PART X
AMENDMENTS TO THE FINANCE ACT, 2016
Amendment of Act 28 of 2016.
150. In the Finance Act, 2016,––
(i) in section 50, for the words, figures and letters “with effect from the 1st day of April, 2017”, the words, figures and letters “and shall be deemed to have been substituted with effect from the 1st day of April, 2013” shall be substituted;
(ii) in section 197, clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of June, 2016.
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Declaration under the Provisional Collection of Taxes Act, 1931
It is hereby declared that it is expedient in the public interest that the provisions of clauses 109(a), 110, 118 and 146 of this Bill shall have immediate effect under the Provisional Collection of Taxes Act, 1931 (16 of 1931).
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Notes on Clauses:
Clause 150 of the Bill seeks to amend the Finance Act, 2016.
Section 50 of the said Act amended sub-clause (iii) of clause (c) of sub-section (1) of section 112 of Income-tax Act to provide that with effect from the 1st day of April, 2017, the long-term capital gains arising from transfer of a capital asset being shares of a company not being a company in which the public are substantially interested, shall also be chargeable to tax at the rate of ten per cent.
It is now proposed to amend the said section 50 so as to provide that the above said amendments shall be effective from 1st April, 2013 instead of 1st April, 2017.
This amendment will take effect, retrospectively from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-2014 and subsequent years.
Clause (c) of the section 197 of the said Act provides that where any income has accrued, arisen or received or any asset has been acquired out of such income prior to commencement of the Income Declaration Scheme, 2016, and no declaration in respect of such income is made under the said Scheme, then such income shall be deemed to have accrued, arisen or received, as the case may be, in the year in which a notice under sub-section (1) of section 142, subsection (2) of section 143 or section 148 or section 153A or section 153C of the Income-tax Act, 1961 is issued by the Assessing Officer, and provisions of the said Act shall apply accordingly.
It is proposed to omit clause (c) of the said section.
This amendment will take effect retrospectively from 1st June, 201
