Tax exemption scope expanded to cover annual medical tests for members and their dependents under section ten amendment.
Amendment inserts a new clause in paragraph (1) of notification S.O. 672(E) to permit meeting the cost of annual medical tests or medical checkups of the member, his spouse and dependent children, effected by the tax authority under the statutory exemption provision.

Interest exemption for Post Office Savings Bank accounts updated; revised individual and joint account limits take effect upon publication.
The notification substitutes the prior entry to prescribe exempt limits for interest from Post Office Savings Bank Account, distinguishing individual account and joint account treatment with separate exempt ceilings, and provides that the amendment takes effect from the date of publication in the Official Gazette.

Research expenditure exemption requires approved institutions to apply funds to social science research and comply with audit and reporting conditions.
Exemption under section 35(1) is granted to the American Institute of Indian Studies as an Other Institution partly engaged in research, subject to use of sums for social science research, carrying out research through faculty or students, maintaining separate books for research receipts, obtaining an audit by a qualified accountant and furnishing the audit report and an auditor certified statement of donations and amounts applied for research to the tax authority by the due date.

Avoidance of double taxation: treaty allocates taxing rights, limits source taxation and provides cooperation measures between the States.
The Agreement establishes a bilateral framework to avoid double taxation and prevent fiscal evasion between India and Mozambique, applies to residents and taxes on income, and defines residence, permanent establishment (including inclusions, exclusions and time thresholds), and allocation of taxing rights for business profits, dividends, interest, royalties and capital gains. It provides relief by tax credit/deduction rules, a mutual agreement procedure, exchange of information, assistance in tax collection, non discrimination protections and a limitation of benefits anti abuse rule. The Government of India notified the Agreement shall be given effect in India from 1 April 2012.

Corrigendum to notification: corrects the trust's registered address in a prior income tax notification.
Corrigendum by the Ministry of Finance (Department of Revenue) formally corrects a prior income tax notification by replacing the trust address "115, Jolly Bhawan No. 1, 10, New MARINE Lines, Mumbai - 400020" with "08, Jolly Bhavan No. 1, 10, New Marine Lines, Mumbai - 400020," as recorded in the Gazette.

Criminal tax enforcement strengthened: new directorate to investigate, prosecute and coordinate cross-border tax crimes.
A Directorate of Income-tax (Criminal Investigation) (DCI) is established within the CBDT to investigate and prosecute offences under direct tax laws, including cross-border and inter-State financial crimes; functions include intelligence collection, fund-source investigations, issuance of show-cause notices, filing prosecutions, engaging special prosecutors and experts, witness protection, and domestic and international information-sharing. The DCI will be headed by a Director General located in New Delhi, operate under Member (Investigation) control, maintain eight zonal directorates led by Commissioners, and use existing Intelligence and CIB posts pending notification of final staffing and recruitment rules.

Specified income from an international sporting event notified for designated persons where tax liability remains with those persons.
The Government notifies the International Cricket Council Cricket World Cup, 2011 as an international sporting event and specifies certain ICC entities as the persons whose income arising in India and directly related to the event, from the listed agreements (primarily sponsorships), shall be treated as specified income, provided the tax liability is not transferred and remains with those designated persons.

PAN requirement scope expanded to cover life insurance premiums and high value bullion and jewellery payments and card issuance.
Amendment to rule 114B expands the scope of PAN reporting by: substituting "tour operator" with "tour operator, or to an authorized person" under FEMA; replacing "for issue of a credit card" with "for issue of a credit or debit card"; and inserting clauses requiring PAN where annual life insurance premium payments meet the prescribed aggregate threshold and where dealer payments at or above the prescribed single time amount or against a bill for purchase of bullion or jewellery trigger PAN reporting.

Accounting and classification of grants-in-aid: recognition, revenue treatment, valuation and mandatory disclosure requirements for governments.
IGAS 2 requires cash grants to be recognized by the grantor on disbursement and by the grantee on receipt; in-kind grants recognized at receipt where value exists and valued using grantor cost or market/replacement value. Grants disbursed are classified as revenue expenditure in the grantor's accounts and grants received as revenue receipts in the grantee's accounts, including pass-through grants. Creation of capital assets by grantees does not convert grantor expenditure to capital except where expressly authorised; such exceptions and details of funds released and funds allocated for capital formation must be disclosed in the prescribed format.

Exchange of tax information enabling mutual assistance and information-gathering measures to support tax administration and enforcement.
The Agreement requires competent authorities to exchange information foreseeably relevant to administration and enforcement of taxes, empowers authorities to use information-gathering measures including bank and ownership data and depositions, imposes procedural requirements for requests and prompt responses, allows refusal on specified grounds including public policy and privilege, mandates confidentiality and restricted use of received information, and addresses costs, implementation legislation, mutual agreement procedures, entry into force, and termination with survival of confidentiality obligations.

Exchange of tax information: enables mutual assistance in tax administration and enforcement under defined confidentiality and procedural safeguards
The Agreement establishes reciprocal exchange of information between competent authorities to assist in tax administration and enforcement, requiring requests to state taxpayer identity, period, nature and legal basis, and grounds that information exists within the requested Party's jurisdiction. Requested authorities must use available information-gathering measures, may provide depositions and authenticated records where permitted, acknowledge requests and notify deficiencies within 60 days, and either supply information or explain obstacles or refusal within 90 days. Information is subject to confidentiality and limited disclosure; specified grounds permit declining assistance.

Rate of interest for employees' provident fund prescribed by government, setting a statutory rate effective prospectively.
The Central Government, under clause (b) of rule 6 of Part A of the Fourth Schedule to the Income-tax Act, 1961, fixes 9.5 per cent. as the rate of interest for employee provident fund purposes, superseding the prior notification and applying with effect from 1 September 2010.

Research expenditure exemption approved for Centre for Social Studies, subject to utilization, audit, reporting and compliance conditions.
Approval granted to Centre for Social Studies, Surat as an Other Institution partly engaged in research, subject to conditions that sums received must be utilized for social science research carried out by faculty or enrolled students; maintenance of books of account; audit by a qualified accountant with the audit report filed with the income tax return; and a separate auditor certified statement of donations and amounts applied to research. Approval is withdrawable for failure to maintain accounts, furnish required reports, cease genuine research, or otherwise fail statutory compliance.

Research expenditure exemption granted; society approved for tax benefit subject to audit, donation tracking and bona fide research compliance.
Approval is granted to the Indian Society of International Law as an Other Institution partly engaged in research for the research-expenditure tax exemption, effective from assessment year 2010-11, on condition that funds are used for social science research; research is carried out by faculty or enrolled students; books are maintained and audited with the audit report furnished to the tax authority by the income-tax return due date; and a separate auditor-certified statement of donations and amounts applied to research is maintained. Approval may be withdrawn for noncompliance or cessation of genuine research activity.

Scientific research exemption approved for an academic institution subject to utilization, separate accounts, audit and reporting conditions.
Approval is granted to Chettinad Academy of Research and Education as an Other Institution under clause (ii) of sub-section (1) of section 35 read with Rules 5C and 5E from assessment year 2010-11, subject to use of sums for scientific research, research carried out by faculty or enrolled students, maintenance of separate books of account for research funds with an auditor's report filed by the income-tax return due date, and a certified statement of donations and sums applied for research; approval is withdrawable for specified failures to comply.

Section 35AC eligibility extended for Shri Saibaba Sanstha Trust project for a further three-year period.
The Central Government notifies the Shri Saibaba Sanstha Trust (Shirdi) scheme "Development of integrated socio economical health, education and essential facilities" as an eligible project under Section 35AC for a further three-year period commencing with financial year 2011-12, without any change in the approved cost of Rs. 75.00 crore, following the National Committee's recommendation under the applicable rule that the project is being executed properly.

Section 35AC eligibility extended for Umeed healthcare project for a further period with unchanged approved cost.
The Central Government notifies the "Health care project" by Umeed at the Hauz Khas address as an eligible project or scheme under the Explanation to section 35AC, following the National Committee's recommendation under sub rule (5) of rule 11M. Eligibility is extended for a further period commencing with financial year 2011-12 for three years, without any change in the previously approved cost of Rs. 4.50 crore.

Eligible project designation under section 35AC extended for Human Development Foundation of Sikkim, preserving approved project cost.
The Central Government, under the Explanation to section 35AC, notifies the Educational Institution project of Human Development Foundation of Sikkim as an eligible project or scheme for a further three financial years commencing with 2011-12, without any change in the approved project cost of Rs. 20 crore, following a recommendation by the National Committee that the project is being executed properly.

Section 35AC eligibility extended for Multi Organ Harvesting and Sharing Network; further eligibility period granted for continued tax incentive.
Notification extends tax-incentive eligibility under Section 35AC to the "Multi Organ Harvesting and Sharing Network in India" run by Mohan Foundation for a further three-year period commencing with financial year 2011-12, based on the National Committee's recommendation that the project is being executed properly and is likely to continue beyond six years, with no change to the approved project cost.

Tax deduction eligibility for approved charitable hospital projects expanded by increasing allowable project cost and corpus fund.
The Central Government, following the National Committee's recommendation that the hospital project is properly executed, revises the previously notified maximum allowable project cost and corpus fund for an approved charitable deduction, substituting the prior cost and corpus figures with the revised amounts in the schedule entry for K.M.G. General Hospital carried out by Kacheria Mojilal Gordhandas General Hospital Trust.