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CBDT Notifies Bullion Depository Receipt with underlying bullion as Securities for Exemption under section 47(viiab)

cbdt-notifies-bullion-depository-receipt-with-underlying-bullion-as-securities-for-exemption-under-section-47-viiab

CBDT vide Notification No. 89/2022 dated 03.08.2022 in S.O. 3652(E) notified Bullion Depository Receipt with underlying bullion as securities for the purposes of sub-clause (d) of section 47(viiab) of the Income-tax Act, 1961 (‘Act’).


Section 47 deals with certain transactions which are not regarded as transfers for the purpose of capital gains. Section 47(viiab) exempts capital gains arising from any transfer of a capital asset, being—


(a) bond or Global Depository Receipt referred to in sub-section (1) of section 115AC; or


(b) rupee denominated bond of an Indian company; or


(c) derivative; or


(d) such other securities as may be notified by the Central Government in this behalf,


made by a non-resident on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in foreign currency.



Earlier, CBDT vide Notification No. 16/2020 dated 05.03.2020 notified the following securities for the purpose of sub-clause (d) of section 47(viiab) of the Act-

(i) foreign currency denominated bond;

(ii) unit of a Mutual Fund;

(iii) unit of a business trust;

(iv) foreign currency denominated equity share of a company;

(v) unit of Alternative Investment Fund, 


Now the Board has amended the said notification to include ‘Bullion Depository Receipt with underlying bullion’ as securities under section 47(viiab)(d).


Further, the meaning of ‘Bullion Depository Receipt with underlying bullion’ shall be the same as defined in clause (iii) of Explanation by the Department of Economic Affairs (DEA), Ministry of Finance vide its notification number S.O. 2957 (E), published in Gazette of India, Extraordinary, vide number, F.No.3/7/2020-EM dated the 31st August, 2020.


The said notification of DEA defines ‘Bullion Depository Receipt with underlying bullion’ as such bullion depository receipt listed on the International Bullion Exchange (IBE) operating inside the International Financial Services Centre and is licensed by the Authority under the International Financial Services Centres Authority Act, 2019.


Read the full text of CBDT Notification No. 89/2022 dated 03.08.2022 on Notifying Bullion Depository Receipt with underlying bullion as Securities u/s 47(viiab)(d)


MINISTRY OF FINANCE 

(Department of Revenue) 

(CENTRAL BOARD OF DIRECT TAXES) 

NOTIFICATION 

New Delhi, the 3rd August, 2022 

INCOME-TAX 


S.O. 3652 (E).—In exercise of the powers conferred by sub-clause (d) of clause (viiab) of section 47 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance, (Department of Revenue), number 16/2020, dated the 5th March, 2020, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii), vide number S.O. 986(E), dated 5th March, 2020, namely:-


In the said notification, -


(i) in the first para, after clause (v), the following clause shall be inserted, namely: -


“(vi) Bullion Depository Receipt with underlying bullion,” 


(ii) in the Explanation, after clause (b), the following clause shall be inserted, namely: -


“(c) “Bullion Depository Receipt with underlying bullion”shall have the same meaning as assigned to it in clause (iii) of Explanation by the Department of Economic Affairs, Ministry of Finance vide its notification number S.O. 2957 (E), published in Gazette of India, Extraordinary, vide number, F.No.3/7/2020-EM dated the 31st August, 2020.”


2. This notification shall come into force with effect from the date of its publication in the Official Gazette.


[Notification No. 89/2022/F. No. 370142/26/2019-TPL-Part(1)] 

UMME FARDINA ADIL, Under Secy. (TAX POLICY & LEGISLATION)


Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (ii), vide number S.O. 986(E) dated 5th March, 2020


Download CBDT Notification No. 89/2022 dated 03.08.2022 on Notifying Bullion Depository Receipt with underlying bullion as Securities u/s 47(viiab)(d)

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