Amendment of the Income-tax Rules, 1962 to provide for Safe Harbour Rules

Ministry of Finance
(Department Of Revenue)
(Central Board Of Direct Taxes)

Notification No. 25/2020-Income Tax

New Delhi, the 20th May, 2020

INCOME-TAX

G.S.R. 304(E).-In exercise of the powers conferred by section 295 read with sub-section (2) of section 92CB 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 (9th Amendment) Rules, 2020.

(2) They shall come into force and shall be deemed to have come into force from the 1st day of April, 2020.

2. In the Income-tax Rules, 1962,-

(i) in rule 10TD, after sub-rule (3A), the following rule shall be inserted, namely:-

“(3B) The provisions of sub-rules (1) and (2A) shall apply for the assessment year 2020-21”;

(ii) in rule 10TE, in sub-rule (2), after the third proviso, the following proviso shall be inserted, namely:

“Provided also that nothing contained in this sub-rule shall apply to the option for safe harbour validly exercised under sub-rule (3B) of rule 10TD.”; and

(iii) in Appendix II, in Form No 3CEFA, in the heading, in the brackets, for the word and figure “rule 10” the word, figure and letters “rule 10TE” shall be substituted.

[Notification No. 25/2020/ F. No. 370142/14/2020-TPL]

NEHA SAHAY, Under Secy.(Tax Policy and Legislation)

Explanatory Memorandum:It is hereby certified that no person is being adversely affected by giving retrospective effect to these rules.

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 were last amended vide notification number GSR No. 282(E), dated the 06th ay, 2020.