TaxTMI 
TaxTMI 
Amendment of section 10.
X X X X Extracts X X X X
X X X X Extracts X X X X
....tributed income referred to in sub-clause (ii) shall include only so much of the amount which is chargeable to tax in the hands of the offshore banking unit under section 115AD."; (c) in clause (10D),-- (i) in the second proviso, the words, brackets, figures and letter "or the Explanation to sub-section (2A) of section 88, as the case may be" shall be omitted; (ii) for the sixth proviso, the following provisos shall be substituted with effect from the 1st day of April, 2024, namely:-- "Provided also that nothing contained in this clause shall apply with respect to any life insurance policy other than a unit linked insurance policy, issued on or after the 1st day of April, 2023, if the amount of premium payable for any of the previous years during the term of such policy exceeds five lakh rupees: Provided also that if the premium is payable by a person for more than one life insurance policy other than unit linked insurance policy, issued on or after the 1st day of April, 2023, the provisions of this clause shall apply only with respect to those life insurance policies other than unit linked insurance policies, where the aggregate amount ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....item (B), the following item shall be substituted, namely:- "(B) if he is not so satisfied, pass an order in writing,-- (I) in a case referred to in clause (ii) or clause (iii) of the first proviso, rejecting such application and also cancelling its approval; (II) in a case referred to in subclause (B) of clause (iv) of the first proviso, rejecting such application, after affording it a reasonable opportunity of being heard;"; (b) for clause (iii), the following clause shall be substituted, namely:-- "(iii) where the application is made under sub-clause (A) of clause (iv) of the said proviso or the application made under clause (iv) of the said proviso, as it stood immediately before its amendment by the Finance Act, 2023, pass an order in writing granting approval to it provisionally for a period of three years from the assessment year from which the approval is sought, and send a copy of such order to the fund or trust or institution or university or other educational institution or hospital or other medical institution:"; (II) in the third proviso,-- (i) in Explanation 2,-- (a) in clause (i),-- ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or subclause (via), or trust or institution registered under section 12AB, as the case may be, shall be treated as application for charitable or religious purposes only to the extent of eighty-five per cent. of such amount credited or paid."; (ii) in Explanation 3, in clause (c), for the words "furnished on or before", the words "furnished at least two months prior to" shall be substituted; (III) in the fifteenth proviso, in Explanation 2,-- (A) in clause (d), for the words "attained finality.", the words "attained finality; or" shall be substituted; (B) after clause (d), the following clause shall be inserted, namely:-- "(e) the application referred to in the first proviso of this clause is not complete or it contains false or incorrect information."; (IV) in the nineteenth proviso, in the Explanation, with effect from the 1st day of April, 2024,-- (a) after the words, brackets and figures "notified under clause (46)", the word, brackets, figures and letter "or (46A)" shall be inserted; ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er of non-deliverable forward contracts or offshore derivative instruments or over-the-counter derivatives entered into with an offshore banking unit of an International Financial Services Centre as referred to in sub-section (1A) of section 80LA, which fulfils such conditions as may be prescribed, shall not be included in the total income. It is further proposed to include distribution of income on offshore derivative instruments also within the ambit of the said clause. It is also proposed to insert a proviso to provide that the amount of distributed income referred to in the said clause shall include only so much of the amount which is chargeable to tax in the hands of the offshore banking unit under section 115AD. These amendments will take effect from 1st April, 2024 and, will, accordingly apply in relation to the assessment year 2024-2025 and subsequent assessment years. Clause (10D) of the said section, inter alia, provides exemption to any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy. It is also proposed to omit the reference of Explanation to sub-section (2A) of section 88 in the second proviso to cla....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s of this clause are applicable to a notified news agency for a specified period of time not exceeding three assessment years. It is also proposed to insert fourth proviso to clause (22B) of said section so as to provide that nothing contained in this clause shall apply to any income of the news agency of the previous year relevant to the assessment year beginning on or after 1st April, 2024. This amendment will take effect from 1st April, 2024 and will, accordingly, apply in relation to the assessment year 2024-2025 and subsequent assessment years. Clause (23BBF) of said section provides income tax exemption to any income of the North-Eastern Development Finance Corporation Limited. This exemption has been withdrawn for assessment year beginning on the 1st day of April, 2010 and any subsequent assessment year or years. It is proposed to omit the said clause with effect from 1st April, 2023. Clause (23C) of the said section provides exemption to the income of certain entities. Sub-clauses (iv), (v), (vi) and (via) of clause (23C) of said section provide exemption to the income received by any person on behalf of any fund or trust or institution or university or ot....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... after affording it a reasonable opportunity of being heard. It is also proposed to substitute clause (iii) of the second proviso so as to provide that where the application is made under sub-clause (A) of clause (iv) of the first proviso or the application made under clause (iv) of the first proviso as it stood immediately before its amendment by the Finance Act, 2023, the Principal Commissioner or Commissioner shall pass an order in writing granting approval to it provisionally for a period of three years from the assessment year from which the approval is sought, and send a copy of such order to the fund or trust or institution or university or other educational institution or hospital or other medical institution These amendments will take effect from 1st October, 2023. It is also proposed to insert a second proviso to clause (i) of Explanation 2 to the third proviso of clause (23C) so as to provide that the provisions of the first proviso shall apply only if there was no violation of the conditions specified in the twelfth, thirteenth and twenty- first proviso, and those specified in Explanation 2 and Explanation 3, of the said clause, at the time the application w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....an the amount referred to in the twelfth proviso, to any other fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via), or trust or institution registered under section 12AB, as the case may be, shall be treated as application for charitable or religious purposes only to the extent of eighty-five per cent. of such amount credited or paid. This amendment will take effect from 1st April, 2024 and will, accordingly, apply in relation to the assessment year 2024-2025 and subsequent assessment years. It is also proposed to amend clause (c) of Explanation 3 to third proviso of clause (23C) to provide that the statement of accumulation shall be furnished at least two months prior to the due date specified under sub-section (1) of section 139 for furnishing the return of income for the previous year. This amendment will take effect from 1st April, 2023 and will, accordingly, apply in relation to the assessment year 2023-2024 and subsequent assessment years. It is also proposed to insert clause (e) to Explanation 2 to the fi....