Amendment of Chapter VII of Finance (No. 2) Act, 2004.
114. In Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004), after section 113, the following section shall be inserted with effect from the 1st day of October, 2009, namely:—
Chapter VII not to apply in certain cases.
"113A. Notwithstanding anything contained in this Chapter, the provisions of this Chapter shall not apply to taxable securities transactions entered into by any person for, or on behalf of, the New Pension System Trust referred to in clause (44) of section 10 of the Income-tax Act, 1961 (43 of 1961)".
Notes on Clauses:
Clause 114 of the Bill seeks to insert new section 113A in Chapter VII of the Finance (No. 2) Act, 2004 relating to Securities Transaction Tax.
The existing provisions contained in the said Chapter provides for levy of a tax on taxable securities transactions entered in a recognised stock exchange payable by the purchaser from the date on which this Chapter comes into force by way of notification in the Official Gazette by the Central Government.
It is proposed to insert a new section in the said Chapter so as to provide that the provisions of the said Chapter shall, notwithstanding anything contained in this Chapter, not apply to "taxable securities transactions" entered into by any person for, or on behalf of, the New Pension System Trust.
This amendment will take effect from 1st October, 2009
