Insertion of new section 50AA

In force Act 8 of 2023 As on 07 Oct 2026

Act 8 of 2023 Ministry Finance Cited by 4 provisions

Section 24 of the Finance Act, 2023 deals with insertion of new section 50AA. 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.

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.'.
Section 24, The Finance Act, 2023 (Act 8 of 2023).

Cross-references

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

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Referred to by 4

Questions about Section 24

What does Section 24 of the Finance Act deal with?

Section 24 of the Finance Act is headed "Insertion of new section 50AA". 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.

How do I find court cases under Section 24 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 2023 24, section 24 Finance Act 2023, section 24 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 24 of the Finance Act, and has it changed?

Its own text turns on section 2 (Income-tax), section 48 (Amendment of section 94B), Income-tax Act 50A (Special provision for cost of acquisition in case of depreciable asset), so none of them can safely be read on its own. 4 other provisions in this corpus refer back to it.

When was the Finance Act enacted?

Finance Act was enacted in 2023 as Act 8 of 2023. India Code records no commencement date for it. It is in force as at the date shown on this page.

Other sections of this Act

First Schedule. First Schedule10190 words
2. Income-tax8337 words
Fourth Schedule. Fourth Schedule6615 words
5. Amendment of section 102717 words
150. Substitution of new section for section 1101621 words
54. Insertion of new section 115BAE1218 words

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(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,

(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: