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Notes on clauses

to tax for the assessment year 2018-2019. Further, it lays down the rates at which tax is to be deducted at source during the financial year 2019-2020 from income other than Salaries subject to such deductions under the Income-tax Act; and the rates at which advance tax is to be paid, tax is to be deducted at source from, or paid on, income chargeable under the head Salaries and tax is to be calculated and charged in special cases for the financial year 2019-2020. Rates of income-tax for the assessment year 2019-2020 Part I of the First Schedule to the Bill specifies the rates at which income is liable to tax for the assessment year 2019-2020. These rates are the same as those specified in Part III of the First Schedule to the Finance Act, 2018, for the purposes of deduction of tax at source from Salaries , computation of advance tax and charging of income-tax in special cases during the financial year 2018-2019. Rates for deduction of tax at source during the financial year 2019-2020 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 2019-2020 from income other than .....

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and income-tax is to be calculated or charged in special cases for the financial year 2019-2020. Paragraph A of this Part specifies the rates of income-tax as under:- (i) in the case of every individual [other than those specifically mentioned in sub-paras (ii) and (iii)] or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies:- Up to ₹ 2,50,000 Nil ₹ 2,50,001 to ₹ 5,00,000 5 per cent. ₹ 5,00,001 to ₹ 10,00,000 20 per cent. Above ₹ 10,00,000 30 per cent.; (ii) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than the age of eighty years at any time during the previous year:- Up to ₹ 3,00,000 Nil ₹ 3,00,001 to ₹ 5,00,000 5 per cent. ₹ 5,00,001 to ₹ 10,00,000 20 per cent. Above ₹ 10,00,000 30 per cent.; (iii) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any .....

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me. In the case of companies other than domestic companies, the rate of tax will continue to be the same as that specified for assessment year 2019-2020. Surcharge in the case of domestic companies having total income above one crore rupees but not above ten crore rupees shall be levied at the rate of seven per cent. In the case of domestic companies having total income above ten crore rupees, surcharge shall be levied at the rate of twelve per cent. In the case of companies other than domestic companies having income above one crore rupees but not above ten crore rupees surcharge shall be levied at the rate of two per cent. In the case of companies other than domestic companies having total income above ten crore rupees, surcharge shall be levied at the rate of five per cent. Marginal relief will be provided. In all other cases (including sections 115-O, 115QA, 115R, 115TA, 115TD, etc.), the surcharge will be applicable at the rate of twelve per cent. The existing Education Cess and Secondary and Higher Education Cess currently being levied in all cases covered under Part 1 of the First Schedule shall be substituted by a new cess by the name of Health and Education Cess : at the r .....

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5 of the Bill seeks to amend section 9A of the Incometax Act relating to certain activities not to constitute business connection in India. Sub-section (3) of the said section provides for the conditions to be fulfilled for being an eligible investment fund. Clause (j) of the said sub-section provides that the monthly average of the corpus of the fund shall not be less than one hundred crore rupees. The first proviso to said clause further provides that where the fund has been established or incorporated in the previous year, the corpus of fund shall not be less than one hundred crore rupees at the end of such previous year. It is proposed to amend the said proviso so as to provide that where the fund has been established or incorporated in the previous year, the fund shall be required to fulfill the condition of maintaining the corpus of one hundred crore rupees within a period of six months from the last day of the month of its establishment or incorporation, or at the end of such previous year, whichever is later. Further, clause (m) of said sub-section provides that the remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken b .....

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d will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause (34A) of the said section provides for exemption to any income arising to a shareholder on account of buy-back of shares not being listed on a recognised stock exchange by the company as referred to in section 115QA. It is proposed to amend the said clause so as to provide the said exemption also to the income arising to a shareholder on account of buy-back of shares listed on a recognised stock exchange by the company as referred to in section 115QA. This amendment will take effect from 5th July, 2019. Clause 7 of the Bill seeks to amend section 12AA of the Incometax Act relating to procedure for registration. Sub-clause (a) of sub-section (1) of the said section, inter alia, provides that while considering the application of a trust or institution, the Principal Commissioner or Commissioner may call for documents or information necessary in order to satisfy himself about the genuineness of its activities. It is proposed to substitute the said sub-clause so as to provide that besides the genuineness of its activities, the Principal Commissioner or Commissioner shall als .....

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electronic mode through which a political party may also receive donations exceeding two thousand rupees. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. 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 said section provides for deduction to an assessee of the whole of any expenditure of capital nature incurred, wholly and exclusively, for the purposes of any specified business carried on by him during the previous year in which such expenditure is incurred by him. Clause (f) of sub-section (8) of the said section provides that the term 'any expenditure of capital nature' shall not include any expenditure in respect of which the assessee makes payment or an aggregate of payments exceeding ten thousand rupees to a person in a day through any mode other than an account payee cheque or an account payee bank draft or using the electronic clearing system through a bank account. It is proposed to amend the said clause (f) so as to empower the Board to make rules to provide th .....

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ting to expenses or payments not deductible in certain circumstances. Sub-sections (3), (3A) and (4) of the said section provide for disallowance of any expenditure for which the assessee makes payment (or an aggregate of payments) exceeding ten thousand rupees through any mode other than through an account payee cheque or an account payee bank draft or using the electronic clearing system through a bank account. It is proposed to amend the said sub-sections so as to empower the Board to make rules to provide that payment made through such other electronic mode as may be prescribed shall also be allowed as deduction. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. 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. Sub-section (1) of the said section defines the term actual cost to mean the actual cost of the assets to the assessee, reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any other person o .....

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on the 1st April, 2019, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him. It is also proposed to insert Explanation 3CA in the said section to provide that a deduction of any sum, being interest payable under clause (da) of this section, shall be allowed if such interest has been actually paid and any interest referred to in that clause which has been converted into a loan or borrowing shall not be deemed to have been actually paid. It is also proposed to define the expressions deposit taking non-banking financial company , non-banking financial company and systemically important non-deposit taking non-banking financial company in the said Explanation 4 to the said section. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 14 of the Bill seeks to amend section 43CA of the Incometax Act relating to special provision for value of conside .....

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al company and systemically important non-deposit taking non-banking financial company in the Explanation to the said section. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 16 of the Bill seeks to amend section 44AD of the Incometax Act relating to special provision for computing profits and gains of business on presumptive basis. Sub-section (1) of the said section provides that notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent. of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head Profits and gains of business or profession . The proviso to the said sub-section (1) provides that in respect of the amount of total turnover or gross receipts which is received by an account payee cheque .....

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from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 18 of the Bill seeks to amend section 50C of the Incometax Act relating to special provision for full value of consideration in certain cases. The second proviso to sub-section (1) specifies that the first proviso shall apply only in a case where the amount of consideration or a part thereof has been received by way of an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account on or before the date of agreement for transfer of the asset. It is proposed to amend the said second proviso 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 any other electronic mode as may be prescribed. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 19 of the Bill seeks to amend section 50CA of the Incometax Act relating to special provision for ful .....

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case of an eligible start-up, in place of five years, the restriction of three years on transfer from the date of acquisition of new asset, being computer or computer software shall apply; the capital gains arising from transfer of residential property made upto the 31st March, 2021 shall be eligible for the benefit under the said section; and the assessee shall have more than twenty-five per cent. share capital or more than twenty-five per cent. voting rights after the subscription in shares in the eligible company. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 21 of the Bill seeks to amend section 56 of the Incometax Act relating to income from other sources. Clause (viib) of sub-section (2) of the said section provides that where a company, not being a company in which the public are substantially interested, receives in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall n .....

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n account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account on or before the date of agreement for transfer of the asset. It is proposed to amend the said second proviso 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 part thereof has been received by way of any other electronic mode as may be prescribed. The proviso to the said clause (x) provides that where any person receives, in any previous year, from any person or persons any property without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property or consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, then the aggregate fair market value of such property as exceeds such consideration shall be the income of the person receiving such property. It is proposed to insert a new clause (XI) in the proviso to the said clause (x) so as to provide that any sum of money or any property received from such class .....

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that fifty-one per cent. shareholders of amalgamating or demerged foreign company continue to be the shareholders of the amalgamated or the resulting foreign company. Clause (c) of sub-section (2) to the said section provides that nothing contained in this section shall apply to a company where a change in the shareholding takes place in a previous year pursuant to a resolution plan approved under the Insolvency and Bankruptcy Code, 2016, after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner. Clause (d) of sub-section (2) to the said section provides that nothing contained in this section shall apply to a company, and its subsidiaries and the subsidiary of such subsidiary, where,- (i) the National Company Law Tribunal, on a petition moved by the Central Government under section 241 of the Companies Act, 2013 has suspended the Board of Directors of such company and has appointed new directors which are nominated by the Central Government, under section 242 of the said Act; and (ii) a change in shareholding of such company, and its subsidiary and the subsidiary of such subsidiary, has taken place in a previous year pursua .....

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ontributed by the Central Government as does not exceed fourteen per cent. of his salary in the previous year. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 25 of of the Bill seeks to insert a new sections 80EEA and 80EEB in the Income-tax Act relating to deduction in respect of interest on loan taken for certain house property and deduction in respect of purchase of electric vehicle. The proposed new section 80EEA seeks to provide for deduction in respect of interest on loan taken for residential house property from any financial institution up to one lakh and fifty-thousand rupees subject to the conditions specified therein. The proposed new section 80EEB seeks to provide for a deduction up to one lakh and fifty thousand rupees in respect of interest on loan taken for purchase of an electric vehicle from any financial institution subject to the conditions specified therein. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 26 of the Bill seeks .....

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ment year 2020-2021 and subsequent assessment years. Clause 28 of the Bill seeks to amend section 80LA of the Incometax Act relating to deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre. The said section, inter alia, provides that where the gross total income of an assessee, (i) being a scheduled bank, or, any bank incorporated by or under the laws of a country outside India; and having an Offshore Banking Unit in a Special Economic Zone; or (ii) being a Unit of an International Financial Services Centre, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to (a) one hundred per cent. of such income for five consecutive assessment years beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 or permission or registration under the Securities and Exchange Board of India Act, 1992 or any other relevant law was obtained, and thereafter; (b) fifty per cent. of such income .....

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ion provides exemption in cases where the amount of primary adjustment made in any previous year does not exceed the threshold limit of one crore rupees; and the primary adjustment is made in respect of an assessment year commencing on or before 1st April, 2016. It is proposed to amend clause (iii) of the said sub-section so as to provide that the secondary adjustment will be applicable where the primary adjustment to transfer price is determined by an advance pricing agreement entered into by the assessee under section 92CC on or after 1st April, 2017. It is also proposed to insert a second proviso in sub-section (1) so as to provide that no refund of any taxes paid, if any, by virtue of provisions of sub-section (1) as they stood immediately before their amendment by this Bill, shall be claimed and allowed. Sub-section (2) of said section, inter alia, provides that the excess money available to the associated enterprise shall be repatriated to India from such associated enterprise within prescribed time and in case of non-repatriation, interest thereon is to be computed deeming the same as advance to such associated enterprise. It is proposed to amend said sub-section so as to pr .....

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stic transaction, and by the constituent entity of an international group referred to in section 286. Sub-section (2) of the proposed section empowers the Board to prescribe the period for which said information and document shall be kept and maintained. Sub-section (3) of the proposed section provides that the Assessing Officer or the Commissioner (Appeals) may, in the course of any proceeding under this Act, require any person referred to in clause (i) of sub-section (1) to furnish any information or document referred therein, within a period of thirty days from the date of receipt of a notice issued in this regard which may be further extended upto thirty days on such person's application. Sub-section (4) of the proposed section provides that the constituent entity referred to in clause (ii) of sub-section (1) shall furnish the information and document referred therein to the authority prescribed under sub-section (1) of section 286, in such manner, on or before such date as may be prescribed. These amendments will take effect from the 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 32 of the .....

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not include depreciation. It is proposed to amend the said section so as to provide that the aggregate amount of unabsorbed depreciation and loss (excluding depreciation) brought forward shall also be allowed to be reduced from the book profit in case of a company, and its subsidiary and the subsidiary of such subsidiary, where, the National Company Law Tribunal, on an application moved by the Central Government under section 241 of the Companies Act, 2013 has suspended the Board of Directors of such company and has appointed new directors who are nominated by the Central Government, under section 242 of the said Act. It is also proposed to amend the said section so as to provide that a company shall be a subsidiary of another company, if such other company holds more than half in nominal value of the equity share capital of the company. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 35 of the Bill seeks to amend section 115-O of the Income-tax Act relating to tax on distributed profits of domestic companies. Sub-section (8) of the said section provides that notw .....

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said sub-section. These amendments will take effect from 1st September, 2019. Clause 38 of the Bill seeks to amend section 115UB of the Income-tax Act relating to tax on income of investment fund and its unit holders. Clauses (i) of sub-section (2) of said section, inter alia, provides that the loss of an investment fund for any previous year, being the net result of computation of total income of the investment fund, without giving effect to the exemption to income other than business income, under any head of income which cannot be or is not wholly set-off against income under any other head of income of the said previous year, shall be allowed to carry forward and set-off in accordance with the provisions of Chapter VI. Clause (ii) of said sub-section provides that such loss shall not accrue or arise or received by the unit holder. It is proposed to substitute the said sub-clauses so as to provide that,- (i) the loss arising to the investment fund as a result of the computation under the head Profit and gains of business or profession , if any, shall be, allowed carry forward and set off in accordance with the provisions of Chapter VI; and such loss shall not accrue, or arise or .....

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4GA and 54GB. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent years. Clause 40 of the Bill seeks to amend section 139A of the Incometax Act relating to permanent account number. Sub-section (1) of the said section, inter alia, provides that every person specified therein and who has not been allotted a permanent account number shall apply to the Assessing Officer for allotment of a permanent account number. It is proposed to insert a new clause (vii) in the said sub-section so as to provide that every person, who intends to enter into such transaction, as may be prescribed by the Board in the interest of revenue, shall also apply to the Assessing Officer for allotment of a permanent account number. It is further proposed to insert a new sub-section (5E) in the said section to provide that notwithstanding anything contained in this Act, every person who is required to furnish or intimate or quote his permanent account number under this Act, and who, has not been allotted a permanent account number and possesses the Aadhaar number, may, furnish or intimate or quote his Aadhaar number in l .....

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ntimate 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 provided by rules. This amendment will take effect from 1st September, 2019. Clause 42 of the Bill seeks to amend section 140A of the Incometax Act relating to self-assessment. The said section 140A, inter alia, provides for payment of selfassessment 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 f .....

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lub membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property. This amendment will take effect from 1st September, 2019. Clause 46 of the Bill seeks to insert new sections 194M relating to payment of certain sums by certain individuals or Hindu undivided family and 194N relating to payment of certain amounts in cash in the Income-tax Act. Sub-section (1) of the proposed new section 194M seeks to provide for levy of tax deduction at source at the rate of five per cent. on any sum, or aggregate of sums, paid by an individual or a Hindu undivided family (other than those who are required to deduct income-tax as per the provisions of section 194C or section 194J) to a resident for carrying out any work (including supply of labour for carrying out any work) or by way of fees for professional services at the time of credit to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier. The proviso to the said sub-section provides that no incometax referred to in sub-sect .....

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as to empower the Board to prescribe the form and manner of making such application and the manner of determining the appropriate proportion of such sum chargeable. Sub-section (7) of the said section empowers the Board to specify a class of persons or cases, where the person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall make an application to the Assessing Officer to determine, by general or special order, the appropriate proportion of sum chargeable to tax. It is proposed to amend the said sub-section so as to empower the Board to prescribe the form and manner of making such application and the manner of determining the appropriate proportion of such sum chargeable to tax. These amendments will take effect from 1st November, 2019. Clause 48 of the Bill seeks to amend section 197 of the Incometax Act relating to certificate for deduction at lower rate. It is proposed to amend sub-section (1) of the said section so as to provide that the sums on which tax deduction at source has been deducted under section 194M shall also be eligible for certificate for deduction at .....

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Sub-section (1) of the proposed 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 proposed section provides that the Board may, by rules, 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 incometax authority or t .....

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amend section 234B of the Incometax Act relating to interest for defaults in payment of advance tax. The said section 234B, inter alia, provides for charging of interest for defaults in payment of advance tax. It is proposed to insert a new clause (ia) in Explanation 1 to sub-section (1) of the said section, so as to provide that any relief of tax allowed under section 89 shall also be reduced from the tax on the total income for the purpose of charging interest under the said section. 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. Clause 54 of the Bill seeks to amend section 234C of the Incometax Act relating to interest for deferment of advance tax. The said section 234C, inter alia, provides for charging of interest for deferment of advance tax. It is proposed to insert a new clause (ia) in the Explanation to the said section, so as to provide that any relief of tax allowed under section 89 shall also be reduced from the tax on the returned income for the purpose of charging interest under the said section. These amendments will take effect retrospect .....

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on or in respect of transactions relating to one event or occasion from a person otherwise than by an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account. It is proposed to amend the said section so as to empower the Board to make rules to prescribe any other electronic mode of undertaking transactions. This amendment will take effect from 1st September, 2019. Clause 59 of the Bill seeks to insert a new section 269SU of the Income-tax Act relating to acceptance of payment through prescribed electronic modes. It is proposed to provide that every person, carrying on business, shall provide facility for accepting payment through the prescribed electronic modes, in addition to the facility for other electronic modes of payment, if any, being provided by such person, if his total sales, turnover or gross receipts, as the case may be, in business exceeds fifty crore rupees during the immediately preceding previous year. This amendment will take effect from 1st November, 2019. Clause 60 of the Bill seeks to amend section 269T of the Incometax Act relating to mode of repayment of certain loans or deposits. The said section proh .....

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lating to penalty for failure to comply with provisions of section 269SU. It is proposed to provide that if a person who is required to provide facility for accepting payment through the prescribed electronic modes of payment referred to in section 269SU, fails to provide such facility, he shall be liable to pay, by way of penalty, a sum of five thousand rupees, for every day during which such failure continues. It is further proposed that the penalty shall not be imposable if the person proves that there were good and sufficient reasons for such failure. It is also proposed that any such penalty shall be imposed by the Joint Commissioner. This amendment will take effect from 1st November, 2019. Clause 63 of the Bill seeks to amend section 271FAA of the Income-tax Act relating to penalty for furnishing inaccurate statement of financial transaction or reportable account. The said section, inter alia, provides for penalty of a sum of fifty thousand rupees if a person referred to in clause (k) of sub-section (1) of section 285BA furnishes inaccurate information in the statement. It is proposed to amend the said section so as to extend the penalty for furnishing inaccurate information .....

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re the expiry of the assessment year, and tax collected at source in the said proviso, and also to increase the threshold limit of tax payable from three thousand rupees to ten thousand rupees in the said proviso. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. 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. Sub-section (1) of the said section, inter alia, specifies the persons who are required to furnish statement in respect of specified 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 prescribed, shall also be required to furnish a statement under the said section. Second proviso to sub-section (3) of the said section specifies that the value or aggregate value of prescribed specified financial transaction during a financial year shall not be less than fifty thousand rupees. It is further proposed to o .....

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tend the said period from three years to seven years. It is further proposed to insert a new proviso in the said sub-rule so as to provide that the Board may, for reasons to be recorded in writing, extend the aforesaid period by a further period not exceeding three years. This amendment will take effect from 1st September, 2019. Customs Clause 69 of the Bill seeks to amend sub-section (1) of section 41 of the Customs Act so as to provide that the facility to furnish departure manifest shall, in addition to the person-in-charge of the conveyance, also be given to other person notified by the Central Government. Clause 70 of the Bill seeks to insert a new chapter XIIB relating to verification of identity and compliance in the Customs Act. The proposed new section 99B under that clause seeks to empower proper officer of customs to carry out verification of a person for ascertaining compliance with the provision of the Customs Act or any other law for the time being in force, for protecting the interests of revenue or to prevent smuggling in the manner as may be prescribed. It is proposed to verify identity of a person through Aadhaar number or through any other alternative and viable .....

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the expiry of the period so specified. Clause 74 of the Bill seeks to amend section 110A of the Customs Act so as to empower an adjudicating authority to release bank account provisionally attached under section 110 to the bank account holder on fulfilment of certain conditions. Clause 75 of the Bill seeks to insert a new section 114AB in the Customs Act. The proposed section seeks to provide that any person who has obtained any instrument by fraud, collusion, wilful misstatement or suppression of facts and such instrument has been utilised by such person or any other person for discharging duty, such person to whom the instrument was issued shall be liable for penalty not exceeding the face value of such instrument. It is also proposed to insert an Explanation to define the term instrument . Clause 76 of the Bill seeks to amend section 117 of the Customs Act so as to increase the maximum limit of penalty from one lakh rupees to four lakh rupees. Clause 77 of the Bill seeks to amend first proviso to section 125 of the Customs Act so as to provide that the no fine in lieu of confiscation shall be imposed in respect of cases of deemed closure under section 28. Clause 78 of the Bill .....

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5, to amend the notification number G.S.R. 665 (E), dated the 2nd August, 1976, on the temporary importation of vehicles as per the Convention on the Temporary Importation of Private Road Vehicles to bring it into force on and from the 1st July, 2017, so as to give retrospective exemption from the integrated tax leviable under section 3 of the Customs Tariff Act, 1975. Customs Tariff Clause 85 of the Bill seeks to insert sub-section (1A) under section 9 of the Customs Tariff Act, so as to provide anticircumvention provision in case of Countervailing duty. Clause 86 of the Bill seeks to amend sub-section (1) of section 9C of the Customs Tariff Act, so as to provide for filing of appeal before the Customs, Excise and Service Tax Appellate Tribunal against the findings of the designated authority regarding determination of safeguard duty. Clause 87 of the Bill seeks to amend the First Schedule to the Customs Tariff Act,- (a) in the manner specified in the Fourth Schedule with a view to revise the tariff rates in respect of certain tariff items and to amend Chapter Note of Chapter 98 so as to exclude printing books from the purview of heading 9804; (b) in the manner specified in the Fi .....

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mend section 25 of the Central Goods and Services Tax Act so as to provide for mandatory Aadhaar submission or authentication for persons who intend to take or have taken registration under the said Act in such manner as may be notified by the Government on the recommendations of the Council. Clause 95 of the Bill seeks to insert a new section 31A in the Central Goods and Services Tax Act, to provide that supplier shall mandatorily offer facility for digital payments to his recipient. Clause 96 of the Bill seeks to amend section 39 of the Central Goods and Services Tax Act so as to provide for furnishing of annual returns and for quarterly payment of tax by taxpayer who opts for composition levy and to provide for certain other category of tax payers, an option for quarterly and monthly payments under the proposed new return filing system. Clause 97 of the Bill seeks to amend section 44 of the Central Goods and Services Tax Act so as to empower the Commissioner to extend the due date for furnishing Annual return and reconciliation statement. Clause 98 of the Bill seeks to amend section 49 of the Central Goods and Services Tax Act so as to provide facility to the taxpayer to transfe .....

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point, it shall be decided by majority. Clause 105 of the Bill seeks to amend section 102 of the Central Goods and Services Tax Act so as to bring the National Appellate Authority within the ambit of that section to empower it to rectify its advance ruling. Clause 106 of the Bill seeks to amend section 103 of the Central Goods and Services Tax Act so as to provide that the advance ruling pronounced by the National Appellate Authority shall be binding on the applicants, being distinct persons and all registered persons having the same Permanent Account Number and on the concerned officers or the jurisdictional officers in respect of the said applicants and the registered persons having the same Permanent Account Number. It also provides that the ruling shall be binding unless there is a change in law or facts. Clause 107 of the Bill seeks to amend section 104 of the Central Goods and Services Tax Act to provide that advance ruling pronounced by the National Appellate Authority shall be void where the ruling has been obtained by fraud or suppression of material facts or misrepresentation of facts. Clause 108 of the Bill seeks to amend section 105 of the Central Goods and Services Tax .....

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, 2017. Service Tax Clause 116 of the Bill seeks to provide retrospective exemption from service tax on service by way of grant of liquor licence by the State Government, during the period from the 1st day of April, 2016 up to 30th day of June, 2017. Clause 117 of the Bill seeks to provide retrospective exemption from service tax to the long duration degree or diploma programmes except Executive Development Programme provided by the Indian Institutes of Management to the students during the period from the 1st day of July, 2003 up to the 31st day of March, 2016. Clause 118 of the Bill seeks to provide retrospective exemption from service tax on upfront amount paid for services by way of grant of long term lease of plots for development of infrastructure for financial business by the State Government Industrial Development Corporations or Undertakings or by any other entity having fifty per cent. or more ownership of the Central Government or State Government or Union territory, directly or through an entity which is wholly owned by such Governments, to the developers in the industrial or financial business area, during the period from the 1st day of October, 2013 up to the 30th day .....

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-insurance business through a branch in an International Financial Services Centre as specified in sub-section (1) of section 18 of the Special Economic Zones Act, 2005 for registration unless it has net owned funds of not less than rupees one thousand crore. This amendment will take effect retrospectively from 1st April, 2019. Clauses 144 and 145 of the Bill seek to amend certain provision of the Securities Contracts (Regulation) Act, 1956. It is proposed to amend section 23A of the said Act to provide that in addition to furnish information to recognised stock exchange the said information may also be furnished to the Board. Clauses 146 and 147 of the Bill seek to amend certain provisions of the Banking Companies (Acquisition and Transfer of undertakings) Act, 1970. It is proposed to amend section 9 of the Act to empower the Central Government to appoint not more than five full time directors of corresponding new bank. Clause 148 of the Bill seeks to amend the Genaral Insurance Business (Nationalisation) Act, 1972. It is propsed to amend subsection (2) of the section 16 of the Act to provide upto four companies instead of only four companies . Clauses 149 and 150 of the Bill seek .....

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ank to exempt housing finance institution. Clause 167 of the Bill seeks to amend section 44 of the said Act relating to obligation as to fidelity and secrecy. Clause 168 of the Bill seeks to amend section 46 of the Act to substitute Reserve Bank for national housing Bank throughout the Act. Clause 169 of the Bill seeks to amend section 49 of the Act to substitute the National Housing Bank or the Reserve Bank for the National Housing Bank . It is further propsed to substitute National Company Law Tribunal for Authorised officer . Clause 170 of the Bill seeks to amend section 51 of the said Act relating to cognisance of offences. Clause 171 of the Bill seeks to substitute section 52A of the said Act relating to power of National Housing Bank and Reserve Bank to impose fine. Clauses 172 to 176 of the Bill seek to amend the Prohibition of Benami Property Transactions Act, 1988. Section 23 of the said Act provides that the Initiating Officer, after obtaining prior approval of the Approving Authority, shall have power to conduct or cause to be conducted any inquiry or investigation in respect of any person, place, property, assets, documents, books of account or other documents, in respe .....

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ng which the proceeding is stayed by an order or injunction of any court is excluded. It is also proposed that if after exclusion of the period of stay if the remaining period is less than sixty days, the remaining period shall be deemed to extend to sixty days. It is also proposed to insert new sections 54A and 54B in the said Act. Sub-section (1) of the proposed new section 54A provides that the person shall pay a penalty of twenty-five thousand rupees for each failure to comply with summons under sub-section (1) of section 19; or to furnish information which he was required to furnish under section 21. Sub-section (2) of the said section provides for the authority who shall impose penalty. Sub-section (3) of the said section provides that no penalty shall be imposed without affording an opportunity of being heard to the person in respect of whom penalty is sought to be imposed. The proviso to the said sub-section provides that no penalty shall be imposed if such person proves that there were good and sufficient reasons for the contravention. The proposed new section 54B provides that the entries in the records or other documents in the custody of an authority shall be admitted i .....

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end section 10 of the Central Road and Infrastructure Fund Act, 2000 relating to functions of the Central Government. It is proposed to amend clause (iv) of subsection (1) of the said section for formulation of criteria for allocation of funds for development and maintenance of state road projects including the projects of inter-State and economic importance. It is proposed to omit clause (v) of sub-section (1) of said section 10 which provides for release of funds to the States for specific projects and monitoring of such projects and expenditure incurred thereon, and clauses (v) and (vii) of said sub-section to omit. clause (vii) of said sub-section which provides for allocation of share of funds to each State and Union territory specified in the First Schedule to the Constitution. Clause 183 of the Bill seeks to substitute sub-section (1) of section 11 of the Central Road and Infrastructure Fund Act, 2000 to have reference to clause (iv) sub-section (1) of Section 10 for formulation of criteria for allocation of funds for development and maintenance of road projects including the projects of inter-State and economic importance. Clause 184 of the Bill seeks to omit clause (c) bel .....

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A therein. It is also proposed to insert Section 72A to allow power to Central Government to constitute Inter Ministerial Co-ordination Committee that is responsible for coordination and cooperation across all relevant/competent authorities on implementation of Financial Action Task Force standards. This is required for effective implementation of Financial Action Task Force standards Recommendations and to draw, coordinate, monitor and review the Anti Money Laundering or Countering Financing of Terrorism policies or activities and their implementation to strengthen Anti Money Laundering or Countering Financing of Terrorism framework in line with Financial Action Task Force standards. It is also proposed to amend section 73 of the Act so as to provide certain rule making provisions. Clause 193 of the Bill seeks to amend section 99 of the Finance (No. 2) Act, 2004 relating to the value of taxable securities transaction. The said section provides for the value of taxable securities transaction in respect of sale of an option in securities, where option is exercised, shall be the settlement price. It is proposed to amend the said section so as to provide that the value of taxable secu .....

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the terms re-assess and reassessment under the said sub-sections. This amendment will take effect retrospectively from 1st July, 2015. Clause 197 of the Bill seeks to amend section 17 of the said Act relating to powers of Commissioner (Appeals). The existing provisions of clause (b) of sub-section (1) of the said section provide that the Commissioner (Appeals) may confirm or cancel the penalty order. It is proposed to amend the said clause to provide that the Commissioner (Appeals) may also vary the penalty order either to enhance or reduce the penalty. This amendment will take effect from lst September, 2019. Clause 198 of the Bill seeks to amend section 84 of the said Act relating to application of provisions of Income-tax Act. The said section provides for application of certain provisions of the Income-tax Act to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with necessary modifications. It is proposed to amend the said section so as to provide that the provisions of section 144A of the Income-tax Act shall also be applicable to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with necessary modifi .....

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