Cost Inflation Index updated to add the fiscal year for indexation under section 48, affecting capital gains computation.
The Central Government amends Notification S.O. 2292(E) (9-9-2009) under the Explanation to section 48 by inserting a new table entry for the fiscal year 2010-2011 with the prescribed Cost Inflation Index value, thereby extending the schedule of indexation values used for computing indexed cost for capital gains.

Scientific research expenditure approval: Astra Zeneca Research Foundation India recognized under section for tax-qualification subject to audit and reporting conditions.
Astra Zeneca Research Foundation India, Bangalore is approved as an approved organization in the category of Association partly engaged in research for purposes of deductions for payments to approved research organizations, subject to conditions: sums paid must be used for scientific research; research conducted through faculty or enrolled students; separate books of account for research sums maintained and audited by a qualified accountant with the audit report furnished by the income-tax return due date; and a certified statement of donations and amounts applied for research must accompany the audit report. Approval may be withdrawn for failure to comply or for cessation or non-genuineness of research activity.

Scientific research expenditure approval: MEPCO Sehlenk Engineering College qualifies under research expenditure rules, subject to audit and accounting conditions.
MEPCO Sehlenk Engineering College, Sivakasi is approved for purposes of deductions for scientific research expenditure from assessment year 2010-11 as a college partly engaged in research, subject to conditions: sums received must be used for scientific research; research must be carried out by faculty or enrolled students; separate books of account for research receipts and expenditure must be maintained and audited by a qualified accountant with the audit report and an auditor certified statement of donations and amounts applied for research furnished to the tax authority by the return due date; approval may be withdrawn for non compliance or cessation of genuine research activity.

Research expenditure approval under section 35(1)(ii) permits donations when used for scientific research with audit compliance.
Approval of Sardarkrushinagar Dantiwada Agricultural University under section 35(1)(ii) permits sums paid to the university to be treated for scientific research only if the university conducts research through faculty or enrolled students, maintains separate books of account for research receipts and expenditures, obtains an audit by a qualified accountant and files the audit report by the return due date, and provides a certified statement of donations and amounts applied for research.

Corrigendum to income-tax rules corrects form reference and adds annexure allowance for multiple quarterly transactions.
Corrigendum effects textual and procedural corrections to the Gazette Notification: replace "(Amendment)" with "(6th Amendment)", correct the form reference to Form No. 12BA, change the heading from "THROUGH CHALLAN" to "THROUGH BOOK ENTRY", and insert a note allowing a separate annexure for summaries when multiple payments, credits, receipts or debits occur in a quarter; other contents remain unchanged.

Industrial park recognition confirms undertaking and project eligible for tax incentives, subject to accuracy and approval conditions.
Notification recognizes M/s. Infinity Infotech Parks Limited and its specified project as an industrial park eligible under the industrial park scheme, recording commencement as 28th March, 2008. Recognition is contingent on truthful, complete submissions and exclusive entitlement to the location; wrong or omitted material information, prior notification for the location to another undertaking, unapproved amendments to the project plan, or nondisclosure of material facts will invalidate the approval and render the undertaking responsible.

Prescribed authority change: Chief Commissioner of Income Tax Hyderabad III to handle specified income tax exemption cases.
The notification substitutes item (iv) to designate that cases within the jurisdiction of the Director of Income Tax (Exemption), Hyderabad, shall have the prescribed authority as the Chief Commissioner of Income Tax, Hyderabad III, Hyderabad, thereby reassigning supervisory responsibility for exemption matters under the relevant income tax exemption provisions.

Tax-free bond specification: interest on specified pooled finance bonds exempt under Section 10(15)(vii) subject to scheme guidelines.
Specification under section 10(15)(vii) designates tax-free Pooled Finance Development Bonds issued by the Water and Sanitation Pooled Fund, Tamil Nadu, to part-fund seven Urban Local Body projects for water supply and underground sewerage. The bonds carry a ten-year tenure with a five-year principal moratorium and interest not exceeding eight percent per annum. Tax-exemption is conditional on compliance with the Pooled Finance Development Scheme Guidelines and the Ministry of Urban Development's OM, and on issuance within twelve months of this notification.

Prescribed authority designation: Chief Commissioner of Income Tax Hyderabad-III now handles Hyderabad exemption cases under income-tax rules.
Amends the earlier notification to substitute item (iv), designating that cases within the jurisdiction of the Director of Income Tax (Exemption), Hyderabad, shall have the prescribed authority as Chief Commissioner of Income Tax, Hyderabad-III, Hyderabad, under the enabling provisions of section 10(23C) read with the relevant income-tax rule.

Annuity plan specification under section 80C: Immediate Annuity Plan of ICICI Prudential recognised for tax purpose from the assessment year.
Central Government specifies the Immediate Annuity Plan of the ICICI Prudential Life Insurance Company Limited, as approved by the Insurance Regulatory and Development Authority, as the annuity plan for the purposes of clause (xii) of sub section (2) of section 80C of the Income tax Act, applicable from the assessment year 2007 08 and subsequent years.

Section 35AC deduction projects approved: notified institutions and eligible project costs allowed as deductions over specified approval periods.
The Central Government, on the National Committee's recommendations, notifies specified institutions and approves their eligible projects or schemes for deduction under section 35AC by listing each institution, the project description, the estimated project cost and the maximum amount of that cost allowable as a deduction for the defined approval period; certain approvals run for two financial years and others for three, and some entries expressly include corpus fund components within the deductible ceiling.

Return filing obligation: specified firms, individuals/HUF and companies must file returns in prescribed manner under amended rules.
The notification amends the proviso to rule 12(3) to require firms filing Form ITR-5 and subject to audit provisions, individuals/HUFs filing Form ITR-4 and subject to audit provisions, and companies filing Form ITR-6 to furnish their returns in the manner specified in clause (ii) or clause (iii) for the relevant assessment years.

Long-term infrastructure bonds set conditions on eligible issuers, tenure, yield, PAN and reporting for tax-qualified subscriptions.
Long-term Infrastructure Bonds are specified for tax-favored subscription with conditions: named as Long-term Infrastructure Bond; issuable only by listed public and regulated finance entities and RBI-classified Infrastructure Finance Companies; issuance volume limited to a proportion of the issuer's prior incremental infrastructure investments, where 'investment' includes debt, quasi-equity and equity; minimum tenure and lock-in with post-lock-in exit and pledge rights; mandatory subscriber PAN; yield capped to corresponding government security yields reported by FIMMDA; proceeds limited to RBI-defined infrastructure lending and subject to auditor certification and regulatory filing.

Industrial park notification under Section 80-IA: project recognized as eligible, subject to invalidation for misrepresentation or unapproved amendments.
The Central Government notifies the identified project developed and operated by the undertaking as an industrial park under the Industrial Park Scheme, recording the commencement date and making the approval conditional on accurate application materials. The approval is liable to be invalidated if the undertaking furnished misinformation or omitted material facts, if the location is already notified for another undertaking, or if the project plan is amended without prior governmental approval, with the undertaking responsible for any resulting repercussions.

Scientific research approval establishes conditions for organizations to qualify for research-expenditure deduction and reporting obligations.
Approval is conferred on Bhartiya Vaidayak Samanvaya Samiti, Nagpur, as an 'Other Institution' for scientific research under clause (ii) of sub-section (1) of section 35 read with Rules 5C and 5E, from assessment year 2007-08, subject to conditions requiring utilization of sums for research, research to be carried out by faculty or enrolled students, maintenance of separate books for research receipts and expenditures, statutory audit by a qualified accountant, and a certified statement of donations and amounts applied to research to be furnished with the audit report by the return filing due date.

Scientific research approval enables tax-favoured research funding subject to utilization, audit and reporting conditions.
Hirabai Cowasji Jehangir Medical Research Institute, Pune is approved as an Other Institution under clause (ii) of sub-section (1) of section 35 read with Rules 5C and 5E, subject to conditions: sums received must be used for scientific research carried out by faculty or enrolled students; separate books of account for research receipts and expenditure must be maintained and audited by a qualified accountant with the audit report furnished to the tax authority by the return filing date; and a separately certified statement of donations and amounts applied for research must accompany the audit report. Approval may be withdrawn for specified noncompliance or cessation of genuine research.

Research-expenditure approval conditions: donations to approved institution qualify subject to audit and separate accounts reporting.
Vedanta Cultural Foundation, Mumbai is approved as an institution eligible for research-expenditure recognition under section 35(1)(iii) for social science research, conditional on using received sums for research, conducting research through faculty or enrolled students, maintaining separate books and a separate statement of donations and research application, obtaining an audit by a qualified accountant, and furnishing the audit report and certified donations statement to the tax authority by the due date; approval may be withdrawn for failure to comply or for cessation or lack of genuine research activity.

Gratuity exemption increased for qualifying retirements, deaths or terminations on or after 24 May 2010.
The Central Government specified ten lakh rupees as the maximum exempt gratuity amount under Section 10(10)(iii) of the Income-tax Act, 1961, applying to employees who retire, become incapacitated prior to retirement, die, or whose employment is terminated on or after 24 May 2010, and superseding the earlier notification dated 20 January 1999.

Scientific research approval extends tax-deduction eligibility to Kashba Youth subject to compliance and audit requirements.
Kashba Youth is approved as an Other Institution for purposes of section 35(1)(iii) from assessment year 2010-11, conditional on applying sums to social science research, conducting research through faculty or enrolled students, maintaining separate books and a separate statement of donations and research expenditures, and furnishing a certified audit report and auditor-certified donations statement by the due date for filing the return of income.

Monthly wages specification determines compensation calculation under Employees' Compensation Act and applies from notification publication.
The Central Government, under sub-section (1B) of section 4 of the Employees' Compensation Act, 1923, has specified an amount to be treated as monthly wages for the purposes of sub-section (1), and the specification takes effect from the date of publication in the Official Gazette, thereby fixing the wage metric for calculating employees' compensation.