Amendment of section 111A.
32. In section 111A of the Income-tax Act, in the Explanation, in clause (a), for the words, brackets and figures “the Explanation to clause (38) of section 10”, the words, brackets, letters and figures “clause (a) of the Explanation to section 112A” shall be substituted with effect from the 1st day of April, 2020.
Notes on Clauses:
Clause 32 of the Bill seeks to amend section 111A of the Incometax Act relating to tax on short-term capital gains in certain cases.
Clause (a) of the Explanation to the said section provides that the “equity oriented fund” shall have the meaning assigned to it in the Explanation to clause (38) of section 10.
It is proposed to amend the said Explanation so as to provide that “equity oriented fund” shall have the meaning assigned to it in clause (a) of the Explanation to section 112A.
This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.
