Ministry of Finance
Notification No. 103/2016 [F.No.370142/29/2016 -TPL] / SO 3399(E) was published on 7 November 2016. Its subject is Ministry of Finance.
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.
Made under section 32, section 115BA and section 295 of the Income-tax Act, 1961, the Income-tax (29th Amendment) Rules, 2016 do two things. A proviso is inserted after sub-rule (1) of rule 5 of the Income-tax Rules, 1962, with effect from 1 April 2016, providing that in the case of a domestic company which has exercised the option under sub-section (4) of section 115BA, the allowance under clause (ii) of sub-section (1) of section 32 for depreciation of any block of assets entitled to more than forty per cent. shall be restricted to forty per cent. of the written down value of that block. In the Table in the New Appendix I, in the second column, the figures 50, 60, 80 and 100 are substituted by the figure 40 wherever they occur, with effect from 1 April 2017.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 7th November, 2016
INCOME-TAX
S.O. 3399(E).—In exercise of the powers conferred by section 32, section 115BA and 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) These rules may be called the Income-tax (29th Amendment) Rules, 2016.
(2) In the Income-tax Rules, 1962 ( here after referred to as the principal rules),-
(a) in rule 5, after sub-rule (1), the following proviso shall be inserted with effect from 1st day of April, 2016, namely:-
"Provided that in case of a domestic company which has exercised option under sub-section (4) of section 115BA, the
allowance under clause (ii) of sub-section (1) of section 32 in respect of depreciation of any block of assets entitled to
more than forty per cent. shall be restricted to forty per cent. on the written down value of such block of assets."
(b) in the New Appendix I, in the Table, in the second column, for the figures " '50', '60', '80', '100' ", wherever they
occur, the figure "40" shall be substituted with effect from the 1st day of April, 2017.
[Notification No. 103/2016/ F.No.370142/29/2016 -TPL]
PITAMBAR DAS, Director (Tax Policy And Legislation)Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide
notification number S.O. 969 (E), dated the 26th March, 1962 and last amended by the Income-tax (28th
Amendment) Rules, 2016, vide notification number G.S.R No.982(E),dated the 17.10.2016.
| Rule of the 1962 Rules | Now, in the 2026 Rules |
|---|---|
| Rule 5 | rule 25 |
1 April 2016 for the proviso to rule 5; 1 April 2017 for the substitution of the figure 40 in the Table in the New Appendix I.
In the depreciation schedule of the return and the tax audit report, and in any assessment of a company that has opted into section 115BA where the rate claimed on a block exceeds forty per cent.
A domestic company that has exercised the option under section 115BA(4) holds a block of assets on which the Table allowed sixty per cent. From 1 April 2016 it may claim depreciation of only forty per cent. on the written down value of that block; from 1 April 2017 the same forty per cent. applies to every assessee, the Table itself having been rewritten.
Rules it names. Rule 5 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.
← Notification No. 104/2016 [F.No.370142/32/2016 -TPL] / SO 1068(E) · Notification No.102/2016 [F. No. 506/69/81-FTD-I] / SO 3346(E) →
Source: the Income Tax Department’s own published text — its page for this instrument.