Amendment of section 115JAA.
44. In section 115JAA of the Income-tax Act, in sub-section (3A), for the words "seventh assessment year", the words "tenth assessment year" shall be substituted with effect from the 1st day of April, 2010.
Notes on Clauses:
Clause 44 of the Bill seeks to amend section 115JAA of the Act relating to tax credit in respect of tax paid on deemed income relating to certain companies.
Under the existing provisions contained in sub-section (3A) of said section, the amount of tax credit determined under sub-section (2A) shall be carried forward and set-off in accordance with the provisions of sub-sections (4) and (5) of the aforesaid section but such carry forward shall not be allowed beyond the seventh assessment year immediately succeeding the assessment year in which tax credit becomes allowable under sub-section (1A) of that section.
It is proposed to amend sub-section (3A) of said section 115JAA to provide that the amount of tax credit determined under subsection (2A) shall not be allowed to carry forward beyond the tenth assessment year (instead of seventh assessment year) immediately succeeding the assessment year in which tax credit becomes allowable under sub-section (1A).
This amendment will take effect from 1st April, 2010 and will, accordingly, apply in relation to the assessment year 2010-11 and subsequent years.
