MEMO - MEMORANDUM REGARDING DELEGATED LEGISLATION - Finance Bill, 2025

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 3 of the Bill seeks to amend section 2 of the Income-tax Act relating to definitions. It, inter alia, seeks to amend clause (22) of the said section. It is proposed to insert the Explanation of group entity , principal entity and parent entity in Explanation 3, in clause (d) of the said Explanation. It seeks to empower the Board to make rules regarding the conditions which the said entities are required to satisfy. Clause 9 of the Bill seeks to amend clause (2) of section 17 of the Income-tax Act relating to salary , perquisite and profits in lieu of salary defined. It is proposed to amend paragraph (c) of sub-clause (iii) of clause (2) to empower the Board for making rules to determine the amount. In clause (2), it is further proposed to amend the proviso occurring after sub-clause (viii) of clause (vi), in the long line, in clause (B) to empower the Board for making rules to determine the amount. Clause 11 of the Bill seeks to insert a new section 44BBD in the Income-tax Act relating to special provisions for computing profits and gains of non-residents engaged in the business of providing services or technology, for setting up an electronics manufacturing facility or in connection with manufacturing or providing electronic goods, article or things in India. It, inter alia, empowers the Board to make rules prescribing the conditions which the resident company are required to satisfy in this behalf. Clause 21 of the Bill seeks to amend section 92CA of the Income-tax Act relating to reference to Transfer Pricing Officer. It is proposed to insert a new sub-section (3B) in the said section so as to provide that the arm s length price being determined in relation to the international transaction or the specified domestic transaction under sub-section (3) for any previous year shall apply to similar international transaction or the specified domestic transaction for two consecutive previous years immediately following such previous year, on fulfilment of the conditions, specified therein. Clause (b) of the said sub-section empowers the Board to make rules on such option or options which are to be exercised. Clause (c) of the said sub-section empowers the Board to make rules providing the conditions subject to which option or options exercised by the assessee will be declared by the Transfer Pricing Officer as valid option. Clause 88 of the Bill seeks to insert a new section 18A in the Customs Act, relating to voluntary revision of entry, post clearance. Sub-section (1) of the said section 18A seeks to empower the Government to provide by rules the form and manner and the time within which entry in relation to the goods may be revised by the importer or exporter, post clearance. Clause 122 of the Bill seeks to amend sub-section (2) of section 38 of the Central Goods and Services Tax Act to empower the Government to provide by rules other details to be made available in the statement. Clause 127 of the Bill seeks to insert a new section 148A in the Central Goods and Services Tax Act, relating to track and trace mechanism for certain goods. Sub-section (2) of the said section 148A seeks to empower the Government to provide by rules a system for enabling affixation of unique identification marking and for electronic storage and access of information and the person through whom such system may be provided. It further seeks to empower the Government to provide by rules the Unique Identification marking for goods including the information to be recorded therein. Sub-section (3) of the said section 148A seeks to empower the Government to provide by rules, the information to be contained in, and the manner of affixing on the goods and packages a unique identification marking under clause (a), the form and manner and the time for furnishing information and details and maintaining records or documents under clause (b), the time within which and the form and manner in which other details shall be furnished under clause (c) and the amount to be paid under clause (d) of the said sub-section. 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.