Notes - Miscellaneous - FINANCE (No. 2) BILL, 2009

Miscellaneous

Clause 113 of the Bill seeks to amend section 13 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002.

The existing provisions contained in sub-section (1) of section 13 of the said Act provide that notwithstanding anything contained in the Income-tax Act, 1961, or any other enactment for the time being in force relating to tax or income, profits or gains, no incometax or any other tax shall be payable by the administrator in relation to the specified undertaking up to 31^st March, 2009 in respect of any income, profit or gains derived, or any amount received in relation to the specified undertaking.

It is proposed to amend sub-section (1) of the said section so as to extend the exemption from the period beginning on the 1^st April, 2009 to 31^st March, 2014.

This amendment will take effect retrospectively from 1st April, 2009.

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 1^st October, 2009.  Clause 115 of the Bill seeks to insert a new section 121A to the Finance Act, 2008 which relates to provisions of Chapter VII not to apply to commodities transaction tax.

The existing Chapter VII provides for provisions relating to commodities transactions tax. It is proposed to insert new section 121A so as to provide that the provisions of Chapter VII relating to taxable commodities transaction entered on or after the 1^st April, 2009 shall not apply.

The proposed amendment will take effect retrospectively from 1st April, 2009.

Clause116 of the Bill seeks to repeal the Finance Act, 2009 (26 of 2009).