Amendment of section 111A
33. In section 111A of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2015,––
(A) after the words “unit of an equity oriented fund”, the words “or a unit of a business trust” shall be inserted;
(B) after the proviso, the following proviso shall be inserted, namely:––
“Provided further that the provisions of this sub-section shall not apply in respect of any income arising from transfer of units of a business trust which were acquired by the assessee in consideration of a transfer as referred to in clause (xvii) of section 47.”.
Notes on Clauses:
Clause 33 of the Bill seeks to amend section 111A of the Income-tax Act relating to tax on short-term capital gains in certain cases.
The provisions of sub-section (1) of section 111A provide for the levy of tax at concessional rate of fifteen per cent. in certain cases.
It is proposed to amend the said sub-section so as to provide that the concessional rate of tax shall apply to the transfer of a unit of a business trust as they apply in case of a unit of an equity oriented fund. It is further proposed that the provisions of this sub-section shall not apply in respect of any income arising from transfer of units of a business trust which were acquired by the assessee in consideration of a transfer referred to in clause (xvii) of section 47.
This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years.
