Amendment in Rule 8D of Income Tax Rules

NOTIFICATION
New Delhi, the 02nd June, 2016
 
S.O. 1949(E)- In exercise of the powers conferred by section 295 read with subsection (2) of section 14A of the Income-tax Act, 1961 (43 of 1961), the Central
Government hereby makes the following rules further to amend the Income-tax Rules,
1962, namely:-
1. (1) These rules may be called the Income–tax (14th Amendment) Rules, 2016.
 
(2) They shall come into force on the date of their publication in the Official Gazette.
 
2. In the Income-tax Rules 1962, in rule 8D,-
 
(I) for sub-rule (2), the following sub-rule shall be substituted, namely:-
“(2) The expenditure in relation to income which does not form part of the total income
shall be the aggregate of following amounts, namely:—
(i) the amount of expenditure directly relating to income which does not form part of
total income; and
 
(ii) an amount equal to one per cent of the annual average of the monthly averages of the
opening and closing balances of the value of investment, income from which does not or
shall not form part of total income:
Provided that the amount referred to in clause (i) and clause (ii) shall not exceed the tota expenditure claimed by the assessee.”;
 
(II) sub-rule (3) shall be omitted

Notification by CBDT relaxing 15CA 15CB rules

Notification No. 93/2015 dated 16.12.2015 is issued by Central Board of Direct Taxes for relaxation of 15CA and 15CB compliance.

The Notification has expressly reduced the burden for the following items:

1. 15CB will be required only if the payment made to non-resident which is chargeable to tax exceeds Rs.5 lacs.

2. Specified List is categorically exempt from obtaining 15CA 15CB certifications. Now, even Imports are covered under this new list of 33 specified items. The list is given below

3. No 15CA 15CB is required if the remittance is by Individual and it does not require prior permission from RBI

 

CBDT EXTENDS TAR / TAX AUDIT REPORT AND INCOME-TAX RETURN FILING DUE-DATE!!!!!