{"act":{"id":"finance-act-2023","short_title":"The Finance Act, 2023","long_title":"An Act to give effect to the financial proposals of the Central Government for the financial year 2023-2024.","act_number":"8","act_year":2023,"enact_date":null,"enforcement_date":null,"ministry":"Ministry of Finance","department":"Department of Revenue","jurisdiction":"CENTRAL","unit":"section","section_count":181,"in_force":true,"spent":false,"spent_note":null,"duplicate_of":null,"text_source":"published","scan_url":null,"url":"https://indiacode.ecourtsindia.com/finance-act-2023/"},"unit":"section","section":{"number":"24","heading":"Insertion of new section 50AA","text":"Insertion of new section 50AA. 24.  After section 50A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2024, namely:— '50AA. Special provision for computation of capital gains in case of Market Linked Debenture.—Notwithstanding anything contained in clause (42A) of section 2 or section 48, where the capital asset is a unit of a Specified Mutual Fund acquired on or after the 1st day of April, 2023 or a Market Linked Debenture, the full value of consideration received or accruing as a result of the transfer or redemption or maturity of such debenture or unit as reduced by— (i) | the cost of acquisition of the debenture or unit; and (ii) | the expenditure incurred wholly and exclusively in connection with such transfer or redemption or maturity, shall be deemed to be the capital gains arising from the transfer of a short-term capital asset: Provided that no deduction shall be allowed in computing the income chargeable under the head \"Capital gains\" in respect of any sum paid on account of securities transaction tax under the provisions of Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004). Explanation.— For the purposes of this section— (i) | \"Market Linked Debenture\" means a security by whatever name called, which has an underlying principal component in the form of a debt security and where the returns are linked to market returns on other underlying securities or indices and include any security classified or regulated as a market linked debenture by the Securities and Exchange Board of India; (ii) | \"Specified Mutual Fund\" means a Mutual Fund by whatever name called, where not more than thirty five per cent of its total proceeds is invested in the equity shares of domestic companies: Provided that the percentage of equity shareholding held in respect of the Specified Mutual Fund shall be computed with reference to the annual average of the daily closing figures.'.","html":"<p><b>Insertion of new section 50AA.</b></p><p><b>24. </b> After section 50A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2024, namely:—</p><p>'50AA. <i>Special provision for computation of capital gains in case of Market Linked Debenture.</i>—Notwithstanding anything contained in clause (<i>42A</i>) of section 2 or section 48, where the capital asset is a unit of a Specified Mutual Fund acquired on or after the 1st day of April, 2023 or a Market Linked Debenture, the full value of consideration received or accruing as a result of the transfer or redemption or maturity of such debenture or unit as reduced by—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>the cost of acquisition of the debenture or unit; and</td></tr><tr><td>(<i>ii</i>)</td><td></td><td>the expenditure incurred wholly and exclusively in connection with such transfer or redemption or maturity,</td></tr></table></div><p>shall be deemed to be the capital gains arising from the transfer of a short-term capital asset:</p><p><b>Provided</b> that no deduction shall be allowed in computing the income chargeable under the head \"Capital gains\" in respect of any sum paid on account of securities transaction tax under the provisions of Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004).</p><p><i>Explanation</i>.— For the purposes of this section—</p><div class=\"tablewrap\"><table class=\"dtable\"><tr><td>(<i>i</i>)</td><td></td><td>\"Market Linked Debenture\" means a security by whatever name called, which has an underlying principal component in the form of a debt security and where the returns are linked to market returns on other underlying securities or indices and include any security classified or regulated as a market linked debenture by the Securities and Exchange Board of India;</td></tr><tr><td>(<i>ii</i>)</td><td></td><td>\"Specified Mutual Fund\" means a Mutual Fund by whatever name called, where not more than thirty five per cent of its total proceeds is invested in the equity shares of domestic companies:</td></tr></table></div><p><b>Provided </b>that the percentage of equity shareholding held in respect of the Specified Mutual Fund shall be computed with reference to the annual average of the daily closing figures.'.</p>","words":328,"text_source":"published"},"classification":[],"instruments":[],"judgments":[],"corresponds_to":[],"url":"https://indiacode.ecourtsindia.com/finance-act-2023/section/24/","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."}