Income-tax (28th Amendment) Rules, 2021

Last updated: 13 September 2021

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The Ministry of Finance has issued the Income-tax (28th Amendment) Rules, 2021. These rules, effective from April 1, 2022, introduce a new clause (4) to rule 11UAC. This amendment clarifies the tax treatment of movable property, specifically equity shares, received from the Central or State Government through strategic disinvestment. The rules apply to assessment year 2022-23 and onwards.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 10th September, 2021
INCOME-TAX

G.S.R. 623(E). - In exercise of the powers conferred by clause (XI) of the proviso to clause (x) of sub-section (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, namely: ‒

1. Short title and commencement:-(1) These rules may be called the Income-tax (28^th Amendment) Rules, 2021.

(2) They shall come into force from the 1^st day of April, 2022 and shall be applicable for the assessment year 2022-23 and subsequent assessment years.

2. In the Income-tax Rules, 1962, in rule 11UAC, after clause (3), the following clause shall be inserted, namely: —

“(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.

Explanation–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.”.

[Notification No. 105/2021/F. No. 370149/158/2021-TPL]
ANKIT JAIN, Under Secy. (Tax Policy and Legislation)

Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide number S.O. 969(E), dated the 26^th March, 1962 and last amended by the Income-tax ( 27^th Amendment) Rules, 2021, vide notification number G.S.R. 616(E) dated 6^th September, 2021.

FAQ :

These are new rules made by the Central Board of Direct Taxes to further amend the Income-tax Rules, 1962, focusing on provisions related to strategic disinvestment.

The Income-tax (28th Amendment) Rules, 2021, come into force from the 1st day of April, 2022.

These rules are applicable for the assessment year 2022-23 and subsequent assessment years.

A new clause (4) has been inserted into rule 11UAC, which deals with any movable property, specifically equity shares, received by a person from the Central or State Government under strategic disinvestment.

The term 'strategic disinvestment' has the same meaning as assigned to it in clause (iii) of Explanation to clause (d) of sub-section (1) of section 72A of the Income-tax Act, 1961.