Income-tax (22nd Amendment) Rules, 2002 - 228/2002 - Income Tax

Income-tax (22nd Amendment) Rules, 2002 NOTIFICATION NO. 228 Dated 21st August. 2002 In exercise of powers conferred by Section 295 read with clause (5C) of section 80G of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following amendment to Income-tax Rules, 1962, namely ;- 1. (1) These rules may be called the Income-tax (22nd Amendment) Rules, 2002. (2) They shall be deemed to have come into force on the 3rd day of February, 2002. 2. In the Income-tax Rules, 1962, - (i) after rule 18AAA, the following shall be inserted, namely :- "Prescribed authority for the purpose of receiving separate accounts from trusts or funds or institutions for providing relief to the victims of earthquake in Gujarat 18AAAA (1) For the purpose of sub-section (5C) of section 80G, the prescribed authority shall be the Director General of Income-tax (Exemptions). (2) The trust, the fund or the institution, which is established in India for a charitable purpose and is approved in terms of clause (vi) of sub-section (5) shall maintain separate accounts of income and expenditure for providing relief to the victims of earthquake in Gujarat and get such accounts audited by an accountant, as defined in the Explanation to sub-section (2) of section 288 and furnish the report of such audit, duly signed and verified by such accountant to the Director General of Income-tax (Exemptions) in Form No. 10AA. Such authority, on receipt of the accounts in the said form, shall give the finding as to whether the donations received for the purpose of providing relief to the victims of earthquake in Gujarat are chargeable to tax in the hands of the trusts or the fund or the institution under clause (23C) of section 10 or under section 12 or not, as the case may be, and determine the extent thereof. (3) Where the findings of the Director General of Income-tax (Exemptions) are not beneficial to the assessee, such authority shall give an opportunity to the assessee before making the findings- (4) The Director General of Income-tax (Exemptions) shall bring his findings to the knowledge of the concerned assessing officer within one month of making such findings. (ii) In Appendix-II, after Form Number 10A, the following Form shall be inserted, namely:- "FORM NO. 10AA [See rule 18AAAA] Details of accounts under section 80G(5C)(v) of the Income-tax Act, 1961, for providing relief to the victims of earthquake in Gujarat . I GENERAL DETAILS (a) Name and address of the trust/fund/institution: ______________ (b) Registration No./Date:- ____________________ (c) Permanent Account No.:- ______________ (d) Authority granting approval under section 80-G : _________ (e) Number and date of approval ____________ II. DETAILS OF PROJECT FOR GUJARAT EARTHQUAKE RELIEF (a) Name of project: ______________________ (b) Date of commencement: __________________ (c) Date of completion : _______________ (d) Amount raised by donation: _______________________ (e) Branch-wise Bank Account numbers in which donations received: III. DETAILS OF OTHER PROJECTS BEING RUN BY THE TRUST/FUND/INSTITUTION DURING 26.1.2001 TO 31.3.2003 Name of the project Nature Date of commencement Date of completion (a) (b) (c) (d) IV. DETAILS OF RECEIPTS DURING 26.1.2001 TO 30.9.2001 (In Rs.) (i) Total receipts: ________________________ Out of which (ii) Amount received through donations: __________________________ Out of which (iii) Amount received through donations for Gujarat earthquake relief: _____________________________________________________ Out of which (iv) Amount spent on or before 31,3.2003 for the purpose of Gujarat earthquake relief:_________________________________________ (v) Amount unutilized, which is transferred to Prime Minister's National Relief Fund on or before 31.3.2003: _______________________________ (vii) Amounts not spent for Gujarat earthquake relief __________________________ (viii) Amount unutilised, which is transferred to Prime Minister's National Relief Fund after 31.3.2003: _________________________________ (ix) Amount received through donations for Gujarat earthquake relief after 30.9.2001:_________________________________________________ (x) Amount of donations received for Gujarat earthquake relief, which is chargeable to tax under section 12 or section 10(23C): ______________________________________________________________ V. DETAILS OF EXPENDITURE DURING 26.1.2001 TO 30.9.2001 (in Rs.) (Please enclose copy of approval) Item Total amount paid Date of last payment (i) Provision of medical relief: __________________________ (ii) Construction of houses and buildings: ________________ (iii) Towards education building of schools, etc.:_________ (iv) Infrastructure creation: ______________ (v) Any other purpose (please specify):________________ *I/We have examined the books of accounts including the balance sheet and the profit and loss account of the trust/fund/institution ............................................(Permanent Account No...............) relating to period for which donations were received and utilised by the said trust/fund/institution for the purpose of Gujarat earthquake relief work. *I/We have obtained all the information and explanations which to the best of *my/our knowledge and belief were necessary for the purposes of the audit. In *my/our opinion, separate books of account have been kept by the assessee in respect of donations received and utilised for the purpose of Gujarat earthquake relief work. In *my/our opinion and to the best of *my/our information and according to explanations given to* me/our opinion and to the best of *my/our information and according to explanations given to *me/us, the said accounts give a true and fair view. Place Date.. Signed Accountant" Sd/- (Dr. Dheeraj Bhatnagar) Director (TPL-II) F.N0.142/21/2002-TPL EXPLANATORY MEMORANDUM Section 80G of the Income Tax Act, 1961 provides for deduction on account of donation made to certain eligible trusts, funds or institutions. In respect of certain trusts, funds or institution the deduction is available at 100% of the amount of donation, while for others the deduction is available at 50%. 2. Following the Gujarat earthquake on 26th January, 2001 the Taxation Laws (Amendment) Ordinance, 2001 was brought in on 3rd February, 2001. The amendment had the effect of providing deduction under section 80G at the rate of 100% in case of donations made on or before 30th September, 2001 to certain approved charitable trusts, funds or institutions, for the purpose of relief to the victims of Gujarat earthquake. Subsequently, the Taxation Laws (Amendment) Act was passed by the Parliament. The Finance Bill, 2002 has extended the date of utilization of such funds from 31.3.2002to31.3.2003. 3. Consequently, the final date for the transfer of unutilized funds, if any, to Prime Minister's Relief Fund has also been extended from 31.3.2002 to 31.3.2003. 4. The notification prescribes that the Director General of Income Tax (Exemptions) would be the authority under the new rule. The notification also prescribes that separate accounts of Income and Expenditure for providing relief to the victims of earthquake in Gujarat are to be maintained and such accounts are to be audited by Chartered Accountant, and that a report be furnished in form No.l0AA of the Income tax Rules. 5. It is certified that the retrospective application of the new rule 18AAAA of the Income Tax Rules shall not prejudicially affect the interest of any assessee. Note: The principal rules were published under Notification No. 969 dated 26th of March, 1962 which has been amended from time to time and the last such amendment was made vide Notification No. 207/2002 dated 13-8-2002.