Amendment of rule 31A, Form 26Q & 27Q

Last updated: 05 July 2020

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This notification introduces amendments to the Income-tax Rules, 1962, specifically concerning rule 31A and forms 26Q and 27Q. The changes focus on reporting particulars of amounts paid or credited where tax was not deducted or was deducted at a lower rate, aligning with various sections of the Income-tax Act, 1961. These amendments are effective from their publication date, with some specific clauses coming into effect from July 1, 2020.

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 3rd July, 2020

INCOME-TAX

G.S.R. 429(E).— In exercise of the powers conferred by sections 194A, 194J, 194K, 194LBA, 194N, 194-O, 197A and 200 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 (16th Amendment) Rules, 2020.

(2) Save as otherwise provided in these rules, they shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 31A, in sub-rule (4), --

(a) in clause (viii), after the words “not deducted”, the words “or deducted at lower rate” shall be inserted;

(b) for clause (ix) the following shall be substituted from the 1st day of July, 2020, namely:-

“(ix) furnish particulars of amount paid or credited on which tax was not deducted or deducted at lower rate in view of the notification issued under second proviso to section 194N or in view of the exemption provided in third proviso to section 194N or in view of the notification issued under fourth proviso to section 194N”;

“(x) furnish particulars of amount paid or credited on which tax was not deducted or deducted at lower rate in view of the notification issued under sub-section (5) of section 194A.

(xi) furnish particulars of amount paid or credited on which tax was not deducted under sub-section (2A) of section 194LBA.

(xii) furnish particulars of amount paid or credited on which tax was not deducted in view of clause (a) or clause (b) of sub-section (1D) of section 197A

(xiii) furnish particulars of amount paid or credited on which tax was not deducted in view of the exemption provided to persons referred to in Board Circular No. 3 of 2002 dated 28th June 2002 or Board Circular No. 11 of 2002 dated 22nd November 2002 or Board Circular No. 18 of 2017 dated 29th May 2017.”

3. In the principal rules, in Appendix II,

(I) in form 26Q –

(a) for the brackets, words, figures and letters

“[See sections 192A, 193, 194, 194A, 194B, 194BB, 194C, 194D, 194DA, 194EE, 194F, 194G, 194H, 194-I, 194J, 194LA, 194LBA, 194LBB, 194LBC, 194N and rule 31A]” the following brackets, words, figures and letters

“[See sections 192A, 193, 194, 194A, 194B, 194BB, 194C, 194D, 194DA, 194EE, 194F, 194G, 194H, 194-I, 194J, 194K, 194LA, 194LBA, 194LBB, 194LBC, 194N, 194-O, 197A and rule 31A]” shall be substituted;

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FAQ :

The notification amends Rule 31A and Forms 26Q & 27Q of the Income-tax Rules, 1962, to update the reporting requirements for tax deducted at source (TDS).

The amendments generally come into force from the date of their publication in the Official Gazette, with specific provisions effective from July 1, 2020.

Rule 31A has been updated to include new clauses requiring the furnishing of particulars for amounts paid or credited where tax was not deducted or was deducted at a lower rate, in line with various sections of the Income-tax Act.

Yes, Form 26Q has been updated to include references to additional sections of the Income-tax Act, such as sections 194K, 194-O, and 197A, in its prescribed list of sections.

The amendments affect the reporting of payments or credits on which tax was not deducted or was deducted at a lower rate, as per specific provisions and notifications under various sections of the Income-tax Act.