Amendment of section 115-O

Q: When was Section 57 of the Finance Act enacted?

Section 57 of the Finance Act, cited as Finance Act 2016 57, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

In force As on 09 Oct 2026

Ministry Finance Enacted 27 Jun 2016 Cited by 4 provisions

Section 57 of the Finance Act, 2016 deals with amendment of section 115-O. Amendment of section 115-O. 57. In section 115-O of the Income-tax Act,— (a) | after sub-section (6), the following sub-section shall be inserted, with effect from the 1st day of June, 2016, namely:— '(7) No tax on distributed profits shall be chargeable under this section in respect of any amount d The Act was enacted on 27 Jun 2016.

Amendment of section 115-O.
57. In section 115-O of the Income-tax Act,—
(a) after sub-section (6), the following sub-section shall be inserted, with effect from the 1st day of June, 2016, namely:—
'(7) No tax on distributed profits shall be chargeable under this section in respect of any amount declared, distributed or paid by the specified domestic company by way of dividends (whether interim or otherwise) to a business trust out of its current income on or after the specified date:
Provided that nothing contained in this sub-section shall apply in respect of any amount declared, distributed or paid, at any time, by the specified domestic company by way of dividends (whether interim or otherwise) out of its accumulated profits and current profits up to the specified date.
Explanation.—For the purposes of this sub-section,—
(a) "specified domestic company" means a domestic company in which a business trust has become the holder of whole of the nominal value of equity share capital of the company (excluding the equity share capital required to be held mandatorily by any other person in accordance with any law for the time being in force or any directions of Government or any regulatory authority, or equity share capital held by any Government or Government body);
(b) "specified date" means the date of acquisition by the business trust of such holding as is referred to in clause (a).';
(b) after sub-section (7) as so inserted, the following sub-section shall be inserted with effect from the 1st day of April, 2017, namely:—
'(8) Notwithstanding anything contained in this section, no tax on distributed profits shall be chargeable in respect of the total income of a company, being a unit of an International Financial Services Centre, deriving income solely in convertible foreign exchange, for any assessment year on any amount declared, distributed or paid by such company, by way of dividends (whether interim or otherwise) on or after the 1st day of April, 2017, out of its current income, either in the hands of the company or the person receiving such dividend.
Explanation.—For the purposes of this sub-section,—
(a) "International Financial Services Centre" shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(b) "unit" means a unit established in an International Financial Services Centre, on or after the 1st day of April, 2016;
(c) "convertible foreign exchange" means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 (42 of 1999) and the rules made thereunder.'.
Section 57, The Finance Act, 2016.

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

s. 115 Amendment of Fourth Schedule

Referred to by 4

Questions about Section 57

What does Section 57 of the Finance Act deal with?

Section 57 of the Finance Act is headed "Amendment of section 115-O". Amendment of section 115-O. 57. In section 115-O of the Income-tax Act,— (a) | after sub-section (6), the following sub-section shall be inserted, with effect from the 1st day of June, 2016, namely:— '(7) No tax on distributed profits shall be chargeable under this section in respect of any amount d

How do I find court cases under Section 57 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2016 57, section 57 Finance Act 2016, section 57 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 57 of the Finance Act, and has it changed?

Its own text turns on section 115 (Amendment of Fourth Schedule), so none of them can safely be read on its own. 4 other provisions in this corpus refer back to it.

When was Section 57 of the Finance Act enacted?

Section 57 of the Finance Act, cited as Finance Act 2016 57, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

Other sections of this Act

Fourth Schedule. Fourth Schedule21791 words
Eighth Schedule. Eighth Schedule19903 words
First Schedule. First Schedule8145 words
2. Income-tax3742 words
222. Insertion of new Chapter III F2100 words
70. Substitution of new section for section 1531931 words

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. 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. This page is not a substitute for legal advice.

(a)		after sub-section (6), the following sub-section shall be inserted, with effect from the 1st day of June, 2016, namely:—
		'(7) No tax on distributed profits shall be chargeable under this section in respect of any amount declared, distributed or paid by the specified domestic company by way of dividends (whether interim or otherwise) to a business trust out of its current income on or after the specified date:
		Provided that nothing contained in this sub-section shall apply in respect of any amount declared, distributed or paid, at any time, by the specified domestic company by way of dividends (whether interim or otherwise) out of its accumulated profits and current profits up to the specified date.
		Explanation.—For the purposes of this sub-section,—

(a)		"specified domestic company" means a domestic company in which a business trust has become the holder of whole of the nominal value of equity share capital of the company (excluding the equity share capital required to be held mandatorily by any other person in accordance with any law for the time being in force or any directions of Government or any regulatory authority, or equity share capital held by any Government or Government body);
(b)		"specified date" means the date of acquisition by the business trust of such holding as is referred to in clause (a).';

(b)		after sub-section (7) as so inserted, the following sub-section shall be inserted with effect from the 1st day of April, 2017, namely:—
		'(8) Notwithstanding anything contained in this section, no tax on distributed profits shall be chargeable in respect of the total income of a company, being a unit of an International Financial Services Centre, deriving income solely in convertible foreign exchange, for any assessment year on any amount declared, distributed or paid by such company, by way of dividends (whether interim or otherwise) on or after the 1st day of April, 2017, out of its current income, either in the hands of the company or the person receiving such dividend.
		Explanation.—For the purposes of this sub-section,—

(a)		"International Financial Services Centre" shall have the same meaning as assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005);
(b)		"unit" means a unit established in an International Financial Services Centre, on or after the 1st day of April, 2016;
(c)		"convertible foreign exchange" means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 (42 of 1999) and the rules made thereunder.'.