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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 ..... source during the financial year 2018-2019 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 2018-2019 from income other than Salaries . The rates are the same, as those specified in Part II of the First Schedule to the Finance Act, 2017 for the purposes of deduction of income tax at source during the financial year 2017-2018 except that in the case of long-term capital gains referred to in section 112A of the Incometax Act, tax shall now be deducted at source at the rate of ten per cent. The amount of tax so deducted shall be increased by a surcharge in the case of- ( i ) every non-resident being an individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause ( vii ) of clause ( 31 ) of section 2 of the Incometax Act,- ( a ) at the rate of ten per cent. of such tax, where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds fifty lakh rupees but does not exceed one crore rupees; ( b ) at the rate of fifte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more at any time during the previous year : - Up to ₹ 5,00,000 Nil ₹ 5,00,001 to ₹ 10,00,000 20 per cent. Above ₹ 10,00,000 30 per cent. The surcharge in cases of persons referred to in this paragraph, having total income above fifty lakh rupees but not above one crore rupees, shall be levied at the rate of ten per cent. In cases of persons referred to in this paragraph, having total income above one crore rupees, surcharge shall be levied at the rate of fifteen per cent. Marginal relief will be provided. Paragraph B of this Part specifies the rates of income-tax in the case of every co-operative society. In such cases, the rates of tax will continue to be the same as those specified for assessment year 2018-2019. The surcharge in cases of co-operative societies, having income above one crore rupees shall be levied at the rate of twelve per cent. Marginal relief will be provided. Paragraph C of this Part specifies the rate of income-tax in the case of every firm. In such cases, the rate of tax will continue to be the same as that specified for assessment year 2018-2019. The surcharge in cases of firms, having income above one crore rupees shall be levied at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he First Schedule, there will be no levy of the Health and Education Cess on tax deducted or collected at source in the case of domestic company and any other person who is resident in India. The cess would apply on tax deducted at source in the case of salary payments. It would also be levied in the cases of persons not resident in India and companies other than domestic company. Clause 3 of the Bill seeks to amend section 2 of the Income-tax Act relating to definitions. Clause ( 22 ) of the said section provides the definition of the term dividend . Explanation 2 to the said clause clarifies the expression accumulated profits for the purposes of the said clause. It is proposed to insert a new Explanation to the said clause to provide that in the case of an amalgamated company, accumulated profits or loss in the hands of the amalgamated company shall be increased by the accumulated profits of the amalgamating company, whether capitalised or not, on the date of amalgamation. This amendment will take effect from 1st April, 2018 and will accordingly apply in relation to the assessment year 2018-2019 and subsequent years. Clause ( 24 ) of the said section defines the expression income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to conclude contracts on behalf of the non-resident or habitually concludes contracts or habitually plays the principal role leading to conclusion of contracts by the non-resident and the contracts are- ( i ) in the name of the non-resident; or ( ii ) for the transfer of the ownership of, or for the granting of the right to use, property owned by that non-resident or that non-resident has the right to use; or ( iii ) for the provision of services by that non-resident. It is further proposed to insert a new Explanation 2A in clause ( i ) of sub-section ( 1 ) of the said section so as to provide that the significant economic presence of a non-resident in India shall constitute business connection of the non-resident in India and the significant economic presence for this purpose, shall mean- ( a ) any transaction in respect of any goods, services or property carried out by a non-resident in India including provision of download of data or software in India, if the aggregate of payments arising from such transaction or transactions during the previous year exceeds such amount as may be prescribed; or ( b ) systematic and continuous soliciting of its business activities or engaging i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the said clause so as to provide that for the purposes of determining the amount of application under item ( a ) of the said third proviso, the provisions of sub-clause ( ia ) of clause ( a ) of section 40 and sub-sections ( 3 ) and ( 3A ) of section 40A shall, mutatis mutandis , apply as they apply in computing the income chargeable under the head Profits and gains of business or profession . Clause ( 38 ) of section 10, inter alia , provides for exemption from tax on the income arising from the transfer of a long-term capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust subject to certain conditions specified in the said clause. It is proposed to amend the said clause so as to provide that the provisions of said clause shall not apply to any income arising from the transfer of long-term capital asset, being an equity share in a company or a unit of an equity oriented fund or a unit of a business trust, made on or after the 1st day of April, 2018. These amendments will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent years. Clause ( 46 ) of sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s ( 3 ) and ( 3A ) of section 40A, shall, mutatis mutandis , apply as they apply in computing the income chargeable under the head Profits and gains of business or profession . This amendment will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent years. Clause 7 of the Bill seeks to amend section 16 of the Income-tax Act relating to deductions from salaries. The existing provisions of the said section, inter alia , provide that the income chargeable under the head Salaries shall be computed after making certain deductions specified therein. It is proposed to insert a new clause ( ia ) in the said section so as to provide for deduction of forty thousand rupees or the amount of the salary, whichever is less, for the purpose of computing the income chargeable under the said head. This amendment will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent years. Clause 8 of the Bill seeks to amend section 17 of the Income-tax Act relating to Salary , perquisite and profits in lieu of salary defined. Clause ( v ) of the proviso occurring after sub-cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years. Clause 11 of the Bill seeks to amend section 40A of the Income-tax Act relating to expenses or payments not deductible in certain circumstances. The aforesaid section provides for disallowance of certain expenses or payments while computing income under the head Profits and gains of business or profession . It is proposed to insert a new sub-section ( 13 ) in the said section so as to provide that no deduction or allowance shall be allowed in respect of any marked to market loss or other expected loss except as allowable under the new clause ( xviii ) of sub-section ( 1 ) of section 36. This amendment will take effect retrospectively from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years. Clause 12 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. Clause ( 5 ) of the said section provides for the definition of speculative transaction. Clause ( e ) of the proviso to the said clause ( 5 ) provides that trading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r transfer of the asset and the date of registration of such transfer of asset are not the same, the value assessable by the authority for the purpose of payment of stamp duty in respect of such transfer on the date of the agreement shall be taken if the amount of consideration or a part thereof has been received by any mode other than cash on or before the date of agreement for transfer of the asset. It is proposed to insert a proviso to sub-section ( 1 ) of the said section so as to provide that where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and five per cent. of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of computing profits and gains from transfer of such asset, be deemed to be the full value of the consideration. It is further proposed to amend sub-section ( 4 ) of the said section so as to provide that where the date of agreement fixing the value of consideration for transfer of the asset and the date of registration of such transfer of asset are not the same, the value referred to in sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned by the assessee, whichever is higher, shall be deemed to be the aggregate income. It is proposed to substitute the said sub-section so as to provide that for a heavy goods vehicle, the profits and gains shall be an amount equal to one thousand rupees per ton of gross vehicle weight or unladen weight, as the case may be, for every month or part of a month during which the heavy goods vehicle is owned by the assessee in the previous year or an amount claimed to have been actually earned from such vehicle, whichever is higher. It is further proposed to provide that in the case of a goods carriage other than heavy vehicle, the profits and gains shall be an amount equal to seven thousand five hundred rupees for every month or part of a month during which the goods carriage is owned by the assessee in the previous year or an amount claimed to have been actually earned from such goods carriage, whichever is higher. It is also proposed to define the expressions goods carriage , gross vehicle weight , heavy goods vehicle and unladen weight in the said section. These amendments will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-202 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and five per cent. of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result of the transfer shall, for the purposes of section 48, be deemed to be the full value of the consideration. This amendment will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent years. Clause 20 of the Bill seeks to amend section 54EC of the Income-tax Act relating to capital gain not to be charged on investment in certain bonds. The said section, inter alia , provides that capital gain arising from the transfer of a long-term capital asset, invested in the long-term specified asset at any time within a period of six months after the date of such transfer, shall not be charged to tax subject to certain conditions specified in the said section. It is proposed to amend the said section so as to provide that capital gain arising from the transfer of a long-term capital asset, being land or building or both, invested in the long-term specified asset at any time within a period of six months after the date of such transfer, the capital gain shall not be charged to tax sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sources . This amendment will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent years. It is further proposed to amend the fourth proviso to clause ( x ) of the said sub-section so as to exclude the transfer of capital asset between holding company and its wholly owned Indian subsidiary company and between subsidiary company and its Indian holding company, which are not regarded as transfer under clause ( iv ) or clause ( v ) of section 47, from the scope of clause ( x ) of the said sub-section. This amendment will take effect from 1st April, 2018. It is also proposed to insert a new clause ( xi ) in sub-section ( 2 ) of the said section so as to provide that any compensation or other payment due to or received by any person, by whatever name called, in connection with the termination of his employment or the modification of the terms and conditions relating thereto shall be chargeable to income-tax under the head Income from other sources . This amendment will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent years. Clause 22 of the Bill s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed only if the return is filed within the due date specified under sub-section ( 1 ) of section 139. This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-2019 and subsequent years. Clause 24 of the Bill seeks to amend section 80D of the Income-tax Act relating to deduction in respect of health insurance premia. The said section, inter alia, provides that for medical insurance or preventive health check-up of a senior citizen, deduction of thirty thousand rupees shall be allowed. Further, in the case of very senior citizens, the said section also provides for a deduction of medical expenditure within the overall limits of thirty thousand rupees. It is proposed to amend the said section so as to provide that the deduction of fifty thousand rupees in aggregate shall be allowed to senior citizens in respect of medical insurance or preventive health check-up or medical expenditure. It is further proposed to provide that where an amount is paid in lump sum in the previous year to effect or to keep in force an insurance on the health of a person specified therein for more than a year, then, subject to the provisions of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in innovation, development or improvement of products or processes or services or a scalable business model with a high potential of employment generation or wealth creation. These amendments will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-2019 and subsequent years. Clause 27 of the Bill seeks to amend section 80JJAA of the Income-tax Act relating to deduction in respect of employment of new employees. The said section provides for a deduction of thirty per cent. of emoluments paid to a new employee for three years. In order to claim the deduction, the new employee must be employed for more than two hundred and forty days in the year of employment or one hundred and fifty days in case of business of manufacturing of apparel, subject to certain conditions. It is proposed to amend the said section so as to provide that in the case of business of manufacturing of footwear or leather products, the minimum number of days of employment in the years of employment shall be one hundred and fifty days in place of two hundred and forty days. It is further proposed to provide that where a new employee is employed during the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l or a Hindu undivided family, includes any income by way of interest on deposits in a savings bank account with certain entities. It is proposed to amend the said section so as to provide that the assessee referred to in section 80TTB shall not be eligible for the benefit of deduction under this section. This amendment will take effect from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent years. Clause 30 of the Bill seeks to insert a new section 80TTB in the Income-tax Act relating to deduction in respect of interest on deposits made by senior citizens. The proposed new section, inter alia, provides that where the gross total income of an assessee, being a senior citizen, includes any income by way of interest on deposits with a banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act) or a co-operative society engaged in the business of banking (including a co-operative land mortgage bank or a co-operative land development bank) or a Post Office as defined in clause ( k ) of section 2 of the Indian Post Office Act, 1898, a deduction o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red into on or after the 1st day of October, 2004 and such transaction is not chargeable to securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004. It is also proposed to provide that capital gains under the said section shall be computed without giving effect to the first and second proviso to section 48. It is also proposed to provide that the cost of acquisition for the purposes of computing capital gains under the section in respect of capital asset acquired by the assessee before the 1st day of February, 2018, shall be as provided in the said section. It is also proposed to provide that where the gross total income of an assessee includes any long-term capital gains, deduction under Chapter VI-A shall be allowed from the gross total income as reduced by such capital gains. It is also proposed to provide that where the total income of an assessee includes any long-term capital gains referred to in the said section, the rebate under section 87A shall be allowed from the income-tax on the total income as reduced by tax payable on such capital gains. It is also proposed to define the expressions equity oriented fund , fair market value , International Financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d after making certain adjustments to the net profit disclosed in the profit and loss account prepared in accordance with the provisions of the Companies Act, 2013. It is proposed to amend Explanation 1 to the said section so as to provide that in case of a company, against whom an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code, 2016, the aggregate amount of unabsorbed depreciation and loss brought forward shall be allowed to be reduced from the book profit and the loss shall not include depreciation. These amendments will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-2019 and subsequent years. It is also proposed to insert a new Explanation 4A in the said section so as to clarify that the provisions of the said section shall not be applicable and shall be deemed never to have been applicable to an assessee, being a foreign company, where its total income comprises solely of profits and gains from business referred to in section 44B or section 44BB or section 44BBA or section 44BBB and such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of dividend under sub-clause ( e ) of clause ( 22 ) of section 2 from the applicability of grossing up provisions of the said sub-section. These amendments will take effect from 1st April, 2018. Clause 39 of the Bill seeks to omit the Explanation occurring after section 115Q of the Income-tax Act. The said Explanation clarifies that the expression dividends shall have the same meaning as is given in clause ( 22 ) of section 2 but shall not include sub-clause ( e ) thereof. It is proposed to omit the said Explanation consequent to the amendments made to section 115-O. This amendment will take effect from 1st April, 2018. Clause 40 of the Bill seeks to amend section 115R of the Income-tax Act relating to tax on distributed income to unit holders. The said section, inter alia , provides that any amount of income distributed by the specified company or a Mutual Fund to its unit holders shall be chargeable to tax and such specified company or Mutual Fund shall be liable to pay additional income-tax on such distributed income at the rate specified in the said section. However, in respect of any income distributed to a unit holder of equity oriented funds in respect of any distributi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause 43 of the Bill seeks to amend section 140 of the Income-tax Act relating to return by whom to be verified. It is proposed to amend the said section so as to provide that where in respect of a company an application has been admitted by the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code, 2016, the return shall be verified by the insolvency professional appointed by such Adjudicating Authority. It is further proposed to define the expressions insolvency professional and Adjudicating Authority in the said section. These amendments will take effect from 1st April, 2018. Clause 44 of the Bill seeks to amend section 143 of the Income-tax Act relating to assessment. Clause ( a ) of sub-section ( 1 ) of the said section provides that at the time of processing of return of income made under section 139, or in response to a notice under sub-section ( 1 ) of section 142, the total income or loss shall be computed after making the adjustments specified in clauses ( i ) to ( vi ) therein. Sub-clause ( vi ) of the said clause provides for adjustment in respect of addition of income appearing in Form 26AS or Form 16A or Form 16 which h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me called, under any law for the time being in force, shall include all such payment notwithstanding any right arising as a consequence to such payment for the purposes of the said section. The proposed new section 145B provides that notwithstanding anything to the contrary contained in section 145, the interest received by an assessee on any compensation or on enhanced compensation, as the case may be, shall be deemed to be the income of the year in which it is received. It is further proposed to provide that the claim for escalation of price in a contract or export incentives shall be deemed to be the income of the previous year in which reasonable certainty of its realisation is achieved. It is also proposed to provide that income referred to in sub-clause (xviii) of clause ( 24 ) of section 2 shall be deemed to be the income of the previous year in which it is received, if not charged to income tax for any earlier previous year. These amendments will take effect retrospectively from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent years. Clause 46 of the Bill seeks to amend section 193 of the Income-tax Act relating to int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for the purposes of Chapter V of the Customs Act, 1962 after the date of appointment of Customs Authority for Advance Rulings. It is also proposed that where the Authority for Advance Rulings under section 245-O is dealing with an application seeking advance ruling in the matters of the Income-tax Act, the revenue Member of the Bench shall be such member as referred to in sub-clause ( i ) of clause ( c ) of sub-section ( 3 ) of the said section. These amendments will take effect from 1st April, 2018. Clause 49 of the Bill seeks to amend section 245Q of the Incometax Act relating to application for advance ruling. The said section provides for filing of application for advance ruling under this Act or under Chapter V of the Customs Act, 1962 or under Chapter IIIA of the Central Excise Act, 1944 or under Chapter VA of the Finance Act, 1994. It is proposed to amend the said section so as to omit the provisions with regard to admissibility of applications for advance ruling under Chapter V of the Customs Act, 1962. This amendment is consequential in nature. This amendment will take effect from 1st April, 2018. Clause 50 of the Bill seeks to amend section 253 of the Income-tax Act rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al group. The said section, inter alia , provides for specific reporting regime containing revised standards for transfer pricing documentation and a template for country-by-country reporting. Sub-section ( 2 ) of the said section provides that the parent entity or the alternate reporting entity of an international group which is resident in India shall furnish a report in respect of the international group on or before the due date specified under sub-section ( 1 ) of section 139 for furnishing of return of income of the relevant accounting year. It is proposed to amend the said sub-section so as to provide that the said report for every reporting accounting year shall be furnished within a period of twelve months from the end of said reporting accounting year. It is further proposed to amend sub-section ( 3 ) to give reference therein of the report to be furnished under sub-section ( 4 ). It is also proposed to amend sub-section ( 4 ) so as to provide in cae of a constituent entity, resident in India, whose parent entity is outside India that,- ( a ) report of the nature referred to in sub-section ( 2 ) shall be furnished within the period specified in sub-section (2); and ( b ) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de that regulatory requirements relating to import or export of goods or class of goods or clearance thereof, in any other law or the rules or regulations made, or any order or notifications issued, thereunder, shall be required to be notified under this Act, with such exceptions or modifications or adaptations as the Central Government deems fit. Clause 58 of the Bill seeks to amend section 17 of the Customs Act so as to broaden the scope of verification by the proper officer to include all aspects of declarations made in the bill of entry or shipping bill in addition to self-assessment. It is further proposed to provide for the risk based selection of self-assessment. The scope of re-assessment is also proposed to be broadened beyond valuation, classification and exemption or concessions of duty availed consequent to any notification issued therefor under this Act. Clause 59 of the Bill seeks to amend section 18 of the Customs Act relating to provisional assessment of duty. It is proposed to widen the scope of provisional assessment to cover export consignments. It is further proposed to specify by regulations the time and manner of finalisation of provisional assessment. It is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsequently, the demand of duty for five years is quashed by the Appellate Authority or Appellate Tribunal or court on final determination, in such case, at least the demand which pertains to the normal period of two years shall be deemed to be sustainable and proceeded on that basis. It also proposes to insert an Explanation therein, to the effect that any notice issued for non-levy, not paid, short-levy or shortpaid or erroneous refund after the 14th day of May, 2015, but before the date on which the Finance Bill, 2018 receives the assent of the President shall continue to be governed by the provisions of section 28 as it stood immediately before the date of such assent. Clause 62 of the Bill seeks to amend section 28E of the Customs Act to align the definition of the term applicant in the advance ruling provisions with the Trade Facilitation Agreement. The definition of applicant is proposed to be broad based so as to include large number of importers, exporters and other people with justiciable cause to the satisfaction of the Authority. It also seeks to amend the definition of advance ruling so as to make it broad based covering aspects beyond mere determination of duty. The e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 70 of the Bill seeks to substitute the existing section 28M of the Customs Act with a new section so as to provide that procedure for Customs Authority for Advance Rulings may be provided by regulations by the Board. It also seeks to provide that the Appellate Authority shall regulate its own procedure for the purpose of conducting its proceedings. Clause 71 of the Bill seeks to amend section 30 of the Customs Act so as to include export goods in addition to imported goods as part of the information provided in the manifest. It also seeks to provide by regulation the manner of delivery of manifest. Clause 72 of the Bill seeks to amend section 41 of the Customs Act so as to include imported goods in addition to export goods as part of the information provided in the manifest and provide penalty provisions of late filing of manifest and the manner of delivery of manifest, by regulations. Clause 73 of the Bill seeks to make consequential amendments in section 45 in view of the amendments in sections 47, 51 and 60 so as to enable clearance by customs automated system. Clause 74 of the Bill seeks to amend section 46 of the Customs Act so as to insert a reference to customs automated sys ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herein, to provide for customs automated system based clearance in addition to clearance by the proper officer. Clause 81 of the Bill seeks to amend section 68 of the Customs Act so as to insert a proviso therein, to provide for customs automated system based clearance in addition to clearance by the proper officer. Clause 82 of the Bill seeks to amend section 69 of the Customs Act so as to insert a proviso therein, to provide for customs automated system based clearance in addition to clearance by the proper officer. Clause 83 of the Bill seeks to amend section 74 of the Customs Act to omit the reference to section 82 therein, which had been omitted vide section 104 of the Finance Act, 2017. However, as reference to section 82 is still existing in clause ( iii ) to sub-section ( 1 ) of that section, it is proposed to substitute the said reference with clause ( a ) to section 84 . Clause 84 of the Bill seeks to amend section 75 of the Customs Act to omit reference to section 82 , which had been omitted vide section 104 of the Finance Act, 2017. However, as reference to section 82 is still existing in sub-section ( 1 ) of section 75, it is proposed to substitute reference to section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st a noticee or co-noticee are deemed to be concluded on grounds of having paid the dues mentioned in section 28, then, the provisions of this section shall not apply to confiscated goods provided the goods are not prohibited or restricted. It is further proposed to insert a new sub-section ( 3 ) therein, so as to provide that where the redemption fine under section 125 has not been paid within a period of one hundred and twenty days from the date of option under sub-section ( 1 ), then, such option shall become void, except in cases where any appeal against such order is pending. It is also proposed to insert an Explanation therein, so as to provide that against any order passed under sub-section ( 1 ) before the date on which the Finance Bill, 2018 receives the assent of the President, if no appeal is pending, such option may be exercised within one hundred and twenty days from the date on which such assent is received. Clause 94 of the Bill seeks to amend sub-section ( 3 ) of section 128A of the Customs Act, to empower the Commissioner (Appeals) to remand the cases to original authority in certain circumstances. Clause 95 of the Bill seeks to insert a new section 143AA in the Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mend section 157 of the Customs Act so as to empower the Board, inter alia , to make regulations for the time and manner of finalisation of provisional assessment; the manner of conducting pre-notice consultations; the circumstances under which, and the manner in which supplementary notice may be issued; the form and manner in which an application for advance ruling or appeal shall be made, and the procedure for the Authority under Chapter VB; the manner of clearance or removal of imported or export goods; the documents to be furnished in relation to imported goods; the conditions, restrictions and the manner for deposits in electronic cash ledger, the utilisation and refund therefrom and the manner of maintaining such ledger; the manner of conducting audit; the goods for controlled delivery and the manner thereof; and the measures and separate procedure or documentation for a class of importers or exporters or categories of goods or on the basis of the modes of transport of goods. Clause 99 of the Bill seeks to give retrospective effect to the notification number G.S.R. 850( E ), dated the 8th July, 2017 amending the notification number G.S.R. 785( E ), dated the 30th June, 2017 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 30th day of June, 2017. Clause 104 of the Bill seeks to provide exemption from service tax to services provided by the Goods and Services Tax Network to the Central Government or the State Governments or Union territory administrations, retrospectively, during the period from the 28th March, 2013 to the 30th June, 2017. Clause 105 of the Bill seeks to provide retrospective exemption from service tax on provision of services by way of grant of licence or lease to explore or mine petroleum crude or natural gas or both, from so much of the service tax as is leviable on the consideration paid to the Government in the form of Government's share of profit petroleum, as defined in the contract entered into by the Government in this behalf, during the period from the 1st day of April, 2016 to the 30th day of June, 2017. Repeal and savings of certain enactments Clause 106 of the Bill seeks to repeal certain enactments specified in the Fifth Schedule to the extent mentioned in the fourth column thereof. Clause 107 of the Bill seeks to provide for collection and payment of arrears of duties notwithstanding the repeal of the enactments specified in the Fifth Schedule with effect from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age of ten years. It further provides that the guardian of a minor below the age of ten years may open and operate an account on behalf of such minor. Clause 117 of the Bill seeks to substitute sub-section ( 1 ) of section 4 of the Act to give the depositor the right to specify whether the nominee shall get the specified amount in respect of a deceased's account as an owner or as a trustee. It further provides to insert a new sub-section ( 4 ) to provide for cancellation of nomination in case of transfer of deposits. Clause 118 of the Bill seeks to amend section 4A of the Act so as to insert a new sub-section ( 3A ) to make a provision for payment of the amount due to the guardian in case of death of a depositor who is minor or of unsound mind and no nomination has been made in this regard before the commencement of Part I of Chapter VIII of the Finance Act, 2018. Clause 119 of the Bill seeks to amend section 5 of the Act to substitute certain words. Clause 120 of the Bill seeks to amend section 6 of the Act to substitute certain words. Clause 121 of the Bill seeks to amend section 7 of the Act to substitute certain words. Clause 122 of the Bill seeks to insert a new section 7A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 2 and sub-clause ( ii ) of clause ( b ) of section 3A of the President's Emoluments and Pension Act, 1951. Section 1A of the said Act relates to emoluments of the President. It is proposed to enhance the present emoluments of one lakh fifty thousand rupees to five lakh rupees per mensem retrospectively with effect from 1st January, 2016. Section 2 of the aforesaid Act relates to pension to the retiring Presidents. Clause ( b ) of sub-section ( 2 ) of section 2 relates to payment of office expenses at the rate of sixty thousand rupees per annum. It is proposed to enhance the said sum to one lakh rupees. Section 3A of the aforesaid Act relates to free accommodation to the spouse of the President. Sub-clause ( ii ) of clause ( b ) of section 3A provides for payment of office expenses at the rate of twelve thousand rupees per annum. It is proposed to enhance the said sum to twenty thousand rupees per annum. Clause 137 of the Bill seeks to amend the Salaries and Allowances of Officers of Parliament Act, 1953. Section 3 of the aforesaid Act relates to salaries, etc., of officers of Parliament. It is proposed to enhance the salary of the Chairman of the Council of the States ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 2006 amendment Act to remove any confusion regarding interpretation of the aforesaid section retrospectively with effect from 15th September, 2006. Clause 143 of the Bill seeks to provide for commencement of Part VI of Chapter VIII from such date as may be notified by the Central Government. Clause 144 of the Bill seeks to amend section 12A of the Securities Contracts (Regulation) Act, 1956 to empower the Board to levy monetary penalty under the said Act after holding an inquiry in the prescribed manner. Clause 145 of the Bill seeks to amend section 23 of the Securities Contracts (Regulation) Act, 1956, as a consequential amendment, to enable the Board to levy monetary penalty by itself or its officer, not below the rank of Division Chief. Clause 146 of the Bill seeks to amend section 23A of the Act, to clarify that any person who furnishes or files false, incorrect or incomplete information, return, report, books or other documents shall be liable for penalty in the same manner as a person who fails to furnish the required information. Clause 147 of the Bill seeks to amend section 23E of the Act, to provide for monetary penalty for failure to comply with listing conditions in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 963, as the Central Board of Indirect Taxes and Customs . Sub-clause( b ) of said clause seeks to make amendments throughout the Act so as to substitute the words Indirect Taxes and Customs , for the words Excise and Customs wherever they occur. The said amendments shall take effect from the date on which the Finance Bill, 2018 receives the assent of the President. Clause 158 of the Bill seeks to amend section 3 of the Governors (Emoluments, Allowances and Privileges) Act, 1982. Section 3 of the aforesaid Act relates to emoluments to the Governors. It is proposed to enhance the present emoluments from one lakh ten thousand rupees per mensem to three lakh fifty thousand rupees per mensum with retrospective effect from 1st January, 2016. Clauses 159 to 174 of the Bill seek to amend certain provisions of the National Housing Bank Act, 1987. Accordintly, throughout the Act, consequential amendments have been made to omit or substitute the reference of Reserve Bank with Central Government. It is proposed to transfer the ownership of the National Housing Bank from the Reserve Bank of India to the Central Government. It is further proposed to amend sub-section ( 3 ) of section 3 of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to amend section 15J of the Act, as a consequential amendment, to ensure that the factors mentioned in section 15J of the said Act are relevant for levy of penalty by the Board under sections 11 and 11B as well as by an adjudicating officer under section 15-I of the Act. Clause 183 of the Bill seeks to amend section 15JB of the Act, to provide for credit of settlement amounts, excluding disgorgement amount and legal costs, to the Consolidated Fund of India. Clause 184 of the Bill seeks to amend section 24 of the Act, as a consequential amendment, to provide for prosecution in case of default in payment of monetary penalty levied by the Board and also for non-compliance with the directions of the Board. Clause 185 of the Bill seeks to amend section 27 of the Act, to enlarge the scope of the section to cover enforcement proceedings as provided therein. Clause 186 of the Bill seeks to amend section 28A of the Act, as a consequential amendment, to provide for recovery in respect of default in payment of monetary penalty levied by the Board. Clause 187 of the Bill seeks to insert a new section 28B in the Act, so as to provide for the continuance of proceedings, except proceedings for le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of the Board. Clause 199 of the Bill seeks to amend section 21 of the Act, to enlarge the scope of the section to cover the enforcement proceedings, as provided therein. Clause 200 of the Bill seeks to omit heading occuring before section 22 of the Act. Clause 201 of the Bill seeks to amend section 2 of the Vice-President's Pension Act, 1997. Section 2 of the said Act relates to pension to the retiring Vice-Presidents. Clause ( c ) of sub-section ( 2 ) of the aforesaid section provides for payment of office expenses at the rate of sixty thousand rupees per annum. It is proposed to enhance the said sum to ninety thousand rupees per annum. Clause 202 of the Bill seeks to provide for commencement of Part XIII of Chapter VIII from such date as may be notified by the Central Government. Clause 203 of the Bill seeks to amend various provisions of the Central Road Fund Act, 2000. Consequential amendments are also proposed in the said Act so as to align with the proposed amendments. It is proposed to amend long title and sub-title of the said Act, so as to include the infrastructure therein. It is also proposed to insert a new Schedule II in the said Act so as to describe the Cate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt sub-section ( 2 ) in section 66 that on the basis of material in his possession, if the authority suspects the contravention of any other law then the authority shall share the information with the concerned agency and the agency shall act on that information forthwith , so as to give clear guidance to the officials. ( viii ) to amend the Schedule to the Act to insert section 447 of the Companies Act, 2013 as paragraph 29 to Part A to strengthen the Act with respect to Corporate frauds. Clause 206 of the Bill provides for the commencement of Part XV of Chapter VIII from such date as may be notified by the Central Government. Clause 207 of the Bill seeks to amend the long title of the Fiscal Responsibility and Budget Management Act, 2003. It provides for omission of the words achieving sufficient revenue surplus and from the long title. Clause 208 of the Bill seeks to amend section 2 of the Act relating to definitions. It provides for substitution of definition of effective revenue deficit , grant for creation of capital assets , revenue deficit and total liabilities with the definitions of Central Government debt , general Government debt , gross domestic product and real gross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the Reserve Bank to convert Central Government securities held by it with other securities of the Central Government. Clause 212 of the Bill seeks to amend the section 7 of the Act relating to measures to enforce compliance. It provides to amend sub-section ( 1 ) so as to enable the Minister in-charge of the Ministry of Finance to review the trends in receipts and expenditure in relation to the budget on half yearly basis in place of quarterly basis. It further provides that the Central Government shall prepare the monthly statement of its accounts. It also provides to amend sub-section ( 2 ) so as to substitute the words prescribed levels in place of pre-specified levels mentioned in the Fiscal Policy Strategy Statement and the rules made under this Act so as to enable the Government to take measures in the event of short fall in revenue or excess of expenditure over the prescribed levels. Clause 213 of the Bill seeks to amend section 8 relating to power to make rules which are consequential in nature to the amendments proposed in this Part. Clause 214 of the Bill seeks to amend section 97 of the Finance (No.2) Act, 2004 relating to definitions. The existing provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er proposed to amend clause ( b ) of the said sub-section so as to empower the Assistant Director and Deputy Director also to levy penalty under the said clause. Section 55 of the said Act relates to institution of prosecution proceedings. Sub-section ( 1 ) of the said section provides that a person shall not be proceeded against for an offence under section 49 to section 53 except with the sanction of the Principal Commissioner or Commissioner or the Commissioner (Appeals), as the case may be. It is proposed to amend the marginal heading of the said section so as to include the reference of Principal Director General or Director General for the purpose of said section. Sub-section ( 2 ) of the said section provides that the Principal Chief Commissioner or the Chief Commissioner may issue such instructions, or directions, to the tax authorities referred to in sub-section ( 1 ) as he may think fit for the institution of proceedings. It is proposed to amend the said sub-section so as to empower the Principal Director General or the Director General also to issue such instructions or directions under the said sub-section. These amendments will take effect from 1st April, 2018. Clause ..... X X X X Extracts X X X X X X X X Extracts X X X X
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