CBDT Amends and Inserts Rule 6ABBB in Income Tax Rules, 1962 [Read Order]

The Central Board of Direct Taxes(CBDT) amended and inserted the Rule 6ABBB to the  Income Tax Rules ,1962which provides a form of statement to be submitted for expense incurred under section 35 D of the Income Tax Act, 1961.

In exercise of the powers conferred by proviso to clause (a) of sub-section (2) and sub-section (4) of section 35D read with section 295 of the Income-tax Act 1961 (43 of 1961), the Central Board of Direct Taxes amended the Income-tax Rules, 1962.

These rules may be called the Income-tax (Fourteenth Amendment) Rules, 2023 which shall come into force with effect from the 1st day of April, 2024.

In the Income-tax Rules, 1962, after rule 6ABBA, the following rule shall be inserted, namely

 “6ABBB. Form of statement to be furnished regarding preliminary expenses incurred under section 35D.–

(1) The statement containing particulars of expenditure required to be furnished under proviso to clause (a) of subsection (2) of section 35D by the assessee shall be in Form No. 3AF for each previous year.

(2) Form No. 3AF shall be furnished one month prior to the due date for furnishing the return of income as specified under sub-section (1) of section 139.

(3) Form No. 3AF shall be furnished to the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, or any person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems).

(4) Form No. 3AF, shall be furnished electronically,—

(i)   under digital signature, if the return of income is required to be furnished under digital signature; (ii)   through electronic verification code in a case not covered under clause (i).

(5) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as the case may be, shall specify the procedures for furnishing Form No. 3AF and shall also be responsible for formulating and evolving appropriate security, archival and retrieval policies in relation to the form so furnished.

(6) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as the case may be, or any person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall forward Form No. 3AF to the Assessing Officer.”.

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