GST Plus - Get Daily updates,support,whatsapp Group & reply to GST Notices etc.!! Call : 011-411-70713 !!

ICICI

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

The Central Board of Direct Taxes has released the Income-tax (26th Amendment) Rules, 2021 to further amend the Income-tax Rules, 1962. Under the amended rules, CBDT has inserted a new Rule 26D after rule 26C which lays down the provisions for Furnishing of Declaration and Evidence of Claims by Specified Senior Citizenu/s 194P. Furthermore, a new Form 12BBA has also been inserted which is a Declaration to be Furnished by Specified Senior Citizen under sub-clause (iii) of clause (b) of Explanation to section 194P.

Relevant text of the new Rule 26D is as follows:

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 26C, the following rule shall be inserted, namely:-

"26D.Furnishing of declaration and evidence of claims by specified senior citizen under section 194P.- (1) The declaration required to be furnished by the specified senior citizen to the specified bank under sub-clause (iii) of clause (b) of explanation to section 194P shall be in Form no. 12BBA to be furnished in paper form duly verified.

(2) On furnishing of the declaration in Form No. 12BBA, the specified bank shall, after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A, compute the total income of such specified senior citizen for the relevant assessment year and deduct income-tax on such total income on the basis of the rates in force.

CBDT inserts new Rule 26D - Furnishing of Declaration and Evidence of Claims by Specified Senior Citizen u/s 194P

(3) The effect to the deduction allowable under Chapter VI-A shall be given based on the evidence furnished by the specified senior citizen during the previous year.

(4) The declaration referred to in sub-rule (1) and evidence for claiming deduction under Chapter VI-A referred to in sub-rule (3) shall be properly maintained by the Specified Bank and shall be made available to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required.

(5) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify procedure for furnishing of particulars of Form No. 12BBA referred to in sub-rule (1) and evidence referred to in sub-rule (3) by the specified banks to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required."

3. In the principal rules, in rule 31, in sub-rule (1), in clause (a), after the word and figures "section 192", the words, figures and letter "and section 194P" shall be inserted.

4. In the principal rules, in rule 31A,-

(i) in sub-rule (1), -

(I) in clause (a), after the word and figures "section 192", the words, figures and letter "and section 194P" shall be inserted;

(II) in clause (b), after the words, figures and letter "section 193 to 196D", the brackets, words, figures and letter "(other than section 194P)" shall be inserted;

(ii) after sub-rule (3A), the following sub-rule shall be inserted, namely:-

"(3B) Specified bank responsible for deduction of tax under section 194P shall furnish evidence produced by the specified senior citizen for claiming deduction under chapter VI-A to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or to any other person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as and when required."

Click here to read the official notification.

Tags :


Comments


img

Trending Tags