CBDT has taken yet another initiative under the ‘faceless schemes’ and has notified the ‘e Advance Rulings Scheme 2022’, applicable from 18/01/2022. Accordingly, CBDT has prescribed procedures for submission, handling and disposal of the applications for advance rulings, before the Board for Advance Rulings u/s 245Q(1) or u/s 245Q(4) (transferred cases) of the Income Tax Act, 1961, vide Notification 7/2022 dated 18/01/2022.
Under this initiative, the taxpayers and other stakeholders can seek clarification on income tax issues beforehand, by filing their Advance Ruling Application via email, which will be a great help for foreign companies and non-residents. Also the hearings of the Board for Advance Rulings shall be conducted through video conferencing/ telephony.
All communications will be made in electronic mode under the Scheme, between the taxpayer/ representatives/ other stakeholders and the Income-tax Authorities and/ or the Board for Advance Rulings, i.e. each Notice, Order, Response, etc. under the Scheme shall be routed through email.
Advance Ruling mechanism provides upfront clarity on implications of certain transactions in India vis-a-vis the provisions of Income Tax provisions, specially to Foreign Companies, Non-residents and other stakeholders.
CBDT Income Tax Notification 7/2022 dt. 18/01/2022: CBDT notifies the ‘e Advance Rulings Scheme 2022’
S.O. 248(E).- In exercise of the powers conferred by sub-sections (9) and (10) of section 245R and subsections (2) and (3) of section 245W of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following Scheme, namely:-
1. Short title and commencement.-
(1) This Scheme may be called the “e-advance rulings Scheme, 2022”.
(2) It shall come into force on the date of its publication in the Official Gazette. (contd.. please refer above attachment)
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