Clause 17 - Amendment of section 47. - Finance (No. 2) Bill, 2019

Amendment of section 47. 17. In section 47 of the Income-tax Act, in clause (viiab), with effect from the 1st day of April, 2020, (A) for sub-clause (c), the following sub-clauses shall be substituted, namely: (c) derivative; or (d) such other securities as may be notified by the Central Government in this behalf, ; (B) in the long line, after the words made by a non-resident , the words or a specified fund shall be inserted; (C) in the Explanation, after clause (c), the following clauses shall be inserted, namely:- (d) securities shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (e) specified fund means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate,- (i) which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); (ii) which is located in any International Financial Services Centre; (iii) which is deriving income solely in convertible foreign exchange; (iv) of which all the units are held by non-residents; (f) trust means a trust established under the Indian Trusts Act, 1882 (2 of 1882) or under any other law for the time being in force; (g) unit means beneficial interest of an investor in the fund and shall include shares or partnership interests; (h) convertible foreign exchange means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 (42 of 1999) and the rules made thereunder; . Note: While Passing the bill in the Loksabha as on 18-7-2019, the following amendments were made: Clause 17 Amendments made: Page 9, omit lines 13 and 14 (10) Page 9, omit lines 18 to 32 (11) Thus the amended provision will be 17. In section 47 of the Income-tax Act, in clause (viiab), with effect from the 1st day of April, 2020, (A) for sub-clause (c), the following sub-clauses shall be substituted, namely: (c) derivative; or (d) such other securities as may be notified by the Central Government in this behalf, ; (B) x x x x x x x x x (C) in the Explanation, after clause (c), the following clauses shall be inserted, namely:- (d) securities shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); (e) x x x x x x x x x (f) x x x x x x x x x (g) x x x x x x x x x (h) x x x x x x x x x