CBDT notifies Rules for implementing the amendments made by the Taxation Laws (Amendment) Act 2021
The Taxation Laws (Amendment) Act, 2021 (2021 Act), among other things, amended the Income-tax Act, 1961 (Income-tax Act) to provide that no tax demand will be raised in the future for any offshore indirect transfer of Indian assets if the transaction was completed before May 28, 2012, based on the amendment to section 9 of the Income-tax Act made by Finance Act, 2012. (i.e., the date on which the Finance Bill, 2012 received the assent of the President).
The 2021 Act also states that any demand for an offshore indirect transfer of Indian assets made before May 28, 2012 (including the validation of demand provided under Section 119 of the Finance Act 2012) will be nullified if certain conditions are met, including the withdrawal or furnishing of an undertaking for the withdrawal of pending litigation and the furnishing of an undertaking to the effeminate. In these circumstances, the sum paid/collected will be repaid in full, with no interest, if the conditions are met.
On the 28th of August, 2021, the draught rules to amend the Income-tax Rules, 1962, prescribing the specified conditions as referred to above and providing the form and manner for furnishing an undertaking for withdrawal of pending litigation, claiming no cost, damages, interest, etc. were circulated in the public domain, inviting suggestions/comments from all stakeholders by September 4th, 2021.
After reviewing stakeholder comments and integrating many proposals, the rules for implementing the 2021 Act were published in the Official Gazette via Notification No. GSR 713(E) dated 1st October, 2021, which added the following rules to the Income-tax Rules, 1962:
i. Rule 11UE which provides for the specified conditions in order to be eligible to claim relief under 2021 Act; and
ii. Rule 11UF which provides the form and manner of furnishing the undertaking for withdrawal of pending litigation, claiming no cost, damages, etc.
To Read the Official Notification Download PDF Given Below :