The Ministry of Finance has issued the Income tax (28th Amendment) Rules, 2021 on September 10, 2021, to further amend the Income-tax Rules, 1962. The Income-tax (28th Amendment) Rules, 2021 shall come into force from April 1, 2021 and shall be applicable for the assessment year 2022-23 and subsequent assessment years.
The Amendment has inserted a new clause 4 under Rule 11UAC which prescribes the class of person for the purpose of clause (xi) of the proviso to clause (x) of sub-section (2) of section 56. Section 56(2)(x) prescribes the tax on sum or property received without consideration.
As per new Rule 11UAC(4), the provisions of section 56(2)(x) shall not apply to any movable property, being equity shares, of the public sector company, received by a person from the Central Government or any State Government under strategic disinvestment.
*Tanvi Singh, Editorial Assistant has reported this brief.