Section 5 - Amendment of section 10 - Finance (No. 2) Act, 2014

Amendment of section 10 5. In section 10 of the Income-tax Act, with effect from the 1st day of April, 2015, (a) in clause (23C), (i) after sub-clause (iiiac), the following Explanation shall be inserted, namely: Explanation. For the purposes of sub-clauses (iiiab) and (iiiac), any university or other educational institution, hospital or other institution referred therein, shall be considered as being substantially financed by the Government for any previous year, if the Government grant to such university or other educational institution, hospital or other institution exceeds such percentage of the total receipts including any voluntary contributions, as may be prescribed, of such university or other educational institution, hospital or other institution, as the case may be, during the relevant previous year. ; (ii) after the seventeenth proviso, the following proviso and the Explanation shall be inserted, namely: Provided also that where the fund or institution referred to in subclause (iv) or the trust or institution referred to in sub-clause (v) has been notified by the Central Government or approved by the prescribed authority, as the case may be, or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via), has been approved by the prescribed authority, and the notification or the approval is in force for any previous year, then, nothing contained in any other provision of this section [other than clause (1) thereof] shall operate to exclude any income received on behalf of such fund or trust or institution or university or other educational institution or hospital or other medical institution, as the case may be, from the total income of the person in receipt thereof for that previous year. Explanation. In this clause, where any income is required to be applied or accumulated, then, for such purpose the income shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under this clause in the same or any other previous year; ; (b) after clause (23FB), the following clauses shall be inserted, namely: (23FC) any income of a business trust by way of interest received or receivable from a special purpose vehicle. Explanation. For the purposes of this clause, the expression special purpose vehicle means an Indian company in which the business trust holds controlling interest and any specific percentage of shareholding or interest, as may be required by the regulations under which such trust is granted registration; (23FD) any distributed income, referred to in section 115UA, received by a unit holder from the business trust, not being that proportion of the income which is of the same nature as the income referred to in clause (23FC); ; (c) in clause (38), (i) after the words unit of an equity oriented fund , the words or a unit of a business trust shall be inserted; (ii) after the proviso but before the Explanation, the following proviso shall be inserted, namely: Provided further that the provisions of this clause shall not apply in respect of any income arising from transfer of units of a business trust which were acquired in consideration of a transfer referred to in clause (xvii) of section 47. .