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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 21st June, 2023
INCOME-TAX
G.S.R. 452(E).—In exercise of the powers conferred by clauses (i) and (iii) of sub-section (2), second
proviso to sub-section (3) and sub-section (6) of section 115BAC, sub- clause (iii) of clause (c) of sub-section (2) of
section 115BAE read with section 295 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 (Tenth Amendment)
Rules, 2023.
(2) Save as otherwise provided in these rules, they shall come into force from the date of their publication in the
Official Gazette.
2. In the Income-tax Rules, 1962 (hereafter referred to as the principal rules),—
(a) in rule 2BB, for sub-rule (3), the following sub-rule shall be substituted, namely:-
“(3) Notwithstanding anything contained in sub-rule (1) and (2), an employee, being an assessee, -
(i) who has exercised option under sub-section (5) of section 115BAC; or
(ii) whose income is chargeable to tax under sub-section (1A) of section 115BAC,
shall be entitled to exemption only in respect of the allowances mentioned in sub-clauses (a) to (c) of sub-rule
(1) and at serial no. 11 of the Table below sub-rule (2) to the extent and subject to the conditions, if any,
specified therein.”;
(b) in rule 3, in sub-rule (7), in clause (iii), for the second proviso, the following proviso shall be
substituted, namely:-
“Provided further that the provisions of the first proviso in respect of free food and non-alcoholic
beverage provided by the employer through paid voucher shall not apply to an employee, being an
assessee, who has exercised an option under sub-section (5) of section 115BAC or whose income is
chargeable to tax under sub-section (1A) of section 115BAC.”;
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
(c) in rule 5, in sub-rule (1) -
(a) for the first proviso, the following proviso shall be substituted, namely: -
“Provided that the allowance under clause (ii) of sub-section (1) of section 32 in respect of
depreciation of any block of assets shall not exceed forty per cent. of the written down
value of such block of assets in case of -
(i)
a domestic company which has exercised option under sub-section (4) of section
115BA, or under sub-section (5) of section 115BAA, or under sub-section (7) of
section 115BAB; or
(ii)
an individual or a Hindu undivided family which has exercised option under
sub-section (5) of section 115BAC; or
(iia)
an individual or a Hindu undivided family, or an association of persons (other
than a co-operative society) or a body of individuals, whether incorporated or
not, or an artificial juridical person referred to in sub-clause (vii) of clause (31)
of section 2 whose income is chargeable to tax under sub-section (1A) of section
115BAC; or
(iii)
a co-operative society resident in India which has exercised option under sub-
section (5) of section 115BAD; or
(iv)
a co-operative society resident in India which has exercised option under sub-
section (5) of section 115BAE:”;
(b) in the third proviso, for the words, figures and letters “for the purposes of section
115BAC”, the words, figures, letters and brackets “for the purposes of section 115BAC
[as it stood immediately before its amendment by the Finance Act, 2023]” shall be
substituted;
(c) after the third proviso, the following proviso shall be inserted, namely:-
“Provided also that, where income is chargeable to tax under sub-section (1A) of
section 115BAC, the written down value of the block of asset as on the 1st day of
April, 2023 shall be increased by such depreciation which is attributable to clause
(iia) of sub-section (1) of section 32 and which is not allowed to be set off under
sub-clause (a) of clause (ii) of sub-section (2) of section 115BAC if both the
following conditions are satisfied, namely: -
(i)
the assessee has not exercised option under sub-section (5) for any
previous year relevant to the assessment year beginning on or before the
1st day of April, 2023; and
(ii)
there is a depreciation allowance in respect of a block of assets which has
not been given full effect to prior to the assessment year beginning on the
1st day of April, 2024, and is attributable to the provisions of clause (iia) of
sub-section (1) of section 32.”;
(d) after rule 21AG, the following rule shall be inserted, namely:-
“21AGA. Exercise of option under sub-section (6) of section 115BAC.-(1) The option to be
exercised in accordance with the provisions of sub-section (6) of section 115BAC by a person, being
an individual or Hindu undivided family, or an association of persons (other than a co-operative
society) or a body of individuals, whether incorporated or not, or an artificial juridical person
referred to in sub-clause (vii) of clause (31) of section 2, for any previous year relevant to the
assessment year beginning on or after the 1st day of April, 2024, shall be, -
(a)
in Form No. 10-IEA on or before the due date specified under sub-section (1) of
section 139 for furnishing the return of income for such assessment year, in the case
of a person having income from business or profession;
(b)
in the return of income to be furnished under sub-section (1) of section 139 for such
assessment year, in the case of a person not having income from business or
profession as referred to in clause (i).
(2) The withdrawal of option under the proviso to sub-section (6) of section 115BAC shall also be
in Form No. 10-IEA.
[भाग II—खण् ड 3(i)]
भारत का राजपत्र : ऄसाधारण
7
(3) Form No. 10-IEA shall be furnished electronically either under digital signature or electronic
verification code.
(4) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax
(Systems), as the case may be, shall, -
(a)
specify the procedure for furnishing of Form No. 10-IEA;
(b)
specify the data structure, standards and manner of generation of electronic verification
code, referred to in sub-rule (3), for verification of the person furnishing the said Form;
and
(c)
be responsible for formulating and implementing appropriate security, archival and
retrieval policies in relation to the Form so furnished.
Explanation.—For the purposes of this rule "electronic verification code" means a code generated
for the purpose of electronic verification of the person furnishing the Form as per the data structure
and standards specified by the Principal Director General of Income-tax (Systems) or the Director
General of Income-tax (Systems) as the case may be.”
(e) In the principal rules, in the Appendix, after Form No. 10IE, the following form shall be inserted,
namely:-
“FORM No. 10-IEA
[See rule 21AGA]
Application for exercise of option under clause (i) of sub-section (6) of section 115BAC or withdrawal of
option under the proviso to sub-section (6) of section 115BAC of the Income-tax Act, 1961
To,
The Assessing Officer
……………..
……….........
Sl.No.
1.
Name
:
2.
PAN
:
3.
Status of the person referred to in
sub-section(1A) of section 115BAC
:
4.
Assessment year for which the form
is being furnished
: yyyy - yy
5.
Whether opting out of or re-entering
the regime provided under sub-
section (1A) of section 115BAC
: Opting out/ Re-entering
6.
If re-entering as per inputs in 5,
provide
details
of
the
option
exercised earlier.
Date of exercising the
option for opting out
under clause (i) of sub-
section (6) of section
115BAC in Form No.
10IEA
First assessment year for
which
the
option
was
exercised.
Dd/mm/yyyy
20….
7.
Whether
having
any
Unit
in
International
Financial
Services
Centre (IFSC), as referred to in sub-
section (1A) of section 80LA ( if re-
entering as per row 5)
: Yes/No
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
Undertaking
I ……………(Name in full and in block letters) having PAN…………..son/daughter/wife of……………….
(in case of individual) do hereby declare that to the best of my knowledge and belief what is stated in the Form
above is correct and complete. I further declare that I am furnishing such statement in my capacity
as…………………(designation) and that I am competent to make this declaration and furnish this Form.
I further declare that the person referred to at serial no. 1 having PAN at serial no. 2 has income under the head
“Profits and gains from business or profession” during the assessment year referred to at serial no. 4.
I also declare re-entering sub-section (1A) of section 115BAC of the Act shall render the person referred to at
serial no. 1 having PAN at serial no. 2 ineligible for opting out of sub-section (1A) of section 115BAC.
Place:
Date:
Yours faithfully,
Signature*…………….……………….
Name…………………………………
Designation………………………….
Address…………………….…………
*Signature of the person competent to verify the return of income of the Individual/ HUF / association of persons (other
than a co-operative society)/body of individuals, whether incorporated or not/ an artificial juridical person referred to
in sub-clause (vii) of clause (31) of section 2 in accordance with the provisions of section 140 of the Act.
Note: For status of the person one of the following codes to be selected:
Sl.No.
Code
(i)
Individual
1
(ii)
Hindu Undivided Family (HUF)
2
(iii)
association of persons (other than a co-operative society)
3
(iv)
Body of individuals, whether incorporated or not
4
(v)
An artificial juridical person referred to in sub-clause (vii) of clause
(31) of section 2 of the Act
5”.
[Notification No. 43/2023/F. No. 370142/15/2023-TPL]
KAMLESH CHANDRA VARSHNEY, Jt. Secy.
Note : The principal rules were published vide notification number S.O. 969(E), dated the, 26th March, 1962 and last
amended vide notification number G.S.R. 432 (E) dated the 12th June, 2023.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
8.
If yes in 7, provide details regarding
Units in IFSC: (Add number of
columns depending on number of
Units)
Unit 1
Unit 2
Unit 3
(1)
(2)
(3)
(4)
Name of Unit
Address of Unit
Nature of activities
undertaken in Unit
