Quick Summary
The Central Board of Direct Taxes (CBDT) has recently issued Notification 43/2023, introducing crucial amendments to the Income-tax Rules, 1962. These amendments aim to provide clarity and guidelines pertaining to the taxation provisions outlined in section 115BAC of the Income-tax Act, 1961. The ch
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FAQ :
The main purpose is to introduce new IT Rule 21AGA and amend existing Income Tax Rules (2BB, 3, and 5) to provide clarity and guidelines for taxation under Section 115BAC of the Income-tax Act, 1961.
Rules 2BB, 3, and 5 of the Income-tax Rules, 1962, have been amended.
A new rule, 21AGA, has been inserted, which deals with the exercise of options under sub-section (6) of Section 115BAC.
The amendments specify that employees who have exercised an option under sub-section (5) of Section 115BAC, or whose income is taxable under sub-section (1A) of Section 115BAC, are entitled to exemptions only for specific allowances mentioned in the rules.
Amendments to Rule 5 introduce new provisos that limit depreciation allowance to 40% of the written down value for certain entities exercising options under specific sections, including Section 115BAC.
The exercise or withdrawal of the option under Section 115BAC is now governed by new Rule 21AGA, which specifies the use of Form No. 10-IEA and electronic filing procedures for individuals, HUFs, and other specified entities.
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