MEMORANDUM REGARDING DELEGATED LEGISLATION
The provisions of the Bill, inter alia, empower the Central Government to issue notifications and the Board to make rules for various purposes as specified therein.
Clause 3 of the Bill seeks to amend section 2 of the Income-tax Act, 1961 relating to definitions.
It is proposed to amend clause (19AA) of the said section to define the term “demerger” and to insert an Explanation so as to empower the Central Government to notify the conditions governing for public sector companies for the purpose of the said clause.
Clause 5 of the Bill seeks to amend section 10 of the Income-tax Act relating to incomes not included in total income.
It is proposed to amend clause (5) of the said section to insert a second proviso to empower the Board to make rules to provide for the conditions (including the condition of incurring the amount of the expenditure within the period specified therein) to claim the exemption for the value in lieu of travel concession or assistance received for the assessment year beginning on the 1st day April, 2021.
It is further proposed to amend clause (11) of the said section to empower the Central Government to notify in the Official Gazette with respect to any other Provident Fund to claim exemption under the said clause.
It is also proposed to amend clause (12) of the said section to empower the Board to provide for the manner of computation of income by way of interest accrued during the previous year in the account of a person to the extent it relates to the amount or the aggregate of amounts of contribution made, by that person exceeding two lakh and fifty thousand rupees in any previous year in that fund, on or after the 1st day of April, 2021.
It is also proposed to amend clause (23FE) of the said section to insert provisos and, inter alia, empowers the Board to make rules to provide for the manner of calculations to the investment made in one or more of the different companies or enterprises or entities to claim exemption of income under the said clause.
Clause 14 of the Bill seeks to amend section 45 of the Income-tax Act relating to Capital gains.
It is proposed to insert sub-clause (1B) in the said section so as to empower the Board to make rules to provide for the manner of calculation of profits or gains received from unit linked Insurance policy including bonus, to be charged under the head of capital gains.
Clause 18 of the Bill seeks to amend section 50 of the Income–tax Act relating to special provision for computation of capital gains in case of depreciable assets.
It is proposed to insert a proviso to the said section so as to empower the Board to make rules to provide for the manner of determining the written down value of the block of assets and short-term capital gain, if goodwill of a business or profession form part of block of assets and depreciation has been obtained by the assesse under the Act for the purposes of the said section.
Clause 28 of the Bill seeks to insert a new section 89A in the Income-tax Act relating to relief from taxation in income from retirement benefit account maintained in a notified country.
The proposed new section empowers the Board to make rules to provide for the manner and year, for imposing tax on income received from a specified account by a specified person.
Clause 31 of the Bill seeks to amend section 115JB of the Income-tax Act relating to special provision for payment of tax by certain company.
It is proposed to insert sub-section (2D) therein so as to empower the Board to make rules to provide for the manner of recomputing the book of profit of the past year for the purposes of payment of tax of the company, if there is any increase in book of profit in the previous year due to income of a past year included in the book profit on account of an advance pricing agreement or secondary adjustment.
Clause 44 of the Bill seeks to amend section 194 of the Income-tax Act relating to dividends.
It is proposed to amend the second proviso of the said section so as to empower the Central Government to notify any other person to claim exemption for the income credited or paid to a business trust by a special purpose vehicle.
Indirect Taxes
Clause 84 of the Bill seeks to amend sub-section (3) of section 46 of the Customs Act so as to insert a new proviso therein to empower the Board to provide by regulations different time limits for presentation of the Bill of entry.
Clause 93 of the Bill seeks to amend section 9 of the Customs Tariff Act. The proposed sub-section (1B) seeks to empower the Central Government to provide by rules the circumstances in which absorption of countervailing duty have taken place.
Clause 94 of the Bill seeks to amend section 9A of the Customs Tariff Act. The proposed sub-section (1B) seeks to empower the Central Government to provide by rules the circumstances in which absorption of anti-dumping duty have taken place.
Clause 102 of the Bill seeks to amend section 44 of the Central Goods and Services Tax Act so as to empower the Central Government to provide by rules the time within which and the form and manner in which every registered person, other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person shall furnish an annual return.
Clause 106 of the Bill seeks to amend section 83 of the Central Goods and Services Tax Act by substituting sub-section (1) thereof, which empowers the Central Government to provide by rules the manner in which the Commissioner may attach provisionally any property, including bank account, belonging to the taxable person or any person specified in sub-section (1A) of section 122.
Clause 108 of the Bill seeks to amend section 129 of the Central Goods and Services Tax Act. Sub-section (6) of the said section seeks to empower the Central Government to provide by rules the manner in which and the time within which the goods or conveyance detained or seized under that section shall be sold or disposed of.
Clause 114 of the Bill seeks to amend section 16 of the Integrated Goods and Services Tax Act, 2017. Sub-section (3) of the said section seeks to empower the Central Government to provide by rules the conditions subject to which and the safeguards and procedures in respect of which a registered person making zero rated supply shall claim refund of unutilized input tax credit on supply of goods or services or both. The proviso thereto seeks to empower the Central Government to provide by rules the manner in which the registered person making zero rated supply of goods shall deposit the refund received.
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.
