CBDT Amends Rules 21AA, 26B and Forms 12BAA, 16, 24Q

The Ministry of Finance’s Central Board of Direct Taxes has issued Notification No. 112/2024 on October 15, 2024, amending the Income-tax Rules, 1962. This amendment includes several significant changes, effective immediately upon publication. Notably, adjustments are made to rule 21AA and rule 26B. Rule 21AA’s marginal heading and references are modified to remove specific mentions of “section 89(1),” aligning it simply with “section 89.” Rule 26B now allows assessees to provide details regarding income from sources other than salaries and any tax deducted or collected at source during the financial year using a newly introduced Form No. 12BAA. Additionally, Form No. 16 and Form No. 24Q have been updated to include adjustments for tax deducted or collected as per Form No. 12BAA. These changes aim to streamline tax deduction processes and improve compliance by providing clearer guidelines for taxpayers and deductors.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 112/2024-Income Tax | Dated: 15th October, 2024

G.S.R. 639(E).— In exercise of the powers conferred by section 295 read with section 192 of 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:–

1. (1) These rules may be called the Income-tax (Eighth Amendment) Rules, 2024.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962,––

(a) in rule 21AA, –

(i) in the marginal heading, for the word, figures and brackets “section 89(1)”, the word and figures “section 89” shall be substituted;

(ii) for the words, brackets and figures “sub-section (1) of section 89”, the word and figures “section 89” shall be substituted;

(b) for rule 26B, the following rule shall be substituted, namely :–

“26B. Statement of particulars of income under heads of income other than “Salaries” or details of tax deducted at source or tax collected at source.–– The assessee may submit to the person responsible for making payment under sub-section (1) of section 192, the details of ––

(a) any income chargeable under any head of income other than ‘Salaries’ received in the same financial year; or

(b) any tax deducted at source or tax collected at source under the provisions of Part B or Part BB of Chapter XVII, for the same financial year; or

(c) loss, if any, under the head “Income from house property” in the same financial year,

in Form No. 12BAA, for the purpose of computing the tax deduction at source under sub-section (1) of section 192.”;

(c) in Appendix II,––

(A) in Form No. 10E, –

(i) in the heading, for the word, figures and brackets “section 89(1)”, the word and figures “section 89” shall be substituted;

(ii) in Annexure I, against serial number 8, for the word, figures and brackets “section 89(1)”, the word and figures “section 89” shall be substituted;

(iii) in Annexure II, against serial number 12, for the word, figures and brackets “section 89(1)”, the word and figures “section 89” shall be substituted;

(iv) in Annexure IIA, against serial number 12, for the word, figures and brackets “section 89(1)”, the word and figures “section 89” shall be substituted;

(v) in Annexure III, against serial number 12, for the word, figures and brackets “section 89(1)”, the word and figures “section 89” shall be substituted;

(vi) in Annexure IV, against serial number 12, for the word, figures and brackets “section 89(1)”, the word and figures “section 89” shall be substituted;

(B) after Form No. 12BA, the following Form shall be inserted, namely –

“FORM NO. 12BAA
[See rule 26B]

Statement showing particulars for the purposes of sub-section (2B) of section 192

1. Name and address of the employee:

2. [Permanent Account Number or Aadhaar Number] of the employee:

3. Financial year:

Verification

I, …………………………………………………………………………………………….. son/daughter of do hereby certify that the information given above is complete and correct.

Place……………

Date …………………………………………………………………………………………………………………………………..

Designation ……………………………………………………………………………………………………………………….

(Signature of the employee)
Full Name:………………………..”;

(C) in Form No. 16, in Part B (Annexure-I), in the table, for the row numbered 19 and the entries relating thereto, the following shall be substituted, namely :––

(D) in Form No. 24Q, in Annexure II, in the table,––

(i) in column (388), the words and brackets “or deductor(s)” shall be omitted;

(ii) after column (388), the following column shall be inserted, namely:––

(iii) in column (389), –

(I) after the word “deducted”, the word “/collected” shall be inserted;

(II) after the figures “388”, the figures and letter “+388A” shall be inserted.

[No. 112/2024/F. No. 370142/19/2024-TPL]

KHUSHBOO LATHER, Under Secy.

Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (ii) vide notification number S.O. 969 (E), dated the 26th March, 1962 and were last amended vide notification number G.S.R 638 (E), dated the 15^th October, 2024.