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;
12
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)].
