Handbook To INCOME TAX RULES

Description

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Detailed Contents
Division 1
Checklists & Tables 1
1 Prescribed Authorities under the Income-tax Rules/Act 3
2 Prescribed Audit Reports under the Income-tax Rules/Act 7
3 Prescribed Reports/Certificates from an Accountant under section 288(2), Explanation 9
4 Prescribed Applications, Notices, Declarations, Forms, etc. under the Income-tax Rules/Act 11
5 Prescribed certificates/statements/particulars to be furnished under the Income-tax Rules/Act 16
6 Prescribed Returns under the Income-tax Rules/Act 20
Division 2
Procedures, Conditions and Compliances under the Income-tax Rules/Act 25
1. Rule 2A/Section 10(13A): WHAT ARE THE PRESCRIBED LIMITS FOR EXEMPTION FROM HOUSE RENT ALLOWANCE? 27
1. Scope of deduction 27
2. When accommodation is situated in metros 27
3. When accommodation is situated in a place other than metros 27
4. Salary, meaning of 27
5. Bonus or salary not includible 27
6. Relevant period 27
7. Illustrations 28
8. Judicial interpretation 31
Annexures 32
2. Rule 2B/Section 10(5): WHAT ARE THE PRESCRIBED CONDITIONS FOR CLAIMING EXEMPTION FROM LEAVE TRAVEL CONCESSIONS? 36
1. Scope of deduction 36
2. Expenditure incurred on family allowable 36
3. Two journeys in a block of four calendar years 36
4. Quantum of deduction 37
5. Exemption available only in respect of two children 37
6. Fixed leave travel allowance is not subjected to exemption 38
7. Judicial interpretations 38
3. Rule 2BA/Section 10(10C): WHAT ARE THE PRESCRIBED GUIDELINES FOR CLAIMING EXEMPTION IN RESPECT OF AMOUNT RECEIVED AT THE TIME OF VOLUNTARY RETIREMENT/SEPARATION BY AN EMPLOYEE? 39
1. Category of employer 39
2. Notified institution 39
3. Requirements of VRS 39
4. Exemption allowable only once 40
5. Constitutionality 40
6. Illustration 40
7. Judicial interpretation 41
Annexures 42

4. Rule 2BB/Section 10(14): WHAT ARE THE PRESCRIBED ALLOWANCES WHICH ARE EXEMPT FROM INCOME-TAX UPTO PRESCRIBED LIMITS? 46
1. Prescribed allowances under section 10(14)(i) 46
2. Prescribed allowances under section 10(14)(ii) 46
3. Employee exercising option under section 115BAC(5) 49
4. Judicial interpretation 49
Annexure 50
5. Rule 2BBA/Section 10(19): WHAT ARE THE CIRCUMSTANCES AND CONDITIONS FOR EXEMPTION UNDER SECTION 10(19)? 51
1. Family pension of member of armed forces exempt 51
2. Circumstances and conditions for the purposes of section 10(19) 51
3. Death certificate by Head of the Department 51
6. Rule 2BBB/Section 10(23C): WHAT IS THE PERCENTAGE OF GOVERNMENT GRANT FOR CONSIDERING UNIVERSITY, HOSPITAL, ETC. AS SUBSTANTIALLY FINANCED BY THE GOVERNMENT 52
7. Rule 2BC/Sections 10(23C)(iiiad) and 10(23C)(iiiae): WHAT ARE THE PRESCRIBED MONETARY LIMITS UNDER SUB-CLAUSES (iiiad) AND (iiiae) OF CLAUSE (23C) OF SECTION 10? 53
1. Scope of deduction 53
2. Prescribed Monetary Limits 53
8. Rule 2C/Sections 10(23C)(iv) and 10(23C)(v) HOW TO MAKE AN 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 SECTION 10(23C) 54
1. Form of application 54
2. Documents accompanying the application 54
3. Forms to be furnished electronically 55
4. Verification of forms 55
5. Approval of application in Form No. 10A 55
6. Cancellation of approval 55
7. Provisional approval 55
8. Approval of application in Form No. 10AB 56
9. Form, data structure, standards and procedure 56
Annexures 57
9. Rule 2DCA/Section 10(23FE): HOW TO COMPUTE MINIMUM INVESTMENT AND EXEMPT INCOME FOR THE PURPOSE OF SECTION 10(23FE) 61
10. Rule 2DD/Section 10(23FF): HOW TO CALCULATE EXEMPT INCOME OF SPECIFIED FUND FOR THE PURPOSE OF SECTION 10(23FF) 66
1. Computation of income 66
2. Annual statement of exempt income 66
3. Certificate by an accountant 66
4. Procedure for filing of Forms 66
5. Meaning of certain terms 67

11. Rule 2F/Section 10(47): WHAT ARE THE GUIDELINES FOR SETTING UP AN INFRASTRUCTURE DEBT FUND? 68
1. Setting up of infrastructure debt fund 68
2. Investment of Infrastructure Debt Fund 68
3. Issue of bonds 68
4. Terms and Conditions of Bonds 68
5. Maturity of bonds in case of non-resident 68
6. External Commercial Borrowings by the Infrastructure Debt Fund 68
7. Investment ceiling 68
8. Return of income 69
9. Consequence of non-fulfilment of conditions 69
10. Meaning of certain terms 69
12. Rule 3/Section 17: WHAT ARE THE RULES FOR VALUATION OF PERQUISITES? 70
(A) Rent free residential accommodation 70
(B) Value of perquisites provided by way of use of motor car to an employee by an employer 73
(C) Provision by the employer of services of a sweeper, a gardener, a watchman or personal attendant 75
(D) Value of benefit to the employee resulting from the supply of gas, electric energy or water for household consumption 75
(E) Valuation in respect of free or concessional educational facilities to any member of employee’s household 76
(F) Valuation of free personal or private journey 76
(G) Valuation of other fringe benefits or amenities 76
Annexures 83
13. Rule 3A/Section 17(2), proviso (ii)(b): WHAT ARE THE PRESCRIBED GUIDELINES FOR CLAIMING EXEMPTION OF MEDICAL BENEFITS FROM PERQUISITE VALUE IN RESPECT OF MEDICAL TREATMENT OF PRESCRIBED DISEASES OR AILMENTS IN HOSPITALS APPROVED BY
THE CHIEF COMMISSIONER? 94
1. Scope of deduction 94
2. Requirements for approval of hospital 94
3. Prescribed diseases or ailments 95
4. ‘Qualified doctor’, meaning of 96
5. ‘Nurse’, meaning of 96
6. “Surgical operation”, meaning of 96
14. Rule 3B/Section 17(2)(viia): HOW TO CALCULATE ANNUAL ACCRETION REFERRED TO IN SECTION 17(2)(viia) OF INCOME TAX ACT, 1961 97
15. Rule 4/Explanation below section 23(1): WHAT ARE THE PRESCRIBED CONDITIONS FOR CLAIMING BENEFIT OF UNREALISED RENT? 98
1. Scope 98
2. Conditions to be fulfilled 98
16. Rule 5(2)/Section 32: WHAT ARE THE RULES FOR CLAIMING DEPRECIATION AND THE PRESCRIBED CONDITIONS FOR CLAIMING HIGHER RATE OF DEPRECIATION? 99
1. Conditions for higher depreciation 99
2. Judicial interpretation 99
3. Illustration 104
Annexures 105
17. Rule 5AC/Section 33AB: WHAT ARE THE PRESCRIBED GUIDELINES FOR REPORT OF AUDIT OF ACCOUNTS TO BE FURNISHED UNDER SECTION 33AB(2)? 120
1. Scope of deduction 120
2. Form of Audit Report 120
18. Rule 5AD/Section 33ABA: WHAT ARE THE PRESCRIBED GUIDELINES FOR REPORT OF AUDIT OF ACCOUNTS TO BE FURNISHED UNDER SECTION 33ABA(2)? 121
1. Scope of deduction 121
2. Form of audit report 121
19. Rule 5C/Sections 35(1)(ii) and 35(1)(iii): WHAT ARE THE GUIDELINES, FORM AND MANNER IN RESPECT OF APPROVAL UNDER SECTION 35(1)(ii) AND 35(1)(iii)? 122
1. Application for approval 122
2. Form No. 3CF to be furnished electronically 122
3. Verification of Form No. 3CF 122
4. Form, data structure, standards and procedures 122
5. Annexure to the application 122
6. Copy of application to be send to Member (IT), CBDT 122
7. Time limit for approval or rejection of application 122
8. Deficiency letter for removal of defect 123
9. Removal of deficiency 123
10. Order treating application as invalid 123
11. Grant of approval or rejection 123
12. Calling for documents or information 123
13. Notification for granting approval 123
14. Withdrawal of approval 123
15. Opportunity of being heard 124
16. Order invalidating or rejecting the application 124
20. Rule 5CA/5th proviso to section 35(1): HOW TO MAKE INTIMATION BY A RESEARCH ASSOCIATION, UNIVERSITY, COLLEGE OR OTHER INSTITUTION 125
1. Intimation by a research association, university, college or other institution 125
2. Documents accompanying the application 125
3. Form to be furnished electronically 125
4. Verification 125
5. Issue of Unique Registration Number (URN) 125
6. Cancellation of Unique Registration Number 125
7. Data structure, standards and procedure of furnishing and verification of Form 126
21. Rule 5D/Section 35(1)(ii): WHAT ARE THE CONDITIONS SUBJECT TO WHICH APPROVAL IS TO BE GRANTED TO A RESEARCH ASSOCIATION UNDER SECTION 35(1)(ii)? 127
1. Sole object of the applicant research association 127
2. Research association to carry research itself 127
3. Books of accounts to be audited 127
4. Separate statement of donations received and amount applied 127
5. Statement to Commissioner or Director 127
6. Consequence of failure by research association 127

22. Rule 5E/Sections 35(1)(ii) and 35(1)(iii): WHAT ARE THE CONDITIONS SUBJECT TO WHICH APPROVAL IS TO BE GRANTED TO A UNIVERSITY, COLLEGE OR OTHER INSTITUTION UNDER SECTION 35(1)(ii) AND 35(1)(iii)? 129
1. Utilisation of funds 129
2. Research through faculty members or students 129
3. Books of accounts 129
4. Statement of donations received and amount used 129
5. Statement to Commissioner or Director 129
6. Consequence of failure 129
23. Rule 5F/Section 35(1)(iia): WHAT ARE THE GUIDELINES AND WHO IS THE PRESCRIBED AUTHORITY FOR APPROVAL UNDER SECTION 35(1)(iia)? 131
1. Prescribed authority 131
2. Guidelines, form and manner in respect of approval 131
3. Approval to a company 132
24. Rule 5G/Section 115BBF WHICH IS THE OPTION FORM FOR TAXATION OF INCOME FROM PATENT 134
1. Option for taxation of income 134
2. Furnishing of form 134
3. Procedures, formats and standards 134
25. Rule 6/Section 35(2AA): WHAT IS THE PROCEDURE FOR APPROVAL OF PROGRAMME FOR SCIENTIFIC RESEARCH EXPENDITURE? 135
1. Scope of deduction 135
2. Procedure to be followed 135
26. Rule 6/Section 35(2AB): WHAT IS THE PROCEDURE FOR APPROVAL OF PROGRAMME FOR SCIENTIFIC RESEARCH PROGRAMME IN CASE OF A COMPANY ENGAGED IN THE BUSINESS OF MANUFACTURE OR PRODUCTION OF SPECIFIED ITEMS? 138
1. Scope of deduction 138
2. Agreement to be entered with prescribed authority 138
3. Prescribed authority 138
4. Form of application 138
5. Order to be in writing 138
6. Conditions for approval 138
Annexure 140
27. Rule 6AAD/6AAE/Section 35CCC: WHAT ARE THE GUIDELINES FOR APPROVAL OF AGRICULTURAL EXTENSION PROJECT UNDER SECTION 35CCC 141
1. Conditions for notifications of agriculture extension project 141
2. Application in Form No. 3C-O 141
3. Documents accompanying application 141
4. Intimation of defect 141
5. Removal of defect 141
6. Notification of agricultural extension project 142
7. Application for Notification for a further period 142
8. Report of fulfilment of conditions 142
9. Notification for further period 142
10. Circulation of notification 142
11. Rescission of notification 142
12. Opportunity of being heard 142
13. Circulation of order 142
14. Books of account to be audited 143
15. Audit report 143
16. Assessee not to accept excess amount 143
17. Assessee not to get direct or indirect benefit 143
18. Expenses eligible for deduction 143
19. Furnishing documents to Commissioner or Director 143
20. Report after making appropriate enquiries 144
28. Rule 6AAF/6AAG/6AAH: WHAT ARE THE GUIDELINES/ CONDITIONS FOR APPROVAL OF SKILL DEVELOPMENT PROJECT UNDER SECTION 35CCD 145
1. Guidelines for skill development project 145
2. Conditions after approval 146
3. Meaning of certain terms 147
29. Rule 6AB/Sections 35D and 35E: WHAT IS THE PRESCRIBED FORM OF AUDIT REPORT FOR CLAIMING DEDUCTIONS UNDER SECTIONS 35D AND 35E? 150
1. Scope of deduction 150
2. Form of audit report 150
30. Rule 6ABA/Section 36(1)(viia): WHAT IS THE METHOD FOR COMPUTATION OF AGGREGATE AVERAGE ADVANCES FOR THE PURPOSES OF SECTION 36(1)(viia) OF INCOME-TAX ACT, 1961? 151
Manner of computation 151
Judicial interpretation 151
31. Rule 6ABBA WHAT ARE THE OTHER ELECTRONIC MODES OF PAYMENT UNDER SPECIFIED PROVISIONS OF INCOME TAX ACT, 1961 152
32. Rule 6ABBB/Section 35D: HOW TO FURNISH STATEMENT REGARDING PRELIMINARY EXPENSES UNDER SECTION 35D 153
33. Rule 6ABAA/Section 36(1)(viii): WHAT ARE THE CONDITIONS TO BE FULFILLED BY A PUBLIC FACILITY TO BE ELIGIBLE TO BE NOTIFIED AS AN INFRASTRUCTURE FACILITY? 154
34. Rule 6DD/Section 40A(3): WHAT ARE CASES AND CIRCUMSTANCES IN WHICH A PAYMENT OR AGGREGATE OF PAYMENTS EXCEEDING TEN THOUSAND RUPEES MAY BE MADE TO A PERSON IN A DAY, OTHERWISE THAN BY AN ACCOUNT PAYEE CHEQUE DRAWN ON A BANK OR ACCOUNT PAYEE BANK DRAFT OR USE OF ELECTRONIC CLEARING SYSTEM THROUGH A BANK ACCOUNT OR THROUGH SUCH OTHER ELECTRONIC MODE AS PRESCRIBED IN RULE 6ABBA 155
1. Scope of deduction 155
2. Disallowance when not made 155
3. Judicial interpretation 156
4. Constitutionality 158
Annexures 159
35. Rule 6DDC and 6DDD: WHAT CONDITIONS A RECOGNISED ASSOCIATION IS REQUIRED TO FULFIL TO BE NOTIFIED AS A RECOGNISED ASSOCIATION FOR THE PURPOSES OF CLAUSE (e) OF PROVISO TO SECTION 43(5) 174
1. Conditions to be fulfilled 174
2. Application for notification 174
3. Documents accompanying application 174
4. Celling for more information 175
5. Application to be accepted or rejected 175
6. Period of effective notification 175
36. Rule 6E/Rule 5(c) of First Schedule: WHAT ARE THE PRESCRIBED LIMITS OF RESERVE FOR UNEXPIRED RISKS IN CASE OF INSURANCE BUSINESS (OTHER THAN LIFE INSURANCE)? 176
1. Limits of reserve for unexpired risks 176
37. Rule 6EB/Section 43D: WHAT ARE THE CATEGORIES OF BAD OR DOUBTFUL DEBTS IN THE CASE OF A PUBLIC COMPANY UNDER SECTION 43D(b) OF INCOME-TAX ACT, 1961? 177
1. Bad or doubtful debts 177
2. Applicability to public company 177
3. Judicial interpretation 177
38. Rule 6F/Section 44AA: WHAT ARE THE BOOKS OF ACCOUNT AND OTHER DOCUMENTS TO BE KEPT AND MAINTAINED UNDER SECTION 44AA(3) BY PERSONS CARRYING ON CERTAIN PROFESSIONS? 178
1. Professions required to maintain books of accounts 178
2. Other specified professions 178
3. Film artist meaning of 178
4. Requirement of compulsory maintenance of books of accounts 179
5. Maintenance of following books of account and other documents 179
6. When books of account need not be maintained 180
7. Place of keeping of books of accounts 180
8. Period for which books of account to be maintained 180
9. Constitutionality 180
10. Judicial interpretation 181
Annexures 182
39. Rule 6G/Section 44AB: WHAT ARE THE PRESCRIBED REPORT OF AUDIT OF ACCOUNTS TO BE FURNISHED U/S 44AB? 183
1. Audit of Accounts 183
2. Specified Date 183
3. Incomplete information in audit report 183
4. Prescribed Forms 184
5. Applicability to commission agents, arhatias etc. 184
Annexures 185
40. Rule 6GA/Section 44DA: WHAT IS THE PRESCRIBED FORM OF REPORT OF AUDIT OF ACCOUNTS TO BE FURNISHED UNDER SECTION 44DA 188
1. Computation of Income 188
2. Prescribed Form 188
3. Important Terms 188
41. Rule 6GB/Section 44BBC: WHAT ARE THE CONDITIONS FOR NON-RESIDENTS ENGAGED IN THE BUSINESS OF OPERATION OF CRUISE SHIPS FOR THE PURPOSE OF SPECIAL PROVISION FOR COMPUTING PROFITS AND GAINS UNDER SECTION 44BBC 190
42. Rule 6H/Section 50B: WHAT IS THE METHOD OF COMPUTATION OF CAPITAL GAINS IN CASE OF SLUMP SALE UNDER SECTION 50B? 191
1. Computation of Capital Gains 191
2. Prescribed Form of Audit Report 191
43. Rules 7 and 8/Section 2(1A): HOW TO COMPUTE INCOME WHICH IS PARTIALLY AGRICULTURAL AND PARTIALLY FROM BUSINESS? 192
1. Computation of composite income 192
2. “Market value” 192
3. Tea manufacturer 192
4. Rubber manufacturer 192
5. Coffee manufacturer 193
6. Judicial interpretation 193
Annexures 195
44. Rule 8AA/Section 2(42A): WHAT IS THE METHOD OF DETERMINATION OF PERIOD OF HOLDING OF CAPITAL ASSETS IN OTHER CASES 197
45. Rule 8AB/Section 48: HOW TO ATTRIBUTE INCOME TAXABLE UNDER SECTION 45(4) TO CAPITAL ASSETS REMAINING WITH THE SPECIFIED ENTITY UNDER SECTION 48 198
46. Rule 8AC/Section 50: HOW TO COMPUTE SHORT TERM CAPITAL GAIN AND WRITTEN DOWN VALUE UNDER SECTION 50 WHERE DEPRECIATION ON GOODWILL HAS BEEN OBTAINED 200
47. Rule 8AD/Section 45(1B): HOW TO COMPUTE CAPITAL GAIN
FOR THE PURPOSE OF SECTION 45(1B) 201
48. Rule 8B/Section 2(48): WHAT ARE THE GUIDELINES FOR NOTIFICATION OF ZERO COUPON BONDS? 202
49. Rule 8C/Section 36(1)(iiia): HOW TO COMPUTE PRO-RATA AMOUNT OF DISCOUNT ON A ZERO COUPON BOND? 204
50. Rule 8D/Section 14A: HOW TO DETERMINE AMOUNT OF EXPENDITURE IN RELATION TO INCOME NOT INCLUDIBLE IN TOTAL INCOME 205
1. Assessing Officer not satisfied [Rule 8D(1)] 205
2. Method to determine expenditure in relation to income which does not form part of the total income 205
3. Judicial interpretation 205
51. Rule 9/Section 180: HOW TO COMPUTE ROYALTIES OR COPY-RIGHT FEES, ETC. FOR LITERARY OR ARTISTIC WORK? 208
1. Computation of royalty or copyright fees 208
2. Calculation of tax payable 208
52. Rule 9A/Section 37(1): HOW TO COMPUTE DEDUCTION IN RESPECT OF EXPENDITURE ON PRODUCTION OF FEATURE FILMS? 209
1. Computation of expenditure on production of feature films 209
2. Calculation of “cost of production” 209
3. Quantum of deduction 209
4. Conditions for allowance of deduction 210
5. Discretion to Assessing Officer 210
6. Constitutionality 211
7. Judicial interpretation 211
Annexure 212
53. Rule 9B/Section 37(1): HOW TO COMPUTE DEDUCTION IN RESPECT OF EXPENDITURE ON ACQUISITION OF DISTRIBUTION RIGHTS OF FEATURE FILMS? 213
1. Computation of expenditure on acquisition of distribution rights of feature film 213
2. ‘Cost of acquisition’ 213
3. Quantum of deduction 213
4. Conditions for allowance of deduction 214
5. Deeming provisions 214
6. Judicial Interpretation 214
54. Rule 9C/Section 72A(2)(iii): WHAT ARE THE CONDITIONS FOR CARRYING FORWARD OR SET OFF OF ACCUMULATED LOSS AND UNABSORBED DEPRECIATION ALLOWANCE IN CASE OF AMALGAMATION? 215
1. Conditions precedent 215
2. Judicial interpretation 215
55. Rule 9D/Section 10(11), 10(12): HOW TO CALCULATE TAXABLE INTEREST RELATING TO CONTRIBUTION IN A PROVIDENT FUND OR RECOGNISED PROVIDENT FUND EXCEEDING SPECIFIED LIMIT 217
56. Rule 10/Sections 9 and 92: HOW TO DETERMINE THE INCOME IN THE CASE OF NON-RESIDENTS? 218
1. Accrual or arisal of income to a non-resident 218
2. Judicial interpretation 218
Annexures 219
57. Rule 10A/Section 92F: WHAT IS THE MEANING OF VARIOUS EXPRESSIONS USED IN COMPUTATION OF ARM’S LENGTH PRICE? 224
1. Accountant [Section 92F(i)] 224
2. Arm’s length price [Section 92F(ii)] 224
3. Enterprise [Section 92F(iii)] 224
4. Permanent establishment [Section 92F(iiia)] 224
5. Property 224
6. Services 224
7. Specified date [Section 92F(iv)] 224
8. Transaction [Section 92F(v)] 225
9. Uncontrolled Transaction 225
58. Sections 92B and 92BA: WHAT IS THE MEANING OF INTERNATIONAL TRANSACTION AND SPECIFIED DOMESTIC TRANSACTION? 226
1. Meaning of international transaction [Section 92B] 226
2. Meaning of specified domestic transaction [Section 92BA] 227
59. Rule 10B/Section 92C(2): WHAT ARE THE VARIOUS METHODS FOR DETERMINING THE ARM’S LENGTH PRICE IN RELATION TO AN INTERNATIONAL TRANSACTION OR A SPECIFIED DOMESTIC TRANSACTION FOR THE PURPOSES OF SECTION 92C(2) 228
1. Determination of arm’s length price 228
2. Comparability with an uncontrolled transaction 230
3. Data to be used in analysing the comparability 231
Annexures 232
60. Rules 10AB and 10C/Section 92C(1): WHAT IS THE BEST METHOD FOR MEASURING ARM’S LENGTH PRICE IN RELATION TO THE INTERNATIONAL TRANSACTION OR A SPECIFIED DOMESTIC TRANSACTION 238
1. Most appropriate method 238
2. Judicial interpretation 238

61. Rule 10CA/Section 92C(1): HOW TO COMPUTE ARM’S LENGTH PRICE 240
62. Rule 10CB/Section 92CE(2): HOW TO COMPUTE INTEREST INCOME PURSUANT TO SECONDARY ADJUSTMENTS 246
1. Time limit for repatriation of excess money or part thereof 246
2. Computation of imputed per annum interest income 246
3. Interest chargeable on excess money or part thereof which is not repatriated 247
4. Meaning of certain terms 247
Annexure 248
63. Rule 10D/Section 92D: WHAT ARE THE INFORMATIONS AND DOCUMENTS TO BE KEPT BY A PERSON WHO HAS ENTERED INTO AN INTERNATIONAL TRANSACTION OR THE SPECIFIED DOMESTIC TRANSACTION 249
1. Documents to be kept by a person who has entered into an international transaction or the specified domestic transaction 249
2. Sub-rule (1) not to apply for eligible specified domestic transaction 250
3. Information to be supported by authentic documents 251
Annexure 252
64. Rule 10DA/Sections 92D(1) & (4): WHAT INFORMATION AND DOCUMENTS ARE TO BE KEPT AND MAINTAINED AND FURNISHED UNDER SECTIONS 92D(1) AND 92D(4) 253
1. Documents to be kept and maintained by a constituent entity of an international group 253
2. Information to be furnished to a Joint Director 254
3. Constituent entity to furnish Part A 254
4. Form No. 3CEAA may be furnished by any one constituent entity 255
5. Procedure for electronic filing of Form No. 3CEAA 255
6. Information and documents to be maintained for eight years 255
7. Rate of exchange 255
8. Meaning of certain terms 255
65. Rule 10DB/Section 286(1): HOW TO FURNISH REPORT IN RESPECT OF AN INTERNATIONAL GROUP 256
1. Income-tax authority 256
2. Notification in Form 3CEAC 256
3. Entity to furnish report in Form No. 3CEAD 256
4. Period for furnishing report 256
5. Information regarding designated constituent entity in Form No. 3CEAE 256
6. Total consolidated group 256
7. Rate of exchange for calculation of the value in rupees 256
8. Procedure for electronic filing of Forms 256
66. Rule 10E/Section 92E: WHAT IS THE PRESCRIBED REPORT FROM AN ACCOUNTANT TO BE FURNISHED BY PERSONS ENTERING INTO INTERNATIONAL TRANSACTION OR A SPECIRFIED DOMESTIC TRANSACTION? 258
1. Form of report 258
2. Penal Consequences 258
67. Rules 10F, 10G, 10H, 10-I, 10J, 10K, 10L, 10M, 10N, 10-O, 10P, 10Q, 10R, 10S, 10T/Section 92CC(a) read with section 295: WHAT IS THE PROCEDURE FOR APPLYING/AMENDING/ REVISING ADVANCE PRICING AGREEMENTS 259
68. Rule 10TA, 10TB to 10TG: SAFE HARBOUR RULES 267

69. Rule 10TH, 10THA, 10THB, 10THC, 10THD/Section 92C: WHAT ARE THE SAFE HARBOUR RULES FOR SPECIFIED DOMESTIC TRANSACTION 283
70. Rule 10U: WHAT ARE THE CASES WHERE PROVISIONS RELATED TO GENERAL ANTI-AVOIDANCE RULES UNDER CHAPTER XA OF INCOME TAX ACT, 1961 DO NOT APPLY 288
1. Provisions of Chapter XA do not apply 288
2. Provisions of Chapter XA apply 288
3. Meaning of certain terms 288
4. Determination of consequences of impermissible avoidance arrangement 289
5. Notice, Forms for reference under section 144BA 289
6. Time limits 289
7. Reference to the Approving Panel 290
8. Procedure before the Approving Panel 290
9. Remuneration to Chairperson and other members 290
71. Rule 10V: WHAT ARE THE GUIDELINES FOR APPLICATION OF SECTION 9A 291
Annexure 296
72. Rule 11A/Sections 80DD and 80U: WHAT ARE THE PRESCRIBED CONDITIONS FOR THE ALLOWABILITY OF DEDUCTION UNDER SECTIONS 80DD AND 80U 297
1. Medical authority for certification 297
2. Form of certificate 297
3. Validity of the certificate 297
Annexures 298
73. Rule 11AA/Section 80G(5)(vi): WHAT ARE THE PRESCRIBED REQUIREMENTS FOR APPROVAL OF AN INSTITUTION OR FUND UNDER SECTION 80G? 306
1. Application for approval 306
2. Documents accompanying the application 306
3. Forms to be filed electronically 306
4. Verification of Forms 307
5. Order granting approval 307
6. Cancellation of approval 307
7. Provisional approval 307
8. Order of approval or rejection or cancellation 307
9. Data structure, standards and procedure 307
Annexure 308
74. Rule 11B/Section 80GG: WHAT ARE THE CONDITIONS FOR ALLOWANCE FOR DEDUCTION UNDER SECTION 80GG? (From assessment year 1998-99) 310
1. Form of declaration 310
2. Deduction when not available 310
75. Rule 11C/Section 80RRA, Explanation (c)(vi): WHAT ARE THE PRESCRIBED FIELDS FOR THE PURPOSES OF DEDUCTION IN RESPECT OF REMUNERATION RECEIVED FROM FOREIGN EMPLOYERS OR INDIAN CONCERNS UNDER SECTION 80RRA? 311
1. Prescribed fields 311
76. Rule 11DD/Section 80DDB: WHAT ARE THE SPECIFIED DISEASES AND AILMENTS UNDER SECTION 80DDB? 312
1. Specified diseases 312

2. Prescribed authority 312
3. Form of certificate 313
77. Rule 11EA/Section 80-IB(5): WHAT ARE THE GUIDELINES FOR SPECIFYING INDUSTRIALLY BACKWARD DISTRICTS FOR THE PURPOSES OF DEDUCTION UNDER SECTION
80-IB(5)? 314
1. Conditions to be fulfilled for notifying a backward district of category A 314
2. Conditions to be fulfilled for notifying a backward district of category B 314
3. Reorganisation of districts 314
Annexures 315
78. Rules 11F to 11-I/Section 35AC: WHAT ARE THE PROVISIONS RELATED TO COMPOSITION OF NATIONAL COMMITTEE UNDER SECTION 35AC? 325
1. National Committee (Rule 11F) 325
2. Composition of the National Committee (Rule 11G) 325
3. Headquarters and Secretariat (Rule 11H) 325
4. Functions (Rule 11-I) 326
79. Rule 11J/Section 35AC: WHAT ARE THE GUIDELINES FOR APPROVAL OF ASSOCIATIONS AND INSTITUTIONS? 327
1. Approval to any association or institution 327
80. Rule 11K/Section 35AC: WHAT ARE THE GUIDELINES FOR RECOMMENDING PROJECTS OR SCHEMES? 328
1. Pre-requisites for recommending project 328
81. Rule 11L-11O/Section 35AC: WHAT IS THE PROCEDURE FOR AN APPROVAL OF ASSOCIATION OR INSTITUTION OR FOR RECOMMENDATION OF A PROJECT OR SCHEME BY THE NATIONAL COMMITTEE? 330
1. Application for approval of an association or institution or for recommen-dation of a project or scheme by the National Committee (Rule 11L) 330
2. Procedure before the National Committee (Rule 11M) 331
3. Form of report by an approved association or institution under clause (ii) of sub-section (4) of Section 35AC (11MA) 332
4. Form of report by public sector company or local authority or association or institution, which is carrying out a notified eligible project or scheme, under clause (ii) of sub-section (5) of section 35AC (Rule 11MAA) 332
5. Other provisions (Rule 11N) 332
6. Certificate of payment or expenditure in respect of eligible projects or schemes notified under section 35AC (Rule 11-O) 333
82. Rule 11-OA/Section 35AD: WHAT ARE THE GUIDELINES FOR NOTIFICATION OF AFFORDABLE HOUSING PROJECT AS SPECIFIED BUSINESS UNDER SECTION 35AD? 334
1. Notification of an affordable housing project as a specified business 334
2. Conditions pre-requisite for notification 334
3. Books of accounts 335
4. Continuance of project notified 335
5. Meaning of certain terms 335
83. Rule 11OB/Section 35AD: WHAT ARE THE GUIDELINES FOR NOTIFICATION OF A SEMI CONDUCTOR WAFER FABRICATION MANUFACTURING UNIT AS SPECIFIED BUSINESS UNDER SECTION 35AD 337
1. Notification of a semiconductor wafer fabrication manufacturing unit as a specified business 337
2. Fulfilment of conditions 338
3. Books of accounts 338
4. Continuance of notification 338
5. Meaning of certain terms 338
84. Rule 11P/Sections 115VP to 115VS: WHAT IS THE PROCEDURE FOR OPTION OF TONNAGE TAX SCHEME 339
1. Method and time of opting for tonnage tax scheme 339
2. Order approving the option for tonnage tax scheme 339
3. Order to be passed within one month 339
4. Applicability of the tonnage tax scheme 339
5. Period for which tonnage tax option to remain in force 339
6. Renewal of tonnage tax scheme 340
7. Prohibition to opt for tonnage tax scheme in certain cases 340
8. Application for exercising or renewing the option for tonnage tax scheme 340
85. Rule 11UAE/Section 50B: HOW TO COMPUTE FAIR MARKET VALUE OF CAPITAL ASSETS FOR THE PURPOSE OF
SECTION 50B OF INCOME TAX ACT 341
1. Fair market value of capital assets 341
2. Determination of FMV-1 341
3. Determination of FMV-2 342
4. FMV on the date of slump sale 342
86. Rule 12/Section 139: WHAT ARE THE PRESCRIBED FORMS AND DUE DATES FOR FILING RETURN OF INCOME? 343
1. Form of return 343
2. Due dates for filing returns 347
3. Penalty for failure to furnish return of income 348
4. Judicial interpretation 348
Annexures 349
87. Section 143(1A): WHAT IS THE PRESCRIBED SCHEME FOR PROCESSING OF RETURN OF INCOME 358
1. Applicability 358
2. Definition 358
3. Scope of the Scheme 358
4. Receipt and Acknowledgement of Return of Income 358
5. Revised return of income 359
6. Invalid or defective return 359
7. Centralised Processing Centers 359
8. Processing of Returns 360
9. Rectification of mistake 360
10. Adjustment against outstanding tax demand 360
11. Appellate Proceedings 361
12. No personal appearance in the Centre 361
13. Service of notice or communication 361
14. Power to specify procedure and processes 361
Annexure 362
88. Section 139(1A): WHAT IS THE SCHEME FOR FILING OF RETURNS BY SALARIED EMPLOYEES THROUGH EMPLOYER? 363
1. Effective date 363
2. Applicability 363
3. Types of returns not to be received 363
4. Returns how to be furnished 363
5. Date of furnishing of return 363

89. Rule 12(3)/Sections 139(1B), 139D: WHAT ARE THE QUALIFICATIONS OF E-RETURN INTERMEDIARY 364
1. Qualifications of an e-Return Intermediary 364
2. E-intermediary to have atleast Class II digital signature certificate 364
3. Security procedure 364
4. Archival, retrieval and, security policy 364
5. E-intermediary must not have been convicted of criminal offence 364
Annexure 365
90. Section 144C: WHAT IS THE PROCEDURE FOR FILING OBJECTION BEFORE DISPUTE RESOLUTION PANEL BY ELIGIBLE ASSESSEE 367
1. Eligible assessee 367
2. Procedure for filing objections 367
3. Notice for hearing 367
4. Call for records 367
5. Hearing of objections 367
6. No abatement of proceedings 368
7. Power to call for or permit additional evidence 368
8. Issue of directions 368
9. Directions to be communicated to parties 368
10. Passing of Assessment Order 368
11. Rectification of mistake or error 368
12. Appeal against Assessment Order 368
Annexure 369
91. Rule 12AB/Section 139(1)(b): WHAT ARE THE CONDITIONS FOR FURNISHING RETURN OF INCOME BY PERSONS REFERRED TO IN SECTION 139(1)(b) 370
92. Rule 12AC/Section 139(8A): HOW TO FILE UPDATED RETURN OF INCOME 371
93. Rule 12AD: HOW TO FILE MODIFIED RETURN OF INCOME BY SUCCESSOR ENTITY TO A BUSINESS ORGANISATION 372
94. Rule 12B/Section 115R(3A): HOW THE STATEMENT UNDER SECTION 115R(3A) IS TO BE FURNISHED? 373
95. Rule 12C/Section 115U(2): HOW THE STATEMENT UNDER SECTION 115U(2) IS TO BE FURNISHED? 374
96. Rule 12CA/Section 115UA(4): HOW THE STATEMENT UNDER SECTION 115UA(4) IS TO BE FURNISHED 375
97. Rule 12CB/Section 115UB(7): HOW TO FURNISH STATEMENT OF INCOME PAID OR CREDITED BY AN INVESTMENT FUND TO ITS UNIT HOLDER 376
Annexure 377
98. Rule 12CC/Section 115TCA: HOW TO FURNISH STATEMENT OF INCOME DISTRIBUTED BY A SECURITISATION TRUST TO ITS INVESTOR 378
99. Rule 14/Section 142: WHAT IS THE PRESCRIBED FORM OF VERIFICATION UNDER SECTION 142? 379
Prescribed form of verification 379
100. Rule 14A/Section 142: WHAT IS THE PRESCRIBED FORM OF AUDIT REPORT UNDER SECTION 142(2A)? 380
1. Prescribed Form of Audit Report 380
Annexures 381

101. Rule 14B/Section 142(2A): WHAT ARE THE GUIDELINES FOR THE PURPOSES OF DETERMINING AUDIT EXPENSES OR INVENTORY VALUATION 384
1. Guidelines for determining audit expenses or inventory valuation 384
102. Rule 15/Section 156: WHAT IS PRESCRIBED FORM OF NOTICE OF DEMAND UNDER SECTION 156 385
1. Prescribed Form 385
2. Supreme Court Ruling 385
3. Revised Notice 385
4. Order should precede notice 385
103. Rule 15A/Section 158A: WHAT IS THE SPECIAL PROVISION FOR AVOIDING REPETITIVE APPEALS UNDER SECTION 158A? 386
1. Procedure when assessee claims identical question of law is pending before High Court or Supreme Court 386
2. Form of declaration 386
3. Signing of Declaration 387
104. Rule 16: IN WHICH FORM APPLICATION UNDER SECTION 158AB TO DEFER FILING OF APPEAL BEFORE THE APPELLATE TRIBUNAL OR JURISDICTIONAL HIGH COURT IS TO BE MADE? 388
105. Rule 16B/Section 10(8A) & (8B): WHO IS THE PRESCRIBED AUTHORITY FOR THE PURPOSES OF SECTION 10(8A) AND (8B) 389
1. Section 10(8A) & 10(8B) 389
2. Meaning of “Consultant” 389
3. Prescribed Authority 389
106. Rule 16C/Section 10(23AAA): WHAT ARE THE REQUIREMENTS FOR APPROVAL OF EMPLOYEE’S WELFARE FUND UNDER SECTION 10(23AAA)? 390
1. Form of application 390
2. Grant of approval 390
3. Rejection of approval 390
4. Requirements of the Fund 390
5. Contributions to the Fund 390
107. Rule 17/Section 11(1): HOW TO EXERCISE OPTION UNDER SECTION 10(23C)/SECTION 11 391
Annexures 392
108. Rule 17A/Section 12A: HOW TO MAKE APPLICATION FOR REGISTRATION OF CHARITABLE OR RELIGIOUS TRUSTS, ETC.? 394
1. Application for registration of charitable or religious trusts, etc.? 394
2. Documents accompanying the application 394
3. Forms shall be furnished electronically 395
4. Verification of forms 395
5. Order granting registration 395
6. Cancelling registration after giving an opportunity of being heard 395
7. Provisional registration 395
8. Registration or rejection or cancellation of registration 395
9. Data structure, standards and procedure 396
Annexures 397

109. Rule 17AA: WHAT BOOKS OF ACCOUNT AND OTHER DOCUMENTS ARE TO BE KEPT AND MAINTAINED BY FUND OR INSTITUTION OR TRUST OR ANY UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION OR ANY HOSPITAL OR OTHER MEDICAL INSTITUTION UNDER TENTH PROVISO TO SECTION 10(23C)(a) OR 12A(1)(b)(i) 399
110. Rule 17C/Section 11(5)(xii): WHAT ARE THE PRESCRIBED FORMS OR MODES OF INVESTMENT OR DEPOSITS BY A CHARITABLE OR RELIGIOUS TRUST OR INSTITUTION? 405
1. Mode of investment or deposit 405
111. Rule 17CA/Section 13B: HOW AN ELECTORAL TRUST SHOULD FUNCTION SO THAT VOLUNTARY CONTRIBUTIONS RECEIVED BY IT IS NOT INCLUDED IN ITS TOTAL INCOME 407
112. Rule 17CB/Section 115TD(2): WHAT IS THE METHOD OF VALUATION FOR THE PURPOSE OF SECTION 155TD(2) 410
1. Fair market value of the total assets of the trust or institution 410
2. Determination of fair market value 410
3. Liability of the trust or institution 412
4. Meaning of certain terms 412
113. Rule 17D/Section 80HHB(2)(b)(iii): WHAT ARE THE PRESCRIBED FOREIGN PROJECTS FOR THE PURPOSE OF DEDUCTION IN RESPECT OF PROFITS AND GAINS FROM PROJECTS OUTSIDE INDIA UNDER SECTION 80HHB? 414
1. Foreign projects 414
114. Rule 18AAA/Section 80G: WHO IS THE PRESCRIBED AUTHORITY FOR APPROVAL OF DONATION MADE TO A UNIVERSITY OR ANY EDUCATIONAL INSTITUTIONS UNDER SECTION 80G(2)(a)(iiif)? 415
1. Prescribed Authority 415
115. Rule 18AAAA/Section 80G(5C): WHO IS THE PRESCRIBED AUTHORITY FOR THE PURPOSE OF RECEIVING SEPARATE ACCOUNTS FROM TRUSTS OR FUNDS OR INSTITUTIONS FOR PROVIDING RELIEF TO THE VICTIMS OF EARTHQUAKE IN GUJARAT? 416
1. Deduction of certain donations 416
2. Prescribed authority 416
3. Audit of accounts 416
4. Finding of prescribed authority 416
5. Opportunity of hearing 417
6. Time limit 417
116. Rule 18AAAAA/Section 80G(2)(c): WHAT ARE THE GUIDELINES FOR SPECIFYING AN ASSOCIATION OR INSTITUTION FOR THE PURPOSES OF NOTIFICATION UNDER SECTION 80G(2)(c)? 418
1. Specifying an association or institution for notification 418
117. Rule 18AB/Section 80G(5)(viii)(ix) or 35(1A): HOW TO FURNISH STATEMENT OF PARTICULARS AND CERTIFICATES UNDER SECTION 80G(5)(viii) AND (ix) OR SECTION 35(1A) 419

118. Rule 18BBB/Sections 80-I, 80-IA, 80-IB & 80-IC: WHAT IS THE PRESCRIBED FORM OF AUDIT REPORT FOR CLAIMING DEDUCTION UNDER SECTIONS 80-I, 80-IA, 80-IB & 80-IC? 421
1. Section 80-IA — Deduction in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc. 421
2. Section 80-IB — Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings 421
3. Section 80-IC — Special provisions in respect of certain undertakings or enterprises in a certain special category states 421
4. Form of audit report for claiming deduction under section 80-I or section 80-IA or section 80-IB or section 80-IC 422
5. Judicial interpretation 422
Annexure 423
119. Rule 18BBC/Section 80-IB(7)(c)/(iii): WHO IS THE PRESCRIBED AUTHORITY AND WHAT IS THE PRESCRIBED PROCEDURE FOR APPROVAL OF HOTELS LOCATED IN CERTAIN AREAS? 424
1. Prescribed authority 424
2. Conditions for approval 424
3. Judicial interpretation 424
120. Rule 18BBE/Section 80-IA: WHAT IS THE METHOD OF COMPUTATION OF PROFIT OF CERTAIN ACTIVITIES FORMING INTEGRAL PART OF A HIGHWAY PROJECT FOR THE PURPOSE OF SECTION 80-IA? 425
1. Computation of profits from certain activities forming integral part of a highway project 425
2. Maintenance of separate accounts 425
121. Rule 18C/Section 80-IA(4)(iii): DO YOU WISH TO KNOW THE ELIGIBILITY CRITERIA OF OPERATING AN INDUSTRIAL PARK/SPECIAL ECONOMIC ZONE? 426
1. Commencement of activity 426
2. Approval of undertaking 426
3. Notification of undertaking 426
Annexures 427
122. Rule 18D/Section 80-IB(8A): WHO IS THE PRESCRIBED AUTHORITY FOR APPROVAL OF COMPANIES CARRYING ON SCIENTIFIC RESEARCH AND DEVELOPMENT? 429
123. Rule 18DA/Section 80-IB(8A): WHAT ARE THE PRESCRIBED CONDITIONS FOR CLAIMING DEDUCTIONS U/S 80-IB(8A)? 430
124. Rule 18DB/Section 80-IB(14)(da) and Section 80-IB(7A): WHAT ARE THE PRESCRIBED AREA, FACILITIES AND AMENITIES FOR MULTIPLEX THEATRES AND PARTICULARS OF AUDIT REPORT FOR CLAIMING DEDUCTION? 432
1. Area, facilities and amenities of multiplex theatre 432
2. Audit report 432
3. Approvals for exhibition of cinema 432
4. Submission of operating license annually 433
125. Rule 18DC/Section 80-IB(7B)/(14)(aa): WHAT ARE THE PRESCRIBED AREAS, FACILITIES AND AMENITIES FOR CONVENTION CENTRES AND PARTICULARS OF AUDIT REPORT FOR DEDUCTION UNDER SECTION 80-IB(7B) AND 80-IB(14)(aa) OF INCOME-TAX ACT, 1961? 434
1. Area of convention centre 434
2. Facilities and amenities of convention centre 434
3. Optional facilities 434
4. Audit report 435
5. Particulars to be submitted along with audit report 435
126. Rule 18DD/Section 80-IB(11B): WHAT ARE THE CONDITIONS FOR DEDUCTION FROM BUSINESS OF OPERATING AND MAINTAINING A HOSPITAL IN A RURAL AREA UNDER SECTION 80-IB(11B) OF INCOME TAX ACT, 1961? 436
1. 100% deduction for a hospital in a rural area 436
2. Date of construction of hospital 436
3. Audit report 436
127. Rule 18DE/Section 80-ID: WHAT IS THE PRESCRIBED AREA, MINIMUM SITTING CAPACITY, FACILITIES AND AMENITIES FOR CONVENTION CENTRES, MINIMUM NUMBER OF CONVENTION HALLS IN THE CONVENTION CENTRES AND PARTICULARS OF AUDIT REPORT FOR DEDUCTION UNDER SECTION 80-ID 437
1. Specified requirements of a convention centre 437
2. Additional facilities 437
3. Audit report 437
128. Rule 19AB/Section 80JJAA: WHAT IS THE PRESCRIBED FORM OF REPORT FOR CLAIMING DEDUCTION UNDER SECTION 80-JJAA? 438
1. Deduction in respect of employment of new workmen 438
2. Important Terms 438
3. Prescribed Form 438
129. Rule 19AC/Section 80QQB: WHAT IS THE PRESCRIBED FORM OF CERTIFICATE TO BE FURNISHED UNDER SECTION 80QQB? 439
1. Deduction in respect of royalty income, etc., of authors of certain books other than text Books (Section 80QQB) 439
2. Important Terms 439
3. Form of the Certificate 440
130. Rule 19AD/Section 80RRB: WHO IS THE PRESCRIBED AUTHORITY AND WHAT IS THE PRESCRIBED FORM OF CERTIFICATE TO BE FURNISHED UNDER SECTION 80RRB? 441
1. Deduction in respect of royalty on patents (Section 80RRB) 441
2. Important Terms 442
3. Prescribed Authority 442
4. Form of the Certificate 442
131. Rule 19AE/Section 80LA: WHAT IS THE PRESCRIBED FORM OF CERTIFICATE TO BE FURNISHED UNDER SECTION 80LA? 443
1. Deduction in respect of certain incomes of Offshore Banking Units (Section 80LA) 443
2. Important Terms 443
3. Form of audit report 443
132. WHAT ARE THE GUIDELINES FOR APPROVAL OF ISSUE OF PUBLIC COMPANIES UNDER SECTION 80C(2)(xix) OR 88(2)(xvi) OF THE INCOME-TAX ACT, 1961? 444
1. Conditions to be fulfilled for approval of a public company 444

133. Rule 20A/Section 88(2)(xvii): WHAT ARE THE GUIDELINES FOR APPROVAL OF MUTUAL FUNDS UNDER SECTION 80C(2) (xx) OR 88(2)(xvii) OF INCOME-TAX ACT, 1961 445
1. Prescribed authority 445
2. Form of application 445
3. Documents to accompany the application 445
4. Mode of investment by mutual fund 445
5. Certificate of investment 445
6. Approval in writing 445
7. Withdrawal of approval 445
134. Rule 20AB/Section 88E: WHAT IS THE PROCEDURE FOR OBTAINING REBATE IN RESPECT OF SECURITIES TRANSACTION TAX U/S 88E OF INCOME-TAX ACT, 1961? 446
1. Rebate in respect of securities transaction tax 446
2. Deduction not to exceed the amount of income-tax 446
3. What is the amount of income-tax 446
4. Evidence of payment of security transaction tax for claiming rebate 446
5. Section 88E not applicable from A.Y. 2009-2010 446
135. Rule 21A/Section 89: WHAT ARE THE RULES FOR COMPUTATION OF RELIEF WHEN SALARY IS PAID IN ARREARS OR IN ADVANCE, ETC.? 447
1. Computation of relief 447
2. Items on which relief is allowed 447
3. Judicial interpretation 451
Annexures 452
136. Rule 21AA/Section 89: WHAT ARE THE PARTICULARS TO BE FURNISHED FOR CLAIMING RELIEF U/S 89? 455
1. Relief when salary, etc., is paid in arrears or in advance 455
2. Views from the Department 455
3. Prescribed form for particulars 455
137. Rule 21AAA: WHAT ARE THE RULES FOR TAXATION OF INCOME FROM RETIREMENT BENEFIT ACCOUNT MAINTAINED IN A NOTIFIED COUNTRY? 456
138. Rule 21AB/Sections 90 and 90A: HOW TO OBTAIN CERTIFICATE FOR CLAIMING RELIEF UNDER AN AGREEMENT WITH FOREIGN COUNTRIES OR SPECIFIED TERRITORIES AND AGREEMENTS BETWEEN SPECIFIED ASSOCIATIONS FOR DOUBLE TAXATION RELIEF 458
139. Rule 21AC/Section 94A: WHAT ARE THE REQUIREMENTS RELATED TO FURNISHING OF AUTHORISATION AND MAINTENANCE OF DOCUMENTS ETC. FOR THE PURPOSES OF SECTION 94A 459
1. Requirements related to furnishing of authorisation and maintenance of documents 459
140. Rule 21AC/Section 94B: WHAT ARE THE CONDITIONS AND ACTIVITIES FOR THE FINANCE COMPANY LOCATED IN ANY INTERNATIONAL FINANCIAL SERVICES CENTRE FOR SECTION 94B 460
1. Activities to be carried out by a Finance Company 460
2. Finance Company to pay interest in foreign currency 460
3. Meaning of certain expressions 460
141. Rule 21AD/Section 115BA(4): HOW TO EXERCISE OPTION UNDER SECTION 115BA(4) 461
142. Rule 21AE, 21AF/Section 115BAA/115BAB: DO YOU WANT TO EXERCISE OPTION UNDER SECTION 115BAA(5) AND 115BAB(7) 462
1. Form of exercise of option under section 115BAA(5) or 115BAB 462
2. Furnishing of Form 10-IC 462
3. Technical structure and support 462
143. Rule 21AG/Section 115BAC: HOW TO EXERCISE OPTION UNDER SECTION 115BAC(5) 463
1. Exercise of option under section 115BAC 463
2. Exercise of option under section 115BAD 463
Annexures 464
144. Rule 21AGA/Section 115BAC: HOW TO EXERCISE OPTION UNDER SECTION 115BAC(6) 465
145. Rule 21AI/Section 10(4D): HOW TO COMPUTE EXEMPT INCOME OF SPECIFIED FUND FOR THE PURPOSE OF SECTION 10(4D) 466
1. Computation of income attributable to units held by non-resident 466
2. Statement of exempt income 467
3. Income attributable to units held by non-resident 467
4. Procedure for filing 467
5. Meaning of certain terms 467
146. Rule 21AIA: WHAT ARE THE OTHER CONDITIONS REQUIRED TO BE FULFILLED BY A SPECIFIED FUND REFERRED TO IN SECTION 10(4D) 468
147. Rule 21AJ/Section 115AD(1A): DETERMINATION OF INCOME OF A SPECIFIED FUND ATTRIBUTABLE TO UNITS HELD BY NON-RESIDENTS UNDER SUB-SECTION (1A) OF SECTION 115AD 470
148. Rule 21AJA/Section 10(4D): HOW TO COMPUTE EXEMPT INCOME OF SPECIFIED FUND, ATTRIBUTABLE TO THE INVESTMENT DIVISION OF AN OFFSHORE BANKING UNIT FOR THE PURPOSE OF SECTION 10(4D) 472
1. Computation of income of specified fund attributable to the investment division of an offshore banking unit 472
2. Annual statement of exempt income 472
3. Fulfilment of conditions 472
4. Procedures, formats and standards 473
5. Meaning of certain expressions 473
149. Rule 21AJAA/Section 115AD(1B): HOW TO DETERMINE INCOME OF A SPECIFIED FUND ATTRIBUTABLE TO INVESTMENT
DIVISION OF AN OFFSHORE BANKING UNIT UNDER SECTION 115AD(1B) OF INCOME TAX ACT, 1961 474
1. Computaion of income of a specified fund, being the investment division of an offshore banking unit 474
2. Annual statement of income 474
3. Meaning of certain expressions 475
150. Rule 21AK/Section 10(4E): WHAT ARE THE CONDITIONS FOR THE PURPOSE OF SECTION 10(4E) 476
1. Fulfilment of conditions 476
2. Meaning of certain expressions 476
151. Rule 21AL: WHAT ARE OTHER CONDITION TO BE FULFILLED BY ORIGINAL FUND WHERE A CAPITAL ASSET IS TRANSFERRED TO A RESULTANT FUND BEING CATEGORY III ALTERNATIVE INVESTMENT FUND 477

152. Rule 28: HOW TO MAKE AN APPLICATION FOR GRANT OF CERTIFICATE FOR DEDUCTION OF INCOME-TAX AT ANY LOWER RATES OR NO DEDUCTION OF INCOME-TAX 478
1. Application for grant of certificate 478
2. Procedures, formats and standards 478
153. Rule 28AA: HOW TO COMPUTE LOWER RATE OF TAX DEDUCTION? 479
1. Tax deduction at lower rate 479
2. Certificate for deduction at lower rates or no deduction of tax from income other than dividends 479
3. How to compute existing and estimated liability 479
4. Judicial interpretation 480
154. Rule 29BA/Section 195(2)/195(7): HOW TO MAKE AN APPLICATION FOR GRANT OF CERTIFICATE OF DETERMINATION OF APPROPRIATE PROPORTION OF SUM (OTHER THAN SALARY) PAYABLE TO NON-RESIDENT CHARGEABLE IN CASE OF RECIPIENTS 481
1. Determination of appropriate proportion of sum chargeable in the case of non-resident recipient 481
2. Satisfaction of Assessing Officer 481
3. Validity of certificate 481
4. Application for a fresh certificate 481
5. Procedures, formats and standards 482
155. Rules 30, 31, 33, 37/Section 192: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM SALARY 483
1. Time of deposit of tax 483
2. Furnishing of challan of tax deducted 483
3. Certificate of tax deduction 484
4. Quarterly statement of deduction of tax 485
5. Tax deduction at lower rate or no deduction 487
6. Other provisions 487
7. Judicial interpretation 488
8. Illustration 488
156. Rule 30, 31, 31A, 37/Section 193: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM INTEREST ON SECURITIES 490
1. Time of deposit of tax 490
2. Furnishing of challan of tax deducted 490
3. Certificate of tax deduction 490
4. Quarterly statement of deduction of tax 491
5. Tax deduction at lower rate or no deduction 494
157. Rule 30, 31, 31A and 37/Section 194A: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM INTEREST OTHER THAN INTEREST ON SECURITIES 495
1. Time of deposit of tax 495
2. Furnishing of challan of tax deducted 495
3. Certificate of tax deduction 495
4. Quarterly statement of deduction of tax 496
5. Tax deduction at lower rate or no deduction 499
6. Opportunity to correct defects in Form filed 499

158. Rule 30, 31, 31A and 37/Section 194B: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM WINNINGS FROM LOTTERY OR CROSSWORD PUZZLE 500
1. Time of deposit of tax 500
2. Furnishing of Challan of Tax Deducted 500
3. Certificate of tax deduction 500
4. Quarterly Statement of deduction of tax 501
159. Rule 30, 31, 31A and 37/Section 194BB: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM WINNINGS FROM HORSE RACES 504
1. Time of deposit of tax 504
2. Furnishing of challan of tax deducted 504
3. Certificate of tax deduction 504
4. Quarterly Statement of deduction of tax 505
160. Rule 28, 30, 31, 31A and 37/Section 194C: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM PAYMENTS TO CONTRACTORS/SUB-CONTRACTORS 508
1. Time of deposit of tax 508
2. Furnishing of challan of tax deducted 508
3. Certificate of tax deduction 508
4. Tax deduction at lower rate or no deduction 509
5. Quarterly Statement of deduction of tax 510
161. Rule 30, 31, 31A and 37/Section 194D: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM INSURANCE COMMISSION 513
1. Time of deposit of tax 513
2. Furnishing of challan of tax deducted 513
3. Certificate of tax deduction 513
4. Quarterly Statement of deduction of tax 514
5. Tax deduction at lower rate 517
162. Rule 30, 31, 31A/Section 194E: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FRO PAYMENTS TO NON-RESIDENT SPORTSMEN OR SPORTS ASSOCIATION 518
1. Time of deposit of tax 518
2. Furnishing of challan of tax deducted 518
3. Certificate of tax deduction of source or tax paid 518
4. Quarterly statement of deduction of tax 519
163. Rule 30, 31, 31A and 37/Section 194EE: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM PAYMENT IN RESPECT OF DEPOSITS UNDER NATIONAL SAVINGS SCHEME, ETC. 522
1. Time of deposit of tax 522
2. Furnishing of challan of tax Deducted 522
3. Certificate of tax deduction 522
4. Quarterly statement of deduction of tax 523
5. Tax deduction at lower rate 526
164. Rule 30, 31, 31A, 37/Section 194F: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM PAYMENTS ON ACCOUNT OF REPURCHASE OF UNITS BY MUTUAL FUND OR UNIT TRUST OF INDIA 527
1. Time of deposit of tax 527
2. Furnishing of challan of tax deducted 527
3. Certificate of tax deduction 527
4. Quarterly statement of deduction of tax 528
165. Rule 30, 31, 31A and 37/Section 194G: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM COMMISSION, ETC., ON SALE OF LOTTERY TICKETS 531
1. Time of deposit of tax 531
2. Furnishing of challan of tax deducted 531
3. Certificate of tax deduction 531
4. Quarterly Statement of deduction of tax 532
5. Tax deduction at lower rate 534
166. Rule 30, 31, 31A and 37/Section 194H: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM COMMISSION OR BROKERAGE 535
1. Time of deposit of tax 535
2. Furnishing of challan of tax deducted 535
3. Certificate of tax deduction 535
4. Quarterly Statement of deduction of tax 536
167. Rule 30, 31, 31A and 37/Section 194-I: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM RENT PAYMENT 539
1. Time of deposit of tax 539
2. Furnishing of challan of tax deducted 539
3. Certificate of tax deduction 539
4. Quarterly Statement of deduction of tax 540
168. Rule 30/Section 194-IA: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE ON PAYMENT ON TRANSFER OF IMMOVABLE PROPERTY OTHER THAN AGRICULTURAL LAND 543
169. Rule 30/Section 194-IB: WHEN AND HOW TO DEPOSIT TAX DEDUCTED AT SOURCE ON PAYMENT OF RENT BY CERTAIN INDIVIDUALS OR HINDU UNDIVIDED FAMILY 544
170. Rule 30, 31, 31A and 37/Section 194J: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM “FEES FOR PROFESSIONAL OR TECHNICAL SERVICES” 545
1. Time of deposit of tax 545
2. Furnishing of challan of tax deducted 545
3. Certificate of tax deduction 545
4. Quarterly Statement of deduction of tax 546
5. Tax deduction at NIL or at lower rate 549
171. Rule 30, 31, 31A & 37/Section 194K: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM “INCOME FROM MUTUAL FUNDS/UTI” 550
1. Time of deposit of tax 550
2. Furnishing of challan of tax deducted 550
3. Certificate of tax deduction 550
4. Quarterly Statement of deduction of tax 551
5. Tax deduction at NIL or at lower rate 554
172. Rule 30, 31 & 37/Section 194LA: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE ON PAYMENT OF COMPENSATION ON ACQUISITION OF CERTAIN IMMOVABLE PROPERTY 555
1. Time of deposit of tax 555
2. Certificate of tax deduction 555
3. Quarterly Statement of deduction of tax 556
4. Tax deduction at NIL or at lower rate 558
173. Rule 30, 31, 31A/Section 194M HOW TO MAKE PAYMENT OF CERTAIN SUMS BY CERTAIN INDIVIDUALS OR HINDU UNDIVIDED FAMILY 559
1. Section 194M inserted w.e.f. 1-4-2019 559
2. Time and Form of deposit of tax 559
3. Challan-cum-statement 559
174. Rule 29B/Section 195: HOW TO OBTAIN A CERTIFICATE AUTHORISING RECEIPT OF INTEREST AND OTHER SUMS WITHOUT DEDUCTION OF TAX IN CASE OF NON-RESIDENTS 561
1. Deduction of tax at source from payments to non-residents 561
2. Persons eligible to apply 561
3. Conditions for grant of a certificate 561
4. Issue of certificate 562
5. Validity of certificate 562
6. Judicial interpretation 562
175. Rule 29C/Section 197A(1)/197A(1A): HOW TO MAKE DECLARATION FOR CLAIMING OF RECEIPT OF CERTAIN INCOME WITHOUT DEDUCTION OF TAX 563
1. Declaration 563
2. Declaration may be in paper or electronic format 563
3. Declaration to have a unique identification number 563
4. Statement of deduction of tax 563
5. Income-tax authority may require the declaration before the end of seven years 563
6. Procedures, formats and standards for the purposes of furnishing and verification of the declaration 563
7. Principal Director General of Income-tax (Systems) may make available the declaration 564
176. Rules 30, 31, 31A, 37A and 37BB/Sections 193, 194, 194E, 195, 196A, 196B, 196C and 196D: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM PAYMENT TO NON-RESIDENT 565
1. Time of deposit of tax 565
2. Furnishing of challan of tax deducted 565
3. Certificate of tax deduction 565
4. Quarterly Statement of deduction of tax 566
5. Furnishing of Information 569
177. Rule 30, 31, 31A and 37A/Section 196B: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM INCOME FROM UNITS IN CASE OF OFFSHORE FUND 570
1. Time of deposit of tax 570
2. Furnishing of challan of tax deducted 570
3. Certificate of tax deduction 570
4. Quarterly Statement of deduction of tax 571
178. Rule 30, 31, 31A and 37A/Section 196C: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE ON INCOME FROM FOREIGN CURRENCY BONDS OR SHARES OF INDIAN COMPANY 574
1. Time of deposit of tax 574
2. Furnishing of challan of tax deducted 574
3. Certificate of tax deduction 574
4. Quarterly Statement of deduction of tax 575
179. Rule 30, 31, 31A and 37A/Section 196D: WHAT ARE THE PROVISIONS RELATING TO DEDUCTION OF TAX AT SOURCE FROM INCOME OF FOREIGN INSTITUTIONAL INVESTORS FROM SECURITIES 578
1. Time of deposit of tax 578
2. Furnishing of challan of tax deducted 578
3. Certificate of tax deduction 578
4. Quarterly Statement of deduction of tax 579
180. Rule 29/Section 197: HOW TO OBTAIN A CERTIFICATE FOR NO DEDUCTION OF TAX OR DEDUCTION AT LOWER RATES FROM DIVIDENDS 582
1. Application for no deduction or lower deduction of tax 582
2. Validity of certificate 582
3. Certificate valid for person named therein 582
4. Certificate to be issued to company 582
Annexures 583
181. Rule 31AC, 31ACA/Section 206A: FURNISHING OF QUARTERLY RETURNS IN RESPECT OF PAYMENT OF INTEREST TO RESIDENTS WITHOUT TAX DEDUCTION 777
182. Rule 37BA/Section 199: HOW TO AVAIL CREDIT FOR TAX DEDUCTED AT SOURCE FOR THE PURPOSE OF SECTION 199 778
183. Rule 37BB: HOW TO FURNISH INFORMATION FOR PAYMENT TO A NON-RESIDENT NOT BEING A COMPANY OR TO A FOREIGN COMPANY 779
184. Rules 37C to 37H/Section 206C: WHAT ARE THE PROVISIONS RELATING TO COLLECTION OF TAX AT SOURCE 782
1. Deposit of tax 782
2. Issue of certificate 782
3. Declaration by a buyer for no collection of tax at source u/s 206C(1A) 782
4. Application for certificate for collection of tax at lower rate (Rule 37G) 782
5. Certificate from Assessing Officer for collection of tax at lower rate (Rule 37H) 782
6. Time and mode of payment to Government account of Tax Collected at Source under section 206C 783
7. Quarterly statement of deduction of tax 784
8. Certificate for of tax collected at source 784
9. Judicial interpretation 784
185. Rule 37-I/Section 206C: HOW TO AVAIL CREDIT FOR TAX COLLECTED AT SOURCE 785
186. Rule 31AA/Section 206C: QUARTERLY STATEMENT OF COLLECTION OF TAX UNDER SECTION 206C(3) 786
187. Rule 37CA, 37CB and 37D/Section 206C: TIME AND MODE OF PAYMENT TO GOVERNMENT ACCOUNT OF TAX COLLECTED AT SOURCE UNDER SECTION 206C 788
188. Rule 37-D/Section 206C(5): CERTIFICATE FOR COLLECTION OF TAX AT SOURCE UNDER SECTION 206C(5) 790
189. Rule 38/Section 210: WHAT IS THE PRESCRIBED FORM OF NOTICE OF DEMAND FOR ADVANCE TAX UNDER SECTION 210? 791

190. Rule 39/Section 210: WHAT IS THE PRESCRIBED FORM FOR INTIMATION OF ADVANCE TAX UNDER SECTION 210? 792
191. Rule 40B/Section 115JB: WHAT IS THE PRESCRIBED FORM OF REPORT OF ACCOUNTANT TO BE FURNISHED UNDER SECTION 115JB(4)? 793
Annexure 794
192. Rule 40BB/Section 115QA WHAT ARE THE PROVISIONS RELATED TO TAX ON DISTRIBUTED INCOME OF DOMESTIC COMPANY FOR BUY BACK OF SHARES 799
193. Rules 42 to 44/Section 230: WHAT IS THE PRESCRIBED FORMS AND CERTIFICATES REQUIRED TO BE FURNISHED UNDER SECTION 230 AND WHO IS THE PRESCRIBED AUTHORITY FOR TAX CLEARANCE CERTIFICATES? 802
1. Persons not domiciled in India 802
2. Persons domiciled in India 802
3. Prescribed authorities 803
4. Prescribed Forms/applications/certificates 803
5. Transmission of documents 804
6. Production of certificate 804
7. Departmental views 804
Annexures 805
194. Rule 41/Section 239: WHAT IS THE PRESCRIBED PROCEDURE FOR CLAIMING REFUND 814
1. Period within which claim of refund to be made 814
2. Form of refund 814
3. Claim of refund must be accompanied by a return 814
4. TDS certificates, if any, to be enclosed 814
5. Claim may be made in person or through agent 814
6. Judicial interpretation 814
Annexures 815
195. Rules 44C, 44CA and 44D/Section 245C: WHAT IS THE PRESCRIBED PROCEDURE FOR APPLICATION TO SETTLEMENT COMMISSION 818
1. Application for settlement of cases 818
2. Situations in which application may be made 818
3. Applicant, meaning of 818
4. Substantial interest, meaning of 819
5. Form of application 819
6. Application must be signed 819
7. Fee 820
8. Report from Commissioner 820
9. Copy of order of Commissioner 820
10. Fee for copy of any report 820
11. Judicial interpretation 820
196. Rules 44DAA to 44DAD: WHAT IS DISPUTE RESOLUTION COMMITTEE FOR DISPUTE RESOLUTION AND HOW TO APPLY 821
197. Rules 44E and 44F/Section 245Q/Authority for Advance Rulings (Procedure) Rules, 1996: WHAT IS THE PRESCRIBED PROCEDURE FOR APPLICATION FOR OBTAINING AN ADVANCE RULING 823
1. Form of application 823
2. Application to be signed by whom 823
3. 824
4. Application by post 825
5. Location of the applicant 825
6. Removal of defects 825
7. Copy of advance ruling 825
8. Judicial interpretation 825
198. Rule 44FA: HOW TO FILE APPEAL TO THE HIGH COURT ON RULING PRONOUNCED OR ORDER PASSED BY THE BOARD FOR ADVANCE RULING UNDER SECTION 245W(1) 827
199. Rules 44G and Sections 90 & 295(2)(h): DO YOU WISH TO INVOKE THE MUTUAL AGREEMENT PROCEDURE AGAINST A DOUBLE TAXATION AVOIDANCE AGREEMENT 828
200. Rule 44GA WHAT IS THE PROCEDURE TO DEAL WITH THE REQUESTS FOR BILATERAL OR MULTILATERAL ADVANCE PRICING AGREEMENTS 830
201. Rules 45, 46, 46A/Sections 246 and 249: WHAT IS THE PROCEDURE FOR APPEALS TO COMMISSIONER (APPEALS) 831
1. Form of appeal 831
2. Production of evidence 831
3. Examination of witness by Assessing Officer 832
4. Powers of appellate authority 832
5. Judicial interpretation 832
Annexures 834
202. Rule 47/Section 253: WHAT IS THE PRESCRIBED FORM OF APPEAL AND MEMORANDUM OF CROSS OBJECTIONS TO APPELLATE TRIBUNAL UNDER SECTION 253 838
1. Appeals to Appellate Tribunal 838
2. Prescribed Form of Appeal 838
3. Prescribed Memorandum of cross objections 838
4. Fee Payable 839
5. Judicial interpretation 839
203. Rules 49 to 66/Section 288: WHO CAN BE AUTHORISED REPRESENTATIVE AND WHAT IS THE PROCEDURE FOR GETTING ONESELF REGISTERED AS AN AUTHORISED INCOME-TAX PRACTITIONER 840
1. Authorised representative 840
2. Authorised representative, meaning of 840
3. Authorised income-tax practitioner 840
4. Recognised accountancy examinations 840
5. Prescribed educational qualifications 841
6. Nature of business relationship 841
7. Registration of authorised income-tax practitioner 841
8. Certificate of registration 842
9. Cancellation of certificate 842
10. Removal of name of income-tax practitioner 842
11. Disqualification 842
12. Nature of inquiry for disqualification 842
204. Rules 67-76: RECOGNISED PROVIDENT FUNDS 844
1. Investment of fund moneys (Rule 67) 844
2. Nomination facility (Rule 67A) 850
3. Circumstances in which withdrawals may be permitted (Rule 68) 850
4. Conditions for withdrawal (Rule 69) 850

5. Second Withdrawal (Rule 70) 851
6. Repayment of withdrawals (Rule 71) 851
7. Certain rules not to apply 852
8. Amount withdrawn but not repaid may be deemed as income (Rule 72) 852
9. Withdrawal within twelve months before retirement (Rule 73) 852
10. Accounts (Rule 74) 852
11. Limits for contributions (Rule 75) 852
12. Penalty for assigning or creating a charge on beneficial interest (Rule 76) 852
205. Rules 77 to 81: HOW TO MAKE AN APPLICATION FOR RECOGNITION OF A RECOGNISED PROVIDENT FUND 853
1. Form of application 853
2. Application through Assessing Officer 853
3. Information in application 853
4. Form of verification 853
5. Order recognising a provident fund 854
6. Withdrawal of recognition 854
7. Payment of balance to the credit of employee 854
8. Appeal 854
206. Rules 82-94: APPROVED SUPERANNUATION FUND 855
1. Definitions (Section 82) 855
2. Establishment of fund and trust (Section 83) 855
3. Conditions regarding trustees (Section 84) 855
4. Investment of fund moneys (Section 85) 855
5. Admission of directors to a fund (Section 86) 855
6. Ordinary annual contributions (Section 87) 856
7. Initial contributions (Section 88) 856
8. Scheme of insurance or annuity (Section 89) 856
9. Commutation of annuity (Section 90) 856
10. Beneficiary not to have any interest in insurance and employer not to have any interest in fund’s moneys (Section 91) 857
11. Penalty if employee assigns or charges interest in fund (Section 92) 857
12. Arrangements on winding-up, etc., of business (Section 93) 857
13. Arrangements for winding-up, etc., of fund (Section 94) 857
Annexures 858
207. Rules 95 to 97: HOW TO MAKE AN APPLICATION FOR APPROVAL OF SUPERANNUATION FUND 868
1. Form of application 868
2. Form of verification 868
3. No alteration without approval of Chief Commissioner or Commissioner 868
4. Appeal 868
5. Judicial interpretation 868
208. Rules 98-108: APPROVED GRATUITY FUND 869
1. Definitions (Section 98) 869
2. Establishment of fund and trust (Section 99) 869
3. Conditions regarding trustees (Section 100) 869
4. Investment of fund moneys (Section 101) 869
5. Nomination (Section 101A) 869
6. Admission of directors to a fund (Section 102) 870
7. Ordinary annual contributions (Section 103) 870
8. Initial contributions (Section 104) 870
9. Penalty if employee assigns or charges interest in fund (Section 105) 870
10. Employer not to have interest in fund moneys (Section 106) 870
11. Arrangements for winding-up, etc., of business (Section 107) 871
12. Arrangements for winding up of the fund (Section 108) 871
Annexures 872
209. Rules 109 to 111: HOW TO MAKE AN APPLICATION FOR7APPROVAL OF A GRATUITY FUND 877
1. Form of application 877
2. Form of verification 877
3. No alteration without approval of Chief Commissioner or Commissioner 877
4. Appeal 877
210. Rule 111AA/Section 55A(b)(i): WHAT ARE THE PRESCRIBED CONDITIONS FOR REFERENCE TO VALUATION OFFICER 878
211. Rule 111B/Section 119: WHAT IS THE PROCEDURE FOR PUBLICATION AND CIRCULATION OF BOARD’S ORDER 879
212. Rule 112/Section 132: WHAT IS THE PRESCRIBED PROCEDURE FOR SEARCH AND SEIZURE 880
1. Authorisation 880
2. Procedure for search 880
3. Procedure for seizure 881
4. Constitutionality 883
5. Judicial interpretation 883
213. Rule 112A/Section 132(5): WHAT IS THE PRESCRIBED PROCEDURE FOR INQUIRY UNDER SECTION 132 IN SEARCH AND SEIZURE CASES 884
1. Notice for explaining search and seizure 884
2. Production of accounts or documents 884
3. Opportunity to rebut evidence 884
4. Judicial interpretation 884
214. Rules 112B and 112C/Sections 132(5) and 132B: WHAT IS THE PRESCRIBED PROCEDURE FOR RELEASE OF ARTICLES IN SEARCH AND SEIZURE 885
1. Release of articles under section 132(5) 885
2. Release of remaining assets 885
3. Judicial interpretation 885
4. Constitutionality 885
215. Rule 112D/Section 132A: WHAT IS THE PRESCRIBED PROCEDURE FOR REQUISITION OF BOOKS OF ACCOUNT, ETC. IN SEARCH AND SEIZURE 886
1. Power to requisition books of accounts 886
2. Income-tax authorities who can be authorised 886
3. Form of authorisation 886
4. Requisition to be in writing 887
5. Procedure of delivery 887
6. Judicial interpretation 887
216. Rule 112E/Section 133B: WHAT IS THE PRESCRIBED FORM FOR FURNISHING INFORMATION UNDER SECTION 133B 888
1. Collection of information 888
2. Prescribed form for furnishing information 888
217. Rule 112E WHICH ARE CLASS OR CLASSES OF CASES IN WHICH ASSESSING OFFICER SHALL NOT BE REQURIED TO ISSUE NOTICE FOR ASSESSMENT OR REASSESSMENT OF THE TOTAL INCOME FOR SIX ASSESSMENT YEARS IMMEDIATELY PRECEDING THE ASSESSMENT YEAR 889
Annexure 890

218. Rule 113/Section 138 WHAT IS THE PRESCRIBED PROCEDURE FOR DISCLOSURE OF INFORMATION RESPECTING ASSESSEES 891
1. Form of application 891
2. Form of furnishing information 891
3. Intimation of non-completion of assessment 891
4. Intimation of non-furnishing of information 891
219. Rule 114/Section 139A: WHAT IS THE PRESCRIBED PROCEDURE FOR PERMANENT ACCOUNT NUMBER 892
1. Persons required to apply for PAN 892
2. Form of application 892
3. Authority to whom application to be submitted 893
4. Time limit of submitting application 893
5. Documents to accompany Form 49A or 49AA 893
6. 898
Annexures 899
220. Rule 114A/Section 203A: WHAT IS THE PRESCRIBED PROCEDURE FOR TAX DEDUCTION AND COLLECTION ACCOUNT NUMBER 904
1. Form of application 904
2. Time limit for application 904
3. Authority to whom application to be made 904
Annexures 904
221. Rule 114AA/Section 206CA: WHAT IS THE PRESCRIBED FORM OF APPLICATION FOR ALLOTMENT OF A TAX COLLECTION ACCOUNT NUMBER 905
1. Collection of tax at source 905
2. Specified goods and percentages 905
222. Rule 114AAA/Section 139AA WHAT IS MANNER OF MAKING PERMANENT ACCOUNT NUMBER INOPERATIVE 906
Annexures 907
223. Rule 114AAB/Section 139A TO WHICH CLASS OR CLASSES, PROVISIONS OF SECTION 139A DO NOT APPLY 911
1. Section 139A not to apply to a non-resident upon fulfilment of conditions 911
2. Specified fund to furnish a quarterly statement 911
3. Section 139A not to a non-resident eligible foreign investor 911
224. Rule 114B: Section 139A(5)(c): WHAT ARE THE TRANSACTIONS IN RELATION TO WHICH PERMANENT ACCOUNT NUMBER OR GENERAL INDEX REGISTER NUMBER IS TO BE QUOTED FOR THE PURPOSE OF SECTION 139A(5)(c)? 913
1. Transactions in relation to which PAN is to be quoted 913
2. Judicial interpretations 913
Annexures 917
225. Rule 114BA: WHAT ARE THE TRANSACTIONS FOR THE PURPOSE OF SECTION 139A(1)(vii) 922
226. Rule 114BB: WHAT ARE THE TRANSACTIONS FOR QUOTING PAN OR AADHAAR FOR THE PURPOSE OF SECTION 139A(6A) AND FOR PERSON PRESCRIBED IN EXPLANATION TO SECTION 139A 923
227. Rule 114C: VERIFICATION OF PERMANENT ACCOUNT NUMBER 925
228. Rule 114D: WHAT IS THE TIME AND MANNER IN WHICH PERSONS REFERRED TO IN RULE 114C(2) SHALL FURNISH THE COPIES OF FORM Nos. 60 AND 61 926
Annexure 927
229. Rule 114DA/Section 285: HOW TO FURNISH ANNUAL STATEMENT BY A NON-RESIDENT HAVING LIAISON OFFICE IN INDIA 929
230. Rule 114DB/Section 285A WHAT DOCUMENTS OR INFORMATION ARE TO BE FURNISHED UNDER SECTION 285A 930
231. Rule 114E/Section 285BA: WHICH CLASS OF PERSONS ARE REQUIRED TO FURNISH ANNUAL INFORMATION RETURN AND ON WHICH NATURE AND VALUE TRANSACTIONS 932
1. Statement of financial transaction in Form No. 61A 932
2. Nature and value of transaction and reporting person 932
3. Return in Form No. 61A 935
4. Time lines for furnishing of statement 935
5. Reporting person to obtain a registration number 936
6. Verification of statement of financial transaction 937
Annexures 938
232. Rule 114F, 114G/114H/114-I/Section 285A: HOW TO FURNISH INFORMATION OR DOCUMENTS BY AN INDIAN CONCERN WHERE ANY SHARE OF OR INTEREST IN A COMPANY/ ENTITY REGISTERED OR INCORPORATED OUTSIDE INDIA DERIVES DIRECTLY OR INDIRECTLY ITS VALUE SUBSTANTIALLY FROM ASSETS LOCATED IN INDIA AND SUCH COMPANY/ENTITY HOLDS DIRECTLY OR INDIRECTLY SUCH ASSETS IN INDIA THROUGH OR IN AN INDIAN CONCERN 960
Annexure 996
233. Rule 115: HOW TO DETERMINE THE RATE OF EXCHANGE FOR CONVERSION INTO RUPEES OF INCOME EXPRESSED IN FOREIGN CURRENCY 1000
1. Calculation of currency conversion 1000
2. Specified date, meaning of 1000
3. Judicial interpretation 1001
4. Constitutionality 1001
234. Rule 115A/Section 48, first proviso: WHAT IS THE RATE OF EXCHANGE FOR CONVERSION OF RUPEES INTO FOREIGN CURRENCY AND RECONVERSION OF FOREIGN CURRENCY INTO RUPEES FOR THE PURPOSE OF COMPUTATION OF CAPITAL GAINS UNDER FIRST PROVISO TO SECTION 48 1002
1. Conversion of currency 1002
2. Rate of exchange to be adopted 1002
3. “Telegraphic transfer buying rate”, meaning of 1002
4. “Telegraphic transfer” selling rate, meaning of 1002
235. Rule 117B/Sections 222 & 223: WHAT IS THE PRESCRIBED CERTIFICATE OF STATEMENT UNDER SECTION 222 OR SECTION 223 1003
1. Recovery of tax 1003
2. Tax Recovery Officer 1003
3. Prescribed Form of certificate 1003
4. Constitutional Validity 1003
236. Rule 119A/Section 244A: WHAT IS THE PRESCRIBED PROCEDURE TO BE FOLLOWED IN CALCULATION OF INTEREST BY THE ASSESSEE TO THE CENTRAL GOVERNMENT/BY CENTRAL GOVERNMENT TO THE ASSESSEE 1004
1. Calculation of interest 1004
2. Judicial interpretation 1004
Annexure 1005
237. Rule 119AA/Section 269SU HOW TO PROVIDE FACILITY FOR PAYMENT IN CERTAIN CASES 1006
Annexure 1007
238. Rule 121A/Section 285B: WHAT IS THE PRESCRIBED FORM OF STATEMENT TO BE FURNISHED BY PRODUCER OF CINEMATOGRAPH FILMS 1009
1. Prescribed form of statement 1009
239. Rule 125: WHAT IS THE PROCEDURE FOR ELECTRONIC PAYMENT OF TAX? 1010
Annexure 1010
240. Rule 126/Section 6(1): HOW TO COMPUTE PERIOD OF STAY IN RESPECT OF ELIGIBLE VOYAGE FOR INDIAN INDIVIDUAL CITIZEN AND A MEMBER OF CREW OF SHIP 1011
241. Rule 127/Section 282(1): WHAT IS THE PROCEDURE FOR SERVICE OF NOTICE, SUMMONS, REQUISITION, ORDER AND OTHER COMMUNICATION 1012
242. Rule 128 HOW A RESIDENT ASSESSEE CAN BE ALLOWED A CREDIT FOR THE AMOUNT OF INCOME TAX PAID BY HIM IN A COUNTRY OUTSIDE INDIA 1014
243. Rule 128/Section 295 HOW TO AVAIL TAX CREDIT FOR FOREIGN TAX PAID 1016
244. Rule 132: HOW TO MAKE AN APPLICATION REQUESTING FOR RECOMPUTATION OF TOTAL INCOME OF PREVIOUS YEAR WITHOUT ALLOWING CLAIM FOR DEDUCTION OF SURCHARGE OR CESS CLAIMED AND ALLOWED AS DEDUCTION UNDER SECTION 40? 1018
245. Rule 132/Section 115BBJ: CALCULATION METHOD FOR NET WINNINGS FROM ONLINE GAMES 1019
Division 3
Circulars/Notifications under IT (Appellate Tribunal) Rules
The Income-tax (Appellate Tribunal) Rules, 1963 1025

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