Amendment in matters relating to statement of reportable account (Rule 114H of Income tax rules 1962), Income tax 15th amendment rules, 2016.

CBDT has extend the  time limit for review of pre-existing accounts, in order to provide sufficient time to the reporting financial institutions for completing the due diligence procedure (Amendment in rule 114H).

1. High value account as on 31st December 2015 reffered to in Rule 114H (3)(d)(ii):

Specified timeline for review of pre-exisiting individual account has been extended from 30^th june 2016 to 31^st December,2016.

2. Other reportable account reffered to in Rule 114H(5)e(i):

Specified timeline for review of pre-exisiting individual account has been extended from 30^th june 2016 to 31^st December,2016.

3. For U.S reportable account :

Timeline continue to be 30^th June 2016.

Further Amendment in meaning of “passive non-financial entity” in Rule 114F, in clause (6), Explanation, in clause (D) .

"passive non-financial entity" means,-

(i)   any non-financial entity which is not an active non-financial entity; or

(ii)  an investment entity described in sub-clause (B) of clause (c) of the Explanation to clause (3), which is not located in any of the jurisdictions specified by the Central Board of Direct Taxes in this behalf; or

(iii)  not a withholding foreign partnership or a withholding foreign trust

Before amendment it is read as

"passive non-financial entity" means,-

(i)    any non-financial entity which is not an active non-financial entity; or

(ii)  an investment entity described in sub-clause (B) of clause (c) of the Explanation to clause (3); or

(iii)  a withholding foreign partnership or withholding foreign trust;

Income tax 15^th amendment Rules, Notification No. 48/2016 (Dated 20^th June 2016).