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Act Rules Bills
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Source-based taxation requires payers to withhold tax on non-resident sports and entertainment fees, ensuring collection at source.
Clause 393(2)[Table: S.No.1] mandates a tax deduction at source on payments to non-resident sportsmen, entertainers, and non-resident sports associations or institutions for income referred to in section 211, imposing the obligation on any person making the payment to deduct tax at the earlier of credit or payment. The provision specifies a flat withholding rate, explicitly addresses grossing up for net-of-tax contracts, and is integrated within wider TDS subsections providing exceptions and administrative rules.
Act Rules Bills
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TDS on non-exempt life insurance payouts: mandatory deduction on the taxable component with a declaration option to avoid deduction.
Clause 393(1)[Table: S.No. 8(i)] of the Income Tax Bill, 2025 requires any person paying sums under a life insurance policy, including bonuses and excluding amounts not includible under Schedule II, to deduct TDS at 2% on the "income comprised in such sum". Deduction is required only where the aggregate payout to a payee in a tax year exceeds the specified threshold, and it must be effected at the earlier of credit or payment. Sub-section 6 allows a declaration for non-deduction where estimated aggregate income is below the exemption limit.
Act Rules Bills
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TDS on insurance commission: mandatory deduction at earlier of credit or payment, with threshold and declaratory relief.
Clause 393(1)[Table: S.No.1(i)] requires deduction of tax at source on remuneration or reward for soliciting, procuring, continuing, renewing or reviving insurance business, payable by "any person", at the earlier of credit or payment, when aggregate payments to a payee exceed the specified threshold; rates are those in force and the provision expands scope to include incentives and other remuneration while providing a declaration-based mechanism for no deduction and deeming credit to suspense accounts as credit to the payee.
Act Rules Bills
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TDS on contractor payments upheld with clarified scope, invoice rules and procedural reporting for targeted exemptions.
Clause 393(1)[Table: S.No. 6(i)] applies TDS to sums for carrying out work, including supply of labour, payable by a designated person, preserving differential rates for individuals/HUFs and others, applying deduction at credit or payment, allowing exclusion of material where separately invoiced, and aggregating payments for threshold purposes, subject to specified exceptions and procedural requirements.
Act Rules Bills
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TDS on horse-race winnings: single-transaction threshold triggers deduction at payment, integrated into unified TDS framework.
Clause 393(3)[Table: S.No. 3] mandates TDS on horse-race winnings by bookmakers or licensed operators at prevailing rates where winnings in a single transaction exceed the threshold, requires deduction at payment irrespective of mode, and integrates these obligations into Clause 393's unified procedural framework while leaving open interpretive issues such as the definition of "single transaction," aggregation risk, and valuation of non-cash payouts.
Act Rules Bills
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TDS on online gaming winnings: mandatory source deduction on net winnings, requiring payer compliance, reporting, and collection for noncash prizes.
Clause 393(3)[Table: S.No. 2] mandates TDS on "any income by way of winnings from online game" payable or credited by "any person," requiring deduction at "rates in force" on net winnings (as per Note 1) at the time of payment or credit, irrespective of mode of payment including cash, kind, credits or digital assets; payer obligations include computation, deduction, remittance, certification and reporting, with standard consequences for non-compliance.
Act Rules Bills
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TDS on gaming winnings: tax must be deducted at payment with a single-transaction threshold and special rules for non-cash prizes.
Clause 393(3)[Table: S.No.1] requires payers to deduct tax at source at rates in force on winnings from lotteries, puzzles, card games, other games, gambling and betting at the time of payment. The provision applies to cash and in-kind prizes and uses a single-transaction threshold to trigger TDS; payers must ensure tax is paid before releasing non-cash prizes. Online gaming winnings are excluded from this sub-clause and treated separately. General TDS reporting and deposit obligations apply.
Act Rules Bills
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TDS on interest: Bill raises senior citizen threshold and consolidates exemptions, altering deductor obligations and clarifying procedures.
Clause 393(1)[Table: S.No. 5(ii) & 5(iii)] prescribes TDS on interest other than on securities by distinguishing banking companies, co operative banks and post offices (subject to higher thresholds) from other specified payers (subject to a lower threshold), fixing time of deduction as credit or payment whichever is earlier, retaining branch wise aggregation where core banking is absent, and allowing intra year adjustment; Clause 393(4)[Table: S.No. 7] lists exemptions mirroring institutional and co operative carve outs with turnover conditions and freezes new ad hoc notifications after the stipulated cutoff.
Act Rules Bills
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TDS on dividends: new Bill mandates deduction before distribution, retaining specified institutional and small-holder exemptions.
Clause 393(1) requires TDS on all dividends (including preference shares) paid by domestic companies to resident shareholders at a flat rate, deducted before any distribution; Clause 393(4) lists conditional exemptions for specified institutional investors, notified persons, and small individual shareholders receiving dividends by non-cash modes, with exemptions contingent on payee type, payment mode, and aggregate amounts during the tax year.
Act Rules Bills
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TDS on interest on securities: consolidated exemptions and clearer procedural rules to streamline withholding compliance.
The Bill reaffirms TDS on interest on securities payable to residents, requiring deduction at the earlier of credit or payment at prevailing rates, subject to an aggregate annual threshold. It consolidates instrument based and entity based exemptions in a notified table, preserves the government's notification power to add exemptions, and modernizes language to reflect current financial instruments. Procedural rules permit declarations for non deduction with clearer delivery and reporting timelines for payers, require documentation to justify non deduction, and emphasize tracking aggregate payments and timely reporting and deposit to improve compliance and reduce disputes.
Act Rules Bills
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Tax deduction at source on provident fund withdrawals ensures immediate withholding at payment for taxable lump sum withdrawals.
Clause 392(7) requires trustees or authorised persons of recognised provident funds to deduct tax at source at a uniform rate when paying accumulated balances that are includible in the employee's income because exemption conditions under the relevant schedule do not apply; the obligation arises at the time of payment and only where the aggregate payment exceeds a prescribed threshold, with trustees responsible for deposit, recordkeeping and issuing withholding certificates.
Act Rules Bills
Show AI Summary
Tax Deduction at Source on Salaries modernizes employer TDS obligations and clarifies perquisite and reporting requirements.
Clause 392 modernizes Tax Deduction at Source on salaries by retaining the employer duty to deduct tax at the average rate on estimated salary payments, preserving the employer option to pay tax on non monetary perquisites (treated as TDS), providing special timing for start up equity perquisites, and requiring employers to consider specified employee declarations (other salary, reliefs, house property loss, other income, and tax deducted elsewhere) subject to limitations on reductions. It mandates prescribed statements, evidence, record keeping, and permits intra year TDS adjustments, with procedural details to be set by rules.
Act Rules Bills
Show AI Summary
Direct payment obligation makes the recipient liable where TDS is absent, with deductor deemed in default if both parties fail.
Clause 391 requires the recipient to pay income tax directly where TDS is not applicable or has not been deducted, includes a deferred payment mechanism for specified securities and sweat equity issued by eligible start-ups as per the Bill's timelines, and creates a deeming fiction rendering the deductor or employer an assessee-in-default if both deductor and assessee fail to discharge the liability, while preserving interest, penalty and crediting consequences.
Act Rules Bills
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Tax Collection at Source: payment obligations arise with income receipt and stand independent of later assessments.
Clause 390 mandates three modes of tax payment-deduction or collection at source, advance payment, and payment under section 392(2)(a)-to be effected "as per this Chapter," establishes that these obligations arise irrespective of later assessment proceedings, and includes a savings provision preserving the substantive charge to tax under section 4(1), thereby ensuring collection mechanisms do not affect the underlying tax liability.
Act Rules Bills
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Continuity of tax liability: dissolved firms treated as continuing for assessment, penalties, and recovery under new clause.
Clause 330 treats a dissolved or discontinued firm as continuing for assessment and recovery, empowering tax authorities to assess total income, impose penalties, and apply all Act provisions; it imposes joint and several liability on partners and legal representatives and permits continuation of proceedings at the stage they stood at dissolution, while preserving other relevant statutory provisions through a saving clause.
Act Rules Bills
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Joint and several liability of partners: partners and estates may be pursued for firm tax and related penalties under the new Bill.
The Bill imposes joint and several liability on every person who was a partner during the tax year and on the legal representatives of deceased partners for tax, penalty and other sums payable by the firm, allowing recovery from the firm or any partner and applying the Act's assessment, recovery and penalty machinery to such liabilities.
Act Rules Bills
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Succession of partnership firms requires separate assessments to apportion tax between predecessor and successor periods.
Clause 328 mandates separate assessments where a firm is succeeded by another: income up to succession is assessed in the predecessor's hands and income thereafter in the successor's hands, with procedural rules to be applied as per Section 313; the clause excludes cases covered by the provision addressing change in constitution, preserving the distinction between succession and mere partner changes.
Act Rules Bills
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Change in constitution of a firm: assessment on the firm as constituted at assessment time, preserving tax continuity.
Change in constitution of a firm provides that assessment shall be on the firm as constituted at the time of assessment where partners cease, new partners are admitted (with at least one pre existing partner continuing), or shares change; an exception preserves dissolution on the death of a partner. The clause modernizes language and cross references to updated assessment provisions, maintains continuity in tax liability, and places emphasis on partnership deeds, record keeping, and potential factual disputes over reconstitution versus succession.
Act Rules Bills
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Procedural compliance in partnership taxation: noncompliance bars firm deductions for partner payments while avoiding partner double taxation.
Clause 326 of the Income Tax Bill, 2025, applies where a partnership firm fails to comply with Clause 325 procedural requirements; it invokes a non-obstante override to disallow deductions for payments to partners described as interest, salary, bonus, commission or remuneration, and concurrently excludes those disallowed amounts from taxation in the hands of partners, mirroring the substantive effect of the earlier statute while updating cross-references and structure.
Act Rules Bills
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Firm assessment requirements: written certified partnership instrument needed, with non compliance causing denial of partner deductions.
Clause 325 requires that a partnership be evidenced by a written instrument specifying each partner's share and that a certified copy accompany the return when assessment as a firm is first sought; certification must be by all partners (excluding minors) or relevant predecessors/representatives on dissolution. Once assessed as a firm, continuity of assessment applies unless the firm's constitution or shares change, in which case a revised certified instrument must be filed and the conditions reapply. Failure to comply triggers denial of deductions for payments to partners and prevents those payments from being taxed in the partners' hands.

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AMENDMENTS IN THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975

3 February, 2020

Contents
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Budget 2020-21 + FINANCE BILL, 2020

AMENDMENTS

A.

Tariff rate changes for Basic Customs Duty [to be effective from 02.02.2020] * [Clause 115 (a) of the Finance Bill, 2020]

Rate of Duty

S.No.

Heading, sub-heading, tariff item

Commodity

From

To

 

 

Food processing

 

 

1.

0802 32 00

Walnuts, shelled

30%

100%

 

 

Chemicals

 

 

2.

3824 99 00

Other Chemical products and preparations of the chemical or allied industries, not elsewhere specified

10%

17.5%

 

 

Footwear

 

 

3.

6401, 6402,

6403, 6404, 6405

Footwear

25%

35%

4.

6406

Parts of footwear

15%

20%

 

 

Household Items

 

 

5.

6911 10, 6911 90 20, 6911 90 90

Tableware, kitchenware, water filters (of a capacity not exceeding 40 litres) and other household articles, of porcelain of china.

10%

20%

6.

6912 00 10, 6912 00 20, 6912 00 40, 6912 00 90

Ceramic tableware, kitchen-ware, clay articles and other household articles

10%

20%

7.

7013

Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or Similar purposes (other than that of heading 7010 or 7018)

10%

20%

8.

7323

Table kitchen or other household articles and parts thereof, of iron or steel, iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel, including pressure cookers pans utensils, misc articles such as iron & steel wool, polishing pads, gloves etc.

10%

20%

9.

7418 10

Table, kitchen or other household articles and parts thereof, of copper; pot scourers and scouring or polishing pads, gloves and the like, of copper.

10%

20%

10.

7615 10

Table, kitchen or other household articles and parts thereof, of aluminum; pot scourer and scouring or polishing pads, gloves and the like, of aluminum.

10%

20%

11.

8301

Padlocks and locks (key, combination or electrically operated) of base metal; Clasps and frames with clasps, incorporating locks of base metals; keys for any of the foregoing articles, of base metals (Other than lock of a kind used for automobiles.)

10%

20%

12.

9603

Brooms, brushes, hand operated mechanical floor sweepers, not motorized, mops and feather dusters; prepared knots and tufts for broom or brush making; paint pads and rollers; Squeegees (other than roller squeegees).

10%

20%

13.

9604 00 00

Hand sieves and hand riddles.

10%

20%

14.

9615

Combs, hair-slides and the like, hairpins curling pins, curling grips, hair curlers and the like other than those of heading 8516 and parts thereof.

10%

20%

15.

9617

Vacuum flasks and other vacuum vessels, complete with cases; parts thereof other than glass inners.

10%

20%

16.

8414 51 10

Table Fans

10%

20%

17.

8414 51 20

Ceiling Fans

10%

20%

18.

8414 51 30

Pedestal Fans

10%

20%

19.

8414 59 20

Blowers, Portable

10%

20%

20.

8509 40 10

Food Grinders

10%

20%

21.

8509 40 90

Other grinders and Mixer

10%

20%

22.

8509 80 00

Other Appliances

10%

20%

23.

8510 10 00

Shavers

10%

20%

24.

8510 20 00

Hair Clippers

10%

20%

25.

8510 30 00

Hair-removing appliances

10%

20%

26.

8516 10 00

Water heaters and immersion heaters

10%

20%

27.

8516 21 00

Storage heating radiators

10%

20%

28.

8516 29 00

Other electrical space heating apparatus

10%

20%

29.

8516 31 00

Hair Dryers

10%

20%

30.

8516 32 00

Other hair dressing apparatus

10%

20%

31.

8516 33 00

Hand Drying apparatus

10%

20%

32.

8516 40 00

Electric smoothing irons

10%

20%

33.

8516 60 00

Other ovens, cookers, cooking plates, boiling rings, grillers and roasters

10%

20%

34.

8516 71 00

Coffee and Tea Makers

10%

20%

35.

8516 72 00

Toasters

10%

20%

36.

8516 79 10

Electro-thermic fluid heaters

10%

20%

37.

8516 79 20

Electrical or electronic devices for repelling insects

10%

20%

38.

8516 79 90

Other electro-thermic appliances used for domestic purposes

10%

20%

39.

8516 80 00

Electric heating resistors

10%

20%

 

 

Precious Metals

 

 

40.

7118

Coin

10%

20%

 

 

Machinery

 

 

41.

8414 51 40

Railway Carriage fans

7.5%

10%

42.

8414 51 90

Other fans with a self-contained electric motor not exceeding 125W

7.5%

20%

43.

8414 59 10

Air Circulator

7.5%

10%

44.

8414 59 30

Industrial fans blowers and similar blowers

7.5%

10%

45.

8414 59 9

Other industrial fans

7.5%

10%

46.

8414 30 00, 8414 80 11

Compressor of Refrigerator and Air conditioner

10%

12.5%

47.

8419 89 10

Pressure vessels

7.5%

10%

48.

8418 10 10

Commercial type combined refrigerator freezers, fitted separate external doors

7.5%

15%

49.

8418 30 10

Commercial freezer of chest type, not exceeding 800 litre capacity

7.5%

15%

50.

8418 30 90

Other chest type freezers

10%

15%

51.

8418 40 10

Electrical freezers of upright type, not exceeding 800 litre capacity

7.5%

15%

52.

8418 40 90

Other freezers of upright type, not exceeding 800 litre capacity

7.5%

15%

53.

8418 50 00

Refrigerating or freezing display counters, cabinets, Show-cases and the like

7.5%

15%

54.

8418 61 00

Heat pumps other than air conditioning machines

7.5%

15%

55.

8418 69 10

Ice making machinery

7.5%

15%

56.

8418 69 20

Water cooler

10%

15%

57.

8418 69 30

Vending machine, other than automatic

10%

15%

58.

8418 69 40

Refrigerating equipment/devices used in leather industry

7.5%

15%

59.

8418 69 50

Refrigerated farm tanks, industrial ice cream freezer

7.5%

15%

60.

8418 69 90

Others (like freezers of capacity 800 litres and more etc.]

7.5%

15%

61.

8515 (except 8515 90 00)

Welding and Plasma cutting machines

7.5%

15%

 

 

Other Electronic goods

 

 

62.

8504 40 (except 8404 40 21)

Static Converters

15%

20%

63.

8504 40 21

Dip bridge rectifier

10%

20%

64.

8517 70 10

Populated, loaded or stuffed printed circuit boards

10%

20%

 

 

Automobile and automobile parts

 

 

65.

8421 39 20, 8421 39 90

Catalytic Convertor

10%

15%

 

 

Furniture Goods

 

 

66.

9401

Seats and parts of seats (other than aircraft seats and their parts)

20%

25%

67.

9403

Other Furniture and parts thereof

20%

25%

68.

9404

Mattress supports: Articles of bedding and similar furnishing

20%

25%

69.

9405

Lamps and lighting fittings including searchlights and spotlights and pads thereof; Illuminated signs, illuminated name plates and the like, having a permanently fixed light source, and parts thereof (except solar lantern and solar lamps).

20%

25%

 

 

Toys

 

 

70.

9503

Tricycles, scooters, pedal-cars and similar wheeled-toys; dolls' carriages; dolls; other toys; reduced-Size (“scale”) models and similar recreational models, working or not; puzzles of all kinds

20%

60%

 

 

Stationary items

 

 

71.

8304 00 00

Filing, cabinets. card-index cabinets, paper-trays, paper rests, pen trays, office-stamp stands and similar office or desk equipment of base metal, Other than office furniture of heading 9403

10%

20%

72.

8305

Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal

10%

20%

73.

8310

Sign-plates, name-plates, address-plates and similar plates, numbers, letters and other symbols, of base metal, excluding those of heading 9405

10%

20%

 

 

Miscellaneous

 

 

74.

6702

Artificial Flowers

10%

20%

75.

7018 10 20

Glass Beads

10%

20%

76.

8306

Bells, gongs, statuettes, trophies and like, non-electric of base metal; statuettes and other ornaments of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal.

10%

20%

B.

New entries added to the First Schedule [to be effective from 02.02.2020] * [Clause 115(b) of the Finance Bill, 2020]

S. No

Tariff Item

Description

Tariff Rate

Effective rate

1.

8414 51 50

Wall fans

20%

20%

2.

8529 90 30

Open cell for television set

15%

0%

3.

8541 40 11

Solar cells, not assembled

20%

0%

4.

8541 40 12

Solar cells, assembled in modules or made up in panels

20%

0%

*Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

 


Full Text:

Budget 2020-21 + FINANCE BILL, 2020

Topics

Acts Income Tax