Penalty for failure to subscribe to eligible capital issue removed as the provision is proposed to be omitted. Clause 76 proposes omission of section 271BB of the Income tax Act, which authorised a penalty equal to twenty percent of any unsubscribed amount for failure to subscribe to units issued under schemes referenced in section 88A. The omission is justified by the prior repeal of section 88A, rendering the penalty provision functionally redundant; the amendment takes effect from 1 April 2025.
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Provisions expressly mentioned in the judgment/order text.
Penalty for failure to subscribe to eligible capital issue removed as the provision is proposed to be omitted.
Clause 76 proposes omission of section 271BB of the Income tax Act, which authorised a penalty equal to twenty percent of any unsubscribed amount for failure to subscribe to units issued under schemes referenced in section 88A. The omission is justified by the prior repeal of section 88A, rendering the penalty provision functionally redundant; the amendment takes effect from 1 April 2025.
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