MEMO - MEMORANDUM REGARDING DELEGATED LEGISLATION - Finance (No. 2) Bill, 2024

MEMORANDUM REGARDING DELEGATED LEGISLATION The provisions of the Bill, inter alia, empower the Central Government to issue notifications and the Board to make rules for various purposes as specified therein. Clause 4 of the Bill seeks to amend section 10 of the Income-tax Act relating to income not included in total income. Sub-clause (a) seeks to insert a new sub-item (b) in item (I) of sub-clause (i) of clause (c) of the Explanation to clause (4D) of section 10 relating to any income accrued or arisen to, or received by a specified fund shall not be included in computing the total income. It empowers the Board to specify the conditions by rules which a fund is required to satisfy for the purposes of section 10. Sub-clause (c)(ii) seeks to amend clause (23FB), inter alia, relating to any income of a venture capital company or venture capital fund from investment in a venture capital undertaking shall not be included in computing the total income of a previous year. It empowers the Board to make rules to specify the conditions by rules which a venture capital fund is required to satisfy for the purposes of section 10. It further empowers the Board to make rules to provide conditions relating to procedure for fresh registration. It also empowers the Board to make rules to provide the form and the manner in which the order under clause (a) of sub-clause (ii) of clause (b) and clause (c) of sub-section (1) of section 3 shall be passed. Clause 8 of the Bill seeks to insert in section 12AC in the Income-tax Act, relating to merger of charitable trusts or institutions in certain cases. Proposed new section empowers the Board to make rules to specify the conditions for the purpose of merger. Clause 17 of the Bill seeks to insert section 44BBC in the Income-tax Act, relating to special provision for computing profits and gains of the business of operation of cruise ships in the case of non-residents. Proposed sub-section (1) of the said section empowers the Board to make rules to specify the conditions for the purpose of charging the tax under the head profits and gains of business or profession . Clause 26 of the Bill seeks to amend section 80G of the Income-tax Act relating to deduction in respect of donations to obtain funds, charitable institutions, etc. Third proviso to sub-section (5) of section 80G empowers the Board to make rules to specify the form and the manner of the order to be passed under clauses (ii) and (iii) of the second proviso to subsection (5) of said section. The proposed fourth proviso to sub-section (5) of section 80G, empowers the Board to make rules to specify the form and the manner of order to be passed under sub-clause (b) of clause (ii) of the second proviso of the said section. Clause 42 of the Bill seeks to insert sub-section (2A) in section 139AA of the Income-tax Act relating to quoting of Aadhaar number. Sub-section (2A) of the said section empowers the Board to provide by rules, the authority, form and manner in which every person who has been allotted permanent account number on the basis of enrolment ID of Aadhaar application form filed prior to 1st October, 2024, shall intimate his Aadhar number. Clause 44 of the Bill seeks to substitute section 148 of the Income-tax Act relating to issue of notice where income has escaped assessment. Sub-section (2) of section 148 empowers the Board to provide by rules form, manner and particulars as to the return of income required under sub-section (1) of section 148 shall be furnished. Clause 50 of the Bill seeks to amend section 192 of the Income-tax Act relating to salary. Sub-section (2B) of the said section empowers the Board to provide by rules the particulars which is to be send by the assessee to the person responsible for making the payment referred to in sub-section (1) of section 192 of the said Act. Clause 117 of the Bill seeks to insert a new proviso in sub-section (2) of section 30 of the Central Goods and Services Tax Act to empower the Government to make rules prescribing conditions for revocation of cancellation of registration of a taxpayer. Clause 118 of the Bill seeks to amend clause (f) of sub-section (3) of section 31 of the Central Goods and Services Tax Act to empower the Government to make rules prescribing the time period for issuance of invoice by the recipient in case of reverse charge mechanism supplies. Clause 120 of the Bill seeks to substitute sub-section (3) of section 39 of the Central Goods and Services Tax Act to empower the Government to prescribe the form, manner and the time within which return is to be filed by registered person required to deduct tax at source under section 52 of the said Act. Clause 142 of the Bill seeks to insert a new section 128A in the Central Goods and Services Tax Act. Sub-section (1) of the said section empowers the Government to make rules for prescribing the conditions subject to which the proceedings with regard to demand notices issued under section 73 of the said Act shall be deemed to be concluded as per provisions of sub-section (1) of the proposed section 128A of the said Act. 2. The matters in respect of which rules may be made and matters of procedure and details and it is not practicable to provide for them in the Bill itself. The delegation of legislative powers is, therefore, of a normal character.