INCOME-TAX (FOURTH AMENDMENT) RULES, 2020 – INSERTION OF RULES 21AE & 21AF AND FORM NO. 10-IC AND FORM NO. 10-ID

NOTIFICATION G.S.R. 110(E) [NO. 10/2020/F.NO./370142/34/2019-TPL], DATED 12-2-2020

In exercise of the powers conferred by section 115BAA and section 115BAB read with section 295 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: —

Short title and commencement

1. (1) These rules may be called the Income-tax (4th Amendment) Rules, 2020.

(2) They shall come into force on the 1st day of April, 2020.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 21AD, the following rules shall be inserted, namely: —

“21AE. Exercise of option under sub-section (5) of section 115BAA.—(1) The option to be exercised in accordance with the provisions of sub-section (5) of section 115BAA by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall be in Form No. 10-IC.

(2) The option in Form No. 10-IC shall be furnished electronically either under digital signature or electronic verification code.

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall—

(i)		specify the procedure for filing of Form No. 10-IC;
(ii)		specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and
(iii)		be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.;

21AF. Exercise of option under sub-section (7) of section 115BAB.—(1) The option to be exercised in accordance with the provisions of sub-section (7) of section 115BAB by a person, being a domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2020, shall be in Form No. 10-ID.

(2) The option in Form No. 10-ID shall be furnished electronically either under digital signature or electronic verification code.

(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall—

(i)		specify the procedure for filing of Form No. 10-ID;
(ii)		specify the data structure, standards and manner of generation of electronic verification code, referred to in sub-rule (2), for verification of the person furnishing the said Form; and
(iii)		be responsible for formulating and implementing appropriate security, archival and retrieval policies in relation to the Form so furnished.”.

3. In the principal rules, in Appendix II, after Form No. 10-IB, the following Forms shall be inserted, namely: —

“FORM No. 10-IC[See sub-rule (1) of rule 21AE]Application for exercise of option under sub-section (5) of section 115BAA of the Income – tax Act, 1961

FORM No. 10-ID[See sub-rule (1) of rule 21AF]Application for exercise of option under sub-section (7) of section 115BAB of the Income-tax Act, 1961