- In section 43 of the Income-tax Act, in clause (5), with effect from the 1st day of April, 2014,-(I)in the proviso,-(A)in clause (d), after the words "a recognised stock exchange;", the word "or" shall be inserted;(B)after clause (d), the following clause shall be inserted, namely:-"(e) an eligible transaction in respect of trading in commodity derivatives carried out in a recognised association,";(II)the Explanation shall be numbered as "Explanation /" thereof and in the Explanation I as so numbered, for the words "this clause", the word, brackets and letter "clause (d)" shall be substituted;(III)after Explanation I as so numbered, the following Explanation shall be inserted, namely:-'Explanation 2. - For the purposes of clause (e), the expressions-(i)"commodity deriviative" shall have the meaning as assigned to it in Chapter VII of the Finance Act, 2013;(ii)"eligible transaction" means any transaction,-(A)carried out electronically on screen-based systems through member or an intermediary, registered under the bye-laws, rules and regulations of the recognised association for trading in commodity derivative in accordance with the provisions of the Forward Contracts (Regulation) Act, 1952 and the rules, regulations or bye-laws made or 74 of 1952. directions issued under that Act on a recognised association; and(B)which is supported by a time stamped contract note issued by such member or intermediary to every client indicating in the contract note, the unique client identity number allotted under the Act, rules, regulations or bye-laws referred to in sub-clause (A), unique trade number and permanent account number allotted under this Act;(iii)"recognised association" means a recognised association as referred 74 of 1952. to in clause (j) of section 2 of the Forward Contracts (Regulation) Act, 1952 and which fulfils such conditions as may be prescribed and is notified by the Central Government for this purpose;'.
