CBDT Amends Form 27Q: Introduces Note 7A for Lower/No TDS Information



Quick Summary
The Central Board of Direct Taxes (CBDT) has introduced amendments to Form 27Q, effective from July 1st, 2024. A new note, 7A, has been added to the 'Verification' section. This note instructs taxpayers to mark 'P' if they qualify for lower or no Tax Deducted at Source (TDS) under specific provisions of the Income-tax Act. These changes are part of the Income-tax (Sixth Amendment) Rules, 2024.

The Central Board of Direct Taxes (CBDT) has issued a new notification announcing further amendments to the Income-tax Rules, 1962. Officially termed the Income-tax (Sixth Amendment) Rules, 2024, these changes will take effect on July 1st, 2024.

Key Highlights of the Notification

Amendment to Form 27Q

  • New Note 7A: A significant update has been made to Form No. 27Q, particularly in the Annexure under the heading "Verification". The amendment introduces a new Note, labeled as Note 7A.
  • Instruction for Taxpayers: This note directs taxpayers to write "P" if they are eligible for a lower deduction or no deduction, according to the notification issued under sub-section (1F) of section 197A of the Income-tax Act, 1961.
Form 27Q Amended: New Note 7A for Lower TDS

Implementation Date

  • Effective July 1st, 2024: The revised rules will be effective from July 1st, 2024, providing a one-month window for taxpayers and tax professionals to become acquainted with the new requirements.

Official copy of the notification is as follows

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 4th June, 2024
(INCOME-TAX)

G. S. R. 309(E).—In exercise of the powers conferred by section 295 read with sub-section (3) of section 200 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:–

1. (1) These rules may be called the Income-tax (Sixth Amendment) Rules, 2024.
(2) They shall come into force on the 1st day of July, 2024.

2. In the Income-tax Rules, 1962, in Form No. 27Q, in the Annexure, under the heading "Verification", in the Notes, after Note No. 7, the following Note shall be inserted, namely:- '7A. Write "P" if lower deduction or no deduction is in view of notification issued under sub-section (1F) of section 197A.'.

[Notification No. 48/2024/F. No 370142/11/2024-TPL]
KHUSHBOO LATHER, Under Secy.

Note: The Income-tax Rules, 1962 were published in the Gazette of India, Extraordinary, Part-II, section-3, subsection (ii) vide number S.O. 969 (E), dated the 26th March, 1962 and were last amended vide notification number G.S.R. 233 (E), dated the 27th March , 2024.
 

FAQ :

A new note, labelled 7A, has been introduced in the 'Verification' section of Form 27Q.

Taxpayers must write 'P' in Note 7A if they are eligible for a lower deduction or no deduction of tax, as per a notification under sub-section (1F) of section 197A of the Income-tax Act.

The amendments will be effective from July 1st, 2024.

The amendments are officially termed the Income-tax (Sixth Amendment) Rules, 2024.

The notification was issued by the Central Board of Direct Taxes (CBDT).




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