Amendment of section 48
19. In section 48 of the Income-tax Act, in the Explanation, in clause (v), for the words “Consumer Price Index for urban non-manual employees”, the words and brackets “Consumer Price Index (Urban)” shall be substituted with effect from the 1st day of April, 2016.
Notes on Clauses:
Clause 19 of the Bill seeks to amend section 48 of the Income-tax Act relating to mode of computation.
The existing provisions contained in section 48 prescribe the mode of computation of income chargeable under the head capital gains. Clause (v) of the Explanation to the said section defines the term “Cost Inflation Index” in relation to the previous year, means Index as may be prescribed having regard to seventy- five per cent. of average rise in the Consumer Price Index for urban non-manual employees for the immediately preceding previous year to such previous year.
It is proposed to amend the said clause so as to provide that “Cost Inflation Index” in relation to the previous year, means Index as may be prescribed having regard to seventy-five per cent. of average rise in the Consumer Price Index (Urban) for the immediately preceding previous year to such previous year.
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.
