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    Majority decision with third member nomination resolves member disagreements in advance ruling panels, enabling electronic pronouncement and communication.
    Amendments to the e advance rulings Scheme require the Board for Advance Rulings to consider responses, provide an opportunity of being heard by video conferencing or video telephony, pronounce the advance ruling and send it to the applicant and relevant authority. If Members differ on any point, the Principal Chief Commissioner (International Taxation) will nominate a Member from another Board and the majority opinion, including the nominated Member, will prevail in deciding the disputed point or points.
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    Turnover computation for derivatives and speculation: include absolute differences and option premiums under tax audit rules.
    Turnover for tax audit purposes differs by transaction type: speculative transactions use the aggregate of realised favourable and unfavourable differences; derivatives, futures and options use the absolute total of favourable and unfavourable differences with option premium included unless already counted in net profit; reverse trade differences are included; delivery based transactions use total sales value as turnover.
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    Game of skill excludes gambling under GST; nomen juris applied to classify Rummy as skill based for tax purposes.
    The classification of Rummy under GST depends on whether skill predominates over chance; applying the principle of nomen juris, judicially established meanings of "gambling," "game of chance," and "game of skill" must be used. Rummy requires memorisation and strategic holding and discarding of cards and has been regarded as a game of skill. Consequently, the terms betting and gambling in the GST context should not be read to include games of skill, and selective reliance on stray judicial language to levy tax on such games is impermissible.
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    Current repairs classification distinguishes capital expenditure from revenue deductions for building and machinery repairs under income tax rules.
    Classification of current repairs determines whether expenditures on buildings and on plant and machinery are revenue deductions or capitalised: enduring benefit or substantial enhancement is capital, while routine restorative or replacement outlays that merely maintain existing earning capacity are revenue; Sections 30 and 31 provide the statutory context for rent, rates, taxes, repairs and insurance for buildings and for machinery, plant and furniture.
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    Ownership for unexplained articles must reflect real ownership rights, not mere carrier possession, to trigger tax implications.
    Section 69A applies only where the assessee can properly be regarded as the owner of the item and the item is an other valuable article; a carrier or bailee lacks ownership rights unless wrongful retention or misappropriation confers exclusive control akin to ownership, and an article qualifies as "valuable" by per unit marketability and premium price rather than aggregate value of ordinary low cost goods such as bitumen.
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    Reporting entity designation expands under PMLA, bringing new activities and professionals within AML obligations.
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    Tax deduction denial for pharmaceutical freebies: expenses excluded under Explanation 1 to Section 37(1) as prohibited by law.
    Whether expenditures by pharmaceutical companies for distribution of incentives to medical practitioners are allowable under Section 37(1) depends on Explanation 1 to Section 37(1), which disallows deductions for purposes that are an offence or are prohibited by law; because medical ethics regulations prohibit doctors from accepting such freebies and attach punishments, donors' provision of those incentives is treated as participation in proscribed conduct and such expenses are not allowable as business deductions.
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    Belated employees' contribution: deduction disallowed when not deposited by prescribed statutory due date; employer contribution treated differently.
    Non-deposit of employees' contribution within the due date prescribed under the respective provident/insurance statute results in disallowance of the employer's deduction, whereas employer contributions are subject to a separate payment-based rule that defers deduction until actual payment. The statutory scheme preserves distinct treatment: employee contributions must be credited by the statutory due date to qualify as deduction, while employer contributions may be allowed on a payment basis when actually paid.
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    Optional personal tax regime clarified with default slab rules, restricted deductions, and surcharge plus cess implications.
    Existing special-rate provisions for companies and cooperative societies remain unchanged for AY 2023-24 while Part I of the First Schedule prescribes standard slab rates for other assessees; the optional personal tax regime permits eligible individuals and HUFs to elect alternative slab rates with disallowance of most deductions except specified allowances, procedural rules govern exercise and revocation of the option, and surcharge, marginal relief and a fixed health and education cess apply with specified caps and computation rules.
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    TDS rates and surcharge framework for the fiscal year set; winnings from online games are subject to withholding at a specified rate.
    TDS rates for non-salary incomes for FY 2023-24 remain as in the prior schedule and apply under the specified withholding provisions; the schedule now also covers withholding on online gaming winnings at the rate set in the Bill. Prescribed section rates govern deduction. A multi-tier surcharge regime increases deducted tax by differing rates across taxpayer categories and income bands, with caps limiting surcharge on dividend and specified capital-gains income and an alternative-regime surcharge restriction. Health and Education Cess of four percent applies on tax including surcharge where applicable.
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    TDS on salaries: prescribed deduction rates and advance-tax computation clarified, with limited change for incomes under section 115BAC.
    Part III of the Finance Bill prescribes rates for TDS on salaries and the computation of advance tax for the fiscal year, and those rates also apply when charging tax in provisional or accelerated assessments. The schedules apply across categories of taxpayers-individuals, cooperatives, firms, local authorities and companies-and the overall rate structure remains unchanged except for incomes governed by the alternative optional tax regime; the Bill also notes the continuing framework for tax rebate entitlement.
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    New Default Tax Regime: revised slab rates apply for individuals and HUFs, with optional alternative regime and surcharge caps.
    Default tax rates under section 115BAC(1A) govern income-tax computation for individuals, HUFs, AOPs, BOIs and specified artificial juridical persons for FY 2023-24, with a progressive slab structure; taxpayers may opt under proposed section 115BAC(6) to instead be taxed under the alternative rates in Part III, which set different exemption limits for ordinary residents and senior citizens. The Bill includes a graduated surcharge regime for higher incomes, provides caps on surcharge where income includes dividends or specified capital gains, limits surcharge for AOPs consisting only of companies, and restricts surcharge rates for persons taxed under section 115BAC(1A); marginal relief is provided at surcharge thresholds.
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    Co-operative society tax rates updated: surcharge tiers retained; new concessional options introduced for qualifying manufacturing societies.
    Co-operative societies will continue under the existing income-tax rate structure with a tiered surcharge framework for higher total income and marginal relief. Resident societies satisfying statutory conditions may opt for an optional reduced tax regime with a specified surcharge. Newly established manufacturing co-operative societies that commence production within a prescribed window and do not claim specified incentives may opt into a concessional tax regime for subsequent assessment years, subject to surcharge.
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    Surcharge on firms applies beyond income threshold, with an upper cap limiting excess tax liability.
    The Finance Bill 2023 maintains the existing rate of income-tax for firms and imposes a surcharge on firms whose total income exceeds the statutory threshold; the surcharge is added to income-tax but is capped so that the total tax plus surcharge on income above the threshold does not exceed, by more than the excess income, the income-tax payable on income at the threshold level.
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    Local authority income-tax rate retained, with a capped surcharge limiting additional liability above the income threshold.
    The Finance Bill maintains the existing specified income-tax rate for local authorities and imposes a surcharge on income-tax where total income exceeds a threshold; it caps the combined income-tax and surcharge liability so that the total payable on income above the threshold does not exceed the tax on the threshold amount by more than the excess income.
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    Company tax rates revised with reduced options for eligible domestic firms, surcharge slabs retained and health and education cess applied.
    The Finance Bill 2023 sets primary corporate tax regimes: specified base rates for domestic companies depending on turnover and election into concessional regimes; optional lower-rate regimes remain available subject to conditions. Surcharge rates for domestic and non domestic companies persist at prescribed slabs with marginal relief provided for surcharge; a Health and Education Cess is levied on tax inclusive of surcharge without marginal relief. A new provision fixes its own tax rate while surcharge is applied according to taxpayer status.
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    Rebate under section 87A expanded to raise the exempt-income threshold for resident individuals under the new tax regime.
    Rebate under section 87A grants a 100% rebate of income-tax payable to resident individuals whose total income does not exceed the specified threshold. From assessment year 2024-25 the rebate is extended to resident individuals whose income is chargeable under the proposed new tax regime provision (proposed sub section (1A) of section 115BAC), making them eligible for a full rebate where their total income falls within the revised threshold.
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    GST Amendments broaden OIDAR taxability, impose statutory time limits for returns/statements, and decriminalise select offences.
    The Finance Bill amends the CGST Act to permit composition levy for suppliers transacting through electronic commerce operators, restrict input tax credit by treating specified Schedule III transactions as exempt-supply value and excluding CSR-related credits, clarify retrospective registration exemptions, impose statutory time limits (with conditional extensions) for furnishing outward-supply details, periodic and annual returns and monthly statements by e-commerce operators, introduce penal liability for E-commerce operators for unregistered/composition supplier contraventions, decriminalise certain offences and raise prosecution thresholds, and give retrospective non-supply treatment to specified Schedule III activities; IGST changes broaden OIDAR taxability and revise place-of-supply rules.

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      Review of concessional rates of BCD prescribed in notification no. 50/2017 - Customs dated 30.62017: The BCD exemption hitherto available on certain goods are being withdrawn by omitting following entries of notification No. 50/2017-Customs dated 30.6.2017.

      3 February, 2020

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      Budget 2020-21 + FINANCE BILL, 2020

      S. No.

      S. No. of Notification No 50/2017-customs

      Description

      1.

      5

      Tuna bait [0303]

      2.

      7

      Goods upto an aggregate of ten thousand metric tonnes of total imports of Milk and cream, in powder, granules or other solid form in a financial year. [0402 10, 0402 21 00]

      3.

      7A

      Whey, concentrated, evaporated or condensed, liquid or semi-solid [0404 10 10]

      4.

      7B

      Other Whey [0404 90 00)

      5.

      8

      Butter Ghee, Butter Oil [0405]

      6.

      9

      Other cheese [0406 90 00)

      7.

      10

      Pancreas (Products of animal origin, not elsewhere specified) (Chapter 5]

      8.

      11

      Conch shell [0508 00]

      9.

      18

      Bulbs or tubers, other live plants [0601 or 0602]

      10.

      36

      All goods other than meslin or wheat [1001]

      11.

      38

      Meslin [1001]

      12.

      40

      Maize upto an aggregate of five lakh metric tonnes of total imports of such goods in a financial year [1005 90]

      13.

      47

      Sugar beet seeds [1209 10 00)

      14.

      56

      Edible oils [1508, 1512, 1513, 1514, 1515 or 1511 10]

      15.

      58

      Refined vegetable oils of edible grade, in loose or bulk form (other than palm oil) [chapter 15]

      16.

      59

      Vegetable oils of edible grade, in loose or bulk form (other than those specified against S. No. 58 and palm oil), imported for the manufacture of oil commonly known as “Vanaspati” or for refining.

      Explanation. -The expression “Vegetable oil” means-

      (a) in the case of cottonseed oil, oil having a free fatty acid content of at least 0.2%; and

      (b) in the case of any other vegetable oil. oil with free fatty acid content of at least 0.5%. [15]

      17.

      68

      Crude sunflower seed or safflower oil upto an aggregate of one lakh and fifty thousand metric tonnes of total imports of such goods in a financial year [1512 11]

      18.

      69

      Crude sunflower seed or safflower oil other than those specified against S. No. 68 [1512 11]

      19.

      72

      Refined rape, colza or mustard oil upto an aggregate of one lakh and fifty thousand metric tonnes of total imports of such goods in a financial year (1514 19 or 1514 99]

      20.

      78

      Margarine, animal or vegetable oils of edible grade [1517 or 1518]

      21.

      83

      Glycerol, crude; glycerol waters and glycerol lyes, (other than crude glycerin) [1520 00 00]

      22.

      88A

      Raw Sugar upto an aggregate of three lakh metric tonnes of total imports of such goods. Provided that the import of raw sugar in physical form is completed within sixty (60) days from the date of issue Of the Tariff Rate Quota Allocation Certificate or license by Directorate General of Foreign Trade (DGFT) to the importer. Provided further that the importer shall convert the raw sugar into white/ refined sugar within a period, not exceeding thirty (30) days, from the date of filing of bill of entry or the date of entry inwards, whichever is later [1701]

      23.

      89

      Dextrose Monohydrate [1702)

      24.

      92

      Molasses resulting from extraction or refining of sugar [1703]

      25.

      93

      Chewing gum whether or not sugar coated [1704 10 00]

      26.

      94

      Food preparations, for infant use and put up for retail sale, of-

      (i) goods of headings 0401 to 0404, containing cocoa calculated on a totally defatted basis, in a proportion by weight of 5% or more but less than 10%; or

      (ii) flour, meal, starch or malt extract containing cocoa calculated on a totally defatted basis, in a proportion by weight of 40% or more but less than 50% [1806 90)

      27.

      95

      Preparations for infant use put up for retail sale [1901 10]

      28.

      98

      preserved potatoes [2004 10 00]

      29.

      99

      Peanut Butter [2008 11 00]

      30.

      105

      Wine, for use as sacramental wine [22]

      31.

      108

      Angostura bitters [2208]

      32.

      113

      Fin fish feed [2301 20, 2309 90 32, 2309 90 39]

      33.

      115

      Dietary soya fibre [2304]

      34.

      148

      Naphtha, when imported by Ratnagiri Gas and Power Private Limited (RGPPL), for use in generation of electricity in the power plants of Ratnagiri Gas and Power Private Limited (RGPPL) at Dabhol, District Ratnagiri, Maharashtra [2710]

      35.

      149

      Naphtha, when imported for generation of electrical energy by a generating company as defined in section 2(28) of the Electricity Act, 2003 (36 of 2003) to supply electrical energy-or to engage in the business of supplying electrical energy [2701]

      36.

      152

      Propane, Butane [2711 12 00, 2711 13 00]

      37.

      160

      Electrical energy [ 2716 00 00]

      38.

      170

      Phosphoric acid, for the manufacture of fertilizers(28]

      39.

      212

      Japanese Encephalitis (JE) vaccine, imported by the Andhra Pradesh Government through UNICEF [30]

      40.

      220

      Kyanite salts, in a form indicative of their use for manurial purpose [31]

      41.

      243

      Isolated soya protein [3504]

      42.

      244

      Colour positive unexposed cinematographic film in jumbo rolls and colour negative unexposed cinematographic film in rolls of 400 feet and 1000 feet [37]

      43.

      245

      Instant print film [3701 20 00 or 3702]

      44.

      246

      Cinematographic films, exposed but not developed [3704]

      45.

      247

      Promotional material (like Trailers, making of film etc.) imported in the form of electronic promotion kits (EPK)/ beta cams (Any Chapter)

      46.

      263

      The following polymers of ethylene, namely: -

      (i) Cow density polyethylene (LDPE),

      (ii) Linear low-density polyethylene (LLDPE),

      (iii) High density polyethylene (HDPE),

      (iv) Linear medium density polyethylene (LMDPE),

      (v) Linear high-density polyethylene (LHDPE) [3901]

      47.

      264

      All goods other than poly 'so-butylene [39021

      48.

      266

      All goods [3903]

      49.

      274

      Compostable polymer or bio-plastic used in the manufacture of bio degradable agro mulching films, nursery plantation pots and flower pots [3913 90 90]

      50.

      275

      Water blocking tape for use in the manufacture of insulated Wires and cables falling under heading 8544 (except sub-heading 8544 11) [3919 90 90]

      51.

      278

      Subbed polyester base, imported by M/s. Hindustan Photo Films Manufacturing Company Limited, Udhagamandalam for the manufacture of medical or industrial X-ray films and graphic art films [39201

      52.

      286

      Patent leather [4114 20 10]

      53.

      287

      Raw furskins [4301). tanned and dried furskins [4302]

      54.

      386

      Lead bars. rods. profiles and wire [7806]

      55.

      388

      Zinc tubes, pipes and tube or pipe fittings [7907]

      56.

      389

      Tin plates, sheets and strip, of a thickness exceeding 0.2 mm; tin foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials), of a thickness (excluding any backing) not exceeding 0.2 mm; tin powders and flakes [8007]

      57.

      398

      Parts and components of the goods specified in List 10 required for use in high voltage power transmission project (Any chapter]

      58.

      401

      All items of equipment including machinery and rolling stock, procured by or on behalf of Delhi Metro Rail Corporation Ltd. for use in-

      (i) Delhi MRTS Project Phase-I, and

      (ii) Specified corridors of Delhi MRTS Project Phase-Il, comprising of the following, namely: -

      (a) Vishwavidyalaya- Jahangirpuri;

      (b) Central Secretariat-Qutab Minar (via All India Institute of Medical Sciences);

      (c) Shahdara- Dilshad Garden;

      (d) Indraprastha-New Ashok Nagar;

      (e) Yamuna Bank-Anand Vihar-lnter State Bus Terminus; and

      (f) Kirti Nagar-Mundka (along with operational Link to Shahdara- Rithala corridor) (Any Chapter)

      59.

      412

      Goods specified in List 15 required for construction of roads [84 or any other chapter]

      60.

      447

      The following goods required for manufacture of Optical disk drives (ODD), namely: -

      (i) Pick up assembly

      (ii) Digital signature procession integrated circuit

      (iii) DC motor

      (iv) LDO voltage regulator [84 or Any other Chapter]

      61.

      456

      The following goods, namely: -

      (a) Sprinklers and drip irrigation systems for agricultural and horticultural purposes;

      (b) Micro Irrigation equipment [8424]

      62.

      457

      Poultry incubators and brooders [8436 21 00]

      63.

      459

      Parts for manufacture of printers falling under sub heading 8443 32 (except 8443 99 51, 8443 99 52, 8443 99 53) [8443]

      64.

      465

      CD -Writers (8471]

      65.

      474

      MP3 or MP4 or MPEG 4 player with or without radio or video reception facility [85]

      66.

      483

      One set of pre-recorded cassettes accompanying books for learning languages and essential complement to such books, [85]

      67.

      484

      Audio cassettes, if recorded with material from books, newspaper or magazines, for the blind [85]

      68.

      515

      Colour television picture tubes for use in the manufacture of cathode ray televisions [8540 11]

       

       


      Full Text:

      Budget 2020-21 + FINANCE BILL, 2020

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      ActsIncome Tax