of fire and safety. (g)  The cinema theatres comprised in the multiplex theatre shall use modern stereo projection systems with at least two screen speakers per screen and one surround speaker per 25 seats in a theatre. (h)  The cinema theatres shall use seats with seat pitch not less than 20" (centre to centre). (i)  Ticketing system employed by the cinema theatres shall be fully computerised. (j)  The multiplex theatre cinema shall be centrally air-conditioned. Explanation.—For the purposes of this rule, the expression "modern stereo projection systems" shall consist of xenon lamp, platter and digital sound systems.
• (2) A separate report of the audit, shall be furnished along with the return of income in respect of each eligible multiplex theatre, in Form No. 10CCBA and shall be duly signed and verified by an accountant as defined in the Explanation below sub-section (2) of section 288.
• (3) In the first year of the claim of deduction, the assessee shall enclose along with the audit report, a copy of approvals for exhibition of cinema given by various State or local authorities, which shall, where applicable, include the following :— (a)  no-objection certificate with respect to the location of the multiplex by the concerned licensing authority; (b)  permission for construction of the multiplex by the concerned licensing authority; (c)  permission to construct the building from the town planning authority or municipal corporation; (d)  completion certificate or occupation certificate, as the case may be, from the town planning authority or municipal corporation, certifying the completion of the multiplex theatre, during the period commencing on the 1st day of April, 2002 and ending on the 31st day of March, 2005; and (e)  operating license issued by the concerned licensing authority.
• (4) After the first year of claim of deduction, in the subsequent four years, the audit report shall be enclosed with the operating license issued from time to time, by the concerned licensing authority for exhibition of cinema.]

Rule-18DE, Income-tax Rules

• 18DE. (1) For the purposes of clause (a) of sub-section (6) of section 80-ID, the convention centre shall have the following area, facilities and amenities,—
• (a)  A convention centre located in the specified area mentioned in column (1) of the Table below, shall have a minimum covered plinth area mentioned in column (2), minimum seating capacity mentioned in column (3) and minimum number of convention halls, for the purpose of holding conferences and seminars, mentioned in column (4) of the said Table. TABLE  Specified area Minimum covered plinth area (in sq. mtrs.) Minimum seating capacity Minimum number of convention halls  (1) (2) (3) (4)  National Capital Territory of Delhi, Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad 25000 3000 10 (b)  The convention centre shall have convention halls, whether called conference halls or seminar halls or auditorium or by any other name, for holding seminars and conferences. (c)  Each convention hall of the convention centre shall be equipped with modern public address system, slide and power point projection system and LCD projector or Video screening facility. (d)  The convention centre shall have a documentation centre with computers and printers, telephone with STD/ISD facilities, E-mail, photocopy and scanning facility along with trained operators to provide these facilities. (e)  The convention centre shall be completely centrally air-conditioned. (f)  The convention centre shall have adequate parking facility and other public conveniences as per the local building regulations and should also fulfil all local building regulations in respect of fire and safety.
• (2) In addition to the facilities mentioned in sub-rule (1), the convention centres may have,— (a)  an amphi-theatre and landscaped open spaces for outdoor conference or seminar related activities; (b)  a kitchen, dining facility, cafeteria or restaurant only to support events in the convention centre.
• (3) For the purposes of clause (iv) of sub-section (3) of section 80-ID, the report of an audit shall be in Form No. 10CCBBA.]

Rule-19A, Income-tax Rules

• 19A. [Omitted by the IT (Thirty-second Amdt.) Rules, 1999, w.e.f. 19-11-1999.]

Rule-19AC, Income-tax Rules

• 19AC. (1) The certificate, which is required to be furnished by the assessee under sub-section (3) of section 80QQB from a person responsible for making payment to the assessee, shall be in Form No. 10CCD.
• (2) The certificate in Form No. 10CCD duly verified by the person responsible for making the payment to the assessee is required to be furnished along with the return of income.]

Rule-20, Income-tax Rules

• 20. The Board, before granting approval to a public company, [under clause (xix) of sub-section (2) of section 80C or] under clause (xvi) of sub-section (2) of section 88, shall satisfy itself that the application made to it fulfils the following requirements, namely :—
• (1)  An application for approval has been made in the Form No. 59 by the public company three months before the [eligible issue of capital].  [Explanation.—For the purposes of this rule, "the eligible issue of capital" means an issue referred to in clause (i) of the Explanation to clause (xix) in sub-section (2) of section 80C or in clause (i) of the Explanation to clause (xvi) in sub-section (2) of section 88.]
• (2)  Every application shall be accompanied by the following documents, namely :— (a)  a copy of the certificate of incorporation under the Companies Act, 1956 (1 of 1956); (b)  audited balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made :  Provided that where a company has been in existence for a period of less than three years, in that case that company may furnish balance sheet and profit and loss account for the period of its existence.
• (3)  Every such public company shall invest its total paid-up capital (hereinafter referred to as such capital) raised through equity issue or debentures in the following manner :— (i)  twenty-five per cent or more of such capital shall be invested in the infrastructure facility before the end of one year from the date of approval of the Board; (ii)  the balance of such capital shall be invested within a period of three years from the date of approval.
• (4) Â Every such public company shall submit a certificate from an accountant, as defined in the Explanation in sub-section (2) of section 288, specifying the amount invested in each year, from the date of approval of the Board.
• (5) Â The Board shall pass an order in writing granting approval or refusing approval to such public company, as the case may be : Â Provided that no order refusing approval shall be passed by the Board before allowing an opportunity of being heard to the public company.
• (6)  The Board shall have the power to withdraw the approval granted under sub-rule (5) in the following circumstances, namely :— (a)  if such public company fails to make investments as per conditions mentioned in sub-rule (3); or (b)  if such public company fails to file the certificate referred to in sub-rule (4).]

Rule-21A, Income-tax Rules

• 21A. [(1) Where, by reason of any portion of an assessee`s salary being paid in arrears or in advance or, by reason of any portion of family pension received by an assessee being paid in arrears or, by reason of his having received in any one financial year salary for more than twelve months or a payment which under the provisions of clause (3) of section 17 is a profit in lieu of salary, his income is assessed at a rate higher than that at which it would otherwise have been assessed, the relief to be granted under sub-section (1) of section 89 shall be— (a)  where any portion of the assessee`s salary is received in arrears or in advance or, any portion of family pension is received by an assessee in arrears, in accordance with the provisions of sub-rule (2); (b)  where the payment is in the nature of gratuity in respect of past services of the assessee extending over a period of not less than five years, in accordance with the provisions of sub-rule (3); (c)  where the payment is in the nature of compensation received by the assessee from his employer or former employer at or in connection with the termination of his employment after continuous service for not less than three years and where the unexpired portion of his term of employment is also not less than three years, in accordance with the provisions of sub-rule (4); (d)  where the payment is in commutation of pension, in accordance with the provisions of sub-rule (5); and (e)  where the payment is not in the nature of salary paid in arrears or in advance or gratuity in respect of past services or compensation received at or in connection with the termination of employment or in commutation of pension, in accordance with the provisions of sub-rule (6).
• (2)(a) In a case referred to in clause (a) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the salary is received in arrears or in advance or, in which the family pension is received in arrears (such salary or family pension being hereafter in this sub-rule referred to respectively as the additional salary or additional family pension, as the case may be, and such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by the amount, if any, by which the tax on the additional salary or additional family pension, calculated in the manner specified in clause (b), exceeds the tax or the aggregate tax on the additional salary or additional family pension, calculated in the manner specified in clause (c) or clause (d), as the case may be. (b) Tax shall be calculated on the total income of the relevant previous year as reduced by the additional salary or additional family pension, as the case may be, as if the total income so reduced were the total income of the assessee, and the amount by which the tax so calculated falls short of the tax on the total income before such reduction shall, for the purposes of clause (a), be taken to be the tax on the additional salary or additional family pension, under this clause. (c) Where the additional salary or additional family pension, as the case may be, relates to only one previous year, tax shall be calculated on the total income of the said previous year as increased by the additional salary or additional family pension, as if the total income so increased were the total income of the assessee, and the amount by which the tax so calculated exceeds the tax payable by the assessee in respect of the total income of the said previous year shall, for the purposes of clause (a), be taken to be the tax on the additional salary or additional family pension, under this clause. (d) Where the additional salary or additional family pension, as the case may be, relates to more than one previous year,— (i)  the previous years to which the additional salary or additional family pension relates and the amount relating to each such previous year shall first be ascertained; (ii)  tax shall, then, be calculated on the total income of each such previous year as increased by the amount relating to such previous year ascertained under sub-clause (i); as if the total income so increased were the total income of that previous year, and the amount by which the aggregate amount of tax in respect of the aforesaid previous years as calculated under sub-clause (ii) exceeds the aggregate amount of tax payable by the assessee in respect of the total income of the said previous years shall, for the purposes of clause (a), be taken to be the aggregate tax on the additional salary or additional family pension, under this clause.]
• (3) (a) In a case referred to in clause (b) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the payment by way of gratuity is received (such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by the amount, if any, by which the tax on the amount of the gratuity included in the total income of the relevant previous year, calculated at the average rate of tax applicable to such total income, exceeds the tax on the amount of such gratuity, calculated at the rate of tax determined under clause (b) or, as the case may be, clause (c). (b) Where the payment by way of gratuity is made in respect of past services of the assessee extending over a period of not less than five years but less than fifteen years,— (i)  the total income of the assessee in respect of each of the two previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-half of the amount of the gratuity included in the total income of the relevant previous year, and the average rate of tax for each of the said two previous years shall be calculated as if the total income so increased were the total income of that previous year; and (ii)  the average of the average rates of tax for the two previous years immediately preceding the relevant previous year, calculated in accordance with sub-clause (i), shall, for the purposes of clause (a), be the rate of tax determined under this clause. (c) Where the payment by way of gratuity is made in respect of past services of the assessee extending over a period of not less than fifteen years,— (i)  the total income of the assessee in respect of each of the three previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-third of the amount of the gratuity included in the total income of the relevant previous year, and the average rate of tax for each of the said three previous years shall be calculated as if the total income so increased were the total income of that previous year; and (ii)  the average of the average rates of tax for the three previous years immediately preceding the relevant previous year, calculated in accordance with sub-clause (i), shall, for the purposes of clause (a), be the rate of tax determined under this clause.
• (4) (a) In a case referred to in clause (c) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the payment by way of compensation is received (such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by the amount, if any, by which the tax on the amount of the compensation included in the total income of the relevant previous year, calculated at the average rate of tax applicable to such total income, exceeds the tax on the amount of such compensation, calculated at the rate of tax determined under clause (b). (b) The total income of the assessee in respect of each of the three previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-third of the amount of the compensation included in the total income of the relevant previous year, and the average rate of tax for each of the said three previous years shall be calculated as if the total income so increased were the total income of that previous year; and the average of the average rates of tax so calculated for the three previous years shall, for the purposes of clause (a), be the rate of tax determined under this clause.
• (5) (a) In a case referred to in clause (d) of sub-rule (1), the tax payable by the assessee on his total income of the previous year in which the payment in commutation of pension is received (such previous year being hereafter in this sub-rule referred to as the relevant previous year) shall be reduced by the amount, if any, by which the tax on the payment in commutation of pension included in the total income of the relevant previous year, calculated at the average rate of tax applicable to such total income, exceeds the tax on the amount of such payment, calculated at the rate of tax determined under clause (b). (b) The total income of the assessee in respect of each of the three previous years immediately preceding the relevant previous year shall be increased by an amount equal to one-third of the amount of payment in commutation of pension included in the total income of the relevant previous year, and the average rate of tax for each of the said three previous years shall be calculated as if the total income so increased were the total income of that previous year; and the average of the average rates of tax so calculated for the three previous years shall, for the purposes of clause (a), be the rate of tax determined under this clause.
• (6) In a case referred to in clause (e) of sub-rule (1), the Board may, having regard to the circumstances of the case, allow such relief as it deems fit.]

Rule-21AB, Income-tax Rules

• 21AB. [(1) Subject to the provisions of sub-rule (2), for the purposes of sub-section (5) of section 90 and sub-section (5) of section 90A, the following information shall be provided by an assessee in Form No. 10F, namely:— (i)  Status (individual, company, firm etc.) of the assessee; (ii)  Nationality (in case of an individual) or country or specified territory of incorporation or registration (in case of others); (iii)  Assessee`s tax identification number in the country or specified territory of residence and in case there is no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory of which the asseessee claims to be a resident; (iv)  Period for which the residential status, as mentioned in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A, is applicable; and (v)  Address of the assessee in the country or specified territory outside India, during the period for which the certificate, as mentioned in (iv) above, is applicable.
• (2) The assessee may not be required to provide the information or any part thereof referred to in sub-rule (1) if the information or the part thereof, as the case may be, is contained in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A. (2A) The assessee shall keep and maintain such documents as are necessary to substantiate the information provided under sub-rule (1) and an income-tax authority may require the assessee to provide the said documents in relation to a claim by the said assessee of any relief under an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A, as the case may be.]
• (3) An assessee, being a resident in India, shall, for obtaining a certificate of residence for the purposes of an agreement referred to in section 90 and section 90A, make an application in Form No. 10FA to the Assessing Officer.
• (4) The Assessing Officer on receipt of an application referred to in sub-rule (3) and being satisfied in this behalf, shall issue a certificate of residence in respect of the assessee in Form No. 10FB.]

Rule-21AC, Income-tax Rules

• 21AC. (1) For the purposes of clause (a) of sub-section (3) of section 94A, the authorisation to be submitted by the assessee, shall be in Form No. 10FC.
• (2) The assessee shall cause the first copy of the duly filled Form No. 10FC to be deposited with or transmitted to the financial institution referred to in clause (a) of sub-section (3) of section 94A.
• (3) The second copy of the Form No. 10FC along with the evidence of the first copy of said Form having been deposited or transmitted to the financial institution shall be submitted by the assessee to the Assessing Officer having jurisdiction over him.
• (4) For the purpose of ensuring that the authorisation in Form No. 10FC is legally enforceable, the assessee shall take all necessary steps as are required under any law for the time being in force in India or outside India.
• (5) For the purposes of clause (b) of sub-section (3) of section 94A, the assessee who has entered into a transaction with a person located in a notified jurisdictional area (hereinafter referred to as the specified person) shall, in addition to information and documents referred to in sub-rule (1) of rule 10D, keep and maintain the following information and documents, namely:— (a)  a description of the ownership structure of the specified person, including name and address of individuals or other entities, whether located in the notified jurisdictional area or outside, having directly or indirectly more than ten per cent shareholding or ownership interests; (b)  a profile of the multinational group of which the specified person is a part along with the name, address, legal status and country of tax residence of each of the enterprises comprised in the group with whom the assessee has entered into a transaction, and ownership linkage among them; (c)  a broad description of the business of the specified person and the industry it operates in; (d)  any other information, data or document, which may be relevant for the transaction with the specified person.
• (6) The information and documents specified in sub-rule (5) shall be for the period upto the due date of filing of return of income under sub-section (1) of section 139.
• (7) The information and documents specified in sub-rule (5) shall be kept and maintained for a period of eight years from the end of the relevant assessment year.]

Rule-22, Income-tax Rules

• 22. (1) An application for registration of a firm for the purposes of the Act shall be made in accordance with the provisions of sub-rules (2) to (5).
• (2) Where the application is made before the end of the relevant previous year— (i)  and where no change in the constitution of the firm or the shares of the partners has taken place during the previous year before the date of the application— (a)  the application shall be made in Form No. 11; and (b)  it shall be accompanied by the original instrument evidencing the partnership at the date of the application together with a copy thereof. A certified copy of the instrument together with a duplicate copy thereof may be attached to the application if, for sufficient reason, the original instrument cannot be produced; (ii)  and where any change or changes in the constitution of the firm or the shares of the partners have taken place during the previous year before the date of the application— (a)  the application shall be made in Form No. 11A; and (b)  it shall be accompanied by the original instrument or instruments, evidencing the partnership as in existence from time to time during the previous year up to the date of the application together with copies thereof. A certified copy of the instrument or instruments together with a duplicate copy thereof may be attached to the application if, for sufficient reason, the original instrument or instruments cannot be produced.
• (3) Where after the date of making an application under sub-rule (2), any change or changes in the constitution of the firm or the shares of the partners have taken place during the previous year, a fresh application shall be made after each such change takes place in accordance with the provisions of sub-clauses (a) and (b) of clause (ii) of sub-rule (2) and the time-limit prescribed in sub-section (4) of section 184 shall apply to each such application.
• (4) Where the application is made after the end of the relevant previous year— (i)  and where no change in the constitution of the firm or the shares of the partners has taken place during the said previous year and up to the date of the application, the application shall be made in accordance with the provisions of sub-clauses (a) and (b) of clause (i) of sub-rule (2); (ii)  and where any change or changes in the constitution of the firm or the shares of the partners have taken place during the said previous year and/or after the end of the previous year but before the date of the application— (a)  the application shall be made in Form No. 11A; and (b)  it shall be accompanied by the original instrument or instruments evidencing the partnership as in existence from time to time during the previous year and up to the date of the application together with copies thereof. A certified copy of the instrument or instruments together with a duplicate copy thereof may be attached to the application if, for sufficient reason, the original instrument or instruments cannot be produced.
• (5) The application shall be signed personally by all the partners (not being minors) in the firm as constituted at the date of the application and, in the case of a dissolved firm, personally by all the persons (not being minors) who were partners in the firm immediately before its dissolution and by the legal representative of any such partner who is deceased so, however, that in the case of any partner who is absent from India or is a lunatic or an idiot, the application may be signed by any person duly authorised by him in this behalf, or, as the case may be, by a person entitled under law to represent him.

Rule-28AA

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Rule-28AB, Income-tax Rules

• 28AB. (1) Subject to the conditions specified in sub-rule (2), a person— (a)  in receipt of income or deemed income derived from property held under trust wholly for charitable or religious purposes and who claims exemption under section 11 or section 12; or (b)  required to file a return in respect of a scientific research association, news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union referred to in sub-section (4C) of section 139, may make an application to the Assessing Officer for the grant of a certificate under sub-section (1) of section 197 authorizing him to receive incomes without deduction of tax at source.
• (2) The conditions referred to in sub-rule [(1)] are the following, namely :— (i)  the person concerned has furnished the returns of income for all assessment years for which such returns became due on or before the date on which the application under sub-rule (1) is made; 9[and] (ii)  the trust, scientific research association, news agency, association or institution, fund or trust or university or other educational institution or any hospital or other medical institution or trade union referred to in sub-rule (1) is for the time being approved for the purpose of exemption from income-tax; 10[***] (iii)  11[***]
• (3) An application for the certificate is to be made to the Assessing Officer in accordance with sub-rule (1) of rule 28.
• (4) The Assessing Officer may issue a certificate authorizing payment of incomes without deduction of tax at source if he is satisfied that all the conditions laid down in sub-rule (2) are fulfilled and the issue of any such certificate will not be prejudicial to the interests of revenue.
• (5) The applicant may furnish copies of certificate issued under sub-rule (4) to the person responsible for paying the income for the purpose of no deduction of tax at source.
• (6) The certificate shall be valid for the financial year specified therein unless it is cancelled by the Assessing Officer at any time before the expiry of the said financial year.
• (7) An application for a fresh certificate may be made, if the assessee so desires, after the expiry of the period of validity of the earlier certificate.]

Rule-29, Income-tax Rules

• 29. (1) [The Assessing Officer, on being satisfied that the total income of the shareholder justifies the deduction of income-tax at any lower rates or no deduction of income-tax, as the case may be, shall, on an application made under sub-rule (1) of rule 28 by the assessee, give him a certificate authorising the payment of a dividend to him, under sub-section (1) of section 197, without deduction of tax or, as the case may be, after deduction of tax at rates lower than the rates in force only if the following conditions are satisfied, namely :] (a)  The shares in respect of which the certificate is sought for by him— (i)  are shares in public companies; and (ii)  stand in his name and are beneficially owned by him, and the dividends therefrom are not includible in the total income of any other person under sections 60 to 64, or  stand in his name and are held by him under trust wholly for charitable or religious purposes, and the dividends therefrom [are exempt from tax under the provisions of sections 11 to 13]. (b)  An application for the certificate is made to the [Assessing Officer] in accordance with sub-rule [(1)] [* * *] of rule 28.
• (2) The certificate shall be valid for such period (not exceeding three years from the date of certificate), as the [Assessing Officer] may specify therein, unless it is cancelled by him at any time before the expiry of the specified period. An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate.
• (3) The certificate shall be valid only for the person named therein, and shall cease to be operative from the date of notice to the company of the transfer of any of the shares mentioned therein to another person, in respect of the shares so transferred.
• (4) The certificate shall be issued direct to the principal officer of the company under advice to the applicant shareholder.

Rule-29B, Income-tax Rules

• 29B. (1) Any person entitled to receive any interest, or other sum, on which income-tax has to be deducted under sub-section (1) of section 195 may, if he fulfils the conditions specified in sub-rule (2), make an application for the grant of a certificate under sub-section (3) of section 195 authorising him to receive without deduction of tax under sub-section (1) of that section any such income as is specified hereinbelow, namely :— (i)  where the person concerned is a banking company which is neither an Indian company nor a company which has made the prescribed arrangements for the declaration and payment of dividends within India, and which carries on operations in India through a branch, any income by way of interest, not being 1[interest on securities (other than interest payable on securities referred to in proviso to section 193)], or any other sum, not being dividends; (ii)  in the case of any other person who carries on a business or profession in India through a branch, any sum, not being interest or dividends, in so far as such interest or other sum is receivable by such branch on its own account and not on behalf of its head office or any branch situated outside India, or any other person.
• (2) The conditions referred to in sub-rule (1) are the following, namely :— (i)  the person concerned has been regularly assessed to income-tax in India and has furnished the returns of income for all assessment years for which such returns became due on or before the date on which the application under sub-rule (1) is made; (ii)  he is not in default or deemed to be in default in respect of any tax (including advance tax and tax payable under section 140A), interest, penalty, fine, or any other sum payable under the Act; (iii)  [***] (iv)  where the person concerned is not a banking company referred to in clause (i) of sub-rule (1)— (a)  he has been carrying on business or profession in India continuously for a period of not less than five years immediately preceding the date of the application, and (b)  the value of the fixed assets in India of such business or profession as shown in his books for the previous year which ended immediately before the date of the application or, where the accounts in respect of such previous year have not been made up before the said date, the previous year immediately preceding that year, exceeds fifty lakhs of rupees.
• (3) The application under sub-rule (1) by a banking company shall be in Form No. 15C and by any other person [referred to in clause (ii) of sub-rule (1)] shall be in Form No. 15D.
• (4) The [Assessing Officer] may give a certificate authorising the person con-cerned to receive the income specified in clause (i) or clause (ii) of sub-rule (1), without deduction of tax under sub-section (1) of section 195, if he is satisfied that all the conditions laid down in sub-rule (2) are fulfilled and the issue of any such certificate will not be prejudicial to the interests of revenue.
• (5) The certificate shall be valid for the financial year specified therein, unless it is cancelled by the [Assessing Officer] at any time before the expiry of the said financial year. An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate, or within three months before the expiry thereof.

Rule-29D, Income-tax Rules

• 29D. (1) The declaration under the second proviso to clause (i) of sub-section (3) of section 194C by a sub-contractor shall be in Form No. 15-I and shall be verified in the manner indicated therein by such sub-contractor.
• (2) The declaration referred to in sub-rule (1) may be furnished to the contractor responsible for paying or crediting any sum to the account of the sub-contractor before the event of such sum being credited or paid to such sub-contractor.
• (3) The particulars under the third proviso to clause (i) of sub-section (3) of section 194C to be furnished by a contractor responsible for paying any sum to such sub-contractor shall be in Form No. 15J.
• (4) The particulars referred to in sub-rule (3) shall be furnished,— (i)  to the Commissioner of Income-tax, so designated by the Chief Commissioner of Income-tax, within whose area of jurisdiction, the office of the contractor referred to in sub-rule (3) is situated; (ii)  on or before the 30th June following the financial year.]

Rule-30, Income-tax Rules

• 30. (1) All sums deducted in accordance with the provisions of Chapter XVII-B by an office of the Government shall be paid to the credit of the Central Government— (a)  on the same day where the tax is paid without production of an income-tax challan; and (b)  on or before seven days from the end of the month in which the deduction is made or income-tax is due under sub-section (1A) of section 192, where tax is paid accompanied by an income-tax challan.
• (2) All sums deducted in accordance with the provisions of Chapter XVII-B by deductors other than an office of the Government shall be paid to the credit of the Central Government— (a)  on or before 30th day of April where the income or amount is credited or paid in the month of March; and (b)  in any other case, on or before seven days from the end of the month in which— (i)  the deduction is made; or (ii)  income-tax is due under sub-section (1A) of section 192.
• [(2A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194-IA shall be paid to the credit of the Central Government within a period of [thirty days] from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QB.]
• 1[(2B) Notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194-IB shall be paid to the credit of the Central Government within a period of thirty days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QC.]
• 1a[(2C) Notwithstanding anything contained in sub-rule (1) or sub-rule (2), any sum deducted under section 194M shall be paid to the credit of the Central Government within a period of thirty days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QD.]
• (3) Notwithstanding anything contained in sub-rule (2), in special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of the Table below by the date referred to in column (3) of the said Table:—
• (4) In the case of an office of the Government, where tax has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person by whatever name called to whom the deductor reports the tax so deducted and who is responsible for crediting such sum to the credit of the Central Government, [shall submit a statement in Form No.24G to the agency authorised by the Principal Director of Income-tax (Systems) in respect of tax deducted by the deductors and reported to him.] [(4A) Statement referred to in sub-rule (4) shall be furnished— (a)  on or before the 30th day of April where the statement relates to the month of March; and (b)  in any other case, on or before 15 days from the end of relevant month. (4B) Statement referred to in sub-rule (4) shall be furnished in the following manner, namely:— (a)  electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5); or (b)  electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under sub-rule (5). (4C) The persons referred to in sub-rule (4) shall intimate the number (hereinafter referred to as the Book Identification Number) generated by the agency to each of the deductors in respect of whom the sum deducted has been credited.]
• [(5) The Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements and shall be responsible for the day-to-day administration in relation to furnishing of the information and verification of the statements.].
• (6)(i) Where tax has been deposited accompanied by an income-tax challan, the amount of tax so deducted or collected shall be deposited to the credit of the Central Government by remitting it within the time specified in clause (b) of sub-rule (1) or in sub-rule (2) or in sub-rule (3) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorised bank. (ii) Where tax is to be deposited in accordance with clause (i), by persons referred to in sub-rule (1) of rule 125, the amount deducted shall be electronically remitted into the Reserve Bank of India or the State Bank of India or any authorised bank accompanied by an electronic income-tax challan. [(6A) Where tax deducted is to be deposited accompanied by a challan-cum-statement in Form No. 26QB, the amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it electronically within the time specified in sub-rule (2A) into the Reserve Bank of India or the State Bank of India or any authorised bank.] 2[(6B) Where tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QC, the amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it electronically within the time specified in sub-rule (2B) into the Reserve Bank of India or the State Bank of India or any authorized bank.] 3[(6C) Where tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QD, the amount of tax so deducted shall be deposited to the credit of the Central Government by remitting it electronically within the time specified in sub-rule (2C) into the Reserve Bank of India or the State Bank of India or any authorised bank.]
• (7) For the purpose of this rule, the amount shall be construed as electronically remitted to the Reserve Bank of India or to the State Bank of India or to any authorised bank, if the amount is remitted by way of— (a)  internet banking facility of the Reserve Bank of India or of the State Bank of India or of any authorised bank; or (b)  debit card. [(7A) The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purposes of remitting the amount electronically to the Reserve Bank of India or the State Bank of India or any authorised bank and shall be responsible for the day-to-day administration in relation to the remitting of the amount electronically in the manner so specified.]
• (8) Where tax is deducted before the 1st day of April, 2010, the provisions of this rule shall apply as they stood immediately before their substitution by the Income-tax (Sixth Amendment) Rules, 2010.]

Rule-31, Income-tax Rules

• 31. (1) The certificate of deduction of tax at source by any person in accordance with Chapter XVII-B or the certificate of payment of tax by the employer on behalf of the employee under sub-section (1A) of section 192 shall be in— (a)  Form No. 16, if the deduction or payment of tax is under section 192; and (b)  Form No. 16A if the deduction is under any other provision of Chapter XVII-B.
• (2) The certificate referred to in sub-rule (1) shall specify:— (a)  valid permanent account number (PAN) of the deductee; (b)  valid tax deduction and collection account number (TAN) of the deductor; (c)  (i) book identification number or numbers where deposit of tax deducted is without production of challan in case of an office of the Government;  (ii) challan identification number or numbers in case of payment through bank; (d)  (i) receipt number of the relevant quarterly statement of tax deducted at source which is furnished in accordance with the provisions of rule 31A;  (ii) receipt numbers of all the relevant quarterly statements in case the statement referred to in clause (i) is for tax deducted at source from income chargeable under the head "Salaries".
• (3) The certificates in Forms specified in column (2) of the Table below shall be furnished to the employee or the payee, as the case may be, as per the periodicity specified in the corresponding entry in column (3) and by the time specified in the corresponding entry in column (4) of the said Table:—
• Sl. No. Form No. Periodicity Due date (1) (2) (3) (4) 1. 16 Annual By 1[15th day of June] of the financial year immediately following the financial year in which the income was paid and tax deducted. 2. 16A Quarterly Within fifteen days from the due date for furnishing the statement of tax deducted at source under rule 31A. [(3A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3), every person responsible for deduction of tax under section 194-IA shall furnish the certificate of deduction of tax at source in Form No.16B to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No. 26QB under rule 31A after generating and downloading the same from the web portal specified by the Director General of Income-tax (System) or the person authorised by him.] 2[(3B) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3), every person responsible for deduction of tax under section 194-IB shall furnish the certificate of deduction of tax at source in Form No.16C to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No.26QC under rule 31A after generating and downloading the same from the web portal specified by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or the person authorised by him.] 3[(3C) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3), every person responsible for deduction of tax under section 194M shall furnish the certificate of deduction of tax at source in Form No.16D to the payee within fifteen days from the due date for furnishing the challan-cum-statement in Form No.26QD under rule 31A after generating and downloading the same from the web portal specified by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or the person authorised by him.]
• (4) If an assessee is employed by more than one employer during the year, each of the employers shall issue Part A of the certificate in Form No. 16 pertaining to the period for which such assessee was employed with each of the employers and Part B may be issued by each of the employers or the last employer at the option of the assessee.
• (5) The deductor may issue a duplicate certificate in Form No. 16 or Form No. 16A if the deductee has lost the original certificate so issued and makes a request for issuance of a duplicate certificate and such duplicate certificate is certified as duplicate by the deductor.
• (6) (i) Where a certificate is to be furnished in Form No. 16, the deductor may, at his option, use digital signatures to authenticate such certificates. (ii) In case of certificates issued under clause (i), the deductor shall ensure that— (a)  the provisions of sub-rule (2) are complied with; (b)  once the certificate is digitally signed, the contents of the certificates are not amenable to change; and (c)  the certificates have a control number and a log of such certificates is maintained by the deductor. [(6A) The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purposes of generation and download of certificates and shall be responsible for the day-to-day administration in relation to the generation and download of certificates from the web portal specified by him or the person authorised by him.]
• (7) Where a certificate is to be furnished for tax deducted before the 1st day of April, 2010, it shall be furnished in the Form in accordance with the provisions of the rules as they stood immediately before their substitution by the Income-tax (Sixth Amendment) Rules, 2010.

Rule-31A, Income-tax Rules

• 31A. (1) Every person responsible for deduction of tax under Chapter XVII-B, shall, in accordance with the provisions of sub-section (3) of section 200, deliver, or cause to be delivered, the following quarterly statements to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), namely:— (a)  Statement of deduction of tax under section 192 in Form No. 24Q; (b)  Statement of deduction of tax under sections 193 to 196D in— (i)  Form No. 27Q in respect of the deductee who is a non-resident not being a company or a foreign company or resident but not ordinarily resident; and (ii)  Form No. 26Q in respect of all other deductees.
• [(2) Statements referred to in sub-rule (1) for the quarter of the financial year ending with the date specified in column (2) of the Table below shall be furnished by the due date specified in the corresponding entry in column (3) of the said Table: Table Sl. No. Date of ending of quarter of financial year Due date (1) (2) (3) 1. 30th June 31st July of the financial year 2. 30th September 31st October of the financial year 3. 31st December 31st January of the financial year 4. 31st March 31st May of the financial year immediately following the financial year in which the deduction is made]
• (3) (i) The statements referred to in sub-rule (1) may be furnished in any of the following manners, namely:— (a)  furnishing the statement in paper form; [(b)  furnishing the statement electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5); (c)  furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under sub-rule (5).] (ii) Where,— (a)  the deductor is an office of the Government; or (b)  the deductor is the principal officer of a company; or (c)  the deductor is a person who is required to get his accounts audited under section 44AB in the immediately preceding financial year; or (d)  the number of deductee`s records in a statement for any quarter of the financial year are twenty or more, the deductor shall furnish the statement in the manner specified in [item (b) or item (c) of clause (i)]. (iii) Where deductor is a person other than the person referred to in clause (ii), the statements referred to in sub-rule (1) may, at his option, be delivered or cause to be delivered in the manner specified in [item (b) or item (c) of clause (i)]. [(3A) A claim for refund, for sum paid to the credit of the Central Government under Chapter XVII-B, shall be furnished by the deductor in Form 26B electronically under digital signature 1[or verified through an electronic process] in accordance with the procedures, formats and standards specified under sub-rule (5).]
• (4) The deductor at the time of preparing statements of tax deducted shall,— (i)  quote his tax deduction and collection account number (TAN) in the statement; (ii)  quote his permanent account number (PAN) in the statement except in the case where the deductor is an office of the Government; (iii)  quote the permanent account number of all deductees; (iv)  furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be; [(v)  furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee; (vi)  furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee;] [(vii)  furnish particulars of amount paid or credited on which tax was not deducted in view of the furnishing of declaration under sub-section (1) or sub-section (1A) or sub-section (1C) of section 197A by the payee;] [(viii)  furnish particulars of amount paid or credited on which tax was not deducted in view of the notification issued under sub-section (1F) of section 197A.] 1a[(ix)  furnish particulars of amount paid or credited on which tax was not deducted in view of the exemption provided in clause (iii) or clause (iv) of the proviso to section 194N or in view of the notification issued under clause (v) of the proviso to section 194N.] [(4A) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3) or sub-rule (4), every person responsible for deduction of tax under section 194-IA shall furnish to the Director General of Income-tax (System) or the person authorised by the Director General of Income-tax (System) a challan-cum-statement in Form No. 26QB electronically in accordance with the procedures, formats and standards specified under sub-rule (5) within [thirty days] from the end of the month in which the deduction is made.]
• 2[(4B) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3) or sub-rule (4), every person responsible for deduction of tax under section 194-IB shall furnish to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (System) or the person authorised by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) a challan-cum-statement in Form No.26QC electronically in accordance with the procedures, formats and standards specified under sub-rule (5) within thirty days from the end of the month in which the deduction is made.] 3[(4C) Notwithstanding anything contained in sub-rule (1) or sub-rule (2) or sub-rule (3) or sub-rule (4), every person responsible for deduction of tax under section 194M shall furnish to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (System) or the person authorised by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) a challan-cum-statement in Form No.26QD electronically in accordance with the procedures, formats and standards specified under sub-rule (5) within thirty days from the end of the month in which the deduction is made.]
• [(5) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements or claim for refund in Form 26B and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements or claim for refund in Form 26B in the manner so specified.]
• (6) Where a statement of tax deducted at source is to be furnished for tax deducted before the 1st day of April, 2010, the provisions of this rule and rule 37A shall apply as they stood immediately before their substitution or omission by the Income-tax (Sixth Amendment) Rules, 2010.]

Rule-31AA, Income-tax Rules

• 31AA. (1) Every collector, shall, in accordance with the provisions of the proviso to sub-section (3) of section 206C, deliver, or cause to be delivered, to the Director General of Income-tax (Systems) or the person authorised by the Director General of Income-tax (Systems), a quarterly statement in Form No. 27EQ.
• (2) Statements referred to in sub-rule (1) for the quarter of the financial year ending with the date specified in column (2) of the Table below shall be furnished by the due date specified in the corresponding entry in column (3) of the said Table:— TABLE Sl. No. Quarter of the financial year ended Due date (1) (2) (3) 1. 30th June 15th July of the financial year 2. 30th September 15th October of the financial year 3. 31st December 15th January of the financial year 4. 31st March 15th May of the financial year immediately following the financial year in which collection is made
• (3) (i) The statement referred to in sub-rule (1) may be furnished in any of the following manners, namely:— (a)  furnishing the statement in paper form; [ (b)  furnishing the statement electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (5); (c)  furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under sub-rule (5); ] (ii) Where,— (a)  the collector is an office of the Government; or (b)  the collector is the principal officer of a company; or (c)  the collector is a person who is required to get his accounts audited under section 44AB in the immediately preceding financial year; (d)  the number of collectee`s records in a statement for any quarter of the financial year are twenty or more, the collector shall furnish the statement in the manner specified in [item (b) or item (c) of clause (i)]. (iii) Where the collector is a person other than the person referred to in clause (ii), the statement referred to in sub-rule (1) may, at his option, be delivered or cause to be delivered in the manner specified in [item (b) or item (c) of clause (i)].
• (4) The collector at the time of preparing statements of tax collected shall,— (i)  quote his tax deduction and collection account number (TAN) in the statement; (ii)  quote his permanent account number (PAN) in the statement except in the case where the collector is an office of the Government; (iii)  quote the permanent account number of all collectees; (iv)  furnish particulars of the tax paid to the Central Government including book identification number or challan identification number, as the case may be. [ (v)  furnish particulars of amount received or debited on which tax was not collected in view of the furnishing of declaration under sub-section (1A) of section 206C by the buyer. ]
• [ (5) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements and shall be responsible for the day-to-day administration in relation to furnishing and verification of the statements in the manner so specified. ]
• (6) Where a statement of tax collected at source is to be furnished for tax collected before the 1st day of April, 2010, the provisions of this rule shall apply as they stood immediately before their substitution by the Income-tax (Sixth Amendment) Rules, 2010.]

Rule-31AB, Income-tax Rules

• 31AB. 1[***]

Rule-31ACA, Income-tax Rules

• 31ACA. (1) The quarterly return to be furnished by a banking company under sub-section (1) of section 206A in respect of time deposits shall be in Form No. 26QAA and shall be verified in the manner indicated therein.
• (2) The quarterly return referred to in sub-rule (1) shall be furnished,— (i)  to the Director General of Income-tax (Investigation), New Delhi or the person authorised by the Director General of Income-tax (Investigation), New Delhi; (ii)  on or before the 31st July, the 31st October, the 31st January and the 30th June following the respective quarter of the financial year.
• (3) The quarterly return comprising Part A and Part B of Form No. 26QAA, referred to in sub-rule (1), shall be furnished on computer readable media being a CD-ROM (650 MB or higher capacity) or Digital Video Disc (DVD), along with Part A of such Form on paper.
• (4) The person responsible for furnishing the return referred to in sub-rule (1) shall ensure that— (i)  where the data relating to the return is copied using data compression or backup software utility, the corresponding software utility or procedure for its decompression or restoration shall also be furnished along with the return made on computer readable media; (ii)  the return is accompanied with a certificate regarding clean and virus free data. Explanation.—For the purposes of rule 31AC and rule 31ACA, "time deposits" means deposits (excluding recurring deposits) repayable on the expiry of fixed periods.]

Rule-35, Income-tax Rules

• 35. [Omitted by the IT (Sixth Amdt.) Rules, 1988, w.e.f. 12-7-1988.]

Rule-37, Income-tax Rules

• 37. Every person, being a person responsible for deducting tax under Chapter XVII-B shall, in respect of a previous year, deliver or cause to be delivered to the [Director-General of Income-tax (Systems) or the person or agency authorised by the Director General of Income-tax (Systems)] referred to in rule 36A, the returns mentioned in column (1) of the Table below in Form No. specified in the corresponding entry in column (2) of the said Table by the end of the month falling in the financial year immediately following the previous year as specified in the corres-ponding entry in column (3) of the said Table :— [TABLE Sl. No. Nature of returns Form No. Month  (1) (2) (3) 1. Annual return of deduction of tax under section 192 from "Salaries" 24 June 2. Annual return of deduction of tax under section 193 from "Interest on securities", under section 194 from "Dividends", under section 194A from "Interest other than interest on securities", under section 194B from "Winnings from lotteries or crossword puzzles", under section 194BB from "Winnings from horse races", under section 194C from "Payments to any contractor or sub-contractor", under section 194D from "Insurance commission", under section 194EE from "Payments in respect of deposits under the National Savings Scheme, etc.", under section 194F from "Payments on account of repurchase of units by Mutual Fund or Unit Trust of India", under section 194G from "Commission, etc., on sale of lottery tickets", under section 194H from "Commission or brokerage", under section 194-I from "Rent", under section 194J from "Fees for professional or technical services", [under section 194K from "Income in respect of units" and under section 194LA from "Payment of compensation on acquisition of certain immovable property"].

Rule-37BA, Income-tax Rules

• 37BA. (1) 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) Where under any provisions of the Act, the whole or any part of the income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, credit for the whole or any part of the tax deducted at source, as the case may be, shall be given to the other person and not to the deductee : 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 deduction 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. 1[ (3A) Notwithstanding anything contained in sub-rule (1), sub-rule (2) or sub-rule (3), for the purposes of section 194N, credit for tax deducted at source shall be given to the person from whose account tax is deducted and paid to the Central Government account for the assessment year relevant to the previous year in which such tax deduction is made.]
• (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 authorised 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.]

Rule-37BB, Income-tax Rules

• 37BB . (1) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable under the provisions of the Act, shall furnish the following, namely:— (i)  the information in Part A of Form No.15CA, if the amount of payment or the aggregate of such payments, as the case may be, made during the financial year does not exceed five lakh rupees; (ii)  for payments other than the payments referred in clause (i), the information,— (a)  in Part B of Form No.15CA after obtaining,— (I)  a certificate from the Assessing Officer under section 197; or (II)  an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195; (b)  in Part C of Form No.15CA after obtaining a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288.
• (2) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum which is not chargeable under the provisions of the Act, shall furnish the information in Part D of Form No.15CA.
• (3) Notwithstanding anything contained in sub-rule (2), no information is required to be furnished for any sum which is not chargeable under the provisions of the Act, if,— (i)  the remittance is made by an individual and it does not require prior approval of Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000; or (ii)  the remittance is of the nature specified in column (3) of the specified list below: SPECIFIED LIST Sl. No. Purpose code as per RBI Nature of payment (1) (2) (3) 1 S0001 Indian investment abroad - in equity capital (shares) 2 S0002 Indian investment abroad - in debt securities 3 S0003 Indian investment abroad - in branches and wholly owned subsidiaries 4 S0004 Indian investment abroad - in subsidiaries and associates 5 S0005 Indian investment abroad - in real estate 6 S0011 Loans extended to Non-Residents 7 S0101 Advance payment against imports 8 S0102 Payment towards imports - settlement of invoice 9 S0103 Imports by diplomatic missions 10 S0104 Intermediary trade 11 S0190 Imports below Rs.5,00,000 - (For use by ECD offices) 12 SO202 Payment for operating expenses of Indian shipping companies operating abroad 13 SO208 Operating expenses of Indian Airlines companies operating abroad 14 S0212 Booking of passages abroad - Airlines companies 15 S0301 Remittance towards business travel 16 S0302 Travel under basic travel quota (BTQ) 17 S0303 Travel for pilgrimage 18 S0304 Travel for medical treatment 19 S0305 Travel for education (including fees, hostel expenses etc.) 20 S0401 Postal services 21 S0501 Construction of projects abroad by Indian companies including import of goods at project site 22 S0602 Freight insurance - relating to import and export of goods 23 S1011 Payments for maintenance of offices abroad 24 S1201 Maintenance of Indian embassies abroad 25 S1202 Remittances by foreign embassies in India 26 S1301 Remittance by non-residents towards family maintenance and savings 27 S1302 Remittance towards personal gifts and donations 28 S1303 Remittance towards donations to religious and charitable institutions abroad 29 S1304 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments 30 S1305 Contributions or donations by the Government to international institutions 31 S1306 Remittance towards payment or refund of taxes 32 S1501 Refunds or rebates or reduction in invoice value on account of exports 33 S1503 Payments by residents for international bidding.
• (4) The information in Form No. 15CA shall be furnished,— (i)  electronically under digital signature in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment; or (ii)  electronically in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter signed printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment.
• (5) An income-tax authority may require the authorised dealer to furnish the signed printout of Form No.15CA referred to in clause (ii) of sub-rule (4) for the purposes of any proceedings under the Act.
• (6) The certificate in Form No. 15CB shall be furnished and verified electronically in accordance with the procedures, formats and standards specified by the Principal Director-General of Income-tax (Systems) under sub-rule (8).
• (7) The authorised dealer shall furnish a quarterly statement for each quarter of the financial year in Form No.15CC to the Principal Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) electronically under digital signature within fifteen days from the end of the quarter of the financial year to which such statement relates in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8).
• (8) The Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of Form 15CA, Form 15CB and Form 15CC and shall be responsible for the day-to-day administration in relation to the furnishing and verification of information, certificate and quarterly statement in accordance with the provisions of sub-rules (4), (6) and (7).

Rule-37CA, Income-tax Rules

• 37CA . (1) All sums collected in accordance with the provisions of sub-section (1) or sub-section (1C) of section 206C by an office of the Government shall be paid to the credit of the Central Government— (a)  on the same day where the tax is so paid without production of an income-tax challan; and (b)  on or before seven days from the end of the month in which the collection is made, where tax is paid accompanied by an income-tax challan.
• (2) All sums collected in accordance with the provisions of sub-section (1) or sub-section (1C) of section 206C by collectors other than an office of the Government shall be paid to the credit of the Central Government within one week from the last day of the month in which the collection is made.
• (3) In the case of an office of the Government, where tax has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person by whatever name called to whom the collector reports the tax so collected and who is responsible for crediting such sum to the credit of the Central Government, [shall submit a statement in Form No.24G to the agency authorised by the Principal Director of Income-tax (Systems) in respect of tax collected by the collectors and reported to him.] [ (3A) Statement referred to in sub-rule (3) shall be furnished— (a)  on or before the 30th day of April where the statement relates to the month of March; and (b)  in any other case, on or before 15 days from the end of relevant month. (3B) Statement referred to in sub-rule (3) shall be furnished in the following manner, namely:— (a)  electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (4); or (b)  electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under sub-rule (4).]
• [ (4) The Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements and shall be responsible for the day-to-day administration in relation to furnishing of the information and verification of the statements.].
• (5) (i) Where tax has been deposited accompanied by an income-tax challan, the tax collected under sub-section (1) or sub-section (1C) of section 206C shall be deposited to the credit of the Central Government by remitting it within the time specified in clause (b) of sub-rule (1) or in sub-rule (2) into any branch of the Reserve Bank of India or of the State Bank of India or of any authorised bank. (ii) Where tax is to be deposited in accordance with clause (i), by persons referred to in sub-rule (1) of rule 125, the amount collected shall be electronically remitted into the Reserve Bank of India or the State Bank of India or any authorised bank accompanied by an electronic income-tax challan.
• (6) For the purpose of this rule, the amount shall be construed as electronically remitted to the Reserve Bank of India or to the State Bank of India or to any authorised bank, if the amount is remitted by way of— (a)  internet banking facility of the Reserve Bank of India or of the State Bank of India or of any authorised bank; or (b)  debit card.
• (7) Where tax is collected before the 1st day of April, 2010, the provisions of this rule shall apply as they stood immediately before their substitution by the Income-tax (Sixth Amendment) Rules, 2010.]

Rule-37D, Income-tax Rules

• 37D. (1) The certificate of collection of tax at source under sub-section (5) of section 206C to be furnished by the collector shall be in Form 27D.
• (2) The certificate referred to in sub-rule (1) shall specify:— (a)  valid permanent account number (PAN) of the collectee; (b)  valid tax deduction and collection account number (TAN) of the collector; (c)  (i) book identification number or numbers where deposit of tax collected is without production of challan in case of an office of the Government;  (ii) challan identification number or numbers in case of payment through bank; (d)  receipt number of the relevant quarterly statement of tax collected at source which is furnished in accordance with the provisions of rule 31AA.
• (3) The certificate in the Form No. 27D referred to in sub-rule (1) shall be furnished to the collectee within fifteen days from the due date for furnishing the statement of tax collected at source specified under sub-rule (2) of rule 31AA.
• (4) The collector may issue a duplicate certificate in Form No. 27D if the collectee has lost the original certificate so issued and makes a request for issuance of a duplicate certificate and such duplicate certificate is certified as duplicate by the collector.
• (5) Where a certificate is to be furnished for tax collected before the 1st day of April, 2010, it shall be furnished in the Form in accordance with the provisions of the rules as they stood immediately before their substitution by the Income-tax (Sixth Amendment) Rules, 2010.]

Rule-37H, Income-tax Rules

• 4[37H. (1) Where the Assessing Officer, on an application made by a person under sub-rule (1) of rule 37G is satisfied that existing and estimated tax liability of a person justifies the collection of tax at lower rate, the Assessing Officer shall issue a certificate in accordance with the provisions of sub-section (9) of section 206C for collection of tax at such lower rate; (1A) The existing and estimated tax liability referred to in sub-rule (1) shall be determined by the Assessing Officer after taking into consideration the following, namely:— (i) tax payable on estimated income of the previous year relevant to the assessment year; (ii) tax payable on the assessed or returned or estimated income, as the case may be, of the last four previous years; (iii) existing liability under the Act and the Wealth-tax Act, 1957 (27 of 1957); (iv) advance tax payment, tax deducted at source and tax collected at source for the relevant assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 37G.]
• (2) The certificate given under sub-rule (1) shall be valid for the assessment year specified in that certificate, unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period.
• (3) An application for a fresh certificate may be made, if required, after the expiry of the period of validity of the earlier certificate given under sub-rule (1).
• (4) The certificate shall be valid only for the person named therein.
• (5) The certificate shall be issued direct to the person responsible for collecting the tax under advice to the buyer who made an application for issue of such certificate.]
• 5[(6) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall lay down procedures, formats and standards for issuance of certificate under sub-rule (5) and the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the issuance of said certificate.]

Rule-40B, Income-tax Rules

• 40B. The report of an accountant which is required to be furnished by the assessee along with the return of income, under sub-section (4) of section 115JB shall be in Form No. 29B.]

Rule-40C, Income-tax Rules

• 40C. (1) For the purposes of clause (ba) of sub-section (1) of section 115WC, the fair market value of any specified security or sweat equity share, being an equity share in a company, on the date on which the option vests with the employee, shall be determined in accordance with the provisions of sub-rule (2) or sub-rule (3).
• (2) In a case where, on the date of the vesting of the option, the share in the company is listed on a recognized stock exchange, the fair market value shall be the average of the opening price and closing price of the share on that date on the said stock exchange : Provided that where, on the date of vesting of the option, the share is listed on more than one recognized stock exchanges, the fair market value shall be the average of opening price and closing price of the share on the recognised stock exchange which records the highest volume of trading in the share : Provided further that where, on the date of vesting of the option, there is no trading in the share on any recognized stock exchange, the fair market value shall be— (a)  the closing price of the share on any recognised stock exchange on a date closest to the date of vesting of the option and immediately preceding such date; or (b)  the closing price of the share on a recognised stock exchange, which records the highest volume of trading in such share, if the closing price, as on the date closest to the date of vesting of the option and immediately preceding such date, is recorded on more than one recognized stock exchange.
• (3) In a case where, on the date of vesting of the option, the share in the company is not listed on a recognized stock exchange, the fair market value shall be such value of the share in the company as determined by a merchant banker on the specified date.
• (4) For the purpose of this rule,— (a)  "closing price" of a share on a recognised stock exchange on a date shall be the price of the last settlement on such date on such stock exchange:  Provided that where the stock exchange quotes both "buy" and "sell" prices, the closing price shall be the "sell" price of the last settlement; (b)  "merchant banker" means category I merchant banker registered with Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (c)  "opening price" of a share on a recognised stock exchange on a date shall be the price of the first settlement on such date on such stock exchange:  Provided that where the stock exchange quotes both "buy" and "sell" prices, the opening price shall be the "sell" price of the first settlement; (d)  "recognised stock exchange" shall have the same meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (e)  "specified date" means,— (i)  the date of vesting of the option; or (ii)  any date earlier than the date of the vesting of the option, not being a date which is more than 180 days earlier than the date of the vesting; (f)  [***]]

Rule-40E, Income-tax Rules

• 40E. For the purposes of sub-clause (iii) of clause (B) of sub-section (2) of section 115WB, the non-transferable pre-paid electronic meal card (hereinafter called the "card") shall fulfil the following conditions, namely:— (i)  The card shall be granted by the employer to its employees under a scheme framed by the employer specifying therein the circumstances under which the meal card can be used by the employee. (ii)  The card under clause (i) shall be issued by the issuing bank. (iii)  An employee shall not be issued more than one card. (iv)  The card shall bear the name of the employer along with the name, photograph and signature of the employee to whom the card is issued. (v)  The card shall be used only by the employee to whom the card is issued. (vi)  The card shall be used by the employee only for the purpose of purchasing ready to eat food or non-alcoholic beverage from a member establishment. (vii)  The aggregate amount of ready to eat food or non-alcoholic beverage purchased during a day by an employee shall not exceed one hundred rupees. (viii)  The details of each transaction of purchases made by the employee against the card shall be maintained by the employer and the member establishment in such manner and for such period as is required under the Act for any other similar transaction.
• Explanation.—For the purposes of this rule,— (i)  "banking company" shall have the same meaning as assigned to in clause (viii) of sub-section (1) of section 36 of the Act; (ii)  "issuing bank" means a banking company— (a)  which issues the card to the employees of an employer in pursuance to an agreement entered into with the employer; and (b)  which has entered into a contract with the member establishment authorizing him to allow purchases against the card issued by it in accordance with the conditions stipulated in sub-clause (iii) of clause (B) of sub-section (2) of section 115WB and this rule; and (iii)  "member establishment" shall mean a restaurant, hotel, canteen or an outlet which sells ready to eat food or non-alcoholic beverage, but shall not include a restaurant, hotel, canteen or an outlet selling alcoholic beverage.]

Rule-44CA, Income-tax Rules

• 44CA . (1) The Settlement Commission shall, while calling for a report from the Commissioner under sub-section (2B) of section 245D, forward a copy of the application in Form No. 34B ([(including the Annexure and the statements] and other documents accompanying such Annexure) along with a copy of the order under sub-section (1) of section 245D or, as the case may be, an intimation in respect of an application deemed to have been allowed to be proceeded with under sub-section (2A) of that section 245D.
• [ (2) Where an application has not been declared invalid under sub-section (2C) of section 245D or an application has been allowed to be further proceeded with under sub-section (2D) of that section, all the material and other information produced by the assessee before the Settlement Commission shall be sent to the Commissioner to enable him to furnish the report under sub-section (3) of section 245D.
• (3) Where the proceeding before the Settlement Commission abates, the Commission shall send, all the material and other information produced by the assessee before the Commission and the results of any enquiry held or evidence recorded in the course of proceedings before it, to the Commissioner. ]]

Rule-44E, Income-tax Rules

• 44E. (1) An application for obtaining an advance ruling under sub-section (1) of section 245Q shall be made in quadruplicate,— (a)  in Form No.34C in respect of a non-resident applicant referred to in sub-clause (i) of clause (a) of section 245N; (b)  in Form 34D in respect of a resident applicant referred to in sub-clause (ii) of clause (a) of section 245N seeking advance ruling in relation to a transaction undertaken or proposed to be undertaken by him with a non-resident; and (c)  in Form No.34DA in respect of a resident applicant referred to in sub-clause (iia) of clause (a) of section 245N falling within any such class or category of person as notified by the Central Government in exercise of the powers conferred by 1[item (III) of sub-clause (A) of clause (b)] of that section; (d)  in Form No.34E in respect of a resident falling within any such class or category of person as notified by the Central Government in exercise of the powers conferred by 2[item (IV) of sub-clause (A) of clause (b)] of section 245N; and (e)  in Form No.34EA, in respect of an applicant referred to in 3[item (V) of sub-clause (A) of clause (b)] of section 245N of the Act, and shall be verified in the manner indicated therein.
• (2) The application referred to in sub-rule (1), the verification appended thereto, the annexures to the said application and the statements and documents accom-panying it, shall be signed,— (a)  in the case of an individual,— (i)  by the individual himself ; (ii)  where, for any unavoidable reason, it is not possible for the indivi-dual to sign the application, by any person duly authorised by him in this behalf :  Provided that in a case referred to in sub-clause (ii), the person signing the application holds a valid power of attorney from the individual to do so, which shall be attached to the application ; (b)  in the case of a Hindu undivided family,— (i)  by the karta thereof, and (ii)  where, for any unavoidable reason, it is not possible for the karta to sign the application, by any other adult member of such family ;
• (c)  in the case of a company,— (i)  by the Managing Director thereof, or where for any unavoidable reason such Managing Director is not able to sign and verify the application, or where there is no Managing Director, by any Director thereof ; (ii)  where, for any unavoidable reason, it is not possible for the Managing Director or the Director to sign the application, by any person duly authorised by the company in this behalf :  Provided that in the case referred to in sub-clause (ii), the person signing the application holds a valid power of attorney from the company to do so, which shall be attached to the application ; (d)  in the case of a firm, by the managing partner thereof, or where for any unavoidable reason such managing partner is not able to sign and verify the application or where there is no managing partner as such, by any partner thereof, not being a minor ; (e)  in the case of an association of persons, by any member of the association or the principal officer thereof ; and (f)  in the case of any other person, by that person or by some person competent to act on his behalf.
• (3) Every application in the Form as applicable shall be accompanied by the proof of payment of fees as specified in sub-rule (4).
• (4) The fees payable along with application for advance ruling shall be in accordance with the following table:
• TABLE Category of applicant Category of case Fee (1) (2) (3) An applicant referred to in sub-clauses (i) or (ii) or (iia) of clause (b) of section 245N Amount of one or more transaction, entered into or proposed to be undertaken, in respect of which ruling is sought does not exceed Rs. 100 crore. Rs. 2 lacs Amount of one or more transaction, entered into or proposed to be undertaken, in respect of which ruling is sought exceeds Rs. 100 crore but does not exceed Rs. 300 crore. Rs. 5 lacs Amount of one or more transaction, entered into or proposed to be undertaken, in respect of which ruling is sought exceeds Rs. 300 crore. Rs. 10 lacs Any other applicant In all cases Rs. 10000

Rule-44G, Income-tax Rules

• 44G. (1) Where an assessee, being a resident of India, is aggrieved by any action of the tax authorities of any country or specified territory outside India for the reason that, according to him, such action is not in accordance with the terms of agreement with such other country or specified territory, he may make an application to the Competent Authority in India seeking to invoke the mutual agreement procedure, if provided in such agreement, in Form No. 34F.
• (2) Where a reference has been received from the competent authority of any country or specified territory outside India under any agreement with that country or specified territory with regard to any action taken by any income-tax authority in India or by the tax authorities of such country or specified territory, the Competent Authority in India shall convey his acceptance or otherwise for taking up the reference under mutual agreement procedure to the competent authority of the other country or specified territory.
• (3) The Competent Authority in India shall, with regard to the issues contained in Form No. 34F or in the reference from the competent authority of a country or specified territory outside India, call for the relevant records and additional document from the income-tax authorities or the assessee or his authorised representative in India, or have a discussion with such authorities or assessee or representative, to understand the actions taken by the income-tax authorities in India or outside that are not in accordance with the terms of the agreements between India and the other country or specified territory.
• (4) The Competent Authority in India shall endeavour to arrive at a mutually agreeable resolution of the tax disputes, arising from such actions of the income-tax authorities, in accordance with the agreement between India and the other country or specified territory within an average time period of twenty-four months.
• (5) In case the mutual agreement procedure is invoked on account of action taken by any income-tax authority in India, the resolution arrived at under sub-rule (4) in a previous year shall not result in decreasing the income or increasing the loss, as the case may be, of the assessee in India, as declared by him in the return of income of the said year.
• (6) If a resolution is arrived at under sub-rule (4) between the Competent Authority in India and that of the other country or specified territory, the same shall be communicated in writing to the assessee.
• (7) The assessee shall communicate his acceptance or non-acceptance of the resolution in writing to the Competent Authority in India within thirty days of receipt of the communication under sub-rule (6).
• (8) The assessee's acceptance of the resolution shall be accompanied by proof of withdrawal of appeal, if any, pending on the issues that were the subject matter of the resolution arrived at under sub-rule (4).
• (9) On receipt of acceptance under sub-rule (7), the Competent Authority in India shall communicate the resolution arrived at under sub-rule (4) and the acceptance by the assessee alongwith proof of withdrawal of appeal, if any, submitted by the assessee under sub-rule (8), to the Principal Chief Commissioner or the Chief Commissioner or the Principal Director General or Director General, as the case may be, who in turn shall forward it to the Assessing Officer.
• (10) On receipt of communication under sub-rule (9), the Assessing Officer shall give effect to the resolution arrived at under sub-rule (4), by an order in writing, within one month from the end of the month in which the communication was received by him and intimate the assessee about the tax payable determined by him, if any.
• (11) The assessee shall pay the tax as determined under sub-rule (10) within the time allowed by the Assessing Officer and shall submit the proof of payment of taxes to the Assessing officer who shall then proceed to withdraw the pending appeal, if any, pertaining to subject matter of the resolution under sub-rule (4), which were filed by the Assessing Officer or the Principal Commissioner or Commissioner or any other income-tax authority
• (12) A copy of the order under sub-rule (10), shall be sent to the Competent Authority in India and to the assessee.
• (13) The amount of tax, interest or penalty already determined shall be adjusted in accordance with the resolution arrived at under sub-rule (4) and in the manner provided under the Act or the rules made thereunder to the extent that such manner is not contrary to the resolution arrived at.
• Explanation. - For the purposes of this rule, the "Competent Authority in India'' shall mean an officer authorised by the Central Government for the purposes of discharging the functions as such.]
• 82. Inserted by the IT (Second Amdt.) Rules, 2003, w.e.f. 6-2-2003 [as corrected by Notification No. 39/2003 (F. No. 480/3/2002-FTD), dated 26-2-2003]. See also Instruction No. 3 of 2004, dated 19-3-2004. [India-UK and Instruction No. 10/2007, dated 23-10-2007 (India-US)].
• 82a. Substituted by the Income-tax (Eighth Amendment) Rules, 2020, w.e.f. 6-5-2020. Prior to its Substitution said rule 44G as inserted by the Income-tax (Second Amendment) Rules, 2003, w.e.f. 6-2-2003 , read as under: "44G. Application for giving effect to the terms of any agreement under clause (h) of sub-section (2) of section 295.—Where a resident assessee is aggrieved by any action of the tax authorities of any country outside India for the reason that, according to him, such action is not in accordance with the terms of agreement with such other country outside India, he may make an application to the Competent Authority in India seeking to invoke the mutual agreement procedure, if any, provided therein, in terms of Form No. 34F."

Rule-44GA, Income-tax Rules

• 44GA. (1) Where a person has made request for a bilateral or multilateral advance pricing agreement in an application filed in Form No. 3CED in accordance with rule 10-I, the request shall be dealt with subject to provisions of this rule.
• (2) The process for bilateral or multilateral advance pricing agreement shall not be initiated unless the associated enterprise situated outside India has initiated process of advance pricing agreement with the competent authority in the other country.
• (3) The competent authority in India shall, on intimation of request of the applicant for a bilateral or multilateral agreement, consult and ascertain willingness of the competent authority in other country or countries, as the case may be, for initiation of negotiation for this purpose.
• (4) In case of willingness of the competent authority in other country or countries, as the case may be, the competent authority in India shall enter into negotiation in this behalf and endeavour to reach a set of terms which are acceptable to the competent authority in India and the competent authority in the other country or countries, as the case may be.
• (5) In case of an agreement after consultation, the competent authority in India shall formalise a mutual agreement procedure arrangement with the competent authority in other country or countries, as the case may be, and intimate the same to the applicant.
• (6) In case of failure to reach agreement on such terms as are mutually acceptable to parties mentioned in sub-rule (4), the applicant shall be informed of the failure to reach an agreement with the competent authority in other country or countries.
• (7) The applicant shall not be entitled to be part of discussion between competent authority in India and the competent authority in the other country or countries, as the case may be; however the applicant can communicate or meet the competent authority in India for the purpose of entering into an advance pricing agreement.
• (8) The applicant shall convey acceptance or otherwise of the agreement within thirty days of it being communicated.
• (9) The applicant, in case the agreement is not acceptable may at its option continue with process of entering into an advance pricing agreement without benefit of mutual agreement process or withdraw application in accordance with rule 10J.]

Rule-44H, Income-tax Rules

• 1. Omitted by the Income-tax (Eighth Amendment) Rules, 2020, w.e.f. 6-5-2020. Prior to its omission rule 44H read as under: "44H. Action by the Competent Authority of India and procedure for giving effect to the decision under the agreement.—(1) Where a reference has been received from the competent authority of a country outside India under any agreement with that country with regard to any action taken by any income-tax authority in India, the Competent Authority in India shall call for and examine the relevant records with a view to give his response to the competent authority of the country outside India.
• (2) The Competent Authority in India shall endeavour to arrive at a resolution of the case in accordance with such agreement.
• (3) The resolution arrived at under mutual agreement procedure, in consultation with the competent authority of the country outside India, shall be communicated, wherever necessary, to the Chief Commissioner or the Director-General of Income-tax, as the case may be, in writing.
• (4) The effect to the resolution arrived at under mutual agreement procedure shall be given by the Assessing Officer within ninety days of receipt of the same by the Chief Commissioner or the Director-General of Income-tax, if the assessee,— (i) gives his acceptance to the resolution taken under mutual agreement procedure; and (ii) withdraws his appeal, if any, pending on the issue which was the subject matter for adjudication under mutual agreement procedure.
• (5) The amount of tax, interest or penalty already determined shall be adjusted after incorporating the decision taken under mutual agreement procedure in the manner provided under the Income-tax Act, 1961 (43 of 1961), or the rules made thereunder to the extent that they are not contrary to the resolution arrived at. Explanation.—For the purposes of rules 44G and 44H, "Competent Authority of India" shall mean an officer authorised by the Central Government for the purposes of discharging the functions as such."

Rule-45, Income-tax Rules

• 45. (1) An appeal to the Commissioner (Appeals) shall be made in Form No. 35.
• (2) Form No. 35 shall be furnished in the following manner, namely:— (a)  in the case of a person who is required to furnish return of income electronically under sub- rule (3) of rule 12,— (i)  by furnishing the form electronically under digital signature, if the return of income is furnished under digital signature; (ii)  by furnishing the form electronically through electronic verification code in a case not covered under sub-clause (i); (b)  in a case where the assessee has the option to furnish the return of income in paper form, by furnishing the form electronically in accordance with clause (a) of sub-rule(2) or in paper form.
• (3) The form of appeal referred to in sub-rule (1), shall be verified by the person who is authorised to verify the return of income under section 140 of the Act, as applicable to the assessee.
• (4) Any document accompanying Form No. 35 shall be furnished in the manner in which the said form is furnished.
• (5) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall— (i)  specify the procedure for electronic filing of Form No.35 and documents; (ii)  specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule(2), for the purpose of verification of the person furnishing the said form; and (iii)  be responsible for formulating and implementing appropriate security, archival and retrieval of policies in relation to the said form so furnished

Rule-46A, Income-tax Rules

• 46A. (1) The appellant shall not be entitled to produce before the [Deputy Commissioner (Appeals)] [or, as the case may be, the Commissioner (Appeals)], any evidence, whether oral or documentary, other than the evidence produced by him during the course of proceedings before the [Assessing Officer], except in the following circumstances, namely :— (a)  where the [Assessing Officer] has refused to admit evidence which ought to have been admitted ; or (b)  where the appellant was prevented by sufficient cause from producing the evidence which he was called upon to produce by the [Assessing Officer] ; or (c)  where the appellant was prevented by sufficient cause from producing before the [Assessing Officer] any evidence which is relevant to any ground of appeal ; or (d)  where the [Assessing Officer] has made the order appealed against without giving sufficient opportunity to the appellant to adduce evidence relevant to any ground of appeal.
• (2) No evidence shall be admitted under sub-rule (1) unless the [Deputy Commissioner (Appeals)] [or, as the case may be, the Commissioner (Appeals)] records in writing the reasons for its admission.
• (3) The [Deputy Commissioner (Appeals)] [or, as the case may be, the Commissioner (Appeals)] shall not take into account any evidence produced under sub-rule (1) unless the [Assessing Officer] has been allowed a reasonable opportunity—
• (a) Â to examine the evidence or document or to cross-examine the witness produced by the appellant, or (b) Â to produce any evidence or document or any witness in rebuttal of the additional evidence produced by the appellant.
• (4) Nothing contained in this rule shall affect the power of the [Deputy Commissioner (Appeals)] [or, as the case may be, the Commissioner (Appeals)] to direct the production of any document, or the examination of any witness, to enable him to dispose of the appeal, or for any other substantial cause including the enhancement of the assessment or penalty (whether on his own motion or on the request of the [Assessing Officer]) under clause (a) of sub-section (1) of section 251 or the imposition of penalty under section 271.]

Rule-48A, Income-tax Rules

• 48A. [Omitted by the IT (Fifth Amdt.) Rules, 1989, w.e.f. 18-5-1989.]

Rule-48DD, Income-tax Rules

Rule-56, Income-tax Rules

• 56. (1) A certificate of registration shall stand cancelled when the name of the holder of the certificate is removed from the register under these rules.
• (2) When the name of the holder of the certificate is removed from the register, the [Chief Commissioner or Commissioner] maintaining the register shall notify the fact of such removal to the authorised income-tax practitioner concerned and also to other [Chief Commissioners or Commissioners] of Income-tax (who shall notify the fact of the removal to the income-tax authorities subordinate to them) and to the Appellate Tribunal.

Rule-57, Income-tax Rules

• 57. (1) If at any time the [Chief Commissioner or Commissioner] is satisfied that the certificate of registration was obtained by misrepresentation as to an essential fact, he shall order the removal of the name of the income-tax practitioner from the register.
• (2) No order under sub-rule (1) shall be passed unless the authorised income-tax practitioner has been given a reasonable opportunity of being heard in regard to the proposed removal.

Rule-65, Income-tax Rules

• 65. If a change of an Inquiry Officer becomes necessary in the midst of an inquiry, the prescribed authority may appoint any other Inquiry Officer not below the rank of an Assistant Commissioner of Income-tax and the proceedings shall be continued by the succeeding Inquiry Officer from the stage at which they were left by his predecessor.

Rule-67, Income-tax Rules

• 67. (1) All moneys contributed to a provident fund (whether by the employer or by the employees) after the 31st day of October, 1974, or transferred after that date from the individual account of an employee in any recognised provident fund maintained by his former employer or accruing after that date by way of interest or otherwise to the fund may be deposited in a Post Office Savings Bank Account in India [or in a current account or a Savings Bank Account with any scheduled bank]; and to the extent such moneys as are not so deposited (such moneys as are not so deposited being hereafter in this rule referred to as investible moneys) shall be invested in the manner specified in sub-rule (2). Explanation : For the purposes of this rule and rules 85 and 101,— (i)  moneys received after the 31st day of October, 1974, on transfer, maturity or realisation of any security or deposit forming part of a fund or by withdrawal from any account in a bank (including a Post Office Savings Bank Account) shall be deemed to be moneys accruing to the fund after that date; (ii)  "scheduled bank" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), [or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980),] or any other bank, being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).
• [(2) The manner of investment referred to in sub-rule (1) shall be in accordance with the following Table, namely :—

TABLE

INVESTMENT PATTERN

S. No.
INVESTMENT
Percentage amount to be invested in items referred to in column(2)
(1)
(2)
(3)
1
Government Securities and Related Investments : (a) Â Government Securities; (b) Â Other securities, as defined in section 2(h) of the Securities Contracts (Regulation) Act, 1956, the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government, or any State Government; and/or (c) Â Units of mutual funds set up as dedicated funds for investment in Govt. securities and regulated by the Securities and Exchange Board of India.
Minimum forty-five per cent and upto fifty per cent.
2
Debt Instruments and Related Investments: (a) Â Listed (or proposed to be listed in case of fresh issue) debt securities issued by bodies corporate, including banks and public financial institutions, which have a minimum residual maturity period of three years from the date of investment; (b) Â Basel III Tier-I bonds issued by scheduled commercial banks under the guidelines issued by the Reserve Bank of India; (c) Â Rupee Bonds having an outstanding maturity of at least three years issued by institutions of the International Bank for Reconstruction and Development, International Finance Corporation and Asian Development Bank; (d) Â Term Deposit receipts of not less than one year duration issued by scheduled commercial banks, which satisfy the following conditions on the basis of published annual reports for the most recent years, as required to have been published by them under any law for the time being in force: (i) Â having declared profit in the immediately preceding three financial years; (ii) Â maintaining a minimum Capital to Risk Weighted Assets Ratio of nine per cent, or mandated by prevailing norms of Reserve Bank of India, whichever is higher; (iii) Â having net non-performing assets of not more than four per cent of the net advances; and (iv) Â having a minimum net worth of not less than two hundred crore rupees and/or (e) Â Units of debt mutual funds as regulated by Securities and Exchange Board of India; (f) Â The following infrastructure related debt instruments; (i) Â Listed (or proposed to be listed in case of fresh issue) debt securities issued by body corporates engaged mainly in the business of development or operation and maintenance of infrastructure, or development, construction or finance of low cost housing and including securities issued by Indian Railways or any of the body corporates in which it has majority shareholding, or any Authority of the Government which is not a body corporate and has been formed mainly with the purpose of promoting development of infrastructure: Â Provided that any structural obligation undertaken or letter of comfort issued by the Central Government, Indian Railways or any Authority of the Central Government, for any security issued by a body corporate engaged in the business of infrastructure, which notwithstanding the terms in the letter of comfort or the obligation undertaken, fails to enable its inclusion as security covered under sub-clause (b) of clause (i), shall be treated as an eligible security under this sub-category; (ii) Â Infrastructure and affordable housing Bonds issued by any scheduled commercial bank, which meets the conditions specified in sub-clause (d) of clause (ii); (iii) Â Listed (or proposed to be listed in case of fresh issue) securities issued by Infrastructure debt funds operating as a Non-Banking Financial Company and regulated by the Reserve Bank of India; (iv) Â Listed (or proposed to be listed in case of fresh issue) units issued by Infrastructure Debt Funds operating as a Mutual Fund and regulated by Securities and Exchange Board of India.
Minimum thirty-five per cent and upto forty-five per cent.
3
Short-term Debt Instruments and Related Investments (a) Â Money market instruments; (b) Â Units of liquid mutual funds regulated by the Securities and Exchange Board of India. (c) Â Term Deposit Receipts of up to one year duration issued by such scheduled commercial banks which satisfy all the conditions mentioned in sub-clause (d) of clause (ii).
Upto five per cent.
4
Equities and Related Investments (a) Â Shares of body corporates listed on Bombay Stock Exchange or National Stock Exchange, which have,- (i) Â Market capitalization of not less than five thousand crore rupees as on the date of investment; and (ii) Â Derivatives with the shares as underlying, traded in either of the two stock exchanges; and/or (b) Â Units of mutual funds regulated by the Securities and Exchange Board of India, which have minimum sixty five per cent of their investment in shares of body corporates listed on Bombay Stock Exchange or National Stock Exchange; (c) Â Exchange Traded Funds/ Index Funds regulated by the Securities and Exchange Board of India that replicate the portfolio of either Bombay Stock Exchange Sensex Index or National Stock Exchange Nifty fifty Index; (d) Â Exchange Traded Funds issued by Securities and Exchange Board of India regulated mutual funds constructed specifically for disinvestment of shareholding of the Government of India in body corporates; (e) Â Exchange traded derivatives regulated by the Securities and Exchange Board of India having the underlying of any permissible listed stock or any of the permissible indices, with the sole purpose of hedging.
Minimum five per cent and upto fifteen per cent.
5
Asset Backed, Trust Structured and Miscellaneous Investments (a) Â Mortgage based Securities or Residential mortgage based securities; (b) Â Units issued by Real Estate Investment Trusts regulated by the Securities and Exchange Board of India; (c) Â Asset Backed Securities regulated by the Securities and Exchange Board of India. (d) Â Units of Infrastructure Investment Trusts regulated by the Securities and Exchange Board of India.
Upto five per cent.
• Provided that the portfolio invested under sub-clause (b) of clause (i) of the said Table shall not be in excess of ten per cent of the total portfolio of the fund: Provided further that, irrespective of the proportion of investments specified in clause (i) of the said table, exposure of a trust to any Individual Mutual Fund, under sub-clause (c) of the said clause, which has been set up as a dedicated fund for investment in Government Securities, shall not exceed five per cent of its total portfolio at any point of time and fresh investments made in them shall not exceed five per cent. of the fresh accretions in the year: Provided also that the investment stated in sub-clause (b) of clause (ii) shall be made only in such Tier-I bonds which are proposed to be listed in case of initial offering of the bonds and if such Tier-I bonds are listed and regularly traded, investment shall be made in such bonds of a Scheduled commercial Bank from the Secondary Market: Provided also that the total portfolio invested, at any time, in Tier-I bonds referred to sub-clause (b) of clause (ii) of the said Table shall not be more than two per cent of the total portfolio of the fund; and (i)  no investment in initial offerings shall exceed twenty per cent. of the initial offering, (ii)  the aggregate value of Tier-I bonds of any particular bank held by the fund at any point of time, shall not exceed twenty per cent of such bonds issued by that Bank. Provided also that for sub-clause (c) of clause (ii) of the said Table, a single rating of AA or above by a domestic or international rating agency will be acceptable: Provided also that the debt securities covered under sub-clause (b) of clause (i) of the said Table shall be excluded from the securities covered under clause (ii) of the said Table. Provided also that in sub-clause (e) of clause (ii), fresh investment in Debt Mutual Funds shall not be more than five per cent. of the fresh accretions invested in the year and the portfolio invested in them shall not exceed five per cent of the total portfolio of the fund at any point in time. Provided also that the investment under sub-clauses (a),(b) and items (i) to (iv) of (f) of clause (ii) of the said Table shall be made only in such securities which have minimum AA rating or equivalent in the applicable rating scale from at least two credit rating agencies registered with Securities and Exchange Board of India under Securities and Exchange Board of India (Credit Rating Agency) Regulation, 1999. Provided also that in case of item (iii) of the sub-clause (f) of clause (ii) of the said Table the ratings shall relate to the Non-Banking Financial Company and for item (iv) of the sub-clause (f) of clause (ii) of the said Table the ratings shall relate to the investment in eligible securities rated above investment grade of the scheme of the fund: Provided also that if the securities or entities have been rated by more than two rating agencies, the two lowest of all the ratings shall be considered: Provided also that investments under sub-clauses (a),(b) and sub-clause (f) of clause (ii) of the said Table requiring a minimum AA rating, shall be permissible in securities having investment grade rating below AA in case the risk of default for such securities is fully covered with Credit Default Swaps issued under Guidelines of the Reserve Bank of India and purchased along with the underlying securities and purchase amount of such Swaps shall be considered to be investment made under this clause: Provided also that investment stated in sub-clause (a) of clause (iii) of the said Table in paper issued by body corporates shall be made only in such instruments which have minimum rating of Al + by at least two credit rating agencies registered with the Securities and Exchange Board of India and if paper has been rated by more than two rating agencies, the two lowest of the ratings shall be considered: Provided also that investment in sub-clause (a) of clause (iii) of the said Table in Certificates of Deposit of up to one year duration issued by scheduled commercial banks will require the bank to satisfy all conditions mentioned in sub-clause (d) of clause (ii) of the said table: Provided also that the aggregate portfolio invested in such mutual funds stated in sub-clause (b) of clause (iv) of the said Table shall not be in excess of five per cent of the total portfolio of the fund at any point in time and the fresh investment in such mutual funds shall not be in excess of five per cent of the fresh accretions invested in the year: Provided also that the portfolio invested in derivatives in terms of contract value shall not be in excess of five per cent of the total portfolio invested in sub-clauses (a) to (d) of clause (iv) of the said Table: Provided also that investment under clause (v) of the said Table shall only be in listed instruments or fresh issues that are proposed to be listed: Provided also that investment under clause (v) of the said Table shall be made only in such securities which have minimum AA or equivalent rating in the applicable rating scale from at least two credit rating agencies registered by the Securities and Exchange Board of India under Securities and Exchange Board of India (Credit Rating Agency) Regulations, 1999: Provided also that in case of the sub-clauses (b) and (d) of the clause (v) of the said Table, the ratings shall relate to the rating of the sponsor entity floating the trust: Provided also that if the securities/entities have been rated by more than two rating agencies, the two lowest of the ratings shall be considered: Provided also that any proceeds arising out of exercise of put option, tenure or asset switch or trade of any asset before maturity can be invested in any of the permissible categories in the manner that at any given point of time the percentage of assets under that category shall not exceed the maximum limit prescribed for that category and also shall not exceed the maximum limit prescribed for the sub-categories, if any. However, asset switch because of any Reserve Bank of India mandated Government debt switch would not be covered under this restriction. Provided also that fresh accretions to the fund shall be invested in the permissible categories specified in this investment pattern in a manner consistent with specified maximum permissible percentage amounts to be invested in each such investment category, while also complying with such other restrictions as made applicable for various sub-categories of the permissible investments: Provided also that the turnover ratio, being the value of securities traded in the year divided by the average value of the portfolio at the beginning of the year and at the end of the year, should not exceed two. Provided also that in the event of the rating of any instrument mentioned in the Table for being rated and their rating falling below the investment grade, as confirmed by One Credit Rating Agency registered under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the option of exit shall be considered and exercised, as appropriate, in a manner that is in the best interest of the subscribers and released fund shall be invested in accordance with the manner provided in the Table: Provided also that if the fund has engaged services of professional fund manager or asset managers for management of its assets, payment to whom is made on the basis of the value of each transaction, the value of funds invested by them in any mutual fund mentioned in any of the clauses of the Table or Exchange Traded Funds or Index Funds shall be reduced before computing the payment due to them. Explanation 1.— The manner of investment specified in this sub-rule shall apply to the aggregate amount of investible moneys with the fund in the previous year. Explanation 2.— For the purposes of this sub-rule,— (i)  Fresh accretions to the funds shall be the sum of un-invested funds from the past and receipts like contributions to the funds, dividend, interest, commission, amount received on the maturity of investment made prior to the 1st day of April, 2015 etc., as reduced by obligatory outgo during the financial year. (ii)  the expression "Government securities" shall have the meaning assigned to it in clause (b) of section 2 of the Securities Contracts (Regulation) Act, 1956; (iii)  the expression "Infrastructure" for the purposes of sub-clause (f) of clause (ii) of the Table shall have the meaning as referred to in Notification dated 2nd March, 2015 (F No 11/14/2013-PR) of Department of Financial Services. (iv)  the expression "public financial institutions" shall have the meaning as assigned to it under section 2 of the Companies Act, 2013 (1 of 2013); (v)  the expression "public sector company" shall have the meaning assigned to it in clause (36A) of section 2 of the Income-tax Act; (vi)  the expression "securities" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956.]

Rule-67A, Income-tax Rules

• 67A. (1) An employee may be allowed by the trustees of the provident fund to make a nomination conferring on one or more persons the right to receive the amount that may stand to his credit in the provident fund in the event of his death, before that amount becomes payable or, having become payable, has not been paid. Such a nomination shall be made in Form No. 40A or in a form as near thereto as may be necessary.
• (2) If an employee nominates more than one person under sub-rule (1), he shall, in his nomination, specify the amount or share payable to each of the nominees in such manner as to cover the whole of the amount that may stand to his credit in the provident fund.
• (3) Where an employee has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family. Any nomination made by an employee in favour of a person not belonging to his family shall be invalid.
• (4) If at the time of making a nomination the employee has no family, the nomination may be in favour of any person or persons, but if the employee subsequently acquires a family, such nomination shall forthwith be deemed to be invalid and the employee may be allowed to make a fresh nomination in favour of one or more persons belonging to his family.
• (5) A nomination made by an employee may, at any time, be modified by him after giving a written notice to the trustees of his intention of doing so in Form No. 40B or in a form as near thereto as may be. If the nominee predeceases the employee, the interest of the nominee shall revert to the employee, who may thereupon make a fresh nomination in respect of such interest.
• (6) A nomination or its modification shall take effect to the extent that it is valid on the date on which it is received by the trustees. Explanation : For the purposes of this rule, "family" means the employee`s spouse, legitimate children, step-children [, deceased son`s widow, deceased son`s legitimate children, deceased son`s step-children] and dependent parents [***].]

Rule-68, Income-tax Rules

• 68 . (1) Withdrawals by employees may be allowed by the trustees of the provident fund in the following circumstances:— (a)  to pay expenses incurred in connection with the illness of the employee or a member of his family; [(aa)  meeting the cost of higher education, including, where necessary, the travelling expenses of any child of the employee actually dependent on him in the following cases, namely :— (i)  education outside India for academic, technical, professional or vocational courses beyond the [matriculation] stage, and (ii)  any medical, engineering or other technical or specialised course in India beyond the [matriculation stage];] (b)  to pay for the cost of passage to a place out of India of an employee or any member of his family; (c)  to pay expenses in connection with marriages, funerals or ceremonies, which by the religion of the employee it is incumbent upon him to perform; [(d)  to meet the expenditure on building a house, or purchasing a site [or a house] or a house and a site and, in the case of an employee whose pay does not exceed rupees [five thousand] per month also on additions, substantial alterations or improvements necessary to a house:  Provided that the employee furnishes an undertaking to the trustees not to encumber or alienate such house or site [or such house and site] or house and site, as the case may be:  [Provided further that in the case of an employee whose pay does not exceed rupees [five thousand] per month, such house or site or such house and site shall not be deemed to be an encumbered property merely because such house or site or such house and site is— (i)  mortgaged, solely for having obtained funds for the purchase of the said house or site or the said house and site or for the building of such house to any of the following agencies, namely, (a) the Central Government; (b) a State Government; (c) a co-operative society, being a society registered or deemed to be registered under the Co-operative Societies Act, 1912, or under any other law for the time being in force in any State relating to co-operative societies; (d) an institution; (e) a trust; (f) a local body; or (g) a housing finance corporation; or (ii)  held in the name of any of the aforesaid agencies and the employee is precluded from transferring or otherwise disposing of that house or site or that house and site without the prior approval of such agency.]  Explanation : For the purposes of this clause, "pay" shall have the meaning assigned to it in the Explanation to sub-rules (2A) and (2B) of rule 69;] [(dd)  for repayment of loan previously raised for the purpose of construction or purchase of a house;] (e)  to pay premia on policies of insurance on the life of the employee or of his wife provided that the policy is assigned to the trustees of the Fund or at their discretion deposited with them and that the receipts granted by the insurance company for the premia are from time to time handed over to the trustees for inspection by the [Assessing Officer]; (f)  to meet the cost of legal proceedings instituted by the employee for vindicating his position in regard to any allegations made against him in respect of any act done or purporting to be done by him in the discharge of his official duty or to meet the cost of his defence when he is prosecuted by the employer in any court of law in respect of any official misconduct on his part:  Provided that the advance under this clause shall not be admissible to an employee who institutes legal proceedings in any court of law either in respect of any matter unconnected with his official duty or against the employer in respect of any condition of service or penalty imposed on him; [(g)  to meet the expenses of the damage caused to the movable or immovable property of the employee as a direct result of— (i)  flood, cyclone, earthquake or other convulsion of nature; or (ii)  riot;]
• [(h)  in the case of an employee whose pay does not exceed rupees [five thousand] per month,— (i)  to meet his household expenses if a factory or other establishment, wherein he is working, is locked up or closed down for more than fifteen days for reasons other than a strike rendering him unemployed without any compensation or if he is not in receipt of wages for a continuous period of two months or more; (ii)  to meet his household expenses if the factory or other establishment wherein he is working, suffers cut in supply of electricity resulting in a loss of one-fourth or more of the total wages of the employee; (iii)  to meet the cost of purchasing an equipment required by a physically handicapped employee which will minimise his hardship on account of the handicap; [(iv)  to meet his household expenses where the employee is discharged or dismissed or retrenched by the employer and such discharge, dismissal or retrenchment, as the case may be, is challenged by the employee in any court or tribunal and the case is pending in that court or tribunal.] Explanation : For the purposes of this clause, "pay" shall have the meaning assigned to it in the Explanation to sub-rules (2A) and (2B) of rule 69.]
• (2) For the purposes of sub-rule (1), "family" means any of the following persons who are wholly dependent on the employee, namely:— the employee`s wife, legitimate children, step-children, parents, sisters and minor brothers.

Rule-69, Income-tax Rules

• 69. [(1) The withdrawal [in connection with expenses on illness as specified in clause (a) of sub-rule (1) of rule 68 or] in connection with expenses on marriages as specified in clause (c) of sub-rule (1) of rule 68, by an employee whose pay exceeds rupees [five thousand] per month, shall not exceed six months` pay or the total of the accumulation of exempted contributions and exempted interest lying to the credit of the employee, whichever is less. (1A) The withdrawal for the purposes specified in clause (aa) and clause (c) of sub-rule (1) of rule 68, by an employee, whose pay does not exceed rupees [five thousand] per month, shall be subject to the following conditions, namely :— (a)  the amount of withdrawal shall not exceed one-half of the employee`s contributions to the fund with interest thereon; (b)  the employee shall have completed seven years of service; (c)  the amount of the employee`s contributions to the fund with interest thereon is not less than rupees one thousand.]
• (2) The withdrawal for the purpose specified in clause (d) [and clause (dd)] of sub-rule (1) of rule 68 [, by any employee whose pay exceeds rupees [five thousand] per month,] shall be subject to the following conditions:— (i)  the amount of withdrawal shall not exceed one-half of the amount standing to the employee`s credit or the actual cost of the house and/or of the site, whichever is less; [(ii)  the employee shall have completed [ten] years of service or is due to retire within the next ten years;] (iii)  the construction of the house should be commenced within six months of the withdrawal and should be completed within one year from the date of the commencement of the construction; (iv)  if the withdrawal is made for the purchase of a house and/or a site for a house, the purchase should be made within six months of the withdrawal; (v)  if the withdrawal is made for the repayment of loan previously raised for the purpose of construction or purchase of a house, the repayment of the loan should be made within three months of the withdrawal; (vi)  where the withdrawal is for the construction of a house, it shall be permitted in two or more equal instalments (not exceeding four), a later instalment being permitted only after verification by the trustees about the actual utilisation of the earlier withdrawal; (vii)  the withdrawal shall be permitted only if the house and/or site is free from encumbrances and no withdrawal shall be permitted for purchasing a share in a joint property or building or house or land whose ownership is divided; (viii)  if the amount withdrawn exceeds the actual cost of the purchase or construction of the house and/or site, or if the amount is not utilised for the purpose for which it is withdrawn, the excess or the whole amount, as the case may be, shall be refunded to the trustees forthwith in one lump sum together with interest from the month of such withdrawal at the rate prescribed in sub-rule (4) of rule 71. The amount refunded shall be credited to the employee`s account in the provident fund.
• [(2A) The withdrawal for the purpose specified in clause (d) of sub-rule (1) of rule 68, by any employee whose pay does not exceed rupees [five thousand] per month, shall be subject to the following conditions, namely:— [(i)  the amount of withdrawal shall not exceed— (a)  the employee`s basic wages and dearness allowance for [thirty-six] months; or (b)  the actual cost of building the house or of purchasing the house or the site or the house and the site; or (c)  the employee`s contribution to the fund together with the specified percentage of the employer`s contributions to that fund with interest thereon;  whichever is less.  Explanation : For the purposes of sub-clause (c), "specified percentage" means— (1)  75 per cent of the employee`s contribution forming part of the accumulation as on the date of the authorisation of payment, if the period of membership of the employee in the fund is five years or more, but less than ten years; (2)  85 per cent of such contribution, if the period of membership of the employee in the fund is 10 years or more, but less than 15 years; and (3)  100 per cent of such contribution, if the period of membership of the employee in the fund is 15 years or more ;] (ii)  the employee shall have completed five years of service or is due to retire within the next ten years; (iii)  the withdrawal shall be permitted only if the house and/or site is free from encumbrances; (iv)  no withdrawal shall be permitted for purchasing a share in a joint property or a building or a house or land whose ownership is divided except where a site is owned jointly with the spouse; (v)  where the withdrawal is for construction of a house, the payment of the withdrawal may be sanctioned in such number of instalments (not exceeding four) as the trustees of the fund think fit; (vi)  where the withdrawal is for the construction of a house, the construction of the house should be commenced within six months of the withdrawal and should be completed within twelve months of the withdrawal of final instalment; (vii)  if the withdrawal is made for the purchase of a house and/or a site for a house, the purchase should be made within six months of the withdrawal; (viii)  if the amount withdrawn exceeds the actual cost of the purchase or construction of the house and/or site or if the amount is not utilised for the purpose for which it is withdrawn, the excess or the whole amount, as the case may be, shall be refunded to the trustees forthwith in one lump sum together with interest from the month of such withdrawal at the rate prescribed in sub-rule (4) of rule 71 and the amount so refunded shall be credited to the employee`s account in the fund.] [(2B) A withdrawal for additions, substantial alterations or improvements necessary to the house owned by the employee or jointly owned by the employee and the spouse may be granted once and in one instalment only to an employee whose pay does not exceed rupees [five thousand] per month, up to [twelve] months` basic wages and dearness allowance or the employee`s own share of contribution with interest thereon or the amount standing to his credit in the fund, whichever is less : Provided that the said withdrawal shall be admissible only after a period of five years from the date of purchase or completion of the house : Provided further that where the amount withdrawn is not utilised in whole or in part for the purpose for which it was withdrawn, the excess or the whole amount, as the case may be, shall be refunded to the trustees forthwith in one lump sum together with interest from the month of such withdrawal at the rate prescribed in sub-rule (4) of rule 71 and the amount so refunded shall be credited to the employee`s account in the fund. Explanation : For the purposes of sub-rules (2A) and (2B), "pay" includes basic wages with dearness allowance, retaining allowance (if any), and cash value of food concession admissible thereon, to which the employee is entitled at the time when the withdrawal is granted or, in the case of an employee referred to in sub-rule (2) of rule 5 of Part A of the Fourth Schedule, the pay (including increments, if any) which he would have received had he not entered the armed forces of the Union or being taken into or employed in the national service.]
• (3) The withdrawal for the purpose specified in clause (f) of sub-rule (1) of rule 68 shall not exceed three months` pay or Rs. 500, whichever is greater, but shall in no case exceed half the amount to the credit of the employee.
• (4) The withdrawal for any other purpose referred to in sub-rule (1) of rule 68 [except as provided in sub-rule (1A)] shall not exceed three months` pay or the total of the accumulation of exempted contributions and exempted interest lying to the credit of the employee, whichever is less.
• (5) For the purpose of this rule [except sub-rules (2A) and (2B)], "pay" means the pay to which the employee is entitled at the time when the withdrawal is granted or, in the case of an employee referred to in sub-rule (2) of rule 5 of Part A of the Fourth Schedule, the pay (including increments, if any) which he would have received had he not entered the armed forces of the Union or been taken into or employed in the national service.

Rule-71, Income-tax Rules

• 71. (1) Subject to the provisions of clause (viii) of sub-rule (2) [or clause (viii) of sub-rule (2A) or the second proviso to sub-rule (2B)] of rule 69 where a withdrawal is allowed for a purpose specified in [clause (d) or clause (dd) or clause (e) or sub-clause (i) of clause (h) of sub-rule (1)] of rule 68, the amount withdrawn need not be repaid.
• (2) Where a withdrawal is allowed in connection with marriages as specified in clause (c) of sub-rule (1) of rule 68, the amount withdrawn shall be repaid in not more than forty-eight equal monthly instalments.
• (3) Where a withdrawal is allowed for any other purpose, the amount withdrawn shall be repaid in not more than twenty-four equal monthly instalments.
• (4) In respect of withdrawals referred to in sub-rules (2) and (3) and of the amount referred to in clause (viii) of sub-rule (2) [or clause (viii) of sub-rule (2A) or the second proviso to sub-rule (2B)] of rule 69, interest shall be paid in accordance with the following Table :— TABLE 1 2 Where the amount is repaid in not more than 12 monthly instalments One additional instalment of 4% on the amount withdrawn Where the amount is repaid in more than 12 monthly instalments but not more than 24 monthly instalments Two additional instalments of 4% on the amount withdrawn Where the amount is repaid in more than 24 monthly instalments but not more than 36 monthly instalments Three additional instalments of 4% on the amount withdrawn Where the amount is repaid in more than 36 monthly instalments but not more than 48 monthly instalments Four additional instalments of 4% on the amount withdrawn Where the amount is refunded under clause (viii) of sub-rule (2) of rule 69
• Provided that at the discretion of the trustees of the fund, interest may be recovered on the amount aforesaid or the balance thereof outstanding from time to time at one per cent above the rate which is payable for the time being on the balance in the fund at the credit of the employee. (5) The employer shall deduct the instalments aforesaid from the employee`s salary, and pay them to the trustees of the fund. These deductions shall commence from the second monthly payment of salary made after the withdrawal or, in the case of an employee on leave without pay, from the second monthly payment of salary made after his return to duty.

Rule-74, Income-tax Rules

• 74. (1) The accounts of a provident fund shall be prepared at intervals of not more than twelve months.
• (2) An account shall be maintained for each subscriber to the fund and it shall include the particulars shown in Form No. 41.
• (3) Where the accounts of a provident fund are kept outside India, certified copies of the accounts shall be supplied not later than the 15th June in each year to a local representative of the employer in India :
• Provided that the [Assessing Officer] may in any year appoint a date later than the 15th June as the date by which the certified copies shall be supplied.
• [(4) An abstract for the financial year or other applicable accounting period of the individual account of each employee participating in a provident fund shall be furnished by the trustees to the Assessing Officer of the area in which the accounts of the fund are kept or if the accounts are kept outside India, to the Assessing Officer of the area in which the local headquarters of the employer are situated, not later than the fifteenth day of June in each year or any other subsequent date fixed by the Assessing Officer. It shall be in the form prescribed in sub-rule (2) of this rule, but shall show only the totals of the various columns thereof for the financial year or other accounting period. It shall also give an account of any temporary withdrawals by the employee during the year and of the repayment thereof. Similar abstract shall also be furnished in respect of other employees participating in a provident fund who come within the purview of sub-rule (1) of rule 75.]
• (5) The account to be made under the provisions of sub-rule (1) of rule 11 of Part A of the Fourth Schedule shall show in respect of each employee (i) the total salary paid to the employee during the period of his participation in the provident fund, (ii) the total contributions, (iii) the total interest which has accrued thereon, and (iv) so far as may be, the percentage of the employee`s salary in accordance with which contributions have been made by the employer and employee.
• [(6) Every employer shall, as soon as possible, after the close of each financial year, send to each member, a statement of his account in the fund showing the opening balance at the beginning of the period, amount contributed during the year, the total amount of interest credited at the end of the period or debited in the period and the closing balance at the end of the period.]

Rule-77, Income-tax Rules

• 77. (1) An application for recognition shall be made by the employers maintaining a provident fund for which recognition is sought and shall be accompanied by the following documents :— (a)  the trust deed if any in original with one copy thereof, the latter to be retained by the [Chief Commissioner or Commissioner], and (b)  the rules of the fund : Provided that if the original of the trust deed cannot conveniently be produced, it shall be open to the [Chief Commissioner or Commissioner] to accept in lieu of the original a copy certified either by a Magistrate or in any manner specified in rule 17 of the Companies (Central Government`s) General Rules and Forms, 1956, in which case an additional copy shall be furnished for retention by the [Chief Commissioner or Commissioner].
• (2) The application shall be submitted through the [Assessing Officer] of the area in which the accounts of the fund are kept or, if the accounts are kept outside India, through the [Assessing Officer] of the area in which the local headquarters of the employer are situate.
• (3) [The application shall be furnished in Form No. 40C and shall include the following information]:— (a)  Name of employer and address, his business, profession, etc., also his principal place of business. (b)  Number of employees subscribing to the fund— (i)  in India, (ii)  outside India. (c)  Place where the accounts of the fund are or will be maintained. (d)  If the fund is already in existence— (i)  a copy of the last balance sheet of the fund, where such is maintained, (ii)  details of investments of the fund.
• [(4) The application in Form No. 40C shall be verified in the manner specified therein.]
• [(5) A fund which has been granted recognition on or before 31st March, 2006 or has applied for recognition before the publication of this notification in the Official Gazette, shall make a fresh application in Form No. 40C through the Assessing Officer referred to in sub-rule (2).]

Rule-84, Income-tax Rules

• 84. (1) The trust shall have at least two trustees, provided that a company [as defined in clause (i) of sub-section (1) of section 3 of the Companies Act, 1956 (1 of 1956)] shall not be appointed as a trustee without the prior approval of the [Chief Commissioner or Commissioner].
• (2) The trustees of the fund shall be resident in India and any trustee who leaves India permanently shall vacate his office.

Rule-89, Income-tax Rules

• 89. For the purpose of providing the annuities for the beneficiaries, the trustees shall— (i)  enter into a scheme of insurance with the Life Insurance Corporation established under the Life Insurance Corporation Act, 1956 (31 of 1956) [or any other insurer as defined in clause (28BB) of section 2 of the Income-tax Act, 1961], or (ii)  accumulate the contributions in respect of each beneficiary and purchase an annuity from the said Life Insurance Corporation of India [or any other insurer] at the time of the retirement or death of each employee or on his becoming incapacitated prior to retirement :
• [Provided that nothing in this rule shall apply to a fund established or constituted, under an irrevocable trust which has its sole purpose to make payment of pension or family pension, in accordance with the rules or regulations made under the following Central Acts, namely :— (i)  the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970); or (ii)  the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980); or (iii)  the State Bank of India Act, 1955 (23 of 1955); or (iv)  the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); or (v)  the Industrial Development Bank of India Act, 1964 (18 of 1964); or (vi)  the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981); or (vii)  the Export-Import Bank of India Act, 1981 (28 of 1981); or (viii)  the Industrial Reconstruction Bank of India Act, 1984 (62 of 1984); or (ix)  the Small Industries Development Bank of India Act, 1989 (39 of 1989); or (x)  the National Housing Bank Act, 1987 (53 of 1987).]

Rule-101A, Income-tax Rules

• 101A. (1) An employee may be allowed by the trustees of the gratuity fund to make a nomination conferring on one or more persons the right to receive the amount of gratuity in the event of his death, before that amount becomes payable or, having become payable, has not been paid. Such a nomination shall be made in Form No. 40A or in a form as near thereto as may be necessary.
• (2) If an employee nominates more than one person under sub-rule (1), he shall, in his nomination, specify the amount or share payable to each of the nominees in such manner as to cover the whole of the amount of gratuity that may be payable in the event of his death.
• (3) Where an employee has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family. Any nomination made by such employee in favour of a person not belonging to his family shall be invalid.
• (4) If at the time of making a nomination the employee has no family, the nomination may be in favour of any person or persons, but if the employee subsequently acquires a family, such nomination shall forthwith be deemed to be invalid and the employee may be allowed to make a fresh nomination in favour of one or more persons belonging to his family.
• (5) A nomination made by an employee may, at any time, be modified by him after giving a written notice to the trustees of his intention of doing so in Form No. 40B or in a form as near thereto as may be. If the nominee predeceases the employee, the interest of the nominee shall revert to the employee, who may thereupon make a fresh nomination in respect of such interest.
• (6) A nomination or its modification shall take effect to the extent it is valid on the date on which it is received by the trustees. [Explanation : For the purposes of this rule, "family" means the employee`s spouse, legitimate children, step-children, deceased son`s widow, deceased son`s legitimate children, deceased son`s step-children, dependent parents, sisters, minor brothers and the dependent parents of the employee`s spouse.]]

Rule-112, Income-tax Rules

• 112. (1) The powers of search and seizure under section 132 shall be exercised in accordance with sub-rules (2) to [(14)].
• [(2) (a) Â The authorisation under sub-section (1) of section 132 (other than an authorisation under the proviso thereto) by the [Director-General or Director] or the [Chief Commissioner or Commissioner] or any such [Deputy Director] or [Deputy Commissioner] as is empowered by the Board in this behalf shall be in Form No. 45; (b) Â the authorisation under the proviso to sub-section (1) of section 132 by a [Chief Commissioner or Commissioner] shall be in Form No. 45A; (c) Â the authorisation under sub-section (1A) of section 132 by a [Chief Commissioner or Commissioner] shall be in Form No. 45B. (2A) Every authorisation referred to in sub-rule (2) shall be in writing under the signature of the officer issuing the authorisation and shall bear his seal.
• (3) Any person in charge of or in any building, place, vessel, vehicle or aircraft authorised to be searched shall, on demand by the officer, authorised to exercise the powers of search and seizure under section 132 (hereinafter referred to as the authorised officer) and on production of the authority, allow him free ingress thereto and afford all reasonable facilities for a search therein.]
• (4) If ingress into such building or place cannot be so obtained it shall be lawful for [the authorised officer] executing the authority, with such assistance of police officers [or of officers of the Central Government, or of both,] as may be required, to enter such building or place and search therein and in order to effect an entrance into such building or place, to break open any outer or inner door or window of any building or place, whether that of the person to be searched or of any other person, if after notification of his authority and purpose and demand of admittance duly made, he cannot otherwise obtain admittance :
• Provided that, if any such building or place is an apartment in actual occupancy of a woman, who according to custom does not appear in public, [the authorised officer] shall, before entering such apartment, give notice to such woman that she is at liberty to withdraw and shall afford her every reasonable facility for withdrawing and may then break open the apartment and enter it. [(4A) If ingress into any vessel, vehicle or aircraft authorised to be searched cannot be obtained because such vessel, vehicle or aircraft is moving or for any other reason, it shall be lawful for the authorised officer with such assistance of police officers or of officers of the Central Government, or of both, as may be required, to stop any such vessel or vehicle or, in the case of an aircraft, compel it to stop or land, and search any part of the vessel, vehicle or aircraft; and in order to effect an entrance into such vessel, vehicle or aircraft, to break open any outer or inner door or window of any such vessel, vehicle or aircraft, whether that of the person to be searched or of any other person, if after notification of his authority and purpose and demand of admittance duly made, he cannot otherwise obtain admittance : Provided that if any such vessel, vehicle or aircraft is occupied by a woman, who according to custom does not appear in public, the authorised officer shall, before entering such vessel, vehicle or aircraft, give notice to such woman that she is at liberty to withdraw and shall afford her every reasonable facility for withdrawing.]
• [(4B)] [The authorised officer] may require any person who is the owner, or has the immediate possession, or control, of any box, locker, safe, almirah or any other receptacle situate in such [building, place, vessel, vehicle or aircraft], to open the same and allow access to inspect or examine its contents, and, where the keys thereof are not available or where such person fails to comply with any such requirement, may cause any action to be taken including the breaking open of such box, locker, safe, almirah or other receptacle which [the authorised officer] may deem necessary for carrying out all or any of the purposes specified in the authority issued under sub-rule (2).
• [(4C)] [The authorised officer] may, where it is not practicable to seize the money, bullion, jewellery or other valuable article or thing or any books of account or document, serve an order on the owner or the person who is in immediate possession or control thereof that he shall not remove, part with or otherwise deal with it except with the previous permission of [the authorised officer], who may take such steps as may be necessary for ensuring compliance with this sub-rule.]
• [(5) Any person referred to in clause (iia) of sub-section (1) of section 132 may be searched by the authorised officer with such assistance as he may consider necessary. If such person is a woman, the search shall be made by another woman with a strict regard to decency.]
• [(6) Before making a search, the authorised officer shall,— (a)  where a building or place is to be searched, call upon two or more respectable inhabitants of the locality in which the building or place to be searched is situate, and (b)  where a vessel, vehicle or aircraft is to be searched, call upon any two or more respectable persons, to attend and witness the search and may issue an order in writing to them or any of them so to do.]
• (7) The search shall be made in the presence, of the witnesses aforesaid and a list of all things seized in the course of such search and of the places in which they were respectively found shall be prepared by [the authorised officer] and signed by such witnesses; but no person witnessing a search shall be required to attend as a witness of the search in any proceedings under [the Indian Income-tax Act, 1922 (11 of 1922), or] the Act unless specially summoned.
• [(8) The occupant of the building, place, vessel, vehicle or aircraft searched, including the person in charge of such vessel, vehicle or aircraft, or some person on his behalf, shall be permitted to attend during the search and a copy of the list prepared under sub-rule (7) shall be delivered to such occupant or person. A copy thereof shall be forwarded to the [Chief Commissioner or Commissioner], and, where the authorisation has been issued by any officer other than the [Chief Commissioner or Commissioner], also to that officer.]
• [(9) Where any person is searched under clause (iia) of sub-section (1) of section 132, a list of all things taken possession of shall be prepared and a copy thereof shall be delivered to such person. A copy thereof shall be forwarded to the [Chief Commissioner or Commissioner], and, where the authorisation has been issued by any officer other than the [Chief Commissioner or Commissioner], also to that officer.]
• [(10) [The authorised officer] shall place or cause to be placed the bullion, jewellery and other valuable articles and things seized during the search in a package or packages which shall be listed with details of the bullion, jewellery and other valuable articles and things placed therein; every such package shall bear an identification mark and the seal of [the authorised officer or any other income-tax authority] not below the rank of Income-tax Officer and [the occupant of the building, place, vessel, vehicle or aircraft, including the person in charge of such vessel, vehicle or aircraft, searched] or any other person in his behalf shall also be permitted to place his seal on them. A copy of the list prepared shall be delivered to such occupant or person. A copy shall be forwarded to the [Chief Commissioner or Commissioner] [and where the authorisation has been issued by any officer other than the [Chief Commissioner or Commissioner], also to that officer].]
• [[(11)] [The authorised officer] may convey the books of account and other documents, if any, seized by him in the course of the search made by him and the package or packages, if any, referred to in sub-rule (10) to the office of any income-tax authority not below the rank of Income-tax Officer (hereinafter referred to as the Custodian). Any money seized in the search referred to above may also be deposited with the Custodian.]
• [(12)(i) The Custodian shall take such steps as he may consider necessary for the safe custody of— (a)  books of account and other documents, and (b)  the package or packages, conveyed to him. (ii) The Custodian may deposit for safe custody all or any of the packages with any branch of the Reserve Bank of India or the State Bank of India or of its subsidiaries [or the authorised bank] or a Government Treasury. (iii) Where any money has been deposited with the Custodian, he may credit the money, or remit the money through the nearest [branch of the Reserve Bank of India or the State Bank of India or of its subsidiaries or any authorised bank] [* * *] for being credited, in the Personal Deposit Account of the [Chief Commissioner or Commissioner] in the [branch of the Reserve Bank of India or the State Bank of India or of its subsidiaries or any authorised bank] at the place where the office of the [Chief Commissioner or Commissioner] is situate.]
• [(13) (i) Whenever any sealed package is required to be opened for any of the purposes of the Act, [the authorised officer] may, unless he is himself the Custodian, requisition the same from the Custodian and on receipt of the requisition, such package or packages, as the case may be, shall be delivered to him by the Custodian. [The authorised officer] may break any seal and open such package in the presence of two respectable witnesses after giving a reasonable notice to the person from whose custody the contents were seized to be present. (ii) Such person shall be permitted to be present till all or any of the contents of such package are placed in a fresh package or packages and sealed in the manner specified in sub-rule (1) or delivered to such person or the Custodian, as the case may be.]
• [(14)] The [Assessing Officer] to whom the books of account or other documents or assets have been handed over under sub-section (9A) of section 132 shall have all the powers conferred on the authorised officer under sub-rules (11) and (13).]

Rule-112D, Income-tax Rules

• 112D. (1) The authorisation under sub-section (1) of section 132A by the [Director General or Director] or the [Chief Commissioner or Commissioner] shall be in Form No. 45C, shall be in writing under the signature of the officer issuing the authorisation and shall bear his seal.
• (2) The officer authorised to make a requisition under sub-section (1) of section 132A (hereinafter referred to as the requisitioning officer) shall make the requisition in writing to the officer or authority referred to in clause (a) or clause (b) or, as the case may be, clause (c) of the said sub-section (hereinafter referred to as the delivering officer or authority) calling upon the delivering officer or autho-rity to deliver the books of account, other documents or assets specified in the requisition to him. The requisition shall be accompanied by a copy of the authorisation in Form No. 45C. A copy of the requisition, along with a copy of the authorisation in Form No. 45C, shall be forwarded to the person referred to in clause (a) or clause (b) or, as the case may be, clause (c) of sub-section (1) of section 132A.
• (3) The delivering officer or authority shall prepare a list of the books of account or other documents delivered to the requisitioning officer. Before effecting delivery of any bullion, jewellery or other valuable article or thing, the delivering officer or authority shall place or cause to be placed such bullion, jewellery, article or thing in a package or packages which shall be listed with details of such bullion, jewellery, article or thing placed therein. Every such package shall bear an identification mark and seal of the requisitioning officer or of any other income-tax authority not below the rank of Income-tax Officer on behalf of the requisitioning officer, and also of the delivering officer or authority. The person referred to in clause (a) or clause (b) or, as the case may be, clause (c) of sub-section (1) of section 132A or any other person on his behalf shall also be permitted to place his seal on the said package or packages. A copy of the list prepared shall be delivered to such person and a copy thereof shall also be forwarded by the delivering officer to the [Chief Commis-sioner or Commissioner] and also to the [Director-General or Director] where the authorisation under sub-rule (1) has been issued by him.
• (4) The provisions of sub-rules (11) to (14) (both inclusive) of rule 112 and of rule 112A, rule 112B and rule 112C shall, so far as may be, apply as if the books of account, other documents and assets delivered to the requisitioning officer under section 132A had been seized under sub-section (1) of section 132 by the requisitioning officer from the custody of the person referred to in clause (a) or clause (b ) or, as the case may be, clause (c) of sub-section (1) of the said section and as if for the words "the authorised officer" occurring in any of the aforesaid sub-rules and rules, the words "the requisitioning officer" were substituted.]

Rule-114, Income-tax Rules

• 114. (1) An application under sub-section (1) [or sub-section (1A) or sub-section (2) or sub-section (3)] of section 139A for allotment of a permanent account number shall be made [***] in Form No. 49A [or 49AA, as the case may be]:
• 1[Provided that an applicant may apply for allotment of permanent account number through a common application form notified by the Central Government in the Official Gazette, and the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the classes of persons, forms and formats along with procedure for safe and secure transmission of such forms and formats in relation to furnishing of permanent account number.] 1a[(1A) Any person, who has not been allotted a permanent account number but possesses the Aadhaar number and has furnished or intimated or quoted his Aadhaar number in lieu of the permanent account number in accordance with sub-section (5E) of section 139A, shall be deemed to have applied for allotment of permanent account number and he shall not be required to apply or submit any documents under this rule.]
• (2) An application referred to in sub-rule (1) shall be made,— (i)  in cases where the function of allotment of permanent account number under section 139A has been assigned by the [Chief Commissioner or Commissioner] to any particular [Assessing Officer], to that [Assessing Officer]; (ii)  in any other case, to the [Assessing Officer] having jurisdiction to assess the applicant.
• (3) The application referred to in sub-rule (1) shall be made,— (i)  in a case where the total income of the person or the total income of any other person in respect of which he is assessable under the Act during any [financial year] exceeds the maximum amount which is not chargeable to income-tax and he has not been allotted any permanent account number, on or before the 31st day of May of the assessment year for which such income is assessable; (ii)  in the case of a person not falling under clause (i), but carrying on any business [or profession], the total sales, turnover or gross receipts of which are or is likely to exceed [five lakh rupees] in any [financial year] and who has not been allotted any permanent account number, before the end of that [financial year];] [(iii)  in the case of a person who is required to furnish a return of income under sub-section (4A) of section 139 and who has not been allotted any permanent account number, before the end of the [financial year];] [(iv)  in the case of a person who is entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVII-B in any financial year, before the end of such financial year.] 2[(v) in the case of a person, being a resident, other than an individual, which enters into a financial transaction of an amount aggregating to two lakh fifty thousand rupees or more in a financial year and which has not been allotted any permanent account number, on or before the 31st day of May immediately following such financial year; (vi) in the case of a person, who is the managing director, director, partner, trustee, author, founder, karta, chief executive officer, principal officer or office bearer of the person referred to in clause (v) or any person competent to act on behalf of the person referred to in clause (v) and who has not been allotted any permanent account number, on or before the 31st day of May immediately following the financial year in which the person referred to in clause (v) enters into financial transaction specified therein.]

TABLE

S. No.
Applicant
Form
Documents as proof of identity, address and date of birth
(1)
(2)
(3)
(4)
1
Individual who is a citizen of India
49A
(A) Proof of identity— (i) Copy of,— (a) elector`s photo identity card ; or (b) ration card having photograph of the applicant; or (c) passport; or (d) driving licence; or (e) arm`s license; or (f) AADHAR Card issued by the Unique Identification Authority of India; or (g) photo identity card issued by the Central Government or a State Government or a Public Sector Undertaking; or (h) Pensioner Card having photograph of the applicant; or (i) Central Government Health Scheme Card or Ex-servicemen Contributory Heath Scheme photo card; or (ii) certificate of identity in original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer, as the case may be; or (iii) bank certificate in original on letter head from the branch (along with name and stamp of the issuing officer) containing duly attested photograph and bank account number of the applicant. Note: In case of a person being a minor, any of the above documents of any of the parents or guardian of such minor shall be deemed to be the proof of identity. (B) Proof of address— (i) copy of the following documents of not more than three months old— (a)  electricity bill; or (b)  landline telephone or broadband connection bill; or (c)  water bill; or (d)  consumer gas connection card or book or piped gas bill; or (e)  bank account statement or as per Note 1; or (f)  depository account statement ; or (g)  credit card statement; or (ii) copy of,─ (a)  post office pass book having address of the applicant; or (b)  passport; or (c)  passport of the spouse; or (d)  elector`s photo identity card; or (e)  latest property tax assessment order; or (f)  driving licence; or (g)  domicile certificate issued by the Government; or (h)  AADHAR Card issued by the Unique Identification Authority of India; or (i)  allotment letter of accommodation issued by the Central Government or State Government of not more than three years old; or (j)  property registration document; or (iii) certificate of address signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councillor or a Gazetted Officer, as the case may be; or (iv) employer certificate in original. Note 1: In case of an Indian citizen residing outside India, copy of Bank Account Statement in country of residence or copy of Non-resident External bank account statements shall be the proof of address. Note 2: In case of a minor, any of the above documents of any of the parents or guardian of such minor shall be deemed to be the proof of address. [(C) Proof of date of birth— copy of the following documents if they bear the name, date, month and year of birth of the applicant, namely:— (a)  birth certificate issued by the municipal authority or any office authorised to issue birth and death certificate by the Registrar of Birth and Deaths or the Indian Consulate as defined in clause (d) of sub-section (1) of section 2 of the Citizenship Act, 1955 (57 of 1955); or (b)  pension payment order; or (c)  marriage certificate issued by the Registrar of Marriages; or (d)  matriculation certificate or mark sheet of recognised board; or (e)  passport; or (f)  driving licence; or (g)  domicile certificate issued by the Government; or (h)  aadhar card issued by the Unique Identification Authority of India; or (i)  elector`s photo identity card; or (j)  photo identity card issued by the Central Government or State Government or Central Public Sector Undertaking or State Public Sector Undertaking; or (k)  Central Government Health Service Scheme photo card or Ex-servicemen Contributory Health Scheme photo card; or (l)  affidavit sworn before a magistrate stating the date of birth.]
2
Hindu undivided family
49A
(a) An affidavit by the karta of the Hindu Undivided Family stating the name, father`s name and address of all the coparceners on the date of application; and (b) copy of any document applicable in the case of an individual specified in serial number 1, in respect of karta of the Hindu undivided family, as proof of identity, address and date of birth
3
Company registered in India
49A
[(a) Copy of Certificate of Registration issued by the Registrar of Companies; or (b) corporate identity number allotted by the Registrar under section 7 of the Companies Act, 2013 (18 of 2013).]
4
Firm (including Limited Liability Partnership) formed or registered in India
49A
(a) Copy of Certificate of Registration issued by the Registrar of Firms/Limited Liability Partnerships; or (b) copy of Partnership Deed.
5
Association of persons (Trusts) formed or registered in India
49A
(a) Copy of trust deed; or (b) copy of Certificate of Registration Number issued by Charity Commissioner.
6
Association of persons (other than Trusts) or body of individuals or local authority or artificial juridical person formed or registered in India
49A
(a) Copy of Agreement; or (b) copy of Certificate of Registration Number issued by Charity Commissioner or Registrar of Co-operative Society or any other Competent Authority; or (c) any other document originating from any Central Government or State Government Department establishing Identity and address of such person.
7
Individuals not being a citizen of India
49AA
(i) Proof of identity :— (a) copy of Passport; or (b) copy of person of Indian Origin card issued by the Government of India; or (c) copy of Overseas Citizenship of India Card issued by Government of India; or (d) copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by "Apostille" (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India. (ii) Proof of address:— (a) copy of Passport; or (b) copy of person of Indian Origin card issued by the Government of India; or (c) copy of Overseas Citizenship of India Card issued by Government of India; or (d) copy of other national or citizenship Identification Number or Taxpayer Identification Number duly attested by "Apostille" (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or (e) copy of bank account statement in the country of residence; or (f) copy of Non-resident External bank account statement in India; or (g) copy of certificate of residence in India or Residential permit issued by the State Police Authority; or (h) copy of the registration certificate issued by the Foreigner`s Registration Office showing Indian address; or (i) copy of Visa granted and copy of appointment letter or contract from Indian Company and Certificate (in original) of Indian Address issued by the employer.
8
LLP registered outside India
49AA
(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by "Apostille" (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or (b) copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
9
Company registered outside India
49AA
(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by "Apostille" (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or (b) copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
10
Firm formed or registered outside India
49AA
(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by "Apostille" (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or (b) copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
11
Association of persons (Trusts) formed outside India
49AA
(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by "Apostille" (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or (b) copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
12
Association of persons (other than Trusts) or body of individuals or local authority or person formed or any other entity (by whatever name called) registered outside India
49AA
(a) Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by "Apostille" (in respect of countries which are signatories to the Hague Apostille Convention of 1961) or by Indian embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India; or (b) copy of registration certificate issued in India or of approval granted to set up office in India by Indian Authorities.
• 3[(5) Every person who has been allotted permanent account number as on the 1st day of July, 2017 and who in accordance with the provisions of sub-section (2) of section 139AA is required to intimate his Aadhaar number, shall intimate his Aadhaar number to the Principal Director General of Income-tax (Systems) or Director-General of Income-tax (Systems) or the person authorised by the said authorities.
• (6) The Principal Director General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the formats and standards alongwith procedure, for the verification of documents filed with the application 4[under sub-rule (4), intimation of Aadhaar number in sub-rule (5) and issue of permanent account number], for ensuring secure capture and transmission of data in such format and standards and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing of the application forms for allotment of permanent account 5[number, intimation of Aadhaar number and issue of permanent account number].]
• 6[(7) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall lay down the formats and standards along with procedure for,— (a) Â furnishing or intimation or quoting of Aadhaar number under sub-rule (1A); or (b) Â intimation of Aadhaar number under sub-rule (1B); or (c) Â authentication of Aadhaar number under sub-rule (1C); or (d) Â obtaining demographic information of an individual from the Unique Identification Authority of India, for ensuring secure capture and transmission of data and shall also be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to furnishing or intimation or quoting or authentication of Aadhaar number or obtaining of demographic information of an individual from the Unique Identification Authority of India, for allotment of permanent account number and issue thereof.]

Rule-114A, Income-tax Rules

• 114A . (1) An application under sub-section (1) of section 203A for the allotment of a tax deduction and collection account number shall be made in duplicate in Form No. 49B: 1 [Provided that an applicant may apply for allotment of a tax deduction and collection account number through a common application form notified by the Central Government in the Official Gazette, and the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the classes of persons, applicable forms and formats along with procedure for safe and secure transmission of such forms and formats in relation to furnishing of tax deduction and collection account number.]
• (2) An application referred to in sub-rule (1) shall be made,— (i)  in cases where the function of allotment of tax deduction and collection account number under section 203A has been assigned by the Chief Commissioner or Commissioner to any particular Assessing Officer, to that Assessing Officer; (ii)  in any other case, to the Assessing Officer having jurisdiction to assess the applicant.
• (3) The application referred to in sub-rule (1) shall be made,— (i)  in a case where a person has deducted tax or collected tax in accordance with the provisions of Chapter XVII under the heading `B.—Deduction at source` or `BB.—Collection at source`, as the case may be, prior to the 1st day of October, 2004, on or before the 31st day of January, 2005;
• (ii)  in a case where a person has,— (a)  deducted or deducts tax in accordance with the provisions of Chapter XVII under the heading `B.—Deduction at source`; or (b)  collected or collects tax in accordance with the provisions of Chapter XVII under the heading `BB.—Collection at source`, on or after the 1st day of October, 2004, within one month from the end of the month in which the tax was deducted or collected, as the case may be, or the 31st day of January, 2005, whichever is later.]

Rule-114B, Income-tax Rules

• 114B. Every person shall quote his permanent account number in all documents pertaining to the transactions specified in the Table below, namely:—

TABLE

S. No.
Nature of transaction
Value of transaction
(1)
(2)
(3)
1
Sale or purchase of a motor vehicle or vehicle, as defined in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) which requires registration by a registering authority under Chapter IV of that Act, other than two wheeled vehicles.
All such transactions.
2
Opening an account [other than a time-deposit referred to at Sl. No.12 and a Basic Savings Bank Deposit Account] with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act).
All such transactions.
3
Making an application to any banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution, for issue of a credit or debit card.
All such transactions.
4
Opening of a demat account with a depository, participant, custodian of securities or any other person registered under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992).
All such transactions.
5
Payment to a hotel or restaurant against a bill or bills at any one time.
Payment in cash of an amount exceeding fifty thousand rupees.
6
Payment in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time.
Payment in cash of an amount exceeding fifty thousand rupees.
7
Payment to a Mutual Fund for purchase of its units.
Amount exceeding fifty thousand rupees.
8
Payment to a company or an institution for acquiring debentures or bonds issued by it.
Amount exceeding fifty thousand rupees.
9
Payment to the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934) for acquiring bonds issued by it.
Amount exceeding fifty thousand rupees.
10
Deposit with,— (i)  banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); (ii)  Post Office.
Cash deposits,— (i)  exceeding fifty thousand rupees during any one day; or (ii)  aggregating to more than two lakh fifty thousand rupees during the period 09th November, 2016 to 30th December, 2016.]
11
Purchase of bank drafts or pay orders or banker`s cheques from a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act).
Payment in cash for an amount exceeding fifty thousand rupees during any one day.
12
A time deposit with,— (i) a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); (ii) a Post Office; (iii) a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); or (iv) a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public.
Amount exceeding fifty thousand rupees or aggregating to more than five lakh rupees during a financial year.
13
Payment for one or more pre-paid payment instruments, as defined in the policy guidelines for issuance and operation of pre-paid payment instruments issued by Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007 (51 of 2007), to a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution.
Payment in cash or by way of a bank draft or pay order or banker`s cheque of an amount aggregating to more than fifty thousand rupees in a financial year.
14
Payment as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938).
Amount aggregating to more than fifty thousand rupees in a financial year.
15
A contract for sale or purchase of securities (other than shares) as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).
Amount exceeding one lakh rupees per transaction.
16
Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange.
Amount exceeding one lakh rupees per transaction.
17
Sale or purchase of any immovable property.
Amount exceeding ten lakh rupees or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees.
18
Sale or purchase, by any person, of goods or services of any nature other than those specified at Sl. Nos. 1 to 17 of this Table, if any.
Amount exceeding two lakh rupees per transaction:
• Provided that where a person, entering into any transaction referred to in this rule, is a minor and who does not have any income chargeable to income-tax, he shall quote the permanent account number of his father or mother or guardian, as the case may be, in the document pertaining to the said transaction: Provided further that any person who does not have a permanent account number and who enters into any transaction specified in this rule, he shall make a declaration in Form No.60 giving therein the particulars of such transaction 1[either in paper form or electronically under the electronic verification code in accordance with the procedures, data structures, and standards specified by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems)]: Provided also that the provisions of this rule shall not apply to the following class or classes of persons, namely:— (i)  the Central Government, the State Governments and the Consular Offices; (ii)  the non-residents referred to in clause (30) of section 2 of the Act in respect of the transactions other than a transaction referred to at Sl. No. 1 or 2 or 4 or 7 or 8 or 10 or 12 or 14 or 15 or 16 or 17 of the Table:
• 2[Provided also that a person who has an account (other than a time deposit referred to at S.No.12 of the Table and a Basic Saving Bank Deposit Account) maintained with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) and has not quoted his permanent account number or furnished Form No. 60, as the case may be, at the time of opening of such account or subsequently, he shall furnish his permanent account number or Form No.60, as the case may be, to the person specified in clause (c) of sub-rule (1) of rule 114C on or before the 3[30th day of June], 2017.] ]
• Explanation.—For the purposes of this rule,— (1)  "payment in connection with travel" includes payment towards fare, or to a travel agent or a tour operator, or to an authorised person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999); (2)  "travel agent or tour operator" includes a person who makes arrangements for air, surface or maritime travel or provides services relating to accommodation, tours, entertainment, passport, visa, foreign exchange, travel related insurance or other travel related services either severally or in package; (3)  "time deposit" means any deposit which is repayable on the expiry of a fixed period.]

Rule-114C, Income-tax Rules

• 114C. (1) Any person being,— (a)  a registering officer or an Inspector-General appointed under the Registration Act, 1908 (16 of 1908); (b)  a person who sells the immovable property or motor vehicle; (c)  a manager or officer of a banking company or co-operative bank, as the case may be, referred to at Sl. No. 2 or 3 or 10 or 11 or 12 or 13 of rule 114B; (d)  post master; (e)  stock broker, sub-broker, share transfer agent, banker to an issue, trustee of a trust deed, registrar to issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediaries registered under sub-section (1) section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992); (f)  a depository, participant, custodian of securities or any other person registered under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) referred to at Sl. No. 4 of rule 114B; (g)  the principal officer of a company referred to at Sl. No. 3 or 4 or 8 or 12 or 13 or 15 or 16 of rule 114B; (h)  the principal officer of an institution referred to at Sl. No. 2 or 3 or 8 or 10 or 11 or 12 or 13 of rule 114B; (i)  any trustee or any other person duly authorised by the trustee of a Mutual Fund referred to at Sl. No. 7 of rule 114B; (j)  an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934), or of any agency bank authorised by the Reserve Bank of India; (k)  a manager or officer of an insurer referred to at Sl. No. 14 of rule 114B, who, in relation to a transaction specified in rule 114B, has received any document shall ensure after verification that permanent account number has been duly and correctly mentioned therein or as the case may be, a declaration in Form 60 has been duly furnished with complete particulars.
• (2) Any person, being a person raising bills referred to at Sl. No. 5 or 6 or 18 of rule 114B, who, in relation to a transaction specified in the said Sl. No., has issued any document shall ensure after verification that permanent account number has been correctly furnished and the same shall be mentioned in such document, or as the case may be, a declaration in Form 60 has been duly furnished with complete particulars.]
• 1 [ (3) The person referred to in sub-rule (1) or sub-rule (2) who has received any document in which permanent account number is mentioned or as the case may be, a declaration in Form No.60 has been furnished, shall ensure that the valid permanent account number or the fact of furnishing of Form No.60, is duly mentioned in the records maintained for the transactions referred to in rule 114B and the permanent account number or the details of Form No.60 are linked and mentioned in any information furnished to the income-tax authority or any other authority or agency under any provision of the Act or any rule prescribed therein.]

Rule-114D, Income-tax Rules

• 114D. (1) Every person referred to in,— (I)  [ clauses (a) ] to (k) of sub-rule (1) of rule 114C; and (II)  sub-rule (2) of rule 114C and who is required to get his accounts audited under section 44AB of the Act, who has received any declaration in Form No. 60, on or after the 1st day of January, 2016, in relation to a transaction specified in rule 114B, shall- (i)  furnish a statement in Form No. 61 containing particulars of such declaration to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation) through online transmission of electronic data to a server designated for this purpose and obtain an acknowledgement number; and (ii)  retain Form No. 60 for a period of six years from the end of the financial year in which the transaction was undertaken.
• (2) The statement referred to in clause (i) of sub-rule (1) shall,— (i)  where the declarations are received by the 30th September, be furnished by the 31st October of that year; and (ii)  where the declarations are received by the 31st March, be furnished by the 30th April of the financial year immediately following the financial year in which the form is received:  1 [Provided that the statement in respect of the transactions listed in clause (ii) of column (3) of serial number (10) of the Table under rule 114B shall be furnished on or before the 15th day of January, 2017.]
• (3) The statement referred to in clause (i) of sub-rule (1) shall be verified— (a)  in a case where the person furnishing the statement is an assessee as defined in clause (7) of section 2 of the Act, by a person specified in section 140 of the Act; (b)  in any other case, by the person referred to in rule 114C.]
• [ (4) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall specify the procedures, data structures, and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival and retrieval policies in relation to the statement referred to in sub-clause (i) of sub-rule (1).]

Rule-114E, Income-tax Rules

• 114E. (1) The statement of financial transaction required to be furnished under sub-section (1) of section 285BA of the Act shall be furnished in respect of a financial year in Form No. 61A and shall be verified in the manner indicated therein.
• (2) The statement referred to in sub-rule (1) shall be furnished by every person mentioned in column (3) of the Table below in respect of all the transactions of the nature and value specified in the corresponding entry in column (2) of the said Table in accordance with the provisions of sub-rule (3), which are registered or recorded by him on or after the 1st day of April, 2016, namely:—

TABLE

S. No.
Nature and value of transaction
Class of person (reporting person)
(1)
(2)
(3)
1
(a) Payment made in cash for purchase of bank drafts or pay orders or banker`s cheque of an amount aggregating to ten lakh rupees or more in a financial year.
A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act).
2
Cash deposits aggregating to ten lakh rupees or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person.
(i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General10 as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).
3
One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to ten lakh rupees or more in a financial year of a person.
(i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898); (iii) Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); (iv) Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (6 of 1934), to hold or accept deposit from public.
4
Payments made by any person of an amount aggregating to— (i) one lakh rupees or more in cash; or (ii) ten lakh rupees or more by any other mode, against bills raised in respect of one or more credit cards issued to that person, in a financial year.
A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or any other company or institution issuing credit card.
5
Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring bonds or debentures issued by the company or institution (other than the amount received on account of renewal of the bond or debenture issued by that company).
A company or institution issuing bonds or debentures.
6
Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring shares (including share application money) issued by the company.
A company issuing shares.
7
Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to ten lakh rupees or more in a financial year.
A company listed on a recognised stock exchange purchasing its own securities under section 68 of the Companies Act, 2013 (18 of 2013).
8
Receipt from any person of an amount aggregating to ten lakh rupees or more in a financial year for acquiring units of one or more schemes of a Mutual Fund (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund).
A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf.
9
Receipt from any person for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through issue of travellers cheque or draft or any other instrument of an amount aggregating to ten lakh rupees or more during a financial year.
Authorised person as referred to in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999).
10
Purchase or sale by any person of immovable property for an amount of thirty lakh rupees or more or valued by the stamp valuation authority referred to in section 50C of the Act at thirty lakh rupees or more.
Inspector-General appointed under section 3 of the Registration Act, 1908 or Registrar or Sub-Registrar appointed under section 6 of that Act.
11
Receipt of cash payment exceeding two lakh rupees for sale, by any person, of goods or services of any nature (other than those specified at Sl. Nos. 1 to 10 of this rule, if any.)
Any person who is liable for audit under section 44AB of the Act.
12
[ 12. Cash deposits during the period 09th November, 2016 to 30th December, 2016 aggregating to— (i)  twelve lakh fifty thousand rupees or more, in one or more current account of a person; or (ii)  two lakh fifty thousand rupees or more, in one or more accounts (other than a current account) of a person.
(i) Â A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Â Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).]
13
1 [ 13. Cash deposits during the period 1st of April, 2016 to 9th November, 2016 in respect of accounts that are reportable under Sl.No.12.
(i) Â A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Â Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).]
• (3) The reporting person mentioned in column (3) of the Table under sub-rule (2) [(other than the persons at Sl.No.10 and Sl.No.11)] shall, while aggregating the amounts for determining the threshold amount for reporting in respect of any person as specified in column (2) of the said Table,— (a)  take into account all the accounts of the same nature as specified in column (2) of the said Table maintained in respect of that person during the financial year; (b)  aggregate all the transactions of the same nature as specified in column (2) of the said Table recorded in respect of that person during the financial year; (c)  attribute the entire value of the transaction or the aggregated value of all the transactions to all the persons, in a case where the account is maintained or transaction is recorded in the name of more than one person; (d)  apply the threshold limit separately to deposits and withdrawals in respect of transaction specified in item (c) under column (2), against Sl. No. 1 of the said Table.
• (4)(a) The return in Form No. 61A referred to in sub-rule (1) shall be furnished to the Director of Income-tax (Intelligence and Criminal Investigation) or the Joint Director of Income-tax (Intelligence and Criminal Investigation) through online transmission of electronic data to a server designated for this purpose under the digital signature of the person specified in sub-rule (7) and in accordance with the data structure specified in this regard by the Principal Director General of Income-tax (Systems):
• Provided that in case of a reporting person, being a Post Master General or a Registrar or an Inspector General referred to in sub-rule (2), the said return in Form 61A may be furnished in a computer readable media, being a Compact Disc or Digital Video Disc (DVD), alongwith the verification in Form-V on paper. Explanation.—For the purposes of this sub-rule, "digital signature" means a digital signature issued by any Certifying Authority authorised to issue such certificates by the Controller of Certifying Authorities. (b) Principal Director General of Income-tax (Systems) shall specify the procedures, data structures and standards for ensuring secure capture and transmission of data, evolving and implementing appropriate security, archival and retrieval policies. (c) The Board may designate an officer as Information Statement Administrator, not below the rank of a Joint Director of Income-tax for the purposes of day to day administration in relation to the furnishing of returns or statements. (5) The statement of financial transactions referred to in sub-rule (1) shall be furnished on or before the 31st May, immediately following the financial year in which the transaction is registered or recorded:
• [Provided the statement of financial transaction in respect of the transactions listed at serial number (12) 2[and serial number (13)] in the Table under sub-rule (2), shall be furnished on or before the 31st day of January, 2017.] (6) (a) Every reporting person mentioned in column (3) of the Table under sub-rule (2) shall communicate to the Principal Director General of Income-tax (Systems) the name, designation, address and telephone number of the Designated Director and the Principal Officer and obtain a registration number. (b) It shall be the duty of every person specified in column (3) of the Table under sub-rule (2), its Designated Director, Principal Officer and employees to observe the procedure and the manner of maintaining information as specified by its regulator and ensure compliance with the obligations imposed under section 285BA of the Act and rules 114B to 114D and this rule.
• Explanation 1.—"Designated Director" means a person designated by the reporting person to ensure overall compliance with the obligations imposed under section 285BA of the Act and the rules 114B to 114D and this rule and includes— (i)  the Managing Director or a whole-time Director, as defined in the Companies Act, 2013 (18 of 2013), duly authorised by the Board of Directors if the reporting person is a company; (ii)  the managing partner if the reporting person is a partnership firm; (iii)  the proprietor if the reporting person is a proprietorship concern; (iv)  the managing trustee if the reporting person is a trust; (v)  a person or individual, as the case may be, who controls and manages the affairs of the reporting entity if the reporting person is, an unincorporated association or, a body of individuals or, any other person. Explanation 2.—"Principal Officer" means an officer designated by the reporting person referred to in the Table in sub-rule (2). Explanation 3.—"Regulator" means a person or an authority or a Government which is vested with the power to license, authorise, register, regulate or supervise the activity of the reporting person referred to in the Table in sub-rule (2).
• (7) The statement of financial transaction referred to in sub-rule (1) shall be signed, verified and furnished by the Designated Director specified in sub-rule (6): Provided that where the reporting person is a non-resident, the statement may be signed, verified and furnished by a person who holds a valid power of attorney from such Designated Director. ]