CBDT notifies amendment in Transactions not regarded as Transfer u/s 47 of Income Tax Act [Read Notification]

The Central Board of Direct Taxes (CBDT) vide notification no. S.O. 3981(E) issued on 12th September 2023 has notified the amendment in the transaction not regarded as transfer under the Section 47 of the Income Tax Act, 1961. The notification came into effect on the notified date.

Exercising the authority granted under sub-clause (d) of clause (viiab) of section 47 of the Income-tax Act, the Central Government introduced the additional amendments to the notification issued by the Government of India, Ministry of Finance, (Department of Revenue), number 16/2020, dated March 5th, 2020, as published in the Gazette of India, Extraordinary, Part-II, Section 3, sub-section (ii), under number S.O. 986(E), dated March 5th, 2020. The new additions includes:

1. after clause (vi), the following clause shall be inserted, namely: –

 “(vii) unit of investment trust;

   (viii) unit of a scheme;

    (ix) unit of a Exchange Traded Fund launched under International Financial Services Centres Authority (Fund Management) Regulations, 2022,”;

2. in the Explanation, after clause (c), the following clause shall be inserted, namely: –

“(d) “Investment Trust” shall have the meaning assigned to it in clause (d) of sub-regulation (1) of regulation 83 of the International Financial Services Centres Authority (Fund Management) Regulations, 2022.

(e) “Scheme” shall have the meaning assigned to it in clause (ii) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Fund Management) Regulations, 2022.”

The CBDT vide notification no. S.O. 3652(E) dated 03rd August, 2022, has inserted the Bullion Depository Receipt with underlying bullion as the transactions not regarded as transfer.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates