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Statutory Provisions

Home Acts & Rules Bill Bills FINANCE BILL, 2011 Chapters List Chapter VI Miscellaneous This

Clause 76 - Amendment of second Schedule to Act 28 of 2005. - FINANCE BILL, 2011

FINANCE BILL, 2011
Chapter VI
Miscellaneous
  • Contents

76. In the Second Schedule to the Special Economic Zones Act, 2005,—

   (a) in paragraph (a), clause (C) shall be omitted with effect from the 1st day of June, 2011;

   (b) paragraph (h) shall be omitted with effect from the 1st day of April, 2012;

   (c) paragraph (i) shall be omitted with effect from the 1st day of June, 2011.

                                

Declaration under the Provisional Collection of Taxes Act, 1931

It is hereby declared that it is expedient in the public interest that the provisions of clauses 57(a)(i), 57(b) and 70(a)(,) of this Bill shall have immediate effect under the Provisional Collection of Taxes Act, 1931.                                                                                                                                                                                                                                                                                                                                                                              16 of 1931.

 



 

Notes on Clauses:

Clause 76 of the Bill seeks to amend the Second Schedule to the Special Economic Zones Act, 2005.

The aforesaid Schedule contains certain modifications to the provisions of the Income-tax Act, 1961 in its application of, to or in relation to, the Developer or entrepreneur for carrying on the authorised operations in a Special Economic Zone or unit.

The existing provisions contained in clause (C) of paragraph

(a) provide that the dividend referred to in section 115-O of the Income-tax Act shall not be included in the total income of the assessee, being a Developer or entrepreneur.

It is proposed to omit the aforesaid clause (C). This amendment will take effect from 1st June, 2011.

The existing provisions contained in paragraph (i) of the aforesaid Second Schedule provide that notwithstanding anything contained in section 115-O of the Income-tax Act, no tax on distributed profits shall be chargeable in respect of the total income of an undertaking or enterprise engaged in developing or developing and operating or developing, operating and maintaining a Special Economic Zone for any assessment year on any amount declared, distributed or paid by such Developer or enterprise, by way of dividends (whether interim or otherwise) on or after the 1st day of April, 2005 out of its current income either in the hands of the Developer or enterprise or the person receiving such dividend not falling under clause (23G) of section 10 of the Income-tax Act, 1961.It is also proposed to omit the aforesaid paragraph (i). This amendment will take effect from 1st June, 2011.

 
 
 
 

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