Tax rule amended to align with IBC
New Delhi: The authorities on Wednesday amended the Income Tax Rules to permit decision professionals appointed by the National Company Law Tribunal (NCLT) to confirm the tax returns of firms present process chapter.
The Income-tax (twenty fourth Amendment) Rules, 2021 notified by the tax division additionally made it the duty of the decision skilled to observe the principles meant for tax return preparers of sure assessees. Authorised representatives who put together tax returns for assessees are required to furnish particulars of the paperwork given by the assessee for preparation of the return in addition to particulars of the scope and findings of any examination the consultant has accomplished on such paperwork.
The new guidelines authorise the decision skilled to furnish this data within the case of an organization present process chapter proceedings, confirmed the rule modification.
The concept is to align the 2 legal guidelines and ensure there is no such thing as a hole within the regulatory course of. The modification is predicted to assist the insolvency decision course of by clarifying the position of the decision skilled underneath the Income Tax Act. The authorities is eager to keep away from delays within the insolvency decision course of as many instances have overshot the 180 day interval stipulated within the Insolvency and Bankruptcy Code (IBC) to finalise a decision plan.
Subscribe to Mint Newsletters * Enter a legitimate e-mail * Thank you for subscribing to our e-newsletter.
Never miss a narrative! Stay related and knowledgeable with Mint.
Download
our App Now!!
