631E- : Notification: S.O.631(E) Date of Issue: 2/7/2001

Notification: S.O.631(E) Date of Issue: 2/7/2001

Notification: S.O.631(E)

Section(s) Referred: s. 295

Statute: INCOME TAX

Date of Issue: 2/7/2001

Notification No. S.O. 631(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 (Eighth Amendment) Rules, 2001.

(2) They shall come into force on the 1st day of April, 2002, and shall, accordingly, apply to the assessment year 2002-2003 and subsequent years.

2. In the Income-tax Rules, 1962, for rule 4, the following shall be substituted, namely:--

"4. Unrealised rent.--For the purposes of the Explanation below sub-section (1) of section 23, the amount of rent which the owner cannot realise shall be equal to the amount of rent payable but not paid by a tenant of the assessee and so proved to be lost and irrecoverable where,--

(a) the tenancy is bona fide

(b) the defaulting tenant has vacated, or steps have been taken to compel him to vacate the property;

(d) the assessee has taken all reasonable steps to institute legal proceedings for the recovery of the unpaid rent or satisfies the Assessing Officer that legal proceedings would be useless.".

[Notification No. 198/2001/F. No. 142/38/2001-TPL]