Extension of tax concession to Special Undertaking of the Unit Trust of India (SUUTI)
The Special Undertaking of the Unit Trust of India (SUUTI) was created vide the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002. SUUTI is the successor of UTI. The mandate of SUUTI is to liquidate Government liabilities on account of the erstwhile UTI. SUUTI is exempt from income-tax or any other tax or any income, profits or gains derived, or any amount received in relation to the specified undertaking uptil 31st March, 2019. It is proposed to extend the exemption for a further period of two years till 31st March 2021.
This amendment will take effect retrospectively from 1st April 2019.
[Clause 186]
Extract of Clause 186 of Finance Bill 2019
186. Amendment of Act 58 of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002
In the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, in section 13, in sub-section (1), for the words, figures and letters “the 31st day of March, 2019”, the words, figures and letters “the 31st day of March, 2021” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2019.
Note on Clause 186 of Finance Bill 2019
Clause 186 of the Bill seeks to amend section 13 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 relating to tax exemption or benefit to continue to have effect.
Sub-section (1) of said section 13 of the aforesaid Act provide that notwithstanding anything contained in the Income-tax Act, 1961, or any other enactment for the time being in force relating to tax or income, profits or gains, no income-tax or any other tax shall be payable by the Administrator upto 31st March, 2019 in respect of any income, profits or gains derived, or any amount received in relation to the specified undertaking.
It is proposed to amend the said sub-section (1) so as to extend the income-tax exemption to the said undertaking from the period beginning on the 1st April, 2019 to the 31st March, 2021.
This amendment will take effect retrospectively from 1st April, 2019.
