9911796707
TMI BlogAmendment of section 56.X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions, then, any consideration received for issue of share that exceeds the face value of such share shall be deemed to be the income of that company chargeable to income-tax for the previous year in which such failure has taken place. ; (c) in the Explanation, after clause (a), the following clauses shall be inserted, namely:- (aa) 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 which has been granted a certificate of registration as a Category II 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous years. , . (12) Page 10, in line 13, for Category II , substitute Category I or a Category II (13) Thus, the amended provision will be: 21. In section 56 of the Income-tax Act, in sub-section (2), (i) in clause (viib), with effect from the 1st day of April, 2020,- (a) in the proviso, in clause (i), for the words venture capital fund , the words venture capital fund or a specified fund shall be substituted; (b) after the proviso, the following proviso shall be inserted, namely:- Provided further that where the provisions of this clause have not been applied to a company on account of fulfilment of conditions specified in the notification issued under clause (ii) of the first proviso and such company fails to comply with any of those cond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the words bank account , the words bank account or through such other electronic mode as may be prescribed shall be substituted with effect from the 1st day of April, 2020; (B) in the proviso, after clause (X), the following clause shall be inserted with effect from the 1st day of April, 2020, namely:- (XI) from such class of persons and subject to such conditions, as may be prescribed. . - Clause 21 of the Bill seeks to amend section 56 of the Incometax Act relating to income from other sources. Clause ( viib ) of sub-section ( 2 ) of the said section provides that where a company, not being a company in which the public are substantially interested, receives in any previous year, from any person being a resident, any consideration for i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income of the company chargeable to income-tax for the previous year in which such failure has taken place. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause ( viii ) of sub-section ( 2 ) of the said section provides that income by way of interest received on compensation or on enhanced compensation referred to in clause ( b ) of section 145A shall be chargeable to tax. It is proposed to amend the said clause so as to substitute the reference of clause ( b ) of section 145A with the reference of subsection ( 1 ) of section 145B therein. This amendment will take effect retrospectively from 1st April, 2017 and will, acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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