Section 38 - Amendment of section 115UB. - Finance (No. 2) Act, 2019

Amendment of section 115UB. 38. In section 115UB of the Income-tax Act, in sub-section (2), with effect from the 1 st day of April, 2020, (a) for clauses (i) and (ii), the following clauses shall be substituted, namely: (i) out of such loss, the loss arising to the investment fund as a result of the computation under the head Profit and gains of business or profession , if any, shall be, (a) allowed to be carried forward and it shall be set off by the investment fund in accordance with the provisions of Chapter VI; and (b) ignored for the purposes of sub-section (1); (ii) the loss other than the loss referred to in clause (i), if any, shall also be ignored for the purposes of sub-section (1), if such loss has arisen in respect of a unit which has not been held by the unit holder for a period of atleast twelve months. ; (b) after sub-section (2), the following sub-section shall be inserted, namely: (2A) The loss other than the loss under the head Profit and gains of business or profession , if any, accumulated at the level of investment fund as on the 31st day of March, 2019, shall be, (i) deemed to be the loss of a unit holder who held the unit on the 31st day of March, 2019 in respect of the investments made by him in the investment fund, in the same manner as provided in sub-section (1); and (ii) allowed to be carried forward by such unit holder for the remaining period calculated from the year in which the loss had occurred for the first time taking that year as the first year and shall be set off by him in accordance with the provisions of Chapter VI: Provided that the loss so deemed under this sub-section shall not be available to the investment fund on or after the 1st day of April, 2019. .