Clause 83 - Amendment of section 194LD. - Finance Bill, 2020

Amendment of section 194LD. 83. In section 194LD of the Income-tax Act, (i ) for sub-section (2 ), the following sub-section shall be substituted, namely: (2 ) The income by way of interest referred to in sub-section (1 ) shall be the interest payable, (a ) on or after the 1st day of June, 2013 but before the 1st day of July, 2023 in respect of the investment made by the payee in (i ) a rupee denominated bond of an Indian company; or (ii ) a Government security; (b ) on or after the 1st day of April, 2020 but before the 1st day of July, 2023 in respect of the investment made by the payee in municipal debt securities: Provided that the rate of interest in respect of bond referred to in sub-clause (i ) of clause (a ) shall not exceed the rate as the Central Government may, by notification in the Official Gazette, specify. ; (ii ) in the Explanation , after clause (b ), the following clause shall be inserted, namely: (ba ) municipal debt securities shall have the meaning assigned to it in clause (m ) of sub-regulation (1 ) of regulation 2 of the Securities and Exchange Board of India (Issue and Listing of Municipal Debt Securities) Regulations, 2015 made under the Securities and Exchange Board of India Act, 1992; (15 of 1992) .