CBDT vide Notification No. 99/2021 dated 02.09.2021 has notified a new Rule 26D for furnishing of declaration and evidence of claims by a specified senior citizen under section 194P in Form No. 12BBA to be furnished duly verified in paper form with specified banks. The board has also amended Form 16, Form 24Q, Form 26QC and Form 26QD to incorporate necessary changes related to provisions of section 194P.
The provisions of Rule 26D and procedure for furnishing of declaration and evidence of claims by a specified senior citizen under section 194P in Form No. 12BBA are discussed below-
1. The specified senior citizen shall furnish a declaration to the specified bank under section 194P in Form no. 12BBA.
2. Form No. 12BBA shall be furnished in paper form. No provisions for electronic filing of Form 12BBA is there.
3. After receipt of the declaration in Form 12BBA, the specified bank shall compute the total income of the specified senior citizen after allowing all the deductions and rebate u/s 87A.
4. The specified bank shall allow deduction under chapter VI-A on the basis of evidence furnished by the specified senior citizen during the previous year.
5. It is the responsibility of the specified bank to preserve the evidence of the deduction claimed under Chapter VI-A.
6. The specified bank shall deduct TDS on the computed total income.
7. The Principal Director General of Income-tax (Systems) or the Director-General of Income-tax (Systems) shall specify the procedure to furnish the particulars of Form No. 12BBA.
CBDT vide Notification No. 98/2021 dated 02.09.2021 has defined the term ‘specified bank’ to mean a banking company/scheduled bank for the purpose of deduction of tax under section 194P.
Read the full text of Notification No. 99/2021 dated 02.09.2021 on Rule 26AD and Form 12BBA for Senior Citizens to Claim Relief under Section 194P
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 2nd September, 2021
(INCOME-TAX)
G.S.R. 612(E). —In exercise of the powers conferred by sections 194P and 206AB 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 (26th Amendment) Rules, 2021. (2) They shall come into force from the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), after rule 26C, the following rule shall be inserted, namely:-
“26D.Furnishing of declaration and evidence of claims by specified senior citizen under section 194P.-(1) The declaration required to be furnished by the specified senior citizen to the specified bank under sub-clause (iii) of clause (b) of explanation to section 194P shall be in Form no. 12BBA to be furnished in paper form duly verified.
(2) On furnishing of the declaration in Form No. 12BBA, the specified bank shall, after giving effect to the deduction allowable under Chapter VI-A and rebate allowable under section 87A, compute the total income of such specified senior citizen for the relevant assessment year and deduct income-tax on such total income on the basis of the rates in force.
(3) The effect to the deduction allowable under Chapter VI-A shall be given based on the evidence furnished by the specified senior citizen during the previous year.
(4) The declaration referred to in sub-rule (1) and evidence for claiming deduction under Chapter VI-A referred to in sub-rule (3) shall be properly maintained by the Specified Bank and shall be made available to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required.
(5) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be, shall specify procedure for furnishing of particulars of Form No. 12BBA referred to in sub-rule (1) and evidence referred to in sub-rule (3) by the specified banks to the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax, as and when required.”.
3. In the principal rules, in rule 31, in sub-rule (1), in clause (a), after the word and figures “section 192”, the words, figures and letter “and section 194P” shall be inserted.
4. In the principal rules, in rule 31A,-
(i) in sub-rule (1), -
(I) in clause (a), after the word and figures “section 192”, the words, figures and letter “and section 194P” shall be inserted;
(II) in clause (b), after the words, figures and letter “section 193 to 196D”, the brackets, words, figures and letter “(other than section 194P)” shall be inserted;
(ii) after sub-rule (3A), the following sub-rule shall be inserted, namely:-
“(3B) Specified bank responsible for deduction of tax under section 194P shall furnish evidence produced by the specified senior citizen for claiming deduction under chapter VI-A to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or to any other person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems), as and when required.”.
5. In the principal rules, in Appendix II,-
(i) after Form No.12BB, the following Form shall be inserted, namely:-
“Form no. 12BBA
(see rule 26D)
Declaration to be furnished by Specified Senior Citizen under sub-clause (iii) of clause (b) of Explanation to section 194P
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Download CBDT Notification No. 99/2021 dated 02.09.2021 on Rule 26AD and Form 12BBA for Senior Citizens to Claim Relief under Section 194P in pdf format
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