DIRECT TAXES CODE BILL, 2009

Chapter: I
PRELIMINARY
Clause 1	:	Short title, extent and commencement
Chapter: II
BASIS OF CHARGE
Clause 2	:	Liability to pay income-tax
Clause 3	:	Scope of total income
Clause 4	:	Residence in India
Clause 5	:	Income deemed to accrue in India
Clause 6	:	Income deemed to be received in the financial year
Clause 7	:	Total income to include income of any other person
Clause 8	:	Total income to include income of spouse, minor child, etc.
Clause 9	:	Income not included in the total income
Clause 10	:	Persons not liable to income-tax
Chapter: III - Part-A
COMPUTATION OF TOTAL INCOME - A.-General
Clause 11	:	Interpretation
Clause 12	:	Classification of sources of income
Clause 13	:	Computation of income from special sources
Clause 14	:	Computation of income from ordinary sources
Clause 15	:	Apportionment of income between spouses governed by Portuguese Civil Code
Clause 16	:	Avoidance of double taxation
Clause 17	:	Expenditure not to be allowed as deduction
Clause 18	:	Amount not deductible where tax is not deducted at source
Chapter: III - Part-B
COMPUTATION OF TOTAL INCOME - B. - Income from Employment
Clause 19	:	Income from Employment
Clause 20	:	Computation of income from Employment
Clause 21	:	Scope of gross salary
Clause 22	:	Deductions from gross salary
Chapter: III - Part-C
COMPUTATION OF TOTAL INCOME - C. - Income from house property
Clause 23	:	Income from House Property
Clause 24	:	Computation of income from house property
Clause 25	:	Scope of gross rent
Clause 26	:	Deductions from gross rent
Clause 27	:	Special provision for advance rent received
Chapter: III - Part-D
COMPUTATION OF TOTAL INCOME - D. - Income from business
Clause 28	:	Income from business
Clause 29	:	Distinct and separate business
Clause 30	:	Computation of income from business
Clause 31	:	Gross earnings
Clause 32	:	Deduction for business expenditure
Clause 33	:	Deduction for operating expenditure
Clause 34	:	Deductions for permitted finance charges
Clause 35	:	Computation of capital allowances
Clause 36	:	Computation of depreciation
Clause 37	:	Deduction for initial depreciation
Clause 38	:	Deduction for terminal allowance
Clause 39	:	Deduction for scientific research and development allowance
Clause 40	:	Profit on transfer of a business capital asset
Clause 41	:	Special provisions relating to business reorganisation
Clause 42	:	Meaning of actual cost
Clause 43	:	Meaning of written down value, adjusted value of assets, etc.
Chapter: III - Part-E
COMPUTATION OF TOTAL INCOME - E. - Capital gains
Clause 44	:	Capital gains
Clause 45	:	Income from certain transfers not to be treated as capital gains
Clause 46	:	Financial year of taxability
Clause 47	:	Computation of income from the transfer of any investment asset
Clause 48	:	Full value of the consideration
Clause 49	:	Deduction for cost of acquisition, inflation-adjustment etc.
Clause 50	:	Indexed cost of acquisition
Clause 51	:	Cost of acquisition of an investment asset
Clause 52	:	Cost of improvement
Clause 53	:	Relief for rollover of investment asset
Chapter: III - Part-F
COMPUTATION OF TOTAL INCOME - F. - Income from residuary sources
Clause 54	:	Income from residuary sources
Clause 55	:	Computation of income from residuary sources
Clause 56	:	Gross residuary income
Clause 57	:	Deductions
Chapter: III - Part-G
COMPUTATION OF TOTAL INCOME - G. - Aggregation of income
Clause 58	:	Aggregation of income under the class 'Income from Ordinary Sources'
Clause 59	:	Aggregation of income under the class 'Income from Special Sources'
Clause 60	:	Determination of total income
Clause 61	:	Special provisions relating to business reorganisation
Clause 62	:	Aggregation of losses in case of change in constitution of unincorporated body
Clause 63	:	Aggregation of losses in the case of certain companies
Clause 64	:	Aggregation of loss not to be allowed in the case of filing of return after due date
Chapter: III - Part-H
COMPUTATION OF TOTAL INCOME - H. - Tax incentives
Clause 65	:	Deductions to be made in computing total income
Clause 66	:	Deductions for savings
Clause 67	:	Deductions in respect of children's education
Clause 68	:	Deduction in respect of interest on loan taken for higher education
Clause 69	:	Deduction in respect of health insurance premia
Clause 70	:	Deduction in respect of medical treatment, etc.
Clause 71	:	Deduction in respect of maintenance of a disabled dependant
Clause 72	:	Deduction in respect of donations to certain funds, non-profit organisations, etc.
Clause 73	:	Deduction in respect of political contributions
Clause 74	:	Deduction in respect of interest income on bonds
Clause 75	:	Deduction in respect of income of Investor Protection Fund
Clause 76	:	Deduction in respect of certain income of trade unions
Clause 77	:	Deduction in respect of royalty income, etc., of authors of certain books
Clause 78	:	Deduction in respect of royalty on patents
Clause 79	:	Deduction in case of a person with disability
Clause 80	:	Deduction in respect of income of co-operative society from banking activities
Clause 81	:	Deduction in respect of income of primary co-operative societies
Clause 82	:	Expenditure for promoting family planning and preventing HIV-aids
Chapter: III - Part-I
COMPUTATION OF TOTAL INCOME - I. - Maintainance of accounts and other related matters
Clause 83	:	Maintenance of accounts
Clause 84	:	Tax audit
Clause 85	:	Method of accounting
Chapter: IV
SPECIAL PROVISIONS RELATING TO COMPUTATION OF TOTAL INCOME OF NON-PROFIT ORGANISATIONS
Clause 86	:	Applicability of this Chapter
Clause 87	:	Total income of a non-profit organisation
Clause 88	:	Computation of total income of a non-profit organisation
Clause 89	:	Gross receipts in the case of a non-profit organisation
Clause 90	:	Outgoings in the case of a non-profit organisation
Clause 91	:	Prohibited forms and modes of investment
Clause 92	:	Deemed use or application of funds or assets for the benefit of interested person
Clause 93	:	Registration of the non-profit organisation
Clause 94	:	Consequences of conversion of a non-profit organisation
Clause 95	:	Provisions of this chapter not to apply in certain cases
Clause 96	:	Interpretations
Chapter: V
COMPUTATION OF THE VALUE OF GROSS ASSETS
Clause 97	:	Computation of the value of gross assets
Clause 98	:	Preparation of balance sheet for computing gross assets
Chapter: VI
SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME
Clause 99	:	Tax on dividends distributed
Chapter: VII
CHARGE OF BRANCH PROFITS TAX
Clause 100	:	Tax on branch profits
Chapter: VIII
WEALTH-TAX
Clause 101	:	Charge of wealth-tax
Clause 102	:	Computation of net wealth
Clause 103	:	Net wealth to include certain assets
Chapter: IX
SPECIAL PROVISIONS TO PREVENT EVASION
Clause 104	:	Disallowance of expenditure having regard to fair market value
Clause 105	:	Computation of income from international transaction having regard to arm's length price
Clause 106	:	Computation of arm's length price
Clause 107	:	Advance pricing agreement
Clause 108	:	Avoidance of income-tax by transactions resulting in transfer of income to nonresidents
Clause 109	:	Avoidance of tax by sale and buy-back transaction in security
Clause 110	:	Avoidance of tax by buy and sale-back transaction in security
Clause 111	:	Broken-period income acruing from a debt instrument
Clause 112	:	General anti-avoidance rule
Clause 113	:	Interpretation
Clause 114	:	Presumption of purpose
Chapter: X - Part-A
TAX ADMINISTRATION AND PROCEDURE - A.-Tax administration
Clause 115	:	Establishment of institutions
Clause 116	:	Establishment of the Central Board of Direct Taxes
Clause 117	:	Management of the Board
Clause 118	:	Delegation
Clause 119	:	Term of office and conditions of service of Chairman and Members of the Board
Clause 120	:	Meetings
Clause 121	:	Secretariat of the Board
Clause 122	:	Attached offices of the Board
Clause 123	:	Subordinate offices of the Board
Clause 124	:	Functions of the Board
Clause 125	:	Grants by the Central Government
Clause 126	:	Accounts and audit
Clause 127	:	Power of Central Government to issue directions
Clause 128	:	Returns and reports
Clause 129	:	Establishment of the Income Tax Department
Clause 130	:	Income-tax authorities
Clause 131	:	Appointment and control of income-tax authorities
Clause 132	:	Power of higher authorities
Clause 133	:	Instructions by the Board
Clause 134	:	Jurisdiction of income-tax authorities
Clause 135	:	Jurisdiction of Assessing Officers
Clause 136	:	Power to transfer cases
Clause 137	:	Change of incumbent
Clause 138	:	Powers regarding discovery, production of evidence, etc.
Clause 139	:	Search and seizure
Clause 140	:	Powers to requisition material taken into custody
Clause 141	:	Retention and release of books of account or documents seized or requisitioned
Clause 142	:	Delivery of material belonging to other persons
Clause 143	:	Retention and application of seized or requisitioned assets
Clause 144	:	Power to call for information
Clause 145	:	Power of survey
Clause 146	:	Power to disclose information in respect of assessee
Clause 147	:	Proceedings before tax authorities to be judicial proceedings
Chapter: X - Part-B
TAX ADMINISTRATION AND PROCEDURE - B.-Assessment procedure
Clause 148	:	Self-reporting of tax bases
Clause 149	:	Reporting of international transaction
Clause 150	:	Tax Return Preparer
Clause 151	:	Issue of notice to stop-filer
Clause 152	:	Issue of notice to non-filer
Clause 153	:	Self-assessment tax
Clause 154	:	Acknowledgment of return
Clause 155	:	Processing of return
Clause 156	:	Selection of return for scrutiny assessment
Clause 157	:	Notice for scrutiny assessment
Clause 158	:	Special Audit
Clause 159	:	Determination of value of assets
Clause 160	:	Determination of arm's length price
Clause 161	:	Determination of an impermissible avoidance arrangement and consequences thereof
Clause 162	:	Assessment
Clause 163	:	Best judgement assessment
Clause 164	:	Directions for assessment by Joint Commissioner or Commissioner
Clause 165	:	Direction for assessment by Dispute Resolution Panel
Clause 166	:	Reopening of assessment
Clause 167	:	Rectification of mistake
Clause 168	:	Notice of demand
Clause 169	:	Time limits for completion of assessment or reassessments
Chapter: X - Part-C
TAX ADMINISTRATION AND PROCEDURE - C.-Procedure for assessment in special cases
Clause 170	:	Representative assessee
Clause 171	:	Rights and obligations of a representative assessee
Clause 172	:	Direct assessment or recovery not barred
Clause 173	:	Remedy against property in cases of representative assessee
Clause 174	:	Assessment upon business reorganisation
Clause 175	:	Assessment after partition of a Hindu undivided family
Clause 176	:	Assessment of non-resident in respect of the shipping business
Clause 177	:	Assessment of persons leaving India
Clause 178	:	Assessment of entity formed for a particular event or purpose
Clause 179	:	Assessment of persons likely to transfer property to avoid tax
Clause 180	:	Assessment of firm in case of change in its constitution
Clause 181	:	Assessment on the retirement or death of the participant
Clause 182	:	Assessment of a deductor or collector
Chapter: X - Part-D
TAX ADMINISTRATION AND PROCEDURE - D.-Appeals and revision
Clause 183	:	Appeal to Commissioner (Appeals)
Clause 184	:	Form of appeal and limitation
Clause 185	:	Procedure in appeal
Clause 186	:	Powers of the Commissioner (Appeals)
Clause 187	:	Appellate Tribunal
Clause 188	:	Appeals to the Appellate Tribunal
Clause 189	:	Stay of demand by the Appellate Tribunal
Clause 190	:	Orders of the Appellate Tribunal
Clause 191	:	Procedure of the Appellate Tribunal
Clause 192	:	Appeals to the National Tax Tribunal
Clause 193	:	Appeals to the Supreme Court
Clause 194	:	Revision of orders prejudicial to revenue
Chapter: XI - Part-A
COLLECTION AND RECOVERY - A.-Deduction at source
Clause 195	:	Liability to deduct tax at source
Clause 196	:	Payment of income and deduction of tax
Clause 197	:	Certificate for no deduction of tax
Clause 198	:	Payment of tax deducted, certificate to deductee, etc.
Clause 199	:	Reporting of payments without deduction of tax
Clause 200	:	No deduction of tax in certain cases
Clause 201	:	Credit for tax deducted
Chapter: XI - Part-B
COLLECTION AND RECOVERY - B.-Collection at source
Clause 202	:	Tax collection at source
Clause 203	:	Certain definitions
Chapter: XI - Part-C
COLLECTION AND RECOVERY - C.-Advance tax
Clause 204	:	Liability to pay advance income-tax
Chapter: XI - Part-D
COLLECTION AND RECOVERY - D.-Tax credit for relief in respect of payments received in arrears or in advance
Clause 205	:	Tax relief for arrears or advance receipts
Chapter: XI - Part-E
COLLECTION AND RECOVERY - E.- Foreign tax credit
Clause 206	:	Foreign tax credit
Chapter: XI - Part-F
COLLECTION AND RECOVERY - F.- Payment of dividend distribution tax
Clause 207	:	F. - Payment of dividend distribution tax
Chapter: XI - Part-G
COLLECTION AND RECOVERY - G. Payment of wealth-tax
Clause 208	:	Payment of wealth-tax
Chapter: XI - Part-H
COLLECTION AND RECOVERY - H. Interest
Clause 209	:	Interest payable to the Central Government
Clause 210	:	Interest payable to the assessee
Clause 211	:	Manner of computation of interest and waiver thereof to be prescribed
Chapter: XI - Part-I
COLLECTION AND RECOVERY - I. Refund
Clause 212	:	Refunds
Chapter: XI - Part-J
COLLECTION AND RECOVERY - J. Recovery
Clause 213	:	Recovery by Assessing Officer
Clause 214	:	Recovery by Tax Recovery Officer
Clause 215	:	Modes of recovery
Clause 216	:	Tax Recovery Officer by whom recovery is to be effected
Clause 217	:	Recovery of tax arrear in respect of non-resident from his assets
Clause 218	:	Recovery in the case of a company in liquidation
Clause 219	:	Liability of manager of a company
Clause 220	:	Joint and several liability of participants
Clause 221	:	Recovery of tax in pursuance of agreements with foreign countries
Clause 222	:	Tax clearance certificate in certain cases
Clause 223	:	Recovery by suit or under other law not effected
Chapter: XII
PENALTIES
Clause 224	:	Penalty for under-reporting of tax base
Clause 225	:	Penalty where search has been initiated
Clause 226	:	Penalty for other defaults
Clause 227	:	Procedure
Clause 228	:	Bar of limitation for imposing penalty
Chapter: XIII
PROSECUTION
Clause 229	:	Chapter not in derogation of any other law or any other provision of this Code
Clause 230	:	Contravention of any restraint order
Clause 231	:	Failure to comply with the provisions of clause (d) of sub-section (2) of section 139
Clause 232	:	Removal, concealment, transfer or delivery of property to thwart tax recovery
Clause 233	:	Failure to comply with the provisions of sub-sections (1) and (3) of section 218
Clause 234	:	Failure to pay the tax deducted or collected at source or to pay the dividend distribution tax
Clause 235	:	Willful attempt to evade tax, etc.
Clause 236	:	Failure to furnish returns of tax bases
Clause 237	:	Failure to furnish other returns, statements, reports, etc.
Clause 238	:	Failure to comply with direction under this Code
Clause 239	:	False statement in verification, etc.
Clause 240	:	Falsification of books of account or documents, etc.
Clause 241	:	Abetment of false return, etc.
Clause 242	:	Offences by companies, etc.
Clause 243	:	Proof of entries in records or documents
Clause 244	:	Presumption as to assets, books of account, etc., in certain cases
Clause 245	:	Presumption as to culpable mental state
Clause 246	:	Prosecution to be at the instance of Chief Commissioner or Commissioner
Clause 247	:	Certain offences to be non-cognizable
Clause 248	:	Disclosure of information by public servants
Chapter: XIV
ADVANCE RULING
Clause 249	:	Definitions
Clause 250	:	Scope of Ruling
Clause 251	:	Authority for Advance Ruling
Clause 252	:	Procedure for advance ruling
Clause 253	:	Income-tax authority or Appellate Tribunal not to proceed in certain cases
Clause 254	:	Applicability of Advance Ruling
Clause 255	:	Advance Ruling to be void in certain circumstances
Clause 256	:	Powers of the Authority
Clause 257	:	Procedure of Authority
Chapter: XV
GENERAL
Clause 258	:	Agreement with foreign countries
Clause 259	:	Permanent account number
Clause 260	:	Tax account number
Clause 261	:	Document Identification Number
Clause 262	:	Certain transfers to be void
Clause 263	:	Provisional attachment to protect revenue in certain cases
Clause 264	:	Service of notice generally
Clause 265	:	Authentication of notices and other documents
Clause 266	:	Notice deemed to be valid in certain circumstances
Clause 267	:	Service of notice when family is disrupted or unincorporated body is dissolved
Clause 268	:	Publication of information respecting assessees in certain cases
Clause 269	:	Appearance by registered valuer in certain matters
Clause 270	:	Appearance by authorised representative
Clause 271	:	Rounding off of tax bases, tax, etc.
Clause 272	:	Indemnity
Clause 273	:	Power to tender immunity from prosecution
Clause 274	:	Cognizance of offences
Clause 275	:	Section 360 of the Code of Criminal Procedure, 1973, and the Probation of Offenders Act, 1958, not to apply
Clause 276	:	Return of tax base, etc., not to be invalid on certain grounds
Clause 277	:	Presumption as to material found
Clause 278	:	Bar of suits in civil courts
Clause 279	:	Power to rescind
Clause 280	:	Power to make rules
Clause 281	:	Rules and certain notifications to be placed before Parliament
Clause 282	:	Repeals and savings
Clause 283	:	Power to remove difficulties
Chapter: XVI
DEFINITIONS
Clause 284	:	Definitions
Clause 285	:	Interpretation
ARRANGEMENT OF SCHEDULES
Sch - 01	:	THE FIRST SCHEDULE - RATES OF INCOME-TAX
Sch - 02	:	THE SECOND SCHEDULE - RATES OF OTHER TAXES
Sch - 03	:	THE THIRD SCHEDULE - RATES FOR DEDUCTION OF TAX AT SOURCE
Sch - 04	:	THE FOURTH SCHEDULE - Rates for deduction of tax at source in the case of non-resident deductee
Sch - 05	:	THE FIFTH SCHEDULE - PROCEDURE FOR RECOVERY OF TAX
Sch - 06	:	THE SIXTH SCHEDULE - Income not included in the total income
Sch - 07	:	THE SEVENTH SCHEDULE - Persons exempt
Sch - 08	:	THE EIGHTH SCHEDULE - COMPUTATION OF PROFITS OF THE INSURANCE BUSINESS
Sch - 09	:	THE NINTH SCHEDULE - COMPUTATION OF INCOME FROM ANY OTHER SPECIAL SOURCE
Sch - 10	:	THE TENTH SCHEDULE - COMPUTATION OF PROFITS OF BUSINESS OF OPERATING A QUALIFYING SHIP
Sch - 11	:	THE ELEVENTH SCHEDULE - COMPUTATION OF PROFITS OF THE BUSINESS OF MINERAL OIL OR NATURAL GAS
Sch - 12	:	THE TWELVETH SCHEDULE - COMPUTATION OF PROFITS OF THE BUSINESS OF DEVELOPING A SPECIAL ECONOMIC ZONE
Sch - 13	:	THE THIRTEENTH SCHEDULE - COMPUTATION OF PROFITS OF A SPECIFIED BUSINESS
Sch - 14	:	THE FOURTEENTH SCHEDULE - DETERMINATION OF INCOME ON A PRESUMPTIVE BASIS
Sch - 15	:	THE FIFTEENTH SCHEDULE - DEPRECIATION
Sch - 16	:	THE SIXTEENTH SCHEDULE - DEDUCTION FOR DONATION
Sch - 17	:	SEVENTEENTH SCHEDULE - DETERMINATION OF COST OF ACQUISITION IN CERTAIN CASES
Sch - 18	:	THE EIGHTTEENTH SCHEDULE - Minerals and Group of Associated Minerals