New IT Rule 132 on Application for Re-computation of Income u/s 155(18): CBDT Income Tax Notification 111/2022

New IT Rule 132 on “Application for Re-computation of income under sub-section (18) of section 155″ inserted by CBDT, along with new IT Forms 69 and 70, vide Income-tax (32nd Amendment) Rules, 2022 (Notification 111/2022).

New IT Form 69 is meant for submitting Application by an Assessee, latest by 31/03/2023, for Re-computation of Income under new IT Section 155(18), as inserted by the Finance Act, 2022, which deals with retrospective disallowance of surcharge/ cess as per amended Section 40(a)(ii). Accordingly, the AO shall modify the assessment order of past years on account of such retrospective disallowance of deduction for surcharge/ cess.  Further, new IT Form 70 is meant for intimating the AO about payment of tax on re-computed income u/s 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

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

G.S.R. 733(E).- In exercise of the powers conferred by section 295 read with sub-section (18) of section 155 of the Income-tax Act, 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 (32nd Amendment) Rules, 2022.

(2) They shall come into force from 01/10/2022.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 131, the following rule shall be inserted, namely–

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.

3. In the principal rules, after Form No.68, the following Forms shall be inserted, namely:-

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

Note.– The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O. 969 (E), dated 26/03/1962 and was last amended vide notification number G.S.R.709 (E) dated 19/09/2022.

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