Amendment of section 43
15. In section 43 of the Income-tax Act, in clause (5), in the proviso, in clause (e), for the words “recognised association”, the words and figures “recognised association, which is chargeable to commodities transaction tax under Chapter VII of the Finance Act, 2013”[ 17 of 2013] shall be substituted.
Notes on Clauses:
Clause 15 of the Bill seeks to amend section 43 of the Income- tax Act relating to definitions of certain terms relevant to income from profits and gains of business or profession.
The existing provisions contained in clause (5) of section 43 define the term speculative transaction. The proviso to the said clause (5) excludes certain category of transactions as speculative transactions. Clause (e) of the said proviso provides that eligible transaction in respect of trading in commodity derivatives carried out in a recognised association shall not be considered to be a speculative transaction.
It is proposed to amend clause (e) of the said proviso so as to provide that eligible transaction in respect of trading in commodity derivatives carried out in a recognised association which is chargeable to commodities transaction tax under Chapter VII of the Finance Act, 2013 shall not be considered to be a speculative transaction.
This amendment will take effect retrospectively from 1st April, 2014 and, will accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.
