Clause 32 - Amendment of section 56. - Finance Bill, 2023

Amendment of section 56. 32. In section 56 of the Income-tax Act, in sub-section (2), with effect from the 1st day of April, 2024, (a) in clause (viib), the words being a resident shall be omitted; (b) after clause (xi), the following clauses shall be inserted, namely: (xii) any sum received by a unit holder from a business trust which (a) is not in the nature of income referred to in clause (23FC) or clause (23FCA) of section 10; and (b) is not chargeable to tax under sub-section (2) of section 115UA: Provided that where the sum received by a unit holder from a business trust is for redemption of unit or units held by him, the sum so received shall be reduced by the cost of acquisition of the unit or units to the extent such cost does not exceed the sum received; (xiii) where any sum is received, including the amount allocated by way of bonus, at any time during a previous year, under a life insurance policy, other than the sum, (a) received under a unit linked insurance policy; (b) being the income referred to in clause (iv), which is not to be excluded from the total income of the previous year in accordance with the provisions of clause (10D) of section 10, the sum so received as exceeds the aggregate of the premium paid, during the term of such life insurance policy, and not claimed as deduction under any other provision of this Act, computed in such manner as may be prescribed. Explanation.-For the purposes of this clause unit linked insurance policy shall have the meaning assigned to it in Explanation 3 to clause (10D) of section 10. .