Ministry of Finance
Notification No. 16/2021 [F.No. 370142/03/2021-TPL] / GSR 175(E) was published on 12 March 2021. Its subject is Ministry of Finance.
This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.
Made under section 285BA read with section 295 of the Income-tax Act, 1961, the Income-tax (4th Amendment) Rules, 2021 amend rule 114E of the Income-tax Rules, 1962. In the Table to sub-rule (2), at serial number 3, column (3), item (iv), the citation "(6 of 1934)" is corrected to "(2 of 1934)". A new sub-rule (5A) is inserted requiring, for the purposes of pre-filling the return of income, a statement of financial transaction under section 285BA(1) carrying information on capital gains on the transfer of listed securities or units of mutual funds, dividend income and interest income, in the form, at the frequency and in the manner specified by the Principal Director General or the Director General of Income-tax (Systems) with the Board's approval. The Table to the new sub-rule names the reporting persons: for capital gains, a recognised stock exchange, a depository under clause (e) of section 2(1) of the Depositories Act, 1996, a recognised clearing corporation and a registrar to an issue and share transfer agent registered under section 12(1) of the Securities and Exchange Board of India Act, 1992; for dividend income, a company; and for interest income, a banking company or co-operative bank to which the Banking Regulation Act, 1949 applies including a bank referred to in section 51 of that Act, the Post Master General under clause (j) of section 2 of the Indian Post Office Act, 1898, and a non-banking financial company holding a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 to hold or accept public deposits. An Explanation defines listed securities, Mutual Fund, recognised clearing corporation, recognised stock exchange and securities, and consequential insertions carry the new sub-rule into sub-rules (6) and (7).
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 12th March, 2021
G.S.R 175(E).—In exercise of the powers conferred by section 285BA read with section 295 of the Incometax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend
Income-tax Rules, 1962, namely:-1. Short title and commencement. - (1) These rules may be called the Income-tax (4th Amendment) Rules, 2021.
(2) They shall come into force from the date of its publication in the Official Gazette.2. In the Income-tax Rules, 1962, in rule 114E,––
(A) in sub-rule (2), in the TABLE, in serial number 3, in column (3), in item (iv), for the brackets, figures
and word "(6 of 1934)", the brackets, figures and word "(2 of 1934)" shall be substituted;(B) after sub-rule (5), the following sub-rule shall be inserted, namely:—
"(5A) For the purposes of pre-filling the return of income, a statement of financial transaction under subsection (1) of section 285BA of the Act containing information relating to capital gains on transfer of listed securities or units of Mutual Funds, dividend income, and interest income mentioned in column (2) of Table below shall be furnished by the persons mentioned in column (3) of the said Table in such form, at such frequency, and in such manner, as may be specified by the Principal Director General of Income Tax (Systems) or the Director General of Income Tax (Systems), as the case may be, with the approval of the Board, namely:—TABLE
| Sl. No. | Nature of transaction | Class of person (reporting person) |
|---------|----------------------|-----------------------------------|
| 1. | Capital gains on transfer of listed securities or units of Mutual Funds | (i) Recognised Stock Exchange; (ii) depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996); (iii) Recognised Clearing Corporation; (iv) Registrar to an issue and share transfer agent registered under subsection (1) section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992). |
| 2. | Dividend income | A company |
| 3. | Interest income | (i) A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898). (iii) Non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public. |Explanation. — For the purposes of this rule,—
(a) "listed securities" means the securities which are listed on any recognised stock exchange in India;
(b) "Mutual Fund" means a Mutual Fund as referred to in clause (23D) of section 10 of the Act;
(c) "recognised clearing corporation" shall have the same meaning as assigned to it in clause (o) of sub-regulation (1) of regulation 2 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 made under the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the Securities and Exchange Board of India Act, 1992 (15 of 1992);
(d) "recognised stock exchange" shall have the same meaning as assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(e) "securities" shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);"(C) in sub-rule (6),—
(i) in clause (a), after the words, brackets and figures "column (3) of the Table under sub-rule (2)", the words, brackets, figures and letter "and column (3) of the Table under sub-rule (5A)" shall be inserted;
(ii) in clause (b), after the words, brackets and figures "column (3) of the Table under sub-rule (2)", the words, brackets, figures and letter "and column (3) of the Table under sub-rule (5A)" shall be inserted;
(iii) in Explanation 2, after the words, brackets and figures "Table in sub-rule (2)", the words, brackets, figures and letter "and in sub-rule (5A)" shall be inserted;
(iv) in Explanation 3, after the words, brackets and figures "Table in sub-rule (2)", the words, brackets, figures and letter "and in sub-rule (5A)" shall be inserted;(D) in sub-rule (7), after the words, brackets and figures "referred to in sub-rule (1)", the words, brackets, figures and letter "and sub-rule (5A)" shall be inserted.
[Notification No. 16/2021] [F.No. 370142/03/2021-TPL]
SHEFALI SINGH, Under Secy., Tax Policy and LegislationNote:- The principal rules were published vide notification S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification GSR No. 170(E), dated the 11th March, 2021.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
| Rule of the 1962 Rules | Now, in the 2026 Rules |
|---|---|
| Rule 114E | rule 237 |
The date of publication in the Official Gazette (the notification is dated 12 March 2021).
In the annual information reflected in Form 26AS and the pre-filled return, and in the statement of financial transaction that an exchange, depository, company, bank or non-banking financial company must file.
Rules it names. Rule 114E 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.
← Notification No. 17/ 2021 [F. No. 279/Misc./66/2014-SO(ITJ)(Pt.)] / SO 1225(E) · Notification No. 15/2021[F.No. 370142/04/2019-TPL] / GSR 170(E) →
Source: the Income Tax Department’s own published text — its page for this instrument.
