Rules 10 DA and 10 DB has been amended relating to furnishing of information and maintenance of documents by CBDT

The Central Board of Direct Taxes (CBDT) had issued Notification for amending the Rule 10DA and Rule 10DB of Income-tax Rules,1962 relating to the furnishing of information and maintenance of documents through the constituent entity of an international group with effect from 1st April 2020.
 

Finance (No. 2) Act, 2019 had amended Section 92D of the Income Tax Act, 1961 in order to furnish clarification that a constituent entity of an international group would be needed towards maintaining and furnishing the master file even when it does not enter into any international transaction during the preceding year. Presently, the CBDT had correspondingly made amendments in Rule 10DA and Rule 10DB of the Income-tax Rules, 1962.
 

The main Amendments are; 
 

In order to exercise the powers that has been conferred by sub-section (1) and sub-section (4) of section 92D and sub-section (8) of section 286 along with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes had made  the following rules further to amend the Income-tax Rules, 1962, specifically: –

1. Short title and commencement. —(1) These rules shall be called the Income-tax (2nd Amendment) Rules, 2020.
 

(2) Save as otherwise furnished in these rules, they would come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, in rule 10 DA, with effect from the 1st ay of April 2020, —
 

(a) for the marginal heading, the following marginal heading would be substituted, specifically: –
“Maintenance and furnishing of information and document through a certain individual under section 92D”;
 

(b) for sub-rules (2), (3), (4) and (5), the following sub-rules would be substituted, which includes: –
 

“(2) The information and document stated under sub-rule (1) would be provided to the Joint Commissioner referred towards in sub-rule (1) of rule 10DB, in Form No. 3CEAA on or before the due date for providing the return of income as stated under sub-section (1) of section 139.
 

(3) The constituent entity would also provide Part A of Form No. 3CEAA even if the conditions stated under sub-rule (1) are not met.
 

(4) Where there are over one constituent entity resident in India of an international group, the Form No. 3CEAA might be provided by anyone constituent entity, if, —
 

(a) the international group had chosen such entity for this purpose; and
 

(b) the information was conveyed in Form No. 3CEAB towards the Joint Commissioner referred to in sub-rule (1) of rule 10DB, in this behalf 30 days before the due date of furnishing the Form No. 3CEAA.
 

(c) sub-rules (6), (7) and (8) would also be renumbered as sub-rules (5), (6) and (7) respectively.

3. In the mentioned rules, in rule 10DB, —
 

(a) for sub-rules (1) and (2), the following would be substituted, which covers: –
 

“(1) The income-tax authority for the purposes of section 286 would be the Joint Commissioner as might be chosen by the Director-General of Income-tax (Risk Assessment).
 

(2) The notification under sub-section (1) of section 286 would be made in Form No. 3CEAC 2 months before the due date for providing of the report as stated under sub-section (2) of said section.;
 

(b) in sub-rule (3), the words and brackets “to the Director-General of Income-tax (Risk Assessment)” would also be omitted;
 

(c) for sub-rule (5), the following sub-rule would be substituted, which covers: –
 

“(5) The information needed to be conveyed under the provision to sub-section (4) of section 286 relating to the designated constituent entity would be furnished in Form No. 3CEAE.”.

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