The Board issued the notification which sought to amend the Income-tax Rules, 1962, which came to be known as the Income-tax (22nd Amendment) Rules, 2020.
In the rule 5 (1) of the Income-tax Rules, 1962 the proviso was substituted, which reads as 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 under 3 cases.
Firstly, a domestic company which has exercised options under sub-section (4) of section 115BA, or under sub-section (5) of section 115BAA, or under sub-section (7) of section 115BAB.
Secondly, an individual or Hindu undivided family which has exercised option under sub-section (5) of section 115BAC.
Thirdly, a co-operative society resident in India which has exercised options under sub-section (5) of section 115BAD.
The board further seeks to insert Rule 21AG and Rule 21AH which deals with the Exercise of option under sub-section (5) of section 115BAC and Exercise of option under sub-section (5) of section 115BAD respectively.
The notification seeks to insert Form No.10-IE in respect of Application for exercise/ withdrawal of option under clause (i) of sub-section (5) of section 115BAC and Form No. 10-IF which pertains to Application for exercise of option under sub-section (5) of section 115BAD of the Income-tax Act, 1961
Therefore, it is advised that if the Tax Audit report is already filed by the assessee till yesterday then it need not be revised in view of above changes.Subscribe Taxscan AdFree to view the Judgment