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Central Board of Direct Taxes Amends Rule 11AA of Income Tax Rules
- Central Board of Direct Taxes has issued a notification proposing change to Rule 11UA to implement the changes brought by the Finance Act 2023, The change expand scope of section 56(2)(viib) to include share application premium/money from all individuals, regardless of residential status
- CBD has issued Notification No. 34/2023-Income Tax, dated May 30, 2023 & introduced amendments to rule 11AA of Income-tax Rules, 1962. New Rule 11AA(7) states that for applications made under clause (iv) of the first proviso to section 80G(5) of the Income-tax Act, 1961, provisional approval will be effective from the assessment year relevant to the previous year in which the application is made.Amended rules, known as Income-tax (7th Amendment) Rules, 2023, will come into force upon their publication in the Official Gazette i.e. 30th May, 2023. Central Board of Direct Taxes notification introduces 5 new valuation methods for computing Fair Market Value (FMV) of unquoted equity shares
- Central Board of Direct Taxes Notification can be accessed at: https://egazette.nic.in/WriteReadData/2023/246168.pdf
