Amendment of section 95.
25. Section 95 of the Income-tax Act shall be numbered as sub-section (1) thereof, and after sub-section (1) as so numbered and before the Explanation, the following sub-section shall be inserted, namely:-
“(2) This Chapter shall apply in respect of any assessment year beginning on or after the 1st day of April, 2018.”.
Notes on Clauses:
Clause 25 of the Bill seeks to amend section 95 of the Income tax relating to applicability of General Anti Avoidance Rule.
The said section provides that an arrangement entered into by an assessee may be declared to be an impermissible avoidance arrangement and the consequence in relation to tax arising therefrom may be determined subject to the provisions of Chapter X-A.
It is proposed to renumber the said section as sub-section (1).
It is also proposed to insert a new sub-section (2) so as to provide that the provisions of Chapter X-A shall apply in respect of any assessment year beginning on or after the 1st day of April, 2018.
This amendment will take effect from 1st April, 2015.