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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 1st October, 2020
INCOME-TAX
G.S.R. 610(E).—In exercise of the powers conferred by section 44AB, section 92E, clause (iv) of
sub-section (2) of section 115BAA, sub-clause (iii) of clause (c) of sub-section (2) of section 115BAB,
clause (iii) of sub-section (2), proviso to sub-section (3) and sub-section (5) of section 115BAC, clause (iii)
of sub-section (2), proviso to sub-section (3) and sub-section (5) of section 115BAD read with section 295
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 (22nd Amendment)
Rules, 2020.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962 (hereafter referred to as the principal rules), -
(a) in rule 5, in sub-rule (1), for the proviso, the following proviso shall be substituted, namely: -
“Provided that 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 in case of -
(i)
a domestic company which has exercised option under sub-section (4) of section 115BA, or
under sub-section (5) of section 115BAA, or under sub-section (7) of section 115BAB; or
(ii) an individual or Hindu undivided family which has exercised option under sub-section (5) of
section 115BAC; or
(iii) a co-operative society resident in India which has exercised option under sub-section (5) of
section 115BAD:
[भाग II—खण् ड 3(i)]
भारत का राजपत्र : ऄसाधारण
11
Provided further that, for the purposes of section 115BAA, if the following conditions are satisfied,
namely: -
(i)
option under sub-section (5) thereof is exercised for a previous year relevant to the assessment
year beginning on the 1st day of April, 2020;
(ii)
there is a depreciation allowance, in respect of a block of asset, from any earlier assessment
year or allowance of unabsorbed depreciation deemed so under section 72A, which is
attributable to the provisions in clause (iia) of sub-section (1) of section 32; and
(iii)
such depreciation or allowance for unabsorbed depreciation is not allowed to be set off under
clause (ii) or clause (iii) of sub-section (2) thereof, the written down value of the block of asset
as on the 1st day of April, 2019 shall be increased by such depreciation or allowance for
unabsorbed depreciation not allowed to be set off:
Provided also that, for the purposes of section 115BAC and section 115BAD, if the following
conditions are satisfied, namely: -
(i)
the option under sub-section (5) of the respective section is exercised for a previous year
relevant to the assessment year beginning on the 1st day of April, 2021;
(ii)
there is a depreciation allowance, in respect of a block of asset, from any earlier assessment
year which is attributable to the provisions in clause (iia) of sub-section (1) of section 32; and
(iii)
such depreciation is not allowed to be set off under sub-clause (a) of clause (ii) of sub-section
(2) of section 115BAC or clause (ii) of sub-section (2) of section 115BAD,
the written down value of the block of asset as on the 1st day of April, 2020 shall be increased by
such depreciation not allowed to be set off.”;
(b) after rule 21AF, the following rules shall be inserted, namely: -
“Exercise of option under sub-section (5) of section 115BAC. - 21AG. (1) The option to be
exercised in accordance with the provisions of sub-section (5) of section 115BAC by a person, being an
individual or Hindu undivided family, for any previous year relevant to the assessment year beginning on
or after the 1st day of April, 2021, shall be in Form No. 10-IE.
(2) The option in Form No. 10-IE shall be furnished electronically either under digital signature or
electronic verification code.
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax
(Systems), as the case may be, shall, -
(i) specify the procedure for filing of Form No. 10-IE;
(ii) specify the data structure, standards and manner of generation of electronic verification code,
referred to in sub-rule (2), for verification of the person furnishing the said Form; and
(iii) be responsible for formulating and implementing appropriate security, archival and retrieval
policies in relation to the Form so furnished.
Exercise of option under sub-section (5) of section 115BAD. - 21AH. (1) The option to be
exercised in accordance with the provisions of sub-section (5) of section 115BAD by a person, being a co-
operative society resident in India, for any previous year relevant to the assessment year beginning on or
after the 1st day of April, 2021, shall be in Form No. 10-IF.
(2) The option in Form No. 10-IF shall be furnished electronically either under digital signature or
electronic verification code.
(3) The Principal Director General of Income-tax (Systems) or the Director General of Income-tax
(Systems), as the case may be, shall, -
(i)
specify the procedure for filing of Form No. 10-IE;
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
(ii)
specify the data structure, standards and manner of generation of electronic verification code,
referred to in sub-rule (2), for verification of the person furnishing the said Form; and
(iii)
be responsible for formulating and implementing appropriate security, archival and retrieval
policies in relation to the Form so furnished.
3. In the principal rules, in Appendix II,-
(a) in Form No 3CD,-
(i)
in Part A, after serial number 8 and the entries relating thereto, the following shall be inserted,
namely: -
“8a. Whether the assessee has opted for taxation under section 115BA/115BAA/115BAB?”;
(ii) in Part B, -
(I) in serial number 18, after clause (c), the following clauses shall be inserted, namely: -
“(ca) Adjustment made to the written down value under section 115BAA (for assessment
year 2020-21 only) ………….
(cb) Adjusted written down value …………………………….”;
(II) in serial number 32, for clause (a), the following clause shall be substituted, namely: -
“(a) Details of brought forward loss or depreciation allowance, in the following manner, to the extent
available:
Sl
No
Assessment
Year
Nature of loss/
allowance (in
rupees)
Amount as
returned*
(in rupees)
All losses/
allowances not
allowed under
section 115BAA
Amount as adjusted by
withdrawal of additional
depreciation on account of
opting for taxation under
section 115BAA^
Amounts as
assessed (give
reference to
relevant order)
Remarks
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
*If the assessed depreciation is less and no appeal pending than take assessed.
^ To be filled in for assessment year 2020-21 only.”;
(b) in Form No 3CEB, in Part C,-
(i) serial number 22 and the entries relating thereto shall be omitted;
(ii) serial numbers 23 and 24 shall be re-numbered as serial numbers 22 and 23 respectively;
(iii) after serial number 23 as so renumbered, the following shall be inserted, namely: -
“24.
Particulars in respect of specified domestic transaction in the nature of any business
transacted between the persons referred to in sub-section (6) of section 115BAB:
Has the assessee entered into any specified domestic transaction(s) with any persons
referred to in sub-section (6) of section 115BAB which has resulted in more than ordinary
profits expected to arise in such business?
If “yes”, provide the following details:
(a)
Name of the person with whom the specified domestic transaction has been entered
into
(b) Description of the transaction including quantitative details, if any.
(c)
Total amount received/receivable or paid/ payable in the transaction -
(i)
as per books of account;
(ii) as computed by the assessee having regard to the arm’s length price.
(d) Method used for determining the arm’s length price [See section 92C(1)].
Yes/No
_______________”;
[भाग II—खण् ड 3(i)]
भारत का राजपत्र : ऄसाधारण
13
(c) after Form No. 10-ID, the following forms shall be inserted, namely: -
“FORM No. 10-IE
[See sub-rule (1) of rule 21AG]
Application for exercise/ withdrawal of option under clause (i) of sub-section (5) of section 115BAC
of the Income-tax Act, 1961
To,
The Assessing Officer,
……………..
……….........
Sir/ Madam,
I, ..................................................[name of individual]/ Karta of Hindu undivided family
(HUF)................[name of HUF]* / ......................... , on behalf of........................... [name and address of the
individual/ HUF*, having Permanent Account Number (PAN) …………………….. do hereby exercise/
withdraw* the option referred to in clause (i) of sub-section (5) of section 115BAC of the Income-tax Act,
1961 for previous year 20…..-……and subsequent years.
2. The details for this purpose are given below:
(i) Name of the individual/ HUF*
:
(ii) Whether the individual/ HUF* has any income under
the head profit or gains from business or profession
: Yes/ No
(iii) PAN
:
(iii) Address
:
(iv) Date of Birth/ Incorporation*
:dd/mm/yyyy
(v) Nature of Business/ Profession*
:
3.
(i) Whether the individual/ HUF has any Unit in International Financial Services Centre (IFSC), as
referred to in sub-section (1A) of section 80LA: Yes/No
(ii)
If answer to (i) is Yes, provide following details: (Add number of columns depending on number of
Units):
Unit 1
Unit 2
Unit 3
(1)
(2)
(3)
(4)
Name of Unit
Address of Unit
Nature of activities undertaken in Unit
4.
(i) Whether option under clause (i) of sub-section (5) of section 115BAC has been exercised in Form
10-IE for any earlier previous year/ years and is now being withdrawn (to be activated if withdrawal
option is selected)
: Yes/No
(ii) If yes, previous year in which option was exercised
: 20....-20.....
(iii) Date on which option exercised in Form 10-IE
: d/mm/yyyy
5. I understand that the option under clause (i) of sub-section (5) of section 115BAC, once exercised in a
previous year, cannot be withdrawn for the same previous year and can subsequently be withdrawn only
once for any other previous rendering me/ Individual/ HUF* ineligible for exercising option under section
115BAC in terms of proviso to sub-section (5) thereof.
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
6. I do hereby further affirm that the conditions stipulated in section 115BAC are and shall be satisfied by
me/ Individual/ HUF* (to be activated in case where the option is being exercised).
*Delete whichever is inapplicable.
Place:
Date:
Yours faithfully,
Signature of Individual/ Karta of HUF / Authorised Representative …………….……………….
Name…………………………………
Designation………………………….
Address…………………….…………
Note: This form shall be signed by the individual/ Karta of the HUF/ Authorised Representative.
FORM No. 10-IF
[See sub-rule (1) of rule 21AH]
Application for exercise of option under sub-section (5) of section 115BAD of the
Income-tax Act, 1961
To,
The Assessing Officer,
……………
………
Sir/ Madam,
I,.................................................. , on behalf of [name and registered address of the co-operative
society exercising the option under sub-section (5)
of
section 115BAD]
……….
having
Permanent Account Number (PAN)……………………………….. do hereby exercise the option referred
to in sub-section (5) of section 115BAD of the Income-tax Act, 1961 for previous year 20…..-……
and subsequent years.
2.
The details of the co-operative society are given below:
(i)
Name of the co-operative society
:
(ii)
Whether a resident co-operative society
:
Yes/No
(iii)
PAN
:
(iv)
Registered Address
:
(v)
Date of Incorporation
:
dd/mm/yyyy
(vi)
Nature of activities
:
3. (i) Whether the co-operative society has any Unit in International Financial Services Centre (IFSC), as
referred to in sub-section (1A) of section 80LA: Yes/No
(ii) If answer to (i) is Yes, provide following details: (Add number of columns depending on number of
Units):
Unit 1
Unit 2
Unit 3
Name of Unit
Address of Unit
Nature of activities undertaken
in Unit
[भाग II—खण् ड 3(i)]
भारत का राजपत्र : ऄसाधारण
15
5.
I understand that the option under sub-section (5) of section 115BAD, once exercised for any
previous year, cannot be subsequently withdrawn for the same or any other previous year.
6.
I do hereby further affirm that the conditions stipulated in section 115BAD are and shall be
satisfied by the aforesaid co-operative society.
Place:
Date:
Yours faithfully,
Signature of Principal Officer…………….……………….
Name…………………………………
Designation………………………….
Address…………………….…………
Note: This form shall be signed by the principal officer.”;
(d) in Form ITR-6 relating to assessment year 2020-21,-
(i) in Schedule DPM, -
(I) after serial number 3 and the entries relating thereto, the following shall be inserted, namely: -
“3a.
Amount as adjusted on account
of opting for taxation section
115BAA
3b.
Adjusted Written down value on
the first day of previous year (3)
+ (3a)”;
(II) for serial number 5, the following shall be substituted, namely: -
“5.
Consideration
or
other
realization during the previous
year out of 3b or 4”;
(III) for serial number 6, the following shall be substituted, namely: -
“6.
Amount on which depreciation
at full rate to be allowed (3b +
4 -5) (enter 0, if result is
negative)”;
(IV) for serial number 20, the following shall be substituted, namely: -
“20.
Capital gains/ loss under
section 50 (5 + 8 -3b - 4 -7 -
19) (enter negative only, if
block ceases to exist)”;
(ii) for Schedule CFL, the following Schedule shall be substituted, namely: -
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THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(i)]
“Schedule CFL Details of Losses to be carried forward to future years
CARRY FORWARD OF LOSS
S. No.
Assessment
Year
Date of
Filing
(DD/
MM/
YYYY)
House
property
loss
PTI
house
property
loss
Total
House
property
loss
Loss from business other than loss
from speculative business and
specified business
Loss from
speculative
business
Loss
from
specified
business
Loss from
life
insurance
business
u/s 115B
Short-term capital loss
Long-term Capital loss
Loss from
owning and
maintaining
race horses
Brought
forward
business
loss
Amount as
adjusted on
account of
opting for
taxation
section
115BAA/
Brought
forward
Business
loss
available
for set
off during
the year
Normal
PTI
Total
Normal
PTI
Total
1
2
3
4a
4b
4c
5a
5b
5c=5a-5b
6
7
8
9a
9b
9c=9a+9b
10a
10b
10c
11
I
2010-11
Ii
2011-12
iii
2012-13
iv
2013-14
v
2014-15
vi
2015-16
vii
2016-17
viii
2017-18
ix
2018-19
x
2019-20
xi
Total of
earlier year
losses b/f
xii
Loss
distributed
among the
unit holder
(Applicable
for
Investment
Fund only)
xiii
Balance
available of
Total of
earlier year
b/f (xi-xii)
xiv
Adjustment
of above
losses in
Schedule
BFLA
(2i of
schedule
BFLA)
(2ii of
schedule
BFLA)
(2iv of
schedule
BFLA)
(2v of
schedule
BFLA)
(2iii of
schedule
BFLA)
(2xiv of
schedule
BFLA)
xv
2020-21
(Current
year losses to
be carried
forward)
(2xvi of
schedule
CYLA
(3xvi of
schedule
CYLA)
(B48 of
schedule BP,
if –ve)
(C54 of
schedule
BP, if –
ve)
E(iv) of
schedule
BP, (if –ve)
(2x+3x+4x+5x
of item E of
schedule CG)
(6x+7x+8x)
of item E of
schedule
CG)
(8e of
schedule OS,
if –ve)”
xvi
Total loss
Carried
forward to
future years
xvii
Current year
loss
distributed
among the
unit-holder
(Applicable
for
Investment
fund only)”;
[भाग II—खण् ड 3(i)]
भारत का राजपत्र : ऄसाधारण
17
(iii) for Schedule UD, the following Schedule shall be substituted, namely: -
“Schedule UD
Unabsorbed depreciation and allowance under section 35(4)
S. No
Assessment Year
Depreciation
Allowance under section 35(4)
Amount of
brought
forward
unabsorbed
depreciation
Amount as adjusted on
account of opting for
taxation section 115BAA
Amount of depreciation
set-off against the current
year income
Balance carried
forward to the
next year
Amount of brought
forward unabsorbed
allowance
Amount of allowance
set-off against the
current year income
Balance
Carried
forward to
the next year
(1)
(2)
(3)
(3a)
(4)
(5)
(6)
(7)
(8)
i
Current Assessment
Year
ii
iii
iv
Total”.
[Notification No. 82/2020/F. No. 370142/30/2020-TPL]
ANKIT JAIN, Under Secy .(Tax Policy and Legislation Division)
Note : The principal rules were published in the Gazette of India Extraordinary, Part III, section 3,
sub-section (i), vide notification number S.O. 969(E), dated the, 26th March, 1962 and were last
amended vide notification number G.S.R. 574 (E) dated the 22nd September, 2020.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.
