The CBDT released Notification 70/2023, introducing new I-T Rules 13 and 13A, as well as new I-T Forms 6C and 6CA under Income-tax Rules, 1962.
These changes outline the process to request services and make references under section 132(2) and (9D) of the Income-Tax Act, along with property valuation under section 132(9D). Specifically, new I-T Rule 13 guides the procedure, and new I-T Rule 13A sets property, jewellery, art, shares, and securities valuation as per section 132(9D).
Furthermore, Form No. 6C (Application under section 132(2)/132(9D) with I-T Rule 13) and Form No. 6CA (Report under section 132(9D) of Income Tax Act, 1961) are now part of Income-tax Rules, 1962.
New I-T Rule 13: Procedure to requisition services u/s 132(2) and to make a reference u/s 132(9D)
A new Income-tax Rule 13 has been added to the Income-tax Rules, 1962. This rule covers the process of requesting services under section 132(2) and making a reference under section 132(9D) of the Income-tax Act, 1961.
1. Rule 13 permits Principal Chief Commissioners, Chief Commissioners, Principal Director Generals, and Director Generals to approve individuals or entities for service requisition under section 132(2) and for making references under section 132(9D).
2. The authorized officer, as defined in section 132(2) or section 132(9D), can request services or make references to approved individuals as mentioned in point 1.
3. Individuals or entities or registered valuers interested in this process should complete Form No. 6C.
4. Applications will be processed by the concerned authorities (Principal Chief Commissioner, Chief Commissioner, Principal Director General, or Director General) within six months from the application month. They can either grant approval or reject the application.
5. Once approval is granted to an individual, entity, or registered valuer, the approving authority will issue a Designated Approval Number.
6. In cases where the authorized officer deems it necessary, they can request services or make references to non-approved individuals or entities after recording reasons. Within thirty days of such requisition, the Principal Chief Commissioner, Chief Commissioner, Principal Director General, or Director General must provide approval.
The rule also includes explanatory notes, definitions, and form No. 6C to be filled out.
New I-T Rule 13A: Valuation under section 132(9D)
Income-tax Rules, 1962 now include Rule 13A about valuation under section 132(9D) of the Income-tax Act, 1961.
1. For immovable property like land or building:
i) Use value set by Central or State Government for stamp duty payment.
ii) Include construction and improvements cost.
iii) Date for valuation is when referred under section 132(9D).
2. For jewelry, art, shares, securities:
i) Follow valuation method in rule 11UA.
ii) Use dates from section 132(9D) reference.
3. For other property:
i) Use typical market sale price.
ii) Date for valuation is when referred under section 132(9D).
4. The person referred by officer under section 132(9D) submits valuation in Form No. 6CA.
The rule includes explanatory notes and Form No. 6CA for submission.
CBDT Income Tax Notification 70/2023 dated 28/08/2023: New I-T Rules 13, 13A and Forms 6C, 6CA Notified