AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
Notes on clauses
X X X X Extracts X X X X
X X X X Extracts X X X X
..... Rates for deduction of tax at source during the financial year 2019-2020 from income other than "Salaries" 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 subj....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ate of five per cent. Marginal relief will be provided. In all other cases (including sections 115-O, 115QA, 115R, 115TA, 115TD, etc.), the surcharge will be applicable at the rate of twelve per cent. The existing "Education Cess" and "Secondary and Higher Education Cess" currently being levied in all cases covered under Part 1 of the First Schedule shall be substituted by a new cess by the name of "Health and Education Cess": at the rate of four per cent. However, in financial year 2019-2020, in the cases covered under Part II and Part III of the First Schedule, the "Health and Education Cess" at the rate of four per cent. shall continue to be levied. In the cases covered under Part II of the First Schedule, there will be no levy of the "Health and Education Cess" on tax deducted or collected at source in the case of domestic company and any other person who is resident in India. The cess would apply on tax deducted at source in the case of salary payments. It would also be levied in the cases of persons not resident in India and companies other than domestic company. Clause 3 of the Bill seeks to amend section 2 of the Income-tax Act relating to definitions. Clause (1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....been established or incorporated in the previous year, the fund shall be required to fulfill the condition of maintaining the corpus of one hundred crore rupees within a period of six months from the last day of the month of its establishment or incorporation, or at the end of such previous year, whichever is later. Further, clause (m) of said sub-section provides that the remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf is not less than the arm's length price of the said activity. It is proposed to amend the said clause so as to provide that the remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf is not less than the amount calculated in such manner as may be prescribed instead of the arm's length price of the said activity. These amendments will take effect retrospectively from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent assessment years. Clause 6 of the Bill seeks to amend section 10 of the Incometax Act relating to incomes not included in total....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the Incometax Act relating to procedure for registration. Sub-clause (a) of sub-section (1) of the said section, inter alia, provides that while considering the application of a trust or institution, the Principal Commissioner or Commissioner may call for documents or information necessary in order to satisfy himself about the genuineness of its activities. It is proposed to substitute the said sub-clause so as to provide that besides the genuineness of its activities, the Principal Commissioner or Commissioner shall also satisfy himself about compliance to the requirements of any other law which is material for the purpose of achieving its objects. Sub-clause (b) of sub-section (1) of the said section, inter alia, provides that after satisfying himself about the objects of the trust or institution and the genuineness of its activities the Principal Commissioner or Commissioner shall pass an order registering or refusing to register the said trust or institution. It is proposed to amend the said sub-clause so as to provide that the Principal Commissioner or Commissioner, besides satisfying himself about the objects of the trust or institution and the genuineness of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ious year in which such expenditure is incurred by him. Clause (f) of sub-section (8) of the said section provides that the term 'any expenditure of capital nature' shall not include any expenditure in respect of which the assessee makes payment or an aggregate of payments exceeding ten thousand rupees to a person in a day through any mode other than an account payee cheque or an account payee bank draft or using the electronic clearing system through a bank account. It is proposed to amend the said clause (f) so as to empower the Board to make rules to provide that payment made through such other electronic mode as may be prescribed shall also be allowed as deduction. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 10 of the Bill seeks to amend section 40 of the Income tax Act relating to amounts not deductible. Sub-clause (i) of clause (a) of the said section provides that where, in case of any assessee, tax is to be deducted at source under Chapter XVII-B on payment of any amount in the nature of interest (not being interest on a loan issu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bed shall also be allowed as deduction. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 12 of the Bill seeks to amend section 43 of the Incometax Act relating to definitions of certain terms relevant to income from profits and gains of business or profession. Sub-section (1) of the said section defines the term "actual cost" to mean the actual cost of the assets to the assessee, reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any other person or authority. The second proviso to sub-section (1) of the said section provides that where the assessee incurs any expenditure for acquisition of any asset or part thereof in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account, exceeds ten thousand rupees, such expenditure shall be ignored for the purposes of determination of actual cost. It is proposed to amend the said second proviso so ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....red to in that clause which has been converted into a loan or borrowing shall not be deemed to have been actually paid. It is also proposed to define the expressions "deposit taking non-banking financial company", "non-banking financial company" and "systemically important non-deposit taking non-banking financial company" in the said Explanation 4 to the said section. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 14 of the Bill seeks to amend section 43CA of the Incometax Act relating to special provision for value of consideration for transfer of assets other than capital assets in certain cases. Sub-section (3) of the said section provides that where the date of agreement fixing the value of consideration for the transfer of the asset and the date of registration of such transfer of asset are not the same, then the full value of consideration for transfer of such asset shall be the stamp duty value on the date of the agreement. Sub-section (4) of the said section provides that the provisions of sub-section (3) shall apply only in those cases w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....des that notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent. of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession". The proviso to the said sub-section (1) provides that in respect of the amount of total turnover or gross receipts which is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account during the previous year or before the due date specified in sub-section (1) of section 139 in respect of that previous year, a sum equal to six per cent. or higher shall be deemed to be the profits and gains of business and profession. It is proposed to amend the said proviso so as to empower the Board to make rules to provide that an eligible assessee can opt for presumptive taxation scheme if h....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account on or before the date of agreement for transfer of the asset. It is proposed to amend the said second proviso 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 any other electronic mode as may be prescribed. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 19 of the Bill seeks to amend section 50CA of the Incometax Act relating to special provision for full value of consideration for transfer of share other than quoted share. The said section, inter alia, provides that where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being share of a company other than a quoted share, is less than the fair market value of such share determined in such manner as may be prescribed, the value so determined shall, for the purposes of computing capital gai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....twenty-five per cent. voting rights after the subscription in shares in the eligible company. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 21 of the Bill seeks to amend section 56 of the Incometax Act relating to income from other sources. Clause (viib) of sub-section (2) of the said section provides that where a company, not being a company in which the public are substantially interested, receives in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall not be charged to tax, if the consideration for issue of shares is received by a venture capital undertaking from a venture capital company or a venture capital fund or by a company from a class or classes of persons as may be notified by the Central Government in this behalf. It is proposed to amend the said clause so as to provide that where a company, not being a company in which the public are substantially inte....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f has been received by way of any other electronic mode as may be prescribed. The proviso to the said clause (x) provides that where any person receives, in any previous year, from any person or persons any property without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property or consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, then the aggregate fair market value of such property as exceeds such consideration shall be the income of the person receiving such property. It is proposed to insert a new clause (XI) in the proviso to the said clause (x) so as to provide that any sum of money or any property received from such class of persons and subject to such conditions, as may be provided by rules shall not be the income of such persons. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 22 of the Bill seeks to substitute section 79 of the Incometax Act relating to carry forward and se....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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. Clause (d) of sub-section (2) to the said section provides that nothing contained in this section shall apply to a company, and its subsidiaries and the subsidiary of such subsidiary, where,-- (i) the National Company Law Tribunal, on a petition 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 which are 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 the National Company Law Tribunal under section 242 of the Companies Act, 2013 after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner. The Explanation to the section specifies that a company shall be a subsidiary of other company, if such other c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ew sections 80EEA and 80EEB in the Income-tax Act relating to deduction in respect of interest on loan taken for certain house property and deduction in respect of purchase of electric vehicle. The proposed new section 80EEA seeks to provide for deduction in respect of interest on loan taken for residential house property from any financial institution up to one lakh and fifty-thousand rupees subject to the conditions specified therein. The proposed new section 80EEB seeks to provide for a deduction up to one lakh and fifty thousand rupees in respect of interest on loan taken for purchase of an electric vehicle from any financial institution subject to the conditions specified therein. These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 26 of the Bill seeks to amend section 80-IBA of the Income-tax Act relating to deductions in respect of profits and gains from housing projects. The provisions of the said section, inter alia, provide that where the gross total income of an assessee includes any profits and gains derived from the business of developing....
X X X X Extracts X X X X
X X X X Extracts X X X X
....alia, provides that where the gross total income of an assessee, (i) 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; or (ii) 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 (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 (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, and thereafter; (b) fifty per cent. of such income for five consecutive assessment years. It is proposed to amend the said section by substituting subsection (1) with sub-section (1) and (1A) so as to provide that the deduction specified in the said section in respect of an an Unit of International Financial Servic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ore 1st April, 2016. It is proposed to amend clause (iii) of the said sub-section so as to provide that the secondary adjustment will be applicable where the primary adjustment to transfer price is determined by an advance pricing agreement entered into by the assessee under section 92CC on or after 1st April, 2017. It is also proposed to insert a second proviso in sub-section (1) so as to provide that no refund of any taxes paid, if any, by virtue of provisions of sub-section (1) as they stood immediately before their amendment by this Bill, shall be claimed and allowed. Sub-section (2) of said section, inter alia, provides that the excess money available to the associated enterprise shall be repatriated to India from such associated enterprise within prescribed time and in case of non-repatriation, interest thereon is to be computed deeming the same as advance to such associated enterprise. It is proposed to amend said sub-section so as to provide that the interest shall be computed on the excess money or part thereof and that the excess money can be repatriated from any of the associated enterprises of the assessee, which is not resident in India, besides the associa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....information and document shall be kept and maintained. Sub-section (3) of the proposed section provides that 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 which may be further extended upto thirty days on such person's application. Sub-section (4) of the proposed section provides that the constituent entity 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. These amendments will take effect from the 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent assessment years. Clause 32 of the Bill seeks to amend section 111A of the Incometax Act relating to tax on short-term capital gains in certain cases. Clause (a) of the Explanation to the said section provides that the "....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing depreciation) brought forward shall also be allowed to be reduced from the book profit in case of a company, and its subsidiary and the subsidiary of such subsidiary, where, the National Company Law 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. It is also proposed to amend the said section so as to provide that 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. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. Clause 35 of the Bill seeks to amend section 115-O of the Income-tax Act relating to tax on distributed profits of domestic companies. Sub-section (8) of the said section provides that notwithstanding anything contained in this section, no tax on distributed profits shall be chargeable in respect of the total income of a company,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....seeks to amend section 115UB of the Income-tax Act relating to tax on income of investment fund and its unit holders. Clauses (i) of sub-section (2) of said section, inter alia, provides that the loss of an investment fund for any previous year, being the net result of computation of total income of the investment fund, without giving effect to the exemption to income other than business income, under any head of income which cannot be or is not wholly set-off against income under any other head of income of the said previous year, shall be allowed to carry forward and set-off in accordance with the provisions of Chapter VI. Clause (ii) of said sub-section provides that such loss shall not accrue or arise or received by the unit holder. It is proposed to substitute the said sub-clauses so as to provide that,-- (i) 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, allowed carry forward and set off in accordance with the provisions of Chapter VI; and such loss shall not accrue, or arise or received by the unit holder; and (ii) the other loss, if any, shall no....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020- 2021 and subsequent years. Clause 40 of the Bill seeks to amend section 139A of the Incometax Act relating to permanent account number. Sub-section (1) of the said section, inter alia, provides that every person specified therein and who has not been allotted a permanent account number shall apply to the Assessing Officer for allotment of a permanent account number. It is proposed to insert a new clause (vii) in the said sub-section so as to provide that every person, who intends to enter into such transaction, as may be prescribed by the Board in the interest of revenue, shall also apply to the Assessing Officer for allotment of a permanent account number. It is further proposed to insert a new sub-section (5E) in the said section to provide that 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, has not been allotted a permanent account number and possesses the Aadhaar number, may, furnish or intimate or quote his Aadhaar number in li....
X X X X Extracts X X X X
X X X X Extracts X X X X
....de that if a person fails to intimate the Aadhaar number, the permanent account number allotted to such person shall be made inoperative after the notified date in the manner as may be provided by rules. This amendment will take effect from 1st September, 2019. Clause 42 of the Bill seeks to amend section 140A of the Incometax Act relating to self-assessment. The said section 140A, inter alia, provides for payment of selfassessment tax. It is proposed to insert a new clause (iia) in sub-section (1) of the said section, so as to provide that "any relief of tax claimed under section 89" shall be taken into account for the purpose determining tax payable under the said sub-section. It is further proposed to insert a new sub-clause (ba) in clause (i) of sub-section (1A) of the said section so as to provide that "any relief of tax claimed under section 89" shall be taken into account for the purpose of determining interest payable under the said subsection. It is also proposed to insert a new clause (ia) in the Explanation to sub-section (1B) of the said section so as to provide that for the purpose of determining "assessed tax" under the said sub-section, "any relief ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the expression "consideration for immovable property" to 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. This amendment will take effect from 1st September, 2019. Clause 46 of the Bill seeks to insert new sections 194M relating to payment of certain sums by certain individuals or Hindu undivided family and 194N relating to payment of certain amounts in cash in the Income-tax Act. Sub-section (1) of the proposed new section 194M seeks to provide for levy of tax deduction at source at the rate of five per cent. on any sum, or aggregate of sums, paid by 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) to a resident for carrying out any work (including supply of labour for carrying out any work) or by way of fees for professional services at the time of credit to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on, tax shall be deducted only on that proportion of the sum which is so chargeable. It is proposed to amend the said sub-section so as to empower the Board to prescribe the form and manner of making such application and the manner of determining the appropriate proportion of such sum chargeable. Sub-section (7) of the said section empowers the Board to specify a class of persons or cases, where the person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall make an application to the Assessing Officer to determine, by general or special order, the appropriate proportion of sum chargeable to tax. It is proposed to amend the said sub-section so as to empower the Board to prescribe the form and manner of making such application and the manner of determining the appropriate proportion of such sum chargeable to tax. These amendments will take effect from 1st November, 2019. Clause 48 of the Bill seeks to amend section 197 of the Incometax Act relating to certificate for deduction at lower rate. It is proposed to amend sub-section (1) of the said section so as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the Bill seeks to substitute section 206A of the Income-tax Act relating furnishing of quarterly return in respect of payment of interest to residents without deduction of tax. Sub-section (1) of the proposed 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 proposed section provides that the Board may, by rules, 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aid section. These amendments will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years. Clause 53 of the Bill seeks to amend section 234B of the Incometax Act relating to interest for defaults in payment of advance tax. The said section 234B, inter alia, provides for charging of interest for defaults in payment of advance tax. It is proposed to insert a new clause (ia) in Explanation 1 to sub-section (1) of the said section, so as to provide that "any relief of tax allowed under section 89" shall also be reduced from the tax on the total income for the purpose of charging interest under the said section. These amendments will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years. Clause 54 of the Bill seeks to amend section 234C of the Incometax Act relating to interest for deferment of advance tax. The said section 234C, inter alia, provides for charging of interest for deferment of advance tax. It is proposed to insert a new clause (ia) in the Explanation to t....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., 2019. Clause 58 of the Bill seeks to amend section 269ST of the Income-tax Act relating to mode of undertaking transactions. The said section prohibits a person from receiving 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 otherwise than by an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account. It is proposed to amend the said section so as to empower the Board to make rules to prescribe any other electronic mode of undertaking transactions. This amendment will take effect from 1st September, 2019. Clause 59 of the Bill seeks to insert a new section 269SU of the Income-tax Act relating to acceptance of payment through prescribed electronic modes. It is proposed to provide that every person, carrying on business, shall provide facility for accepting payment through the prescribed electronic modes, in addition to the facility for other electronic modes of payment, if any, being provided by such person, if his total sales, turnover or gross receipts, as the ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncome as increased by the maximum amount not chargeable to tax as if it were the total income. These amendments will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017- 2018 and subsequent assessment years. Clause 62 of the Bill seeks to insert a new section 271DB of the Income-tax Act relating to penalty for failure to comply with provisions of section 269SU. It is proposed to provide that if a person who is required to provide facility for accepting payment through the prescribed electronic modes of payment referred to in section 269SU, fails to provide such facility, he shall be liable to pay, by way of penalty, a sum of five thousand rupees, for every day during which such failure continues. It is further proposed that the penalty shall not be imposable if the person proves that there were good and sufficient reasons for such failure. It is also proposed that any such penalty shall be imposed by the Joint Commissioner. This amendment will take effect from 1st November, 2019. Clause 63 of the Bill seeks to amend section 271FAA of the Income-tax Act relating to penalty for furnishing inaccurate statement of f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....all not be proceeded against under the said section, for failure to furnish the return of income in due time, if the tax payable by such person, not being a company, on the total income determined on regular assessment does not exceed three thousand rupees. It is proposed to amend sub-clause (b) of clause (ii) of the said proviso so as to provide reference of self-assessment tax, if any, paid before the expiry of the assessment year, and tax collected at source in the said proviso, and also to increase the threshold limit of tax payable from three thousand rupees to ten thousand rupees in the said proviso. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years. 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. Sub-section (1) of the said section, inter alia, specifies the persons who are required to furnish statement in respect of specified financial transaction or reportable account. It is proposed to insert a new clause (l) in the said sub-section so....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rule provides that no sale of immovable property attached towards the recovery of tax, penalty, etc., shall be made after the expiry of three years from the end of the financial year in which the order giving rise to a demand of any tax, interest, fine, penalty or any other sum, for the recovery of which the immovable property has been attached, has become conclusive or final, as the case may be. It is proposed to amend the said sub-rule so as to extend the said period from three years to seven years. It is further proposed to insert a new proviso in the said sub-rule so as to provide that the Board may, for reasons to be recorded in writing, extend the aforesaid period by a further period not exceeding three years. This amendment will take effect from 1st September, 2019. Customs Clause 69 of the Bill seeks to amend sub-section (1) of section 41 of the Customs Act so as to provide that the facility to furnish departure manifest shall, in addition to the person-in-charge of the conveyance, also be given to other person notified by the Central Government. Clause 70 of the Bill seeks to insert a new chapter XIIB relating to verification of identity and compliance in....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... so as to empower the proper officer to provisionally attach any bank account for safeguarding the Government revenue and prevention of smuggling, for a period not exceeding six months. It is also proposed that Principal Commissioner of Customs or Commissioner of Customs may, for reasons to be recorded in writing, extend the period of provisional attachment of a bank account to a further period not exceeding six months and inform the person whose bank account is provisionally attached before the expiry of the period so specified. Clause 74 of the Bill seeks to amend section 110A of the Customs Act so as to empower an adjudicating authority to release bank account provisionally attached under section 110 to the bank account holder on fulfilment of certain conditions. Clause 75 of the Bill seeks to insert a new section 114AB in the Customs Act. The proposed section seeks to provide that any person who has obtained any instrument by fraud, collusion, wilful misstatement or suppression of facts and such instrument has been utilised by such person or any other person for discharging duty, such person to whom the instrument was issued shall be liable for penalty not exceeding the f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ction 25 of the Customs Act, 1962 and sub-section (12) of section 3 of the Customs Tariff Act, 1975 in the manner specified in Third Schedule, so as to change the tariff classification of Stearic acid from "3823 10 90" to "3823 11 00". Clause 84 of the Bill seeks to give retrospective effect to the notification number G.S.R. 1270(E), dated the 31st December 2018, which was issued in exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 and subsection (12) of section 3 of the Customs Tariff Act, 1975, to amend the notification number G.S.R. 665 (E), dated the 2nd August, 1976, on the temporary importation of vehicles as per the Convention on the Temporary Importation of Private Road Vehicles to bring it into force on and from the 1st July, 2017, so as to give retrospective exemption from the integrated tax leviable under section 3 of the Customs Tariff Act, 1975. Customs Tariff Clause 85 of the Bill seeks to insert sub-section (1A) under section 9 of the Customs Tariff Act, so as to provide anticircumvention provision in case of Countervailing duty. Clause 86 of the Bill seeks to amend sub-section (1) of section 9C of the Customs Tari....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eks to amend section 10 of the Central 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 s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....moval 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 subsection (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 sam....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eeks 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 durin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....anking 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion 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 "Natio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nder 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 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tronic 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 subsection (1) of the said section for formulation of criteria for allocation of funds for development and maintenance of state ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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. 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 authorit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ee" 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 in 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 s....