Amended notification of the Income-tax Amendment (19th Amendment) Rules, 2021 (dated – 07.07.2021) – CBDT
View PdfAmended notification of the Income-tax Amendment (19th Amendment) Rules, 2021 (dated – 07.07.2021) – CBDT
- In the Income-tax Rules, 1962, after rule 8AB, the following rules shall be inserted, namely:—
- “8AC. Computation of short term capital gains and written down value under section 50 wheredepreciation on goodwill has been obtained.
- For the purposes of proviso to section 50, the written down value of the block of the asset and short term capitalgains, if any, for the previous year relevant to the assessment year commencing on the 1st day of April, 2021shall be determined in accordance with this rule.
- Where the goodwill of the business or profession was the only asset or one of the assets in the block of asset“intangible” for which depreciation was obtained by the assessee in the assessment year beginning on the 1st dayof April, 2020, the written down value of this block of asset for the previous year relevant to the assessment yearcommencing on the 1st day of April, 2021 shall be determined in accordance with the provisions of item (ii) ofsub-clause (c) of clause (6) of section 43.
- Where the reduction under sub-item (B) of item (ii) of sub-clause (c) of clause (6) of section 43, for the previousyear relevant to the assessment year commencing on the 1st day of April, 2021, exceeds the aggregate of thefollowing amounts, namely:-
- the written down value of the block of assets at the beginning of the previous year relevant to theassessment year commencing on the 1st day of April, 2021 without giving effect to reduction under
- sub-item (B) of item (ii) of sub-clause (c) of clause (6) of section 43; and(ii) the actual cost of any asset falling within the block of assets “intangible”, other than goodwill, acquiredduring the previous year relevant to the assessment year commencing on the 1st day of April, 2021,such excess shall be deemed to be the capital gains arising from the transfer of short-term capital assets.
- Without prejudice to the provisions of sub-rule (3) and section 55, where the goodwill of the business or
- profession was the only asset in the block of asset “intangible” for which depreciation was obtained by the
- assessee in the assessment year beginning on the 1st day of April, 2020, and the block of asset ceases to exist onaccount of there being no further asset acquired during the previous year relevant to the assessment yearcommencing on the 1st day of April, 2021 in that block, there will not be any capital gains or loss on account ofthe block of asset having ceased to exist.
- The capital gains or loss on transfer of goodwill, during the previous year’s relevant to the assessment year2021-22 or subsequent assessment years, shall be determined in accordance with the provisions of section 48,section 49 and clause (a) of sub-section (2) of section 55.
