Exempted income - Correct definition of the expression "person resident outside India" - clarificatory amendment - Budget 2017-18 w.e.f. 1.4.2013 (Retrospective)

Clause - 006 - Amendment of section 10.

THE FINANCE BILL, 2017

Certain incomes not included in total income U/s 10

The existing provisions contained in the said section provide that in computing the total income of a previous year of any person, certain categories of income shall not be included in total income.

Further, sub-clause (ii) of clause (4) of the said section refers to any income of an individual by way of interest on moneys standing to his credit in a Non-Resident (External) Account in any bank in India in accordance with the Foreign Exchange Management Act, 1999 (42 of 1999), and the rules made thereunder. The proviso to the said sub-clause refers individual to be a person resident outside India, as defined in clause (q) of section 2 of Act 46 of 1973, which stands repealed and re-enacted as Act 42 of 1999. The definition of person outside India is occurring in clause (w) of Act 42 of 1999.

It is proposed to amend the proviso to sub-clause (ii) of clause (4) of the said section so as to reflect the correct definition of the expression "person resident outside India" and is clarificatory in nature.

This amendment will take effect retrospectively from 1st April, 2013, the date on which sub-clause (ii) of clause (4) of the said section was brought into force.

Dated: 2-2-2017