Amendment of rule 37AA, Form 27EQ

Last updated: 28 July 2020

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The Central Board of Direct Taxes has amended rule 31AA of the Income-tax Rules, 1962, introducing new requirements for furnishing particulars related to tax collection. These changes, effective from 1st October 2020, specifically impact authorised dealers and sellers of overseas tour programs. The amendment requires reporting amounts received or debited where tax was not collected under various provisos of section 206C(1G) of the Income-tax Act.

MINISTRY OF FINANCE

(Department of Revenue)

(CENTRAL BOARD OF DIRECT TAXES)

NOTIFICATION

New Delhi, the 24th July, 2020

INCOME-TAX

G.S.R. 464(E).—In exercise of the powers conferred by section 197 and 206C 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 ( 17th Amendment) Rules, 2020.

(2) Save as otherwise provided in these rules, they shall come into force with effect from the 1st day of October, 2020.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 31AA, in sub-rule (4), after clause (v), the following clauses shall be inserted namely:- “(vi) furnish particulars of amount received or debited on which tax was not collected,-

(a) by the authorised dealer from the buyer under the first proviso to sub-section (1G) of section 206C;

(b) by the authorised dealer under fourth proviso to sub-section (1G) of section 206C; and

(c) by the authorised dealer or seller of an overseas tour program from the buyer under clause (i) or clause (ii) of the fifth proviso of sub-section (1G) of section 206C or in view of any notification issued under clause (ii) of the fifth proviso of sub-section (1G) of section 206C.

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FAQ :

The notification amends rule 31AA of the Income-tax Rules, 1962, to introduce new requirements for furnishing particulars on tax collection, particularly concerning amounts where tax was not collected.

These rules come into effect from the 1st day of October, 2020.

Authorised dealers and sellers of overseas tour programs are primarily affected by this amendment, as they need to furnish specific particulars.

Particulars of amounts received or debited on which tax was not collected under various provisos of section 206C(1G) of the Income-tax Act must be furnished.