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Statutory Provisions

Home Acts & Rules Bill Bills FINANCE BILL, 2016 Chapters List Chapter III DIRECT TAXES This

Clause 58 - Amendment of section 115TC. - FINANCE BILL, 2016

FINANCE BILL, 2016
Chapter III
DIRECT TAXES
  • Contents

Amendment of section 115TC.

58. In section 115TC of the Income-tax Act, in the Explanation, with effect from the 1st day of June, 2016,-

(A) in clause (a), after the words “or securities”, the words “or security receipt” shall be inserted;

(B) in clause (d),-

(I) in sub-clause (ii), after the words “ Reserve Bank of India,”, the word “;or” shall be inserted;

(II) after sub-clause (ii) and before the long line, the following sub-clause shall be inserted, namely:-

“(iii) trust set-up by a securitisation company or a reconstruction company formed, for the purposes of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002), or in pursuance of any guidelines or directions issued for the said purposes by the Reserve Bank of India,”;

(C) after clause (d), the following clause shall be inserted, namely:-

‘(e) “security receipt” shall have the same meaning as assigned to it in clause (zg) of sub-section (1) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002).’.

 



 

Notes on Clauses:

Clause 58 of the Bill seeks to amend section 115TC of the Income-tax Act relating to securitisation trust to be assessee in default.

The Explanation to the aforesaid section defines various expressions for the purposes of section 115TA, section 115TB and also the said section 115TC.

It is proposed to amend the definition of “investor” as provided in clause (a) of the said Explanation so as to include a person who has invested in the security receipt as defined under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

It is further proposed to amend the definition of “securitisation trust” provided in clause (d) of the said Explanation so as to include a trust set up by a  securitisation company or a reconstruction company formed, in accordance with the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or in pursuance of any guidelines and directions issued by the Reserve Bank of India.

It is also proposed to provide that the expression “security receipt” shall have the same meaning as assigned to it in in clause (zg) of sub-section (1) of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

These amendments will take effect from 1st June, 2016.

 
 
 
 

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