New IT Rule 132 on “Application for Re-computation of Income under Sub-section (18) of Section 155” has been inserted by CBDT, along with new IT Forms 69 and 70, vide Income-tax (32nd Amendment) Rules, 2022, effective as of October 1, 2022 (Notification 111/2022).
New IT Form 69 is meant for submitting an application by an assessee, latest by March 31, 2023, for the re-computation of income under new IT Section 155(18), as inserted by the Finance Act, 2022, which deals with the retrospective disallowance of surcharge or cess as per amended Section 40(a)(ii).
As a result, on or before March 31, 2023, an application in Form No. 69 (to be furnished electronically) requesting a recalculation of total income for the previous year without allowing the claim for deduction of surcharge or cess, which was claimed and allowed as deduction under Section 40 in the said previous year, must be made.
Consequently, the AO shall modify the assessment order of past years on account of such retrospective disallowance of deduction for surcharge or cess. Furthermore, the new IT Form 70 is intended to notify the AO of the payment of tax on recalculated income under Section 155(18).
CBDT Income Tax Notification 111/2022 dt. 28/09/2022: New IT Rule 132 on Application for Re-computation of Income u/s 155(18) inserted along with new IT Forms 69 and 70
Text of New IT Rule 132: Application for recomputation of income under sub-section (18) of section 155
“(1) An application requesting for recomputation of total income of the previous year without allowing the claim for deduction of surcharge or cess, which has been claimed and allowed as deduction under section 40 in the said previous year, shall be made in Form No. 69 on or before 31/03/2023.
(2) Form No. 69 shall be furnished electronically to the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) or the person authorized by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems).
(3) Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall lay down the procedures and standards for furnishing and verification of Form No. 69 and to forward the application received in Form No. 69 to the Assessing Officer.
(4) The Assessing Officer shall, on receipt of the application in Form No. 69, recompute the total income by amending the relevant order and issue notice under section 156 specifying the time period within which amount of tax payable, if any, is to be paid,-
(i) for the assessment year relevant to the previous year referred to in sub-rule (1); and
(ii) for the assessment years subsequent to the assessment year referred to in clause (i), if the order for such assessment year results in variation in carry forward of loss or allowance for unabsorbed depreciation or credit for tax under section 115JAA or section 115JD.
(5) The assessee shall, after making the payment of the tax determined under sub-rule (4), furnish the details of payment of tax in Form No.70 to the Assessing Officer within thirty days from date of making the payment.”
New IT Form 69 and 70
Form No. 69*
[See rule 132]
Application for recomputation of income under sub-section (18) of section 155
Form No. 70*
[See rule 132]
Intimation to the Assessing Officer of the payment of tax on income recomputed under sub-section (18) of section 155
* Please refer above attachment for detailed formats of Form 69/70