Finance Act, 1986 amends Section 204: Authorized dealers liable for remittances to non-resident Indians. Definitions clarified.

Section 204 of the Income-tax Act was amended by the Finance Act, 1986, effective June 1, 1986. A new clause (iia) was introduced, specifying that an authorized dealer responsible for remitting or crediting sums to a non-resident Indian, as consideration for the transfer of a foreign exchange asset (not a short-term capital asset), is accountable. An explanation was added defining "non-resident Indian" and "foreign exchange asset" as per Chapter XII-A, and "authorized dealer" as per the Foreign Exchange Regulation Act, 1973.

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