On October 31, 2023, CBDT published Notification No. 94/2023-Income Tax, which made substantial changes to the Income-tax Rules, 1962. This essay explores the modifications, with a special emphasis on Form ITR-7, which will be in effect starting with the assessment year that starts on April 1, 2023.
Changes to Part B–TI and Part B–TTI portions of Form ITR-7 are brought about by the modification. Serial number 16 in Part B-TI now deals with specific income that is subject to 30% taxation under section 115BBI, whereas serial number 17 determines the total income that will be subject to regular rates of taxation. Based on the changes in Part B–TI, Part B–TTI, serial number 1a, computes tax at standard rates. The amendment simplifies and clarifies the method of calculating taxes for the designated assessment year.
G.S.R. 813(E).—In exercise of the powers by section 139 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:–
1. Short title and commencement.
(1) These rules may be called the Income-tax (Twenty-Seventh Amendment) Rules, 2023.
(2) They shall be deemed to have come into force from 1st day of April, 2023.
2. In the Income-tax Rules, 1962, in Appendix II, in Form ITR-7, in PART-B for the assessment year commencing on the 1st day of April, 2023
(a) in Part B–TI, the Part B 1, for serial number 16 and entries relating thereto, the following serial number and entries thereto shall be substituted, namely:
[table id=63 /]
(b) in Part B–TTI, against serial number 1, for item a and entries relating thereto, the following item and entried thereto, shall be substituted, namely:
[table id=64 /]