Tax Laws - Direct Tax

EXECUTIVE PROGRAMME
SUPPLEMENT
FOR
TAX LAWS
(Part I - Direct Tax)

(Relevant for Students appearing in December, 2022 Examination)
MODULE 1- PAPER 4
Students appearing in December, 2022 Examination shall note the following:
1. For Direct taxes, Finance Act, 2021 is applicable.

2. Applicable Assessment year is 2022-23 (Previous Year 2021-22).
Students are also required to update themselves on all the relevant Rules, Notifications,
Circulars, Clarifications, etc. issued by the CBDT& Central Government, on or before 31st May,
2022.
Note: The Finance Act, 2021 i.e. Assessment year is 2022-23 (Previous Year 2 0 21-22) is
applicable for Direct Tax Part – I for December, 2022 examinations. Students are advised to
refer the study material for Direct Tax Part – I (based on Finance Act, 2021) for December,
2022 exam. The same is available at ICSI website weblink:
https://www.icsi.edu/media/webmodules/TL_Final_pdf_25102021.pdf
1
Sr. Lesson No. Amendments to Regulations /Rules /Act /Circular /Notification Weblink
No. (For Details)
1. Lesson 9 The Income-tax (16th Amendment) Rules, 2020 [Notification No. https://www.inc
43/2020 Dated July 3, 2020] ometaxindia.gov
Procedural .in/communicati
Compliance The Central Board of Direct Taxes has issued the Income-tax (16th ons/notification/
Amendment) Rules, 2020 as per which the tax deductors while filing notification_43_
quarterly statements under Rule 31A (TDS Return) shall also required to 2020.pdf
furnish following documents:
 disclosure pertaining to tax deducted at lower rate

 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 or exemption provided in third
proviso or notification issued under fourth proviso to section
194N OR 194A(5).
 particulars of amount paid or credited on which tax was not
deducted under section 194LBA(2A) or 197A(1D)(a) or (b) or in
view of the exemption provided to persons referred to in Board
Circular No. 3 & 11 of 2002 or Board Circular No. 18 of 2017.
Accordingly, the above documents are required to be furnished while

filing of quarterly statement of TDS return under rule 31A of the
Income tax Rules, 1962.
2. Lesson 3 Notification No. 49/2020 [Dated July 17, 2020] https://www.inc
ometaxindia.gov
Incomes The Central Government hereby notifies to include Real Estate .in/communicati
which do not Regulatory Authority ‘RERA’ for the purposes of clause (46) of section ons/notification/
form part of 10 of the Income-tax Act, 1961 for exemption of its specified incomes notification_49_
Total Income subject to certain conditions. 2020.pdf
Accordingly, the Real Estate Regulatory Authority is notified for the
purpose of claiming exemption under section 10(46) of the Income tax
Act, 1961 subject to certain conditions.
3. Lesson 9 Clarification in relation to notification issued under clause (v) of https://www.inc

proviso to section 194N of the Income-tax Act, 1961 (the Act) prior to ometaxindia.gov
Procedural its amendment by Finance Act, 2020 [Circular No. 14 Dated July 20, .in/communicati
Compliance 2020] ons/circular/circ
ular_14_2020.p
Section 194N of the Act as inserted by Finance (No.2) Act 2019 provided df
for deduction of tax at source on payment made by a banking company, a
cooperative society engaged in the business of banking or post office, in
cash to a recipient exceeding Rs. 1 crore in aggregate during a financial
year from one or more account maintained by such recipient. Clause (v)
of proviso to the said section had empowered the Central Government to
exempt by way of notification in Official Gazette, persons or class of
persons so that payments made to such persons or class of persons shall
not be subjected to TDS under this section. Accordingly, Central
Government has issued three notifications.
2
CBDT vide Circular No. 14/2020 dated 20.07.2020 clarified that the
Notifications so far issued to exempt class of persons so that the
payments made to such persons shall not be subjected to TDS under
clause (v) of the proviso to section 194N as was introduced by the
Finance (No. 2) Act, 2019 shall be read as Notifications issued under
the fourth proviso to section 194N as amended by the Finance Act,
2020.
4. Lesson 3 Notification of Sovereign Wealth Fund ‘SWF’ under section https://www.inc
10(23FE) of the Income-tax Act, 1961 [Circular No. 15/2020 Dated ometaxindia.gov
Incomes July 22, 2020] .in/communicati
which do not ons/circular/circ
form part of The Finance Act, 2020 inserted clause (23FE) in section 10 the Income- ular_15_2020.p
Total Income tax Act, 1961 (the Act) to provide for exemption to income of a specified df
person in the nature of dividend, interest or long-term capital gains
arising from investment made by it in India if the investment is made in
specified infrastructure business (including business notified vide
Notification No 44/2020 dated 06.07.2020, i.e., Infrastructure sub-sectors
mentioned in Harmonised Master List updated as on 13.08.2018) during
the period from 01.04.2020 to 31.03.2024, and held for at least three
years.
Specified person to mean wholly owned subsidiaries of Abu Dhabi
Investment Authority (ADIA), notified Sovereign Wealth Fund (SWF)
and notified Pension Funds (PF), which fulfiled conditions specified in
the clause or to be prescribed for the PF.
In order to facilitate the process of notification of the SWF, the CBDT

specifies that the SWF shall file application in the Form I with the
Member (Legislation), (CBDT), during the financial year 2020-21 and
thereafter to the Member, CBDT having supervision and control over
the work of Foreign Tax and Tax Research Division.
Further, the SWF shall be required to file return of income along with
audit report and also be required to file a quarterly statement within
one month from the end of the quarter electronically in Form II in
respect of each investment made during the quarter.
5. Lesson 3 Notification No. 50/2020 [Dated July 21, 2020] https://www.inc
ometaxindia.gov
Incomes The Central Government hereby notifies to include ‘Tamil Nadu e- .in/communicati
which do not Governance Agency’ for the purposes of clause (46) of section 10 of the ons/notification/
form part of Income-tax Act, 1961 in respect of the specified income arising to that notification_50_
Total Income Agency subject to certain conditions. 2020.pdf
Accordingly, the ‘Tamil Nadu e-Governance Agency’ is notified for the
6. Lesson 9 Income-tax (17th Amendment) Rules, 2020 [Dated July 24, 2020] https://abcaus.in
CBDT notified Income-tax (17th Amendment) Rules, 2020 which shall /wp-
Procedural come into force with effect from the 1st day of October, 2020 and therebycontent/uploads/
Compliance amending Tax Collected at Source (TCS) Rules. 2020/07/cbdt-
notification-
Rule 31AA [Statement of collection of tax u/s 206C(3)]: To furnish the 2.pdf
particulars of amount received or debited on which TCS was not collected
3
from the buyer is to be reported.
Rule 37BC [Relaxation from deduction of tax at higher rate under

section 206AA]: In the case of a non-resident, not being a company, or a
foreign company (hereafter referred to as 'deductee') and not having
permanent account number the provisions of section 206AA shall not
apply in respect of payments in the nature of interest, royalty, fees for
technical services and payments on transfer of any capital asset, if the
deductee furnishes the details and the documents specified in sub-rule (2)
to the deductor.
In sub-rule (1), after the words “fees for technical services”, the words
“dividend” shall be inserted.
Rule 37-I [Credit for tax collected at source for the purposes of
section 206C(4)], after sub-rule (2), the sub-rule 2A shall be inserted as
follow:
“(2A) Notwithstanding anything contained in sub-rule (2), for the
purposes of section 206C (1F) / (1G) / (1H), credit for tax collected at
source shall be given to the person from whose account tax is collected
and paid to the Central Government account for the assessment year
relevant to the previous year in which such tax collection is made”
Appendix II, in Form 27EQ, for the “Annexure”, the following “Party
wise break up of TCS” Annexure shall be substituted.
Accordingly, the above amendment has been made in the Income-tax

Rules, 1962 relating to Tax Collected at Source (TCS).
7. Lesson 9 Income-tax (18th Amendment) Rules, 2020 [Notification No. 55 https://www.inc
Dated July 28, 2020] ometaxindia.gov
Compliance The Central Board of Direct Taxes has published the Income-tax (18th ons/notification/
Amendment) Rules, 2020 that provides for furnishing details of income notification_55_
paid or credited by an investment fund to its unit holder as follow: 2020.pdf
 The statement of income paid or credited by an investment fund
to its unit holder shall be furnished by the person making
payment of the income on behalf of an investment fund to the
unit holder by June 30 of the financial year following the
previous year during which the income is paid or credited in
Form No. 64C.
 It shall also be furnished to the Principal Commissioner or the
Commissioner of Income-tax, as the case may be, within whose
jurisdiction the Principal office of the investment fund is situated
by June 15 in Form No. 64D.
 The Principal Director General of Income-tax (Systems) shall
specify the procedure for filing of Form No. 64D.
Accordingly, the above details of income paid or credited by an
investment fund to its unit holder are required to be furnished.
4
8. Lesson 10 Faceless Assessment Scheme [Notification No. 60, 61 Dated August http://www.egaz
13, 2020] ette.nic.in/Write
Assessment, ReadData/2020/
Appeals & The Central Board of Direct Taxes vide notification no. 60/61 notified the 221089.pdf
Revision Faceless Assessment Scheme with an aims to eliminate the interface
between the taxpayer and the income tax department. Under the system,
the selection of a taxpayer is possible only through systems using
analytics and AI. The system abolishes territorial jurisdiction.
In the said scheme, the word “E-assessment” has been replaced with
the word “Faceless Assessment”.The detailed scheme and procedure
are available at weblink:
http://www.egazette.nic.in/WriteReadData/2020/221089.pdf
9. Lesson 10 Notification No. 64/2020 dated August 13, 2020 https://www.inc

ometaxindia.gov
Assessment, The CBDT directs that the Income-tax Authorities of the National e- .in/communicati
Appeals & Assessment Centre having its headquarters at the places mentioned in ons/notification/
Revision column (3) of the said Schedule shall exercise the powers and functions notification_64_
of Assessing Officer concurrently, to facilitate the conduct of Faceless 2020.pdf
Assessment proceedings in respect of territorial areas, persons or classes
of persons and cases or classes of cases mentioned in the Schedule-1 of
the notification No. 50 of 2014 dated October 22, 2014.
Accordingly, the Income-tax Authorities of the National e-Assessment

Centre shall exercise the powers and functions of Assessing Officer
concurrently to facilitate the conduct of Faceless Assessment
proceedings.
10. Lesson 10 Notification No. 65/2020 dated August 13, 2020 https://www.inc
ometaxindia.gov
Assessment, The CBDT directs that the Income-tax Authorities of Regional e- .in/communicati
Appeals & Assessment Centers having their headquarters at the places mentioned in ons/notification/
Revision column (3) of the said Schedule, shall exercise the powers and functions notification_65_
of Assessing Officers concurrently, to facilitate the conduct of Faceless 2020.pdf
Assessment proceedings in respect of territorial areas, persons or classes
of persons and cases or classes of cases mentioned in the Schedule-1 of
the notification No. 50 of 2014 dated October 22, 2014.
Accordingly, the Income-tax Authorities of the Regional e-Assessment
Centre shall exercise the powers and functions of Assessing Officer
concurrently to facilitate the conduct of Faceless Assessment
proceedings.
11. Lesson 3 Income Tax 20th Amendment Rules 2020 [Notification No. 67/2020 https://www.inc
Dated August 17, 2020] ometaxindia.gov
Income which .in/communicati
do not form The Central Board of Direct Taxes hereby makes the Income-tax (20th ons/notification/
part of Total Amendment) Rules, 2020 as per which: notification_67_
Income 2020.pdf
 after rule 2DA, the rules “2DB” shall be inserted which specify
Other conditions to be satisfied by the pension fund.
5
 After rule 2DA, the rules “2DC” shall be inserted which specifies
the Guidelines for notification under clause (23FE) of section 10
of the Income Tax Act, 1961.
12. Lesson 4 Part Imposition of charge on the prescribed electronic modes under https://www.inc
III section 269SU of the Income-tax Act, 1961 [Circular No. 16/2020 ometaxindia.gov
Dated August 30, 2020] .in/communicati
PGBP ons/circular/circ
Section 269SU of the Income tax Act, 1961 provides every person having ular-16-
a business turnover of more than Rs. 50 Crores during the immediately 2020.pdf
preceding previous year shall mandatorily provide facilities for accepting
payment through prescribed electronic modes.
However representations were received that banks are collecting charges

on transactions carried out through UPI.
Accordingly, the Central Board of Direct Taxes 'CBDT' vide its

Circular No. 16/2020 Dated August 30, 2020 advised banks to refund
all the charges collected on and after 1st January 2020 on transactions
carried out using the electronic modes as prescribed under section
269SU and not to impose any such charges on any future transactions
carried through the prescribed digital modes.
13. Lesson 3 Notification No. 73/2020 [Dated September 10, 2020] https://www.inc
ometaxindia.gov
Income which The Central Government hereby notifies for the purposes of the clause .in/communicati
do not form (46) of section 10 of the Income-tax Act, 1961, ‘District Mineral ons/notification/
part of Total Foundation Trust’ in respect of the certain specified income arising to notification_73_
Income that Authority subject to certain conditions.
2020.pdf
Accordingly, the District Mineral Foundation Trust is notified for the
14. Lesson 3 Notification No. 74/2020 [Dated September 11, 2020] https://www.inc
ometaxindia.gov
Income which The Central Government hereby notifies to include the Infrastructure .in/communicati
do not form Debt Fund namely, the ‘L&T Infra Debt Fund (PAN: AACCL4493R)’ ons/notification/
part of Total for the purposes of the clause (47) of section 10 of the Income-tax Act, notification_74_
Income 1961 for the assessment year 2018-2019 and subsequent years subject to 2020.pdf
the certain conditions.
Accordingly, the L&T Infra Debt Fund (Infrastructure Debt Fund) is

notified for the purpose of claiming exemption under section 10(47) of
the Income tax Act, 1961 subject to certain conditions.
15. Lesson 9 Income-tax (21st Amendment) Rules, 2020 (September 22, 2020) https://www.inc
ometaxindia.gov
Procedure The Central Board of Direct Taxes vide Notification No. 75/2020 makes .in/communicati
Compliance the Income-tax (21st Amendment) Rules, 2020 to further amend the ons/notification/
Income-tax Rules, 1962 as follows: notification_75_
Rule 29B which specifies the submission of application for certificate 2020.pdf
authorising receipt of interest and other sums without the deduction of
tax, has been substituted, stating that the words, “banking company”
6
wherever occurring shall be replaced with “banking company or an
insurer.”
Rule 29B(5) which specifies the validity of the certificate, an

explanation has been inserted, namely:“for the purposes of this rule,
“insurer” shall have the same meaning as assigned to it in sub-clause (d)
of clause (9) of section 2 of the Insurance Act, 1939”
Accordingly, the insurer, which is neither an Indian company nor a

company which has made the prescribed arrangements for the
declaration and payment of dividends within India, and which carries
on operations in India through a branch, any income by way of
interest, not being interest on securities (other than interest payable on
securities referred to in proviso to section 193), or any other sum, not
being dividends; can make an application for certificate authorising
receipt of interest and other sums without deduction of tax subject to
certain conditions.
16. Lesson 10 Faceless Appeal Scheme, 2020 (September 25, 2020) https://www.in
cometaxindia.g
Assessment, The Central Government vide Notification No. 76/2020 makes the
ov.in/communi
Appeals & Faceless Appeal Scheme, 2020. The detailed scope, procedure, Penalty
& Rectification proceedings, as well as Appellate Proceedings under the cations/notifica
Revision
scheme are available at following weblink: tion/notificatio
n_76_2020.pdf
17. Lesson 10 Notification No. 77/2020 (September 25, 2020) https://www.inc

For the purposes of giving effect to the Faceless Appeal Scheme, 2020 ometaxindia.gov
Assessment, made under sub-section (6B) of section 250 of the Income Tax Act, the .in/communicati
Appeals & Central Government vide Notification No. 77/2020 directs that the ons/notification/
Revision provisions of notification_77_
 clause (16A) of section 2 [definition of Commissioner 2020.pdf
(Appeals)],
 section 120 [Jurisdiction of income-tax authorities],
 section 129 [Change of incumbent of an office],
 section 131 [Power regarding discovery, production of
evidence, etc],
 section 133 Power to call for information],
 section 134 [Power to inspect registers of companies],
 section 136 [Proceedings before income-tax authorities to be
judicial proceedings] and
 Chapter XX [Appeals and Revision]
of the Income Tax Act shall apply to the procedure in appeal in

accordance with the said scheme subject to the certain exceptions,
modifications and adaptations.
7
18. Lesson 9 https://www.inc
Guidelines under section 194-O (4) and section 206C (1-1) of the
ometaxindia.gov
Income-tax Act, 1961 (Circular No. 17 Dated September 29, 2020)
Procedure .in/communicati
Compliance Finance Act, 2020 inserted following section in the Income Tax Act, ons/circular/circ
1961 effective from October 1, 2020. ular_17_2020.p
Section 194-O: An e-commerce operator shall deduct income-tax @ df
1%of the gross amount of sale of goods or provision of service or both,
facilitated through its digital or electronic facility or platform.
Section 206(1H): A seller receiving an amount as consideration for
sale of any goods of the value or aggregate of such value exceeding 50
lakh rupees in any previous year to collect tax from the buyer a sum
equal to 0.1 % of the sale consideration exceeding 50 lakh rupees as
Income-tax.
In order to remove difficulties, the Central Board of Direct Tax vide
Circular No. 17 issued guidelines with respect to 194-O (4) and
section 206C (1-1) of the Income-tax Act, 1961.
19. Lesson 9 https://pib.nic.in
Clarification on doubts arising on account of new TCS provisions
/PressReleasePa
(September 30, 2020)
Procedure ge.aspx?PRID=
Compliance Finance Act, 2020 amended provisions relating to TCS with effect 1660392
from 1st October, 2020 to provide that seller of goods shall collect tax
@ 0.1 per cent (0.075% up to 31.03.2021) if the receipt of sale
consideration from a buyer exceeds Rs. 50 lakh in the financial year.
Further, to reduce the compliance burden, it has been provided that a
seller would be required to collect tax only if his turnover exceeds Rs.
10 crore in the last financial year. Moreover, the export of goods has
also been exempted from the applicability of these provisions.
The Central Board of Direct Taxes issues press note clarifying doubts
arising on the applicability of TCS provisions introduced vide Finance
Act, 2020. Circular No. 17 of 2020 dated 29.09.2020 containing
guidelines for the same issued earlier.
TCS shall be applicable only on the amount received on or after 1st
October, 2020. For example, a seller who has received Rs. 1 crore
before 1st October, 2020 from a particular buyer and receives Rs. 5
lakh after 1st October, 2020 would be required to collect tax on Rs. 5
lakh only and not on Rs. 55 lakh [i.e Rs.1.05 crore - Rs. 50 lakh
(threshold)] by including the amount received before 1st October,
2020.
It may be noted that TCS applies only in cases where receipt of sale
consideration exceeds Rs. 50 lakh in a financial year. As the
threshold is based on the yearly receipt, it may be noted that only for
the purpose of calculation of this threshold of Rs. 50 lakh, the receipt
from the beginning of the financial year i.e. from 1st April, 2020
shall be taken into account. For example, in the above illustration,
the seller has to collect tax on receipt of Rs. 5 lakh after 1st October,
2020 because the receipts from 1st April, 2020 i.e. Rs. 1.05 crore
exceeded the specified threshold of Rs. 50 lakh.
8
20. Lesson 9 https://www.inc
Income tax (22nd Amendment) Rules, 2020 (October 1, 2020)
ometaxindia.gov
Procedure CBDT vide Notification No. 82/2020 dated October 1, 2020 issued .in/communicati
Compliance Income tax (22nd Amendment) Rules, 2020 to notify changes in Form ons/notification/
3CD, Form No 3CEB and ITR6. Further, amended Rule 5 of Income notification_82_
Tax Rules, 1962 and inserted new Rules and Forms namely:
2020.pdf
 Rule 21AG- Exercise of option under sub-section (5) of section
115BAC
 Rule 21AH– Exercise of option under sub-section (5) of section
115BAD
 FORM No. 10-IE– Application for exercise/ withdrawal of option
under clause (i) of sub-section (5) of Section 115BAC of the
Income-tax Act, 1961
 FORM No. 10-IF– Application for exercise of option under sub-
section (5) of Section 115BAD of the Income-tax Act, 1961.
21. Lesson 8 Equalisation levy (Amendment) Rules, 2020 (Notification No. 87 https://www.inc
Dated October 28, 2020) ometaxindia.gov
Classification CBDT has made the Equalisation levy (Amendment) Rules, 2020 to .in/communicati
and Tax amend the Equalisation levy Rules, 2016 as follows: ons/notification/
Incidence on notification_87_
Companies 1. Definition of “electronic verification code” is added to 2020.pdf
definition Rules 2 by inserting a new clause (aa): “electronic
verification code” means a code generated for the purpose of
electronic verification of the person furnishing the statement of
specified services as per the data structure and standards laid
down by the Principal Director- General of Income-tax
(Systems) or Director General of Income-tax (Systems), as the
case may be.
2. Rounding off rules amended: The heading of Rule 3 is
amended to exclude the words “for specified services”.
3. Amendment to payment of equalisation levy: Rule 4 related
to payment of equalisation levy is amended to include an e-
commerce operator in addition to the assessee.
4. Filing of annual statements: Rule 5 is amended to include a
statement of e-commerce supply or services in addition to the
statement of specified services. Further, provision to furnish a
revised statement in Form No. 1 is incorporated.
5. Furnishing of a statement in response to notice: Rule 6 is
amended to include the furnishing of a statement of specified
services or e-commerce supply or services in response to a
notice issued by the Assessing Officer. Further, this rule is made
applicable to an e-commerce operator apart from the assessee.
6. Notice of demand: The notice of demand can now be served
upon an assessee as well as on an e-commerce operator under
Rule 7 by the Assessing Officer.
7. Amendment related to Appeals: An e-commerce operator is
also allowed to file an appeal before the CIT(A) as per Rule 8.
8. Amendment related to ITAT Appeals: An e-commerce
operator is also allowed to file an appeal before the ITAT as per
Rule 9.
9. Substitution of Forms: For the execution of amended
9
provisions of the Rules, Form 1, Form 3 and Form 4 under
the Equalisation Levy Rules, 2016 has been substituted with
effect from 28.10.2020.
22. Lesson 3 Notification No. 89 [Dated November 02, 2020] https://www.inc
ometaxindia.gov
Income which The Central Government hereby specifies the sovereign wealth fund, .in/communicati
do not form namely, the MIC Redwood 1 RSC Limited, Abu Dhabi, United Arab ons/notification/
part of Total Emirates, as the specified person for the purposes of Section notification_no_
Income 10(23FE)(b)(vi) of the Income-tax Act, 1961 in respect of the 89_2020.pdf
investment made by it in India on or after the date of publication of this
notification in the Official Gazette but on or before the 31st day of
March, 2024 subject to the fulfilment of the certain conditions.
Accordingly, MIC Redwood 1 RSC Limited, Abu Dhabi, United Arab

Emirates has been specified as sovereign wealth fund for the purposes
of the section 10(23FE)(b)(vi) of the Income-tax Act, 1961.
23. Lesson 4 The Central Board of Direct Taxes extended the Income Tax https://www.inc
Part I exemption available under the LTC cash voucher scheme to ometaxindia.gov
employees of state governments, state-owned enterprises and .in/Lists/Press%
Income under private sector (October 29, 2020) 20Releases/Atta
the head chments/870/Pre
Salary In order to provide the benefits to other employees (i.e. non-central ss-Release-IT-
government employees), the Central Board of Direct Taxes has provided
Exemption-for-
similar income-tax exemption for the payment of cash equivalent of
payment-of-
LTC fare [subject to maximum of Rs 36,000 per person as deemed
Leave Travel Concession (LTC) fare per person Round Trip] to the non- deemed-LTC-
Central Government employees also subject to certain condition. Non- dated-29-10-
central government employees include employees of state governments, 2020.pdf
public sector enterprises, banks and private sector.
The conditions listed out by the CBDT for availing the tax exemption
under the LTC cash voucher scheme require the employee to spend a
sum equal to three times of the value of the deemed LTC fare on
purchase of goods / services which carry a GST rate of 12% or more
from GST registered vendors / service providers through digital mode
between October 12, 2020 to March 31, 2021 and obtains a voucher
indicating the GST number and the amount of GST paid.
Accordingly, an employee who spends less than three times of the

deemed LTC fare on specified expenditure during the specified period
shall not be entitled to receive full amount of deemed LTC fare and
the related income-tax exemption and the amount of both shall be
reduced proportionately. The employees have to exercise an option for
the deemed LTC fare in lieu of the applicable LTC in the Block year
2018-2021.
24. Lesson 2 Amount of remuneration prescribed under section 9A(3)(m) of the https://www.inc
Income-tax Act, 1961 (Circular No. 1 Dated January 15, 2021) ometaxindia.gov
Basic .in/communicati
Finance (No 2) Act, 2019 amended clause (m) of sub-section (3) of
Concept of ons/circular/circ
section 9A of the Income-tax Act, 1961 w.e.f. 01.04.2019 to provide for
Income Tax ular_1_2021.pdf
payment of remuneration by an eligible investment fund to an eligible
fund manager in respect of fund management activity undertaken by him
10
on its behalf to be not less than the amount calculated in such manner as
may be prescribed.
Accordingly, rule 10V of the Income-tax Rules, 1962 has been amended,
w.e.f. 01.04.2019, vide Notification No 29/2020 dated 27.05.2020 by way
of insertion of sub-rules (12) and (13) therein. Sub-rule (12) provides for
the amount of remuneration to be paid by the fund to a fund manager. 2nd
proviso of the said sub-rule provides that the fund may seek Board's
approval in case where the amount of remuneration is lower than the
amount so prescribed.
In this regard, representations have been received expressing inability to

comply with the provisions of sub-rule 12 of rule 10V of the Rules
regarding the amount of remuneration to be paid by the fund to a fund
manager for the financial year 2019-20 as the said Notification No
29/2020 was notified after the financial year got over and the financial
year 2020-21 had already commenced.
In order to avoid genuine hardship in such cases, the Board has

decided to provide that for the financial years 2019-20 and 2020- 21 in
cases where the remuneration paid to the fund manager is lower than
the amount of remuneration prescribed under sub-rule (12) of rule l0V
of the Rules, but is at arm's length, it shall be sufficient compliance to
clause (m) of sub-section (3) of section 9A of the Act. It is stated that
the remuneration to be paid to the fund manager, for the financial year
2021- 22, shall be in accordance with sub-rule (12) of rule 10V of the
Rules and the application for lower remuneration in terms of 2nd
proviso for this year, if any, may be filed not later than 1st February,
2021.
25. Lesson 10 Faceless Penalty Scheme, 2021 [Notification No. 02 /2021 Dated https://www.inc
January 12, 2021] ometaxindia.go
Assessment, The Central Board of Direct Taxes (CBDT) has introduced a "Faceless v.in/communic
Appeals and Penalty Scheme, 2021" to handle recommendations for penalty issued ations/notificati
Revision under its faceless assessment programme. The scheme has laid down the on/notification_
procedure to issue penalty through electronic mode, including the no_2_2021.pdf
procedures for admission of additional grounds and the admission of
additional evidence during the appellate proceedings.
The penalty under this scheme shall be imposed in respect of such

territorial area, or persons or class of persons, or income, as specified
by the board. It aims to ensure that any penalty order issued by the
authority is fool proof and has undergone multiple layers of review
before it is confirmed or dropped.
26. Lesson 10 CBDT issues Directions for giving effect to Faceless Penalty Scheme, https://www.inc
2021 [Notification No. 03 Dated January 12, 2021] ometaxindia.go
Assessment, v.in/communic
Appeals and CBDT vide Notification No. 3/2021 dated 12.01.2021 issued directions ations/notificati
Revision u/s 274(2B) for the purpose of giving effect to the Faceless Penalty on/notification_
Scheme, 2021 notified vide Notification No. 2/2021 dated 12.01.2021 no_3_2021.pdf
under the Income Tax Act, 1961 (“Act”).
11
Accordingly, The provisions of section 2, section 120, section 127,
section 129, section 131, section 133, section 133C, section 136 and
Chapter XXI of the Act shall apply to the procedure for imposing
penalty in accordance with the Faceless Penalty Scheme, 2021 subject
to the certain exceptions as specified in the Scheme.
27. Lesson 9 Procedure, Formats and Standards of issue of Permanent Account https://incomet
Number (PAN) (Notification No. 1 Dated February 8, 2021) axindia.gov.in/c
Procedural ommunications
Compliance The Director General of Income-tax (Systems) lays down the procedure, /notification/no
formats and standards for issue of permanent account number as under: tification2021.p
df
Issuing Procedure Formats and standards for issue of PAN
Authority for issue
of PAN
Assistant/ Physical Coloured, laminated and credit card sized
Deputy mode permanent account number card as per
Director approved design and specifications having
of Income one or more security features of only
Tax hologram or hologram and QR code
(Systems) enhanced QR code (having demographic as
-1(5) well as biometric information).
Electronic Electronic document in PDF format with
mode (e- enhanced QR code (having demographic as
PAN) well as biometric information)
The digital Signature of class 2 or class 3 will be used for Signing of e-

PAN as per Information Technology Act, 2000 which provides for legal
recognition of electronic records with digital signatures.
28. Lesson 10 Faceless Assessment (1st Amendment) Scheme, 2021 (Notification No. https://www.inc
6 Dated February 17, 2021) ometaxindia.gov
Assessment, .in/communicati
Appeals and The CBDT has notified the ‘Faceless Assessment (1st Amendment) ons/notification_
Revision Scheme, 2021’ which seeks to amend Faceless Assessment Scheme, 2019 6_2021.pdf
(“Scheme”), by way of which certain amendments in Para 2 of the
Scheme (i.e., definitions), Para 11 of the Scheme (i.e., No personal
appearance in the Centres or Units) and substituted Para 5 of the Scheme
(i.e., Procedure for assessment).
29. Lesson 10 New procedure of faceless assessment under Faceless Assessment https://www.inc
Scheme, 2019 (Notification No. 7 Dated February 17, 2021) ometaxindia.gov
Assessment, .in/communicati
Appeals and The CBDT vide Notification No. 7/2021, dated February 17, ons/notification_
Revision 2021 amended Notification No. 62/2019 September 12, 2019 to provide 7_2021.pdf
for new procedure of faceless assessment under Faceless Assessment
Scheme, 2019 (“Scheme”). The detailed new procedure of faceless
assessment is available at the weblink:
https://www.incometaxindia.gov.in/communications/notification_7_2021.
pdf
12
30. Lesson 3 Notification No. 8 (Dated February 22, 2021) https://incometa
xindia.gov.in/co
Income which The Central Government hereby notifies to include ‘Haryana State mmunications/n
do not form Pollution Control Board’ (PAN AAAJH0446F), a Board constituted by otification/notifi
part of Total the State Government of Haryana under the Water (Prevention and cation_8_2021.p
Income Control of Pollution) Act, 1974 for the purposes of the clause (46) of df
section 10 of the Income-tax Act, 1961 in respect of the following
specified income arising to the Board subject to certain conditions.
Accordingly, Haryana State Pollution Control Board can claim

exemption under section 10(46) with respect to specified income subject
to certain conditions.
31. Lesson 2 Residential status of certain individuals under Income-tax Act, 1961 https://www.inc
(Circular No. 2 Dated March 3, 2021) ometaxindia.gov
Basic .in/communicati
Concept of Section 6 of the Income-tax Act, 1961 (the Act) contains provisions ons/circular/resi
Income Tax relating to determination of residential status of a person. The status of an dency-circular-
individual, as to whether he is resident in India or a non-resident or not 02-of-2021.pdf
ordinarily resident, is dependent, inter-alia, on the period for which the
person is in India during a previous year or years preceding the previous
year.
The Board has received various representations requesting for relaxation

in determination of residential status for previous year 2020-21 from
individuals who had come on a visit to India during the previous year
2019-20 and intended to leave India but could not do so due to suspension
of international flights. The matter has been examined by the Board and
following facts have emerged:
1. Short stay will not result into Indian residency

2. Possibilities of dual non-residency in case of general relaxation
3. Tie breaker rule as per Double Taxation Avoidance Agreement
(DTAA)
4. Employment income taxable only subject to conditions as per
DTAA
5. Credit for the taxes paid in other country
6. International Experience
Thus, it can be seen that OECD as well as most of the countries have
clarified that in view of the provisions of the domestic income tax law
read with the DTAAs, there does not appear a possibility of the double
taxation of the income for PY 2020-21. The possibility of double taxation
does not exist as per the provisions of the Income-tax Act, 1961 read with
the DTAAs. However, in order to understand the possible situations in
which a particular taxpayer is facing double taxation due to the forced
stay in India, it would be in the fitness of things to obtain relevant
information from such individuals. After understanding the possible
situations of double taxation, the Board shall examine that,
i. whether any relaxation is required to be provided in this matter;

and
ii. if required, then whether general relaxation can be provided for a
13
class of individuals or specific relaxation is required to be
provided in individual cases.
Therefore, if any individual is facing double taxation even after taking

into consideration the relief provided by the respective DTAAs, he may
furnish the information in Form -NR annexed to this circular by 31st
March, 2021. This form shall be submitted electronically to the Principal
Chief Commissioner of Income-tax (International Taxation).
32. Lesson 4 CBDT Notifies Rule 3B Prescribing Computation of Perquisite for https://incometa
Part I Annual Accretion in PF and Other Funds u/s 17(2)(viia) for excess xindia.gov.in/co
contribution by Employer Over Rs. 750000 [Notification No. 11 mmunications/n
Income under Dated March 5, 2021] otification/notifi
the head Finance Act, 2020 has amended the provisions of section 17(2)(vii) of the cation_no_11_2
Salary Income tax Act to provide that the amount or the aggregate amounts of 021.pdf
any contribution made by the employer in respect of the assessee, to the
account of an assessee in a recognised provident fund; in the scheme
referred to in sub-section (1) of section 80CCD (NPS); and in an
approved superannuation fund shall be treated as a perquisite, to the
extent it exceeds Rs. 7,50,000 in a previous year.
Further, Finance Act, 2020 has inserted a new sub-clause (viia) in section
17(2) so as to provide that annual accretion by way of interest, dividend
or any other amount of similar nature during the previous year to the
balance at the credit of the fund or scheme referred to in sub-clause (vii)
may also be treated as perquisite to the extent it relates to the contribution
referred to in the said new sub-clause (vii), which is included in total
income and shall be computed in the prescribed manner.
The manner of computation of such annual accretion in the provident and

other welfare funds specifying the method of computation of perquisite
u/s 17(2)(viia) is now notified by this Notification 11 of 2021.
33. Lesson 4 Notification No. 12 / 2021 [Dated March 9, 2021] https://incometa
Part III The Central Government hereby approves M/s Bennett University, xindia.gov.in/co
Greater Noida, Uttar Pradesh (PAN: AAAJB13B8A) under the category mmunications/n
PGBP of 'University, College or other institution' for Scientific Research and otification/notifi
Research in Social Science and Statistical Research for the purposes of cation_12_2021.
clauses (ii) and (iii) of sub-section (1) of section 35 of the Income-tax pdf
Act, 1961 read with rules 5C and 5E of the Income-tax Rules, 1962. This
Notification shall be deemed to have been applied for the assessment year
2020-2021 and shall apply with respect to the assessment years 2021-
2022, 2022-2023, 2023-2024, 2024-2025.
34. Lesson 2 CBDT notifies Amendment to Rule 10V for Computation of https://incometa
Remuneration payable to Fund Managers [Notification No. 13 Dated xindia.gov.in/co
Basic March 9, 2021] mmunications/n
Concept of The Board notified the Income-tax (2nd Amendment) Rules, 2021 which otification/notifi
Income Tax seeks to further amend rule 10V of the Income-tax Rules, 1962. Sub-rule cation_no_13.pd
(12) of Rule 10V provides for the amount of remuneration to be paid by f
the fund to a fund manager. Second provision of the said sub-rule
provides that the fund may seek Board’s approval in case where the
amount of remuneration is lower than the amount so prescribed.
In the Income-tax Rules, 1962, in rule 10V, in sub-rule (12), after the
14
second proviso and before the Explanation, the two provisos shall be
inserted.
Firstly, “Provided also that the provisions of sub-rules (3) to (12) of rule
10VA shall, mutatis mutandis, apply to the application made under the
second proviso as they apply to application made under sub- rule (2) of
the said rule,”
Secondly, “Provided also that the provisions of sub-rule (3) of rule 10VA
shall not apply to an application made under the second proviso, if it is
for the previous year beginning on the 1st day of April, 2021, and made
on or before the 1st day of February, 2021,”
35. Lesson 9 Income-tax (5th Amendment) Rules, 2021 (Dated March 16, 2021) http://egazette.ni
c.in/WriteRead
Procedural The Central Board of Direct Taxes makes the Income-tax (5th Data/2021/2259
Compliance Amendment) Rules, 2021 (w.e.f. April 1, 2021) as follow: 42.pdf
Rule 29BA has been inserted with respect to “Application for grant of
certificate for determination of appropriate proportion of sum (other than
Salary), payable to non-resident, chargeable in case of the recipients”.
Form No. 15E has been inserted with respect to “Application by a person
for a certificate under section 195(2) and 195(7) of the Income-tax Act,
1961, for determination of appropriate proportion of sum (other than
salary) payable to non-resident, chargeable to tax in case of the recipient”.
36. Lesson 4 Tax Audit Report - Form 3CD- Applicability of Clause 30C and https://incometa
Part III Clause 44 extended by one more year i.e. will be applicable for the xindia.gov.in/co
Financials year 2022-23 [Circular No. 5 Dated March 25, 2021] mmunications/ci
PGBP rcular/circular_n
Section 44AB of the Income-tax Act, 1961 ('the Act') read with rule 6G o_5_2021.pdf
of the Income-tax Rules, 1962 ('the Rules') requires specified persons to
furnish the Tax Audit Report along with the prescribed particulars in
Form No. 3CD. The existing Form No. 3CD was amended vide
notification dated 20th July, 2018 with effect from 20th August, 2018.
However, the reporting under clause 30C (impermissible avoidance
arrangement) and clause 44 (Break-up of total expenditure of entities
registered or not registered under the GST) of the Tax Audit Report was
kept in abeyance till 31st March, 2019 vide Circular No. 6/2018 dated
17.08.2018, which was subsequently extended to 31st March, 2020 vide
Circular No. 912019. Vide circular no. 10/2020 dated 24.04.2020, it was
further extended to 31st March, 2021.
In view of the prevailing situation due to COVID-19 pandemic across the

country, it has been decided by the Board that the reporting under clause
30C and clause 44 of the Tax Audit Report shall be kept in abeyance till
31st March, 2022.
37. Lesson 7 CBDT notifies New Income Tax Rules & Forms for Trust & NPOs https://incometa
(Notification No. 19 Dated March 26, 2021) xindia.gov.in/co
Computation mmunications/n
of Total CBDT issues Notification no. 19/2021 dated 26/03/2021 pertaining to otification/notifi
Income and procedure for registration of fund/ trust/charitable institutions etc. cation_19_2021.
Tax Liability
15
of various Notification Substitutes pdf
entities
Substitutes Rule 2C -Application for the purpose of grant of approval of a
fund or trust or institution or university or any hospital or other medical
institution under clause (i) or clause (ii) or clause (iii) or clause (iv) of
first proviso to clause (23C) of Section 10
 Amends Rule 5C, Inserts Rule 5CA Intimation under Fifth

Proviso to sub-section (1) of section 35,
 Amends Rule 5F, Substitutes Rule 11AA – Requirement for
approval of institution of fund under clause (vi) of sub-section (5)
of section 80G
 Substitutes Rule 17A - Application for registration of charitable
or religious trusts etc.
 Inserts Rule 18AB - Furnishing of Statement of particulars and
certificate under clause (viii) and clause (ix) of sub-section (5) of
section 80G or under sub-section (1A) of section 35 and
Substitutes/Inserts/Amends various Forms.
38. Lesson 10 Faceless Appeal (Amendment) Scheme, 2021 (Notification No. 26 http://egazette.ni
Dated March 31, 2021) c.in/WriteRead
Assessment, Data/2021/2263
Appeals and “National Faceless Assessment Centre” shall mean the National e- 20.pdf
Revision Assessment Centre set up under the scheme notified under sub-section
(3A) of section 143 of the Act or the National Faceless Assessment
Centre referred to in section 144B of the Act, as the case may be. In this
regard, for the expression “National e-Assessment Centre”, wherever it
occurs, the expression “National Faceless Assessment Centre” shall be
substituted.
39. Lesson 4 New reporting requirements in Form 3CD & Revision (Notification http://egazette.ni
Part III No. 28 Dated April 1, 2021) c.in/WriteRead
Data/2021/2263
PGBP CBDT has vide Notification No. 28 inserted new clauses in Form 3CD 51.pdf
(Tax Audit Report) and also notified that Tax Audit Report under Rule
6G can be revised if there is payment by Assessee after furnishing of
report which necessitates recalculation of disallowance under section 40
or section 43B of the Income tax Act, 1961.
40. Lesson 3 CBDT notifies ‘Norfund, Government of Norway’ as sovereign https://www.inc
wealth fund [Notification No. 33 Dated April 19, 2021] ometaxindia.gov
Incomes .in/communicati
which do not The Central Government specifies the sovereign wealth fund, namely, the ons/notification/
form part of Norfund, Government of Norway, (hereinafter referred to as “the notification_33_
Total Income assessee”) as the specified person for the purposes of sub-clause (vi) of 2021.pdf
clause (b) of the Explanation 1 to clause (23FE) of section 10 of the
Income-tax Act, 1961, in respect of the investment made by it in India on
or after the date of publication of this notification in the Official Gazette
but on or before the 31st day of March, 2024 subject to the fulfillment of
the certain conditions.
16
41. Lesson 9 Format, Procedure and Guidelines for submission of Statement of https://www.inc
Financial Transactions (SFT) for Dividend income [Notification No. 1 ometaxindia.gov
Procedural Dated April 20, 2021] .in/communicati
Compliance ons/notification/
The Central Board of Direct Taxes (CBDT) notified the Format, notification_1_2
Procedure, and Guidelines for submission of Statement of Financial 021_dividend_in
Transactions (SFT) for Dividend income. Section 285BA of the Income come.pdf
Tax Act, 1961 and Rule 114E requires specified reporting persons to
furnish SFT.
Financial Transactions (SFT) for Interest income [Notification No. 2 ometaxindia.gov
Procedural Dated April 20, 2021] .in/communicati
The Central Board of Direct Taxes (CBDT) notified the Format, notification_2_2
Procedure, and Guidelines for submission of Statement of Financial 021_interest_inc
Transactions (SFT) for Interest income. Section 285BA of the Income ome.pdf
Tax Act, 1961 and Rule 114E requires specified reporting persons to
furnish SFT.
43. Lesson 3 CBDT notifies Income-tax (11th Amendment) Rules, 2021 [Dated https://incometa
April 26, 2021] xindia.gov.in/co
Incomes mmunications/n
which do not The Central Board of Direct Taxes ‘CBDT’ issued the Income-tax (11th otification/notifi
form part of Amendment) Rules, 2021 to further amend the Income-tax Rules, 1962 cation_37_2021.
Total Income with regard to conditions to be satisfied by the Pension Fund, in a pdf
following manner:
i. Inserted a proviso to Rule 2DB(ii) with respect to condition of

assets being administered or invested by Pension Fund as
mention in clause (ii) shall deemed to be satisfied if certain
condition specified therein are satisfied.
ii. Inserted a second proviso to Rule 2DB(iii) stating that provisions
of clause (iii) shall not apply to earnings from assets referred in
clause (ii), if the earning are credited either to the account of the
Government of foreign country or to any other account
designated by such Government so that no portion of the earnings
insures any benefit to any private person.
iii. Substituted Form No. 10BBA (Application for notification under
Explanation 1(c)(iv) to Section 10(23FE) of the Income-tax Act,
1961)
Financial Transactions (SFT) for Depository Transactions ometaxindia.gov
Procedural [Notification No. 3 Dated April 30, 2021] .in/communicati
Section 285BA of the Income Tax Act, 1961 and Rule 114E requires notification-
specified reporting persons to furnish statement of financial transaction 3_2021_deposit
(SFT). For the purposes of pre-filling the return of income, CBDT has ory_transaction.
issued Notification No. 16/2021 dated 12.03.2021 to include reporting of pdf
information relating to Capital gains on transfer of listed securities or
units of Mutual Funds. The new sub rule 5A of rule 114E specifies that
17
the information shall be furnished in such form, at such frequency, and in
such manner, as may be specified. Accordingly, The guidelines for
preparation and submission of Statement of Financial Transactions (SFT)
information, format of control statement to be submitted by the
Designated Director and data structure and validation rules have been
prescribed.
Financial Transactions (SFT) for Mutual Fund Transactions by ometaxindia.gov
Procedural Registrar and Share Transfer Agent [Notification No. 4 Dated April .in/communicati
Compliance 30, 2021] ons/notification/
notification_4_2
Section 285BA of the Income Tax Act, 1961 and Rule 114E requires
021_mutual_fun
specified reporting persons to furnish statement of financial transaction
d_transaction.pd
(SFT). For the purposes of pre-filling the return of income, CBDT has
f
issued Notification No. 16/2021 dated 12.03.2021 to include reporting of
information relating to Capital gains on transfer of units of Mutual Funds.
The new sub rule 5A of rule 114E specifies that the information shall be
furnished in such form, at such frequency, and in such manner, as may be
specified. Accordingly, The guidelines for preparation and submission of
Statement of Financial Transactions (SFT) information, format of control
statement to be submitted by the Designated Director and data structure
and validation rules have been prescribed.
46. Lesson 2 Thresholds for the purposes of Significant Economic Presence - Rule https://www.inc
11UD [Notification No. 41 Dated May 3, 2021] ometaxindia.go
Basic
concepts of The Central Board of Direct Taxes has notified the Income-tax (13th v.in/communic
Income Tax Amendment) Rules, 2021 which shall come into force from 1st April ations/notificati
2022. Through this amendment a new rule 11UD has been inserted which on/notification_
notifies the threshold for significant economic presence. 41_2021.pdf
As per the new rule, for the thresholds “the amount of aggregate of
payments arising from transaction or transactions in respect of any goods,
services or property carried out by a non-resident with any person in
India, including provision of download of data or software in India during
the previous year, shall be two crore rupees.”
Further, the number of users with whom systematic and continuous
business activities are solicited or who are engaged in interaction shall be
three lakhs.
Accordingly, the threshold limit has been notified for the purpose of
significant economic presence.
47. Lesson 9 CBDT notifies Amendment in Rule 114AAB and Form No. 49BA
[Notification No. 42 Dated May 4, 2021] https://www.eg
Procedural azette.nic.in/W
Compliance CBDT relaxes PAN requirement for a non-resident eligible foreign
riteReadData/2
investor making transaction only in a capital asset listed on a
021/226833.pdf
recognised stock exchange located in any IFSC and consideration paid
in Foreign Currency.
18
48. Lesson 4 CBDT notifies rules for LTC Cash Voucher Scheme [Notification No. https://www.ega
(Part I) 50 Dated May 5, 2021] zette.nic.in/Writ
eReadData/2021
Salary CBDT notifies rules for LTC (Leave Travel Concession) Cash Voucher
/226843.pdf
Income Scheme [Section 10(5)] vide which LTC Exemption of Rs. 36000 per
family member For FY 2020-21 available to Employees of Both Private
& Government Sector. Rules are notified by inserting Sub-Rule 1A & IB
in Rule 2B of Income Tax Rules as follows:
Sub-Rule 1A: For the assessment year beginning on the 1st day of April,
2021, where the individual avails any cash allowance from his employer
in lieu of any travel concession or assistance, the amount exempted shall
be the amount, not exceeding thirty-six thousand rupees per person, for
the individual and the member of his family, or one-third of the specified
expenditure, whichever is less, subject to fulfillment of the certain
conditions.
Sub-Rule 1B: Where an exemption is claimed and allowed, shall have

effect as if for the words “two journeys”, the words “one journey” has
been substituted.”
49. Lesson 3 CBDT notifies following entities as Sovereign Wealth Fund -
Incomes The Central Government hereby specifies the following entities as the
which do not specified person for the purposes of the sub-clause (vi) of clause (b) of
form part of the Explanation 1 to clause (23FE) of section 10 of the Income-tax Act,
Total Income 1961 in respect of the investment made by it in India on or after the date
of publication of this notification in the Official Gazette but on or before
the 31st day of March, 2024 (hereinafter referred to as “said
investments”) subject to the fulfillment of the certain conditions.
Accordingly, the following entities have been notified as specified

person for the purposes of the sub-clause (vi) of clause (b) of the
Explanation 1 to clause (23FE) of section 10 of the Income-tax Act,
1961.
 Anahera Investment Pte. Ltd
 Dagenham Investment Pte. Ltd.
 Stretford Investment Pte. Ltd.
 Chiswick Investment Pte. Ltd
 CDC Group Plc
 Ministry of Economy and Finance (of the Republic of Korea)
 Bricklayers Investment Pte. Ltd
50. Lesson 3 Government notifies following entities as Pension Fund Section
10(23EE)
Incomes
which do not The Central Government hereby specifies the pension fund, namely, the
form part of following entities (as mentioned below) as the specified person for the
Total Income purposes of the sub-clause (iv) of clause (c) of the Explanation 1 to clause
(23FE) of section 10 of the Income-tax Act, 1961 in respect of the
19
eligible investment made by it in India on or after the date of publication
of this notification in the Official Gazette but on or before the 31st day of
March, 2024 (hereinafter referred to as “said investments”) subject to the
fulfillment of the certain conditions.
Accordingly, the following entities have been notified as specified

person for the purposes of the sub-clause (iv) of clause (c) of the
Explanation 1 to clause (23FE) of section 10 of the Income-tax Act,
1961.
 OMERS Administration Corporation
 Government Employees Superannuation Board
 Public Sector Pension Investment Board
 CDPQ Fixed Income XI Inc.
 Ivanhoe Logistics India Inc
 CDPQ Infrastructures Asia III Inc.
 Caisse de dépôt et placement du Québec
 Canada Pension Plan Investment Board Private Holdings (4)
Inc
 Canada Pension Plan Investment Board
(Part III) Dated May 24, 2021] ometaxindia.gov
The Central Board of Direct Taxes on 24th May 2021 has published the .in/communicati
Capital Gains Income- tax (16th Amendment) Rules, 2021 which has notified a new ons/notification/
rule for computation of fair value of capital assets in slump sale. notification_68_
2021.pdf
As per the Amendment, a new rule 11UAE has been inserted which
provides two formulae for calculation of fair market value of the capital
asset. The FMV1 shall be the fair market value of the capital assets
transferred by way of slump sale determined and FMV2 shall be the
fair market value of the consideration received or accruing as a result
of transfer by way of slump sale.
52. Lesson 4 Notification No.70/2021 u/s 35(1)(ii)/(iii) of the Income-tax Act, 1961 https://www.inc
Part III in the case of M/s Indian Institute of Technology (IIT), Bhilai (June ometaxindia.gov
08, 2021) .in/communicati
PGBP ons/notification/
The Central Government approves M/s Indian Institute of Technology, notification_70_
Bhilai (PAN: AABAI0415K) under the category of ‘University, College 2021.pdf
or other institution’ for Scientific Research and Research in Social
Science and Statistical Research for the purposes of clauses (ii) and (iii)
of sub-section (1) of section 35 of the Income-tax Act, 1961 read with
rules 5C and 5E of the Income-tax Rules, 1962.
Accordingly, M/s Indian Institute of Technology, Bhilai will be

‘University, College or other institution’ for Scientific Research and
Research in Social Science and Statistical Research for the purposes of
section 35(1)(ii) and (iii) of the Income-tax Act, 1961 read with rules 5C
and 5E of the Income-tax Rules, 1962.
53. Lesson 9 Income-tax (17th Amendment) Rules, 2021(June 08, 2021) https://www.inc
ometaxindia.gov
Procedural The Central Board of Direct Taxes (CBDT) notified the Income Tax .in/communicati
Compliance (17th Amendment) Rules, 2021 which further amends the Income Tax ons/notification/
Rules, 1962 as follow:
20
notification_71_
As per the notification the deductor at the time of preparing statements of 2021.pdf
tax deducted shall furnish particulars of amount paid or credited on which
tax was not deduced or deducted at lower rate in view of the notification
issued under section 194A(5) or in view of exemption provided under
clause (x) of sub-section (3) of section 194A.
The deductor at the time of preparing statements of tax deducted shall

furnish particulars of amount paid or credited on which tax was not
deducted in view of clause (d) of the second proviso to section 194 or in
view of the notification issued under clause (e) of the second proviso to
section 194.
The notification mandates the deductor at the time of preparing

statements of tax deducted to furnish particular amounts paid or
credited on which tax was not deducted in view of proviso to subsection
(1A) or in view of sub-section (2) of section 196D.
54. Lesson 3 Notification No. 72/2021 (June 09, 2021) https://www.inc
ometaxindia.gov
Income The Central Government notifies to include ‘Competition Commission of .in/communicati
Which do not India’ (PAN AAAGC0012M), a Commission established under sub- ons/notification/
Form Part of section (1) of Section 7 of the Competition Act, 2002, for the purposes of notification_72_
Total Income the clause (46) of section 10 of the Income-tax Act, 1961 in respect of 2021.pdf
certain specified income arising to the said Commission and subject to
fulfillment of certain conditions.
Accordingly, Competition Commission of India can claim exemption

under section 10(46) with respect to specified income subject to certain
conditions.
55. Lesson 4 Cost Inflation Index for FY 2021-22 [Notification No. 73 Dated June https://www.inc
Part IV 15, 2021] ometaxindia.gov
.in/communicati
Capital Gains The Central Board of Direct Taxes (CBDT) has notified the cost ons/notification/
inflation index (CII) for FY 2021-22 as "317" via a notification dated notification_73_
June 15, 2021. CII is used to calculate the inflation adjusted cost price 2021.pdf
of an asset. The inflation adjusted price then is used to arrive at long-
term capital gains or long-term losses.
56. Lesson 9 CBDT issues functionality for Compliance Check for Sections 206AB https://www.inc
& 206CCA [Circular No. 11 Dated June 21, 2021] ometaxindia.gov
Compliance Section 206AB contains the special provisions for (TDS) deduction of tax ons/circular/circ
at source for non-filers of the income tax return, whereas, section ular_11_2021.p
206CCA provides for special provision for (TCS) collection of tax at df
source for non-filers of the income tax return. Section 206AB & section
206CCA inserted in the Income-tax Act, 1961 via Finance Act, 2021 will
be effective from the 1st day of July, 2021.
According to the interpretation of the new sections, the tax deductor or

the tax collector is required to do a due diligence to check whether the
deductee or the collectee is a specified person. This is a compliance
burden on the part of such tax deductor or the tax collector.
21
To ease this compliance burden, the CBDT has issued a new
functionality called “Compliance Check for Sections 206AB &
206CCA”. Through this functionality, tax deductor or the collector can
feed the single PAN (PAN search) or multiple PANs (bulk search) of
the deductee or collectee and can get a response from the functionality
if such deductee or collectee is a specified person or not.
57. Lesson 9 Guidelines under section 194Q of the Income-tax Act, 1961 [Circular https://www.inc
No. 13 Dated June 30, 2021] ometaxindia.gov
Compliance The Finance Act, 2021 inserted a new section 194Q in the Income-tax ons/circular/circ
Act 1961 which takes effect from 1st July, 2021. It applies to any buyer ular_13_2021.p
who is responsible for paying any sum to any resident seller for the df
purchase of any goods of the value or aggregate of value exceeding Rs.
50 lakh in any previous year. The buyer, at the time of credit of such sum
to the account of the seller or at the time of payment, whichever is earlier,
is required to deduct an amount equal to 0.1% of such sum exceeding Rs.
50 lakh as income tax.
It has been represented that there are practical difficulties in

implementing the provisions of Tax Deduction at Source (TDS) contained
in section 194-Q of the Act.
Accordingly, the CBDT issued guidelines which, at some places have

also tried to remove difficulties in implementing the provisions of
section 194-O and sub-section (IH) of section 206C of the Act using
power contained in sub-section (4) of section 194-O of the Act and sub-
section (1- I) of section 206C of the Act.
58. Lesson 4 Income-tax Amendment (18th Amendment) Rules, 2021 [Notification https://www.inc
Part IV No. 76 Dated July 02, 2021] ometaxindia.gov
.in/communicati
th
Capital Gains The Central Board of Direct taxes has issued the Income tax (18 ons/notification/
Amendment) Rules, 2021. notification_76_
2021.pdf
The amendment provides that in case of the amount which is
chargeable to income-tax as income of specified entity under the head
Capital gains, the specified entity shall furnish the details of amount
attributed to capital asset remaining with the specified entity in new
Form No. 5C.
Form No. 5C shall be furnished electronically either under digital

signature or through electronic verification code and shall be verified by
the person who is authorized to verify the return of income of the
specified entity under section 140 of the Income-tax Act, 1961.
59. Lesson 4 Guidelines under section 9B and sub-section (4) of section 45 of the https://www.inc
Part IV Income-tax Act, 1961 [Circular No. 14 Dated July 02, 2021] ometaxindia.gov
.in/communicati
Capital Gains The Government has inserted a new section 9B of the Income Tax Act, ons/circular/circ
1961 and substituted sub-section (4) of section 45 of the Income Tax Act, ular_14_2021.p
1961 by the Finance Act, 2021. The CBDT has come out with df
Notification No. 76 dated July 2, 2021 to insert sub-rule (5) to Rule 8AA
and a new Rule-8AB so as to prescribe the manner of calculating the
income chargeable to tax under section 45(4) of the Act as "capital gains"
22
and also the manner in which such income shall be attributed to
remaining assets with the specified entity under clause (iii) of section 48
of the Act.
Accordingly, CBDT issued guidelines for application of section 9B and

section 45(4) read with the aforesaid rules.
60. Lesson 4 Income Tax (19th Amendment) Rules, 2021 [Notification No. 77 https://egazette.
Part IV Dated July 7, 2021] nic.in/WriteRe
adData/2021/22
Capital Gains The Central Board of Direct taxes makes Income-tax (19th Amendment), 8152.pdf
Rules, 2021 further to amend the Income-tax Rules, 1962.
As per notification, after rule 8AB, rule 8AC [i.e. Computation of short
term capital gains and written down value under section 50 where
depreciation on goodwill has been obtained] has been inserted.
61. Lesson 3 Notification No. 78 [Dated July 9, 2021] https://www.inc
ometaxindia.gov
Income which The Central Government notifies to include ‘Haryana Building and Other .in/communicati
do not form a Construction Workers Welfare Board’ (PAN AAATH6995H), a Board ons/notification/
part of Total constituted by the State Government of Haryana, for the purposes of the notification_78_
Income clause (46) of section 10 of the Income-tax Act, 1961 in respect of the 2021.pdf
certain specified income arising to that Board subject to certain
conditions.
Accordingly, Haryana Building and Other Construction Workers

Welfare Board can claim exemption under section 10(46) with respect
to specified income subject to certain conditions.
62. Lesson 4 Notification No. 79 (Dated July 12, 2021) https://www.inc
Part III ometaxindia.gov
The Central Government approves M/s Patanjali Research Foundation .in/communicati
PGBP Trust, Haridwar (PAN:- AABTP8183E) under the category “Research ons/notification/
Association” for Scientific Research for the purposes of clauses (ii) of notification_79_
sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 2021.pdf
5C and 5D of the Income-tax Rules, 1962.
Accordingly, M/s Patanjali Research Foundation Trust will be

“Research Association” for Scientific Research for the purposes of
section 35(1)(ii) of the Income-tax Act, 1961 read with rules 5C and 5D
of the Income-tax Rules, 1962.
ometaxindia.gov
Income which The Central Government hereby notifies to include ‘Haryana Labour .in/communicati
do not form a Welfare Board’ (PAN AAATH2451C), a Board constituted by the State ons/notification/
part of Total Government of Haryana, for the purposes of the clause (46) of section 10 notification_80_
Income of the Income-tax Act, 1961 in respect of the certain specified income 2021.pdf
arising to that Board subject to certain conditions.
Accordingly, Haryana Labour Welfare Board can claim exemption

conditions.
23
ometaxindia.gov
Income which The Central Government notifies ‘Himachal Pradesh Computerization of .in/communicati
do not form a Police Society’, (PAN AABAH0360G), a body established by the State ons/notification/
part of Total Government of Himachal Pradesh, for the purposes of the clause (46) of notification_81_
Income section 10 of the Income-tax Act, 1961 in respect of the certain specified 2021.pdf
income arising to that body subject to certain conditions.
Accordingly, Himachal Pradesh Computerization of Police Society can

claim exemption under section 10(46) with respect to specified income
subject to certain conditions.
Dated July 27, 2021] ometaxindia.gov
Compliance The Central Board of Direct Taxes (CBDT) vide notification dated 27th ons/notification/
July, 2021 has issued the Income-tax (20th Amendment) Rules, 2021 notification_82_
further amending the Income-tax Rules, 1962. 2021.pdf
Through this amendment, in Rule 12 which relates to ‘Return of

Income & Return of Fringe Benefits’ the assessment year for the
assessment procedure shall be substituted from ‘2019’ to ‘2020’.
66. Lesson 9 Income-tax (21st Amendment) Rules, 2021 [Notification No. 83 Dated https://www.inc
July 29, 2021] ometaxindia.gov
Procedural The Central Board of Direct Taxes (CBDT) on July 29, 2021 has issued .in/communicati
Compliance the Income-tax (21st Amendment) Rules, 2021 to further amend the ons/notification/
Income-tax Act, 1961 as follows: notification_83_
2021.pdf
Rule 131 provides for omission of certain Rules and saving clause under
the Act.
Rule 132 provides for electronic furnishing of any forms, returns,

statements, reports, orders etc. in two ways:
 Under digital signature in cases where, the return of income is

required to be furnished under digital signature; or
 Through electronic verification code in other cases.
Further, The Principal Director General of Income-tax (Systems) or the

Director General of Income tax (Systems) with the approval of Board
shall be responsible for the following:
1. Specify the forms, returns, statements, reports, orders, which are

to be furnished electronically;
2. Lay down the data structure, standards and procedure of
furnishing and verification of such forms, returns, statements,
reports, orders, including modification in format, if required, to
make it compatible for furnishing electronically; and
3. Formulation and implementation of appropriate security, archival
and retrieval policies in relation to the said Forms, returns,
statements, reports, orders.
24
67. Lesson 3 Notification No. 84 [Dated August 3, 2021] https://www.inc
ometaxindia.gov
Income which The Central Government specifies the pension fund, namely, the 2726247 .in/communicati
do not form a Ontario Inc., (hereinafter referred to as the assessee) as the specified ons/notification/
part of Total person for the purposes of the sub-clause (iv) of clause (c) of the notification_84_
Income Explanation 1 to clause (23FE) of section 10 of the Income-tax Act, 1961 2021.pdf
in respect of the eligible investment made by it in India on or after the
date of publication of this notification in the Official Gazette but on or
before the 31st day of March, 2024 (hereinafter referred to as said
investments) subject to the fulfillment of the certain conditions.
Accordingly, 2726247 Ontario Inc. will be specified person for section

10(23FE).
68. Lesson 3 Notification No. 85 (Dated August 4, 2021) https://www.inc
ometaxindia.gov
Income which The Central Government notifies, ‘National Council of Science .in/communicati
do not form a Museums’, Kolkata (PAN AAAAN2541C), an autonomous body ons/notification/
part of Total established under the Ministry of Culture, Government of India, for the notification_85_
Income purposes of the clause (46) of section 10 of the Income-tax Act, 1961 in 2021.pdf
respect of the certain specified income arising to the Council subject to
certain conditions.
Accordingly, National Council of Science Museums can claim

exemption under section 10(46) with respect to specified income subject
to certain conditions.
69. Lesson 3 Notification No. 86 (Dated August 4, 2021) https://www.inc
ometaxindia.gov
Income which The Central Government notifies ‘Real Estate Regulatory Authority’ as .in/communicati
do not form a specified in the schedule to this notification, constituted by Government ons/notification/
part of Total in exercise of powers conferred under sub-section (1) of section 20 of the notification_86_
Income Real Estate (Regulation and Development) Act, 2016 as a ‘class of 2021.pdf
Authority’ for the purposes of the clause (46) of section 10 of the Income-
tax Act, 1961 in respect of the certain specified income arising to that
Authority subject to certain conditions.
Accordingly, Real Estate Regulatory Authority can claim exemption

conditions.
70. Lesson 2 Income Tax (22nd Amendment) Rules 2021 [Dated August 9, 2021] https://www.inc
Basic ometaxindia.gov
Concept of CBDT has notified Income tax (22nd Amendment) Rules, 2021 to insert .in/communicati
Income Tax the following two rules as follow: ons/notification/
Computation of exempt income of specified fund for the notification_90_
purposes of clause (4D) of section 10 2021.pdf
Rule The Rule provides formula for computation of income

21AI attributable to units held by non-resident (not being the
permanent establishment of a non-resident in India) in a specified
fund for the purpose of clause (4D) of section 10 of the Income
tax Act, 1961.
Rule Determination of income of a specified fund attributable to
25
21AJ units held by non-residents under sub-section (1A) of section
115AD
The Rule provides formula of calculation, for purposes of sub-

section (1A) of section 115AD, the income of a specified fund by
way of short-term or long-term capital gains, referred to in clause
(b) of sub-section (1) of section 115AD, attributable to the units
held by non-resident (not being the permanent establishment of a
non-resident in India)
71. Lesson 8 Income tax (23rd Amendment) Rules, 2021 [Notification No. 92 https://www.inc
Classification Dated August 10, 2021] ometaxindia.gov
and Tax .in/communicati
incidence on CBDT notifies the Income tax (23rd Amendment), Rules 2021, to ons/notification/
Companies prescribe the procedure / methodology for re-computation of book profit notification_92_
u/s 115JB of the Income tax Act, 1961, to provide relief in MAT payable 2021.pdf
in certain cases. Accordingly, new IT Rule 10RB on ‘Relief in tax
payable u/s 115JB(1) due to operation of section 115JB(2D)’ along with
new FORM No. 3CEEA for ‘annual furnishing of particulars of re-
computation for any adjustment on account of income of past year(s)
included in books of account of previous year by a Company on
account of secondary adjustment u/s 92CE or on account of an
Advance Pricing Agreement entered u/s 92CC’ have been introduced/
inserted in the Income Tax Rules, 1962.
72. Lesson 9 Income-tax (29th Amendment) Rules, 2021 [Dated September 13, https://incometa
2021] xindia.gov.in/co
Procedural mmunications/n
Compliances The Central Board of Direct Taxes notifies Income-tax (29th otification/notifi
Amendment) Rules, 2021 to amend Income-tax Rules, 1962. The cation-no-109-
Amendment inserts a provision prescribing income- tax authority under 2021.pdf
second proviso to clause (i) of sub-section (1) of section 142 as follow:
Rules 12F: The Rule provides that the prescribed income-tax authority
under second proviso to clause (i) of sub-section (1) of section 142 shall
be an income-tax authority not below the rank of Income-tax Officer who
has been authorised by the Central Board of Direct Taxes to act as such
authority for the purposes of that clause.
Accordingly, the Income tax authority has been prescribed under

second proviso to clause (i) of section 142(1).
73. Lesson 9 No Section 194A TDS on Interest payment to Scheduled Tribe by https://incometa
Scheduled Bank [Notification No. 110 Dated September 17, 2021] xindia.gov.in/co
Compliances CBDT notifies that no Section 194A TDS will be deducted by ‘Scheduled otification/notifi
Bank on payment of interest, other than interest on securities to cation-no-110-
Scheduled Tribe residing in any specified area, and the payment as 2021.pdf.pdf
referred above is accruing or arising to the receiver as referred to in
section 10(26) if the payment made or aggregate of payments made
during the previous year does not exceed 20 lakhs rupees.
26
Accordingly, TDS is not required to be deducted u/s 194A by
‘Scheduled Bank on payment of interest, other than interest on
securities to Scheduled Tribe residing in any specified area, and the
payment as referred above is accruing or arising to the receiver as
referred to in section 10(26) if the payment made or aggregate of
payments made during the previous year does not exceed 20 Lakhs
rupees.
74. Lesson 3 CBDT notifies pension fund, namely ‘2452991 Ontario Limited’ https://incometa
Section 10(23FE) [Notification No. 111 Dated September 16, 2021] xindia.gov.in/co
Income which mmunications/n
do not form a CBDT notifies pension fund, namely, ‘2452991 Ontario Limited’ under otification/notifi
part of Total sub-clause (iv) of clause (c) of the Explanation 1 to clause (23FE) of cation-no-111-
Income section 10 of the Income-tax Act, 1961 in respect of the eligible 2021.pdf
investment made by it in India on or after 16th September, 2021 but on or
before the 31st day of March, 2024 subject to fulfilment of certain
conditions.
Accordingly, 2452991 Ontario Limited will be specified person for

section 10(23FE).
75. Lesson 3 CBDT notifies pension fund, namely ‘276522 Ontario Limited’ https://incometa
Section 10(23FE) [Notification No. 112 Dated September 16, 2021] xindia.gov.in/co
do not form a otification/notifi
CBDT notifies pension fund, namely, ‘276522 Ontario Limited’ under
part of Total cation-no-112-
Income sub-clause (iv) of clause (c) of the Explanation 1 to clause (23FE) of 2021.pdf
section 10 of the Income-tax Act, 1961 in respect of the eligible
investment made by it in India on or after 16th September, 2021 but on or
before the 31st day of March, 2024 subject to fulfilment of certain
conditions.
Accordingly, 276522 Ontario Limited will be specified person for

section 10(23FE).
76. Lesson 3 Notification No. 114 [Dated September 20, 2021] https://incometa
xindia.gov.in/co
Income which The Central Government hereby specifies the pension fund, namely, the mmunications/n
do not form a BCI IRR India Holdings Inc., as the specified person for the purposes of otification/notifi
part of Total the sub-clause (iv) of clause (c) of the Explanation 1 to clause (23FE) of cation-no-114-
Income section 10 of the Income-tax Act, 1961 in respect of the eligible 2021.pdf
investment made by it in India on or after the date of publication of this
notification in the Official Gazette but on or before the 31st day of
March, 2024 subject to the fulfilment of the certain conditions.
Accordingly, BCI IRR India Holdings will be specified person for

section 10(23FE).
77. Lesson 3 Notification No. 115 [Dated September 20, 2021] https://incometa
xindia.gov.in/co
Income which The Central Government notifies ‘Gujarat Electricity Regulatory mmunications/n
do not form a Commission’, Gandhinagar (PAN AAAAG0638C), a commission otification/notifi
part of Total established by the state government of Gujarat, for the purposes of the cation-no-115-
27
certain specified income arising to the Commission subject to fulfillment
of certain conditions.
Accordingly, the Gujarat Electricity Regulatory Commission is notified

for the purpose of claiming exemption under section 10(46) of the
Income tax Act, 1961 subject to certain conditions.
78. Lesson 9 Notification No. 119 [Dated October 11, 2021] https://incometa
xindia.gov.in/co
Procedural The Central Government exempts the following class of persons mmunications/n
Compliances mentioned in column (2) of the Table below, subject to the conditions otification/notifi
specified in column (3) of the said Table , from the requirement of cation-119-
furnishing a return of income under sub-section (1) of section 139 of the 2021.pdf
said Act from assessment year 2021-2022 onwards :
Sl. No. class of Persons Conditions
(i) The said class of persons does not earn

any income in India, during the previous
year, other than the income from
investment in the specified fund referred to
in sub-clause (i) of clause (c) of
(i) a non-resident,
Explanation to clause (4D) of section 10 of
not being a
1. the said Act; and
company; or (ii) a
foreign company
(ii) The provisions of section 139A of the
said Act are not applicable to the said class
of persons subject to fulfillment of the
conditions mentioned in sub-rule (1) of rule
114AAB of the Income-tax Rules, 1962
(i) The said class of persons, during the
previous year, has made transaction only in
capital asset referred to in clause (viiab) of
section 47 of the said Act, which are listed
on a recognised stock exchange located in
any International Financial Services Centre
and the consideration on transfer of such
capital asset is paid or payable in foreign
currency.
a non-resident,
2. being an eligible (ii) The said class of persons does not earn
foreign investor. any income in India, during the previous
year, other than the income from transfer of
capital asset referred to in clause (viiab) of
section 47 of the said Act; and
(iii) The provisions of section 139A of the

said Act are not applicable to the said class
of persons subject to fulfillment of the
conditions mentioned in sub-rule (2A) of
rule 114AAB of the said rules.
28
Accordingly, the class of persons mentioned in column (2) of the above
Table is exempt from the requirement of furnishing a return of income
from assessment year 2021-2022 onwards subject to the fulfillment of
conditions specified in column (3) of the said Table.
79. Lesson 4 Clarification regarding Section 36(1)(xvii) of the Income-tax Act, https://incometa
Part III 1961 inserted vide Finance Act, 2015 [Circular No. 18 Dated Oct 25, xindia.gov.in/co
2021] mmunications/ci
PGBP rcular/circular-
The Finance Act, 2015 inserted the clause (xvii) in sub-section (1) of no-18-2021.pdf
section 36 of the Income-tax Act, 1961 (the Act) to provide for deduction
on account of the amount of expenditure incurred by a co-operative
society engaged in the business of manufacture of sugar for purchase of
sugarcane at a price which is equal to or less than the price fixed or
approved by the Government. The issue of treatment of additional
payment for sugarcane price by Co-operative sugar mills as an income
distribution to farmer members and the resultant tax liabilities has been
brought to the notice of the Central Board of Direct Taxes (the Board).
The matter has been examined by the Board and clarified that the
phrase 'price fixed or approved by the Government' includes price
fixation by State Governments through State-level Acts/Orders or other
legal instruments that regulate the purchase price for sugarcane
including State Advised Price, which may be higher than the Statutory
Minimum Price/ Fair and Remunerative Price fixed by the Central
Government.
80. Lesson 3 Guidelines under clause (23FE) of section 10 of the Income-tax Act, https://incometa
1961 [Circular No. 19 Dated October 26, 2021] xindia.gov.in/co
Income which mmunications/ci
do not form a Finance Act, 2020 inserted clause (23FE) to provide for exemption to rcular/circular-
part of Total sovereign wealth funds and pension funds on their income in the nature of 19-2021.pdf
Income dividend, interest and long-term capital gains arising from investment in
infrastructure in India made between 01 .04.2020 and 31.03.2024 subject
to fulfillment of certain conditions. The Board issued the following
guidelines in this regard:
(a) if the loans and borrowings have been taken by the specified fund or
any of its group concern, specifically for the purposes of making
investment by the specified fund in India, such fund shall not be eligible
for exemption under clause (23FE) of section 10 of the Act; and
(b) if the loans and borrowings have been taken by the specified fund or
any of its group concern, not specifically for the purposes of making
investment in India, it shall not be presumed that the investment in India
has been made out of such loans and borrowings and such specified fund
shall be eligible for exemption under clause 23(FE) of section 10 of the
Act, subject to the fulfillment of all other conditions under the said
clause, provided that the source of the investment in India is not from
such loans and borrowings.
Accordingly, the above guidelines has been issued with respect to
claiming exemption by sovereign wealth funds and pension funds on
their income in the nature of dividend, interest and long-term capital
gains arising from investment in infrastructure in India.
29
81. Lesson 10 E-Settlement Scheme, 2021 [Notification No. 129 Dated November 1, https://incometa
2021] xindia.gov.in/co
Assessment, mmunications/n
Appeals and The Central Board of Direct Taxes (CBDT) notified the e-Settlement otification/notifi
Revision Scheme, 2021 to settle pending Applications transferred to the Settlement cation-129-
Commission. This Scheme shall be applicable to pending applications in 2021.pdf
respect of which the applicant has not exercised the option under sub-
section (1) of section 245M of the Income tax Act, 1961 and which has
been allotted or transferred by Central Board of Direct Taxes to an
Interim Board. The Interim Board shall conduct e-settlement of pending
applications allocated or transferred to it in accordance with the
provisions of this Scheme.
Under the e-Settlement scheme, all communication between the Interim

Board and the applicant, or his authorised representative will be
exclusively in electronic mode. There is no need for the applicant or his
or her representative to make any personal appearance before the Interim
Board or before any Income-tax Authority or any ministerial staff posted
with the Interim Board.
The scheme is in line with the government’s vision to digitize the overall
income tax litigation process in order to bring more transparency and
credibility.
82. Lesson 10 Income tax (32nd Amendment) Rules, 2021 [Notification No. 132 https://incometa
Dated November 23, 2021] xindia.gov.in/co
Appeals and Through this notification, CBDT has notified revised Form No. 52A otification/notifi
Revision relating to Statement to be furnished to the Assessing Officer under cation-132-
section 285B of the Income-tax Act, 1961, in respect of production of a 2021.pdf
cinematograph film under Rule 121A of Income-tax Rules, 1962.
83. Lesson 3 Notification No. 133 [Dated November 23, 2021] https://incometa
xindia.gov.in/co
Income which The Central Government notifies to include ‘Haryana State Legal mmunications/n
do not form a Services Authority’ Panchkula (PAN AAALH0475J), an authority otification/notifi
part of Total constituted by the State Government of Haryana, for the purposes of the cation-133-
certain specified income arising to that Authority subject to certain
conditions.
Accordingly, the Haryana State Legal Services Authority is notified for

the purpose of claiming exemption under section 10(46) of the Income
tax Act, 1961 subject to certain conditions.
84. Lesson 6 Notification No. 134 [Dated December 6, 2021] https://incometa
The Central Government specifies the Jeevan Akshay-VII Plan of the xindia.gov.in/co
Deduction Life Insurance Corporation of India, as filed by that Corporation with the mmunications/n
from Gross Insurance Regulatory and Development Authority, as the annuity plan of otification/notifi
Total Income, the Life Insurance Corporation of India for the purposes of the clause cation-no-134-
Rebate & (xii) of sub-section (2) of Section 80C of the Income-tax Act, 1961 for 2021.pdf
Relief the assessment year 2021-22 and subsequent years.
Accordingly, Deduction u/s 80C will be available for availing the
aforesaid LIC policy.
30
85. Lesson 3 CBDT notifies conditions for exemption of income accrued by non- https://www.in
resident as a result of transfer of non-deliverable forward contracts cometaxindia.g
Income which vide Income-tax (33rd Amendment) Rules, 2021 [Dated December 10, ov.in/communi
do not form a 2021] cations/notifica
part of Total tion/notificatio
Income The Central Board of Direct taxes notified Income-tax (33rd Amendment)
n-136-
Rules, 2021 further to amend the Income-tax Rules, 1962. In the Income-
tax Rules, 1962, the rule 21AK shall be inserted as follow: 2021.pdf
Rule 21AK: Conditions for the purpose of clause (4E) of section 10:
(1) The income accrued or arisen to, or received by, a non-resident as a
result of transfer of non-deliverable forward contracts under clause (4E)
of section 10 of the Act, shall be exempted subject to fulfillment of the
following conditions:
(i) the non-deliverable forward contract is entered into by the non-

resident with an offshore banking unit of an International Financial
Services Centre which holds a valid certificate of registration granted
under International Financial Services Centres Authority (Banking)
Regulations, 2020 by the International Financial Services Centres
Authority; and
(ii) such contract is not entered into by the non-resident through or on

behalf of its permanent establishment in India.
The offshore banking unit shall ensure that the condition provided in
clause (ii) of sub-rule (1) is complied with.
86. Lesson 3 Income-tax (34th Amendment) Rules, 2021 [Notification No. 138 https://egazette
Dated 27th December, 2021] .nic.in/WriteRe
Income which adData/2021/2
do not form a The Central Board of Direct taxes hereby makes the Income-tax (34th 32154.pdf
part of Total Amendment) Rules, 2021 further to amend the Income-tax Rules, 1962 as
Income follow:
Rules 2DD has been inserted related to Computation of exempt income

of specified fund for the purposes of clause (23FF) of section 10.
Form No. 10-II has been inserted related to Statement of exempt income
under clause (23FF) of section 10 of the Income-tax Act, 1961
87. Lesson 3 Notification No. 1 (Dated 6th January, 2022) https://incomet

axindia.gov.in/
Income which The Central Government notifies, for the purpose of clause (46) of communication
do not form a section 10 of the Income tax Act, 1961, 'Regional Air Connectivity Fund s/notification/n
part of Total Trust' a trust constituted by Central Government, in respect of certain otification-1-
Income specified income arising to the trust subject to fulfilment of certain
2022.pdf
condition.
Accordingly, 'Regional Air Connectivity Fund Trust' can claim

exemption under section 10(46) of the Income Tax Act, 1961 subject to
31
88. Lesson 3 Notification No. 3 (Dated 11th January, 2022) https://incomet
axindia.gov.in/
Income which The Central Government notifies to include ‘International Financial communication
do not form a Services Centres Authority’ Gandhinagar, Gujarat, an authority s/notification/n
part of Total constituted under sub-sections (1) and (3) of section 4 of the International otification-3-
Income Financial Services Centres Authority, Act, 2019, for the purpose of 2022.pdf
clause (46) of section 10 of the Income tax Act, 1961 in respect of certain
specified income arising to the Authority subject to fulfilment of certain
condition.
Accordingly, International Financial Services Centres Authority ' can

claim exemption under section 10(46) of the Income Tax Act, 1961
subject to fulfillment of certain conditions.
89. Lesson 3 Notification No. 5 (Dated 13th January, 2022) https://incometa
xindia.gov.in/co
Income which The Central Government notifies to include ‘Assam Electricity mmunications/n
do not form a Regulatory Commission, constituted by the Government of Assam, for otification/notifi
part of Total the purpose of clause (46) of section 10 of the Income tax Act, 1961 in cation-05-
Income respect of certain specified income arising to the commission subject to 2022.pdf
fulfilment of certain condition.
Accordingly, ‘Assam Electricity Regulatory Commission' can claim

90. Lesson 3 Income Tax 1st Amendment Rules, 2022 [Notification No. 6 Dated https://incometa
14th January, 2022] xindia.gov.in/co
do not form a The Central Board of Direct Taxes (CBDT) on January 14th, 2022 has otification/notifi
part of Total issued the Income Tax (1st Amendment), Rules, 2022 to further amend cation-06-
Income the Income tax Rules, 1962. Through this amendment, CBDT notifies 2022.pdf
new Rule 21AJA, Rule 21AJAA & Form No. 10-IK
The rule shall come into force on April 1, 2022.
New Rule 21AJA specifies that “Computation of exempt income of the

specified fund, attributable to the investment division of an offshore
banking unit, for clause (4D) of section 10 of the Income Tax Act”
New Rule 21AJAA relates to Determination of income of a specified

fund attributable to the investment division of an offshore banking unit
under sub-section (1B) of section 115AD of the Act.
Form No. 10-IK – Annual Statement of Exempt Income: The eligible

investment division needs to furnish an annual statement of exempt
income in Form No. 10-IK electronically under the digital signature on or
before the due date, which is duly verified in the manner indicated
therein.
91. Lesson 4 New Income Tax Rule 8AD on Computation of Capital Gains u/s https://www.inc
Part IV 45(1B) [Notification No. 8 Dated January 18, 2022] ometaxindia.gov
Capital Gains Section 45(1B) provides that when a person receives an amount under .in/communicati
ULIP, to which exemption under Section 10(10D) does not apply, any ons/notification/
32
profits arising from such receipt shall be chargeable to tax under the head notification-8-
capital gains. The CBDT has notified Rule 8AD for computation of 2022.pdf
income deemed as capital gains in such cases.
92. Lesson 3 Notification No. 10 (Dated 21st January, 2022) https://incometa

xindia.gov.in/co
Income which The Central Government notifies, for the purpose of clause (46) of mmunications/n
do not form a section 10 of the Income tax Act, 1961, ‘National Skill Development otification/notifi
part of Total Corporation, a body constituted by Central Government, in respect of cation_no_10_2
Income certain specified income arising to the corporation subject to fulfilment of 022.pdf
certain condition.
Accordingly, ‘National Skill Development Corporation’ can claim

93. Lesson 3 Notification No. 11(Dated 27th January, 2022) https://incometa
xindia.gov.in/co
Income which The Central Government notifies, for the purpose of clause (46) of mmunications/n
do not form a section 10 of the Income tax Act, 1961, "West Bengal Electricity otification/notifi
part of Total Regulatory Commission" a commission constituted by the state cation-11-2022-
Income government of West Bengal, in respect of certain specified income arising new.pdf
to the Commission subject to fulfillment of certain condition.
Accordingly, ‘West Bengal Electricity Regulatory Commission’ can

claim exemption under section 10(46) of the Income Tax Act, 1961
subject to fulfillment of certain conditions.
94. Lesson 3 Guidelines under clause (10D) section 10 of the Income-tax Act, 1961 https://www.inc
(Circular No. 02 Dated 19th January, 2022) ometaxindia.gov
Income which .in/communicati
do not form a Clause (10D) of section 10 of the Income-tax Act, 1961 provides for ons/circular/circ
part of Total income-tax exemption on the sum received under a life insurance policy, ular-2-2022.pdf
Income including any sum allocated by way of bonus on such policy subject to
certain exclusions.
The Finance Act, 2021 amended clause (10D) of section 10 of the Act by
inserting Four provisos (fourth to seventh provisos). Fourth proviso
provides that, with effect from 01.02.2021, the sum received under a Unit
Linked Insurance Policy (ULIP), issued on or after 01.02.2021, shall not
be exempt under the said clause if the amount of premium payable for
any of the previous years during the term of such policy exceeds Rs.
2,50,000. Further, fifth proviso provides that if premium is payable for
more than one ULIP, issued on or after 01.02.2021, the exemption under
the said clause shall be available only with respect to such policies where
the aggregate premium does not exceed Rs. 2,50,000 for any of the
previous years during the term of any of those policies. Sixth proviso
provides that the fourth and fifth provisos shall not apply in case of sum
received on death of the person.
In order to remove difficulties, CBDT has issued the following

guidelines.
Exemption to ULIP receipts u/s 10(10D): Sum received including any

sum allocated by way of bonus (hereinafter referred as “consideration”)
33
during the previous year (hereinafter referred as “current previous year”)
under any one or more ULIPs issued on or after 01.02.2021 (“eligible
ULIP”) shall be exempt under clause (10D) of section 10 of the Act,
subject to the satisfaction of other provisions of said clause. The same are
explained by way of examples of different situations.
95. Lesson 9 CBDT Circular No. 04/2022 for Tax Deduction on Salaries u/s 192 https://incomet
for FY 2021-22 [Dated March 15, 2022] axindia.gov.in/c
Procedural ommunications
Compliances The Central Board of Direct Taxes (CBDT) has released a circular /circular/circul
concerning Tax Deduction at Source (TDS) and Income tax deduction on ar-04-2022.pdf
salaries for the year 2021-22.
The circular provided the rates of the deduction of the income tax via
payment of the income chargeable beneath the head salaries in the FY
2021-22 and elaborates specifically related provisions of the act and the
income tax rules, 1962. The sections and the rules referred to the Income
tax Act 1961 and Income tax Rules 1962 correspondingly unless any
other decision has been given.
Last year, a Circular No. 20/2020 on 03.12.2020 was given in which the
rates of deduction of income-tax from the payment of income beneath the
head Salaries under Section 192 of the Income-tax Act, 1961 (hereinafter
‘the Act’), during the financial year 2020-21 were intimated.
Under section 192(1) of the act, any individual liable for paying any
income chargeable beneath the head salaries will during the payment time
deduct income tax on the amount payable at the average rate of the
income tax calculated on the grounds of the rates towards the fiscal year
where the payment is made, on the estimated income of taxpayer beneath
the head of the salary income for that fiscal year.
96. Lesson 4 Part Relaxation from the requirement of electronic filing of application in https://incomet
III Form No.3CF for seeking approval under section 35(1 )(ii)/(iia)/(iii) axindia.gov.in/c
of the Income-tax Act, 1961 (the Act) [Circular No. 5 Dated March ommunications
PGBP 16, 2022] /circular/circul
ar-no-5-
On consideration of difficulties in electronic filing of Form No.3CF as 2022.pdf
stipulated in Rule 5C (1A) and Rule 5F(2)(aa) of the Income-tax Rules,
1962 w.e.f. 01.04.2021, the Central Board of Direct Taxes (CBDT),
provides the following relaxation:
(i) Applicants seeking approval under section 35(1)(ii)/(iia)/(iii) of the

Act may file the application in Form No.3CF physically during the period
from the date of issuance of this Circular till 30th September 2022; or the
date of availability of Form No. 3CF for electronic filing on the e-filing
website, whichever is earlier.
97. Lesson 9 Condonation of delay under section 119(2)(b) of the Income-tax Act, https://incometa
1961 in filing of Form 10-IC for Assessment Year 2020-21 [Circular xindia.gov.in/co
Procedural No. 6 Dated March 17, 2022] mmunications/ci
Compliances rcular/circular-
CBDT issues Income Tax Circular 06/2022 Dated: 17th March, 2022 to no-6-2022.pdf
34
condone the default in filing Form 10-IC to avail lower tax rate of 22%
under section 115BAA for AY 2020-21. Form 10-IC can now be filed till
30 June 2022, if Income Tax return was originally filed within due date
and the option to avail lower rate was opted in ITR 6.
98. Lesson 9 Clarification with respect to relaxation of provisions of rule 114AAA https://incomet
of Income-tax Rules, 1962 prescribing the manner of making axindia.gov.in/c
Procedural Permanent Account Number (PAN) inoperative [Circular No. 7 ommunications
Compliances Dated March 30, 2022] /circular/circul
ar-no-7-
The Ministry of Finance has extended the deadline for linking PAN Card 2022.pdf
with Aadhaar number till March 31, 2023. The deadline was otherwise set
to end by 31.03.2022. However, a penalty up to Rupees 1000 will be
payable for late linking of PAN-Aadhaar after March 31, 2022. A fee of
Rs 500 will be payable for giving Aadhaar details for up to three months
from April 1, 2022 and a fee of Rs.1000 after that.
A Press Release issued by the Ministry has said that "till 31st March,
2023 the PAN of the assessees who have not intimated their Aadhaar, will
continue to be functional for the procedures under the Act, like furnishing
of return of income, processing of refunds etc".
99. Lesson 9 Extension of time line for electronic filing of Form No.10AB for https://incomet
seeking registration or approval under Section 10(23C), 12A or 80G axindia.gov.in/c
Procedural of the Income tax Act,1961 (the Act) [Circular No. 8 Dated March 31, ommunications
Compliances 2022] /circular/circul
ar-no-8-
On consideration of difficulties in electronic filing of Form No.10AB as 2022.pdf
stipulated in Rule 2C or 11AA or 17A of the Income tax Rules, 1962
w.e.f. 01.04.2021 , the Central Board of Direct Taxes (CBDT), extends
the due date for electronic filing of such Form as under:
(i) The application for registration or approval under Section 10(23C),

12A or 80G of the Act in Form No.10AB, for which the last date for
filing falls on or before 29th September, 2022, may be filed on or before
30th September, 2022.
100. Lesson 4 Part Notification No. 14 [Dated March 3, 2022] https://incomet
III axindia.gov.in/c
The Central Government approves ‘Sri Shankara Cancer Foundation, ommunications
PGBP Bangalore (PAN: AAHTS5593F)’ under the category of ‘University, /notification/no
College or other institution’ for Scientific Research for the purposes of tification-no-
clause (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 14-2022.pdf
read with rules 5C and 5E of the Income-tax Rules, 1962.
This Notification shall apply with effect from the date of publication in
the Official Gazette (i.e. from the Previous Year 2021-22) and
accordingly shall be applicable for Assessment Years 2022-2023 to 2026-
2027.
101. Lesson 10 CBDT notifies Faceless Jurisdiction of Income-tax Authorities https://incomet
Scheme, 2022 [Notification No. 15 [Dated March 28, 2022] axindia.gov.in/c
Assessment, ommunications
Appeals and Section 130 of the Income-tax Act empowers the Central Government to /notification/no
Revision make a scheme for: tification-15-
2022.pdf
35
a) Exercise of all or any of the powers and performance of all or any
of the functions conferred on or assigned to Income-tax
authorities under Section 120; or
b) Vesting the jurisdiction with the Assessing Officer under Section
124; or
c) Exercise of power to transfer cases under Section 127; or
d) Exercise of the jurisdiction in case of change of incumbency
under Section 129
The Central Government has notified the Faceless Jurisdiction of Income-

tax Authorities Scheme, 2022, of the purpose of section 130. The Scheme
is applicable with effect from 28-03-2022.The jurisdiction of the
Assessing Officer shall be vested in a faceless manner through automated
allocation and in accordance with and to the extent provided in:
1. Section 144B with reference to making the faceless assessment of

total income or loss of assessee;
2. The Faceless Appeal Scheme, 2021 with reference to the disposal
of appeals;
3. The Faceless Penalty Scheme, 2021 with reference to the
imposition of penalty under Chapter XXI of the Act;
4. The e-Verification Scheme, 2021 with reference to:
 Calling for information under section 133,

 Collecting certain information under section 133, or
 Calling for information by the prescribed authority under
section 133C, or
 Exercise of power to inspect the register of companies
under section 134, or
 Exercise of power of Assessing Officer under section
135.
5. The e-Settlement Scheme, 2021 with reference to the settlement

of pending applications by the interim Board; and
6. The e-advance rulings Scheme, 2022 with reference to dispute
resolution for persons or class of persons, as specified by the
Board, who may opt for dispute resolution under Chapter XIX-
AA with reference to the dispute arising from any variation in the
specified order fulfilling the specified conditions.
102. Lesson 9 Income-tax (Third Amendment) Rules, 2022 [Notification No. 17 https://incometa
Dated March 29, 2022] xindia.gov.in/co
Compliances The Central Board of Direct Taxes (CBDT) on March 29, 2022 has issued otification/notifi
the Income-tax (Third Amendment) Rules, 2022 to further amend the cation-17-
Income-tax Rules, 1962. This has come into force on April 1, 2022. 2022.pdf
The following has been amended namely:
• In Rule 114 which specify “Application for allotment of a permanent
36
account number.” the following sub-rule (5A) has been inserted namely:
“Every person who, in accordance with the provisions of sub-section (2)

of section 139AA, is required to intimate his Aadhaar number to the
prescribed authority in the prescribed form and manner, fails to do so by
the date referred to in the said sub-section, shall, at the time of subsequent
intimation of his Aadhaar number to the prescribed authority, be liable to
pay, by way of fee a prescribed amount”
• In Rule 114AAA which specify “Manner of making permanent account

number inoperative” the following proviso will be inserted after clause
(2) namely:
“Provided that the provisions of this sub-rule shall have effect from the
date specified by the Board”
103. Lesson 10 e-Assessment of Income Escaping Assessment Scheme, 2022 https://incomet
[Notification No. 18 Dated March 29, 2022] axindia.gov.in/c
Assessment, ommunications
Appeals and The Central Government hereby makes the e-Assessment of Income /notification/no
Revision Escaping Assessment Scheme, 2022. In this Scheme, unless the context tification-18-
otherwise requires, 2022.pdf
(a) Act means the Income-tax Act, 1961;
(b) automated allocationǁ means an algorithm for randomised allocation
of cases, by using suitable technological tools, including artificial
intelligence and machine learning, with a view to optimise the use of
resources.
Scope of the Scheme

(a) assessment, reassessment or recomputation under section 147 of the
Act,
(b) issuance of notice under section 148 of the Act,
shall be through automated allocation, in accordance with risk

management strategy formulated by the Board as referred to in section
148 of the Act for issuance of notice, and in a faceless manner, to the
extent provided in section 144B of the Act with reference to making
assessment or reassessment of total income or loss of assessee.
104. Lesson 10 Faceless Inquiry or Valuation Scheme, 2022 [Notification No. 19 https://incometa
Dated March 30, 2022] xindia.gov.in/co
Appeals and The Central Government hereby makes the Faceless Inquiry or Valuation otification/notifi
Revision Scheme, 2022. In this Scheme, unless the context otherwise requires, cation-19-
(a) “Act” means the Income-tax Act, 1961; 2022.pdf
(b) “automated allocation” means an algorithm for randomised allocation
of cases, by using suitable technological tools, including artificial
intelligence and machine learning, with a view to optimise the use of
resources.
Scope of the Scheme

(a) issuing notice under sub-section (1) of section 142 of the Act,
(b) making inquiry before assessment under sub-section (2) of section
142 of the Act,
37
(c) directing the assessee to get his accounts audited under sub-section
(2A) of section 142 of the Act,
(d) estimating the value of any asset, property or investment by a
Valuation Officer under section142A of the Act,
shall be in a faceless manner, through automated allocation, in

accordance with and to the extent provided in section 144B of the Act
with reference to making faceless assessment of total income or loss of
assessee
105. Lesson 9 Provisions of TCS u/s 206C(1G) not applicable to a non-resident https://incometa
Individual who is visiting India [Notification No. 20 Dated March 30, xindia.gov.in/co
Procedural 2022] mmunications/n
Compliances otification/notifi
Section 206C(1G) provides the collection of tax at source (TCS) from cation-20-
remittance under the Liberalized Remittance Scheme and on sale of an 2022.pdf
overseas tour package. The CBDT has notified that provisions of TCS
under section 206C(1G) shall not apply to an individual who is not a
resident in India under section 6 and who is visiting India.
106. Lesson 3 Notification No. 22 Dated March 31, 2022] https://incomet

axindia.gov.in/c
Income which The Central Government hereby notifies the infrastructure debt fund ommunications
do not form a namely, the ‘the Kotak Infrastructure Debt Fund Limited (PAN : /notification/no
part of Total AAACK5920G)’ for the purposes of the clause (47) of section 10 of tification-22-
Income Income-tax Act, 1961 for the assessment year 2018-19 and subsequent 2022.pdf
years subject to the certain conditions.
107. Lesson 9 Income tax 6th Amendment Rules, 2022 [Notification No. 24 Dated https://incometa
4th April, 2022] xindia.gov.in/co
Compliances CBDT notifies Income Tax Rule 21AAA i.e. Taxation of income from otification/notifi
retirement benefit account maintained in a notified country and FORM cation-24-
No. 10-EE vide Notification No. 24/2022. 2022.pdf
 After rule 21AA which specifies “Furnishing of particulars for

claiming relief” the following new rule 21AAA has been inserted
“Where a specified person has income accrued in a specified
account or accounts, during a previous year relevant to any
assessment year beginning on or after the 1st day of April, 2022,
such income shall, at the option of the specified person, be
included in his total income of the previous year relevant to the
assessment year in which income from the said specified account
or accounts is taxed at the time of withdrawal or redemption, as
the case may be, in the notified country”
 Form No. 10-EE has been inserted under Appendix-II
108. Lesson 10 Income tax 7th Amendment Rules, 2022 [Notification No. 26 Dated https://egazette.
April 5, 2022] nic.in/WriteRe
Assessment, adData/2022/23
Appeals & The Central Board of Direct Taxes hereby makes the Income-tax 4848.pdf
Revision (Seventh Amendment) Rules, 2022 as per which after PART IX-A,
38
PART IX-AA related to Dispute Resolution Committee shall be inserted
as follows:
PART IX-AA DISPUTE RESOLUTION COMMITTEE

Rule 44DAA - Constitution of Dispute Resolution Committee
Rule 44DAB - Application for resolution of dispute before the Dispute
Resolution Committee
Rule 44DAC - Power to reduce or waive penalty imposable or grant
immunity from prosecution or both under the Act
Rule 44DAD - Definitions (Dispute Resolution Committee, Specified
Order, Specified Condition, Specified Person)
FORM NO. 34BC - Application to the Dispute Resolution Committee.
109. Lesson 10 e-Dispute Resolution Scheme, 2022 [Notification No. 27 Dated April https://egazette.
5, 2022] nic.in/WriteRea
Assessment, dData/2022/234
Appeals & The Central Government hereby makes e-Dispute Resolution Scheme, 851.pdf
Revision 2022. The scheme specifies the following:
 Scope and Procedure
 Application for Dispute Resolution and Screening of Application
by Committee
 Procedure to be followed by Dispute Resolution Committee
 Powers of the Dispute Resolution Committee
 Waiver of penalty imposable and Immunity from prosecution
 Appeal or revision
 Authorisation to be filed
 Exchange of communication exclusively by electronic mode
 Authentication and Delivery of electronic record
 No personal appearance before the Dispute Resolution
Committee
 Proceedings not open to the public
 Language of the Dispute Resolution Committee
 Power to specify format, mode, procedure and processes
110. Lesson 3 Notification No. 29 [Dated April 11, 2022] https://incometa
xindia.gov.in/co
Income which The Central Government notifies “The Somnath Temple managed by mmunications/n
do not form a Shree Somnath Trust (PAN: AAATS9555Q)” to be place of historic otification/notifi
part of Total importance and a place of public worship of renown for the purposes of cation-29-
Income clause (b) of sub-section (2) of section 80G of the Income-tax Act, 1961. 2022.pdf
xindia.gov.in/co
Income which The Central Government notifies to include ‘Rajasthan Electricity mmunications/n
do not form a Regulatory Commission’ (PAN AAABR0296D), a Commission otification/notifi
part of Total constituted by the state Government of Rajasthan, for the purposes of the cation-30-
certain specified income arising to that Commission subject to fulfillment
of certain condition.
Accordingly, Rajasthan Electricity Regulatory Commission is notified

for the purpose of claiming exemption under section 10(46) of the
Income tax Act, 1961 subject to certain conditions.
39
xindia.gov.in/co
Income which The Central Government hereby notifies the National Bank for Financing mmunications/n
do not form a Infrastructure and Development, established under section 3 of the otification/notifi
part of Total National Bank for Financing Infrastructure and Development Act, 2021, cation-31-
Income for the purposes of clause (48D) of section 10 of the Income-tax Act, 2022.pdf
1961 for a period of ten consecutive assessment years beginning from the
assessment year 2022-2023.

Part III xindia.gov.in/co
PGBP The Central Government hereby approves ‘Sri Sharada Institute of Indian mmunications/n
Management Research Foundation Trust, New Delhi, (PAN: otification/notifi
AAJTS0088H)’ as ‘other Institution’ under the category of ‘University, cation-33-
College or other institution’ for research in social science or statistical 2022.pdf
research for the purposes of clause (iii) of sub-section (1) of section 35 of
the Income-tax Act, 1961 read with rules 5C and 5E of the Income-tax
Rules, 1962.

xindia.gov.in/co
Income which The Central Government notifies to include ‘Gujarat Real Estate mmunications/n
do not form a Regulatory Authority’ (PAN AAAGG1260R), an Authority constituted otification/notifi
part of Total by the State Government of Gujarat, for the purposes of clause (46) of cation-35-
income arising to that Authority, subject to fulfilment of certain
conditions.
Accordingly, Gujarat Real Estate Regulatory Authority is notified for

xindia.gov.in/co
Income which The Central Government notifies to include ‘SEEPZ Special Economic mmunications/n
do not form a Zone Authority’ (PAN AAALS4995G), an Authority constituted under otification/notifi
part of Total the Special Economic Zone Act, 2005 by the Government of India, for cation-36-
Income the purposes of (46) of section 10 of the Income-tax Act, 1961, in respect 2022.pdf
of the following specified income arising to that Authority, subject to
fulfilment of certain conditions.
Accordingly, SEEPZ Special Economic Zone Authority is notified for

116. Lesson 9 Additional conditions for compulsory filing of Income Tax return https://incometa
[Notification No. 37 Dated April 21, 2022] xindia.gov.in/co
Compliances CBDT has notified additional conditions under section 139(1) of Income otification/notifi
Tax Act 1961 for compulsory return filing which are as follows: cation-37-
2022.pdf
i. if his total sales, turnover or gross receipts, as the case may be, in
the business exceeds sixty lakh rupees during the previous year;
or
40
ii. if his total gross receipts in profession exceeds ten lakh rupees
during the previous year; or
iii. if the aggregate of tax deducted at source and tax collected at
source during the previous year, in the case of the person, is
twenty-five thousand rupees or more; or
iv. the deposit in one or more savings bank account of the person, in
aggregate, is rupees fifty lakh or more during the previous year:

xindia.gov.in/co
Income which The Central Government notifies to include Tamilnadu Construction mmunications/n
do not form a Workers Welfare Board (PAN AAATT9440P), a Board constituted by otification/notifi
part of Total the state Government of Tamil Nadu, for the purposes of clause (46) of cation-47-
income arising to that Board, subject to fulfilment of certain conditions.
Accordingly, Tamilnadu Construction Workers Welfare Board is

notified for the purpose of claiming exemption under section 10(46) of
the Income tax Act, 1961 subject to certain conditions.
118. Lesson 9 Income tax 11th Amendment Rules 2022 [Notification No. 48 Dated https://incometa
April 29, 2022] xindia.gov.in/co
Compliances The Central Board of Direct Taxes has issued the Income-tax (Eleventh otification/notifi
Amendment) Rules, 2022 which provides that following class of persons cation-48-
shall file return of income relating to the assessment year commencing on 2022.pdf
the 1st day of April, 2020 and subsequent assessment years, in the Form
ITR-U Electronically under digital signature.
1. Individual, or Hindu undivided family or a firm or limited
liability partnership or an association of persons or a body of
individuals, whether incorporated or not, or a local authority
or an artificial juridical person in whose case accounts are
required to be audited under section 44AB of the Act or a
Company or a political party required to furnish a return in
Form ITR-7.
2. Individual, or Hindu undivided family, or firm, or limited
liability partnership, or an association of persons or a body of
individuals, whether incorporated or not, or a local authority
or an artificial juridical person.
119. Lesson 3 Income Tax (Thirteenth Amendment) Rules, 2022 [Notification No. https://incometa
50 Dated May 6, 2022] xindia.gov.in/co
do not form a The Central Board of Direct Taxes notified Income Tax (Thirteenth otification/notifi
part of Total Amendment) Rules, 2022. The amendment laid down the formula for cation-no-50-
Income computing infrastructure investments of sovereign wealth funds (SWFs) 2022.pdf
and pension funds that are eligible for income tax incentives, and the
scheme of computation of tax-exempt income attributable to these
investments. Rule 2DCA has been inserted to this effect.
Further, the Rules also state that, for the purpose of valuation, Section 10
of the Income Tax Act, 1961 identifies incomes that are exempted from
such valuation. Where any income is not included in the specified
person’s (Section 10(23FE) income, and where after any previous year if
41
a person fails to meet any of the listed provisions for the valuation of that
income that has to be excluded, it will be taxed as personal income. The
Rules also place the following responsibilities on The Principal Director
General of Income-tax (Systems) or the Director-General of Income-tax
(Systems) to:
i. Specify the procedure, formats and standards for ensuring secure

capture and transmission of the data in Form No. 10BBD.
ii. Specify the procedure, format, data structure, standards and
manner of generation of electronic verification code, referred to
in sub-rule (9), for verification of the person furnishing the said
Form.
iii. Be responsible for evolving and implementing appropriate
security, archival and retrieval policies in relation to the Form No
10BBD so furnished.
The following modifications have also been introduced vide amendments

to Rule 3:
1. Intimation Form (10BBB) has been substituted by the Pension

Fund of investment under Section 10(23FE).
2. Form 10BBC- Certificate of accountant in respect of compliance
to the provisions is substituted by the notified Pension Fund.
3. New Form 10BBD- Statement of eligible investment received has
been inserted.
120. Lesson 3 Guidelines under clause (23FE) of section 10 of the Income-tax Act, https://incometa
1961 [Circular No. 9 Dated May 9, 2022] xindia.gov.in/co
Income which The Ministry of Finance (MoF) has issued the Guidelines under clause mmunications/ci
do not form a (23FE) of section 10 of the Income-tax Act, 1961 to provide for rcular/cicular-9-
part of Total exemption to wholly owned subsidiaries of Abu Dhabi Investment 2022.pdf
Income Authority (ADIA), sovereign wealth funds (SWF) and pension funds (PF)
on their income in the nature of dividend, interest and long-term capital
gains arising from investment made in infrastructure in India, during the
period beginning with April 1, 2020 and ending on March 31, 2024
subject to fulfilment of certain conditions.
Certain Provisions of the Finance Act has been amended to incentivise

infrastructure investments by specified persons in India.
The guidelines are provided under the following headings:
 Transfer of investment within 3 years by the specified person or

AIF/ domestic Company/NBFC
 Eligible infrastructure entity carrying on other businesses as well
 Violation of 50 %, 75 % or 90 % condition as per item (c), (d) or
(e) of sub-clause (iii) of clause (23FE) of section 10 of the Act
 Violation of one or more conditions in clause (23FE) of section
10 of the Act or rules thereunder or under the notification
exempting the specified person under the said clause.
 Computation of the capital gains arising to the specified person
42
on account of the transfer of their holding in domestic company
or non-banking finance company
 Secondary investment in infrastructure companies
 Tax audit
 Quarterly statement of investments
121. Lesson 9 Income Tax (Fifteenth Amendment) Rules, 2022 [Notification No. 53 https://incometa
Dated May 10, 2022] xindia.gov.in/co
Compliances otification/notifi
The Central Board of Direct Taxes has issued the Income–tax (Fifteenth cation-no-53-
Amendment) Rules, 2022 which provides that Principal Director General 2022.pdf
of Income-tax (Systems) or Director General of Income-tax (Systems)
shall lay down the formats and standards along with procedure for
authentication of permanent account number or Aadhaar number.
The amendment clarifies that permanent account number or Aadhaar

number alongwith demographic information or biometric information
of an individual shall be submitted to the Principal Director General of
Income-tax (Systems) or Director General of Income-tax (Systems) or
the person authorised by the Principal Director General of Income-tax
(Systems) or Director General of Income-tax (Systems) with the
approval of the Board, for the purposes of authentication of PAN or
Aadhar Number.
122. Lesson 9 Circular regarding use of functionality under section 206AB and https://incometa
206CCA of the Income-tax Act, 1961 [Circular No. 10 Dated May 17, xindia.gov.in/co
Procedural 2022] mmunications/ci
Compliances rcular/circular-
CBDT issued a Circular to modify the earlier Circular No. 11/2021 dated no-10-2022.pdf
21.06.2021 subsequent to amendments made in section 206AB (for TDS)
and section 206CCA (for TCS) of the Income-tax Act, 1961 (‘Act’) by
the Finance Act, 2022.
This circular is issued to clarify the implementation of the provisions of

section 206AB and section 206CCA of the Act and to ease the
compliance burden of the deductors in applying these provisions.
Highlights of the Circular

 The deductor/collector shall check the status of the deductee at
the beginning of each year.
 The deductee who is marked as ‘filer’ shall remain a filer for the
whole financial year even after the expiry of the due date of
furnishing the return of income for the latest assessment year.
 The status of the deductees who are marked as non-filers are
subject to change and the deductor may recheck their status in the
subsequent deduction.
 In the case of a non-resident who does not have any PE in India is
outside the purview of the provisions of section 206AB and
section 206CCA. However, the online utility does not distinguish
43
between a non-resident who has a PE or does not have a PE in
India, hence, deductors needs to carry out the due diligence
manually in respect of non-residents having PE in India and
deduct the tax accordingly.
 Deductor/collectors are not required to collect any evidence from
the deductee for applying the provisions of section
206AB/206CCA. Compliance as per the information provided by
the online tool is sufficient.
 Section 206AB shall not apply to TDS under section 194S-TDS
on transfer of Virtual Digital Assets.
123. Lesson 10 CBDT notified amendment in Faceless penalty scheme, allowing https://egazette.
Assessment, mandatory personal hearing [Notification No. 54 Dated May 27, nic.in/WriteRea
Appeals and 2022] dData/2022/236
Revision 054.pdf
The Central Board of Direct Taxes (CBDT) has notified the amendment
in the faceless penalty scheme, allowing mandatory personal hearing
through electronic mode to any taxpayer who has sought a hearing.
The amendment has omitted the Regional Faceless Penalty Centre from
the Faceless Penalty Scheme and provides that electronic records shall
be authenticated by the National Faceless Penalty Centre and even
hearing should be done via them and not regional faceless penalty
centre.
The Faceless Penalty (Amendment) Scheme, 2022, notified says that

such hearing will be held exclusively through video conferencing or
video telephony, including use of any telecommunication application
software which supports video conferencing or video telephony.
124. Lesson 10 Notification No. 56 Dated May 28, 2022 https://incometa

Assessment, xindia.gov.in/co
Appeals and The Central Board of Direct Taxes authorises the Assistant Commissioner mmunications/n
Revision of lncome Tax / Deputy Commissioner of Income Tax (International otification/notifi
Taxation), Circle -1(1)(1), Delhi to act as the ' Prescribed Income-tax cation-56-
Authority' for the purpose of issuance of notice under subsection (2) of 2022.pdf
section 143 of the Income Tax Act, 1961.
125. Lesson 10 Income Tax (Sixteenth Amendment) Rules, 2022 [Notification No. 57 https://incometa
Assessment, Dated May 31, 2022] xindia.gov.in/co
Appeals and mmunications/n
Revision The Central Board of Direct Taxes vide notification dated 31st May, 2022 otification/notifi
has issued the Income-tax (Sixteenth Amendment) Rules, 2022 to cation-57-
provides that the form and manner of filing appeal to the High Court 2022.pdf
against a ruling pronounced or order passed by the Board for Advance
Rulings by the assessee, or the Assessing Officer on the directions of the
Principal Commissioner or Commissioner, shall be the same as provided
in the applicable procedure laid down by the jurisdictional High Court for
filing an appeal to the High Court.
44
126. Lesson 3 Notification No. 58 Dated May 31, 2022 https://incometa
xindia.gov.in/co
Income which The Central Government notifies to include ‘National Biodiversity mmunications/n
do not form a Authority’ (PAN AAALN0331K), an Authority established under the otification/notifi
part of Total Biological Diversity Act, 2002, for the purposes of the clause (46) of cation-58-
income arising to that Authority.
Accordingly, National Biodiversity Authority is notified for the purpose

of claiming exemption under section 10(46) of the Income tax Act, 1961
subject to certain conditions.
45

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EXECUTIVE PROGRAMME

(Part I - Direct Tax)

Students appearing in December, 2022 Examination shall note the following:

1. For Direct taxes, Finance Act, 2021 is applicable.

 disclosure pertaining to tax deducted at lower rate

Accordingly, the above documents are required to be furnished while

3. Lesson 9 Clarification in relation to notification issued under clause (v) of https://www.inc

In order to facilitate the process of notification of the SWF, the CBDT

Rule 37BC [Relaxation from deduction of tax at higher rate under

Accordingly, the above amendment has been made in the Income-tax

9. Lesson 10 Notification No. 64/2020 dated August 13, 2020 https://www.inc

Accordingly, the Income-tax Authorities of the National e-Assessment

However representations were received that banks are collecting charges

Accordingly, the Central Board of Direct Taxes 'CBDT' vide its

Accordingly, the L&T Infra Debt Fund (Infrastructure Debt Fund) is

Rule 29B(5) which specifies the validity of the certificate, an

Accordingly, the insurer, which is neither an Indian company nor a

17. Lesson 10 Notification No. 77/2020 (September 25, 2020) https://www.inc

of the Income Tax Act shall apply to the procedure in appeal in

Accordingly, MIC Redwood 1 RSC Limited, Abu Dhabi, United Arab

Accordingly, an employee who spends less than three times of the

In this regard, representations have been received expressing inability to

In order to avoid genuine hardship in such cases, the Board has

The penalty under this scheme shall be imposed in respect of such

The digital Signature of class 2 or class 3 will be used for Signing of e-

Accordingly, Haryana State Pollution Control Board can claim

The Board has received various representations requesting for relaxation

1. Short stay will not result into Indian residency

i. whether any relaxation is required to be provided in this matter;

Therefore, if any individual is facing double taxation even after taking

The manner of computation of such annual accretion in the provident and

In view of the prevailing situation due to COVID-19 pandemic across the

 Amends Rule 5C, Inserts Rule 5CA Intimation under Fifth

i. Inserted a proviso to Rule 2DB(ii) with respect to condition of

Sub-Rule 1B: Where an exemption is claimed and allowed, shall have

49. Lesson 3 CBDT notifies following entities as Sovereign Wealth Fund -

Accordingly, the following entities have been notified as specified

Accordingly, the following entities have been notified as specified

Accordingly, M/s Indian Institute of Technology, Bhilai will be

The deductor at the time of preparing statements of tax deducted shall

The notification mandates the deductor at the time of preparing

Accordingly, Competition Commission of India can claim exemption

According to the interpretation of the new sections, the tax deductor or

It has been represented that there are practical difficulties in

Accordingly, the CBDT issued guidelines which, at some places have

Form No. 5C shall be furnished electronically either under digital

Accordingly, CBDT issued guidelines for application of section 9B and

Accordingly, Haryana Building and Other Construction Workers

Accordingly, M/s Patanjali Research Foundation Trust will be

Accordingly, Haryana Labour Welfare Board can claim exemption

Accordingly, Himachal Pradesh Computerization of Police Society can

Through this amendment, in Rule 12 which relates to ‘Return of

Rule 132 provides for electronic furnishing of any forms, returns,

 Under digital signature in cases where, the return of income is

Further, The Principal Director General of Income-tax (Systems) or the

1. Specify the forms, returns, statements, reports, orders, which are

Accordingly, 2726247 Ontario Inc. will be specified person for section

Accordingly, National Council of Science Museums can claim

Accordingly, Real Estate Regulatory Authority can claim exemption