Income-tax (11th Amendment) Rules, 2019

Oct 03, 2019 | by Avantis RegTech Legal Research Team


The Central Board of Direct Taxes (CBDT) on September 30, 2019, has published the Income-tax (11th Amendment) Rules, 2019 to further amends Rule 10CB of the Income-tax Rules, 1962, which talks about the Computation of interest income pursuant to secondary adjustments.

Under Rule 10CB:

Ø  for the words “excess money” occurring at both the places, the words “excess money or part thereof” shall be substituted;

Ø  Under sub-rule (1):

                     i.   Clause (iii) has been substituted, namely: in a case where primary adjustment to transfer price is determined by an advance pricing agreement entered into by the assessee under section 92CC of the Act in respect of a previous year:

(a)    from the date of filing of return under sub-section (1) of section 139 of the Act if the advance pricing agreement has been entered into on or before the due date of filing of return for the relevant previous year;

(b)    from the end of the month in which the advance pricing agreement has been entered into if the said agreement has been entered into after the due date of filing of return for the relevant previous year.

                   ii. Clause (v) has been substituted, namely: from the date of giving effect by the Assessing Officer under rule 44H to the resolution arrived at under mutual agreement procedure, where the primary adjustment to transfer price is determined by such resolution under a Double Taxation Avoidance Agreement entered into under section 90or section 90A of the Act.

Ø  after sub-rule (2), sub-rule (3) has been inserted, which specifies that the interest referred to in sub-rule (2) shall be chargeable on excess money or part thereof which is not repatriated in certain cases.

They will come into force with effect from the date of the publication in the Official Gazette (September 30, 2019).

[Notification No. G.S.R. 701(E)]

 


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