CBDT Notifies IT Rule 8AA(3): Holding Period of Capital Asset declared in IDS 2016 

CBDT Notifies new Income Tax Rule 8AA(3) in relation to determination of Holding Period of Capital Asset declared under IDS 2016

CBDT has notified ‘Income-tax (34th Amendment) Rules, 2016 and has inserted new IT Rule 8AA(3) for determination of holding period of a capital asset declared under IDS 2016 (i.e. to be taken from date of acquisition as per registration deed or 1 June 2016), as under:

CBDT Notification No. 108 /2016 Income Tax dt. 29 Nov. 2016 F. No.142/01/2016-TPL

G.S.R. 1100(E).—In exercise of the powers conferred by clause (ii) of Explanation 1 to clause (42A) of section 2, read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (34th Amendment) Rules, 2016. (2) They shall come into force from the 1st day of June, 2016.

2. In the Income-tax Rules, 1962, in rule 8AA, after sub-rule (2), the following sub-rule shall be inserted, namely:-

(3) In the case of a capital asset, declared under the Income Declaration Scheme, 2016,-

(i) being an immovable property, the period for which such property is held shall be reckoned from the date on which such property is acquired if the date of acquisition is evidenced by a deed registered with any authority of a State Government; and

(ii) in any other case, the period for which such asset is held shall be reckoned from the 1st day of June, 2016.

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