Income tax (23rd Amendment), Rules, 2021

Last updated: 11 August 2021

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The Central Board of Direct Taxes has issued the Income Tax (23rd Amendment) Rules, 2021. These rules introduce a new provision, Rule 10RB, which provides for relief in tax payable under sub-section (1) of section 115JB. This relief is applicable for income arising from advance pricing agreements or secondary adjustments under section 92CE. The rules outline a specific formula for calculating this tax relief and specify the procedure for claiming it electronically via Form No. 3CEEA.

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) New Delhi Notification No. 92/2021-Income Tax Dated: 10th August, 2021 G.S.R. 551(E).-In exercise of the powers conferred by sub-section (2D) of section 115JB read with section 295 of the Income-tax Act, 1961 (4

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FAQ :

The purpose of these rules is to provide relief in tax payable under sub-section (1) of section 115JB of the Income-tax Act, 1961, due to the operation of sub-section (2D) of the same section.

The relief is for 'past income' which is income included in the book profit of the previous year on account of an advance pricing agreement entered into under section 92CC or on account of secondary adjustment required under section 92CE.

The tax relief is calculated using a specific formula: (A-B) – (D-C), where A, B, C, and D represent tax payable on book profits under different scenarios related to past income. If the result is negative, it's deemed to be zero.

An assessee company must make a claim for relief electronically by uploading a signed printout of Form No. 3CEEA, following the procedures specified by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).

Form No. 3CEEA must be verified by the person authorised to verify the return of income of the assessee company under section 140.

Yes, the tax credit allowed to the assessee under section 115JAA shall be reduced by an amount equal to the relief allowed under sub-rule (1) of Rule 10RB.