Amendment of section 140A.
42. In section 140A of the Income-tax Act,––
(i) in sub-section (1), after clause (ii), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––
“(iia) any relief of tax claimed under section 89;”;
(ii) in sub-section (1A), in clause (i), after sub-clause (b), the following sub-clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––
“(ba) any relief of tax claimed under section 89;”;
(iii) in sub-section (1B), in the Explanation, after clause (i), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––
“(ia) any relief of tax claimed under section 89;”.
Notes on Clauses:
Clause 42 of the Bill seeks to amend section 140A of the Income-tax Act relating to self-assessment.
The said section 140A, inter alia, provides for payment of self-assessment tax.
It is proposed to insert a new clause (iia) in sub-section (1) of the said section, so as to provide that “any relief of tax claimed under section 89” shall be taken into account for the purpose determining tax payable under the said sub-section.
It is further proposed to insert a new sub-clause (ba) in clause (i) of sub-section (1A) of the said section so as to provide that “any relief of tax claimed under section 89” shall be taken into account for the purpose of determining interest payable under the said subsection.
It is also proposed to insert a new clause (ia) in the Explanation to sub-section (1B) of the said section so as to provide that for the purpose of determining “assessed tax” under the said sub-section, “any relief of tax claimed under section 89” shall also be reduced from the tax on total income.
These amendments will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years.
