Section 25 of The Securities and Exchange Board of India Act, 1992
Notwithstanding anything contained in the Wealth-tax Act, 1957 (27 of 1957), the Income-tax Act, 1961 (43 of 1961) or any other enactment for the time being in force relating to tax on wealth, income, profits or gains—
- (a)the Board;
- (b)the existing Securities and Exchange Board from the date of its constitution to the date of establishment of the Board, 6. The words “of his” omitted by s. 187, ibid. (w.e.f. 8-3-2019). shall not be liable to pay wealth-tax, income-tax or any other tax in respect of their wealth, income, profits or gains derived.
↩1.Ins. by Act 9 of 1995, s. 12 (w.e.f. 25-1-1995).
↩2.Subs. by s. 13, ibid., for section 24 (w.e.f. 25-1-1995).
↩3.Ins. by Act 13 of 2018, s. 187 (w.e.f. 8-3-2019).
↩4.Subs. by Act 59 of 2002, s. 28, for “one year, or with fine, or with both” (w.e.f. 29-10-2002).
↩5.Ins. by Act 13 of 2018, s. 187 (w.e.f. 8-3-2019).
↩7.Subs. by Act 59 of 2002, s. 28, for certain words (w.e.f. 29-10-2002).
↩8.Ins. by s. 29, ibid. (w.e.f. 29-10-2002).
Summary
- The Securities and Exchange Board of India is exempt from paying taxes on its wealth, income, profits, or gains.
- This exemption also applies to the previous version of the Board (the existing Securities and Exchange Board) for the period between its constitution and the establishment of the new Board.
- This tax freedom overrides the Wealth-tax Act, 1957, the Income-tax Act, 1961, and any other similar tax laws currently in force.
Practical examples
FAQ
1. Does this section give tax breaks to ordinary investors?
No, this exemption applies strictly to the Board and the historical existing Board.
2. Which specific taxes is the Board excused from paying?
The Board is excused from wealth-tax, income-tax, or any other tax relating to wealth, income, profits, or gains.
3. Does this exemption override the standard national tax laws?
Yes, it applies despite anything written in the Wealth-tax Act, 1957, or the Income-tax Act, 1961.
Test yourself
Q1.Under Section 25 of The Securities and Exchange Board of India Act, 1992, which entity enjoys an exemption from paying wealth and income taxes?
Q2.Under Section 25 of The Securities and Exchange Board of India Act, 1992, from which specific tax laws is the Board explicitly exempted?
Q3.Under Section 25 of The Securities and Exchange Board of India Act, 1992, does the tax exemption cover the older, pre-establishment version of the Board?
Q4.Under Section 25 and Section 24 (Offences) of The Securities and Exchange Board of India Act, 1992, if a corporate broker commits a severe financial offence under Section 24, can they use Section 25 to avoid paying their penalty?