32. Amendment of section 115AD.
In section 115AD of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2019,-
(a) in clause (iii), the word “and” occurring at the end shall be omitted;
(b) after clause (iii), the following proviso shall be inserted, namely:-
“Provided that in case of income arising from the transfer of a long-term capital asset referred to in section 112A, income-tax at the rate of ten per cent. shall be calculated on such income exceeding one lakh rupees; and”.
Notes on Clauses:
Clause 32 of the Bill seeks to amend section 115AD of the Income-tax Act relating to tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer which is consequential in nature.
This amendment will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent years.
