CBDT releases draft Rule & Forms to implement amendments made by TLA 2021; invites public comments

Notification F.no. 370142/47/2021-TPL, dated 28-08-2021

The Taxation Laws (Amendment) Act, 2021 (TLA, 2021) has inserted three provisos (Fourth, Fifth, and Sixth Proviso) in Explanation 5 to Section 9(1)(i) to give relief to certain eligible entities impacted by the retrospective amendment made in said section.

The amendments brought by TLA 2021 provide that the provisions of indirect transfer of assets in India shall not apply to the assets transferred before 28-05-2012 (i.e., the date on which the Finance Bill, 2012 received the assent of the President). Accordingly, all pending assessments shall be deemed to have been concluded without additions for such income. It is further provided that the demand raised in concluded assessments or rectification orders for indirect transfer of Indian assets made before 28-05-2012 shall be nullified on the fulfillment of specified conditions.

Now, the Central Board of Direct Taxes (CBDT) has proposed to insert a new Rule 11UE along with Forms 1 to 4 which specify the conditions to be fulfilled and the process to be followed to give effect to the amendments made by the TLA 2021.

Click Here to Read The Full Circular