Amendment of section 115QA.
56. In section 115QA of the Income-tax Act, in sub-section (1), in the Explanation, with effect from the 1st day of June, 2016,-
(a) in clause (i), for the words, figures and letter “section 77A of the Companies Act, 1956”, the words “any law for the time being in force relating to companies” shall be substituted;
(b) in clause (ii), for the words “the amount which was received by the company for issue of such shares”, the words “the amount, which was received by the company for issue of such shares, determined in the manner as may be prescribed” shall be substituted.
Notes on Clauses:
Clause 56 of the Bill seeks to amend section 115QA of the Income-tax Act relating to tax on distributed income to shareholders.
The Explanation to sub-section (1) of the aforesaid section provides for definition of certain expressions for the purposes of the said section.
It is proposed to amend clause (i) of the said Explanation to substitute the reference of section 77A of the Companies Act, 1956 with the words “any law for the time being in force relating to companies” and also to amend clause (ii) to provide that “distributed income” shall mean the consideration paid by the company on buy-back of shares as reduced by the amount, which was received by the company for issue of such shares, determined in the manner as may be prescribed.
These amendments will take effect from 1st June, 2016.
