Clause 120 - Avoidance of tax by sale and buy-back transaction in security. - Direct Taxes Code, 2010

Avoidance of tax by sale and buy-back transaction in security. 120. The total income of any person shall include any interest accruing from any security owned by any other person if— (a) the person undertakes a transaction relating to sale and buy-back of the security; (b) the interest accrues to the other person as a result of such transaction; and (c) the income would have been included in the total income of the person, had the transfer not taken place.