Rule 8D Amendment CBDT Notification 43/2016.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
Notification No. 43/2016
New Delhi, the 2nd June, 2016
S.O. 1949(E)– In exercise of the powers conferred by section 295 read with subsection (2) of section 14A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-
1. (1) These rules may be called the Income–tax (14th Amendment) Rules, 2016.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules 1962, in rule 8D,-
(I) for sub-rule (2), the following sub-rule shall be substituted, namely:-
“(2) The expenditure in relation to income which does not form part of the total income shall be the aggregate of following amounts, namely:—
(i) the amount of expenditure directly relating to income which does not form part of total income; and
(ii) an amount equal to one per cent of the annual average of the monthly averages of the opening and closing balances of the value of investment, income from which does not or shall not form part of total income:
Provided that the amount referred to in clause (i) and clause (ii) shall not exceed the total expenditure claimed by the assessee.”;
(II) sub-rule (3) shall be omitted.
[F.No. 370142/7/2016-TPL]
(Dr. T.S. Mapwal)
Under Secretary to Government of India
Note:- The principal rules were published vide Notification S.O. 969 (E), dated 26th March, 1962 and last amended by Income-tax (13th Amendment) Rules, 2016 vide Notification S.O.1923(E), dated 31.05.2016.
Empanelment to act as ICAI exam observers for January 2027 CA Examination. Last date to apply is 20.11.2026 Empanelment of…
No arrest under GST- Major decision taken in 57th Meeting of the GST Council on 8th October 2026 PRESS RELEASE…
A subsequent Apex Court ruling on the substantive issue cannot retrospectively make an act done in compliance of a binding…
Interest payment on mobilisation advance to NHAI not liable for deduction of tax at source u/s 194A - ITAT Interest…
Typographical error in turnover declared in ITR was not as a mistake apparent from the record u/s 154 when AO…
Ground taken by assessee that he was not aware of the order cannot be brushed aside so lightly in absence…
View Comments
it SHOULD NOT EXCEED THE EXPENDITURE CLAIMED WILL LEAD TO ALL SORTS OF CONFUSION AGAIN INSTEAD IT SHOULD HAVE BEEN SHOULD NOT EXCEED THE EXEMPTION CLAIMED