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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 ..... er clause (10D) of section 10 does not apply on account of the applicability of the fourth and fifth provisos thereof. It is proposed to amend sub-clause (b) of the said clause so as to insert the expression "or held by an investment fund specified in clause (a) of Explanation 1 to section 115UB" after the words "Foreign Institutional Investor". It is further proposed to amend sub-clause (c) of clause (14) of the said section so as to make it applicable for unit linked insurance policy to which exemption under clause (10D) of section 10 does not apply. These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the assessment year 2026-2027 and subsequent assessment years. Clause (22) of the said section provides the definition of dividend. Sub-clause (e) of the said clause, inter alia, provides that any payment by a company, not being a company in which the public are substantially interested, of any sum, by way of advance or loan to a shareholder, being a person who is the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) holding not less than ten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 2026-2027 and subsequent assessment years. Clause 5 of the Bill seeks to amend section 9A of the Income-tax Act relating to certain activities not to constitute business connection in India. Clause (c) of sub-section (3) of the said section, inter alia, provides that the eligible investment fund referred to in sub-section (1), means a fund established or incorporated or registered outside India, which collects funds from its members for investing it for their benefit and fulfils the condition that the aggregate participation or investment in the fund, directly or indirectly, by persons resident in India does not exceed five per cent. of the corpus of the fund. It is proposed to amend the said clause so as to provide that the aggregate participation or investment in the fund, directly or indirectly, by persons resident in India does not exceed five per cent of the corpus of the fund, as on the 1st day of April and the 1st day of October of the previous year. It is further proposed to insert a proviso to said clause so as to provide that where the aforesaid aggregate participation or investment in the fund exceeds five per cent on the 1st day of April or the 1st day of October ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e expression "Foreign Portfolio Investor" to mean a person registered as per the provisions of the Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 made under the Securities and Exchange Board of India Act, 1992. These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the assessment year 2026-2027 and subsequent assessment years. It is also proposed to amend clause (4F) of the said section so as to extend the date of commencement of operations specified therein from 31st March, 2025 to 31st March, 2030. It is also proposed to amend clause (4H) of the said section so as to extend the date of commencement of operations specified therein from 31st March, 2026 to 31st March, 2030. It is also proposed to amend the said clause to also provide that income by way of capital gains arising from the transfer of equity shares of domestic company, being a Unit of an International Financial Services Centre, as referred to in sub-section (1A) of section 80LA, engaged primarily in the business of leasing of a ship shall not be included in computing the total income of a non-resident or a Unit of an International F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gains are deemed as short-term capital gains under section 50AA), shall not be included in computing the total income of a specified person. It is further proposed to amend sub-clause (i) of the said clause so as to extend the date of investment from 31st March, 2025 to 31st March, 2030. These amendments will take effect from 1st April, 2025. It is also proposed to amend clause (34B) so as to also provide that income by way of dividends from a company being a Unit of any International Financial Services Centre primarily engaged in the business of leasing of a ship, shall not be included in computing the total income of a Unit of any International Financial Services Centre, primarily engaged in the business of leasing of a ship. It is also proposed to amend the Explanation of the said clause so as to define the expression "aircraft", "International Financial Services Centre" and "ship". These amendments will take effect from 1st April, 2025. Clause 7 of the Bill seeks to amend section 12AB of the Income-tax Act relating to procedure for fresh registration. Sub-section (1) of the said section, inter alia, provides for the procedure for registration or cancellation of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is proposed to amend clause (b) of the said sub-section so as to provide that specified person would be any person whose total contribution to the trust or institution, during the relevant previous year exceeds one lakh rupees, or, in aggregate up to the end of the relevant previous year exceeds ten lakh rupees, as the case may be. It is further proposed to amend clause (d) of the said sub-section so as to provide that any relative of person referred to in clause (b) shall not be treated as specified person for the purposes of the said sub-section. It is also proposed to amend clause (e) of the said sub-section so as to provide that any concern in which the person referred to in clause (b) has substantial interest shall not be treated as specified person for the purposes of the said sub-section. These amendments will take effect from 1st April, 2025. Clause 9 of the Bill seeks to amend section 17 of the Income-tax Act relating to "salary", "perquisite" and "profits in lieu of salary" defined. The existing provisions of clause (2) of section 17, inter alia, provide that for the purposes of section 15 and section 16 of the Income-tax Act, "perquisite" includes the value of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ployment, business or profession carried on at any other place, in such cases, the annual value of such house or part of the house shall be taken to be nil. Further, sub-section (4) of the said section provides that provisions of sub-section (2) of the Act will be applicable in respect of 2 houses only. It is proposed to substitute the sub-section (2) of the said section so as to provide that the annual value of the property consisting of a house or any part thereof shall be taken as nil, if the owner occupies it for his own residence or cannot actually occupy it due to any reason. This amendment will take effect from 1st April, 2025 and shall apply to assessment year 2025-26 onwards. Clause 11 of the Bill seeks to insert a new section 44BBD in the Income-tax Act relating to special provision for computing profits and gains of non-residents engaged in business of providing services or technology, for setting up an electronics manufacturing facility or in connection with manufacturing or production of electronic goods, article or thing in India. Sub-section (1) of the proposed section seeks to provide that notwithstanding anything to the contrary contained in sections 28 to 43A, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olicy, then, any profits or gains arising from receipt of such amount by such person shall be chargeable to income-tax under the head "Capital gains" and shall be deemed to be the income of such person of the previous year in which such amount was received and the income taxable shall be calculated in such manner as may be prescribed. It is proposed to amend the said sub-section so as to make it applicable for an unit linked insurance policy to which exemption under clause (10D) of section 10 does not apply. This amendment will take effect from 1st April, 2026 and will, accordingly, apply in relation to the assessment year 2026-2027 and subsequent assessment years. Clause 13 of the Bill seeks to amend section 47 of the Income-tax Act relating to Transactions not regarded as transfer. Clause (viiad) of the said section provides that any transfer by a shareholder or unit holder or interest holder, in a relocation, of a capital asset being a share or unit or interest held by him in the original fund in consideration for the share or unit or interest in the resultant fund, shall not be regarded as transfer for the purposes of section 45. The Explanation to the said clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or successor limited liability partnership, as the case may be, for the previous year in which the business reorganisation was effected, to the extent of amount of accumulated loss and unabsorbed depreciation and as per conditions as specified therein. It is proposed to insert sub-section (6B) in the section to state that where any amalgamation or business reorganisation, is effected on or after 1st April, 2025, any loss forming part of the accumulated loss of the predecessor entity, being the amalgamating company or firm or proprietary concern; or private company or unlisted public company, as the case maybe, which is deemed to be the loss of the successor entity, being the amalgamated company or successor company or successor limited liability partnership, as the case maybe, shall be carried forward in the hands of the successor entity for not more than eight assessment years immediately succeeding the assessment year for which such loss was first computed for original predecessor entity. It is further proposed to state that "original predecessor entity" means predecessor entity in respect of the first amalgamation under sub-section (1) or first business reorganisation for sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 29th August, 2024 by an assessee, being an individual. This amendment will take effect retrospectively from 29th August, 2024. Clause 17 of the Bill seeks to amend section 80CCD of the Income-tax Act relating to deduction of contribution to pension scheme of Central Government. The said section provides for deduction in respect of contribution to pension scheme of the Central Government by the assessee, being an individual employed by the Central Government on or after the 1st January, 2004 or, being an individual employed by any other employer or any other assessee being an individual has in the previous year paid or deposited any amount in his account under the said pension scheme. It is proposed to insert a second proviso to sub-section (1B) and to amend sub-sections (3) and (4) of the said section so as to extend the tax benefits available to a pension scheme under section 80CCD, to the contributions made to the National Pension Scheme Vatsalya Accounts, as follows:-- (a) a deduction to be allowed to the parent or guardian's total annual income, of the amount paid or deposited in the account of any minor under a pension scheme under sub- section (1B) of section 80CCD t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Act relating to rebate of income-tax in case of certain individuals. The said section provides that an assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of twelve thousand and five hundred rupees, whichever is less. Proviso to the said section provides that where the total income of the assessee is chargeable to tax under sub-section (1A) of section 115BAC, and the total income-- (a) does not exceed seven hundred thousand rupees, the assessee shall be entitled to a deduction from the amount of income-tax (as computed before allowing for the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to one hundred per cent. of such income-tax or an amount of twenty-five thousand rupees, whichever is less; (b) exceeds seven hundred thousand rupees and the income-tax paya ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alid under the sub-section (3B), is made before or after such declaration by the Transfer Pricing Officer, the provisions of the said sub-section shall have the effect as if no reference is made for such transaction. It is also proposed to insert a new sub-section (3B) in the said section so as to provide that the arm's length price being determined in relation to the international transaction or the specified domestic transaction under sub-section (3) for any previous year shall apply to similar international transaction or specified domestic transaction for the two consecutive previous years immediately following such previous year, on fulfilment of the conditions, specified therein. It is also proposed to insert a proviso to the said sub-section (3B) to provide that the provisions of this sub-section shall not apply to any proceedings under Chapter XIV-B. It is also proposed to insert a new sub-section (4A) in the said section so as to provide that notwithstanding anything contained in sub-section (4), where the Transfer Pricing Officer has declared an option exercised by the assessee as valid option under sub-section (3B), he shall examine and determine the arm's length pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, apply in relation to the assessment year 2026-2027 and subsequent assessment years. Clause 22 of the Bill seeks to amend section 112A of the Income-tax Act relating to tax on long-term capital gains in certain cases. Clause (a) of the Explanation to the said section, inter alia, provides that "equity oriented fund" means a fund set up under a scheme of a mutual fund specified under clause (23D) of section 10 or under a scheme of an insurance company comprising unit linked insurance policies to which exemption under clause (10D) of the said section does not apply on account of the applicability of the fourth and fifth provisos thereof. Second proviso to the clause (a) of Explanation to the said section provides that in case of a scheme of an insurance company comprising unit linked insurance policies to which exemption under clause (10D) of section 10 does not apply, in given cases, the minimum requirement of ninety per cent. or sixty-five per cent., as the case may be, is required to be satisfied throughout the term of such insurance policy. It is proposed to amend clause (a) and the second proviso of the Explanation to the said section so as to make it app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing Table, namely:-- Table Sl. No. Total income Rate of tax (1) (2) (3) 1. Upto Rs. 4,00,000 Nil 2. From Rs. 4,00,001 to Rs. 8,00,000 5 per cent. 3. From Rs. 8,00,001 to Rs. 12,00,000 10 per cent. 4. From Rs. 12,00,001 to Rs. 16,00,000 15 per cent. 5. From Rs. 16,00,001 to Rs. 20,00,000 20 per cent. 6. From Rs. 20,00,001 to Rs. 24,00,000 25 per cent. 7. Above Rs. 24,00,000 30 per cent. These amendments will take effect from the 1st April, 2026 and will, accordingly, apply in relation to the assessment year 2026-2027 and subsequent assessment years. Clause 25 of the Bill seeks to amend section 115UA of the Income-tax Act relating to tax on income of unit holder and business trust. Sub-section (2) of the said section provides that the total income of a business trust shall be charged to tax subject to the provisions of sections 111A and 112. It is proposed to amend the said sub-section so as to provide the reference of section 112A therein. This amendment will take effect from 1st April, 2026 and will, accordingly, apply in relation to the assessment year 2026-2027 and subsequent assessment years. Clause 26 of the Bill seeks to amend section 115V o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section to provide that a qualifying ship would not include a seagoing ship or inland vessel, if the main purpose for which it is used is the provision of goods or services of a kind normally provided on land. This amendment will take effect from the 1st April, 2026 and will, accordingly, apply in relation to the assessment year 2026-2027 and subsequent assessment years. Clause 29 of the Bill seeks to amend section 115VG of the Income-tax Act relating to computing of tonnage income. Sub-section (4) of the said section provides that for the purposes of Chapter XII-G, tonnage shall mean the tonnage of a ship indicated in the certificate referred to in section 115VX and includes the deemed tonnage computed in the prescribed manner. It is proposed to amend sub-section (4) of the said section to include inland vessels under its purview. This amendment will take effect from 1st April, 2026 and will, accordingly, apply in relation to the assessment year 2026-2027 and subsequent assessment years. Clause 30 of the Bill seeks to amend section 115V-I of the Income-tax Act relating to relevant shipping income. Sub-section (2) of the said section provides for the core activities of a to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dment will take effect from 1st April, 2025. Clause 33 of the Bill seeks to amend section 115VT of the Income-tax Act relating to transfer of profits to tonnage tax reserve account. It is proposed to amend sub-section (3), sub-section (4) and Explanation to the said section to include inland vessels under its purview. These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the assessment year 2026-2027 and subsequent assessment years. Clause 34 of the Bill seeks to amend section 115VV of the Income-tax Act relating to limit for charter in of tonnage. It is proposed to amend sub-section (4) and Explanation to the said section to include inland vessels under its purview. These amendments will take effect from 1st April, 2026 and will, accordingly, apply in relation to the assessment year 2026-2027 and subsequent assessment years. Clause 35 of the Bill seeks to amend section 115VX of the Income-tax Act relating to determination of tonnage. Clause (a) of sub-section (1) of the said section provides tonnage of a ship shall be determined in accordance with the valid certificate indicating of tonnage. Clause (b) of sub-section (1) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orisation for search or requisition" shall have the same meaning assigned to it in Explanation 2 to section 158BE. It is proposed to amend Explanation 1 to section 132B to update the reference of Explanation to section 158B. This amendment will take effect from 1st April, 2025. Clause 39 of the Bill seeks to amend section 139 of the Income-tax Act, relating to return of income. The said section provides the provisions for filing of income-tax return by taxpayers. The said section provides guidelines for filing of original return under sub-section (1), filing of belated or revised returns, the class or classes of persons who have an obligation to compulsorily file a return, rectification of a defective return, the due dates for filing of the said returns etc. Sub-section (8A) of the said section provides that any person, whether or not he has furnished an original return, belated return or revised return under sub-section (1) or (4) or (5), for an assessment year, may furnish an updated return of his income or income of any other person in respect of which he is assessable under this Act, within 24 months from the end of the relevant assessment year. It is proposed to amend su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relating to reference to Principal Commissioner or Commissioner in certain cases. The said section, inter alia, provides that if the Assessing Officer considers that it is necessary to declare an arrangement as an impermissible avoidance arrangement, then, he may make a reference to the Principal Commissioner or Commissioner and to determine the consequence of such an arrangement within the meaning of the General Anti-Avoidance Rules. Sub-section (13) of the said section provides that the Approving Panel shall issue directions declaring such arrangement as an impermissible avoidance arrangement within six months from the end of the month in which the reference was received. Clause (ii) of the Explanation to the said section provides that the period during which the proceeding of the Approving Panel is stayed by an order or injunctions of any court shall be excluded in computing the period as per sub-section (13). It is proposed to amend the said clause so as to clarify the commencement date and the end date of such exclusion period. This amendment will take effect from 1st April, 2025. Clause 42 of the Bill seeks to amend section 144C of the Income-tax Act relating to referen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amendments. It is proposed to insert a new sub-section (21) in the said section so as to provide that where the arm's length price is determined in relation to an international transaction or a specified domestic transaction under sub-section (3) of section 92CA for any previous year and the Transfer Pricing Officer has declared an option exercised by the assessee as valid option under sub-section (3B) of section 92CA in respect of such transaction for two consecutive previous years immediately following such previous year, the Assessing Officer shall proceed to recompute the total income of the assessee for the said two consecutive previous years, by amending the order of assessment or any intimation or deemed intimation under sub-section (1) of section 143,-- (i) in conformity with the arm's length price so determined by the Transfer Pricing Officer under sub-section (4A) of section 92CA in respect of such transaction; (ii) taking into account the directions issued under sub-section (5) of section 144C, if any, for such previous year, within three months from the end of the month in which the assessment is completed in the case of the assessee for such previous year an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seeks to amend section 158BB of the Income-tax Act relating to computation of total income of block period. Sub-section (1) of the said section provides the methodology for computation of total income of block period. Clause (i) of the said sub-section provides that total income of the block period shall include total income disclosed in the return furnished under section 158BC. Clause (iii) of the said sub-section provides that total income of the block period shall include total income declared in the return of income filed under section 139 or in response to a notice under sub-section (1) of section 142 or section 148 and not covered under clause (i) or clause (ii). Clause (iv) of the said sub-section provides that where the previous year has not ended, total income of the block period shall include total income determined, on the basis of entries relating to such income or transactions as recorded in the books of account and other documents maintained in the normal course on or before the date of last of the authorisations for the search or requisition relating to such previous year. It is proposed to substitute sub-section (1),-- (a) in clause (i) of the said sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake effect retrospectively from 1st February, 2025. Clause 49 of the Bill seeks to amend section 158BE of the Income-tax Act relating to time-limit for completion of block assessment. Section 158BE, inter alia, provides the time-limit for completion of block assessment as twelve months from end of the month in which the last of the authorisations for search or requisition has been executed. It is proposed to amend sub-section (1) so as to provide that the order under section 158BC shall be passed within twelve months from the end of the quarter in which the last of the authorisations for search or requisition was executed. It is also proposed to amend sub-section (3) of the said section so as to provide that the order under section 158BC in pursuance of section 158BD shall be passed within twelve months from the end of the quarter in which the notice under section 158BC in the case of the other person referred to in section 158BD, was issued. This amendment will take effect retrospectively from 1st February, 2025. Sub-section (1) of the said section provides that the order of block assessment shall be passed within twelve months from the end of the month in which the last of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osed to amend clause (v) of the proviso to the said section so as to provide that no tax is required to be deducted therein if the amount of interest paid or likely to be paid does not exceed ten thousand rupees. These amendments will take effect from 1st April, 2025. Clause 52 of the Bill seeks to amend section 194 of the Income-tax Act relating to dividends. The said section provides for deduction of tax in respect of dividends. The first proviso to the said section provides that no tax is required to be deducted under this section if the dividend is paid by the company by any mode other than cash and the amount of such dividend or, as the case may be, the aggregate of the amounts of such dividend during the financial year by the company to the shareholder, being an individual, does not exceed five thousand rupees. It is proposed to amend the first proviso to the said section so as to provide that no tax is required to be deducted at source if the amount or aggregate of the amounts of such dividend during the financial year by the company to the shareholder, being an individual, does not exceed ten thousand rupees. This amendment will take effect from 1st April, 2025. Claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rupees in any other case. These amendments will take effect from 1st April, 2025. Clause 54 of the Bill seeks to amend section 194B of the Income-tax Act relating to winnings from lottery or crossword puzzle, etc. The said section provides that the person responsible for paying to any person any income by way of winnings from any lottery or crossword puzzle or card game and other game of any sort or from gambling or betting of any form or nature whatsoever, being the amount or the aggregate of amounts exceeding ten thousand rupees during the financial year shall, at the time of payment thereof, deduct income-tax thereon at the rates in force. It is proposed to amend the said section so as to provide that tax will be required to be deducted at source under this section when the amount exceeds ten thousand rupees in respect of a single transaction. This amendment will take effect from 1st April, 2025. Clause 55 of the Bill seeks to amend section 194BB of the Income-tax Act relating to winnings from horse race. The said section provides that any person, being a bookmaker or a person to whom a licence has been granted by the Government under any law for the time being in force ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of two per cent. It is proposed to amend the sub-section (1) of said section so as to provide the threshold of such income for requirement to deduct tax at source under this sub-section is twenty thousand rupees. This amendment will take effect from 1st April, 2025. Clause 58 of the Bill seeks to amend section 194H of the Income-tax Act relating to commission or brokerage. The said section, inter alia, provides that any person, not being an individual or a Hindu undivided family, who is responsible for paying, on or after the 1st June, 2001, to a resident, any income by way of commission or brokerage shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of two per cent.. The first proviso to the said section provides that no deduction shall be made under this section in a case where the amount of such income or, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said clause (B) of the first proviso so as to provide that no deduction of tax at source shall be made under this section where the amount of such income as specified therein or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during a month, does not exceed fifty thousand rupees. This amendment will take effect from 1st April, 2025. Clause 61 of the Bill seeks to amend section 194K of the Income-tax Act relating to income in respect of units. The said section provides that any person responsible for paying to a resident any income in respect of units of a Mutual Fund specified under clause (23D) of section 10; or units from the Administrator of the specified undertaking; or units from the specified company, shall, at the time of credit of such income to the account of the payee or at the time of payment thereof by any mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent. Clause (i) of the proviso to the said section provides that no tax shall be required to be deducted under this section where the amount of such income or, as the case may be, the aggregate of the amounts of such in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he payment shall, deduct income-tax, at the rate of 25%, if the payee is an individual or a Hindu undivided family and 30%, if the payee is any other person. It is proposed to amend the said section so as to provide a reduced uniform rate of tax deducted at source of 10%, instead of the two rates specified above. This amendment will take effect from 1st April, 2025. Clause 64 of the Bill seeks to amend section 194Q of the Income-tax Act relating to tax deduction at source on payment of certain sum for purchase of goods. The said section provides that any person being a buyer who pays any sum to a resident seller for purchase of any goods of the value or aggregate of value exceeding fifty lakh rupees in any previous year, to deduct 0.1% of such sum exceeding fifty lakh rupees as income-tax, subject to certain conditions. Sub-section (5) of the said section provides that the provisions of the said sub-section shall not apply to a transaction, inter alia, tax is collectible under the provisions of section 206C other than a transaction to which sub-section (1H) of section 206C applies. It is proposed to omit reference of sub-section (1H) of section 206C in the said sub- section. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to provide that tax be collected at source in serial number (iii) of the Table on timber and any other forest produce (not being tendu leaves), obtained under a forest lease. It is also proposed to amend sub-section (1) of the said section so as to insert an Explanation to provide the meaning of the expression "forest produce". Sub-section (1G) of said section provides for collection of tax at source by an authorised dealer, who receives an amount, for remittance from a buyer, being a person remitting such amount under the Liberalised Remittance Scheme of the Reserve Bank of India or a seller of an overseas tour program package, who receives any amount from a buyer, being the person who purchases such package, at the rates specified therein. It is proposed to amend the first, second and fourth provisos to the said sub-section so as to increase the threshold of amount or aggregate of amounts for requirement to collect tax at source under this sub-section as provided therein, to ten lakh rupees. It is further proposed to amend the third proviso to the said sub-section so as to provide that no tax be collected at source if the amount being remitted out is a loan obtained from an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so as to omit the words "made by a Deputy Commissioner". These amendments will take effect from 1st April, 2025. Clause 70 of the Bill seeks to amend section 253 of the Income-tax Act relating to appeals to the Appellate Tribunal. The said section, inter alia, empowers the Central Government to notify a faceless scheme for the purposes of appeal to the Appellate Tribunal so as to impart greater efficiency, transparency and accountability. Sub-section (9) of the said section empowers that the Central Government, may, for the purpose of giving effect to the aforesaid scheme, direct that any of the provisions of the Income-tax Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified. Proviso to sub-section (9) provides that no direction shall be issued after the 31st March, 2025. It is proposed to omit the said proviso. This amendment will give effect from 1st April, 2025. Clause 71 of the Bill seeks to amend section 255 of the Income-tax Act relating to the procedure of Appellate Tribunal. The said section, inter alia, empowers the Central Government to notify a faceless scheme for the purposes of disposal of appeals by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Clause 74 of the Bill seeks to amend section 270AA of the Income-tax Act, 1961 relating to immunity from imposition of penalty, etc. The said section, inter alia, provides procedure of granting immunity by the Assessing Officer from imposition of penalty or prosecution, if assessee fulfils the conditions specified therein. Sub-section (4) of the said section provides that the Assessing Officer shall pass an order accepting or rejecting the application, within a period of one month from the end of the month in which the application requesting immunity is received. It is proposed to amend the said sub-section so as to extend the processing period to three months from the end of the month in which application for immunity is received by the Assessing Officer. This amendment will take effect from 1st April, 2025. Clause 75 of the Bill seeks to amend section 271AAB of the Income-tax Act relating to penalty where search has been initiated. Sub-section (1A) of the said section, inter-alia, provides that for a search initiated on or after the 15th December, 2016, a penalty of thirty per cent. of undisclosed income may be levied, if the assessee admits such undisclosed income under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposed to insert a proviso in the said sub-section so that such penalty shall be imposed by the Assessing Officer in place of Joint Commissioner on or after the 1st day of April, 2025 subject to the provisions of sub-section (2) of section 274. This amendment will take effect from 1st April, 2025. Clause 79 of the Bill seeks to amend the section 271D of the Income-tax Act relating to penalty for failure to comply with the provisions of section 269SS. Sub-section (2) of said section provides that penalty under sub-section (2) shall be imposed by the Joint Commissioner. It is proposed to insert a proviso in the said sub-section so that such penalty shall be imposed by the Assessing Officer in place of Joint Commissioner on or after the 1st day of April, 2025 subject to the provisions of sub-section (2) of section 274. This amendment will take effect from 1st April, 2025. Clause 80 of the Bill seeks to amend the section 271DA of the Income-tax Act relating to penalty for failure to comply with the provisions of section 269ST. Sub-section (2) of the said section provides that penalty under sub-section (1) shall be imposed by the Joint Commissioner. It is proposed to insert a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine. The proviso to sub- section (3) of section 206C mandates that the tax collected at source has to be paid to the credit of the Central Government within the time provided by rules. It is proposed to insert a proviso to the said section so as to provide that the provisions of that section shall not apply, if the payment of the tax collected at source has been made to the credit of the Central Government at any time on or before the time provided by rules for filing the statement under the proviso to sub-section (3) of section 206C in respect of such payment. This amendment will take effect from 1st April, 2025. Clause 85 of the Bill seeks to insert new section 285BAA in the Income-tax Act relating to obligation to furnish information on transaction of crypto-asset. Sub-section (1) of the said section seeks to provide that any person, being a reporting entity, as prescribed, in respect of crypto asset, shall furnish information in respect of a transaction of such crypto-asset in a statement, for such period, within such time, in s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the levy of the tax, interest, fine, penalty or any other sum is stayed by an order or injunction of any court; or the proceeding of attachment or sale of the immovable property are stayed by an order or injunction of any court shall be excluded in computing the period of limitation. It is proposed to substitute clauses (i) and (ii) of the said sub-rule so as to clarify the commencement date and the ending date of such exclusion period. This amendment will take effect from 1st April, 2025. Indirect Taxes Customs Clause 87 of the Bill seeks to amend sub-sections (1) and (1A), and to insert new sub-sections (1B) and (1C), in section 18 of the Customs Act, 1962. It is proposed to amend sub-section (1) so as to provide that the proper officer may provisionally assess the duty on goods. It is proposed to amend sub-section (1A) so as to remove reference to the time within which the proper officer shall finalise the provisional assessment. Sub-section (1B) seeks to provide time limit of two years for finalisation of the provisional assessment which shall be extendable by the Principal Commissioner of Customs or Commissioner of Customs for a further period of one year, if the suffici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 127C of the Customs Act by inserting new sub-sections (11) and (12) therein, so as to provide that on and from the 1st day of April, 2025, the provisions of sub-sections (2), (3), (4), (5), (5A), (6), (7), (8) and (8A) shall apply to pending applications with modifications specified therein. It further empowers the Interim Board to extend the time-limit provided under sub- section (8A), within three months from its constitution, by such period not exceeding twelve months from the date of its constitution. Clause 94 of the Bill seeks to amend section 127D of the Customs Act by inserting a new sub-section (3) therein, so as to provide that the power of the Settlement Commission shall be exercised by the Interim Board and the provisions of that section shall mutatis mutandis apply to the Interim Board as they apply to the Settlement Commission. Clause 95 of the Bill seeks to amend section 127F of the Customs Act by inserting a new sub-section (5) therein, to provide that the powers and functions of the Settlement Commission under the said section shall be exercised or performed by the Interim Board and the provisions of that section shall mutatis mutandis apply to the Interim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eks to amend sections 32A, 32B, 32C and 32D of the Central Excise Act so as to provide that the existing provisions of the said sections shall cease to apply on or after the 1st day of April, 2025. Clause 106 of the Bill seeks to amend section 32E so as to provide that no new application shall be made under this section on or after the 1st day of April, 2025. Clause 107 of the Bill seeks to insert sub-sections (11) and (12) in section 32F of the Central Excise Act so as to provide that on and from the 1st day of April, 2025, the provisions of sub-sections (2), (3), (4), (5), (5A), (6), (7), (8) and (10) shall apply to pending applications with modifications specified therein. It further empowers the Interim Board to extend the time-limit provided under sub- section (6), within three months of its constitution, by such period not exceeding twelve months from the date of its constitution. Clauses 108 to 115 of the Bill seek to amend sections 32G, 32-I, 32J, 32K, 32L, 32M, 32-O and 32P of the Central Excise Act so as to provide that the powers and functions of the Settlement Commission under the said sections shall be exercised or performed by the Interim Board on and from 1st day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is made notwithstanding anything to the contrary contained in any judgment, decree or order of any court or any other authority. This amendment shall take effect retrospectively from 1st day of July, 2017. Clause 120 of the Bill seeks to amend sub-section (1) of section 20 of the Central Goods and Services Tax Act so as to explicitly provide for distribution of input tax credit by the Input Service Distributor in respect of inter-State supplies, on which tax has to be paid on reverse charge basis, by inserting a reference to sub-section (3) and sub-section (4) of section 5 of the Integrated Goods and Services Tax Act in the said sub-section. It further seeks to amend sub-section (2) of the said section so as to explicitly provide for distribution of input tax credit by the Input Service Distributor in respect of inter-State supplies, on which tax has to be paid on reverse charge basis, by inserting reference to sub- section (3) and sub-section (4) of section 5 of the Integrated Goods and Services Tax Act in the said sub-section. This amendment shall take effect from 1st day of April, 2025. Clause 121 of the Bill seeks to amend the proviso to sub-section (2) of section 34 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act to provide for penal provisions for contraventions of the provision relating to track and trace mechanism. Clause 127 of the Bill seeks to insert a new section 148A in the Central Goods and Services Tax Act so as to provide for an enabling provision for implementation of track and trace mechanism for ensuring effective monitoring and control of supply of specified commodities. Clause 128 of the Bill seeks to insert a new clause (aa) in paragraph 8 of Schedule III of the Central Goods and Services Tax Act to specify that the supply of goods warehoused in a Special Economic Zone or in a Free Trade Warehousing Zone to any person before clearance for exports or to the Domestic Tariff Area shall be treated neither as supply of goods nor as supply of services. It further seeks to amend the Explanation 2 of the said Schedule to clarify that the said Explanation shall be applicable in respect of clause (a) of paragraph 8 of the said Schedule. It also seeks to insert an Explanation 3 in the said Schedule to define the expressions "Special Economic Zone", "Free Trade Warehousing Zone" and "Domestic Tariff Area", for the purpose of the proposed clause (aa) in paragraph 8 of said Sched ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , of the said Act, to give reference of the erstwhile State of Jammu and Kashmir as a Union territory. It is also proposed to amend clause (f) of section 2 of the Act so as to insert the words "and subject to such terms and conditions" after the words "any other purpose". It is also proposed to omit the words "and having one of the forms mentioned in section 3" from the said clause. It is also proposed to amend section 3 of the Act so as to omit the words "subject to such terms and conditions as may be specified." It is also proposed to amend sub-section (4) of section 5 of the Act so as to insert the words brackets, letter and figure "or shall be construed to affect any restriction of transferability of Government securities contained in any notification issued under clause (f) of section 2 in respect of such securities" after the words "upon the Bank". It is also proposed to omit sub-sections (1) and (2) of section 31 of the Act. It is also proposed to omit the words "and the terms and conditions subject to which" in clause (a) of sub-section (2) of section 32 of the Act. Clause 140 of the Bill also seeks to repeal the Public Debt Act, 1944 and provide saving clause thereto. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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