MEMO - MEMORANDUM REGARDING DELEGATED LEGISLATION - Finance Bill, 2020

MEMORANDUM REGARDING DELEGATED LEGISLATION The provisions of the Bill, interalia, empower the Central Government to issue notifications and the Board to make rules for various purposes as specified therein. Clause 5 of the Bill seeks to amend section 9 of the Income-tax Act relating to income deemed to accrue or arise in India. The proposed new Explanation 2A to the said section empowers the Board to provide by rules the amount of aggregate payments from the transaction in respect of any goods, services or property which shall be deemed to accrue or arise in India. Clause 7 the Bill seeks to amend section 10 of the Income-tax Act relating to incomes not included in total income. The proposed amendment of clause (23C) of the said section empowers the Board to provide by rules the form and the manner in which the order under clause (i), sub-clause (b) of clause (ii) and clause (iii) of the second proviso to be passed. The proposed new clause (23FE) in the said section empowers the Central Government to notify such other business for exemption in respect of any income of a specified person in the nature of dividend, interest or longterm capital gains arising from an investment made by it in India, whether in the form of debt or equity, with certain conditions. Clause 12 of the Bill seeks to insert new section 12AB the Income-tax Act relating to procedure for fresh registration. Sub-section (3) of the proposed new section 12AB empowers the Board to provide by rules the form and the manner in which the order under the said sub-section shall be passed. Clause 13 of the Bill seeks to amend section 17 of the Income-tax Act relating to Salary perquisite and profit in lieu of salary . The proposed amendment of the said section empowers the Board to provide by rules the manner of computation of income by way of interest, dividend or any other amount of similar nature. Clause 17 of the Bill seeks to amend section 35 of the Income-tax Act relating to expenditure on scientific research. The proposed new fifth proviso to sub-section (1) of the said section empowers the Board to provide by rules the form and manner of giving intimation by the research association, university, college or company, to the prescribed authority. The proposed new sub-section (1A) empowers the Board to make rules to provide for the preparation of statements, time period for such statement, form and manner of verification, particulars and time for submission of such statements. It is further proposed to empower the Board to provide by rules for the form and manner of verification of the correction statement thereof. It is also proposed to empower the Board to make rules with regard to the manner, particulars and time for certificate to be given to a donor under the said sub-section. Clause 21 of the Bill seeks to amend section 43 of the Income-tax Act relating to definitions of certain terms relevant to income from profits and gains of business or profession. The proposed amendment to Explanation 2 of the said section empowers the Board to provide by rules the conditions to be fulfilled for a recognised stock exchange . It further empowers the Central Government to notify the same. Clause 33 of the Bill seeks to amend section 80G of the Income-tax Act relating to deduction in respect of donations to certain funds, charitable institutions, etc. It is proposed to amend sub-section (5) of the said section so as to empower the Board to provide by rules the statement, time period, form and manner of verification, particulars and time for delivery of correction statement for rectification of any mistake in the information furnished in the said statement. It is further proposed to empower the Board to make rules with regard to the manner, particulars and time for certificate of donation. It is further proposed to empower the Board to make rules to prescribe the form and the manner in which the order under clause (i), sub-clause (b) of clause (ii) and clause (iii) of the proposed first proviso shall be passed. Clause 37 of the Bill seeks to amend section 80-IB of the Income-tax Act relating to deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings. The proposed amendments in sub-sections (7A), (7B), (11B) and (11C) of the said section empowers the Board to provide by rules the form and particulars of the report of an audit. Clause 44 of the Bill seeks to amend section 92CC of the Income-tax Act relating to advance pricing agreement. The proposed new sub-section (9A) of the said section empowers the Board to make rules prescribing conditions, procedure and manner for entering agreement referred to in sub-section (1) of the said section. Clause 53 of the Bill seeks to,- (i) insert a new section 115BAC relating to tax on income of individuals and Hindu Undivided Family. Clause (iii) of sub-section (2) of the said section provided for manner of computation of income of individuals and Hindu Undivided Family, by claiming the depreciation if any, under any provision of section 32 except clause (iia) of sub-section (1) of the said section, determined in such manner to be provided by rules. (ii) insert a new section 115BADof the Income-tax Act relating to the income of certain registered cooperative societies. Proviso to sub-section (3) of the said section empowers the Board to provide by rules the manner of making corresponding adjustment to the written down value of block of assets. Sub-section 5 of the proposed new section empowers the Board to provide rules the manner of exercising option by the person under the said section. Clause 57 of the Bill seeks to amend section 115JC of the Income-tax Act relating to special provisions for payment of tax by certain persons other than a company. The proposed amendment to sub-section (3) of the said section empowers the Board to provide by rules the form in which the report from an accountant shall be obtained. Clause 65 of the Bill seeks to amend section 133A of the Income-tax Act relating to power of survey. The proposed substitution of the proviso to the said section empowers the Board to provide by rules such authority for receiving information under the said section. The proposed new sub-section (1G) of the said section empowers the Central Government to notify any other person for exemption from the application of the said subsection. Clause 67 of the Bill seeks to amend section 140 of the Income-tax Act relating to return by whom to be verified. The proposed amendment empowers the Board to provide by rules any other persons for the purpose in the case of company and limited liability partnership. Clause 74 of the Bill seeks to amend section 194 of the income-tax Act relating to income by way of interest on certain bonds and Government Securities. The proposed amendment of sub-section (2) of the said section empowers the Central Government to notify the rate of interest in respect of rupee denominated bond of an Indian company. Clause 93 of the Bill seeks to amend section 206C of the income-tax Act relating to profits and gains from the Business of trading in alcoholic liquor, forest produce, scrap, etc. The proposed amendment seeks to empower the Central Government to notify any other person to exempt from the application of the provisions of newly inserted sub-section (1G) of the said section. Clause 95 of the Bill seeks to amend section 250 of the Income-tax Act relating to procedure in appeal. The proposed new sub-section (6B) of the said section empowers the Board to make scheme, by notification in the Official Gazette, for the disposal of appeal under section 250 and to empower the Central Government under sub-section (6C) to issue notification to give effect to the scheme and to give direction relating to jurisdiction and procedure for disposal of appeal by Commissioner (Appeals). Clause 100 of the Bill seeks to amend section 274 of the Income-tax Act relating to procedure. The proposed new sub-section (2A)of the said section empowers the Board to make scheme, by notification in the Official Gazette, for imposing penalty under Chapter XXI of the Act and to empower the Central Government to issue notification under sub-section (2B) to give effect to the scheme and to give direction relating to jurisdiction and procedure for imposing penalty by Income-tax authorities. Clause 101 of the Bill seeks to insert a new section 285BB in the Income-tax Act relating to annual information statement to empower the Board to provide by rules the form, manner, and the time period within which, and such information for annual information statement shall be uploaded by the income-tax authority. Clause 102 of the Bill seeks to amend section 288 of the Income-tax Act relating to appearance by authorised representative. Sub-section (2) of the said section, inter alia, provides for the definition of authorised representative who shall be entitled or required to attend before any income-tax authority or the Appellate Tribunal in connection with any proceeding under the said Act. The proposed amendment of the said sub-section empowers the Board to provide by rules any other person who may also appear as an authorised representative. Clause 112 of the Bill seeks to amend section 156 of the Customs Act so as to insert a new clause (i) therein, to empower the Central Government to make rules to provide for the form, time limit, manner, circumstances, conditions, restrictions and such other matters for carrying out the provisions of Chapter VAA. Clause 113 of the Bill seeks to amend section 157 of the Customs Act so as to insert a new clause (ja) therein, to empower the Board to make regulations to provide for the manner of maintaining electronic duty credit ledger, making payment from such ledger, transfer of duty credit from ledger of one person to the ledger of another and the conditions, restrictions and time limit relating thereto. Clause 114 of the Bill seeks to substitute section 8B of the Customs Tariff Act. Sub-section (10) of the said section empowers the Central Government to make rules to provide for the manner in which articles liable for safeguard measures may be identified, the manner in which the causes of serious injury or causes of threat of serious injury in relation to identified article may be determined, the manner of assessment and collection of safeguard duty, the manner in which tariff-rate quota on identified article may be allocated among supplying countries, the manner of implementing tariff-rate quota as a safeguard measure and any other safeguard measure and the manner of its application. Clause 121 of the Bill seeks to amend section 31 of the Central Goods and Services Tax Act. Sub-section (2) of the said section empowers the Government to make rules to provide for the time and manner of issuing tax invoice. Clause 122 of the Bill seeks to amend section 51 of the Central Goods and Services Tax Act.Sub-section (3) of the said section empowers the Government to make rules to provide for the form and manner in which a certificate of tax deduction at source shall be issued. Clause 126 of the Bill seeks to amend section 140 of the Central Goods and Services Tax Act with retrospective effect to empower the Central Government to make rules to provide for the time limit and the manner for availing input tax credit against certain unavailed credit under the existing law. 2. The matters in respect of which rules may be made or notifications or order may be issued in accordance with the provisions of the Bill are matters of procedure and details and it is not practicable to provide for them in the Bill itself. 3. The delegation of legislative power is, therefore, of a normal character.