CBDT AMENDS RULE 17CB TO REPLACE THE WORDS ” TRUST OR INSTITUTION” WITH SPECIFIED PERSON

CBDT amends rule 17CB to replace words ‘trust or institution’ with ‘specified person’ vide Notification No. 101/2022-Income Tax

Dated: 22nd August, 2022 MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) Notification No. 101/2022-Income Tax | Dated: 22nd August, 2022 G.S.R. 647(E).—

In exercise of the powers conferred by sub-section (2) of section 115TD read with section 295, 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. Short title and commencement.—

(1) These rules may be called the Income-tax (Twenty Eighth Amendment) Rules, 2022.

(2) They shall come into force from the date of its publication in the Official Gazette. 2. In the Income-tax Rules, 1962, in rule 17CB,—

(i) for the words “trust or institution” wherever they occur, the words “specified person” shall be substituted;

(ii) in Explanation, after clause

(h), the following clause shall be inserted, namely:-

‘(ha) “specified person” shall have the same meaning as assigned to it in clause

(iia) of the Explanation to section 115TD;’.

This amendment may have implications for trusts and institutions that are required to maintain books of account and get them audited under the Income Tax Act.

The specifics of how this amendment will affect trusts and institutions will depend on the context in which the term “specified person” is used in the Income Tax Act,and further clarifications or guidance from the CBDT may be needed to understand the full implications of this change.