Amendment of section 115C.
55. In section 115C of the Income-tax Act, in clause (c), the words, figures and letter “other than dividends referred to in section 115-O” shall be omitted with effect from the 1st day of April, 2021.
Notes on Clauses:
Clause 55 of the Bill seeks to amend section 115C of the Income-tax Act relating to definitions.
Clause (c) of the said section defines the expression “investment income” for the purposes of Chapter XII-A to mean any income derived other than dividends referred to in section 115-O from a foreign exchange asset.
It is proposed to amend the said clause to omit the reference of dividend referred to in section 115-O so as to define “investment income” to mean any income derived from a foreign exchange asset.
This amendment will take effect from 1st April, 2021 and will, accordingly, apply in relation to the assessment year 2021-2022 and subsequent assessment years.
