Notification No. 108 /2016 — Income tax 34th amendment…

What this is

Notification No. 108 /2016/F. No.142/01/2016-TPL / G.S.R. 1100(E) was published on 29 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.

What it does

The Income-tax (34th Amendment) Rules, 2016, made under clause (ii) of Explanation 1 to clause (42A) of section 2 read with section 295 of the Income-tax Act, 1961. In rule 8AA, a new sub-rule (3) is inserted after sub-rule (2), fixing how the period of holding is reckoned for a capital asset declared under the Income Declaration Scheme, 2016. Where the asset is immovable property, the period of holding is reckoned from the date on which the property was acquired, if the date of acquisition is evidenced by a deed registered with any authority of a State Government. In any other case, the period of holding is reckoned from 1 June 2016.

Who it reaches

declarants under the Income Declaration Scheme, 2016 who later transfer a declared asset
holders of declared immovable property with a registered acquisition deed
assessing officers deciding whether the gain is long-term or short-term

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.2	s.2, s.346, s.355
s.295	s.533

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 29th November, 2016
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.".
[Notification No. 108 /2016/F. No.142/01/2016-TPL]
Dr. T. S. MAPWAL, Under Secy.
Note: The principal rules were published vide Notification S.O. 969 (E), dated the 26th March, 1962 and last
amended vide Notification S.O. 3573(E), dated the 28th November, 2016.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.

What it changes

The rule numbers are the 1962 Rules’ own, as the notification names them. The right-hand column is the department’s own mapping into the Income-tax Rules, 2026, which renumbered nearly everything.

Rule of the 1962 Rules	Now, in the 2026 Rules
Rule 8AA	rule 6

From when

1 June 2016, retrospectively.

What to watch

The rules come into force from 1 June 2016 and are therefore retrospective, having been notified on 29 November 2016.
For immovable property the earlier acquisition date counts only if it is evidenced by a deed registered with a State Government authority; without such a deed the asset falls into the residuary limb.
For every other declared asset, and for immovable property without a registered deed, the holding period starts afresh on 1 June 2016, so a transfer soon after will yield a short-term gain.
The principal rules were last amended by S.O. 3573(E) dated 28 November 2016.

Where you meet it

In the capital gains computation when an asset declared under the Income Declaration Scheme, 2016 is sold, and in the scrutiny of whether the gain is long-term.

An example

Ours, not the Board’s: a worked case built from the rule the instrument sets, to show how it falls out.

Jewellery declared under the Income Declaration Scheme, 2016 and sold in the financial year 2017-18 is treated as held only from 1 June 2016, so the gain is short-term. Immovable property declared under the Scheme whose acquisition in an earlier year is evidenced by a deed registered with a State Government authority is treated as held from that earlier date of acquisition.

What it names

Rules it names. Rule 8AA 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.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Notification No. 89/2026-CBDT [F. No. 164/1/2026-ITA-1] / SO 3936(E) — Ministry of Finance 17 July 2026
Notification No. 75/2026 [F. No. 275/18/2026-IT(B)] / SO 3610(E) : TDS Exemption on Ship Lease Payments to IFSC Units — 4 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 3 July 2026
Notification No. 74/2026 [F. No. 275/16/2026-IT(B)] / SO 3609(E) : TDS Exemption on Aircraft Lease Payments to IFSC Units — 4 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 3 July 2026
Notification No. 65/2025 [F. No. 300196/4/2019-ITA-I] / S.O. 2739(E) — Ministry of Finance 19 June 2025
Notification No. 56 /2025 [F.No.300164/4/2024-ITA-1] / SO 2576(E) — 2 the Gazette of INDIA : Extraordinary [Part Ii—sec. 3(ii)] 12 June 2025
Notification No. 52/2025 [F. No. 300164/5/2024-ITA-1] / SO 2447(E) — Ministry of Finance 30 May 2025

← Notification No. 111/2016/F. No.196/23/2015-ITA-I / S.O. 3607(E) · Notification No. 107/2016/ F.No. 370142/28/2016-TPL / S.O. 3573(E) →

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.