CBDTNotificationNotification No. 103/2016 / F.No.370142/29/2016-TPL07 Nov 2016

Income-tax (29th Amendment) Rules, 2016

Deadline: 01 Apr 2017 · 3504 days ago · Effective date for New Appendix I Table amendment
Who: A domestic company which has exercised option under sub-section (4) of section 115BA
Action: Restrict depreciation allowance to forty per cent on the written down value of block of assets entitled to more than forty per cent.

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What changed

The Central Board of Direct Taxes issues the Income-tax (29th Amendment) Rules, 2016 to amend the Income-tax Rules, 1962. A domestic company exercising the option under section 115BA restricts depreciation allowance to forty percent for any asset block entitled to more than forty percent. The rule restricts the depreciation rate to forty percent for figures of fifty, sixty, eighty, and one hundred in Appendix I. The restriction under rule 5 applies from the first day of April, 2016. The substitution in Appendix I applies from the first day of April, 2017.

What you must do

Restrict depreciation allowance to forty per cent on the written down value of block of assets entitled to more than forty per cent.

Key dates

Effective from: 01 Apr 2016
Effective date for rule 5 proviso amendment: 01 Apr 2016
Effective date for New Appendix I Table amendment: 01 Apr 2017

Who is affected

A domestic company which has exercised option under sub-section (4) of section 115BA

Thresholds

Depreciation allowance for asset blocks entitled to more than forty per cent is restricted to forty per cent.

Ask about this notification

Written automatically from the official document. It is not a professional review, so check material decisions against the official record.

Document text

Prepared for reading; wording retained from the source.

Official source

MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 7th November, 2016 INCOME-TAX

S.O. 3399(E).—In exercise of the powers conferred by section 32, section 115BA and 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) These rules may be called the Income-tax (29th Amendment) Rules, 2016.

(2) In the Income-tax Rules, 1962 ( here after referred to as the principal rules),-

(a) in rule 5, after sub-rule (1), the following proviso shall be inserted with effect from 1st day of April, 2016, namely:- “Provided that in case of a domestic company which has exercised option under sub-section (4) of section 115BA, the allowance under clause (ii) of sub-section (1) of section 32 in respect of depreciation of any block of assets entitled to more than forty per cent. shall be restricted to forty per cent. on the written down value of such block of assets.”
(b) in the New Appendix I, in the Table, in the second column, for the figures “ ‘50’, ‘60’, ‘80’, ‘100’ ”, wherever they occur, the figure “40” shall be substituted with effect from the 1st day of April, 2017.

[Notification No. 103/2016/ F.No.370142/29/2016 -TPL] PITAMBAR DAS, Director (Tax Policy And Legislation)

Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide notification number S.O. 969 (E), dated the 26th March, 1962 and last amended by the Income-tax (28th Amendment) Rules, 2016, vide notification number G.S.R No.982(E),dated the 17.10.2016.

Source details

Official title: notification no. 103/2016 f.no.370142/29/2016 tpl / so 3399 e income tax 29th amendment rules 2016
Source: Central Board of Direct Taxes / Income Tax Department
Type: notification
Published by source: 07 Nov 2016
Document number: Notification No. 103/2016 / F.No.370142/29/2016-TPL
Issuing division: CENTRAL BOARD OF DIRECT TAXES
Effective date: 01 Apr 2016
Coverage area: direct-tax

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