Income Tax Updates: Transfer of capital assets from Air India Limited to Air India Assets Holding Limited

CS Tanveer Singh Saluja | Last updated: 12 September 2021

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The Central Board of Direct Taxes has issued notifications clarifying income tax rules for the transfer of capital assets from Air India Limited to Air India Assets Holding Limited. These changes, approved by the Central Government, affect tax deductions on property transfers and the classification of buyer/seller for goods transfer, with specific effective dates for each provision.

The Central Board of Direct Taxes has issued certain notifications to provide for transfer of capital assets from Air India Limited to Air India Assets Holding Limited and to clarify the following under the Income Tax Act, 1961:

Air India Capital Asset Transfer: Income Tax Clarifications

Notification No.	Section	Particulars	Applicability
S.O. 3678(E) Dtd. 10^th September, 2021	47(viiaf)	The CG has notified transfer of capital asset under plan approved by Central Government from Air India Limited (PAN: AACCN6194P), being transferor public sector company, to Air India Assets Holding Limited (PAN: AAQCA4703M), being transferee public sector company.	01^st April, 2022
S.O. 3679(E) Dtd. 10^th September, 2021	194-IA	No deduction of tax shall be made on any payment made to the Air India Limited or transfer of immovable property to Air India Assets Holding Limited under a plan approved by the Central Government.	01^st April, 2021 (deemed)
S.O. 3680(E) Dtd. 10^th September, 2021	194Q(1)	Air India Assets Holding Limited shall not be considered as 'buyer' in case of transfer of goods by Air India Limited to it under a plan approved by the Central Government.	01^st July, 2021 (deemed)
S.O. 3681(E) Dtd. 10^th September, 2021	206C(1H)	Air India Limited shall not be considered as 'seller' in relation to transfer of goods by it to Air India Assets Holding Limited under a plan approved by the Central Government.	01^st April, 2021 (deemed)