1. Rule 132 is a beneficial clause allowing assessees to
comply with the provision of Section 155 which allows Assessing Officers to
re-compute the total income for such previous years in which the assessee would
have claimed deduction of surcharge or cess subject to be disallowed u/s
40(a)(ii).
2. CBDT has introduced Rule 132, which came into effect on
October 1, 2022. It deals with the re-computation of income U/S 155(18) of the
Income Tax Act, 1961, in the Income Tax Rules, 1962.
3. As per Finance Act 2022, a deduction for such cess and
surcharge on income tax is not an allowable deduction from the taxable profit.
This amendment has been made with retrospective effect from 2005. AO is
provided with the power to recompute Income on account of the retrospective
amendment in Sec 155(18).
4. However by way of Rule 132, a one time window is provided
to recompute Income by disallowing the cess and surcharge, which the assessee
would have claimed as a deduction.
5. The information about the cess and surcharge claimed is
to be submitted electronically on the income tax portal using Form 69. On
receipt of Form 69, the tax officer will recompute the taxable income of the
taxpayer and inform the additional tax to be payable by the taxpayer.
6. The taxpayer can then make the payment of tax and inform
the tax officer of the payment of tax in Form 70. No penalty would be leviable
on such payment.
7. The application in form 69 has to be filed on or before
the 31st day of March 2023 with PDGIT (Systems) or other prescribed tax
authorities.
No comments:
Post a Comment