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Scope of Section 285B widened to cover Specified Activities: Budget 2022

scope-of-section-285b-widened-to-cover-specified-activities-budget-2022

Finance Bill, 2022 proposes to widen the scope of section 285B related to reporting by producers of cinematograph films or persons engaged in specified activities in Form 52A.


Under section 285B, the producer of cinematographic films is obliged to furnish within 30 days from the end of the financial year or from the date of completion of the film, whichever is earlier, a statement containing particulars of all payments over Rs. 50,000/- in the aggregate made by him or due from him to each person engaged by him.



It is proposed to widen the scope of section 285B to include persons engaged in specified activities to expand the reporting requirements in Form 52A. 


“Specified Activities” would mean event management, documentary production, production of programs for telecasting on television or over the top platforms or any other similar platform, sports event management, other performing arts or any other activity as the Central Government may, by notification in the Official Gazette, specify in this behalf.


Clause 84 of the Finance Bill, 2022 proposes to amend and substitute section 285B in the following words-


Substitution of new section for section 285B.


84. For section 285B of the Income-tax Act, the following section shall be substituted, namely:–


Submission of statements by producers of cinematograph films or persons engaged in specified activity. 


‘285B. Any person carrying on the production of a cinematograph film or engaged in any specified activity, or both, during the whole or any part of any financial year shall, in respect of the period during which such production or specified activity is carried on by him in such financial year, furnish within the prescribed period, a statement in the prescribed form to the prescribed income tax authority in the prescribed manner, containing particulars of all payments of over fifty thousand rupees in the aggregate made by him or due from him to each such person as is engaged by him in such production or specified activity. 


Explanation.–For the purposes of this section, “specified activity” means any event management, documentary production, production of programmes for telecasting on television or over the top platforms or any other similar platform, sports event management, other performing arts or any other activity as the Central Government may, by notification in the Official Gazette, specify in this behalf.’. 


Explaining the substituted provisions of section 285B


Clause 84 seeks to substitute section 285B of the Income-tax Act relating to submission of statements by producers of cinematographic films. The existing section provides that producers of cinematographic films shall furnish within thirty days from the end of the financial year or from the date of completion of the film, whichever is earlier, a statement containing particulars of all payments over fifty thousand rupees in the aggregate made by him or due from him to each person engaged by him. 



It is proposed to substitute the said section to provide that any person carrying on the production of a cinematograph film or engaged in any specified activity, or both, during the whole or any part of any financial year shall, in respect of the period during which such production or specified activity is carried on by him in such financial year, furnish within the prescribed period, a statement in the prescribed form to the prescribed income-tax authority in the prescribed manner, containing particulars of all payments of over fifty thousand rupees in the aggregate made by him or due from him to each such person as is engaged by him in such production or specified activity. 


It is proposed to clarify that for the purposes of this section, “specified activity” means event management, documentary production, production of programmes for telecasting on television or over the top platforms or any other similar platform, sports event management, other performing arts or any other activity as the Central Government may, by notification in the Official Gazette, specify in this behalf. 


This amendment will take effect from 1st April, 2022 and shall apply from the assessment year 2022-23.


Update:

CBDT Notifies Form 52A and Rule 121A for producers of cinematograph films or persons engaged in specified activity under section 285B


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