TaxTMI 
TaxTMI 
Notes on Clauses
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.... of the Bill deals with apportionment of income between spouses governed by Portuguese Civil Code. Clause 11 of the Bill seeks to provide for incomes not included in total income and, inter alia, provides for details of certain income enumerated in Schedules II, III, IV, V and VI which are not to be included in computing the total income of any person for a tax year. It also deals with certain persons enumerated in Schedule VII who are not chargeable to tax under the proposed legislation for a tax year. Clause 12 of the Bill provides for income not to be included in total income of political parties and electoral trust enumerated in Schedule VIII which are not to be included in computing their total income for a tax year. Clause 13 of the Bill provides for classification under various heads of income for the purposes of charge of income-tax and computation of total income. Clause 14 of the Bill provides for disallowance of certain expenditure incurred in relation to income which does not form part of the total income and expenditure in relation to such income. Clause 15 of the Bill provides for under the head salaries. Clause 16 of the Bill provides for different ....
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....uction of stock, provision for bad debts, written off, bonus, commission paid to employees, interest paid on borrowed capital. Clause 33 of the Bill provides for deduction in respect of tangible and intangible assets owned and used for the purposes of business. Clause 34 of the Bill provides for general conditions for allowing expenditure (other than capital and personal expenditure) incurred wholly and exclusively for the purposes of business or profession being carried on by assessee. Clauses 35 and 36 of the Bill provides for amounts not to be allowed while computing the income under the head "Profit and gains of business or profession". Clause 37 of the Bill provides for certain deductions allowed on certain expenditures which is to be made only on actual payment basis. Clause 38 of the Bill provides for certain sums that are liable to be deemed as profit and gains of business or profession where the sums have been earlier allowed as expenditure or deduction for the purpose of computation of income. Clause 39 of the Bill provides for certain definitions such as actual cost, written down value, speculative transactions, etc. Clause 40 of the Bill provides fo....
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....ssets in certain cases and for adoption of stamp duty value as full value of consideration at the time of transfer of assets (other than capital assets) in specific cases. Clause 54 of the Bill provides for deduction of certain capital expenditure expenses incurred in business of prospecting for mineral oils Clause 55 of the Bill provides for the manner of computation of profits or gains in cases of insurance business. Clause 56 of the Bill provides for computation of interest income of specified financial institutions. Clause 57 of the Bill provides for revenue recognition for construction and service contracts. Clause 58 of the Bill provides for special provision for computing profits and gains of business of profession on presumptive basis in case of certain residents. Clause 59 of the Bill provides for chargeability of royalty and fee for technical services in hands of non-residents. Clause 60 of the Bill seeks to provide the manner for computation for allowing the deduction of head office expenditure in case of non-residents. Clause 61 of the Bill provides for special provision for computation of income on presumptive basis in respect of certain busines....
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....sideration in certain cases and special provision for full value of consideration for transfer of share other than quoted share, respectively. Clause 80 of the Bill provides for the fair market value shall be deemed to the full value of consideration as a result of transfer of a capital asset by an assessee where the consideration is not ascertainable or cannot be determined. Clause 81 of the Bill provides for advance money received regarding the transfer of a capital asset. Clause 82 of the Bill provides for the capital gains arising from profits on sale of residential properties. Clause 83 of the Bill provides for capital gains on transfer of land used for agricultural purposes not to be charged in certain cases. Clause 84 of the Bill provides for capital gains on compulsory acquisition of lands and buildings not to be charged in certain cases. Clause 85 of the Bill provides for capital gains not to be charged on investment in certain specific bonds. Clause 86 of the Bill provides for non-chargeability of capital gains in specific scenarios of investment in residential house. Clauses 87 and 88 of the Bill provide for exemption of capital gains on transfer ....
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....vides that in computing the total income of an assessee, there shall be included all income on which no income-tax is payable under sub-part 4 of part A of Chapter XVII. Clause 102 of the Bill provides for the circumstances or conditions in which any sum found credited in the books of account maintained by the assessee shall be considered as unexplained credits and be included in the total income of the assessee. Clause 103 of the Bill provides for unexplained investment. It also seeks to provide the circumstances or conditions in which any investment made by the assessee shall be deemed as unexplained investment and be included in the total income of the assessee. Clause 104 of the Bill provides for the circumstances or conditions in which any asset owned by or belonging to the assessee shall be deemed as unexplained asset and be included in the total income of the assessee. Clause 105 of the Bill provides for the circumstances or conditions in which any expenditure incurred by the assessee shall be deemed to be unexplained expenditure and be included in the total income of the assessee. Clause 106 of the Bill seeks to provide that where any amount is borrowed on a ....
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....ible in certain cases and also provides that subject to certain conditions specified therein, carry forward and set off of losses shall not be permissible in cases including constitution of firm and on succession of a business or profession by another person in such capacity or shall be permissible in case of change in shareholding of a company. Clause 120 of the Bill seeks to provide that no set off of loss or unabsorbed depreciation shall be allowed against undisclosed income, consequent to search, requisition and survey. Clause 121 of the Bill provides for submission of return for losses and also that no loss shall be carried forward and set off which has not been determined in pursuance of a return filed. Clause 122 of the Bill provides for the statutory compliance requirements, time limits and overall limits for claiming the deductions enumerated in Chapter VIII to eligible. Clause 123 of the Bill provides for deduction for insurance premia, deferred annuity, contributions to provident fund, etc. and to provide deduction to an assessee being an individual or Hindu undivided family in respect of payments made on account of insurance premia, deferred annuity, contrib....
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.... seeks to provide deduction to eligible start up in respect of profits and gains of eligible businesses, which have high potential of employment generation, subject to certain conditions specified therein. Clause 141 of the Bill provides for deduction in respect of profits and gains from certain industrial undertakings and provides for deduction for industrial undertakings in North-eastern region and also in respect of undertakings promoting housing projects. Clause 142 of the Bill provides for deductions in respect of profits and gains of business of developing and building housing projects. Clause 143 of the Bill provides for special provisions in respect of profits and gains of certain undertakings with respect to production of eligible article or things in North-Eastern States. Clause 144 of the Bill provides for deduction in respect of profits and gains of newly established units in Special Economic Zones. Clause 145 of the Bill seeks to provide for deduction for businesses engaged in collecting and processing of bio-degradable waste. Clause 146 of the Bill provides for deduction in respect of additional employee cost and deduction in respect of additional em....
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....h no agreement exists in respect of his income which accrued or arose during that tax year outside India. Clause 161 of the Bill provides for computation of income from international transaction and specified domestic transaction having regard to arm's length price. Clause 162 of the Bill seeks to define the expression "associated enterprise". Clause 163 of the Bill seeks to define the expression "international transaction". Clause 164 of the Bill seeks to define the expression "specified domestic transaction". Clause 165 of the Bill provides for determination of arm's length price and the methods for determining the arm's length price. Clause 166 of the Bill provides for referral of cases by the Assessing Officer to the Transfer Pricing Officer for determining the arm's length price. Clause 167 of the Bill provides for power of Board to make safe harbour rules to simplify compliance and reduce litigation. Clause 168 of the Bill provides for advance pricing agreement between the taxpayer and the tax authorities to pre-determine the arm's length price for specified transactions. Clause 169 of the Bill, inter alia, seeks to provide for giving effect to adva....
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....f the Bill provides, inter alia, for restriction on receiving an amount of rupees two lakh and above in the modes other than the modes specified therein. Clause 187 of the Bill seeks to provide for accepting payment through prescribed electronic modes. Clause 188 of the Bill provides, inter alia, for restrictions on repayment of certain loans, deposit or specified advance in cash with certain exceptions. Clause 189 of the Bill seeks to provide for definitions of certain expressions which, inter alia, includes banking company, specified sum, etc. Clause 190 of the Bill provides for the mode of computation of total income if it includes any income on which no income tax is payable. Clause 191 of the Bill seeks to provide for tax on accumulated balance of recognised provident fund. Clause 192 of the Bill provides for the tax liability on the total income in search cases. Clause 193 of the Bill provides for, inter alia, for special rates of tax on resident individuals employed by an entity engaged in a specified knowledge-based industry or services on income from Global Depository Receipts. Clause 194 of the Bill provides for taxation of earnings from lotteries,....
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.... conditions for the concessional rate of taxes applicable under clauses 199, 200, 201, 203 and 204. Clause 206 of the Bill provides for provisions relating to taxation on book profits and deals with minimum alternate tax and alternate minimum tax. Clause 207 of the Bill provides special rates of taxes for non-residents on certain types of income (like dividends, interest, distributed income, income in respect of units, royalties and fees for technical services). Clause 208 of the Bill provides for special rates of taxes for offshore funds on investments made in foreign currency. Clause 209 of the Bill provides for special rates of taxes for non-residents on Global Depository Receipts including income by way of interest, dividend and income on transfer of such Global Depository Receipts. Clause 210 of the Bill provides for special rates of tax on income earned by Foreign Institutions Investors including dividend and interest on securities and capital gains on transfer of their securities. Clause 211 of the Bill provides for special rates of tax on non-residents sportsmen or sports associations with respect to certain incomes earned in India. Clause 212 of the Bi....
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....pany for its tonnage income. Clause 227 of the Bill seeks to provide for computation of tonnage income. Clause 228 of the Bill seeks to provide for relevant shipping income and exclusion from book profit. Clause 229 of the Bill provides for manner of calculation of depreciation along with treatment of capital gains in case of the transfer of capital asset forming part of qualifying assets as well as treatment given to the written down value of the qualifying assets and other assets whenever they are moved between the qualifying and non- qualifying businesses. Clause 230 of the Bill seeks to provide for general exclusion of losses, deductions and set off including the accrued losses incurred or claimed prior to opting of tonnage tax scheme by the company. Clause 231 of the Bill seeks to provide for the method of opting of tonnage tax scheme and validity. Clause 232 of the Bill seeks to provide for certain conditions for applicability of tonnage tax scheme. Clause 233 of the Bill seeks to provide for continuance of and validity of the scheme in the case of amalgamation and demerger. Clause 234 of the Bill seeks to provide for avoidance of tax and exclusion fro....
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....8 of the Bill provides for powers to requisition books of account, etc., which have been taken into custody by any officer or authority under any other law. Clause 249 of the Bill provides for reasons for search and seizure not to be disclosed. Clause 250 of the Bill seeks to provide for application of seized or requisitioned assets under the provisions of the proposed legislation. Clause 251 of the Bill seeks to provide for authority and procedures to deal with books of accounts and documents seized or requisitioned under clauses 247 and 248 of the proposed legislation and provides time limitations for their retention by the authorities concerned. Clause 252 of the Bill provides for power to call for information of the income-tax authorities to call for information. Clause 253 of the Bill provides for powers of survey, i.e., entry into business premises of an assessee, restrictions imposed in exercises of this power and duties of the assesses during survey action. Clause 254 of the Bill seeks to provide for powers of authorities to collect certain information which may be useful, or relevant to the purposes of the proposed legislation. Clause 255 of the Bill s....
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.... to issue directions to the assessing officer during assessment proceedings. Clause 273 of the Bill seeks to provide for faceless assessment of eligible cases assigned by National Faceless Assessment Centre to a specific Assessment Unit through an automated allocation system. Clause 274 of the Bill seeks to provide for making a reference by Assessing Officer to the Principal Commissioner or Commissioner during the course of pending assessments or reassessments to declare an arrangement as an impermissible tax avoidance arrangement and determining the consequences of such an alignment. Clause 275 of the Bill provides for scheme for reference to the Dispute Resolution Panel. Clause 276 of the Bill seeks to provide for method of accounting to be followed for computation of income under the heads "Profits and gains of business or profession" and "Income from Other sources". Clause 277 of the Bill seeks to provide for valuation of inventory and securities as per income computation and disclosure standards. Clause 278 of the Bill seeks to provide for taxability of interest, compensation or enhanced compensation and escalation claims in respect of contract or export ince....
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....of block period. Clause 300 of the Bill provides for saving clause with respect to application of other provisions of the Act. Clause 301 of the Bill provides for interpretation of various expressions related to assessment of search cases. Clause 302 of the Bill provides for tax liability of the legal representative in the event of the demise of the assessee. Clause 303 of the Bill explains the concept of representative assessee for the income of a non-resident or trust or minor, lunatic or idiot, etc. Clause 304 of the Bill provides for the responsibility of the representative assessee and taxation of income received in the capacity of representative assessee. Clause 305 of the Bill deals with the rights of the representative assessee to recover the taxes paid by him in his capacity as representative assessee. Clause 306 of the Bill seeks to deal with persons to act as an agent in relation to a non-resident. Clause 307 of the Bill seeks to provide for the charge of tax of certain representative assesses in a situation where the share of the beneficiaries is unknown or indeterminate. Clause 308 of the Bill provides for charge of tax in case of oral trust.....
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....sons. Clause 322 of the Bill provides for the procedures to be followed by companies in liquidation and the responsibilities of the liquidator Clause 323 of the Bill seeks to provide for the liability of the directors of a private company on tax and other dues as per the provisions of this Bill. Clause 324 of the Bill seeks to provide for the charge of tax in case of a firm. Clause 325 of the Bill deals with the provisions of assessment of a partnership firm including compliances to certain conditions. Clause 326 of the Bill deals with consequences in the assessment of a partnership firm in case of non-compliance to the conditions made by rules. Clause 327 of the Bill seeks to provide for assessment of a partnership firm in cases where there is a change in constitution of the firm. Clause 328 of the Bill provides for taxation in the hands of the predecessor and successor in the case of succession of one firm by another firm. Clause 329 of the Bill seeks to provide for joint and several liability of partners for tax payable by firm. Clause 330 of the Bill seeks to provide for assessment and liability in the hands of the firm even after its dissolution or d....
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.... Clause 349 of the Bill seeks to provide the provision related to return of income of a registered non-profit organisation. Clause 350 of the Bill seeks to provide provision related to permitted modes of investment. Clause 351 of the Bill seeks to provide provisions related to specified violation of a registered non-profit organisation. Clause 352 of the Bill seeks to provide provision related to tax on accreted income of a registered non-profit organisation. Clause 353 of the Bill seeks to provide provision related to other violations of a registered non-profit organisation. Clause 354 of the Bill seeks to provide provisions related to approval for purpose of exemption on donation. Clause 355 of the Bill seeks to provide the meaning of different terms used in this Chapter. Clause 356 of the Bill seeks to provide for appeals to Joint Commissioner (Appeals) against certain orders. Clause 357 of the Bill seeks to provide for appeals to Commissioner (Appeals) against certain orders. Clause 358 of the Bill seeks to provide for form of appeal and limitation. Clause 359 of the Bill seeks to provide for procedure in appeal. Clause 360 of the Bill deal wi....
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....e of vacancies in the Board for Advance Rulings. Clause 383 of the Bill provides for filing of application before the Board for Advance Rulings. Clause 384 of the Bill seeks to provide for procedure to process the application made for advance rulings. Clause 385 of the Bill seeks to provide that certain authorities not to proceed to decide in certain cases where application for advance ruling has been made. Clause 386 of the Bill seeks to provide that advance ruling to be void in certain circumstances. Clause 387 of the Bill seeks to provide for powers of the Board for Advance Rulings. Clause 388 of the Bill seeks to empower the Board for Advance Rulings to regulate its own procedure. Clause 389 of the Bill provides for appeal to High Court on the rulings pronounced by the Board for Advance Rulings. Clause 390 of the Bill provides for the provisions relating to tax deduction at source, tax collection at source, advance payment, etc., as modes of tax payment. Clause 391 of the Bill provides for provisions relating to direct payment of tax by assessee in certain conditions. Clause 392 of the Bill provides for provisions relating to tax deduction at sourc....
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....of the income of the tax year. Clause 411 of the Bill seeks to provide for the provisions relating to notice of demand, tax payable and when assessee is deemed to be in default. Clause 412 of the Bill seeks to provide for penalty which shall be payable when assessee is in tax default. Clause 413 of the Bill seeks to provide for drawing up of a certificate in respect of an assessee in default by the Tax Recovery Officer, specifying the amount of arrears due from the assessee and the recovery thereof. Clause 414 of the Bill seeks to specify the Tax Recovery Officer by whom recovery is to be effected. Clause 415 of the Bill empowers the Tax Recovery Officer to stay the recovery proceedings of his own accord or in pursuance of reduction in demand because of an appeal or other proceedings under the proposed legislation. Clause 416 of the Bill empowers the Assessing Officer with modes of recovery where no certificate is drawn up by the Tax Recovery Officer. Clause 417 of the Bill provides for recovery of tax through State Government in any area where recovery of tax has been entrusted to a State Government under article 258(1) of the Constitution. Clause 418 of th....
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....the assessee shall be liable to pay a fee for failure to intimate his Aadhaar number by the prescribed date. Clause 431 of the Bill provides for refund of excess amount paid by an assessee where the tax paid is more than the tax actually chargeable. Clause 432 of the Bill provides that the legal representative or the trustee or guardian or receiver, to claim or receive refund for the benefit of a person who is unable to claim or receive the refund due to him on account of death, incapacity, insolvency, liquidation or other cause or his estate. Clause 433 of the Bill seeks to provide that every claim of refund shall be made by furnishing a return of income. Clause 434 of the Bill seeks to provide for refund of tax deducted and paid to the Central Government by a person by whom the income is payable and who was required by an agreement to bear such tax deductible on the income on a claim made by him that no tax was required to be deducted on such income. Clause 435 of the Bill seeks to provide that the Assessing Officer shall refund any amount becoming due to the assessee as a result of any appellate order without the assessee being required to make any claim in this r....
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....visions of clause 186. Clause 452 of the Bill provides for imposition of penalty for failure to comply with the provisions of clause 187. Clause 453 of the Bill provides for imposition of penalty for failure to comply with the provision of clause 188. Clause 454 of the Bill seeks to provide for imposition of penalty for failure to furnish statement of financial transaction or reportable account. Clause 455 of the Bill seeks to provide for imposition of penalty for furnishing inaccurate statement of financial transaction or reportable account. Clause 456 of the Bill seeks to provide for imposition of penalty for failure to furnish statement or information or document by an eligible investment fund. Clause 457 of the Bill seeks to provide for imposition of penalty for failure to furnish statement or information or document under clause 171. Clause 458 of the Bill seeks to provide for imposition of penalty for failure to furnish information or document under clause 506. Clause 459 of the Bill seeks to provide for imposition of penalty for failure to furnish report or for furnishing inaccurate report under clause 511. Clause 460 of the Bill seeks to provide f....
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....t to evade tax, penalty, etc. Clause 479 of the Bill seeks to provide for punishment for failure to furnish return of income. Clause 480 of the Bill seeks to provide for punishment for failure to furnish return of income in search cases. Clause 481 of the Bill seeks to provide for punishment for failure to produce accounts and documents. Clause 482 of the Bill seeks to provide for punishment for making of false statement in verification, etc. Clause 483 of the Bill seeks to provide for punishment for falsification of books of account or document, etc., to evade tax. Clause 484 of the Bill seeks to provide for punishment for abetment of false return, etc. Clause 485 of the Bill seeks to provide for punishment for second and subsequent offences. Clause 486 of the Bill seeks to provide for that punishment shall not be imposed in certain cases for reasonable cause. Clause 487 of the Bill seeks to provide for punishment for offences by companies. Clause 488 of the Bill seeks to provide for punishment for Hindu undivided family. Clause 489 of the Bill seeks to provide for presumption as to assets, book of accounts, etc., in certain cases. Clause 490 of....
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.... of statement a non-resident, having a liaison office in India set up as per the guidelines issued by the Reserve Bank of India under the Foreign Exchange Management Act, 1999. Clause 506 of the Bill seeks to provide for furnishing information or documents by an Indian concern in certain cases to the prescribed income-tax authority. Clause 507 of the Bill seeks to provide for submission of statements by persons carrying on the production of a cinematograph film or engaged in any specified activity. Clause 508 of the Bill seeks to provide for furnishing of statement by a prescribed reporting financial institution in respect of a specified financial transaction or reportable account to the prescribed income-tax authority. Clause 509 of the Bill seeks to provide for furnishing of information in respect of a transaction of a crypto-asset. Clause 510 of the Bill seeks to provide that the prescribed income-tax authority or the person authorised by such authority shall provide an annual information statement in the prescribed manner. Clause 511 of the Bill seeks to provide for furnishing of reports in respect of international group. Clause 512 of the Bill seeks to pro....