Central Board of Direct Taxes (CBDT) has issued Notification No. 82/2020 to further amend Income Tax Rules, 1961 which shall come into force on the date of their publication in the Official Gazette.
Key points of the amendments are:
1. The proviso in Sub Rule 1 of Rule 5 of Income tax Rules,1961 relating to Depreciation in case of profits and gains of business or profession has been substituted to provide that depreciation shall be restricted to forty per cent on the written down value of such block of assets in respect of depreciation of any block of assets which was entitled to more than forty per cent in case of the Domestic companies who has exercised option under Section 115BAA – “Tax on income of certain domestic companies” and Section 115BAB- “Tax on income of new manufacturing domestic companies” of the Act and Section 115BA – “Tax on income of certain manufacturing domestic companies”
2. It has further been provided that in cases of Tax on income of certain domestic companies under Section 115BAA if the following conditions are satisfied namely:
a) Option is exercised to pay tax at concessional rate for a previous year relevant to the assessment year beginning on the 1st day of April, 2020;
b) 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
c) 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.
3. In Appendix II of the Principal Rules, Form No 3CD i.e. Statement of particulars required to be furnished under Tax Audit has been substituted as follows –
a) In Part A – After serial number 8 and the entries relating thereto, the following shall be inserted, namely: – “Whether the assessee has opted for taxation under section 115BA/115BAA/115BAB”;
b) In Part B in serial number 18 , after clause (c) the following clauses has been inserted-
(ca) Adjustment made to the written down value under section 115BAA (for Assessment Year 2020-21 only) and
(cb) Adjusted written down value”.
4. Form No.3CEB and Form ITR-6 has been substituted so as to make the changes in the forms relating to reporting of information about concessional tax regime opted by the person.
For further details and substituted Forms please refer the attached document
Source: Central Board of Direct Taxes (CBDT)
