(1) Where the owner of any securities after the sale or transfer of his securities repurchases or acquires them, or purchases or acquires similar securities, and in consequence of such transaction is payable by the owner in consideration of the sale or transfer of the original securities if any interest is not received by the owner, the aforesaid interest payable shall, for all purposes of this Act, be deemed to be the income of such owner and not become the income of any other person, whether the aforesaid interest payable is taxed otherwise than as provided in this sub-section.

(2) Where a person has a beneficial interest in any securities for any period of the income year and does not receive such income as a result of dealing in such securities or the income arising therefrom during the said year or the amount received by him as income, if from the said securities is less than the amount that could have been accumulated and proportionately deposited day after day at the proportionate rate of the said period, but in that case the total income arising from such securities during the said period shall be deemed as income of the said person.

(3) Where any person engaged in the business of dealing in securities, in whole or in part, purchases or acquires securities from any other person and re-sells or transfers the said securities to such other person or sells or transfers similar securities to him and as a result of the said transaction although the interest payable by him on the securities so purchased or acquired is not treated as his income by reason of the provisions of subsection (1), in that case, for any purpose of this Act in relation to the said transaction, any income arising from such business or for the purpose of computing any kind of income or loss will not be considered.

(4) The Deputy Commissioner of Taxes shall, by notice in writing, within the period specified in the notice, which shall not be less than 28 (twenty-eight) days, any person to file a description of all the securities owned by him or of the securities in which such person had a beneficial interest at the time specified in the notice and for the other purposes of this section and for the purpose of finalizing the tax of the interest received on the securities, the Deputy Commissioner of Taxes may issue such notice to furnish such other information as he may consider necessary.

(5) For the purposes of this section-

(a) “interest” shall also include dividends; and

(b) such securities shall mean all securities, whatever the difference may be in the aggregate nominal value of the securities concerned, or in the form in which they are held or in the manner of transfer, which confer upon the owner the same right to the interest and profits of the same person and are identical, provides opportunities in establishing such rights;