Extending the due date for furnishing of report u/s 286 4 of the income tax act 1961
Circular No. 7/2019 was issued by the Central Board of Direct Taxes on 8 April 2019. Its subject is Extending the due date for furnishing of report u/s 286 4 of the income tax act 1961.
This is an order under section 119 of the 1961 Act — section 239 of the 2025 Act. Section 119 lets the Board give directions to its own officers and, in defined cases, relax a requirement. It is an administrative power, not a power to rewrite the charge.
Extends to 30 April 2019 the time for a constituent entity to furnish the country-by-country report under section 286(4), read with Rule 10DB(4), where its parent entity is resident in the United States of America, for reporting accounting years ending up to 29 April 2018. Rule 10DB(4), as amended with effect from 18 December 2018, fixes the period at twelve months from the end of the reporting accounting year, or six months from the end of the month in which a systemic failure in the parent's country is intimated. Circular No. 9/2018 dated 26 December 2018 had already extended the date to 31 March 2019 for reporting accounting years ending up to 28 February 2018.
India and the United States entered into an agreement for exchange of these reports on 27 March 2019, but it was to take effect only after both countries notified completion of their internal procedures; because the exchange mechanism was not yet activated, constituent entities of United States parents with years ending after 28 February 2018 had to file the report themselves, and the Board acted to remove the genuine hardship this caused.
F No 370142/17/2018 -TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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Order under section 119 of the Income-tax Act, 1961
Circular No. -;f:./2019
New Delhi, April 8, 2019Vide Notification in GSR 1217 (E) dated December 18, 2018, sub-rule (4) of Rule lODB of the Income-tax Rules, 1962 (the Rules) was amended with effect from December 18,2018; to provide that the period for furnishing of the report under sub-section (4) of section 286 of the Income-tax Act, 1961 (the Act) by the constituent entity referred to in that sub-section shall be twelve months from the end of the reporting accounting year.
1.1 It has been further provided that in case the parent entity of the constituent entity is resident of a country or territory, where, there has been a systemic failure of the country or territory and the said failure has been intimated to such constituent entity, the period for submission of the report shall be six months from the end of the month in which said systemic failure has been intimated.
2. On receipt of representations regarding the hardship being faced in complying with the requirement of furnishing the report under sub-section (4) of section 286 of the Act read with subrule (4) of rule lODB of the Rules by March 31, 2018, vide Circular No 9/2018 dated December 26, 2018, as a one-time measure, the period for furnishing of said report by the constituent entities referred to under clause (a) or (00) of said sub-section, in respect of reporting accounting years ending upto February 28, 2018, was extended to March 31 , 2019.
3. The agreement for providing for exchange of the report of the nature referred to in subsection (2) of section 286 of the Act has b.eenentered into by India and the USA on March 27, 2019. However, the agreement and the exchange mechanism would come into effect only after both the countries notify each other about the completion of all internal procedures for exchange which is underway.
3.1 Since filing of the report by the constituent entity referred under clause (a) or (00) of subsection (4) of section 286 of the Act in India gets triggered on completion of twelve months from the last date of the reporting accounting year and Circular 9/2018 has extended the period for furnishing of the report till March 31, 2019 in respect of reporting accounting years ending upto February 28, 2018, due to non-notification of the agreement and resultantly non-activation of the exchange mechanism between India and the USA, said report has to be filed by such constituent entities, whose parent entities are resident in USA and whose reporting accounting years ended after February 28,2018.
4. In view of the above, in order to remove the genuine hardship faced by the constituent entities referred to under clause (a) or (00) of said sub-section, whose parent entities are resident in USA, in furnishing of the report under sub-section (4) of section 286 of the Act read with sub-rule (4) of rule 10DB of the Rules, the Board, in exercise of powers conferred under section 119 of the Act, extends the period for furnishing of said report by such constituent entities, in respect of reporting accounting years ending upto April 29, 2018, to April 30, 2019.
lL~S- (Ra es Kumar Kedia)
Director to the Government of IndiaCopy to:
1. PSI OSD to FM/ PS/OSD to MoS(F)
2. PS to Revenue Secretary
3. Chairman and Members, CBDT
4. All Joint Secretaries/ CsIT, CBDT
5. Directors/ Deputy Secretaries/ Under Secretaries of CBDT
6. DIT (RSP&PR)/Systems, New Delhi
7. The C&AG of India (30 copies)
8. The JS & Legal Adviser, Ministry of Law & Justice, New Delhi
9. The Institute of Chartered Accountants of India
10. CIT (M& TP) , Official Spokesperson of CBDT
11. 0/0 Pro DGIT (Systems) for uploading on official website
In a penalty proceeding under Chapter XXI for failure to furnish the country-by-country report for a reporting accounting year ending in early 2018.
Rules it names. Rule 10DB of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.
It mentions. Circular No. 9/2018
Source: the Income Tax Department’s own published text — its page for this instrument.