Income Tax

Thresholds of Rs. 2 crores notified for the purposes of significant economic presence. Rule 11UD notified

Thresholds of Rs. 2 crores notified for the purposes of significant economic presence. CBDT notifies new Rule 11UD Rule 11UD

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 41 /2021

New Delhi, the 3rd May, 2021

INCOME-TAX

G. S. R. 314(E).—In exercise of the powers conferred by the clause (a) and clause (b) of Explanation 2A to sub-section (1) of section 9 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 (13th Amendment) Rules, 2021.

(2) They shall come into force with effect from the 1stday of April, 2022.

2. In the Income-tax Rules, 1962, after rule 11UC, the following rule shall be inserted, namely:-

“11UD. Thresholds for the purposes of significant economic presence.—

(1) For the purposes of clause (a) of Explanation 2A to clause (i) of sub-section (1) of section 9, the amount of aggregate of payments arising from transaction or transactions in respect of any goods, services or property carried out by a non-resident with any person in India, including provision of download of data or software in India during the previous year, shall be two crore rupees;

(2) For the purposes of clause (b) of Explanation 2A to clause (i) of sub-section (1) of section 9, the number of users with whom systematic and continuous business activities are solicited or who are engaged in interaction shall be three lakhs.”.

[F. No. 370142/11/2018-TPL]

KAMLESH CHANDRA VARSHNEY, Jt. Secy.

Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide number S.O. 969 (E),dated the 26th March, 1962 and last amended vide notification number G.S.R. 301(E), dated 30th April, 2021

Download Notification Click Here >>

Share

Recent Posts

  • Bank

State Bank of India elects four Directors in its Central Board

State Bank of India in its General Meeting of the Shareholders elected four Directors to the Central Board. The meeting…

7 hours ago
  • Income Tax

Declaration of additional income by increasing the WIP was not proper – ITAT

Voluntary declaration of additional income by increasing WIP was not proper, as assessee will take the additional benefit in the…

1 day ago
  • Income Tax

Cash payment for purchase of land or property not violation of 269SS or 269T

Cash payment for purchase of land or property cannot be treated as violation of provisions of section 269SS or 269T…

2 days ago
  • Income Tax

Excel Utility for ITR-1 and ITR-4 available for e-filing for AY 2026-27

Income Tax Department has released excel Utility for e-filing ITR-1 and ITR-4 for AY 2026-27 Excel utilities of ITR-1 and…

3 days ago
  • Insurance

Mediclaim amount not deductible from MACT award under medical expenses – SC

Amount of money received as Mediclaim not deductible from an award passed by MACT under the head of medical expenses.…

4 days ago
  • Income Tax

ITAT jurisdiction is decided by location of AO passing the impugned order

Location of the assessing officer who passed the order shall decide the jurisdiction of the Bench of the Tribunal In…

4 days ago