Provisions u/s 285-B of Income-tax Act, 1961. - Income Tax - 996/CBDT

INSTRUCTION NO. 996/CBDT Dated : August 10, 1976 Section(s) Referred: 285B Statute: Income - Tax Act, 1961 Attention is invited to the provisions of section 285-B of Income-tax Act, 1961 introduced by Taxation Laws Amendment Act, 1975 with effect from 1st April, 1976. The primary object of introducing the section is to check inflation of expenditure by film producers and to enable the Income-tax Department to obtain information regarding the payees for necessary action in their cases. This provision has come into force with effect from 1st April, 1976, and will apply in relation to films completed during Financial Year 1976-77 or payments made during Financial Year 1976-77 and the subsequent years. 2. The provision requires producers of cinematographic films to furnish to the Income-tax Officer statements of all payments over Rs. 5,000/- made by them to persons engaged by them in such production as employees or otherwise. The statement is to be furnished within 30 days from the end of such Financial Year, in which the production of film is carried on or within 30 days of the completion of the film whichever is earlier in the form of statement as prescribed by Rule 121-A inserted in the Income-tax Rules, 1962 by Income-tax (Third amendment) Rules, 1976 under the notification of the Board No. S.O. 266(E), dated the 31st March, 1976. The statement has to be furnished for all payments made over Rs. 5,000/- in aggregate. 3. The Board desires that widest publicity should be given to this new provision inserted in Income-tax Act. The Officers working in the film Circles may be alerted to this. They may even write to the known film producers individually making them aware of the provisions. 4. A strict watch may be kept over the compliance with these provisions of the Act.