Section 32 - Amendment of section 204 - Finance Act, 1986

32. Amendment of section 204 In section 204 of the Income-tax Act, with effect from the 1st day of June, 1986, - (a) after clause (ii), the following clause shall be inserted, namely :- (iia) in the case of any sum payable to a non-resident Indian, being any sum representing consideration for the transfer by him of any foreign exchange asset, which is not a short-term capital asset, the authorised dealer responsible for remitting such sum to the non-resident Indian or for crediting such sum to his Non-resident (External) Account maintained in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973) and any rules made thereunder; ; (b) the following Explanation shall be added at the end, namely :- 'Explanation: For the purposes of this section, - (a) non-resident Indian and foreign exchange asset shall have the meanings assigned to them in Chapter XII-A; (b) authorised dealer shall have the meaning assigned to it in clause (b) of section 2 of the Foreign Exchange Regulation Act, 1973 (46 of 1973).'.