The CBDT vide Notification No. 76/2021 dated July 2, 2021 has issued ‘the Income tax Amendment (18th Amendment), Rules, 2021’ to further amend the Income-tax Rules, 1962 (“the IT Rules”) in a following manner:
- Rule 8AA(5) of the IT Rules has been inserted wherein the method of determination of period of holding of capital assets in case of the amount which is chargeable to income-tax as income of specified entity under Section 45(4) of the Income-tax Act, 1961 (“the IT Act”) under the head “Capital gains” has been discussed.
- New Rule 8AB of the IT Rules has been inserted that deals with the attribution of income taxable under Section 45(4) of the IT Act to the capital assets remaining with the specified entity, under section 48 of the IT Act.
- New Form No. 5C has been introduced w.r.t. the details of amount attributed to capital asset remaining with the specified entity to be furnished under Rule 8AB of the IT Rules.
The Notification can be accessed at: https://www.incometaxindia.gov.in/communications/notification/notification_76_2021.pdf