M/s. Indian and Eastern Newspapers Society, New Delhi Vs The Commissioner of Income-tax, New Delhi-31/08/1979

The word “information” means instruction or knowledge concerning facts or particulars, there is little difficulty. By its inherent nature, a fact has concrete existence. It influences the determination of an issue by the mere circumstance of its relevance. It requires no further authority to make it significant. Its quintessential value lies in its definitive vitality.

(SUPREME COURT OF INDIA)

M/s. Indian and Eastern Newspapers Society, New Delhi

Appellant

Versus

The Commissioner of Income-tax, New Delhi
Respondent

(Before : P. N. Bhagwati, V. D. Tulzapurkar And R. S. Pathak, JJ.)

Tax Reference Cases Nos. 1 to 4 of 1973, Decided on : 31-08-1979.

Income Tax Act, 1961—Section 147(b)— “information”—Meaning of—When Section 147 (b) of the Income-tax, Act is read as referring to “information” as to law, what is contemplated is information as to the law created by a formal source. It is law, we must remember, which because it issues from a competent legislature or a competent judicial or quasijudicial authority, influences the course of the assessment any decides and one or more of those matters which determine the assessee’s tax liability.

Counsel for the Parties:

Mr. V. S. Desai Sr. Advocate (Mrs. A. K. Verma, M/s. A. N. Haskar and J. B. Dadachanji Advocates with him), for Appellant;

Mr. T. A. Ramachandran and Miss As. Subhashini Advocates, for Respondent

Dr. Devi Pal Sr. Advocate (M/s. Ravinder Narain and J. B. Dadachanji Advocates with him), for Intervenes.

Judgement

Pathak, J—Can the view expressed by an internal audit party of the Income Tax Department on a point of law be regarded as “information” for the purpose of initiating proceedings under S. 147 (b) of the Income Tax Act, 1961? Opinion on the question has been divided among the High courts and accordingly the present cases have been referred by the Income-tax Appellate Tribunal under S. 257 of the Act.

2. The assessee, Messrs. Indian and Eastern Newspaper Society, is a society registered under the Indian Companies Act. It is a professional association of Newspapers established with the principal object of promoting the welfare and interest of all Newspapers. The assessee owns a building in which a conference hall and rooms are lesst out on rent to its members as well as to outsiders. Certain other services are also provided to the members. The income from that source was assessed to tax all along as income from business. It was so assessed for the years 1960-61, 1961-62, 1962-63 and 1963-64 also.

3. The Income-tax Department includes an internal audit organisation whose function it is to examine income-tax records and check mistakes made therein with a view ultimately to improve the quality of assessments. In the course of auditing the income-tax records pertaining to the assessee for the assessment years 1960-61 to 1963-64, the internal audit party expressed the view that the money realised by the assessee on account of the occupation of its conference hall and rooms should not have been assessed as income from business. It said that an assessment should have been made under the head “Income from property.” The Income-tax Officer treated the contents of the report as “information” in his possession for the purpose of S. 147 (b) of the Income Tax Act, 1961, and reassessed the income on that basis. The Appellate Assistant Commissioner allowed the appeals filed by the assessee holding, inter alia, that in law it could not be said that the Income-tax Officer had any “information” in his possession enabling him to take action under S. 147 (b). On appeal by the Revenue, the Income-tax Appellate Tribunal, Delhi Bench noticed a conflict of judicial opinion on the question whether the internal audit report could be treated as “information” for the purpose of S. 147 (b). The Gujarat High Court in Kasturbhai Lalbhai v. R. K. Malhotra, (1971) 80 ITR 188 (Guj) had held that an internal audit report could not be regarded as “information,” while the Delhi High Court in Commr. of Income-tax v. H. H. Smt. Chand Kanwarji Alwar (1972) 84 ITR 584 had expressed a contrary view. Following the view adopted by the Delhi High Court, the Tribunal held that the Income-tax Officer had jurisdiction to proceed under S. 147 (b). The assessee applied for a reference, and having regard to the difference between the High Courts on the point, the Tribunal has considered it expedient to refer the following question of law directly to this Court:-

“Whether, on the facts and in the circumstances of the case, the Income-tax Officer was legally justified in reopening the assessments under S. 147 (b) for the years 1960-61, 1961-62, 1962-63 and 1963-64 on the basis of the view expressed by the Internal Audit party and received by him subsequent to the original assessment?”

4. Since then, the judgment of the Gujarat High Court in Kasturbhai Lalbhai’s case (supra) has, on appeal, been reversed by this Court in R. K. Malhotra v. Kasturbhai Lalbhai (1977) 109 ITR 537. It has been strenuously contended that the view taken by this Court calls for further consideration. Having regard to the dimensions of the controversy and the importance of the question, we have been persuaded to take a fresh look at the point.

5. An assessment proceeding is a quasi-judicial proceeding. It acquires finality on the assessment order being made. And the finality of such an order can be disturbed only in proceedings, and within the confines, provided by law. An appeal, revision and rectification are proceedings in which the finality may be questioned. The assessment may also be reopened under S. 147 of the Act. It is a proceeding for assessing income which has “escaped assessment.” S. 147 reads:-

“147. If-

(a) the Income-tax Officer has reason to believe that, by reason of the omission or failure on the part of an assessee to make a return under S. 139 for any assessment year to the Income-tax Officer or to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year, or

(b) notwithstanding that there has been no omission or failure as mentioned in clause (a) on the part of the assessee, the Income-tax Officer has in consequence of information in his possession reason to believe that income chargeable to tax has escaped assessment for any assessment year.

He may, subject to the provisions of Ss. 148 to 153, assess or reassess such income or recompute the loss or the depreciation allowance, as the case may be, for the assessment year concerned.”

6. In cases falling under S. 147 (b), the expression “information” prescribes one of the conditions upon which a concluded assessment may be reopened under that provision. It is an indispensable ingredient which must exist before the section can be availed of. What does “information” in S. 147 (b) connote? In Kamal Singh v. Commr. of Income-tax (1959) 35 ITR 1 (SC) this Court, construing the corresponding S. 34 (1) (b) of the Indian Income Tax Act, 1922 held the word “information” to mean not only facts or factual material but to include also information as to the true and correct state of the law and, therefore, information as to relevant judicial decisions. Thereafter, in Commr. of Income-tax v. Raman and Co., (1968) 67 ITR 11 (SC) the Court defined the expression “information” in S. 147 (b) of the Income-tax Act 1961 as “instruction or knowledge derived from an external source concerning facts or particulars, or as to law, relating to a matter bearing on the assessment.” That definition has been reaffirmed in subsequent cases, and with it as the point of departure we shall now proceed.

7. In so far as the word “information” means instruction or knowledge concerning facts or particulars, there is little difficulty. By its inherent nature, a fact has concrete existence. It influences the determination of an issue by the mere circumstance of its relevance. It requires no further authority to make it significant. Its quintessential value lies in its definitive vitality.

8. But when “information” is regarded as meaning instruction or knowledge as to law the position is more complex. When we speak of “law,” we ordinarily speak of norms or guiding principles having legal effect and legal consequences. To possess legal significance for that purpose, it must be enacted or declared by competent authority. The legal sanction vivifying it imparts to it its force and validity and binding nature. Law may be statutory law or, what is popularly described as, judge-made law. In the former case, it proceeds from enactment having its source in competent legislative authority. Judge-made law emanates from a declaration or exposition of the content of a legal principle or the interpretation of a statute, and may in particular cases extend to a definition of the status of a party or the legal relationship between parties, the declaration being rendered by a competent judicial or quasi-judicial authority empowered to decide questions of law between contending parties. The declaration or exposition is ordinarily set forth in the judgment of a court or the order of a tribunal. Such declaration or exposition in itself bears the character of law. In every case, therefore, to be law it must be a creation by a formal source, either legislative or judicial authority. A statement by a person or body not competent to create or define the law cannot be regarded as law. The suggested interpretation of enacted legislation and the elaboration of legal principles in text books and journals do not enjoy the status of law. They are merely opinions and, at best, evidence in regard to the state of the law and in themselves possess no binding effect as law. The forensic sub-missions of professional lawyers and the seminal activities of legal academics enjoy no higher status. Perhaps the only exception is provided by the writing of publicists in international law, for in the law of nations the distinction between formal and material sources is difficult to maintain.

9. In that view, therefore, when Section 147 (b) of the Income-tax, Act is read as referring to “information” as to law, what is contemplated is information as to the law created by a formal source. It is law, we must remember, which because it issues from a competent legislature or a competent judicial or quasijudicial authority, influences the course of the assessment any decides and one or more of those matters which determine the assessee’s tax liability.

10. In determining the status of an internal audit report, it is necessary to consider the nature and scope of the functions of an internal audit party. The internal audit organisation of the Income-tax Department was set up primarily for imposing a check over the arithmetical accuracy of the computation of income and the determination of tax, and now, because of the audit of income-tax receipts being entrusted to the Comptroller and Auditor-General of India from 1960, it is intended as an exercise in removing mistakes and errors in income-tax records before they are submitted to the scrutiny of the Comptroller and Auditor-General. Consequently, the nature of its work and the scope of audit have assumed a dimension co-extensive with that of Receipt Audit. [1]The nature and scope of Receipt Audit are defined by Section 16 of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Services) Act, 1971. [2]

It shall be the duty of the Comptroller and Auditor-General to audit all receipts which are payable into the Consolidated Fund of India and of each State and of each Union Territory having a Legislative Assembly and to satisfy himself that the rules and procedures in that behalf are designed to secure an effective check on the assessment, collection and proper allocation of revenue and are being duly observed and to make for this purpose such examination of the accounts as he thinks fit and report thereon.’

11. Under that section, the audit by the Comptroller and Auditor General is principally intended for the purposes of satisfying him with regard to the sufficiency of the rules and procedures prescribed for the purpose of securing an effective check on the assessment, collection and proper allocation of revenue. He is entitled to examine the accounts in order to ascertain whether the rules and procedures are being duly observed, and he is required, upon such examination, to submit a report. His powers in respect of the audit of income-tax receipts and refunds are outlined in the Board’s Circular No. 14/19/56-II dated July 28, 1960. [3] Paragraph 2 of the Circular repeats the provisions of Section 16 of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971. And paragraph 3 warns that “the audit department should not in any way substitute itself for the revenue authorities in the performance of their statutory duties.” Paragraph 4 declares:

“4. Audit does not consider it any part of its duty to pass in review the judgment exercised or the decision taken in individual cases by officers entrusted with those duties, but it must be recognised that an examination of such cases may be an important factor in judging the effectiveness of assessment procedure…….. It is however, to forming a general judgment rather than to, the detection of individual errors of assessment, etc. that the audit enquiries should be directed. The detection of individual errors is an incident rather than the object of audit.”

Other provisions stress that the primary function of audit in relation to assessments and refunds is the consideration whether the internal procedures are adequate and sufficient. It is not intended that the purpose of audit should go any further. Our attention has been invited to certain provisions of the Internal Audit Manual more specifically defining the functions of internal audit in the Income-tax Department. While they speak of the need to check all assessments and refunds in the light of the relevant tax laws, the orders of the Commissioners of Income-tax and the instructions of the Central Board of Direct Taxes, nothing contained therein can be construed as conferring on the contents of an internal audit report the status of a declaration of law binding on the Income-tax Officer. Whether it is the internal audit party of the Income-tax Department or an audit party of the Comptroller and Auditor-General, they perform essentially administrative or executive functions and cannot be attributed the powers of judicial supervision over the quasi-judicial acts of income-tax authorities. The Income-tax Act does not contemplate such power in any internal audit organisation of the Income-tax Department; it recognises it in those authorities only which are specifically authorised to exercise adjudicator functions. Nor does Section 16 of the Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971 envisage such a power for the attainment of the objectives incorporated therein. Neither, statute supports the conclusion that an audit party can pronounce on the law, and that such pronouncement amounts to ‘information’ within the meaning of Section 147 (b) of the Income Tax Act, 1961.

12. But although an audit party does not possess the power to so pronounce on the law, it nevertheless may draw the attention of the Income-tax Officer to it. Law is one thing, and its communication another. If the distinction between the source of the law and the communicator of the law is carefully maintained, the confusion which often results in applying Section 147 (b) may be avoided. While the law may be enacted or laid down only by a person or body with authority in that behalf, the knowledge or awareness of the law may be communicated by anyone. No authority is required for the purpose.

13. In the present case, an internal audit party of the Income-tax Department expressed the view that the receipts from the occupation of the conference hall and rooms did not attract Section 10 of the Act and that the assessment should have been made under Section 9. While Sections 9 and 10 can be described as law, the opinion of the audit party in regard to their application is not law. It is not a declaration by a body authorised to declare the law. That part alone of the note of an audit party which mentions the law which escaped the notice of the Income-tax Officer constitutes “information” within the meaning of Section 147 (b); the part which embodies the opinion of the audit party in regard to the application or interpretation of the law cannot be taken into account by the Income-tax Officer. In every case, the Income-tax Officer must determine for himself what is the effect and consequence of the law mentioned in the audit note and whether in consequence of the law which has now come to his notice he can reasonably believe that income-tax has escaped assessment. The basis of his belief must be the law of which he has now become aware. The opinion rendered by the audit party in regard to the law cannot, for the purpose of such belief, add to or colour the significance of such law. In short, the true evaluation of the law in its bearing on the assessment must be made directly and solely by the Income-tax Officer.

14. Now, in the case before us, the Income-tax Officer had, when he made the original assessment, considered the provisions of Sections 9 and 10. Any different view taken by him afterwards on application of those provisions would amount to a change of opinion on material already considered by him. The Revenue contends that it is open to him to do so, and on that basis to reopen the assessment under Section 147 (b). Reliance is placed on Kalyanji Mavji and Co. v. Commr. of Income-tax, (1976) 102 ITR 287 (SC), where a Bench of two learned Judges of this Court observed that a case where income had escaped assessment due to the “oversight, inadvertence or mistake” of the Income-tax Officer must fall within Section 34 (1) (b) of the Indian Income Tax Act, 1922. It appears to us, with respect, that the proposition is stated too widely and travels farther than the statute warrants insofar as it can be said to lay down that if, on reappraising the material considered by him during the original assessment, the Income-tax Officer discovers that he has committed an error in consequence of which income has escaped assessment it is open to him to reopen the assessment. In our opinion, an error discovered on a reconsideration of the same material (and no more) does not give him that power. That was the view taken by this Court in Kamal Singh v. Commr. of Income-tax (supra), Commr. of Income-tax v. Raman and Co. (supra) and Bankipur Club Ltd. v. Commr. of Income-tax, (1971) 82 ITR 831 (SC), and we do not believe that the law has since taken a different course. Any observations in Kalyanji Mavji and Co. v. Commr. of Income-tax (supra) suggesting the contrary do not, we say with respect, lay down the correct law.

15. A further submission raised by the Revenue on Section 147 (b) of the Act may be considered at this stage. It is urged that the expression “information” in Section 147 (b) refers to the realisation by the Income-tax Officer that he has committed an error when making the original assessment. It is said that, when upon receipt of the audit note the Income-tax Officer discovers or realizes that a mistake has been committed in the original assessment, the discovery of the mistake would be ‘information’ within the meaning of Section 147 (b). The submission appears to us inconsistent with the terms of Section 147 (b). Plainly, the statutory provisions envisages that the Income-tax Officer must first have information in his possession, and then in consequence of such information he must have reason to believe that income has escaped assessment. The realisation that income has escaped assessment is covered by the words ‘reason to believe’, and it follows from the ‘information’ received by the Income-tax Officer. The information is not the realisation, the information gives birth to the realisation.

16. The recent decision of this Court in R. K. Malhotra v. Kasturbhai Lalbhai (supra) may be examined now. While making an assessment on a Hindu undivided family, the Income-tax Officer allowed a deduction of municipal taxes in determining the annual value of two house properties occupied by the assessee. Subsequently, the Income-tax Officer reopened the assessment on receipt of a report from the office of the Comptroller and Auditor-General of India that on a true interpretation of S. 23 (2) of the Income Tax Act, 1961, the deduction of municipal taxes was not admissible in the computation of the annual value of self-occupied house properties. The assessee contended that the report did not constitute ‘information’ within the meaning of Section 147 (b) of the Act, and the Gujarat High Court accepted the plea in the view that information as to law would consist of a statement by a person, body or authority competent and authorised to pronounce upon the law and invested with the authority to do so, and that the Audit Department was not such competent or authorised authority. On appeal by the Revenue, a Bench of two learned Judges of this Court, although endorsing the principle enunciated by the High Court, said that the audit department was the proper machinery to scrutinise assessment made by the Income-tax Officer and to point out errors of law contained therein, and the High Court had erred in taking the strict view which it did. The Court rested its decision of Asst. Controller of Estate Duty v. Mir. Osman Ali Khan Bahadur, (1969) 72 ITR 376 (SC), Commr. of Income-tax v. Smt. Chand Kanwarji (supra), Commr. of Income-tax v. Kelukutty, (1972) 85 ITR 102 (Ker) and Vashist Bhargava v. Income-tax Officer, (1975) 99 ITR 148 (Delhi).

17. In Asst. Controller of Estate Duty v. Mir. Osman Ali Khan Bahadur (supra), this Court held the opinion of the Central Board of Revenue as regards the correct valuation of securities for the purpose of estate duty to be ‘information’ within the meaning of Section 59 of the Estate Duty Act, 1953 on the basis of the which the Controller of Estate Duty was held entitled to entertain a reasonable belief that property assessed to estate duty had been under-valued. The circumstance that the opinion of the Board was rendered in an appeal filed before it under the Estate Duty Act against the assessment made by the Assistant Controller of Estate Duty was apparently not brought to the notice of this Court when it heard R. K. Malhotra v. Kasturbhai Lalbhai (supra). The opinion of the Board represented its view as a quasijudicial authority possessing jurisdiction to lay down the law. Although the Board did not enhance the valuation of the securities in the appellate proceedings because of the argument advanced by the appellant, nonetheless its observations amounted to information as to the law. It was not a case where the Board was functioning as an extra-judicial authority, performing administrative or executive functions, and not competent or authorised to pronounce upon the law. The Delhi High Court in Commr. of Income-tax v. Smt. Chand Kanwarji (supra) held that the scrutiny note of Revenue Audit constituted ‘information’ within the meaning of Section 147 (b) of the Income-tax Act because the Comptroller and Auditor-General of India was empowered by statute to scrutinise the proceedings of the Income-tax Department and to point out defects and mistakes which adversely affected the Revenue. The High Court considered that the view that information as to law could be gathered only from the decisions of judicial or quachi-judicial authorities was unduly restrictive. In Commr. of Income-tax v. Kelukutty (supra), the Kerala High Court also regarded the note put up by Audit as ‘information’ within the meaning of Section 147 (b) of the Act, but it appears to have assumed, without anything more, that an audit note would fall within that expression. As regards Vashist Bhargava v. Income-tax Officer (supra) the ‘information’ consisted in a note of the Revenue Audit and the Ministry of Law that the payment of interest by the assessee was in fact made to his own account in the Provident Fund and, therefore, in law the money paid did not vest in the Government and, consequently, the original assessment was erroneous insofar as it allowed the deduction of the interest as expenditure made by the assessee. The Delhi High Court upheld the reassessment of the finding that the note of the Revenue Audit and the Ministry of Law had to be taken into account by the Income-tax Officer, because in his executive capacity he had to be guided by the advice rendered by the Ministry of Law and he had to pay due regard to the note of the Revenue Audit because the officers of the Audit Department were experts empowered to examine and check upon the work of the Income-tax Officers. It seems to us that the considerations on which the Delhi High Court rested its judgment are not correct. But the decision of the case can be supported on the ground that the basic information warranting the re-opening of the assessment was the fact that the payment of interest was made to the Provident Fund account of the assessee himself. That the money so paid did not vest in the Government was a conclusion which followed automatically upon that fact, and no controversy in law could possibly arise on that point.

18. On the considerations prevailing with us, we are of opinion that the view taken by the Delhi High Court and the Kerala High Court in the aforementioned cases is wrong and we must, with great respect, hold that this Court was in error in the conclusion reached by it in R. K. Malhotra v. Kasturbhai Lalbhai (supra).

Our attention has been drawn to the further decision of the Kerala High Court in Muthukrishna Reddier v. Commissioner of Income-tax, Kerala, (1973) 90 ITR 503 and the decisions of the Allahabad High Court in Raj Kumar Shrawan Kumar v. Central Board of Direct Taxes, (1977) 107 ITR 570 and Elgin Mills Co. Ltd. v. Income-tax Officer, Companies Circle, ‘A’ Ward, Kanpur, (1978) 111 ITR 287. The Kerala High Court merely followed its earlier judgment in Commissioner of Income-tax v. Kelukutty (supra) and the Allahabad High Court was impressed by the same reasons sub-stantially which persuaded the Delhi High Court and the Kerala High Court in the cases referred to above.

19. Therefore, whether considered on the basis that the nature and scope of the functions of the internal audit organisation of the Income-tax Department are co-extensive with that of Receipt Audit or on the basis of the provisions specifically detailing its functions in the Internal Audit Manual, we hold that the opinion of an internal audit party of the Income-tax Department on a point of law cannot be regarded as ‘information’ within the meaning of Section 147 (b) of the Income Tax Act, 1961.

20. The question referred by the Income-tax Appellate Tribunal is answered in the negative, in favour of the assessee and against the Revenue. The assessee is entitled to one set of costs in these appeals.

——————————————————————————–

[1]. Interal Audit Manual, Vol. II p. 1.

[2]. “16. Audit of receipts of Union of or States.

[3]. Internal Audit Manual, Volume II page 39.


AIR 1979 SC 1960 : (1980) 1 SCR 442 : (1979) 4 SCC 248

Orders passed by the ITAT are final, an appeal lies to the High Court if a substantial question of law involved

ITAT is a quasi-judicial institution set up in January 1941 and specializes in dealing with appeals under the Direct Taxes Acts. The orders passed by the ITAT are final, an appeal lies to the High Court only if a substantial question of law arises for determination.

Benches of The Income Tax Appellate Tribunal

Bench Name Mumbai
Address Income Tax Appellate Tribunal, Mumbai Benches, Mumbai
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Bench Name Amritsar
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N/A N/A
Bench Name Bangalore
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Bench Name Chandigarh
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Bench Name Chennai
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Lakshadweep Lakshadweep
Bench Name Cuttack
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E-Mail ID cuttack[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Odisha Angul, Balangir, Balasore, Bargarh, Bhadrak, Boudh, Cuttack, Deogarh, Dhenkanal, Gajapati, Ganjam, Jagatsinghpur, Jajpur, Jharsuguda, Kalahandi, Kandhamal, Kendrapara, Keonjhar, Khordha, Koraput, Malkangiri, Mayurbhanj, Nabarangpur, Nayagarh, Nuapada, Puri, Rayagada, Sambalpur, Subarnapur (Sonepur), Sundargarh
Bench Name Guwahati
Address Income Tax Appellate Tribunal, Guwahati Bench, Guwahati
Oriental Building, 1st Floor, Fancy Bazaar
– 781001, Assam
Tel Phone 0361-2544637
Fax Nos. 0361-2514405
E-Mail ID guwahati[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
N/A N/A
Bench Name Hyderabad
Address Income Tax Appellate Tribunal, Hyderabad Benches, Hyderabad
Room No. 502 & 505, Vth Floor, CGO Towers, Kavadiguda
Secunderabad – 500080, Telangana
Tel Phone 040-27536887
Fax Nos. 040-27536891
E-Mail ID hyderabad[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Telangana Hyderabad, Adilabad, Bhadradri Kothagudem, Jagital, Jangaon, Jayashankar Bhupalpally, Jogulamba Gadwal, Kamareddy, Karimnagar, Khammam, Kumuram Bheem, Mahabubabad, Mahabubnagar, Mancherial, Medak, Medchal, Nagarkurnool, Nalgonda, Nirmal, Nizamabad, Peddapalli, Rajanna Sircilla, Rangareddy, Sangareddy
Andhra Pradesh Cuddapah
Bench Name Indore
Address Income Tax Appellate Tribunal, Indore Bench, Indore
C.G.O.Complex, 1st Floor, Shivaji Chouraha, A.B.Road
– 452001, Madhya Pradesh
Tel Phone 0731-2493839
Fax Nos. 0731-2499025
E-Mail ID indore[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Madhya Pradesh Bhopal, Rajgarh, Sehore, Vidisha, Alirajpur, Barwani, Harda, Agar, Dewas, Dhar, Indore, Jhabua, Khandwa, Khargone, Mandsaur, Raisen, Ralam, Shajapur, Ujjain, Hosangabad, Betul, Burhanpur, Neemuch
Bench Name Jabalpur
Address Income Tax Appellate Tribunal, Jabalpur Bench, Jabalpur
Flora House, 46, Napier Town, Near Krishna Hotel
Jabalpur – 482001, Madhya Pradesh
Tel Phone 0761-2450543
Fax Nos. 0761-2450751
E-Mail ID jabalpur[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Madhya Pradesh Balaghat, Betul, Chhatarpur, Chhindwara, Damoh , Dindori , Harda, Hosangabad, Jabalpur, katni, Mandla, Narsinghpur, Panna, Rewa, Sagar, Satna, Seoni, Singrauli , Shahdol , Sidhi , Tikamgarh, Umaria , Niwari , Anuppur
Bench Name Jaipur
Address Income Tax Appellate Tribunal, Jaipur Benches, Jaipur
G-4, Raj Mahal Residential Area, Near 22 Godam INOX, C-Scheme
Jaipur – 302006, Rajasthan
Tel Phone 0141-2983056
Fax Nos. 0141-2229929
E-Mail ID jaipur[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Rajasthan Jaipur, Ajmer, Tonk Bharatpur, Dholpur, Karauli, Sawaimadhopur, Alwar, Jhunjhunu, Sikar, Dausa, Kota, Bundi, Jhalawar, Baran, Pratapgarh
Bench Name Jodhpur
Address Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur
27-A, Hanuwant Vihar, Rai Ka Bag
– 342001, Rajasthan
Tel Phone 0291-2544591
Fax Nos. 0291-2544617
E-Mail ID jodhpur[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Rajasthan Banswara, Barmer, Bhilwara, Bikaner, Chittorgarh, Churu, Dungarpur, Jaisalmer, Jalore, Jodhpur, Nagaur, Pali, Rajsamand, Sirohi, Sriganganagar, Hanumangarh, Udaipur
Bench Name Kolkata
Address Income Tax Appellate Tribunal, Kolkata Benches, Kolkata
225C, A.J.C. Bose Road, 6th & 7th Floors
Kolkata – 700020, West Bengal
Tel Phone 033-22901222
Fax Nos. 033-22901228
E-Mail ID kolkata[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Sikkim East Sikkim, North Sikkim, South Sikkim, West Sikkim
Andaman and Nicobar Islands Nicobar, North and Middle Andaman, South Andaman
West Bengal Malda, Uttar Dinajpur, Dakshin Dinajpur, Murshidabad, Birbhum, Hooghly, Paschim Bardhaman, Purba Bardhaman, Alipurduar, Cooch Behar, Darjeeling, Jalpaiguri, Kalimpong, Howrah, Kolkata, Nadia, North 24 Parganas, South 24 Parganas, Bankura, Jhargram, Purulia, East Medinipur, West Medinipur
Bench Name Lucknow
Address Income Tax Appellate Tribunal, Lucknow Benches, Lucknow
5th Floor, PICUP Bhawan, Gomti Nagar
Lucknow – 226010, Uttar Pradesh
Tel Phone 0522-2720864
Fax Nos. 0522-2720864
E-Mail ID lucknow[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Uttar Pradesh Barabanki, Bareilly, Basti, Bahraich, Faizabad, Gonda, Hardoi, Kanpur (Rural), Kanpur (City), Lucknow, Lakhimpur Kheri, Pilibhit, Raibareilly, Shahjahanpur, Sitapur, Unnao
Bench Name Nagpur
Address Income Tax Appellate Tribunal, Nagpur Bench, Nagpur
2nd Floor, ‘C’ Block, C.G.O Complex, Seminery Hills
Nagpur – 440006, Maharashtra
Tel Phone 0712-2512593
Fax Nos. 0712-2510931
E-Mail ID nagpur[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Maharashtra Akola, Amaravati, Bhandara, Buldhana, Chandrapur, Gadchiroli, Akola, Amravati, Bhandara, Buldhana, Chandrapur, Gadchiroli, Gondia, Hingoli, Nagpur, Wardha, Washim, Yavatmal
Bench Name Panaji
Address Income Tax Appellate Tribunal, Panaji Bench, Panaji
Pundalik Nivas, 1st floor, Near Patto Foot Bridge
– 403001, Goa
Tel Phone 0832-2426226
Fax Nos. 0832-2426238
E-Mail ID panaji[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Goa North Goa, South Goa
Bench Name Patna
Address Income Tax Appellate Tribunal, Patna Bench, Patna
5th Floor, C.R. Building (Annexe), Birchand Patel Path
Patna – 800001, Bihar
Tel Phone 0612-2504997
Fax Nos. 0612-2504085
E-Mail ID patna[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Bihar Araria, Arwal, Aurangabad, Banka, Begusarai, Bhagalpur, Bhojpur, Buxar, Darbhanga, East Champaran, Gaya, Gopalganj, Jamui, Jehanabad, Khagaria, Kishanganj, Kaimur, Katihar, Lakhisarai, Madhubani, Munger, Madhepura, Muzaffarpur, Nalanda, Nawada, Patna, Purnia, Rohtas, Saharsa, Samastipur, Sheohar, Sheikhpura, Saran, Sitamarhi, Supaul, Siwan, Vaishali, West Champaran
Bench Name Pune
Address Income Tax Appellate Tribunal, Pune Benches, Pune
2nd Floor, Maharashtra Jeevan Pradhikaran Bldg., Near St Mary High School, 463, Stavely Road
Pune – 411001, Maharashtra
Tel Phone 020-26342532
Fax Nos. 020-26342532
E-Mail ID pune[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Maharashtra Nashik, Pune, Ahmednagar, Aurangabad, Beed, Dhule, Jalgaon, Jalna, Kolhapur, Latur, Nanded, Nandurbar, Osmanabad, Parbhani, Raigad, Ratnagiri, Sangli, Satara, Sindhudurg, Solapur
Bench Name Raipur
Address Income Tax Appellate Tribunal, Raipur Bench, Raipur
Chattisgarh Chamber of Commerce and Industries, 2nd Floor, Chaudhury Devilal Bhawan, Behind Bombay Market
Raipur – 429001, Chhattisgarh
Tel Phone 07712-223110
Fax Nos. 07712-223110
E-Mail ID raipur[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Chhattisgarh Balod, Baloda Bazar, Balrampur, Bastar, Bemetara, Bijapur, Bilaspur, Dantewada, Dhamtari, Durg, Gariaband, Gaurela-Pendra-Marwahi, Janjgir-Champa, Jashpur, Kabirdham, Kanker, Kondagaon, Korba, Koriya, Mahasamund, Mungeli, Narayanpur, Raigarh, Raipur, Rajnandgaon, Sukma, Surajpur, Surguja
Bench Name Rajkot
Address Income Tax Appellate Tribunal, Rajkot Bench, Rajkot
5th Floor, Amruta Estate, M.G. Road, Beside Girnar Cinema
Rajkot – 360001, Gujarat
Tel Phone 0281-2970721
Fax Nos. 0281-2970723
E-Mail ID rajkot[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Daman and Diu Diu
Gujarat Rajkot, Jamngar, Junagadh, Amreli, Porbandar, Morbi, Kutchh, Surendrangar
Bench Name Ranchi
Address Income Tax Appellate Tribunal, Ranchi Bench, Ranchi
1st Floor, Block-A, Shah Deo Towers (West Entrance), Peppe Compound
Ranchi – 834001, Jharkhand
Tel Phone 0651-2332445
Fax Nos. 0651-2332445
E-Mail ID ranchi[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
N/A N/A
Bench Name Visakhapatnam
Address Income Tax Appellate Tribunal, Visakhapatnam Bench, Visakhapatnam
5th Floor, LIC Building, Jeevitha Bima Road
Visakhapatnam – 530004, Andhra Pradesh
Tel Phone 0891-2795058
Fax Nos. 0891-2795058
E-Mail ID vizag[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Andhra Pradesh Srikakulam, Vizianagaram, Visakhapatnam, East Godavari, West Godavari, Krishna, Guntur
Bench Name Surat
Address Income Tax Appellate Tribunal, Surat Bench, Surat
Titaanium Business Hub, 2nd Floor, Sarsana, Near VIP Crossing, Surat Khajod Road, Bhimrad
Surat – 395007, Gujarat
Tel Phone 0261-2878102
Fax Nos. 0261-2878102
E-Mail ID surat[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
Daman and Diu Daman
Dadra and Nagar Haveli Dadra and Nagar Haveli
Gujarat Bharuch, Dang, Narmada, Tapi, Valsad
Bench Name Varanasi
Address Income Tax Appellate Tribunal, Varanasi Bench, Varanasi
R.No. 102, Ground Floor, Ayakar Bhawan, Maqbool Alam Road
Varanasi – 221007, Uttar Pradesh
Tel Phone 0-
Fax Nos. 0-0
E-Mail ID allahabad[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
N/A N/A
Bench Name Dehradun
Address Income Tax Appellate Tribunal, Dehradun Bench, Dehradun
Uttarakhand Co-operative Sugar Mills Federation Ltd., Jogiwala, Near Railway Crossing, Badripur
Dehradun – 248005, Uttarakhand
Tel Phone
Fax Nos. 0
E-Mail ID delhi[dot]bench[at]itat[dot]nic[dot]in
Jurisdiction State Districts
N/A N/A

Finance Act, 2019

The financial year 2019-2020

(Act No. 7 of 2019)

Dated 21.2.2019.

An Act to continue the existing rates of income-tax for the financial year 2019-2020 and to provide for certain relief to taxpayers and to make amendments in certain enactments.

Be it enacted by Parliament in the Seventieth Year of the Republic of India as follows: –

CHAPTER I

Preliminary

1. Short title and commencement. – (1) This Act may be called the Finance Act, 2019.
(2) Save as otherwise provided in this Act, sections 2 to 10 shall come into force on the 1st day of April, 2019.

CHAPTER II

Rates of Income-Tax

2. Income-tax. – The provisions of section 2 of, and the First Schedule to, the Finance Act, 2018, shall apply in relation to income-tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of April, 2019, as they apply in relation to income-tax for the assessment year, or as the case may be, the financial year commencing on the 1st day of April, 2018, with the following modifications, namely: –
(a) in section 2, –

(i) in sub-section (1), for the figures “2018”, the figures “2019” shall be substituted;

(ii) in sub-section (3), for the first proviso, the following proviso shall be substituted, namely: –

“Provided that the amount of income-tax computed in accordance with the provisions of section 111A or section 112 or section 112A of the Income-tax Act shall be increased by a surcharge, for the purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule:”;

(iii) for sub-section (11) and sub-section (12), the following sub-section shall be substituted, namely: –

‘(11) The amount of income-tax as specified in sub-sections (1) to (3) and as increased by the applicable surcharge, for the purposes of the Union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for the purposes of the Union, to be called the “Health and Education Cess on income-tax”, calculated at the rate of four per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance quality health services and universalised quality basic education and secondary and higher education.’;

(iv) sub-section (13) and sub-section (14) shall be renumbered as sub-section (12) and sub-section (13), respectively;

(v) in sub-section (13) as so renumbered, in clause (a), for the figures “2018”, the figures “2019” shall be substituted;

(b) in the First Schedule, –

(i) for Part I, the following Part I shall be substituted, namely: –

“Part I

Income-Tax

Paragraph A

(I) In the case of every individual other than the individual referred to in items (ii) and (iii) of this Paragraph or Hindu undivided family or 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, –

Rates of income-tax

(1) where the total income does not
exceed Rs. 2,50,000

Nil;

(2) where the total income exceeds
Rs. 2,50,000 but does not exceed
Rs. 5,00,000

5 per cent. of the amount by which the total
income exceeds Rs. 2,50,000;

(3) where the total income exceeds
Rs. 5,00,000 but does not exceed
Rs. 10,00,000

Rs. 12,500 plus 20 per cent. of the amount
by which the total income exceeds
Rs. 5,00,000;

(4) where the total income exceeds
Rs. 10,00,000

Rs. 1,12,500 plus 30 per cent. of the amount
by which the total income exceeds
Rs. 10,00,000.

(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 eighty years at any time during the previous year, –

Rates of income-tax

(1) where the total income does not
exceed Rs. 3,00,000

Nil;

(2) where the total income exceeds
Rs. 3,00,000 but does not exceed
Rs. 5,00,000

5 per cent. of the amount by which the total
income exceeds
Rs. 3,00,000;

(3) where the total income exceeds
Rs. 5,00,000 but does not exceed Rs. 10,00,000

Rs. 10,000 plus 20 per cent. of the amount
by which the total income exceeds Rs. 5,00,000;

(4) where the total income exceeds
Rs. 10,00,000

Rs. 1,10,000 plus 30 per cent. of the amount
by which the total income exceeds Rs. 10,00,000.

(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, –

Rates of income-tax

(1) where the total income does not
exceed Rs. 5,00,000

Nil;

(2) where the total income exceeds
Rs. 5,00,000 but does not exceed
Rs. 10,00,000

20 per cent. of the amount by which the
total income exceeds Rs. 5,00,000;

(3) where the total income exceeds
Rs. 10,00,000

Rs. 1,00,000 plus 30 per cent. of the amount
by which the total income exceeds
Rs. 10,00,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every individual or Hindu undivided family or 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, –
(a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax; and

(b) having a total income exceeding one crore rupees, at the rate of fifteen per cent. of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding, –

(a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph B

In the case of every co-operative society, –

Rates of income-tax

(1) where the total income does not
exceed Rs. 10,000

10 per cent. of the total income;

(2) where the total income exceeds
Rs. 10,000 but does not exceed
Rs. 20,000

Rs. 1,000 plus 20 per cent. of the amount by
which the total income exceeds Rs. 10,000;

(3) where the total income exceeds
Rs. 20,000

Rs. 3,000 plus 30 per cent. of the amount by
which the total income exceeds Rs. 20,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every co-operative society, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:Provided that in the case of every co-operative society mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph C

In the case of every firm, –

Rate of income-tax

On the whole of the total income          30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:Provided that in the case of every firm mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph D

In the case of every local authority, –

Rate of income-tax

On the whole of the total income          30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every local authority, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:Provided that in the case of every local authority mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph E

In the case of a company, –

Rates of income-tax

I. In the case of a domestic company, –

(i) where its total turnover or the
gross receipt in the previous
year 2016-2017 does not exceed
two hundred and fifty crore rupees

25 per cent. of the total income;

(ii) other than that referred to in
item (i)

30 per cent. of the total income.

II. In the case of a company other than a domestic company, –

(i) on so much of the total income as consists of, –

(a) royalties received from
Government or an Indian concern in
pursuance of an agreement made by it
with the Government or the Indian
concern after the 31st day of March,
1961 but before the 1st day of April,
1976; or

(b) fees for rendering technical
services received from Government or
an Indian concern in pursuance of an
agreement made by it with the
Government or the Indian concern after
the 29th day of February, 1964 but
before the 1st day of April, 1976,

and where such agreement has, in either case, been approved
by the Central Government

50 per cent.;

(ii) on the balance, if any, of the total income

40 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union calculated, –
(i) in the case of every domestic company, –

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of seven per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such Income-tax;

(ii) in the case of every company other than a domestic company, –

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:

Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income tax and surcharge on such income shall not exceed the total amount payable as income tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:
Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.”;
(ii) in Part III, in Paragraph E, in sub-paragraph 1, in clause (i), for the words and figures “previous year 2016-2017”, the words and figures “previous year 2017-2018” shall be substituted;

(iii) in Part IV, in Rule 8, –

(A) for sub-rules (1) and (2), the following sub-rules shall be substituted, namely: –

“(1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 2019, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018, is a loss, then, for the purposes of sub-section (2) of section 2 of this Act, –

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2011, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2012, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2014, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2015, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2016, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2017 or the 1st day of April, 2018,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2017, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2018,

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2018, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 2019.

(2) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 2020, or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019, is a loss, then, for the purposes of sub-section (10) of section 2 of this Act, –

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2012, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019,

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2014, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2015, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2016, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2017, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2018 or the 1st day of April, 2019,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2018, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2019,

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2019,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 2020.”;
(B) for sub-rule (4), the following sub-rule shall be substituted, namely: –

“(4) Notwithstanding anything contained in this rule, no loss which has not been determined by the assessing officer under the provisions of these rules or the rules contained in the First Schedule to the Finance Act, 2011 (8 of 2011) or the First Schedule to the Finance Act, 2012 (23 of 2012) or the First Schedule to the Finance Act, 2013 (17 of 2013) or the First Schedule to the Finance (No. 2) Act, 2014 (25 of 2014) or the First Schedule to the Finance Act, 2015 (20 of 2015) or the First Schedule to the Finance Act, 2016 (28 of 2016) or the First Schedule to the Finance Act, 2017 (7 of 2017) or the First Schedule to the Finance Act, 2018 (13 of 2018) shall be set off under sub-rule (1) or, as the case may be, sub-rule (2).”.

CHAPTER III

Direct Taxes

Income-tax

3. Amendment of section 16. – In section 16 of the Income-tax Act, 1961,(43 of 1961.) (hereafter in this Chapter referred to as the Income-tax Act), in clause (ia) [as inserted by section 7 of the Finance Act, 2018,(13 of 2018)], for the words “forty thousand”, the words “fifty thousand” shall be substituted with effect from the 1st day of April, 2020.

4. Amendment of section 23. – In section 23 of the Income-tax Act, with effect from the 1st day of April, 2020, –

(a) in sub-section (4), –

(i) in the opening portion, for the words “one house”, the words “two houses” shall be substituted;

(ii) in clause (a), for the word “one”, the word “two” shall be substituted;

(iii) in clause (b), for the words “other than the house”, the words “other than the house or houses” shall be substituted;

(b) in sub-section (5), for the words “one year”, the words “two years” shall be substituted.

5. Amendment of section 24. – In section 24 of the Income-tax Act, with effect from the 1st day of April, 2020, –

(a) in the first proviso, after the words “the amounts of deduction”, the words “or, as the case may be, the aggregate of the amount of deduction” shall be inserted;

(b) in the second proviso, after the words “the amount of deduction”, the words “or, as the case may be, the aggregate of the amounts of deduction” shall be inserted;

(c) after the Explanation to the third proviso, the following proviso shall be inserted, namely: –

“Provided also that the aggregate of the amounts of deduction under the first and second provisos shall not exceed two lakh rupees.”.

6. Amendment of section 54. – In section 54 of the Income-tax Act, in sub-section (1), after clause (ii), the following provisos shall be inserted with effect from the 1st day of April, 2020, namely: –
‘Provided that where the amount of the capital gain does not exceed two crore rupees, the assessee may, at his option, purchase or construct two residential houses in India, and where such option has been exercised, –

(a) the provisions of this sub-section shall have effect as if for the words “one residential house in India”, the words “two residential houses in India” had been substituted;

(b) any reference in this sub-section and sub-section (2) to “new asset” shall be construed as a reference to the two residential houses in India:

Provided further that where during any assessment year, the assessee has exercised the option referred to in the first proviso, he shall not be subsequently entitled to exercise the option for the same or any other assessment year.’.

7. Amendment of section 80-IBA. – In section 80-IBA of the Income-tax Act, in sub-section (2), in clause (a), for the figures “2019”, the figures “2020” shall be substituted with effect from the 1st day of April, 2020.

8. Amendment of section 87A. – In section 87A of the Income-tax Act, with effect from the 1st day of April, 2020, –
(a) for the words “three hundred fifty thousand”, the words “five hundred thousand” shall be substituted;

(b) for the words, “two thousand and five hundred”, the words “twelve thousand and five hundred” shall be substituted.

9. Amendment of section 194A. – In section 194A of the Income-tax Act, in sub-section (3), in clause (i), for the words “ten thousand” wherever they occur, the words “forty thousand” shall be substituted.
10. Amendment of section 194-I. – In section 194-I of the Income-tax Act, in the first proviso, for the words “one hundred and eighty thousand rupees”, the words “two hundred and forty thousand rupees” shall be substituted.

CHAPTER IV

Miscellaneous

Part I

Amendments to the Indian Stamp Act, 1899

11. Commencement of this Part. – The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

12. Amendment of section 2. – In section 2 of the Indian Stamp Act, 1899,(2 of 1899) (hereafter in this Part referred to as the principal Act), –
(a) for clause (1), the following clauses shall be substituted, namely: –

‘(1) “allotment list” means a list containing details of allotment of the securities intimated by the issuer to the depository under sub-section (2) of section 8 of the Depositories, Act, 1996,(22 of 1996);

(1A) “banker” includes a bank and any person acting as a banker;’;

(b) in clause (5), the following long line shall be added at the end, namely: –

“but does not include a debenture;”;

(c) after clause (7), the following clauses shall be inserted, namely: –

‘(7A) “clearance list” means a list of transactions of sale and purchase relating to contracts traded on the stock exchanges submitted to a clearing corporation in accordance with the law for the time being in force in this behalf;

(7B) “clearing corporation” means an entity established to undertake the activity of clearing and settlement of transactions in securities or other instruments and includes a clearing house of a recognised stock exchange;’;

(d) after clause (10), the following clauses shall be inserted, namely: –

‘(10A) “debenture” includes –

(i) debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not;

(ii) bonds in the nature of debenture issued by any incorporated company or body corporate;

(iii) certificate of deposit, commercial usance bill, commercial paper and such other debt instrument of original or initial maturity upto one year as the Reserve Bank of India may specify from time to time;

(iv) securitised debt instruments; and

(v) any other debt instuments specified by the Securities and

Exchange Board of India from time to time;

(10B) “depository” includes –

(a) a depository as defined in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996,(22 of 1996.); and

(b) any other entity declared by the Central Government, by notification in the Official Gazette, to be a depository for the purposes of this Act;’;

(e) in clause (12), the words and figures “and includes attribution of electronic record within the meaning of section 11 of the Information Technology Act, 2000,(21 of 2000.)” shall be inserted at the end.

(f) for clause (14), the following clause shall be substituted, namely: –

‘(14) “instrument” includes –

(a) every document, by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded;

(b) a document, electronic or otherwise, created for a transaction in a stock exchange or depository by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded; and

(c) any other document mentioned in Schedule I,

but does not include such instruments as may be specified by the Government, by notification in the Official Gazette;’;
(g) after clause (15), the following clause shall be inserted, namely: –

‘(15A) “issuer” means any person making an issue of securities;’;

(h) for clause (16A), the following clauses shall be substituted, namely: –

‘(16A) “marketable security” means a security capable of being traded in any stock exchange in India;

(16B) “market value”, in relation to an instrument through which –

(a) any security is traded in a stock exchange, means the price at which it is so traded;

(b) any security which is transferred through a depository but not traded in the stock exchange, means the price or the consideration mentioned in such instrument;

(c) any security is dealt otherwise than in the stock exchange or depository, means the price or consideration mentioned in such instrument;’;

(i) after clause (23), the following clause shall be inserted, namely: –

‘(23A) “securities” includes –

(i) securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956,(42 of 1956);

(ii) a “derivative” as defined in clause (a) of section 45U of the Reserve Bank of India Act, 1934,(2 of 1934);

(iii) a certificate of deposit, commercial usance bill, commercial paper, repo on corporate bonds and such other debt instrument of original or initial maturity upto one year as the Reserve Bank of India may specify from time to time; and

(iv) any other instrument declared by the Central Government, by notification in the Official Gazette, to be securities for the purposes of this Act;’;

(j) after clause (26), the following clause shall be inserted, namely: –

‘(27) “stock exchange” includes –

(i) a recognised stock exchange as defined in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956,(42 of 1956); and

(ii) such other platform for trading or reporting a deal in securities, as may be specified by the Central Government, by notification in the Official Gazette, for the purposes of this Act.’.

13. Amendment of section 4. – In section 4 of the principal Act, after sub-section (2), the following sub-section shall be inserted, namely: –
“(3) Notwithstanding anything contained in sub-sections (1) and (2), in the case of any issue, sale or transfer of securities, the instrument on which stamp-duty is chargeable under section 9A shall be the principal instrument for the purpose of this section and no stamp-duty shall be charged on any other instruments relating to any such transaction.”.
14. Substitution of new section for section 8A. – For section 8A of the principal Act, the following section shall be substituted, namely: –
‘8A. Securities dealt in depository not liable to stamp-duty. – Notwithstanding anything contained in this Act or any other law for the time being in force, –

(a) an issuer, by the issue of securities to one or more depositories, shall, in respect of such issue, be chargeable with duty on the total amount of securities issued by it and such securities need not be stamped;

(b) the transfer of registered ownership of securities from a person to a depository or from a depository to a beneficial owner shall not be liable to duty.

Explanation. – For the purposes of this section, the expression “beneficial ownership” shall have the same meaning as assigned to it in clause (a) of sub-section (1) of section 2 of the Depositories Act, 1996,(22 of 1996).

15. Insertion of new Part AA. – In Chapter II of the principal Act, after Part A relating to ‘Of the liability of instruments to duty’, the following Part shall be inserted, namely: –
‘AA. – Of the liability of instruments of transaction in stock exchanges and depositories to duty

9A. Instruments chargeable with duty for transactions in stock exchanges and depositories. – (1) Notwithstanding anything contained in this Act, –

(a) when the sale of any securities, whether delivery based or otherwise, is made through a stock exchange, the stamp-duty on each such sale in the clearance list shall be collected on behalf of the State Government by the stock exchange or a clearing corporation authorised by it, from its buyer on the market value of such securities at the time of settlement of transactions in securities of such buyer, in such manner as the Central Government may, by rules, provide;

(b) when any transfer of securities for a consideration, whether delivery based or otherwise, is made by a depository otherwise than on the basis of any transaction referred to in clause (a), the stamp-duty on such transfer shall be collected on behalf of the State Government by the depository from the transferor of such securities on the consideration amount specified therein, in such manner as the Central Government may, by rules, provide;

(c) when pursuant to issue of securities, any creation or change in the records of a depository is made, the stamp-duty on the allotment list shall be collected on behalf of the State Government by the depository from the issuer of securities on the total market value of the securities as contained in such list, in such manner as the Central Government may, by rules, provide.

(2) Notwithstanding anything contained in this Act, the instruments referred to in sub-section (1) shall be chargeable with duty as provided therein at the rate specified in Schedule I and such instruments need not be stamped.

(3) From the date of commencement of this Part, no stamp-duty shall be charged or collected by the State Government on any note or memorandum or any other document, electronic or otherwise, associated with the transactions mentioned in sub-section (1).

(4) The stock exchange or a clearing corporation authorised by it or the depository, as the case may be, shall, within three weeks of the end of each month and in accordance with the rules made in this behalf by the Central Government, in consultation with the State Government, transfer the stamp-duty collected under this section to the State Government where the residence of the buyer is located and in case the buyer is located outside India, to the State Government having the registered office of the trading member or broker of such buyer and in case where there is no such trading member of the buyer, to the State Government having the registered office of the participant:

Provided that before such transfer, the stock exchange or the clearing corporation authorised by it or the depository shall be entitled to deduct such percentage of stamp-duty towards facilitation charges as may be specified in such rules.

Explanation. – The term “participant” shall have the same meaning as assigned to it in clause (g) of section 2 of the Depositories Act, 1996,(22 of 1996).

(5) Every stock exchange or the clearing corporation authorised by it and depository shall submit to the Government details of the transactions referred to in sub-section (1) in such manner as the Central Government may, by rules, provide.

9B. Instruments chargeable with duty for transactions otherwise than through stock exchanges and depositories. – Notwithstanding anything contained in this Act, –

(a) when any issue of securities is made by an issuer otherwise than through a stock exchange or depository, the stamp-duty on each such issue shall be payable by the issuer, at the place where its registered office is located, on the total market value of the securities so issued at the rate specified in Schedule I;

(b) when any sale or transfer or reissue of securities for consideration is made otherwise than through a stock exchange or depository, the stamp duty on each such sale or transfer or reissue shall be payable by the seller or transferor or issuer, as the case may be, on the consideration amount specified in such instrument at the rate specified in Schedule I.’.

16. Amendment of section 21. – In section 21 of the principal Act, –

(a) for the words “the value of such stock or security according to the average price or the value thereof on the day of the date of the instrument.”, the words “the market value of such stock or security:” shall be substituted;

(b) the following proviso shall be inserted, namely: –

“Provided that the market value for calculating the stamp-duty shall be, in the case of –

(i) options in any securities, the premium paid by the buyer;

(ii) repo on corporate bonds, interest paid by the borrower; and

(iii) swap, only the first leg of the cash flow.”.

17. Amendment of section 29. – In section 29 of the principal Act, –

(i) in clause (a), –

(a) the words, figures and brackets “No. 27 (Debenture)” shall be omitted;

(b) the words, figures, brackets and letter “No. 62 (a) (Transfer of shares in an incorporated Company or other body corporate)” shall be omitted;

(c) the words, figures, brackets and letter “No. 62 (b) (Transfer of debentures, being marketable securities, whether the debenture is liable to duty or not, except debentures provided for by section 8)” shall be omitted;

(ii) in clause (e), after the word “exchange”, the words “including swap” shall be inserted;

(iii) in clause (f), the word “and” shall be omitted;

(iv) after clause (g), the following clauses shall be inserted, namely: –

“(h) in the case of sale of security through stock exchange, by the buyer of such security;

(i) in the case of sale of security otherwise than through a stock exchange, by the seller of such security;

(j) in the case of transfer of security through a depository, by the transferor of such security;

(k) in the case of transfer of security otherwise than through a stock exchange or depositiory, by the transferor of such security;

(l) in the case of issue of security, whether through a stock exchange or a depository or otherwise, by the issuer of such security; and

(m) in the case of any other instrument not specified herein, by the person making, drawing or executing such instrument.”.

18. Insertion of new section 62A. – After section 62 of the principal Act, the following section shall be inserted, namely: –
“62A. Penalty for failure to comply with provisions of section 9A. – (1) Any person who, –

(a) being required under sub-section (1) of section 9A to collect duty, fails to collect the same; or

(b) being required under sub-section (4) of section 9A to transfer the duty to the State Government within fifteen days of the expiry of the time specified therein, fails to transfer within such time,

shall be punishable with fine which shall not be less than one lakh rupees, but which may extend upto one per cent. of the collection or transfer so defaulted.

(2) Any person who, –

(a) being required under sub-section (5) of section 9A to submit details of transactions to the Government, fails to submit the same; or

(b) submits a document or makes a declaration which is false or which such person knows or believes to be false,

shall be punishable with fine of one lakh rupees for each day during which such failure continues or one crore rupees, whichever is less.”.

19. Insertion of new section 73A. – After section 73 of the principal Act, the following section shall be inserted, namely: –
“73A. Power of Central Government to make rules. – (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of Part AA of Chapter II.

(2) Without prejudice to the generality of the provisions of sub-section (1), the Central Government may make rules for all or any of the following matters, namely: –

(a) the manner of collection of stamp-duty on behalf of the State Government by the stock exchange or the clearing corporation authorised by it, from its buyer under clause (a) of sub-section (1) of section 9A;

(b) the manner of collection of stamp-duty on behalf of the State Government by the depository from the transferor under clause (b) of sub-section (1) of section 9A;

(c) the manner of collection of stamp-duty on behalf of the State Government by the depository from the issuer under clause (c) of sub-section (1) of section 9A;

(d) the manner of transfer of stamp-duty to the State Government under sub-section (4) of section 9A;

(e) any other matter which has to be, or may be, provided by rules.”.

20. Amendment of section 76. – In section 76 of the principal Act, after sub-section (2), the following sub-section shall be inserted, namely: –

“(2A) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.”.

21. Amendment of Schedule I. – In Schedule I of the principal Act, –
(i) in Article 19, in column (1), –

(a) after the words “Certificate or other Document”, the brackets, words, figures and letter “(except the certificate or other document covered under Articles 27 and 56A)” shall be inserted;

(b) the words, brackets and figures “See also Letter of Allotment of Shares (No. 36)” shall be omitted;

(ii) for Article 27 and the entries relating thereto, the following Article and entries shall be subsitituted, namely: –

(1)

(2)

“27. Debenture – [as defined by section 2 (10A)]
(see sections 9A and 9B)

(a) in case of issue of debenture;

0.005%

(b) in case of transfer and re-issue of debenture.

0.0001%”;

(iii) in Article 28, for the entry in column (1), after the words “Delivery order in Respect of Goods,”, the brackets and words “(excluding delivery order in respect of settlement of transactions in securities in stock exchange)” shall be inserted;

(iv) in Article 36, for the entry in column (1), the following entry shall be substituted, namely: –

“36. Letter Of Allotment in respect of any loan to be raised by any company or proposed company.”;

(v) after Article 56 and the entry relating thereto, the following Article and entries shall be inserted, namely: –

(1)

(2)

“56A. Security Other Than Debentures
(see sections 9A and 9B) –

(a) issue of security other than debenture;

0.005%

(b) transfer of security other than debenture on delivery basis;

0.015%

(c) transfer of security other than debenture on non-delivery basis;

0.003%

(d) derivatives –

(i) futures (equity and commodity)

0.002%

(ii) options (equity and commodity)

0.003%

(iii) currency and interest rate derivatives

0.0001%

(iv) other derivatives

0.002%

(e) Government securities

0%

(f) repo on corporate bonds

0.00001%”;

(vi) in Article 62, items (a) and (b) and the entries relating thereto shall be omitted.

Part II

Amendment to the Prevention of Money-Laundering Act, 2002

22. Amendment of section 8 of Act 15 of 2003. – In section 8 of the Prevention of Money-laundering Act, 2002, in sub-section (3), with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, –

(i) in clause (a), for the words “ninety days”, the words “three hundred and sixty-five days” shall be substituted;

(ii) after clause (b), the following Explanation shall be inserted, namely: –

Explanation. – For the purposes of computing the period of three hundred and sixty-five days under clause (a), the period during which the investigation is stayed by any court under any law for the time being in force shall be excluded.”.

Commissioner of Income Tax vs. Laxman Das Khandelwal – 13/08/2019

SUPREME COURT OF INDIA JUDGMENTS

Income Tax Act – According to Section 292BB of the Act, if the assessee had participated in the proceedings, by way of legal fiction, notice would be deemed to be valid even if there be infractions as detailed in said Section. The scope of the provision is to make service of notice having certain infirmities to be proper and valid if there was requisite participation on part of the assessee. It is, however, to be noted that the Section does not save complete absence of notice. For Section 292BB to apply, the notice must have emanated from the department. It is only the infirmities in the manner of service of notice that the Section seeks to cure. The Section is not intended to cure complete absence of notice itself.

SLP(C)No.Diary No. 7708 of 2019

Acts: Income Tax Act

From: High Court of Madhya Pradesh at Gwalior

Reportable

IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL Nos.6261-6262 OF 2019
(Arising out of Special Leave Petition (Civil) Nos.19320-19321 of 2019)
(Arising out of Special Leave Petition (Civil)D.No.7708 of 2019)

COMMISSIONER OF INCOME TAX …Appellant

VERSUS

LAXMAN DAS KHANDELWAL …Respondent

JUDGMENT

Uday Umesh Lalit, J.

1. Delay condoned. Leave granted.

2. These Appeals are directed against the judgment and final order dated 27.04.2018 passed by the High Court [High Court of Madhya Pradesh at Gwalior] in Income Tax Appeal No.97 of 2018 and against the order dated 14.09.2018 in Review Petition No.1289 of 2018 arising from said Income Tax Appeal No.97 of 2018.

3. The relevant facts leading to the filing of aforementioned Income Tax Appeal No.97 of 2018 before the High Court, as culled out from the judgment and order dated 27.04.2018 presently under appeal are as under:-

“The assessee is an individual carrying a business of brokerage. Search and seizure operation was conducted under Section 132 of the Act of 1961 on 11.03.2010 at his residential premises. The assessee submitted return of income on 24.08.2011, declaring total income of Rs.9,35,130/-. The assessment was completed under Section 143(3) read with Section 153(D) of 1961 Act. Rupees 9,09,110/- was added on account of unexplained cash under Section 69 of 1961 Act. Rs.15,09,672/- was added on account of unexplained jewellery. Rupees 45,00,000/- was added on account of unexplained hundies and Rs.29,53,631/-was added on account of unexplained cash receipts.

Aggrieved, the assessee filed an appeal before the Commissioner Income Tax (Appeal). The Commissioner of Income Tax (Appeal) deleted an amount of Rs.7,48,463/- holding that jewellery found in locker weighing 686.4 gms stood explained in view of circular No.1916 and further deleted the addition of Rs.29,23,98,117/- out of Rs.29,53,52,631/- holding that the correct approach would be to apply the peak formula to determine in such transaction which comes to Rs.29,54,514/- as on 05.03.2010.

Aggrieved, Revenue filed an appeal. The Assessee filed cross objection on the ground of jurisdiction of Assessment Officer regarding non issue of notice under Section 143(2) of the Act of 1961. The Tribunal vide impugned order upheld the cross objection and quashed the entire reassessment proceedings on the finding that the same stood vitiated as the assessment Officer lacked jurisdiction in absence of notice under Section 143(2) of the act of 1961.

The Tribunal observed:

“17. In conclusion, we find that there was no notice issued u/s 143(2) prior to the completion of assessment under section 143 (3) of the Act by the AO; that the year under consideration was beyond the scope of the provisions of Section 143A of the Act, it being the search year and not covered in the six year to the year of search as per the assessment scheme/procedure defined u/s 153A; that the AO has passed regular assessment u/s 143(3) of the Act; although the Id. CIT has mentioned the section as 143 r.w.s. 153A and that the department had not controverted these facts at the stage of hearing. It is noted that issue of notice u/s 143(2) for completion of regular assessment in the case of the assessee was a statutory requirement as per the provisions of the Act and non issuance thereof is not a curable defect. Even in case of block assessment u/s 158BC, it has been so held by the apex Court in the case of ‘ACIT v. Hotel Blue Moon’ (2010) 321 ITR 362 (Supra).”

4. In said appeal arising from the decision of the Income Tax Appellate Tribunal (‘the Tribunal’, for short), the issue that arose before the High Court was the effect of absence of notice under Section 143(2) of the Income Tax Act, 1961 (‘the Act’, for short). The Respondent-Assessee relied upon the decision of this Court in Assistant Commissioner of Income Tax and Another vs. Hotel Blue Moon2. On the other hand, reliance was placed by the Appellant on the provisions of Section 292BB of the Act to submit that the Respondent having participated in the proceedings, the defect, if any, stood completely cured.

5. At the outset, it must be stated that out of two questions of law that arose for consideration in Hotel Blue Moon’s case2 the first question was whether notice under Section 143(2) would be mandatory for the purpose of making the assessment under Section 143(3) of the Act. It was observed:-

“3. The Appellate Tribunal held, while affirming the decision of CIT (A) that non-issue of notice under Section 143(2) is only a procedural irregularity and the same is curable. In the appeal filed by the assessee before the Gauhati High Court, the following two questions of law were raised for consideration and decision of the High Court, they were:

“(1) Whether on the facts and in circumstances of the case the issuance of notice under Section 143(3) of the Income Tax Act, 1961 within the prescribed time-limit for the purpose of making the assessment under Section 143(3) of the Income Tax Act, 1961 is mandatory? And

(2) Whether, on the facts and in the circumstances of the case and in view of the undisputed findings arrived at by the Commissioner of Income Tax (Appeals), the additions made under Section 68 of the Income Tax Act, 1961 should be deleted or set aside?”

4. The High Court, disagreeing with the Tribunal, held, that the provisions of Section 142 and sub-sections (2) and (3) of Section 143 will have mandatory application in a case where the assessing officer in repudiation of return filed in response to a notice issued under Section 158-BC(a) proceeds to make an inquiry. Accordingly, the High Court answered the question of law framed in affirmative and in favour of the appellant and against the Revenue. The Revenue thereafter applied to this Court for special leave under Article 136, and the same was granted, and hence this appeal.

… … …

13. The only question that arises for our consideration in this batch of appeals is: whether service of notice on the assessee under Section 143(2) within the prescribed period of time is a prerequisite for framing the block assessment under Chapter XIV-B of the Income Tax Act, 1961?

… ……

27. The case of the Revenue is that the expression “so far as may be, apply” indicates that it is not expected to follow the provisions of Section 142, sub-sections (2) and (3) of Section 143 strictly for the purpose of block assessments. We do not agree with the submissions of the learned counsel for the Revenue, since we do not see any reason to restrict the scope and meaning of the expression “so far as may be, apply”. In our view, where the assessing officer in repudiation of the return filed under Section 158-BC(a) proceeds to make an enquiry, he has necessarily to follow the provisions of Section 142, sub-sections (2) and (3) of Section 143.”

6. The question, however, remains whether Section 292BB which came into effect on and from 01.04.2008 has effected any change. Said Section 292BB is to the following effect:-

“292BB. Notice deemed to be valid in certain circumstances. – Where an assessee has appeared in any proceeding or cooperated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was –

(a) Not served upon him; or
(b) Not served upon him in time; or

(c) Served upon him in an improper manner:

Provided that nothing contained in this section shall apply where the assessee has raised such objection before the completion of such assessment or reassessment.”

7. A closer look at Section 292BB shows that if the assessee has participated in the proceedings it shall be deemed that any notice which is required to be served upon was duly served and the assessee would be precluded from taking any objections that the notice was (a) not served upon him; or (b) not served upon him in time; or (c) served upon him in an improper manner. According to Mr. Mahabir Singh, learned Senior Advocate, since the Respondent had participated in the proceedings, the provisions of Section 292BB would be a complete answer.

On the other hand, Mr. Ankit Vijaywargia, learned Advocate, appearing for the Respondent submitted that the notice under Section 143(2) of the Act was never issued which was evident from the orders passed on record as well as the stand taken by the Appellant in the memo of appeal. It was further submitted that issuance of notice under Section 143(2) of the Act being prerequisite, in the absence of such notice, the entire proceedings would be invalid.

8. The law on the point as regards applicability of the requirement of notice under Section 143(2) of the Act is quite clear from the decision in Blue Moon’s case[(2010) 3 SCC 259]. The issue that however needs to be considered is the impact of Section 292BB of the Act.

9. According to Section 292BB of the Act, if the assessee had participated in the proceedings, by way of legal fiction, notice would be deemed to be valid even if there be infractions as detailed in said Section. The scope of the provision is to make service of notice having certain infirmities to be proper and valid if there was requisite participation on part of the assessee. It is, however, to be noted that the Section does not save complete absence of notice. For Section 292BB to apply, the notice must have emanated from the department. It is only the infirmities in the manner of service of notice that the Section seeks to cure. The Section is not intended to cure complete absence of notice itself.

by the High Court and the Tribunal and the conclusion arrived at were correct. We, therefore, see no reason to take a different view in the matter.

11. These Appeals are, therefore, dismissed. No costs.

J. Uday Umesh Lalit]

J.Vineet Saran

New Delhi;
August 13, 2019.

INCOME-TAX ACT, 1961

INDEX

Income-tax Act, 1961-2017

INCOME-TAX ACT, 1961
[43 OF 1961]
[AS AMENDED BY FINANCE ACT, 2018]
An Act to consolidate and amend the law relating to income-tax and super-tax
BE it enacted by Parliament in the Twelfth Year of the Republic of India as follows:—
As amended by Finance Act 2018


CHAPTER I – Preliminary
CHAPTER II – Basis of charge
CHAPTER III – Incomes which do not form part of total income
CHAPTER IV – Computation of total income
CHAPTER V – Income of other persons included in assessee’s total income
CHAPTER VI – Aggregation of income and set off or carry forward of loss
CHAPTER VIA – Deductions to be made in computing total income
CHAPTER VII – Incomes forming part of total income on which no income-tax is payable
CHAPTER VIII – Rebates and reliefs
CHAPTER IX – Double Taxation Relief
CHAPTER X – Special provisions relating to avoidance of tax
CHAPTER XA – GENERAL ANTI-AVOIDANCE RULE
CHAPTER XI – Additional income-tax on undistributed profits
CHAPTER XII – Determination of tax in certain special cases
CHAPTER XIIA – Special provisions relating to certain incomes of non-residents
CHAPTER XIIB – Special provisions relating to certain companies
CHAPTER XIIBA – Special provisions relating to certain limited liability partnerships
CHAPTER XIIBB – Special provisions relating to conversion of Indian branch of a foreign bank into a subsidiary company
CHAPTER XIIBC – SPECIAL PROVISIONS RELATING TO FOREIGN COMPANY SAID TO BE RESIDENT IN INDIA
CHAPTER XIIC – Special provisions relating to retail trade etc.
CHAPTER XIID – Special provisions relating to tax on distributed profits of domestic companies
CHAPTER XIIDA – SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME OF DOMESTIC COMPANY FOR BUY-BACK OF SHARES
CHAPTER XIIE – Special provisions relating to tax on distributed income
CHAPTER XIIEA – SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME BY SECURITISATION TRUSTS
CHAPTER XIIEB – SPECIAL PROVISIONS RELATING TO TAX ON ACCRETED INCOME OF CERTAIN TRUSTS AND INSTITUTIONS
CHAPTER XIIF – Special provisions relating to tax on income received from venture capital companies and venture capital funds
CHAPTER XIIFA – SPECIAL PROVISIONS RELATING TO BUSINESS TRUSTS
CHAPTER XIIFB – SPECIAL PROVISIONS RELATING TO TAX ON INCOME OF INVESTMENT FUNDS AND INCOME RECEIVED FROM SUCH FUNDS
CHAPTER XIIG – Special provisions relating to income of shipping companies
CHAPTER XIIH – Income-tax on fringe benefits
CHAPTER XIII – Income-tax Authorities
CHAPTER XIV – Procedure for assessment
CHAPTER XIVA – Special provision for avoiding repetitive appeals
CHAPTER XIVB – Special procedure for assessment of search cases
CHAPTER XV – Liability in special cases
CHAPTER XVI – Special provisions applicable to firms
CHAPTER XVII – Collection and recovery of tax
CHAPTER XVIII – Relief respecting tax on dividends in certain cases
CHAPTER XIX – Refunds
CHAPTER XIXA – Settlement of cases
CHAPTER XIXB – Advance rulings
CHAPTER XX – Appeals and revision
CHAPTER XXA – Acquisition of immovable properties in certain cases of transfer to counteract evasion of tax
CHAPTER XXB – Requirement as to mode of acceptance payment or repayment in certain cases to counteract evasion of tax
CHAPTER XXC – Purchase by central government of immovable properties in certain cases of transfer
CHAPTER XXI – Penalties imposable
CHAPTER XXII – Offences and prosecutions
CHAPTER XXIIB – Tax credit certificates
CHAPTER XXIII – Miscellaneous

First Schedule
INSURANCE BUSINESS

Second Schedule
PROCEDURE FOR RECOVERY OF TAX

Third Schedule
PROCEDURE FOR DISTRAINT BY [ASSESSING OFFICER] [OR TAX RECOVERY OFFICER

Fourth Schedule
RECOGNISED PROVIDENT FUNDS

Fifth Schedule
LIST OF ARTICLES AND THINGS

Sixth Schedule

Seventh Schedule
MINERALS

Eighth Schedule
LIST OF INDUSTRIALLY BACKWARD STATES AND UNION TERRITORIES

Ninth Schedule
Omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988

Tenth Schedule
Omitted by the Finance Act, 1999, w.e.f. 1-4-2000

Eleventh Schedule
LIST OF ARTICLES OR THINGS

Twelfth Schedule
PROCESSED MINERALS AND ORES

Thirteenth Schedule
LIST OF ARTICLES OR THINGS

Fourteenth Schedule
LIST OF ARTICLES OR THINGS OR OPERATIONS

APPENDIX
TEXT OF REMAINING PROVISIONS OF ALLIED ACTS REFERRED TO INCOME-TAX ACT


CHAPTER I – Preliminary

Section – 1 : Short title, extent and commencement.
Section – 2 : Definitions
Section – 3 : “Previous year” defined

CHAPTER II – Basis of charge

Section – 4 : Charge of income-tax
Section – 5 : Scope of total income
Section – 5A : Apportionment of income between spouses governed by Portuguese Civil Code
Section – 6 : Residence in India
Section – 7 : Income deemed to be received
Section – 8 : Dividend income
Section – 9 : Income deemed to accrue or arise in India
Section – 9A : Certain activities not to constitute business connection in India

CHAPTER III – Incomes which do not form part of total income

Section – 10 : Incomes not included in total income

Section – 10A : Special provision in respect of newly established undertakings in free trade zone, etc.

Section – 10AA : Special provisions in respect of newly established Units in Special Economic Zones.

Section – 10B : Special provisions in respect of newly established hundred per cent export-oriented undertakings

Section – 10BA : Special provisions in respect of export of certain articles or things.

Section – 10BB : Meaning of computer programmes in certain cases.

Section – 10C : Special provision in respect of certain industrial undertakings in North- Eastern Region.

Section – 11 : Income13 from property held for charitable or religious purposes.

Section – 12 : Income of trusts or institutions from contributions.

Section – 12A : Conditions for applicability of sections 11 and 12.

Section – 12AA : Procedure for registration.

Section – 13 : Section 11 not to apply in certain cases.

Section – 13A : Special provision relating to incomes of political parties.

Section – 13B : Special provisions relating to voluntary contributions received by electoral trust.

CHAPTER IV – Computation of total income

Section – 14 : Heads of income
Section – 14A : Expenditure incurred in relation to income not includible in total income
Section – 15 : Salaries
Section – 16 : Deductions from salaries
Section – 17 : “Salary”, “perquisite” and “profits in lieu of salary” defined
Section – 18 : [Omitted by the Finance Act, 1988, w.e.f. 1-4-1989]
Section – 22 : Income from house property
Section – 23 : Annual value how determined
Section – 24 : Deductions from income from house property
Section – 25 : Amounts not deductible from income from house property
Section – 25A : Special provision for arrears of rent and unrealised rent received subsequently
Section – 26 : Property owned by co-owners
Section – 27 : “Owner of house property”, “annual charge”, etc., defined
Section – 28 : Profits and gains of business or profession
Section – 29 : Income from profits and gains of business or profession, how computed
Section – 30 : Rent, rates, taxes, repairs and insurance for buildings
Section – 31 : Repairs and insurance of machinery, plant and furniture
Section – 32 : Depreciation
Section – 32A : Investment allowance
Section – 32AB : Investment deposit account
Section – 32AC : Investment in new plant or machinery
Section – 32AD : Investment in new plant or machinery in notified backward areas in certain States
Section – 33 : Development rebate
Section – 33A : Development allowance
Section – 33AB : Tea development account, coffee development account and rubber development account
Section – 33ABA : Site Restoration Fund.
Section – 33AC : Reserves for shipping business.
Section – 33B : Rehabilitation allowance.
Section – 34 : Conditions for depreciation allowance and development rebate.
Section – 34A : Restriction on unabsorbed depreciation and unabsorbed investment allowance for limited period in case of certain domestic companies.
Section – 35 : Expenditure on scientific research
Section – 35A : Expenditure on acquisition of patent rights or copyrights.
Section – 35AB : Expenditure on know-how.
Section – 35ABA : Expenditure for obtaining right to use spectrum for telecommunication services.
Section – 35ABB : Expenditure for obtaining licence to operate telecommunication services.
Section – 35AC : Expenditure on eligible projects or schemes.
Section – 35AD : Deduction in respect of expenditure on specified business.
Section – 35B : Export markets development allowance.
Section – 35C : Agricultural development allowance.
Section – 35CC : Rural development allowance.
Section – 35CCA : Expenditure by way of payment to associations and institutions for carrying out rural development programmes.
Section – 35CCB : Expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources.
Section – 35CCC : Expenditure on agricultural extension project.
Section – 35CCD : Expenditure on skill development project.
Section – 35D : Amortisation of certain preliminary expenses.
Section – 35DD : Amortisation of expenditure in case of amalgamation or demerger.
Section – 35DDA : Amortisation of expenditure incurred under voluntary retirement scheme.
Section – 35E : Deduction for expenditure on prospecting, etc., for certain minerals.
Section – 36 : Other deductions.
Section – 37 : General.
Section – 38 : Building, etc., partly used for business, etc., or not exclusively so used.
Section – 39 : Managing agency commission.
Section – 40 : Amounts not deductible.
Section – 40A : Expenses or payments not deductible in certain circumstances.
Section – 41 : Profits chargeable to tax
Section – 42 : Special provision for deductions in the case of business for prospecting, etc., for mineral oil
Section – 43 : Definitions of certain terms relevant to income from profits and gains of business or profession
Section – 43A : Special provisions consequential to changes in rate of exchange of currency
Section – 43B : Certain deductions to be only on actual payment
Section – 43C : Special provision for computation of cost of acquisition of certain assets
Section – 43CA : Special provision for full value of consideration for transfer of assets other than capital assets in certain cases
Section – 43D : Special provision in case of income of public financial institutions, public companies, etc
Section – 44 : Insurance business
Section – 44A : Special provision for deduction in the case of trade, professional or similar association
Section – 44AA : Maintenance of accounts by certain persons carrying on profession or business
Section – 44AB : Audit of accounts of certain persons carrying on business or profession
Section – 44AC : Special provision for computing profits and gains from the business of trading in certain goods
Section – 44AD : Special provision for computing profits and gains of business on presumptive basis
Section – 44ADA : Special provision for computing profits and gains of profession on presumptive basis
Section – 44AE : Special provision for computing profits and gains of business of plying, hiring or leasing goods carriages
Section – 44AF : Special provisions for computing profits and gains of retail business
Section – 44B : Special provision for computing profits and gains of shipping business in the case of non-residents
Section – 44BB : Special provision for computing profits and gains in connection with the business of exploration, etc., of mineral oils
Section – 44BBA : Special provision for computing profits and gains of the business of operation of aircraft in the case of non-residents
Section – 44BBB : Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects.
Section – 44C : Deduction of head office expenditure in the case of non-residents.
Section – 44D : Special provisions for computing income by way of royalties, etc., in the case of foreign companies
Section – 44DA : Special provision for computing income by way of royalties, etc., in case of non-residents
Section – 44DB : Special provision for computing deductions in the case of business reorganization of co-operative banks
Section – 45 : Capital gains
Section – 46 : Capital gains on distribution of assets by companies in liquidation.
Section – 46A : Capital gains on purchase by company of its own shares or other specified securities
Section – 47 : Transactions not regarded as transfer
Section – 47A : Withdrawal of exemption in certain cases
Section – 48 : Mode of computation
Section – 49 : Cost with reference to certain modes of acquisition
Section – 50 : Special provision for computation of capital gains in case of depreciable assets
Section – 50A : Special provision for cost of acquisition in case of depreciable asset.
Section – 50B : Special provision for computation of capital gains in case of slump sale.
Section – 50C : Special provision for full value of consideration in certain cases.
Section – 50CA : Special provision for full value of consideration for transfer of share other than quoted share
Section – 50D : Fair market value deemed to be full value of consideration in certain cases
Section – 51 : Advance money received.
Section – 52 : Consideration for transfer in cases of understatement.
Section – 53 : Exemption of capital gains from a residential house
Section – 54 : Profit on sale of property used for residence
Section – 54A : Relief of tax on capital gains in certain cases.
Section – 54C : Capital gain on transfer of jewellery held for personal use not to be charged in certain cases
Section – 54D : Capital gain on compulsory acquisition of lands and buildings not to be charged in certain cases
Section – 54E : Capital gain on transfer of capital assets not to be charged in certain cases
Section – 54EA : Capital gain on transfer of long-term capital assets not to be charged in the case of investment in 55[specified securities]
Section – 54EB : Capital gain on transfer of long-term capital assets not to be charged in certain cases
Section – 54EC : Capital gain not to be charged on investment in certain bonds
Section – 54ED : Capital gain on transfer of certain listed securities or unit not to be charged in certain cases
Section – 54EE : Capital gain not to be charged on investment in units of a specified fund
Section – 54F : Capital gain on transfer of certain capital assets not to be charged in case of investment in residential house
Section – 54G : Exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area
Section – 54GB : Capital gain on transfer of residential property not to be charged in certain cases
Section – 54H : Extension of time for acquiring new asset or depositing or investing amount of capital gain
Section – 55 : Meaning of “adjusted”, “cost of improvement” and “cost of acquisition”
Section – 55A : Reference to Valuation Officer
Section – 56 : Income from other sources
Section – 57 : Deductions
Section – 58 : Amounts not deductible
Section – 59 : Profits chargeable to tax

CHAPTER V – Income of other persons included in assessee’s total income
Section – 60 : Transfer of income where there is no transfer of assets

Section – 61 : Revocable transfer of assets

Section – 62 : Transfer irrevocable for a specified period

Section – 63 : “Transfer” and “revocable transfer” defined

Section – 64 : Income of individual to include income of spouse, minor child, etc

Section – 65 : Liability of person in respect of income included in the income of another person
CHAPTER VI – Aggregation of income and set off or carry forward of loss
Section – 66 : Total income

Section – 67 : Method of computing a partner’s share in the income of the firm

Section – 67A : Method of computing a member’s share in income of association of persons or body of individuals.

Section – 68 : Cash credits

Section – 69 : Unexplained investments

Section – 69A : Unexplained money, etc

Section – 69B : Amount of investments, etc., not fully disclosed in books of account

Section – 69C : Unexplained expenditure, etc

Section – 69D : Amount borrowed or repaid on hundi

Section – 70 : Set off of loss from one source against income from another source under the same head of income

Section – 71 : Set off of loss from one head against income from another

Section – 71A : Transitional provisions for set off of loss under the head “Income from house property”

Section – 71B : Carry forward and set off of loss from house property

Section – 72 : Carry forward and set off of business losses

Section – 72A : Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in amalgamation or demerger, etc.

Section – 72AA : Provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation of banking company in certain cases

Section – 72AB : Provisions relating to carry forward and set off of accumulated loss and unabsorbed depreciation allowance in business reorganisation of co-operative banks

Section – 73 : Losses in speculation business

Section – 73A : Carry forward and set off of losses by specified business

Section – 74 : Losses under the head “Capital gains”

Section – 74A : Losses from certain specified sources falling under the head “Income from other sources”

Section – 75 : Losses of firms

Section – 78 : Carry forward and set off of losses in case of change in constitution of firm or on succession

Section – 79 : Carry forward and set off of losses in the case of certain companies

Section – 80 : Submission of return for losses
CHAPTER VIA – Deductions to be made in computing total income
Section – 80A : Deductions to be made in computing total income
Section – 80AA : Computation of deduction under section 80M
Section – 80AB : Deductions to be made with reference to the income included in the gross total income
Section – 80AC : Deduction not to be allowed unless return furnished
Section – 80B : Definitions
Section – 80C : Deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.
Section – 80CC : Deduction in respect of investment in certain new shares
Section – 80CCA : Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan
Section – 80CCB : Deduction in respect of investment made under Equity Linked Savings Scheme
Section – 80CCC : Deduction in respect of contribution to certain pension funds
Section – 80CCD : Deduction in respect of contribution to pension scheme of Central Government
Section – 80CCE : Limit on deductions under sections 80C, 80CCC and 80CCD
Section – 80CCF : Deduction in respect of subscription to long-term infrastructure bonds
Section – 80CCG : Deduction in respect of investment made under an equity savings scheme
Section – 80D : Deduction in respect of health insurance premia
Section – 80DD : Deduction in respect of maintenance including medical treatment of a dependant who is a person with disability
Section – 80DDB : Deduction in respect of medical treatment, etc.
Section – 80E : Deduction in respect of interest on loan taken for higher education
Section – 80EE : Deduction in respect of interest on loan taken for residential house property
Section – 80F : Deduction in respect of educational expenses in certain cases
Section – 80FF : Deduction in respect of expenses on higher education in certain cases
Section – 80G : Deduction in respect of donations to certain funds, charitable institutions, etc.
Section – 80GG : Deductions in respect of rents paid
Section – 80GGA : Deduction in respect of certain donations for scientific research or rural development
Section – 80GGB : Deduction in respect of contributions given by companies to political parties
Section – 80GGC : Deduction in respect of contributions given by any person to political parties
Section – 80H : Deduction in case of new industrial undertakings employing displaced persons, etc.
Section – 80HH : Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas
Section – 80HHA : Deduction in respect of profits and gains from newly established small-scale industrial undertakings in certain areas
Section – 80HHB : Deduction in respect of profits and gains from projects outside India
Section – 80HHBA : Deduction in respect of profits and gains from housing projects in certain cases
Section – 80HHC : Deduction in respect of profits retained for export business
Section – 80HHD : Deduction in respect of earnings in convertible foreign exchange
Section – 80HHE : Deduction in respect of profits from export of computer software, etc.
Section – 80HHF : Deduction in respect of profits and gains from export or transfer of film software, etc.
Section – 80-I : Deduction in respect of profits and gains from industrial undertakings after a certain date, etc.
Section – 80-IA : Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.
Section – 80-IAB : Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone
Section – 80-IAC : Special provision in respect of specified business
Section – 80-IB : Deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings
Section – 80-IBA : Deductions in respect of profits and gains from housing projects
Section – 80-IC : Special provisions in respect of certain undertakings or enterprises in certain special category States
Section – 80-ID : Deduction in respect of profits and gains from business of hotels and convention centres in specified area
Section – 80-IE : Special provisions in respect of certain undertakings in North-Eastern States
Section – 80J : Deduction in respect of profits and gains from newly established industrial undertakings or ships or hotel business in certain cases
Section – 80JJ : Deduction in respect of profits and gains from business of poultry farming
Section – 80JJA : Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste
Section – 80JJAA : Deduction in respect of employment of new employees
Section – 80K : Deduction in respect of dividends attributable to profits and gains from new industrial undertakings or ships or hotel business
Section – 80L : Deductions in respect of interest on certain securities, dividends, etc
Section – 80LA : Deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre
Section – 80M : Deduction in respect of certain inter-corporate dividends
Section – 80MM : Deduction in the case of an Indian company in respect of royalties, etc., received from any concern in India
Section – 80N : Deduction in respect of dividends received from certain foreign companies
Section – 80-O : Deduction in respect of royalties, etc., from certain foreign enterprises
Section – 80P : Deduction in respect of income of co-operative societies
Section – 80Q : Deduction in respect of profits and gains from the business of publication of books
Section – 80QQ : Deduction in respect of profits and gains from the business of publication of books
Section – 80QQA : Deduction in respect of professional income of authors of text books in Indian languages
Section – 80QQB : Deduction in respect of royalty income, etc., of authors of certain books other than text-books
Section – 80R : Deduction in respect of remuneration from certain foreign sources in the case of professors, teachers, etc
Section – 80RR : Deduction in respect of professional income from foreign sources in certain cases
Section – 80RRA : Deduction in respect of remuneration received for services rendered outside India
Section – 80RRB : Deduction in respect of royalty on patents
Section – 80S : Deduction in respect of compensation for termination of managing agency, etc., in the case of assessees other than companies
Section – 80T : Deduction in respect of long-term capital gains in the case of assessees other than companies
Section – 80TT : Deduction in respect of winnings from lottery
Section – 80TTA : Deduction in respect of interest on deposits in savings account
Section – 80U : Deduction in case of a person with disability
Section – 80V : Deduction from gross total income of the parent in certain cases
Section – 80VV : Deduction in respect of expenses incurred in connection with certain proceedings under the Act

CHAPTER VII – Incomes forming part of total income on which no income-tax is payable
Section – 81 to 85C : Omitted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968
Section – 86 : Share of member of an association of persons or body of individuals in the income of the association or body
Section – 86A : Deduction from tax on certain securities

CHAPTER VIII – Rebates and reliefs
Section – 87 : Rebate to be allowed in computing income-tax

Section – 87A : Rebate of income-tax in case of certain individuals

Section – 88 : Rebate on life insurance premia, contribution to provident fund, etc

Section – 88A : Rebate in respect of investment in certain new shares or units

Section – 88B : Rebate of income-tax in case of individuals of sixty-five years or above

Section – 88C : Rebate of income-tax in case of women below sixty-five years

Section – 88D : Rebate of income-tax in case of certain individuals

Section – 88E : Rebate in respect of securities transaction tax

Section – 89 : Relief when salary, etc., is paid in arrears or in advance

Section – 89A : Tax relief in relation to export turnover
CHAPTER IX – Double Taxation Relief
Section – 90 : Agreement with foreign countries or specified territories

Section – 90A : Adoption by Central Government of agreement between specified associations for double taxation relief

Section – 91 : Countries with which no agreement exists
CHAPTER X – Special provisions relating to avoidance of tax
Section – 92 : Computation of income from international transaction having regard to arm’s length price

Section – 92A : Meaning of associated enterprise

Section – 92B : Meaning of international transaction

Section – 92BA : Meaning of specified domestic transaction

Section – 92C : Computation of arm’s length price

Section – 92CA : Reference to Transfer Pricing Officer

Section – 92CB : Power of Board to make safe harbour rules

Section – 92CC : Advance pricing agreement

Section – 92CD : Effect to advance pricing agreement

Section – 92CE : Secondary adjustment in certain cases

Section – 92D : Maintenance and keeping of information and document by persons entering into an international transaction 55[or specified domestic transaction].

Section – 92E : Report from an accountant to be furnished by persons entering into international transaction 61a[or specified domestic transaction].

Section – 92F : Definitions of certain terms relevant to computation of arm’s length price, etc

Section – 93 : Avoidance of income-tax by transactions resulting in transfer of income to non-residents

Section – 94 : Avoidance of tax by certain transactions in securities

Section – 94A : Special measures in respect of transactions with persons located in notified jurisdictional area

Section – 94B : Limitation on interest deduction in certain cases
CHAPTER XA – GENERAL ANTI-AVOIDANCE RULE
Section – 95 : Applicability of General Anti-Avoidance Rule

Section – 96 : Impermissible avoidance arrangement

Section – 97 : Arrangement to lack commercial substance

Section – 98 : Consequences of impermissible avoidance arrangement

Section – 99 : Treatment of connected person and accommodating party

Section – 100 : Application of this Chapter

Section – 101 : Framing of guidelines

Section – 102 : Definitions
CHAPTER XI – Additional income-tax on undistributed profits
Section – 104 : Income-tax on undistributed income of certain companies

Section – 105 : Special provisions for certain companies

Section – 106 : Period of limitation for making orders under section 104

Section – 107 : Approval of Inspecting Assistant Commissioner for orders under section 104

Section – 107A : Reduction of minimum distribution in certain cases

Section – 108 : Savings for company in which public are substantially interested

Section – 109 : “Distributable income”, “investment company” and “statutory percentage” defined
CHAPTER XII – Determination of tax in certain special cases
Section – 110 : Determination of tax where total income includes income on which no tax is payable
Section – 111 : Tax on accumulated balance of recognised provident fund
Section – 111A : Tax on short-term capital gains in certain cases
Section – 112 : Tax on long-term capital gains
Section – 112A : Tax on interest on National Savings Certificates (First Issue)
Section – 113 : Tax in the case of block assessment of search cases
Section – 114 : Tax on capital gains in cases of assessees other than companies
Section – 115 : Tax on capital gains in case of companies
Section – 115A : Tax on dividends, royalty and technical service fees in the case of foreign companies
Section – 115AB : Tax on income from units purchased in foreign currency or capital gains arising from their transfer
Section – 115AC : Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.
Section – 115ACA : Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer
Section – 115AD : Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer
Section – 115B : Tax on profits and gains of life insurance business
Section – 115BA : Tax on income of certain domestic companies
Section – 115BB : Tax on winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any form or nature whatsoever
Section – 115BBA : Tax on non-resident sportsmen or sports associations
Section – 115BBB : Tax on income from units of an open-ended equity oriented fund of the Unit Trust of India or of Mutual Funds
Section – 115BBC : Anonymous donations to be taxed in certain cases
Section – 115BBD : Tax on certain dividends received from foreign companies
Section – 115BBDA : Tax on certain dividends received from domestic companies
Section – 115BBE : Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D
Section – 115BBF : Tax on income from patent

CHAPTER XIIA – Special provisions relating to certain incomes of non-residents
Section – 115C : Definitions

Section – 115D : Special provision for computation of total income of non-residents

Section – 115E : Tax on investment income20 and long-term capital gains.

Section – 115F : Capital gains on transfer of foreign exchange assets not to be charged in certain cases

Section – 115G : Return of income not to be filed in certain cases

Section – 115H : Benefit under Chapter to be available in certain cases even after the assessee becomes resident

Section – 115-I : Chapter not to apply if the assessee so chooses
CHAPTER XIIB – Special provisions relating to certain companies
Section – 115J : Special provisions relating to certain companies.

Section – 115JA : Deemed income relating to certain companies

Section – 115JAA : Tax credit in respect of tax paid on deemed income relating to certain companies

Section – 115JB : Special provision for payment of tax by certain companies
CHAPTER XIIBA – Special provisions relating to certain limited liability partnerships
Section – 115JC : Special provisions for payment of tax by certain persons other than a company

Section – 115JD : Tax credit for alternate minimum tax

Section – 115JE : Application of other provisions of this Act

Section – 115JEE : Application of this Chapter to certain persons

Section – 115JF : Interpretation in this Chapter
CHAPTER XIIBB – Special provisions relating to conversion of Indian branch of a foreign bank into a subsidiary company
Section – 115JG : Conversion of an Indian branch of foreign company into subsidiary Indian company
CHAPTER XIIBC – SPECIAL PROVISIONS RELATING TO FOREIGN COMPANY SAID TO BE RESIDENT IN INDIA
Section – 115JH : Foreign company said to be resident in India
CHAPTER XIIC – Special provisions relating to retail trade etc.
Section – 115K : Special provision for computation of income in certain cases

Section – 115L : Return of income not to be filed in certain cases

Section – 115M : Special provision for disallowance of deductions and rebate of income-tax

Section – 115N : Bar of proceedings in certain cases

CHAPTER XIID – Special provisions relating to tax on distributed profits of domestic companies
Section – 115-O : Tax on distributed profits of domestic companies

Section – 115P : Interest payable for non-payment of tax by domestic companies

Section – 115Q : When company is deemed to be in default
CHAPTER XIIDA – SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME OF DOMESTIC COMPANY FOR BUY-BACK OF SHARES
Section – 115QA : Tax on distributed income to shareholders

Section – 115QB : Interest payable for non-payment of tax by company

Section – 115QC : When company is deemed to be assessee in default
CHAPTER XIIE – Special provisions relating to tax on distributed income
Section – 115R : Tax on distributed income to unit holders

Section – 115S : Interest payable for non-payment of tax

Section – 115T : Unit Trust of India or Mutual Fund to be an assessee in default
CHAPTER XIIEA – SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME BY SECURITISATION TRUSTS
Section – 115TA : Tax on distributed income to investors

Section – 115TB : Interest payable for non-payment of tax

Section – 115TC : Securitisation trust to be assessee in default

Section – 115TCA : Tax on income from securitisation trusts
CHAPTER XIIEB – SPECIAL PROVISIONS RELATING TO TAX ON ACCRETED INCOMEOF CERTAIN TRUSTS AND INSTITUTIONS
Section – 115TD : Tax on accreted income

Section – 115TE : Interest payable for non-payment of tax by trust or institution

Section – 115TF : When trust or institution is deemed to be assessee in default
CHAPTER XIIF – Special provisions relating to tax on income received from venture capital companies and venture capital funds
Section – 115U : Tax on income in certain cases
CHAPTER XIIFA – SPECIAL PROVISIONS RELATING TO BUSINESS TRUSTS
Section – 115UA : Tax on income of unit holder and business trust
CHAPTER XIIFB – SPECIAL PROVISIONS RELATING TO TAX ON INCOME OF INVESTMENT FUNDS AND INCOME RECEIVED FROM SUCH FUNDS
Section – 115UB : Tax on income of investment fund and its unit holders
CHAPTER XIIG – Special provisions relating to income of shipping companies
Section – 115V : Definitions

Section – 115VA : Computation of profits and gains from the business of operating qualifying ships

Section – 115VB : Operating ships

Section – 115VC : Qualifying company

Section – 115VD : Qualifying ship

Section – 115VE : Manner of computation of income under tonnage tax scheme

Section – 115VF : Tonnage income

Section – 115VG : Computation of tonnage income

Section – 115VH : Calculation in case of joint operation, etc.

Section – 115VI : Relevant shipping income

Section – 115VJ : Treatment of common costs

Section – 115VK : Depreciation

Section – 115VL : General exclusion of deduction and set off, etc.

Section – 115VM : Exclusion of loss

Section – 115VN : Chargeable gains from transfer of tonnage tax assets

Section – 115V-O : Exclusion from provisions of section 115JB

Section – 115VP : Method and time of opting for tonnage tax scheme

Section – 115VQ : Period for which tonnage tax option to remain in force

Section – 115VR : Renewal of tonnage tax scheme

Section – 115VS : Prohibition to opt for tonnage tax scheme in certain cases

Section – 115VT : Transfer of profits to Tonnage Tax Reserve Account

Section – 115VU : Minimum training requirement for tonnage tax company

Section – 115VV : Limit for charter in of tonnage

Section – 115VW : Maintenance and audit of accounts

Section – 115VX : Determination of tonnage

Section – 115VY : Amalgamation

Section – 115VZ : Demerger

Section – 115VZA : Effect of temporarily ceasing to operate qualifying ships

Section – 115VZB : Avoidance of tax

Section – 115VZC : Exclusion from tonnage tax scheme
CHAPTER XIIH – Income-tax on fringe benefits
Section – 115W : Definitions

Section – 115WA : Charge of fringe benefit tax

Section – 115WB : Fringe benefits

Section – 115WC : Value of fringe benefits

Section – 115WD : Return of fringe benefits

Section – 115WE : Assessment

Section – 115WF : Best judgment assessment

Section – 115WG : Fringe benefits escaping assessment

Section – 115WH : Issue of notice where fringe benefits have escaped assessment

Section – 115WI : Payment of fringe benefit tax

Section – 115WJ : Advance tax in respect of fringe benefits

Section – 115WK : Interest for default in furnishing return of fringe benefits

Section – 115WKA : Recovery of fringe benefit tax by the employer from the employee

Section – 115WKB : Deemed payment of tax by employee

Section – 115WL : Application of other provisions of this Act

Section – 115WM : Chapter XII-H not to apply after a certain date

CHAPTER XIII – Income-tax Authorities

CHAPTER XIV – Procedure for assessment

CHAPTER XIVA – Special provision for avoiding repetitive appeals

Section – 158A : Procedure when assessee claims identical question of law is pending before High Court or Supreme Court

Section – 158AA : Procedure when in an appeal by revenue an identical question of law is pending before Supreme Court
CHAPTER XIVB – Special procedure for assessment of search cases
Section – 158B : Definitions

Section – 158BA : Assessment of undisclosed income as a result of search

Section – 158BB : Computation of undisclosed income of the block period

Section – 158BC : Procedure for block assessment

Section – 158BD : Undisclosed income of any other person

Section – 158BE : Time limit for completion of block assessment

Section – 158BF : Certain interests and penalties not to be levied or imposed

Section – 158BFA : Levy of interest and penalty in certain cases

Section – 158BG : Authority competent to make the block assessment

Section – 158BH : Application of other provisions of this Act

Section – 158BI : Chapter not to apply after certain date
CHAPTER XV – Liability in special cases
Section – 159 : Legal representatives

Section – 160 : Representative assessee

Section – 161 : Liability of representative assessee

Section – 162 : Right of representative assessee to recover tax paid

Section – 163 : Who may be regarded as agent

Section – 164 : Charge69 of tax where share of beneficiaries unknown.

Section – 164A : Charge of tax in case of oral trust

Section – 165 : Case where part of trust income is chargeable

Section – 166 : Direct assessment or recovery not barred

Section – 167 : Remedies against property in cases of representative assessees

Section – 167A : Charge of tax in the case of a firm

Section – 167B : Charge of tax where shares of members in association of persons or body of individuals unknown, etc.

Section – 167C : Liability of partners of limited liability partnership in liquidation

Section – 168 : Executors

Section – 169 : Right of executor to recover tax paid

Section – 170 : Succession to business otherwise than on death

Section – 171 : Assessment after partition of a Hindu undivided family

Section – 172 : Shipping business of non-residents

Section – 173 : Recovery of tax in respect of non-resident from his assets

Section – 174 : Assessment of persons leaving India

Section – 174A : Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose

Section – 175 : Assessment of persons likely to transfer property to avoid tax

Section – 176 : Discontinued business

Section – 177 : Association dissolved or business discontinued

Section – 178 : Company in liquidation

Section – 179 : Liability of directors of private company in liquidation

Section – 180 : Royalties or copyright fees for literary or artistic work

Section – 180A : Consideration for know-how

Section – 181 : Omitted by the Finance Act, 1988, w.e.f. 1-4-1989
CHAPTER XVI – Special provisions applicable to firms
Section – 182 : Assessment of registered firms

Section – 183 : Assessment of unregistered firms

Section – 184 : Assessment as a firm

Section – 185 : Assessment when section 184 not complied with

Section – 187 : Change in constitution of a firm

Section – 188 : Succession of one firm by another firm

Section – 188A : Joint and several liability of partners for tax payable by firm

Section – 189 : Firm dissolved or business discontinued

Section – 189A : Provisions applicable to past assessments of firms
CHAPTER XVII – Collection and recovery of tax [Click]

CHAPTER XVIII – Relief respecting tax on dividends in certain cases
Section – 235 : Relief to shareholders in respect of agricultural income-tax attributable to dividends

Section – 236 : Relief to company in respect of dividend paid out of past taxed profits

Section – 236A : Relief to certain charitable institutions or funds in respect of certain dividends
CHAPTER XIX – Refunds
Section – 237 : Refunds

Section – 238 : Person entitled to claim refund in certain special cases

Section – 239 : Form of claim for refund and limitation

Section – 240 : Refund on appeal, etc

Section – 241 : Power to withhold refund in certain cases

Section – 241A : [Withholding of refund in certain cases

Section – 242 : Correctness of assessment not to be questioned

Section – 243 : Interest on delayed refunds

Section – 244 : Interest on refund where no claim is needed

Section – 244A : Interest on refunds

Section – 245 : Set off of refunds against tax remaining payable
CHAPTER XIXA – Settlement of cases
Section – 245A : Definitions

Section – 245B : Income-tax Settlement Commission

Section – 245BA : Jurisdiction and powers of Settlement Commission

Section – 245BB : Vice-Chairman to act as Chairman or to discharge his functions in certain circumstances

Section – 245BC : Power of Chairman to transfer cases from one Bench to another

Section – 245BD : Decision to be by majority

Section – 245C : Application for settlement of cases

Section – 245D : Procedure on receipt of an application under section 245C

Section – 245DD : Power of Settlement Commission to order provisional attachment to protect revenue

Section – 245E : Power of Settlement Commission to reopen completed proceedings

Section – 245F : Powers and procedure of Settlement Commission

Section – 245G : Inspection, etc., of reports

Section – 245H : Power of Settlement Commission to grant immunity from prosecution and penalty

Section – 245HA : Abatement of proceeding before Settlement Commission

Section – 245HAA : Credit for tax paid in case of abatement of proceedings

Section – 245I : Order of settlement to be conclusive

Section – 245J : Recovery of sums due under order of settlement

Section – 245K : Bar on subsequent application for settlement

Section – 245L : Proceedings before Settlement Commission to be judicial proceedings

Section – 245M : Certain persons who have filed appeals to the Appellate Tribunal entitled to make applications to the Settlement Commission

CHAPTER XIXB – Advance rulings
Section – 245N : Definitions
Section – 245O : Authority for Advance Rulings
Section – 245P : Vacancies, etc., not to invalidate proceedings
Section – 245Q : Application for advance ruling
Section – 245R : Procedure on receipt of application
Section – 245RR : Appellate authority not to proceed in certain cases
Section – 245S : Applicability of advance ruling
Section – 245T : Advance ruling to be void in certain circumstances
Section – 245U : Powers of the Authority
Section – 245V : Procedure of Authority
CHAPTER XX – Appeals and revision [Click]

CHAPTER XXA – Acquisition of immovable properties in certain cases of transfer to counteract evasion of tax
Section – 269A : Definitions
Section – 269AB : Registration of certain transactions
Section – 269B : Competent authority
Section – 269C : Immovable property in respect of which proceedings for acquisition may be taken
Section – 269D : Preliminary notice
Section – 269E : Objections
Section – 269F : Hearing of objections
Section – 269G : Appeal against order for acquisition
Section – 269H : Appeal to High Court
Section – 269I : Vesting of property in Central Government
Section – 269J : Compensation
Section – 269K : Payment or deposit of compensation
Section – 269L : Assistance by Valuation Officers
Section – 269M : Powers of competent authority
Section – 269N : Rectification of mistakes
Section – 269O : Appearance by authorised representative or registered valuer
Section – 269P : Statement to be furnished in respect of transfers of immovable property
Section – 269Q : Chapter not to apply to transfers to relatives
Section – 269R : Properties liable for acquisition under this Chapter not to be acquired under other laws
Section – 269RR : Chapter not to apply where transfer of immovable property made after a certain date
Section – 269S : Chapter not to extend to State of Jammu and Kashmir

CHAPTER XXB – Requirement as to mode of acceptance payment or repayment in certain cases to counteract evasion of tax
Section – 269SS : Mode of taking or accepting certain loans, deposits and specified sum.
Section – 269ST : Mode of undertaking transactions
Section – 269T : Mode of repayment of certain loans or deposits
Section – 269TT : Mode of repayment of Special Bearer Bonds, 1991

CHAPTER XXC – Purchase by central government of immovable properties in certain cases of transfer
Section – 269U : Commencement of Chapter
Section – 269UA : Definitions
Section – 269UB : Appropriate authority
Section – 269UC : Restrictions on transfer of immovable property
Section – 269UD : Order by appropriate authority for purchase by Central Government of immovable property
Section – 269UE : Vesting of property in Central Government
Section – 269UF : Consideration for purchase of immovable property by Central Government
Section – 269UG : Payment or deposit of consideration
Section – 269UH : Re-vesting of property in the transferor on failure of payment or deposit of consideration
Section – 269UI : Powers of the appropriate authority
Section – 269UJ : Rectification of mistakes
Section – 269UK : Restrictions on revocation or alteration of certain agreements for the transfer of immovable property or on transfer of certain immovable property
Section – 269UL : Restrictions on registration, etc., of documents in respect of transfer of immovable property
Section – 269UM : Immunity to transferor against claims of transferee for transfer
Section – 269UN : Order of appropriate authority to be final and conclusive
Section – 269UO : Chapter not to apply to certain transfers
Section – 269UP : Chapter not to apply where transfer of immovable property effected after certain date

CHAPTER XXI – Penalties imposable
Section – 270 : Failure to furnish information regarding securities, etc.
Section – 270A : Penalty for under-reporting and misreporting of income
Section – 270AA : Immunity from imposition of penalty, etc.
Section – 271 : Failure to furnish returns, comply with notices, concealment of income, etc.
Section – 271A : Failure to keep, maintain or retain books of account, documents, etc.
Section – 271AA : Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions
Section – 271AAA : Penalty where search has been initiated
Section – 271AAB : Penalty where search has been initiated
Section – 271B : Failure to get accounts audited
Section – 271BA : Penalty for failure to furnish report under section 92E
Section – 271BB : Failure to subscribe to the eligible issue of capital
Section – 271C : Penalty for failure to deduct tax at source
Section – 271CA : Penalty for failure to collect tax at source
Section – 271D : Penalty for failure to comply with the provisions of section 269SS
Section – 271DA : Penalty for failure to comply with provisions of section 269ST
Section – 271E : Penalty for failure to comply with the provisions of section 269T
Section – 271F : Penalty for failure to furnish return of income
Section – 271FA : Penalty for failure to furnish 90[statement of financial transaction or reportable account].
Section – 271FAA : Penalty for furnishing inaccurate statement of financial transaction or reportable account
Section – 271FAB : Penalty for failure to furnish statement or information or document by an eligible investment fund
Section – 271FB : Penalty for failure to furnish return of fringe benefits
Section – 271G : Penalty for failure to furnish information or document under section 92D
Section – 271GA : Penalty for failure to furnish information or document under section 285A
Section – 271GB : Penalty for failure to furnish report or for furnishing inaccurate report under section 286
Section – 271H : Penalty for failure to furnish statements, etc.
Section – 271-I : Penalty for failure to furnish information or furnishing inaccurate information under section 195
Section – 272 : Failure to give notice of discontinuance
Section – 272A : Penalty for failure to answer questions, sign statements, furnish information, returns or statements, allow inspections, etc.
Section – 272AA : Penalty for failure to comply with the provisions of section 133B
Section – 272B : Penalty for failure to comply with the provisions of section 139A.
Section – 272BB : Penalty for failure to comply with the provisions of section 203A
Section – 272BBB : Penalty for failure to comply with the provisions of section 206CA
Section – 273 : False estimate of, or failure to pay, advance tax46.
Section – 273A : Power to reduce or waive penalty, etc., in certain cases
Section – 273AA : Power of 7[Principal Commissioner or] Commissioner to grant immunity from penalty.
Section – 273B : Penalty not to be imposed in certain cases
Section – 274 : Procedure
Section – 275 : Bar of limitation for imposing penalties

CHAPTER XXII – Offences and prosecutions

CHAPTER XXIIB – Tax credit certificates
Section – 280Y : Definitions

Section – 280ZA : Tax credit certificates for shifting of industrial undertaking from urban area

Section – 280ZC : Tax credit certificate in relation to exports

Section – 280ZD : Tax credit certificates in relation to increased production of certain goods

Section – 280ZE : Tax credit certificate scheme
CHAPTER XXIII – Miscellaneous
Section – 281 : Certain transfers to be void

Section – 281A : Effect of failure to furnish information in respect of properties held benami

Section – 281B : Provisional attachment to protect revenue in certain cases

Section – 282 : Service of notice generally

Section – 282A : Authentication of notices and other documents

Section – 282B : Allotment of Document Identification Number

Section – 283 : Service of notice when family is disrupted or firm, etc., is dissolved

Section – 284 : Service of notice in the case of discontinued business

Section – 285 : Submission of statement by a non-resident having liaison office

Section – 285A : Furnishing of information or documents by an Indian concern in certain cases

Section – 285B : Submission of statements by producers of cinematograph films

Section – 285BA : Obligation to furnish statement of financial transaction or reportable account

Section – 286 : Furnishing of report in respect of international group

Section – 287 : Publication of information respecting assessees in certain cases

Section – 287A : Appearance by registered valuer in certain matters

Section – 288 : Appearance by authorised representative

Section – 288A : Rounding off of income

Section – 288B : Rounding off amount payable and refund due

Section – 289 : Receipt to be given

Section – 290 : Indemnity

Section – 291 : Power to tender immunity from prosecution

Section – 292 : Cognizance of offences

Section – 292A : Section 360 of the Code of Criminal Procedure, 1973, and the Probation of Offenders Act, 1958, not to apply

Section – 292B : Return of income, etc., not to be invalid on certain grounds

Section – 292BB : Notice deemed to be valid in certain circumstances

Section – 292C : Presumption as to assets, books of account, etc

Section – 292CC : Authorisation and assessment in case of search or requisition

Section – 293 : Bar of suits in civil courts

Section – 293A : Power to make exemption, etc., in relation to participation in the business of prospecting for, extraction, etc., of mineral oils

Section – 293B : Power of Central Government or Board to condone delays in obtaining approval

Section – 293C : Power to withdraw approval

Section – 294 : Act to have effect pending legislative provision for charge of tax

Section – 294A : Power to make exemption, etc., in relation to certain Union territories

Section – 295 : Power to make rules

Section – 296 : Rules and certain notifications to be placed before Parliament

Section – 297 : Repeals and savings

Section – 298 : Power to remove difficulties

First Schedule
INSURANCE BUSINESS

Second Schedule
PROCEDURE FOR RECOVERY OF TAX

Third Schedule
PROCEDURE FOR DISTRAINT BY 32[ASSESSING OFFICER] 33[OR TAX RECOVERY OFFICER

Fourth Schedule
RECOGNISED PROVIDENT FUNDS

Fifth Schedule
LIST OF ARTICLES AND THINGS

Sixth Schedule
Sixth Schedule

Seventh Schedule
MINERALS

Eighth Schedule
LIST OF INDUSTRIALLY BACKWARD STATES AND UNION TERRITORIES

Ninth Schedule
Omitted by the Taxation Laws (Amendment & Miscellaneous Provisions) Act, 1986, w.e.f. 1-4-1988

Tenth Schedule
Omitted by the Finance Act, 1999, w.e.f. 1-4-2000

Eleventh Schedule
LIST OF ARTICLES OR THINGS

Twelfth Schedule
PROCESSED MINERALS AND ORES

Thirteenth Schedule
LIST OF ARTICLES OR THINGS

Fourteenth Schedule
LIST OF ARTICLES OR THINGS OR OPERATIONS

APPENDIX
TEXT OF REMAINING PROVISIONS OF ALLIED ACTS REFERRED TO INCOME-TAX ACT

Speculative transaction – Meaning of

Is a contract for purchase or sale of any commodity settled when no actual delivery or transfer of the commodity is effected, and instead compensation is awarded under an arbitration award as damages for breach of the contract?

(1983) AIR(SC) 952 : (1983) 2 CompLJ 305 : (1983) 35 CurTR 395 : (1983) 144 ITR 57 : (1983) KLT(SN) 57 : (1983) 2 SCALE 37 : (1983) 3 SCC 561 : (1983) SCC(Tax) 237 : (1983) 3 SCR 470 : (1983) TaxLR 1190

SUPREME COURT OF INDIA

FULL BENCH

( Before : R. S. Pathak, J; E. S. Venkataramiah, J; A. N. Sen, J )

COMMISSIONER OF INCOME TAX, BOMBAY CITY-III Vs. SHANTILAL P. LTD.

Tax. Reference Case No. 4 of 1978

Decided on : 21-07-1983

Income Tax Act, 1961 – Section 43(5)

Cases Referred

COMMISSIONER OF Income Tax, WEST BENGAL Vs. PIONEER TRADING COMPANY PRIVATE LTD., (1968) 70 ITR 347
P.L.KN. Meenakshi Achi Vs. Commissioner of Income Tax, Madras., (1974) 96 ITR 375
A. Muthukumara Pillai Vs. Commissioner of Income Tax, (1974) 96 ITR 557
R. Chinnaswami Chettiar Vs. Commissioner of Income Tax, (1974) 96 ITR 353
Davenport and Co. Pvt. Ltd. Vs. Commissioner of Income Tax, West Bengal-II, AIR 1975 SC 1996 : (1975) 100 ITR 715 : (1975) 2 SCC 399 : (1976) 1 SCR 180 : (1975) 7 UJ 621
Daulatram Rawatmull Vs. Commissioner of Income Tax (Central), (1970) 78 ITR 503
Bhandari Rajmal Kushalraj Vs. Commissioner of Income Tax, Mysore, (1974) 96 ITR 401 : (1973) 2 MysLJ 276

Counsel for Appearing Parties

D.V. Patel, T.A. Ramachandran and Subhashini, for the Appellant;

JUDGMENT

1. In this tax reference made u/s 257 of the Income Tax Act, 1961, we are called upon to express our opinion on the following question of law:

Whether, on the facts and in the circumstances of the case, the Tribunal was right in confirming the order of the Appellate Assistant Commissioner that the loss suffered by the assessee was not a loss incurred in a speculative transaction within the meaning of Section 43(5) of the Income Tax Act, 1961?

2. The assessee, M/s. Shantilal Pvt. Ltd., Bombay, is a private limited company. In the assessment proceedings for the assessment year 1971-72 it claimed a sum of Rs. 1, 50,000/- paid by it as damages to M/s. Medical Service center as a business loss. During the previous year relevant to the said assessment year the assessee had contracted to sell 200 Kilograms of Folic acid USP at the rate of Rs. 440/- per Kilogram to M/s. Medical Service center and the delivery was to be effected on or before November 1, 1969, within about three months of the date of entering into the contract. The case of the assessee is that as the price of the commodity rose very sharply to as high as Rs. 2,000 per Kilogram during the period when the delivery was to be effected, the assessee was unable to fulfill the contract, giving rise to a dispute in regard to the payment of compensation between the parties. The dispute was referred to arbitration and by an award dated August 25, 1970 the arbitrator directed the assessee to pay Rs. 1,50,000/-as compensation to M/s. Medical Service center. A consent decree in terms of the award was made by the High Court.

3. In the assessment proceedings, the income tax Officer rejected the claim of the assessee that the payment of compensation was a business loss. He found that the transaction was a speculative transaction as defined by Sub-section (5) of Section 43, Income Tax Act, 1961. The Appellate Assistant Commissioner allowed the assessee’s appeal on the view that the payment made by it represented a settlement of damages on breach of the contract, which was distinct from a settlement of the contract. Accordingly, he found that the loss must be regarded as a business loss and not as a speculation loss. The Income Tax Officer’s appeal was dismissed by the income tax Appellate Tribunal by its order dated February 18, 1976. The Commissioner of Income Tax applied in reference for a decision on the question of law set out earlier, and in view of an apparent conflict between different High Courts on the point the Tribunal has made this reference.

4. There is no doubt that the arbitration award granting compensation to M/s. Medical Service center proceeds on the footing that there was a breach of contract. The Tribunal took the view that the award of damages for breach of a contract did not bring the transaction within the definition of “speculative transaction” set forth in Sub-section (5) of Section 43, Income Tax Act, 1961. In this, the Tribunal found support in the view expressed by the Calcutta High Court in COMMISSIONER OF Income Tax, WEST BENGAL Vs. PIONEER TRADING COMPANY PRIVATE LTD., ., Daulatram Rawatmull Vs. Commissioner of Income Tax (Central), and by the Mysore High Court in Bhandari Rajmal Kushalraj Vs. Commissioner of Income Tax, Mysore, , which they preferred to the view expressed by the Madras High Court in R. Chinnaswami Chettiar Vs. Commissioner of Income Tax, P. L. KN, P.L.KN. Meenakshi Achi Vs. Commissioner of Income Tax, Madras., and A. Muthukumara Pillai Vs. Commissioner of Income Tax,. On careful consideration of the matter we are of opinion that the Tribunal is right. Sub-section (5) of Section 43 defines “speculative transaction” to mean:

a transaction in which a contract for the purchase or sale of any commodity, including stocks and shares, is periodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips.

Is a contract for purchase or sale of any commodity settled when no actual delivery or transfer of the commodity is effected, and instead compensation is awarded under an arbitration award as damages for breach of the contract? A contract can be said to be settled if instead of effecting the delivery or transfer of the commodity envisaged by the contract the promisee, in terms of Section 63 of the Contract Act, accepts instead of it any satisfaction which he thinks fit. It is quite another matter where instead of such acceptance the parties raise a dispute and no agreement can be reached for a discharge of the contract. There is a breach of the contract and by virtue of Section 73 of the Contract Act the party suffering by such breach becomes entitled to receive from the party who broke the contract compensation for any loss or damage caused to him thereby. There is no reason why the sense conveyed by the law relating to contracts should not be imported into the definition of “speculative transaction.” The award of damages for breach of a contract is not the same thing as a party to the contract accepting satisfaction of the contract otherwise than in accordance with the original terms thereof. It may be that in a general sense (he layman would understand that the contract must be regarded as settled when damages are paid by way of compensation for its breach. What is really settled by the award of such damages and their acceptance by the aggrieved party is the dispute between the parties. The law, however, speaks of a settlement of the contract, and a contract is settled when it is either performed or the promisee dispenses with or remits, wholly or in part, the performance of the promise made to him or accepts instead of it any satisfaction which he thinks fit. We are concerned with the sense of the law, and it is that sense which must prevail in Sub-section (5) of Section 43. Accordingly, we hold that a transaction cannot be described as a “speculative transaction” within the meaning of Sub-section (5) of Section 43, Income Tax Act, 1961 where there is a breach of the contract and on a dispute between the parties damages are awarded as compensation by an arbitration award. We are unable to endorse the view to the contrary taken by the Madras High Court in R. Chinnaswami Chettiar (supra) and approve of the view taken by the Calcutta High Court in Pioneer Trading Company Private Ltd. (supra) and by the Mysore High Court in Bhandari Rajmal Kushalraj (supra). The decisions of the Madras High Court in P. L. KN. Meenakshi Achi (supra) and A. Muthukumara Pillai (supra) are not apposite and are not concerned with the point before us. Our attention was invited by learned Counsel for the Revenue to the decision of this Court in Davenport and Co. Pvt. Ltd. Vs. Commissioner of Income Tax, West Bengal-II, but this point did not arise there either.

5. Accordingly, we answer the question referred in the affirmative, in favour of the assessee and against the Revenue. There is no order as to costs.

Revocable transfer

Section 63 in The Income- Tax Act, 1995

  1. ” Transfer” and” revocable transfer” defined For the purposes of sections 60, 61 and 62 and of this section,-

(a) a transfer shall be deemed to be revocable if-

(i) it contains any provision for the retransfer directly or indirectly of the whole or any part of the income or assets to the transferor, or
(ii) it, in any way, gives the transferor a right to reassume power directly or indirectly over the whole or any part of the income or assets;

(b) ” transfer” includes any settlement, trust, covenant, agreement or arrangement.

  1. All income arising to any person by virtue of a revocable transfer of assets shall be chargeable to income-tax as the income of the transferor and shall be included in his total income.

A trust can be revoked under this law

Assess and Assessment

In the The Bombay Life Assurance Society Ltd. Vs. The Council, Corporation of Madras, , a Division Bench of this Court, had occasion to consider the words “assess” and “assessment” under the Madras City Municipal Act IV of 1919. The following passage in the judgment is worth reproduction, as it is instructivc:–

  1. In my opinion, it will be most unsafe to draw any inference from the mere use of the words ‘assess’ or ‘assessment’. These words do not have one and an only meaning and connotation. In taxation statutes, the word ‘to asses’ is sometimes used as meaning ‘to fix the amount of tax’; sometimes in the sense ‘to impose the tax’ and sometimes to mean ‘to value or calculate for taxation.’ The word ‘assessment’ in the Indian Income Tax Act does not have the same meaning throughout the Act. Lord Romer in (1938) 6 ITR 414 (Privy Council) observed:

One of the peculiarities of most Income Tax Acts is that the word “assessment” is used as meaning sometimes the computation of income, sometimes the determination of the amount of tax payable and sometimes the whole procedure laid down in the Act for imposing liability upon the taxpayer.

In ‘income tax Comrs. v. Gibbs’, 1942 AC 402, Viscount Simon L.C. said:

The word “assessment” is used in our Income Tax Code in more than one sense. Sometimes, by “assessment” is meant the fixing of the sum taken to represent the actual profit for the purpose of charging tax upon it. In another context the “assessment” may mean the actual sum in tax which the tax payer is liable to pay on his profits. These two things are of course not the same It is remarkable that these two separate meanings of the word “assessment” may occasionally be found within the bounds of a single section.

Lord Macmillan in the same case makes the following caustic comment,

verbal consistency is the last virtue than can be attributed to a Code which uses so vital a term as “assessment” in not less than eight differing senses.

If this be so where qualified persons draft the enactment in their own language, it is idle to expect draftsmen using a foreign language to be consistent in the use of the word ‘assessment’. We respectfully follow the dictum of Lord Wrenbury that,

No reliance can be placed upon an assumption of accuracy in the use of language in these Acts (Kensignton Income Tax Comr. v. Aramayo, (1916) 1 AC 215 : 84 LJKB 2169.

That the words ‘assessed’ and ‘assessment’ have been used in the City Municipal Act indiscriminately to import different processes in taxation can be demonstrated by a few references.

Rigby L.J. in dealing with the word ‘assessed’ with reference to water rate remarked:

The word “assessed” means “reckoned on the value.” It is not accurate to say “assessed on the premises”; but it is not very far from accurate to say that a water rate is a rate assessed upon the lessees in respect of the house (Re: Fleyd v. Lyons & Co. (1897) 1 Ch. 633 : 66 L J Ch 350.

In Kalawati Devi Harlalka Vs. Commissioner of Income Tax, West Bengal and Others, , it was observed by the Supreme Court that the word “assessment” could bear a very comprehensive meaning and it could comprehend the whole procedure for ascertaining and imposing liability upon the tax payer. The Court was proceeding to consider some of the provisions of the Income tax Act, 1961. A similar view was expressed by another Bench of the same court in S. Sankappa and Others Vs. The Income Tax Officer, Central Circle II, Bangalore, . It was pointed out that in some sections, the word “assessment” was used only with reference to computation of income, and in other sections it had the more comprehensive meaning.

In a case under Travancore Cochin General Sales Tax Rules, the Supreme Court observed that “assessment” is a comprehensive word and could denote the entirety of proceedings which are taken with regard to it and did not mean a final order of assessment alone unless there was something in the context of a particular provision which compelled such a meaning being attributed to it. (Vide The Sales Tax Officer, Ernakulam v. Sudarsanam Iyengar and Sons AIR 1970 SC 911.

Income- tax Act 1922 [ Indian]

The Act now repealed

Section 5 of the Act, on the true construction of which depends the decision of the appeal is in these terms:

“This Act shall apply to every business of which any part of the profits made during the chargeable accounting period is chargeable to income-tax by virtue of its provisions of sub-cl. (i) or sub-cl. (ii) of Sub-cl (b)of sub- cl. (1) of S. 4, Income- tax Act 1922, or of cl. (c) of that sub-section.”

In other words, the Act brings within its ambit all income in the case of a person resident in British India which accrues or arises or which is deemed to accrue or arise to him in British India during the accounting year, as also all income which accrues or arises to him without British India during each year ; and if such person is not resident in British India during that year, then all income which accrues or arises or is deemed to accrue or arise in British India during such year. If S. 5 of the Act stopped short at that stage, it is undoubted that in the case of the respondent who is a resident in British India all his income, no matter where it arose, within British India or without British India, would be chargeable to excess profits tax just in the same way as it is chargeable to income tax under the Indian Income-tax Act. The whole of his income arising in Raichur has legitimately been taxed under that Act.

 Section 5, however, has three provisos which limit its scope and take certain incomes outside its ambit. The first proviso is to the following effect:

“Provided that this Act shall not apply to any business the whole of the profits of which accrue or arise without British India where such business is carried on by or on behalf of a person who is resident but not ordinarily resident in British India unless the business is controlled in British India.”

This exception has no bearing to the facts of the present case. The second proviso is in these terms:

“Provided further that where the profits of a part only of a business carried on by a person who is not resident in British India or not ordinarily so resident accrue or arise in British India or are deemed under the Indian Income-tax Act, 1922, so to accrue or arise, then, except where the business being the business of a person who is resident but not ordinarily resident in British India is controlled in India, this Act shall apply only to such part of the business, and such part shall for all the purposes of this Act be deemed to be a separate business.”

30. This proviso also concerns a person not resident in British India and does not touch the present case. It, however, furnishes a clue to the meaning of the following proviso inasmuch as it attracts the application of S.42, Income-tax Act, to the case of a non-resident and contemplates the apportionment of income between part of a business controlled in British India and a part not so controlled. Sub-section (3) of S.42, Income-tax Act, enacts this:

“ In the case at a business of which all the operations are not carried out in British India, the profits and gains at the business deemed under this section to accrue or arise in British India shall be only such profits and gains as are reasonably attributable to that part of the operations carried out in British India.”

 Under the second proviso by reason of the application of S. 42 (3), Income-tax Act, if the manufacturing business of the assessee was in British India and all his sales took place in Raichur, then excess profits tax could only be chargeable on such profits as world really be attributable to his manufacturing operations in British India and the manufacturing operations would be treated as part of the business of the assessee under the proviso. It is proviso 3 to which the controversy in the cases to limited and this proviso is in these terms

“ provided further that this Act shall not apply to any business the whole at the profits of which accrue or arise in an Indian State, and where the profits of part of business accrue or arise in an Indian State, such part shall, for the purposes of this provision, be deemed to be a separate business the whole of the profits at which accure or arise in an Indian State, and the other part of the business shall, for all the purposes of this Act, be deemed to be a separate business,”

The Finance Act, 2017 [India]

No. 7 of 2017

[Dated 31st March, 2017]

Ministry of Law and Justice

(Legislative Department)

An Act to give effect to the financial proposals of the Central Government for the financial year 2017-2018.
Be it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:-

CHAPTER I

Preliminary

1. Short title and commencement. – (1) This Act may be called the Finance Act, 2017.
(2) Save as otherwise provided in this Act, sections 2 to 88 shall come into force on the 1st day of April, 2017.

CHAPTER II

Rates of Income-Tax

2. Income-tax. – (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2017, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax shall be increased by a surcharge, for the purposes of the Union, calculated in each case in the manner provided therein.
(2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds two lakh fifty thousand rupees, then,-
(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and

(b) the income-tax chargeable shall be calculated as follows:-

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased by a sum of two lakh fifty thousand rupees, and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income as so increased were the total income;

(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income:

Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words “two lakh fifty thousand rupees”, the words “three lakh rupees” had been substituted:
Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words “two lakh fifty thousand rupees”, the words “five lakh rupees” had been substituted.
(3) In cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be:
Provided that the amount of income-tax computed in accordance with the provisions of section 111A or section 112 of the Income-tax Act shall be increased by a surcharge, for the purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule:
Provided further that in respect of any income chargeable to tax under section 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA, 115BBF,115E, 115JB or 115JC of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for the purposes of the Union, calculated,-
(a) in the case of every individual or Hindu undivided family or 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, at the rate of fifteen per cent. of such income-tax, where the total income exceeds one crore rupees;

(b) in the case of every co-operative society or firm or local authority, at the rate of twelve per cent. of such income-tax, where the total income exceeds one crore rupees;

(c) in the case of every domestic company,-

(i) at the rate of seven per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of twelve per cent. of such income-tax, where the total income exceeds ten crore rupees;

(d) in the case of every company, other than a domestic company,-

(i) at the rate of two per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such income-tax, where the total income exceeds ten crore rupees:

Provided also that in the case of persons mentioned in (a) and (b) above, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds one crore rupees, the total amount payable as incometax on such income and surcharge thereon shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:
Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:
Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees:
Provided also that in respect of any income chargeable to tax under clause (i) of sub-section (1) of section 115BBE of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for the purposes of the Union, calculated at the rate of twenty-five per cent. of such income-tax.
(4) In cases in which tax has to be charged and paid under section 115-O or section 115QA or sub-section (2) of section 115R or section 115TA or section 115TD of the Incometax Act, the tax shall be charged and paid at the rates as specified in those sections and shall be increased by a surcharge, for the purposes of the Union, calculated at the rate of twelve per cent. of such tax.
(5) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D, 194LBA, 194LBB, 194LBC and 195 of the Income-tax Act, at the rates in force, the deductions shall be made at the rates specified in Part II of the First Schedule and shall be increased by a surcharge, for the purposes of the Union, calculated in cases wherever prescribed, in the manner provided therein.
(6) In cases in which tax has to be deducted under sections 192A, 194C, 194DA, 194E, 194EE, 194F, 194G, 194H, 194-I, 194-IA, 194-IB, 194-IC, 194J, 194LA, 194LB, 194LBA, 194LBB, 194LBC, 194LC, 194LD, 196B, 196C and 196D of the Income-tax Act, the deductions shall be made at the rates specified in those sections and shall be increased by a surcharge, for the purposes of the Union,-
(a) in the case of every individual or Hindu undivided family or 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, being a non-resident, calculated,-

(i) at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds fifty lakh rupees but does not exceed one crore rupees;

(ii) at the rate of fifteen per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees;

(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees;

(c) in the case of every company, other than a domestic company, calculated,-

(i) at the rate of two per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees.

(7) In cases in which tax has to be collected under the proviso to section 194B of the Income-tax Act, the collection shall be made at the rates specified in Part II of the First Schedule, and shall be increased by a surcharge, for the purposes of the Union, calculated, in cases wherever prescribed, in the manner provided therein.
(8) In cases in which tax has to be collected under section 206C of the Income-tax Act, the collection shall be made at the rates specified in that section and shall be increased by a surcharge, for the purposes of the Union,-
(a) in the case of every individual or Hindu undivided family or 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, being a non-resident, calculated,-

(i) at the rate of ten per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds fifty lakh rupees but does not exceed one crore rupees;

(ii) at the rate of fifteen per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees;

(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees;

(c) in the case of every company, other than a domestic company, calculated,-

(i) at the rate of two per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crore rupees.

(9) Subject to the provisions of sub-section (10), in cases in which income-tax has to be charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the Income-tax Act or deducted from, or paid on, income chargeable under the head “Salaries” under section 192 of the said Act or in which the “advance tax” payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, “advance tax” shall be charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and such tax shall be increased by a surcharge, for the purposes of the Union, calculated in such cases and in such manner as provided therein:
Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act apply, “advance tax” shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be:
Provided further that the amount of “advance tax” computed in accordance with the provisions of section 111A or section 112 of the Income-tax Act shall be increased by a surcharge, for the purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part III of the First Schedule:
Provided also that in respect of any income chargeable to tax under section 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA, 115BBF, 115BBG, 115E, 115JB or 115JC of the Income-tax Act, “advance tax” computed under the first proviso shall be increased by a surcharge, for the purposes of the Union, calculated,-
(a) in the case of every individual or Hindu undivided family or 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,-

(i) at the rate of ten per cent. of such “advance tax”, where the total income exceeds fifty lakh rupees but does not exceed one crore rupees;

(ii) at the rate of fifteen per cent. of such “advance tax”, where the total income exceeds one crore rupees;

(b) in the case of every co-operative society or firm or local authority at the rate of twelve per cent. of such “advance tax”, where the total income exceeds one crore rupees;

(c) in the case of every domestic company,-

(i) at the rate of seven per cent. of such “advance tax”, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of twelve per cent. of such “advance tax”, where the total income exceeds ten crore rupees;

(d) in the case of every company, other than a domestic company,-

(i) at the rate of two per cent. of such “advance tax”, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such “advance tax”, where the total income exceeds ten crore rupees:

Provided also that in the case of persons mentioned in (a) above, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds,-
(a) fifty lakh rupees but does not exceed one crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon shall not exceed the total amount payable as “advance tax” on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon shall not exceed the total amount payable as “advance tax” on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided also that in the case of persons mentioned in (b) above, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds one crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon shall not exceed the total amount payable as “advance tax” on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:
Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon, shall not exceed the total amount payable as “advance tax” on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:
Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon, shall not exceed the total amount payable as “advance tax” and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees:
Provided also that in respect of any income chargeable to tax under clause (i) of sub-section (1) of section 115BBE of the Income-tax Act, the “advance tax” computed under the first proviso shall be increased by a surcharge, for the purposes of the Union, calculated at the rate of twenty-five per cent. of such “advance tax”.
(10) In cases to which Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income exceeding five thousand rupees, in addition to total income and the total income exceeds two lakh fifty thousand rupees, then, in charging income-tax under sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the said Act or in computing the “advance tax” payable under Chapter XVII-C of the said Act, at the rate or rates in force,-
(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose of charging or computing such income-tax or, as the case may be, “advance tax” in respect of the total income; and

(b) such income-tax or, as the case may be, “advance tax” shall be so charged or computed as follows:-

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or “advance tax” shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased by a sum of two lakh fifty thousand rupees, and the amount of income-tax or “advance tax” shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income were the total income;

(iii) the amount of income-tax or “advance tax” determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, “advance tax” determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, “advance tax” in respect of the total income:

Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words “two lakh fifty thousand rupees”, the words “three lakh rupees” had been substituted:
Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words “two lakh fifty thousand rupees”, the words “five lakh rupees” had been substituted:
Provided also that the amount of income-tax or “advance tax” so arrived at, shall be increased by a surcharge for the purposes of the Union, calculated in each case, in the manner provided therein.
(11) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the applicable surcharge, for the purposes of the Union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for the purposes of the Union, to be called the “Education Cess on income-tax”, calculated at the rate of two per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance universalised quality basic education:
Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India.
(12) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the applicable surcharge, for the purposes of the Union, calculated in the manner provided therein, shall also be increased by an additional surcharge, for the purposes of the Union, to be called the “Secondary and Higher Education Cess on income-tax”, calculated at the rate of one per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance secondary and higher education:
Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India.
(13) For the purposes of this section and the First Schedule,-
(a) “domestic company” means an Indian company or any other company which, in respect of its income liable to income-tax under the Income-tax Act, for the assessment year commencing on the 1st day of April, 2017, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income;

(b) “insurance commission” means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance);

(c) “net agricultural income” in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule;

(d) all other words and expressions used in this section and the First Schedule but not defined in this sub-section and defined in the Income-tax Act shall have the meanings, respectively, assigned to them in that Act.

CHAPTER III

Direct Taxes

Income-Tax

3. Amendment of section 2. – In section 2 of the Income-tax Act,-
(I) in clause (24), after sub-clause (xvii), the following sub-clause shall be inserted, namely: –

“(xviia) any sum of money or value of property referred to in clause (x) of sub-section (2) of section 56;”;

(II) in clause (42A), –

(a) in the third proviso [as inserted by section 3 of the Finance Act, 2016], after the words and brackets “a company (not being a share listed in a recognised stock exchange in India)”, the words “or an immovable property, being land or building or both,” shall be inserted with effect from the 1st day of April, 2018;

(b) in Explanation 1, in clause (i),-

(A) after sub-clause (he), the following sub-clause shall be inserted with effect from the 1st day of April, 2018, namely:-

“(hf) in the case of a capital asset, being equity shares in a company, which becomes the property of the assessee in consideration of a transfer referred to in clause (xb) of section 47, there shall be included the period for which the preference shares were held by the assessee;”;

(B) after sub-clause (hf) as so inserted, the following sub-clause shall be inserted, namely:-

“(hg) in the case of a capital asset, being a unit or units, which becomes the property of the assessee in consideration of a transfer referred to in clause (xix) of section 47, there shall be included the period for which the unit or units in the consolidating plan of a mutual fund scheme were held by the assessee;”.

4. Amendment of section 9. – In section 9 of the Income-tax Act, in sub-section (1), in clause (i), in Explanation 5,-
(i) the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2012, namely:-

“Provided that nothing contained in this Explanation shall apply to an asset or capital asset, which is held by a non-resident by way of investment, directly or indirectly, in a Foreign Institutional Investor as referred to in clause (a) of the Explanation to section 115AD for an assessment year commencing on or after the 1st day of April, 2012 but before the 1st day of April, 2015:”;
(ii) after the first proviso as so inserted, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2015, namely: –

“Provided further that nothing contained in this Explanation shall apply to an asset or capital asset, which is held by a non-resident by way of investment, directly or indirectly, in Category-I or Category-II foreign portfolio investor under the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014, made under the Securities and Exchange Board of India Act, 1992.”.
5. Amendment of section 9A. – In section 9A of the Income-tax Act, in sub-section (3), in clause (j), after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2016, namely:-
“Provided further that nothing contained in this clause shall apply to a fund which has been wound up in the previous year;”.
6. Amendment of section 10. – In section 10 of the Income-tax Act,-
(a) in clause (4), in sub-clause (ii), in the proviso, for the word, brackets and letter “clause (q)”, the word, brackets and letter “clause (w)” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2013;

(b) after clause (12A) [as inserted by section 7 of the Finance Act, 2016], the following clause shall be inserted with effect from the 1st day of April, 2018, namely:-

“(12B) any payment from the National Pension System Trust to an employee under the pension scheme referred to in section 80CCD, on partial withdrawal made out of his account in accordance with the terms and conditions, specified under the Pension Fund Regulatory and Development Authority Act, 2013 and the regulations made thereunder, to the extent it does not exceed twenty-five per cent. of the amount of contributions made by him;”;

(c) in clause (23C),-

(I) after sub-clause (iiiaaa), the following sub-clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1998, namely:-

“(iiiaaaa) the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund in respect of any State or Union territory as referred to in sub-clause (iiihf) of clause (a) of sub-section (2) of section 80G; or”;

(II) after the eleventh proviso, the following proviso shall be inserted with effect from the 1st day of April, 2018, namely:-

“Provided also that any amount credited or paid out of income of any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via), to any trust or institution registered under section 12AA, being voluntary contribution made with a specific direction that they shall form part of the corpus of the trust or institution, shall not be treated as application of income to the objects for which such fund or trust or institution or university or educational institution or hospital or other medical institution, as the case may be, is established:”;
(d) after clause (37), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2015, namely:-

`(37A) any income chargeable under the head “Capital gains” in respect of transfer of a specified capital asset arising to an assessee, being an individual or a Hindu undivided family, who was the owner of such specified capital asset as on the 2nd day of June, 2014 and transfers that specified capital asset under the Land Pooling Scheme (herein referred to as “the scheme”) covered under the Andhra Pradesh Capital City Land Pooling Scheme (Formulation and Implementation) Rules, 2015 made under the provisions of the Andhra Pradesh Capital Region Development Authority Act, 2014 and the rules, regulations and Schemes made under the said Act.

Explanation. – For the purposes of this clause, “specified capital asset” means,-
(a) the land or building or both owned by the assessee as on the 2nd day of June, 2014 and which has been transferred under the scheme; or

(b) the land pooling ownership certificate issued under the scheme to the assessee in respect of land or building or both referred to in clause (a); or

(c) the reconstituted plot or land, as the case may be, received by the assessee in lieu of land or building or both referred to in clause (a) in accordance with the scheme, if such plot or land, as the case may be, so received is transferred within two years from the end of the financial year in which the possession of such plot or land was handed over to him;’;

(e) in clause (38), after the second proviso and before the Explanation [as inserted by section 7 of the Finance Act, 2016], the following proviso shall be inserted with effect from the 1st day of April, 2018, namely:-

“Provided also that nothing contained in this clause shall apply to any income arising from the transfer of a long-term capital asset, being an equity share in a company, if the transaction of acquisition, other than the acquisition notified by the Central Government in this behalf, of such equity share is entered into on or after the 1st day of October, 2004 and such transaction is not chargeable to securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004.”;
(f) after clause (48A), the following clause shall be inserted with effect from the 1st day of April, 2018, namely:-

“(48B) any income accruing or arising to a foreign company on account of sale of leftover stock of crude oil, if any, from the facility in India after the expiry of the agreement or the arrangement referred to in clause (48A) subject to such conditions as may be notified by the Central Government in this behalf;”.
7. Amendment of section 10AA. – In section 10AA of the Income-tax Act, after sub-section (1), the following Explanation shall be inserted with effect from the 1st day of April, 2018, namely:-
“Explanation. – For the removal of doubts, it is hereby declared that the amount of deduction under this section shall be allowed from the total income of the assessee computed in accordance with the provisions of this Act, before giving effect to the provisions of this section and the deduction under this section shall not exceed such total income of the assessee.”.
8. Amendment of section 11. – In section 11 of the Income-tax Act, in sub-section (1), the Explanation below clause (d) shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanation shall be inserted with effect from the 1st day of April, 2018, namely:-
“Explanation 2. – Any amount credited or paid, out of income referred to in clause (a) or clause (b) read with Explanation 1, to any other trust or institution registered under section 12AA, being contribution with a specific direction that they shall form part of the corpus of the trust or institution, shall not be treated as application of income for charitable or religious purposes.”.
9. Amendment of section 12A. – In section 12A of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2018,-
(i) after clause (aa), the following clause shall be inserted, namely:-

“(ab) the person in receipt of the income has made an application for registration of the trust or institution, in a case where a trust or an institution has been granted registration under section 12AA or has obtained registration at any time under section 12A [as it stood before its amendment by the Finance (No. 2) Act, 1996], and, subsequently, it has adopted or undertaken modifications of the objects which do not conform to the conditions of registration, in the prescribed form and manner, within a period of thirty days from the date of said adoption or modification, to the Principal Commissioner or Commissioner and such trust or institution is registered under section 12AA;”;

(ii) after clause (b), the following clause shall be inserted, namely:-

“(ba) the person in receipt of the income has furnished the return of income for the previous year in accordance with the provisions of sub-section (4A) of section 139, within the time allowed under that section.”.

10. Amendment of section 12AA. – In section 12AA of the Income-tax Act, with effect from the 1st day of April, 2018,-
(a) in sub-section (1), after the word, brackets and letters “clause (aa)”, the words, brackets and letters “or clause (ab)” shall be inserted;

(b) in sub-section (2), after the word, brackets and letters “clause (aa)”, the words, brackets and letters “or clause (ab)” shall be inserted.

11. Amendment of section 13A. – In section 13A of the Income-tax Act, with effect from the 1st day of April, 2018,-
(I) in the first proviso,-

(i) in clause (b),-

(A) after the words “such voluntary contribution”, the words “other than contribution by way of electoral bond” shall be inserted;

(B) the word “and” occurring at the end shall be omitted;

(ii) in clause (c), the word “; and” shall be inserted at the end;

(iii) after clause (c), the following clause shall be inserted, namely:-

`(d) no donation exceeding two thousand rupees is received by such political party otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account or through electoral bond.

Explanation. – For the purposes of this proviso, “electoral bond” means a bond referred to in the Explanation to sub-section (3) of section 31 of the Reserve Bank of India Act, 1934.’;
(II) after the second proviso, the following proviso shall be inserted, namely:-

“Provided also that such political party furnishes a return of income for the previous year in accordance with the provisions of sub-section (4B) of section 139 on or before the due date under that section.”.
12. Amendment of section 23. – In section 23 of the Income-tax Act, after sub-section (4), the following sub-section shall be inserted with effect from the 1st day of April, 2018, namely:-
“(5) Where the property consisting of any building or land appurtenant thereto is held as stock-in-trade and the property or any part of the property is not let during the whole or any part of the previous year, the annual value of such property or part of the property, for the period up to one year from the end of the financial year in which the certificate of completion of construction of the property is obtained from the competent authority, shall be taken to be nil.”.

13. Amendment of section 35AD. – In section 35AD of the Income-tax Act, in sub-section (8), in clause (f), after the words “shall not include”, the words “any expenditure in respect of which the payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account, exceeds ten thousand rupees or” shall be inserted with effect from the 1st day of April, 2018.
14. Amendment of section 36. – In section 36 of the Income-tax Act, in sub-section (1), in clause (viia), in sub-clause (a), for the words “seven and one-half per cent.”, the words “eight and one-half per cent.” shall be substituted with effect from the 1st day of April, 2018.
15. Amendment of section 40A. – In section 40A of the Income-tax Act,-
(a) in sub-section (2), in clause (a), in the proviso, after the words “Provided that”, the words, figures and letters “for an assessment year commencing on or before the 1st day of April, 2016” shall be inserted;

(b) with effect from the 1st day of April, 2018,-

(A) in sub-section (3), for the words “exceeds twenty thousand rupees”, the words “or use of electronic clearing system through a bank account, exceeds ten thousand rupees,” shall be substituted;

(B) in sub-section (3A),-

(i) after the words “account payee bank draft,”, the words “or use of electronic clearing system through a bank account” shall be inserted;

(ii) for the words “twenty thousand rupees”, the words “ten thousand rupees” shall be substituted;

(iii) in the first proviso, for the words “exceeds twenty thousand rupees”, the words “or use of electronic clearing system through a bank account, exceeds ten thousand rupees,” shall be substituted;

(iv) in the second proviso, for the words “twenty thousand rupees”, the words “ten thousand rupees” shall be substituted;

(C) in sub-section (4),-

(i) after the words “account payee bank draft”, the words “or use of electronic clearing system through a bank account” shall be inserted;

(ii) after the words “such cheque or draft”, the words “or electronic clearing system” shall be inserted.

16. Amendment of section 43. – In section 43 of the Income-tax Act, in clause (1), with effect from the 1st day of April, 2018,-
(a) after the proviso and before Explanation 1, the following proviso shall be inserted, namely:-

“Provided further that where the assessee incurs any expenditure for acquisition of any asset or part thereof in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account, exceeds ten thousand rupees, such expenditure shall be ignored for the purposes of determination of actual cost.”;
(b) in Explanation 13, the following proviso shall be inserted, namely:-

“Provided that where any capital asset in respect of which deduction or part of deduction allowed under section 35AD is deemed to be the income of the assessee in accordance with the provisions of sub-section (7B) of the said section, the actual cost of the asset to the assessee shall be the actual cost to the assessee, as reduced by an amount equal to the amount of depreciation calculated at the rate in force that would have been allowable had the asset been used for the purpose of business since the date of its acquisition.”.
17. Amendment of section 43B. – In section 43B of the Income-tax Act, with effect from the 1st day of April, 2018,-
(i) in clause (e), after the words “scheduled bank”, the words “or a co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank” shall be inserted;

(ii) in Explanation 4, after clause (c), the following clause shall be inserted, namely:-

`(d) “co-operative bank”, “primary agricultural credit society” and “primary co-operative agricultural and rural development bank” shall have the meanings respectively assigned to them in the Explanation to sub-section (4) of section 80P.’.

18. Amendment of section 43D. – In section 43D of the Income-tax Act, with effect from the 1st day of April, 2018,-
(i) in clause (a), after the words “scheduled bank or”, the words “a co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank or” shall be inserted;

(ii) in the long line, after the words “scheduled bank or”, the words “a co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank or” shall be inserted;

(iii) in the Explanation, after clause (f), the following clause shall be inserted, namely:-

`(g) “co-operative bank”, “primary agricultural credit society” and “primary co-operative agricultural and rural development bank” shall have the meanings respectively assigned to them in the Explanation to sub-section (4) of section 80P.’.

19. Amendment of section 44AA. – In section 44AA of the Income-tax Act, in sub-section (2), the following provisos shall be inserted with effect from the 1st day of April, 2018, namely:-
`Provided that in the case of a person being an individual or a Hindu undivided family, the provisions of clause (i) and clause (ii) shall have effect, as if for the words “one lakh twenty thousand rupees”, the words “two lakh fifty thousand rupees” had been substituted:
Provided further that in the case of a person being an individual or a Hindu undivided family, the provisions of clause (i) and clause (ii) shall have effect, as if for the words “ten lakh rupees”, the words “twenty-five lakh rupees” had been substituted.’.
20. Amendment of section 44AB. – In section 44AB of the Income-tax Act,-
(i) before the first proviso, the following proviso shall be inserted, namely:-

“Provided that this section shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of sub-section (1) of section 44AD and his total sales, turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year:”;
(ii) in the first proviso, for the words “Provided that”, the words “Provided further that” shall be substituted;

(iii) in the second proviso, for the words “Provided further”, the words “Provided also” shall be substituted.

21. Amendment of section 44AD. – In section 44AD of the Income-tax Act, in sub-section (1), the following proviso shall be inserted, namely:-
`Provided that this sub-section shall have effect as if for the words “eight per cent.”, the words “six per cent.” had been substituted, in respect of the amount of total turnover or gross receipts which is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account during the previous year or before the due date specified in sub-section (1) of section 139 in respect of that previous year.’.
22. Amendment of section 45. – In section 45 of the Income-tax Act, after sub-section (5) and the Explanation thereto, the following sub-section shall be inserted with effect from the 1st day of April, 2018, namely:-
`(5A) Notwithstanding anything contained in sub-section (1), where the capital gain arises to an assessee, being an individual or a Hindu undivided family, from the transfer of a capital asset, being land or building or both, under a specified agreement, the capital gains shall be chargeable to income-tax as income of the previous year in which the certificate of completion for the whole or part of the project is issued by the competent authority; and for the purposes of section 48, the stamp duty value, on the date of issue of the said certificate, of his share, being land or building or both in the project, as increased by the consideration received in cash, if any, shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of the capital asset:

Provided that the provisions of this sub-section shall not apply where the assessee transfers his share in the project on or before the date of issue of the said certificate of completion, and the capital gains shall be deemed to be the income of the previous year in which such transfer takes place and the provisions of this Act, other than the provisions of this sub-section, shall apply for the purpose of determination of full value of consideration received or accruing as a result of such transfer.
Explanation. – For the purposes of this sub-section, the expression-
(i) “competent authority” means the authority empowered to approve the building plan by or under any law for the time being in force;

(ii) “specified agreement” means a registered agreement in which a person owning land or building or both, agrees to allow another person to develop a real estate project on such land or building or both, in consideration of a share, being land or building or both in such project, whether with or without payment of part of the consideration in cash;

(iii) “stamp duty value” means the value adopted or assessed or assessable by any authority of the Government for the purpose of payment of stamp duty in respect of an immovable property being land or building or both.’.

23. Amendment of section 47. – In section 47 of the Income-tax Act, with effect from the 1st day of April, 2018,-
(a) after clause (viia), the following clause shall be inserted, namely:-

“(viiaa) any transfer, made outside India, of a capital asset being rupee denominated bond of an Indian company issued outside India, by a non-resident to another non-resident;”;

(b) after clause (xa), the following clause shall be inserted, namely:-

“(xb) any transfer by way of conversion of preference shares of a company into equity shares of that company;”.

24. Amendment of section 48. – In section 48 of the Income-tax Act, with effect from the 1st day of April, 2018,-
(a) in the fifth proviso, for the word “subscribed”, the word “held” shall be substituted;

(b) in the Explanation, in clause (iii), for the figures, letters and words “1st day of April, 1981”, the figures, letters and words “1st day of April, 2001” shall be substituted.

25. Amendment of section 49. – In section 49 of the Income-tax Act,-
(a) in sub-section (1), in clause (iii), in sub-clause (e), after the word, brackets, figures and letter “clause (vib)”, the words, brackets, figures and letter “or clause (vic)” shall be inserted with effect from the 1st day of April, 2018;

(b) after sub-section (2AD), the following sub-section shall be inserted with effect from the 1st day of April, 2018, namely:-

“(2AE) Where the capital asset, being equity share of a company, became the property of the assessee in consideration of a transfer referred to in clause (xb) of section 47, the cost of acquisition of the asset shall be deemed to be that part of the cost of the preference share in relation to which such asset is acquired by the assessee.”;

(c) after sub-section (2AE) as so inserted, the following sub-section shall be inserted, namely:-

“(2AF) Where the capital asset, being a unit or units in a consolidated plan of a mutual fund scheme, became the property of the assessee in consideration of a transfer referred to in clause (xix) of section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the unit or units in the consolidating plan of the scheme of the mutual fund.”;

(d) in sub-section (4), after the words, brackets, figures and letter “or clause (viia)” at both the places where they occur, the words, brackets and figure “or clause (x)” shall be inserted;

(e) after sub-section (5) [as inserted by section 30 of the Finance Act, 2016], the following sub-sections shall be inserted with effect from the 1st day of April, 2018, namely:-

`(6) Where the capital gain arises from the transfer of a specified capital asset referred to in clause (c) of the Explanation to clause (37A) of section 10, which has been transferred after the expiry of two years from the end of the financial year in which the possession of such asset was handed over to the assessee, the cost of acquisition of such specified capital asset shall be deemed to be its stamp duty value as on the last day of the second financial year after the end of the financial year in which the possession of the said specified capital asset was handed over to the assessee.

Explanation. – For the purposes of this sub-section, “stamp duty value” means the value adopted or assessed or assessable by any authority of the State Government for the purpose of payment of stamp duty in respect of an immovable property.
(7) Where the capital gain arises from the transfer of a capital asset, being share in the project, in the form of land or building or both, referred to in sub-section (5A) of section 45, not being the capital asset referred to in the proviso to the said sub-section, the cost of acquisition of such asset, shall be the amount which is deemed as full value of consideration in that sub-section.’;

(f) after sub-section (7) as so inserted, the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:-

“(8) Where the capital gain arises from the transfer of an asset, being the asset held by a trust or an institution in respect of which accreted income has been computed and the tax has been paid thereon in accordance with the provisions of Chapter XII-EB, the cost of acquisition of such asset shall be deemed to be the fair market value of the asset which has been taken into account for computation of accreted income as on the specified date referred to in sub-section (2) of section 115TD.”.

26. Insertion of new section 50CA. – After section 50C of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2018, namely:-
`50CA. Special provision for full value of consideration for transfer of share other than quoted share. – Where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being share of a company other than a quoted share, is less than the fair market value of such share determined in such manner as may be prescribed, the value so determined shall, for the purposes of section 48, be deemed to be the full value of consideration received or accruing as a result of such transfer.
Explanation. – For the purposes of this section, “quoted share” means the share quoted on any recognised stock exchange with regularity from time to time, where the quotation of such share is based on current transaction made in the ordinary course of business.’.
27. Amendment of section 54EC. – In section 54EC of the Income-tax Act, in sub-section (3), in the Explanation, in clause (ba), for the words and figures “the Companies Act, 1956” occurring at the end, the words and figures “the Companies Act, 1956; or any other bond notified by the Central Government in this behalf” shall be substituted with effect from the 1st day of April, 2018.
28. Amendment of section 55. – In section 55 of the Income-tax Act, with effect from the 1st day of April, 2018,-
(A) in sub-section (1), in clause (b), in sub-clause (2), in item (i), for the figures, letters and words “1st day of April, 1981”, the figures, letters and words “1st day of April, 2001” shall be substituted;

(B) in sub-section (2), in clause (b), for the figures, letters and words “1st day of April, 1981” wherever they occur, the figures, letters and words “1st day of April, 2001” shall be substituted.

29. Amendment of section 56. – In section 56 of the Income-tax Act, in sub-section (2),-
(I) in clause (vii), after the figures, letters and words “1st day of October, 2009”, the words, figures and letters “but before the 1st day of April, 2017” shall be inserted;

(II) in clause (viia), after the figures, letters and words “1st day of June, 2010”, the words, figures and letters “but before the 1st day of April, 2017” shall be inserted;

(III) after clause (ix), the following clause shall be inserted, namely:-

`(x) where any person receives, in any previous year, from any person or persons on or after the 1st day of April, 2017,-

(a) any sum of money, without consideration, the aggregate value of which exceeds fifty thousand rupees, the whole of the aggregate value of such sum;

(b) any immovable property,-

(A) without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property;

(B) for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value of such property as exceeds such consideration:

Provided that where the date of agreement fixing the amount of consideration for the transfer of immovable property and the date of registration are not the same, the stamp duty value on the date of agreement may be taken for the purposes of this sub-clause:
Provided further that the provisions of the first proviso shall apply only in a case where the amount of consideration referred to therein, or a part thereof, has been paid 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 such immovable property:
Provided also that where the stamp duty value of immovable property is disputed by the assessee on grounds mentioned in sub-section (2) of section 50C, the Assessing Officer may refer the valuation of such property to a Valuation Officer, and the provisions of section 50C and sub-section (15) of section 155 shall, as far as may be, apply in relation to the stamp duty value of such property for the purpose of this sub-clause as they apply for valuation of capital asset under those sections;
(c) any property, other than immovable property,-

(A) without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property;

(B) for a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, the aggregate fair market value of such property as exceeds such consideration:

Provided that this clause shall not apply to any sum of money or any property received-
(I) from any relative; or

(II) on the occasion of the marriage of the individual; or

(III) under a will or by way of inheritance; or

(IV) in contemplation of death of the payer or donor, as the case may be; or

(V) from any local authority as defined in the Explanation to clause (20) of section 10; or

(VI) from any fund or foundation or university or other educational institution or hospital or other medical institution or any trust or institution referred to in clause (23C) of section 10; or

(VII) from or by any trust or institution registered under section 12A or section 12AA; or

(VIII) by any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10; or

(IX) by way of transaction not regarded as transfer under clause (i) or clause (vi) or clause (via) or clause (viaa) or clause (vib) or clause (vic) or clause (vica) or clause (vicb) or clause (vid) or clause (vii) of section 47; or

(X) from an individual by a trust created or established solely for the benefit of relative of the individual.

Explanation. – For the purposes of this clause, the expressions “assessable”, “fair market value”, “jewellery”, “property”, “relative” and “stamp duty value” shall have the same meanings as respectively assigned to them in the Explanation to clause (vii).’.
30. Amendment of section 58. – In section 58 of the Income-tax Act, in sub-section (1A), for the word, brackets, figures and letter “sub-clause (iia)”, the words, brackets, figures and letters “sub-clauses (ia) and (iia)” shall be substituted with effect from the 1st day of April, 2018.
31. Amendment of section 71. – In section 71 of the Income-tax Act, after sub-section (3), the following sub-section shall be inserted with effect from the 1st day of April, 2018, namely:-
`(3A) Notwithstanding anything contained in sub-section (1) or sub-section (2), where in respect of any assessment year, the net result of the computation under the head “Income from house property” is a loss and the assessee has income assessable under any other head of income, the assessee shall not be entitled to set off such loss, to the extent the amount of the loss exceeds two lakh rupees, against income under the other head.’.

32. Substitution of new section for section 79. – For section 79 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2018, namely:-
“79. Carry forward and set off of losses in case of certain companies. – Notwithstanding anything contained in this Chapter, where a change in shareholding has taken place in a previous year,-

(a) in the case of a company not being a company in which the public are substantially interested and other than a company referred to in clause (b), no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year, unless on the last day of the previous year, the shares of the company carrying not less than fifty-one per cent. of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than fifty-one per cent. of the voting power on the last day of the year or years in which the loss was incurred;

(b) in the case of a company, not being a company in which the public are substantially interested but being an eligible start-up as referred to in section 80-IAC, the loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year, if, all the shareholders of such company who held shares carrying voting power on the last day of the year or years in which the loss was incurred,-

(i) continue to hold those shares on the last day of such previous year; and

(ii) such loss has been incurred during the period of seven years beginning from the year in which such company is incorporated:

Provided that nothing contained in this section shall apply to a case where a change in the said voting power and shareholding takes place in a previous year consequent upon the death of a shareholder or on account of transfer of shares by way of gift to any relative of the shareholder making such gift:
Provided further that nothing contained in this section shall apply to any change in the shareholding of an Indian company which is a subsidiary of a foreign company as a result of amalgamation or demerger of a foreign company subject to the condition that fifty-one per cent. shareholders of the amalgamating or demerged foreign company continue to be the shareholders of the amalgamated or the resulting foreign company.”.
33. Amendment of section 80CCD. – In section 80CCD of the Income-tax Act, in sub-section (1), in clause (b), for the words “ten per cent.”, the words “twenty per cent.” shall be substituted with effect from the 1st day of April, 2018.
34. Amendment of section 80CCG. – In section 80CCG of the Income-tax Act, after sub-section (4), the following sub-section shall be inserted with effect from the 1st day of April, 2018, namely:-
“(5) Notwithstanding anything contained in sub-sections (1) to (4), no deduction under this section shall be allowed in respect of any assessment year commencing on or after the 1st day of April, 2018:

Provided that an assessee, who has acquired listed equity shares or listed units of an equity oriented fund in accordance with the scheme referred to in sub-section (1) and claimed deduction under this section for any assessment year commencing on or before the 1st day of April, 2017, shall be allowed deduction under this section till the assessment year commencing on the 1st day of April, 2019, if he is otherwise eligible to claim the deduction in accordance with the other provisions of this section.”.
35. Amendment of section 80G. – In section 80G of the Income-tax Act, in sub-section (5D), for the words “ten thousand rupees”, the words “two thousand rupees” shall be substituted with effect from the 1st day of April, 2018.
36. Amendment of section 80-IAC. – In section 80-IAC of the Income-tax Act [as inserted by section 42 of the Finance Act, 2016], in sub-section (2), for the words “five years”, the words “seven years” shall be substituted with effect from the 1st day of April, 2018.
37. Amendment of section 80-IBA. – In section 80-IBA of the Income-tax Act [as inserted by section 44 of the Finance Act, 2016], with effect from the 1st day of April, 2018,-
(a) in sub-section (2),-

(i) in clause (b), for the words “three years”, the words “five years” shall be substituted;

(ii) in clauses (c) and (f), for the expression “built-up area” wherever they occur, the words “carpet area” shall be substituted;

(iii) the words “or within the distance, measured aerially, of twenty-five kilometres from the municipal limits of these cities” wherever they occur shall be omitted;

(b) in sub-section (6), for clause (a), the following clause shall be substituted, namely:-

`(a) “carpet area” shall have the same meaning as assigned to it in clause (k) of section 2 of the Real Estate (Regulation and Development) Act, 2016.’.

38. Amendment of section 87A. – In section 87A of the Income-tax Act, with effect from the 1st day of April, 2018,-
(a) for the words “five hundred thousand rupees”, the words “three hundred fifty thousand rupees” shall be substituted;

(b) for the words “five thousand rupees” [as substituted by section 46 of the Finance Act, 2016], the words “two thousand five hundred rupees” shall be substituted.

39. Amendment of section 90. – In section 90 of the Income-tax Act, after Explanation 3, the following Explanation shall be inserted with effect from the 1st day of April, 2018, namely:-
“Explanation 4. – For the removal of doubts, it is hereby declared that where any term used in an agreement entered into under sub-section (1) is defined under the said agreement, the said term shall have the same meaning as assigned to it in the agreement; and where the term is not defined in the said agreement, but defined in the Act, it shall have the same meaning as assigned to it in the Act and explanation, if any, given to it by the Central Government.”.
40. Amendment of section 90A. – In section 90A of the Income-tax Act, after Explanation 3, the following Explanation shall be inserted with effect from the 1st day of April, 2018, namely:-
“Explanation 4. – For the removal of doubts, it is hereby declared that where any term used in an agreement entered into under sub-section (1) is defined under the said agreement, the said term shall have the same meaning as assigned to it in the agreement; and where the term is not defined in the said agreement, but defined in the Act, it shall have the same meaning as assigned to it in the Act and explanation, if any, given to it by the Central Government.”.
41. Amendment of section 92BA. – In section 92BA of the Income-tax Act, clause (i) shall be omitted.
42. Insertion of new section 92CE. – After section 92CD of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2018, namely:-
`92CE. Secondary adjustment in certain cases. – (1) Where a primary adjustment to transfer price,-

(i) has been made suo motu by the assessee in his return of income;

(ii) made by the Assessing Officer has been accepted by the assessee;

(iii) is determined by an advance pricing agreement entered into by the assessee under section 92CC;

(iv) is made as per the safe harbour rules framed under section 92CB; or

(v) is arising as a result of resolution of an assessment by way of the mutual agreement procedure under an agreement entered into under section 90 or section 90A for avoidance of double taxation, the assessee shall make a secondary adjustment:

Provided that nothing contained in this section shall apply, if,-
(i) the amount of primary adjustment made in any previous year does not exceed one crore rupees; and

(ii) the primary adjustment is made in respect of an assessment year commencing on or before the 1st day of April, 2016.

(2) Where, as a result of primary adjustment to the transfer price, there is an increase in the total income or reduction in the loss, as the case may be, of the assessee, the excess money which is available with its associated enterprise, if not repatriated to India within the time as may be prescribed, shall be deemed to be an advance made by the assessee to such associated enterprise and the interest on such advance, shall be computed in such manner as may be prescribed.
(3) For the purposes of this section,-
(i) “associated enterprise” shall have the meaning assigned to it in sub-section (1) and sub-section (2) of section 92A;

(ii) “arm’s length price” shall have the meaning assigned to it in clause (ii) of section 92F;

(iii) “excess money” means the difference between the arm’s length price determined in primary adjustment and the price at which the international transaction has actually been undertaken;

(iv) “primary adjustment” to a transfer price, means the determination of transfer price in accordance with the arm’s length principle resulting in an increase in the total income or reduction in the loss, as the case may be, of the assessee;

(v) “secondary adjustment” means an adjustment in the books of account of the assessee and its associated enterprise to reflect that the actual allocation of profits between the assessee and its associated enterprise are consistent with the transfer price determined as a result of primary adjustment, thereby removing the imbalance between cash account and actual profit of the assessee.’.

43. Insertion of new section 94B. – After section 94A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2018, namely:-
`94B. Limitation on interest deduction in certain cases. – (1) Notwithstanding anything contained in this Act, where an Indian company, or a permanent establishment of a foreign company in India, being the borrower, incurs any expenditure by way of interest or of similar nature exceeding one crore rupees which is deductible in computing income chargeable under the head
“Profits and gains of business or profession” in respect of any debt issued by a nonresident, being an associated enterprise of such borrower, the interest shall not be deductible in computation of income under the said head to the extent that it arises from excess interest, as specified in sub-section (2):
Provided that where the debt is issued by a lender which is not associated but an associated enterprise either provides an implicit or explicit guarantee to such lender or deposits a corresponding and matching amount of funds with the lender, such debt shall be deemed to have been issued by an associated enterprise.
(2) For the purposes of sub-section (1), the excess interest shall mean an amount of total interest paid or payable in excess of thirty per cent. of earnings before interest, taxes, depreciation and amortisation of the borrower in the previous year or interest paid or payable to associated enterprises for that previous year, whichever is less.
(3) Nothing contained in sub-section (1) shall apply to an Indian company or a permanent establishment of a foreign company which is engaged in the business of banking or insurance.
(4) Where for any assessment year, the interest expenditure is not wholly deducted against income under the head “Profits and gains of business or profession”, so much of the interest expenditure as has not been so deducted, shall be carried forward to the following assessment year or assessment years, and it shall be allowed as a deduction against the profits and gains, if any, of any business or profession carried on by it and assessable for that assessment year to the extent of maximum allowable interest expenditure in accordance with sub-section (2):
Provided that no interest expenditure shall be carried forward under this sub-section for more than eight assessment years immediately succeeding the assessment year for which the excess interest expenditure was first computed.
(5) For the purposes of this section, the expressions-
(i) “associated enterprise” shall have the meaning assigned to it in sub-section (1) and sub-section (2) of section 92A;

(ii) “debt” means any loan, financial instrument, finance lease, financial derivative, or any arrangement that gives rise to interest, discounts or other finance charges that are deductible in the computation of income chargeable under the head “Profits and gains of business or profession”;

(iii) “permanent establishment” includes a fixed place of business through which the business of the enterprise is wholly or partly carried on.’.

44. Amendment of section 115BBDA. – In section 115BBDA of the Income-tax Act [as inserted by section 52 of the Finance Act, 2016], with effect from the 1st day of April, 2018,-
(i) in sub-section (1), for the words “an assessee, being an individual, a Hindu Undivided Family or a firm”, the words “a specified assessee” shall be substituted;

(ii) for sub-section (3), the following Explanation shall be substituted, namely:-

`Explanation. – For the purposes of this section,-
(a) “dividend” shall have the meaning assigned to it in clause (22) of section 2 but shall not include sub-clause (e) thereof;

(b) “specified assessee” means a person other than,-

(i) a domestic company; or

(ii) a fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10; or

(iii) a trust or institution registered under section 12A or section 12AA.’.

45. Insertion of new section 115 BBG. – After section 115BBF of the Income-tax Act [as inserted by section 54 of the Finance Act, 2016], the following section shall be inserted with effect from the 1st day of April, 2018, namely:-
`115 BBG. Tax on income from transfer of carbon credits. – (1) Where the total income of an assessee includes any income by way of transfer of carbon credits, the income-tax payable shall be the aggregate of-
(a) the amount of income-tax calculated on the income by way of transfer of carbon credits, at the rate of ten per cent.; and

(b) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (a).

(2) Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) of sub-section (1).
Explanation. – For the purposes of this section, “carbon credit” in respect of one unit shall mean reduction of one tonne of carbon dioxide emissions or emissions of its equivalent gases which is validated by the United Nations Framework on Climate Change and which can be traded in market at its prevailing market price.’.
46. Amendment of section 115JAA. – In section 115JAA of the Income-tax Act, with effect from the 1st day of April, 2018,-
(a) in sub-section (2A), after the proviso, the following proviso shall be inserted, namely:-

“Provided further that where the amount of tax credit in respect of any income-tax paid in any country or specified territory outside India, under section 90 or section 90A or section 91, allowed against the tax payable under the provisions of sub-section (1) of section 115JB exceeds the amount of such tax credit admissible against the tax payable by the assessee on its income in accordance with the other provisions of this Act, then, while computing the amount of credit under this sub-section, such excess amount shall be ignored.”;
(b) in sub-section (3A), for the words “tenth assessment year”, the words “fifteenth assessment year” shall be substituted.

47. Amendment of section 115JB. – In section 115JB of the Income-tax Act,-
(i) in sub-section (2),-

(a) for the words “profit and loss account” wherever they occur, the words “statement of profit and loss” shall be substituted;

(b) for the words and figures “the Companies Act, 1956” wherever they occur, the words and figures “the Companies Act, 2013” shall be substituted;

(c) in clause (a), for the words and figures “Part II of Schedule VI”, the word and figures “Schedule III” shall be substituted;

(d) in clause (b), for the words, brackets and figures “proviso to sub-section (2) of section 211”, the words, brackets and figures “second proviso to sub-section (1) of section 129” shall be substituted;

(e) in the first proviso, for the word and figures “section 210”, the word and figures “section 129” shall be substituted;

(ii) after sub-section (2), the following sub-sections shall be inserted, namely:-

`(2A) For a company whose financial statements are drawn up in compliance to the Indian Accounting Standards specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015, the book profit as computed in accordance with Explanation 1 to sub-section (2) shall be further-

(a) increased by all amounts credited to other comprehensive income in the statement of profit and loss under the head “Items that will not be re-classified to profit or loss”;

(b) decreased by all amounts debited to other comprehensive income in the statement of profit and loss under the head “Items that will not be re-classified to profit or loss”;

(c) increased by amounts or aggregate of the amounts debited to the statement of profit and loss on distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Indian Accounting Standards 10;

(d) decreased by all amounts or aggregate of the amounts credited to the statement of profit and loss on distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Indian Accounting Standards 10:

Provided that nothing contained in clause (a) or clause (b) shall apply to the amount credited or debited to other comprehensive income under the head “Items that will not be re-classified to profit or loss” in respect of-
(i) revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian Accounting Standards 38; or

(ii) gains or losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with the Indian Accounting Standards 109:

Provided further that the book profit of the previous year in which the asset or investment referred to in the first proviso is retired, disposed, realised or otherwise transferred shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the first proviso for the previous year or any of the preceding previous years and relatable to such asset or investment.
(2B) In the case of a resulting company, where the property and the liabilities of the undertaking or undertakings being received by it are recorded at values different from values appearing in the books of account of the demerged company immediately before the demerger, any change in such value shall be ignored for the purpose of computation of book profit of the resulting company under this section.

(2C) For a company referred to in sub-section (2A), the book profit of the year of convergence and each of the following four previous years, shall be further increased or decreased, as the case may be, by one-fifth of the transition amount:

Provided that the book profit of the previous year in which the asset or investment referred to in sub-clauses (B) to (E) of clause (iii) of the
Explanation is retired, disposed, realised or otherwise transferred, shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-clauses relatable to such asset or investment:
Provided further that the book profit of the previous year in which the foreign operation referred to in sub-clause (F) of clause (iii) of the Explanation is disposed or otherwise transferred, shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-clauses relatable to such foreign operations.
Explanation. – For the purposes of this sub-section, the expression-
(i) “year of convergence” means the previous year within which the convergence date falls;

(ii) “convergence date” means the first day of the first Indian Accounting Standards reporting period as defined in the Indian Accounting Standards 101;

(iii) “transition amount” means the amount or the aggregate of the amounts adjusted in the other equity (excluding capital reserve and securities premium reserve) on the convergence date but not including the following:-

(A) amount or aggregate of the amounts adjusted in the other comprehensive income on the convergence date which shall be subsequently re-classified to the profit or loss;

(B) revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian Accounting Standards 38 adjusted on the convergence date;

(C) gains or losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with the Indian Accounting Standards 109 adjusted on the convergence date;

(D) adjustments relating to items of property, plant and equipment and intangible assets recorded at fair value as deemed cost in accordance with paragraphs D5 and D7 of the Indian Accounting Standards 101 on the convergence date;

(E) adjustments relating to investments in subsidiaries, joint ventures and associates recorded at fair value as deemed cost in accordance with paragraph D15 of the Indian Accounting Standards 101 on the convergence date; and

(F) adjustments relating to cumulative translation differences of a foreign operation in accordance with paragraph D13 of the Indian Accounting Standards 101 on the convergence date.’;

(iii) in Explanation 1,-

(a) for the words “net profit”, the word “profit” shall be substituted;

(b) for the words “profit and loss account” wherever they occur, the words “statement of profit and loss” shall be substituted;

(c) in clause (k), for the words “profit or loss account”, the words “statement of profit and loss” shall be substituted;

(iv) in Explanation 3,-

(a) for the words, brackets and figures “proviso to sub-section (2) of section 211 of the Companies Act, 1956”, the words, brackets and figures “second proviso to sub-section (1) of section 129 of the Companies Act, 2013” shall be substituted;

(b) for the words “profit and loss account”, the words “statement of profit and loss” shall be substituted;

(c) for the words and figures “Part II and Part III of Schedule VI to the Companies Act, 1956”, the words and figures “Schedule III to the Companies Act, 2013” shall be substituted.

48. Amendment of section 115JD. – In section 115JD of the Income-tax Act, with effect from the 1st day of April, 2018,-
(a) in sub-section (2), the following proviso shall be inserted, namely:-

“Provided that where the amount of tax credit in respect of any incometax paid in any country or specified territory outside India under section 90 or section 90A or section 91, allowed against the alternate minimum tax payable, exceeds the amount of the tax credit admissible against the regular incometax payable by the assessee, then, while computing the amount of credit under this sub-section, such excess amount shall be ignored.”;
(b) in sub-section (4), for the words “tenth assessment year”, the words “fifteenth assessment year” shall be substituted.

49. Amendment of section 119. – In section 119 of the Income-tax Act, in sub-section (2), in clause (a), after the figures “271”, the figures and letters “,271C, 271CA” shall be inserted.
50. Amendment of section 132. – In section 132 of the Income-tax Act,-
(i) in sub-section (1), after the fourth proviso, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1962, namely:-

“Explanation. – For the removal of doubts, it is hereby declared that the reason to believe, as recorded by the income-tax authority under this sub-section, shall not be disclosed to any person or any authority or the Appellate Tribunal.”;

(ii) in sub-section (1A), the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, 1975, namely:-

“Explanation. – For the removal of doubts, it is hereby declared that the reason to suspect, as recorded by the income-tax authority under this sub-section, shall not be disclosed to any person or any authority or the Appellate Tribunal.”;

(iii) after sub-section (9A), the following sub-sections shall be inserted, namely:-

“(9B) Where, during the course of the search or seizure or within a period of sixty days from the date on which the last of the authorisations for search was executed, the authorised officer, for reasons to be recorded in writing, is satisfied that for the purpose of protecting the interest of revenue, it is necessary so to do, he may with the previous approval of the Principal Director General or Director General or the Principal Director or Director, by order in writing, attach provisionally any property belonging to the assessee, and for the said purposes, the provisions of the Second Schedule shall, mutatis mutandis, apply.

(9C) Every provisional attachment made under sub-section (9B) shall cease to have effect after the expiry of a period of six months from the date of the order referred to in sub-section (9B).

(9D) The authorised officer may, during the course of the search or seizure or within a period of sixty days from the date on which the last of the authorisations for search was executed, make a reference to a Valuation Officer referred to in section 142A, who shall estimate the fair market value of the property in the manner provided under that section and submit a report of the estimate to the said officer within a period of sixty days from the date of receipt of such reference.”;

(iv) for Explanation 1, the following Explanation shall be substituted, namely:-

`Explanation 1. – For the purposes of sub-sections (9A), (9B) and (9D), with respect to “execution of an authorisation for search”, the provisions of sub-section (2) of section 153B shall apply.’.

51. Amendment of section 132A. – In section 132A of the Income-tax Act, in sub-section (1), the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, 1975, namely:-
“Explanation. – For the removal of doubts, it is hereby declared that the reason to believe, as recorded by the income-tax authority under this sub-section, shall not be disclosed to any person or any authority or the Appellate Tribunal.”.
52. Amendment of section 133. – In section 133 of the Income-tax Act,-
(i) in the first proviso, for the words “and the Principal Commissioner or Commissioner”, the words “or the Principal Commissioner or Commissioner or the Joint Director or Deputy Director or Assistant Director” shall be substituted;

(ii) in the second proviso, after the words “Director or Principal Commissioner or Commissioner”, the words “, other than the Joint Director or Deputy Director or Assistant Director,” shall be inserted.

53. Amendment of section 133A. – In section 133A of the Income-tax Act, in sub-section (1),-
(i) in the long line, for the portion beginning with “at which a business or profession” and ending with “such business or profession-“, the following shall be substituted, namely:-

“at which a business or profession or an activity for charitable purpose is carried on, whether such place be the principal place or not of such business or profession or of such activity for charitable purpose, and require any proprietor, trustee, employee or any other person who may at that time and place be attending in any manner to, or helping in, the carrying on of such business or profession or such activity for charitable purpose-“;

(ii) in the Explanation, after the words “business or profession” wherever they occur, the words “or activity for charitable purpose” shall be inserted.

54. Amendment of section 133C. – In section 133C of the Income-tax Act, after sub-section (2) and before the Explanation, the following sub-section shall be inserted, namely:-
“(3) The Board may make a scheme for centralised issuance of notice and for processing of information or documents and making available the outcome of the processing to the Assessing Officer.”.

55. Amendment of section 139. – In section 139 of the Income-tax Act, with effect from the 1st day of April, 2018,-
(i) in sub-section (4C),-

(I) after clause (c), the following clause shall be inserted, namely:-

“(ca) person referred to in clause (23AAA) of section 10;”;

(II) after clause (eb), the following clauses shall be inserted, namely:-

“(eba) Investor Protection Fund referred to in clause (23EC) or clause (23ED) of section 10;

(ebb) Core Settlement Guarantee Fund referred to in clause (23EE) of section 10;”;

(III) after clause (f), the following clause shall be inserted, namely:-

“(fa) Board or Authority referred to in clause (29A) of section 10;”;

(IV) in the long line occurring after clause (h), after the words “association or institution,”, the words “person or” shall be inserted;

(ii) in sub-section (5) [as substituted by section 67 of the Finance Act, 2016], the words “the expiry of one year from” shall be omitted.

56. Insertion of new section 139AA. – After section 139A of the Income-tax Act, the following section shall be inserted, namely:-
`139AA. Quoting of Aadhaar number. – (1) Every person who is eligible to obtain Aadhaar number shall, on or after the 1st day of July, 2017, quote Aadhaar number-
(i) in the application form for allotment of permanent account number;

(ii) in the return of income:

Provided that where the person does not possess the Aadhaar number, the Enrolment ID of Aadhaar application form issued to him at the time of enrolment shall be quoted in the application for permanent account number or, as the case may be, in the return of income furnished by him.
(2) Every person who has been allotted permanent account number as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to such authority in such form and manner as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette:
Provided that in case of failure to intimate the Aadhaar number, the permanent account number allotted to the person shall be deemed to be invalid and the other provisions of this Act shall apply, as if the person had not applied for allotment of permanent account number.
(3) The provisions of this section shall not apply to such person or class or classes of persons or any State or part of any State, as may be notified by the Central Government in this behalf, in the Official Gazette.
Explanation. – For the purposes of this section, the expressions-
(i) “Aadhaar number”, “Enrolment” and “resident” shall have the same meanings respectively assigned to them in clauses (a), (m) and (v) of section 2 of the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016;

(ii) “Enrolment ID” means a 28 digit Enrolment Identification Number issued to a resident at the time of enrolment.’.

57. Amendment of section 140A. – In section 140A of the Income-tax Act, with effect from the 1st day of April, 2018,-
(i) in sub-section (1),-

(a) in the long line,-

(A) after the words “together with interest”, the words “and fee” shall be inserted;

(B) for the words “and interest”, the words “, interest and fee” shall be substituted;

(b) in the Explanation, for the words “and interest as aforesaid, the amount so paid shall first be adjusted towards”, the words “, interest and fee as aforesaid, the amount so paid shall first be adjusted towards the fee payable and thereafter towards” shall be substituted;

(ii) in sub-section (3), for the words “or interest or both” at both the places where they occur, the words “interest or fee” shall be substituted.

58. Amendment of section 143. – In section 143 of the Income-tax Act,-
(a) in sub-section (1), with effect from the 1st day of April, 2018,-

(i) in clause (b), for the words “and interest”, the words “, interest and fee” shall be substituted;

(ii) in clause (c),-

(A) for the words “and interest”, the words “, interest and fee” shall be substituted;

(B) for the words “or interest”, the words “, interest or fee” shall be substituted;

(iii) in the first proviso, for the words “or interest”, the words “, interest or fee” shall be substituted;

(b) for sub-section (1D) [as substituted by section 68 of the Finance Act, 2016], the following shall be substituted, namely:-

“(1D) Notwithstanding anything contained in sub-section (1), the processing of a return shall not be necessary, where a notice has been issued to the assessee under sub-section (2):

Provided that the provisions of this sub-section shall not apply to any return furnished for the assessment year commencing on or after the 1st day of April, 2017.”.

(c) in sub-section (3), for the portion beginning with the words “On the day specified in the notice” and ending with the words, brackets and letters “issued under clause (ii) of “, the words “On the day specified in the notice issued under” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2016.

59. Amendment of section 153. – In section 153 of the Income-tax Act,-
(i) in sub-section (1), the following provisos shall be inserted, namely:-

`Provided that in respect of an order of assessment relating to the assessment year commencing on the 1st day of April, 2018, the provisions of this sub-section shall have effect, as if for the words “twenty-one months”, the words “eighteen months” had been substituted:
Provided further that in respect of an order of assessment relating to the assessment year commencing on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words “twentyone months”, the words “twelve months” had been substituted.’;
(ii) in sub-section (2), the following proviso shall be inserted, namely:-

`Provided that where the notice under section 148 is served on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words “nine months”, the words “twelve months” had been substituted.’;
(iii) in sub-section (3), the following proviso shall be inserted, namely:-

`Provided that where the order under section 254 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the Principal Commissioner or Commissioner on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words “nine months”, the words “twelve months” had been substituted.’;
(iv) in sub-section (5), after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:-

“Provided further that where an order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264 requires verification of any issue by way of submission of any document by the assessee or any other person or where an opportunity of being heard is to be provided to the assessee, the order giving effect to the said order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264 shall be made within the time specified in sub-section (3).”;
(v) in sub-section (9), the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:-

“Provided that where a notice under sub-section (1) of section 142 or sub-section (2) of section 143 or section 148 has been issued prior to the 1st day of June, 2016 and the assessment or reassessment has not been completed by such date due to exclusion of time referred to in Explanation 1, such assessment or reassessment shall be completed in accordance with the provisions of this section as it stood immediately before its substitution by the Finance Act, 2016.”;
(vi) in Explanation 1, in the third proviso, the figures and letter “153B,” shall be omitted.

60. Amendment of section 153A. – In section 153A of the Income-tax Act, in sub-section (1),-
(i) in clause (a), first proviso and the second proviso, after the words “six assessment years” wherever they occur, the words “and for the relevant assessment year or years” shall be inserted;

(ii) in clause (b), after the words “requisition is made”, the words “and of the relevant assessment year or years” shall be inserted;

(iii) in the third proviso, after the words “requisition is made”, the words “and for the relevant assessment year or years” shall be inserted;

(iv) after the third proviso, the following shall be inserted, namely:-

`Provided also that no notice for assessment or reassessment shall be issued by the Assessing Officer for the relevant assessment year or years unless-
(a) the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more in the relevant assessment year or in aggregate in the relevant assessment years;

(b) the income referred to in clause (a) or part thereof has escaped assessment for such year or years; and

(c) the search under section 132 is initiated or requisition under section 132A is made on or after the 1st day of April, 2017.

Explanation 1. – For the purposes of this sub-section, the expression “relevant assessment year” shall mean an assessment year preceding the assessment year relevant to the previous year in which search is conducted or requisition is made which falls beyond six assessment years but not later than ten assessment years from the end of the assessment year relevant to the previous year in which search is conducted or requisition is made.
Explanation 2. – For the purposes of the fourth proviso, “asset” shall include immovable property being land or building or both, shares and securities, loans and advances, deposits in bank account.’.
61. Amendment of section 153B. – In section 153B of the Income-tax Act,-
(a) in sub-section (1),-

(i) in clause (a), after the words “six assessment years”, the words “and for the relevant assessment year or years” shall be inserted;

(ii) for the second and third provisos, the following provisos shall be substituted, namely:-

`Provided further that in the case where the last of the authorisations for search under section 132 or for requisition under section 132A was executed during the financial year commencing on the 1st day of April, 2018,-
(i) the provisions of clause (a) or clause (b) of this sub-section shall have effect, as if for the words “twenty-one months”, the words “eighteen months” had been substituted;

(ii) the period of limitation for making the assessment or reassessment in case of other person referred to in section 153C, shall be the period of eighteen months from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed or twelve months from the end of the financial year in which books of account or documents or assets seized or requisitioned are handed over under section 153C to the Assessing Officer having jurisdiction over such other person, whichever is later:

Provided also that in the case where the last of the authorisations for search under section 132 or for requisition under section 132A was executed during the financial year commencing on or after the 1st day of April, 2019,-
(i) the provisions of clause (a) or clause (b) of this sub-section shall have effect, as if for the words “twenty-one months”, the words “twelve months” had been substituted;

(ii) the period of limitation for making the assessment or reassessment in case of other person referred to in section 153C, shall be the period of twelve months from the end of the financial year in which the last of the authorisations for search under section 132 or for requisition under section 132A was executed or twelve months from the end of the financial year in which books of account or documents or assets seized or requisitioned are handed over under section 153C to the Assessing Officer having jurisdiction over such other person, whichever is later:

Provided also that in case where the last of the authorisations for search under section 132 or for requisition under section 132A was executed and during the course of the proceedings for the assessment or reassessment of total income, a reference under sub-section (1) of section 92CA is made, the period available for making an order of assessment or reassessment shall be extended by twelve months:
Provided also that in case where during the course of the proceedings for the assessment or reassessment of total income in case of other person referred to in section 153C, a reference under sub-section (1) of section 92CA is made, the period available for making an order of assessment or reassessment in case of such other person shall be extended by twelve months.’;
(b) in sub-section (3), the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:-

“Provided that where a notice under section 153A or section 153C has been issued prior to the 1st day of June, 2016 and the assessment has not been completed by such date due to exclusion of time referred to in the Explanation, such assessment shall be completed in accordance with the provisions of this section as it stood immediately before its substitution by the Finance Act, 2016.”;
(c) in the Explanation, after the second proviso, the following proviso shall be inserted, namely:-

“Provided also that where a proceeding before the Settlement Commission abates under section 245HA, the period of limitation available under this section to the Assessing Officer for making an order of assessment or reassessment, as the case may be, shall, after the exclusion of the period under sub-section (4) of section 245HA, be not less than one year; and where such period of limitation is less than one year, it shall be deemed to have been extended to one year.”.
62. Amendment of section 153C. – In section 153C of the Income-tax Act, in sub-section (1),-
(a) in the long line, after the words “total income of such other person”, the words “for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made and” shall be inserted;

(b) in the second proviso, after the words “requisition is made”, the words, brackets, figures and letter “and for the relevant assessment year or years as referred to in sub-section (1) of section 153A” shall be inserted.

63. Amendment of section 155. – In section 155 of the Income-tax Act, after sub-section (14), the following sub-section shall be inserted with effect from the 1st day of April, 2018, namely:-
“(14A) Where in the assessment for any previous year or in any intimation or deemed intimation under sub-section (1) of section 143 for any previous year, credit for income-tax paid in any country outside India or a specified territory outside India referred to in section 90, section 90A or section 91 has not been given on the ground that the payment of such tax was under dispute, and if subsequently such dispute is settled; and the assessee, within six months from the end of the month in which the dispute is settled, furnishes to the Assessing Officer evidence of settlement of dispute and evidence of payment of such tax along with an undertaking that no credit in respect of such amount has directly or indirectly been claimed or shall be claimed for any other assessment year, the Assessing Officer shall amend the order of assessment or any intimation or deemed intimation under sub-section (1) of section 143, as the case may be, and the provisions of section 154 shall, so far as may be, apply thereto:

Provided that the credit of tax which was under dispute shall be allowed for the year in which such income is offered to tax or assessed to tax in India.”.
64. Insertion of new section 194-IB. – After section 194-IA of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 2017, namely:-
`194-IB. Payment of rent by certain individuals or Hindu undivided family. – (1) Any person, being an individual or a Hindu undivided family (other than those referred to in the second proviso to section 194-IB, responsible for paying to a resident any income by way of rent exceeding fifty thousand rupees for a month or part of a month during the previous year, shall deduct an amount equal to five per cent. of such income as income-tax thereon.
(2) The income-tax referred to in sub-section (1) shall be deducted on such income at the time of credit of rent, for the last month of the previous year or the last month of tenancy, if the property is vacated during the year, as the case may be, 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.
(3) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.
(4) In a case where the tax is required to be deducted as per the provisions of section 206AA, such deduction shall not exceed the amount of rent payable for the last month of the previous year or the last month of the tenancy, as the case may be.
Explanation. – For the purposes of this section, “rent” means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of any land or building or both.’.
65. Insertion of new section 194-IC. – After section 194-IB of the Income-tax Act as so inserted, the following section shall be inserted, namely:-
“194-IC. Payment under specified agreement. – Notwithstanding anything contained in section 194-IA, any person responsible for paying to a resident any sum by way of consideration, not being consideration in kind, under the agreement referred to in sub-section (5A) of section 45, shall at the time of credit of such sum 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, deduct an amount equal to ten per cent. of such sum as income-tax thereon.”.
66. Amendment of section 194J. – In section 194J of the Income-tax Act, after the third proviso and before the Explanation, the following proviso shall be inserted with effect from the 1st day of June, 2017, namely:-
`Provided also that the provisions of this section shall have effect, as if for the words “ten per cent.”, the words “two per cent.” had been substituted in the case of a payee, engaged only in the business of operation of call centre.’.
67. Amendment of section 194LA. – In section 194LA of the Income-tax Act, after the proviso and before the Explanation, the following proviso shall be inserted, namely:-
“Provided further that no deduction shall be made under this section where such payment is made in respect of any award or agreement which has been exempted from levy of income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.”.
68. Amendment of section 194LC. – In section 194LC of the Income-tax Act, in sub-section (2),-
(a) in clause (i), with effect from the 1st day of April, 2018,-

(A) in sub-clauses (a) and (c), for the figures, letters and words “1st day of July, 2017”, the figures, letters and words “1st day of July, 2020” shall be substituted;

(B) in the long line, for the word “and”, the word “or” shall be substituted;

(b) after clause (i), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2016, namely:-

“(ia) in respect of monies borrowed by it from a source outside India by way of issue of rupee denominated bond before the 1st day of July, 2020, and”.

69. Amendment of section 194LD. – In section 194LD of the Income-tax Act, in sub-section (2), for the figures, letters and words “1st day of July, 2017”, the figures, letters and words “1st day of July, 2020” shall be substituted with effect from the 1st day of April, 2018.
70. Amendment of section 197A. – In section 197A of the Income-tax Act, with effect from the 1st day of June, 2017,-
(a) in sub-section (1A), after the word, figures and letter “section 194A” at both the places where they occur, the words, figures and letter “or section 194D” shall be inserted;

(b) in sub-section (1C), after the word, figures and letter “section 194A” at both the places where they occur, the words, figures and letter “or section 194D” shall be inserted.

71. Amendment of section 204. – In section 204 of the Income-tax Act, after clause (iia), the following clause shall be inserted, namely:-
“(iib) in the case of furnishing of information relating to payment to a nonresident, not being a company, or to a foreign company, of any sum, whether or not chargeable under the provisions of this Act, the payer himself, or, if the payer is a company, the company itself including the principal officer thereof;”.

72. Amendment of section 206C. – In section 206C of the Income-tax Act,-
(a) sub-section (1D) shall be omitted;

(b) sub-section (1E) shall be omitted;

(c) in sub-sections (2), (3), (3A) and sub-section (9), the words, brackets, figure and letter “or sub-section (ID)” wherever they occur, shall be omitted;

(d) in sub-section (6A), in the first proviso, the words, brackets, figure and letter “, other than a person referred to in sub-section (1D),” shall be omitted;

(e) in sub-section (7), in the proviso, the words, brackets, figure and letter “, other than a person referred to in sub-section (ID),” shall be omitted;

(f) in the Explanation occurring after sub-section (11),-

(A) in clause (aa),-

(I) sub-clasuse (ii) shall be omitted;

(II) after sub-clause (ii), the following sub-clause shall be inserted, namely:-

“(iii) sub-section (1F) means a person who obtains in any sale, goods of the nature specified in the said sub-section, but does not include,-

(A) the Central Government, a State Government and an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; or

(B) a local authority as defined in Explanation to clause (20) of section 10; or

(C) a public sector company which is engaged in the business of carrying passengers.”;

(B) clause (ab) shall be omitted.

(C) in clause (c), for the words, brackets, figures and letters “or sub section (1D) are sold or services referred to in sub-section (ID) are provided”, the words “are sold” shall be substituted.

73. Insertion of new section 206CC. – After section 206CB of the Income-tax Act, the following section shall be inserted, namely:-
`206CC. Requirement to furnish Permanent Account Number by collectee. – (1) Notwithstanding anything contained in any other provisions of this Act, any person paying any sum or amount, on which tax is collectible at source under Chapter XVII-BB (herein referred to as collectee) shall furnish his Permanent Account Number to the person responsible for collecting such tax (herein referred to as collector), failing which tax shall be collected at the higher of the following rates, namely:-
(i) at twice the rate specified in the relevant provision of this Act; or

(ii) at the rate of five per cent.

(2) No declaration under sub-section (1A) of section 206C shall be valid unless the person furnishes his Permanent Account Number in such declaration.
(3) In case any declaration becomes invalid under sub-section (2), the collector shall collect the tax at source in accordance with the provisions of sub-section (1).
(4) No certificate under sub-section (9) of section 206C shall be granted unless the application made under that section contains the Permanent Account Number of the applicant.
(5) The collectee shall furnish his Permanent Account Number to the collector and both shall indicate the same in all the correspondence, bills, vouchers and other documents which are sent to each other.
(6) Where the Permanent Account Number provided to the collector is invalid or does not belong to the collectee, it shall be deemed that the collectee has not furnished his Permanent Account Number to the collector and the provisions of sub-section (1) shall apply accordingly.
(7) The provisions of this section shall not apply to a non-resident who does not have permanent establishment in India.
Explanation.-For the purposes of this sub-section, the expression “permanent establishment” includes a fixed place of business through which the business of the enterprise is wholly or partly carried on.’.
74. Amendment of section 211. – In section 211 of the Income-tax Act, in sub-section (1), in clause (b), for the words, figures and letters “an eligible assessee in respect of an eligible business referred to in section 44AD”, the words, brackets, figures and letters “an assessee who declares profits and gains in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be” shall be substituted.
75. Amendment of section 234C. – In section 234C of the Income-tax Act, in sub-section (1),-
(i) in clause (a), for the words, figures and letters “an eligible assessee in respect of the eligible business referred to in section 44AD”, the words, brackets and letter “the assessee referred to in clause (b)” shall be substituted;

(ii) in clause (b), for the words, figures and letters “an eligible assessee in respect of the eligible business referred to in section 44AD”, the words, brackets, figures and letters “an assessee who declares profits and gains in accordance with the provisions of sub-section (1) of section 44AD or sub-section (1) of section 44ADA, as the case may be” shall be substituted;

(iii) in the first proviso,-

(A) in clause (c), for the words “first time,” occurring at the end, the words “first time; or” shall be substituted;

(B) after clause (c) and before the long line, the following clause shall be inserted, namely:-

“(d) income of the nature referred to in sub-section (1) of section 115BBDA,”;

(C) in the long line, after the words, brackets and letter “or clause (c)”, the words, brackets and letter “or clause (d)” shall be inserted.

76. Insertion of new section 234F. – After section 234E of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2018, namely:-
“234F. Fee for default in furnishing return of income. – (1) Without prejudice to the provisions of this Act, where a person required to furnish a return of income under section 139, fails to do so within the time prescribed in sub-section (1) of the said section, he shall pay, by way of fee, a sum of,-
(a) five thousand rupees, if the return is furnished on or before the 31st day of December of the assessment year;

(b) ten thousand rupees in any other case:

Provided that if the total income of the person does not exceed five lakh rupees, the fee payable under this section shall not exceed one thousand rupees.
(2) The provisions of this section shall apply in respect of return of income required to be furnished for the assessment year commencing on or after the 1st day of April, 2018.”.
77. Insertion of new section 241A. – After section 241 of the Income-tax Act [as it stood immediately before its omission by section 81 of the Finance Act, 2001], the following section shall be inserted, namely:-
“241A. Withholding of refund in certain cases. – For every assessment year commencing on or after the 1st day of April, 2017, where refund of any amount becomes due to the assessee under the provisions of sub-section (1) of section 143 and the Assessing Officer is of the opinion, having regard to the fact that a notice has been issued under sub-section (2) of section 143 in respect of such return, that the grant of the refund is likely to adversely affect the revenue, he may, for reasons to be recorded in writing and with the previous approval of the Principal Commissioner or Commissioner, as the case may be, withhold the refund up to the date on which the assessment is made.”.

78. Amendment of section 244A. – In section 244A of the Income-tax Act,-
(i) after sub-section (1A), the following sub-section shall be inserted, namely:-

“(1B) Where refund of any amount becomes due to the deductor in respect of any amount paid to the credit of the Central Government under Chapter XVII-B, such deductor shall be entitled to receive, in addition to the said amount, simple interest thereon calculated at the rate of one-half per cent. for every month or part of a month comprised in the period, from the date on which-

(a) claim for refund is made in the prescribed form; or

(b) tax is paid, where refund arises on account of giving effect to an order under section 250 or section 254 or section 260 or section 262,

to the date on which the refund is granted.”;
(ii) in sub-section (2),-

(a) after the words “to the assessee”, the words “or the deductor, as the case may be,” shall be inserted;

(b) after the word, brackets, figure and letter “or (1A)”, the word, brackets, figure and letter “or (1B)” shall be inserted.

79. Amendment of section 245A. – In section 245A of the Income-tax Act, in clause (b), in the Explanation, in clause (iv), for the words “two years from the end of the relevant assessment year”, the words, brackets and figures “the time specified for making assessment under sub-section (1) of section 153” shall be substituted.
80. Amendment of section 245N. – In section 245N of the Income-tax Act, for clause (b), the following clause shall be substituted, namely:-
`(b) “applicant” means-

(A) any person who-

(I) is a non-resident referred to in sub-clause (i) of clause (a); or

(II) is a resident referred to in sub-clause (ii) of clause (a); or

(III) is a resident referred to in sub-clause (iia) of clause (a) falling within any such class or category of persons as the Central Government may, by notification in the Official Gazette, specify; or

(IV) is a resident falling within any such class or category of persons as the Central Government may, by notification in the Official Gazette, specify in this behalf; or

(V) is referred to in sub-clause (iv) of clause (a), and makes an application under sub-section (1) of section 245Q;

(B) an applicant as defined in clause (c) of section 28E of the Customs Act, 1962;

(C) an applicant as defined in clause (c) of section 23A of the Central Excise Act, 1944;

(D) an applicant as defined in clause (b) of section 96A of the Finance Act, 1994;’.

81. Amendment of section 245-O. – In section 245-O of the Income-tax Act,-
(a) in sub-section (3),-

(i) in clause (a), after the words “a Judge of the Supreme Court”, the words “or the Chief Justice of a High Court or for at least seven years a Judge of a High Court” shall be inserted;

(ii) for clause (c), the following clause shall be substituted, namely:-

“(c) a revenue Member-

(i) from the Indian Revenue Service, who is, or is qualified to be, a Member of the Board; or

(ii) from the Indian Customs and Central Excise Service, who is, or is qualified to be, a Member of the Central Board of Excise and Customs,

on the date of occurrence of vacancy;”;
(iii) in clause (d), after the words “Government of India”, the words “on the date of occurrence of vacancy” shall be inserted;

(b) after sub-section (6), the following sub-sections shall be inserted, namely:-

“(6A) In the event of the occurrence of any vacancy in the office of the Chairman by reason of his death, resignation or otherwise, the seniormost Vice-chairman shall act as the Chairman until the date on which a new Chairman, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office.

(6B) In case the Chairman is unable to discharge his functions owing to absence, illness or any other cause, the senior-most Vice-chairman shall discharge the functions of the Chairman until the date on which the Chairman resumes his duties.”.

82. Amendment of section 245Q. – In section 245Q of the Income-tax Act, in sub-section (1), after the words “advance ruling under this Chapter”, the words, figures and letters “or under Chapter V of the Customs Act, 1962 or under Chapter IIIA of the Central Excise Act, 1944 or under Chapter VA of the Finance Act, 1994” shall be inserted.
83. Amendment of section 253. – In section 253 of the Income-tax Act, in sub-section (1), in clause (f), after the words “authority under”, the words, brackets and figures “sub-clause (iv) or sub-clause (v) or” shall be inserted.
84. Insertion of new section 269ST. – After section 269SS of the Income-tax Act, the following section shall be inserted, namely:-
`269ST. – No person shall receive an amount of two lakh rupees or more-

(a) in aggregate from a person in a day; or

(b) in respect of a single transaction; or

(c) 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 use of electronic clearing system through a bank account:

Provided that the provisions of this section shall not apply to-
(i) any receipt by-

(a) Government;

(b) any banking company, post office savings bank or co-operative bank;

(ii) transactions of the nature referred to in section 269SS;

(iii) such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.

Explanation. – For the purposes of this section,-
(a) “banking company” shall have the same meaning as assigned to it in clause (i) of the Explanation to section 269SS;

(b) “co-operative bank” shall have the same meaning as assigned to it in clause (ii) of the Explanation to section 269SS.’.

85. Insertion of new section 271DA. – After section 271D of the Income-tax Act, the following section shall be inserted, namely:-
“271DA. Penalty for failiure to comply with provisions of section 269ST. – (1) If a person receives any sum in contravention of the provisions of section 269ST, he shall be liable to pay, by way of penalty, a sum equal to the amount of such receipt:
Provided that no penalty shall be imposable if such person proves that there were good and sufficient reasons for the contravention.
(2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner.”.
86. Amendment of section 271F. – In section 271F of the Income-tax Act, the following proviso shall be inserted with effect from the 1st day of April, 2018, namely:-
“Provided that nothing contained in this section shall apply to and in relation to the return of income required to be furnished for any assessment year commencing on or after the 1st day of April, 2018.”.
87. Insertion of new section 271J. – After section 271-I of the Income-tax Act, the following section shall be inserted, namely:-
`271J. Penalty for furnishing incorrect information in reports or certificates. – Without prejudice to the provisions of this Act, where the Assessing Officer or the Commissioner (Appeals), in the course of any proceedings under this Act, finds that an accountant or a merchant banker or a registered valuer has furnished incorrect information in any report or certificate furnished under any provision of this Act or the rules made thereunder, the Assessing Officer or the Commissioner (Appeals) may direct that such accountant or merchant banker or registered valuer, as the case may be, shall pay, by way of penalty, a sum of ten thousand rupees for each such report or certificate.
Explanation. – For the purposes of this section,-
(a) “accountant” means an accountant referred to in the Explanation below sub-section (2) of section 288;

(b) “merchant banker” means Category I merchant banker registered with the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992;

(c) “registered valuer” means a person defined in clause (oaa) of section 2 of the Wealth-tax Act, 1957.’.

88. Amendment of section 273B. – In section 273B of the Income-tax Act, after the word, figures and letter “section 271-I,”, the word, figures and letter “section 271J,” shall be inserted.
CHAPTER IV

Indirect Taxes

Customs

89. Amendment of section 2. – In the Customs Act, 1962 (hereinafter referred to as the Customs Act), in section 2,-
(a) after clause (3), the following clause shall be inserted, namely:-

`(3A) “beneficial owner” means any person on whose behalf the goods are being imported or exported or who exercises effective control over the goods being imported or exported;’;

(b) in clause (13), for the words “customs airport”, the words “customs airport, international courier terminal, foreign post office” shall be substituted;

(c) in clause (16), the words and figures “in the case of goods imported or to be exported by post, the entry referred to in section 82 or” shall be omitted;

(d) in clause (20), for the words “any owner”, the words “any owner, beneficial owner” shall be substituted;

(e) after clause (20), the following clause shall be inserted, namely:-

`(20A) “foreign post office” means any post office appointed under clause (e) of sub-section (1) of section 7 to be a foreign post office;’;

(f) in clause (26), for the words “any owner”, the words “any owner, beneficial owner” shall be substituted;

(g) after clause (28), the following clause shall be inserted, namely:-

`(28A) “international courier terminal” means any place appointed under clause (f) of sub-section (1) of section 7 to be an international courier terminal;’;

(h) after clause (30A), the following clause shall be inserted, namely:-

`(30B) “passenger name record information” means the records prepared by an operator of any aircraft or vessel or vehicle or his authorised agent for each journey booked by or on behalf of any passenger;’.

90. Amendment of section 7. – In the Customs Act, in section 7, in sub-section (1), after clause (d), the following clauses shall be inserted, namely:-
“(e) the post offices which alone shall be foreign post offices for the clearance of imported goods or export goods or any class of such goods;

(f) the places which alone shall be international courier terminals for the clearance of imported goods or export goods or any class of such goods.”.

91. Amendment of section 17. – In the Customs Act, in section 17, for sub-section (3), the following sub-section shall be substituted, namely:-
“(3) For verification of self-assessment under sub-section (2), the proper officer may require the importer, exporter or any other person to produce any document or information, whereby the duty leviable on the imported goods or export goods, as the case may be, can be ascertained and thereupon, the importer, exporter or such other person shall produce such document or furnish such information.”.

92. Amendment of section 27. – In the Customs Act, in section 27, in sub-section (2), in the first proviso, after clause (f), the following clause shall be inserted, namely:-
“(g) the duty paid in excess by the importer before an order permitting clearance of goods for home consumption is made where-

(i) such excess payment of duty is evident from the bill of entry in the case of self-assessed bill of entry; or

(ii) the duty actually payable is reflected in the reassessed bill of entry in the case of reassessment.”.

93. Amendment of section 28E. – In the Customs Act, in section 28E, for clause (e), the following clause shall be substituted, namely:-
`(e) “Authority” means the Authority for Advance Rulings constituted under section 245-O of the Income-tax Act, 1961;’.

94. Substitution of new section for section 28F. – In the Customs Act, for section 28F, the following section shall be substituted, namely:-
“28F. Authority for Advance Rulings. – (1) Subject to the provisions of this Act, the Authority for Advance Rulings constituted under section 245-O of the Income-tax Act, 1961 shall be the Authority for giving advance rulings for the purposes of this Act and the said Authority shall exercise the jurisdiction, powers and authority conferred on it by or under this Act:
Provided that the Member from the Indian Revenue Service (Customs and Central Excise), who is qualified to be a Member of the Board, shall be the revenue Member of the Authority for the purposes of this Act.
(2) On and from the date on which the Finance Bill, 2017 receives the assent of the President, every application and proceeding pending before the erstwhile Authority for Advance Rulings (Central Excise, Customs and Service Tax) shall stand transferred to the Authority from the stage at which such application or proceeding stood as on the date of such assent.”.
95. Omission of section 28G. – In the Customs Act, section 28G shall be omitted.
96. Amendment of section 28H. – In the Customs Act, in section 28H, in sub-section (3), for the words “two thousand five hundred rupees”, the words “ten thousand rupees” shall be substituted.
97. Amendment of section 28-I. – In the Customs Act, in section 28-I, in sub-section (6), for the words “ninety days”,the words “six months” shall be substituted.
98. Insertion of new section 30A. – In the Customs Act, after section 30, the following section shall be inserted, namely:-
“30A. Passenger and crew arrival manifest and passenger name record information. – (1) The person-in-charge of a conveyance that enters India from any place outside India or any other person as may be specified by the Central Government by notification in the Official Gazette, shall deliver to the proper officer-
(i) the passenger and crew arrival manifest before arrival in the case of an aircraft or a vessel and upon arrival in the case of a vehicle; and

(ii) the passenger name record information of arriving passengers, in such form, containing such particulars, in such manner and within such time, as may be prescribed.

(2) Where the passenger and crew arrival manifest or the passenger name record information or any part thereof is not delivered to the proper officer within the prescribed time and if the proper officer is satisfied that there was no sufficient cause for such delay, the person-in-charge or the other person referred to in sub-section (1) shall be liable to such penalty, not exceeding fifty thousand rupees, as may be prescribed.”.
99. Insertion of new section 41A. – In the Customs Act, after section 41, the following section shall be inserted, namely:-
“41A. Passenger and crew departure manifest and passenger name record information. – (1) The person-in-charge of a conveyance that departs from India to a place outside India or any other person as may be specified by the Central Government by notification in the Official Gazette, shall deliver to the proper officer-
(i) the passenger and crew departure manifest; and

(ii) the passenger name record information of departing passengers, in such form, containing such particulars, in such manner and within such time, as may be prescribed.

(2) Where the passenger and crew departure manifest or the passenger name record information or any part thereof is not delivered to the proper officer within the prescribed time and if the proper officer is satisfied that there was no sufficient cause for such delay, the person-in-charge or the other person referred to in sub-section (1) shall be liable to such penalty, not exceeding fifty thousand rupees, as may be prescribed.”.
100. Amendment of section 46. – In the Customs Act, in section 46, for sub-section (3), the following sub-section shall be substituted, namely:-
“(3) The importer shall present the bill of entry under sub-section (1) before the end of the next day following the day (excluding holidays) on which the aircraft or vessel or vehicle carrying the goods arrives at a customs station at which such goods are to be cleared for home consumption or warehousing:
Provided that a bill of entry may be presented within thirty days of the expected arrival of the aircraft or vessel or vehicle by which the goods have been shipped for importation into India:
Provided further that where the bill of entry is not presented within the time so specified and the proper officer is satisfied that there was no sufficient cause for such delay, the importer shall pay such charges for late presentation of the bill of entry as may be prescribed.”.
101. Amendment of section 47. – In the Customs Act, in section 47, in sub-section (2), for the portion beginning with the words “Where the importer fails to pay” and ending with the words “in the Official Gazette”, the following shall be substituted, namely:-
“The importer shall pay the import duty-
(a) on the date of presentation of the bill of entry in the case of self-assessment; or

(b) within one day (excluding holidays) from the date on which the bill of entry is returned to him by the proper officer for payment of duty in the case of assessment, reassessment or provisional assessment; or

(c) in the case of deferred payment under the proviso to sub-section (1), from such due date as may be specified by rules made in this behalf, and if he fails to pay the duty within the time so specified, he shall pay interest on the duty not paid or short-paid till the date of its payment, at such rate, not less than ten per cent. but not exceeding thirty-six per cent. per annum, as may be fixed by the Central Government, by notification in the Official Gazette.”.

102. Substitution of new section for section 49. – In the Customs Act, for section 49, the following section shall be substituted, namely:-
“49. Storage of imported goods in warehouse pending clearance or removal. – Where,-
(a) in the case of any imported goods, whether dutiable or not, entered for home consumption, the Assistant Commissioner of Customs or Deputy Commissioner of Customs is satisfied on the application of the importer that the goods cannot be cleared within a reasonable time;

(b) in the case of any imported dutiable goods, entered for warehousing, the Assistant Commissioner of Customs or Deputy Commissioner of Customs is satisfied on the application of the importer that the goods cannot be removed for deposit in a warehouse within a reasonable time, the goods may pending clearance or removal, as the case may be, be permitted to be stored in a public warehouse for a period not exceeding thirty days:

Provided that the provisions of Chapter IX shall not apply to goods permitted to be stored in a public warehouse under this section:
Provided further that the Principal Commissioner of Customs or Commissioner of Customs may extend the period of storage for a further period not exceeding thirty days at a time.”.
103. Amendment of section 69. – In the Customs Act, in section 69, in sub-section (1), for clause (a), the following clause shall be substituted, namely:-
“(a) a shipping bill or a bill of export or the form as prescribed under section 84 has been presented in respect of such goods;”.

104. Omission of section 82. – In the Customs Act, section 82 shall be omitted.
105. Amendment of section 84. – In the Customs Act, in section 84, for clause (a), the following clause shall be substituted, namely:-
“(a) the form and manner in which an entry may be made in respect of goods imported or to be exported by post;”.

106. Amendment of section 127B. – In the Customs Act, in section 127B, after sub-section (4), the following sub-section shall be inserted, namely:-
“(5) Any person, other than an applicant referred to in sub-section (1), may also make an application to the Settlement Commission in respect of a show cause notice issued to him in a case relating to the applicant which has been settled or is pending before the Settlement Commission and such notice is pending before an adjudicating authority, in such manner and subject to such conditions, as may be specified by rules.”.

107. Amendment of section 127C. – In the Customs Act, in section 127C, after sub-section (5), the following sub-section shall be inserted, namely:-
“(5A) The Settlement Commission may, at any time within three months from the date of passing of the order under sub-section (5), amend such order to rectify any error apparent on the face of record, either suo motu or when such error is brought to its notice by the jurisdictional Principal Commissioner of Customs or Commissioner of Customs or the applicant:

Provided that no amendment which has the effect of enhancing the liability of the applicant shall be made under this sub-section, unless the Settlement Commission has given notice of such intention to the applicant and the jurisdictional Principal Commissioner of Customs or Commissioner of Customs as the case may be, and has given them a reasonable opportunity of being heard.”.
108. Amendment of section 157. – In the Customs Act, in section 157, in sub-section (2), after clause (aa), the following clause shall be inserted, namely:-
“(ab) the form, the particulars, the manner and the time of delivering the passenger and crew manifest for arrival and departure and passenger name record information and the penalty for delay in delivering such information under sections 30A and 41A;”.

Customs Tariff

109. Amendment of section 9. – In the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act), in section 9, in sub-section (3), for clause (c), the following clause shall be substituted, namely:-
“(c) the subsidy has been conferred on a limited number of persons engaged in the manufacture, production or export of articles;”.

110. Amendment of First Schedule. – In the Customs Tariff Act, the First Schedule shall-
(a) be amended in the manner specified in the Second Schedule;

(b) be also amended in the manner specified in the Third Schedule.

111. Amendment of Second Schedule. – In the Customs Tariff Act, the Second Schedule shall be amended in the manner specified in the Fourth Schedule.
Excise

112. Amendment of section 23A. – In the Central Excise Act, 1944 (hereinafter referred to as the Central Excise Act), in section 23A, for clause (e), the following clause shall be substituted, namely:-
`(e) “Authority” means the Authority for Advance Rulings as defined in clause (e) of section 28E of the Customs Act, 1962;’.

113. Omission of section 23B. – In the Central Excise Act, section 23B shall be omitted.
114. Amendment of section 23C. – In the Central Excise Act, in section 23C, in sub-section (3), for the words “two thousand and five hundred rupees”, the words “ten thousand rupees” shall be substituted.
115. Amendment of section 23D. – In the Central Excise Act, in section 23D, in sub-section (6), for the words “ninety days”, the words “six months” shall be substituted.
116. Insertion of new section 23-I. – In the Central Excise Act, after section 23H, the following section shall be inserted, namely:-
“23-I. Transitional provision. – On and from the date on which the Finance Bill, 2017 receives the assent of the President, every application and proceeding pending before the erstwhile Authority for Advance Rulings (Central Excise, Customs and Service Tax) shall stand transferred to the Authority from the stage at which such application or proceeding stood as on the date of such assent.”.

117. Amendment of section 32E. – In the Central Excise Act, in section 32E, after sub-section (4), the following sub-section shall be inserted, namely:-
“(5) Any person other than an assessee, may also make an application to the Settlement Commission in respect of a show cause notice issued to him in a case relating to the assessee which has been settled or is pending before the Settlement Commission and such notice is pending before an adjudicating authority, in such manner and subject to such conditions, as may be prescribed.”.

118. Amendment of section 32F. – In the Central Excise Act, in section 32F,-
(i) in sub-section (1), for words, brackets and figure “sub-section (1) of ” shall be omitted;

(ii) after sub-section (5), the following sub-section shall be inserted, namely:-

“(5A) The Settlement Commission may, at any time within three months from the date of passing of the order under sub-section (5), amend such order to rectify any error apparent on the face of record, either suo motu or when such error is brought to its notice by the jurisdictional Principal Commissioner of Central Excise or Commissioner of Central Excise or the applicant:
Provided that no amendment which has the effect of enhancing the liability of the applicant shall be made under this sub-section, unless the Settlement Commission has given notice of such intention to the applicant and the jurisdictional Principal Commissioner of Central Excise or Commissioner of Central Excise as the case may be, and has given them a reasonable opportunity of being heard.’.
Central Excise Tariff

119. Amendment of First Schedule. – In the Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act), the First Schedule shall be amended in the manner specified in the Fifth Schedule.
120. Retrospective amendment of certain entries in First Schedule. – In the Central Excise Tariff Act, in the First Schedule, in Chapter 87, in column (4), for the entry “27%” occurring against tariff items 8702 90 21, 8702 90 22, 8702 90 28 and 8702 90 29, the entry “12.5%” shall be substituted and shall be deemed to have been substituted retrospectively with effect from the 1st day of January, 2017.
CHAPTER V

Service Tax

121. Amendment of section 65B. – In the Finance Act, 1994 (hereinafter referred to as the 1994 Act), in section 65B, clause (40) shall be omitted.
122. Amendment of section 66D. – In the 1994 Act, in section 66D, clause (f) shall be omitted.
123. Amendment of section 96A. – In the 1994 Act, in section 96A, for clause (d), the following clause shall be substituted, namely:-
`(d) “Authority” means the Authority for Advance Rulings as defined in clause (e) of section 28E of the Customs Act, 1962;’.

124. Omission of section 96B. – In the 1994 Act, section 96B shall be omitted.
125. Amendment of section 96C. – In the 1994 Act, in section 96C, in sub-section (3), for the words “two thousand and five hundred rupees”, the words “ten thousand rupees” shall be substituted.
126. Amendment of section 96D. – In the 1994 Act, in section 96D, in sub-section (6), for the words “ninety days”, the words “six months” shall be substituted.
127. Insertion of new section 96HA. – In the 1994 Act, after section 96H, the following section shall be inserted, namely:-
“96HA. Transitional provision. – On and from the date on which the Finance Bill, 2017 receives the assent of the President, every application and proceeding pending before the erstwhile Authority for Advance Rulings (Central Excise, Customs and Service Tax) shall stand transferred to the Authority from the stage at which such application or proceeding stood as on the date of such assent.”.
128. Insertion of new sections 104 and 105. – In the 1994 Act, after section 103, the following sections shall be inserted, namely:-
“104. Special provision for exemption in certain cases relating to long term lease of industrial plots. – (1) Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, or in section 66B, no service tax, leviable on one time upfront amount (premium, salami, cost, price, development charge or by whatever name called) in respect of taxable service provided or agreed to be provided by a State Government industrial development corporation or undertaking to industrial units by way of grant of long term lease of thirty years or more of industrial plots, shall be levied or collected during the period commencing from the 1st day of June, 2007 and ending with the 21st day of September, 2016 (both days inclusive).
(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times.
(3) Notwithstanding anything contained in this Chapter, an application for claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2017 receives the assent of the President.
105. Special provision for exemption in certain cases relating to life insurance services provided to members of armed forces of Union. – (1) Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, or in section 66B, no service tax shall be levied or collected in respect of taxable services provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds by way of life insurance to members of the Army, Navy and Air Force, respectively, under the Group Insurance Schemes of the Central Government, during the period commencing from the 10th day of September, 2004 and ending with the 1st day of February, 2017 (both days inclusive).
(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times.
(3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2017 receives the assent of the President.”.
129. Amendment of rule 2A of Service Tax (Determination of Value) Rules, 2006, retrospectively. – (1) In the Service Tax (Determination of Value) Rules, 2006 made by the Central Government in exercise of the powers conferred by section 94 of the Finance Act, 1994, published in the Gazette of India vide notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 228(E), dated the 19th April, 2006,-
(a) rule 2A as inserted by the Service Tax (Determination of Value) (Amendment) Rules, 2007 published vide number G.S.R. 375(E), dated the 22nd May, 2007; and

(b) rule 2A as substituted by the Service Tax (Determination of Value) Second Amendment Rules, 2012 published vide number G.S.R. 431(E), dated the 6th June, 2012,

shall stand amended and shall be deemed to have been amended in the manner specified in column (3) of the Sixth Schedule, on and from and up to the corresponding date specified in column (4), against each of the rule specified in column (2) thereof.
(2) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done at any time during the period specified in column (4) of the Sixth Schedule relating to the provisions as amended by sub-section (1) shall be deemed to be and deemed always to have been, for all purposes, as validly and effectively taken or done as if the amendment made by sub-section (1) had been in force at all material times.
(3) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as if the Central Government had the power to make rules under section 94 of the Finance Act, 1994, retrospectively, at all material times.
Explanation. – For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable had this section not come into force.
CHAPTER VI

Miscellaneous

Part I

Amendments to the Indian Trusts Act, 1882

130. Commencement of this Part. – The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
131. Amendment of section 20 of Act 2 of 1882. – In section 20 of the Indian Trusts Act,1882 [as substituted by section 2 of the Indian Trusts (Amendment) Act, 2016],-
(i) for the words “invest the money in any of the securities or class of securities expressly authorised by the instrument of trust or”, the words “make investments as expressly authorised by the instrument of trust or in any of the securities or class of securities” shall be substituted;

(ii) in the proviso, the words “in any of the securities or class of securities mentioned above” shall be omitted.

Part II

Amendments to the Indian Post Office Act, 1898

132. Commencement of this Part. – The provisions of this Part shall come into force on the 1st day of April, 2017.
133. Amendment of section 7 of Act 6 of 1898. – In section 7 of the Indian Post Office Act, 1898,-
(a) in sub-section (1), for the proviso, the following proviso shall be substituted, namely:-

“Provided that until such notification is issued, the rates set forth in the First Schedule shall be the rates chargeable under this Act.”;
(b) sub-section (2) shall be omitted.

Part III

Amendments to the Reserve Bank of India Act, 1934

134. Commencement of this Part. – The provisions of this Part shall come into force on the 1st day of April, 2017.
135. Amendment of section 31 of Act 2 of 1934. – In the Reserve Bank of India Act, 1934, in section 31, after sub-section (2), the following sub-section shall be inserted, namely:-
`(3) Notwithstanding anything contained in this section, the Central Government may authorise any scheduled bank to issue electoral bond.
Explanation. – For the purposes of this sub-section, “electroal bond” means a bond issued by any scheduled bank under the scheme as may be notified by the Central Government.’.
Part IV

Amendments to the Representation of the People Act, 1951

136. Commencement of this Part. – The provisions of this Part shall come into force on the 1st day of April, 2017.
137. Amendment of section 29C of Act 43 of 1951. – In the Representation of the People Act, 1951, in section 29C, in sub-section (1), the following shall be inserted, namely:-
`Provided that nothing contained in this sub-section shall apply to the contributions received by way of an electoral bond.
Explanation. – For the purposes of this sub-section, “electoral bond” means a bond referred to in the Explanation to sub-section (3) of section 31 of the Reserve Bank of India Act, 1934.
Part V

Amendment to the Securites Contracts (Regulation) Act, 1956

138. Amendment of section 23J. – In the Securities Contracts (Regulation) Act, 1956, in section 23J, the following Explanation shall be inserted, namely:-
“Explanation. – For the removal of doubts, it is clarified that the power of an adjudicating officer to adjudge the quantum of penalty under sections 23A to 23C shall be and shall always be deemed to have exercised under the provisions of this section.”.
Part VI

Amendments to the Oil Industry (Development) Act, 1974

139. Commencement of this Part. – The provisions of this Part shall come into force on the 1st day of April, 2017.
140. Amendment of section 18 of Act 47 of 1974. – In the Oil Industry (Development) Act, 1974, in section 18, in sub-section (2), after clause (d), the following clauses shall be inserted, namely:-
“(e) for meeting any expenditure incurred by any Central Public Sector Undertaking in the oil and gas sector, on behalf of the Central Government;

(f) for meeting expenditure on any scheme or activity by the Central Government relating to oil and gas sector.”.

Part VII

Repeal of the Research and Development Cess Act, 1986.

141. Commencement of this Part. – The provisions of this Part shall come into force on the 1st day of April, 2017.
142. Repeal of Act 32 of 1986, Savings. – The Research and Development Cess Act, 1986 is hereby repealed.
143. Savings. – (1) The repeal of the Research and Development Cess Act, 1986 by this Act shall not-
(a) affect any other enactment in which the repealed enactment has been applied, incorporated or referred to;

(b) affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing;

(c) affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in or from the enactment hereby repealed;

(d) revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force.

(2) The mention of particular matter in sub-section (1) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897, with regard to the effect of repeal.
144. Collection and payment of arrears of duties. – Notwithstanding the repeal of the Research and Development Cess Act, 1986, the proceeds of duties levied under the said Act immediately preceding the date of commencement of this Part,-
(i) if collected by the collecting agencies but not paid into the Reserve Bank of India; or

(ii) if not collected by the collecting agencies, shall be paid or, as the case may be, collected and paid into the Reserve Bank of India for being credited to the Consolidated Fund of India.

Part VIII

Amendments to the Securities and Exchange Board of India Act, 1992

145. Commencement of this Part. – The provisions of this Part shall come into force on such date as the Central Government may, by notification, appoint, and different dates may be appointed for different provisions of this Part.
146. Amendment of Act 15 of 1992. – In the Securities and Exchange Board of India Act, 1992 (hereafter in this Part referred to as the principal Act), in section 2, in sub-section (1),-
(A) after clause (d), the following clauses shall be inserted, namely:-

`(da) “Insurance Regulatory and Development Authority” means the Insurance Regulatory and Development Authority of India established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999;

(db) “Judicial Member” means a Member of the Securities Appellate Tribunal appointed under sub-section (1) of section 15MA and includes the Presiding Officer;’;

(B) after clause (f), the following clause shall be inserted, namely:-

`(fa) “Pension Fund Regulatory and Development Authority” means the Pension Fund Regulatory and Development Authority established under subsection (1) of section 3 of the Pension Fund Regulatory and Development Authority Act, 2013;’;

(C) after clause (i), the following clause shall be inserted, namely:-

`(j) “Technical Member” means a Technical Member appointed under sub-section (1) of section 15MB.’.

147. Amendment of section 15J. – In section 15J of the principal Act, the following Explanation shall be inserted, namely:-
“Explanation. – For the removal of doubts, it is clarified that the power of an adjudicating officer to adjudge the quantum of penalty under sections 15A to 15E, clauses (b) and (c) of section 15F, 15G, 15H and 15HA shall be and shall always be deemed to have been exercised under the provisions of this section.”.
148. Amendment of Chapter VIB. – In Chapter VIB of the principal Act,-
(a) in the chapter heading, for the words “Appellate Tribunal”, the words “Securities Appellate Tribunal” shall be substituted;

(b) for section 15K, the following section shall be substituted, namely:-

“15K. Establishment of Securities Appellate Tribunal. – (1) The Central Government shall, by notification, establish a Tribunal to be known as the Securities Appellate Tribunal to exercise the jurisdiction, powers and authority conferred on it by or under this Act or any other law for the time being in force.
(2) The Central Government shall also specify in the notification referred to in sub-section (1), the matters and places in relation to which the Securities Appellate Tribunal may exercise jurisdiction.”;
(c) for section 15L, the following section shall be substituted, namely:-

“15L. Composition of Securities Appellate Tribunal. – (1) The Securities Appellate Tribunal shall consist of a Presiding Officer and such number of Judicial Members and Technical Members as the Central Government may determine, by notification, to exercise the powers and discharge the functions conferred on the Securities Appellate Tribunal under this Act or any other law for the time being in force.
(2) Subject to the provisions of this Act,-
(a) the jurisdiction of the Securities Appellate Tribunal may be exercised by Benches thereof;

(b) a Bench may be constituted by the Presiding Officer of the Securities Appellate Tribunal with two or more Judicial or Technical Members as he may deem fit:

Provided that every Bench constituted shall include at least one Judicial Member and one Technical Member;
(c) the Benches of the Securities Appellate Tribunal shall ordinarily sit at Mumbai and may also sit at such other places as the Central Government may, in consultation with the Presiding Officer, notify.

(3) Notwithstanding anything contained in sub-section (2), the Presiding Officer may transfer a Judicial Member or a Technical Member of the Securities Appellate Tribunal from one Bench to another Bench.”;
(d) for section 15M, the following sections shall be substituted, namely:-

“15M. Qualification for appointment as Presiding Officer, Judicial Member and Technical Member. – A person shall not be qualified for appointment as the Presiding Officer or a Judicial Member or a Technical Member of the Securities Appellate Tribunal, unless he-
(a) is, or has been, a Judge of the Supreme Court or a Chief Justice of a High Court or a Judge of High Court for at least seven years, in the case of the Presiding Officer; and

(b) is, or has been, a Judge of High Court for at least five years, in the case of a Judicial Member; or

(c) in the case of a Technical Member-

(i) is, or has been, a Secretary or an Additional Secretary in the Ministry or Department of the Central Government or any equivalent post in the Central Government or a State Government; or

(ii) is a person of proven ability, integrity and standing having special knowledge and professional experience, of not less than fifteen years, in financial sector including securities market or pension funds or commodity derivatives or insurance.

15MA. Amendment of Presiding Officer and Judicial Members. – The Presiding Officer and Judicial Members of the Securities Appellate Tribunal shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee.
15MB. Search-cum-Selection Committee for appointment of Technical Members. – (1) The Technical Members of the Securities Appellate Tribunal shall be appointed by the Central Government on the recommendation of a Search-cum-Selection Committee consisting of the following, namely:-
(a) Presiding Officer, Securities Appellate Tribunal-Chairperson;

(b) Secretary, Department of Economic Affairs-Member;

(c) Secretary, Department of Financial Services-Member; and

(d) Secretary, Legislative Department or Secretary, Department of Legal Affairs-Member.

(2) The Secretary, Department of Economic Affairs shall be the Convener of the Search-cum-Selection Committee.
(3) The Search-cum-Selection Committee shall determine its procedure for recommending the names of persons to be appointed under sub-section (1).
15MC. Vacancy not to invalidate selection proceeding. – (1) No appointment of the Presiding Officer, a Judicial Member or a Technical Member of the Securities Appellate Tribunal shall be invalid merely by reason of any vacancy or any defect in the constitution of the Search-cum-Selection Committee.
(2) A member or part time member of the Board or the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority, or any person at senior management level equivalent to the Executive Director in the Board or in such Authorities, shall not be appointed as Presiding Officer or Member of the Securities Appellate Tribunal, during his service or tenure as such with the Board or with such Authorities, as the case may be, or within two years from the date on which he ceases to hold office as such in the Board or in such Authorities.
(3) The Presiding Officer or such other member of the Securities Appellate Tribunal, holding office on the date of commencement of Part VIII of Chapter VI of the Finance Act, 2017 shall continue to hold office for such term as he was appointed and the other provisions of this Act shall apply to such Presiding Officer or such other member, as if Part VIII of Chapter VI of the Finance Act, 2017 had not been enacted.”;
(e) for section 15N, the following section shall be substituted, namely:-

“15N. Tenure of office of Presiding Officer, Judicial or Technical Members of Securities Appellate Tribunal. – The Presiding Officer or every Judicial or Technical Member of the Securities Appellate Tribunal shall hold office for a term of five years from the date on which he enters upon his office, and shall be eligible for reappointment for another term of maximum five years:
Provided that no Presiding Officer or the Judicial or Technical Member shall hold office after he has attained the age of seventy years.”;
(f) after section 15P, the following section shall be inserted, namely:-

“15PA. Member to act as Presiding Officer in certain circumstances. – In the event of occurrence of any vacancy in the office of the Presiding Officer of the Securities Appellate Tribunal by reason of his death, resignation or otherwise, the senior-most Judicial Member of the Securities Appellate Tribunal shall act as the Presiding Officer until the date on which a new Presiding Officer is appointed in accordance with the provisions of this Act.”;
(g) in section 15Q, for sub-section (2), the following sub-section shall be substituted, namely:-
“(2) The Central Government may, after an inquiry made by the Judge of the Supreme Court, remove the Presiding Officer or Judicial Member or Technical Member of the Securities Appellate Tribunal, if he-
(a) is, or at any time has been adjudged as an insolvent;

(b) has become physically or mentally incapable of acting as the Presiding Officer, Judicial or Technical Member;

(c) has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude;

(d) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest; or

(e) has acquired such financial interest or other interest as is likely to affect prejudicially his functions as the Presiding Officer or Judicial or Technical Member:

Provided that he shall not be removed from office under clauses (d) and (e), unless he has been given a reasonable opportunity of being heard in the matter.”;
(h) In section 15T,-

(I) in sub-section (1),-

(A) in clause (b), for the words “under this Act,”, the words “under this Act; or” shall be substituted;

(B) after clause (b) and before the long line, the following clause shall be inserted, namely:-

“(c) by an order of the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority,”;

(II) in sub-section (3), after the words “adjudicating officer”, the words “or the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority” shall be inserted;

(III) in sub-section (5), after the words “the Board”, the words “or the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority, as the case may be” shall be inserted;

(i) in section 15U, after sub-section (3), the following sub-sections shall be inserted, namely:-

“(4) Where Benches are constituted, the Presiding Officer of the Securities Appellate Tribunal may, from time to time make provisions as to the distribution of the business of the Securities Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with, by each Bench.

(5) On the application of any of the parties and after notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the Presiding Officer of the Securities Appellate Tribunal may transfer any case pending before one Bench, for disposal, to any other Bench.

(6) If a Bench of the Securities Appellate Tribunal consisting of two members differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the Presiding Officer of the Securities Appellate Tribunal who shall either hear the point or points himself or refer the case for hearing only on such point or points by one or more of the other members of the Securities Appellate Tribunal and such point or points shall be decided according to the opinion of the majority of the members of the Securities Appellate Tribunal who have heard the case, including those who first heard it.”.

Part IX

Amendment to the Depositories Act, 1996

149. Amendment of section 19-I. – In the Depositories Act, 1996, in section 19-I, the following Explanation shall be inserted, namely:-
“Explanation. – For the removal of doubts, it is clarified that the power of an adjudicating officer to adjudge the quantum of penalty under sections 19A to 19F shall be and shall always be deemed to have been exercised under the provisions of this section.”.
Part X

Amendment to the Finance Act, 2005

150. Amendment of Act 18 of 2005. – In the Finance Act, 2005, the Seventh Schedule shall be amended in the manner specified in the Seventh Schedule.
Part XI

Amendments to the Payment and Settlement Systems Act, 2007

151. Commencement of this Part. – The provisions of this Part shall come into force on such date as the Central Government may, by notification, appoint, and different dates may be appointed for different provisions of this Part.
152. Amendment of Act 51 of 2007. – In the Payment and Settlement Systems Act, 2007 (hereafter in this Part referred to as the principal Act), for Chapter II, the following Chapter shall be substituted, namely:-
CHAPTER II

Designated Authority

3. Designated authority. – (1) The Reserve Bank shall be the designated authority for the regulation and supervision of payment systems under this Act.
(2) The Reserve Bank shall exercise the powers, perform the functions and discharge the duties conferred on it under this Act through a Board to be known as the “Payments Regulatory Board”.
(3) The Board shall consist of the following members, namely:-
(a) the Governor of the Reserve Bank-Chairperson, ex officio;

(b) the Deputy Governor of the Reserve Bank in-charge of the Payment and Settlement Systems-Member, ex officio;

(c) one officer of the Reserve Bank to be nominated by the Central Board of the Reserve Bank-Member, ex officio; and

(d) three persons to be nominated by the Central Government-Members.

(4) The powers and functions of the Board referred to in sub-section (2), the time and venue of its meetings, the procedures to be followed in such meetings (including the quorum at such meetings) and other matters incidental thereto shall be such as may be prescribed.’.
153. Amendment of section 38. – In section 38 of the principal Act, in sub-section (2), in clause (a), for the words, brackets and figure “Committee constituted under sub-section (2)”, the words, brackets and figure “Board referred to in sub-section (2)” shall be substituted.
Part XII

Amendment to the Companies Act, 2013

154. Amendment of section 182. – In the Companies Act, 2013, in section 182-
(i) in sub-section (1),-

(a) first proviso shall be omitted;

(b) in the second proviso, –

(A) the word “further” shall be omitted;

(B) the words “and the acceptance” shall be omitted;

(ii) for sub-section (3), the following shall be substituted, namely:-

“(3) Every company shall disclose in its profit and loss account the total amount contributed by it under this section during the financial year to which the account relates.
(3A) Notwithstanding anything contained in sub-section (1), the contribution under this section shall not be made except by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account:
Provided that a company may make contribution through any instrument, issued pursuant to any scheme notified under any law for the time being in force, for contribution to the political parties.”.
Part XIII

Amendment to the Finance Act, 2016

155. Amendment of Act 28 of 2016. – In the Finance Act, 2016,-
(i) in section 50, for the words, figures and letters “with effect from the 1st day of April, 2017”, the words, figures and letters “and shall be deemed to have been substituted with effect from the 1st day of April, 2013” shall be substituted;
(ii) in section 197, clause (c) shall be omitted and shall be deemed to have been omitted with effect from the 1st day of June, 2016.
‘Part XIV

Amendments to certain Acts to Provide for Merger of Tribunals and Other Authorities and Conditions of Service of Chairpersons, Members, Etc.

A.-Preliminary

156. Commencement of this Part. – The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Part and any reference in any provision to the commencement of this Part shall be construed as a reference to the coming into force of that provision.
157. Definitions. – In this Part, unless the context otherwise requires,-
(a) “appointed day”, in relation to any provision of this Part, means such date as the Central Government may, by notification in the Official Gazette, appoint;

(b) “Authority” means the Authority, other than Tribunals and Appellate Tribunals, specified in the Eighth Schedule or Ninth Schedule, as the case may be;

(c) “notification” means a notification published in the Official Gazette;

(d) “Schedule” means the Eighth Schedule and Ninth Schedule appended to this Act.

B.-Amendments to the Industrial Disputes Act, 1947 and the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

158. Amendment of Act 14 of 1947. – In the Industrial Disputes Act, 1947,-
(a) in section 7A, after sub-section (1), the following sub-section shall be inserted, namely:-

“(1A) The Industrial Tribunal constituted by the Central Government under sub-section (1) shall also exercise, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, the jurisdiction, powers and authority conferred on the Tribunal referred to in section 7D of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.”;

(b) after section 7C, the following section shall be inserted, namely:-

“7D. Qualifications, terms and conditions of service of Presiding Officer. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation and removal and other terms and conditions of service of the Presiding Officer of the Industrial Tribunal appointed by the Central Government under sub-section (1) of section 7A, shall, after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, be governed by the provisions of section 184 of that Act:
Provided that the Presiding Officer appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
159. Amendment of Act 19 of 1952. – In the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952,-
(a) in section 2, for clause (m), the following clause shall be substituted, namely:-

‘(m) “Tribunal” means the Industrial Tribunal referred to in section 7 D;’;

(b) for section 7D, the following section shall be substituted, namely:-

“7D. Tribunal. – The Industrial Tribunal constituted by the Central Government under sub-section (1) of section 7A of the Industrial Disputes Act, 1947 shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, be the Tribunal for the purposes of this Act and the said Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act.”;
(c) sections 7E, 7F, 7G ,7H, 7M and 7N shall be omitted;

(d) for section 18A, the following section shall be substituted, namely:-

“18A. Authorities and inspector to be public servant. – The authorities referred to in section 7A and every inspector shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.”;
(e) in section 21, in sub-section (2), clause (a) shall be omitted.

C.-Amendments to The Copyright Act, 1957 and the Trade Marks Act, 1999.

160. Amendment of Act 14 of 1957. – In the Copy Right Act, 1957,-
(a) for the words “Copyright Board”, wherever they occur, the words “Appellate Board” shall be substituted;

(b) in section 2, after clause (a), the following clause shall be inserted, namely:-

‘(aa) “Appellate Board” means the Appellate Board referred to in section 11’;

(c) for section 11, the following section shall be substituted, namely:-

“11. Appellate Board. – The Appellate Board established under section 83 of the Trade Marks Act, 1999 shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, be the Appellate Board for the purposes of this Act and the said Appellate Board shall exercise the jurisdiction, powers and authority conferred on it by or under this Act.”;
(d) in section 12, sub-sections (3) and (4) shall be omitted;

(e) in section 78, in sub-section (2), clause (a) shall be omitted.”.

161. Amendment of Act 47 of 1999. – In the Trade Marks Act, 1999,-
(a) for the word “Chairman” or “Vice-Chairman”, wherever it occurs, the word “Chairperson” or “Vice-Chairperson” shall be substituted;

(b) in section 83, after the words “under this Act”, the words and figures “and under the Copyright Act, 1957” shall be inserted;

(c) after section 89, the following section shall be inserted, namely:-

“89A. Qualifications, terms and conditions of service of Chairperson, Vice-Chairperson and Member. – Notwithstanding anything in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the Chairperson, Vice-Chairperson and other Members of the Appellate Board appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:
Provided that the Chairperson, Vice-Chairperson and other Members appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017, had not come into force.”.
D.-Amendments To The Railway Claims Tribunal Act, 1987 and The Railways Act, 1989.

162. Amendment of Act 54 of 1987. – In the Railway Claims Tribunal Act, 1987,-
(a) in section 3, after the words “under this Act”, the words, letters and figures “and under Chapter VII of the Railways Act,1989” shall be inserted;

(b) after section 9, the following section shall be substituted, namely:-

“9A. Qualifications, terms and conditions of service of Chairman, Vice-Chairman and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the Chairman, Vice-Chairman and other Members of the Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:
Provided that the Chairman, Vice-Chairman and Members appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017, had not come into force.”;
(c) in section 13, after sub-section (IA), the following sub-section shall be inserted, namely:-

“(1B) The Claims Tribunal shall also exercise, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, the jurisdiction, powers and authority conferred on the Tribunal under Chapter VII of the Railways Act,1989.”;

(d) in section 15, for the words, brackets, figures and letter “sub-sections (1) and (1A)”, the words, brackets, figures and letters “sub-sections (1), (1A) and (1B)” shall be substituted;

(e) in section 24, in sub-section (1), for the words, brackets, figure and letter “or, as the case may be, the date of commencement of the provisions of sub-section (1A)”, at both the places where they occur, the words, brackets, figures and letters “or the date of commencement of the provisions of sub-section (1A), or, as the case may be, the date of commencement of the provisions of sub-section (1B)” shall be substituted.

163. Amendment of Act 24 of 1989. – In the Railways Act, 1989,-
(a) in section 2, for clause (40), the following clause shall be substituted, namely:-

‘(40) “Tribunal” means the Tribunal referred to in section 33;’;

(b) in Chapter VII, for the heading, the following heading shall be substituted, namely:-

“Tribunal”;

(c) for section 33, the following section shall be substituted, namely:-

“33. Tribunal. – The Railway Claims Tribunal established under section 3 of the Railway Claims Tribunal Act, 1987 shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, be the Tribunal for the purposes of this Act and the said Tribunal shall exercise the jurisdiction, authority and powers conferred on it by or under this Act.”;
(d) sections 34 and 35 shall be omitted;

(e) in section 48, in sub-section (2), clause (a) shall be omitted.

E.-Amendments to the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 and the Foreign Exchange Management Act, 1999.

164. Amendment of Act 13 of 1976. – In the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976,-
(a) in section 12, in sub-section (1), after clause (c), the following clause shall be inserted, namely:-

“(d) by the Adjudicating Authorities, Competent Authorities and the Qualifications, Special Director (Appeals) under the Foreign Exchange Management Act, 1999.”;

(b) after section 12, the following section shall be inserted, namely:-

“12A. Qualifications, terms and conditions of service of Chairperson, and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Chairperson and other members of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:
Provided that the Chairperson and other members appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
165. Amendment of Act 42 of 1999. – In the Foreign Exchange Management Act, 1999,-
(a) in section 2,-

(i) for clause (b), the following clause shall be substituted, namely:-

‘(b) “Appellate Tribunal” means the Appellate Tribunal referred to in section 18;’;

(ii) in clause (zc), for the word and figures “section 18”, the word and figures “section 17” shall be substituted;

(b) for section 18, the following section shall be substituted, namely:-

“18. Appellate Tribunal. – The Appellate Tribunal constituted under sub-section (1) of section 12 of the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976, shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act.”;

(c) section 20 shall be omitted;

(d) for section 21, the following section shall be substituted, namely:-

“21. Qualifications, for appointment of Special Director (Appeals). – A person shall not be qualified for appointment as a Special Director (Appeals) unless he-

(a) has been a member of the Indian Legal Service and has held a post in Grade I of that Service; or

(b) has been a member of the Indian Revenue Service and has held a post equivalent to a Joint Secretary to the Government of India.”;

(e) section 22 shall be omitted;

(f) for section 23, the following section shall be substituted, namely:-

“23. Terms and conditions of service of Special Director (Appeals). – The salary and allowances payable to and the other terms and conditions of service of the Special Director (Appeals) shall be such as may be prescribed.”;

(g) sections 24, 25 and 26 shall be omitted;

(h) for section 27, the following section shall be substituted, namely:-

“27. Staff of Special Director (Appeals). – (1) The Central Government shall provide the office of the Special Director (Appeals) with such officers and employees as it may deem fit.

(2) The officers and employees of the office of the Special Director (Appeals) shall discharge their functions under the general superintendence of the Special Director (Appeals).

(3) The salaries and allowances and other terms and conditions of service of the officers and employees of the office of the Special Director (Appeals) shall be such as may be prescribed.”;

(i) sections 29, 30 and 31 shall be omitted;

(j) in section 32,-

(i) for the words and brackets “Appellate Tribunal or the Special Director (Appeals), as the case may be”, at both the places where they occur, the words and brackets “Special Director (Appeals)” shall be substituted;

(ii) in sub-section (1), for the words and brackets “Appellate Tribunal or the Special Director (Appeals)”, the words and brackets “Special Director (Appeals)” shall be substituted;

(k) for section 33, the following section shall be substituted, namely:-

“33. Officers and employees, etc., to be public servant. – The Adjudicating Authority, Competent Authority and the Special Director (Appeals) and other officers and employees of the Special Director (Appeals) shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.”;

(l) in section 46, in sub-section (2),-

(i) in clause (e), for the words and brackets “Chairperson and other Members of the Appellate Tribunal and the Special Director (Appeals)”, the words and brackets “Special Director (Appeals)” shall be substituted;

(ii) in clause (f), for the words and brackets “Appellate Tribunal and the office of the Special Director (Appeals)”, the words and brackets “office of the Special Director (Appeals)” shall be substituted.

F.-Amendments to the Airports Authority of India Act, 1994 and the Control of National Highways (Land and Traffic) Act, 2002.

166. Amendment of Act 55 of 1994. – In the Airports Authority of India Act, 1994,-
(a) in section 28-I, in sub-section (1), after the words “under this Act”, the words, brackets and figures “and the Control of National Highways (Land and Traffic) Act, 2002” shall be inserted;

(b) after section 28J, the following section shall be inserted, namely:-

“28JA. Qualifications, terms and conditions of service of Chairperson. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Chairperson of the Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the Chairperson appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
167. Amendment of Act 13 of 2003. – In the Control of National Highways (Land and Traffic) Act, 2002,-
(a) in section 2, for clause (1), the following clause shall be substituted, namely:-

`(1) “Tribunal” means the Airport Appellate Tribunal referred to in sub section (1) of section 5;’;

(b) in Chapter II, for the heading, the following heading shall be substituted, namely:-

“Highways Administration And Tribunals, Etc.”;

(c) in section 5,-

(i) for sub-section (1), the following sub-section shall be substituted, namely:-

“(1) The Airport Appellate Tribunal established under section 28-I of the Airports Authority of India Act, 1994 shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, be the Tribunal for the purposes of this Act and the said Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act.”;

(ii) in sub-section (2), for the words, brackets and figure “shall also specify, in the notification referred to in sub-section (1)”, the words “shall specify, by notification in the Official Gazette”, shall be substituted;

(d) sections 6, 7, 8, 9, 10, 11, 12 and 13 shall be omitted;

(e) for section 44, the following section shall be substituted, namely:-

“44. Officers of Highways Administration to be public servant. – The officer or officers constituting the Highways Administration and any other officer authorised by such Administration under this Act, shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code.”;

(f) in section 45, for the words “the Presiding Officer of the Tribunal or any other officer of the Central Government or an officer or employee of the Tribunal”, the words “any other officer of the Central Government” shall be substituted;

(g) in section 50, in sub-section (2), clauses (b), (c), (d) and (e) shall be omitted.

G.-Amendments to The Telecom Regulatory Authority of India Act, 1997, The Information Technology Act, 2000 and the Airports Economic Regulatory Authority of India Act, 2008.

168. Amendment of Act 24 of 1997. – In the Telecom Regulatory Authority of India Act,1997,-
(a) in section 14, after clause (b), the following clause shall be inserted, namely:-

“(c) exercise jurisdiction, powers and authority conferred on-

(i) the Appellate Tribunal under the Information Technology Act, 2000; and

(ii) the Appellate Tribunal under the Airports Economic Regulatory Authority of India Act, 2008.”;

(b) after section 14G, the following section shall be substituted, namely:-

“14GA. Qualifications, terms and conditions of service of Chairperson and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Chairperson and other Members of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:
Provided that the Chairperson and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
169. Amendment of Act 21 of 2000. – In the Information Technology Act, 2000,-
(a) for the words “Cyber Appellate Tribunal”, wherever they occur, the words “Appellate Tribunal” shall be substituted;

(b) in section 2, in sub-section (1),-

(i) after clause (d), the following clause shall be inserted, namely:-

‘(da) “Appellate Tribunal” means the Appellate Tribunal referred to in sub-section (1) of section 48;’;

(ii) clause (n) shall be omitted;

(c) in section 48,-

(i) for the marginal heading, the following marginal heading shall be substituted, namely:-

“Appellate Tribunal”;

(ii) for sub-section (1), the following sub-section shall be substituted, namely:-

“(1) The Telecom Disputes Settlement and Appellate Tribunal established under section 14 of the Telecom Regulatory Authority of India Act, 1997 shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act.”

(iii) in sub-section (2), for the words, brackets and figure “shall also specify, in the notification referred io in sub-section (1)”, the words “shall specify, by notification” shall be substituted;

(d) sections 49, 50, 51, 52, 52A, 52B, 52C, 53, 54 and 56, shall be omitted;

(e) for section 82, the following section shall be substituted, namely:-

“82. Controller, Deputy Controller and Assistant Controller to be public servants. – The Controller, the Deputy Controller and the Assistant Controllers shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.”;

(f) in section 84, for the words “the Chairperson, Members, adjudicating officers and the staff of the Cyber Appellate Tribunal”, the words “and adjudicating officers” shall be substituted;

(g) in section 87, in sub-section (2), clauses (r), (s) and (t) shall be omitted.

170. Amendment of Act 27 of 2008. – In the Airports Economic Regulatory Authority of India Act, 2008,-
(a) in the long title, the words “and also to establish Appellate Tribunal to adjudicate disputes and dispose of appeals” shall be omitted;

(b) in section 2, for clause (d), the following clause shall be substituted, namely:-

‘(d) “Appellate Tribunal” means the Telecom Disputes Settlement and Appellate Tribunal referred to in section 17;’;

(c) in section 17,-

(i) for the marginal heading, the following marginal heading shall be substituted, namely:-

“Appellate Tribunal”

(ii) for the portion beginning with the words “The Central Government” and ending with words “Appellate Tribunal”, the words and figures “The Telecom Disputes Settlement and Appellate Tribunal established under section 14 of the Telecom Regulatory Authority of India Act, 1997 shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act” shall be substituted;

(d) sections 19, 20, 21, 22, 23, 24, 25, 26 and 27 shall be omitted;

(e) in section 51, in sub-section (2), clauses (i), (j) and (k) shall be omitted.

H.-Amendments to The Competition Act, 2002 and The Companies Act, 2013.

171. Amendment of Act 12 of 2003. – In the Competition Act, 2002,-
(a) in section 2, for clause (ba), the following clause shall be substituted, namely:-

‘(ba) “Appellate Tribunal” means the National Company Law Appellate Tribunal referred to in sub-section (1) of section 53A;’;

(b) in Chapter VIIIA, for the heading, the following heading shall be substituted, namely:-

“Appellate Tribunal”;

(c) for section 53A, the following section shall be substituted, namely:-

“53A. Appellate Tribunal. – The National Company Law Appellate Tribunal constituted under section 410 of the Companies Act, 2013 shall, on and from the commencement of Part XIV of Chapter VI of the Finance Act, 2017, be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall-

(a) hear and dispose of appeals against any direction issued or decision made or order passed by the Commission under sub-sections (2) and (6) of section 26, section 27, section 28, section 31, section 32, section 33, section 38, section 39, section 43, section 43A, section 44, section 45 or section 46 of this Act; and

(b) adjudicate on claim for compensation that may arise from the findings of the Commission or the orders of the Appellate Tribunal in an appeal against any finding of the Commission or under section 42A or under sub-section (2) of section 53Q of this Act, and pass orders for the recovery of compensation under section 53N of this Act.”;

(d) sections 53C, 53D, 53E, 53F, 53G, 53H, 53-I, 53J, 53K, 53L, 53M and 53R shall be omitted;

(e) in section 63, in sub-section (2), clauses (mb), (mc) and (md) shall be omitted.

172. Amendment of Act 18 of 2013. – In the Companies Act, 2013,-
(a) in section 410, for the words “for hearing appeals against the orders of the Tribunal”, the following shall be substituted, namely:-

“for hearing appeals against,-

(a) the order of the Tribunal under this Act; and

(b) any direction, decision or order referred to in section 53N of the Competition Act, 2002 in accordance with the provisions of that Act.”;

(b) after section 417, the following section shall be inserted, namely: –

“417A. Qualifications, terms and conditions of service of Chairperson and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the Chairperson and other Members of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the Chairperson and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
I.-Amendment to The Cinematograph Act, 1952

173. Amendment of Act 37 of 1952. – In the Cinematograph Act, 1952, after section 5D, the following section shall be inserted, namely:-
“5E. Qualifications, terms and conditions of service of Chairman and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Chairman and other members of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the Chairman and member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
J.-Amendments to The Income- Tax Act, 1961

174. Amendment of Act 43 of 1961. – In the Income Tax Act, 1962,-
(a) after section 245-O, the following section shall be inserted, namely:-

“245-OA. Qualifications, terms and conditions of service of Chairman, Vice-Chairman and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Chairman, Vice-Chairman and other Members of the Authority appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the Chairman, Vice-Chairman and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”;
(b) after section 252, the following section shall be inserted, namely:-

“252A. Qualifications, terms and conditions of service of President, Vice-President and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the President, Vice-President and other Members of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the President, Vice-President and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”;
K.-Amendment to The Customs Act, 1962

175. Amendment of Act 52 of 1962. – In the Customs Act, 1962, in section 129, after sub-section (6), the following sub-section shall be inserted, namely:-
“(7) Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the President, Vice-President or other Members of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the President. Vice-President and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
L.-Amendment to the Administrative Tribunals Act, 1985

176. Amendment of Act 13 of 1985. – In the Administrative Tribunals Act, 1985, after section 10A, the following section shall be inserted, namely:-
“10B. Qualifications, terms and conditions of service of Chairman and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Chairman and other Members of the Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the Chairman and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
M-Amendment to The Consumer Protection Act, 1986

177. Amendment of Act 68 of 1986. – In the Consumer Protection Act, 1986, after section 22D, the following section shall be inserted, namely:-
“22E. Qualifications, terms and conditions of service of President and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the President and other members of the National Commission appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the President and member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
N.-Amendment to The Securities and Exchange Board of India Act, 1992

178. Amendment of Act 15 of 1992. – In the Securities and Exchange Board of India Act, 1992, after section 15Q, the following section shall be inserted, namely:-
“15QA. Qualifications, terms and conditions of service of Presiding Officer and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Presiding Officer and other Members of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the Presiding Officer and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
O.-Amendments to The Recovery of Debts Due to Banks and Financial Institutions Act, 1993

179. Amendment of Act 51 of 1993. – In the Recovery of Debts due to Banks and Financial Institutions Act, 1993,-
(a) after section 6, the following section shall be inserted, namely:-

“6A. Qualifications, terms and conditions of service of Presiding Officer. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Presiding Officer of the Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the Presiding Officer appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”;
(b) after section 15, the following section shall be inserted, namely:-

“15A. Qualifications, terms and conditions of service of Chairperson. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the terms and conditions of service of the Chairperson of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:
Provided that the Chairperson appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
P.-Amendment to The Electricity Act, 2003

180. Amendment of Act 36 of 2003. – In the Electricity Act, 2003, after section 47, the following section shall be inserted, namely:-
“117A. Qualifications, terms and conditions of service of Chairperson and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Chairperson and other Members of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the Chairperson and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
Q.-Amendment to the Armed Forces Tribunal Act, 2007

181. Amendment of Act 55 of 2007. – In the Armed Force Tribunal Act, 2007, after section 9, the following section shall be inserted, namely: –
“9A. Qualifications, terms and conditions of service of Chairperson and Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and terms and conditions of service of the Chairperson and other Members of the Appellate Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the Chairperson and Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
R.-Amendment to The National Green Tribunal Act, 2010

182. Amendment of Act 19 of 2010. – In the National Green Tribunal Act, 2010, after section 10, the following section shall be inserted, namely:-
“10A. Qualifications, terms and conditions of service of Chairperson, Judicial Member and Expert Member. – Notwithstanding anything contained in this Act, the qualifications, appointment, term of office, salaries and allowances, resignation, removal and other terms and conditions of service of the Chairperson, Judicial Member and Expert Member of the Tribunal appointed after the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of section 184 of that Act:

Provided that the Chairperson, Judicial Member and Expert Member appointed before the commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to be governed by the provisions of this Act, and the rules made thereunder as if the provisions of section 184 of the Finance Act, 2017 had not come into force.”.
S.-Conditions of Service of Chairperson and Members of Tribunals, Appellate Tribunals and Other Authorities

183. Application of section 184. – Notwithstanding anything to the contrary contained in the provisions of the Acts specified in column (3) of the Eighth Schedule, on and from the appointed day, provisions of section 184 shall apply to the Chairperson, Vice-Chairperson, Chairman, Vice- Chairman, President, Vice-President, Presiding Officer or Member of the Tribunal, Appellate Tribunal or, as the case may be, other Authorities as specified in column (2) of the said Schedule:
Provided that the provisions of section 184 shall not apply to the Chairperson, Vice-Chairperson, Chairman, Vice-Chairman, President, Vice-President, Presiding Officer or, as the case may be, Member holding such office as such immediately before the appointed day.
184. Qualifications, appointment, term and conditions of service, salary and allowances, etc., of Chairperson, Vice-Chairperson and Members, etc., of the Tribunal, Appellate Tribunal and other Authorities. – (1) The Central Government may, by notification, make rules to provide for qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Chairperson, Vice-Chairperson, Chairman, Vice-Chairman, President, Vice-President, Presiding Officer or Member of the Tribunal, Appellate Tribunal or, as the case may be, other Authorities as specified in column (2) of the Eighth Schedule:
Provided that the Chairperson, Vice-Chairperson, Chairman, Vice-Chairman, President, Vice-President, Presiding Officer or Member of the Tribunal, Appellate Tribunal or other Authority shall hold office for such term as specified in the rules made by the Central Government but not exceeding five years from the date on which he enters upon his office and shall be eligible for reappointment:
Provided further that no Chairperson, Vice-Chairperson, Chairman, Vice-Chairman, President, Vice-President, Presiding Officer or Member shall hold office as such after he has attained such age as specified in the rules made by the Central Government which shall not exceed,-
(a) in the case of Chairperson, Chairman or President, the age of seventy years;

(b) in the case of Vice-Chairperson, Vice-Chairman, Vice-President, Presiding Officer or any other Member, the age of sixty-seven years:

(2) Neither the salary and allowances nor the other terms and conditions of service of Chairperson, Vice-Chairperson, Chairman, Vice-Chairman, President, Vice-President, Presiding Officer or Member of the Tribunal, Appellate Tribunal or, as the case may be, other Authority may be varied to his disadvantage after his appointment.
T.-Miscellaneous

185. Transitional provisions. – (1) Any person appointed as the Chairperson or Chairman, President or Vice-Chairperson or Vice-Chairman, Vice-President or Presiding Officer or Member of the Tribunals, Appellate Tribunals, or as the case may be, other Authorities specified in column (2) of the Ninth Schedule and holding office as such immediately before the appointed day, shall on and from the appointed day, cease to hold such office and such Chairperson or Chairman, President, Vice-Chairperson or Vice-Chairman, Vice-President or Presiding officer or Member shall be entitled to claim compensation not exceeding three months’ pay and allowances for the premature termination of term of their office or of any contract of service.
(2) The officers and other employees of the Tribunals, Appellate Tribunals and other Authorities specified in column (2) of the Ninth Schedule appointed on deputation, before the appointed day, shall, on and from the appointed day, stand reverted to their parent cadre, Ministry or Department.
(3) Every officer or other employee of the Tribunal, Appellate Tribunal and other Authorities specified in column (2) of the Ninth Schedule employed on regular basis, by such Tribunal, Appellate Tribunal or other Authorities shall become, on and from the appointed day, the officer and other employee, of the corresponding Tribunal, Appellate Tribunal or other Authorities specified in column (3) of the said Schedule with same rights and privileges as to pension, gratuity and other like benefits as would have been admissible to him if he had continued to serve the Tribunal, Appellate Tribunal or other Authorities specified in column (2) of the said Schedule until his employment is duly terminated or until his remuneration, terms and conditions of employment are duly altered by such corresponding Tribunal, Appellate Tribunal or other Authorities, as the case may be, specified in column (3) of the Ninth Schedule or until the expiry of a period of one year from the appointed day if such officer or other employee opts not to continue to be the officer or other employee of such Tribunal, Appellate Tribunal or other Authoritieswithin such period.
(4) Any appeal, application or proceeding pending before the Tribunal, Appellate Tribunal or other Authorities specified in column (2) of the Ninth Schedule, before the appointed day, shall stand transferred to the corresponding Tribunal, Appellate Tribunal or other Authorities specified in column (3) of the said Schedule and the said Tribunal, Appellate Tribunal or other Authority shall, on and from the appointed day, deal with de novo or from the stage at which such appeal, application or proceeding stood before the date of their transfer and shall dispose them in accordance with the provisions of the Act specified in column (2) of the said Schedule.
(5) The balance of all monies received by, or advanced to the Tribunal, Appellate Tribunal or other Authorities specified in column (2) of the Ninth Schedule and not spent by it before the appointed day, shall, on and from the appointed day, stand transferred to an vest in the Central Government which shall be utilised for the purposes stated in sub-section (7).
(6) All property of whatever kind owned by, or vested in, the Tribunal, Appellate Tribunal or other Authorities specified in column (2) of the Ninth Schedule before the appointed day, shall stand transferred to, on and from the appointed day, and shall vest in the Central Government.
(7) All liabilities and obligations of whatever kind incurred by the Tribunal, Appellate Tribunal or other Authorities specified in column (2) of the Ninth Schedule and subsisting immediately before the appointed day, shall, on and from the appointed day, be deemed to be the liabilities or obligations, as the case may be, of the corresponding Tribunal, Appellate Tribunal or other Authorities specified in column (3) of the Ninth Schedule; and any proceeding or cause of action, pending or existing immediately before the appointed day by or against the Tribunal, Appellate Tribunal or other Authorities specified in column (2) of the Ninth Schedule in relation to such liability or obligation may, on and from the appointed day, be continued or enforced by or against the corresponding Tribunal, Appellate Tribunal or other Authority specified in column (3) of the Ninth Schedule.
186. General Power to make rules. – Without prejudice to any other power to make rules contained elsewhere in this Part, the Central Government may, by notification, make rules generally to carry out the provisions of this Part.
187. Power to amend Eighth Schedule. – (1) If the Central Government is satisfied that it is necessary or expedient so to do, it may by notification published in the Official Gazette, amend the Eighth Schedule and thereupon the said Schedule shall be deemed to have been amended accordingly.
(2) A copy of every notification issued under sub-section (1) shall be laid before each House of Parliament as soon as may be after it is issued.
188. Rules to be laid before Parliament. – Every rule made under this Part shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
189. Removal of difficulties. – (1) If any difficulty arises in giving effect to the provisions of this Part, the Central Government, may by general or special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Part as appear to it to be necessary or expedient for removing the difficulty.
(2) No order under sub-section (1) shall be made after the expiry of three years from the appointed day.
(3) Every order made under this section shall, as soon as may be after it is made, be laid before each Houses of Parliament.’.

Lawline

The First Schedule

(See section 2)

Part I

Income-Tax

Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or 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,-

Rates of income-tax

(1) where the total income does not exceed Rs. 2,50,000

Nil;

(2) where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000

10 per cent. of the amount by which the total income exceeds Rs. 2,50,000;

(3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000

Rs. 25,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;

(4) where the total income exceeds Rs. 10,00,000

Rs. 1,25,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000.

(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 eighty years at any time during the previous year,-

Rates of income-tax

(1)

where the total income does not exceed Rs. 3,00,000

Nil;

(2)

where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000

10 per cent. of the amount by which the total income exceeds Rs. 3,00,000;

(3)

where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000

Rs. 20,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;

(4)

where the total income exceeds Rs. 10,00,000

Rs. 1,20,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000.

(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,-

Rates of income-tax

(1) where the total income does not exceed Rs. 5,00,000 Nil;
(2) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;
(3) where the total income exceeds Rs. 10,00,000 Rs. 1,00,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every individual or Hindu undivided family or 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, having a total income exceeding one crore rupees, be increased by a surcharge for the purpose of the Union calculated at the rate of fifteen per cent. of such income-tax:Provided that in the case of persons mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph B

In the case of every co-operative society,-

Rates of income-tax

(1)

where the total income does not exceed Rs.10,000

10 per cent. of the total income;

(2)

where the total income exceeds Rs.10,000 but does not exceed Rs. 20,000

Rs.1,000 plus 20 per cent. of the amount by which the total income exceeds Rs.10,000;

(3)

where the total income exceeds Rs. 20,000

Rs. 3,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 20,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every co-operative society, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:Provided that in the case of every co-operative society mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph C

In the case of every firm,-
Rate of income-tax
On the whole of the total income 30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:Provided that in the case of every firm mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph D

In the case of every local authority,-
Rate of income-tax
On the whole of the total income 30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every local authority, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:Provided that in the case of every local authority mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph E

In the case of Company,-
Rate of income-tax

I. In the case of a domestic company,-

(i) where its total turnover or the gross receipt in the previous year 2014-15 does not exceed five crore rupees; 29 per cent. of the total Income
(ii) other than that referred to in item (i) 30 per cent. of the total Income

II. In the case of a company other than a domestic company,-(i) on so much of the total income as consists of,-

(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or
(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government 50 per cent.;
(ii) on the balance, if any, of the total income Surcharge on income-tax 40 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, be increased by a surcharge for the purposes of the Union calculated,-

(i) in the case of every domestic company,-

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of seven per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such income-tax;

(ii) in the case of every company other than a domestic company,-

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:

Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

Part II

Rates for Deduction of Tax at Source in Certain Cases

In every case in which under the provisions of sections 193, 194, 194A, 194B, 194BB, 194D , 194LBA, 194LBB, 194LBC and 195 of the Income-tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to the deduction at the following rates:-

Rate of income-tax

1. In the case of a person other than a company-
(a) where the person is resident in India-
(i) on income by way of interest other than “Interest on securities”

10 per cent.;

(ii) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

(iii) on income by way of winnings from horse races

30 per cent.;

(iv) on income by way of insurance commission

5 per cent.;

(v) on income by way of interest payable on-

10 per cent.;

(A) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;
(B) any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;
(C) any security of the Central or State Government;
(vi) on any other income

10 per cent.;

(b) where the person is not resident in India-
(i) in the case of a non-resident Indian-
(A) on any investment income

20 per cent.;

(B) on income by way of long-term capital gains referred to in section 115E or sub-clause (iii) of clause (c) of sub-section (1) of section 112

10 per cent.;

(C) on income by way of short-term capital gains referred to in section 111A

15 per cent.;

(D) on other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of section 10]

20 per cent.;

(E) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 194LB or section 194LC)

20 per cent.;

(F) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India

10 per cent.;

(G) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(i)(F)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10 per cent.;

(H) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10 per cent.;

(I) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

(J) on income by way of winnings from horse races

30 per cent.;

(K) on the whole of the other income

30 per cent.;

(ii) in the case of any other person-
(A) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 194LB or section 194LC)

20 per cent.;

(B) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India

10 per cent.;

(C) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(ii)(B)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10 per cent.;

(D) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10 per cent.;

(E) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

(F) on income by way of winnings from horse races

30 per cent.;

(G) on income by way of short-term capital gains referred to in section 111A

15 per cent.;

(H) on income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of section 112

10 per cent.;

(I) on income by way of other long-term capital gains [not being long-term capital gains referred to in clauses (33),(36) and (38) of section 10]

20 per cent.;

(J) on the whole of the other income

30 per cent.;

2. In the case of a company-
(a) where the company is a domestic company-
(i) on income by way of interest other than “Interest on securities”

10 per cent.;

(ii) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

(iii) on income by way of winnings from horse races

30 per cent.;

(iv) on any other income

10 per cent.;

(b) where the company is not a domestic company-
(i) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

(ii) on income by way of winnings from horse races

30 per cent.;

(iii) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 194LB or section 194LC)

20 per cent.;

(iv) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India

10 per cent.;

(v) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(iv)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy-
(A) where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976

50 per cent.;

(B) where the agreement is made after the 31st day of March, 1976

10 per cent.;

(vi) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy-
(A) where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976

50 per cent.;

(B) where the agreement is made after the 31st day of March, 1976

10 per cent.;

(vii) on income by way of short-term capital gains referred to in section 111A

15 per cent.;

(viii) on income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of section 112

10 per cent.;

(ix) on income by way of other long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of section 10]

20 per cent.;

(x) on any other income

40 per cent.;

Explanation. – For the purposes of item 1(b)(i) of this Part, “investment income” and “non-resident Indian” shall have the meanings assigned to them in Chapter XII-A of the Income-tax Act.

Surcharge on income-tax

The amount of income-tax deducted in accordance with the provisions of-

(i) item 1 of this Part, shall be increased by a surcharge, for the purposes of the Union,-

(a) in the case of every individual or Hindu undivided family or 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, being a non-resident, calculated,-

I. at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds fifty lakh rupees but does not exceed one crore rupees;

II. at the rate of fifteen per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees; and

(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve per cent., where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees;

(ii) Item 2 of this Part shall be increased by a surcharge, for the purposes of the Union, in the case of every company other than a domestic company, calculated,-

(a) at the rate of two per cent. of such income-tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees; and

(b) at the rate of five per cent. of such income-tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees.

Part III

Rates for Charging Income-Tax in Certain Cases, Deducting Income-Tax from Income Chargeable under the Head “Salaries” and Computing “Advance Tax”

In cases in which income-tax has to be charged under sub-section (4) of section 172 of the Income-tax Act or sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the said Act or deducted from, or paid on, from income chargeable under the head “Salaries” under section 192 of the said Act or in which the “advance tax” payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, “advance tax” [not being “advance tax” in respect of any income chargeable to tax under Chapter XII or Chapter XII-A or income chargeable to tax under section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act at the rates as specified in that Chapter or section or surcharge, wherever applicable, on such “advance tax” in respect of any income chargeable to tax under section 115A or section 115AB or section 115AC or section 115ACA or section 115AD or section 115B or section 115BA or section 115BB or section 115BBA or section 115BBC or section 115BBD or section 115BBDA or section 115BBE or section 115BBF or section 115BBG or section 115E or section 115JB or section 115JC] shall be charged, deducted or computed at the following rate or rates:-

Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or 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,-

Rates of income-tax

(1) where the total income does not exceed Rs. 2,50,000 Nil;
(2) where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 5 per cent. of the amount by which the total income exceeds Rs. 2,50,000;
(3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 Rs. 12,500 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;
(4) where the total income exceeds Rs. 10,00,000 Rs. 1,12,500 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000.

(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 eighty years at any time during the previous year,-

Rates of income-tax

(1) where the total income does not exceed Rs. 3,00,000 Nil;
(2) where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000 5 per cent. of the amount by which the total income exceeds Rs. 3,00,000
(3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 Rs. 10,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;
(4) where the total income exceeds Rs. 10,00,000 Rs. 1,10,000 plus 30 percent. of the amount by which the total income exceeds Rs. 10,00,000

(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,-

Rates of income-tax

(1) where the total income does not exceed Rs. 5,00,000 Nil;
(2) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;
(3) where the total income exceeds Rs. 10,00,000 Rs. 1,00,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every individual or Hindu undivided family or 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,-

(a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax; and

(b) having a total income exceeding one crore rupees, at the rate of fifteen per cent. of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding,-

(a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph B

In the case of every co-operative society,-

Rates of income-tax

(1) where the total income does not exceed Rs. 10,000 10 per cent. of the total income;
(2) where the total income exceeds Rs. 10,000 but does not exceed Rs. 20,000 Rs. 1,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 10,000;
(3) where the total income exceeds Rs. 20,000 Rs. 3,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 20,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every co-operative society, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:Provided that in the case of every co-operative society mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph C

In the case of every firm,-
Rate of income-tax
On the whole of the total income 30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:Provided that in the case of every firm mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph D

In the case of every local authority,-
Rate of income-tax
On the whole of the total income 30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every local authority, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:Provided that in the case of every local authority mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as incometax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph E

In the case of a company,-
Rate of income-tax

I. In the case of a domestic company,-

(i) where its total turnover or the gross receipt in the previous year 2015-16 does not exceed fifty crore rupees; 25 per cent. of total income.;
(ii) other than that referred to in item (i) 30 per cent. of the total income.;

II. In the case of a company other than a domestic company-

    • (i) on so much of the total income as consists of,-
(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or
(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976,
and where such agreement has, in either case, been approved by the Central Government 50 per cent.;
(ii) on the balance, if any, of the total income 40 per cent.;

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, be increased by a surcharge for the purposes of the Union, calculated,-

(i) in the case of every domestic company,-

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of seven per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such income-tax;

(ii) in the case of every company other than a domestic company,-

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:

Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

Part IV

[See section 2 (13)(c)]

Rules for Computation of Net Agricultural Income

Rule 1. – Agricultural income of the nature referred to in sub-clause (a) of clause (1A) of section 2 of the Income-tax Act shall be computed as if it were income chargeable to income-tax under that Act under the head “Income from other sources” and the provisions of sections 57 to 59 of that Act shall, so far as may be, apply accordingly:Provided that sub-section (2) of section 58 shall apply subject to the modification that the reference to section 40A therein shall be construed as not including a reference to sub-sections (3), (3A) and (4) of section 40A.Rule 2. – Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1A) of section 2 of the Income-tax Act [other than income derived from any building required as a dwelling-house by the receiver of the rent or revenue of the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that Act under the head “Profits and gains of business or profession” and the provisions of sections 30, 31, 32, 36, 37, 38, 40, 40A [other than sub-sections (3), (3A) and (4) thereof], 41, 43, 43A, 43B and 43C of the Income-tax Act shall, so far as may be, apply accordingly.Rule 3. – Agricultural income of the nature referred to in sub-clause (c) of clause (1A) of section 2 of the Income-tax Act, being income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head “Income from house property” and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly.Rule 4. – Notwithstanding anything contained in any other provisions of these rules, in a case-

(a) where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed in accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent. of such income shall be regarded as the agricultural income of the assessee;

(b) where the assessee derives income from sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe, re-milled crepe, smoked blanket crepe or flat bark crepe) or technically specified block rubbers manufactured or processed by him from rubber plants grown by him in India, such income shall be computed in accordance with rule 7A of the Income-tax Rules, 1962, and sixty-five per cent. of such income shall be regarded as the agricultural income of the assessee;

(c) where the assessee derives income from sale of coffee grown and manufactured by him in India, such income shall be computed in accordance with rule 7B of the Income-tax Rules, 1962, and sixty per cent. or seventy-five per cent., as the case may be, of such income shall be regarded as the agricultural income of the assessee.

Rule 5. – Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.Rule 6. – Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income:Provided that where the assessee is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.Rule 7. – Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.Rule 8. – (1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 2017, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 2009 or the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016, is a loss, then, for the purposes of sub-section (2) of section 2 of this Act,-

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2009, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2010, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016,

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2011, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2012, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2014, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2015 or the 1st day of April, 2016,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2015, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2016,

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2016, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 2017.

(2) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 2018, or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017, is a loss, then, for the purposes of sub-section (10) of section 2 of this Act,-

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2010, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2011, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017,

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2012, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2014, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2015, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2016 or the 1st day of April, 2017,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2016, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2017,

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2017,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 2018.(3) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2).(4) Notwithstanding anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in the First Schedule to the Finance (No. 2) Act, 2009 (33 of 2009) or the First Schedule to the Finance Act, 2010 (14 of 2010) or the First Schedule to the Finance Act, 2011 (8 of 2011) or the First Schedule to the Finance Act, 2012 (23 of 2012) or the First Schedule to the Finance Act, 2013 (17 of 2013) or the First Schedule to the Finance (No. 2) Act, 2014 (25 of 2014) or the First Schedule to the Finance Act, 2015 (20 of 2015) or the First Schedule to the Finance Act, 2016 (28 of 2016) shall be set off under sub-rule (1) or, as the case may be, sub-rule (2).Rule 9. – Where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.Rule 10. – The provisions of the Income-tax Act relating to procedure for assessment (including the provisions of section 288A relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income.Rule 11. – For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.

The Second Schedule

[See section 110 (a)]

In the First Schedule to the Customs Tariff Act,-

(a) in Chapter 20, for the entry in column (4) occurring against tariff item 2008 19 10, the entry “45%” shall be substituted;

(b) in Chapter 84, for the entry in column (4) occurring against tariff item 8421 99 00, the entry “10%” shall be substituted.

The Third Schedule

[See section 110(b)]

In the First Schedule to the Customs Tariff Act,-

Tariff item

Description of goods

Unit

Rate of Duty Standard

Preferential

(1)

(2)

(3)

(4)

(5)

(1) in Chapter 11, for tariff item 1106 10 00 and the entries relating thereto, the following shall be substituted, namely:-

“1106 10 – of the dried leguminous vegetables of heading 0713
1106 10 10 — Guar Meal kg. 30%
1106 10 90 — Others kg. 30% -“;

(2) in Chapter 13, tariff items 1302 32 10 and 1302 32 20 and the entries relating thereto shall be omitted;(3) in Chapter 15, after tariff item 1511 90 20 and the entries relating thereto, the following tariff item and entries shall be inserted, namely:-

“1511 90 30

– Refined bleached deodorised palm stearin

kg.

100%

90%”;

(4) in Chapter 38,-

(a) in heading 3823, for sub-heading 3823 11 and tariff items 3823 11 11 to 3823 11 90 and the entries relating thereto, the following shall be substituted, namely:-

“3823 11 00

– Stearic acid

kg.

30%

-“;

(b) in heading 3824, against tariff item 3824 88 00, in column (2), for the words “hexa-hepta-“, the words “hexa-, hepta-” shall be substituted;

(5) in Chapter 39, in heading 3904, for sub-heading 3904 00 and tariff items 3904 10 10 and 3904 10 90, sub-heading 3904 21, tariff items 3904 21 10 and 3904 21 90 and sub-heading 3904 22, tariff items 3904 22 10 and 3904 22 90 and the entries relating thereto, the following shall be substituted, namely:-#

“3904 10

– Poly (vinyl chloride), not mixed with any other substances:

3904 10 10

— Emulsion grade PVC resin / PVC Paste resin/ PVC dispersion resin

kg.

10%

3904 10 20

— Suspension grade PVC resin

kg.

10%

3904 10 90

— Other

kg.

10%

– Other poly (vinyl chloride), mixed with other substances:

3904 21 00

– Non-plasticised

kg.

10%

3904 22 00

– Plasticised

kg.

10%

-“;

(6) in Chapter 44, against tariff item 4401 22 00, in column (2), for the words “agglomerated, in logs”, the words “agglomerated in logs” shall be substituted;(7) in Chapter 48, in Note 4, for the word “apply”, the word “applies” shall be substituted;(8) in Chapter 54, tariff items 5402 59 10 and 5402 69 30 and the entries relating thereto shall be omitted;(9) in Chapter 63, in sub-heading Note, for the words “from fabrics”, the words “from warp knit fabrics” shall be substituted;(10) in Chapter 98,-

(i) in Chapter Note 4, for clauses (b) and (c), the following clauses shall be substituted, namely:-

“(b) alcoholic beverages; and

(c) tobacco and manufactured products thereof.”;

(ii) for the entry in column (2) occurring against heading 9804, the entry “All dutiable goods imported for personal use” shall be substituted.

The Fourth Schedule

(See section 111)

In the Second Schedule to the Customs Tariff Act, after Sl. No. 23B and the entries relating thereto, the following Sl. No. and entries shall be inserted, namely:-

(1)

(2)

(3)

(4)

“23C

2606 00 90

Other aluminium ores and concentrates

30%”.

The Fifth Schedule

(See section 119)

In the First Schedule to the Central Excise Tariff Act, in Chapter 24,-

(a) for the entry in column (4) occurring against tariff items 2402 10 10 and 2402 10 20, the entry “12.5% or Rs.4006 per thousand, whichever is higher” shall be substituted;

(b) for the entry in column (4) occurring against tariff item 2402 90 10, the entry “Rs.4006 per thousand” shall be substituted;

(c) for the entry in column (4) occurring against tariff items 2402 90 20 and 2402 90 90, the entry “12.5% or Rs.4006 per thousand, whichever is higher” shall be substituted.

The Sixth Schedule

(See section 129)

Sl. No.

Provisions of the Service Tax (Determination of Value) Rules, 2006 to be amended

Amendment

Period of effect of amendment

(1)

(2)

(3)

(4)

1.

Rule 2A as inserted by notification number G.S.R. 375(E), dated the 22nd May, 2007 [29/2007-Service Tax, dated the 22nd May, 2007].

In the Service Tax (Determination of Value) Rules, 2006, in rule 2A,-

(I) in sub-rule (1), in clause (i), after the words “value of transfer of property in goods”, the words “or in goods and land or undivided share of land, as the case may be,” shall be inserted;

1st day of July, 2010 to 30th day of June, 2012 (both days inclusive).

(II) after sub-rule (1), the following sub-rule shall be inserted, namely:-

1st day of July, 2010 to 30th day of June, 2012 (both days inclusive).

“(2) Where the value has not been determined under sub-rule (1) and the gross amount charged includes the value of goods as well as land or undivided share of land, the service tax shall be payable on twenty-five per cent. of the gross amount charged for the works contract, subject to the following conditions, namely:-

(i) the Cenvat Credit of duty paid on inputs or capital goods or the CENVAT Credit of service tax on input services, used for providing such taxable service, has not been taken under the provisions of the Cenvat Credit Rules, 2004;

(ii) the service provider has not availed the benefit under the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2003-Service Tax, dated the 20th June, 2003 [G.S.R. 503(E), dated the 20th June, 2003].

Explanation. – For the purposes of this sub-rule, the gross amount charged shall include the value of goods and materials supplied or provided or used for providing the taxable service by the service provider.”.

2.

Rule 2A as substituted by notification number G.S.R. 431(E), dated the 6th June, 2012. [24/2012- Service Tax, dated the 6th June, 2012].

In the Service Tax (Determination of Value) Rules, 2006, in rule 2A,-

(I) in clause (i), after the words “value of property in goods”, the words “or in goods and land or undivided share of land, as the case may be,” shall be inserted;

1st day of July, 2012 onwards.

(II) in clause (ii), in sub-clause (A),-

1st day of July, 2012 to 28th day of February, 2013 (both days inclusive).

(a) the following proviso shall be inserted, namely:-

“Provided that where the amount charged for works contract includes the value of goods as well as land or undivided share of land, the service tax shall be payable on twenty-five per cent. of the total amount charged for the works contract.”;

(b) for the proviso, the following provisos shall be substituted, namely:-

1st day of March, 2013 to 7th day of May, 2013 (both days inclusive).

“Provided that where the amount charged for works contract includes the value of goods as well as land or undivided share of land, the service tax shall be payable on thirty per cent. of the total amount charged for the works contract:

Provided further that in case of works contract for construction of residential units having carpet area up to 2000 square feet or where the amount charged per residential unit from service recipient is less than rupees one crore and the amount charged for the works contract includes the value of goods as well as land or undivided share of land, the service tax shall be payable on twenty-five per cent. of the total amount charged for the works contract.”;

(c) for the provisos, the following provisos shall be substituted, namely:-

8th day of May, 2013 to 31st day of March, 2016 (both days inclusive).

“Provided that where the amount charged for works contract includes the value of goods as well as land or undivided share of land, the service tax shall be payable on thirty per cent. of the total amount charged for the works contract:

Provided further that in case of works contract for construction of residential units having carpet area up to 2000 square feet and where the amount charged per residential unit from service recipient is less than rupees one crore and the amount charged for the works contract includes the value of goods as well as land or undivided share of land, the service tax shall be payable on twenty-five per cent. of the total amount charged for the works contract.”;

(d) for the provisos, the following proviso shall be substituted, namely:-

1st day of April, 2016 onwards.

“Provided that where the amount charged for works contract includes the value of goods as well as land or undivided share of land, the service tax shall be payable on thirty per cent. of the total amount charged for the works contract.”.

The Seventh Schedule

(See section 150)

In the Seventh Schedule to the Finance Act, 2005,-

(a) for the entry in column (4) occurring against tariff item 2402 20 10, the entry “Rs. 311 per thousand” shall be substituted;

(b) for the entry in column (4) occurring against tariff item 2402 20 20, the entry “Rs. 541 per thousand” shall be substituted;

(c) for the entry in column (4) occurring against tariff item 2402 20 30, the entry “Rs. 311 per thousand” shall be substituted;

(d) for the entry in column (4) occurring against tariff item 2402 20 40, the entry “Rs. 386 per thousand” shall be substituted;

(e) for the entry in column (4) occurring against tariff item 2402 20 50, the entry “Rs. 541 per thousand” shall be substituted;

(f) for the entry in column (4) occurring against tariff item 2402 20 90, the entry “Rs. 811 per thousand” shall be substituted;

(g) for the entry in column (4) occurring against tariff items 2403 99 10, 2403 99 30 and 2403 99 90, the entry “12%” shall be substituted.

The Eighth Schedule

[See sections 183 and 184]

S.No.

Tribunal/Appellate Tribunal/Board/Authority

Acts

(1)

(2)

(3)

1.

Industrial Tribunal constituted by the Central Government.

The Industrial Disputes Act, 1947 (14 of 1947)

2.

Income-Tax Appellate Tribunal

The Income -Tax Act, 1961 (43 of 1961)

3.

Customs, Excise and Service Tax Appellate Tribunal

The Customs Act, 1962 (52 of 1962)

4.

Appellate Tribunal.

The Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976 (13 of 1976)

5.

Central Administrative Tribunal

The Administrative Tribunals Act, 1985 (13 of 1985)

6.

Railway Claims Tribunal

The Railway Claims Tribunal Act, 1987 (54 of 1987)

7.

Securities Appellate Tribunal

The Securities and Exchange Board of India Act, 1992 (15 of 1992)

8.

Debts Recovery Tribunal

The Recovery of Debts due to Banks and Financial Institutions Act, 1993 (51 of 1993)

9.

Debts Recovery Appellate Tribunal

The Recovery of Debts due to Banks and Financial Institutions Act, 1993 (51 of 1993)

10.

Airport Appellate Tribunal

The Airport Authority of India Act, 1994 (55 of 1994)

11.

Telecom Disputes Settlement and Appellate Tribunal

The Telecom Regulatory Authority of India Act, 1997 (24 of 1997)

12.

Appellate Board

The Trade Marks Act, 1999 (47 of 1999)

13.

National Company Law Appellate Tribunal

The Companies Act, 2013 (18 of 2013)

14.

Authority for Advance Ruling

The Income Tax Act, 1961 (43 of 1961)

15.

Film Certification Appellate Tribunal

The Cinematograph Act, 1952 (37 of 1952)

16.

National Consumer Disputes Redressal Commission

The Consumer Protection Act, 1986 (68 of 1986)

17.

Appellate Tribunal for Electricity

The Electricity Act, 2003 (36 of 2003)

18.

Armed Forces Tribunal

The Armed Forces Act, 2007 (55 of 2007)

19.

National Green Tribunal

The National Green Tribunal Act, 2010 (19 of 2010).

The Ninth Schedule

[See section 185]

Sl.No.

Tribunal/ Appellate Tribunal under the Acts

Tribunal/Appellate Tribunal/Authority to exercise the jurisdiction under the Acts.

(1)

(2)

(3)

1.

The Employees Provident Fund Appellate Tribunal under the Employees Provident Funds and Miscellaneous Provisions Act, 1952.

The Industrial Tribunal constituted by the Central Government under the Industrial Disputes Act, 1947.

2.

The Copyright Board under the Copyright Act, 1957.

The Intellectual Property Appellate Board under the Trade Marks Act, 1999.

3.

The Railway Rates Tribunal under the Railways Act, 1989.

The Railway Claims Tribunal under the Railway Claims Tribunal Act, 1987.

4.

The Appellate Tribunal for Foreign Exchange under the Foreign Exchange Management Act, 1999.

The Appellate Tribunal under the Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976.

5.

The National Highways Tribunal under the Control of National Highways (Land and Traffic) Act, 2002.

The Airport Appellate Tribunal under the Airport Authority of India Act, 1994.

6.

(A) The Cyber Appellate Tribunal under the Information Technology Act, 2000.

The Telecom Disputes

(B) The Airports Economic Regulatory Authority Appellate Tribunal under the Airports Economic Regulatory Authority of India Act, 2008.

Settlement and Appellate Tribunal under the Telecom Regulatory Authority of India Act, 1997.

7.

The Competition Appellate Tribunal under the Competition Act, 2002.

The National Company Law Appellate Tribunal under the Companies Act, 2013.”