The Finance Ministry notifies the Income-tax (2nd Amendment) Rules 2020

The Ministry of Finance vide a notification dated 6th January 2020 has published the Income-tax (2nd Amendment) Rules 2020 to further amend the Income-tax Rules, 1962. By this amendment, Rule 10DA which previously dealt with information and documents to be kept and maintained under proviso to section 92D(a) and to be furnished in terms of section 92D (4) is changed as maintenance and furnishing of information and document by certain person under Section 92D which will be effective from 1st April 2020.

The other changes made by this amendment are as follows-

  1. Rule 10DA (2) is now amended to state that the information and document specified in sub-rule (1) shall be submitted to the Joint Commissioner in Form No. 3CEAA and it shall be furnished on or before the due date for furnishing the return of income as specified in sub-section (1) of section 139. Prior to the amendment, the Form 3CEAA was the report of information to be submitted to Director General of Income-tax (Risk Assessment). Thus, the Authority to receive the Form 3CEAA is changed by this amendment.
  2. The constituent entity should furnish Part A of Form No. 3CEAA even if the conditions specified under Rule 10DA(1) are not satisfied.  However, in case there are more than one constituent entities resident in India of an international group, the Form No. 3CEAA may be furnished by any one constituent entity, if –
  3. the international group has designated such entity for this purpose; and
  4. the information has been conveyed in Form No. 3CEAB to the Joint Commissioner referred to in
    Rule 10DB (1), in this behalf 30 days before the due date of furnishing the Form No. 3CEAA.
  5. Rule 10DB(1) and Rule 10DB(2) that deals with furnishing of Report in respect of an International Group is also substituted as the following-
  6. Income-tax authority for the purposes of section 286 shall be the Joint Commissioner. Prior to the amendment, the Director General of Income-tax (Risk Assessment) was the authority for the purpose of Section 286.
  7. Notification under Sec 286(1) shall be made in Form No. 3CEAC two months prior to the due date for furnishing of report as specified under Sec 286(2). Prior to the Amendment, it was not a notification, but the intimation under Rule 10DB (1).
  8. Every parent entity or the alternate reporting entity, as the case may be, resident in India, shall, for every reporting accounting year, furnish the report referred to in section 286(2) to the Joint Commissioner the in-Form No. 3CEAD. Prior to the amendment, this report was required to made to the Director General of Income-tax (Risk Assessment).

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