Finance Bill, 2022

Chapter: I
PRELIMINARY
Clause 1	:	Short title and commencement
Chapter: II
RATES OF INCOME-TAX
Clause 2	:	Income-tax Clause 2 read with the First Schedule to the Bill, seeks to specify the rates at which income-tax is to be levied on income c....
Chapter: III
DIRECT TAXES - Income-tax
Clause 3	:	Amendment of section 2. Clause 3 seeks to amend section 2 of the Income-tax Act relating to definitions. Clause (42C) of the said section defines the....
Clause 4	:	Amendment of section 10 Clause 4 seeks to amend section 10 of the Income-tax Act relating to incomes not included in total income. Clause (4E) of the....
Clause 5	:	Amendment of section 11 Clause 5 seeks to amend section 11 of the Income-tax Act relating to income from property held for charitable or religious pu....
Clause 6	:	Amendment of section 12A Clause 6 seeks to amend section 12A of the Income-tax Act relating to conditions for applicability of sections 11 and 12. Cla....
Clause 7	:	Amendment of section 12AB Clause 7 seeks to amend section 12AB of the Income-tax Act relating to procedure for fresh registration. Sub-sections (4) and....
Clause 8	:	Amendment of section 13 Clause 8 seeks to amend section 13 of the Income-tax Act relating to section 11 not to apply in certain cases. Sub-section (1....
Clause 9	:	Amendment of section 14A Clause 9 seeks to amend section 14A of the Income-tax Act relating to expenditure incurred in relation to income not includib....
Clause 10	:	Amendment of section 17 Clause 10 seeks to amend section 17 of the Income-tax Act relating to definition of salary , perquisite and profits in lieu o....
Clause 11	:	Amendment of section 35 Clause 11 seeks to amend section 35 of the Income-tax Act relating to expenditure on scientific research. Sub-section (1A) of....
Clause 12	:	Amendment of section 37 Clause 12 seeks to amend section 37 of the Income-tax Act relating to General allowability of expenditure. The said section p....
Clause 13	:	Amendment of section 40 Clause 13 seeks to amend section 40 of the Income-tax Act relating to amounts not deductible. Sub-clause (ii) of clause (a) o....
Clause 14	:	Amendment of section 43B Clause 14 seeks to amend section 43B of the Income-tax Act relating to certain deductions to be allowed only on actual paymen....
Clause 15	:	Amendment of section 50 Clause 15 seeks to amend section 50 of the Income-tax Act relating to special provision for computation of capital gains in c....
Clause 16	:	Amendment of section 56 Clause 16 seeks to amend section 56 of the Income-tax Act relating to income from other sources. Sub-section (2) of the said ....
Clause 17	:	Amendment of section 68 Clause 17 seeks to amend section 68 of the Income-tax Act relating to cash credits. The provisions of the said section provid....
Clause 18	:	Amendment of section 79 Clause 18 seeks to amend section 79 of the Income-tax Act relating to carry forward and set off of losses in case of certain ....
Clause 19	:	Insertion of new section 79A-No set off of losses consequent to search, requisition and survey Clause 19 seeks to insert a new section 79A of the Income tax Act, relating to no set off of losses consequent to search, req....
Clause 20	:	Amendment of section 80CCD Clause 20 seeks to amend section 80 CCD of the Income-tax Act relating to deduction in respect of contribution to pension sch....
Clause 21	:	Amendment of section 80DD Clause 21 seeks to amend section 80DD of the Income-tax Act relating to deduction in respect of maintenance including medical....
Clause 22	:	Amendment of section 80-IAC Clause 22 seeks to amend section 80-IAC of the Income-tax Act relating to special provision in respect of specified business.....
Clause 23	:	Amendment of section 80LA Clause 23 seeks to amend section 80LA of the Income-tax Act relating to deductions in respect of certain incomes of Offshore ....
Clause 24	:	Amendment of section 92CA Clause 24 seeks to amend section 92CA of the Income-tax Act relating to Reference to Transfer Pricing Officer. The said secti....
Clause 25	:	Amendment of section 94 Clause 25 seeks to amend section 94 of the Income-tax Act relating to avoidance of tax by certain transactions in securities.....
Clause 26	:	Amendment of section 115BAB Clause 26 seeks to amend section 115BAB of the Income-tax Act relating to tax on income of new manufacturing domestic compani....
Clause 27	:	Amendment of section 115BBD Clause 27 seeks to amend section 115BBD of the Income-tax Act relating to tax on certain dividends received from foreign comp....
Clause 28	:	Insertion of new sections 115BBH and 115BBI-Tax on income from virtual digital assets-Specified income of certain institutions Clause 28 seeks to insert new section 115BBH relating to tax on income from virtual digital assets and new section 115BBI rel....
Clause 29	:	Amendment of section 115JC Clause 29 seeks to amend section 115JC of the Income-tax Act relating to special provisions for payment of tax by certain per....
Clause 30	:	Amendment of section 115JF. Clause 30 seeks to amend section 115JF of the Income-tax Act relating to interpretation in the Chapter XII-BA. The said secti....
Clause 31	:	Amendment of section 115TD Clause 31 seeks to amend section 115TD of the Income-tax Act relating to tax on accreted income. The said section, inter-alia....
Clause 32	:	Amendment of section 115TE Clause 32 seeks to amend section 115TE of the Income-tax Act relating to interest payable for non-payment of tax by trust or ....
Clause 33	:	Amendment of section 115TF Clause 33 seeks to amend section 115TF of the Income-tax Act relating to when trust or institution is deemed to be assessee i....
Clause 34	:	Amendment of section 119 Clause 34 seeks to amend section 119 of the Income-tax Act relating to instructions to subordinate authorities. Clause (a) of....
Clause 35	:	Amendment of section 132 Clause 35 seeks to amend section 132 of the Income-tax Act relating to search and seizure. Sub-section (8) of the said sectio....
Clause 36	:	Amendment of section 132B Clause 36 seeks to amend section 132B of the Income-tax Act relating to application of seized or requisitioned assets. Sub-se....
Clause 37	:	Amendment of section 133A Clause 37 seeks to amend the section 133A of the Income-tax Act relating to power of survey. Explanation to the said section,....
Clause 38	:	Amendment of section 139 Clause 38 seeks to amend section 139 of the Income-tax Act relating to return of income. It is proposed to insert sub-section....
Clause 39	:	Insertion of new section 140B-Tax on updated return Clause 39 seeks to insert a new section 140B in the Income-tax Act relating to tax on updated return. It is proposed to provi....
Clause 40	:	Amendment of section 143 Clause 40 seeks to amend section 143 of the Income-tax Act relating to assessment. Sub-section (3) of the said section, inter....
Clause 41	:	Amendment of section 144. Clause 41 seeks to amend section 144 of the Income-tax relating to best judgement assessment. It is proposed to amend clause ....
Clause 42	:	Amendment of section 144B Clause 42 seeks to amend section 144B of the Income-tax Act relating to faceless assessment. The provisions of the said secti....
Clause 43	:	Amendment of section 144C. Clause 43 seeks to amend section 144C of the Income-tax Act relating to Reference to dispute resolution panel. The said secti....
Clause 44	:	Amendment of section 148 Clause 44 seeks to amend section 148 of the Income-tax Act relating to issue of notice where income has escaped assessment. T....
Clause 45	:	Amendment of section 148A Clause 45 seeks to amend section 148A of the Income-tax Act relating to conducting inquiry, providing opportunity before issu....
Clause 46	:	Insertion of new section 148B - Prior approval for assessment, reassessment or recomputation in certain cases Clause 46 seeks to insert a new section 148B in the Income-tax Act relating to prior approval for assessment, reassessment or....
Clause 47	:	Amendment of section 149 Clause 47 seeks to amend section 149 of the Income-tax Act relating to time limit for notice. The said section provides the t....
Clause 48	:	Amendment of section 153 Clause 48 seeks to amend section 153 of the Income-tax Act relating to time limit for completion of assessment, reassessment ....
Clause 49	:	Amendment of section 153B Clause 49 seeks to amend section 153B of the Income-tax Act relating to time limit for completion of assessment under section....
Clause 50	:	Insertion of new section 156A-Modification and revision of notice in certain cases Clause 50 seeks to insert a new section 156A in the Income-tax Act relating to modification and revision of notice in certain....
Clause 51	:	Amendment of section 158AA Clause 51 seeks amend section 158AA of the Income-tax Act relating to procedure when in an appeal by revenue an identical que....
Clause 52	:	Insertion of new section 158AB- Procedure where an identical question of law is pending before High Courts or Supreme Court Clause 52 seeks to insert a new section 158AB in the Income-tax Act relating to procedure where an identical question of law ....
Clause 53	:	Amendment of section 170 Clause 53 seeks to amend section 170 of the Income-tax Act relating to succession to business otherwise than on death. It is ....
Clause 54	:	Insertion of new section 170A-Effect of order of tribunal or court in respect of business reorganisation. Clause 54 seeks to insert a new section 170A in the Income-tax Act relating to the effect of order of tribunal or court in re....
Clause 55	:	Amendment of section 179 Clause 55 seeks to amend the section 179 of the Income-tax Act relating to liability of directors of private company in liqui....
Clause 56	:	Amendment of section 194-IA Clause 56 seeks to amend section 194-IA of the Income-tax Act relating to payment on transfer of certain immovable property o....
Clause 57	:	Amendment of section 194-IB Clause 57 seeks to amend section 194-IB of the Income-tax Act relating to payment of rent by certain individuals or Hindu und....
Clause 58	:	Insertion of new section 194R-Deduction of tax on benefit of perquisite in respect of business or profession Clause 58 seeks to insert a new section 194R to the Income-tax Act, 1961 relating to deduction of tax on benefit or perquisit....
Clause 59	:	Insertion of new section 194S-Payment on transfer of virtual digital asset Clause 59 seeks to insert a new section 194S in the Income-tax Act relating to payment on transfer of virtual digital asset. ....
Clause 60	:	Amendment of section 201 Clause 60 of the Bill seeks to amend section 201 of the Income-tax Act 1961 relating to consequences of failure to deduct or ....
Clause 61	:	Amendment of section 206AB Clause 61 seeks to amend section 206AB of the Income-tax Act relating to special provision for deduction of tax at source for....
Clause 62	:	Amendment of section 206C. Clause 62 of the Bill seeks to amend section 206C of the Income-tax Act 1961 relating to profits and gains from the business ....
Clause 63	:	Amendment of section 206CCA Clause 63 seeks to amend section 206CCA of the Income-tax Act relating to special provision for collection of tax at source f....
Clause 64	:	Amendment of section 234A Clause 64 seeks to amend section 234A of the Income-tax Act relating to interest for defaults in furnishing return of income.....
Clause 65	:	Amendment of section 234B. Clause 65 seeks to amend section 234B of the Income-tax Act relating to interest for defaults in payment of advance tax. It i....
Clause 66	:	Insertion of new section 239A-Refund for denying liability to deduct tax in certain cases Clause 66 seeks to insert a new section 239A in the Income-tax Act relating to refund for denying liability to deduct tax in ....
Clause 67	:	Amendment of section 245MA Clause 67 seeks to amend section 245MA of the Income-tax Act relating to Dispute Resolution Committee. The said section, inte....
Clause 68	:	Amendment of section 246A Clause 68 seeks to amend section 246A of the Income-tax Act relating to appealable orders before Commissioner (Appeals). Sub-....
Clause 69	:	Amendment of section 248. Clause 69 seeks to amend section 248 of the Income-tax Act relating to appeal by a person denying liability to deduct tax in ....
Clause 70	:	Amendment of section 253. Clause 70 seeks to amend the section 253 of the Income-tax Act relating to Appeals to the Appellate Tribunal. The said sectio....
Clause 71	:	Amendment of section 255. Clause 71 seeks to amend section 255 of the Income-tax Act relating to procedure of Appellate Tribunal. The said section, int....
Clause 72	:	Amendment of section 263 Clause 72 seeks to amend section 263 of the Income-tax Act relating to revision of orders prejudicial to revenue. Sub-section....
Clause 73	:	Amendment of section 271AAB. Clause 73 seeks to amend the section 271AAB of the Income-tax Act relating to penalty where search has been initiated. Sub-se....
Clause 74	:	Amendment of section 271AAC. Clause 74 seeks to amend the section 271AAC of the Income-tax Act relating to penalty in respect of certain income. Sub-secti....
Clause 75	:	Amendment of section 271AAD Clause 75 seeks to amend the section 271AAD of the Income-tax Act relating to penalty for false entry, etc. in books of accou....
Clause 76	:	Insertion of new section 271AAE Clause 76 seeks to insert section 271AAE in the Income-tax Act relating to benefits to related persons. The proposed new sect....
Clause 77	:	Amendment of section 271C Clause 77 seeks to amend the section 271C of the Income-tax Act relating to penalty for failure to deduct tax at source. It p....
Clause 78	:	Amendment of section 272A Clause 78 seeks to amend section 272A of the Income-tax Act relating to penalty for failure to answer questions, sign stateme....
Clause 79	:	Amendment of section 276AB. Clause 79 seeks to amend section 276AB of the Income-tax Act relating to failure to comply with the provisions of sections 26....
Clause 80	:	Amendment of section 276B. Clause 80 seeks to amend section 276B of the Income-tax Act relating to failure to pay tax to the credit of Central Governmen....
Clause 81	:	Amendment of section 276CC. Clause 81 seeks to amend the section 276CC of the Income-tax Act relating to failure to furnish returns of income. The provis....
Clause 82	:	Amendment of section 278A. Clause 82 seeks to amend the section 278A of the Income-tax Act relating to punishment for second and subsequent offences. Se....
Clause 83	:	Amendment of section 278AA. Clause 83 seeks to amend section 278AA of the Income-tax Act relating to punishment not to be imposed the certain cases. Sect....
Clause 84	:	Substitution of new section for section 285B-Submission of statements by producers of cinematograph films or persons engaged in specified activity Clause 84 seeks to substitute section 285B of the Income-tax Act relating to submission of statements by producers of cinemat....
Chapter: IV
INDIRECT TAXES
Customs
Clause 85	:	Amendment of section 2 Clause 85 seeks to amend clause (34) of section 2 of the Customs Act so as to provide that proper officer , in relation to an....
Clause 86	:	Substitution of section 3-Classes of officers of customs Clause 86 seeks to substitute section 3 of the Customs Act so as to specify the classes of officers of customs, including the....
Clause 87	:	Amendment of section 5 Clause 87 seeks to amend section 5 of the Customs Act relating to the powers of the officers of customs. It is proposed to in....
Clause 88	:	Amendment of section 14. Clause 88 seeks to amend section 14 of the Customs Act so as to empower the Central Government to make rules enabling the Cen....
Clause 89	:	Amendment of section 28E. Clause 89 seeks to amend section 28E of the Customs Act so as to omit the Explanation to clause (c) relating to expression jo....
Clause 90	:	Amendment of section 28H. Clause 90 seeks to amend sub-section (1) of section 28H of the Customs Act so as to provide that fee for application for adva....
Clause 91	:	Amendment of section 28-I. Clause 91 seeks to substitute sub-section (7) of section 28-1 of the Customs Act so as to remove reference to Members from th....
Clause 92	:	Amendment of section 28J. Clause 92 seeks to substitute sub-section (2) of section 28J of the Customs Act so as to provide that advance ruling under su....
Clause 93	:	Insertion of new section 110AA. Clause 93 seeks to insert a new section 110AA in the Customs Act so as to provide that where in pursuance of any proceeding u....
Clause 94	:	Insertion of new section 135AA. Clause 94 seeks to insert a new section 135AA in the Customs Act, so as to make punishable the publishing of information rela....
Clause 95	:	Amendment of section 137. Clause 95 seeks to insert the words, figures and letters or section 135AA in subsection (1) of section 137 of the Customs Act....
Clause 96	:	Validation of certain actions taken under Customs Act. Clause 96 seeks to give validation to any action taken or functions performed before the date of commencement of the Finance ....
Customs Tariff
Clause 97	:	Amendment of First Schedule. Clause 97 seeks to amend the First Schedule to the Customs Tariff Act (a) in the manner specified in the Second Schedule so a....
Excise
Clause 98	:	Amendment of Fourth Schedule. Clause 98 seeks to amend the Fourth Schedule to the Central Excise Act to insert two new tariff items 2710 12 43 and 2710 12 ....
Central Goods and Service Tax
Clause 99	:	Amendment of section 16. Clause 99 seeks to amend section 16 of the Central Goods and Services Tax Act, 2017 by inserting a new clause (ba) in sub-sec....
Clause 100	:	Amendment of section 29. Clause 100 seeks to amend clause (b) of sub-section (2) of section 29 of the Central Goods and Services Tax Act so as to prov....
Clause 101	:	Amendment of section 34. Clause 101 seeks to amend sub-section (2) of section 34 of the Central Goods and Services Tax Act so as to provide for thirti....
Clause 102	:	Amendment of section 37. Clause 102 seeks to amend sub-section (1) of section 37 of the Central Goods and Services Tax Act so as to provide for prescr....
Clause 103	:	Substitution of new section for section 38. Clause 103 seeks to substitute a new section for section 38 of the Central Goods and Services Tax Act. Sub section (1) seeks ....
Clause 104	:	Amendment of section 39. Clause 104 seeks to amend sub-section (5) of section 39 of the Central Goods and Services Tax Act so as to provide that the n....
Clause 105	:	Substitution of new section for section 41. Clause 105 seeks to substitute a new section for section 41 of the Central Goods and Services Tax Act so as to do away with t....
Clause 106	:	Omission of sections 42, 43 and 43A. Clause 106 seeks to omit section 42 of the Central Goods and Services Tax Act relating to matching, reversal and reclaiming o....
Clause 107	:	Amendment of section 47. Clause 107 seeks to amend sub-section (1) of section 47 of the Central Goods and Services Tax Act so as to provide for levy o....
Clause 108	:	Amendment of section 48. Clause 108 seeks to amend sub-section (2) of section 48 of the Central Goods and Services Tax Act so as to remove reference t....
Clause 109	:	Amendment of section 49. Clause 109 seeks to amend sub-section (4) of section 49 of the Central Goods and Services Tax Act so as to provide for prescr....
Clause 110	:	Amendment of section 50. Clause 110 seeks to substitute a new sub-section for sub-section (3) of section 50 of the Central Goods and Services Tax Act,....
Clause 111	:	Amendment of section 52. Clause 111 seeks to amend proviso to sub-section (6) of section 52 of the Central Goods and Services Tax Act so as to provide....
Clause 112	:	Amendment of section 54. Clause 112 seeks to amend proviso to sub-section (1) of section 54 of the Central Goods and Services Tax Act so as to explici....
Clause 113	:	Amendment of section 168. Clause 113 o seeks to amend sub-section (2) of section 168 of the Central Goods and Services Tax Act so as to remove referenc....
Clause 114	:	Amendment of notification issued under section 146 of Central Goods and Services Tax Act read with section 20 of Integrated Goods and Services Tax Act, retrospectively. Clause 114 seeks to amend notification number G.S.R. 58(E), dated the 23rd January, 2018 to notify www.gst.gov.in, retrospect....
Clause 115	:	Amendment of notification issued under subsections (1) and (3) of section 50, sub-section (12) of section 54 and section 56 of Central Goods and Services Tax Act, retrospectively. Clause 115 seeks to amend notification number G.S.R. 661(E), dated the 28th June, 2017, so as to notify rate of interest unde....
Clause 116	:	Retrospective exemption from, or levy or collection of, central tax in certain cases. Clause 116 seeks to provide retrospective exemption from central tax in respect of supply of unintended waste generated durin....
Clause 117	:	Retrospective effect to notification issued under sub-section (2) of section 7 of Central Goods and Services Tax Act. Clause 117 seeks to give retrospective effect to the notification of the Government of India in the Ministry of Finance (Depa....
Integrated Goods and Services Tax
Clause 118	:	Amendment of notification issued under section 20 of Integrated Goods and Services Tax Act, 2017 read with subsections (1) and (3) of section 50, sub-section (12) of section 54 and section 56 of Central Goods and Services Tax Act, retrospectively. Clause 118 seeks to amend notification number G.S.R. 698(E), dated the 28th June, 2017, so as to notify rate of interest unde....
Clause 119	:	Retrospective exemption from, or levy or collection of, integrated tax in certain cases. Clause 119 seeks to provide retrospective exemption from integrated tax in respect of supply of unintended waste generated du....
Clause 120	:	Retrospective effect to notification issued under clause (i) of section 20 of Integrated Goods and Services Tax Act read with subsection (2) of section 7 of Central Goods and Services Tax Act. Clause 120 seeks to give retrospective effect to the notification of the Government of India in the Ministry of Finance (Depa....
Union Territory Goods and Services Tax
Clause 121	:	Amendment of notification issued under section 21 of Union Territory Goods and Services Tax Act read with subsections (1) and (3) of section 50, sub-section (12) of section 54 and section 56 of Central Goods and Services Tax Act, retrospectively. Clause 121 seeks to amend notification number G.S.R. 747(E), dated the 30th June, 2017, so as to notify rate of interest unde....
Clause 122	:	Retrospective exemption from or levy or collection of, Union territory tax in certain cases. Clause 122 seeks to provide retrospective exemption from Union territory tax in respect of supply of unintended waste generat....
Clause 123	:	Retrospective effect to notification issued under clause (i) of section 21 of Union Territory Goods and Services Tax Act read with subsection (2) of section 7 of Central Goods and Services Tax Act. Clause 123 seeks to give retrospective effect to the notification of the Government of India in the Ministry of Finance (Depa....
Chapter: V
MISCELLANEOUS
Part: I
AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934
Clause 124	:	Amendment of Act 2 of 1934. Clause 124 seeks to amend sections 2 and 22 of the Reserve Bank of India Act, 1934. It is proposed to provide clarity in sect....
Part: II
AMENDMENT TO THE FINANCE ACT, 2001
Clause 125	:	Amendment of Seventh Schedule. Clause 125 seeks to amend the Seventh Schedule to the Finance Act, 2001 to substitute tariff item 2709 20 00 and the entries ....
SCHEDULES
SCH-01	:	FIRST SCHEDULE
SCH-02	:	SECOND SCHEDULE
SCH-03	:	THIRD SCHEDULE
SCH-04	:	FOURTH SCHEDULE
SCH-05	:	FIFTH SCHEDULE
SCH-06	:	SIXTH SCHEDULE
SCH-07	:	SEVENTH SCHEDULE
SCH-08	:	EIGHTH SCHEDULE
SCH-09	:	NINTH SCHEDULE
Notes on clauses
CORRIGENDUM	:	Errata The Finance Bill, 2022
NOTES	:	NOTES ON CLAUSES
MEMORANDUM REGARDING DELEGATED LEGISLATION
MEMO	:	MEMORANDUM REGARDING DELEGATED LEGISLATION