{"act":{"id":"finance-act-2014","short_title":"The Finance Act, 2014","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2014-2015.","act_number":"25","act_year":2014,"enact_date":null,"enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":129,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2014/"},"unit":"section","section":{"number":"3","heading":"Amendment of section 2","text":"CHAPTER III DIRECT TAXES Income-tax Amendment of section 2. 3. In section 2 of the Income-tax Act,— (I) | after clause (13), the following clause shall be inserted with effect from the 1st day of October, 2014, namely:— '(13A) | \"business trust\" means a trust registered as an Infrastructure Investment Trust or a Real Estate Investment Trust, the units of which are required to be listed on a recognised stock exchange, in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and notified by the Central Government in this behalf;'; (II) | in clause (14), with effect from the 1st day of April, 2015,— (A) | for the words in the opening portion '\"capital asset\" means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include— (i) | any stock-in-trade', the following shall be substituted, namely:— '\"capital asset\" means— (a) | property of any kind held by an assessee, whether or not connected with his business or profession; (b) | any securities held by a Foreign Institutional Investor which has invested in such securities in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), but does not include— (i) | any stock-in-trade [other than the securities referred to in sub-clause (b)],'; (B) | the Explanation occurring at the end shall be numbered as \"Explanation 1\" thereof and after the Explanation as so numbered, the following Explanation shall be inserted, namely:— 'Explanation 2.—For the purposes of this clause— (a) | the expression \"Foreign Institutional Investor\" shall have the meaning assigned to it in clause (a) of the Explanation 1 to section 115AD; (b) | the expression \"securities\" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);'; (III) | for clause (15A), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2013,— '(15A) | \"Chief Commissioner\" means a person appointed to be a Chief Commissioner of Income-tax or a Principal Chief Commissioner of Income-tax under sub-section (1) of section 117;'; (IV) | for clause (16), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2013,— '(16) | \"Commissioner\" means a person appointed to be a Commiss-ioner of Income-tax or a Director of Income-tax or a Principal Commissioner of Income-tax or a Principal Director of Income-tax under sub-section (1) of section 117;'; (V) | for clause (21), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2013,— '(21) | \"Director General or Director\" means a person appointed to be a Director General of Income-tax or a Principal Director Gene-ral of Income-tax or, as the case may be, a Director of Income-tax or a Principal Director of Income-tax, under sub-section (1) of section 117, and includes a person appointed under that sub-section to be an Additional Director of Income-tax or a Joint Director of Income-tax or an Assistant Director or Deputy Director of Income-tax;'; (VI) | in clause (24), after sub-clause (xvi), the following sub-clause shall be inserted with effect from the 1st day of April, 2015, namely:— \"(xvii) | any sum of money referred to in clause (ix) of sub-section (2) of section 56;\"; (VII) | after clause (34), the following clauses shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2013,— '(34A) | \"Principal Chief Commissioner of Income-tax\" means a person appointed to be a Principal Chief Commissioner of Income-tax under sub-section (1) of section 117; (34B) | \"Principal Commissioner of Income-tax\" means a person appointed to be a Principal Commissioner of Income-tax under sub-section (1) of section 117; (34C) | \"Principal Director of Income-tax\" means a person appointed to be a Principal Director of Income-tax under sub-section (1) of section 117; (34D) | \"Principal Director General of Income-tax\" means a person appointed to be a Principal Director General of Income-tax under sub-section (1) of section 117;'; (VIII) | in clause (42A),— (A) | in the proviso, with effect from the 1st day of April, 2015,— (i) | for the words \"a share held in a company or any other security listed in a recognised stock exchange in India\", the words and brackets \"a security (other than a unit) listed in a recognised stock exchange in India\" shall be substituted; (ii) | for the words, brackets, figures and letter \"a unit of a Mutual Fund specified under clause (23D) of section 10\", the words \"a unit of an equity oriented fund\" shall be substituted; (B) | after the proviso, but before Explanation 1, the following proviso shall be inserted with effect from the 1st day of April, 2015, namely:— 'Provided further that in case of a share of company (not being a share listed in a recognised stock exchange) or a unit of a Mutual Fund specified under clause (23D) of section 10, which is transferred during the period beginning on the 1st day of April, 2014 and ending on the 10th day of July, 2014, the provisions of this clause shall have effect as if for the words \"thirty-six months\", the words \"twelve months\" had been substituted;'. (C) | in the Explanation 1, in clause (i), after sub-clause (hb), the following sub-clause shall be inserted with effect from the 1st day of October, 2014, namely:— \"(hc) | in the case of a capital asset, being a unit of a business trust, allotted pursuant to transfer of share or shares as referred to in clause (xvii) of section 47, there shall be included the period for which the share or shares were held by the assessee;\"; (D) | after Explanation 3, the following Explanation shall be inserted with effect from the 1st day of April, 2015, namely:— 'Explanation 4.—For the purposes of this clause, the expression \"equity oriented fund\" shall have the meaning assigned to it in the Explanation to clause (38) of section 10;'. © Copyright. Taxmann Publications Pvt. Ltd.","html":"

CHAPTER III

DIRECT TAXES

Income-tax

Amendment of section 2.

3. In section 2 of the Income-tax Act,—

(I)after clause (13), the following clause shall be inserted with effect from the 1st day of October, 2014, namely:—
'(13A)\"business trust\" means a trust registered as an Infrastructure Investment Trust or a Real Estate Investment Trust, the units of which are required to be listed on a recognised stock exchange, in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992) and notified by the Central Government in this behalf;';
(II)in clause (14), with effect from the 1st day of April, 2015,—
(A)for the words in the opening portion '\"capital asset\" means property of any kind held by an assessee, whether or not connected with his business or profession, but does not include—
(i)any stock-in-trade', the following shall be substituted, namely:—
'\"capital asset\" means—
(a)property of any kind held by an assessee, whether or not connected with his business or profession;
(b)any securities held by a Foreign Institutional Investor which has invested in such securities in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992),
but does not include—
(i)any stock-in-trade [other than the securities referred to in sub-clause (b)],';
(B)the Explanation occurring at the end shall be numbered as \"Explanation 1\" thereof and after the Explanation as so numbered, the following Explanation shall be inserted, namely:—
'Explanation 2.—For the purposes of this clause—
(a)the expression \"Foreign Institutional Investor\" shall have the meaning assigned to it in clause (a) of the Explanation 1 to section 115AD;
(b)the expression \"securities\" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);';
(III)for clause (15A), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2013,—
'(15A)\"Chief Commissioner\" means a person appointed to be a Chief Commissioner of Income-tax or a Principal Chief Commissioner of Income-tax under sub-section (1) of section 117;';
(IV)for clause (16), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2013,—
'(16)\"Commissioner\" means a person appointed to be a Commiss-ioner of Income-tax or a Director of Income-tax or a Principal Commissioner of Income-tax or a Principal Director of Income-tax under sub-section (1) of section 117;';
(V)for clause (21), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2013,—
'(21)\"Director General or Director\" means a person appointed to be a Director General of Income-tax or a Principal Director Gene-ral of Income-tax or, as the case may be, a Director of Income-tax or a Principal Director of Income-tax, under sub-section (1) of section 117, and includes a person appointed under that sub-section to be an Additional Director of Income-tax or a Joint Director of Income-tax or an Assistant Director or Deputy Director of Income-tax;';
(VI)in clause (24), after sub-clause (xvi), the following sub-clause shall be inserted with effect from the 1st day of April, 2015, namely:—
\"(xvii)any sum of money referred to in clause (ix) of sub-section (2) of section 56;\";
(VII)after clause (34), the following clauses shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2013,—
'(34A)\"Principal Chief Commissioner of Income-tax\" means a person appointed to be a Principal Chief Commissioner of Income-tax under sub-section (1) of section 117;
(34B)\"Principal Commissioner of Income-tax\" means a person appointed to be a Principal Commissioner of Income-tax under sub-section (1) of section 117;
(34C)\"Principal Director of Income-tax\" means a person appointed to be a Principal Director of Income-tax under sub-section (1) of section 117;
(34D)\"Principal Director General of Income-tax\" means a person appointed to be a Principal Director General of Income-tax under sub-section (1) of section 117;';
(VIII)in clause (42A),—
(A)in the proviso, with effect from the 1st day of April, 2015,—
(i)for the words \"a share held in a company or any other security listed in a recognised stock exchange in India\", the words and brackets \"a security (other than a unit) listed in a recognised stock exchange in India\" shall be substituted;
(ii)for the words, brackets, figures and letter \"a unit of a Mutual Fund specified under clause (23D) of section 10\", the words \"a unit of an equity oriented fund\" shall be substituted;
(B)after the proviso, but before Explanation 1, the following proviso shall be inserted with effect from the 1st day of April, 2015, namely:—
'Provided further that in case of a share of company (not being a share listed in a recognised stock exchange) or a unit of a Mutual Fund specified under clause (23D) of section 10, which is transferred during the period beginning on the 1st day of April, 2014 and ending on the 10th day of July, 2014, the provisions of this clause shall have effect as if for the words \"thirty-six months\", the words \"twelve months\" had been substituted;'.
(C)in the Explanation 1, in clause (i), after sub-clause (hb), the following sub-clause shall be inserted with effect from the 1st day of October, 2014, namely:—
\"(hc)in the case of a capital asset, being a unit of a business trust, allotted pursuant to transfer of share or shares as referred to in clause (xvii) of section 47, there shall be included the period for which the share or shares were held by the assessee;\";
(D)after Explanation 3, the following Explanation shall be inserted with effect from the 1st day of April, 2015, namely:—
'Explanation 4.—For the purposes of this clause, the expression \"equity oriented fund\" shall have the meaning assigned to it in the Explanation to clause (38) of section 10;'.

© Copyright. Taxmann Publications Pvt. Ltd.

","words":1041,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2014/section/3/","note":null,"source_note":"Harvested from the Income Tax Department's own portal at incometaxindia.gov.in, which publishes the Finance Acts section by section. India Code carries none of them: its Central community holds the Acts that stand as general law, and a Finance Act is an amending and rate-fixing instrument.","judgments_note":"Judgment holdings are the ratio decidendi as extracted from the order by eCourts India, reproduced unaltered. Reported judgments only.","licence":"Published with commentary and other original matter under s.52(1)(q)(ii), Copyright Act 1957."}