Rule 161 mandates quoting and authentication of PAN for large cash deposits, withdrawals and opening of current or cash credit accounts to strengthen tax monitoring and prevent misuse of high-value cash transactions.
Draft Rule 162 states that non-intimation of Aadhaar will render PAN inoperative, leading to blocked refunds and higher TDS until compliance and fee payment restore validity. The rule enforces Aadhaar-PAN linkage through financial consequences.
Draft Rule 163 mandates income tax return filing for individuals (other than companies or firms) if they cross specified financial thresholds such as ₹1 crore current account deposits, high foreign travel expenses, or large turnover, ensuring wider tax reporting compliance.
Draft Rule 164 prescribes updated ITR forms, eligibility criteria and filing modes for Assessment Year 2026-27, restricting simplified forms like ITR-1 and ITR-4 based on income, assets and transaction thresholds.
Draft Rules 165 and 166 require eligible taxpayers to file updated returns in Form ITR-U and define clear conditions under which a return will be treated as defective, strengthening procedural compliance and accuracy.
Draft Rules 167 to 171 prescribe Form 99 for appeals, define authorised verifiers under insolvency cases, set verification formats, designate notice authorities, and mandate Forms 100 and 101 for audit and inventory reports to standardise tax compliance procedures.
Draft Rule 141 prescribes a component-wise formula for computing exempt income of specified funds attributable to offshore banking unit investment divisions, while disallowing related expenditure deductions and mandating Form 70 compliance.
Draft Rule 142 mandates separate accounts, audit in Form 71, and strict documentation for offshore banking investment divisions, making exemption under Schedule VI conditional on compliance.
Draft Rule 143 prescribes a five-component aggregation formula for computing income of offshore banking investment divisions under section 210(3), making concessional tax rates conditional on Form 70 filing and compliance.
Draft Rule 144 requires non-sponsor unit holders who become residents to exit within three months and mandates detailed record-keeping, failing which exemption under Schedule VI will be denied.
