Income-Tax (Twelfth Amendment) Rules, 2022

The Central Board of Direct Taxes (CBDT) on May 05, 2022, has issued the Income-tax (Twelfth Amendment) Rules, 2022 to further amend the Income-tax Rules, 1962. With this amendment, CBDT notifies Rule 44E of the

Income Tax Rules, 1962 related to the Application for obtaining an advance ruling and introduces amended FORM No. 34C, 34D, 34DA, 34E, and 34EA.

Synopsis of Income-Tax (Twelfth Amendment) Rules, 2022

As mentioned above, the CBDT vide Notification No. 49/2022 dated May 5, 2022, has issued the Income-tax (Twelfth Amendment) Rules, 2022 to further amend Rule 44E of the Income-Tax Rules, 1962 with respect to an application for obtaining an advance ruling under Section 245Q(1) of the Income-tax Act, 1961 in the following manner:

Omitted the requirement of filing the application in quadruplicate under Rule 44E(1) of the IT Rules, for obtaining an advance ruling.
Substituted Rule 44E(2) of the IT Rules to notify the procedure of verification of the annexures and the statements and documents accompanying the annexures in the application for obtaining an advance ruling.
Substituted FORM No. 34C for application by a non-resident applicant for obtaining an advance ruling.
Substituted FORM No. 34D for application by a non-resident applicant for obtaining an advance ruling.
Substituted FORM No. 34DA for application by a non-resident applicant for obtaining an advance ruling.
Substituted FORM No. 34E for application by a person falling within a certain class or category of persons as notified by the Central Government, for obtaining an advance ruling.
Substituted FORM No. 34EA for application for obtaining an advance ruling.

Amendment in Rule 44E of Income-tax Rules

Vide the Income-tax (Twelfth Amendment) Rules, 2022, In rule 44E which specifies the Application for obtaining an advance ruling, sub-rule (2) has been substituted, as follows: “(2) The application referred to in sub-rule (1), the verification, the annexures, and the statements and documents accompanying the annexures of the application, shall be signed and verified as under:

In case of	Digitally Signed	Sign and Verification	Where, for any unavoidable reason, it is not possible to sign the application by the person as specified in Column 3 (4)
Individual	Yes, if it's required under these rules to furnish his return of income under digital signature or communicated through his registered e-mail address	By himself	By any person duly authorized by him on this behalf
Hindu Undivided Family	By the Karta	By any adult member of such family
Company	yes	By the managing director	By any person duly authorized by the company on this behalf
Firm	Yes, if it's required under these rules to furnish his return of income under digital signature or communicated through his registered e-mail address	By the managing partner	By any partner not being a Minor
AOP	By any member of the association or the principal officer
Any other person	By that person or by some other person competent to act on his behalf

The person signing the application as specified in column 4 of the above table holds a valid power of attorney to do so, which shall be attached to the application; Please refer to the following documents to get the amended FORM No. 34C, 34D, 34DA, 34E, and 34EA:

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Frequently Asked Questions

Common questions about Income Tax Twelfth Amendment Rules.

The Income-Tax (Twelfth Amendment) Rules, 2022, is a notification issued by the Central Board of Direct Taxes (CBDT) on May 5, 2022, to further amend the Income-tax Rules, 1962. It primarily focuses on notifying Rule 44E related to the application for obtaining an advance ruling and introduces amended forms for the same.

The key changes introduced by the Income-Tax (Twelfth Amendment) Rules, 2022, include omitting the requirement of filing the application for advance ruling in quadruplicate, substituting Rule 44E(2) to notify the procedure for verifying annexures and documents, and substituting FORM No. 34C, 34D, 34DA, 34E, and 34EA for applications related to advance rulings.

Rule 44E in the Income-tax Rules, 1962, specifies the procedure and requirements for filing an application for obtaining an advance ruling under Section 245Q(1) of the Income-tax Act, 1961.

According to the Income-Tax (Twelfth Amendment) Rules, 2022, an application for obtaining an advance ruling can be filed by non-resident applicants, persons falling within certain classes or categories of persons notified by the Central Government, and other eligible applicants as per the Income-tax Act, 1961.

The Income-Tax (Twelfth Amendment) Rules, 2022, has substituted FORM No. 34C, 34D, 34DA, 34E, and 34EA for filing applications related to obtaining an advance ruling by different categories of applicants.

The Income-Tax (Twelfth Amendment) Rules, 2022, specifies that the application, verification, annexures, and accompanying documents must be digitally signed if it is required under the rules to furnish the return of income under digital signature or communicated through a registered e-mail address.

The Income-Tax (Twelfth Amendment) Rules, 2022, provides specific guidelines on who can sign and verify the application for obtaining an advance ruling, depending on the type of applicant, such as an individual, Hindu Undivided Family, company, firm, AOP, or any other person.

According to the Income-Tax (Twelfth Amendment) Rules, 2022, if the person signing the application for obtaining an advance ruling is not the applicant themselves, a valid power of attorney authorizing them to do so must be attached to the application.

The purpose of introducing amended forms, such as FORM No. 34C, 34D, 34DA, 34E, and 34EA, is to streamline and standardize the application process for obtaining an advance ruling by different categories of applicants, ensuring compliance with the updated rules and requirements.

The Income-Tax (Twelfth Amendment) Rules, 2022, simplifies the application process for obtaining an advance ruling by removing the requirement of filing in quadruplicate, clarifying the verification process for annexures and documents, and providing updated forms for different categories of applicants. This amendment aims to enhance the efficiency and transparency of the advance ruling process.