CBDT Extends Scope of Non-applicability of Sec. 56(2)(x) to Strategic Disinvestment
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- By Chetan Kulasri
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- Last Updated on 2 June, 2023
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Notification no. 35/2023, dated 31-05-2023
The Ministry of Finance issued a notification amending Rule 11UAC to widen the scope of non-applicability of Section 56(2)(x)to the strategic disinvestment. Previously, the Rule provided exemption from Section 56(2)(x) provisions only if the equity shares of a public sector company are received under strategic disinvestment.
The exemption coverage has now been expanded to the receipt of equity shares of a company. Additionally, equity shares received from a public sector company also come under the ambit of exemption.
The amended Rule is applicable retrospectively with effect from 1st April 2023 and accordingly shall apply for the Assessment year 2023-24 and subsequent years.
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