Amendment of section 48.
16. In section 48 of the Income-tax Act, after clause (ii) the following clause shall be inserted, namely: ──
“(iii) in case of specified entity referred to in sub-section (4A) of section 45, the amount included in the total income of such specified entity under sub-section (4A) of section 45 which is attributable to the capital asset being transferred, calculated in the prescribed manner:”.
Notes on Clauses:
Clause 16 of the Bill seeks to amend section 48 of the Income-tax Act relating to mode of computation for income chargeable under the head capital gains.
The section inter alia, provides for computation of capital gains arising out of transfer of a capital asset by deducting from the full value consideration received or accruing as a result of such transfer, the amounts of expenditure incurred wholly and exclusively for such transfer and cost of acquisition as well as cost of any improvement thereto.
It is proposed to insert clause (iii) in the said section so as to provide in case of specified entity referred to in sub-section (4A) of section 45, the amount included in the total income of such specified entity under sub-section (4A) of section 45 which is attributable to the capital asset being transferred, calculated in the prescribed manner, shall be reduced from full value of consideration received or accruing as a result of transfer of the capital asset.
This amendment shall come into effect from the 1st day of April, 2021 and shall accordingly apply to assessment year 2021-2022 and subsequent assessment years.
