REGULATORY REFERENCER

DIRECT TAX

1. Income-tax (6th Amendment) Rules, 2022: Section 89A provides that the income of a resident person from retirement benefits account maintained in a notified country shall be taxed in the manner and the year as prescribed by the Central Government. The CBDT has notified Rule 21AAA prescribing the manner for taxation of income from such accounts. The Rule provides that any income accrued in retirement benefits account shall, at the option of the assessee, be taxed in India in the year in which such income is taxed in the country wherein such account is maintained. The option can be exercised by filing Form No. 10-EE on or before furnishing the return of income. The notified countries are Canada, the UK, Northern Ireland and the USA. [Notification Nos. 24/ 2022 and 25/2022 dated 4th April, 2022.]

2. Income-tax (9th Amendment) Rules, 2022: Rule 12AB is inserted to prescribe additional conditions for furnishing return of income by persons (other than a company or a firm) referred to in section 139 (1)(b). As per the new Rule, if any person falls in any of the following conditions, then he is mandatorily required to file his Income-tax return: a) if total sales, turnover, or gross receipts in the business exceeds Rs. 60 lakh during the previous year; or b) if total gross receipts in profession exceed Rs. 10 lakh during the previous year; or c) if the aggregate of TDS and TCS during the previous year, is Rs 25,000