NOTIFICATION No. 83/2023/ F. No.370142/32/2023-TPL, DATED 29-09-2023

The Finance Act 2023 introduced a new tax scheme under section 115BAE for the resident co-operative societies engaged in the manufacturing or production of an article or thing. If a co-operative society opts for this scheme, then income will be taxable at a concessional rate if certain conditions are fulfilled.

The provisions of section 115BAE will be applicable from the assessment year 2024-25. Further, sub-section (5) of section 115BAE provides that the eligible co-operative society has to exercise the option to choose new tax scheme in the prescribed manner on or before the due date for furnishing the first return of income under Section 139(1).

To prescribe such manner, the Central Board of Direct Taxes (CBDT) has inserted a new Rule 21AHA vide Income-tax (Twenty-Third Amendment) Rules, 2023.

The new Rule 21AHA provides that a resident co-operative society can exercise the option under section 115BAE(5) by furnishing Form No. 10-IFA. The form shall be furnished electronically either under digital signature or electronic verification code.

The Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems) shall specify the procedure for filing Form no. 10-IFA.

In the principal rules, in the APPENDIX II, after Form No. 10-IF, the following Form shall be inserted, namely: –

FORM No. 10-IFA

NOTIFICATION No. 88/2023 F. No. 370142/33/2023-TPL, DATED 10-10-2023

The following has been stated –

In the principal rules, in Appendix II, for Form No 60, the following Form shall be substituted, namely: - Form No 60 which talks about the Form for declaration to be filed by any person (other than a company or firm) or a foreign company covered by third proviso to rule 114B, who does not have a Permanent Account Number and who enters into any transaction specified in Rule 114B.

In the principal rules, in rule 114BA, which talks about the Transactions for the purposes of clause (vii) of sub-section (1) of section 139A, the following shall be inserted at the end, namely: -

Provided that the provisions of this rule shall not apply in a case, -

1. where the person, making the deposit or withdrawal of an amount or otherwise than by way of cash as per clause (a) or (b) or opening a current account not being a cash credit account as per clause (c) of this rule, is a non-resident (not being a company) or a foreign company.
2. the transaction is entered into with an IFSC banking unit, and
3. such non-resident (not being company) or foreign company does not have any income chargeable to tax in India.

These shall come into force from October 10, 2023.