The Central Board of Direct Taxes (CBDT) has notified Form ITR-A for filing the modified income tax return under Section 170A of Income Tax Act, 1961 pursuant to business reorganisation.
The CBDT, vide Notification No. G.S.R 709(E), dated 19.09.2022, introduced Rule 12AD to the Income Tax Rules, 1962 through the Income Tax (31st Amendment) Rules, 2022.
As per the newly inserted Rule 12 AD, the modified return of income to be furnished by a successor entity to a business reorganisation, as referred to in Section 170A, shall be in the Form ITR-A, which shall be verified and furnished electronically.
Further, the rule mandates the Principal Director-General of Income-tax (Systems) or Director-General of Income-tax (Systems) to specify the procedures, formats and standards for ensuring secure capture and transmission of data. The specified income tax authorities are also directed to evolve and implement appropriate security, archival and retrieval policies relating to furnishing the modified return in Form ITR-A electronically.
"If the assessment or reassessment proceedings for an assessment year relevant to a previous year to which the order of the business reorganisation applies have been completed or are pending on the date of furnishing of the modified return in accordance with the provisions of section 170A, the Assessing Officer shall, pass an order modifying the total income of the relevant assessment year determined in such assessment or reassessment, or proceed to complete the assessment or reassessment proceedings, as the case may be, in accordance with the order of the business reorganisation and the modified return so furnished.", the Rule provides.
The Income Tax (31st Amendment) Rules, 2022 shall come into force from 1st November, 2022.
Notification No.: G.S.R 709(E)