PART IV
AMENDMENT TO THE INCOME TAX ACT, 1961
(43 OF 1961)
AMENDMENT
In section 45, after sub-section (2), the following sub-
section shall be inserted, namely:-
`(2A) Where any person has had at any time during
previous year any beneficial interest in any securities, then,
any profits or gains arising from transfer made by the
depository or participant of such beneficial interest in
respect of securities shall be chargeable to income-tax as the
income of the beneficial owner of the previous year in which
such transfer took place and shall not be regarded as income
of the depository who is deemed to be the registered owner of
securities by virtue of sub-section (1) of section 10 of the
Depositories Act, 1996, and for the purposes of -
(i) section 48; and
(ii) proviso to clause (42A) of section 2,
the cost of acquisition and the period of holding of any
securities shall be determined on the basis of the first-in-
first-out method.
Explanation -
For the purposes of this sub-section, the
expressions "beneficial owner", "depository" and "security"
shall have the meanings respectively assigned to them in
clauses (a), (e) and (l) of sub-section (1) of section 2 of
the Depositories Act, 1996'.
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