Draft Rule 145 mandates specified entities to file electronically verified income statements with tax authorities and recipients by fixed June deadlines, ensuring compliance and transparency under sections 221 to 224.
Draft Rules 133 and 134 require businesses above ₹50 crore turnover to offer specified digital payment modes and mandate Form 65 filing to opt for patent royalty taxation benefits under section 194.
Rule 135 lays down a precise formula-based method to compute net winnings from online games for TDS purposes, clarifying treatment of deposits, withdrawals, bonuses, and multiple accounts.
Rules 136–138 require taxpayers to exercise or withdraw the new tax regime option through the income tax return and mandate Forms 66 and 67 for accountant reports under section 206.
Draft Rule 139 of the Income-tax Rules, 2026 prescribes a formula-based method to compute exempt income of specified funds attributable to non-resident unit holders. Exemption is conditional upon proportionate AUM ratios and mandatory filing of Form 68.
Draft Rule 140 prescribes a formula-based mechanism to determine income of specified funds attributable to non-resident unit holders, making concessional tax rates conditional on proportionate AUM ratios and filing of Form 69.
Rule 118 introduces a structured computation mechanism to reduce tax payable when past income from APA or secondary adjustments is included in book profits, ensuring no excess tax burden while adjusting tax credit accordingly.
Rules 119 and 120 clarify renewal of agreements via fresh Form 54 application and confirm Chapter X applies until execution, with treaty-based negotiation for bilateral deals.
Rule 117 requires filing of modified returns, payment of additional tax, and withdrawal of pending appeals to give effect to rollback provisions, failing which the agreement may be cancelled.
Rules 115 and 116 empower the Board to revise or cancel agreements where conditions fail, laws change, or compliance lapses occur, while mandating hearings, written reasons, and procedural safeguards to ensure transparency.
