Explained: What is Income Tax Rule 132 and why is it important for taxpayers?
The Central Board of Direct Taxes (CBDT) has amended the Income Tax Act to include Rule 132. The new calculation of income under Subsection 18 of Section 155 of the Income Tax Act 1961 income tax is dealt with in Rule 132 of the Income Tax Act. Tax Rules, 1962, which came into effect on October 1, 2022. It is essential that anyone responsible for running businesses is aware of Rule 132 recently added to the Income Tax Act. Income Tax Act 132 CBDT Regulation discusses whether businesses must deduct surtax payments when determining their taxable income. To request the recalculation of total income under Section 155(18), Form 69 has been made available by the Department of Income Tax under Rule 132 of the Income Tax Act on income. For those with income from a business or profession that also benefited from the surtax deduction, Rule 132 was enacted. Therefore, Form 69 should be used by taxpayers who have claimed a deduction for a tax or surcharge and submitted to the electronic income tax portal with properly filed information such as taxable income, tax paid and the deduction claimed as tax or surcharge.