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.
AO not justified in rejecting registered valuer’s report without making a reference to the DVO - ITAT In a recent…
FCRA specifies list of purposes to be selected for which registration is applied. The Ministry of Home Affairs has notified…
Assessee was not liable to withhold tax at source u/s 40(a)(i) on cost-to-cost reimbursement made to parent company In a…
Temporarily blocking public access to Telegram App under section 69A of IT Act 2000 is not disproportionate - Delhi HC…
High Court explains the meaning of term ‘enterprise’ appearing in section 80IA to means a project or an undertaking owned…
Addition deleted as assessee was only a carrier of cash and the real owner had come forward owning the cash…
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