Amendment of section 56.
34. In section 56 of the Income-tax Act, in sub-section (2), in clause (vii), in the second proviso occurring after sub-clause (c), with effect from the 1st day of April, 2017,-
(a) in clause (g), for the word, figures and letters “section 12AA”, the words, figures and letters “section 12AA; or” shall be substituted;
(b) after clause (g), the following clause shall be inserted, namely:-
“(h) by way of transaction not regarded as transfer under clause (vicb) or clause (vid) or clause (vii) of section 47.”.
Notes on Clauses:
Clause 34 of the Bill seeks to amend section 56 of the Income tax Act relating to income from other sources.
The aforesaid section, inter alia, provide for chargeability of income from other sources, in case any money, immovable property or other property with or without consideration is received by an assessee being an individual or an Hindu undivided family.
It is proposed to amend the said section so as to provide exemption from tax in the hands of an individual or a Hindu undivided family, on receipt of shares as a consequence of demerger or amalgamation of a company.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years.