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TMI BlogNOTES ON CLAUSESX X X X Extracts X X X X X X X X Extracts X X X X ..... n of tax at source during the financial year 2014-15 from income other than Salaries Part II of the First Schedule to the Bill specifies the rates at which income-tax is to be deducted at source during the financial year 2014-15 from income other than Salaries . The rates are the same, as those specified in Part II of the First Schedule to the Finance Act, 2013 for the purposes of deduction of income- tax at source during the financial year 2013-14. The amount of tax so deducted shall be increased by a surcharge in the case of (i) every non-resident (other than a company) at the rate of ten per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees; (ii) every company other than a domestic company at the rate of two per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees but does not exceed ten crore rupees; (iii) every company other than a domestic company at the rate of five per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds ten crore rupees. Rates for deduction of tax at sour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified for the assessment year 2014-15. The surcharge in cases of firms, having income above one crore rupees shall be levied at the rate of ten per cent. Marginal relief will be provided. Paragraph D of this Part specifies the rate of income-tax in the case of every local authority. In such cases, the rate of tax will continue to be the same as that specified for the assessment year 2014-15. The surcharge in cases of local authorities, having income above one crore rupees shall be levied at the rate of ten per cent. Marginal relief will be provided. Paragraph E of this Part specifies the rates of income-tax in the case of companies. In both the cases of domestic companies and companies other than domestic companies, the rate of tax will continue to be the same as that specified for the assessment year 2014-15. Surcharge in the case of domestic companies having total income above one crore rupees but not above ten crore rupees shall be levied at the rate of five per cent. In the case of domestic companies having total income above ten crore rupees, surcharge shall be levied at the rate of ten per cent. In the case of companies other than domestic companies having total income ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessment year 2015-16 and subsequent years. It is also proposed to amend section 2 so as to substitute the definitions of clause (15A), clause (16) and clause (21) relating to Chief Commissioner , Commissioner and Director General or Director . It is further proposed to insert clauses (34A), (34B), (34C) and (34D) so as to define the terms Principal Chief Commissioner of Income-tax , Principal Commissioner of Income-tax , Principal Director General of Income-tax and Principal Director of Income-tax to mean a person appointed to be an income-tax authority under section 117 of the Act. These amendments will take effect retrospectively from 1 st June, 2013. The existing provisions contained in clause (24) of section 2 defines the term income . It is proposed to amend the said clause (24) so as to include any sum of money referred to in clause (ix) of sub-section (2) of section 56 in the definition of income. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. The existing provisions contained in clause (42A) of section 2 provide that short-term capital asset means a capital asset he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ospital or any other institution are wholly or substantially financed by the Government. It is proposed to amend the aforesaid clause so as to insert an Explanation to provide that any university or other educational institution, hospital or other institution referred therein, shall be considered as being substantially financed by the Government for any previous year, if the Government grant to such university or other educational institution, hospital or other institution exceeds such percentage of the total receipts including any voluntary contributions as may be prescribed, of such university or other educational institution, hospital or other institution, as the case may be, during the relevant previous year. It is further proposed to amend the said clause to provide that where the fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via), has been notified by the Central Government or approved by the prescribed authority and the notification or the approval is in force for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Economic Zones. The existing provisions contained in aforesaid section 10AA, inter alia, provide for a deduction in respect of the profits and gains derived from the export of articles or things or from providing services. It is proposed to amend the said section 10AA by inserting a new sub-section (10) so as to provide that where deduction under section 10AA has been availed by any specified business for any assessment year, no deduction under section 35AD shall be allowed in relation to such specified business for the same or any other assessment year. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 7 of the Bill seeks to amend section 11 of the Income- tax Act relating to income from property held for charitable or religious purposes. The existing provisions of the aforesaid section contain a primary condition that for grant of exemption in respect of income derived from property held under trust, such income should be applied for the charitable purposes in India, and where such income cannot be so applied during the previous year, it has to be accumulated in the prescribed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are the same which have been considered by the Commissioner while granting registration. No action under section 147 shall be taken by the Assessing Officer in case of such trust or institution for any assessment year preceding first assessment year for which the registration applies, merely for the reason that such trust or institution has not obtained registration under section 12AA for the said assessment year. Further, the above benefits would not be available where the registration to the trust or institution has been refused or cancelled by the Commissioner at any time. These amendments will take effect from 1st October, 2014. Clause 9 of the Bill seeks to amend section 12AA of the Income-tax Act relating to procedure for registration. Under the existing provisions contained in sub-section (3) of the aforesaid section, where a trust or an institution has been granted registration and subsequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, then he shall pass an order in writing, cancelling the registration of such tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set after the 31st day of March, 2013 but before the 1st day of April, 2015 and the aggregate amount of actual cost of such new assets exceeds one hundred crore rupees, then, there shall be allowed a deduction, (a) for the assessment year commencing on the 1st April, 2014, of a sum equal to fifteen per cent. of the actual cost of new assets acquired and installed after the 31st March, 2013 but before the 1st April, 2014, if the aggregate amount of actual cost of such new assets exceeds one hundred crore rupees; and (b) for the assessment year commencing on the 1st April, 2015, of a sum equal to fifteen per cent. of the actual cost of new assets acquired and installed after the 31st March, 2013 but before the 1st April, 2015, as reduced by the amount of deduction allowed, if any, under clause (a). It is proposed to insert a new sub-section (1A) in section 32AC so as to provide that where an assessee, being a company, engaged in the business of manufacture or production of any article or thing, acquires and installs new asset and the amount of actual cost of the new assets acquired and installed during any previous year exceeds twenty-five crore rupees, then, there shall be allowed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which has claimed deduction under the said section. It is proposed to amend sub-section (3) of the aforesaid section so as to provide that no deduction shall be allowed to the specified business under section 10AA for any assessment year if such specified business has claimed any deduction under section 35AD. It is further proposed to insert new clauses (ai) and (aj) in sub-section (5) of the aforesaid section to specify that the date of commencement of operation shall be on or after the 1st April, 2014 where the specified business is in the nature of laying and operating a slurry pipeline for the transportation of iron ore or in the nature of setting up and operating a semi-conductor wafer fabrication manufacturing unit and which is notified by the Board in accordance with such guidelines as may be prescribed. It is also proposed to insert a new sub-section (7A) in section 35AD so as to provide that any asset in respect of which a deduction is claimed and allowed under this section shall be used only for the specified business, for a period of eight years beginning with the previous year in which such asset is acquired or constructed. It is also proposed to insert a new sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncurred by an assessee on the activities relating to corporate social responsibility referred to in section 135 of the Companies Act, 2013 shall not be deemed to be an expenditure incurred by the assessee for the purposes of the business or profession. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 14 of the Bill seeks to amend section 40 of the Income-tax Act relating to amounts not deductible. The provisions of section 40 specify the amounts which shall not be deducted in computing the income chargeable under the head Profits and gains of business or profession . The existing provisions contained in sub-clause (i) of clause (a) of aforesaid section provide that payment of any sum by way of interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938), royalty, fees for technical services or other sum chargeable under this Act which are payable outside India or in India to a non-resident, not being a company or a foreign company on which tax is deductible under Chapter XVII-B, shall be disallowed in case of non- deduction of tax or n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contained in first proviso of sub-clause (ia) of clause (a) of aforesaid section provide that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) of section 139, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. It is also proposed to amend first proviso of sub-clause (ia) of clause (a) of aforesaid section to provide that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) of section 139, thirty per cent. of such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 15 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 e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee, whichever is higher. It is further proposed to make consequential amendment in the Explanation to said section to omit the reference to heavy goods vehicle. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 17 of the Bill seeks to amend section 45 of the Income-tax Act relating to capital gains. The existing provisions contained in section 45 provide for charging of any profits or gains arising from transfer of a capital asset. Sub-section (5) provides for taxation of capital gains arising from transfer by way of compulsory acquisition, where the compensation is enhanced or further enhanced by a court, Tribunal or other authority. Clause (b) of the said sub-section provides that where the amount of compensation is enhanced by any court, Tribunal or other authority, it shall be deemed to be income chargeable of the previous year in which amount is received by the assessee. It is proposed to insert a proviso to said clause (b) of sub-section (5) of the aforesaid section, so as to provide that any amount of compensation received in pursuance of an interim order of a court, Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seventy-five per cent. of average rise in the Consumer Price Index (Urban) for the immediately preceding previous year to such previous year. This amendment will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year 2016-17 and subsequent assessment years. Clause 20 of the Bill seeks to amend section 49 of the Income- tax Act relating to cost with reference to certain modes of acquisition. The existing provisions of the aforesaid section provide for the ways of determining cost with reference to certain modes of acquisition. It is proposed to amend section 49 so as to provide that where the capital asset, being a unit of a business trust, became the property of the assessee in consideration of a transfer referred to in clause (xvii) of section 47, the cost of acquisition of the asset shall be deemed to be the cost of acquisition to him of the share referred to in the said clause. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 21 of the Bill seeks to amend section 51 of the Income-tax Act relating to advance money received. The existin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a period of six months invested the whole or part of capital gains in the long-term specified asset, the proportionate capital gains so invested in the long-term specified asset out of total capital gain shall not be charged to tax. The proviso to the said sub-section provides that the investment made in the long-term specified asset during any financial year shall not exceed fifty lakh rupees. It is proposed to insert a proviso below first proviso in said sub-section (1) so as to provide that the investment made by an assessee in the long-term specified asset, from capital gains arising from transfer of one or more original assets, during the financial year in which the original asset or assets are transferred and in the subsequent financial year does not exceed fifty lakh rupees. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to assessment year 2015-16 and subsequent years. Clause 24 of the Bill seeks to amend section 54F of the Income-tax Act relating to capital gain on transfer of certain capital assets not to be charged in case of investment in residential house. The existing provisions contained in sub-section (1) of section 54F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt will take effect from 1st April, 2015 and will, accordingly, apply in relation to assessment year 2015-16 and subsequent years. Clause 27 of the Bill seeks to amend section 80C of the Income-tax Act relating to deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. The existing provisions of sub-section (1) of section 80C provide that in computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of the said section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one lakh rupees. It is proposed to amend sub-section (1) so as to raise the limit of deduction from one lakh rupees to one hundred and fifty thousand rupees. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 28 of the Bill seeks to amend section 80CCD of the Income-tax Act relating to deduction in respect of contribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f it begins to generate power at any time during the period beginning on 1st April, 1993 and ending on 31st March, 2014; (b) starts transmission or distribution by laying a network of new transmission or distribution lines at any time during the period beginning on 1st April, 1999 and ending on 31st March, 2014; (c) undertakes substantial renovation and modernisation of the existing network of transmission or distribution lines at any time during the period beginning on 1st April, 2004 and ending on 31st March, 2014. It is proposed to amend sub-clauses (a), (b) and (c) of clause (iv) of the said sub-section so as to extend the time limit from 31st March, 2014 to 31st March, 2017. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015- 16 and subsequent years. Clause 31 of the Bill seeks to amend section 92B of the Income-tax Act relating to meaning of international transaction. The existing provisions of section 92B provide for the meaning of international transaction for the purposes of applicability of transfer pricing regime. Sub-section (1) defines International transaction as a transaction between two or more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s length price or specify the manner in which arm s length price shall be determined in relation to an international transaction entered into by the person during any period not exceeding four previous years preceding the first of the previous year for which the agreement applies in case of future transactions. It is further provided that where such agreement provides for determination in respect of past transactions, the arm s length price of such transactions shall be determined in accordance with the agreement. This amendment will take effect from 1st October, 2014. Clause 33 of the Bill seeks to amend section 111A of the Income-tax Act relating to tax on short-term capital gains in certain cases. The provisions of sub-section (1) of section 111A provide for the levy of tax at concessional rate of fifteen per cent. in certain cases. It is proposed to amend the said sub-section so as to provide that the concessional rate of tax shall apply to the transfer of a unit of a business trust as they apply in case of a unit of an equity oriented fund. It is further proposed that the provisions of this sub-section shall not apply in respect of any income arising from transfer of units of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) or a foreign company includes distributed income being interest referred to in sub-section (2) of section194LBA such income shall be taxable at the rate of five per cent. It is further proposed to make consequential amendments in item (BA) and item (D) of clause (a) of sub-section (1) of section 115A. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015- 16 and subsequent years. Clause 36 of the Bill seeks to amend section 115BBC of the Income-tax Act relating to anonymous donations to be taxed in certain cases. The existing provisions of section 115BBC of the Income-tax Act provide for computation of income-tax payable by an assessee, being a person in receipt of income on behalf of any university or other educational institution referred to in sub-clause (iiiad) or sub-clause (vi) or any hospital; or other institution referred to in sub-clause (iiiae) or sub-clause (via) or any fund or institution referred to in sub-clause (v) of clause (23C) of section 10 or any trust or institution referred to in section 11, where such income includes any income by way of anonymous donation. It is proposed to amend clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll be increased by deductions claimed under Part C of Chapter VI-A and deductions claimed under section 10AA to arrive at adjusted total income. It is proposed to insert a new clause (iii) in sub-section (2) so that the total income shall be increased by the deduction claimed under section 35AD as reduced by the amount of depreciation allowable in accordance with the provisions of section 32 to arrive at adjusted total income. These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years. Clause 39 of the Bill seeks to amend section 115JEE of the Income-tax Act relating to application of the Chapter XII-BA to certain persons. The existing provisions of sub-section (1) of section 115JEE provide that the Chapter shall be applicable to any person who has claimed a deduction under Part C of Chapter VI-A or claimed a deduction under section 10AA. Further the present provisions of sub-section (2) of section 115JEE provide that the Chapter shall not be applicable to an individual or an Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to amend the said section to provide that for the purposes of determining the additional income-tax payable in accordance with said sub-section (2), the amount of distributed income, referred to therein, shall be increased to such amount as would, after reduction of the additional income-tax on such increased amount at the rate specified in sub-section (2), be equal to the amount of income distributed by the Mutual Fund. This amendment will take effect from 1st October, 2014. The existing provisions contained in sub-section (3A) of section 115R provide that the person responsible for making payment of the income distributed by the Unit Trust of India or a Mutual Fund and the Unit Trust of India or the Mutual Fund, as the case may be, shall on or before the 15th September in each year, furnish to the prescribed income-tax authority, a statement in the prescribed form and verified in the prescribed manner, giving the details of the amount of income distributed to unit holders during the previous year, the tax paid thereon and such other relevant details as may be prescribed. It is proposed to omit sub-section (3A) of the aforesaid section 115R. This amendment will take effect from 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Principal Directors General of Income-tax and Principal Directors of Income-tax as income-tax authorities under the said section 116. These amendments will take effect retrospectively from 1 st June, 2013. Clause 45 of the Bill seeks to amend section 133A of the Income-tax Act relating to power of survey. The existing provision contained in section 133A empowers the income-tax authority to enter a premises in which business or profession is carried out for the purposes of survey. It is proposed to amend section 133A so as to insert sub- section (2A) after sub-section (2) so as to provide that without prejudice to the provisions of sub-section (1), an income-tax authority acting under this sub-section may for the purpose of verifying that tax has been deducted or collected at source in accordance with the provisions under sub-heading B of Chapter XVII or under sub-heading BB of Chapter XVII, as the case may be, enter, after sunrise and before sunset, any office, or any other place where business or profession is carried on, within the limits of the area assigned to him, or any place in respect of which he is authorised for the purposes of this section by such income-tax authority wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mend section 139 of the Income-tax Act relating to return of income. The existing provisions contained in sub-section (4C) of section 139, inter alia, provide for filing return of income by certain entities whose income is exempt under section 10 of the Act. It is proposed to amend sub-section (4C) of section 139 so as to provide that Mutual Fund referred to in clause (23D) of section 10 and securitisation trust referred to in clause (23DA) of section 10 and Venture Capital Company or Venture Capital Fund referred to in clause (23FB) of section 10 shall, if the total income in respect of which such fund, trust or company is assessable, without giving effect to the provisions of section 10, exceeds the maximum amount which is not chargeable to income-tax, furnish a return of such income of the previous year in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed and all the provisions of the Act, so far as may be, apply as if it were a return required to be furnished under sub-section (1) of the said section 139. It is also proposed to insert a new sub-section (4E) in section 139 so as to provide for filing of return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g heard to the assessee. Sub-section (5) seeks to provide that the Valuation Officer may estimate the value of the asset, property or investment to the best of his judgment, if the assessee does not co-operate or comply with his direction. Sub-section (6) seeks to provide that the Valuation Officer shall send a copy of the report of the estimate made under sub- section (4) or sub-section (5) to the Assessing Officer and the assessee, within a period of six months from the end of the month in which a reference is made under sub-section (1). Sub-section (7) seeks to provide that the Assessing Officer on receipt of the report from the Valuation Officer may, after giving the assessee an opportunity of being heard, take into account such report in making the assessment or reassessment. Explanation occuring after the proposed sub-section (7) seeks to provide that the Valuation Officer shall have the same meaning as in clause (r) of section 2 of the Wealth-tax Act. This amendment will take effect from 1st October, 2014. Clause 50 of the Bill seeks to amend section 145 of the Income-tax Act relating to method of accounting. The existing provisions contained in sub-section (1) of the said s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the date on which the Assessing Officer makes a reference to Valuation Officer under sub-section (1) of section 142A and ending with the date on which the report of the Valuation Officer is received by the Assessing Officer shall be excluded in computing the period of limitation for the purposes of section 153. This amendment will take effect from 1st October, 2014. Clause 52 of the Bill seeks to amend section 153B of the Income-tax Act relating to time limit for completion of assessment under section 153A. The existing provisions contained in the Explanation to section 153B provide that certain periods specified therein are to be excluded while computing the period of limitation laid down in the said section for completion of assessment under section 153A. It is proposed to insert a new clause (iia) in the aforesaid Explanation so as to provide that the period commencing from the date on which the Assessing Officer makes a reference to Valuation Officer under sub-section (1) of section 142A of the Income-tax Act and ending with the date on which the report of the Valuation Officer is received by the Assessing Officer shall be excluded in computing the period of limitation for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 194A so as to exempt from deduction of tax at source, the interest income payable by special purpose vehicle to a business trust. This amendment will take effect from 1st October, 2014. Clause 55 of the Bill seeks to insert a new section 194DA in the Income-tax Act relating to payment in respect of life insurance policy. It is proposed to insert a new section 194DA so as to provide that any person responsible for paying to a resident any sum under a life insurance policy, including the sum allocated by way of bonus on such policy, other than the amount not includible in the total income under clause (10D) of section 10, shall, at the time of payment thereof, deduct income-tax thereon at the rate of two per cent. It is further proposed to provide that no deduction shall be made where the amount of such payment or, as the case may be, the aggregate amount of such payments to the payee during the financial year is less than one hundred thousand rupees. This amendment will take effect from 1st October, 2014. Clause 56 of the Bill seeks to insert a new section 194LBA in the Income-tax Act which relates to certain income from business trust. The said new section proposes to provide for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed. It is proposed to insert a proviso to the aforesaid sub-section so as to provide that the person who delivered statement under the aforesaid sub-section may also deliver to the prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under this sub-section in such form and verified in such manner as may be specified by the authority. This amendment will take effect from 1st October, 2014. Clause 59 of the Bill seeks to amend section 200A of the Income-tax Act relating to processing of statements of tax deducted at source. The existing provisions contained in sub-section (1) of the aforesaid section provide that where a statement of tax deduction at source has been made by a person deducting any sum under section 200, such statement shall be processed in the manner provided in the said sub-section. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said section so as to provide that where any notice of demand has been served upon an assessee and any appeal or other proceeding, as the case may be, is filed or initiated in respect of the amount specified in the said notice of demand, then, such demand shall be deemed to be valid till the disposal of the appeal by the last appellate authority or disposal of the proceedings, as the case may be, and any such notice of demand shall have the effect as specified in section 3 of the Taxation Laws (Continuation and Validation of Recovery Proceedings) Act, 1964. The first proviso to sub-section (2) of the said section provides that where as a result of an order under section 154, or section 155, or section 250, or section 254, or section 260, or section 262, or section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the amount on which interest was payable under this section had been reduced, the interest shall be reduced accordingly and the excess interest paid, if any, shall be refunded. It is proposed to insert second proviso in the said section so as to provide that where as a result of an order under sections specified in the first proviso, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aggregate amount of such loans or deposits together with interest, if any payable thereon, is twenty thousand rupees or more. This amendment will take effect from 1st April, 2015 and will, accordingly, apply in relation to assessment year 2015-16 and subsequent years. Clause 65 of the Bill seeks to amend section 271FA of the Income-tax Act relating to penalty for failure to furnish annual information return. The existing provisions of section 271FA provides for penalty for failure to furnish an annual information return. It is proposed to amend the said section so as to provide for penalty for failure to furnish statement of financial transaction or reportable account. This amendment will take effect from 1st April, 2015. Clause 66 of the Bill seeks to insert a new section 271FAA in the Income-tax Act to provide for penalty for furnishing inaccurate statement of financial transaction or reportable account. It is proposed to insert a new section 271FAA so as to provide that if a person referred to in clause (k) of sub-section (1) of section 285BA, who is required to furnish a statement of financial transaction or reportable account, provides inaccurate information in the statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Act which relates to failure to produce accounts and documents. The existing provisions of section 276D provide that if a person wilfully fails to produce accounts and documents as required in any notice issued under sub-section (1) of section 142 or wilfully fails to comply with a direction issued to him under sub-section (2A) of section 142, he shall be punishable with rigorous imprisonment for a term which may extend to one year or with fine equal to a sum calculated at a rate which shall not be less than four rupees or more than ten rupees for every day during which the default continues, or with both. It is proposed to amend section 276D, so as to provide that if a person wilfully fails to produce accounts and documents as required in any notice issued under sub-section (1) of section 142 or wilfully fails to comply with a direction issued to him under sub-section (2A) of section 142, he shall be punishable with rigorous imprisonment for a term which may extend to one year and with fine. This amendment will take effect from 1st October, 2014. Clause 70 of the Bill seeks to amend section 281B of the Income-tax Act relating to provisional attachment to protect revenue i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the correct information in the manner as may be prescribed. It is also proposed that the Central Government may, by rules, specify, (a) the persons referred to in sub-section (1) to be registered with the prescribed income-tax authority; (b) the nature of information and the manner in which such information shall be maintained by the persons referred to in clause (a); and (c) the due diligence to be carried out by the persons for the purpose of identification of any reportable account referred to in sub-section (1). This amendment will take effect from 1st April, 2015. Indirect Taxes Customs Clause 72 of the Bill seeks to amend the Customs Act so as to provide that a reference in the Customs Act to a Chief Commissioner of Customs or a Commissioner of Customs may also include a reference to the Principal Chief Commissioner of Customs or the Principal Commissioner of Customs, as the case may be. Clause 73 of the Bill seeks to amend section 3 of the Customs Act so as to provide for inclusion of Principal Chief Commissioner of Customs and Principal Commissioner of Customs in the class of officers of customs. Clause 74 of the Bill seeks to amend section 15 of the Customs Act to insert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g provision on interest on delayed payment of duty. It also seeks to omit sub-section (2) as the same has become redundant and leads to different interpretations. Clause 79 of the Bill seeks to amend clause (i) of sub-section (1) of section 127L of the Customs Act so as to insert an Explanation thereto to clarify that the concealment of particulars of duty liability relates to any such concealment made from the officer of Customs, to avoid confusion as to whether the concealment is from officer of customs or Settlement Commission and making the provision clear. Clause 80 of the Bill seeks to substitute the words rupees fifty thousand with the words rupees two lakhs in the second proviso to sub-section (1) of section 129A of the Customs Act so as to enable the discretionary powers of the Tribunal to refuse admission of appeal in cases up to rupees two lakhs. It also seeks to enable the Board to constitute a committee by issuing an order instead of a notification to be published in the Official Gazette. Clause 81 of the Bill seeks to amend section 129B to omit first, second and third proviso of sub-section (2A) of section 129B so as to make consequential changes in view of substituti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat a reference in that Act to a Chief Commissioner of Central Excise or a Commissioner of Central Excise may also include a reference to the Principal Chief Commissioner of Central Excise or the Principal Commissioner of Central Excise, as the case may be. Clause 89 of the Bill seeks to amend clause (b) of section 2 of the Central Excise Act so as to provide for inclusion of Principal Chief Commissioner of Central Excise and Principal Commissioner of Central Excise in the definition of the Central Excise Officer. Clause 90 of the Bill seeks to insert a new section 15A in the Central Excise Act so as to empower the Central Government to prescribe an authority or agency to whom the information return shall be filed by the specified persons such as Income-tax authorities, State Electricity Boards, VAT or Sales Tax authorities, Registrar of Companies. Information can be collected for the purposes of the Act, such as, to identify tax evaders or recover confirmed dues. It also seeks to insert new section 15B which provides for imposition of penalty on failure to furnish information return. Clause 91 of the Bill seeks to amend clause (g) of section 31 of the Central Excise Act so as to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Act to provide for deposit of certain percentage of duty demanded or penalty imposed or both before filing an appeal. It also seeks to provide that the provisions of this section shall not be applicable to stay applications and appeals before the Appellate Authorities prior to the enactment of the Bill. Clause 99 of the Bill seeks to insert a new sub-section (2) in section 35L of the Central Excise Act so as to clarify that determination of disputes relating to taxability or excisability is covered under the expression determination of any question having a relation to rate of duty . Clause 100 of the Bill seeks to insert the words The Commissioner (Appeals) in sub-section (4) of section 35R so as to enable the Commissioner (Appeals) hearing an appeal, application, revision or reference to take into consideration the circumstances under which the appeal, application, revision or reference was not filed by the Commissioner of Customs pursuant to the order, instruction or directions issued under sub- section (1) thereof. Clause 101 of the Bill seeks to amend rule 8 of the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008, publishe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Central Excise Tariff Act in the manner specified in the Eighth Schedule so as to, (a) revise the rate of excise duty on certain tariff items; (b) omit a tariff item; (c) incorporate changes in a tariff item; and (d) amend units specified in column (3) in respect of certain goods. Service tax Clause 106 of the Bill seeks to amend certain provisions in Chapter V of the Finance Act, 1994, relating to service tax, in the following manner Sub-clause (A) seeks to amend clause (32) of section 65B so as to exclude radio taxi from the definition of metered cab and also to insert a new clause (39a) therein to provide for the definition of print media , with effect from such date as the Central Government may, by notification, appoint. Sub-clause (B) seeks to amend section 66D so as to, (a) substitute clause (g) and specify sale of space for print media in the negative list of services; (b) omit radio taxis from sub-clause (vi) of clause (o) so as to provide for levy of service tax on services by radio taxis, with effect from such date as the Central Government may, by notification, appoint. Sub-clause (C) seeks to amend section 67A so as to substitute the Explanation defining the rate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the Finance Act, 2001 to omit tariff item 2402 20 60 and the entries relating thereto. Clause 108 of the Bill seeks to amend section 13 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002. The existing provisions contained in sub-section (1) of section 13 of the aforesaid Act provide that notwithstanding anything contained in the Income-tax Act, 1961, or any other enactment for the time being in force relating to tax or income, profits or gains, no income-tax or any other tax shall be payable by the Administrator up to the 31st day of March, 2014 in respect of any income, profits or gains derived, or any amount received in relation to the specified undertaking. It is proposed to amend sub-section (1) of the said section so as to extend the income-tax exemption to the said undertaking from the period beginning on the 1st April, 2014 to 31st March, 2019. This amendment will take effect retrospectively from 1st April, 2014. Clause 109 of the Bill seeks to amend Chapter VII of the Finance (No. 2) Act, 2004 which deals with levy of securities transaction tax on transaction of equity shares of a company on the stock exchange. It is proposed to amend the said Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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