Amendment of the Income-tax Rules under section 295 of the Income-tax Act, 1961
Notification No. 630E- was published on 2 July 2001. Its subject is Amendment of the Income-tax Rules under section 295 of the Income-tax Act, 1961.
This amends the Income-tax Rules. What it changes is the Rules, not the Act — and a rule can never take away what the section gives.
Under section 295 of the Income-tax Act, 1961, the Central Board of Direct Taxes makes the Income-tax (Ninth Amendment) Rules, 2001, substituting Form No. 3CEA in Appendix II to the Income-tax Rules, 1962. The substituted Form, read with rule 6H, is the report of an accountant to be furnished by an assessee under sub-section (3) of section 50B relating to the computation of capital gains on a slump sale. It calls for the particulars of the assessee effecting the slump sale, the address, location and nature of business of the undertaking or division transferred, the name, address and Permanent Account Number of the purchaser, the date of the slump sale, the consideration received, and the net worth of the undertaking, being the written down value of depreciable assets determined in accordance with sub-item (C) of item (i) of sub-clause (c) of clause (6) of section 43, plus the book value of other assets, less the liabilities relatable to the undertaking as appearing in the books. The accountant certifies that the net worth has been computed correctly in accordance with section 50B. The Notes require any change in the value of assets on account of revaluation to be ignored, the Form to be filed along with the return of income accompanied by the profit and loss account and balance sheet in accordance with section 139, and the net worth of each undertaking or division transferred to be computed separately.
| Under the 1961 Act | Now |
|---|---|
| s.295 | s.533 |
Notification No. S.O. 630(E), dated 2nd July, 2001.
In exercise of the powers conferred by 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 (Ninth Amendment) Rules, 2001.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962, in Appendix II, for Form No. 3CEA, the following shall be substituted, namely
"FORM No. 3CEA
[See rule 6H]
Report of an accountant to be furnished by an assessee under sub-section (3) of section 50B of the Income-tax Act, 1961, relating to computation of capital gains in case of slump sale
1. Particulars of the assessee effecting the slump sale:
(a) Name ...................
(b) Address ...................
(c) Permanent account number ...................
(d) Nature of business ...................
2. Details of the undertaking or division,
transferred by way of slump sale:
(a) Address/location ...................
(b) Nature of business ...................
3. Name, address and permanent account
number of the person who has purchased
the undertaking or divi sion referred to in item 2 ...................
4. Date of slump sale of the undertaking
or division refer red to in item 2 ...................
5. Amount of consideration received for slump
sale refer red to in item 2 ...................
6. Net worth of the undertaking or division
referred to in item 2:
(a) In the case of depreciable assets,
written down value of the assets of the
undertaking or division transferred by way
of slump sale, determined in accordance with
sub-item (C) of item (i) of sub clause (c) of
clause (6) of section 43 Rs ................
(b) In the case of other assets, book
value of such assets Rs ................
(c) Aggregate value pf total assets of the
undertaking or division transferred by way
of slump sale [(a) + (b)] Rs ................
(d) Value of liabilities relatable to the
undertaking or division as appearing in the
books of account Rs ................
(e) Net worth of the undertaking or
division [(c)-(d)] Rs ................
................................
Signed
**Accountant
CERTIFICATION
*I/We........................ (name) have examined the accounts and records of............................................... (name and address of the assessee) during the year ended on..............
*I/We have obtained all the information and explanations which to the best of *my/our knowledge and belief were necessary for the purposes of ascertaining and computing the net worth of the undertaking or division which has been transferred by way of slump sale.
*I/We certify that the net worth of the undertaking or division has been computed correctly in accordance with the provisions of section 50B of the Income-tax Act, 1961.
....................
Signed
**Accountant
Place...............
Date ...............
Notes:
1. *Delete whichever is not applicable.
2. **Accountant means an accountant as defined in Explanation below sub-section (2) of section 288 of the Income-tax Act.
3. Any change in the value of assets on account of revaluation of assets shall be ignored while indicating amounts in item 6.
4. This form shall be filed along with return of income duly accompanied by copies of the profit and loss account and balance-sheet or audited profit and loss account and balance-sheet in accordance with the provisions of section 139 of the Income-tax Act.
5. Indicate separately the computation of net worth of each undertaking or division transferred by way of slump sale."
[Notification No. 199/2001/F. No. 142/43/2001-TPL]
| Rule of the 1962 Rules | Now, in the 2026 Rules |
|---|---|
| Rule 6H | rule 54 |
Forms it touches. Form No. 3CEA
the date of publication in the Official Gazette.
In the return of income of the year of a slump sale, where the report in Form No. 3CEA accompanies the computation of capital gains under section 50B.
Forms it names. Form No. 3CEA
Rules it names. Rule 6H of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.
Source: the Income Tax Department’s own published text — its page for this instrument.