Summary of Income-tax (8th Amendment) Rules, 2020

CBDT amended Rule 44G of Income tax Rules, 1962 for making an application to invoke the mutual agreement procedure (‘MAP’) in Form no. 34F. 

According to the amended rule, the competent authority in India shall endeavour to arrive at a mutually agreeable resolution on tax disputes in accordance with the agreement between India and the other country or specified territory within an average time period of twenty-four months. 

The amendment also states that if a resolution is arrived, the same shall be communicated to the assessee, who shall communicate acceptance or non-acceptance within 30 days. 

Upon acceptance of the resolution, the assessee shall withdraw any appeal filed in this regard and pay the tax determined by the assessing officer after giving effect to the resolution.

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