The Central Board of Direct Taxes vide its notification dated 1st October 2020 has published the Income-tax (22nd Amendment) Rules, 2020 which has notified changes in Form No 3CEB and ITR6 and has amended rule 5 of Income Tax Rules, 1962.
The Amendment is brought under Rule 5(1) of the Income-tax Rules, 1962 in which the proviso is 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 and a co-operative society resident in India which has exercised options under sub-section (5) of section 115BAD.
further, a new form 10-IE has been inserted which pertains to application for exercise/withdrawal of option under clause (i) of sub-section (5) of Section 115BAC of the Income-tax Act, 1961 and form 10-IF deal with application for exercise of option under sub-section (5) of Section 115BAD of the Income-tax Act, 1961.
