CBDT Notifies Income Tax Amendment (Thirteenth Amendment) Rules, 2022

On 6th May 2022, The Central Board of Direct Taxes notified Income Tax Amendment (Thirteenth Amendment) Rules, 2022, set to come into force on the date of their publication in the Official Gazette.

The amendment Rules lay down the formula for computing infrastructure investments of sovereign wealth funds (SWFs) and pension funds that are eligible for income tax incentives, and the scheme of computation of tax-exempt income attributable to these investments. Rule 2DCA has been inserted to this effect. 

Further, the Rules also state that, for the purpose of valuation, Section 10 of the Income Tax Act, 1961 identifies incomes that are exempted from such valuation. Where any income is not included in the specified person’s (Section 10(23FE) income, and where after any previous year if a person fails to meet any of the listed provisions for the valuation of that income that has to be excluded, it will be taxed as personal income.

The Rules also place the following responsibilities on The Principal Director General of Income-tax (Systems) or the Director-General of Income-tax (Systems) to: 

(i) specify the procedure, formats and standards for ensuring secure capture and transmission of the data in Form No. 10BBD. 

(ii) Specify the procedure, format, data structure, standards and manner of generation of electronic
verification code, referred to in sub-rule (9), for verification of the person furnishing the said Form. 

(ii) Be responsible for evolving and implementing appropriate security, archival and retrieval policies in relation to the Form No 10BBD so furnished. 

The following modifications have also been introduced vide amendments to Rule 3: 

  1. Intimation Form (10BBB) has been substituted by the Pension Fund of investment under Section 10(23FE).
  2. Form 10BBC- Certificate of accountant in respect of compliance to the provisions is substituted by the notified Pension Fund.
  3. New Form 10BBD- Statement of eligible investment received has been inserted.