Income-tax (15th Amendment) Rules, 2020

The Central Board of Direct Taxes on 30th June 2020 has issued the Income-tax (15th Amendment) Rules, 2020 to add Rule 11UAD which provides for Prescribed class of persons for the purpose of Section 50CA. The Section 50CA provides that consideration received for transfer of an unquoted share computed in prescribed manner shall be full consideration even if it is less that fair market value.

The new Rule provides that the provisions of Section 50CA shall not apply to transfer of any movable property, being unquoted shares, of a company and its subsidiary and the subsidiary of such subsidiary by an assessee, where:

  • The Tribunal, on an application moved by the Central Government under section 241 of the Companies Act, 2013, has suspended the Board of Directors of such company and has appointed new directors nominated by the Central Government under section 242 of the said Act; and
  • Share of such company and its subsidiary and the subsidiary of such subsidiary has been transferred pursuant to a resolution plan approved by the Tribunal under section 242 of the Companies Act, 2013 after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner.

Click here to read the Amendment.

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