DIRECT TAXES CODE BILL, 2009

Short title, extent and commencement

Liability to pay income-tax

Scope of total income

Residence in India

Income deemed to accrue in India

Income deemed to be received in the financial year

Total income to include income of any other person

Total income to include income of spouse, minor child, etc.

Income not included in the total income

Persons not liable to income-tax

Interpretation

Classification of sources of income

Computation of income from special sources

Computation of income from ordinary sources

Apportionment of income between spouses governed by Portuguese Civil Code

Avoidance of double taxation

Expenditure not to be allowed as deduction

Amount not deductible where tax is not deducted at source

Income from Employment

Computation of income from Employment

Scope of gross salary

Deductions from gross salary

Income from House Property

Computation of income from house property

Scope of gross rent

Deductions from gross rent

Special provision for advance rent received

Income from business

Distinct and separate business

Computation of income from business

Gross earnings

Deduction for business expenditure

Deduction for operating expenditure

Deductions for permitted finance charges

Computation of capital allowances

Computation of depreciation

Deduction for initial depreciation

Deduction for terminal allowance

Deduction for scientific research and development allowance

Profit on transfer of a business capital asset

Special provisions relating to business reorganisation

Meaning of actual cost

Meaning of written down value, adjusted value of assets, etc.

Capital gains

Income from certain transfers not to be treated as capital gains

Financial year of taxability

Computation of income from the transfer of any investment asset

Full value of the consideration

Deduction for cost of acquisition, inflation-adjustment etc.

Indexed cost of acquisition

Cost of acquisition of an investment asset

Cost of improvement

Relief for rollover of investment asset

Income from residuary sources

Computation of income from residuary sources

Gross residuary income

Deductions

Aggregation of income under the class 'Income from Ordinary Sources'

Aggregation of income under the class 'Income from Special Sources'

Determination of total income

Special provisions relating to business reorganisation

Aggregation of losses in case of change in constitution of unincorporated body

Aggregation of losses in the case of certain companies

Aggregation of loss not to be allowed in the case of filing of return after due date

Deductions to be made in computing total income

Deductions for savings

Deductions in respect of children's education

Deduction in respect of interest on loan taken for higher education

Deduction in respect of health insurance premia

Deduction in respect of medical treatment, etc.

Deduction in respect of maintenance of a disabled dependant

Deduction in respect of donations to certain funds, non-profit organisations, etc.

Deduction in respect of political contributions

Deduction in respect of interest income on bonds

Deduction in respect of income of Investor Protection Fund

Deduction in respect of certain income of trade unions

Deduction in respect of royalty income, etc., of authors of certain books

Deduction in respect of royalty on patents

Deduction in case of a person with disability

Deduction in respect of income of co-operative society from banking activities

Deduction in respect of income of primary co-operative societies

Expenditure for promoting family planning and preventing HIV-aids

Maintenance of accounts

Tax audit

Method of accounting

Applicability of this Chapter

Total income of a non-profit organisation

Computation of total income of a non-profit organisation

Gross receipts in the case of a non-profit organisation

Outgoings in the case of a non-profit organisation

Prohibited forms and modes of investment

Deemed use or application of funds or assets for the benefit of interested person

Registration of the non-profit organisation

Consequences of conversion of a non-profit organisation

Provisions of this chapter not to apply in certain cases

Interpretations

Computation of the value of gross assets

Preparation of balance sheet for computing gross assets

Tax on dividends distributed

Tax on branch profits

Charge of wealth-tax

Computation of net wealth

Net wealth to include certain assets

Disallowance of expenditure having regard to fair market value

Computation of income from international transaction having regard to arm's length price

Computation of arm's length price

Advance pricing agreement

Avoidance of income-tax by transactions resulting in transfer of income to nonresidents

Avoidance of tax by sale and buy-back transaction in security

Avoidance of tax by buy and sale-back transaction in security

Broken-period income acruing from a debt instrument

General anti-avoidance rule

Interpretation

Presumption of purpose

Establishment of institutions

Establishment of the Central Board of Direct Taxes

Management of the Board

Delegation

Term of office and conditions of service of Chairman and Members of the Board

Meetings

Secretariat of the Board

Attached offices of the Board

Subordinate offices of the Board

Functions of the Board

Grants by the Central Government

Accounts and audit

Power of Central Government to issue directions

Returns and reports

Establishment of the Income Tax Department

Income-tax authorities

Appointment and control of income-tax authorities

Power of higher authorities

Instructions by the Board

Jurisdiction of income-tax authorities

Jurisdiction of Assessing Officers

Power to transfer cases

Change of incumbent

Powers regarding discovery, production of evidence, etc.

Search and seizure

Powers to requisition material taken into custody

Retention and release of books of account or documents seized or requisitioned

Delivery of material belonging to other persons

Retention and application of seized or requisitioned assets

Power to call for information

Power of survey

Power to disclose information in respect of assessee

Proceedings before tax authorities to be judicial proceedings

Self-reporting of tax bases

Reporting of international transaction

Tax Return Preparer

Issue of notice to stop-filer

Issue of notice to non-filer

Self-assessment tax

Acknowledgment of return

Processing of return

Selection of return for scrutiny assessment

Notice for scrutiny assessment

Special Audit

Determination of value of assets

Determination of arm's length price

Determination of an impermissible avoidance arrangement and consequences thereof

Assessment

Best judgement assessment

Directions for assessment by Joint Commissioner or Commissioner

Direction for assessment by Dispute Resolution Panel

Reopening of assessment

Rectification of mistake

Notice of demand

Time limits for completion of assessment or reassessments

Representative assessee

Rights and obligations of a representative assessee

Direct assessment or recovery not barred

Remedy against property in cases of representative assessee

Assessment upon business reorganisation

Assessment after partition of a Hindu undivided family

Assessment of non-resident in respect of the shipping business

Assessment of persons leaving India

Assessment of entity formed for a particular event or purpose

Assessment of persons likely to transfer property to avoid tax

Assessment of firm in case of change in its constitution

Assessment on the retirement or death of the participant

Assessment of a deductor or collector

Appeal to Commissioner (Appeals)

Form of appeal and limitation

Procedure in appeal

Powers of the Commissioner (Appeals)

Appellate Tribunal

Appeals to the Appellate Tribunal

Stay of demand by the Appellate Tribunal

Orders of the Appellate Tribunal

Procedure of the Appellate Tribunal

Appeals to the National Tax Tribunal

Appeals to the Supreme Court

Revision of orders prejudicial to revenue

Liability to deduct tax at source

Payment of income and deduction of tax

Certificate for no deduction of tax

Payment of tax deducted, certificate to deductee, etc.

Reporting of payments without deduction of tax

No deduction of tax in certain cases

Credit for tax deducted

Tax collection at source

Certain definitions

Liability to pay advance income-tax

Tax relief for arrears or advance receipts

Foreign tax credit

F. - Payment of dividend distribution tax

Payment of wealth-tax

Interest payable to the Central Government

Interest payable to the assessee

Manner of computation of interest and waiver thereof to be prescribed

Refunds

Recovery by Assessing Officer

Recovery by Tax Recovery Officer

Modes of recovery

Tax Recovery Officer by whom recovery is to be effected

Recovery of tax arrear in respect of non-resident from his assets

Recovery in the case of a company in liquidation

Liability of manager of a company

Joint and several liability of participants

Recovery of tax in pursuance of agreements with foreign countries

Tax clearance certificate in certain cases

Recovery by suit or under other law not effected

Penalty for under-reporting of tax base

Penalty where search has been initiated

Penalty for other defaults

Procedure

Bar of limitation for imposing penalty

Chapter not in derogation of any other law or any other provision of this Code

Contravention of any restraint order

Failure to comply with the provisions of clause (d) of sub-section (2) of section 139

Removal, concealment, transfer or delivery of property to thwart tax recovery

Failure to comply with the provisions of sub-sections (1) and (3) of section 218

Failure to pay the tax deducted or collected at source or to pay the dividend distribution tax

Willful attempt to evade tax, etc.

Failure to furnish returns of tax bases

Failure to furnish other returns, statements, reports, etc.

Failure to comply with direction under this Code

False statement in verification, etc.

Falsification of books of account or documents, etc.

Abetment of false return, etc.

Offences by companies, etc.

Proof of entries in records or documents

Presumption as to assets, books of account, etc., in certain cases

Presumption as to culpable mental state

Prosecution to be at the instance of Chief Commissioner or Commissioner

Certain offences to be non-cognizable

Disclosure of information by public servants

Definitions

Scope of Ruling

Authority for Advance Ruling

Procedure for advance ruling

Income-tax authority or Appellate Tribunal not to proceed in certain cases

Applicability of Advance Ruling

Advance Ruling to be void in certain circumstances

Powers of the Authority

Procedure of Authority

Agreement with foreign countries

Permanent account number

Tax account number

Document Identification Number

Certain transfers to be void

Provisional attachment to protect revenue in certain cases

Service of notice generally

Authentication of notices and other documents

Notice deemed to be valid in certain circumstances

Service of notice when family is disrupted or unincorporated body is dissolved

Publication of information respecting assessees in certain cases

Appearance by registered valuer in certain matters

Appearance by authorised representative

Rounding off of tax bases, tax, etc.

Indemnity

Power to tender immunity from prosecution

Cognizance of offences

Section 360 of the Code of Criminal Procedure, 1973, and the Probation of Offenders Act, 1958, not to apply

Return of tax base, etc., not to be invalid on certain grounds

Presumption as to material found

Bar of suits in civil courts

Power to rescind

Power to make rules

Rules and certain notifications to be placed before Parliament

Repeals and savings

Power to remove difficulties

Definitions

Interpretation

THE FIRST SCHEDULE - RATES OF INCOME-TAX

THE SECOND SCHEDULE - RATES OF OTHER TAXES

THE THIRD SCHEDULE - RATES FOR DEDUCTION OF TAX AT SOURCE

THE FOURTH SCHEDULE - Rates for deduction of tax at source in the case of non-resident deductee

THE FIFTH SCHEDULE - PROCEDURE FOR RECOVERY OF TAX

THE SIXTH SCHEDULE - Income not included in the total income

THE SEVENTH SCHEDULE - Persons exempt

THE EIGHTH SCHEDULE - COMPUTATION OF PROFITS OF THE INSURANCE BUSINESS

THE NINTH SCHEDULE - COMPUTATION OF INCOME FROM ANY OTHER SPECIAL SOURCE

THE TENTH SCHEDULE - COMPUTATION OF PROFITS OF BUSINESS OF OPERATING A QUALIFYING SHIP

THE ELEVENTH SCHEDULE - COMPUTATION OF PROFITS OF THE BUSINESS OF MINERAL OIL OR NATURAL GAS

THE TWELVETH SCHEDULE - COMPUTATION OF PROFITS OF THE BUSINESS OF DEVELOPING A SPECIAL ECONOMIC ZONE

THE THIRTEENTH SCHEDULE - COMPUTATION OF PROFITS OF A SPECIFIED BUSINESS

THE FOURTEENTH SCHEDULE - DETERMINATION OF INCOME ON A PRESUMPTIVE BASIS

THE FIFTEENTH SCHEDULE - DEPRECIATION

THE SIXTEENTH SCHEDULE - DEDUCTION FOR DONATION

SEVENTEENTH SCHEDULE - DETERMINATION OF COST OF ACQUISITION IN CERTAIN CASES

THE EIGHTTEENTH SCHEDULE - Minerals and Group of Associated Minerals