By Pramod Prabhudesai | Rutvik Sanghvi | Sonalee Godbole | Vinayak Pai V
Chartered Accountants
DIRECT TAX
1. Income-tax (31st Amendment) Rules, 2022 – Insertion of Rule 12AD: CBDT has inserted Rule 12AD in the Income-tax Rules which specifies that the modified return of income to be furnished by a successor entity to a business reorganisation, as referred to in section 170A, shall be in Form ITR-A and verified in the manner specified therein.
[Notification No. 110/2022 dated 19th September, 2022.]
2. Income-tax (32nd Amendment) Rules, 2022 – Insertion of Rule 132: The Finance Act, 2022 inserted an Explanation 3 with retrospective effect providing that for Section 40(a)(ii), the term ‘tax’ shall deemed to have always included ‘surcharge’ or ‘cess’. Accordingly, even for the past period, the deduction for ‘cess’ or ‘surcharge’ shall not be available. Newly inserted sub-section (18) to section 155 empowers the AO to re-compute the total income for such previous year in which the assessee claimed deduction of surcharge or cess. The income so computed shall be treated as under-reported income, and subject to levy of penalty. However, if the assessee makes an application to AO, requesting him for recomputation of total income without allowing the claim for deduction of surcharge or cess and pays the tax amount, such claim shall not be deemed to be under-reported income. CBDT has inserted Rule 132 prescribing the manner for making a
