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CBDT notifies the Equalisation Levy “EL” (Amendment) Rules, 2020 to give effect to EL 2.0 provisions

The Central Board of Direct Taxes have introduced new equalization levy rules w.e.f Oct 28, 2020. Some key aspects are as follows:

  1. The payment of the levy can now be made to the Reserve Bank of India, State Bank of India or any other authorised bank, through an EL challan. 
  2. Form 1 (Rule 5 of EL Rules, 2016) is revised to enable furnishing of statement for e-commerce supply and services and related payments through digital signatures or electronic verification code*. The Form also provides an option to the taxpayer to claim refund in case of excess payment of the levy. 
  3. *The term “electronic verification code” has been defined to mean a code generated for the purpose of electronic verification of the person furnishing the statement of specified services as per the data structure and standards laid down by the Principal Director- General of Income-tax (Systems) or Director General of Income-tax (Systems). 
  4. Form 1 is to be furnished and verified online on or before 30th day of June of the immediately following that financial year. 
  5. The taxpayer will be required to obtain tax identification number (PAN) in India to furnish the statement. 
  6. Forms for filling appeals also notified. 
  7. Form 3 – Appeal to CIT (A) - Rule 8 of EL Rules, 2016 
  8. Form 4 – Appeal to Tribunal - Rule 9 of EL Rules, 2016