Notification No. 2

Following stock exchanges as recognised stock exchanges notified under section 43

What this is

Notification No. 2 was published on 25 January 2006. Its subject is Following stock exchanges as recognised stock exchanges notified under section 43.

This notifies a named person, body, fund or instrument for the purpose of a provision. Nothing in it changes the provision itself.

The provisions it speaks to

Left, the provision of the Income-tax Act, 1961 as the instrument itself names it. Right, the section of the Income-tax Act, 2025 that the department’s own concordance maps it to — which is where the same ground is now covered.

Under the 1961 Act	Now
s.43	s.2, s.39, s.41, s.66

The instrument, as the Board published it

The words below are the department’s own, reproduced from its published text. Where the department’s copy carried a publisher’s notes after the instrument, those are not reproduced.

NOTIFICATION NO. 2/2006, DATED 25-1-2006

In exercise of the powers conferred by clause (ii) in the Explanation to clause (d) of the proviso to clause (5) of section 43 of the Income-tax Act, 1961(43 of 1961) read with sub-rule (4) of rule 6DDB of the Income-tax Rules, 1962, the Central Government hereby notifies the following stock exchanges as recognised stock exchanges for the purposes of the said clause with effect from the date of publication of this notification.in the Official Gazette, namely:-

(1) National Stock Exchange of India Limited, Mumbai

(2) Bombay Stock Exchange Limited, Mumbai

2. The Central Government may withdraw the recognition granted to the stock exchange if any of the conditions prescribed in rule 6DDA of the income-tax Rules, 1962, subject to which the recognition is granted, is violated.
3. This notification shall remain in force until the approval granted by the Securities and Exchange Board of India is withdrawn or expires, or this notification is rescinded by the Central Government as provided in sub-rule (5) of rule 6DDB of the Income-tax Rules, 1962.
[F.No. 142/38/2005-TPL]

Explanatory Memorandum in respect of Notification S. O. 89(E)

Dated 25 th January, 2006

The said Notification notifies Bombay Stock Exchange Limited, Mumbai and National Stock Exchange of India Limited, Mumbai as recognised Stock Exchanges for the purposes of clause (d) of the proviso to section 43(5) of the Income-tax Act, 1961. An eligible transaction in respect of trading in derivatives carried out on these two Stock Exchanges with effect from 25th January, 2006 shall not be deemed to be speculative transaction. The expression ‘eligible transaction’ is defined in the Explanation appearing after the proviso to section 43(5) of the Income-tax Act, 1961.

What it names

Rules it names. Rule 6DDA, 6DDB of the Income-tax Rules, 1962. The 1962 Rules were replaced by the Income-tax Rules, 2026, which renumbered nearly everything: a rule number quoted here almost never means the same rule today.

On the same provision

Other instruments in this library that name the same provision of the 1961 Act. They are not necessarily still operative, and a later one may have replaced an earlier one without saying so.

Circular No. 13/2021 — Circular No. 13 of 2021 30 June 2021
Circular No. 17/2020 — Guidelines under section 194 o 4 and section 206C 1 i of the income tax act 1961 29 September 2020
Notification No. 17/2020 [F.No.173/10/2014-ITA-I] / SO 1057(E) — Ministry of Finance 13 March 2020
Notification No. 8/2019 [F.No. 225/344/2018-ITA-II] / SO 772(E) — Ministry of Finance 31 January 2019
Notification No. Notification No. 76/2018 [F. No. 225/261/2018 ITA-II] — [To BE Published in the Gazette of INDIA, Extraordinary, Part II, section 3, Sub-section (ii)] 31 October 2018
Notification No. 35/2018 [F.No. 225/111/2018-1TA-II] — Government of India 31 July 2018

What a notification is. A notification is made under a power the Act itself gives, and within that power it is law — unlike a circular, which only binds the department. Its reach is the reach of the enabling provision and no wider, and the date it carries decides from when it works.

Source: the Income Tax Department’s own published text — its page for this instrument.