Amendment of section 115TF.
33. In section 115TF of the Income-tax Act, with effect from the 1st day of April, 2023,––
(a) in the marginal heading, for the words “trust or institution”, the words “specified person” shall be substituted;
(b) in sub-section (1), for the words “trust or the institution” at both the places where they occur, the words “specified person” shall be substituted;
(c) the following Explanation shall be inserted, namely:–
‘Explanation.-For the purposes of this section, “specified person” shall have the same meaning as assigned to in clause (iia) of the Explanation to section 115TD.’.
Notes on Clauses:
Clause 33 seeks to amend section 115TF of the Income-tax Act relating to when trust or institution is deemed to be assessee in default.
The said section, inter-alia, provides that if any principal officer or the trustee of the trust or the institution and the trust or the institution does not pay tax on accreted income in accordance with the provisions of section 115TD, then, he or it shall be deemed to be an assessee in default in respect of the amount of tax payable by him or it and all the provisions of the Act for the collection and recovery of income-tax shall apply.
It is proposed to amend the said section so as to substitute the reference of the expression “trust or the institution” with the reference of “specified person”.
This amendment will take effect from 1st April, 2023 and will, accordingly, apply in relation to the assessment year 2023-2024 and subsequent assessment years.
