The Ministry of Finance on 10th September 2021 has published the Income-tax (28th Amendment) Rules, 2021 to further amend the Income-tax Rules, 1962 which shall come into force from 1st day of April 2021 and shall be applicable for the assessment year 2022-23 and subsequent assessment years.
Through this amendment, a new clause 4 has been inserted under rule 11UAC which prescribes the class of person for the purpose of clause (XI) of the proviso to clause (x) of sub-section (2) of section 56.
Section 56(2) (X) notifies the tax on sum/property received without consideration.
As per new rules 111UAC(4) The provisions of clause (x) of sub-section (2) of section 56 shall not apply to any movable property, being equity shares, of the public sector company, received by a person from the Central Government or any State Government under strategic disinvestment.
