Income Tax Act, 2025
Section 3: Subs. by Act 23 of 2004, s. 25, for clause (b) (w.e.f. 12005).
3. Subs. by Act 23 of 2004, s. 25, for clause (b) (w.e.f. 12005).
453
1[(8) Where—
(a) any person buys or acquires any units within a period of three months prior to the record date;
(b) such person is allotted additional units without any payment on the basis of holding of such
units on such date;
(c) such person sells or transfers all or any of the units referred to in clause (a) within a period of
nine months after such date, while continuing to hold all or any of the additional units referred to in
clause (b),
then, the loss, if any, arising to him on account of such purchase and sale of all or any of such units shall
be ignored for the purposes of computing his income chargeable to tax and notwithstanding anything
contained in any other provision of this Act, the amount of loss so ignored shall be deemed to be the cost
of purchase or acquisition of such additional units referred to in clause (b) as are held by him on the date
of such sale or transfer.]
Explanation.—For the purposes of this section,—
(a) “interest” includes a dividend;
2[(aa) “record date” means such date as may be fixed by—
(i) a company for the purposes of entitlement of the holder of the securities to receive
dividend; or
(ii) a Mutual Fund or the Administrator of the specified undertaking or the specified
company as referred to in the Explanation to clause (35) of section 10, for the purposes of
entitlement of the holder of the units to receive income, or additional unit without any
consideration, as the case may be;
(b) “securities” includes stocks and shares;
(c) securities shall be deemed to be similar if they entitle their holders to the same rights against
the same persons as to capital and interest and the same remedies for the enforcement of those rights,
notwithstanding any difference in the total nominal amounts of the respective securities or in the form
in which they are held or in the manner in which they can be transferred;
2[(d) “unit” shall have the meaning assigned to it in clause (b) of the Explanation to section
115AB.]
3[94A. Special measures in respect of transactions with persons located in notified jurisdictional
area.—(1) The Central Government may, having regard to the lack of effective exchange of information
with any country or territory outside India, specify by notification in the Official Gazette such country or
territory as a notified jurisdictional area in relation to transactions entered into by any assessee.
(2) Notwithstanding anything to the contrary contained in this Act, if an assessee enters into a
transaction where one of the parties to the transaction is a person located in a notified jurisdictional area,
then—
(i) all the parties to the transaction shall be deemed to be associated enterprises within the
meaning of section 92A;
(ii) any transaction in the nature of purchase, sale or lease of tangible or intangible property or
provision of service or lending or borrowing money or any other transaction having a bearing on the
profits, income, losses or assets of the assessee including a mutual agreement or arrangement for
allocation or apportionment of, or any contribution to, any cost or expense incurred or to be incurred
in connection with a benefit, service or facility provided or to be provided by or to the assessee shall
be deemed to be an international transaction within the meaning of section 92B,
and the provisions of sections 92, 92A, 92B, 92C except the second proviso to sub-section
(2), 92CA,92CB, 92CD, 92E and 92F shall apply accordingly.
(w.e.f. 12005).
453
1[
Where—
any person buys or acquires any units within a period of three months prior to the record date;
such person is allotted additional units without any payment on the basis of holding of such
units on such date;
such person sells or transfers all or any of the units referred to in clause
within a period of
nine months after such date, while continuing to hold all or any of the additional units referred to in
clause
as are held by him on the date
of such sale or transfer.]
Explanation.—For the purposes of this section,—
“interest” includes a dividend;
2[
“record date” means such date as may be fixed by—
a company for the purposes of entitlement of the holder of the securities to receive
dividend; or
a Mutual Fund or the Administrator of the specified undertaking or the specified
company as referred to in the Explanation to clause
of section 10, for the purposes of
entitlement of the holder of the units to receive income, or additional unit without any
consideration, as the case may be;
“securities” includes stocks and shares;
securities shall be deemed to be similar if they entitle their holders to the same rights against
the same persons as to capital and interest and the same remedies for the enforcement of those rights,
notwithstanding any difference in the total nominal amounts of the respective securities or in the form
in which they are held or in the manner in which they can be transferred;
2[
“unit” shall have the meaning assigned to it in clause
of the Explanation to section
115AB.]
3[94A. Special measures in respect of transactions with persons located in notified jurisdictional
area.—
The Central Government may, having regard to the lack of effective exchange of information
with any country or territory outside India, specify by notification in the Official Gazette such country or
territory as a notified jurisdictional area in relation to transactions entered into by any assessee.
Notwithstanding anything to the contrary contained in this Act, if an assessee enters into a
transaction where one of the parties to the transaction is a person located in a notified jurisdictional area,
then—
all the parties to the transaction shall be deemed to be associated enterprises within the
meaning of section 92A;
any transaction in the nature of purchase, sale or lease of tangible or intangible property or
provision of service or lending or borrowing money or any other transaction having a bearing on the
profits, income, losses or assets of the assessee including a mutual agreement or arrangement for
allocation or apportionment of, or any contribution to, any cost or expense incurred or to be incurred
in connection with a benefit, service or facility provided or to be provided by or to the assessee shall
be deemed to be an international transaction within the meaning of section 92B,
and the provisions of sections 92, 92A, 92B, 92C except the second proviso to sub-section