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Statutory Provisions

Home Acts & Rules Bill Bills FINANCE BILL, 2013 Chapters List Chapter III - Part I DIRECT TAXES - Income-tax This

Clause 22 - Amendment of section 90A - FINANCE BILL, 2013

FINANCE BILL, 2013
Chapter III - Part I
DIRECT TAXES - Income-tax
  • Contents

Amendment of section 90A

     22. In section 90A of the Income-tax Act,—

          (a) sub-section (2A) shall be omitted;

          (b) after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of April, 2016, namely:—

               “(2A) Notwithstanding anything contained in sub-section (2), the provisions of Chapter X-A of the Act shall apply to the assessee even if such provisions are not beneficial to him.”;

          (c) after sub-section (4) and before Explanation 1, the following sub-section shall be inserted, namely:—

               “(5) The certificate of being a resident in a specified territory outside India referred to in sub-section (4), shall be necessary but not a sufficient condition for claiming any relief under the agreement referred to therein.”.

 



 

Notes on Clauses:

Clause 22 of the Bill seeks to amend section 90A of the Income-tax Act relating to adoption by Central Government of agreement between specified associations for double taxation relief.

    The existing provisions of the aforesaid section 90A provides that any specified association in India may enter into an agreement with any specified association in a specified territory outside India and the Central Government may, by notification in the Official Gazette, make necessary provisions for adopting and implementing such agreement for grant of double taxation relief, for avoidance of double taxation or exchange of information for the prevention of evasion or avoidance of income-tax or for recovery of income-tax.

    It is proposed to omit sub-section (2A) of the said section. This amendment will take effect retrospectively from 1st April, 2013.

    It is further proposed to insert a new sub-section (2A) in the aforesaid section 90A so as to provide that the provisions of newly inserted Chapter X-A shall apply even if such provisions are not beneficial to the assessee.

    This amendment will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent assessment years.

    It is also proposed to insert a new sub-section (5) in the aforesaid section 90A so as to provide that the certificate of being a resident in a specified territory outside India referred to in subsection (4), shall be necessary but not a sufficient condition for claiming any relief under the agreement referred to therein.

    This amendment will take effect retrospectively from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-14 and subsequent assessment years.

 
 
 
 

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