Section 80C deduction eligibility for NABARD Rural Bonds specified, applying from the assessment year commencing in 2008.
The Central Government specifies the NABARD Rural Bonds issued by the National Bank for Agriculture and Rural Development as eligible investments for deduction under Section 80C, invoking powers conferred by the Finance Act, 2007 amendment; the specification is subject to an aggregate subscription ceiling and takes effect from the commencement of the stated fiscal period, applying to the subsequent assessment year.

Human Resource Development directorate established to centralize HR planning and performance management for income tax department.
Constitution of the Directorate of Income Tax, Human Resource Development establishes a centralized HR unit within CBDT to develop strategic HR plans, assess job requirements and project manpower needs, operate a Human Resource Information System, and assist CBDT in recruitment, promotions, performance appraisal, transfers, succession planning, equal opportunity, and employee welfare. The Directorate will design a performance management system linking rewards to measurable performance and promote international cooperation. It is headed by a Director General (HRD), located in New Delhi, organized into three divisions-Cadre Management, Performance Management and ACR, and Training and Capacity Building-each with specified operational responsibilities.

Approval under Section 35 research funding compliance requires audited accounts, certified donation statements and continued genuine research activity.
Approval is granted to Surat Raktadan Kendra & Research Centre as an approved institution under Section 35(1)(ii), effective 1 April 2005, subject to conditions: funds must be used for scientific research; research carried out by faculty or enrolled students; books of account maintained and audited by a qualified accountant with the audit report furnished by the income-tax return due date; and a separate auditor-certified statement of donations received and amounts applied for research must accompany the audit report.

Approval under Section 35(1)(ii) conditions research funding use, audit compliance, and certified donation reporting.
Approval is granted to Birla Institute of Technology & Science, Pilani as a university partly engaged in research for the statutory tax purpose, subject to conditions requiring that sums received be used for scientific research, research be carried out by faculty or enrolled students, books of account be maintained and audited by a qualified accountant with the audit report and an auditor certified statement of donations and research expenditures furnished to the tax authority by the due date.

Survivor's encashment rights allow a joint depositor to encash before maturity upon the first holder's death with proof.
The amendment grants the surviving joint holder of a bank term deposit the right to encash the deposit before maturity on death of the first holder by applying to the branch manager and submitting proof of the first holder's death; enacted under the power in clause (xxi) of sub section (2) of Section 80C and effective on Gazette publication.

Deduction under section 35AC: approved project cost for Helpage India increased by amendment to existing notification.
The Central Government, exercising powers under section 35AC of the Income-tax Act, 1961, amends the earlier notification specifying the Helpage India scheme-medical care to old persons, leprosy and cancer patients, provision of homes and rehabilitation for destitute old women, and conducting eye camps-by substituting the previously notified maximum amount of project cost with a higher amount following the National Committee's recommendation.

TDS notification: India Infrastructure Finance Company Limited notified under section 194A for specified withholding tax treatment.
The Central Government, exercising powers under sub clause (f) of clause (iii) of sub section (3) of Section 194A of the Income Tax Act, notifies India Infrastructure Finance Company Limited, New Delhi, by Notification No. 288/2007 dated December 10, 2007, for the purpose of that sub clause, thereby identifying the company within the statutory framework of the withholding provision.

Approval under Section 35(1)(ii): donations to Chennai Mathematical Institute eligible when used for scientific research subject to audit and reporting.
Chennai Mathematical Institute is approved as an other institution partly engaged in research for purposes of clause (ii) of sub section (1) of section 35 read with rules 5C and 5E, effective 1 4 2005, subject to utilization of donations for scientific research, research being conducted by faculty or enrolled students, maintenance of books of account, audit by a qualified accountant with timely submission of the audit report to the tax authorities, and retention of a separate auditor certified statement of donations and sums applied for scientific research.

Bonus on Post Office Monthly Income Account deposits: bonus payable for new accounts upon pass book production and written application.
A proviso is inserted to provide that a bonus equal to a specified percentage of the amount deposited shall be paid on deposits made in new Monthly Income Account accounts opened on or after the notification date, payable on production of the pass book accompanied by a written application (withdrawal form).

Post Office Monthly Income Accounts: new accounts opened on/after 8 Dec 2007 receive a 5% bonus on deposits.
Amendment inserts a proviso to rule 9(1) of the Post Office (Monthly Income Account) Rules, 1987 providing that a bonus equal to five per cent of the amount deposited shall be paid on deposits made in new accounts opened on or after 8 December 2007, upon production of the pass-book accompanied by a written application (withdrawal form).

Control of income-tax authorities: notification designates subordinate officers within administrative hierarchy for large taxpayer unit
The Central Board of Direct Taxes, exercising section 118, notifies that specified income-tax authorities listed in the Schedule are subordinate to the authority indicated in column (2), identifying the Chief Commissioner (Large Taxpayer Unit) as superior and particular Commissioners as subordinate; the notification takes effect from publication in the Official Gazette and is noted as later rescinded by a subsequent notification.

Delegation of statutory powers: Chief Commissioner (Large Taxpayer Unit) authorised to exercise functions of the Commissioner for LTU jurisdiction.
The Central Board of Direct Taxes directs a delegation of powers under section 120(1) and (2) of the Income-tax Act, authorising the Chief Commissioner (Large Taxpayer Unit) Chennai to exercise the powers and perform the functions of the Commissioner of Income Tax (Large Taxpayer Unit) Chennai for the territorial area, persons, incomes or cases specified in the Schedule; the notification takes effect from its publication in the Official Gazette.

Jurisdiction extension for Large Taxpayer Unit enabling delegated exercise of statutory powers for specified taxpayers.
The Commissioner of Income-tax (Large Taxpayer Unit) Chennai is empowered to exercise the powers under the Income-tax Act, including Chapter XVII-B and Chapter XVII-BB, for classes of cases and persons specified in the Schedule where consent for the LTU scheme is given and prescribed payment conditions are met; the Commissioner may delegate those powers in writing to Additional or Joint Commissioners, who may further delegate in writing to Assessing Officers, in respect of the specified cases or persons.

Appointment of Income-tax Authority: Chief Commissioner (Large Taxpayer Unit) Chennai designated to exercise Chief Commissioner powers as Income-tax Authority.
The Central Government, under section 117 of the Income-tax Act, directs that the Chief Commissioner (Large Taxpayer Unit) Chennai shall act as the Income-tax authority with the powers of the Chief Commissioner of Income-tax, with headquarters at Chennai and jurisdiction to be specified under the statutory allocation mechanism, effective from publication in the Official Gazette.

Tax residency redefined and limitation of benefits added to the amended UAE-India double tax protocol affecting treaty relief.
The Protocol revises the Agreement by redefining resident status-India by liability to tax and exclusion of persons taxable only on source income; UAE by physical presence and corporate incorporation with management and control-and recognises specified government institutions. It permits deductions for permanent establishment expenses under the taxing State's laws, allows source State taxation of dividends subject to a cap for the beneficial owner, reallocates capital gains taxing rights for shares deriving value from immovable property, exempts government income from tax in the other State, revises nondiscrimination for permanent establishments, and adds a Limitation of Benefits clause denying benefits to entities formed to obtain treaty advantages.

Deduction eligibility for convention centres: prescribed facilities and an audit in Form 10CCBBA are required for compliance.
Rule 18DE prescribes eligibility and operational requirements for claiming deduction under section 80 ID for convention centres: specified minimum covered plinth area, seating capacity and number of halls; mandatory hall equipment (public address, projection, LCD/video); documentation centre with computing and communication facilities and trained operators; central air conditioning; compliance with parking, local building, fire and safety regulations; optional amphitheatre and catering limited to event support. An audit report must be furnished in Form No. 10CCBBA, which records technical particulars, computation details and an auditor's declaration. The amendment takes effect from 1 April 2008.

Approval under section 35 research exemption: organization approved subject to audit, donation statements and genuine research requirements.
Approval is granted to the Indian Council for Research on International Economic Relations, New Delhi, under clause (iii) of sub section (1) of section 35 read with rules 5C and 5E, effective from 1 4 2005, as an institution partly engaged in research. Conditions require use of sums for social science research, research through faculty or enrolled students, maintenance of books, audit by a qualified accountant with submission of the audit report to the tax authority by the return due date, and an auditor certified statement of donations and amounts applied to research to accompany the audit report. The Central Government may withdraw approval for specified failures or non compliance.

Research institution approval under income-tax rules requires audited accounts, certified donation statements and genuine research activity compliance.
Santhigiri Ashramam is approved as an other institution partly engaged in research activities effective 12-12-2006, subject to conditions: sums received must be used for social science research; research must be conducted by faculty or enrolled students; books of account must be maintained and audited by a qualified accountant with the audit report filed by the income-tax return due date; and a separate auditor-certified statement of donations received and amounts applied for research must accompany the audit report. Approval may be withdrawn for failures in accounting, audit, reporting, cessation or lack of genuine research activities, or noncompliance with the governing provisions.

Research approval requires donor sums used for scientific research, audited accounts, and certified donation statements.
Santhigiri Ashramam is approved as an other institution partly engaged in research effective 12-12-2006, subject to conditions: donations must be used for scientific research; research must be conducted through faculty or enrolled students; books of account must be maintained and audited by a defined accountant with the audit report furnished to the tax authorities by the return due date; and a separate auditor certified statement of donations received and amounts applied for scientific research must accompany the audit report.

Double taxation avoidance: treaty allocates taxing rights and limits source withholding on dividends, interest and royalties.
The Agreement allocates taxing rights by category of income, designating permanent establishment as the principal nexus for business profits and providing arm's length attribution rules; immovable property income is taxable where located; shipping and air transport profits are taxable only in the enterprise's residence State. Dividends, interest and royalties may be taxed in the source State but withholding is limited where the recipient is the beneficial owner and special rules exclude amounts effectively connected with a PE or fixed base. The treaty also prescribes elimination of double taxation by credit, non discrimination, mutual agreement and exchange of information, and an anti abuse limitation of benefits clause.