Form No 68 application us 270AA2-grant of immunity from penalty provisions u/s 270A of the Income-tax Act 1961
The Budget 2016-17 (Finance Act, 2016) has provided for the rationalisation of the penalty provisions under the Income Tax Act, 1961. Section 271 related to penalty for failure to furnish return, comply with notices, concealment of income etc. has been scrapped w.e.f. 01-04-2017.
A new section 270A has been inserted in Chapter XXI of the Income tax Act to provide for penalty for under reporting and misreporting of income. The section creates a deeming fiction where the assessee shall be considered to have under reported or misreported income.
Anew section 270AA has also been inserted for grant of immunity from the imposition of penalty u/s 270A on the condition that:
(a) the tax and interest payable u/s 143(3) or 147 is paid within the period specified. and
(b) no appeal is preferred against the order of assessment/re-assessment
The section 270AA(2) further stipulates that the immunity shall be given on the basis of an application to be made by the assessee to the Assessing Officer (AO) to grant immunity within one month.
The CBDT has now notified the Form No. 68 as the prescribed application form u/s 270AA(2) for making application for grant of immunity.
MINISTRY OF FINANCE
Department Of Revenue
CENTRAL BOARD OF DIRECT TAXES
Notification No. 90/2016
New Delhi, the 05th October, 2016
S.O. 3150 (E).— In exercise of the powers conferred by section 295 read with sub-section (2) of section 270AA 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 ( 25th Amendment) Rules, 2016.
(2) They shall come into force on the 1st day of April, 2017.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), after rule 128, following rule shall be inserted, namely:-
“129. Form of application under section 270AA.- An application to the Assessing Officer to grant immunity from imposition of penalty under section 270A and from initiation of proceedings under section 276C or section 276CC shall be made in Form No.68.”.
3. In the said rules, in Appendix-II, after Form No.67, the following form shall be inserted, namely:-
Form of application under section 270AA(2) of the Income-tax Act, 1961
Download Form 68 Click Here >>
DR. T. S. MAPWAL, Under Secy.