CBDT- Insertion of rules for Implementing the Amendments of Taxation Laws Act,2021
The Central Board of Direct Taxes (CBDT) publishes Rules for executing the Taxation Laws(Amendment) Act, 2021 dated 2nd October 2021. The Taxation Laws (Amendment) Act, 2021 (2021 Act), among other factors, adjusted the Income-tax Act, 1961 (Income-tax Act) to offer that no tax request will be raised in the future for any offshore indirect transfer of Indian assets if the transaction was completed before May 28, 2012, based on the amendment to section 9 of the Income-tax Act formed by Finance Act, 2012.
The 2021 Act also states that any demand for an offshore indirect transfer of Indian assets made before May 28, 2012 (including the validation of demand provided under Section 119 of the Finance Act 2012) will be negotiated if certain conditions are met, including the withdrawal or furnishing of an undertaking for the withdrawal of pending litigation and the furnishing of an undertaking to the effect that no claim for cost, damages, interest, etc. shall be filed and such other conditions are fulfilled as may be prescribed. In these situations, the amount paid/collected will be reimbursed in full, with no interest, if the standards are fulfilled.
CBDT has said in a statement issued on 2nd October 2021 that "The draft rules, to amend the Income-tax Rules, 1962, prescribing the specified conditions as referred above and providing the form and manner for furnishing of undertaking for withdrawal of pending litigation, claiming no cost, damages, interest, etc. were circulated in public domain on 28th August, 2021, inviting suggestions/comments from all stakeholders by the 4th of September, 2021."
The statement has further revealed that after examining the stakeholder comments and incorporating several suggestions contained therein, the rules for implementing the 2021 Act have been published in the Official Gazette vide Notification No. GSR 713(E) dated 1st October, 2021 wherein the following rules have been inserted to the Income-tax Rules, 1962:
On Friday, CBDT said that the income tax department has granted over Rs 80,000 crore in refunds to over 49 lakh taxpayers in the ongoing fiscal year. "CBDT issues refunds of over Rs. 80,086 crore to more than 49.16 lakh taxpayers from 1st April 2021 to 27th September 2021. Income tax refunds of Rs. 19,699 crore have been issued in 47,53,254 cases & corporate tax refunds of Rs. 60,387 crore have been issued in 1,63,021 cases(1/2), a Twitter post of CBDT has revealed.
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