Executive Summary:
This notification from the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, amends the Incometax Rules of 1962. These amendments, referred to as the 29th Amendment Rules, 2016, concern depreciation allowance for domestic companies and are effective from April 1, 2016, and April 1, 2017.
Key Points / Main Content:
* **Amendment Overview:** The Incometax Rules, 1962, are further amended.
* **Depreciation Allowance (Section 32):**
* For domestic companies exercising the option under subsection 4 of section 115BA, depreciation allowance under clause (ii) of subsection 1 of section 32 is restricted to 40% on the written down value of the block of assets entitled to more than 40%. This amendment is effective from April 1, 2016.
* **New Appendix I, Table Amendment:**
* The figures 50, 60, 80, and 100 in the second column of the table are substituted with the figure 40. This change is effective from April 1, 2017.
Impact Analysis:
Domestic Companies:
* Impact: Restriction of depreciation allowance to 40% for companies under section 115BA(4) and changes to figures in New Appendix I, Table.
* Action Required: Adjust depreciation calculations and financial reporting to comply with the new rules.
Key Entities Referenced
New Delhi: The location where the notification was issued.
Income-tax Act, 1961: A law that defines the rules and regulations related to income tax in India.
Central Board of Direct Taxes: A government organization responsible for direct tax administration in India.
Income-tax Rules, 1962: A set of rules that provide detailed procedures and guidelines for implementing the Income-tax Act, 1961.
Income-tax 29th Amendment Rules, 2016: Amendment to the Income-tax Rules, 1962.
Section 32: Section of the Income-tax Act, 1961 related to depreciation allowance.
Section 115BA: Section of the Income-tax Act, 1961 related to tax on profits and gains from business or profession.
Section 295: Section of the Income-tax Act, 1961 related to power to make rules.
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EXTRAORDINARY
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PART II—Section 3—Sub-section (ii)
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No. 2644] NEW DELHI, MONDAY, NOVEMBER 7, 2016/KARTIKA 16, 1938
िव(cid:7004)त म(cid:7074)ं ालय
(राज(cid:7021)व िव भाग)
(क(cid:7286)(cid:7076)ीय (cid:7079)(cid:7004)य (cid:6979) कर बोड)(cid:6981)
अिधसचू ना
नई (cid:7408)द(cid:7016)ल ी, 7 नव(cid:7013)ब र, 2016
आय-कर
का.आ. 3399(अ).—क(cid:7286)(cid:7076)ीय (cid:7079)(cid:7004) य(cid:6979) कर बोड,(cid:6981) आय-कर अिधनयम,1961 (1961 का 43) क(cid:7409) धारा 32, धारा 115,
खक और धारा 295 के (cid:7367)ारा (cid:7079)द(cid:7004) त शि(cid:6989) तय(cid:7298) का (cid:7079)योग करते (cid:7263)ए, आय-कर िनयम, 1962 का और संशोधन करने के िलए
िन(cid:7013) निलिखत िनयम बनाते ह,(cid:7289) अथात(cid:6981) ्:-
(1) इन िनयम(cid:7298) का संि(cid:6979)(cid:7009) त नाम आय-कर (उन(cid:7275)ीसवा ंसंशोधन ) िनयम, 2016 ह ै।
(2) आय-कर िनयम, 1962 (िजसे इसम (cid:7286)इसके प(cid:7019)च ात ्मलू िनयम कहा गया ह)ै म,(cid:7286) -
(क) िनयम 5 म,(cid:7286) उपिनयम (1) के प(cid:7019) चात्, 1 अ(cid:7079)लै , 2016 स ेिन(cid:7013)न िलिखत परंतकु अंत:(cid:7021)थ ािपत (cid:7408)कया जाएगा, अथा(cid:6981)त् :-
“परंत ु(cid:7408)कसी दशे ी कंपनी, िजसने धारा 115खक क(cid:7409) उपधारा (4) के अधीन िवक(cid:7016)प (cid:7408)दया ह,ै क(cid:7409) दशा म,(cid:7286) (cid:7408)कसी आि(cid:7021)त समूह के
अव(cid:6979)यण के सबं धं म (cid:7286) धारा 32 क(cid:7409) उपधारा (1) के खडं (ii) के अधीन चालीस (cid:7079)ितशत स ेअिधक अिधकृत भ(cid:7004)त ा ऐस े आि(cid:7021)त
समूह के अविलिखत मू(cid:7016) य पर चालीस (cid:7079)ितशत सीिमत (cid:7408)कया जाएगा ।”
(ख) नए प(cid:7407)रिश(cid:7020) ट म,(cid:7286) सारणी म,(cid:7286) दसू रे (cid:7021) तभं म(cid:7286) 1 अ(cid:7079)लै , 2017 से (cid:7079)भावी “‘50’, ‘60’, ’80’, ‘100’ अंक(cid:7298) के (cid:7021)थ ान पर, जहा ं
कह(cid:7277) भी वे आत ेह,(cid:7289) अकं “40 ” रखा जाएगा ।
[अिधसूचना स.ं 103/2016/फा.सं.370142/29/2016-टीपीएल]
िपतांबर दास, िनदशे क (कर नीित और िवधान)
5184 GI/2016 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(cid:7407)ट(cid:7009) पण : मूल िनयम भारत के राजप(cid:7074), भाग II, खंड 3, उपखंड (ii) म(cid:7286) अिधसूचना सं(cid:6990)य ांक का.आ. 969(अ), तारीख
26 माच,(cid:6981) 1962 (cid:7367)ारा (cid:7079)कािशत (cid:7408)कए गए थे और आय-कर (अ(cid:7350)ाईसवा ं संशोधन) िनयम, 2016, अिधसूचना
स(cid:6990)ं यांक सा.का.िन. 982(अ) तारीख 17 अ(cid:6989)टूबर, 2016 (cid:7367)ारा उनका अिं तम सशं ोधन (cid:7408)कया गया ।
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)(cid:32)
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.
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