Amendment of section 2

Section 3 of the Finance Act, 2015 deals with amendment of section 2. CHAPTER III DIRECT TAXES Income-tax Amendment of section 2.

CHAPTER III

DIRECT TAXES

Income-tax

Amendment of section 2.

3. In section 2 of the Income-tax Act, with effect from the 1st day of April, 2016,—

(a)		for clause (13A), the following clause shall be substituted, namely:—
		'(13A)"business trust" means a trust registered as,—

(i)		an Infrastructure Investment Trust under the Securities and Exchange Board of India (Infrastructure Investment Trusts) Regulations, 2014 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992); or
(ii)		a Real Estate Investment Trust under the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 made under the Securities and Exchange Board of India Act, 1992 (15 of 1992), and

		the units of which are required to be listed on recognised stock exchange in accordance with the aforesaid regulations;';
(b)		in clause (15),—

(i)		after the word "education,", the word "yoga," shall be inserted;
(ii)		for the first and the second provisos, the following proviso shall be substituted, namely:—
		"Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity, unless—

(i)		such activity is undertaken in the course of actual carrying out of such advancement of any other object of general public utility; and
(ii)		the aggregate receipts from such activity or activities during the previous year, do not exceed twenty per cent of the total receipts, of the trust or institution undertaking such activity or activities, of that previous year;";

(c)

in clause (24), after sub-clause (xvii), the following sub-clause shall be inserted, namely:—

"(xviii)

assistance in the form of a subsidy or grant or cash incentive or duty drawback or waiver or concession or reimbursement (by whatever name called) by the Central Government or a State Government or any authority or body or agency in cash or kind to the assessee other than the subsidy or grant or reimbursement which is taken into account for determination of the actual cost of the asset in accordance with the provisions of Explanation 10 to clause (1) of section 43;";

(d)		in clause (37A), in sub-clause (iii), after the words "for the purposes of deduction of tax under", the words, figures and letters "section 194LBA or" shall be inserted;
(e)		in clause (42A), in the Explanation 1, in clause (i), after sub-clause (hc), the following sub-clauses shall be inserted, namely:—

"(hd)		in the case of a capital asset, being a unit or units, which becomes the property of the assessee in consideration of a transfer referred to in clause (xviii) of section 47, there shall be included the period for which the unit or units in the consolidating scheme of the mutual fund were held by the assessee;
(he)		in the case of a capital asset, being share or shares of a company, which is acquired by the non-resident assessee on redemption of Global Depository Receipts referred to in clause (b) of sub-section (1) of section 115AC held by such assessee, the period shall be reckoned from the date on which a request for such redemption was made;".

Section 3, The Finance Act, 2015 (Act 20 of 2015).