Section 17 of Finance Act 2018
[Section 17 of Finance Act 2018 deals with Amendment of section 47. and is covered in CHAPTER III DIRECT TAXES]
Amendment of section 47.
17. In section 47 of the Income-tax Act, after clause (viiaa) [as inserted by section 23 of the Finance Act, 2017 (7 of 2017)], the following clause shall be inserted with effect from the 1st day of April, 2019, namely:—
| ‘(viiab) | any transfer of a capital asset, being— |
| (a) | bond or Global Depository Receipt referred to in sub-section (1) of section 115AC; or | |
| (b) | rupee denominated bond of an Indian company; or | |
| (c) | derivative, made by a non-resident on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in foreign currency. | |
| Explanation.— For the purposes of this clause,— |
| (a) | “International Financial Services Centre” shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005); | |
| (b) | “recognised stock exchange” shall have the meaning assigned to it in clause (ii) of Explanation 1 to clause (5) of section 43; | |
| (c) | “derivative” shall have the meaning assigned to it in clause (ac) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).’. |