CBDT : Notification under section 47 of Income tax Act 1961

Last updated: 12 September 2023

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The Central Board of Direct Taxes (CBDT) has issued a notification amending Section 47 of the Income Tax Act, 1961. This amendment specifically introduces new definitions and inclusions related to units of investment trusts and schemes, including those launched under the International Financial Services Centres Authority (Fund Management) Regulations, 2022. These changes are effective from the date of publication in the Official Gazette.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 12th September, 2023
INCOME-TAX

S.O. 3981(E).—In exercise of the powers conferred by sub-clause (d) of clause (viiab) of section 47 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance, (Department of Revenue), number 16/2020, dated the 5th March, 2020, published in the Gazette of India, Extraordinary, Part-II, Section 3, sub-section (ii), vide number S.O. 986(E), dated 5th March, 2020, namely:-

In the said notification, in the first paragraph, -

(i) after clause (vi), the following clause shall be inserted, namely: -

“(vii) unit of investment trust;

(viii) unit of a scheme;

(ix) unit of a Exchange Traded Fund launched under International Financial Services Centres Authority (Fund Management) Regulations, 2022,”;

(ii) in the Explanation, after clause (c), the following clause shall be inserted, namely: -

“(d) “Investment Trust” shall have the meaning assigned to it in clause (d) of sub-regulation (1) of regulation 83 of the International Financial Services Centres Authority (Fund Management) Regulations, 2022.

(e) “Scheme” shall have the meaning assigned to it in clause (ii) of sub-regulation (1) of regulation 2 of the International Financial Services Centres Authority (Fund Management) Regulations, 2022.”.

2. This notification shall come into force with effect from the date of its publication in the Official Gazette.

[Notification No. 71/2023, F. No. 225/103/2023-ITA-II]
CASTRO JAYAPRAKASH T., Under Secy

FAQ :

The purpose of this notification is to make further amendments to the existing notification under Section 47 of the Income Tax Act, 1961, specifically concerning investment trusts and schemes.

The notification includes units of investment trusts, units of a scheme, and units of an Exchange Traded Fund (ETF) launched under the International Financial Services Centres Authority (Fund Management) Regulations, 2022.

These amendments come into force with effect from the date of their publication in the Official Gazette.

The definitions for 'Investment Trust' and 'Scheme' are assigned in the International Financial Services Centres Authority (Fund Management) Regulations, 2022.