Finance Bill 2019, Indian Union Budget 2019-20

dquo;bank account” wherever they occur, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted;

(ii) in sub-section (4), after the words “such cheque or draft or electronic clearing system”, the words “or such other electronic mode as may be prescribed” shall be inserted.

In section 43 of the Income-tax Act, in clause (1), in the second proviso, for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.

In section 43B of the Income-tax Act, with effect from the 1st day of April, 2020,––

(i) after clause (d), the following clause shall be inserted, namely:––

5

10

15

Amendment of section 43CA.

Amendment of section 43D.

“(da) any sum payable by the assessee as interest on any loan or borrowing from a deposit taking non-banking financial company or systemically important non-deposit taking non-banking financial company, in accordance with the terms and conditions of the agreement governing such loan or borrowing, or”;

(ii) after Explanation 3A, the following Explanation shall be inserted, namely:––

“Explanation 3AA.—For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause (da ) is allowed in computing the income referred to in section 28, of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 2019, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him.”;

(iii) after Explanation 3C, the following Explanation shall be inserted, namely:––

“Explanation 3CA.—For the removal of doubts, it is hereby declared that a deduction of any sum, being interest payable under clause (da), shall be allowed if such interest has been actually paid and any interest referred to in that clause which has been converted into a loan or borrowing shall not be deemed to have been actually paid.”;

(iv) in Explanation 4, after clause (d), the following clauses shall be inserted, namely:––

‘(e) “deposit taking non-banking financial company” means a non-banking financial company which is accepting or holding public deposits and is registered with the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1934;

(f) “non-banking financial company” shall have the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934;

(g) “systemically important non-deposit taking non -banking financial company” means a non- banking financial company which is not accepting or holding public deposits and having total assets of not less than five hundred crore rupees as per the last audited balance sheet and is registered with the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1934.’.

In section 43CA of the Income-tax Act, in sub-section (4), for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.

In section 43D of the Income-tax Act, with effect from the 1st day of April, 2020,––

(i) in clause (a), after the words “State industrial investment corporation”, the words “or a deposit taking non-banking financial company or a systemically important non-deposit taking non-banking financial company” shall be inserted;

(ii) in the long line, after the words “State industrial investment corporation or”, the words “a deposit taking non-banking financial company or a systemically important non-deposit taking non-banking financial company or” shall be inserted;

(iii) in the Explanation, after clause (g), the following clause shall be inserted, namely:––

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25 

30 

35

2 of 1934.

2 of 1934.

40


2 of 1934.

45

 

 

5042 of 1956.

 

 

15 of 1992.

9

‘(h) the expressions “deposit taking non-banking financial company”, “non-banking financial company” and “systemically important non-deposit taking non-banking financial company” shall have the meanings respectively assigned to them in clauses (e), (f) and (g) of Explanation 4 to section 43B.’.

16. In section 44AD of the Income-tax Act, in sub-section (1), in the proviso, for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.

In section 47 of the Income-tax Act, in clause (viiab), with effect from the 1st day of April, 2020,––

(A) for sub-clause (c), the following sub-clauses shall be substituted, namely:–– “(c) derivative; or
(d) such other securities as may be notified by the Central Government in this behalf,”;

(B) in the long line, after the words “made by a non-resident”, the words “or a specified fund” shall be inserted;

15 (C) in the Explanation, after clause (c), the following clauses shall be inserted, namely:—

(d) “securities” shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956;

(e) “specified fund” means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate,—

(i) which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992;

(ii) which is located in any International Financial Services Centre;

(iii) which is deriving income solely in convertible foreign exchange;

25 (iv) of which all the units are held by non-residents;

 

 


Amendment of section 44AD.

Amendment of section 47.

2 of 1882.

 

 


42 of 1999.

(f) “trust” means a trust established under the Indian Trusts Act, 1882 or under any other law for the time being in force;

(g) “unit” means beneficial interest of an investor in the fund and shall include shares or partnership interests;

(h) “convertible foreign exchange” means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 and the rules made thereunder;’.

In section 50C of the Income-tax Act, in sub-section (1), in the second proviso, for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed”

35 shall be substituted with effect from the 1st day of April, 2020.

In section 50CA of the Income-tax Act, before the Explanation, the following proviso shall be inserted with effect from the 1st day of April, 2020, namely:—

“Provided that the provisions of this 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.”.

In section 54GB of the Income-tax Act, with effect from the 1st day of April, 2020,— (i) in sub-section (4), the following proviso shall be inserted, namely:—


Amendment of section 50C.

Amendment of section 50CA.

 

Amendment of section 54GB.

‘Provided that in case of a new asset, being computer or computer software, acquired by an eligible start-up referred to in the proviso to clause (d) of sub-section (6), the provisions of this

sub-section shall have effect as if for the words “five years”, the words “three years” had been substituted.’;

(ii) in sub-section (5), in the proviso, for the figures “2019”, the figures “2021” shall be substituted;

(iii) in sub-section (6), in clause (b), in sub-clause (iii), for the word “fifty” at both the places where

it occurs, the word “twenty-five” shall be substituted.
50 21. In section 56 of the Income-tax Act, in sub-section (2),–– Amendment
of section 56.

(i) in clause (viib), with effect from the 1st day of April, 2020,—

substitution of section 79.

Carry forward and set off of losses in case of certain companies.

10

(a) in the proviso, in clause (i), for the words “venture capital fund”, the words “venture capital fund or a specified fund” shall be substituted;

(b) after the proviso, the following proviso shall be inserted, namely:—

“Provided further that where the provisions of this clause have not been applied to a company on account of fulfilment of conditions specified in the notification issued under clause (ii) of the first proviso and such company fails to comply with any of those conditions, then, any consideration received for issue of share that exceeds the face value of such share shall be deemed to be the income of that company chargeable to income-tax for the previous year in which such failure has taken place.”;

(c) in the Explanation, after clause (a), the following clauses shall be inserted, namely:—

‘(aa) “specified fund” means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which has been granted a certificate of registration as a Category II Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992;

(ab) “trust” means a trust established under the Indian Trusts Act, 1882 or under any other law for the time being in force;’;

(ii) in clause (viii), for the words, brackets, letters and figures “clause (b) of section 145A”, the words, brackets, figures and letter “sub-section (1) of section 145B” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2017;

(iii) in clause (x),––

(A) in sub-clause (b), in the second proviso, for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020;

(B) in the proviso, after clause (X), the following clause shall be inserted with effect from the 1st day of April, 2020, namely:—

“(XI) from such class of persons and subject to such conditions, as may be prescribed.”.

For section 79 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2020, namely:––

‘79. (1) Notwithstanding anything contained in this Chapter, 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 year, the shares of the company carrying not less than fifty-one per cent. of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than fifty-one per cent. of the voting power on the last day of the year or years in which the loss was incurred:

Provided that even if the said condition is not satisfied in case of an eligible start up as referred to in section 80-IAC, the loss incurred in any year prior to the previous year shall be allowed to be carried forward and set off against the income of the previous year if all the shareholders of such company who held shares carrying voting power on the last day of the year or years in which the loss was incurred, continue to hold those shares on the last day of such previous year and such loss has been incurred during the period of seven years beginning from the year in which such company is incorporated.

(2) Nothing contained in sub-section (1) shall apply,––

(a) to a case where a change in the said voting power and shareholding takes place in a previous year consequent upon the death of a shareholder or on account of transfer of shares by way of gift to any relative of the shareholder making such gift;

(b) to any change in the shareholding of an Indian company which is a subsidiary of a foreign company as a result of amalgamation or demerger of a foreign company subject to the condition that fifty-one per cent. shareholders of amalgamating or demerged foreign company continue to be the shareholders of the amalgamated or the resulting foreign company;

(c) to a company where a change in the shareholding takes place in a previous year pursuant to a resolution plan approved under the Insolvency and Bankruptcy Code, 2016, after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner;

 

 

 

5

 

 

10

 

 

15 of 1992.

2 of 1882.

 

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25

 

 


30

 


35

 

 

40

 

 

45

 

 

50

 


31 of 2016.

55

11

(d) to a company, and its subsidiary and the subsidiary of such subsidiary, where,––

(i) the Tribunal, on an application moved by the Central Government under section 241 of the

18 of 2013. Companies Act, 2013, has suspended the Board of Directors of such company and has appointed new directors 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

18 of 2013. the Tribunal under section 242 of the Companies Act, 2013 after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner.

Explanation.––For the purposes of this section,––

(i) 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;

(ii) “Tribunal” shall have the meaning assigned to it in clause (90) of section 2 of the
18 of 2013. Companies Act, 2013.’.

In section 80C of the Income-tax Act, in sub-section (2), after clause (xxiv), the following clause 15 shall be inserted with effect from the 1st day of April, 2020, namely:—

‘(xxv) being an employee of the Central Government, as a contribution to a specified account of
the pension scheme referred to in section 80CCD––
(a) for a fixed period of not less than three years; and
20 (b) which is in accordance with the scheme as may be notified by the Central Government in
the Official Gazette for the purposes of this clause.
Explanation.—For the purposes of this clause, “specified account” means an additional account
referred to in sub-section (3) of section 20 of the Pension Fund Regulatory and Development
23 of 2013. Authority Act, 2013. ’.

In section 80CCD of the Income-tax Act, in sub-section (2), for the words “does not exceed ten 25 per cent. of his salary in the previous year”, the words, brackets and letters “does not exceed––

(a) fourteen per cent., where such contribution is made by the Central Government;

(b) ten per cent., where such contribution is made by any other employer,

of his salary in the previous year” shall be substituted with effect from the 1st day of April, 2020.

After section 80EE of the Income-tax Act, the following sections shall be inserted with effect 30 from the 1st day of April, 2020, namely:––

‘80EEA. (1) In computing the total income of an assessee, being an individual not eligible to claim deduction under section 80EE, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential house property.

(2) The deduction under sub-section (1) shall not exceed one lakh and fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2020 and subsequent assessment years.

(3) The deduction under sub-section (1) shall be subject to the following conditions, namely:— (i) the loan has been sanctioned by the financial institution during the period beginning on the

40 1st day of April, 2019 and ending on the 31st day of March, 2020;

(ii) the stamp duty value of residential house property does not exceed forty-five lakh rupees;

(iii) the assessee does not own any residential house property on the date of sanction of loan.

(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for

the same or any other assessment year. (5) For the purposes of this section,––

(a) the expression “financial institution” shall have the meaning assigned to it in clause (a) of sub-section (5) of section 80EE;

(b) the expression “stamp duty value” means value adopted or assessed or assessable by

any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property.

Amendment of section 80C.


Amendment of section 80CCD. 

Insertion of new sections 80EEA and 80EEB.

Deduction in respect of interest on loan taken for certain house property.

Deduction in respect of purchase of electric vehicle. 

Amendment of section 80-IBA.

12

80EEB. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of purchase of an electric vehicle.

(2) The deduction under sub-section (1) shall not exceed one lakh and fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning 5 on the 1st day of April, 2020 and subsequent assessment years.

(3) The deduction under sub-section (1) shall be subject to the condition that the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2023.

(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), 10 deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year.

(5) For the purposes of this section,––

(a) “electric vehicle” means a vehicle which is powered exclusively by an electric motor whose traction energy is supplied exclusively by traction battery installed in the vehicle and has such 15 electric regenerative braking system, which during braking provides for the conversion of vehicle kinetic energy into electrical energy;

(b) “financial institution” means a banking company to which the Banking Regulation Act, 1949 applies, or any bank or banking institution referred to in section 51 of that Act and includes any deposit taking non -banking financial company or a systemically important 20 non-deposit taking non-banking financial company as defined in clauses (e) and (g) of Explanation 4 to section 43B.’.

In section 80-IBA of the Income-tax Act, with effect from the 1st day of April, 2020,—

(A) in sub-section (2), after clause (i), the following proviso shall be inserted, namely:—
‘Provided that for the projects approved on or after the 1st day of September, 2019, the provisions 25
of this sub-section shall have effect as if for clauses (d) to (i), the following clauses had been
substituted, namely:––
“(d) the project is on a plot of land measuring not less than—
(i) one thousand square metres, where such project is located within the metropolitan
cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater 30
Noida, Ghaziabad, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of
Mumbai Metropolitan Region); or
(ii) two thousand square metres, where such project is located in any other place;
(e) the project is the only housing project on the plot of land as specified in clause (d);
(f) the carpet area of the residential unit comprised in the housing project does not exceed— 35
(i) sixty square metres, where such project is located within the metropolitan cities of
Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida,
Ghaziabad, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai
Metropolitan Region); or
(ii) ninety square metres, where such project is located in any other place; 40
(g) the stamp duty value of a residential unit in the housing project does not exceed
forty-five lakh rupees;
(h) where a residential unit in the housing project is allotted to an individual, no other residential
unit in the housing project shall be allotted to the individual or the spouse or the minor children
of such individual; 45
(i) the project utilises—
(I) not less than ninety per cent. of the floor area ratio permissible in respect of the plot of
land under the rules to be made by the Central Government or the State Government or the
local authority, as the case may be, where such project is located within the metropolitan 50
cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater
Noida, Ghaziabad, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of
Mumbai Metropolitan Region); or

(II) not less than eighty per cent. of such floor area ratio where such project is located in any place other than the place referred to in sub-clause (I); and

 

 

 

 

 

 

 

 

 

 

 

10 of 1949.

 

 

 

 

 

 

 

 

 

 

 

 

 

10 of 1949.

15 of 1992.

13

(j) the assessee maintains separate books of account in respect of the housing project.”.’;

(B) in sub-section (6), after clause (e), the following clause shall be inserted, namely:—

‘(f) “stamp duty value” means the value adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in

respect of an immovable property.’.

In section 80JJAA of the Income-tax Act, in the Explanation, in clause (i), in the first proviso, in clause (b), for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.

In section 80LA of the Income-tax Act, with effect from the 1st day of April, 2020,––

10 (i) for sub-section (1), the following sub-sections shall be substituted, namely:––

“(1) Where the gross total income of an assessee, being a scheduled bank, or, any bank incorporated by or under the laws of a country outside India; and having an Offshore Banking Unit in a Special Economic Zone, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from
15 such income, of 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

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

20 law was obtained, and thereafter;

(b) fifty per cent. of such income for five consecutive assessment years.

 

 

 

 

Amendment of section 80JJAA.

Amendment of section 80LA.

 

 

 


10 of 1949.

15 of 1992.

(1A) Where the gross total income of an assessee, being a Unit of an International Financial Services Centre, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of

an amount equal to one hundred per cent. of such income for any ten consecutive assessment years, at the option of the assesse, out of fifteen 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.”;

(ii) in sub-section (2), in the opening portion, for the word, brackets and figure “sub-section (1), the words, brackets, figures and letter “sub-section (1) and sub-section (1A)” shall be substituted.

In section 92CD of the Income-tax Act, with effect from the 1st day of September, 2019,––

(a) in sub-section (3), for the words “proceed to assess or reassess or recompute the total income of the relevant assessment year”, the words “pass an order modifying the total income of the relevant
assessment year determined in such assessment or reassessment, as the case may be,” shall be substituted;

(b) in sub-section (5), in clause (a), the words “of assessment, reassessment or recomputation of total income” shall be omitted.

 

 

 

 

 

 

Amendment of section 92CD.

In section 92CE of the Income-tax Act,––

40(a) in sub-section (1),––

(I) in clause (iii), for the word, figures and letters “section 92CC”, the words, figures and letters “section 92CC, on or after the 1st day of April, 2017,” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2018;

(II) in the proviso, in clause (i), for the words “one crore rupees; and”, the words “one crore

rupees; or” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2018;

(III) after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2018, namely:––

“Provided further that no refund of taxes paid, if any, by virtue of provisions of this

sub-section as they stood immediately before their amendment by the Finance (No.2) Act, 2019 shall be claimed and allowed.”;

Amendment of section 92CE.

 

 

 

 

 

<;

in Chapter 60, after Sub-heading Note, the following Supplementary Note shall be inserted, namely:— “Supplementary Note:

Tariff items 6001 91 00, 6001 92 00 and sub-heading 6001 99 includes cut-pile fabrics produced through shearing of loops during or after the production of fabric.”;
in Chapter 61,—

in heading 6103, after tariff item 6103 10 90 and the entries relating thereto, the following shall be inserted, namely:—“-Ensembles:”; 

 

10

15

20

25

30

35

40

45

50 

5

10

15

20

25

30

35

40

45

50 

55

60

83

in heading 6115, after tariff item 6115 30 00 and the entries relating thereto, the following shall be inserted, namely:—

“-Other:”;

in Chapter 62,—

in Note 3, in clause (b), for the words “corresponding of compatible size”, the words “corresponding or compatible size” shall be substituted;

after Note 9, the following Supplementary Note shall be inserted, namely:—

“Supplementary Note:

For the purpose of this Chapter, “Khadi” means,—

the article of apparel or clothing accessories, made from any cloth woven on handlooms in India from cotton, silk or woollen yarn handspun in India or from a mixture of any two or all of such yarns; and
produced by a person certified or recognised by the Khadi Village Industries Commission established under section 4 of the Khadi and Village Industries Commission Act, 1956 (61 of 1956).”;

in heading 6203,—

for tariff items 6203 29 00 to 6203 31 00 and the entries relating thereto, the following shall be substituted, namely:—

“6203 29 - - Of other textile materials:
- - - Of silk:
6203 29 11 ---- Khadi u 25% or Rs. 145 per piece, -
whichever is higher
6203 29 19 ---- Other u 25% or Rs. 145 per piece, -
whichever is higher
6203 29 90 - - - Other u 25% or Rs. 145 per piece, -
whichever is higher
- Jackets and blazers:
6203 31 - - Of wool or fine animal hair:
6203 31 10 - - - Khadi u 25% or Rs. 815 per piece, -
whichever is higher
6203 31 90 - - - Other u 25% or Rs. 815 per piece, -”;
whichever is higher


(b) for tariff item 6203 39 10 and the entries relating thereto, the following shall be substituted, namely:


“--- Of silk:
6203 39 11 ---- Khadi u 25% or Rs. 755 per piece, -
whichever is higher
6203 39 19 ---- Other u 25% or Rs. 755 per piece, -”;
whichever is higher


(c) for tariff item 6203 42 00 and the entries relating thereto, the following shall be substituted, namely:


“6203 42 - - Of cotton:
6203 42 10 - - - Handloom u 25% or Rs. 135 per piece, -
whichever is higher
6203 42 90 - - - Other u 25% or Rs. 135 per piece, -”;
whichever is higher

in heading 6204,—
for tariff item 6204 29 11 and the entries relating thereto, the following shall be substituted, namely:—

“6204 29 12 ---- Khadi u 25% -”;
(b) for tariff item 6204 31 00 and the entries relating thereto, the following shall be substituted, namely:—
“6204 31 - - Of wool or fine animal hair:
6204 31 10 - - - Khadi u 25% or Rs. 370 per piece, -
whichever is higher
6204 31 90 - - - Other u 25% or Rs. 370 per piece, -”;
whichever is higher
(c) for tariff item 6204 39 11 and the entries relating thereto, the following shall be substituted, namely:—
“6204 39 12 ---- Khadi u 25% or Rs. 350 per piece, -”;
whichever is higher

for the entry in column (2) occurring against tariff item 6204 42 20, the following shall be substituted, namely:-“- - - Handloom”;
for tariff item 6204 62 00 and the entries relating thereto, the following shall be substituted, namely:—


“6204 62 - - Of cotton:
6204 62 10 - - - Handloom u 25% or Rs. 135 per piece, -
whichever is higher
6204 62 90 - - - Other u 25% or Rs. 135 per piece, -”;
whichever is higher

84
(v) in heading 6205,-
(a) for tariff item 6205 20 00 and the entries relating thereto, the following shall be substituted, namely: —
“6205 20 - Of cotton:
6205 20 10 - - - Handloom u 25% or Rs. 85 per piece, -
whichever is higher
6205 20 90 - - - Other u 25% or Rs. 85 per piece, -”;
whichever is higher
(b) for tariff item 6205 90 10 and the entries relating thereto, the following shall be substituted, namely:—
“--- Of silk:
6205 90 11 ---- Khadi u 25% or Rs. 95 per piece, -
whichever is higher
6205 90 19 ---- Other u 25% or Rs. 95 per piece, -”;
whichever is higher

(vi) in heading 6206, for tariff item 6206 30 00 and the entries relating thereto, the following shall be substituted, namely:—

“6206 30 - Of cotton:
6206 30 10 - - - Handloom u 25% or Rs. 95 per piece, -
whichever is higher
6206 30 90 - - - Other u 25% or Rs. 95 per piece, -”;
whichever is higher

in heading 6207, for tariff items 6207 19 90 to 6207 22 00 and the entries relating thereto, the following shall be substituted, namely:—

“6207 19 90 - - - Other u 25% or Rs.30 per piece, -
whichever is higher
- Night shirts and pyjamas:
6207 21 - - Of cotton:
6207 21 10 - - - Handloom u 25% -
6207 21 90 - - - Other u 25% -
6207 22 00 - - Of man-made fibres u 25% -”;

p> 

 

 

 

 

 

 

 

 

 

 

 

Substitution of section 92D.

Maintenance,

keeping and
furnishing of
information
and
document by
certain
persons.

 

 

 

 

 

 

 

 

 

 

 

Amendment of section 111A.

14

(b) in sub-section (2),––

(i) for the words “the excess money which”, the words “the excess money or part thereof, as the case may be, which” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2018;

(ii) the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2018, namely:––

“Explanation.––For the removal of doubts, it is hereby clarified that the excess money or part thereof may be repatriated from any of the associated enterprises of the assessee which is not a resident in India.”;

(c) after sub-section (2), the following sub-sections shall be inserted with effect from the 1st day of September, 2019, namely:––

“(2A) Without prejudice to the provisions of sub-section (2), where the excess money or part thereof has not been repatriated within the prescribed time, the assessee may, at his option, pay additional income-tax at the rate of eighteen per cent. on such excess money or part thereof, as the case may be.

(2B) The tax on the excess money or part thereof so paid by the assessee under sub-section (2A) shall be treated as the final payment of tax in respect of the excess money or part thereof not repatriated and no further credit therefor shall be claimed by the assessee or by any other person in respect of the amount of tax so paid.

(2C) No deduction under any other provision of this Act shall be allowed to the assessee in respect of the amount on which tax has been paid in accordance with the provisions of sub-section (2A).

(2D) Where the additional income-tax referred to in sub-section (2A) is paid by the assessee, he shall not be required to make secondary adjustment under sub-section (1) and compute interest under sub-section (2) from the date of payment of such tax.”.

In the Income-tax Act, for section 92D, the following section shall be substituted with effect from the 1st day of April, 2020, namely:––

‘92D. (1) Every person,––

(i) who has entered into an international transaction or specified domestic transaction shall keep and maintain such information and document in respect thereof as may be prescribed;

(ii) being a constituent entity of an international group, shall keep and maintain such information and document in respect of an international group as may be prescribed.

Explanation.––For the purposes of this clause,––

(A) “constituent entity” shall have the meaning assigned to it in clause (d) of sub-section (9) of section 286;

(B) “international group” shall have the meaning assigned to it in clause (g) of sub-section (9) of section 286.

(2) Without prejudice to the provisions contained in sub-section (1), the Board may prescribe the period for which the information and document shall be kept and maintained under the said sub-section.

(3) The Assessing Officer or the Commissioner (Appeals) may, in the course of any proceeding under this Act, require any person referred to in clause (i) of sub-section (1) to furnish any information or document referred therein, within a period of thirty days from the date of receipt of a notice issued in this regard:

Provided that the Assessing Officer or the Commissioner (Appeals) may, on an application made by such person, extend the period of thirty days by a further period not exceeding thirty days.

(4) The person 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.’.

In section 111A of the Income-tax Act, in the Explanation, in clause (a), for the words, brackets and figures “the Explanation to clause (38) of section 10”, the words, brackets, letters and figures “clause (a) of the Explanation to section 112A” shall be substituted with effect from the 1st day of April, 2020.

 

 

 

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31 of 2016.

15

In section 115A of the Income-tax Act, in sub-section (4), after clause (b), the following proviso shall be inserted with effect from the 1st day of April, 2020, namely:––

“Provided that nothing contained in this sub-section shall apply to a deduction allowed to a Unit of an International Financial Services Centre under section 80LA.”.

34. In section 115JB of the Income-tax Act, in sub-section (2), in Explanation 1, in the long line, for clause (iih), the following clause shall be substituted wi

in heading 6208, for tariff item 6208 21 00 and the entries relating thereto, the following shall be substituted, namely:—

“6208 21 - - Of cotton:
6208 21 10 - - - Handloom u 25% -
6208 21 90 - - - Other u 25% -”;

(ix) in heading 6209, for tariff item 6209 20 00 and the entries relating thereto, the following shall be substituted, namely:-

“6209 20 - Of cotton:
6209 20 10 - - - Handloom u 25% -
6209 20 90 - - - Other u 25% -”;
(x) in heading 6211,-
(a) for tariff item 6211 39 00 and the entries relating thereto, the following shall be substituted, namely:-
“6211 39 - - Of other textile materials:
- - - Of silk:
6211 39 11 ---- Handloom u 25% -
6211 39 19 ---- Other u 25% -
6211 39 90 - - - Other u 25% -”;
(b) after tariff item 6211 49 10 and the entries relating thereto, the following shall be inserted, namely:-
“--- Of silk:
6211 49 21 ---- Khadi u 25% -
6211 49 29 ---- Other u 25% -”;

in heading 6214, for tariff items 6214 20 20 and 6214 20 30 and the entries relating thereto, the following shall be substituted, namely:

“--- Scarves:
6214 20 21 ---- Khadi u 25% or Rs. 180 per piece, -
whichever is higher
6214 20 29 ---- Other u 25% or Rs. 180 per piece, -
whichever is higher

 

 

 

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- - - Mufflers:
6214 20 31 ---- Khadi u 25% or Rs. 180 per piece, -
whichever is higher
6214 20 39 ---- Other u 25% or Rs. 180 per piece, -”;
whichever is higher

(xii) in heading 6215, for tariff item 6215 10 00 and the entries relating thereto, the following shall be substituted, namely:

“6215 10 - Of silk or silk waste:
6215 10 10 - - - Khadi u 25% or Rs. 55 per piece, -
whichever is higher
6215 10 90 - - - Other u 25% or Rs. 55 per piece, -”;
whichever is higher

in Chapter 68,—

in Note 1, in clause (b), for the words “paper coated with mica”, the words “paper and paperboard coated with mica” shall be substituted;

in heading 6813, for sub-heading 6813 20, tariff items 6813 20 10 to 6813 89 00 and the entries relating thereto, the following shall be substituted, namely:—
“6813 20 - Containing asbestos:
6813 20 10 - - - Brake lining and pads kg. 15% -
6813 20 90 - - - Asbestos friction materials kg. 15% -
- Not containing asbestos :
6813 81 00 - - Brake linings and pads kg. 15% -
6813 89 00 - - Other kg. 15% -”;

in Chapter 70,—

in Sub-heading Note, for the figures “7013 91”, the figures “7013 91 00” shall be substituted;

in heading 7005, in the entry in column (2) occurring against sub-heading 7005 21, for the words and brackets “mass (body tinted) opacified”, the words and brackets “mass (body tinted), opacified” shall be substituted;

in the entry in column (2) occurring against heading 7018, for the words “JEWELLERY, GLASS”, the words “JEWELLERY; GLASS” shall be substituted;

in Chapter 71,—

in heading 7103, for sub-heading 7103 10 and tariff items 7103 10 11 to 7103 99 90 and the entries relating thereto, the following shall be substituted, namely:—

“7103 10 - Unworked or simply sawn or roughly shaped:
- - - Precious or semi-precious stones of “Beryl”
and “Chrysoberyl” mineralogical species:
7103 10 31 ---- Emerald kg. 10% -
7103 10 32 ---- Yellow/golden/pink/red/green beryl kg. 10% -
7103 10 33 ---- Chrysoberyl (including chrysoberyl cat’s eye) kg. 10% -
7103 10 34 ---- Alexandrite (including alexandrite cat’s eye) kg. 10% -
7103 10 39 ---- Other kg. 10% -
- - - Precious or semi-precious stones of “Corundum”
and “Feldspar” mineralogical species:
7103 10 41 ---- Ruby kg. 10% -
7103 10 42 ---- Sapphire kg. 10% -
7103 10 43 ---- Moonstone kg. 10% -
7103 10 49 ---- Other kg. 10% -
- - - Precious or semi-precious stones of “Garnet”
and “Lazurite” mineralogical species:
7103 10 51 ---- Garnet kg. 10% -
7103 10 52 ---- Lapis-lazuli kg. 10% -
7103 10 59 ---- Other kg. 10% -
- - - Precious or semi-precious stones of “Prehnite”
and “Quartz” mineralogical species:
7103 10 61 ---- Prehnite kg. 10% -
7103 10 62 ---- Agate kg. 10% -
7103 10 63 ---- Aventurine kg. 10% -

86
7103 10 64 ---- Chalcedony kg. 10% -
7103 10 69 ---- Other kg. 10% -
- - - Precious or semi-precious stones of “Tourmaline”
and “Zoisite” mineralogical species:
7103 10 71 ---- Tourmaline kg. 10% -
7103 10 72 ---- Tanzanite kg. 10% -
7103 10 79 ---- Other kg. 10% -
7103 10 90 - - - Other kg. 10% -
- Otheth effect from the 1st day of April, 2020, namely:—

‘(iih) the aggregate amount of unabsorbed depreciation and loss brought forward in case of a—

(A) company, and its subsidiary and the subsidiary of such subsidiary, where, the Tribunal, on an application 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 who are nominated by the Central Government under section 242 of the said Act;

(B) company against whom an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code, 2016.

15 Explanation.–– For the purposes of this clause,—

Amendment of section 115A.


Amendment of section 115JB.

31 of 2016.


18 of 2013.

 

 

 

 

 

 

 

 

 

 

 

 

 

 


42 of 1999.

 

28 of 2005.

(i) “Adjudicating Authority” shall have the meaning assigned to it in clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016;

(ii) “Tribunal” shall have the meaning assigned to it in clause (90) of section 2 of the Companies Act, 2013;

(iii) a company shall be a subsidiary of another company, if such other company holds more than half in the nominal value of equity share capital of the company;

(iv) “loss” shall not include depreciation; or’.

In section 115-O of the Income-tax Act, in sub-section (8), for the words “out of its current income”, the words “out of its current income or income accumulated as a unit of International Financial Services

Centre after the 1st day of April, 2017” shall be substituted with effect from the 1st day of September, 2019.

In section 115QA of the Income-tax Act, in sub-section (1), the brackets and words “(not being shares listed on a recognised stock exchange)” shall be omitted with effect from the 5th day of July, 2019.

In section 115R of the Income-tax Act, in sub-section (2), with effect from the 1st day of

September, 2019,—

(A) after the second proviso, before the Explanation, the following proviso shall be inserted, namely:—

“Provided also that no additional income-tax shall be chargeable in respect of any amount of income distributed on or after the 1st day of September, 2019 by a specified Mutual Fund, out of

its income derived from transactions made on a recognised stock exchange located in any International Financial Services Centre:”;

(B) in the Explanation,—

(a) after clause (i), the following clause shall be inserted, namely:––

‘(ia) “convertible foreign exchange” means foreign exchange which is for the time being

treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 and the rules made thereunder;’;

(b) after clause (ii), the following clauses shall be inserted, namely:––

‘(iii) “International Financial Services Centre” shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005;

(iv) “recognised stock exchange” shall have the meaning assigned to it in clause (ii) of Explanation 1 to clause (5) of section 43;

(v) “specified Mutual Fund” means a Mutual Fund specified under clause (23D) of section 10—

(a) located in any International Financial Services Centre;
50 (b) deriving income solely in convertible foreign exchange;

 

 

 

 

 

Amendment of section 115-O.

Amendment of section 115QA.

Amendment of section 115R.

 

 

Amendment of section 115UB.

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Amendment of section 139.

16

(c) of which all the units are held by non-residents;

(vi) “unit” means beneficial interest of an investor in the fund;’.

In section 115UB of the Income-tax Act, in sub-section (2), with effect from the 1st day of April, 2020,––

(a) for clauses (i) and (ii), the following clauses shall be substituted, namely:–– 5

‘(i) out of such loss, 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,––

(a) allowed to be carried forward and it shall be set off by the investment fund in accordance with the provisions of Chapter VI; and

(b) ignored for the purposes of sub-section (1); 10

(ii) the loss other than the loss referred to in clause (i), if any, shall also be ignored for the purposes of sub-section (1), 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.’;

(b) after sub-section (2), the following sub-section shall be inserted, namely:––
‘(2A) The loss other than the loss under the head “Profit and gains of business or profession”, 15
if any, accumulated at the level of investment fund as on the 31st day of March, 2019,
shall be,––
(irwise worked:
7103 91 - - Ruby, sapphire and emeralds:
7103 91 10 - - - Ruby c/k 10% -
7103 91 20 - - - Sapphire c/k 10% -
7103 91 30 - - - Emeralds c/k 10% -
7103 99 - - Other:
- - - Precious or semi-precious stones of “Beryl”
and “Chrysoberyl” mineralogical species, other
than “Emerald”:
7103 99 11 ---- Yellow/golden/pink/red/green beryl c/k 10% -
7103 99 12 ---- Chrysoberyl (including chrysoberyl cat’s eye) c/k 10% -
7103 99 13 ---- Alexandrite (including alexandrite cat’s eye) c/k 10% -
7103 99 19 ---- Other c/k 10% -
- - - Precious or semi-precious stones of “Corundum”
and “Feldspar” mineralogical species, other than
“Ruby” and “Sapphire”:
7103 99 21 ---- Moonstone c/k 10% -
7103 99 29 ---- Other c/k 10% -
- - - Precious or semi-precious stones of “Garnet”
and “Lazurite” mineralogical species:
7103 99 31 ---- Garnet c/k 10% -
7103 99 32 ---- Lapis-lazuli c/k 10% -
7103 99 39 ---- Other c/k 10% -
- - - Precious or semi-precious stones of “Prehnite”
and “Quartz” mineralogical species:
7103 99 41 ---- Prehnite c/k 10% -
7103 99 42 ---- Agate c/k 10% -
7103 99 43 ---- Aventurine c/k 10% -
7103 99 44 ---- Chalcedony c/k 10% -
7103 99 49 ---- Other c/k 10% -
- - - Precious or semi-precious stones of “Tourmaline”
and “Zoisite” mineralogical species:
7103 99 51 ---- Tourmaline c/k 10% -
7103 99 52 ---- Tanzanite c/k 10% -
7103 99 59 ---- Other c/k 10% -
7103 99 90 - - - Other c/k 10% -”;

(ii) in heading 7104, for tariff item 7104 20 00 and the entries relating thereto, the following shall be substituted, namely:—

“7104 20 - Other, unworked or simply sawn or roughly shaped:
7104 20 10 - - - Laboratory-created or laboratory grown or kg. 10% -
manmade or cultured or synthetic diamonds
7104 20 90 - - - Other kg. 10% -”;

in heading 7106,-

for tariff item 7106 91 00 and the entries relating thereto, the following shall be substituted, namely:—

“7106 91 - - Unwrought:
7106 91 10 - - - Grains kg. 12.5% -
7106 91 90 - - - Other kg. 12.5% -”;

 

 

 

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(b) after tariff item 7106 92 10 and the entries relating thereto, the following shall be inserted, namely:—

“7106 92 20 - - - Bar kg. 12.5% -”;

in Chapter 72, in heading 7222, for the entry in column (2) occurring after the entry against tariff item 7222 20 19, the following shall be substituted, namely:—

“- - - Other:”;

in Chapter 73, in heading 7304,-

for the entry in column (2) occurring against tariff item 7304 22 00, the following shall be substituted, namely:—

“- - Drill pipe of stainless steel”;

(ii) for the entry in column (2) occurring against tariff item 7304 23 90, the following shall be substituted, namely:— “- - - Other”;

for the entry in column (2) occurring after the entry against tariff item 7304 49 00, the following shall be substituted, namely:—

“- Other, of circular cross section, of alloy steel:”;

in Chapter 74, in heading 7404,—

for tariff item 7404 00 21 and the entries relating thereto, the following shall be substituted, namely:—

“7404 00 21 - - - - Empty or discharged cartridges of all bores kg. 5% -”; and sizes, including the following:clean fired

70/30 brass shells free of bullets, iron and

any other foreign material covered by

ISRI code word ‘Lake’;clean muffled

(popped) 70/30 brass shells free of bullets,

iron and any other foreign material covered

by ISRI code word ‘Lamb’

in the entry in column (2) occurring against tariff item 7404 00 22, the portion beginning with the words “manganese bronze solids” and ending with the words “code word ‘Lamb’;” shall be omitted;
for tariff item 7404 00 23 and the entries relating thereto, the following shall be substituted, namely:—

“7404 00 24 ---- Bronze scrap, including the following:manganese kg. 5% -
bronze solids covered ISRI code word ‘Parch’;
High lead bronze solids and borings covered by
ISRI code word ‘Elias’
7404 00 25 ---- Copper nickel scrap, including the following: kg. 5% -”;

new cupro nickel clips and solids covered by

ISRI code word ‘Dandy’; cupro nickel solids

covered by ISRI code word ‘Daunt’; soldered

cupro-nickel solids covered by ISRI code word

‘Delta’; cupro nickel spinnings, turnings,

borings covered by ISRI codntral Goods and Services Tax Act so as to provide alternative composition scheme for supplier of services or mixed suppliers (not eligible for the earlier composition scheme) having an annual turnover in preceding financial year upto rupees fifty lakhs.

Clause 93 of the Bill seeks to amend section 22 of the Central Goods and Services Tax Act so as to provide for higher threshold exemption limit from rupees twenty lakhs to such amount not exceeding rupees forty lakhs in case of supplier who is engaged exclusively in the supply of goods.

Clause 94 of the Bill seeks to amend section 25 of the Central Goods and Services Tax Act so as to provide for mandatory Aadhaar submission or authentication for persons who intend to take or have taken registration under the said Act in such manner as may be notified by the Government on the recommendations of the Council.

Clause 95 of the Bill seeks to insert a new section 31A in 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.

Clause 100 of the Bill seeks to amend section 52 of the Central Goods and Services Tax Act so as to empower the Commissioner to extend the due date for furnishing of monthly and annual statement by the person collecting tax at source.

Clause 101 of the Bill seeks to insert a new section 53A in the Central Goods and Services Tax Act so as to provide for transfer of amount in the electronic cash ledger between the Centre and States as a consequence of the new facility given to the tax payer under section 49.

Clause 102 of the Bill seeks to amend section 54 of the Central Goods and Services Tax Act so as to empower the Central Government to disburse refund amount to the taxpayers in respect of refund of State taxes.

Clause 103 of the Bill seeks to amend clause (a) of section 95 of the Central Goods and Services Tax Act so as to include "the National Appellate Authority for Advance Ruling" in the definition of "advance ruling". It also seeks to insert clause (f) in section 95 of the Central Goods and Services Tax Act to define "National Appellate Authority".

Clause 104 of the Bill seeks to insert new sections 101A, 101B and 101C in the Central Goods and Services Tax Act.

The proposed new section 101A seeks to provide for constitution of the National Appellate Authority for Advance Ruling. It also provides for qualification, appointment, tenure, conditions of services and manner of removal of the President and Members of the National Appellate Authority.

The proposed new section 101B seeks to provide for filing of appeals and the procedure to be followed for hearing appeals against conflicting advance rulings pronounced on the same question by the Appellate Authorities of two or more States or Union territories or both under sub-section (1) of section 101 or sub-section (3) of section 101 of the Act.

The proposed new section 101C seeks to provide that the National Appellate Authority shall pass order within a period of ninety days from the date of filing of the appeal. It also provides that where the members differ on any point, it shall be decided by majority.

Clause 105 of the Bill seeks to amend section 102 of the Central Goods and Services Tax Act so as to bring the National Appellate Authority within the ambit of that section to empower it to rectify its advance ruling.

Clause 106 of the Bill seeks to amend section 103 of the Central Goods and Services Tax 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.

107

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 power to regulate its own procedure.

Clause 110 of the Bill seeks to amend section 168 of the word ‘Decoy&r) deemed to be the loss of a unit holder who held the unit on the 31st day of March, 2019
in respect of the investments made by him in the investment fund, in the same manner as
provided in sub-section (1); and 20
(ii) allowed to be carried forward by such unit holder for the remaining period calculated
from the year in which the loss had occurred for the first time taking that year as the first year
and shall be set off by him in accordance with the provisions of Chapter VI:
Provided that the loss so deemed under this sub-section shall not be available to the investment
fund on or after the 1st day of April, 2019.’. 25

In section 139 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2020,––

(a) in the sixth proviso, after the word, figures and letters “section 10BA”, the words, figures and
letters “ or section 54 or section 54B or section 54D or section 54EC or section 54F or section 54G
or section 54GA or section 54GB” shall be inserted; 30
(b) after the sixth proviso, and before Explanation 1 the following proviso shall be inserted, namely:––
“Provided also that a person referred to in clause (b), who is not required to furnish a return
under this sub-section, and who during the previous year––
(i) has deposited an amount or aggregate of the amounts exceeding one crore rupees in
one or more current accounts maintained with a banking company or a co-operative bank; or 35
(ii) has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh
rupees for himself or any other person for travel to a foreign country; or
(iii) has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh
rupees towards consumption of electricity; or
(iv) fulfils such other conditions as may be prescribed, 40
shall furnish a return of his income on or before the due date in such form and verified in such
manner and setting forth such other particulars, as may be prescribed.”;
(c) after Explanation 5, the following Explanation shall be inserted, namely:––
‘Explanation 6.—For the purposes of this sub-section,—
(a) “banking company” shall have the meaning assigned to it in clause (i) of the Explanation 45
to section 269SS;

(b) “co-operative bank” shall have the meaning assigned to it in clause (ii) of the Explanation to section 269SS.’.

 

 

 


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In section 139A of the Income-tax Act, with effect from the 1st day of September, 2019,––

(i) in sub-section (1), in clause (vi), for the words, brackets and figure “on behalf of the person referred to in clause (v)”, the following shall be substituted, namely:––

“on behalf of the person referred to in clause (v); or

(vii) who intends to enter into such transaction as may be prescribed by the Board in the interest of revenue,”;

(ii) after sub-section (5D), the following sub-section shall be inserted, namely:––

“(5E) 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,––

(a) has not been allotted a permanent account number but possesses the Aadhaar number, may furnish or intimate or quote his Aadhaar number in lieu of the permanent account number, and such person shall be allotted a permanent account number in such manner as may be prescribed;

(b) 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 the permanent account number.”;

(iii) in sub-section (6), for the words “the General Index Register Number”, the words “the General Index Register Number or the Aadhaar number, as the case may be,” shall be substituted;

(iv) after sub-section (6), the following sub-sections shall be inserted, namely:––

Amendment of section 139A.

“(6A) Every person entering into such transaction, as may be prescribed, shall quote his permanent account number or Aadhaar number, as the case may be, in the documents pertaining to such transactions and also authenticate such permanent account number or Aadhaar number, in such manner as may be prescribed.

(6B) Every person receiving any document relating to the transactions referred to in

sub-section (6A), shall ensure that permanent account number or Aadhaar number, as the case may be, has been duly quoted in such document and also ensure that such permanent account number or Aadhaar number is so authenticated.”;

(v) in sub-section (8), in clauses (b) and (f), for the words “the General Index Register Number”, the words “the General Index Register Number or the Aadhaar number, as the case may be,” shall

30 be substituted;

(vi) in the Explanation, for clause (a), the following clauses shall be substituted, namely:––

‘(a) “Aadhaar number” shall have the meaning assigned to it in clause (a) of section 2 of the

18 of 2016. Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016;

(aa) “Assessing Officer” includes an income-tax authority who is assigned the duty of allotting

35 permanent account numbers;

(ab) “authentication” means the process bsquo;;

in Chapter 75, in heading 7503, in the entry in column (2) occurring against tariff item 7503 00 10, the portion beginning with the words “new cupro nickel clips” and ending with the words “code word ‘Depth’;” shall be omitted;
in Chapter 76, in heading 7602, in the entry in column (2) occurring against tariff item 7602 00 10,-

the words and letters “Sweated aluminium covered by ISRI code word ‘Throb’;” shall be omitted;

the words and letters “Aluminium drosses, spatterns, spellings, skimmings and sweepings covered by ISRI code word ‘Thirl’;” shall be omitted;
in Chapter 78, in heading 7802, in the entry in column (2) occurring against tariff item 7802 00 10,—

the words and letters “lead covered copper cable covered by ISRI code word ‘Relay’;” shall be omitted;

the portion beginning with the words “Lead battery plates” and ending with the words “code word ‘Rents’;” shall be omitted;
in Chapter 79, in heading 7902, in the entry in column (2) occurring against tariff item 7902 00 10,—

the words and letters “Zinc die cast slabs or pigs covered by ISRI code word ‘Scull’;” shall be omitted;

the portion beginning with the words “Hot dip galvanizers” and ending with the words “corrosion or ‘oxidation’;” shall be omitted;

88

in Chapter 85,—

in heading 8517,––

for tariff items 8517 12 10 and 8517 12 90 and entries relating thereto, the following shall be substituted, namely:— “- - - Telephones for cellular networks:

8517 12 11 - - - - Mobile phones, other than push button type u 20% -
8517 12 19 - - - - Mobile phones, push button type u 20% -
8517 12 90 - - - Telephones for other wireless networks u 20% -”;

tariff item 8517 69 30 and the entries relating thereto, shall be omitted;

in heading 8525, for sub-heading 8525 60 and tariff items 8525 60 11 to 8525 60 99 and the entries relating thereto, the following shall be substituted, namely:—

“8525 60 00 - Transmission apparatus incorporating u Free -”;
reception apparatus

in heading 8527, for sub-heading 8527 99 and tariff items 8527 99 11 to 8527 99 90 and the entries relating thereto, the following shall be substituted, namely:—

“8527 99 00 - - Other u 10% -”;

in Chapter 90, in heading 9018, for tariff items 9018 90 29 to 9018 90 33 and entries relating thereto, the following shall be substituted, namely:—

“9018 90 29 ---- Other u 10% -
- - - Artificial kidney (dialysis) apparatus, blood
transfusion apparatus:
9018 90 31 - - - - Artificial kidney (dialysis) apparatus u 10% -
9018 90 32 ---- Blood transfusion apparatus u 10% -”.

 

 

 


5

 

 


10

 

 


15

 

 

20


STATEMENT OF OBJECTS AND REASONS

The object of the Bill is to give effect to the financial proposals of the Central Government for the financial year 2019-20. The notes on clauses explain the various provisions contained in the Bill.

 

 

NIRMALA SITHARAMAN.


NEW DELHI;

The 26th June, 2019.

 

 

—————

 

 

 

PRESIDENT’S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA

[Copy of letter No.F.2(16)- B(D)/2019, dated the 26th June, 2019 from Smt. Nirmala Sitharaman, Minister of Finance, to the Secretary-General, Lok Sabha.]

The President, having been informed of the subject matter of the proposed Bill, recommends, under clauses (1) and (3) of article 117, read with clause (1) of article 274, of the Constitution of India, the introduction of the Finance (No.2) Bill, 2019 to the Lok Sabha and also recommends to the Lok Sabha the consideration of the Bill.


The Bill will be introduced in the Lok Sabha immediately after the presentation of the Budget on the 5th July, 2019.

 

 

 

 

 

 


89

90

Notes on clauses

Income-tax

Clause 2, read with the First Schedule to the Bill, specifies the rates at which income-tax is to be levied on income chargeable to tax for the assessment year 2018-2019. Further, it lays down the rates at which tax is to be deducted at source during the financial year 2019-2020 from income other than “Salaries” subject to such deductions under the Income-tax Act; and the rates at which “advance tax” is to be paid, tax is to be deducted at source from, or paid on, income chargeable under the head “Salaries” and tax is to be calculated and charged in special cases for the financial year 2019-2020.

Rates of income-tax for the assessment year 2019-2020

Part I of the First Schedule to the Bill specifies the rates at which income is liable to tax for the assessment year 2019-2020. These rates are the same as those specified in Part III of the First Schedule to the Finance Act, 2018, for the purposes of deduction of tax at source from “Salaries”, computation of “advance tax” and charging of income-tax in special cases during the financial year 2018-2019.

Rates for deduction of tax at source during the financial year 2019-2020 from income other than “Salaries”

Rates for deduction of tax at source from “Salaries”, e Central Goods and Services Tax Act to include sub-section ( 1) of section 44 and sub-sections (4) and (5) of section 52, within the ambit of that section so that the Commissioner or Joint Secretary shall exercise the powers specified in the said sections with the approval of the Board.

Clause 111 of the Bill seeks to amend section 171 of the Central Goods and Services Tax Act to insert new sub-section (2A) therein so as to empower the Authority specified under sub-section (2) thereof to impose penalty equivalent to ten per cent. of the profiteered amount.

Clause 112 of the Bill seeks to amend the notification number G.S.R. 674(E), dated the 1st July, 2017, issued under sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017,so as to give retrospective exemption to "Uranium Ore Concentrate" from the levy of central tax from 1st July, 2017 to 14th November, 2017.

Integrated Goods and Services Tax

Clause 113 of the Bill seeks to insert a new section 17A in the Integrated Goods and Services Tax Act so as to provide for transfer of amount in the electronic cash ledger between the Centre and the States as a consequence new facility given to the tax payers under section 49 of the Central Goods and Service Tax Act.

Clause 114 of the Bill seeks to amend the notification number G.S.R. 667(E), dated the 1st July, 2017, issued under sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017,so as to give retrospective exemption to "Uranium Ore Concentrate" from the levy of integrated tax from 1st July, 2017 to 14th November, 2017.

Union Territory Goods and Services Tax

Clause 115 of the Bill seeks to amend the notification number G.S.R. 711(E), dated the 1st July, 2017, issued under sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017,so as to give retrospective exemption to "Uranium Ore Concentrate" from the levy of Union territory tax from 1st July, 2017 to 14th November, 2017.

Service Tax

Clause 116 of the Bill seeks to provide retrospective exemption from service tax on service by way of grant of liquor licence by the State Government, during the period from the 1st day of April, 2016 up to 30th day of June, 2017.

Clause 117 of the Bill seeks to provide retrospective exemption from service 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. The Scheme shall be enforced by the Central Government from a date to be notified. It provides that eligible persons shall declare the tax dues and pay the same in accordance with the provisions of the Scheme. It further provides for certain immunities including penalty, interest or any other proceedings under the Central Excise Act, 1944 or Chapter V of the Finance Act, 1944 to those persons who pay the declared tax dues.

Miscellaneous

Clauses 135 to 142 of the Bill seek to amend certain provisions of the Reserve Bank of India Act, 1934.

It is proposed to amend section 45-IA of the Act so as to enhance the existing amounts of the net owned fund of a non-banking financial company.

It is further proposed to insert new sections 45-ID and 45-IE in the Act so as to provide power to the Reserve Bank to remove directors of a non-banking financial company other than Government Company from office, and supersession of Board of Directors of a non-banking financial company, on certain grounds.

It is also proposed to insert a new section 45MAA in the Act so as to provide power to Reserve Bank to take action against auditors if any auditor fails to comply with any direction given or order made by the Reserve Bank under section 45MA.

It is also proposed to insert a new section 45MBA in the Act relating to resolution of a non-banking financial company.

It is also proposed to insert a new section 45NAA in the Act relating to power of the Reserve Bank in respect of group company.

It is also proposed to amend section 58B of the Act so as to enhance the existing amounts of penalty.

It is also proposed to amend section 58G of the Act so as to enhance the existing penalties of five thousand rupees, five lakh rupees and twenty-five thousand rupees to twenty-five thousand rupees, ten lakh rupees and one lakh rupees respectively.

Clause 143 of the Bill seeks to amend section 6 of the Insurance Act, 1938 relating to requirement as to capital.

It is proposed to insert a new sub-section (3) in the said section so as to restrict the foreign company engaging in re-insurance business through a branch in an International Financial Services Centre as specified in sub-section (1) of section 18 of the Special Economic Zones Act, 2005 for registration unless it has net owned funds of not less than rupees one thousand crore.

This amendment will take effect retrospectively from 1st April, 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.

108

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 sub-section (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.

It is proposed to transfer regulation of such housing finance institutions from the National Housing Bank to the Reserve Bank of India and for the said purpose, it is proposed to amend certain provisions of the said Act.

Clause 153 of the Bill seeks to amend section 29A of the said Act relating to requirement of registration and net owned fund.

Clause 154 of the Bill seeks to amend section 29B of the said Act relating to maintenance of percentage of assets.

Clause 155 of the Bill seeks to amend section 29C of the said Act relating to reserve fund.

Clause 156 of the Bill seeks to substitute section 30 of the said Act relating to Reserve Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money.

Clause 157 of the Bill seeks to substitute section 30A of the said Act relating to power of Reserve Bank to determine policy and issue directions.

Clause 158 of the Bill seeks to substitute section 31 of the said Act relating to power of National Housing Bank to collect information from housing finance institutions as to deposits.

Clause 159 of the Bill seeks to substitute section 32 of the said Act relating to duty of housing finance institution to furnish statements, etc., under Chapter V.

Clause 160 of the Bill seeks to amend section 33 of the said Act relating to powers and duties of auditors.

Clause 161 of the Bill seeks to substitute section 33A of the said Act relating to power of Reserve Bank to prohibit acceptance and deposits and alienation of assets.

Clause 162 of the Bill seeks to amend section 33B of the said Act relating to power of National Housing Bank to file winding up petition.

Clause 163 of the Bill seeks to amend section 34 of the said Act relating to inspection.

Clause 164 of the Bill seeks to amend section 35 of the said Act relating to deposits not to be solicited by unauthorised persons.

Clause 165 of the Bill seeks to amend section 35A of the said Act relating to disclosure of information.

Clause 166 of the Bill seeks to substitute section 35B of the said Act relating to power of Reserve Bank to exempt housing finance institution.

Clause 167 of the Bill seeks to amend section 44 of the said Act relating to obligation as to fidelity and secrecy.

Clause 168 of the Bill seeks to amend section 46 of the Act to substitute Reserve Bank for national housing Bank throughout the Act.

Clause 169 of the Bill seeks to 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 effect retrospectively from 1st day of November, 2016.

Section 24 of the said Act provides that where the Initiating Officer is of the opinion that the person in possession of the property held benami may alienate the property during the period specified in the notice, he may, with the previous approval of the Approving Authority, by order in writing, attach provisionally the property in the manner as may be prescribed, for a period not exceeding ninety days from the date of issue of notice under sub-section (1) and Initiating Officer shall pass an order within a period of ninety days from the date of issue of notice under sub-section (1).

It is proposed to amend sub-section (3) of the said section so as to provide that instead of attaching the property for a period of ninety days from the date of notice, the said property may be attached for a period of ninety days from the last day of the month in which notice was issued.

It is further proposed to amend sub-section (4) of the said section so as to provide that instead of passing an order within a period of ninety days from the date of issue of notice under sub-section (1), the said order shall be passed from the last date of the month in which notice under sub-section (1) was issued.

It is also proposed to amend the said section so as to exclude the time on account of stay granted by any court from the period of time provided under sub-section (5) to refer the order passed under sub-section (4) within fifteen days from the date of attachment to the Adjudicating Authority and that if after exclusion of the period of stay if the remaining period is less than seven days, the remaining period shall be deemed to extend to seven days.

Sub-section (7) of section 26 of the said Act does not provide that in computing the period of one year for passing an order the period during which the proceeding is stayed by an order or injunction of any court shall be excluded.

It is proposed to amend the said sub-section so as to provide that in computing the period of one year for passing an order, the period during which the proceeding is stayed by an order or

109

injunction of any court is excluded. It is also proposed that if after exclusion of the period of stay if the remaining period is less than sixty days, the remaining period shall be deemed to extend to sixty days.

It is also proposed to insert new sections 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 of the entries certified by the authority having custody of the records or other documents under its signature and stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.

It is also proposed to amend section 55 of the said Act so as to provide that no prosecution shall be instituted against any person in respect of any offence under sections 3, 53 or section 54 without the previous sanction of the Board.

It is further proposed to insert an Explanation to the said section so as to define the expression "competent authority".

These amendments will take effect from 1st September, 2019.

Clauses 177 to 181 seek to amend the certain provisions fo the Securities Exchange Board of India Act, 1992.

It is proposed to amend section 14 of the said Act so as to restrict the accumulation of huge surplus funds with the Securities Exchange Board of India.

It is further proposed to amend section 15C of the said Act so as to provide that failure of any listed company or any person who is registered as an inermediary, to redress investors’ grievances after having been called upon the Board even through any electronic means and not necessarily in writing, may also amount to a penalty under the said section.

It is also proposed to amend section 15F of the said Act so as to provide monetary penalty for failure to issue contract notes in the form and in the manner specified by the stock exchange of which a registered stock broker is a member.

It is also proposed to insert a new section 15HAA so as to provide monetary penalty for alteration, destruction, mutilation, concealment or falsification of information, record, document (including electronic records), relating to a contravention of this Act, so as to impede, obstruct, or influence the investigation, inquiry, audit, inspection or proper administration of any matter within the juridiction of the Board. It also seeks to protect of electronic

database of the Board intermediaries regulated by the Board, under the Act.

Clause 182 of the Bill seeks to amend section 10 of the Central Road and Infrastructure Fund Act, 2000 relating to functions of the Central Government. It is proposed to amend clause (iv) of sub-section (1) of the said section for formulation of criteria for allocation of funds for development and maintenance of state road 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 185 of the Bill seeks to amend the Eighth Schedule to the Finance Act, 2002, sub-clause (a) thereof seeks to increase the rate of special additional duty of excise on motor spirit commonly known as petrol from rupees seven per litre to rupees ten per litre. Sub-clause (b ) thereof seeks to increase the rate of special additional duty of excise on high speed diesel oil from rupees one per litre to rupees four per litre.

Clause 186 of the Bill seeks to amend section 13 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 relating to tax exemption or benefit to continue to have effect.

Sub-section (1) of said section 13 of the aforesaid Act provide that notwithstanding anything contained in the Income-tax Act, 1961, or any other enactment for the time being in force relating to tax or income, profits or gains, no income -tax or any other tax shall be payable by the Administrator upto 31st March, 2019 in respect of any income, profits or gains derived, or any amount received in relation to the specified undertaking.

It is proposed to amend the said sub-section (1) so as to extend the income-tax exemption to the said undertaking from the period beginning on the 1st April, 2019 to the 31st March, 2021.

This amendment will take effect retrospectively from 1st April, 2019.

Clauses 187 to 192 of the Bill seek to amend certain provisions of the Prevention of Money-Laundering Act, 2002.

It is proposed to amend sub-clause (i) of clause (n) of sub-section (I) of section 2, to meet out the difficulties being faced out by the Securities and Exchange Board of India.

It is further proposed to amend sub-clause (ii) of clause (sa) of sub-section (I) of section 2, to meet out the difficulties being faced out by the Financial Intelligence Unit, India.

It is also proposed to amend section 12A so as to provide the reference of newly inserted section 12AA therein.

110

It is also proposed to insert a section 12AA of the said Act so as to provide for the provisions for enhance due diligence.

It is also proposed to amend section 15 of the said Act so as to provide the reference of newly inserted section 12AA therein.

It is also proposed to insert Section 72A to allow power to Central Government to constitute Inter Ministerial Co-ordination Committee that is responsible for coordination and cooperation across all relevant/competent authorities on implementation 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'' for the purposes of the said section.

These amendments will take effect from 1st September, 2019.

Clause 194 of the Bill seeks to amend the Payment and Settlement Systems Act, 2007 by insertion of a new section 10A relating to banks, etc. not to impose charge for using electronic modes of payment.

The proposed new section provides that notwithstanding anything contained in the said Act, no bank or system provider shall impose any charge, upon anyone, either directly or indirectly for using the electronic modes of payment prescribed under section 269SU of the Income-tax Act, 1961.

This amendment will take effect from 1st November, 2019.

Clauses 195 to 198 of the Bill seeks to amend certain provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Clause 195 of the Bill seeks to amend section 2 of the said Act.

The existing provisions of clause (2) of section 2 of the said Act, inter alia, provides that the "assessee" means a person who is resident in India within the meaning of section 6 of the Income-tax Act.

It is proposed to amend the aforementioned clause so as to provide that the "assessee" shall mean a person being a resident in India within the meaning of section 6 of the Income-tax Act, in the previous year, or a person being a non-resident or not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, in the previous year, who was resident in India either in the previous year to which the income referred to in section 4 relates to or in the previous year incomputation of “adv

 

Finance Bill 2019, Indian Union Budget 2019-20, 5th July,2019

BILL No. 55 OF 2019

 


THE FINANCE (NO.2) BILL, 2019

(AS INTRODUCED IN LOK SABHA)


THE FINANCE (NO.2) BILL, 2019

_________

ARRANGEMENT OF CLAUSES

__________

CHAPTER I

PRELIMINARY

CLAUSES

Short title and commencement.

CHAPTER II

RATES OF INCOME-TAX

Income-tax.

CHAPTER III

DIRECT TAXES

Income-tax

Amendment of section 2.

Amendment of section 9.

Amendment of section 9A.

Amendment of section 10.

Amendment of section 12AA.

Amendment of section 13A.

Amendment of section 35AD.

Amendment of section 40.

Amendment of section 40A.

Amendment of section 43.

Amendment of section 43B.

Amendment of section 43CA.

Amendment of section 43D.

Amendment of section 44AD.

Amendment of section 47.

Amendment of section 50C.

Amendment of section 50CA.

Amendment of section 54GB.

Amendment of section 56.

Substitution of section 79.

Amendment of section 80C.

Amendment of section 80CCD.

Insertion of new sections 80EEA and 80EEB.

Amendment of section 80-IBA.

Amendment of section 80JJAA.

Amendment of section 80LA.

(ii)

CLAUSES

Amendment of section 92CD.

Amendment of section 92CE.

Substitution of section 92D.

Amendment of section 111A.

Amendment of section 115A.

Amendment of section 115JB.

Amendment of section 115-O.

Amendment of section 115QA.

Amendment of section 115R.

Amendment of section 115UB.

Amendment of section 139.

Amendment of section 139A.

Amendment of section 139AA.

Amendment of section 140A.

Amendment of section 143.

Amendment of section 194DA.

Amendment of section 194-IA.

Insertion of new sections 194M and 194N.

Amendment of section 195.

Amendment of section 197.

Amendment of section 201.

Substitution of section 206A.

Amendment of section 228A.

Amendment of section 234A.

Amendment of section 234B.

Amendment of section 234C.

Amendment of section 239.

Amendment of section 246A.

Amendment of section 269SS.

Amendment of section 269ST.

Insertion of new section 269SU.

Amendment of section 269T.

Amendment of section 270A.

Insertion of new section 271DB.

Amendment of section 271FAA.

Amendment of section 272B.

Amendment of section 276CC.

Amendment of section 285BA.

Amendment of section 286.

Amendment of rule 68B of Second Schedule.

(iii)

 

CHAPTER IV

INDIRECT TAXES

Customs

CLAUSES

Amendment of section 41.

Insertion of New Chapter XIIB.

Amendment of section 103.

Amendment of section 104.

Amendment of section 110.

Amendment of section 110A.

Insertion of new section 114AB.

Amendment of section 117.

Amendment of section 125.

Amendment of section 135.

Amendment of section 149.

Amendment of section 157.

Amendment of section 158.

Amendment of notifications issued under sub-section (1) of section 25 of Customs Act, retrospectively.

Amendment of notification issued under sub-section (1) of section 25 of Customs Act and sub-section (12) of section 3 of Customs Tariff Act, retrospectively.

Retrospective effect of notification issued under sub-section (1) of section 25 of Customs Act and sub-section (12) of section 3 of Customs Tariff Act.


Customs Tariff


Amendment of section 9.

Amendment of section 9C.

Amendment of First Schedule.

Validation of modification in classification of certain goods leviable to anit-dumbing duty with retrospective effect.

Validation of modification in description of goods with retrospective effect.

 

Central Excise

90. Amendment of Fourth Schedule.


Central Goods and Services tax

Amendment of section 2.

Amendment of section 10.

Amendment of section 22.

Amendment of section 25.

Insertion of new section 31A.

(iv)

CLAUSES

Amendment of section 39.

Amendment of section 44.

Amendment of section 49.

Amendment of section50.

Amendment of section 52.

Insertion of new section 53A.

Amendment of section 54.

Amendment of section 95.

Insertion of new sections 101A, 101B and 101C.

Amendment of section 102.

Amendment of section 103.

Amendment of section104.

Amendment of section105.

Amendment of section 106.

Amendment of section 168.

Amendment of section 171.

Amendment of notification number G.S.R. 674(E) issued under sub-section (1) of section 11 of the Central Goods and Services Tax Act, retrospectively.


Integrated Goods and Services tax

Insertion of new section 17A.

Amendment of notification number G.S.R. 667(E) issued under sub-section (1) of section 6 of Integrated Goods and Services Tax Act, retrospectively.

 

Union Territory Goods and Services tax


Amendment of notification number G.S.R. 711(E) issued under sub-section (1) of section 8 of Union Territory Goods and Services Tax Act, retrospectively.

Service tax

Special provision for retrospective exemption from service tax on service by way of grant of liquor licence.

Special provisance tax” and charging of income-tax in special cases during the financial year 2019-2020

Part III of the First Schedule to the Bill specifies the rates at which income-tax is to be deducted at source from, or paid on, income under the head “Salaries” and also the rates at which “advance tax” is to be paid and income-tax is to be calculated or charged in special cases for the financial year 2019-2020.

Paragraph A of this Part specifies the rates of income-tax as under:—

(i) in the case of every individual [other than those specifically mentioned in sub-paras (ii) and (iii)] or Hindu undivided family or every 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, not being a case to which any other Paragraph of this Part applies:—

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 not exceed two crore rupees;

(c) at the rate of twenty five per cent. of such tax, where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds two crore rupees but does not exceed five crore rupees;

(d) at the rate of thirty seven per cent. of such tax, where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds five crore rupees;

(ii) every non-resident being a co-operative society or firm or local authority at the rate of twelve per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees,

(iii) every company other than a domestic company at the rate of two per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees but does not exceed ten crore rupees;

(iv) every company other than a domestic company at the rate of five per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds ten crore rupees.


Up to Rs. 2,50,000 Nil
Rs. 2,50,001 to Rs. 5,00,000 5 per cent.
Rs. 5,00,001 to Rs. 10,00,000 20 per cent.
Above Rs. 10,00,000 30 per cent.;

(ii) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than the age of eighty years at any time during the previous year:—

Up to Rs. 3,00,000 Nil
Rs. 3,00,001 to Rs. 5,00,000 5 per cent.
Rs. 5,00,001 to Rs. 10,00,000 20 per cent.
Above Rs. 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 Rs. 5,00,000 Nil
Rs. 5,00,001 to Rs. 10,00,000 20 per cent.
Above Rs. 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.

90

91

Paragraph B of this Part specifies the rates of income-tax in the case of every co-operative society. In such cases, the rates of tax will continue to be the same as those specified for assessment year 2019-2020. The surcharge in cases of co-operative societies, having income above one crore rupees shall be levied at the rate of twelve per cent. Marginal relief will be provided.

Paragraph C of this Part specifies the rate of income-tax in the case of every firm. In such cases, the rate of tax will continue to be the same as that specified for assessment year 2019-2020. The surcharge in cases of firms, having income above one crore rupees shall be levied at the rate of twelve per cent. Marginal relief will be provided.

Paragraph D of this Part specifies the rate of income-tax in the case of every local authority. In such cases, the rate of tax will continue to be the same as that specified for the assessment year 2019-2020. The surcharge in cases of local authorities, having income above one crore rupees shall be levied at the rate of twelve per cent. Marginal relief will be provided which the undisclosed asset located outside India is acquired.

It is further proposed to insert a proviso to provide that the previous year of acquisition of the asset shall be determined without giving effect to the provisions of clause (c) of section 72.

This amendment will take effect retrospectively from 1st July, 2015.

Clause 196 of the Bill seeks to amend section 10 of the said Act which, inter alia, provides for assessment or re-assessment under the said Act.

It is proposed to amend the provisions of sub-sections (3) and (4) of the said section so as to also include the terms "re-assess" and "reassessment" under the said sub-sections.

This amendment will take effect retrospectively from 1st July, 2015.

Clause 197 of the Bill seeks to amend section 17 of the said Act relating to powers of Commissioner (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 as the Scheme).

Sub-section (1) of section 187 of the said Act, inter alia, provides that the tax, surcharge and penalty in respect of the undisclosed income, shall be paid on or before a notified date.

It is proposed to insert a proviso in said sub-section to provide that where the amount of tax, surcharge and penalty, has not been paid within the due date notified under the said sub-section (1) of section 187, the Central Government may, by notification in the Official Gazette, specify the class of persons, who may, make the payment of such amount on or before such date as may be notified by the Central Government in the Official Gazette, along with the interest on such amount, at the rate of one per cent. for every month or part of a month comprised in the period commencing on the date immediately following the due date and ending on the date of such payment.

Section 191 of the said Act, inter alia, provides that any amount of tax, surcharge or penalty paid in pursuance of a declaration made under the Scheme shall not be refundable.

It is proposed to insert a proviso in the said section to provide that the Central Government may, by notification in the Official Gazette, specify the class of persons to whom the amount of tax, surcharge and penalty, paid in excess of the amount payable under the Scheme shall be refundable.

This amendment will take effect retrospectively from 1st June, 2016.

Clause 201 of the Bill seeks to amend the Sixth Schedule to the Finance Act, 2018, so as to increase the rate of road and infrastructure cess on motor spirit commonly known as petrol and high speed diesel oil , from rupees 8 per litre to rupees 10 per litre.

Clause 202 of the Bill seeks to repeal section 2 of the Finance Act, 2019.

MEMORANDUM REGARDING DELEGATED LEGISLATION

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.

It is proposed to amend clause (m) of sub-section (3) of the said section to provide that the amount shall be calculated in such manner as may be prescribed.

Clause 8 of the Bill seeks to amend section 13A of the Income-tax Act relating to special provision relating to the incomes of political parties.

It is proposed to amend clause (d) of the first proviso to the said section to provide that the donation referred to therein is also received through such other electronic mode as may be prescribed.

Clause 9 of the Bill seeks to amend section 35AD of the Income-tax Act relating to deduction in respect of expenditure on specified business.

The proposed amendment in clause (f) of sub-section (8) of the said section provides that besides payment through bank account the payment shall also be made through such other electronic mode as may be prescribed.

Clause 11 of the Bill seeks to amend section 40A of the Income-tax Act relating to expenses or payments not deductible in certain circumstances.

The proposed amendment empowers the Board to make rules to provide that payment made through such other electronic mode shall also be allowed as deduction.

Clause 12 of the Bill seeks to amend section 43 of the Income-tax Act relating to definitions of certain terms relevant to income from profits and gains of business or profession.

The proposed amendment seeks to empower the Board to make rules to provide that payment made through such electronic mode shall not be ignored for the purposes of determination of actual cost.

Clause 14 of the Bill seeks to amend section 43CA of the Income-tax Act relating to special provision for value of consideration for transfer of assets other than capital assets in certain cases.

The proposed amendment to sub-section (4) of the said section empowers the Board to make rules that the provision of sub-section (3) shall also apply in respect of those cases where the amount of consideration or a part thereof has been received by way of any electronic mode.

Clause 16 of the Bill seeks to amend section 44AD of the Income-tax Act relating to special provision for computing profits and gains of business on presumptive basis.

The proposed amemdment to the proviso to sub-section (1) of the said section empowers 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 percent or higher of the turnover received through any electronic mode.

Clause 18 of the Bill seeks to amend second proviso to sub-section (1) of section 50C, relating to special provision for full value of consideration in certain cases, so as to empower the Board to make rules to provide that the first proviso shall also apply in respect of those cases where the amount of consideration or a part thereof has been received by way of electronic mode as may be prescribed.

Clause 19 of the Bill seeks to amend section 50CA to insert a proviso to provide that the provision of the said section shall not apply to any consideration received or accruing as a result of such transfer by such class of persons referred to in the said section and such condition as may be prescribed.

Clause 21 of the Bill seeks to amend section 56 of the Income-tax Act relating to income from other sources.

It is proposed to amend the second proviso to sub-clause (b) of clause (x ) of sub-section (2) of the said section to empower the Board to make rules to provide other electronic mode referred to therein.

It is further proposed to insert a new clause (XI) in the proviso to the said clause (x) so as to provide that sum of money or any property received from such class of persons and subject to such conditions, as may be prescribed by rules shall not be the income of such persons.

Clause 27 of the Bill seeks to amend section 80JJAA of the Income-tax Act relating to deduction in respect of employment of new employees so as to provide in clause (b) of the first proviso to the Explanation to the said section so as to empower the Board to make rules to provide that deduction of an amount of additional employee cost shall be allowed if such emoluments are also paid through electronic mode.

Clause 31 of the Bill seeks to substitute section 92D of the Income-tax Act relating to maintenance and keeping of information and document by persons entering into an international transaction or specified domestic transaction.

Sub-section (1) of the said section empowers the Board to make rules for the manner of keeping and maintaining information and document.

It is further proposed to empower the Board under sub-section (2) of the said section to prescribe the period for which the said information and document shall be kept and maintained.

Clause 39 of the Bill seeks to amend section 139 of the Income-tax Act relating to return of income.

It is proposed to insert a new provisio in sub-section (1) which empowers the Board to prescribe by rules other conditions in addition to the conditions specified therein.

Clause 40 of the Bill seeks to amend section 139A of the Income-tax Act relating to permanent account number.

It is proposed to insert a new clause (vii) in sub-section (1) of the said section and to empower the Board to make rules to specify the transaction referred to therein.

It is further proposed to insert new sub-section (6A) to empower the Board to make rules to specify the category of transaction and to provide for the manner of authentication of Permanent Account number and Aadhaar number.

It is also proposed to insert new sub-section (6B) to empower the Board to provide for manner of authentication of permanent account number and Aadhaar number by the person referred to in sub-section (6A).

Clause 41 of the Bill seeks to amend section 139AA of the Income-tax Act relating to quoting of Aadhaar Number.

It is proposed to amend the proviso to sub-section (2) of the said section so as to provide that if a person fails to intimate the 111 112

Aadhaar number, the permanent account number allotted to such person shall be made inoperative after the notified date in the manner as may be prescribed by rules.

Clause 47 of the Bill seeks to amend section 195 of the Income-tax Act relating to other sums.

It is proposed to amend sub-section (2) of the said section so as to empower the Board to prescribe the form and manner of making application and the manner of determining the appropriate proportion of such sum chargeable.

It is further proposed to amend sub-section (7) of the said section to empower the Board to prescribe the form and manner of making application and the manner of determining the appropriate proportion of such sum chargeable to tax.

Clause 50 of the Bill seeks to substitute section 206A of the Income-tax Act relating to furnishing of quarterly return in respect of payment of interest to residents without deduction of tax.

Sub-section (1) of the said section provides that any banking company or co-operative society or public company referred to in the proviso to clause (i) of sub-section (3) of section 194A responsible for paying to a resident any income not exceeding forty thousand rupees, where the payer is a banking company or a co-operative society, and five thousand rupees in any other case by way of interest (other than interest on securities), shall 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 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 said section provides that the Board may, 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 income-tax authority or the authorised person referred to in sub-section (1).

Sub-section (3) of the said 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.

Clause 57 of the Bill seeks to amend section 269SS of the Income-tax Act relating to mode of taking or accepting certain loans, deposits and specified sum.

It is proposed to amend the said section so as to empower the Board to make rules to provide that the taking or accepting from any depositor of a loan or deposit or any specified sum equal to twenty thousand or more shall be allowed if such sum is received through any electronic mode.

Clause 58 of the Bill seeks to amend section 269ST of the Income-tax Act relating to mode of undertaking transactions.

It is proposed to amend the said section so as to empower the Board to make rules to provide that the receipt of an amount equal to two lakh rupees or more in aggregate from a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion from a person shall also be allowed if such amount is received through any electronic mode.

Clause 60 of the Bill seeks to amend section 269T of the Income-Tax Act relating to mode of repayment of certain loans or deposits.

It is proposed to amend the said section so as to empower the Board to provide by rules that the repayment of any loan or deposit

made with or any specified advance received by a banking company or a co-operative bank and any other company or co-operative society and any firm or other person in an amount equal to twenty thousand or more shall also be allowed if such repayment is made through electronic mode.

Clause 66 of the Bill seeks to amend section 285BA of the Income-tax Act relating to obligation to furnish statement of 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 presribed, shall also be required to furnish a statement under the said section.

Clause 80 of the Bill seeks to amend sub-section (2) of the section 157 of the Customs Act, so as to insert new clauses (ka) and (n) therein. The said new clauses seek to empower the Board to make regulations regarding ––

the manner of authentication and the time limit for such authentication, the manner of submitting such documents or information and the time limit for such submission, the form and the manner of furnishing alternative means of identification and time limit for furnishing such identification, person or class of persons to be exempted and the conditions subject to which suspension may be made, under Chapter XIIB;

the form and the manner, the time limit and the restrictions and conditions and amendment of any document under section 149.

Clause 92 of the Bill seeks to amend section 10 of the Central Goods and Services Tax Act. Sub-clause (c) of the said clause seeks to insert new sub-section (2A) therein which empowers the Government on the recommendations of the Council to prescribe the rate not exceeding three per cent. of the turnover in State or turnover in Union territory for the purpose of calculating the amount of tax under the said sub-section.

Clause 93 of the Bill seeks to amend section 22 of the Central Goods and Services Tax Act, so as to insert a third proviso which empowers the Government, at the request of a State and on the recommendations of the Council, to enhance the aggregate turnover from twenty lakh rupees to a higher amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods and subject to certain conditions and limitations as may be specified in the notification.

Clause 94 of the Bill seeks to amend section 25 of the Central Goods and Services Tax Act, so as to insert new sub-sections (6A), (6B), (6C) and (6D) therein. The said sub-section (6A) empowers the Government to make rules on the recommendations of the Council to provide for the form and manner and the time within which a registered person shall undergo authentication or furnish proof of possession of Aadhaar number and in case such person is not assigned Aadhaar number, then the manner in which an alternate and viable means of identification may be offered to such person.

Clause 95 of the Bill seeks to insert a new section 31A in the Central Goods and Services Tax Act, which empowers the Government on the recommendations of the Council to make rules to provide for a class of registered person who shall provide prescribe mode of electronic payment to the recipient of the supply of goods or services or both and give option to the recipient to make payment in such mode, in the manner and subject to the conditions and restrictions as may be provided in such rules.

113

Clause 96 of the Bill seeks to amend section 39 of the Central Goods and Services Tax Act, so as to substitute sub-sections (1),

and (7) of said section to provide for a new return system and empower the Government to make rules regarding the particulars to be furnished in the return, the form, manner and time within which the return may be filed.

Clause 98 of the Bill seeks to insert new sub-sections (10) and

in section 49 of the Central Goods and Services Tax Act, which empowers the Government to make rules to provide for the form, manner, conditions and restrictions for a registered person to transfer on the common portal any amount of tax, interest, penalty, fee or any amount available in the electronic cash ledger under the said Act to the electronic cash ledger for integrated tax, Central tax, State tax, Union territory tax on cess, and such transfer shall be deemed to be a refund.

Clause 101 of the Bill seeks to insert a new section 53A in the Central Goods and Services Tax Act, which empowers the Government to transfer to the State tax account or Union territory tax account an amount equal to the amount transferred from the electronic cash ledger in the manner and within the time provided by the rules.

Clause 102 of the Bill seeks to insert a new sub-section (8A) in section 54 of the Central Goods and Services Tax Act to empower the Government to disburse the refund of the State tax in the manner provided by the rules.

Clause 104 of the Bill seeks to insert new sections 101A, 101B and 101C in the Central Goods and Services Tax Act, to provide by rules ––

the manner of appointment of Technical members (Centre) and Technical members (State) of the National Appellate Authority and composition of Selection Committee for such appointment;

the salary and allowances and other terms and conditions of service of President and members of the National Appellate Authority;

the form of appeal, the fees and manner of verification of such appeal.

Clause 113 of the Bill seeks to insert a new section 17A in the Integrated Goods and Services Tax Act which empowers the Government to transfer to the State tax account or Union territory tax account an amount equal to the amount transferred from the electronic cash ledger in the manner and within the time provided by rules.

Clauses 119 to 134 of the Bill provide for Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. Clause 131 thereof empowers the Central Government to make rules to provide for all or any of the following:––

the form in which a declaration may be made and the manner in which such declaration may be verified;

the manner of constitution of the designated committee and its rules of procedure and functioning;

the form and manner of estimation of amount payable by the declarant and the procedure relating thereto;

the form and manner of making the payment by the declarant and the intimation regarding the withdrawal of appeal;

the form and manner of the discharge certificate which may be granted to the declarant;

the manner in which the instructions may be issued and published;

any other matter which is to, or may be, prescribed, or in respect of which provision is to be made, by rules.

Clause 189 of the Bill seeks to insert a new section 12AA relating to enhanced due diligence, in the Prevention of Money-Laundering Act, 2002.

The said section empowers the Central Government to make rules that every reporting entity shall, prior to the commencement of each specified transaction,--

(a) authenticate the identity of the clients undertaking such specified transaction in such manner and subject to such conditions as may be prescribed;

(b) take additional steps to examine the ownership and financial position, including sources of funds of the client, in such manner as may be prescribed;

(c) take additional steps as may be prescribed to record the purpose behind conducting the specified transaction and the intended nature of the relationship between the transaction parties;

(d) Where any specified transaction or series of specified transactions undertaken by a client is considered suspicious or likely to involve proceeds of crime, the reporting entity shall increase the future monitoring of the business relationship with the client, including greater scrutiny or transactions in such manner as may be prescribed.

The matters in respect of which rules or regulations may be made or notifications or order may be issued in accordance with the provisions of the Bill are matters of procedure and detail and it is not practicable to provide for them in the Bill itself.

The delegation of legislative power is, therefore, of a normal character.

LOK SABHA 

A BILL to give effect to the financial proposals of the Central Government for the financial year 2019-2020.  

(Smt. Nirmala Sitharaman,

Minister of Finance.)

 

 

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emorandum or articles of association, on the removal of a director from office under this
section, such director shall not be entitled to claim any compensation for the loss or termination from 25
office.
45-IE. (1) Where the Bank is satisfied that in the public interest or to prevent the affairs of a
non-banking financial company being conducted in a manner detrimental to the interest of the
depositors or creditors, or of the non-banking financial company (other than Government Company),
or for securing the proper management of such company or for financial stability, it is necessary
so to do, the Bank may, for reasons to be recorded in writing, by order, supersede the Board of 30
Directors of such company for a period not exceeding five years as may be specified in the order,
which may be extended from time to time, so, however, that the total period shall not exceed five
years.
(2) The Bank may, on supersession of the Board of Directors of the non-banking financial company
under sub-section (1), appoint a suitable person as the Administrator for such period as it may 35
determine.
(3) The Bank may issue such directions to the Administrator as it may deem appropriate and the
Administrator shall be bound to follow such directions.
(4) Upon making the order of supersession of the Board of Directors of a non-banking financial 40
company,––
(a) the chairman, managing director and other directors shall from the date of supersession of
the Board of Directors vacate their offices;
(b) all the powers, functions and duties, which may, by or under the provisions of this Act or
any other law for the time being in force, be exercised and discharged by or on behalf of the
Board of Directors of such non-banking financial company or by a resolution passed in general 45
meeting of such non-banking financial company, shall, until the Board of Directors of such company
is reconstituted, be exercised and discharged by the Administrator referred to in sub-section (2).
(5) (a) The Bank may constitute a committee consisting of three or more members who have
experience in law, finance, banking, administration or accountancy to assist the Administrator in 50
discharge of his duties.

(b) The committee shall meet at such times and places and observe such rules of procedure as

may be specified by the Bank.
(6) The salary and allowances payable to the Administrator and the members of the committee
constituted by the Bank shall be such as may be specified by the Bank and be paid by the concerned
non-banking financial company. 55

 

 


5

43

(7) On or before the expiration of the period of supersession of the Board of Directors as specified in the order issued under sub-section (1), the Administrator of the non-banking financial company shall facilitate reconstitution of the Board of Directors of the non-banking financial company.

(8) Notwithstanding anything contained in any other law for the time being in force or in any contract, no person shall be entitled to claim any compensation for the loss or termination of his office.

(9) The Administrator referred to in sub-section (2) shall vacate office immediately after the Board of Directors of the non-banking financial company has been reconstituted.”.

138. After section 45MA of the principal Act, the following section shall be inserted, namely:— Insertion of

new section

45MAA.

10

‘‘45MAA. Where any auditor fails to comply with any direction given or order made by the Bank under section 45MA, the Bank, may, if satisfied, remove or debar the auditor from exercising the duties as auditor of any of the Bank regulated entities for a maximum period of three years, at a time.”.

After section 45MB of the principal Act, the following section shall be inserted, namely:—

Power to take action against auditors.

Insertion of new section 45MBA.

15

 

 

20

‘45MBA. (1) Without prejudice to any other provision of this Act or any other law for the time being in force, the Bank may, if it is satisfied, upon an inspection of the Books of a non-banking financial company that it is in the public interest or in the interest of financial stability so to do for enabling the continuance of the activities critical to the functioning of the financial system, frame schemes which may provide for any one or more of the following, namely:––

(a) amalgamation with any other non-banking institution;

(b) reconstruction of the non-banking financial company;

Resolution of non-banking financial company.

(c) splitting the non-banking financial company into different units or institutions and vesting viable and non-viable businesses in separate units or institutions to preserve the continuity of the activities of that non-banking financial company that are critical to the functioning of the financial
25 system and for such purpose establish institutions called “Bridge Institutions”.

Explanation.––For the purposes of this sub-section, “Bridge Institutions” mean temporary institutional arrangement made under the scheme referred to in this sub-section, to preserve the continuity of the activities of a non-banking financial company that are critical to the functioning of the financial system.

(2) Without prejudice to the generality of the foregoing provisions, the scheme referred to in sub-section (1) may provide for––

(a) reduction of the pay and allowances of the chief executive officer, managing director, chairman or any officer in the senior management of the non-banking financial company;

(b) cancellation of all or some of the shares of the non-banking financial company held by the

chief executive officer, managing director, chairman or any officer in the senior management of the non-banking financial company or their relatives;

(c) sale of any of the assets of the non-banking financial company.

(3) The chief executive officer, managing director, chairman or any officer in the senior management of the non-banking financial company whose pay and allowances are reduced or the shareholders
whose shares are cancelled under the scheme shall not be entitled to any compensation.’.

After section 45NA of the principal Act, the following section shall be inserted, namely:—

“45NAA. (1) The Bank may, at any time, direct a non-banking financial company to annex to its financial statements or furnish separately, within such time and at such intervals as may be specified by the Bank, such statements and information relating to the business or affairs of any group company
of the non-banking financial company as the Bank may consider necessary or expedient to obtain for the purposes of this Act.

18 of 2013. (2) Notwithstanding anything to the contrary contained in the Companies Act, 2013, the Bank
may, at any time, cause an inspection or audit to be made of any group company of a non-banking

 

 

 

 

 

 

 

 

 

 

 

 

 


Insertion of new section 45NAA.

Power in respect

of group
companies.

44

financial company and its books of account.

Explanation.––For the purposes of this section,––

(a) “group company” shall mean an arrangement involving two or more entities related to each other through any of the following relationships, namely:––

(i) subsidiary— parent (as may be notified by the Bank in accordance with Accounting Standards);

(ii) joint venture (as may be notified by the Bank in accordance with Accounting Standards);

(iii) associate (as may be notified by the Bank in accordance with Accounting Standards);

(iv ) promoter-promotee (under the Securities and Exchange Board of India Act, 1992 or the rules or regulations made thereunder for listed companies);

(v) related party;

(vi) common brand name (that is usage of a registered brand name of an entity by another entity for business purposes); and

 

 

5

 

 

15 of 1992.
10

(vii) investment in equity shares of twenty per cent. and above in the entity;
(b) “Accounting Standards” means the Accounting Standards notified by the Central 15
Government under section 133, read with section 469 of the Companies Act, 2013 and sub-
section (1) of section 210A of the Companies Act, 1956.”.
Amendment 141. In section 58B of the principal Act,––
of section
58B. (i) in sub-section (2), for the words “two thousand rupees” and “one hundred rupees”, the words 20
“one lakh rupees” and “five thousand rupees” shall respectively be substituted;
(ii) in sub-section (4A), for the words “five lakh rupees”, the words “twenty-five lakh rupees” shall
be substituted;
(iii) in sub-section (4AA), for the words “five thousand rupees”, the words “ten lakh rupees” shall
be substituted;
(iv) in sub-section (4AAA), for the words “rupees fifty”, the words “five thousand rupees” shall be 25
substituted;
(v) in sub-section (5),––
(A) in clause (a), for the words “any deposit”, the words “any deposit without being authorised
so to do or” shall be substituted;
(B) in clause (b), for the word, figures and letters “section 45NA”, the word, figures and letter 30
“section 45J” shall be substituted;
(vi) in sub-section (6), for the words “two thousand rupees” and “one hundred rupees”, the words
“one lakh rupees” and “ten thousand rupees” shall respectively be substituted.
Amendment 142. In section 58G of the principal Act, in sub-section (1),—
of section (A) in clause (a) for the words ‘‘five thousand’’, the words ‘‘twenty-five thousand ’’ shall be
58G. 35
substituted;

(B) in clause (b) for the words ‘‘five lakh’’ and ‘‘twenty-five thousand’’, the words ‘‘ten lakh’’ and ‘‘one lakh’’ respectively shall be substituted.

 

18 of 2013.

1 of 1956.

 

 

Amendment of Act 4 of 1938.


PART II

AMENDMENT TO THE INSURANCE ACT, 1938

In the Insurance Act, 1938, in section 6, after sub-section (2), the following sub-section shall be inserted, namely:––

“(3) No insurer, being a foreign company engaged in re-insurance business through a branch established in an International Financial Services Centre referred to in sub-section (1) of section 18 of the Special Economic Zones Act, 2005, shall be registered unless it has net owned funds of not less than rupees one thousand crore.”.

 


40

 

 

28 of 2005.

45

PART III

AMENDMENTSTOTHESECURITIESCONTRACTS (REGULATION)ACT, 1956

The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

145. In the Securities Contracts (Regulation) Act, 1956, in section 23A, in clause (a), for the words “report to a recognised stock exchange, fails to furnish the same within the time specified therefor in the listing agreement or conditions or bye-laws of the recognised stock exchange or who furnishes”, the words “report to a recognised stock exchange or to the Board, fails to furnish the same within the

time specified therefor in the listing agreement or conditions or bye-laws of the recognised stock

exchange or the Act or rules made thereunder, or who furnishes” shall be substituted.

PART IV

Commencement of this Part.

Amendment of Act 42 of 1956.

AMENDMENTS TO THE BANKING COMPANIES (ACQUISITION

AND TRANSFER OF UNDERTAKINGS) ACT, 1970

 

 

 

 

 

 


40 of 1980.

The provisions of this Part shall come into force on such date as the Central Government may, 15 by notification in the Official Gazette, appoint.

In the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, in section 9, in sub-section (3), for clause (a), the following clause shall be substituted, namely:—

‘(a) not more than five whole-time directors to be appointed by the Central Government after
20 consultation with the Reserve Bank:

Provided that the Central Government, may, after consultation with the Reserve Bank, by notification published in the Official Gazette, post a whole-time director so appointed to any other corresponding new bank.

Explanation.—For the purposes of this clause, the expression “corresponding new bank” shall

include a “corresponding new bank” as defined in clause (b) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980;’.

PART V

Commencement of this Part.

Amendment of Act 5 of 1970.

AMENDMENTS TO THE GENERAL INSURANCE BUSINESS
(NATIONALISATION) ACT, 1972
30 148. In the General Insurance Business (Nationalisation) Act, 1972, in section 16, in sub-section Amendment of
(2), for the words “only four companies”, the words “up to four companies” shall be substituted. Act 57 of 1972.

PART VI

AMENDMENTS TO THE BANKING COMPANIES

(ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1980

 

 

 

 

 

 

5 of 1970.

149. The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

In the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, in section 9, in sub-section (3), for clause (a), the following clause shall be substituted, namely:—

‘(a) not more than five whole-time directors to be appointed by the Central Government after
40 consultation with the Reserve Bank:

Provided that the Central Government, may, after consultation with the Reserve Bank, by notification published in the Official Gazette, post a whole-time director so appointed to any other corresponding new bank.

Explanation.— For the purposes of this clause, the expression “corresponding new bank” shall

include a “corresponding new bank” as defined in clause (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970;’.

PART VII

Commencement of this Part.

Amendment of Act 40 of 1980.

AMENDMENTS TO THE NATIONAL HOUSING BANK ACT, 1987

 

53 of 1987.

The provisions of this Part shall come into force on such date as the Central Government may, 50 by notification in the Official Gazette, appoint.

In the National Housing Bank Act, 1987 (hereafter in this Part referred to as the principal Act), in Chapter V, for the heading, the following heading shall be substituted, namely:—

“PROVISIONS RELATING TO HOUSING FINANCE INSTITUTIONS”

In section 29A of the principal Act,—

55 (a) for sub-sections (1) and (2), the following sub-sections shall be substituted, namely:—

“(1) Notwithstanding anything contained in this Chapter or in any other law for the time being in force, no housing finance institution which is a company shall commence housing finance as its principal business or carry on the business of housing finance as its principal business without—

Commencement of this Part.

Substitution of heading of Chapter V.

Amendment of section 29A.

46
(a) obtaining a certificate of registration issued under this Chapter; and
(b) having the net owned fund of ten crore rupees or such other higher amount, as the
Reserve Bank may, by notification, specify.
(2) Every housing finance institution which is a company shall make an application for
registration to the Reserve Bank in such form as may be specified by the Reserve Bank: 5

Provided that an application made by a housing finance institution which is a company to the National Housing Bank and pending for consideration with the National Housing Bank as on the date of commencement of the provisions of Part VII of Chapter VI of the Finance (No.2) Act, 2019, shall stand transferred to the Reserve Bank and thereupon the application shall be deemed
to have been made under the provisions of this sub-section and shall be dealt with accordingly: 10

Provided further that the provisions of this sub-section shall not apply to the housing finance
institution which is a company and having a valid registration certificate granted under sub-section
(5) on the date of commencement of the provisions of Part VII of Chapter VI of the Finance (No.2)
Act, 2019, and such housing finance institution shall be deemed to have been granted a certificate 15
of registration under the provision of this Act.”;

(b) sub-section (3) shall be omitted;

(c) in sub-section (4),—

(i) for the words “National Housing Bank” at both the places where they occur, the words “Reserve Bank” shall be substituted;

(ii) after clause (g), the following proviso shall be inserted, namely:––

“Provided that the Reserve Bank may, wherever it considers necessary so to do, require the National Housing Bank to inspect the books of such housing finance institution and submit a report to the Reserve Bank for the purpose of considering the application.”;

(d) in sub-section (5), for the words “National Housing Bank”, the words “Reserve Bank” shall be substituted;

(e) in sub-section (6),—

(i) in the opening portion, for the words “National Housing Bank”, the words “Reserve Bank” shall be substituted;

20

 

 

25

(ii) in clause (iv), for the words “National Housing Bank” wherever they occur, the words “Reserve 30
Bank or the National Housing Bank” shall be substituted;
(iii) in the first proviso,—
(A) for the words “housing finance institution” at both the places where they occur, the
words “housing finance institution which is a company” shall be substituted;
(B) for the words “National Housing Bank” at both the places where they occur, the words 35
“Reserve Bank” shall be substituted;
(f) in sub-section (7),––
(i) for the words “National Housing Bank”, the words “Reserve Bank” shall be substituted;
(ii) in the Explanation,––
(A) in clause (I), in sub-clause (b), in item (1), for sub-item (iii), the following sub-item shall 40
be substituted, namely:—
“(iii) all other housing finance companies; and”;
(B) for clause (II), the following clause shall be substituted, namely:––
‘(II) the expressions “subsidiaries” and “companies in the same group” shall have the
meanings respectively assigned to them in the Companies Act, 2013: 18 of 2013.
Provided that the National Housing Bank shall, in consultation with the Reserve Bank, 45
specify the companies to be deemed to be in the same group.’.
Amendment 154. In section 29B of the principal Act,—
of section (i) for the words “housing finance institution” wherever they occur, the words “housing finance
29B.
institution which is a company” shall be substituted;

47

(ii) in sub-section (1), for the words “National Housing Bank”, the words “Reserve Bank” shall be substituted;

(iii) in sub-section (2), for the words “such higher percentage not exceeding twenty-five per cent., as the National Housing Bank may”, the words “such higher percentage not exceeding twenty-five

per cent., as the Reserve Bank may” shall be substituted;

(iv) in sub-section (3), for the words “National Housing Bank” at both the places where they occur, the words “Reserve Bank” shall be substituted.

155. In section 29C of the principal Act, in sub-section (2),–– Amendment of
section 29C.
(a) for the words “specified by the National Housing Bank”, the words “specified by the Reserve 10 Bank” shall be substituted;

(b) for the words “reported to the National Housing Bank”, the words “reported to the National Housing Bank and the Reserve Bank” shall be substituted;

(c) in the proviso, for the words “Provided that the National Housing Bank”, the words “Provided that the National Housing Bank or the Reserve Bank” shall be substituted;

(d) in sub-section (3), for the words “the National Housing Bank”, the words “the Reserve Bank” shall be substituted.

156. For section 30 of the principal Act, the following section shall be substituted, namely:— Substitution of

section 30.

“30. The Reserve Bank may, if it considers necessary in the public interest so to do, by general or special order,—

(a) regulate or prohibit the issue by any housing finance institution which is a company of any prospectus or advertisement soliciting deposits of money from the public; and

(b) specify the conditions subject to which any such prospectus or advertisement, if not prohibited, may be issued.”.

For section 30A of the principal Act, the following section shall be substituted, namely:—

Reserve Bank

to regulate or
prohibit issue
of prospectus
or
advertisement
soliciting
deposits of

money.

Substitution of section 30A.

“30A. (1) If the Reserve Bank is satisfied that, in the public interest or to regulate the housing finance system of the country to its advantage or to prevent the affairs of any housing finance institution which is a company being conducted in a manner detrimental to the interest of the depositors or in a manner prejudicial to the interest of such housing finance institutions, it is necessary or
expedient so to do, it may determine the policy and give directions to all or any of the housing

finance institution which is a company relating to income recognition, accounting standards, making of proper provision for bad and doubtful debts, capital adequacy based on risk weights for assets and credit conversion factors for off balance-sheet items and also relating to deployment of funds by
a housing finance institution which is a company or a group of such housing finance institutions or
housing finance institutions which are companies generally, as the case may be, and such housing
35 finance institutions shall be bound to follow the policy so determined and the direction so issued.

(2) Without prejudice to the generality of the powers vested under sub-section (1), the Reserve Bank may give directions to housing finance institutions which are companies generally or to a group of such housing finance institutions or to any housing finance institution which is a company in particular as to—

(a) the purpose for which advances or other fund-based or non-fund-based accommodation may not be made; and

(b) the maximum amount of advances or other financial accommodation or investment in shares and other securities which, having regard to the paid-up capital, reserves and deposits of the housing finance institution and other relevant considerations, may be made by that housing finance
45 institution to any person or a company or to a group of companies.

(3) The Reserve Bank may, if it considers necessary in the public interest so to do, issue directions to housing finance institutions which are companies accepting deposits referred to in section 31, either generally or to any group of such housing finance institutions accepting deposits, and in particular, in respect of any matters relating to, or connected with, the receipt of deposits,

including credit rating of the housing finance institution which is a company accepting deposits, the rates of interest payable on such deposits, and the periods for which deposits may be received.

(4) If any housing finance institution which is a company accepting deposits fails to comply with any direction issued under sub-section (3), the Reserve Bank may, by order, prohibit the acceptance of deposits by that housing finance institution.”.

Power of

Reserve Bank

to determine
policy and
issue
directions.

48

Substitution of section 31.

Power of

National Housing Bank to collect information from housing finance institutions as to deposits.

 

 

 

 


Substitution of section 32.

Duty of housing finance institution to furnish statements, etc., under this Chapter.

For section 31 of the principal Act, the following section shall be substituted, namely:—

“31. (1) The National Housing Bank may at any time direct that every housing finance institution which is a company accepting deposits shall furnish to the National Housing Bank and the Reserve Bank in such form, at such intervals and within such time, such statements, information or particulars relating to or connected with deposits received by such housing finance institution, as may be specified by the National Housing Bank by general or special order.

(2) Without prejudice to the generality of the power vested in the National Housing Bank under sub-section ( 1), the statements, information or particulars to be furnished under sub-section (1), may relate to all or any of the following matters, namely, the amount of the deposits, the purposes and periods for which, and the rates of interest and other terms and conditions on which, such deposits are received.

(3) Every housing finance institution which is a company receiving deposits, shall, if so required by the National Housing Bank and within such time as the National Housing Bank may specify, cause to be sent at the cost of such housing finance institution, a copy of its annual balance-sheet and profit and loss account or other annual accounts to every person from whom the housing finance institution which is a company holds, as on the last day of the year to which the accounts relate, deposits higher than such sum as may be specified by the National Housing Bank.”.

For section 32 of the principal Act, the following section shall be substituted, namely:—

“32. Every housing finance institution which is a company shall furnish the statements, information or particulars called for by the National Housing Bank or the Reserve Bank, as the case may be, and shall comply with any direction given to it under the provisions of this Chapter.”.

 

 

5

 

 

10

 

 

15

 

 


20

Amendment of section 33.

 

 

 

 

 

 

 


Substitution of section 33A.

Power of Reserve Bank to prohibit acceptance of deposit and alienation of assets.

 

 


Amendment of section 33B.


160. In section 33 of the principal Act,—
(a) in sub-section (1),—
(i) for the words “housing finance institution” wherever they occur, the words “housing finance 25
institution which is a company” shall be substituted;
(ii) for the words “the National Housing Bank” at both the places where they occur, the words
“the National Housing Bank and the Reserve Bank “ shall be substituted;
(b) in sub-section (1A), for the words “National Housing Bank”, the words “Reserve Bank” shall
be substituted;

(c) in sub-section (2), for the words “the National Housing Bank” at both the places where they 30 occur, the words “the National Housing Bank and the Reserve Bank” shall be substituted;

(d) in sub-section (3), for the words “it may at any time”, the words “it may at any time and shall, on being directed to do so by the Reserve Bank,” shall be substituted.

For section 33A of the principal Act, the following section shall be substituted, namely:—

“33A. (1) If any housing finance institution which is a company violates the provisions of any 35 section or fails to comply with any direction or order given by the National Housing Bank or the Reserve Bank, under any of the provisions of this Chapter, the Reserve Bank may, by order, prohibit such housing finance institution from accepting any deposit.

(2) Notwithstanding anything to the contrary contained in any agreement or instrument or any law
for the time being in force, the Reserve Bank on being satisfied that it is necessary so to do in the 40
public interest or in the interest of the depositors, may direct the housing finance institution which is
a company, against which an order prohibiting from accepting deposit has been issued, not to sell,
transfer, create charge or mortgage or deal in any manner with its property and assets without prior
written permission of the National Housing Bank for such period not exceeding six months from the 45
date of the order.”.
162. In section 33B of the principal Act,—
(i) in sub-section (1), in clause (c), for the words “the National Housing Bank”, the words “the
National Housing Bank or the Reserve Bank” shall be substituted;
(ii) in sub-section (3), for the words “the Registrar of Companies”, the words “the Registrar of 50
Companies and the Reserve Bank” shall be substituted.

49

In section 34 in the principal Act,—

(i) for the words “at any time”, the words “at any time or on being directed so to do by the Reserve Bank, shall” shall be substituted;

(ii) for the words “housing finance institution accepting deposits” at both the places where they

occur, the words “housing finance institution which is a company” shall be substituted;

(iii) after sub-section (3), the following sub-section shall be inserted, namely:—

“(4) The National Housing Bank shall submit a copy of the report of inspection referred to in sub-section (1) to the Reserve Bank.”.

In section 35 of the principal Act,—

(i) in the opening portion, for the words “housing finance institution”, the words “housing finance institution which is a company” shall be substituted;

(ii) in clause (b), for the words “National Housing Bank”, the words “Reserve Bank” shall be substituted.

Amendment of section 34.

 

 

 

 


Amendment of section 35.

165. In section 35A of the principal Act,— Amendment of
section 35A.

(a) for the words “housing finance institution” wherever they occur, the words “housing finance institution which is a company” shall be substituted;

(b) for the words “the National Housing Bank” wherever they occur, the words “the National Housing Bank or the Reserve Bank, as the case may be,” shall be substituted.

For section 35B of the principal Act, the following section shall be substituted, namely:—

“35B. (1) The Reserve Bank, on being satisfied that it is necessary so to do, may declare by notification that all or any of the provisions of this Chapter shall not apply to a housing finance institution which is a company or a group of such housing finance institutions either generally or for such period as may be specified, subject to such conditions, limitations or restrictions as it may think fit to impose.

(2) Every notification made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.”.

In section 44 of the principal Act, in sub-section (1), for the words “National Housing Bank” at both the places where they occur, the words “National Housing Bank or the Reserve Bank, as the case may be,” shall be substituted.

168. In section 46 of the principal Act, for the words “the National Housing Bank” wherever they occur, the words “the National Housing Bank or the Reserve Bank” shall be substituted.

In section 49 of the principal Act,—

(a) in sub-section (2B), for the words “the National Housing Bank”, the words “the National Housing Bank or the Reserve Bank” shall be substituted;

(b) in sub-section (2C), for the words “any order made by the authorised officer”, the words “any order made by the National Company Law Tribunal” shall be substituted;

(c) in sub-section (3), in clause (aa), for the words “the National Housing Bank”, the words “the National Housing Bank or the Reserve Bank” shall be substituted.

In section 51 of the principal Act, for the words “the National Housing Bank,” wherever they 40 occur, the words “the National Housing Bank or the Reserve Bank” shall be substituted.

For section 52A of the principal Act, the following section shall be substituted, namely:—

 

 

Substitution of section 35B.

Power of Reserve Bank to exempt housing finance institution.

 

Amendment of section 44.

Amendment of section 46.

Amendment of section 49.

 

 

 


Amendment of section 51.

Substitution of section 52A.

“52A.(1) Notwithstanding anything contained in section 49, if the contravention or default of the nature referred to in the said section is committed by a housing finance institution which is a company, the National Housing Bank or the Reserve Bank, as the case may be, may impose on such company—

45 (a) a penalty not exceeding five thousand rupees; or

(b) where the contravention or default is under sub-section (2A) or clause (a) or clause (aa) of sub-section (3) of that section, a penalty not exceeding five lakh rupees or twice the amount involved in such contravention or default, where the amount is quantifiable, whichever is more; and where such contravention or default is a continuing one, further penalty which may extend to

Power of National Housing Bank and Reserve Bank to impose fine.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Amendment of section 23.

 

 

Amendment of section 24.

50
twenty-five thousand rupees for every day, after the first, during which the contravention or default
continues.
(2) For the purpose of imposing penalty under sub-section (1), the National Housing Bank or the
Reserve Bank, as the case may be, shall serve a notice on the housing finance institution which is 5
a company requiring it to show cause why the amount specified in the notice should not be imposed
as a penalty and a reasonable opportunity of being heard shall also be given to such housing
finance institution.
(3) Any penalty imposed by the National Housing Bank or the Reserve Bank, as the case may be,
under this section shall be payable within a period of thirty days from the date on which notice
issued by the National Housing Bank or the Reserve Bank, as the case may be, demanding payment 10
of the sum is served on the housing finance institution which is a company and, in the event of
failure of such housing finance institution to pay the sum within such period, may be levied on a
direction made by the principal civil court having jurisdiction in the area where the registered office
or the head office of such housing finance institution is situated:
Provided that no such direction shall be made, except on an application made by an officer of the 15
National Housing Bank or the Reserve Bank, as the case may be, authorised in this behalf, to the
principal civil court.
(4) The court which makes a direction under sub-section (3), shall issue a certificate specifying
the sum payable by the housing finance institution which is a company and every such certificate
shall be enforceable in the same manner as if it were a decree made by the court in a civil suit. 20
(5) No complaint shall be filed against any housing finance institution which is a company in any
court of law pertaining to any contravention or default in respect of which any penalty has been
imposed by the National Housing Bank or the Reserve Bank, as the case may be, under this section.
(6) Where any complaint has been filed against a housing finance institution which is a company
in a court in respect of contravention or default of the nature referred to in section 49, no proceedings 25
for imposition of penalty against such housing finance institution shall be taken under this section.”.

PART VIII

AMENDMENTS TO THE PROHIBITION OF BENAMI PROPERTY

TRANSACTIONS ACT, 1988

172. In the Prohibition of Benami Property Transactions Act, 1988 (hereafter in this Part referred to 30 45 of 1988. as the principal Act), in section 23, the following Explanation shall be inserted and shall be deemed to
have been inserted with effect from the 1st day of November, 2016, namely:––

“Explanation.––For the removal of doubts, it is hereby clarified 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.”. 35

In section 24 of the principal Act, with effect from the 1st day of September, 2019,—

(a) in sub-section (3), for the words, brackets and figure “from the date of issue of notice under sub-section (1)”, the words, brackets and figure “from the last day of the month in which the notice under sub-section (1) is issued” shall be substituted;

(b) in sub-section (4), for the words, brackets and figure “from the date of issue of notice under 40 sub-section (1)”, the words, brackets and figure “from the last day of the month in which the notice under sub-section (1) is issued” shall be substituted;

(c) the following Explanation shall be inserted, namely:-—
“Explanation.––For the purposes of this section, in computing the period of limitation, the
period during which the proceeding is stayed by an order or injunction of any court shall be 45
excluded:
Provided that where immediately after the exclusion of the aforesaid period, the period of
limitation referred to in sub-section (4) available to the Initiating Officer for passing order of
attachment is less than thirty days, such remaining period shall be deemed to be extended to
thirty days: 50

Provided further that where immediately after the exclusion of the aforesaid period, the period of limitation referred to in sub-section (5) available to the Initiating Officer to refer the order of attachment to Adjudicating Authority is less than seven days, such remaining period shall be deemed to be extended to seven days.”.

51

In section 26 of the principal Act, in sub-section (7), with effect from the 1st day of September, 2019, the following Explanation shall be inserted, namely:-—

“Explanation.—For the purposes of this sub-section, in computing the period of limitation, the period during which the proceeding is stayed by an order or injunction of any court shall be excluded:

Provided that where immediately after the exclusion of the aforesaid period, the period of limitation available to the Adjudicating Authority for passing order is less than sixty days, such remaining period shall be deemed to be extended to sixty days.”.

In the principal Act, after section 54, the following sections shall be inserted with effect from the 1st day of September, 2019, namely:—

10 “54A. (1) Any person who fails to,––
(i) comply with summons issued under sub-section (1) of section 19; or
(ii) furnish information as required under section 21,
shall be liable to pay penalty of twenty-five thousand rupees for each such failure.
(2) The penalty under sub-section (1) shall be imposed by the authority who had issued the
15 summons or called for the information.

(3) No order under sub-section (2) shall be passed by the authority unless the person on whom the penalty is to be imposed has been given an opportunity of being heard:

Provided that no penalty shall be imposed if, such person proves that there were good and sufficient reasons which prevented him from complying with the summons or furnishing information.

54B. 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 this Chapter, as the case may be, and all such entries may be proved either by––

(i) the production of the records or other documents in the custody of the authority containing such entries; or

(ii) the production of a copy of the entries certified by the authority having custody of the records or other documents under its signature stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.”.

Amendment of section 26.

 

 

 


Insertion of new sections 54A and 54B.

Penalty for failure to comply with notices or furnish information.

 

 

 

 

Proof of entries in records or documents.

 

 

 

 


43 of 1961.


176. In section 55 of the principal Act, with effect from the 1st day of September, 2019,— Amendment of
(i) for the word “Board”, the words “competent authority” shall be substituted; section 55.

30 (ii) the following Explanation shall be inserted, namely:––

‘Explanation.––For the purposes of this section, “competent authority” means a Commissioner, a Director, a Principal Commissioner of Income-tax or a Principal Director of Income-tax as defined in clause (16), clause (21), clause (34B) and clause (34C), respectively, of section 2 of the Income-tax Act, 1961.’.
35 PART IX

 

 


15 of 1992.

AMENDMENTS TO THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

In the Securities and Exchange Board of India Act, 1992 (hereafter in this Part referred to as 40 the principal Act), in section 14,—

in sub-section (2), after clause (c), the following clause shall be inserted, namely:-

"(d) the capital expenditure, as per annual capital expenditure plan approved by the Board and the Central Government.";

(ii) after sub-section (2), the following sub-sections shall be inserted, namely:—

"(3) The Board shall constitute a Reserve Fund and twenty-five per cent. of the annual surplus of the General Fund in any year shall be credited to such Reserve Fund and such fund shall not exceed the total of annual expenditure of preceding two financial years.

After incurring all the expenses referred to in sub-section (2) and transfer to Reserve

 

Commencement of this Part.

Amendment of section 14.

 


Amendment of section 15C.

Amendment of section 15F.

Insertion of new section 15HAA.

Penalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board.

52

Fund as specified in sub-section (3), the surplus of the General Fund shall be transferred to the Consolidated Fund of India.".

In section 15C of the principal Act, after the words "after having been called upon by the Board in writing", the words "including by any means of electronic communication" shall be inserted.

In section 15F of the principal Act, in sub-clause (a), after the words "one lakh rupees but 5 which may extend to", the words "one crore rupees" shall be inserted.

After section 15HA of the principal Act, the following section shall be inserted, namely:-

‘15HAA. Any person, who—

(a) knowingly alters, destroys, mutilates, conceals, falsifies, or makes a false entry in any information, record, document (including electronic records), which is required under this Act or 10 any rules or regulations made thereunder, so as to impede, obstruct, or influence the investigation, inquiry, audit, inspection or proper administration of any matter within the jurisdiction of the Board.

Explanation.— For the purposes of this clause, a person shall be deemed to have altered, concealed or destroyed such information, record or document, in case he knowingly fails to immediately report the matter to the Board or fails to preserve the same till such information 15 continues to be relevant to any investigation, inquiry, audit, inspection or proceeding, which may be initiated by the Board and conclusion thereof;

without being authorised to do so, access or tries to access, or denies of access or modifies access parameters, to the regulatory data in the database;

without being authorised to do so, downloads, extracts, copies, or reproduces in any form 20 the regulatory data maintained in the system database;

knowingly introduces any computer virus or other computer contaminant into the system database and brings out a trading halt;

without authorisation disrupts the functioning of system database;

 

 

 

 

 

 

 

 

 

Amendment of section 10.

 

 

 

Amendment of section 11.

 


Amendment of section 12.

knowingly damages, destroys, deletes, alters, diminishes in value or utility, or affects by any 25 means, the regulatory data in the system database; or

knowingly provides any assistance to or causes any other person to do any of the acts specified in clauses (a) to (f),

shall be liable to a penalty which shall not be less than one lakh rupees but which may extend to ten
crore rupees or three times the amount of profits made out of such act, whichever is higher. 30
Explanation.—In this section, the expressions "computer contaminant", "computer virus" and
"damage" shall have the meanings respectively assigned to them under section 43 of the Information
Technology Act, 2000.
PART X
AMENDMENTS TO THE CENTRAL ROAD AND INFRASTRUCTURE 35
FUND ACT, 2000

In the Central Road and Infrastructure Fund Act, 2000 (hereafter in this Part referred to as the principal Act), in section 10, in sub-section (1),––

(a) for clause (iv), the following clause shall be substituted, namely:––

“(iv) formulation of criteria for allocation of funds for development and maintenance of State 40 road projects including the projects of inter-State and economic importance;”;

(b) clauses (v) and (vii) shall be omitted.

In section 11 of the principal Act, for sub-section (1), the following sub-section shall be substituted, namely:––

“(1) The share of the Fund to be spent on development and maintenance of State roads, based 45 on the criteria formulated under clause (iv) of sub-section (1) of section 10, shall be allocated in such manner as may be finalised by the Committee referred to in section 7A.”.

In section 12 of the principal Act, in sub-section (2), clause (c) shall be omitted.

 

 

 

 

 


21 of 2000.

 

 


54 of 2000.

53

PART XI

AMENDMENTTOTHE FINANCE ACT, 2002

185. In the Finance Act, 2002, in the Eighth Schedule,––
Amendment

(a) against Item No. 1, for the entry in column (3), the entry “Rs.10 per litre” shall be substituted; of Act 20 of 2002.

(b) against Item No. 2, for the entry in column (3), the entry “Rs.4 per litre” shall be substituted.

PART XII

AMENDMENTTOTHE UNITTRUSTOF INDIA(TRANSFER OF UNDERTAKINGAND REPEAL) ACT, 2002

In the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, in section 13, in sub-section (1), for the words, figures and letters “the 31st day of March, 2019”, the words, figures and

letters “the 31st day of March, 2021” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2019.

PART XIII


Amendment of Act 58 of 2002.

AMENDMENTS TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

15 of 2003.

 

 

16 of 1908.

In the Prevention of Money-laundering Act, 2002 (hereafter in this Part referred to as the 15 principal Act), in section 2, in sub-section (1),––

(i) in clause (n), in sub-clause (i), the word “sub-broker,” shall be omitted;

(ii) in clause (sa), for sub-clause (ii), the following sub-clause shall be substituted, namely:––

‘‘(ii) Inspector-General of Registration appointed under section 3 of the Registration Act, 1908 as may be notified by the Central Government;’’.

188. In section 12A of the principal Act, in sub-section (1), for the words, brackets and figures “sub-section (1) of section 12”, the words, figures, letters and brackets “section 11A, sub-section (1) of section 12, sub-section (1) of section 12AA” shall be substituted .

After section 12A of the principal Act, the following section shall be inserted, namely:––

‘12AA. (1) Every reporting entity shall, prior to the commencement of each specified transaction,—

Amendment of section 2.

 

 

 

Amendment of section 12A.

Insertion of new section 12AA.

Enhanced due diligence.

(a) authenticate the identity of the clients undertaking such specified transaction in such manner and subject to such conditions as may be prescribed;

(b) take additional steps to examine the ownership and financial position, including sources of funds of the client, in such manner as may be prescribed;

(c) take additional steps as may be prescribed to record the purpose behind conducting the

30 specified transaction and the intended nature of the relationship between the transaction parties.

(2) Where the client fails to fulfil the conditions laid down under sub-section (1), the reporting entity shall not allow the specified transaction to be carried out.

(3) Where any specified transaction or series of specified transactions undertaken by a client is considered suspicious or likely to involve proceeds of crime, the reporting entity shall increase the

future monitoring of the business relationship with the client, including greater scrutiny or transactions in such manner as may be prescribed.

Explanation.––For the purpose of this section, “authentication” means the process as defined under sub-section (c) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies,

18 of 2016. Benefits and Services) Act, 2016.

(4) The information obtained while applying the enhanced due diligence measures under sub-section (1) shall be maintained for a period of five years from the date of transaction between a client and the reporting entity.’.

In section 15 of the principal Act, for the words, brackets and figures “sub-section (1) of section 12”, the words, figures, letters and brackets “section 11A, sub-section (1) of section 12 and sub-

section (1) of section 12AA” shall be substituted.

After section 72 of the principal Act, the following section shall be inserted, namely:–

Amendment of section 15.

Insertion of new section 72A.

54

Inter-
ministerial
Co-ordination
Committee.

 

 

 

 

 


Amendment of section 73.

“72A. The Central Government may by notification constitute an Inter-ministerial Co-ordination Committee for inter-departmental and inter-agency co-ordination for the following purposes, namely:—

(a) operational co-operation between the Government, law enforcement agencies, the Financial

Intelligence Unit, India and the regulators or supervisors;
(b) policy co-operation and co-ordination across all relevant or competent authorities; 5
(c) such consultation among the concerned authorities, the financial sector and other sectors, as
are appropriate, and are related to anti money-laundering or countering the financing of terrorism
laws, regulations and guidelines;
(d) development and implementing policies on anti money-laundering or countering the financing 10
of terrorism; and

(e) any other matter as the Central Government may, by notification, specify in this behalf.”.

In section 73 of the principal Act, in sub-section (2), after clause (jj), the following clauses shall be inserted, namely:––

“(jja) the manner and the conditions in which authentication of the identity of clients shall be
verified by the reporting entities under clause (a) of sub-section (1) of section 12AA; 15
(jjb) the manner of identifying the ownership and financial position of the client under clause (b) of
sub-section (1) of section 12AA;
(jjc) additional steps to record the purpose behind conducting the specified transaction and the
intended nature of the relationship between the transaction parties under clause (c) of sub-section 20
(1) of section 12AA;

(jjd) manner of increasing the future monitoring under sub-section (3) of section 12AA.’’.

PART XIV

AMENDMENT TO THE FINANCE (NO. 2) ACT, 2004
Amendment 193. In section 99 of the Finance (No. 2) Act, 2004, with effect from the 1st day of September, 25
of Act 23 of 2019,––
2004.

 

 

 

 


Amendment of Act 51 of 2007.

Bank, etc.,

not to impose

charge for
using
electronic
modes of
payment.


Amendment of section 2.

(I) in clause (a), in sub-clause (ii), for the words “settlement price”, the words “intrinsic value” shall

be substituted;
(II) after the proviso, the following Explanation shall be inserted, namely:––
‘Explanation.–– For the purposes of this section, the expression “intrinsic value” means the 30
difference between the settlement price and the strike price.’.

PART XV

AMENDMENT TO THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007

In the Payment and Settlement Systems Act, 2007, after section 10, the following section shall be inserted with effect from the 1st day of November, 2019, namely:––

“10A. Notwithstanding anything contained in this Act, no bank or system provider shall impose 35 any charge upon anyone, either directly or indirectly, for using the electronic modes of payment prescribed under section 269SU of the Income-tax Act, 1961.”.

PART XVI

AMENDMENTS TO THE BLACK MONEY (UNDISCLOSED FOREIGN

INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015 40

In the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (hereafter in this Part referred to as the principal Act), in section 2, for clause (2), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2015, namely:––

‘(2) “assessee” means a person,–– 45

(a) being a resident in India within the meaning of section 6 of the Income-tax Act, 1961 in the previous year; or

(b) being a non-resident or not ordinarily resident in India within the meaning of clause (6) of

 

 

 

 

 

 

 


43 of 1961.

 

 


22 of 2015.

 

 

43 of 1961.

 

 

 

 

 

 

 

 

 

 

 

 


28 of 2016.

 

 

 

 

 

 

 

 

 

 

 


7 of 2019.

 

 

 

 

16 of 1931.

55

section 6 of the Income-tax Act 1961 in the previous year, who was resident in India either in the previous year to which the income referred to in section 4 relates; or in the previous year in which the undisclosed asset located outside India was acquired:

Provided that the previous year, in case of acquisition of undisclosed asset outside India, shall

be determined without giving effect to the provisions of clause (c) of section 72;’.

In section 10 of the principal Act,––

(i) in sub-section (3), after the word “assess”, the words “or reassess” shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2015;

(ii) in sub-section (4), after the word “assessment”, the words “ or reassessment” shall be inserted

and shall be deemed to have been inserted with effect from the 1st day of July, 2015.

In the principal Act, in section 17, in sub-section (1), in clause (b), for the words “such order”, the words “or vary such order either to enhance or reduce the penalty” shall be substituted with effect from the 1st day of September, 2019.

In the principal Act, in section 84, for the figures “138”, the figures and letter “138, 144A” shall

be substituted with effect from the 1st day of September, 2019.

PART XVII

AMENDMENTS TO THE FINANCE ACT, 2016

In the Finance Act, 2016 (hereafter in this Part referred to as the principal Act), in section 187, in sub-section (1), the following proviso shall be inserted and shall be deemed to have been inserted

20 with effect from the 1st day of June, 2016, namely:––

“Provided that where the amount of tax, surcharge and penalty, has not been paid within the due date notified under this sub-section, the Central Government may, by notification in the Official Gazette, specify the class of persons, who may, make the payment of such amount on or before such date as may be notified by the Central Government, along with the interest on such amount, at the rate of one
per cent. for every month or part of a month comprised in the period commencing on the date immediately following the due date and ending on the date of such payment.”.

In section 191 of the principal Act, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:––

“Provided that the Central Government may, by notification in the Official Gazette, specify the

class of persons to whom the amount of tax, surcharge and penalty, paid in excess of the amount payable under this Scheme shall be refundable.”.

PART XVIII

AMENDMENT TO THE FINANCE ACT, 2018

201. In the Finance Act, 2018, in the Sixth Schedule, against Item Nos. 1 and 2, for the entry in

column (3), the entry “Rs.10 per litre” shall be substituted.

Section 2 of the Finance Act, 2019 is hereby repealed and shall be deemed never to have been enacted.


————————

Declaration under the Provisional Collection of Taxes Act, 1931

It is hereby declared that it is expedient in the public interest that the provisions of clauses (a) of

section 87, sections 90, 185 and 201 of this Bill shall have immediate effect under the Provisional Collection of Taxes Act, 1931.

 

 

 


Amendment of section 10.

 

 

Amendment of section 17.

Amendment of section 84.

 


Amendment of section 187.

 

 

 

Amendment of section 191.

 

 

 

Amendment of Act 13 of 2018.

Repeal.

————————

THE FIRST SCHEDULE

(See section 2)

PART I

INCOME-TAX

Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph 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, not being a case to which any other Paragraph of this Part applies,—

Rates of income-tax

(1) where the total income does not exceed Rs. 2,50,000 Nil;
(2) where the total income exceeds Rs. 2,50,000 but does 5 per cent. of the amount by which the total income exceeds
not exceed Rs. 5,00,000 Rs. 2,50,000;
(3) where the total income exceeds Rs. 5,00,000 but does Rs.12,500 plus 20 per cent. of the amount by which the total
not exceed Rs. 10,00,000 income exceeds Rs. 5,00,000;
(4) where the total income exceeds Rs. 10,00,000 Rs. 1,12,500 plus 30 per cent. of the amount by which the
total income exceeds Rs.10,00,000.

(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,—

Rates of income-tax
(1) where the total income does not exceed Rs. 3,00,000 Nil;
(2) where the total income exceeds Rs. 3,00,000 but does 5 per cent. of the amount by which the total income exceeds
not exceed Rs. 5,00,000 Rs. 3,00,000;
(3) where the total income exceeds Rs. 5,00,000 but does Rs.10,000 plus 20 per cent. of the amount by which the total
not exceed Rs. 10,00,000 income exceeds Rs. 5,00,000;
(4) where the total income exceeds Rs. 10,00,000 Rs. 1,10,000 plus 30 per cent. of the amount by which the
total income exceeds Rs.10,00,000.

(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,—

Rates of income-tax

(1) where the total income does not exceed Rs. 5,00,000 Nil;
(2) where the total income exceeds Rs. 5,00,000 but does 20 per cent. of the amount by which the total income exceeds
not exceed Rs. 10,00,000 Rs. 5,00,000;
(3) where the total income exceeds Rs. 10,00,000 Rs. 1,00,000 plus 30 per cent. of the amount by which the
total income exceeds Rs. 10,00,000.

Surcharge on income-tax

The amount of income -tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income -tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every 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 ) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax; and

(b) having a total income exceeding one crore rupees, at the rate of fifteen per cent. of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding,—

(a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

 

 


5

 

 

10

 

 

15

 

 


20

 

 

25

 

 


30

 

 

35

 

 

40

 

 

 

45

 


50

56

57
Paragraph B
In the case of every co-operative society,—
Rates of income-tax
(1) where the total income does not exceed Rs.10,000 10 per cent. of the total income;
5 (2) where the total income exceeds Rs.10,000 but does not Rs.1,000 plus 20 per cent. of the amount by which the total
exceed Rs. 20,000 income exceeds Rs. 10,000;
(3) where the total income exceeds Rs. 20,000 Rs. 3,000 plus 30 per cent. of the amount by which the total
income exceeds Rs. 20,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every co-operative society, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every co-operative society mentioned above having total income exceeding one crore rupees,
the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax
15 on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.
Paragraph C
In the case of every firm,—
Rate of income-tax
On the whole of the total income 30 per cent.
20 Surcharge on income-tax

The amount of income- tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every firm mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph D

In the case of every local authority,—

30 Rate of income-tax

On the whole of the total income 30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every local authority, having a total
income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every local authority mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

40

 

 


45

 

 


50

Paragraph E

In the case of a company,—

Rates of income-tax

I. In the case of a domestic company,—

(i) where its total turnover or the gross receipt in the 25 per cent. of the total income;

previous year 2016-2017 does not exceed two hundred

and fifty crore rupees;

(ii) other than that referred to in item (i) 30 per cent. of the total income.

In the case of a company other than a domestic company,— (i) on so much of the total income as consists of,—
(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or

58

(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976,

and where such agreement has, in either case, been approved by the Central Government 50 per cent.;

(ii) on the balance, if any, of the total income 40 per cent.

Surcharge on income-tax

The amount of income -tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, be increased by a surcharge for the purposes of the Union calculated,—

(i) in the case of every domestic company,––

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of seven per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such income-tax; (ii) in the case of every company other than a domestic company,––

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:

Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten.

Paragraph E of this Py which the permanent account number or Aadhaar number alongwith demographic information or biometric information of an individual is submitted to the income-tax authority or such other authority or agency as may be prescribed for its verification and such authority or agency verifies the correctness, or the lack thereof, on the basis of information

available with it;’.

In section 139AA of the Income-tax Act, in sub-section (2), in the proviso, for the words “deemed to be invalid and the other provisions of this Act shall apply, as if the person had not applied for

allotment of permanent account number”, the words “made inoperative after the date so notified in such manner as may be prescribed” shall be substituted with effect from the 1st day of

45 September, 2019.

In section 140A of the Income-tax Act,––

(i) in sub-section (1), after clause (ii), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

“(iia) any relief of tax claimed under section 89;”;

(ii) in sub-section (1A), in clause (i), after sub-clause (b), the following sub-clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amendment of section 139AA.

 

Amendment of section 140A.

 

 

 

Amendment of section 143.

Amendment of section 194DA.

Amendment of section 194-IA.

 

Insertion of new sections 194M and 194N.

Payment of

certain sums

by certain
individuals or

Hindu
undivided

family.

 

 

 

 

 

 

 

 


Payment of certain amounts in cash.

18

“(ba) any relief of tax claimed under section 89;”;

(iii) in sub-section ( 1B), in the Explanation, after clause (i), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

“(ia) any relief of tax claimed under section 89;”.

43. In section 143 of the Income-tax Act, in sub-section (1), in clause (c), after the words “any 5 advance tax paid,”, the words and figures “any relief allowable under section 89,” shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007.

In section 194DA of the Income-tax Act, for the words “one per cent.”, the words “five per cent. on the amount of income comprised therein” shall be substituted with effect from the 1st day of

September, 2019. 10

In section 194-IA of the Income-tax Act, in the Explanation, after clause (a), the following clause shall be inserted with effect from the 1st day of September, 2019,––

‘(aa) “consideration for immovable property” shall include all charges of the nature of club
membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or
any other charges of similar nature, which are incidental to transfer of the immovable property;’. 15

After section 194LD of the Income-tax Act, the following sections shall be inserted with effect from the 1st day of September, 2019, namely:––

‘194M. (1) Any person, being 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) responsible for paying any sum to any resident for carrying out any work (including supply of labour for carrying out 20 any work) in pursuance of a contract or by way of fees for professional services during the financial year, shall, at the time of credit of such sum or at the time of payment of such sum in cash or by issue

of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to five per cent. of such sum as income -tax thereon:

Provided that no such deduction under this section shall be made if such sum or, as the case may 25 be, aggregate of such sums, credited or paid to a resident during a financial year does not exceed fifty lakh rupees.

(2) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.

Explanation.––For the purposes of this section,–– 30

(a) “contract” shall have the meaning assigned to it in clause (iii) of the Explanation to section 194C;

(b) “professional services” shall have the meaning assigned to it in clause (a) of the Explanation to section 194J;

(c) “work” shall have the meaning assigned to it in clause (iv) of the Explanation to 35 section 194C.

194N. Every person, being,––
(i) a banking company to which the Banking Regulation Act, 1949 applies (including any bank 10 of 1949.
or banking institution referred to in section 51 of that Act);
(ii) a co-operative society engaged in carrying on the business of banking; or 40
(iii) a post office,

who is responsible for paying any sum, or, as the case may be, aggregate of sums, in cash, in excess of one crore rupees during the previous year, to any person (herein referred to as the recipient) from an account maintained by the recipient with it shall, at crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

PART II

RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES

In every case in which under the provisions of sections 193, 194, 194A, 194B, 194BB, 194D, 194LBA, 194LBB, 194LBC and 195 of the Income-tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to the deduction at the following rates:–


Rate of income-tax
1. In the case of a person other than a company—
(a) where the person is resident in India—
(i) on income by way of interest other than “Interest on securities” 10 per cent.;
(ii) on income by way of winnings from lotteries, crossword 30 per cent.;
puzzles, card games and other games of any sort
(iii) on income by way of winnings from horse races 30 per cent.;
(iv) on income by way of insurance commission 5 per cent.;
(v) on income by way of interest payable on— 10 per cent.;
(A) any debentures or securities for money issued by or on
behalf of any local authority or a corporation established by a
Central, State or Provincial Act;
(B) any debentures issued by a company where such
debentures are listed on a recognised stock exchange in India in
accordance with the Securities Contracts (Regulation)
Act, 1956 (42 of 1956) and any rules made thereunder;
(C) any security of the Central or State Government;
(vi) on any other income 10 per cent.;
(b) where the person is not resident in India—
(i) in the case of a non-resident Indian—
(A) on any investment income 20 per cent.;
(B) on income by way of long-term capital gains referred to 10 per cent.;
in section 115E or sub-clause (iii) of clause (c) of sub-section (1)
of section 112

 

 

 

5

 

 

10

 

 


15

 

 

20

 

 

25

 

 

30

 

 


35

 

 

40

 


45

 

 


50

 

 


5

 

 

10

 


15

 

20

 


25

 

30

 


35

 

40

 

 


45

 


50

 


55

 

60

59

(C) on income by way of long-term capital gains referred to in section 112A

(D) on other income by way of long-term capital gains [not being long -term capital gains referred to in clauses (33) and (36) of section 10] referred to in section 112A exceeding one lakh rupees

(E) on income by way of short-term capital gains referred to in section 111A

(F) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 194LB or section 194LC)

(G) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub- section ( 1A) of section115A of the Income-tax Act, to a person resident in India

( H) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(i)(G)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

(I) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

(J) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

(K) on income by way of winnings from horse races

(L) on the whole of the other income

(ii) in the case of any other person—

(A) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section194LB or section 194LC)

the time of payment of such sum, deduct an amount equal to two per cent. of sum exceeding one crore rupees, as income-tax: 45

Provided that nothing contained in this sub-section shall apply to any payment made to,–– (i) the Government;
(ii) any banking company or co-operative society engaged in carrying on the business of banking or a post office;

(iii) any business correspondent of a banking company or co-operative society engaged in 50 carrying on the business of banking, in accordance with the guidelines issued in this regard by

the Reserve Bank of India under the Reserve Bank of India Act, 1934; 2 of 1934.

19
(iv) any white label automated teller machine operator of a banking company or co-operative
51 of 2007. society engaged in carrying on the business of banking, in accordance with the authorisation
issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007;
(v) such other person or class of persons, which the Central Government may, by notification
5 in the Official Gazette, specify in consultation with the Reserve Bank of India.’.
47. In section 195 of the Income-tax Act, with effect from the 1st day of November, 2019,–– Amendment
(a) in sub-section (2), for the words “to the Assessing Officer to determine, by general or special of section
195.
order”, the words “in such form and manner to the Assessing Officer, to determine in such manner, as may be prescribed” shall be substituted;

(b) in sub-section (7), for the words “to the Assessing Officer to determine, by general or special order”, the words “in such form and manner to the Assessing Officer, to determine in such manner, as may be prescribed” shall be substituted.

In section 197 of the Income-tax Act, in sub-section (1), for the figures and letters “194LBC”, the figures and letters “194LBC, 194M” shall be substituted with effect from the 1st day of

15 September, 2019.

49. In section 201 of the Income-tax Act, with effect from the 1st day of September, 2019,––
(a) in sub-section (1), in the first proviso, for the word “resident” wherever it occurs, the word
35 “payee” shall be substituted;
(b) in sub-section (1A), in the proviso, for the word “resident” wherever it occurs, the word “payee”
20 shall be substituted;

(c) in sub-section (3), after the words “credit is given”, the words, brackets and figures “or two years from the end of the financial year in which the correction statement is delivered under the proviso to sub-section (3) of section 200, whichever is later” shall be inserted.

For section 206A of the Income-tax Act, the following section shall be substituted with effect 25 from the 1st day of September, 2019, namely:––

“206A.(1) Any banking company or co-operative society or public company referred to in the proviso to clause (i) of sub-section (3) of section 194A responsible for paying to a resident any income not exceeding forty thousand rupees, where the payer is a banking company or a co-operative society, and five thousand rupees in any other case by way of interest (other than

interest on securities), shall 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 deliver or cause to be delivered the said statement to the prescribed income-tax authority or to the person authorised by such authority.

(2) The Board may 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 deliver or cause to be delivered the said statement to the income-tax authority or the authorised person referred to in sub-section (1).

(3) The person responsible for paying to a resident any income referred to in sub-section (1) or sub-section (2) may also deliver to the income-tax authority referred to in sub-section (1), a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under the said sub-sections in such form and verified in such manner, as may be prescribed.”.

 


Amendment of section 197.

Amendment of section 201.

 

 

 


Substitution of section 206A.

Furnishing of statement in respect of payment of any income to residents without deduction of tax.

51. In section 228A of the Income-tax Act, with effect from the 1st day of September, 2019,–– (a) in sub-section (1),––

(i) for the words “corresponding law from”, the words “corresponding law from a resident, or” shall be substituted;

(ii) for the words “any Tax Recovery Officer”, the words “any Tax Recovery Officer having

50 jurisdiction over the resident, or” shall be substituted;

(b) in sub-section (2),––

(i) for the words “has property in a country outside India”, the words “ is a resident of a country” shall be substituted;

Amendment of section 228A.

 


Amendment of section 234A.

20

(ii) for the words “forward to the Board”, the words “or has any property in that country, forward to the Board” shall be substituted.

In section 234A of the Income-tax Act, in sub-section (

(B) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub -section (1A) of section 115A of the Income-tax Act, to the Indian concern, in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India

( C) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(ii)(B )] payable by Government or an Indian concern in pursuance of an agreement made by it


10 per cent.;

20 per cent.;

 

15 per cent.;

20 per cent.;

 


10 per cent.;

 

 

 

 

10 per cent.;

 

 

 


10 per cent.;

 

 

 

30 per cent.;

30 per cent.;

30 per cent.;


20 per cent.;

 


10 per cent.;

 

 

 

 

10 per cent.;

60

with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

(D) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

(E) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

(F) on income by way of winnings from horse races

(G) on income by way of short-term capital gains referred to in section 111A

(H) on income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of section 112

(I) on income by way of long-term capital gains referred to in section 112A exceeding one lakh rupees

(J) on income by way of other long-term capital gains [not being long-term capital gains referred to in clauses (33) and (36) of section 10]

(K) on the whole of the other income 2. In the case of a company—
(a) where the company is a domestic company—

(i) on income by way of interest other than “Interest on securities”

(ii) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

(iii) on income by way of winnings from horse races (iv) on any other income
(b) where the company is not a domestic company—

(i) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

(ii) on income by way of winnings from horse races

(iii) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 194LB or section 194LC)

( iv) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India

(v) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(iv)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

 

 

 


10 per cent.;

 

 

 

30 per cent.;

30 per cent.;

15 per cent.;

10 per cent.;

10 per cent.;

20 per cent.;


30 per cent.

 

10 per cent.;

30 per cent.;

30 per cent.;

10 per cent.;


30 per cent.;

30 per cent.;

20 per cent.;

 

10 per cent.;

 

 


5

 


10

 


15

 

 

20

 

 

25

 

 


30

 

 


35

 

 

40

 


45

 

50

 


55

 

60

 

 

 

5

 

10

 

 

15

61
(A) where the agreement is made after the 31st day of 50 per cent.;
March, 1961 but before the 1st day of April, 1976
(B) where the agreement is made after the 31st day of 10 per cent.;
March, 1976
(vi) on income by way of fees for technical services payable by
the Government or an Indian concern in pursuance of an agreement
made by it with the Government or the Indian concern and where such
agreement is with an Indian concern, the agreement is approved by
the Central Government or where it relates to a matter included in the
industrial policy, for the time being in force, of the Government of India,
the agreement is in accordance with that policy—
(A) where the agreement is made after the 29th day of 50 per cent.;
February, 1964 but before the 1st day of April, 1976
(B) where the agreement is made after the 31st day of 10 per cent.;
March, 1976
(vii) on income by way of short-term capital gains referred to in 15 per cent.;
section 111A
(viii) on income by way of long-term capital gains referred to in 10 per cent.;
sub-clause (iii) of clause (c) of sub-section (1) of section 112

20 (ix) on income by way of long-term capital gains referred to in 10 per cent.;
section 112A exceeding one lakh rupees

(x) on income by way of other long-term capital gains [not being 20 per cent.;
long-term capital gains referred to in clauses (33) and (36) of section 10]
(xi) on any other income 40 per cent.

Explanation.—For the purposes of item 1(b)(i) of this Part, “investment income” and “non-resident Indian” shall have the respective meanings assigned to them in Chapter XII-A of the Income-tax Act.

Surcharge on income-tax
The amount of income-tax deducted in accordance with the provisions of––
(i) item 1 of this Part, shall be increased by a surcharge, for the purposes of the Union,––
30 (a) in the case of every 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, being a non-resident, calculated,––
I. at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or
likely to be paid and subject to the deduction exceeds fifty lakh rupees but does not exceed one crore rupees;
35 II. at the rate of fifteen per cent. of such tax, where the income or the aggregate of such incomes paid or
likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed two crore rupees;
III. at the rate of twenty-five per cent. of such tax, where the income or the aggregate of such incomes
paid or likely to be paid and subject to the deduction exceeds two crore rupees but does not exceed five crore
rupees; and
40 IV. at the rate of thirty-seven per cent. of such tax, where the income or the aggregate of such incomes
paid or likely to be paid and subject to the deduction exceeds five crore rupees;

in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve per cent., where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees;

(ii) Item 2 of this Part shall be increased by a surcharge, for the purposes of the Union, in the case of every company other than a domestic company, calculated,––

(a ) at the rate of two per cent. of such income-tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees; and

(b) at the rate of five per cent. of such income-tax where the income or the aggregate of such incomes paid or
likely to be paid and subject to the deduction exceeds ten crore rupees.

PART III

RATES FOR CHARGING INCOME-TAX IN CERTAIN CASES, DEDUCTING INCOME-TAX FROM INCOME CHARGEABLE UNDER THE HEAD “SALARIES” AND COMPUTING “ADVANCE TAX”

In cases in which income-tax has to be charged under sub-section (4 ) of section 172 of the Income-tax Act or 55 sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the said Act or deducted from,

62

or paid on, from income chargeable under the head “Salaries” under section 192 of the said Act or in which the “advance tax” payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, “advance tax” [not being “advance tax” in respect of any income chargeable to tax under Chapter XII or Chapter XII -A or income chargeable to tax under section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act at the rates as specified in that Chapter or section or surcharge, wherever applicable, on such “advance tax” in respect of any income chargeable to tax under section 115A or section 115AB or section 115AC or section 115ACA or section 115AD or section 115B or section 115BA or section 115BB or section 115BBA or section 115BBC or section 115BBD or section 115BBDA or section 115BBE or section 115BBF or section 115BBG or section 115E or section 115JB or section 115JC] shall be charged, deducted or computed at the following rate or rates:—

Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph 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, not being a case to which any other Paragraph of this Part applies,—

Rates of income-tax
(1) where the total income does not exceed Rs. 2,50,000 Nil;
(2) where the total income exceeds Rs. 2,50,000 but does 5 per cent. of the amount by which the total income exceeds
not exceed Rs. 5,00,000 Rs. 2,50,000;
(3) where the total income exceeds Rs. 5,00,000 but does Rs. 12,500 plus 20 per cent. of the amount by which the
not exceed Rs. 10,00,000 total income exceeds Rs. 5,00,000;
(4) where the total income exceeds Rs. 10,00,000 Rs. 1,12,500 plus 30 per cent. of the amount by which the
total income exceeds Rs.10,00,000.

 

 


5

 


10

 


15