Amendment in Substitution of Rule 28AA and Form No. 13 in Appendix II and Rule 31A Notification Issued On 29-3-2011

In exercise of the powers conferred by section 295 of the Income ‐ tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income ‐ tax Rules, 1962, namely: ‐

1. (1) These rules may be called the Income ‐ tax (Second Amendment) Rules, 2011.

(2) They shall come into force on the 1st day of April, 2011.

2. In the Income-tax Rules, 1962, –

 (a)  For rule 28AA, the following rule shall be substituted, namely:-

“28AA. Certificate for deduction at lower rates or no deduction of tax from income other than dividends.—(1) Where the Assessing Officer, on an application made by a person under sub-rule (1) of rule 28 is satisfied that existing and estimated tax liability of a person justifies the deduction of tax at lower rate or no deduction of tax, as the case may be, the Assessing Officer shall issue a certificate in accordance with the provisions of sub-section (1) of section 197 for deduction of tax at such lower rate or no deduction of tax.

(2) The existing and estimated liability referred to in sub-rule (1) shall be determined by the Assessing Officer after taking into consideration the following:-

  (i)  tax payable on estimated income of the previous year relevant to the assessment year;

 (ii)  tax payable on the assessed or returned income, as the case may be, of the last three previous years;

(iii)  existing liability under the Income-tax Act, 1961 and Wealth-tax Act, 1957;        

(iv)  advance tax payment for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28;

 (v)  tax deducted at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28; and

(vi)  tax collected at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28.

(3) The certificate shall be valid for such period of the previous year as may be specified in the certificate, unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period.

(4) The certificate shall be valid only with regard to the person responsible for deducting the tax and named therein.

(5) The certificate shall be issued direct to the person responsible for deducting the tax under advice to the person who made an application for issue of such certificate.”

 (b)  in rule 31A, in sub-rule (4), after clause (iv), the following clauses shall be inserted, namely:-

“(v) furnish particulars of amount paid or credited on which tax was not deducted in view of the issue of certificate of no deduction of tax under section 197 by the Assessing Officer of the payee;

(vi) furnish particulars of amount paid or credited on which tax was not deducted in view of the compliance of provisions of sub-section (6) of section 194C by the payee.”

  (c)  in Appendix-II, for Form No.13, the following Form shall be substituted, namely:-

“FORM NO. 13

[See rules 28 and 37G]

Application by a person for a certificate under sections 197 and/or 206C (9) of the Income-tax Act, 1961, for no *deduction/collection of tax or *deduction/

collection of tax at a lower rate

To

The Assessing Officer,

____________________

____________________

____________________

 
 

1. *I,_________________________________________________of___________________do, hereby, request that a certificate may be issued to the person responsible for paying to me the incomes/sum by way of salary/interest on securities/interest other than “interest on securities”/insurance commission/commission (not being insurance commission) or brokerage/commission, etc., on the sale of lottery tickets/fees for professional or technical services/any sum by way of payment to contractors and sub-contractors/dividends/rent/income in respect of units/sum by way of payment of compensation on acquisition of immovable property (strike out whichever is not applicable) authorizing him not to deduct income-tax/to deduct income-tax at the rate of____________per cent at the time of payment to me of such income/sum. The particulars of my income and other details are as per para 2.

and/or

*I,____________________________________________of__________________________________do, hereby, request that a certificate may be issued to the seller, being the person responsible for collecting the tax from me in respect of the amount payable by me as the buyer of _____________________ [specify the nature of goods referred to in the Table in sub-section (1) of section 206C]/lessee or licensee of _______________________________________________________ [specify the nature of contract or licence or lease referred to in the Table in sub-section (1C) of section 206C] (Strike out whichever is not applicable) authorizing him to collect income-tax at the rate of _____________________________ per cent at the time of debit of such amount to my account or receipt thereof from me, as the case may be. The particulars of my income and other details are as per para 2.

2. The particulars of my income and other details are as under:

  (i)   Status

        (State whether individual, Hindu undivided family, firm, body of individuals, Company, etc.)

 (ii)  Residential status

        (Whether resident / resident but not ordinarily resident/non-resident)

(iii)   Permanent Account No. (PAN)

 (iv)  Tax Deduction and Collection Account No. (TAN)

  (v)  Details of returns/statements which have become due but have not been filed:

Section under which return/statement has become due

Assessment year/ quarter

Due date for filing

Reason for not filing

(1)

(2)

(3)

(4)

Section 139

  

  

  

Section 200

  

  

  

Section 206C

  

  

  

 (vi)   Details of returned income/ assessed income for the last three assessment years:

        (enclose copies of returns of income filed alongwith their enclosures and copies of assessment orders, if assessed, for the last three assessment years.)

Assessment year

Total income as per return of income

Total income as per latest assessment

Total tax including interest payable on returned income

Total tax including interest payable on assessed income

(1)

(2)

(3)

(4)

(5)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

(vii)   Details of tax payment for the last three assessment years:

  
 

Assessment year

Total payment of tax including interest

Tax paid by way of Advance tax

Credit claimed for tax deduction at source

Credit claimed for tax collection at source

Tax paid by way of self assessment tax

Tax paid in response to notice of demand under section 156

(1)

(2)

(3)

(4)

(5)

(6)

(7)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

(viii)Details of sales, profit, etc. for the last three previous years in the case of assessee whose income include income under the head “Profits and gains of business or profession”: (enclose copies of profit and loss account and balance sheet along with audit report, if audited, for the last three previous years)

Previous year

Gross sales, turnover receipt of business or profession

Gross profit

Net profit

In rupees

In percentage to amount stated in column (1)

In rupees

In percentage to amount stated in column (1)

(1)

(2)

(3)

(4)

(5)

(6)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 (ix)   Details of existing liability under Income-tax Act, 1961 and Wealth-tax Act, 1957:

Assessment Year/ period

Liability under the Income-tax Act, 1961

  

Amount payable under the Wealth-tax Act, 1957

Amount payable in respect of advance-tax

Amount payable for self- assessment tax

  

Amount for which notice of demand under section 156 has been served but not paid

Amount payable as deductor or collector which had become due but not paid.

(1)

(2)

(3)

(4)

(5)

(6)

  

  

  

  

  

 
 

  

  (x)   Assessment year to which the payments relate

 (xi)   Estimated total income of the previous year relevant to the assessment year referred to in (x) above (give detailed computation and basis thereof)

(xii)  Total tax including interest payable on the income at (xi)

(xiii) How the liability mentioned in col. (ix) and col. (xii) is proposed to be discharged?

(xiv)  Details of payment of advance-tax and tax already deducted/collected for the assessment year relevant to the current previous year till date.

Nature of prepaid tax

Date of payment/deduction/collection

Advance tax

  

TDS

  

TCS

  

(xv)  Details of income claimed to be exempt and not included in the total income in col. (xi) (Please append a note giving reason for claiming such exemption).

(xvi)  Please furnish the particulars in Annexure-I in respect of no deduction of tax or deduction of tax at a lower rate under section 197 and/or in Annexure-II for collection of tax at lower rate under section 206C(9) of the Income-tax Act, as the case may be.

*I,________________________________________________ the trustee/co-trustee of____________________________________do hereby declare that the securities/sums/shares, particulars of which are given in the Annexure, are properly held under trust wholly for charitable or religious purposes and that the income therefrom qualifies for exemption under sections 11 and 13 of the Income-tax Act, 1961.

*I declare that the securities/sums/shares, particulars of which are given in the Schedules above, stand in my name and are beneficially owned by me, and the income therefrom is not includible in the total income of any other person under sections 60 to 64 of the Income-tax Act, 1961.

I further declare that what is stated in this application is correct.

Date________________

_____________________

  

Signature

Place________________

_____________________

  

Address

*Strike out whichever is not applicable.

 
 

ANNEXURE I

[For the purpose of tax deduction at source]

Please furnish the particulars with the Schedules below in respect of the payments for which the certificate is sought.

SCHEDULE I

  
 

Description of

securities

  

Number of

securities

  

Date of securities

Amount of securities

Estimated amount of

interest to be received

  

(1)

(2)

(3)

(4)

(5)

  

  

  

  

 
 

  

 
 

SCHEDULE II

  
 

Sl.

No.

  

Name and

address of

the person

to whom

the

sums are

given on

Interest

  

Amount

of

such sums

  

The date

on which

such

sums were

given on

interest

  

Period for

which

such

sums were

given on

Interest

  

Rate of

interest

  

Estimated

amount of

interest

to be

received

  

(1)

(2)

(3)

(4)

(5)

(6)

(7)

  

  

  

  

  

  

 
 

  

 
 

SCHEDULE III

  
 

Sl.

No

Name and address of person responsible for paying insurance commission

  

Estimated amount of insurance commission

  

(1)

(2)

(3)

  

  

 
 

  

 
 

SCHEDULE IV

  
 

Sl.

No.

  

Name and

address

of the

company

  

No. of

shares

  

Class of

shares and

face value

of each

share

  

Total face

value of

shares

  

Distinctive

numbers of

shares

  

Estimated amount

of dividend to be

received

  

(1)

(2)

(3)

(4)

(5)

(6)

(7)

  

  

  

  

  

  

 
 

  

 
 

SCHEDULE V

  
 

Sl

No.

  

Name and

address of the

employer

  

Period of

employment

  

Amount of salary

received

  

Income from

house

property

  

Income from

sources other

than salary and

income from

house property

  

Estimated total

income

  

(1)

(2)

(3)

(4)

(5)

(6)

(7)

  

  

  

  

  

  

 
 

  

 
 

SCHEDULE VI

  
 

Sl. No.

Name and address of person responsible for paying rent

Estimated amount of rent to be

received

  

(1)

(2)

(3)

  

  

 
 

  

 
 

SCHEDULE VII

 
 

  
 

Sl.

No.

  

Name and

Address

of the

mutual

fund

  

No. of

units

  

Classes of

units and

face value

of each

unit

  

Total face

value of

units

  

Distinctive

Numbers

of units

  

Estimated amount

of income to be

received

  

(1)

(2)

(3)

(4)

(5)

(6)

(7)

  

  

  

  

  

  

 
 

  

 
 

SCHEDULE VIII

  
 

Sl.

No.

  

Name and address of person responsible for paying commission (not being insurance commission referred to in section194D) or brokerage.

  

Estimated amount of commission (not being insurance commission referred to in section194D) or brokerage to be received

  

(1)

(2)

(3)

  

  

 
 

  

 
 

SCHEDULE IX

  
 

Sl. No.

Full name and address of the authority/person with whom the contract was made

Date of the contract

Nature of the contract

Date by which work on the contract would be completed

Sums expected to be credited/paid in pursuance of the contract during the current previous year and each of the three immediately succeeding years

(1)

(2)

(3)

(4)

(5)

(6)

  

  

  

  

  

 
 

  

 
 

SCHEDULE X

  
 

Sl.

No.

  

Name and address of person(s) responsible for paying commission, remuneration or prize (by whatever name called) on the sale of lottery tickets

Estimated amount of commission/remuneration/prize to be received(strike out whichever is not applicable)

(1)

(2)

(3)

  

  

 
 

  

 
 

SCHEDULE XI

  
 

Sl.

No.

  

Name and address of person(s) responsible for paying fees for professional/technical services

Estimated amount of fees for professional/technical services to be received (strike out whichever is not applicable)

(1)

(2)

(3)

  

  

 
 

  

 
 

SCHEDULE XII

  
 

Sl.

No.

  

Name and address of person responsible for

paying compensation or enhanced

compensation or the consideration or

enhanced consideration

on account of compulsory acquisition

of immovable property

  

Estimated amount of compensation

or the enhanced compensation or

consideration or the enhanced

consideration

  

(1)

(2)

(3)

  

  

 
 

  

  
 

Date________________

_____________________

  

Signature

Place________________

_____________________

  

Address

 
 

ANNEXURE II

[For the purpose of tax collection at source]

Please furnish particulars of the amounts payable in respect of which the certificate is sought in the schedules below:-

SCHEDULE I

  
 

Sl.

No.

  

Full name and

address of

the seller

  

Date of sale with

reference

number of

such sale

Nature and

description of

the goods sold

and details

of sale

  

Amounts expected to be

debited/ paid in pursuance

of the sale during the

current financial year and

each of the three

immediately succeeding

years.

  

(1)

(2)

(3)

(4)

(5)

  

  

  

  

 
 

  

 
 

SCHEDULE II

  
 

Sl. No.

Full name and address of the person granting lease or licence

Date of grant of lease or licence or contract or transfer of right with reference number

Nature of contract or licence or lease and description and details of the contract

Amounts expected to be debited/ paid in pursuance of the contract during the current financial year and each of the three immediately succeeding years.

(1)

(2)

(3)

(4)

(5)

  

  

  

  

 
 

  

 
 

  
 

Date________________

________________________

  

Signature of the buyer

  

Full Name______________

  

Designation____________”

 

Reference: Rule 28AA of the income Tax Rules, 1962

Certificate for deduction at lower rates or no deduction of tax from income other than dividends

(1) Where the Assessing Officer, on an application made by a person under sub-rule (1) of rule 28 is satisfied that existing and estimated tax liability of a person justifies the deduction of tax at lower rate or no deduction of tax, as the case may be, the Assessing Officer shall issue a certificate in accordance with the provisions of sub-section (1) of section 197 for deduction of tax at such lower rate or no deduction of tax.

(2) The existing and estimated liability referred to in sub-rule (1) shall be determined by the Assessing Officer after taking into consideration the following:—

 (i)  tax payable on estimated income of the previous year relevant to the assessment year;

(ii)  tax payable on the assessed or returned income, as the case may be, of the last three previous years;

(iii)  existing liability under the Income-tax Act, 1961 and Wealth-tax Act, 1957;

(iv)  advance tax payment for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28;

(v)  tax deducted at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28; and

(vi)  tax collected at source for the assessment year relevant to the previous year till the date of making application under sub-rule (1) of rule 28.

(3) The certificate shall be valid for such period of the previous year as may be specified in the certificate, unless it is cancelled by the Assessing Officer at any time before the expiry of the specified period.

(4) The certificate shall be valid only with regard to the person responsible for deducting the tax and named therein.

(5) The certificate shall be issued direct to the person responsible for deducting the tax under advice to the person who made an application for issue of such certificate.

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