The Central Board of Direct Taxes (CBDT) has published modified regulations that include a new provision Rule 12AD for the return of income reported in Form ITR-A by a successor firm to a business reorganization.
According to Rule 12AD, “the modified return of income to be given by a successor entity to a business reorganization, as described to in section 170A, for an assessment year shall be in the Form ITR-A and validated in the manner prescribed therein.”
(2) The income return referred to in sub-rule (1) must be submitted electronically using a digital signature. (3) If the assessment or reassessment proceedings for an assessment year relevant to a previous year to which the order of business reorganization applies have been completed or are pending on the date of furnishing the modified return in accordance with the provisions of section 170A, the Assessing Officer shall either pass an order modifying the total income of the relevant assessment year determined in such assessment or reassessment or proceed to complete the assessments.
The Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems) shall specify the procedures, formats, and standards for ensuring secure data capture and transmission, as well as being responsible for developing and implementing appropriate security, archival, and retrieval policies in relation to furnishing the return in the manner specified in sub-rule (2).’
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These regulations may be referred to as the Income-tax (31st Amendment) Rules, 2022. (2) They will become effective on November 1st, 2022.