Income-tax (Eighth Amendment) Rules, 2021

Last updated: 06 April 2021

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The Income-tax (Eighth Amendment) Rules, 2021 have been introduced to amend the existing Income-tax Rules, 1962. These amendments allow for the revision of audit reports under specific circumstances, particularly when payments made after the initial report necessitate recalculations for disallowances. Additionally, updates have been made to Form 3CD, including a new clause regarding the option for taxation under specific sections and a revised clause concerning the transfer of land or buildings for a consideration less than the value assessed by state authorities.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 1st April, 2021
(INCOME-TAX)

G.S.R. 246(E).––In exercise of the powers conferred by section 44AB read with section 295 of the Incometax Act (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 (eighth Amendment) Rules, 2021.

(2) They shall come into force on the date of their publication in the Official Gazette.

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

(a) in rule 6G, after sub-rule (2), the following sub-rule shall be inserted, namely:- ―

(3) The report of audit furnished under this rule may be revised by the person by getting revised report of audit from an accountant , duly signed and verified by such accountant, and furnish it before the end of the relevant assessment year for which the report pertains, if there is payment by such person after furnishing of report under subrule (1) and (2) which necessitates recalculation of disallowance under section 40 or section 43B.‖ ;

(b) in Appendix II, in Form 3CD,-

(i) in PART –A for clause 8A, the following clause shall be substituted, namely: - ―

8A Whether the assessee has opted for taxation under section 115BA/115BAA/115BAB/ 115BAC/115BAD?.‖ ;

(ii) in PART-B, for clause 17,the following clause shall be substituted, namely:- ―

17. Where any land or building or both is transferred during the previous year for a consideration less than value adopted or assessed or assessable by any authority of a State Government referred to in section 43CAor 50C,please

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FAQ :

The main purpose is to further amend the Income-tax Rules, 1962, introducing changes related to the revision of audit reports and updates to Form 3CD.

An audit report can be revised if, after its initial submission, a payment is made that necessitates recalculating disallowances under section 40 or section 43B. The revised report must be furnished before the end of the relevant assessment year.

Form 3CD has been updated with a new clause 8A to ask whether the assessee has opted for taxation under sections 115BA, 115BAA, 115BAB, 115BAC, or 115BAD. Clause 17 has also been revised to address situations where land or buildings are transferred for a consideration less than the value assessed by state authorities.

These rules come into effect on the date of their publication in the Official Gazette.