Reetu | Jun 1, 2023 |
CBDT notified Income Tax (Eighth Amendment) Rules 2023
The Central Board of Direct Taxes(CBDT) has notified Income Tax (Eighth Amendment) Rules 2023 and substituted sub-rule (4) of Rule 11UAC of the Income Tax Rules, 1962, expanding the scope of non-applicability of provisions of section 56(2)(x) of the Income-tax Act, 1961 in case of strategic disinvestment via issuing Notification.
The amended Rule now applies to circumstances involving the acquisition of the Company’s equity shares. The Rule formerly only applied to receiving stock shares in a public firm.
The Notification Stated as, “In exercise of the powers conferred by clause (XI) of the proviso to clause (x) of subsection (2) of section 56 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962.”
These rules may be called the Income-tax (Eighth Amendment) Rules, 2023. They shall come into force from the 1st day of April, 2023 and shall be applicable for the assessment year 2023-2024 and subsequent assessment years.
In the Income-tax Rules, 1962, in rule 11UAC, for clause (4), the following clause shall be substituted, namely: —
“(4) any movable property, being equity shares, of a public sector company or a company, received by a person from a public sector company or the Central Government or any State Government under strategic disinvestment.
Explanation – For the purposes of this clause, ‘strategic disinvestment’ shall have the same meaning as assigned to it in clause (iii) of Explanation to clause (d) of sub-section (1) of section 72A.”.
For Official Notification Download PDF Given Below:
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