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Act Rules Bills
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Income attribution: clarifies tax liability of the legal owner and joint-and-several responsibility for income included in another's return.
Clause 100 assigns tax liability to the person in whose name an asset stands or whose firm membership produces attributed income, imposes joint and several liability for jointly held assets allowing recovery from any co-owner for the whole tax due, applies existing procedural recovery mechanisms to enforce the liability, and overrides contrary provisions in other laws to ensure primacy in determining tax obligations arising from income attribution.
Act Rules Bills
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Clubbing of income: new clause expands inclusion of spouse, minor child and transferred-asset income in assessee's taxable income.
Clause 99 attributes to the individual income arising to a spouse from employment or remuneration in concerns where the individual has a substantial interest, income from assets transferred to a spouse or a son's wife without adequate consideration, and income of a minor child except earnings from the child's manual work or personal skill; it also prescribes a formula for income attributable when transferred assets are invested and treats conversion of individual property to HUF as income of the individual.
Act Rules Bills
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Revocable transfer definitions broaden tax reach, treating arrangements that preserve transferor control as attributable income to transferor.
Clause 98 of the Income Tax Bill, 2025 and Section 63 of the Income Tax Act define transfer to include settlements, trusts, covenants, agreements or arrangements, and define revocable transfer to cover provisions enabling direct or indirect re transfer of income or assets or re assumption of power by the transferor. Both provisions attribute income to the transferor where economic substance shows retention of control or benefit, broadening the tax net over arrangements that preserve transferor influence.
Act Rules Bills
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Chargeability of income in asset transfers: revocable transfers taxed to transferor, with narrow irrevocable-transfer exceptions.
Clause 97 treats income from a revocable transfer of assets as taxable in the hands of the transferor, while providing exceptions for truly irrevocable transfers where the transferor derives no direct or indirect benefit; if a power to revoke later arises the income becomes chargeable to the transferor, thereby aligning taxation with economic control and preventing tax avoidance through strategic transfers.
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Transfer of income without asset transfer: such income is taxed in the transferor's hands to prevent tax avoidance.
Clause 96 and Section 60 provide that income arising by virtue of a transfer, whether revocable or irrevocable and irrespective of timing, is chargeable to tax in the transferor's hands if the asset generating that income has not been transferred, thereby preserving the link between income and its source asset to prevent tax avoidance.
Act Rules Bills
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Remission of liabilities taxable - forgiven debts and other benefits must be included as income when received under revised charge rules.
Clause 95 of the Income Tax Bill, 2025, treats any benefit obtained from the remission or cessation of a liability for which a deduction was previously allowed as taxable in the year received, applying principles from Section 38(1)(a) to non business income heads. Section 59 of the Income tax Act, 1961, applies Section 41(1) similarly to ensure forgiven liabilities are included in taxable income, but both provisions present valuation and timing ambiguities for non cash benefits and assessment year determinations.
Act Rules Bills
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Disallowance of deductions: withholding compliance ties deductibility for cross border payments and personal expenses.
Clause 94 disallows deductions from income from other sources for personal expenses and for interest or salaries payable outside India where tax has not been paid or deducted under the withholding framework; it extends selected business-income deduction rules to other sources, prescribes computation rules for foreign companies, disallows deductions for gambling and lotteries while excepting horse racing maintenance, and links deductibility to compliance with withholding obligations.
Act Rules Bills
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Deductions for income from other sources clarified, aligning allowable expenses and curbing dividend-related deduction claims.
Clause 93 of the Income Tax Bill, 2025 prescribes deductions for Income from other sources, allowing reasonable sums for realising dividends or interest on securities, deductions for specified income categories via cross references, a capped family pension deduction, non capital expenditures wholly and exclusively for earning such income, a 50% concession for certain incomes, and targeted restrictions limiting deductible interest tied to certain dividend incomes to a proportion of that income.
Act Rules Bills
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Taxation of miscellaneous income broadens taxable sources to include modern streams like digital assets and trust distributions.
Clause 92 establishes a residual charging rule that any income not charged under other heads and not excluded is taxable under Income from other sources, enumerating a non exhaustive list of receipts-dividends, gambling winnings, employee fund contributions, specified insurance proceeds, interest including on compensation, rental of machinery or furniture, forfeited advances, employment termination compensation, business trust distributions, life insurance sums outside specified products, and gifts or property transfers-while providing exemptions for transfers from relatives, on marriage, under wills and certain local authority receipts, and setting valuation and definition rules including treatment of digital assets.
Act Rules Bills
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Valuation officer referral: a statutory mechanism to address discrepancies between declared asset values and fair market value.
Clause 91 empowers the Assessing Officer to refer a capital asset's valuation to a Valuation Officer where an assessee's declared amount appears inconsistent with the fair market value, applying to assets valued by registered valuers and to other cases meeting prescribed thresholds or circumstances, and adopts procedural modifications by reference to Section 269(3)-(8).
Act Rules Bills
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Cost of acquisition rules clarified: FMV option and acquisition cost deemed nil when indeterminable, affecting capital gains computation.
Clause 90 defines cost of improvement as nil for intangible assets and permits post reference date expenditure for other assets; sets cost of acquisition as purchase price or previous owner's purchase price and deems cost nil where indeterminable; provides tailored rules for financial assets to avoid taxing non economic gains; and allows a fair market value option as cost of acquisition for earlier acquisitions to reflect market and inflationary changes.
Act Rules Bills
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Extension of time for reinvesting capital gains tied to receipt of compensation preserves exemption eligibility after compulsory acquisition.
Where an original asset is compulsorily acquired and compensation is delayed, the period for acquiring a new asset or depositing or investing capital gains is calculated from the date of receipt of compensation rather than the date of transfer; Clause 89 of the Income Tax Bill, 2025, states this rule and declares it to operate irrespective of conflicting timelines in specified sections, and Section 54H of the Income-tax Act, 1961, operates on a comparable principle tied to specified reinvestment provisions.
Act Rules Bills
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Capital gains exemption for industrial relocations to SEZs conditions relief on reinvestment in new SEZ assets and deposit rules.
Clause 88 grants a capital gains exemption when assessees transfer assets while shifting an industrial undertaking from an urban area to an SEZ, conditional on reinvesting gains into new SEZ assets within the prescribed investment window; unutilized gains must be deposited in a specified account and any excess of gains over the cost of new assets is taxable. Eligibility centers on assets used in the undertaking and utilisation for notified SEZ investments, with deposits treated as part of the new asset's cost for calculating the exemption.
Act Rules Bills
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Capital gains exemption for industrial relocation to non urban areas conditional on reinvestment and deposit requirements.
Exemption of capital gains on transfer of assets for industrial undertakings shifting from urban to non urban areas is subject to reinvestment in qualifying assets (machinery, plant, buildings, land or rights therein) acquired within the prescribed timeframe; any shortfall between capital gains and cost of new assets is taxable, and unutilised gains must be deposited in a specified bank or institution before filing the return, with untapped deposits taxed after the statutory period; the definition of urban area and scheme specified expenditure govern eligibility.
Act Rules Bills
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Capital gains exemption for residential reinvestment preserved with clearer compliance and monetary caps under the 2025 proposal.
Clause 86 provides a capital gains exemption for individuals and HUFs who reinvest long-term capital gains from specified asset transfers (excluding residential houses) into a residential house in India within prescribed purchase or construction timeframes. The exemption is proportional when net consideration exceeds the replacement cost and full when replacement cost equals or exceeds net consideration. Unutilised gains must be deposited under a notified government scheme before filing returns, and exempted gains become taxable if the replacement asset is transferred within three years. Ownership of multiple residential houses or acquisition of another house within specified periods disqualifies the exemption.
Act Rules Bills
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Capital gains deferral on compulsory acquisition permits tax relief when compensation is reinvested in similar industrial assets.
Clause 84 provides a deferral regime for capital gains on compulsory acquisition where compensation reinvested in similar industrial land or buildings within three years is either exempt or adjusts the cost basis: excess gains over new asset cost are taxed as income and the new asset's cost is set to nil for future computations, while gains equal to or below cost reduce the asset's cost. Unutilised gains must be deposited by the return filing due date and are treated as part of the deemed cost; unutilised amounts after the specified period are charged as income and subject to notified withdrawal rules.
Act Rules Bills
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Capital gains exemption for reinvestment in specified bonds preserves non taxability subject to retention and anti abuse rules.
Clause 85 provides that capital gains from transfer of long term assets are not charged if the assessee reinvests whole or part of such gains in government notified bonds within six months, subject to a per year investment ceiling and a specified retention period; transfers, conversions, or loans against the new asset within the lock in are treated as taxable events and investments claiming this exemption cannot simultaneously claim alternative deductions.
Act Rules Bills
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Capital gains exemption for agricultural land: reinvest sale proceeds in new agricultural land within two years to defer tax.
Capital gains on transfer of agricultural land are not charged if proceeds are reinvested in new agricultural land within two years by individuals or HUFs who used the land for agriculture in the two years prior. Unutilised gains at filing must be deposited in a specified bank account and applied under a government-notified scheme; unused deposits after the prescribed period are taxed and may be withdrawn per the scheme. Excess gains are taxed under the bill's taxing provision and the new asset's cost is treated as nil for subsequent gains if sold within three years; otherwise the cost basis is reduced by the capital gains.
Act Rules Bills
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Capital gains reinvestment relief: deferral for gains when proceeds are reinvested in residential property with deposit safeguards.
Clause 82 permits deferral or exemption of capital gains from sale of residential property where proceeds are reinvested in another residential property, treating gains exceeding the new asset's cost as taxable. Unutilized gains must be deposited in a specified bank or institution under a notified scheme and such deposits count toward the new asset's cost. Deposited amounts not applied within the prescribed period become taxable though the clause provides for withdrawal of unused sums. The clause allows a one time option to invest in two houses subject to a gain threshold and imposes caps on eligible cost and gains to target relief.
Act Rules Bills
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Advance money treatment: deduction from cost of acquisition barred where the advance was included in total income.
Clause 81 requires that advance money retained during negotiations for transfer of a capital asset be deducted from the cost of acquisition (original cost, written down value, or fair market value) but prohibits that deduction where the advance has already been included in the assessee's total income under the statutory provision referenced, aligning with Section 51's objective while differing in the cross references and raising compliance and interpretive issues.

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PRUNING AND REVIEW OF CUSTOMS DUTY CONCESSIONS/ EXEMPTIONS

2 February, 2022

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IV. PRUNING AND REVIEW OF CUSTOMS DUTY CONCESSIONS/ EXEMPTIONS

A. Review of concessional rates of BCD prescribed to Capital Goods and Project Imports vide notification No. 50/2017 – Customs dated 30.6.2017:

The Customs duty rate structure on capital goods and project imports has been comprehensively reviewed and exemption on capital goods/ project imports are being phased out in a gradual manner. However, certain exemptions on capital goods would continue. Accordingly, the BCD exemption hitherto available on certain goods are being withdrawn by omitting the following entries of notification No. 50/2017Customs dated 30.6.2017, from the dates mentioned against each entry.

S.No.

S. No. of notification No. 50/2017

Description/ HS Code

(1)

(2)

(3)

Textile Sector

1.

399 [exemption is being phased out as per details in column (3)]

Goods (other than old and used) for use in man-made or synthetic fiber or yarn industry (84 or any other Chapter)

1. Concessional BCD rate to be withdrawn for Spindles, Yarn guides, Ballon Control Rings and Travellers [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as Machinery for continuous polymerization plant, Machinery for synthetic fibre plant, Machinery for synthetic filament yarn plant, Machinery for Regular/HWM Viscose Staple Fibre Plant, Machinery for Lyocell Fiber Plant, in this entry [w.e.f 1.4.2023]

2.

400 [w.e.f 1.4.2023]

Goods such as Machinery for garment sector, Machinery for manufacture of technical textiles, Woollen machinery items, Machinery for manufacture of non-wovens textiles, Machinery for manufacture of denim fabrics, Machinery for use with shuttleless looms etc. as specified in List 12 to the notification No. 50/2017-Customs, and parts for their manufacture for use in textiles industry

3.

432 [exemption is being phased out as per details in column (3)]

Goods (other than old and used) for use in the textile industry

1. Concessional BCD rate to be withdrawn for item no. 1, List 25: Effluent treatment unit with biopaq reactor, activate sludge process, activated carbon, ultrafiltration ozonisation facilities [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for item no. 3, List 25: Effluent treatment unit with automatic sensing devices, automatic controlled chemical dosing, dissolved air floatation (DAF), reverse osmosis, sludge dewatering, decanters, ultrafilters, vacuum filters to deliver water for reuse [w.e.f 1.4.2022]

3. Concessional BCD rate to be withdrawn for the remaining items such as singeing machines, yarn drying machines, knitting machines etc., in this entry. [w.e.f 1.4.2023]

4.

433 [w.e.f 1.4.2022]

Machinery or equipment for effluent treatment plant for handloom sector or handicraft sector

5.

434 [w.e.f 1.4.2023]

Machinery for use in the silk textile industry

6.

460 [w.e.f 1.4.2023]

Shuttle less looms and parts for their manufacture for use in the textile industry

7.

461 [exemption is being phased out as per details in column (3)]

Machineries such as Knitting, weaving machines

1. Concessional BCD rate to be withdrawn for Card Clothing (HS Code 8448 31 00) used in textile machinery i.e., Carding Machine [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items, such as machines for extruding, drawing, texturing, textiles machines, machines for preparing textile fibers, textile spinning machines, textile twisting machines, textile winding machines, weaving machines, knitting machines, auxiliary machines etc., in entry. [w.e.f 1.4.2023]

Power Sector

8.

397 [exemption is being phased out as per details in column (3)]

Goods specified in List 10 required for use in high voltage power transmission project

1. Concessional BCD rate to be withdrawn for 13 items [List 10 in the notification] that include Transformers, Reactor, Circuit Breaker etc. [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as High Voltage DC Divider and CT, High Voltage DC Reactor, High TRV Circuit Breaker for High Voltage DC application, Optical Current Transformer etc. in this entry. [w.e.f 1.4.2023]

9.

405 [exemption is being phased out as per details in column (3)]

Wind operated electricity generators, its parts and raw material, thereof

1. Concessional BCD rate to be withdrawn for item No. (1) & (3) of this entry that include wind operated electricity generators (WOEG) upto 30 kW, wind operated battery chargers upto 30kW and blades for the rotors of WOEG [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items, such as parts of wind operated electricity generators including special bearings, gear box, yaw components, wind turbine controllers etc. and parts thereof and parts of blades, raw materials of blades etc. in this entry. [w.e.f 1.4.2023]

10.

406 [w.e.f 1.4.2023]

Permanent magnets for manufacture of PM synchronous generators above 500KW for use in wind operated electricity generators

11.

413 [w.e.f 1.4.2022]

All goods, for renovation or modernization of a power generation plant (other than captive power generation plant)

12.

414 [w.e.f 1.4.2022]

All goods, imported by a manufacturer-supplier for the manufacture and supply of machinery and equipment to a power generation plant (other than captive power generation plant)

Petroleum Sector

13.

403 [w.e.f 1.4.2023]

Parts and raw materials for manufacture of goods to be supplied in connection with the purposes of off- shore oil exploration or exploitation

14.

409 [exemption is being phased out as per details in column (3)]

Goods specified in List 13 required for setting up crude petroleum refinery

1. Concessional BCD rate to be withdrawn for 11 items of List 13 that include utility systems, water treatment systems, air handling systems, boilers etc. [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as all types of Refinery Process Units, All types of Hydrogen Generation, Recovery and Purification Plants, All types of Process Subsystems, All types of Effluent Solids/Liquids/Gaseous Processing etc. in this S. No. [w.e.f 1.4.2023]

15.

410 [w.e.f 1.4.2022]

Kits and its parts required for the conversion of motor- spirit or diesel driven vehicles into Compressed Natural Gas driven or Propane driven or Liquefied Petroleum Gas driven vehicles

Leather Sector

16.

396 [w.e.f 1.4.2022]

Machinery or equipment for effluent treatment plant for leather industry

17.

439 [w.e.f 1.4.2023]

292 goods specified in List 27 to notification No. 50/2017Customs, designed for use in the leather industry or the footwear industry, like Air blast dust removing machine, Automatic Drying machine etc.

Food Packaging Sector

18.

455 [w.e.f 1.4.2023]

Machinery for filling, closing, sealing or labelling bottles, cans, boxes, bags or other containers

19.

458 [w.e.f 1.4.2023]

Machinery for the industrial preparation or manufacture of food or drink, other than machinery for the extraction or preparation of animal or fixed vegetable fats or oils

Other Sectors

20.

393 [w.e.f 1.4.2023]

(i) Cricket bat and hockey stick splice joining machine

(ii) Rugby ball or soccer ball stitching Machine

(iii) Moulds for soccer ball, basketball and volley ball

21.

394 [w.e.f 1.4.2023]

Bacteria removing clarifier

22.

395 [w.e.f 1.4.2023]

Marine seawater pumps with fibre impellers and Automatic fish/prawn feeder

23.

407 [w.e.f 1.4.2023]

Goods required for, -

(a) the substitution of ozone depleting substances (ODS);

(b) the setting up of new capacity with non – ODS technology.

24.

408 [w.e.f 1.4.2023]

Goods required for renovation, modernization or maintenance of a fertilizer plant

25.

436 [w.e.f 1.4.2023]

Spares, supplied with outboard motors for maintenance of such outboard motors

26.

440 [w.e.f 1.4.2023]

Fogging machines imported by a Municipal Committee, District Board etc.

27.

443 [w.e.f 2.2.2022]

Goods to be imported by or on behalf of security printing and minting corporation of India limited (SPMCIL) that include Plant or machinery or equipment, related spares and consumables for printing of banknotes, etc.

28.

444 [w.e.f 1.4.2023]

Geothermal ground source heat pumps

29.

445 [w.e.f 1.4.2023]

Goods for making of gem and jewellery –

(1) Automatic Chain Making machine,

(2) chain twisting machine,

(3) Spiral making machine,

(4) Rolling machine (combined Profile Groovers/Strip Making)

(5) Automatic Investing Machine/casting Machine

30.

448 [w.e.f 1.4.2023]

Specific agricultural implements and parts used for their manufacture that include paddy transplanter, sugarcane harvester, cotton picker etc.

31.

469 [w.e.f 1.4.2023]

Atmospheric water generator

32.

470 [w.e.f 1.4.2023]

Machinery for making wooden fiberboards

Project Imports

33.

597, 598, 599, 600, 601, 602, 603, 604, 605, 606

a. Project Imports for project such as

(i) Power Projects, including Nuclear and Solar Power

(ii) Coal Projects

(iii) Gas Projects

(iv) Iron Ore Projects

(v) Water Supply Projects

(vi) Mandi and Warehousing Projects for Food Grains

(vii) Other Projects

b. New projects registered after 30th September 2022 under project imports will attract 7.5% BCD rate with change in BCD Tariff rate to 7.5%.

c. Existing projects registered till 30th September 2022 under project imports will be grandfathered till 30th September 2023 attracting old BCD rates of 0%/2.5%/5% as applicable.

d. After 30th September 2023, all projects registered under project imports will attract 7.5% BCD rate.

B. Review of concessional rates of BCD prescribed in notification No. 50/2017 – customs dated 30.06.2017: The BCD exemption hitherto available on certain goods are being withdrawn by omitting some of the entries of notification No. 50/2017Customs dated 30.6.2017 as shown below. Additionally, modifications have also been made with respect to some of the entries of notification No. 50/2017-Customs dated 30.6.2017, wherein end-dates have been prescribed, and partial changes has been made to the exemptions. These changes are detailed below.

S. No.

S. No. of notification No. 50/ 2017

Description

 

Entries to be immediately omitted

 

1.

4

Atlantic Salmon

 

2.

26

Hazelnuts or filberts, shelled and in-shell

 

3.

28

Other nuts, shelled and in-shell

 

4.

33

Durians, other fresh fruits like Pomegranates, Tamarind, Sapota, Custard- apple, Bore, Lichi, etc. other than currants and gooseberries

 

5.

50

Seed Lac

 

6.

52

Dammar Batu

 

7.

82

Crude glycerin for use in the manufacture of soaps

 

8.

96

Tapioca and substitutes therefor prepared from starch

 

9.

122

Silica Sands

 

10.

124

Marble, travertine, granite other than rough marble and travertine blocks and marble slabs

 

11.

151

Kerosene imported by the Indian IOCL. BPCL, HPCL and IBP Company Limited for ultimate sale through the Public Distribution System

 

12.

159

Bio-based asphalt sealer and preservation agent; Millings remover and crack filler; Asphalt remover and corrosion protectant; Sprayer system for bio-based Asphalt and condition no. 14

 

13.

171

The goods specified in List 7, for the manufacture of laser and laser-based instrumentation and condition No. 17

 

14.

173

Goods used in manufacture of telecommunication grade impregnated glass reinforcement roving, namely: E-glass roving/ yarn, liquid absorbent polymer, polyurethane polymer and vinyl polymer

 

15.

175

Common Salt (including Rock salt, Sea salt and Table salt)

 

16.

187

Raw materials intermediates and consumables supplied by UNICEF for manufacture of DTP vaccines and condition No. 19

 

17.

233

Myrobalan fruit extract

 

18.

234

Triband Phosphor

 

19.

235

Ceramic Colours

 

20.

236

Glass frit and other glass, in the form of powder, granules or flakes

 

21.

241

Vinyl Polyethylene Glycol for use in manufacture of Poly Carboxylate Ether

 

22.

242

The following goods for use in the manufacture of Plasma Volume Expanders, namely: Hydroxyethyl starch and Dextran

 

23.

277

Mica glass tape for use in manufacture of insulated wire and cables

 

24.

293

Grape guard paper (paper used for packaging grapes)

 

25.

324

Monofilament long line system for tuna fishing and condition No. 34

 

26.

327

Samples of hand knotted carpets and condition No. 36

 

27.

328

Polyester Tyre Cord Fabric

 

28.

332

Parts of Umbrella

 

29.

216 & 481

Artificial Kidney (Dialyzer)

 

30.

216A & 481A

Parts for manufacture of Artificial Kidney

 

31.

402

Goods, for use in the manufacture of static converters of automatic data processing machines: PCBA, Transformer, Battery and Copper enameled wires

 

32.

424

Listed goods for paging goods and its parts

 

33.

425

Listed goods for Public Mobile Radio Trunked Service (PMRTS) and its parts

 

34.

431

Goods used for Research and development in Agro-Chemical Sector Unit

 

35.

449

Goods for use in the manufacture of refrigerator compressor namely: -

(i) C-Block compressor;

(ii) Crankshafts.

 

36.

450

Over Load Protector (OLP) and positive thermal coefficient for use in the manufacture of refrigerator compressor

 

37.

501

Recorded magnetic tapes and floppy diskettes, imported by the University Grants Commission for use in Computers

 

38.

588

Synthetic tracks and equipment to lay synthetic tracks.

 

39.

589

(i) Asphalt resurfacer;

(ii) Acrylic resurfacer;

(iii) Cushion coat;

(iv) Acrylic colour concentrate;

(v) Acrylic marking paint; and

(vi) Polytan in powder or granule form

 

40.

590

Requisites for games and sports

 

Entries where End-dates are prescribed

 

41.

289

Wood in chips for use in manufacture of paper, paperboard & newsprint [End-date of 31.03.2023 is prescribed]

 

42.

430

Goods used for Research and Development purpose in pharmaceutical and bio- technology sector. [End-date of 31.03.2023 is prescribed]

 

43.

479

Mono or Bi polar Membrane electrolysers and parts; Membrane and parts; Parts, other than those for caustic soda unit or caustic potash unit [End-date of 31.03.2024 is prescribed]

 

44.

594

Snow-skis and other snow-ski Equipment; Water-skis, surfboards, sailboards and other water-sport equipment [End-date of 31.03.2023 is prescribed]

 

Section 25 (4A) of the Customs Act, inserted vide Finance Act, 2021, prescribes that where any exemption is granted subject to any condition under sub section (1), such exemption shall, unless otherwise specified or varied or rescinded, be valid up to 31st day of March falling immediately after two years from the date of such grant or variation. Accordingly, conditional exemptions will have validity in terms of this subsection. Therefore, entry being impacted on account of this clause have been identified and an explanation has been inserted in the notification No. 50 /2017-Customs.

[“Explanation: Under the provisions of subsection (4A) of section 25 of the Customs Act, 1962, it is hereby specified that the conditional exemptions granted under the S. Nos. of the Table to the notification, mentioned under column (2) of the Table below, for which period of validity is not specified otherwise, shall unless varied or rescinded, be valid up to the date mentioned in the corresponding entry in column (3) of the said Table. ….” ]

 

The following entries, unless varied, will have validity up to 31.03.2023.

 

45.

16, 90, 133, 139, 150, 155, 164, 165, 168, 183, 184, 188, 204, 213, 237, 238, 253, 254, 255, 258, 259, 260, 261, 269, 271, 276, 277A, 279, 280, 325, 333, 334, 339, 340, 341, 341A, 353, 364A, 374, 375, 378, 379, 380, 381, 387, 392, 415, 415A, 416, 417, 418, 419, 420, 421, 426, 428, 429, 441, 462, 463, 464, 471, 472, 475, 478, 482, 489B, 495, 497, 504, 509, 510, 511, 512, 512A, 516, 519, 534, 535, 535A, 536, 538, 540, 542, 543, 544, 546, 549, 550, 559, 565, 566, 567, 568, 570, 575, 577, 578A, 579, 580, 581, 583, 593, 612

 

The following entries [having been reviewed in this exercise done this year], unless varied, will have validity up to 31.03.2024.

 

46.

17, 80A, 104, 172, 191, 257, 257A, 257B, 257C, 264A, 290, 292, 293A, 296A, 326, 329, 345A, 354, 355, 356, 357, 422, 423, 442, 446, 451, 465, 517, 591

 

Entries omitted being in the nature of technical change

 

47.

31

Dried Grapes (Raisins, Other)

 

48.

161

Electrical Energy originating from Nepal and Bhutan

 

49.

192

Alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio- diesels

 

50.

215

The Blood group sera, namely: -Anti C., anti E., anti c., anti e., anti M., anti N., anti Le., anti-Pl., anti S., antihuman globulin sera, anti F., anti kell, anti cellane, anti Jka., and anti I

 

51.

224

Potassium Nitrate, in a form indicative of its use for manurial purpose

 

52.

248

Dipping oil, Paclobutrazol (Cultar)

 

53.

466

Parts/ sub-parts, components or accessories for use in the manufacture of tablet computer.

 

54.

485

Deflection components for use in colour monitors for computers or for use in PCBs of colour monitors for computers

55.

496

Stepper Motors for use in the manufacture of goods falling under heading 8471

56.

505

Parts of Set-top box for use in its manufacture

57.

506

Parts/sub-parts, components for use in manufacture of broadband modem Other than PCBA, charger.

58.

507

Parts/ sub-parts, components and accessories for use in manufacture of routers other than PCBA, charger.

59.

508

Parts/ sub-parts, components and accessories for use in manufacture of set top boxes for gaining access to internet other than PCBA, charger.

Entries with partial changes

60.

15

Frozen Semen and Frozen semen equipment

[Exemption to continue only for bovine semen]

61.

104

List of specified goods used in the processing of sea-foods

[Exemption to continue for selected items and accordingly, exemption has been continued for 16 items and 4 new items has been added to the list]

62.

132

List A items:

1. Aluminous cement

2. Silicon metal (99%)

3. Micro/fumed silica

4. Brown fused alumina

5. Sintered/tabular alumina

6. Fused zirconia

7. Sodium hexameta phosphate

8. Silicon carbide

9. Boron carbide

10. Reactive alumina

11. Fused silica; and List B items: Phenolic resin

[Exemption to continue for list A with end-date of 31.03.2023 and discontinue for list B immediately]

63.

166

(A) Drugs, medicines, diagnostic kits or equipment specified in List 3.

(B) Bulk drugs used in the manufacture of drugs or medicines at (A)

[Exemptions under List-3 is being rationalized]

Note: Items included in List 3 under S. No. 166 provides for a conditional concessional rate of 5% on the imports of drugs, medicines, diagnostic kits, etc. along with bulk drugs used in the manufacture of such drugs or medicines. The items in the said list has been reviewed. Accordingly, 35 items have been removed from the List and 1 item [influenza vaccine] in the List would be omitted after 18 months. For further details, please refer to notification No. 02/2022 – Customs dated the 1st February, 2022.

64.

167

(A) Lifesaving drugs/medicines including their salts and esters and diagnostic test kits specified in List 4.

(B) Bulk drugs used in the manufacture of drugs or medicines at (A).

[Exemptions under List-4 is being rationalized in the manner as detailed in the Note at S. No. 63 above; Entry at S. No. 167 (C) has been omitted as a similar exemption is available under S. No. 607 (b) of notification No. 50/2017 – Customs]

Note: Items included in List 4 under S. No. 167 provides for customs duty exemption on the imports of Lifesaving drugs/medicines, diagnostic kits, etc. along with bulk drugs used in the manufacture of such goods. The items in the said list has been reviewed. Accordingly, 3 items in List 4 [Diagnostic agent for detection of Hepatitis B antigen, Diagnostic kits for detection of HIV antibodies, Enzyme Linked Immuno absorbent Assay kits (ELISA kits)] have been transferred to List 3, 2 bulk drugs [bulk drug substance for poliomyelitis vaccine (inactivated and live) and Monocomponent Insulin] that are currently included in List 4 would be transferred to List 3 after 2-3 years, and 36 items from List 4 have been omitted. For further details, please refer to notification No. 02/2022 – Customs dated the 1st February, 2022.

65.

404

Goods required in connection with Petroleum operations.

[Rationalization of the exemption provided for goods used in petroleum operations as specified in List 33 under S. No. 404, and simplification of the associated condition no. 48 for availing such exemption and disposal of such goods]

Note: A definition has been provided for a licensee, lessee, contractor or sub-contractor for the purpose of this entry. Also, the requirement of producing a certificate from Directorate General of Hydrocarbons (DGH) for import or each transaction under this entry has been dispensed with. Further, the list of items falling under List 33 has been pruned down and have been made more specific by prescribing the concerned HS Codes.

66.

513

Parts or components for use in manufacture of populated printed circuit board of various telecom and electronics related products, and its sub-parts.

[Exemption to continue for Digital Video Recorder(DVR)/Network Video Recorder(NVR) falling under tariff item 8521 90 90; CCTV Camera/IP Camera falling under tariff item 8525 20 80; Reception apparatus for television but not designed to incorporate a video display falling under tariff item 85287100]

C. Customs duty exemptions which have been granted through certain other standalone notifications, have also been reviewed:

S.No.

Notification No.

Amendment

I. The following notifications have been modified in the manner as detailed below:

1.

39/1996-Customs dated 23.07.1996

This notification prescribes concessional rate of customs duty on items relating to Defence and internal security forces. Upon review of exemption, entries under S. Nos. 14, 15, 17, 18, 19, 24, 29, 30, 31, 31A, 31B, 32, 33, 35, 36, 38, 39, 40, 41, 42, 43 have been omitted.

[Sunset date of 31.03.2023 has been prescribed for the remaining entries as per Section 25(4A) of the Customs Act, 1962]

2.

25/1999-Customs dated 28.02.1999

This notification prescribes concessional rate of customs duty on items relating to import of raw materials and parts for use in manufacture of electronic items.

Upon review of exemption, it has been pruned to remove redundant exemption entries and exemptions related to obsolete items and accordingly, more than 125 entries have been omitted.

[Sunset date of 31.03.2024 been applied for the remaining entries]

3.

25/2002-Customs dated 01.03.2002

This notification prescribes concessional rate of customs duty on import of items relating to capital goods used in manufacture of electronic items. [Sunset date of 31.03.2024 been applied for the all entries]

4.

27/2011-Customs dated 01.03.2011

This notification prescribes concessional rate of customs duty on export of goods. Upon review of the exemption, the entries under S. Nos. 20B, 63 and 64 have been omitted as these entries have become obsolete.

5.

37/2017-Customs dated 30.06.2017

This notification prescribes concessional rate of customs duty on import of items relating to internal security agencies. Upon review of exemption entries, the entries under S. Nos. 6 and 7 have been omitted as their validity has expired.

II. The following obsolete/expired notifications have been rescinded as detailed below:

S.No.

Notification No.

Description

1.

190/1978-Customs dated 22.09.1978

These notification provides for additional duty of customs on import of transformer oil equivalent to such portion of the excise duty leviable on the raw material commonly known as transformer oil base stock or transformer oil feedstock.

2.

191/1978-Customs dated 22.09.1978

3.

10/1995-Customs dated 7.3.1995

This notification prescribes concessional rate of customs duty on import inputs imported for manufacturing of Iron & Steel intermediates.

4.

26/1999-Customs dated 28.2.1999

This notification prescribes concessional rate of basic customs duty on import of kerosene imported by a manufacturer of linear alkyl benzene for extracting N-Paraffin.

5.

27/2004-Customs dated 23.01.2004

This notification prescribes concessional rate of customs duty on import of specified goods imported for use in manufacture of certain chemicals.

6.

14/2006-Customs dated 01.03.2006

This notification prescribes concessional rate of customs duty on import of specified varieties of woven fabrics falling under Chapters 52, 54, 55 and 58.

The entries of this notification have been merged in notification No. 82/2017-Customs.

7.

48/2006-Customs dated 26.05.2006

This notification prescribes concessional rate of customs duty on import of woven fabrics of carded/combed wool or fine animal hair. The entries of this notification have been merged in notification No. 82/2017-Customs.

8.

90/2007-Customs dated 26.07.2007

This notification prescribes concessional rate of additional duty of customs on import of items related to Electronics and Information Technology goods.

9.

08/2011-Customs dated 14.02.2011

This notification prescribes exemption from the whole of the additional duty of customs, leviable thereon under subsection (1) of section 3 of the said Customs Tariff Act, on jute products imported from Bangladesh or Nepal.

The notification has been rescinded as post introduction of GST, the jute products attract integrated tax on imports.

10.

24/2011-Customs dated 1.03.2011

This notification exempts Basic Customs Duty on copper concentrate as is equivalent to the duty of customs leviable on the value of Gold and silver contained in such copper concentrate.

11.

49/2013-Customs dated 29.11.2013

This notification prescribed concessional rate of customs duty on import of Anti-Tuberculosis Drugs, Diagnostics and Equipment and had lapsed on 1st April, 2016.

12.

23/2014-Customs dated 11.07.2014

This notification prescribed concessional rate of customs duty on import of Drugs & equipment imported for National AIDS Control Programme and had lapsed on 1st April, 2015.

13.

37/2015-Customs dated 10.06.2015

This notification prescribed concessional rate of customs duty on import of Anti-Retroviral Drugs (ARV Drugs) and had lapsed on 1st April, 2016.

14.

11/2016-Customs dated 01.03.2016

This notification prescribes concessional rate of customs duty on import of software recorded media.

15.

20/2020-Customs dated 9.04.2020

This notification prescribes concessional rate of customs duty on import of Face Masks, Surgical Masks, Ventilators, COVID-19 Testing Kits, etc. and had lapsed on 30th September, 2020.

16.

40/2020-Customs dated 28.10.2020

This notification prescribes concessional rate of customs duty on import of Potatoes under Tariff Rate Quota (TRQ) and had lapsed on 31st January, 2021.

D. Inclusion of End-date as per Section 25(4A) of the Customs Act, 1962, in certain stand-alone notifications:

S.No.

Notification No./ Entry of the notification No.

Amendment

1.

146/94-Customs dated 13.07.1994

This notification prescribes concessional rate of customs duty on specified sports goods, equipment and requisites imported by National Sports Federation

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

2.

147/94-Customs dated 13.07.1994

This notification prescribes concessional rate of customs duty on exemption to Fire arms and ammunition for renowned shot

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

3.

50/96-Customs dated 23.07.1996

This notification prescribes concessional rate of customs duty on equipment, instrument, raw materials, components, pilot plants, computer software for R&D project

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

4.

30/2004-Customs dated 28.01.2004

This notification prescribes concessional rate of customs duty on import of second hand computers as donation

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

5.

81/2005-Customs dated 08.09.2005

This notification prescribes concessional rate of customs duty on machinery/components for initial setting up of power generation project

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

6.

5/2017-Customs dated 02.02.2017

This notification prescribes concessional rate of customs duty on machinery, equipment, apparatus, components and appliances for initial setting up of fuel cell based system for generation of power

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

7.

16/2017-Customs dated 20.04.2017

This notification prescribes concessional rate of customs duty on specified drugs and medicines supplied free of cost to patients

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

8.

Serial No. 2 of 32/2017-Customs dated 30.06.2017

This notification prescribes concessional rate of customs duty on art work created abroad by Indian artist and sculptures, antique books more than 100-year-old.

[The entry, unless varied or rescinded, will have validity up to 31.03.2023.]

 


Full Text:

Budget 2022-23 + FINANCE Bill, 2022

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Acts Income Tax