FINANCE BILL, 2011

Chapter: I
Preliminary
Clause 1	:	Short title and commencement
Chapter: II
Rates of Income Tax
Clause 2	:	RATES OF INCOME-TAX Clause 2 , read with the First Schedule to the Bill, specifies the rates at which income-tax is to be levied on income charg....
Chapter: III - Part 1
Direct Taxes - Income Tax
Clause 3	:	Amendment of section 2. Clause 3 of the Bill seeks to amend section 2 of the Income-tax Act relating to definitions. The existing provisions contain....
Clause 4	:	Amendment of section 10. Clause 4 of the Bill seeks to amend section 10 of the Income-tax Act relating to incomes not included in total income. The E....
Clause 5	:	Amendment of section 35. Clause 5 of the Bill seeks to amend section 35 of the Income-tax Act relating to expenditure on scientific research. The exi....
Clause 6	:	Amendment of section 35AD. Clause 6 of the Bill seeks to amend section 35AD of the Income-tax Act relating to deduction in respect of expenditure on sp....
Clause 7	:	Amendment of section 36. Clause 7 of the Bill seeks to amend section 36 of the Income-tax Act relating to other deductions. The existing provisions o....
Clause 8	:	Amendment of section 80CCE Clause 8 of the Bill seeks to amend section 80CCE of the Income-tax Act relating to the limit on deductions under sections 8....
Clause 9	:	Amendment of section 80CCF Clause 9 of the Bill seeks to amend section 80CCF of the Income-tax Act relating to deduction in respect of subscription to ....
Clause 10	:	Amendment of section 80-IA. Clause 10 of the Bill seeks to amend section 80-IA of the Income-tax Act relating to deductions in respect of profits and ga....
Clause 11	:	Amendment of section 80-IB. Clause 11 of the Bill seeks to amend section 80-IB of the Income-tax Act, relating to deduction in respect of profits and ga....
Clause 12	:	Amendment of section 92C. Clause 12 seeks to amend section 92C of the Income-tax Act, relating to computation of arm s length price. Under the existin....
Clause 13	:	Amendment of section 92CA. Clause 13 of the Bill seeks to amend section 92CA of the Income-tax Act relating to reference to Transfer Pricing Officer. U....
Clause 14	:	Insertion of new section 94A- Special measures in respect of transactions with persons located in notified jurisdictional area. Clause 14 of the Bill seeks to insert a new section 94A in the Income-tax Act relating to special measures in respect of tra....
Clause 15	:	Amendment of section 115A. Clause 15 of the Bill seeks to amend section 115A of the Income-tax Act, relating to tax on dividends, royalty and technical....
Clause 16	:	Insertion of new section 115BBD- Tax on certain dividends received from foreign companies Clause 16 of the Bill seeks to insert a new section 115BBD in the Income-tax Act relating to tax on certain dividends receiv....
Clause 17	:	Amendment of section 115JB. Clause 17 of the Bill seeks to amend section 115JB of the Income-tax Act relating to special provision for payment of tax by....
Clause 18	:	Insertion of new Chapter XII-BA- Special provisions for payment of tax by certain limited liability partnerships- Tax credit for alternate minimum tax Clause 18 of the Bill seeks to insert a new Chapter XII-BA [consisting of new sections 115JC, 115JD, 115JE and 115JF] in the....
Clause 19	:	Amendment of section 115-O. Clause 19 of the Bill seeks to amend section 115-O of the Income-tax Act relating to tax on distributed profits of domestic ....
Clause 20	:	Amendment of section 115R. Clause 20 of the Bill seeks to amend section 115R of the Income-tax Act relating to tax on distributed income to unit holder....
Clause 21	:	Amendment of section 131. Clause 21 of the Bill seeks to amend section 131 of the Income- tax Act relating to power regarding discovery, production of....
Clause 22	:	Amendment of section 133. Clause 22 of the Bill seeks to amend section 133 of the Income-tax Act relating to power to call for information. Under the ....
Clause 23	:	Amendment of section 139. Clause 23 of the Bill seeks to amend section 139 of the Income-tax Act relating to return of income. Under the existing prov....
Clause 24	:	Amendment of section 143. Clause 24 of the Bill seeks to amend section 143 of the Income-tax Act relating to assessment. Under the existing provisions....
Clause 25	:	Amendment of section 153. Clause 25 of the Bill seeks to amend section 153 of the Income-tax Act relating to time limit for completion of assessments ....
Clause 26	:	Amendment of section 153B. Clause 26 of the Bill seeks to amend section 153B of the Income-tax Act relating to time limit for completion of assessment ....
Clause 27	:	Insertion of new section 194LB-Income by way of interest from infrastructure debt fund Clause 27 of the Bill seeks to insert a new section 194LB in the Income-tax Act relating to income by way of interest from a....
Clause 28	:	Amendment of section 245C. Clause 28 of the Bill seeks to amend section 245C of the Income-tax Act relating to application for settlement of cases. The....
Clause 29	:	Amendment of section 245D. Clause 29 of the Bill seeks to amend section 245D of the Income-tax Act relating to procedure on receipt of an application u....
Clause 30	:	Omission of section 282B. Clause 30 of the Bill seeks to omit section 282B of the Income-tax Act relating to allotment of Document Identification Numb....
Clause 31	:	Insertion of new section 285- Submission of statement by a non-resident having liaison office. Clause 31 of the Bill seeks to insert a new section 285 [in place of said section which was omitted by the Finance Act, 1987....
Clause 32	:	Amendment of section 296. Clause 32 of the Bill seeks to amend section 296 of the Income-tax Act relating to rules and certain notifications to be pla....
Clause 33	:	Amendment of Fourth Schedule. Clause 33 of the Bill seeks to amend Part A of the Fourth Schedule to the Income-tax Act, relating to recognised provident f....
Chapter: III - Part 2
Direct Taxes - Wealth Tax
Clause 34	:	Amendment of section 22D of Act 27 of 1957. Clause 34 of the Bill seeks to amend section 22D of the Wealth-tax Act, 1957 relating to procedure on receipt of the applica....
Chapter: IV - Part 1
Indirect Taxes - Customs
Clause 35	:	Amendment of section 2. Clause 35 of the Bill seeks to amend section 2 of the Customs Act relating to definitions. Clause (2) of the said section de....
Clause 36	:	Amendment of section 3. Clause 36 of the Bill seeks to amend section 3 of the Customs Act so as to omit the reference to the Deputy Commissioner in ....
Clause 37	:	Substitution of new section for section 17- Assessment of duty Clause 37 of the Bill seeks to substitute a new section for section17 of the Customs Act relating to assessment of duty to m....
Clause 38	:	Amendment of section 18. Clause 38 of the Bill seeks to amend section 18 of the Customs Act relating to provisional assessment of duty. In case an im....
Clause 39	:	Amendment of section 19. Clause 39 of the Bill seeks to amend section 19 of the Customs Act relating to determination of duty where goods consist of ....
Clause 40	:	Amendment of section 27. Clause 40 of the Bill seeks to substitute sub-section (1) of section27 of the Customs Act relating to claim for refund of du....
Clause 41	:	Substitution of new section for section 28- Recovery of duties not levied or short-levied or erroneously refunded. Clause 41 of the Bill seeks to substitute a new section for section28 of the Customs Act relating to recovery of duties not ....
Clause 42	:	Substitution of new section for sections 28AA and 28AB- Interest on delayed payment of duty. Clause 42 of the Bill seeks to substitute a new section 28AA for sections 28AA and 28AB of the Customs Act relating to inter....
Clause 43	:	Amendment of section 46. Clause 43 of the Bill seeks to amend section 46 of the Customs Act relating to entry of goods on importation so as to provid....
Clause 44	:	Amendment of section 50. Clause 44 of the Bill seeks to amend section 50 of the Customs Act relating to entry of goods for exportation so as to provi....
Clause 45	:	Amendment of section 75. Clause 45 of the Bill seeks to amend section 75 of the Customs Act so as to empower the Central Government to provide for th....
Clause 46	:	Amendment of section 110A. Clause 46 of the Bill seeks to amend section 110A of the Customs Act relating to provisional release of goods, documents and....
Clause 47	:	Amendment of section 124. Clause 47 of the Bill seeks to amend section 124 of the Customs Act relating to issue of show cause notice before confiscati....
Clause 48	:	Insertion of new section 131BA- Appeal not to be filed in certain cases. Clause 48 of the Bill seeks to insert a new section 131D in the Customs Act relating to filing of appeal by Commissioner of ....
Clause 49	:	Insertion of new section 142A- Liability under Act to be first charge. Clause 49 of the Bill seeks to insert a new section 142A relating to liability under Act to be first charge so as to provide....
Clause 50	:	Amendment of section 150. Clause 50 of the Bill seeks to amend section 150 of the Customs Act relating to procedure for sale of goods and application ....
Clause 51	:	Amendment of section 151A. Clause 51 of the Bill seeks to amend section 151A of the Customs Act relating to instructions to officers of customs so as t....
Clause 52	:	Amendment of section 157. Clause 52 of the Bill seeks to amend section 157 of the Customs Act relating to general power to make regulations by inserti....
Clause 53	:	Amendment of notifications issued under section 25 of Customs Act. Clause 53 of the Bill seeks to amend certain notifications issued under sub-section (1) of section 25 of the Customs Act, 19....
Clause 54	:	Special provisions exempting duty of customs on certain imports of fresh garlic. Clause 54 of the Bill seeks to make special provision for exempting fresh garlic imported by the National Consumer Co-operat....
Clause 55	:	Amendment of section 3. Clause 55 of the Bill seeks to amend section 3 of the Customs Tariff Act so as to substitute with effect from 1st March, 201....
Clause 56	:	Amendment of section 9AA. Clause 56 of the Bill seeks to amend section 9AA of the Customs Tariff Act so as to confer power upon the Central Government....
Clause 57	:	Amendment of First Schedule and Second Schedule. Clause 57 of the Bill seeks to amend the First Schedule and the Second Schedule to the Customs Tariff Act. Item (i) of sub-c....
Clause 58	:	Special provisions to impose final safeguard duty on Caustic Soda Lye during certain period. Clause 58 of the Bill seeks to make special provision for imposing safeguard duty on caustic soda lye retrospectively for th....
Chapter: IV - Part 2
Indirect Taxes - Excise
Clause 59	:	Amendment of section 4A. Clause 59 of the Bill seeks to amend section 4A of the Central Excise Act so as to substitute the Standards of Weights and M....
Clause 60	:	Substitution of new section for section 11A- Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded. Clause 60 of the Bill seeks to substitute section 11A of the Central Excise Act relating to recovery of duties not levied or....
Clause 61	:	Substitution of new section for sections 11AA and 11AB- Interest on delayed payment of duty. Clause 61 of the Bill seeks to substitute a new section 11AA for sections 11AA and 11AB of the Central Excise Act relating t....
Clause 62	:	Substitution of new section for section 11AC- Penalty for short-levy or non-levy of duty in certain cases. Clause 62 of the Bill seeks to substitute section 11AC to provide that for the new category of cases the general penalty sha....
Clause 63	:	Insertion of new section 11E- Liability under Act to be first charge. Clause 63 of the Bill seeks to insert a new section 11E in the Central Excise Act so as to create a first charge on the prop....
Clause 64	:	Amendment of section 12. Clause 64 of the Bill seeks to amend section 12 of the Central Excise Act so as to insert reference to section 3A with effec....
Clause 65	:	Insertion of new section 12F- Power of search and seizure Clause 65 of the Bill seeks to insert section 12F to the Central Excise Act so as to empower the Joint Commissioners or the ....
Clause 66	:	Insertion of new section 35R- Appeal not to be filed in certain cases. Clause 66 of the Bill seeks to insert a new section 35R in the Central Excise Act relating to filing of appeal by Central Ex....
Clause 67	:	Amendment of section 38. Clause 67 of the Bill seeks to amend sub-section (2) of section 38 of the Central Excise Act with a view to insert words the....
Clause 68	:	Amendment of rule 3 of CENVAT Credit Rules, 2004. Clause 68 of the Bill seeks to amend rule 3 of the CENVAT Credit Rules, 2004 in the manner specified in the Eighth Schedule ....
Clause 69	:	Amendment of notifications issued under section 5A of Central Excise Act. Clause 69 of the Bill seeks to amend notifications issued under sub-section (1) of section 5A of the Central Excise Act, 194....
Clause 70	:	Amendment of First Schedule and Third Schedule Clause 70 of the Bill seeks to amend the First Schedule and the Third Schedule to the Central Excise Tariff Act.Item (i) of ....
Chapter: V
Service Tax
Clause 71	:	Amendment of Act 32 of 1994- Penalty for suppressing, etc, of value of taxable service- Liability under Act to be first charge- Offences and penalties- Special exemption from service tax in certain cases Clause 71 of the Bill seeks to amend Chapter V of the Finance Act, 1994 relating to service tax in the following manner:- Su....
Clause 72	:	Validation of exemption given by tour operator having a contract carriage permit for inter-state or intra-state transportation of passengers retrospective effect. Clause 72 of the Bill seeks to give retrospective effect to the notification of the Government of India number G.S.R.492 (E)....
Chapter: VI
Miscellaneous
Clause 73	:	Amendment of act 16 of 1955. Clause 73 of the Bill seeks to amend Explanation III of the Schedule to Medicinal and Toilet Preparations (Excise Duties) Ac....
Clause 74	:	Amendment of section 15 of Act 74 of 1956. Clause 74 of the Bill seeks to amend section 15 of the Central Sales Tax Act, 1956 so as to increase the ceiling imposed thr....
Clause 75	:	Amendment of First Schedule to Act 58of 1957. Clause 75 of the Bill seeks to amend the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act....
Clause 76	:	Amendment of second Schedule to Act 28 of 2005. Clause 76 of the Bill seeks to amend the Second Schedule to the Special Economic Zones Act, 2005. The aforesaid Schedule con....
Schedules
Sch-01	:	THE FIRST SCHEDULE - (See section 2)
Sch-02	:	THE SECOND SCHEDULE - [Section 53(1)]
Sch-03	:	THE THIRD SCHEDULE - (See section 54)
Sch-04	:	THE FOURTH SCHEDULE - [Section 57(a)(i)]
Sch-05	:	THE FIFTH SCHEDULE- [Section 57(a)(ii)]
Sch-06	:	THE SIXTH SCHEDULE - [Section 57(b)]
Sch-07	:	THE SEVENTH SCHEDULE - [Section 58(1)]
Sch-08	:	THE EIGHTH SCHEDULE - [Section 68(1)]
Sch-09	:	THE NINTH SCHEDULE - [Section 69(1)]
Sch-10	:	THE TENTH SCHEDULE - [Section 70(a)(i)]
Sch-11	:	THE ELEVENTH SCHEDULE - [See section 70(a)(ii)]
Sch-12	:	THE TWELFTH SCHEDULE - [Section 70(b)]
Sch-13	:	THE THIRTEENTH SCHEDULE - (See section 75)
Statements - Notes - Memorandum
Memo	:	MEMORANDUM REGARDING DELEGATED LEGISLATION
Notes	:	Notes on clauses - Income-tax
Notes	:	Notes on clauses - Wealth-tax
Notes	:	Notes on clauses - Customs
Notes	:	Notes on clauses - Customs Tariff
Notes	:	Notes on clauses - Excise
Notes	:	Notes on clauses - Excise Tariff
Notes	:	Notes on clauses - Service Tax
Notes	:	Notes on clauses - Miscellaneous
Statements	:	STATEMENT OF OBJECTS AND REASONS