Income Tax: Finance Ministry Has This Big Update

New Delhi: The central government has amended the Income Tax Rules. The new amendment allows resolution professionals appointed by the National Company Law Tribunal (NCLT) to verify the tax returns of companies undergoing bankruptcy. The Ministry of Finance has made the amendments as per IANS report. Also Read – Afghanistan’s First Female Air Force Pilot said says: Taliban Will Hurt Women The Most

Income Tax Act

  • The Income-tax (24th Amendment) Rules, 2021, notified by the ministry on Wednesday also made it the obligation of the resolution professional to follow the rules meant for tax return preparers of certain assessees, the IANS report says.
  • The new rules allow the resolution professional to furnish details of the documents given by the assessee for preparation of the return as well as details of the scope and findings of any examination the representative has done on such documents in case of a company undergoing bankruptcy proceedings, as per the IANS report.
  • Under clause (c) and (cd) of section 140 of the IT Act, enables any other person, as may be prescribed by the board, to verify the return of income in the cases of a company and a limited liability partnership.
  • The gazette notification said that in the Income-tax Rules, 1962 after rule 12A, the following rule shall be inserted, namely: “12AA. Prescribed person for the purposes of clause (c) and clause (cd) of section 140. For the purpose of clause (c) or clause (cd), as the case may be, of section 140, any other person shall be the person, appointed by the Adjudicating Authority for discharging the duties and functions of an interim resolution professional, a resolution professional, or a liquidator, as the case may be, under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) and the rules and regulations made thereunder.”
  • According to experts, the move would align the two laws and ensure there is no inconsistency in the regulatory process.
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