Amendment in Rules 6DDA, 6DDB and Appendix-II Notification Issued On 9-3-2011

In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. (1) These rules may be called the Income-tax (First Amendment) Rules, 2011.

(2) They shall come into force on the 1st day of April, 2011.

2. In rule 6DDA of the Income-tax Rules, 1962,–

    (a)    For clause (iv), the following clause shall be substituted, namely: –

“(iv)
the stock exchange shall ensure that transactions (in respect of cash and derivative market) once registered in the system are not erased”;

    (b)    after clause (iv), the following clause shall be inserted, namely: –

“(v) the stock exchange shall ensure that the transactions (in respect of cash and derivative market) once registered in the system are modified only in cases of genuine error and maintain data regarding all transactions (in respect of cash and derivative market) registered in the system which have been modified and submit a monthly statement in Form No. 3BB to the Director General of Income-tax (Intelligence), New Delhi within fifteen days from the last day of each month to which such statement relates.”

3. In rule 6DDB of the Income-tax Rules, 1962, in clause (iii) of sub-rule (2), for the word, brackets and letters “clause (iv)”, the word, brackets and letter “clause (v)” shall be substituted.

4. In Appendix-II of the Income-tax Rules, 1962, after Form No.3BA, the following Form shall be inserted, namely:-

FORM NO. 3BB

[See rule 6DDA]

Monthly statement to be furnished by a stock exchange in respect of transactions in which client codes been modified after registering in the system for the month of…………………

    1.    Name and address of the Stock Exchange: ……………………………….

    2.    Permanent Account Number: ……………………………….

    3.    Details of transaction in which client codes have been modified after registering in system are enclosed in soft copy as annexure.

Verification

I ………………………………. hereby certify that all the particulars furnished above are correct and complete.

Place………………………

Signature of the Principal Officer of the Stock Exchange………………………………

Date………………………

Name and Designation …………………….….

 
 

ANNEXURE TO FORM NO. 3BB

(Soft Copy)

Derivative Market

SI. No.

Transaction ID

Broker’s name & ID

Original Client code

Modified Client Code

Name of the original client

PAN of the original client

Name of the modified client

PAN of the modified client

Scrip name

Quantity

Rate

Total value of transaction

Buy or Sale

Date of transaction

1.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

2.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

3.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

4.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

5.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 
 

Cash Market

SI. No

Transaction ID

Broker’s name & ID

Original Client code

Modified Client Code

Name of the original client

PAN of the original client

Name of the modified client

PAN of the modified client

Scrip name

Quantity

Rate

Total value of transaction

Buy or Sale

Date of transaction

1.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

2.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

3.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

4.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

5.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

    

 

Reference: rule 6DDA of the income tax rules, 1962

Conditions that a stock exchange is required to fulfill to be notified as a recognised stock exchange for the purposes of clause (d) of proviso to clause (5) of section 43

For the purposes of clause (d) of proviso to clause (5) of section 43, a stock exchange shall fulfill the following conditions in respect of trading in derivatives, namely :—

 (i)  the stock exchange shall have the approval of the Securities and Exchange Board of India established under the Securities and Exchange Board of India Act, 1992 (15 of 1992) in respect of trading in derivatives and shall function in accordance with the guidelines or conditions laid down by the Securities and Exchange Board of India;

 (ii)  the stock exchange shall ensure that the particulars of the client (including unique client identity number and PAN) are duly recorded and stored in its databases;

(iii)  the stock exchange shall maintain a complete audit trail of all transactions (in respect of cash and derivative market) for a period of seven years on its system;

(iv) the stock exchange shall ensure that transactions (in respect of cash and derivative market) once registered in the system are not erased;

(v)
the stock exchange shall ensure that the transactions (in respect of cash and derivative market) once registered in the system are modified only in cases of genuine error and maintain data regarding all transactions (in respect of cash and derivative market) registered in the system which have been modified and submit a monthly statement in Form No. 3BB to the Director General of Income-tax (Intelligence), New Delhi within fifteen days from the last day of each month to which such statement relates.

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