10-8-2006

Notification no. 208/2006

 

In exercise of the powers conferred by section 295 read with section 44AB of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (Ninth Amendment) Rules, 2006.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962, in Appendix II, in Form No 3CD, -

(i) in item 7, for sub-item (b), the following sub-item shall be substituted, namely -

"(b) If there is any change in the partners or members or in their profit sharing ratio since the last date of the preceding year, the particulars of such change";

(ii) in item 8, for sub-item (a), the following sub-item shall be substituted namely:-

"(a) Nature of business or profession (if more than one business or profession is carried on during the previous year, nature of every business or profession).";

(iii) after item 12, the following item shall be inserted, namely:-

"12A Give the following particulars of the capital asset converted into stock-in-trade: -

(a) Description of capital asset,

(b) Date of acquisition;

(c) Cost of acquisition;

(d) Amount at which the asset is converted into stock-in-trade.",

(iv) in item 13, in sub-item (b), for the words "refunds of duty of customs or excise, or refunds of sales tax", the words "refund of duty of customs or excise or service tax, or refund of sales tax or value added tax" shall be substituted;

(v) in item 15 for the words, figures and letters "Amounts admissible under sections 33AB, 33ABA, 33AC, 35, 35ABB, 35AC, 35CCA, 35CCB, 35D, 35E", the words, brackets, letters and figures "Amounts admissible under sections -

(a) 33AB

(b) 33ABA

(c) 33AC (wherever applicable)

(d) 35

(e) 35ABB

(f) 35AC

(g) 35CCA

(h) 35CCB

(i) 35D

(j) 35DD

(k) 35DDA

(l) 35E"

shall be substituted;

(vi) in item 17,-

(a) for sub-item (h), the following sub-item shall be substituted, namely.-

"(h) (A) whether a certificate has been obtained from the assessee regarding payments relating to any expenditure covered under section 40A(3) that the payments were made by account payee cheques drawn on a bank or account payee bank draft, as the case may be,     [Yes/No]

(B) amount inadmissible under section 40A(3), read with rule 6DD [with break-up of inadmissible amounts]";

(b) after sub-item (k), the following sub-items shall be inserted, namely:-

"(l) amount of deduction inadmissible in terms of section 14A in respect of the expenditure incurred in relation to income which does not form part of the total income,

(m) amount inadmissible under the proviso to section 36(1)(iii).";

(vii) in item 21,-

(a) in sub-item (i), for the words, brackets, letters and figures "clauses (a), (c), (d) or (e) of section 43B", the words, brackets, letters and figures "clauses (a), (b), (c), (d), (e) or (f) of section 43B" shall be substituted,

(b) sub-item (ii) shall be omitted;

(viii) in item 24, after sub-item (b), the following sub-item shall be inserted, namely:-

"(c) Whether a certificate has been obtained from the assessee regarding taking or accepting loan or deposit, or repayment of the same through an account payee cheque or an account payee bank draft.      [Yes/No]

The particulars (i) to (iv) at (b) and the Certificate at (c) above need not be given in the case of a repayment of any loan or deposit taken or accepted from Government, Government company, banking company or a corporation established by a Central, State or Provincial Act",

(ix) item 25 shall be lettered as sub-item (a) thereof and after the sub-item as so lettered the following sub-item shall be inserted, namely:-

"(b) whether a change in shareholding of the company has taken place in the previous year due to which the losses incurred prior to the previous year cannot be allowed to be carried forward in terms of section 79.";

(x) for item 27, the following item shall be substituted, namely -

"27. (a) Whether the assessee has complied with the provisions of Chapter XVII-B regarding deduction of tax at source and regarding the payment thereof to the credit of the Central Government.                                   [Yes/No]

(b) If the provisions of Chapter XVII-B have not been complied with,

please give the following details*, namely:-

 

		Amount
(i)	Tax deductible and not deducted at all	........
(ii)	shortfall on account of lesser deduction than required to be deducted	........
(iii)	tax deducted late	........
(iv)	tax deducted but not paid to the credit of the Central Government	........

"Please give the details of cases covered in (i) to (iv) above.";

(xi) (a)    The Annexure shall be numbered as Annexure-I and in the Annexure as so numbered, in Part B thereof,

(i) for the words, 'Nature of Business', the words 'Nature of business or profession in respect of every business or profession carried on during the previous year' shall be substituted;

(ii) in Sl. No. 1, for the words "Paid-up share capital", the words "Paid-up share capital/capital of partner/proprietor" shall be substituted;

(iii) in Sl. No. 2, for the words "Share Application Money", the words "Share Application Money/Current Account of Partner or Proprietor, if any," shall be substituted;

(iv) in Sl. No 3, for the words "Reserves and Surplus", the words "Reserves and Surplus/Profit and Loss Account" shall be substituted;

(v) in Sl. No. 8, for the words "Gross turnover", the words "Gross turnover/gross receipts" shall be substituted,

(vi) in Sl. No 15, for the words and brackets "Net Profit (or loss) before tax", the words and brackets "Net Profit (or loss) before tax as per Profit and Loss Account" shall be substituted.

(b)   after the Annexure-I as so numbered, the following Annexure shall be inserted, namely-

 

 

"Annexure - II

 

VALUE OF FRINGE BENEFITS IN TERMS OF SECTION 115WC READ WITH SECTION 115WB FOR THE ASSESSMENT YEAR

 

Sl. No.	Section under which chargeable to Fringe Benefit Tax	Nature of expenditure/payment	Amount of expenditure incurred or payment made					Deductions, if any	Total	Percentage expenditure/Payment being fringe benefits	Value of fringe benefits
(1)	(2)	(3)	(4)					(5)	(6) (4-5)	(7)	(8)
			Debited to the Profit and Loss Account	Accounted for in the balance sheet	Reimbursement	Any other head	Total
1.	115WB(1)(b)	Free or concessional ticket provided by the employer for private journeys of his employees or their family members								100%
2.	115WB(1)(c)	Any contribution by the employer to any approved Superannuation fund for employees (see Note 1)								100%
3.	115WB(2)(A)	Entertainment								20%
4.	115WB(2)(B)	Provision of Hospitality of every kind by the employer to any person (see Note 2)								20% (see Note 3)
5.	115WB(2)(C)	Conference (other than fee for participation by the employees in any conference (see Note 4)								20%
6.	115WB(2)(D)	Sales promotion including publicity (see Note 5)								20%
7.	115WB(2)(E)	Employees' Welfare (see Note 6)								20%
8.	115WB(2)(F)	Conveyance, tour and travel (including foreign travel) (see Note 7)								20% (see Note 8)
9.	115WB(2)(G)	Use of hotel, boarding and lodging facilities								20% (see Note 9)
10.	115WB(2)(H)	Repair, running (including fuel), maintenance of motor cars and the amount of depreciation thereon								20% (see Note 10)
11.	115WB(2)(I)	Repair, running (including fuel) and maintenance of aircrafts and the amount of depreciation thereon								20% (see Note 11)
12.	115WB(2)(J)	Use of telephone (including mobile phone) other than expenditure on leased telephone lines								20%
13	115WB(2)(K)	Maintenance of any accommodation in the nature of guest house other than accommodation used for training purposes								20%
14.	115WB(2)(L)	Festival celebrations								50%
15.	115WB(2)(M)	Use of health club and similar facilities								50%
16.