Section 3 of Finance Act 2018 : Amendment of section 2 of Income Tax

By | April 1, 2018
(Last Updated On: April 14, 2018)

Section 3 of Finance Act 2018

[Section 3 of Finance Act 2018 deals with Amendment of section 2. and is covered in CHAPTER III DIRECT TAXES]

Amendment of section 2.

3. In section 2 of the Income-tax Act,—

(a)in clause (22), after Explanation 2, the following Explanation shall be inserted, namely:—
“Explanation 2A.— In the case of an amalgamated company, the accumulated profits, whether capitalised or not, or loss, as the case may be, shall be increased by the accumulated profits, whether capitalised or not, of the amalgamating company on the date of amalgamation.”;
(b)with effect from the 1st day of April, 2019,—
(i)in clause (24),—
(A)after sub-clause (xii), the following sub-clause shall be inserted, namely:—
“(xiia)the fair market value of inventory referred to in clause (via) of section 28;”;
(B)after sub-clause (xviia), the following sub-clause shall be inserted, namely:—
“(xviib)any compensation or other payment referred to in clause (xi) of sub-section (2) of section 56;”;
(ii)in clause (42A),—
(A)in Explanation 1, in clause (i), after sub-clause (b), the following sub-clause shall be inserted, namely:—
“(ba)in the case of a capital asset referred to in clause (via) of section 28, the period shall be reckoned from the date of its conversion or treatment;”;
(B)in Explanation 4, for the words, brackets and figures “the Explanation to clause (38) of section 10″, the words, brackets, letters and figures “clause (a) of the Explanation to section 112A” shall be substituted.

Finance Act 2018 : Assented by President : Download Print Notification

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