The Central Board of Direct Taxes vide its notification dated 4th April 2022 has published the Income-tax (6th Amendment), Rules, 2022 to further amend the Income-tax Rules,1962.
Through this amendment a new rule 21AAA which deals taxation of income from retirement benefit account maintained in a notified country has been inserted.
As per rule 21AAA, where a specified person has income accrued in a specified account or accounts, during a previous year relevant to any assessment year beginning on or after the 1st day of April, 2022, such income shall, at the option of the specified person, be included in his total income of the previous year relevant to the assessment year in which income from the said specified account or accounts is taxed at the time of withdrawal or redemption, as the case may be, in the notified country.
The option to be exercised by the specified person, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2022, shall be in Form No. 10-EE and it shall be furnished electronically under digital signature or electronic verification code on or before the due date specified under subsection (1) of section 139 of the Act, for furnishing the return of income.
Further if the option once exercised for a specified account or accounts in respect of a previous year in Form No. 10- EE shall apply to all subsequent previous years and cannot be subsequently withdrawn for the previous year for which the option was exercised or any previous year subsequent to that previous year.
