1. Non-applicability of Section 206AA to non-residents to whom Section 139A does not apply on account of Rule 114AAB:
Section 206AA provides that any person receiving payment (deductee), on which TDS is required to be deducted shall furnish PAN to the deductor. Section 206AA shall not apply to a non-resident who is not required to obtain PAN u/s 139A by virtue of being governed by new Rule 114AAB inserted by CBDT. Rule 114AAB provides exemption to non-residents (including foreign companies) from Section 139A who have made the investment in a Category I or II Alternative Investment Fund, regulated by SEBI and located in the International Financial Services Center and the following conditions are fulfilled:
• Such NR does not earn any other income in India, furnishes requisite details and documents to such fund and Income tax due on the income of the NR from such fund has been deducted at source by the fund and duly deposited as per Section 194LBB.
• The specified fund furnishes a quarterly statement regarding details of such NR in Form 49BA electronically to the Principal Director of Income Tax within 15 days from the end of the quarter.
The Central Government has designated 3 three courts of Magistrates of First Class as Special Courts in the State of Maharashtra, u/s 280A of the IT Act and Section 84 of the Black Money (Undisclosed Foreign Income and Assets) and The Imposition of Tax Act, 2015 for the trial of offences punishable under the IT Act and other related matters.
3. CBDT notifies procedure for assessment under Faceless Assessment:
CBDT has substituted the earlier scheme for ‘e-assessment’ by ‘faceless assessment’. Among the several amendments made in the procedure, plausible difference between the earlier procedure and new procedure is that the person shall not be required to appear personally or through his authorised representative for any proceedings under the said scheme. A request for personal hearing exclusively through video conferencing can be permitted by the Chief Commissioner or Director General to enable the assesse to present his submissions where a modification is proposed in the draft assessment order. Further, all internal communication and records shall be maintained in electronic mode and the national e-assessment center shall validate the same through digital signature.
4. CBDT notifies revised jurisdictions of certain Principal Commissioners of Income Tax (CIT) & Chief Commissioner of Income Tax (CCIT):
As per Section 120 (Jurisdiction of IT authorities) and Section 118 (Control of IT authorities), CBDT has via notification, revised the jurisdictions of certain Principal CITs & CCITs w.e.f 13th August, 2020.
CBDT further amended the above notification to revise certain jurisdictions of Principal CIT & CCITs vide Notification No. 68/2020 and Notification No. 69/2020 dated 27th day of August, 2020.
5. CBDT notifies authorities for faceless assessment:
CBDT notified certain National and Regional e-Assessment Centres, headquartered at specific locations that would exercise the powers and functions of Assessing Officers concurrently, in order to facilitate the conduct of Faceless Assessment proceedings in respect of notified territorial areas.
6. CBDT notifies powers of authorities w.r.t Faceless assessment.
CBDT declared that certain Principal Commissioner of Income Tax (Regional e-assessment centre) can exercise concurrent powers along with any other authority under the IT Act and also hold additional charge and act as prescribed authority in respect of certain specified persons/territorial areas. Such Principal Commissioner may further authorise in this regard, via an order in writing, Additional or Joint Commissioners of Income tax subordinate to him, who may further similarly authorise Deputy or Assistant Commissioners of Income Tax subordinate to them.
7. Requirements for exemption u/s 10(23FE)
Sub-Clause c of clause (iii) of explanation to Section 10(23FE), inter alia, provides for exemption to pension funds from income earned from investment made in specified investments (investment in business trust u/s 2(13A) or Category I or II Alternative Investment Fund, regulated by SEBI and making 100% investment in specified infrastructure business). CBDT has inserted new rule 2DB to provide for conditions to be satisfied by the pension fund in order to obtain such exemption namely:
• It is regulated under the law of a foreign country.
• It is responsible for administering or investing the assets for meeting statutory obligations for one or more funds or plans established for retirement, social security and the like.
• The earnings and assets of such pension fund are only used for such statutory obligations and benefits from such fund do not accrue to any private person other than the beneficiaries.
• It does not undertake any commercial activity in or outside India.
• It shall intimate details of all investment made in India on a quarterly basis, in form 10BB within 1 month from the end of each quarter.
• It shall furnish its Return of Income within the due date specified in Section 139(1) along with a certificate in Form 10BBC from an accountant, verifying compliance to all provisions of Section 10(23FE).
In addition, CBDT has also notified new rule 2DC to provide for the manner for the pension fund to obtain recognition by the Central government in order to be eligible for such exemption. As per the said rule, the pension fund shall make an application in Form 10BBA along with relevant documents and evidence to the Member(legislation)- CBDT for FY 2020-21 and Member-CBDT having supervision and control over the work of Foreign Tax and Tax Research Division for the other financial years.
8. Banks to refund charges imposed on payments made through prescribed electronic modes
Section 269SU, inserted via the Finance (No.2) Act, mandated for every person with business turnover of more than Rs. 50 crores during the immediately preceding previous year to provide facilities for accepting payments through prescribed electronic modes. CBDT has clarified that no bank /service provider can impose any charges on transactions made through such prescribed electronic modes- viz, Debit Card, BHIM UPI & BHIM UPI QR CODE on or after 1st January 2020 and any such charges if imposed are advised to be immediately refunded or it shall attract penal provisions under section 271 DS of the IT Act as well as section 26 of the PSS Act
9. Notification of Commercial Banks as specified authority u/s 138
CBDT notified Commercial Banks as a specified authority under Section 138(1)(a)(ii) enabling the board to furnish or cause to furnish any information received or obtained by any income-tax authority in the performance of its functions under the Act, to such specified officer.
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