37. Amendment of section 115JF.
In section 115JF of the Income-tax Act, with effect from the 1st day of April, 2019,––
(i) for clause (b), the following clause shall be substituted, namely:––
‘(b) “alternate minimum tax” means the amount of tax computed on adjusted total income,––
(i) in case of an assessee being a unit referred to in sub-section (4) of section 115JC, at a rate of nine per cent.;
(ii) in any other case, at a rate of eighteen and one-half per cent.;’;
(ii) after clause (b), the following clauses shall be inserted, namely:––
‘(ba) “convertible foreign exchange” means a foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purpose of the Foreign Exchange Management Act, 1999 (42 of 1999) and the rules made thereunder;
(bb) “International Financial Services Centre” shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005(28 of 2005);’;
(iii) after clause (d), the following clause shall be inserted, namely:––
‘(e) “unit” means a unit established in an International Financial Services Centre.’.
Notes on Clauses:
Clause 37 seeks to amend section 115JF of the Income-tax Act relating to interpretation in this Chapter.
It is proposed to amend the said section so as to provide that the assesse being a person other than a company, is a unit located in an International Financial Service Centre and derives its income solely in convertible foreign exchange, the rate of tax minimum alternate tax shall be nine per cent.
It is further proposed to define certain expressions used therein.
These amendments will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent years.
