Amendment of Finance (No. 2) Act, 2004
109. In the Finance (No. 2) Act, 2004, [23 of 2004]in Chapter VII, with effect from the 1st day of October, 2014,—
(A) in section 97,—
(i) after clause (3), the following clause shall be inserted, namely:—
‘(3A) “business trust” shall have the meaning assigned to it in clause (13A) of section 2 of the Income-tax Act, 1961;’;
(ii) in clause (13), in sub-clause (a), after the words “unit of an equity oriented fund”, the words
“or a unit of a business trust” shall be inserted;
(B) in section 98, in the Table, in column (2),—
(I) in the entry at Sl. No. 1,—
(i) after the words “equity share in a company”, the words “or a unit of a business trust” shall be inserted;
(ii) in clause (b), after the word “share” at both the places where they occur, the words “or unit” shall be inserted;
(II) in the entry at Sl.No. 2,—
(i) after the words “equity share in a company”, the words “or a unit of a business trust” shall be inserted;
(ii) in clause (b), after the word “share” at both the places where they occur, the words “or unit” shall be inserted;
(III) in the entry at Sl.No. 3, after the words “unit of an equity oriented fund”, the words “or a unit of a business trust” shall be inserted.
Notes on Clauses:
Clause 109 of the Bill seeks to amend Chapter VII of the Finance (No. 2) Act, 2004 which deals with levy of securities transaction tax on transaction of equity shares of a company on the stock exchange.
It is proposed to amend the said Chapter in order to provide leves transaction tax on transactions in units of a business trust on the same line as are applicable to transactions in equity shares in a company.
This amendment will take effect from 1st October, 2014.
