The Ministry of Finance on 19th September 2022, published the Income-tax (31st Amendment) Rules, 2022 which shall come into force from 1st November 2022.
Through this amendment, a new rule 12AD on return of income U/S 170A has been inserted and a new form ITR-A has been introduced for ‘successor entities’ to furnish their return of income u/s 170A of the Income Tax Act, 1961 consequent to business reorganisation.
As per rule 12AD, the modified return of income to be furnished by a successor entity to a business reorganization, as referred to in section 170A, for an assessment year, shall be in the Form ITR-A and verified in the manner specified therein. The return of income shall be furnished electronically under digital signature. If the assessment or reassessment proceedings for an assessment year relevant to a previous year to which the order of the business reorganisation applies have been completed or are pending on the date of furnishing of the modified return in accordance with the provisions of section 170A, the Assessing Officer shall, pass an order modifying the total income of the relevant assessment year determined in such assessment or reassessment, or proceed to complete the assessment or reassessment proceedings, as the case may be, in accordance with the order of the business reorganisation and the modified return so furnished.
