CBDT notifies Rules on Retrospective Taxation not applicable on ‘Indirect Transfer’ prior to 28th May, 2012 [Read Notification]

The Central Board of Direct Taxes (CBDT) notified the Rules on Retrospective Taxation not applicable on ‘Indirect Transfer’ prior to 28th May, 2012.

The Board has notified the Income Tax (31st Amendment) Rules, 2021 which seeks to further amend Income Tax Rules, 1962 by inserting new Income Tax Rules 11UE and 11UF for provisions relating to ‘Indirect transfer prior to 28/05/2012 of assets situated in India’ along with Form 1 or 2 or 3.

Rule 11UE pertains to Specified conditions under Explanation to fifth and sixth proviso to Explanation 5 to clause (i) of sub-section (1) of section 9 which reads, “For the purposes of clauses (i), (ii) and (iii) of the Explanation to fifth and sixth proviso to Explanation 5 to clause (i) of sub-section (1) of section 9, the declarant shall furnish an undertaking in Form No. 1 and shall append the undertakings from all the interested parties in Part M of the Annexure to the undertaking in Form No. 1 and furnish all the attachments required to be furnished under any clause or Part thereof.”

Rule 11UF relates to the Manner of furnishing undertaking under rule 11UE which reads, “the undertaking in Form No. 1 under sub-rule (1) of rule 11UE shall be submitted by the declarant to the jurisdictional Principal Commissioner or Commissioner within forty-five days from the date of commencement of the Income-tax (31st Amendment) Rules, 2021.”

After the undertaking in Form No. 1 under sub-rule (1) of rule 11UE is furnished by the declarant, the jurisdictional Principal Commissioner or Commissioner shall, within a period of fifteen days from the date of receipt of the said undertaking, grant a certificate in Form No. 2 accepting such undertaking; or pass an order rejecting such undertaking, where the undertaking in Form No. 1 is incorrect or incomplete or any part thereof or any of the attachments or evidences or the indemnity bonds provided therein or any of the authorisations, as referred to in sub-rule (3) of rule 11UE is incorrect or incomplete or not furnished, after giving an opportunity of being heard to the declarant.

To Read the full text of the Notificati CLICK HERE

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