Jurisdiction allocation of income-tax authorities updated to reassign and insert Principal Commissioners, retrospective effect applied.
Amendment modifies the Schedule to the principal notification by omitting specified Sl. Nos. and inserting or substituting entries to add designated Principal Commissioner / Commissioner of Income-tax postings for identified jurisdictions; the notification is issued under delegated power and is deemed to have effect from 17th September, 2019 with a certification that no person is adversely affected by retrospective operation.

E-assessment centralisation: designated NeAC tax officers to exercise Assessing Officer powers for centralised electronic assessments.
The CBDT directs that specified Income-tax authorities at the National e-Assessment Centre, New Delhi, shall exercise and perform concurrently the powers and functions of the Assessing Officer to facilitate centralised e-assessment proceedings for returns furnished and matters arising from statutory inquiry notices, with effect from publication of the notification.

Jurisdictional extension authorises specified Principal Commissioners to exercise additional income tax powers in designated jurisdictions under statute.
The notification inserts a new clause and Schedule-III into Notification No. 50 of 2014, authorising specified Principal Commissioners of Income-tax and Commissioners of Income-tax, as identified by designation and headquarters in Schedule-III, to exercise powers and perform functions in respect of specified cases, persons and incomes within the corresponding jurisdictions set out in Schedule-III, in addition to their existing jurisdiction; the amendment takes effect from publication in the Official Gazette.

TDS exemption for APMC commission agents permits large cash withdrawals when certified for farmer payments and PAN is verified.
Exemption from TDS on cash withdrawals is extended to commission agents or traders registered with an APMC who have intimated their account number and PAN to the banking company, co operative society, or post office and certified that withdrawals beyond the statutory threshold are for payments to farmers for agricultural produce; the banking entity must verify the PAN and ensure APMC registration and supporting evidence are placed on record.

Depreciation on motor vehicles increased for qualifying acquisitions within the specified window, enhancing allowable WDV deductions for tax purposes.
The Income-tax Rules amendment substitutes entries in Appendix I, Part A (Tangible Assets), item III (Machinery and Plant) to grant higher depreciation rates for motor cars not used for hire and for motor buses, lorries and taxis used for hire, where such assets are acquired and put to use within the specified acquisition window; the amendment is made under section 32 read with section 295 and is given retrospective effect from the stated commencement date.

Specification of Cash Replenishment Agencies and WLATMO franchise agents requires dedicated ATM replenishment accounts and monthly reconciliation certificates.
The Central Government specifies Cash Replenishment Agencies and franchise agents of White Label ATM Operators as covered entities provided they maintain a separate bank account used only for ATM replenishment and that the WLATMO furnishes a monthly certificate to the bank certifying that those accounts have been examined and withdrawals reconciled with cash deposited in the ATMs; the notification is deemed effective from the first day of September, 2019.

Approving Panel reference procedure for declaring arrangements as impermissible avoidance, with prescribed forms and hearing safeguards.
An Approving Panel under section 144BA may be referred to by a Principal Commissioner or Commissioner who, after recording satisfaction in Form No. 3CEI, files Form No. 3CEIA in four sets (Hindi or English) with supporting documents. The Chairperson must circulate the reference to members within seven days and serve notices affording the Assessing Officer and the assessee an opportunity of being heard; the Panel fixes hearing venues and meetings. Members receive a sitting fee and travelling and daily allowances on a scale aligned with a Special Secretary, and Panel expenses are met from Department of Revenue budgetary grants.

Infrastructure Debt Fund exemption removes fixed lock-in period for non-residents, easing tax exemption eligibility for qualifying funds.
The Income-tax (7th Amendment) Rules, 2019 omit the proviso to Rule 2F(5), removing the additional lock-in condition for non-resident investors in Infrastructure Debt Funds as a condition for claiming the tax exemption under section 10(47), effective from publication in the Official Gazette.

Prescribed Income-tax Authority: Assistant Commissioner (e-Verification) authorised to issue section 143(2) notices for specified returns.
Authorisation is granted to the Assistant Commissioner of Income-tax (e-Verification), headquartered at Delhi, to act as the prescribed Income-tax Authority for issuing notices under sub-section (2) of section 143 of the Income-tax Act in respect of returns furnished under section 139 and responses to notices under sub-section (1) of section 142 for the financial year specified; the designation is made under the powers of section 120 and the cited provisions and takes effect from publication in the Official Gazette.

Arm's length price tolerance: actual transaction price may be treated as ALP when variation falls within narrow prescribed margins.
Notification deems the actual transaction price to be the arm's length price for assessment year 2019-2020 where the variation between the arm's length price under section 92C and the actual price falls within prescribed tolerance bands; wholesale trading is subject to a tighter tolerance and is defined by two cumulative conditions regarding purchase cost share and average monthly closing inventory relative to sales.

Cost Inflation Index updated to affect indexed cost computation for capital gains from the relevant assessment year onward.
The notification amends the earlier tax notification to insert the Cost Inflation Index for financial year 2019-20 into the table of index values, and provides that the amendment comes into force from the stated effective date and applies to the corresponding assessment year and subsequent years, under the Explanation to the relevant provision of the Income-tax Act.

E-assessment Scheme: faceless, automated assessment with electronic notices, video-conferencing hearings and digital authentication.
The notification mandates faceless implementation of the E-assessment Scheme, 2019 through the National e-Assessment Centre which issues electronic notices, assigns cases by automated allocation to regional assessment units, manages requests for information, verification and technical assistance, examines draft assessment orders under a risk strategy, provides show-cause opportunities or refers drafts for review, finalises orders with demand/refund and penalty notices, and transfers electronic records and penalty proceedings to the jurisdictional Assessing Officer; hearings and examinations are conducted exclusively by video conferencing and records are authenticated by digital signature or electronic verification code.

E-assessment Scheme enabling faceless electronic assessments with automated allocation and exclusive electronic communication and video conferencing hearings.
The E-assessment Scheme, 2019 creates a centralized faceless assessment process under section 143 by establishing a National e-assessment Centre, Regional Centres and assessment, verification, technical and review units. Cases are selected and assigned via an automated allocation system; assessment units prepare draft orders which are subject to automated examination and review. All communications and deliveries are exclusively electronic to registered accounts, email or mobile app with real-time alerts, authenticated by digital or electronic signatures, and finalised assessments are transferred to the jurisdictional Assessing Officer for penalties, recovery and other post-assessment actions.

Income-tax (6th Amendment) Rules, 2019 mandate electronic Form 56/10G filing and set six-month approval limit for 80G.
The amendment prescribes electronic filing and verification in Form No. 56 (for clause (23C) exemptions) and Form No. 10G (for section 80G approval), verified by the person authorised under section 140 either by digital signature or electronic verification code; assigns the Principal Commissioner or Commissioner as the approving authority; authorises the Director General of Income-tax (Systems) to set data structures, standards and security for filing; allows the Commissioner to call for documents and inquiries to verify genuineness; and requires approval or rejection orders under section 80G to be issued within six months of receipt of the application.

Aadhaar-based PAN application permitted and Aadhaar authentication with secure data protocols mandated for PAN allotment and issuance.
Aadhaar may be used in lieu of PAN to be deemed an application for PAN or to apply for PAN by intimation of Aadhaar without further documents; the Principal Director General/Director General (Systems) shall authenticate Aadhaar information received and prescribe formats, standards and procedures for furnishing, intimating or quoting Aadhaar, for Aadhaar authentication, and for obtaining demographic information from the Unique Identification Authority of India, and shall implement security, archival and retrieval policies for such data for PAN allotment and issuance.

Extension of committee tenure under section 35AC confirms continuity of appointed members for a further term.
The Central Government, invoking its powers under the Income tax Act provision read with the corresponding Income Tax Rules, extends the tenure of the Chairman and fourteen members of the National Committee for Promotion of Social and Economic Welfare for a further six month period commencing 1st October, 2019, and names the Chairman as Justice R.C. Lahoti along with the continued membership composition.

Exchange of information expanded - treaty now mandates broader information exchange, tax collection assistance and anti abuse limits.
Amendment revises taxes covered and adds mechanisms: an Associated Enterprises adjustment obliges competent authorities to make appropriate tax adjustments where one State taxes profits attributable to an enterprise of the other State; Article 28 expands Exchange of Information to all foreseeably relevant information, mandates secrecy, permits use of information gathering measures even without domestic interest and covers information held by financial intermediaries; Article 28A establishes mutual assistance in collection and conservancy measures under domestic law limits; Article 28B imposes limitation of benefit and preserves domestic anti abuse and CFC rules.

Multilateral Instrument implements BEPS treaty measures in India, modifying tax treaty benefits, anti abuse and dispute rules.
Central Government notifies that the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) shall be given effect in India according to India's Position in the Annex. The Convention modifies Covered Tax Agreements to implement BEPS measures (treaty abuse rules including PPT and Simplified LOB, hybrid mismatch and dual residence rules, permanent establishment anti avoidance, methods for elimination of double taxation, dispute resolution and corresponding adjustments). India elects Article 5 Option C, applies PPT as interim and the Simplified LOB, chooses Article 9(4), Option A for Article 13, substitutes "taxable period" for "calendar year" under Article 35, records reservations (notably on dividend holding periods and mutual agreement procedure presentation) and declines Part VI arbitration.

Notification under section 10(46) exempts specified income of Bangalore Water Supply and Sewerage Board, subject to compliance conditions.
Notification under section 10(46) designates Bangalore Water Supply and Sewerage Board as a Government constituted Board for exemption of specified income comprising water charges, sanitary and borewell charges, special sanitary charges, meter charge, bulk water charges, rent, and interest on surplus. The exemption is conditional on the Board not engaging in commercial activity, maintaining unchanged activities and income character across the financial years, and filing returns as required by the Act.

Exemption from income-tax return filing for non-residents and foreign companies investing in IFSC funds where tax is deducted at source.
Exemption from furnishing an income-tax return is granted to non-residents (other than companies) and foreign companies with income from investments in IFSC-based funds, where the fund is a regulated Category I/II AIF or IFSC-regulated fund, tax on such income has been deducted at source by the investment fund and remitted, and the recipient has no other income necessitating return filing; the exemption does not apply where a statutory notice requiring filing has been issued.