The Central Board of Direct Taxes (CBDT) on September 12, 2023, issued the notification to amend notification no. 16/2020 dated March 05, 2020, which notified certain securities under Section 47(viiab)(d) of the Income Tax Act, 1961 which states transactions that shall not be listed as transfers for the purpose of capital gains tax in respect of non-residents and foreign companies.
The following has been amended namely: -
• After clause (vi) the following shall be inserted namely: -
“(vii) unit of investment trust;
(viii) unit of a scheme;
(ix) unit of an Exchange Traded Fund launched under International Financial Services Centres Authority (Fund Management) Regulations, 2022”
• 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”
This shall come into force on September 12, 2023
[Notification No. 71/2023]
