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Case law › Notifications › 2023 › Notification No. 71/2023 [F. No. 225/103/2023-ITA-II] / SO 3981(E)
Notification 12 September 2023

Notification No. 71/2023 [F. No. 225/103/2023-ITA-II] / SO 3981(E)

Ministry of Finance

What this is

Notification No. 71/2023 [F. No. 225/103/2023-ITA-II] / SO 3981(E) was published on 12 September 2023. Its subject is Ministry of Finance.

What it does

The Central Government, under sub-clause (d) of clause (viiab) of section 47 of the Income-tax Act, 1961, further amends Notification No. 16/2020 (S.O. 986(E)) dated 5 March 2020, which lists the securities whose transfer on a recognised stock exchange in an International Financial Services Centre is not regarded as a transfer. Three new clauses are inserted after clause (vi): '(vii) unit of investment trust', '(viii) unit of a scheme', and '(ix) unit of a Exchange Traded Fund launched under International Financial Services Centres Authority (Fund Management) Regulations, 2022'. The Explanation is expanded by new clauses defining 'Investment Trust' by reference to clause (d) of sub-regulation (1) of regulation 83, and 'Scheme' by reference to clause (ii) of sub-regulation (1) of regulation 2, of those Regulations.

Who it reaches

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 ActNow
s.3s.3
s.47s.2, s.70

The instrument, as the Board published it

The department publishes this one only as a PDF, so the words below were read out of that PDF by machine. That reading can carry its own mistakes — a misread number, a broken line. Check the signed document before you rely on a figure in it.

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.

Note : The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (ii), vide number S.O. 986(E) dated 5th March, 2020, and subsequently amended by Notification No. 89 of 2022 was published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (ii), vide number S.O. 3652(E) dated 03rd August, 2022.

Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.

From when

The date of publication in the Official Gazette (12 September 2023).

What to watch

Where you meet it

In the capital gains computation of a non-resident who has sold IFSC-listed units, and in the exchange's or custodian's assessment of whether tax is attracted on the transfer.

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.

← Notification No. 78/2023 [F.No.300196/22/2022-ITA-I] / SO 4118(E)  ·  Notification No.77 /2023 [F. No. 173/105/2013-ITA-1] / SO 3984(E) →

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.