Central Board of Direct Taxes (CBDT) had issued Notification No 31/2021 dated 5th April, 2021 to amend Rule 10DA and 10DB of Income Tax Rules, 1962.

Key points of the amendment are:

1. Sub Rule 6 of Rule 10DB which prescribes the threshold limit for applicability of Country-by-Country (CbC) reporting has been amended to increase the limit from INR 5,500 crore to INR 6,400 crore. Now, CbC reporting is mandatory if consolidated group revenue of the international group is INR 6,400 crore in the preceding year.
2. It has been provided that the income-tax authority for the purposes of Section 286 relating to “Furnishing of report in respect of international group” shall be the Joint Director as may be designated by the Principal Director General of Income-tax (Systems) or the Director General of Income-tax (Systems), as the case may be.

This notification has come into effect from 1st day of April, 2021.

Source: Income Tax Department

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