CBDT notifies Income-tax (Thirty-Third Amendment) Rules, 2022



Quick Summary
The Central Board of Direct Taxes (CBDT) has issued the Income-tax (Thirty-Third Amendment) Rules, 2022. These new rules, effective from their publication date, amend existing Income-tax Rules, 1962. Specifically, changes have been made to rule 114F concerning financial institutions and their reporting obligations for U.S. reportable accounts.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION 
New Delhi, the 7th October, 2022

G.S.R. 769(E).—In exercise of the powers conferred by section 285BA read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:––

1. Short title and commencement.—

(1) These rules may be called the Income-tax (Thirty-Third Amendment) Rules, 2022.
(2) They shall come into force from the date of their publication in the Official Gazette. 

New Income Tax Rules 2022: CBDT Notification Explained

2. In the Income-tax Rules, 1962, in rule 114F, in sub-rule (5),––

(A) for clauses (i), (j) and (k), the following shall be substituted, namely: —

"(i) a financial institution with a local client base, in case of any U.S. reportable account;
(j) a local bank, in case of any U.S. reportable account;
(k) a financial institution with only low value accounts, in case of any U.S. reportable account;";

(B) in the Explanation, in clause (D) for the words and brackets "the Government of any country or territory outside India on income that it derives from sources within such country or territory outside India  (or would be entitled to such benefits if it derived any such income)" the words and brackets "the United  States of America on income that it derives from sources within the United States of America (or would be entitled to such benefits if it derived any such income)" shall be substituted.

[Notification No.112/2022/F. No. 370142/43/2022-TPL (Part 2)]
UMME FARDINA ADIL, Under Secy.

Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide number S.O. 969 (E), dated the 26th March, 1962 and last amended by the  Income-tax (32nd Amendment) Rules vide notification number G.S.R. 733 (E) dated 28.09.2022.

FAQ :

This is a new set of rules notified by the Central Board of Direct Taxes (CBDT) that further amends the Income-tax Rules, 1962.

The rules come into force from the date of their publication in the Official Gazette.

Rule 114F in the Income-tax Rules, 1962, has been amended, specifically sub-rule (5).

The amendments substitute clauses (i), (j), and (k) regarding financial institutions with local client bases, local banks, and financial institutions with only low-value accounts in relation to U.S. reportable accounts. An Explanation in clause (D) has also been updated concerning income derived from sources within the United States of America.

The notification was issued by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance, Department of Revenue.




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