The Central Board of Direct Taxes (CBDT) vide
Notification1 dated 19 December 2023 has sought to amend
the Safe Harbour rules, specifically Rule 10TA and 10TD of the
Income-tax Rules, 1962 (the Rules). These rules may be called the
Income-tax (29th Amendment) Rules, 2023, and shall be deemed to
have come into force from 1 April 2024.
Restriction of which loss or income should be excluded from
operating expenses or income
The definition of 'operating expenses'2 under
Safe Harbour has been amended, specifically, for the exclusion of
'loss on the transfer of assets or investment' on assets
where depreciation is included in the operating expenses.
The definition of 'operating income'3 under
Safe Harbour has been amended, specifically, for the exclusion of
'income on transfer of assets or investment' on assets
where depreciation is included in the operating expenses.
