MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 5 of the Bill seeks to amend section 9A of the Incometax Act relating to certain activities not to constitute business connection in India.
It is proposed to amend clause (m) of sub-section (3) of the said section to provide that the amount shall be calculated in such manner as may be prescribed.
Clause 8 of the Bill seeks to amend section 13A of the Incometax Act relating to special provision relating to the incomes of political parties.
It is proposed to amend clause (d) of the first proviso to the said section to provide that the donation referred to therein is also received through such other electronic mode as may be prescribed.
Clause 9 of the Bill seeks to amend section 35AD of the Incometax Act relating to deduction in respect of expenditure on specified business.
The proposed amendment in clause (f) of sub-section (8) of the said section provides that besides payment through bank account the payment shall also be made through such other electronic mode as may be prescribed.
Clause 11 of the Bill seeks to amend section 40A of the Incometax Act relating to expenses or payments not deductible in certain circumstances.
The proposed amendment empowers the Board to make rules to provide that payment made through such other electronic mode shall also be allowed as deduction.
Clause 12 of the Bill seeks to amend section 43 of the Incometax Act relating to definitions of certain terms relevant to income from profits and gains of business or profession.
The proposed amendment seeks to empower the Board to make rules to provide that payment made through such electronic mode shall not be ignored for the purposes of determination of actual cost.
Clause 14 of the Bill seeks to amend section 43CA of the Income-tax Act relating to special provision for value of consideration for transfer of assets other than capital assets in certain cases.
The proposed amendment to sub-section (4) of the said section empowers the Board to make rules that the provision of sub-section (3) shall also apply in respect of those cases where the amount of consideration or a part thereof has been received by way of any electronic mode.
Clause 16 of the Bill seeks to amend section 44AD of the Income-tax Act relating to special provision for computing profits and gains of business on presumptive basis.
The proposed amemdment to the proviso to sub-section (1) of the said section empowers the Board to make rules to provide that an eligible assessee can opt for presumptive taxation scheme if he declares profit at the rate of six percent or higher of the turnover received through any electronic mode.
Clause 18 of the Bill seeks to amend second proviso to subsection (1) of section 50C, relating to special provision for full value of consideration in certain cases, so as to empower the Board to make rules to provide that the first proviso shall also apply in respect of those cases where the amount of consideration or a part thereof has been received by way of electronic mode as may be prescribed.
Clause 19 of the Bill seeks to amend section 50CA to insert a proviso to provide that the provision of the said section shall not apply to any consideration received or accruing as a result of such transfer by such class of persons referred to in the said section and such condition as may be prescribed.
Clause 21 of the Bill seeks to amend section 56 of the Incometax Act relating to income from other sources.
It is proposed to amend the second proviso to sub-clause (b) of clause (x) of sub-section (2) of the said section to empower the Board to make rules to provide other electronic mode referred to therein.
It is further proposed to insert a new clause (XI) in the proviso to the said clause (x) so as to provide that sum of money or any property received from such class of persons and subject to such conditions, as may be prescribed by rules shall not be the income of such persons.
Clause 27 of the Bill seeks to amend section 80JJAA of the Income-tax Act relating to deduction in respect of employment of new employees so as to provide in clause (b) of the first proviso to the Explanation to the said section so as to empower the Board to make rules to provide that deduction of an amount of additional employee cost shall be allowed if such emoluments are also paid through electronic mode.
Clause 31 of the Bill seeks to substitute section 92D of the Income-tax Act relating to maintenance and keeping of information and document by persons entering into an international transaction or specified domestic transaction.
Sub-section (1) of the said section empowers the Board to make rules for the manner of keeping and maintaining information and document.
It is further proposed to empower the Board under sub-section (2) of the said section to prescribe the period for which the said information and document shall be kept and maintained.
Clause 39 of the Bill seeks to amend section 139 of the Incometax Act relating to return of income.
It is proposed to insert a new provisio in sub-section (1) which empowers the Board to prescribe by rules other conditions in addition to the conditions specified therein.
Clause 40 of the Bill seeks to amend section 139A of the Incometax Act relating to permanent account number.
It is proposed to insert a new clause (vii) in sub-section (1) of the said section and to empower the Board to make rules to specify the transaction referred to therein.
It is further proposed to insert new sub-section (6A) to empower the Board to make rules to specify the category of transaction and to provide for the manner of authentication of Permanent Account number and Aadhaar number.
It is also proposed to insert new sub-section (6B) to empower the Board to provide for manner of authentication of permanent account number and Aadhaar number by the person referred to in sub-section (6A).
Clause 41 of the Bill seeks to amend section 139AA of the Income-tax Act relating to quoting of Aadhaar Number.
It is proposed to amend the proviso to sub-section (2) of the said section so as to provide that if a person fails to intimate the Aadhaar number, the permanent account number allotted to such person shall be made inoperative after the notified date in the manner as may be prescribed by rules.
Clause 47 of the Bill seeks to amend section 195 of the Incometax Act relating to other sums.
It is proposed to amend sub-section (2) of the said section so as to empower the Board to prescribe the form and manner of making application and the manner of determining the appropriate proportion of such sum chargeable.
It is further proposed to amend sub-section (7) of the said section to empower the Board to prescribe the form and manner of making application and the manner of determining the appropriate proportion of such sum chargeable to tax.
Clause 50 of the Bill seeks to substitute section 206A of the Income-tax Act relating to furnishing of quarterly return in respect of payment of interest to residents without deduction of tax.
Sub-section (1) of the said section provides that any banking company or co-operative society or public company referred to in the proviso to clause (i) of sub-section (3) of section 194A responsible for paying to a resident any income not exceeding forty thousand rupees, where the payer is a banking company or a co-operative society, and five thousand rupees in any other case by way of interest (other than interest on securities), shall prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and deliver or cause to be delivered to the prescribed income-tax authority or to the person authorised by such authority.
Sub-section (2) of the said section provides that the Board may, require any person other than a person mentioned in sub-section (1), responsible for paying to a resident, any income liable for deduction of tax at source under Chapter XVII, to prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and to deliver or cause to be delivered to the income-tax authority or the authorised person referred to in sub-section (1).
Sub-section (3) of the said section provides for the furnishing of a correction statement to add, delete or update the information in the statement delivered under sub-section (1) or sub-section (2), as the case may be, in such form and verified in such manner as may be prescribed.
Clause 57 of the Bill seeks to amend section 269SS of the Income-tax Act relating to mode of taking or accepting certain loans, deposits and specified sum.
It is proposed to amend the said section so as to empower the Board to make rules to provide that the taking or accepting from any depositor of a loan or deposit or any specified sum equal to twenty thousand or more shall be allowed if such sum is received through any electronic mode.
Clause 58 of the Bill seeks to amend section 269ST of the Income-tax Act relating to mode of undertaking transactions.
It is proposed to amend the said section so as to empower the Board to make rules to provide that the receipt of an amount equal to two lakh rupees or more in aggregate from a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion from a person shall also be allowed if such amount is received through any electronic mode.
Clause 60 of the Bill seeks to amend section 269T of the Income- Tax Act relating to mode of repayment of certain loans or deposits.
It is proposed to amend the said section so as to empower the Board to provide by rules that the repayment of any loan or deposit made with or any specified advance received by a banking company or a co-operative bank and any other company or cooperative society and any firm or other person in an amount equal to twenty thousand or more shall also be allowed if such repayment is made through electronic mode.
Clause 66 of the Bill seeks to amend section 285BA of the Income-tax Act relating to obligation to furnish statement of financial transaction or reportable account.
It is proposed to insert a new clause (l) in the said sub-section so as to provide that a person, other than those referred to in clauses (a) to (k), as may be presribed, shall also be required to furnish a statement under the said section.
Clause 80 of the Bill seeks to amend sub-section (2) of the section 157 of the Customs Act, so as to insert new clauses (ka) and (n) therein. The said new clauses seek to empower the Board to make regulations regarding ––
(a) the manner of authentication and the time limit for such authentication, the manner of submitting such documents or information and the time limit for such submission, the form and the manner of furnishing alternative means of identification and time limit for furnishing such identification, person or class of persons to be exempted and the conditions subject to which suspension may be made, under Chapter XIIB;
(b) the form and the manner, the time limit and the restrictions and conditions and amendment of any document under section 149.
Clause 92 of the Bill seeks to amend section 10 of the Central Goods and Services Tax Act. Sub-clause (c) of the said clause seeks to insert new sub-section (2A) therein which empowers the Government on the recommendations of the Council to prescribe the rate not exceeding three per cent. of the turnover in State or turnover in Union territory for the purpose of calculating the amount of tax under the said sub-section.
Clause 93 of the Bill seeks to amend section 22 of the Central Goods and Services Tax Act, so as to insert a third proviso which empowers the Government, at the request of a State and on the recommendations of the Council, to enhance the aggregate turnover from twenty lakh rupees to a higher amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods and subject to certain conditions and limitations as may be specified in the notification.
Clause 94 of the Bill seeks to amend section 25 of the Central Goods and Services Tax Act, so as to insert new sub-sections (6A), (6B), (6C) and (6D) therein. The said sub-section (6A) empowers the Government to make rules on the recommendations of the Council to provide for the form and manner and the time within which a registered person shall undergo authentication or furnish proof of possession of Aadhaar number and in case such person is not assigned Aadhaar number, then the manner in which an alternate and viable means of identification may be offered to such person.
Clause 95 of the Bill seeks to insert a new section 31A in the Central Goods and Services Tax Act, which empowers the Government on the recommendations of the Council to make rules to provide for a class of registered person who shall provide prescribe mode of electronic payment to the recipient of the supply of goods or services or both and give option to the recipient to make payment in such mode, in the manner and subject to the conditions and restrictions as may be provided in such rules.
Clause 96 of the Bill seeks to amend section 39 of the Central Goods and Services Tax Act, so as to substitute sub-sections (1), (2) and (7) of said section to provide for a new return system and empower the Government to make rules regarding the particulars to be furnished in the return, the form, manner and time within which the return may be filed.
Clause 98 of the Bill seeks to insert new sub-sections (10) and (11) in section 49 of the Central Goods and Services Tax Act, which empowers the Government to make rules to provide for the form, manner, conditions and restrictions for a registered person to transfer on the common portal any amount of tax, interest, penalty, fee or any amount available in the electronic cash ledger under the said Act to the electronic cash ledger for integrated tax, Central tax, State tax, Union territory tax on cess, and such transfer shall be deemed to be a refund.
Clause 101 of the Bill seeks to insert a new section 53A in the Central Goods and Services Tax Act, which empowers the Government to transfer to the State tax account or Union territory tax account an amount equal to the amount transferred from the electronic cash ledger in the manner and within the time provided by the rules.
Clause 102 of the Bill seeks to insert a new sub-section (8A) in section 54 of the Central Goods and Services Tax Act to empower the Government to disburse the refund of the State tax in the manner provided by the rules.
Clause 104 of the Bill seeks to insert new sections 101A, 101B and 101C in the Central Goods and Services Tax Act, to provide by rules ––
(a) the manner of appointment of Technical members (Centre) and Technical members (State) of the National Appellate Authority and composition of Selection Committee for such appointment;
(b) the salary and allowances and other terms and conditions of service of President and members of the National Appellate Authority;
(c) the form of appeal, the fees and manner of verification of such appeal.
Clause 113 of the Bill seeks to insert a new section 17A in the Integrated Goods and Services Tax Act which empowers the Government to transfer to the State tax account or Union territory tax account an amount equal to the amount transferred from the electronic cash ledger in the manner and within the time provided by rules.
Clauses 119 to 134 of the Bill provide for Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. Clause 131 thereof empowers the Central Government to make rules to provide for all or any of the following:––
(a) the form in which a declaration may be made and the manner in which such declaration may be verified;
(b) the manner of constitution of the designated committee and its rules of procedure and functioning;
(c) the form and manner of estimation of amount payable by the declarant and the procedure relating thereto;
(d) the form and manner of making the payment by the declarant and the intimation regarding the withdrawal of appeal;
(e) the form and manner of the discharge certificate which may be granted to the declarant;
(f) the manner in which the instructions may be issued and published;
(g) any other matter which is to, or may be, prescribed, or in respect of which provision is to be made, by rules.
Clause 189 of the Bill seeks to insert a new section 12AA relating to enhanced due diligence, in the Prevention of Money-Laundering Act, 2002.
The said section empowers the Central Government to make rules that every reporting entity shall, prior to the commencement of each specified transaction,--
(a) authenticate the identity of the clients undertaking such specified transaction in such manner and subject to such conditions as may be prescribed;
(b) take additional steps to examine the ownership and financial position, including sources of funds of the client, in such manner as may be prescribed;
(c) take additional steps as may be prescribed to record the purpose behind conducting the specified transaction and the intended nature of the relationship between the transaction parties;
(d) Where any specified transaction or series of specified transactions undertaken by a client is considered suspicious or likely to involve proceeds of crime, the reporting entity shall increase the future monitoring of the business relationship with the client, including greater scrutiny or transactions in such manner as may be prescribed.
2. The matters in respect of which rules or regulations may be made or notifications or order may be issued in accordance with the provisions of the Bill are matters of procedure and detail and it is not practicable to provide for them in the Bill itself.
3. The delegation of legislative power is, therefore, of a normal character.
