Sl No. | Text of Amendment | Clause No. |
1 | Page 1, for lines 6 and 7, substitute- "(2) Save as otherwise provided in this Act,- (a) sections 2 to 122 shall come into force on the 1st day of April, 2023; (b) sections 123 to 144B shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.". | 1 |
Page 16, after line 12, insert––
“Provided further that where the total income of a person, being a specified fund referred to in clause (c) of the Explanation to clause (4D) of section 10 of the Income-tax Act, includes any income under clause (a) of sub-section (1) of section 115AD of the Income-tax Act, the advance tax computed on that part of income shall not be increased by any surcharge;”. | 2 |
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Page 20, after line 15, insert––
“Provided also that in the case of a specified fund, referred to in clause (c) of the Explanation to clause (4D) of section 10 of the Income-tax Act, whose income is chargeable to tax under sub-section (1A) of section 115BAC and where such income includes any income under clause (a) of sub-section (1) of section 115AD of the Income-tax Act, the advance tax computed on that part of income shall not be increased by any surcharge:”. | 2 |
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4 | Page 23, after line 24, insert––
“Provided further that nothing contained in this sub-section shall apply in respect of income-tax as specified in sub-section (9), calculated on income, referred to in clause (a) of sub-section (1) of section 115AD of the Income-tax Act, of specified fund referred to in clause (c) of the Explanation to clause (4D) of section 10 of the Income-tax Act.”. | 2 |
Page 24, after line 24, insert––
‘(ca) in clause (37A), in sub-clause (ii), after the figures and letter “194B,”, the figures and letters “194BA,” shall be inserted;’. | 3 |
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Page 25, for lines 35 to 38, substitute—
“(ba) for clause (4G), the following clauses shall be substituted with effect from the 1st day of April, 2024, namely:—
‘(4G) any income received by a non-resident from,—
(i) portfolio of securities or financial products or funds, managed or administered by any portfolio manager on behalf of such non-resident; or
(ii) such activity carried out by such person, as may be notified by the Central Government in the Official Gazette, in an account maintained with an Offshore Banking Unit in any International Financial Services Centre, as referred to in sub-section (1A) of section 80LA, to the extent such income accrues or arises outside India and is not deemed to accrue or arise in India.
Explanation.—For the purposes of this clause, “portfolio manager” shall have the same meaning as assigned to it in clause (z) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Capital Market Intermediaries) Regulations, 2021, made under the International Financial Services Centres Authority Act, 2019; (4H) any income of a non-resident or a Unit of an International Financial Services Centre as referred to in sub-section (1A) of section 80LA engaged primarily in the business of leasing of an aircraft, by way of capital gains arising from the transfer of equity shares of domestic company, being a Unit of an International Financial Services Centre as referred to in sub-section (1A) of section 80LA, engaged primarily in the business of lease of an aircraft which has commenced operations on or before the 31st day of March, 2026:
Provided that the provisions of this clause shall apply for capital gains arising from the transfer of equity shares of such domestic company in a previous year relevant to an assessment year falling within the–
1. period of ten assessment years beginning with the assessment year relevant to the previous year in which the domestic company has commenced operations; or
2. period of ten assessment years beginning with the assessment year commencing on the 1st day of April, 2024, where the period referred to in clause (a) ends before the 1st day of April, 2034.
Explanation.—For the purposes of this clause, “aircraft” means an aircraft or a helicopter, or an engine of an aircraft or a helicopter, or any part thereof;’.”.
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7 | Page 30, after line 32, insert—
‘(ha) in clause (23FE), in the opening paragraph, for the word interest”, the words, brackets and figures “interest, any sum referred to in clause (xii) of sub-section (2) of section 56” shall be substituted with effect from the 1st day of April, 2024;’. | 5 |
8 | Page 30, after line 33, insert—
“(ia) for clause (26AAA), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1990, namely:— ‘(26AAA) in case of an individual, being a Sikkimese, any income which accrues or arises to him— (a) from any source in the State of Sikkim; or (b) by way of dividend or interest on securities.
Explanation.—For the purposes of this clause "Sikkimese" shall mean—
(i) an individual, whose name is recorded in the register maintained under the Sikkim Subjects Regulation, 1961 read with the Sikkim Subject Rules, 1961 (hereinafter referred to as the “Register of Sikkim Subjects”), immediately before the 26th day of April, 1975; or
(ii) an individual, whose name is included in the Register of Sikkim Subjects by virtue of the Government of India Order No. 26030/36/90-I.C.I., dated the 7th August, 1990 and Order of even number dated the 8th April, 1991; or
(iii) any other individual, whose name does not appear in the Register of Sikkim Subjects, but it is established beyond doubt that the name of such individual's father or husband or paternal grand-father or brother from the same father has been recorded in that register; or
(iv) any other individual, whose name does not appear in the Register of Sikkim Subjects but it is established that such individual was domiciled in Sikkim on or before the 26th day of April, 1975; or
(v) any other individual, who was not domiciled in Sikkim on or before the 26th day of April, 1975, but it is established beyond doubt that such individual's father or husband or paternal grand-father or brother from the same father was domiciled in Sikkim on or before the 26th day of April, 1975;
(ib) after clause (34A), the following clause shall be inserted with effect from the 1st day of April, 2024,namely:—
‘(34B) any income of a unit of any International Financial Services Centre, primarily engaged in the business of leasing of an aircraft, by way of dividends from a company being a unit of any International Financial Services Centre primarily engaged in the business of leasing of an aircraft.
Explanation.- For the purposes of this clause,“International Financial Services Centre” shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act,2005;’.”. | 5 |
9 | Page 31, line 3, for “clause shall” , substitute “clauses shall” | 5 |
10 | Page 31,after line 22, insert— ‘(46B) any income accruing or arising to,— (i) National Credit Guarantee Trustee Company Limited, being a company established and wholly financed by the Central Government for the purposes of operating credit guarantee funds established and wholly financed by the Central Government; or (ii) a credit guarantee fund established and wholly financed by the Central Government and managed by the National Credit Guarantee Trustee Company Limited; or (iii) Credit Guarantee Fund Trust for Micro and Small Enterprises, being a trust created by the Government of India and the Small Industries Development Bank of India established under sub-section (1) of section 3 of the Small Industries Development Bank of India Act, 1989;’. | 5 |
11 | Page 34, line 35, for “, clause (46)”, substitute “, clause (23EC), clause (46)”. | 7 |
12 | Page 34, line 39, for “clause (46)”, substitute “clause (23EC) or clause (46)”. | 7 |
13 | Page 35, line 3, for “clause (46)”, substitute “clause (23EC) or clause (46)”. | 7 |
14 | Page 40, after line 31, insert—
“(i) for clause (a), the following clause shall be substituted, namely:––
‘(a) “original fund” means––
(A) a fund established or incorporated or registered outside India, which collects funds from its members for investing it for their benefit and fulfils the following conditions, namely:—
(i) the fund is not a person resident in India;
(ii) the fund is a resident of a country or a specified territory with which an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A has been entered into; or is established or incorporated or registered in a country or a specified territory as may be notified by the Central Government in this behalf;
(iii) the fund and its activities are subject to applicable investor protection regulations in the country or specified territory where it is established or incorporated or is a resident; and
(iv) fulfils such other conditions as may be prescribed;
(B) an investment vehicle, in which Abu Dhabi Investment Authority is the direct or indirect sole shareholder or unit holder or beneficiary or interest holder and such investment vehicle is wholly owned and controlled, directly or indirectly, by the Abu Dhabi Investment Authority or the Government of Abu Dhabi; or
(C) a fund notified by the Central Government in the Official Gazette in this behalf subject to such conditions as may be specified;’.”.
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15 | Page 40, line 32, for “(i)”,substitute “(ia)”. | 21 |
16 | Page 41, after line 14, insert— “(c) after clause (xix), the following clause shall be inserted, namely:— ‘(xx) any transfer of a capital asset, being an interest in a joint venture, held by a public sector company, in exchange of shares of a company incorporated outside India by the Government of a foreign State, in accordance with the laws of that foreign State. Explanation.––For the purposes of this clause, “joint venture” shall mean a business entity, as may be notified by the Central Government in the Official Gazette.’.”. | 21 |
17 | Page 41, line 16, omit “proviso”. | 22 |
18 | Page 41, after line 21, insert—
“Explanation 1.—For the removal of doubt, it is hereby clarified that the cost of acquisition of a unit of a business trust shall be reduced and shall be deemed to have always been reduced by any sum received by a unit holder from the business trust with respect to such unit, which is not in the nature of income as referred to in clause (23FC) or clause (23FCA) of section 10 and which is not chargeable to tax under clause (xii) of sub-section (2) of section 56 and under sub-section (2) of section 115UA.
Explanation2.—For the purposes of Explanation 1, it is clarified that where transaction of transfer of a unit is not considered as transfer under section 47 and cost of acquisition of such unit is determined under section 49, sum received with respect to such unit before such transaction as well as after such transaction shall be reduced from the cost of acquisition under the said Explanation.”. | 22 |
19 | Page 41, for lines 22 to 25, substitute— ‘23. In section 49 of the Income-tax Act,—
1. after sub-section (2AH), the following sub-section shall be inserted, namely:— “(2AI) Where the capital asset, being shares as referred to in clause (xx) of section 47, became the property of the assessee, the cost of acquisition of such asset shall be deemed to be the cost of acquisition to it of the interest in the joint venture referred to in the said clause.”;
(b) after sub-section (9), the following sub-section shall be inserted with effect from the1st day of April, 2024, namely:–– “(10) Where the capital asset, being––”.’.
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20 | Page 42, line 3, for “Market Linked Debenture”, substitute “a unit of a Specified Mutual Fund acquired on or after the 1st day of April, 2023 or a Market Linked Debenture”. | 24 |
21 | Page 42, line 5, after “debenture”, insert “or unit”. | 24 |
22 | Page 42, line 6, after “debenture”, insert “or unit”. | 24 |
23 | Page 42, for lines 15 to 22, substitute— ‘Explanation.— For the purposes of this section— (i) “Market Linked Debenture” means a security by whatever name called, which has an underlying principal component in the form of a debt security and where the returns are linked to market returns on other underlying securities or indices and include any security classified or regulated as a market linked debenture by the Securities and Exchange Board of India; (ii) “Specified Mutual Fund” means a Mutual Fund by whatever name called, where not more than thirty five per cent. of its total proceeds is invested in the equity shares of domestic companies: Provided that the percentage of equity shareholding held in respect of the Specified Mutual Fund shall be computed with reference to the annual average of the daily closing figures:’. | 24 |
24 | Page 44, for lines 9 to 26, substitute— ‘32. In section 56 of the Income-tax Act, in sub-section (2),–– (a) in clause (viib),–– (i) with effect from the 1st day of April, 2024, the words “being a resident” shall be omitted; (ii) in the Explanation, in clause (aa), after the words and figures “Securities and Exchange Board of India Act, 1992 or regulated under the”, the words, brackets and figures “International Financial Services Centre Authority (Fund Management) Regulations, 2022 made under the” shall be inserted; (b) after clause (xi), with effect from the 1st day of April, 2024, the following clauses shall be inserted, namely:–– ‘(xii) any specified sum received by a unit holder from a business trust during the previous year, with respect to a unit held by him at any time during the previous year. Explanation.––For the purposes of this clause, “specified sum” shall be computed in accordance with the following formula, namely:–– Specified sum=A-B-C (which shall be deemed to be zero if sum of B and C is greater than A), where–– A=aggregate of sum distributed by the business trust with respect to such unit, during the previous year or during any earlier previous year or years, to such unit holder, who holds such unit on the date of distribution of sum or to any other unitholder who held such unit at any time prior to the date of such distribution, which is,- (a) not in the nature of income referred to in clause (23FC) or clause (23FCA) of section 10; and (b) not chargeable to tax under sub-section (2) of section 115UA; B=amount at which such unit was issued by the business trust; and C=amount charged to tax under this clause in any earlier previous year;’.’. | 32 |
25 | New Clause 41A Page 48, after line 27, insert— Amendment of section 80LA. ‘41A. In section 80LA of the Income-tax Act, in sub-section (1), after clause (b), the following proviso shall be inserted, namely:— “Provided that for the assessment year commencing on or after the 1st day of April, 2023, the deduction under this clause shall be one hundred percent. of such income.”.’. | New Clause 41A |
26 | Page 49, for lines 1 to 8, substitute— “Provided that where the total income of the assessee is chargeable to tax under sub-section (1A) of section 115BAC, and the total income— (a) does not exceed seven hundred thousand rupees, the assessee shall be entitled to a deduction, from the amount of income-tax (as computed before allowing for the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to one hundred per cent. of such income-tax or an amount of twenty-five thousand rupees, whichever is less; (b) exceeds seven hundred thousand rupees and the income-tax payable on such total income exceeds the amount by which the total income is in excess of seven hundred thousand rupees, the assessee shall be entitled to a deduction from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income, of an amount equal to the amount by which the income-tax payable on such total income is in excess of the amount by which the total income exceeds seven hundred thousand rupees.”. | 43 |
27 | New Clause 49A Page 49, after line 34, insert— Amend-ment of section 115A. 49A. In section 115A of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2024,— (i) in clause (a), in sub-clause (A), the following proviso shall be inserted, namely:— “Provided that the amount of income-tax calculated on the amount of income by way of dividend received from a unit in an International Financial Services Centre, as referred to in sub-section (1A) of section 80LA, shall be ten per cent. ; ”; (ii) in clause (b), in sub- clauses (A) and (B), for the word “ten”, the word “twenty” shall be substituted.’. | New Clause 49A |
28 | Page 59, line 15, for“sub-sections (1),(2) and (3)”, substitute “sub-section (1)”. | 58 |
29 | Page 59, after line 24, insert— Amendment of section 115VP. 59A. In section 115 VP of the Income-tax Act,– 1. in sub-section (2), after the proviso, the following proviso shall be inserted, namely:–– “Provided further that a Unit of an International Financial Services Centre which has availed of deduction under section 80LA may make an application within three months from the date on which such deduction ceases.”; 2. after sub-section (5), the following Explanation shall be inserted, namely:–– ‘Explanation.––For the purposes of this section “International Financial Services Centre” shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005.’.’. | New Clause 59A |
30 | Page 69,for lines 28 and 29, substitute– “81. In section 193 of the Income-tax Act, in the proviso, for clause (ix), the following clause shall be substituted, namely:– ‘(ix) any interest payable to a "business trust", as defined in clause (13A) of section 2, in respect of any securities, by a special purpose vehicle referred to in the Explanation to clause (23FC) of section 10.’.”. | 81 |
31 | Page 70, in lines 1 and 2, omit “with effect from the 1st day of July, 2023”. | 82 |
32 | Page 70, line 5, for “July”, substitute “April”. | 82 |
33 | Page 70, line 10, omit “with effect from the 1st day of July, 2023”. | 83 |
34 | Page 71, after line 13, insert— Amendment of section 194LC. ‘84A. In section 194LC of the Income-tax Act, with effect from the 1st day of July, 2023,— (i) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:–– “ Provided further that in case of income by way of interest referred to in clause (ic) of sub-section (2), the income-tax shall be deducted at the rate of nine per cent. ” ; (ii) in sub-section (2),–– (I) in clause (ib), for the word “and”,the word “or” shall be substituted; (II) after clause (ib), the following clause shall be inserted, namely:–– “(ic) in respect of money borrowed by it from a source outside India by way of issuance of any long-term bond or rupee denominated bond on or after the 1st day of July, 2023, which is listed only on a recognised stock exchange located in an International Financial Services Centre; and”.’. | New Clause 84A |
35 | Page 72, for lines 4 and 5, substitute–– ‘89. In section 206AB of the Income-tax Act,–– (i) in sub-section (1), after the figures and letter “194B,”, the figures and letters “194BA,” shall be inserted; (ii) in sub-section (3), for the proviso, the following proviso shall be substituted,’. | 89 |
36 | Page 72, afterline15, insert— ‘(i) in clause (a), the words “out of India” at both the places where they occur shall be omitted.’ | 90 |
37 | Page 72, in line 16, for “(i)”, substitute “(ia)”. | 90 |
38 | Page 72, after line 25, insert–– Amendment of section 206CC. ‘90A. In section 206CC of the Income-tax Act, in sub-section (1), the following proviso shall be inserted with effect from the 1st day of July, 2023, namely:–– “Provided that the rate of tax collection at source under this section shall not exceed twenty per cent.”.’. | New Clause 90A |
39 | Page 72, for lines 26 and 27, substitute–– ‘91. In section 206CCA of the Income-tax Act,–– (i) in sub-section (1), the following proviso shall be inserted with effect from the 1st day of July, 2023, namely:–– “Provided that the rate of tax collection at source under this section shall not exceed twenty per cent.”; (ii) in sub-section (3), for the proviso, the following proviso shall be substituted,’. | 91 |
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