{"id":18873,"date":"2020-11-03T14:07:05","date_gmt":"2020-11-03T08:37:05","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=18873"},"modified":"2020-11-03T16:55:43","modified_gmt":"2020-11-03T11:25:43","slug":"overview-on-income-tax-23rd-amendment-rules-2020","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/overview-on-income-tax-23rd-amendment-rules-2020\/","title":{"rendered":"Overview on Income Tax (23rd Amendment) Rules, 2020"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The Central Board of Direct Taxes has the power conferred upon them by Income Tax Act. Section 295(1) of Income Tax Act, 1962 has laid down the rules that CBDT (Central Board of Direct Taxes) can make changes in the rules and provisions of Income Tax Rules, 1962. This new rule is known as Income Tax (23rd Amendment) Rules, 2020 and will be effective from 1<sup>st<\/sup> April, 2021<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Amendments made in Income Tax (23<sup>rd<\/sup> Amendment ) Rules, 2020<\/h2>\n\n\n\n<p><em><strong>The Income Tax (23<\/strong><\/em><sup><em><strong>rd<\/strong><\/em><\/sup><em><strong> Amendment) Rules, 2020 were made in the Rule 67(2) of Income Tax Rules, 1962 are-<\/strong><\/em><\/p>\n\n\n\n<ul><li>In the fifth proviso, the letter \u2018A\u2019 shall be substituted for letters \u2018AA\u2019;<\/li><li>In the eight proviso, the letter \u2018A\u2019 shall be substituted for letters \u2018AA\u2019;<\/li><li>In the eleventh proviso, the letter \u2018A\u2019 shall be substituted for letters \u2018AA\u2019 occurring at both the places.<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/10-reasons-why-filing-income-tax-return-is-vital-for-you\/\">10 Reasons Why Filing Income Tax Return Is Vital For You<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Rule 67 before Income Tax (23rd Amendment) Rules, 2020<\/h2>\n\n\n\n<p>Rule 67 talks about Investment of Funds Money and how the amount has to\nbe invested is explained below. Rule 67 is further divided into two sub-rules.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sub-Rule (1)<\/h3>\n\n\n\n<p>Rule 67 (1) talks about all the money contributed in a provident\nfund whether by the employer or employees after 31<sup>st<\/sup> October of FY &amp; it has to be\ntransferred after that particular date from any employees individual\naccount in any recognized provident fund sustained by the former employer. The\nfund has to be deposited in Savings Bank Account of the Post Office or in a\ncurrent account or a Savings Bank Account in any scheduled bank, to such extent\nthat the amount are not deposited and should be invested in the manner prescribed\nin Rule 67 (2).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sub-Rule (2)<\/h3>\n\n\n\n<p>The manners in which the investments of funds money are to be deposited are explained in this clause. Table has been provided for the same.<\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>Serial No.<\/strong>\n  <\/td><td>\n  <strong>Investment<\/strong>\n  <\/td><td>\n  <strong>Percentage of Amount to be Invested<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>1.<\/strong>\n  <\/td><td>\n  Government Securities\n  <\/td><td>\n  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45-50%\n  <\/td><\/tr><tr><td>\n  <strong>2.<\/strong>\n  <\/td><td>\n  Debt Instruments &amp; Related Investment\n  <\/td><td>\n  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 35-45%\n  <\/td><\/tr><tr><td>\n  <strong>3.<\/strong>\n  <\/td><td>\n  Short term Debt Instruments &amp;\n  related investments\n  <\/td><td>\n  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\n  Up to 5%\n  <\/td><\/tr><tr><td>\n  <strong>4.<\/strong>\n  <\/td><td>\n  Equities &amp; related Investments\n  <\/td><td>\n  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5- 15 %\n  <\/td><\/tr><tr><td>\n  <strong>5.<\/strong>\n  <\/td><td>\n  Asset Backed, Trust Structured and\n  Miscellaneous Investments\n  <\/td><td>\n  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;\n  Up to 5%\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><em><strong>For the purposes of Rule 67(2), following points should be considered\u2014<\/strong><\/em><\/p>\n\n\n\n<ol><li>Fresh accretions to the funds should be the sum of un-invested funds from the past and reduced by obligatory outgoing during the Financial Year;<\/li><li>\u2018<strong><em>Government securities<\/em><\/strong><sup><a href=\"https:\/\/study.com\/academy\/lesson\/government-securities-definition-types-examples.html\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>\u2019 should have the meaning provided in Section 2(b) of the Securities Contracts (Regulation) Act, 1956;<\/li><li>\u2018Infrastructure\u2019 should be used for the purpose as given in the above Table;<\/li><li>\u2018Public Financial Institutions\u2019 should have the meaning provided in Section 2 of the Companies Act, 2013;<\/li><li>\u2018Public Sector Company\u2019 should have the meaning provided in Section 2(36A) of the Income tax Act;<\/li><li>\u2018Securities\u2019 have the meaning provided in Section 2 of the Securities Contracts (Regulation) Act, 1956.<\/li><\/ol>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> Rule 67(1) and Rule 67(2) apply to recognized provident funds and not on gratuity funds.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>The principal\nrules regarding the amendments were published in the Gazette of India\nExtraordinary, Part-II, Section-3 (ii) vide number S.O. 969 (E), dated 26<sup>th<\/sup>\nMarch, 1962 and the last amendment was done recently on 1<sup>st<\/sup>\nOctober,2020 vide notification number G.S.R No.610 (E). <\/p>\n\n\n\n<p>According to the Memorandum Vide Notification No. 84 \/2020, dated 22 October, 2020, an amendment was made in Rule 67 of the Income tax Rules, 1962. The amendment is known as Income Tax (23rd Amendment) Rules, 2020 and it will be effective from 1<sup>st<\/sup> April, 2021 &amp; is applicable for the Assessment Year 2021-22.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/cbdt-amends-the-tax-audit-report-form-3cd-itr-6-form-no-10-ie-and-10-if\/\">CBDT Amends the Tax Audit Report Form 3CD, ITR 6, Form No 10-IE and 10-IF<\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/notification_84_2020.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">notification_84_2020<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Central Board of Direct Taxes has the power conferred upon them by Income Tax Act. Section 295(1) of Income Tax Act, 1962 has laid down the rules that CBDT (Central Board of Direct Taxes) can make changes in the rules and provisions of Income Tax Rules, 1962. This new rule is known as Income [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":18880,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,153],"tags":[1172],"acf":{"service_id":"403"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":4094,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18873"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=18873"}],"version-history":[{"count":9,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18873\/revisions"}],"predecessor-version":[{"id":18917,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/18873\/revisions\/18917"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/18880"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=18873"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=18873"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=18873"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}