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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 ..... f tax at source during the financial year 2019-2020 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 2019-2020 from income other than Salaries . The rates are the same, as those specified in Part II of the First Schedule to the Finance Act, 2018 for the purposes of deduction of income tax at source during the financial year 2018-2019. 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 Income tax 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 fifteen per cent. of such tax, where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees but does n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar:- Up to ₹ 3,00,000 Nil ₹ 3,00,001 to ₹ 5,00,000 5 per cent. ₹ 5,00,001 to ₹ 10,00,000 20 per cent. Above ₹ 10,00,000 30 per cent.; ( iii ) In the case of every individual, being a resident in India, who is of the age of eighty years or 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 but not above two crore rupees, surcharge shall be levied at the rate of fifteen per cent. In cases of persons referred to in this paragraph, having total income above two crore rupees but not above five crore rupees, surcharge shall be levied at the rate of twenty five per cent.. In cases of persons referred to in this paragraph, having total income above five crore rupees, surcharge shall be levied at the rate of thirty-seven per cent., Marginal relief will be provided. Paragra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rge will be applicable at the rate of twelve per cent. The existing Education Cess and Secondary and Higher Education Cess currently being levied in all cases covered under Part 1 of the First Schedule shall be substituted by a new cess by the name of Health and Education Cess : at the rate of four per cent. However, in financial year 2019-2020, in the cases covered under Part II and Part III of the First Schedule, the Health and Education Cess at the rate of four per cent. shall continue to be levied. In the cases covered under Part II of the 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 ( 19AA ) of the said section provides for the definition of the expression demerger for the purpose of providing tax neutrality where the property and liabilities of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from the last day of the month of its establishment or incorporation, or at the end of such previous year, whichever is later. Further, clause ( m ) of said sub-section provides that the remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf is not less than the arm's length price of the said activity. It is proposed to amend the said clause so as to provide that the remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf is not less than the amount calculated in such manner as may be prescribed instead of the arm's length price of the said activity. These amendments will take effect retrospectively from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent assessment years. Clause 6 of the Bill seeks to amend section 10 of the Incometax Act relating to incomes not included in total income. It is proposed to insert a new clause ( 4C ) in the said section so as to provide for exemption in respect of any income by way of interest payable to a non-resident, not being a company, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Commissioner or Commissioner may call for documents or information necessary in order to satisfy himself about the genuineness of its activities. It is proposed to substitute the said sub-clause so as to provide that besides the genuineness of its activities, the Principal Commissioner or Commissioner shall also satisfy himself about compliance to the requirements of any other law which is material for the purpose of achieving its objects. Sub-clause ( b ) of sub-section ( 1 ) of the said section, inter alia , provides that after satisfying himself about the objects of the trust or institution and the genuineness of its activities the Principal Commissioner or Commissioner shall pass an order registering or refusing to register the said trust or institution. It is proposed to amend the said sub-clause so as to provide that the Principal Commissioner or Commissioner, besides satisfying himself about the objects of the trust or institution and the genuineness of its activities, shall also satisfy himself about the compliance to the requirements of any other law which is material for the purpose of achieving its objects. Sub-section ( 4 ) of the said section, inter alia , provides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment or an aggregate of payments exceeding ten thousand rupees to a person in a day through any mode other than an account payee cheque or an account payee bank draft or using the electronic clearing system through a bank account. It is proposed to amend the said clause ( f ) so as to empower the Board to make rules to provide that payment made through such other electronic mode as may be prescribed shall also be allowed as deduction. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 10 of the Bill seeks to amend section 40 of the Income tax Act relating to amounts not deductible. Sub-clause ( i ) of clause ( a ) of the said section provides that where, in case of any assessee, tax is to be deducted at source under Chapter XVII-B on payment of any amount in the nature 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 the Income-tax Act, which is payable outside India, or in India to a non-resident, not being a company or to a foreign company, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Act relating to definitions of certain terms relevant to income from profits and gains of business or profession. Sub-section ( 1 ) of the said section defines the term actual cost to mean the actual cost of the assets to the assessee, reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any other person or authority. The second proviso to sub-section ( 1 ) of the said section provides that where the assessee incurs any expenditure for acquisition of any asset or part thereof in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account, exceeds ten thousand rupees, such expenditure shall be ignored for the purposes of determination of actual cost. It is proposed to amend the said second proviso so as to empower the Board to make rules to provide that payment made through such electronic mode as may be prescribed shall not be ignored for the purposes of determination of actual cost. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in rela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g non-banking financial company in the said Explanation 4 to the said section. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 14 of the Bill seeks to amend section 43CA of the Incometax Act relating to special provision for value of consideration for transfer of assets other than capital assets in certain cases. Sub-section ( 3 ) of the said section provides that where the date of agreement fixing the value of consideration for the transfer of the asset and the date of registration of such transfer of asset are not the same, then the full value of consideration for transfer of such asset shall be the stamp duty value on the date of the agreement. Sub-section ( 4 ) of the said section provides that the provisions of sub-section ( 3 ) shall apply only in those cases where the amount of consideration or a part thereof has been received by way of an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account on or before the date of agreement for transfer of the asset. It is proposed to amend the said sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head Profits and gains of business or profession . The proviso to the said sub-section ( 1 ) provides that in respect of the amount of total turnover or gross receipts which is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account during the previous year or before the due date specified in sub-section ( 1 ) of section 139 in respect of that previous year, a sum equal to six per cent. or higher shall be deemed to be the profits and gains of business and profession. It is proposed to amend the said proviso so as to empower the Board to make rules to provide that an eligible assessee can opt for presumptive taxation scheme if he declares profit at the rate of six per cent. or higher of the turnover, received through any other electronic mode as may be prescribed. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 17 of the Bill seeks t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he amount of consideration or a part thereof has been received by way of any other electronic mode as may be prescribed. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 19 of the Bill seeks to amend section 50CA of the Incometax Act relating to special provision for full value of consideration for transfer of share other than quoted share. The said section, inter alia , provides that where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being share of a company other than a quoted share, is less than the fair market value of such share determined in such manner as may be prescribed, the value so determined shall, for the purposes of computing capital gains, be deemed to be the full value of consideration received or accruing as a result of such transfer. It is proposed to amend the said section so as to provide that the provisions of the said section shall not apply to any consideration received or accruing as a result of transfer by such class of persons and subject to such conditions as may be prescribed. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sub-section ( 2 ) of the said section provides that where a company, not being a company in which the public are substantially interested, receives in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall not be charged to tax, if the consideration for issue of shares is received by a venture capital undertaking from a venture capital company or a venture capital fund or by a company from a class or classes of persons as may be notified by the Central Government in this behalf. It is proposed to amend the said clause so as to provide that where a company, not being a company in which the public are substantially interested, receives in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall not be charged to tax, if the consideration for issue of shares is received by a venture capital undertaking from a specifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, then the aggregate fair market value of such property as exceeds such consideration shall be the income of the person receiving such property. It is proposed to insert a new clause ( XI ) in the proviso to the said clause ( x ) so as to provide that any sum of money or any property received from such class of persons and subject to such conditions, as may be provided by rules shall not be the income of such persons. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 22 of the Bill seeks to substitute section 79 of the Incometax Act relating to carry forward and set off of losses in case of certain companies and provides that where a change in shareholding has taken place during the previous year in the case of a company, not being a company in which the public are substantially interested, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year, unless on the last day of the previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional Company Law Tribunal, on a petition moved by the Central Government under section 241 of the Companies Act, 2013 has suspended the Board of Directors of such company and has appointed new directors which are nominated by the Central Government, under section 242 of the said Act; and ( ii ) a change in shareholding of such company, and its subsidiary and the subsidiary of such subsidiary, has taken place in a previous year pursuant to a resolution plan approved by the National Company Law Tribunal under section 242 of the Companies Act, 2013 after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner. The Explanation to the section specifies that a company shall be a subsidiary of other company, if such other company holds more than half in nominal value of the equity share capital of the company. This amendment will take effect from 1st April, 2020 and will, accordingly, be applicable for assessment year 2020-2021 and subsequent assessment years. Clause 23 of the Bill seeks to amend section 80C of the Incometax Act relating to deduction in respect of life insurance premia, deferred annuity, contributions to provident fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposed new section 80EEB seeks to provide for a deduction up to one lakh and fifty thousand rupees in respect of interest on loan taken for purchase of an electric vehicle from any financial institution subject to the conditions specified therein. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 26 of the Bill seeks to amend section 80-IBA of the Income-tax Act relating to deductions in respect of profits and gains from housing projects. The provisions of the said section, inter alia , provide that where the gross total income of an assessee includes any profits and gains derived from the business of developing and building housing projects, there shall, subject to certain conditions, be allowed, a deduction of an amount equal to hundred per cent. of the profits and gains derived from such business. It is proposed to amend the said section so as to provide that a housing project approved on or after the 1st day of September, 2019 shall be eligible for deduction under this section if the carpet area of the residential unit comprised in the housing project does n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an amount equal to ( a ) one hundred per cent. of such income for five consecutive assessment years beginning with the assessment year relevant to the previous year in which the permission, under clause ( a ) of sub-section ( 1 ) of section 23 of the Banking Regulation Act, 1949 or permission or registration under the Securities and Exchange Board of India Act, 1992 or any other relevant law was obtained, and thereafter; ( b ) fifty per cent. of such income for five consecutive assessment years. It is proposed to amend the said section by substituting subsection ( 1 ) with sub-section ( 1 ) and ( 1A ) so as to provide that the deduction specified in the said section in respect of an an Unit of International Financial Services Centre shall be allowed at one hundred per cent. for ten years. In addition the deductions may, at the option of the assessee, be claimed by him for any ten consecutive assessment years out of fifteen years beginning with the assessment year relevant to the previous year in which the permission referred to in clause ( a ) of sub-section ( 1 ) of the said section was obtained. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (1) as they stood immediately before their amendment by this Bill, shall be claimed and allowed. Sub-section ( 2 ) of said section, inter alia , provides that the excess money available to the associated enterprise shall be repatriated to India from such associated enterprise within prescribed time and in case of non-repatriation, interest thereon is to be computed deeming the same as advance to such associated enterprise. It is proposed to amend said sub-section so as to provide that the interest shall be computed on the excess money or part thereof and that the excess money can be repatriated from any of the associated enterprises of the assessee, which is not resident in India, besides the associated enterprise with which the excess money is available. These amendments will take effect retrospectively from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-2019 and subsequent assessment years. It is also proposed to insert sub-section ( 2A ) in the said section so as to provide that where the excess money or part thereof has not been repatriated in time, besides the existing requirement of calculation of interest, the assessee will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication. Sub-section ( 4 ) of the proposed section provides that the constituent entity referred to in clause (ii) of sub-section ( 1 ) shall furnish the information and document referred therein to the authority prescribed under sub-section ( 1 ) of section 286, in such manner, on or before such date as may be prescribed. These amendments will take effect from the 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 32 of the Bill seeks to amend section 111A of the Incometax Act relating to tax on short-term capital gains in certain cases. Clause ( a ) of the Explanation to the said section provides that the equity oriented fund shall have the meaning assigned to it in the Explanation to clause ( 38 ) of section 10. It is proposed to amend the said Explanation so as to provide that equity oriented fund shall have the meaning assigned to it in clause ( a ) of the Explanation to section 112A. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 33 of the Bill seeks to amend section 115A of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so as to provide that a company shall be a subsidiary of another company, if such other company holds more than half in nominal value of the equity share capital of the company. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 35 of the Bill seeks to amend section 115-O of the Income-tax Act relating to tax on distributed profits of domestic companies. Sub-section ( 8 ) of the said section provides that notwithstanding anything contained in this section, no tax on distributed profits shall be chargeable in respect of the total income of a company, being a unit of an International Financial Services Centre, deriving income solely in convertible foreign exchange, for any assessment year on any amount declared, distributed or paid by such company, by way of dividends (whether interim or otherwise), on or after the 1st day of April, 2017, out of its current income, either in the hands of the company or the person receiving such dividend. It is proposed to amend the said sub-section so as to include the income accumulated after the 1st day of April, 2017 within the purv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rry forward and set-off in accordance with the provisions of Chapter VI. Clause ( ii ) of said sub-section provides that such loss shall not accrue or arise or received by the unit holder. It is proposed to substitute the said sub-clauses so as to provide that,-- ( i ) the loss arising to the investment fund as a result of the computation under the head Profit and gains of business or profession , if any, shall be, allowed carry forward and set off in accordance with the provisions of Chapter VI; and such loss shall not accrue, or arise or received by the unit holder; and ( ii ) the other loss, if any, shall not accrue, or arise or received by the unit holder, if such loss has arisen in respect of a unit which has not been held by the unit holder for a period of atleast twelve months. It is further proposed to insert sub-section ( 2A ) to the said section so as to provide that the loss other than the loss under the head Profit and gains of business or profession , if any, accumulated at the level of investment fund as on the 31st day of March, 2019, shall be deemed to be the loss of a unit holder who held the unit on that day in respect of the investments made by him in the investm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into such transaction, as may be prescribed by the Board in the interest of revenue, shall also apply to the Assessing Officer for allotment of a permanent account number. It is further proposed to insert a new sub-section ( 5E ) in the said section to provide that notwithstanding anything contained in this Act, every person who is required to furnish or intimate or quote his permanent account number under this Act, and who, has not been allotted a permanent account number and possesses the Aadhaar number, may, furnish or intimate or quote his Aadhaar number in lieu of permanent account number, and such person shall be allotted a permanent account number in such manner as may be prescribed. Further, every such person who has been allotted a permanent account number, and who has intimated his Aadhaar number in accordance with provisions of sub-section ( 2 ) of section 139AA may, furnish or intimate or quote his Aadhaar number in lieu of a permanent account number. It is also proposed to amend sub-section ( 6 ) of the said section to provide that every person receiving document relating to a transaction prescribed under clause ( c ) of sub-section ( 5 ) shall also ensure that the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mining tax payable under the said sub-section. It is further proposed to insert a new sub-clause ( ba ) in clause ( i ) of sub-section ( 1A ) of the said section so as to provide that any relief of tax claimed under section 89 shall be taken into account for the purpose of determining interest payable under the said subsection. It is also proposed to insert a new clause ( ia ) in the Explanation to sub-section ( 1B ) of the said section so as to provide that for the purpose of determining assessed tax under the said sub-section, any relief of tax claimed under section 89 shall also be reduced from the tax on total income. These amendments will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years. Clause 43 of the Bill seeks to amend section 143 of the Incometax Act relating to Assessment. Sub-section ( 1 ) of the said section 143, inter alia , provides for processing of return furnished under section 139 or in response to a notice under sub-section ( 1 ) of section 142. It is proposed to amend clause ( c ) of sub-section ( 1 ) of the said section so as to provide that any relief of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the rate of five per cent. on any sum, or aggregate of sums, paid by an individual or a Hindu undivided family (other than those who are required to deduct income-tax as per the provisions of section 194C or section 194J) to a resident for carrying out any work (including supply of labour for carrying out any work) or by way of fees for professional services at the time of credit to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier. The proviso to the said sub-section provides that no incometax referred to in sub-section ( 1 ) shall be deducted, if such sum or aggregate of such sums paid to a resident does not exceed fifty lakh rupees during the financial year. Sub-section ( 2 ) of the proposed new section 194M seeks to provide that the provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section. The Explanation to the proposed new section also defines the expressions contract , professional services and work . The proposed new section 194N provides that a banking company or a co-operative society engaged in carrying on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax. It is proposed to amend the said sub-section so as to empower the Board to prescribe the form and manner of making such application and the manner of determining the appropriate proportion of such sum chargeable to tax. These amendments will take effect from 1st November, 2019. Clause 48 of the Bill seeks to amend section 197 of the Incometax Act relating to certificate for deduction at lower rate. It is proposed to amend sub-section ( 1 ) of the said section so as to provide that the sums on which tax deduction at source has been deducted under section 194M shall also be eligible for certificate for deduction at lower rate. This amendment is consequential in nature for the insertion of proposed new section 194M. This amendment will take effect from 1st September, 2019. Clause 49 of the Bill seeks to amend section 201 of the Income tax relating to consequences of failure to deduct or pay. The first proviso to sub-section ( 1 ) of the said section provides that any person, including the principal officer of a company specified therein, who fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVIIB on the sum paid to a resident or on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and within such time, as may be prescribed, and deliver or cause to be delivered to the prescribed income-tax authority or to the person authorised by such authority. Sub-section ( 2 ) of the proposed section provides that the Board may, by rules, require any person other than a person mentioned in sub-section ( 1 ), responsible for paying to a resident, any income liable for deduction of tax at source under Chapter XVII, to prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and to deliver or cause to be delivered to the incometax authority or the authorised person referred to in sub-section ( 1 ). Sub-section ( 3 ) of the proposed section provides for the furnishing of a correction statement to add, delete or update the information in the statement delivered under sub-section ( 1 ) or sub-section ( 2 ), as the case may be, in such form and verified in such manner as may be prescribed. This amendment will take effect from 1st September, 2019. Clause 51 of the Bill seeks to amend section 228A of the Incometax Act relating to recovery of tax in pursuance of agreements with foreign cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years. Clause 54 of the Bill seeks to amend section 234C of the Incometax Act relating to interest for deferment of advance tax. The said section 234C, inter alia , provides for charging of interest for deferment of advance tax. It is proposed to insert a new clause ( ia ) in the Explanation to the said section, so as to provide that any relief of tax allowed under section 89 shall also be reduced from the tax on the returned income for the purpose of charging interest under the said section. These amendments will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years. Clause 55 of the Bill seeks to amend section 239 of the Incometax Act relating to form of claim for refund and limitation. Sub-section ( 1 ) of the said section provides that every claim of refund under Chapter XIX of the said Act shall be made in such form and verified in the such manner as may be prescribed. It is proposed to amend the said sub-section so as to provide that every cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lating to acceptance of payment through prescribed electronic modes. It is proposed to provide that every person, carrying on business, shall provide facility for accepting payment through the prescribed electronic modes, in addition to the facility for other electronic modes of payment, if any, being provided by such person, if his total sales, turnover or gross receipts, as the case may be, in business exceeds fifty crore rupees during the immediately preceding previous year. This amendment will take effect from 1st November, 2019. Clause 60 of the Bill seeks to amend section 269T of the Incometax Act relating to mode of repayment of certain loans or deposits. The said section prohibits a banking company or a co-operative bank and any other company or co-operative society and any firm or other person from repaying any loan or deposit made with it or any specified advance received by it, in any mode other than by an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account, if the amount being repaid is equal to twenty thousand rupees or more. It is proposed to amend the said section so as to empower the Board to make rules ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson proves that there were good and sufficient reasons for such failure. It is also proposed that any such penalty shall be imposed by the Joint Commissioner. This amendment will take effect from 1st November, 2019. Clause 63 of the Bill seeks to amend section 271FAA of the Income-tax Act relating to penalty for furnishing inaccurate statement of financial transaction or reportable account. The said section, inter alia , provides for penalty of a sum of fifty thousand rupees if a person referred to in clause ( k ) of sub-section ( 1 ) of section 285BA furnishes inaccurate information in the statement. It is proposed to amend the said section so as to extend the penalty for furnishing inaccurate information in the statement to all the persons referred to in sub-section(1) of section 285BA. This amendment will take effect from 1st September, 2019. Clause 64 of the Bill seeks to amend section 272B of the Incometax Act relating to penalty for failure to comply with the provisions of section 139A. The said section, inter alia , provides for penalty for failure to comply with the provisions of section 139A. It is proposed to suitably amend the sub-section ( 2 ) of the said section, so t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obligation to furnish statement of financial transaction or reportable account. Sub-section ( 1 ) of the said section, inter alia , specifies the persons who are required to furnish statement in respect of specified financial transaction or reportable account. It is proposed to insert a new clause ( l ) in the said sub-section so as to provide that a person, other than those referred to in clauses ( a ) to ( k ), as may be prescribed, shall also be required to furnish a statement under the said section. Second proviso to sub-section ( 3 ) of the said section specifies that the value or aggregate value of prescribed specified financial transaction during a financial year shall not be less than fifty thousand rupees. It is further proposed to omit the said proviso. Sub-section ( 4 ) of the said section, inter alia , provides that if the defect in the statement is not rectified within the time specified therein, the statement shall be treated as invalid. It is proposed to amend the said sub-section so as to provide that if the defect in the statement is not rectified within the time specified therein, the provisions of the Act shall apply as if such person had furnished inaccurate inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provide that the facility to furnish departure manifest shall, in addition to the person-in-charge of the conveyance, also be given to other person notified by the Central Government. Clause 70 of the Bill seeks to insert a new chapter XIIB relating to verification of identity and compliance in the Customs Act. The proposed new section 99B under that clause seeks to empower proper officer of customs to carry out verification of a person for ascertaining compliance with the provision of the Customs Act or any other law for the time being in force, for protecting the interests of revenue or to prevent smuggling in the manner as may be prescribed. It is proposed to verify identity of a person through Aadhaar number or through any other alternative and viable means of identification. The section also specifies circumstances under which benefit of certain items shall be suspended or denied to such person. It also empowers the Board to make regulations for the purposes of the section. Clause 71 of the Bill seeks to substitute sub-section ( 1 ) and to amend sub-section ( 6 ) of section 103 of the Customs Act. The proposed amendment to sub-section ( 1 ) seeks to enable the proper officer t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any person who has obtained any instrument by fraud, collusion, wilful misstatement or suppression of facts and such instrument has been utilised by such person or any other person for discharging duty, such person to whom the instrument was issued shall be liable for penalty not exceeding the face value of such instrument. It is also proposed to insert an Explanation to define the term instrument . Clause 76 of the Bill seeks to amend section 117 of the Customs Act so as to increase the maximum limit of penalty from one lakh rupees to four lakh rupees. Clause 77 of the Bill seeks to amend first proviso to section 125 of the Customs Act so as to provide that the no fine in lieu of confiscation shall be imposed in respect of cases of deemed closure under section 28. Clause 78 of the Bill seeks to amend sub-section ( 1 ) of section 135 of the Customs Act so as to insert a new clause ( e ) therein to make obtaining of an instrument by any person from any authority by fraud, collusion, wilful misstatement or suppression of facts, where such instrument has been utilised by such person or any other person a punishable offence. The new clause ( E ) in item ( i ) of sub-section ( 1 ) seeks ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Tariff Clause 85 of the Bill seeks to insert sub-section ( 1A ) under section 9 of the Customs Tariff Act, so as to provide anticircumvention provision in case of Countervailing duty. Clause 86 of the Bill seeks to amend sub-section ( 1 ) of section 9C of the Customs Tariff Act, so as to provide for filing of appeal before the Customs, Excise and Service Tax Appellate Tribunal against the findings of the designated authority regarding determination of safeguard duty. Clause 87 of the Bill seeks to amend the First Schedule to the Customs Tariff Act,- ( a ) in the manner specified in the Fourth Schedule with a view to revise the tariff rates in respect of certain tariff items and to amend Chapter Note of Chapter 98 so as to exclude printing books from the purview of heading 9804; ( b ) in the manner specified in the Fifth Schedule with a view to rectify errors and harmonise certain entries with Harmonised System of Nomenclature and also to create new tariff lines from certain entries, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint. Clause 88 of the Bill seeks to give retrospective effect to the notification number G.S.R. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Central Goods and Services Tax Act, to provide that supplier shall mandatorily offer facility for digital payments to his recipient. Clause 96 of the Bill seeks to amend section 39 of the Central Goods and Services Tax Act so as to provide for furnishing of annual returns and for quarterly payment of tax by taxpayer who opts for composition levy and to provide for certain other category of tax payers, an option for quarterly and monthly payments under the proposed new return filing system. Clause 97 of the Bill seeks to amend section 44 of the Central Goods and Services Tax Act so as to empower the Commissioner to extend the due date for furnishing Annual return and reconciliation statement. Clause 98 of the Bill seeks to amend section 49 of the Central Goods and Services Tax Act so as to provide facility to the taxpayer to transfer an amount from one head to another in the electronic cash ledger. Clause 99 of the Bill seeks to amend section 50 of the Central Goods and Services Tax Act so as to provide for charging interest only on the net cash tax liability, except in those cases where tax is paid subsequent to initiation of any proceedings under section 73 or 74 of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Act so as to provide that the advance ruling pronounced by the National Appellate Authority shall be binding on the applicants, being distinct persons and all registered persons having the same Permanent Account Number and on the concerned officers or the jurisdictional officers in respect of the said applicants and the registered persons having the same Permanent Account Number. It also provides that the ruling shall be binding unless there is a change in law or facts. Clause 107 of the Bill seeks to amend section 104 of the Central Goods and Services Tax Act to provide that advance ruling pronounced by the National Appellate Authority shall be void where the ruling has been obtained by fraud or suppression of material facts or misrepresentation of facts. Clause 108 of the Bill seeks to amend section 105 of the Central Goods and Services Tax Act to provide that the National Appellate Authority shall have all the powers of a civil court under the Code of Civil Procedure, 1908 for the purpose of exercising its powers under the Act. Clause 109 of the Bill seeks to amend section 106 of the Central Goods and Services Tax Act to provide that the National Appellate Authority shall have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax to the long duration degree or diploma programmes except Executive Development Programme provided by the Indian Institutes of Management to the students during the period from the 1st day of July, 2003 up to the 31st day of March, 2016. Clause 118 of the Bill seeks to provide retrospective exemption from service tax on upfront amount paid for services by way of grant of long term lease of plots for development of infrastructure for financial business by the State Government Industrial Development Corporations or Undertakings or by any other entity having fifty per cent. or more ownership of the Central Government or State Government or Union territory, directly or through an entity which is wholly owned by such Governments, to the developers in the industrial or financial business area, during the period from the 1st day of October, 2013 up to the 30th day of June, 2017. Clauses 119 to 134 of Chapter V of the Bill seeks to provide for Sabka Viswas (Legacy Dispute Resolution) Scheme, 2019. The Scheme is a one time measure for liquidation of past disputes of Central Excise and Service Tax as well as to ensure disclosure of unpaid taxes by a person eligible to make a declaration. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019. Clauses 144 and 145 of the Bill seek to amend certain provision of the Securities Contracts (Regulation) Act, 1956. It is proposed to amend section 23A of the said Act to provide that in addition to furnish information to recognised stock exchange the said information may also be furnished to the Board. Clauses 146 and 147 of the Bill seek to amend certain provisions of the Banking Companies (Acquisition and Transfer of undertakings) Act, 1970. It is proposed to amend section 9 of the Act to empower the Central Government to appoint not more than five full time directors of corresponding new bank. Clause 148 of the Bill seeks to amend the Genaral Insurance Business (Nationalisation) Act, 1972. It is propsed to amend subsection ( 2 ) of the section 16 of the Act to provide upto four companies instead of only four companies . Clauses 149 and 150 of the Bill seek to amend the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980. It is proposed to amend section 9 of the Act to empower the Central Government to approve not more than five full time directors in corresponding new bank. Clauses 151 to 171 of the Bill seek to amend the National Housing Bank Act, 1987 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o amend section 49 of the Act to substitute the National Housing Bank or the Reserve Bank for the National Housing Bank . It is further propsed to substitute National Company Law Tribunal for Authorised officer . Clause 170 of the Bill seeks to amend section 51 of the said Act relating to cognisance of offences. Clause 171 of the Bill seeks to substitute section 52A of the said Act relating to power of National Housing Bank and Reserve Bank to impose fine. Clauses 172 to 176 of the Bill seek to amend the Prohibition of Benami Property Transactions Act, 1988. Section 23 of the said Act provides that the Initiating Officer, after obtaining prior approval of the Approving Authority, shall have power to conduct or cause to be conducted any inquiry or investigation in respect of any person, place, property, assets, documents, books of account or other documents, in respect of any other relevant matters under this Act. It is proposed to amend the said section so as to clarify that nothing contained in this section shall apply and shall be deemed to have ever applied where a notice under sub-section ( 1 ) of section 24 has been issued by the Initiating Officer. This amendment will take ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons 54A and 54B in the said Act. Sub-section ( 1 ) of the proposed new section 54A provides that the person shall pay a penalty of twenty-five thousand rupees for each failure to comply with summons under sub-section ( 1 ) of section 19; or to furnish information which he was required to furnish under section 21. Sub-section ( 2 ) of the said section provides for the authority who shall impose penalty. Sub-section ( 3 ) of the said section provides that no penalty shall be imposed without affording an opportunity of being heard to the person in respect of whom penalty is sought to be imposed. The proviso to the said sub-section provides that no penalty shall be imposed if such person proves that there were good and sufficient reasons for the contravention. The proposed new section 54B provides that the entries in the records or other documents in the custody of an authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under section 3 or Chapter VII, and all such entries may be proved either by the production of the records or other documents in the custody of the authority containing such entries, or by the production of a copy o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... projects including the projects of inter-State and economic importance. It is proposed to omit clause ( v ) of sub-section ( 1 ) of said section 10 which provides for release of funds to the States for specific projects and monitoring of such projects and expenditure incurred thereon, and clauses ( v ) and ( vii ) of said sub-section to omit. clause ( vii ) of said sub-section which provides for allocation of share of funds to each State and Union territory specified in the First Schedule to the Constitution. Clause 183 of the Bill seeks to substitute sub-section ( 1 ) of section 11 of the Central Road and Infrastructure Fund Act, 2000 to have reference to clause ( iv ) sub-section ( 1 ) of Section 10 for formulation of criteria for allocation of funds for development and maintenance of road projects including the projects of inter-State and economic importance. Clause 184 of the Bill seeks to omit clause ( c ) below sub-section ( 2 ) of section 12 of the Central Road and Infrastructure Fund Act, 2000 which provides for the manner in which the schemes for development and maintenance of State roads of inter-State and economic importance are to be formulated and sanctioned. Clause 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entation of Financial Action Task Force standards. This is required for effective implementation of Financial Action Task Force standards Recommendations and to draw, coordinate, monitor and review the Anti Money Laundering or Countering Financing of Terrorism policies or activities and their implementation to strengthen Anti Money Laundering or Countering Financing of Terrorism framework in line with Financial Action Task Force standards. It is also proposed to amend section 73 of the Act so as to provide certain rule making provisions. Clause 193 of the Bill seeks to amend section 99 of the Finance ( No. 2 ) Act, 2004 relating to the value of taxable securities transaction. The said section provides for the value of taxable securities transaction in respect of sale of an option in securities, where option is exercised, shall be the settlement price. It is proposed to amend the said section so as to provide that the value of taxable securities transaction in respect of sale of an option in securities, where option is exercised shall be the intrinsic value. It is further proposed to insert an Explanation in the said section so as to define the expression intrinsic value'' f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals). The existing provisions of clause ( b ) of sub-section ( 1 ) of the said section provide that the Commissioner (Appeals) may confirm or cancel the penalty order. It is proposed to amend the said clause to provide that the Commissioner (Appeals) may also vary the penalty order either to enhance or reduce the penalty. This amendment will take effect from lst September, 2019. Clause 198 of the Bill seeks to amend section 84 of the said Act relating to application of provisions of Income-tax Act. The said section provides for application of certain provisions of the Income-tax Act to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with necessary modifications. It is proposed to amend the said section so as to provide that the provisions of section 144A of the Income-tax Act shall also be applicable to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with necessary modifications. These amendment will take effect from 1st September, 2019. Clauses 199 and 200 of the Bill seek to amend certain provisions of the Finance Act, 2016 relating to the Income Declaration Scheme, 2016 (hereinafter referred to a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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