Income-tax (Sixteenth Amendment) Rules, 1998 - S.O. 889 (E) - Income Tax

MINISTRY OF FINANCE (Department of Revenue) CENTRAL BOARD OF DIRECT TAXES NOTIFICATION NO. 10718 New Delhi, the 9th October, 1998 INCOME-TAX S.O. 889 (E). - In exercise of the powers conferred by 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. (1) These rules may be called the Income-tax (Sixteenth Amendment) Rules, 1998 (2) They shall come into force on 1 st day of November, 1998. 2. In the Income-tax Rules, 1962 , after Rule 114A , the following shall be inserted, namely :- 114B. All documents pertaining to the transactions in relation to which permanent account number or General Index Register Number to be quoted for the purpose of clause (c) of sub-section (5) of section 139A. Every person shall quote his permanent account number or General Index Register Number in all documents pertaining to the transactions specified below, namely :- (a) sale or purchase of any immovable property valued at five lakh rupees or more; (b) sale or purchase of a motor vehicle or vehicle, as defined in clause (28) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988), which requires registration by a registering authority under Chapter IV of that Act. (c) a time deposit, exceeding fifty thousand rupees, with a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (d) a deposit, exceeding fifty thousand rupees, in any account with Post Office Saving Bank; (e) a contract of a value exceeding ten lakh rupees for sale or purchase of securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) (f) opening an account with a banking company to which the Banking regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (g) making an application for installation of a telephone connection (including a cellular telephone connection); (h) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time: Provided that a person shall quote General Index Register Number in the documents pertaining to transactions specified in above clauses (a) to (h) till such time the permanent account number is allotted to him: Provided further that where a person, making an application for opening an account referred to in clause (f) of this rule, is a minor and who does not have any income chargeable to income tax, he shall qote the permanent account number or General Index Register Number of his father or mother or guardian, as the case may be, in the document pertaining to the transaction referred to in said clause (f). Provided also that any person, who has not been allotted a permanent account number or who does not have a General Index Register Number and who makes payment in cash or otherwise than by a crossed cheque drawn on a banker by a crossed bank draft in respect of any transaction specified in clauses (a) to (h), shall make a declaration in Form No. 60 giving therein the particulars of such transaction. 114C. Class or classes of persons to whom provisions of section I39A shall not apply.- (1) The provisions of section 139A shall not apply to following class or classes of persons, namely:- (a) the persons who have agricultural income and are not in receipt of any other income chargeable to income-tax: Provided that such persons shall make declaration in Form No. 61 in respect of transactions referred to in clauses (a) to (h) of rule 114B. (b) the non-residents referred to in clause (30) of section 2: Provided that a non-resident, who enters into any transaction referred to in clauses (a) to (h) of rule 114B, shall furnish copy of his passport. (2) Every person including,- (a) a registering officer appointed under the Registration Act, 1908 (16 of 1908); (b) a registering authority referred to in clause (b) of sub-rule (1); (c) any manager or officer of a banking company referred to in clause (c) of sub-rule (1); (d) post master; (e) stock broker, sub-broker, share transfer agent, banker to an issue, trustee of a trust deed, registrar to issue, merchant banker, under writer, portfolio manager, investment adviser and such other intermediaries registered under section 12 of the securities and exchange Board of India Act, 1992 (15 of 1992); (f) any authority or company receiving application for installation of a telephone by it: (g) any person raising bills referred to in clause (h) of sub-rule (1); (h) any person who purchases or sells the immovable property or motor vehicle, receiving any document relating to a transaction specified under clauses (a) to (h) of sub-rule (1) of rule 114B shall ensure that permanent account number or General Index register Number has been duly quoted in the document or declaration in Form No. 60 or Form No. 61, as the case may be, received by such person. 114D. Time and manner in which persons referred to in sub-rule 114C shall intimate the details of transaction to the Director of income-tax (Investigation).-(1) every person referred to in sub-rule (2) of rule 114C shall forward to the concerned Director of Income-tax (Investigation), the following documents, namely:- (a) a statement indicating therein details of all documents pertaining to any transaction referred to in clauses (a) to (h) of rule 114B wherein the permanent account number or General Index register Number is quoted; (b) the statement referred to in clause (a) shall contain,- (i) name and address of the person entering into the transactions; (ii) nature and date of the transaction; (iii) amount of each transaction; (iv) permanent account number or General Index Register Number quoted in the documents pertaining to any transaction, (c) copies of declaration of Form No. 60 referred to in third proviso to rule 114B; (d) copies of declaration in Form No. 61 referred to in clause (a) of sub-rule (1) of rule 114C; (e) copies of passport referred to in proviso to sub-rule (1) of rule 114C. (2) The statement, declaration and copies of passports referred to in sub-rule (1) shall be forwarded to the concerned Director of Income-tax (Investigation) by every person referred to in sub-rule (2) of rule 114C within one month of receipt of the same by such person. 3. In Appendix II to the Income-tax Rules, 1962 , after Form No. 59A, the following Forms shall be inserted, namely:- FORM No. 60 [See third proviso to rule 114B] Form of declaration to be filed by a person who does not have a permanent account number and who enters into any transaction specified in rule 114B 1 Full name and address of the declarant: .. . 2 Particulars of transaction .. .. 3 Amount of the transaction .. 4 Are you assessed to tax? Yes/No 5 If yes, (i) Details of Ward/Circle/Range where the last return of income was filed? (ii) Reasons for not having permanent account number? . . . . .. 6 Details of the document being produced in support of address in column (1) .. .. . Verification I, .. do hereby declare that what is stated above is true to the best of my knowledge and belief Verified today, the .. day . of 20 .. Date: .. Place: . .. Signature of the declarant Instructions: - Documents which can be produced in support of the address are:- (a) Ration Card (b) Passport (c) Driving licence (d) Identity Card issued by any institution (e) Copy of the electricity bill or telephone bill showing residential address (f) Any document or communication issued by any authority of Central Government, State Government or local bodies showing residential address (g) Any other documentary evidence in support of his address given in the declaration. FORM No. 61 [See proviso to clause (a) of rule 114C(1)] Form of declaration to be filed by a person who has agricultural income and is not in receipt of any other income chargeable to income-tax in respect of transactions specified in rule 114B 1. Full name and address of the declarant .. 2. Particulars of transaction . .. 3. Details of documents being produced in support of address in column (1) Yes/No. I hereby declare that my source of income is from agriculture and I am not required to pay income-tax on any other income if any. Date: .. Place: . .. Signature of the declarant Verification I, . do hereby declare that what is stated above is true to the best of my knowledge and belief Verified today the .. day of . 20 Place: . . Signature of the declarant Instructions:- Documents which can be produced in support of the address are.:- (a) Ration Card (b) Passport (c) Driving licence (d) Identity Card issued by any institution (e) Copy of the electricity bill or telephone bill showing residential address (f) Any document or communication issued by any authority of Central Government, State Government or local bodies showing residential address (g) Any other documentary evidence in support of his address given in the declaration. [F.No. 142/1/98-TPL] D. KARUNAKARA RAO, Under Secy. (TPL-IV)