Framing of rules for the amendments made by the Taxation Laws(Amendment) Act, 2021

By | August 28, 2021
(Last Updated On: August 28, 2021)

Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 28th August, 2021
PRESS RELEASE

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Framing of rules for the amendments made by the Taxation Laws(Amendment) Act,
2021
The Taxation Laws (Amendment) Act, 2021 (2021 Act), which received the assent
of the President on the 13th August, 2021, has, inter-alia, amended the Income-tax Act,
1961 (Income-tax Act ) so as to provide that no tax demand shall be raised in future on
the basis of the amendment to section 9 of the Income-tax Act made vide Finance Act,
2012 for any offshore indirect transfer of Indian assets if the transaction was undertaken
before 28th May, 2012 (i.e., the date on which the Finance Bill, 2012 received the assent
of the President).

The amendment made by 2021 Act also provides that the demand raised for
offshore indirect transfer of Indian assets made before 28th May, 2012 (including the
validation of demand provided under Section 119 of the Finance Act 2012) shall be
nullified on fulfillment of specified conditions such as withdrawal or furnishing of
undertaking for withdrawal of pending litigation and 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. The amount paid/collected in these cases
shall be refunded, without any interest, on fulfillment of the said conditions.

The aim of the amendment made by the 2021 Act is to bring tax certainty and
ensure that once specified conditions are fulfilled, the pending Income-tax proceedings
shall be withdrawn, demand, if any, raised shall be nullified, and amount, if any, collected
shall be refunded to the taxpayer without any interest. To implement the amendment
made by 2021 Act, draft rules have been prepared to amend the Income-tax Rules, 1962
which specify the conditions to be fulfilled and the process to be followed to give effect to
the amendment made by the 2021 Act.
The draft notification containing the proposed rules is placed in public domain and
can be accessed at www.incometaxindia.gov.in.
Suggestions/comments on the draft notification are invited from all stakeholders
and the public and can be furnished electronically at the email address ustpl1@nic.in
latest by 4th September, 2021.
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT

 

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