The Central Board of Direct Taxes vide notification dated 31st May, 2023 has issued the Income-tax (Eighth Amendment) Rules. The amendment has clarified that the following income need not be reported under the title Income from other sources while filing Annual Income Tax return:
“Any movable property, being equity shares, of a public sector company or a company, received by a person from a public sector company or the Central Government or any State Government under strategic disinvestment”
Strategic disinvestment in this clause shall mean sale of shareholding by the Central Government or any State Government in a public sector company which results in reduction of its shareholding below fifty-one per cent along with transfer of control to the buyer.
The amendment shall come into force from the 1st day of April, 2023 and shall be applicable for the assessment year 2023-2024 and subsequent assessment years. The amendment shall have no retrospective effect.
