Amendment of section 115BBDA.
44. In section 115BBDA of the Income-tax Act [as inserted by section 52 of the Finance Act, 2016 (28 of 2016)], with effect from the 1st day of April, 2018,-
(i) in sub-section (1), for the words “an assessee, being an individual, a Hindu undivided family or a firm”, the words “a specified assessee” shall be substituted;
(ii) for sub-section (3), the following Explanation shall be substituted, namely:-
‘Explanation.––For the purposes of this section,-
(a) “dividend” shall have the meaning assigned to it in clause (22) of section 2 but shall not include sub-clause (e) thereof;
(b) “specified assessee” means a person other than,-
(i) a domestic company; or
(ii) a fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10; or
(iii) a trust or institution registered under section 12AA.’.
Notes on Clauses:
Clause 44 of the Bill seeks to amend section 115BBDA of the Income-tax Act relating to tax on certain dividends received from domestic companies.
Under the existing provisions of section 115BBDA, in case of an assessee, being an individual, Hindu undivided family or a firm, resident in India, tax is charged at the rate of ten per cent. on income by way of dividend exceeding ten lakh rupees.
It is proposed to amend the said section so as to provide that this section shall be applicable to all resident persons other than a domestic company, a fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 or a trust or institution registered under section 12AA of the Income-tax Act.
These amendments will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-2019 and subsequent years.
