6. Consequential Amendments

6.1 Reference to prescribed authority under clause (23C) of section 10

i) First and second proviso to clause (23C) of section 10 of the Act were substituted by new provisos by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020 with effect from the 1st April, 2021. These provisos provided that the application for the approval of any trust under the first regime, shall be filed before the jurisdictional Principal Commissioner or Commissioner and such Principal Commissioner or Commissioner shall grant approval after examination of the application. Earlier such applications were required to be filed before the prescribed authority. Accordingly necessary amendments were carried out. However, the reference to prescribed authority continues at certain places in the clause (23C) of section 10 of the Act.

ii) It is, therefore, proposed to substitute the reference to prescribed authority with Principal Commissioner or Commissioner in sub-clause (iv), (v), (vi) and (via) and nineteenth proviso to clause (23C) of section 10 of the Act

iii) This amendment will take effect from 1st April, 2022.

[Clause 4]

 

 

 

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Full Text:

Budget 2022-23 + FINANCE Bill, 2022

Approval authority for trusts changed to Principal Commissioner or Commissioner, replacing prescribed authority references and procedural filing locus. Proposal to substitute references to the prescribed authority with Principal Commissioner or Commissioner in specified sub clauses and the nineteenth proviso of clause (23C) of section 10 to align textual references with the existing filing and approval regime for trust applications under the first regime; the amendment is corrective and consequential to prior 2020 changes.