The Central Board of Direct Taxes (CBDT) has notified Form No. 10BBA in respect of Application for Pension Fund and investment in terms of clause (23FE) of section 10 of the Income-tax Act, 1961.
The Board has notified the Income-tax (10th Amendment) Rules, 2021 which seeks to amend Income-tax Rules, 1962.
In the Income-tax Rules, 1962, in rule 2DB, after clause (iii), the proviso shall be inserted, namely “Provided that the provisions of clause (iii) shall not apply to any payment made to creditors or depositors for loan taken or borrowing for the purposes other than for making investment in India”.
In rule 2DB after clause (vi), the Explanation shall be inserted, namely ‘Explanation: For the purposes of this rule, “loan and borrowing” shall have the same meaning as assigned to it in sub-clause (b) of clause (ii) of Explanation 2 to clause (23FE) of section 10.’
In the principal rules, in rule 2DC, in sub-rule (1), for the word “Explanation”, the word and figure “Explanation 1” shall be substituted.
In the principal rules, in APPENDIX II, for Form No. 10BBA shall be substituted. The Form will deal with the Application for notification under sub-clause (iv) of clause (c) of Explanation 1 to the clause (23FE) of section 10 of the Income-tax Act, 1961.
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