The Central Board of Direct Taxes has notified the Income-tax (28th Amendment) Rules, 2021 to amend Rule 11UAC of the existing Income-Tax Rules, 1962. The notification shall come into force from 1st April 2022 and shall be applicable from A.Y. 2022-23 onwards.
Vide this notification, the CBDT has inserted the following new clause in Rule 11UAC:
"(4) any movable property, being equity shares, of the public sector company, received by a person from the Central Government or any State Government under strategic disinvestment.
For the purpose 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."
- Rule 11UAC: This rule draws its origin from Section 56(2)(x)(XI) of the Income Tax Act, 1961. The aforementioned sub-clause talks about the class of persons on whom the provisions of Section 56(2)(x) shall not apply.
- Section 56(2)(x): Section 56 is basically the charging section of Income from other sources, sub-section (2) of which provides a particular list of incomes which are chargeable under the head, income from other sources, clause (x) being a part of that list.
Equity shares of a public sector company received by a person from the CG or any SG under strategic disinvestment shall not be chargeable as income from other sources under Section 56(2)(x).
Click here to read the official announcement.
Courtesy: Tanveer SalujaTags : cbdtincome tax