Central Board of Direct Taxes (CBDT) has issued Notification No. 114/2024, announcing the Income-tax (Ninth Amendment) Rules, 2024, effective from October 16, 2024. These amendments modify certain provisions under the Income-tax Rules, 1962, particularly concerning tax collection at source (TCS) under Section 206C of the Income-tax Act, 1961. Key changes include adjustments in Rule 31AA, such as the replacement of references from “fourth proviso” to “fifth proviso” and from “fifth proviso” to “sixth proviso.” A new clause requires details to be furnished when tax is not collected or collected at a lower rate due to specific notifications. Rule 37-I has also been updated to clarify that when the income of a collectee is assessable to another person, TCS credit will be given to that person, provided the collectee submits a declaration. Additionally, the collector must issue the TCS certificate in the name of the individual receiving the credit. Further, Form 27EQ has been amended to include a new note specifying the inclusion of “J” in cases where no collection or lower collection occurs under Section 206C(12). These amendments streamline TCS reporting and credit allocation processes.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 114/2024 – Income Tax | Dated: 16th October, 2024
G.S.R. 645(E).—In exercise of the powers conferred by section 295 read with section 206C 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 (Ninth 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 31AA, in sub-rule (4),—
(i) in clause (vi),–
(A) in sub-clause (b), for the words “fourth proviso”, the words “fifth proviso” shall be substituted;
(B) in sub-clause (c), for the words “fifth proviso”, the words “sixth proviso” shall be substituted;
(ii) in clause (vii), for the word, figures and letter “section 206C.” occurring at the end, the word, figures and letter “section 206C;” shall be substituted;
(iii) after clause (vii), the following clause shall be inserted, namely:–
“(viii) furnish particulars of amount received or debited on which tax was not collected or tax was collected at a lower rate in view of any notification issued under sub-section (12) of section 206C.”;
(b) in rule 37-I,—
(i) in sub-rule (1), after the words “has been collected”, the brackets and words “(hereinafter referred to as the collectee)” shall be inserted;
(ii) after sub-rule (1), the following sub-rule shall be inserted, namely: ––
“(1A) (a) Where under any provisions of the Act, the income of the collectee is assessable in the hands of any person other than the collectee, the credit for the tax collected at source, shall be given to such other person and not to the collectee:
Provided that the collectee shall file a declaration with the collector and the collector shall report the tax collection in the name of the other person in the information relating to collection of tax referred to in sub-rule (1).
(b) The declaration filed by the collectee under the proviso to clause (a) shall contain the name, address, permanent account number of the person to whom credit for the tax collectible at source is to be given, amount of payment in relation to which credit is to be given and reasons for giving credit to such person.
(c) The collector shall issue the certificate for collection of tax at source under sub-section (3) of section 206C of the Act, in the name of the person in whose name credit is shown in the information relating to collection of tax referred to in sub-rule (1) and shall keep the declaration in his safe custody.”;
(c) in Form No. 27EQ, in the Annexure, after Verification, in the Notes, after Note 8, the following Note shall be inserted, namely:–
‘8A. Write “J” if no collection or lower collection is in view of notification issued under sub-section (12) of section 206C.’.
[No. 114/2024/F. No. 370142/21/2024-TPL]
KHUSHBOO LATHER, Under Secy.
Note : The Income-tax Rules, 1962 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 639 (E), dated the 15th October, 2024.
