Amendment of section 92BA.
41. In section 92BA of the Income-tax Act, clause (i) shall be omitted.
Notes on Clauses:
Clause 41 of the Bill seeks to amend section 92BA of the Income-tax Act relating to meaning of specified domestic transaction.
The provisions of the said section, inter alia, provides that any transaction entered into by the assessee exceeding the monetary threshold of twenty crore rupees in aggregate during a previous year for the purposes of clause (b) of sub71 section (2) of section 40A, shall come within the meaning of "specified domestic transaction" and shall accordingly, be required to be computed having regard to arm's length principle.
It is proposed to amend the said section so as to omit clause (i) of the said section so as to exclude the expenditure in respect of which payment has been made or to be made by the assessee to a person referred to in clause (b) of subsection (2) of section 40A, from the scope of section 92BA of the Income-tax Act.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years.
