TMI BlogNOTES ON CLAUSESX X X X Extracts X X X X X X X X Extracts X X X X ..... the financial year 2013-14. Rates for deduction of tax at source during the financial year 2014-15 from income other than Salaries Part II of the First Schedule to the Bill specifies the rates at which income-tax is to be deducted at source during the financial year 2014-15 from income other than Salaries . The rates are the same, as those specified in Part II of the First Schedule to the Finance Act, 2013 for the purposes of deduction of income- tax at source during the financial year 2013-14. The amount of tax so deducted shall be increased by a surcharge in the case of (i) every non-resident (other than a company) at the rate of ten per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees; (ii) every company other than a domestic company at the rate of two per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees but does not exceed ten crore rupees; (iii) every company other than a domestic company at the rate of five per cent. where the income or the aggregate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g income above one crore rupees, shall be levied at the rate of ten per cent. Marginal relief will be provided. Paragraph B of this Part specifies the rates of income-tax in the case of every co-operative society. In such cases, the rates of tax will continue to be the same as those specified for the assessment year 2014-15. The surcharge in cases of co- operative societies, having income above one crore rupees shall be levied at the rate of ten per cent. Marginal relief will be provided. Paragraph C of this Part specifies the rate of income-tax in the case of every firm. In such cases, the rate of tax will continue to be the same as that specified for the assessment year 2014-15. The surcharge in cases of firms, having income above one crore rupees shall be levied at the rate of ten per cent. Marginal relief will be provided. Paragraph D of this Part specifies the rate of income-tax in the case of every local authority. In such cases, the rate of tax will continue to be the same as that specified for the assessment year 2014-15. The surcharge in cases of local authorities, having income above one crore rupees shall be levied at the rate of te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this behalf. This amendment will take effect from 1st October, 2014. The existing provisions of clause (14) of section 2 defines the term capital asset . The term is defined to include property of any kind held by an assessee whether or not connected with his business or profession but does not include any stock-in-trade or personal assets as provided in the definition. It is further proposed to amend the said clause (14) so as to provide that the term capital asset shall include any security held by a Foreign Institutional Investor which has invested in such security in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. It is also proposed to amend section 2 so as to substitute the definitions of clause (15A), clause (16) and clause (21) relating to Chief Commissioner , Commissioner and Director General or Director . It is further proposed to insert clauses (34A), (34B), (34C) and (34D) so as to define the terms Prin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsuant to transfer of share or shares as referred to in clause (xvii) of section 47, there shall be included the period for which such share or shares were held by the assessee. This amendment will take effect from 1st October, 2014. Clause 4 of the Bill seeks to make consequential amendments in the Income-tax Act in view of the amendments made in section 2 of the said Act relating to definitions of the expressions Chief Commissioner , Commissioner and Director General or Director . These amendments will take effect retrospectively from 1st June, 2013. Clause 5 of the Bill seeks to amend section 10 of the Income- tax Act relating to incomes not included in total income. Under the existing provisions contained in clause (23C) of the aforesaid section, exemption is provided in respect of income of university or other educational institutions, hospital or any other institution mentioned therein, if such university or other educational institution, hospital or any other institution are wholly or substantially financed by the Government. It is proposed to amend the aforesaid clause so as to insert an Expla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 so as to provide that any distributed income, referred to in section 115UA, received by a unit holder from the business trust, not being that proportion of the income which is of the same nature as the income referred to in clause (23FC) of this section, shall not be included in the total income of such unit holder. It is proposed to amend clause (38) of section 10 so as to provide that the provisions of the said clause shall also be applicable to units of a business trust as it is applicable to units of an equity oriented fund. It is also proposed to provide that the provisions of this clause shall not apply in respect of any income arising from transfer of any units of a business trust which were acquired in consideration of a transfer referred to in clause (xvii) of section 47. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 6 of the Bill seeks to amend section 10AA of the Income-tax Act, relating to special provision in respect of newly established Units in Special Economic Zones. The existing provisions contained in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ears. Clause 8 of the Bill seeks to amend section 12A of the Income- tax Act relating to conditions for applicability of sections 11 and 12. Under the existing provisions of aforesaid section 12A, conditions to be fulfilled by a trust or an institution before it can claim exemption have been provided under sections 11 and 12 of the Act. It is provided that before any benefit of exemption is claimed, the trust or institution should apply for registration under section 12AA and only after such registration has been granted such trust or institution shall be eligible to claim the benefit of such exemption. In case of trusts or institutions which apply for registration after the 1st day of June, 2007, the registration shall be effective only for the assessment years following the financial year in which application has been made. It is proposed to amend the said section so as to provide that once a registration under section 12AA is granted to a charitable organisation in a financial year, then, such registration would also entitle the entity for the benefits of sections 11 and 12 in cases for prior years where the assessment proceedings are pendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The existing provisions contained in section 24 provide that income chargeable under the head income from house property shall be computed after making a deduction of a sum equal to thirty per cent. of the annual value and where the property is acquired with borrowed capital, the amount of any interest payable on such capital. The second proviso to clause (b) of the said section, inter alia, provides that in case of a self-occupied property where the acquisition or construction of the property is completed within three years from the end of financial year in which the capital is borrowed, the amount of deduction under that clause shall not exceed one lakh fifty thousand rupees. It is proposed to amend the second proviso to clause (b) of section 24, so as to increase the limit of deduction on account of interest in respect of property referred to in sub-section (2) of section 23 to two lakh rupees. This amendment will take effect from 1st April, 2015 and, will accordingly apply, in relation to the assessment year 2015-16 and subsequent years. Clause 11 of the Bill seeks to amend section 32AC of the Income-tax Act relating to Investment in ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation or demerger, within a period of five years from the date of its installation, the amount of deduction allowed under sub-section (1) in respect of such new asset shall be deemed to be the income of the assessee chargeable under the head Profits and gains of business or profession of the previous year in which such new asset is sold or otherwise transferred, in addition to taxability of gains, arising on account of transfer of such new asset. It is proposed to amend sub-section (2) of section 32AC to make a reference to sub-section (1A) so as to bring the assessee under the said newly inserted sub-section into the purview of said sub-section (2). These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 12 of the Bill seeks to amend section 35AD of the Income-tax Act relating to deduction in respect of expenditure on specified business. The existing provisions contained in section 35AD, inter alia, provide a deduction in respect of any expenditure of capital nature incurred, other than expenditure incurred on the acquisition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is also proposed to insert a new sub-section (7C) in the aforesaid section so as to provide that nothing contained in sub-section (7B) shall apply to a company which has become a sick industrial company under sub-section (1) of section 17 of the Sick Industrial Companies (Special Provisions) Act, 1985, during the period specified in sub-section (7A). It is also proposed to amend sub-section (8) of section 35AD so as to include the following businesses as specified business for the purposes of deduction under this section, (i) laying and operating a slurry pipeline for the transportation of iron ore; (ii) setting up and operating a semi-conductor wafer fabrication manufacturing unit notified by the Board in accordance with the prescribed guidelines. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent assessment years. Clause 13 of the Bill seeks to amend section 37 of the Income-tax Act relating to general expenditure. The existing provisions contained in sub-section (1) of the aforesaid section provide that any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of any such sum, tax has been deducted in any subsequent year or, has been deducted in the previous year but paid in any subsequent year after the expiry of the time prescribed under sub-section (1) of section 200, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. It is proposed to substitute the said proviso so as to provide that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) of section 139, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. The existing provisions contained in sub-clause (ia) of clause (a) of the aforesaid section provide that payment of any sum by way of interest, commission or brokerage, rent, royalty, fees for professional services or fees for technical services payable to a resident on which tax is deductible under Chapter XVII-B, or amounts payable to a contractor or sub-contractor, being resident, for carrying out any work (including supply of labour for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se (e) of the said proviso so as to provide that eligible transaction in respect of trading in commodity derivatives carried out in a recognised association which is chargeable to commodities transaction tax under Chapter VII of the Finance Act, 2013 shall not be considered to be a speculative transaction. This amendment will take effect retrospectively from 1st April, 2014 and, will accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years. Clause 16 of the Bill seeks to amend section 44AE of the Income-tax Act, relating to special provision for computing profits and gains of business of plying, hiring or leasing goods carriages. Under the existing provisions contained in sub-section (1) of the aforesaid section, in the case of an assessee, who owns not more than ten goods carriages and who is engaged in the business of plying, hiring or leasing such goods carriages, the income of such business chargeable to tax under the head Profits and gains of business or profession is deemed to be the aggregate of the profits and gains from all the goods carriages owned by him in the previous year. Sub-section (2) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2015-16 and subsequent years. Clause 18 of the Bill seeks to amend section 47 of the Income-tax Act relating to transactions not regarded as transfer. The existing provision contained in section 47 provides that certain transactions shall not be considered as transfer for the purpose of charging capital gains. It is proposed to insert a new clause (viib) in the said section so as to provide that any transfer of a capital asset, being a Government Security carrying a periodic payment of interest, made outside India through an intermediary dealing in settlement of securities, by a non-resident to another non-resident shall not be considered as transfer for the purpose of charging capital gains. It is also proposed to define the term Government Security . It is further proposed to amend the said section by inserting a new clause (vii) so as to provide that any transfer of a capital asset, being share of a special purpose vehicle, to a business trust in exchange of units allotted by that trust to the transferor shall not be regarded as transfer for the purposes of section 45. The special purpose vehicle will have the same meaning as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubject of negotiations for its transfer, any advance or other money received and retained by the assessee in respect of such negotiations shall be deducted from the cost for which the asset was acquired or the written down value or the fair market value, as the case may be, in computing the cost of acquisition. It is proposed to insert a proviso in the said section, so as to provide that where any sum of money received as an advance or otherwise in the course of the negotiations for transfer of a capital asset has been included in the total income of the assessee for any previous year in accordance with the provisions of clause (ix) of sub-section (2) of section 56, then, such sum shall not be deducted from the cost for which the asset was acquired or the written down value or the fair market value, as the case may be, in computing the cost of acquisition. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 22 of the Bill seeks to amend section 54 of the Income- tax Act relating to profit on sale of property used for residence. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons contained in sub-section (1) of section 54F provide that where capital gain arises from transfer of a long-term capital asset, not being a residential house, and the assessee within a period of one year before or two years after the date of transfer purchases, or within a period of three years after the date of transfer constructs, a residential house then the portion of capital gains in the ratio of cost of new asset to the net consideration received on transfer is exempted. It is proposed to amend the aforesaid sub-section so as to provide that the exemption is available if the investment is made in purchase or construction of one residential house situated in India. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to assessment year 2015-16 and subsequent years. Clause 25 of the Bill seeks to amend section 56 of the Income-tax Act relating to income from other sources. It is proposed to insert a new clause (ix) in sub-section (2) of the aforesaid section so as to provide that where any sum of money, received as an advance or otherwise in the course of the negotiations for transfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 28 of the Bill seeks to amend section 80CCD of the Income-tax Act relating to deduction in respect of contribution to pension scheme of Central Government. The existing provisions contained in sub-section (1) of section 80CCD, inter alia, provide that in the case of an individual, employed by the Central Government or any other employer on or after 1st January, 2004, who has in the previous year paid or deposited any amount in his account under a pension scheme notified or as may be notified by the Central Government, a deduction of such amount not exceeding ten per cent. of salary is allowed. This is subject to a limit of one lakh rupees provided under section 80CCE. It is proposed to amend sub-section (1) of the said section so as to provide that an individual employed by the Central Government on or after 1st January, 2004 or, being an individual employed by any other employer shall be allowed a deduction of the amount deposited by him in his account under a pension scheme notified or as may be notified by the Central Government to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 16 and subsequent years. Clause 31 of the Bill seeks to amend section 92B of the Income-tax Act relating to meaning of international transaction. The existing provisions of section 92B provide for the meaning of international transaction for the purposes of applicability of transfer pricing regime. Sub-section (1) defines International transaction as a transaction between two or more associated enterprises, either or both of whom are non-residents, in the nature of purchase, sale or lease of tangible or intangible property or provision of services or lending or borrowing of money or any transaction having a bearing on profits, income, losses or assets of such enterprises. Sub-section (2) of the said section provides for deeming of a transaction between an enterprise and unrelated third party as a transaction between two associated enterprises subject to the condition that there exists a prior agreement in relation to the relevant transaction between the third party and associated enterprise or the terms of the relevant transaction are determined in substance between such third party and the associated enterprise. It is propose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital gains in certain cases. The provisions of sub-section (1) of section 111A provide for the levy of tax at concessional rate of fifteen per cent. in certain cases. It is proposed to amend the said sub-section so as to provide that the concessional rate of tax shall apply to the transfer of a unit of a business trust as they apply in case of a unit of an equity oriented fund. It is further proposed that the provisions of this sub-section shall not apply in respect of any income arising from transfer of units of a business trust which were acquired by the assessee in consideration of a transfer referred to in clause (xvii) of section 47. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 34 of the Bill seeks to amend section 112 of the Income-tax Act relating to tax on long-term capital gains. The existing provisions contained in section 112 provide for tax payable in the case of income arising from the transfer of a long-term capital asset. The proviso to sub-section (1) provides that where the tax payable in resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Act relating to anonymous donations to be taxed in certain cases. The existing provisions of section 115BBC of the Income-tax Act provide for computation of income-tax payable by an assessee, being a person in receipt of income on behalf of any university or other educational institution referred to in sub-clause (iiiad) or sub-clause (vi) or any hospital; or other institution referred to in sub-clause (iiiae) or sub-clause (via) or any fund or institution referred to in sub-clause (v) of clause (23C) of section 10 or any trust or institution referred to in section 11, where such income includes any income by way of anonymous donation. It is proposed to amend clause (ii) of the said section to provide that the income-tax payable shall be the aggregate of- (i) the amount of income-tax calculated at the rate of thirty per cent. on the aggregate of anonymous donations received in excess of the higher of the following, namely: (A) five per cent. of the total donations received by the assessee; or (B) one lakh rupees; and (ii) the amount of income-tax with which the assessee would have been char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eciation allowable in accordance with the provisions of section 32 to arrive at adjusted total income. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 39 of the Bill seeks to amend section 115JEE of the Income-tax Act relating to application of the Chapter XII-BA to certain persons. The existing provisions of sub-section (1) of section 115JEE provide that the Chapter shall be applicable to any person who has claimed a deduction under Part C of Chapter VI-A or claimed a deduction under section 10AA. Further the present provisions of sub-section (2) of section 115JEE provide that the Chapter shall not be applicable to an individual or an Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person, if the adjusted total income does not exceed twenty lakh rupees. It is proposed to insert a new clause (c) in sub-section (1) so as to apply the Chapter to a person who has claimed deduction under section 35AD. It is further proposed to inse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of distributed income, referred to therein, shall be increased to such amount as would, after reduction of the additional income-tax on such increased amount at the rate specified in sub-section (2), be equal to the amount of income distributed by the Mutual Fund. This amendment will take effect from 1st October, 2014. The existing provisions contained in sub-section (3A) of section 115R provide that the person responsible for making payment of the income distributed by the Unit Trust of India or a Mutual Fund and the Unit Trust of India or the Mutual Fund, as the case may be, shall on or before the 15th September in each year, furnish to the prescribed income-tax authority, a statement in the prescribed form and verified in the prescribed manner, giving the details of the amount of income distributed to unit holders during the previous year, the tax paid thereon and such other relevant details as may be prescribed. It is proposed to omit sub-section (3A) of the aforesaid section 115R. This amendment will take effect from 1st April, 2015. Clause 42 of the Bill seeks to amend section 115TA of the Income-tax Act relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Chief Commissioners of Income-tax, Principal Commissioners of Income-tax, Principal Directors General of Income-tax and Principal Directors of Income-tax as income-tax authorities under the said section 116. These amendments will take effect retrospectively from 1 st June, 2013. Clause 45 of the Bill seeks to amend section 133A of the Income-tax Act relating to power of survey. The existing provision contained in section 133A empowers the income-tax authority to enter a premises in which business or profession is carried out for the purposes of survey. It is proposed to amend section 133A so as to insert sub- section (2A) after sub-section (2) so as to provide that without prejudice to the provisions of sub-section (1), an income-tax authority acting under this sub-section may for the purpose of verifying that tax has been deducted or collected at source in accordance with the provisions under sub-heading B of Chapter XVII or under sub-heading BB of Chapter XVII, as the case may be, enter, after sunrise and before sunset, any office, or any other place where business or profession is carried on, within the limits of the area a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmation or documents, verified in the manner specified therein which may be useful for, or relevant to, any enquiry or proceeding under this Act. This amendment will take effect from 1st October, 2014. Clause 47 of the Bill seeks to amend section 139 of the Income-tax Act relating to return of income. The existing provisions contained in sub-section (4C) of section 139, inter alia, provide for filing return of income by certain entities whose income is exempt under section 10 of the Act. It is proposed to amend sub-section (4C) of section 139 so as to provide that Mutual Fund referred to in clause (23D) of section 10 and securitisation trust referred to in clause (23DA) of section 10 and Venture Capital Company or Venture Capital Fund referred to in clause (23FB) of section 10 shall, if the total income in respect of which such fund, trust or company is assessable, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of estimating the value of the asset, property or investment, have all the powers that he has under section 38A of the Wealth-tax Act. Sub-section (4) seeks to provide that the Valuation Officer shall, estimate the value of the asset, property or investment after taking into account the evidence produced by the assessee and any other evidence in his possession gathered, after giving an opportunity of being heard to the assessee. Sub-section (5) seeks to provide that the Valuation Officer may estimate the value of the asset, property or investment to the best of his judgment, if the assessee does not co-operate or comply with his direction. Sub-section (6) seeks to provide that the Valuation Officer shall send a copy of the report of the estimate made under sub- section (4) or sub-section (5) to the Assessing Officer and the assessee, within a period of six months from the end of the month in which a reference is made under sub-section (1). Sub-section (7) seeks to provide that the Assessing Officer on receipt of the report from the Valuation Officer may, after giving the assessee an opportunity of being heard, take into ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pril, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 51 of the Bill seeks to amend section 153 of the Income-tax Act relating to time limit for completion of assessments and reassessments. The existing provisions contained in Explanation 1 to section 153 provide that certain periods specified therein are to be excluded while computing the period of limitation for the purposes of the said section. It is proposed to insert a new clause (iv) in Explanation 1 so as to provide that the period commencing from the date on which the Assessing Officer makes a reference to Valuation Officer under sub-section (1) of section 142A and ending with the date on which the report of the Valuation Officer is received by the Assessing Officer shall be excluded in computing the period of limitation for the purposes of section 153. This amendment will take effect from 1st October, 2014. Clause 52 of the Bill seeks to amend section 153B of the Income-tax Act relating to time limit for completion of assessment under section 153A. The existing provisions contained in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h such other person and issue notice and assess or reassess the income of the other person in accordance with the provisions of section 153A, if, such Assessing Officer is satisfied that the books of account or documents or assets seized or requisitioned have a bearing on the determination of the total income of such other person for the relevant assessment year or years referred to in sub-section (1) of section 153A. This amendment will take effect from 1st October, 2014. Clause 54 of the Bill seeks to amend section 194A of the Income-tax Act relating to deduction of tax at source on interest other than interest on securities . It is proposed to insert a new clause (xi) in sub-section (3) of section 194A so as to exempt from deduction of tax at source, the interest income payable by special purpose vehicle to a business trust. This amendment will take effect from 1st October, 2014. Clause 55 of the Bill seeks to insert a new section 194DA in the Income-tax Act relating to payment in respect of life insurance policy. It is proposed to insert a new section 194DA so as to provide that any person responsibl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) of the aforesaid section to provide that the borrowings can be made before 1st July, 2017 instead of currently provided cut-off date of 1st July, 2015. It is further proposed to provide that the benefit of the section would be available to all long-term bonds including long- term infrastructure bonds. These amendments will take effect from 1st October, 2014. Clause 58 of the Bill seeks to amend section 200 of the Income-tax Act relating to duty of person deducting tax. The existing provisions contained in sub-section (3) of the aforesaid section provide that any person deducting any sum on or after 1st April, 2005 in accordance with the foregoing provisions of Chapter XVII or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time, prepare such statements for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct from 1st October, 2014. Clause 61 of the Bill seeks to amend section 206AA of the Income-tax Act relating to requirement to furnish Permanent Account Number. Under the existing provisions contained in sub-section (7) of the aforesaid section it is provided that section 206AA shall not apply in respect of payment of interest on long-term infrastructure bonds referred to in section 194LC of the Act. It is proposed to amend sub-section (7) to provide that section 206AA shall not apply in respect of payment of interest on long- term bonds referred to in section 194LC of the Act. This amendment will take effect from 1st October, 2014. Clause 62 of the Bill seeks to amend section 220 of the Income-tax Act relating to when tax payable and when assesee deemed in default. The existing provision contained in sub-section (1) of the aforesaid section provides that any amount specified as payable in a notice of demand under section 156 shall be paid within thirty days of the service of notice at the place and to the person mentioned in the notice. It is proposed to insert a new sub-section in the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account if, the amount of such loan or deposit or the aggregate amount of such loans or deposits is twenty thousand rupees or more. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to assessment year 2015-16 and subsequent years. Clause 64 of the Bill seeks to amend section 269T of the Income-tax Act relating to mode of repayment of certain loans and deposits. The existing provisions of the aforesaid section provide that no loan or deposit shall be repaid otherwise than by an account payee cheque or account payee bank draft, if the amount of such loan or deposit together with interest or the aggregate amount of such loans or deposits together with interest, if any payable thereon, is twenty thousand rupees or more. It is proposed to amend section 269T so as to provide that no person shall repay any loan or deposit made with it otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person who has made the loan or deposit or by use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ormation or document under section 92D of the Act. Under the existing provisions of section 271G, if any person who has entered into an international transaction or specified domestic transactions fails to furnish any such document or information as required by sub-section (3) of section 92D, then, such person shall be liable to a penalty of a sum equal to two per cent. of the value of international transaction or specified domestic transaction for each failure. The said section provides that the above penalty may be levied by the Assessing Officer or the Commissioner (Appeals). It is proposed to amend section 271G to include Transfer Pricing Officer as referred to in section 92CA, as an authority competent to levy the penalty under the section 271G in addition to the Assessing Officer and the Commissioner (Appeals). This amendment will take effect from 1st October, 2014. Clause 68 of the Bill seeks to amend section 271H of the Income-tax Act relating to penalty for failure to furnish statements, etc. The existing provisions contained in sub-section (1) of section 271H provide the circumstances in which the person sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have effect after the expiry of six months provided that the Chief Commissioner or Commissioner may extend the period up to a total period of two years or sixty days after the date of assessment or reassessment, whichever is later. This amendment will take effect from 1st October, 2014. Clause 71 of the Bill seeks to substitute section 285BA of the Income-tax Act relating to obligation to furnish annual information return with a new section. The existing provisions of section 285BA provide for filing of an annual information return by specified persons in respect of specified financial transactions which is registered or recorded by them and which is relevant and required for the purposes of the Act to the prescribed income-tax authority. It is proposed to amend the said section so as to provide for furnishing of statement of information by a prescribed reporting financial institution in respect of any specified financial transaction or reportable account to the prescribed income-tax authority. It is further proposed that the statement of information shall be furnished for such period, within such time, in the form and manner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976, which are imported prior to the 7th day of February, 2002 shall be deemed to be and shall be always deemed to have been exempted from duties of customs. It further provides that notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, no suit or other proceedings shall be maintained or continued in any court, tribunal or other authority in respect of such mineral oils. It also provides that notwithstanding such exemption in respect of mineral oils specified therein, no refund of duties of customs paid in respect of such mineral oils shall be made. Clause 76 of the Bill seeks to amend sub-section (3) of section 46 of the Customs Act so as to omit the first proviso and to amend the second proviso with a view to enable advance filing of import declarations at Land Customs Stations to facilitate the advance risk assessment, processing and legitimate trade so as to bring the same at par with the practices at Sea Ports and Airports and also to be in line with global standards. Clause 77 of the Bill seeks to amend clause (f) of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d or penalty imposed or both before filing an appeal. It also seeks to provide that the provisions of this section shall not be applicable to stay applications and appeals pending before the Appellate Authorities prior to the enactment of the Bill. Clause 84 of the Bill seeks to insert the words The Commissioner (Appeal) in sub-section (4) of section 131BA of the Customs Act so as to enable the Commissioner (Appeal) hearing an appeal, application, revision or reference to take into consideration the circumstances under which the appeal, application, revision or reference was not filed by the Commissioner of customs pursuant to the orders or instructions or directions issued under sub-section (1) thereof. Clause 85 of the Bill seeks to amend notification issued under sub-section (1) of section 25 of the Customs Act bearing number G.S.R. 185 (E), dated the 17th March, 2012 in the manner specified in the Second Schedule retrospectively with effect from 8th February, 2013 and up to 10th July, 2014 so as to exempt liquefied propane and butane mixture, liquefied propane, liquefied butane and liquefied petroleum gases (LPG) imported by the Indian O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in view of the amendments in clause (g) of section 31. Clause 93 of the Bill seeks to amend sub-section (1) of section 32E of the Central Excise Act by inserting a proviso therein so as to allow the Settlement Commission to entertain an application by the applicant where returns are not filed by him. It further seeks to substitute the word, figures and letters section 11AA for the word, figures and letters section 11AB to align it with the existing provision on interest on delayed payment of duty. It also seeks to omit sub-section (2) of that section as the same has become redundant and leads to different interpretations. Clause 94 of the Bill seeks to amend clause (i) of sub-section (1) of section 32-O of the Central Excise Act so as to insert an Explanation therein to clarify that the concealment of particulars of duty liability relates to any such concealment made from the Central Excise Officer, to avoid confusion as to whether the concealment is from Central Excise Officer or Settlement Commission and making the provision clear. Clause 95 of the Bill seeks to amend section 35B of the Central Excise Act so as to (i) amend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he manner specified in the Fourth Schedule retrospectively with effect from 13th day of April, 2010 so as to substitute the first proviso to the said rule. Clause 102 of the Bill seeks to amend notification issued under sub-section (1) of section 5A of the Central Excise Act published vide number G.S.R.95 (E), dated the 1st March, 2006 [No.5/2006-Central Excise, dated the 1st March, 2006] in the manner specified in the Fifth Schedule retrospectively (a) with effect from 29th June, 2010 to 16th March, 2012 so as to exempt duty of excise (i) on polyester staple fibre/polyester filament yarn manufactured from plastic waste or scrap or plastic waste including waste polyethylene terephthalate bottles; (ii) on tow manufactured and captively consumed within the factory of its production for the manufacture of goods at (i) above; (b) with effect from 1st March, 2011 to 16th March, 2012 so as to exempt duty of excise on unbranded articles of precious metals. Clause 103 of the Bill seeks to amend notification issued under sub-section (1) of section 5A of the Central Excise Act vide number G.S.R. 163 (E), dated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om such date as the Central Government may, by notification, appoint. Sub-clause (C) seeks to amend section 67A so as to substitute the Explanation defining the rate of exchange , with effect from such date as the Central Government may, by notification, appoint. Sub-clause (D) seeks to amend section 73 with a view to insert sub-section (4B) to specify a time limit for adjudication, as either six months or one year, depending on the nature of case, to be adhered to where it is possible. Sub-clause (E) seeks to amend sub-section (1) of section 80 so as to omit the reference to the first proviso to sub-section (1) of section 78. Sub-clause (F) seeks to amend sub-section (1) of section 82 so as to provide that where the Joint Commissioner of Central Excise or Additional Commissioner of Central Excise or such other Central Excise officer as may be notified by the Board has reasons to believe that any documents or books or things, which in his opinion shall be useful for or relevant to any proceedings under this Chapter, are secreted in any place, he may authorise in writing any Central Excise officer to search for and seize or may hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period beginning on the 1st April, 2014 to 31st March, 2019. This amendment will take effect retrospectively from 1st April, 2014. Clause 109 of the Bill seeks to amend Chapter VII of the Finance (No. 2) Act, 2004 which deals with levy of securities transaction tax on transaction of equity shares of a company on the stock exchange. It is proposed to amend the said Chapter in order to provide leves transaction tax on transactions in units of a business trust on the same line as are applicable to transactions in equity shares in a company. This amendment will take effect from 1st October, 2014. Clause 110 of the Bill seeks to amend the marginal heading of section 85 of the Finance Act, 2005 and also the Seventh Schedule thereto in the manner specified in the Ninth Schedule so as to impose a surcharge of 5 per cent. on aerated waters and other waters containing added sugar and to omit the tariff item 2402 20 60 relating to filter cigarettes. Clause 111 of the Bill seeks to amend section 83 of the Finance Act, 2010 so as to expand the scope of the purposes of levy of the Clean Energy Cess thereunder. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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