Clause - 006 - Amendment of section 10.

THE FINANCE BILL, 2017

Certain incomes not included in total income u/s 10

The existing provisions contained in the said section provide that in computing the total income of a previous year of any person, certain categories of income shall not be included in total income.

It is also proposed to insert a new clause (37A) in the said section so as to provide that any income chargeable under the head "Capital gains" in respect of transfer of a specified capital asset arising to an assessee, being an individual or a Hindu undivided family, was the owner of such specified capital asset as on the 2nd June, 2014 and transfers such land under the Land Pooling Scheme covered under the Andhra Pradesh Capital City Land Pooling Scheme (Formulation and Implementation) Rules, 2015 made under the provisions of the Andhra Pradesh Capital Region Development Authority Act, 2014 and the rules, regulations and schemes made under the said Act, shall not be included in the total income of the assessee. It is also proposed to clarify the term "specified capital asset" in this regard.

This amendment will take effect retrospectively from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-2016 and subsequent years.

 

Exemption from capital gains for transfer of land under specified land pooling scheme, applied retrospectively to relevant assessment years. A new exemption excludes from total income capital gains arising to an individual or Hindu undivided family on transfer of land under the Andhra Pradesh Capital City Land Pooling Scheme, provided the assessee was the owner of the specified capital asset as of the statutory cut-off date; the amendment clarifies the term 'specified capital asset' and applies retrospectively to the relevant assessment years.