Faceless Assessment: additional exception allows off-platform assessments where ITBA pendency failed or PAN is absent.
The Central Board adds an exception to the faceless assessment regime permitting assessments outside the national faceless mechanism where ITBA pendency could not be created for technical reasons or where the assessee lacks a PAN, and clarifies that cases transferred by senior officials in charge of the national faceless mechanism are to be handled as per the specified procedural letter.

Extension of electronic filing deadlines for specified statutory tax forms improves compliance timelines for affected filers.
Extension of electronic filing deadlines is provided for applications for registration or approval in Form No.10A and Form No.10AB, Equalization Levy Statement in Form No.1, authorized-dealer quarterly statements in Form No.15CC, recipient declarations in Form No.15G/15H, Sovereign Wealth Fund and Pension Fund intimations in Form II SWF and Form No.10BBB, and international group reporting in Forms No.3CEAC, 3CEAD and 3CEAE, with specified revised final dates for each listed filing obligation.

Extension of filing deadlines for specified income-tax e-forms provides additional time for electronic submission and regularisation.
CBDT extends electronic filing due dates for specified Income-tax Forms: Quarterly Form 15CC and Equalization Levy Statement (Form 1) are granted additional time; investment fund statements (Forms 64D and 64C) receive further extensions; and, where the e filing utility was unavailable, Pension Fund intimations (Form 10BBB) and Sovereign Wealth Fund intimations (Form II SWF) are likewise extended. The circular clarifies that forms e filed after prior extended deadlines or statutory time limits up to the date of this circular will be regularised accordingly.

Processing time-barred tax returns: administrative relaxation permits processing of valid refund claims with prior CCIT approval.
The Board relaxes the time-frame in the second proviso to sub-section (1) of section 143 to permit processing of validly filed, time-barred non-scrutiny returns with refund claims up to assessment year 2017-18, subject to prior administrative approval of the Pr.CCIT/CCIT, DGIT(Systems) enablement to the assessing officer, and exclusions for returns selected for scrutiny, returns showing or likely to produce demand, or returns unprocessed for reasons attributable to the assessee.

Deemed transfer on reconstitution triggers entity-level capital gains and attribution to remaining assets to avoid double taxation.
A deeming rule treats transfers on dissolution or reconstitution as if the specified entity transferred capital assets or stock in trade at fair market value, taxing resulting profits in the hands of the specified entity in the year the asset is received. The substituted receipt provision charges profits on amounts or assets received on reconstitution as capital gains of the specified entity and prescribes an attribution mechanism, with rule 8AB clarified to apply to assets forming part of a block so that attributed amounts reduce future consideration and adjust written down value or capital gains computation as applicable.

TDS on purchases: buyers must deduct tax at source on payments or credits to resident sellers when statutory thresholds are met.
Buyers whose preceding year business turnover exceeds the prescribed threshold must deduct tax at source under section 194Q at the time of payment or credit (whichever is earlier) on purchases from resident sellers when aggregate purchases in the previous year exceed the prescribed limit; advance payments are covered. Exclusions include transactions cleared through recognized exchanges or clearing corporations, power exchanges trades, purchases by non residents not connected to a PE in India, and purchases from persons wholly exempt from income tax. GST, purchase returns, and cross application with other TDS/TCS provisions are subject to the specific adjustments and hierarchy set out in the guidelines.

Extension of tax compliance deadlines under Section 119 provides pandemic relief for multiple statutory filings and certificates.
The tax administration, invoking Section 119, grants targeted extensions of time for a range of income tax compliances due during the pandemic. Specified filings and actions-including objections to the Dispute Resolution Panel, prescribed quarterly and annual statements, Form No.16 certificates, investment fund statements, equalization levy returns, authorized dealer statements, registration applications for trusts and institutions, and time bound investment or construction actions to claim exemptions-may be completed by the later cut off dates set out for each category in the circular.

Specified Person identification via Project Insight enables tax deductors to verify applicability under sections 206AB and 206CCA.
CBDT designates the Director General of Income-tax (Systems) to provide information via the Project Insight portal to TAN-registered tax deductors/collectors to identify Specified Persons under sections 206AB and 206CCA. Data to be furnished includes masked PAN name, PAN allotment date, PAN-Aadhaar link status (Linked; Not Linked; Exempt; Not-Applicable) for individual PAN holders, and a Yes/No indicator of specified person status. Procedural details and data format will be notified by the Director General after CBDT approval.

Specified person classification triggers higher TDS/TCS rates; portal enables PAN single and bulk compliance checks.
Sections 206AB and 206CCA impose a higher rate of tax deduction or collection on specified persons, defined by non-filing of returns for the two relevant assessment years and specified aggregate TDS/TCS thresholds; a CBIT functionality enables single or bulk PAN searches against a list prepared at the start of each financial year, with names removed upon valid return filing, revised/belated TDS/TCS filings, or threshold change, while the list remains static for that financial year and deductors remain responsible for proviso-based due diligence.

Compulsory scrutiny selection: centralised assessment by NaFAC or Central Charges for survey, search, and specified cases.
Guidelines allocate compulsory scrutiny of returns for 2021-22: survey cases with impounded material must be transferred to Central Charges within fifteen days of the notice; survey cases without impounded material, search and certain 142(1)/148 non-return situations, and returns filed after specified notices will have assessment proceedings conducted by the National Faceless Assessment Centre, with the Jurisdictional Assessing Officer required to upload relevant reports and issue preliminary notices as prescribed.

Inclusion of State Police Agencies under NATGRID access expands authorised recipients of taxpayer information for intelligence purposes.
The Central Board of Direct Taxes partially modifies its prior order to insert State Police Agencies as notified by the Central Government in connection with NATGRID project among authorised recipients of taxpayer information under Section 138(1)(a); the MoU between the Director General of Income-tax (Systems) and NATGRID must be amended to include those agencies and a copy of the amended MoU is to be forwarded for record, while all other provisions remain unchanged.

Employer-funded medical treatment exclusion: employer payments for specified eye treatment at approved hospital not taxable as perquisite.
Approval is granted to M/s Raj Retina and Eye Care Centre under the proviso to clause (viii) of sub-section (2) of section 17 read with Rule 3A(1) & 3A(2). Employer payments for medical treatment at the approved hospital for eye-related diseases or ailments (excluding ear, nose or throat) shall not be treated as a perquisite for sections 15, 16 and 17, and the employer need not deduct tax at source in respect of such sums.

Limitation period extension for tax appeals: taxpayers may choose the more beneficial relaxation for filing appeals until further orders.
Periods of limitation for filing appeals before the CIT(Appeals) under the Income-tax Act are extended until further orders; where multiple relaxations apply, the taxpayer is entitled to the relaxation most beneficial to him, and for counting limitation periods for appeals before the CIT(Appeals) the more beneficial extension applies.

Extension of time limits for tax compliances grants relief by postponing multiple income tax filing and reporting deadlines.
Extension of time limits for specified income tax compliances postpones filing deadlines for SFT, reportable account statements, quarter end TDS/TCS statements, employee TDS certificates, trustee superannuation statements, investment fund income statements, returns of income (including belated and revised), audit reports and accountant reports for international and specified domestic transactions; clarifications exclude certain return filing cases from interest relief and deem timely paid tax by certain resident individuals as advance tax.

Extension of compliance deadlines under the Income tax Act allows additional time to file appeals, objections, returns and statements.
Extension of timelines under the Income-tax Act grants relief by shifting due dates to 31st May for specified compliance obligations falling on or after 1st April 2021, including appeals to the Commissioner (Appeals), objections to the Dispute Resolution Panel, returns in response to Section 148 notices, belated and revised returns for the relevant assessment year, payment and challan-cum-statement filings for tax withheld, and Form No. 61 statements for declarations under Form No. 60.

Jurisdiction over non-Income tax direct tax appeals allocated to designated Commissioners, to be notified by principal chief commissioners.
The Faceless Appeal Scheme, 2020 notifications apply only to the Income tax Act, 1961 and do not confer faceless appeal jurisdiction on other Direct Tax Acts. The Board has approved designation of specific Commissioners of Income tax (Appeals) in each Principal Chief Commissioner region to exercise jurisdiction over appeals under those other Direct Tax Acts; Principal Chief Commissioners must notify the designated Commissioners and forward copies to the Board. The designation is effective from 25th September 2020 or from creation of the designated post, whichever is later.

Assessment scope under section 144B specified: designated classes of pending and new assessments to be completed under that provision.
The order specifies that assessments pending on the cutoff and those initiated thereafter, excluding central charges and international taxation charges, which fall within four categories - notices issued by NeAC/NaFAC, returns filed under section 139 or in response to section 142(1)/148(1) with a section 143(2) notice by the Assessing Officer or Prescribed Income tax Authority, failure to file after a section 142(1) notice, and failure to file after section 148(1) where a section 142(1) notice was issued - shall be completed under section 144B.

Faceless Assessment hierarchy: Pr. CCsIT regions made cadre controlling authority; NaFAC to frame guidelines and oversight.
Pr. CCsIT of each region is designated as Cadre Controlling Authority for all regional field formations including ReFACs and is responsible for jurisdictional hierarchy, administrative functioning and completion of Faceless Hierarchy targets; CCsIT (ReFAC) reports to the regional Pr. CCIT for APAR purposes while Pr. CCIT (NaFAC) may provide inputs.

Condonation of delay under section 119(2)(b): Form 10B late-filing applications to be disposed within three months.
Condonation of delay under section 119(2)(b) for late filing of Form No. 10B (years prior to AY 2018-19) is to be processed by the Exemption Charges and, per the modified guidance, all pending and new applications shall be disposed of preferably within three months from the end of the month in which the application is received; the modification takes effect from 31st day of March, 2021.

Condonation of delay under section 119(2)(b): administrative disposal of Form 10BB condonation applications within a fixed timeline.
The Board partially amends an earlier circular to require that all pending applications and applications received henceforth for condonation of delay in filing Form No. 10BB under section 119(2)(b) shall be disposed of preferably within three months from the end of the month in which the application is received; the modification takes effect from the effective date specified in the circular.