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THE FINANCE (NO. 2) BILL, 2019

Jul 05, 2019

Bill No. 55 of 2019



THE FINANCE (NO.2) BILL, 2019

AS INTRODUCED IN LOK SABHA

 

THE FINANCE (NO.2) BILL, 2019
_________
ARRANGEMENT OF CLAUSES
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CHAPTER I
PRELIMINARY

CLAUSES
1.Short title and commencement.


CHAPTER II
RATES OF INCOME-TAX

2. Income-tax.


CHAPTER III
DIRECT TAXES

Income-tax

3. Amendment of section 2.
4. Amendment of section 9.
5. Amendment of section 9A.
6. Amendment of section 10.
7. Amendment of section 12AA.
8. Amendment of section 13A.
9. Amendment of section 35AD.
10. Amendment of section 40.
11. Amendment of section 40A.
12. Amendment of section 43.
13. Amendment of section 43B.
14. Amendment of section 43CA.
15. Amendment of section 43D.
16. Amendment of section 44AD.
17. Amendment of section 47.
18. Amendment of section 50C.
19. Amendment of section 50CA.
20. Amendment of section 54GB.
21. Amendment of section 56.
22. Substitution of section 79.
23. Amendment of section 80C.
24. Amendment of section 80CCD.
25. Insertion of new sections 80EEA and 80EEB.
26. Amendment of section 80-IBA.
27. Amendment of section 80JJAA.
28. Amendment of section 80LA.
29. Amendment of section 92CD.
30. Amendment of section 92CE.
31. Substitution of section 92D.
32. Amendment of section 111A.
33. Amendment of section 115A.
34. Amendment of section 115JB.
35. Amendment of section 115-O.
36. Amendment of section 115QA.
37. Amendment of section 115R.
38. Amendment of section 115UB.
39. Amendment of section 139.
40. Amendment of section 139A.
41. Amendment of section 139AA.
42. Amendment of section 140A.
43. Amendment of section 143.
44. Amendment of section 194DA.
45. Amendment of section 194-IA.
46. Insertion of new sections 194M and 194N.
47. Amendment of section 195.
48. Amendment of section 197.
49. Amendment of section 201.
50. Substitution of section 206A.
51. Amendment of section 228A.
52. Amendment of section 234A.
53. Amendment of section 234B.
54. Amendment of section 234C.
55. Amendment of section 239.
56. Amendment of section 246A.
57. Amendment of section 269SS.
58. Amendment of section 269ST.
59. Insertion of new section 269SU.
60. Amendment of section 269T.
61. Amendment of section 270A.
62. Insertion of new section 271DB.
63. Amendment of section 271FAA.
64. Amendment of section 272B.
65. Amendment of section 276CC.
66. Amendment of section 285BA.
67. Amendment of section 286.
68. Amendment of rule 68B of Second Schedule.

CHAPTER IV
INDIRECT TAXES
Customs

CLAUSES

69. Amendment of section 41.
70. Insertion of New Chapter XIIB.
71. Amendment of section 103.
72. Amendment of section 104.
73. Amendment of section 110.
74. Amendment of section 110A.
75. Insertion of new section 114AB.
76. Amendment of section 117.
77. Amendment of section 125.
78. Amendment of section 135.
79. Amendment of section 149.
80. Amendment of section 157.
81. Amendment of section 158.
82. Amendment of notifications issued under sub-section (1) of section 25 of Customs Act, retrospectively.
83. Amendment of notification issued under sub-section (1) of section 25 of Customs Act and sub-section (12) of section 3 of Customs Tariff Act, retrospectively.
84. Retrospective effect of notification issued under sub-section (1) of section 25 of Customs Act and sub¬section (12) of section 3 of Customs Tariff Act.

Customs Tariff

85. Amendment of section 9.
86. Amendment of section 9C.
87. Amendment of First Schedule.
88. Validation of modification in classification of certain goods leviable to anit-dumbing duty with retrospective effect.
89. Validation of modification in description of goods with retrospective effect.

Central Excise

90. Amendment of Fourth Schedule.

Central Goods and Services tax

CLAUSES

91. Amendment of section 2.
92. Amendment of section 10.
93. Amendment of section 22.
94. Amendment of section 25.
95. Insertion of new section 31A.

96. Amendment of section 39.
97. Amendment of section 44.
98. Amendment of section 49.
99. Amendment of section50.
100. Amendment of section 52.
101. Insertion of new section 53A.
102. Amendment of section 54.
103. Amendment of section 95.
104. Insertion of new sections 101A, 101Band 101C.
105. Amendment of section 102.
106. Amendment of section 103.
107. Amendment of sectionl04.
108. Amendment of sectionl 05.
109. Amendment of section 106.
110. Amendment of section 168.
111. Amendment of section 171.
112. Amendment of notification number G.S.R. 674(E) issued under sub-section (1) of section 11 of the Central Goods and Services Tax Act, retrospectively.

Integrated Goods and Services tax

113. Insertion of new section 17A.
114. Amendment of notification number G.S.R. 667(E) issued under sub-section (1) of section 6 of Integrated Goods and Services Tax Act, retrospectively.

Union Territory Goods and Services tax

115. Amendment of notification number G.S.R. 711 (E) issued under sub-section (1) of section 8 of Union Territory Goods and Services Tax Act, retrospectively.

Service tax

116. Special provision for retrospective exemption from service tax on service by way of grant of liquor licence.
117. Special provision for retrospective exemption from service tax in certain cases relating to services provided by Indian Institutes of Management to students.
118. Special provision for retrospective exemption from service tax in certain cases relating to long term lease of plots for development of infrastructure for financial business.

CHAPTER V
SABKA VISHWAS LEGACY DISPUTE RESOLUTION SCHEME, 2019

CLAUSES

119. Short title and commencement.
120. Definitions.
121. Application of Scheme to indirect tax enactments.
122. Tax Dues.
123. Relief available under Scheme.
124. Declaration under Scheme.
125. Verification of declaration by designated committee.
126. Issue of statement by designated committee.
127. Rectification of errors.
128. Issue of discharge certificate to be conclusive of matter and time period.
129. Restriction of Scheme.
130. Removal of doubts.
131. Powerto make rules.
132. Powerto issue orders, instructions, etc.
133. Removal of difficulties.
134. Protection to officers.

CHAPTER VI
MISCELLANEOUS
PARTI
AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934

135. Commencement of this Part.
136. Amendment of section 45-IA.
137. Insertion of new sections 45-ID and 45-IE.
138. Insertion of new section 45MAA.
139. Insertion of new section 45MBA.
140. Insertion of new section 45NAA.
141. Amendment of section 58B.
142. Amendment of section 58G.

PART II
AMENDMENT TO THE INSURANCE ACT, 1938

143. Amendment of Act 4 of 1938.

PART III
AMENDMENTS TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956

144. Commencement of this Part.
145. Amendment of Act 42 of 1956.

PART IV
AMENDMENTS TO THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1970 CLAUSES

146. Commencement of this Part.
147. Amendment of Act 5 of 1970.

PART V
AMENDMENT TO THE GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT, 1972

148. Amendment of Act 57 of 1972.

PART VI
AMENDMENT TO THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1980

149. Commencement of this Part.
150. Amendment of Act 40 of 1980.

PART VII
AMENDMENTS TO THE NATIONAL HOUSING BANK ACT, 1987

151. Commencement of this Part.
152. Substitution of heading of Chapter V.
153. Amendment of section 29A.
154. Amendment of section 29B.
155. Amendment of section 29C.
156. Substitution of section 30.
157. Substitution of section 30A.
158. Substitution of section 31.
159. Substitution of section 32.
160. Amendment of section 33.
161. Substitution of section 33A.
162. Amendment of section 33B.
163. Amendment of section 34.
164. Amendment of section 35.
165. Amendment of section 35A.
166. Substitution of section 35B.
167. Amendment of section 44.
168. Amendment of section 46.
169. Amendment of section 49.
170. Amendment of section 51.
171. Substitution of section 52A.

PART VIII
AMENDMENTS TO THE PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988 CLAUSES

172. Amendment of section 23.
173. Amendment of section 24.
174. Amendment of section 26.
175. Insertion of new sections 54A and 54B.
176. Amendment of section 55.

PART IX
AMENDMENTS TO THE SECURTIES AND EXCHANGE BOARD OF INDIA ACT, 1992

177. Commencement of this Part.
178. Amendment of section 14.
179. Amendment of section 15C.
180. Amendment of section 15F.
181. Insertion of new section 15HAA.

PART X
AMENDMENTS TO THE CENTRAL ROAD AND INFRASTRUCTURE FUND ACT, 2000

182. Amendment of section 10.
183. Amendment of section 11.
184. Amendment of section 12.

PART XI
AMENDMENT TO THE FINANCE ACT, 2002

185.Amendment of Act 20 of 2002.

PART XII
AMENDMENT TO THE UNIT TRUST OF INDIA (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 2002

186. Amendment of Act 58 of 2002.

PART XIII
AMENDMENTS TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

187. Amendment of section 2.
188. Amendment of section 12A.
189. Insertion of new section 12AA.
190. Amendment of section 15.
191. Insertion of new section 72A.
192. Amendment of section 73.

PART XIV
AMENDMENT TO THE FINANCE (NO.2) ACT, 2004 CLAUSES

193. Amendment of Act 23 of 2004.

PART XV
AMENDMENT TO THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007

194. Amendment of Act 51 of 2007.

PART XVI
AMENDMENTS TO THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015

195. Amendment of section 2.
196. Amendment of section 10.
197. Amendment of section 17.
198. Amendment of section 84.

PART XVII
AMENDMENTS TO THE FINANCE ACT, 2016

199. Amendment of section 187.
200. Amendment of section 191.

PART XVIII
AMENDMENT TO THE FINANCE ACT, 2018

201. Amendment of Act 13 of 2018.
202. Repeal.

 

THE FIRST SCHEDULE.
THE SECOND SCHEDULE.
THE THIRD SCHEDULE.
THE FOURTH SCHEDULE.
THE FIFTH SCHEDULE.



 

 

AS INTRODUCED IN LOK SABHA

ON 5TH JULY, 2019

 

Bill No. 55 of 2019

 

THE FINANCE (NO. 2) BILL, 2019

A

BILL

to give effect to the financial proposals of the Central Government for the financial year 2019-2020.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

 

CHAPTER I 

PRELIMINARY

1. Short title and commencement.

(1) This Act may be called the Finance (No. 2) Act, 2019.

 (2) Save as otherwise provided in this Act,—

 (a) sections 2 to 68 shall be deemed to have come into force on the 1st day of April, 2019;

 (b) sections 91 to 111 and section 113 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

 

CHAPTER II

RATES OF INCOME-TAX

2. Income-tax. 

(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2019, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax shall be increased by a surcharge, for the purposes of the Union, calculated in each case in the manner provided therein. 

(2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds two lakh fifty thousand rupees, then,—

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and 

 (b) the income-tax chargeable shall be calculated as follows:—

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased by a sum of two lakh fifty thousand rupees, and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income as so increased were the total income;

(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income:

Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words “two lakh fifty thousand rupees”, the words “three lakh rupees” had been substituted:

Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words “two lakh fifty thousand rupees”, the words “five lakh rupees” had been substituted.

(3) In cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be:

Provided that the amount of income-tax computed in accordance with the provisions of section 111A or section 112 or section 112A of the Income-tax Act shall be increased by a surcharge, for the purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule:

Provided further that in respect of any income chargeable to tax under section 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA, 115BBF, 115BBG, 115E, 115JB or 115JC of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for the purposes of the Union, calculated,—

(a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—

(i) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax; and

(ii) having a total income exceeding one crore rupees, at the rate of fifteen per cent. of such income-tax;

(b) in the case of every co-operative society or firm or local authority, at the rate of twelve per cent. of such income-tax, where the total income exceeds one crore rupees;

(c) in the case of every domestic company,—

(i) at the rate of seven per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of twelve per cent. of such income-tax, where the total income exceeds ten crore rupees;

(d) in the case of every company, other than a domestic company,—

(i) at the rate of two per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such income-tax, where the total income exceeds ten crore rupees:

Provided also that in the case of persons mentioned in (a) above, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds,—

(i) fifty lakh rupees but does not exceed one crore rupees, the total amount payable as incometax and surcharge thereon shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(ii) one crore rupees, the total amount payable as income-tax and surcharge thereon shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided also that in the case of persons mentioned in (b) above, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds one crore rupees, the total amount payable as income-tax on such income and surcharge thereon shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees:

Provided also that in respect of any income chargeable to tax under clause (i) of sub-section (1) of section 115BBE of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for the purposes of the Union, calculated at the rate of twenty-five per cent. of such income-tax.

(4) In cases in which tax has to be charged and paid under sub-section (2A) of section 92CE or section 115-O or section 115QA or sub-section (2) of section 115R or section 115TA or section 115TD of the Income-tax Act, the tax shall be charged and paid at the rates as specified in those sections and shall be increased by a surcharge, for the purposes of the Union, calculated at the rate of twelve per cent. of such tax.

(5) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D, 194LBA, 194LBB, 194LBC and 195 of the Income-tax Act, at the rates in force, the deductions shall be made at the rates specified in Part II of the First Schedule and shall be increased by a surcharge, for the purposes of the Union, calculated in cases wherever prescribed, in the manner provided therein.

(6) In cases in which tax has to be deducted under sections 192A, 194C, 194DA, 194E, 194EE, 194F, 194G, 194H, 194-I, 194-IA, 194-IB, 194-IC, 194J, 194LA, 194LB, 194LBA, 194LBB, 194LBC, 194LC, 194LD, 194M, 194N, 196B, 196C and 196D of the Income-tax Act, the deductions shall be made at the rates specified in those sections and shall be increased by a surcharge, for the purposes of the Union,—

(a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, being a non-resident, calculated,—

(i) at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds fifty lakh rupees but does not exceed one crore rupees;

(ii) at the rate of fifteen per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed two crore rupees;

(iii) at the rate of twenty-five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds two crore rupees but does not exceed five crore rupees;

(iv) at the rate of thirty-seven per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds five crore rupees;

(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees;

(c) in the case of every company, other than a domestic company, calculated,—

(i) at the rate of two per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees.

(7) In cases in which tax has to be collected under the proviso to section 194B of the Income-tax Act, the collection shall be made at the rates specified in Part II of the First Schedule, and shall be increased by a surcharge, for the purposes of the Union, calculated, in cases wherever prescribed, in the manner provided therein.

(8) In cases in which tax has to be collected under section 206C of the Income-tax Act, the collection shall be made at the rates specified in that section and shall be increased by a surcharge, for the purposes of the Union,—

(a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, being a non-resident, calculated,—

(i) at the rate of ten per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds fifty lakh rupees but does not exceed one crore rupees;

(ii) at the rate of fifteen per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed two crore rupees;

(iii) at the rate of twenty-five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the collection exceeds two crore rupees but does not exceed five crore rupees;

(iv) at the rate of thirty-seven per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds five crore rupees;

(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees;

(c) in the case of every company, other than a domestic company, calculated,—

(i) at the rate of two per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crore rupees.

(9) Subject to the provisions of sub-section (10), in cases in which income-tax has to be charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the Income-tax Act or deducted from, or paid on, income chargeable under the head “Salaries” under section 192 of the said Act or in which the “advance tax” payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, “advance tax” shall be charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and such tax shall be increased by a surcharge, for the purposes of the Union, calculated in such cases and in such manner as provided therein:

Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act apply, “advance tax” shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be:

Provided further that the amount of “advance tax” computed in accordance with the provisions of section 111A or section 112 or section 112A of the Income-tax Act shall be increased by a surcharge, for the purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part III of the First Schedule:

Provided also that in respect of any income chargeable to tax under section 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA, 115BBF, 115BBG, 115E, 115JB or 115JC of the Income-tax Act, “advance tax” computed under the first proviso shall be increased by a surcharge, for the purposes of the Union, calculated,—

(a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—

(i) at the rate of ten per cent. of such “advance tax”, where the total income exceeds fifty lakh rupees but does not exceed one crore rupees;

(ii) at the rate of fifteen per cent. of such “advance tax”, where the total income exceeds one crore rupees but does not exceed two crore rupees;

(iii) at the rate of twenty-five per cent. of such “advance tax”, where the total income exceeds two crore rupees but does not exceed five crore rupees;

(iv) at the rate of thirty-seven per cent. of such “advance tax”, where the total income exceeds five crore rupees;

(b) in the case of every co-operative society or firm or local authority at the rate of twelve per cent. of such “advance tax”, where the total income exceeds one crore rupees;

(c) in the case of every domestic company,—

(i) at the rate of seven per cent. of such “advance tax”, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of twelve per cent. of such “advance tax”, where the total income exceeds ten crore rupees;

(d) in the case of every company, other than a domestic company,—

(i) at the rate of two per cent. of such “advance tax”, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such “advance tax”, where the total income exceeds ten crore rupees:

Provided also that in the case of persons mentioned in (a) above, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds,—

(a) fifty lakh rupees but does not exceed one crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon shall not exceed the total amount payable as “advance tax” on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees but does not exceed two crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon shall not exceed the total amount payable as “advance tax” on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees;

(c) two crore rupees but does not exceed five crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon shall not exceed the total amount payable as “advance tax” on a total income of two crore rupees by more than the amount of income that exceeds two crore rupees;

(d) five crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon shall not exceed the total amount payable as “advance tax” on a total income of five crore rupees by more than the amount of income that exceeds five crore rupees:

Provided also that in the case of persons mentioned in (b) above, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds one crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon shall not exceed the total amount payable as “advance tax” on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon, shall not exceed the total amount payable as “advance tax” on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon, shall not exceed the total amount payable as “advance tax” and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees:

Provided also that in respect of any income chargeable to tax under clause (i) of sub-section (1) of section 115BBE of the Income-tax Act, the “advance tax” computed under the first proviso shall be increased by a surcharge, for the purposes of the Union, calculated at the rate of twenty-five per cent. of such “advance tax”.

(10) In cases to which Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income exceeding five thousand rupees, in addition to total income and the total income exceeds two lakh fifty thousand rupees, then, in charging income-tax under sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the said Act or in computing the “advance tax” payable under Chapter XVII-C of the said Act, at the rate or rates in force,—

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose of charging or computing such income-tax or, as the case may be, “advance tax” in respect of the total income; and

(b) such income-tax or, as the case may be, “advance tax” shall be so charged or computed as follows:—

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or “advance tax” shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased by a sum of two lakh fifty thousand rupees, and the amount of income-tax or “advance tax” shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income were the total income;

(iii) the amount of income-tax or “advance tax” determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, “advance tax” determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, “advance tax” in respect of the total income:

Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words “two lakh fifty thousand rupees”, the words “three lakh rupees” had been substituted:

Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words “two lakh fifty thousand rupees”, the words “five lakh rupees” had been substituted:

Provided also that the amount of income-tax or “advance tax” so arrived at, shall be increased by a surcharge for the purposes of the Union, calculated in each case, in the manner provided therein.

(11) The amount of income-tax as specified in sub-sections (1) to (3) and as increased by the applicable surcharge, for the purposes of the Union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for the purposes of the Union, to be called the “Health and Education Cess on income-tax”, calculated at the rate of four per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance quality health services and universalised quality basic education and secondary and higher education.

(12) The amount of income-tax as specified in sub-sections (4) to (10) and as increased by the applicable surcharge, for the purposes of the Union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for the purposes of the Union, to be called the “Health and Education Cess on income-tax”, calculated at the rate of four per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance quality health services and universalised quality basic education and secondary and higher education:

Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India.

(13) For the purposes of this section and the First Schedule,—

(a) “domestic company” means an Indian company or any other company which, in respect of its income liable to income-tax under the Income-tax Act, for the assessment year commencing on the 1st day of April, 2019, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income;

(b) “insurance commission” means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance);

(c) “net agricultural income” in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule;

(d) all other words and expressions used in this section and the First Schedule but not defined in this sub-section and defined in the Income-tax Act shall have the meanings, respectively, assigned to them in that Act.

CHAPTER III

DIRECT TAXES

Income-tax

3. Amendment of section 2.

In section 2 of the Income-tax Act, in clause (19AA), in sub-clause (iii), the following proviso shall be inserted with effect from the 1st day of April, 2020, namely:—

“Provided that the provisions of this sub-clause shall not apply where the resulting company records the value of the property and the liabilities of the undertaking or undertakings at a value different from the value appearing in the books of account of the demerged company, immediately before the demerger, in compliance to the Indian Accounting Standards specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015;”.

  1. Amendment of section 9

In section 9 of the Income-tax Act, in sub-section (1), after clause (vii), the following clause shall be inserted with effect from the 1st day of April, 2020, namely:––

“(viii) income of the nature referred to in sub-clause (xviia) of clause (24) of section 2, arising from any sum of money paid, or any property situate in India transferred, on or after the 5th day of July, 2019 by a person resident in India to a person outside India.”.

  1. Amendment of section 9A.

In section 9A of the Income-tax Act, in sub-section (3),––

(i) in clause (j), in the first proviso, for the words “at the end of such previous year”, the words “at the end of a period of six months from the last day of the month of its establishment or incorporation, or at the end of such previous year, whichever is later” shall be substituted;

(ii) in clause (m), for the words “the arm’s length price of the said activity”, the words “the amount calculated in such manner as may be prescribed” shall be substituted.

  1. Amendment of section 10.

In section 10 of the Income-tax Act,––

(I) after clause (4B), the following clause shall be inserted, namely:––

“(4C) any income by way of interest payable to a non-resident, not being a company, or to a foreign company, by any Indian company or business trust in respect of monies borrowed from a source outside India by way of issue of rupee denominated bond, as referred to in clause (ia) of sub-section (2) of section 194LC, during the period beginning from the 17th day of September, 2018 and ending on the 31st day of March, 2019;”;

(II) with effect from the 1st day of April, 2020,––

(a) in clause (12A), for the words “forty per cent.”, the words “sixty per cent.” shall be substituted;

(b) in clause (15), after sub-clause (viii), the following sub-clause shall be inserted, namely:—

‘(ix) any income by way of interest payable to a non-resident by a unit located in an International Financial Services Centre in respect of monies borrowed by it on or after the 1st day of September, 2019.

Explanation.—For the purposes of this sub-clause,—

(a) “International Financial Services Centre” shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005;

(b) “unit” shall have the meaning assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005;’;

(III) in clause (34A), the brackets and words “(not being listed on a recognised stock exchange)” shall be omitted with effect from the 5th day of July, 2019.

  1. Amendment of section 12AA.

In section 12AA of the Income-tax Act, with effect from the 1st day of September, 2019,––

(I) in sub-section (1),––

(i) for clause (a), the following clause shall be substituted, namely:––

“(a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about,––

(i) the genuineness of activities of the trust or institution; and

(ii) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects, and may also make such inquiries as he may deem necessary in this behalf; and”;

(ii) in clause (b), after the words “genuineness of its activities”, the words, brackets, figures and letter “as required under sub-clause (i) of clause (a) and compliance of the requirements under sub-clause (ii) of the said clause” shall be inserted;

(II) in sub-section (4), for the portion beginning with the words “the activities of the trust or the institution” and ending with the words “cancel the registration of such trust or institution”, the following shall be substituted, namely:––

“(a) the activities of the trust or the institution are being carried out in a manner that the provisions of sections 11 and 12 do not apply to exclude either whole or any part of the income of such trust or institution due to operation of sub-section (1) of section 13; or

(b) the trust or institution has not complied with the requirement of any other law, as referred to in sub-clause (ii) of clause (a) of sub-section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finality, then, the Principal Commissioner or the Commissioner may, by an order in writing, cancel the registration of such trust or institution”.

  1. Amendment of section 13A.

In section 13A of the Income-tax Act, in the first proviso, in clause (d), for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.

  1. Amendment of section 35AD.

In section 35AD of the Income-tax Act, in sub-section (8), in clause (f), for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.

  1. Amendment of section 40.

In section 40 of the Income-tax Act, in clause (a), with effect from the 1st day of April, 2020,––

(a) in sub-clause (i), after the proviso, the following proviso shall be inserted, namely:––

“Provided further that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purposes of this sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the payee referred to in the said proviso;”;

(b) in sub-clause (ia), in the second proviso, the word “resident” shall be omitted.

  1. Amendment of section 40A.

In section 40A of the Income-tax Act, with effect from the 1st day of April, 2020,––

(i) for the words “bank account” wherever they occur, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted;

(ii) in sub-section (4), after the words “such cheque or draft or electronic clearing system”, the words “or such other electronic mode as may be prescribed” shall be inserted.

  1. Amendment of section 43.

In section 43 of the Income-tax Act, in clause (1), in the second proviso, for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.

  1. Amendment of section 43B.

In section 43B of the Income-tax Act, with effect from the 1st day of April, 2020,––

(i) after clause (d), the following clause shall be inserted, namely:––

“(da) any sum payable by the assessee as interest on any loan or borrowing from a deposit taking non-banking financial company or systemically important non-deposit taking non-banking financial company, in accordance with the terms and conditions of the agreement governing such loan or borrowing, or”;

(ii) after Explanation 3A, the following Explanation shall be inserted, namely:––

“Explanation 3AA.—For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause (da) is allowed in computing the income referred to in section 28, of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 2019, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him.”;

(iii) after Explanation 3C, the following Explanation shall be inserted, namely:––

“Explanation 3CA.—For the removal of doubts, it is hereby declared that a deduction of any sum, being interest payable under clause (da), shall be allowed if such interest has been actually paid and any interest referred to in that clause which has been converted into a loan or borrowing shall not be deemed to have been actually paid.”;

(iv) in Explanation 4, after clause

(d), the following clauses shall be inserted, namely:––

‘(e) “deposit taking non-banking financial company” means a non-banking financial company which is accepting or holding public deposits and is registered with the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1934;

(f) “non-banking financial company” shall have the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934;

(g) “systemically important non-deposit taking non-banking financial company” means a non-banking financial company which is not accepting or holding public deposits and having total assets of not less than five hundred crore rupees as per the last audited balance sheet and is registered with the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1934.’.

  1. Amendment of section 43CA.

In section 43CA of the Income-tax Act, in sub-section (4), for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.

  1. Amendment of section 43D.

In section 43D of the Income-tax Act, with effect from the 1st day of April, 2020,––

(i) in clause (a), after the words “State industrial investment corporation”, the words “or a deposit taking non-banking financial company or a systemically important non-deposit taking non-banking financial company” shall be inserted;

(ii) in the long line, after the words “State industrial investment corporation or”, the words “a deposit taking non-banking financial company or a systemically important non-deposit taking non-banking financial company or” shall be inserted;

(iii) in the Explanation, after clause (g), the following clause shall be inserted, namely:––

‘(h) the expressions “deposit taking non-banking financial company”, “non-banking financial company” and “systemically important non-deposit taking non-banking financial company” shall have the meanings respectively assigned to them in clauses (e), (f) and (g) of Explanation 4 to section 43B.’.

  1. Amendment of section 44AD.

In section 44AD of the Income-tax Act, in sub-section (1), in the proviso, for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.

  1. Amendment of section 47.

In section 47 of the Income-tax Act, in clause (viiab), with effect from the 1st day of April, 2020,––

(A) for sub-clause (c), the following sub-clauses shall be substituted, namely:––

“(c) derivative; or

(d) such other securities as may be notified by the Central Government in this behalf,”;

(B) in the long line, after the words “made by a non-resident”, the words “or a specified fund” shall be inserted;

(C) in the Explanation, after clause (c), the following clauses shall be inserted, namely:—

(d) “securities” shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956;

(e) “specified fund” means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate,—

(i) which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992;

(ii) which is located in any International Financial Services Centre;

(iii) which is deriving income solely in convertible foreign exchange;

(iv) of which all the units are held by non-residents;

(f) “trust” means a trust established under the Indian Trusts Act, 1882 or under any other law for the time being in force;

(g) “unit” means beneficial interest of an investor in the fund and shall include shares or partnership interests;

(h) “convertible foreign exchange” means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 and the rules made thereunder;’.

18.Amendment of section 50C.

In section 50C of the Income-tax Act, in sub-section (1), in the second proviso, for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.

  1. Amendment of section 50CA.

In section 50CA of the Income-tax Act, before the Explanation, the following proviso shall be inserted with effect from the 1st day of April, 2020, namely:—

“Provided that the provisions of this section shall not apply to any consideration received or accruing as a result of transfer by such class of persons and subject to such conditions as may be prescribed.”.

20.Amendment of section 54GB.

In section 54GB of the Income-tax Act, with effect from the 1st day of April, 2020,—

(i) in sub-section (4), the following proviso shall be inserted, namely:—

‘Provided that in case of a new asset, being computer or computer software, acquired by an eligible start-up referred to in the proviso to clause (d) of sub-section (6), the provisions of this sub-section shall have effect as if for the words “five years”, the words “three years” had been substituted.’;

(ii) in sub-section (5), in the proviso, for the figures “2019”, the figures “2021” shall be substituted;

(iii) in sub-section (6), in clause (b), in sub-clause (iii), for the word “fifty” at both the places where it occurs, the word “twenty-five” shall be substituted.

21.Amendment of section 56.

In section 56 of the Income-tax Act, in sub-section (2),––

(i) in clause (viib), with effect from the 1st day of April, 2020,—

(a) in the proviso, in clause (i), for the words “venture capital fund”, the words “venture capital fund or a specified fund” shall be substituted;

(b) after the proviso, the following proviso shall be inserted, namely:—

“Provided further that where the provisions of this clause have not been applied to a company on account of fulfilment of conditions specified in the notification issued under clause (ii) of the first proviso and such company fails to comply with any of those conditions, then, any consideration received for issue of share that exceeds the face value of such share shall be deemed to be the income of that company chargeable to income-tax for the previous year in which such failure has taken place.”;

(c) in the Explanation, after clause (a), the following clauses shall be inserted, namely:—

‘(aa) “specified fund” means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which has been granted a certificate of registration as a Category II Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992;

(ab) “trust” means a trust established under the Indian Trusts Act, 1882 or under any other law for the time being in force;’;

(ii) in clause (viii), for the words, brackets, letters and figures “clause (b) of section 145A”, the words, brackets, figures and letter “sub-section (1) of section 145B” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2017;

(iii) in clause (x),––

(A) in sub-clause (b), in the second proviso, for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020;

(B) in the proviso, after clause (X), the following clause shall be inserted with effect from the 1st day of April, 2020, namely:—

“(XI) from such class of persons and subject to such conditions, as may be prescribed.”.

  1. Substitution of section 79.

For section 79 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2020, namely:––

Carry forward and set off of losses in case of certain companies.

‘79. (1) Notwithstanding anything contained in this Chapter, where a change in shareholding has taken place during the previous year in the case of a company, not being a company in which the public are substantially interested, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year, unless on the last day of the previous year, the shares of the company carrying not less than fifty-one per cent. of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than fifty-one per cent. of the voting power on the last day of the year or years in which the loss was incurred:

Provided that even if the said condition is not satisfied in case of an eligible start up as referred to in section 80-IAC, the loss incurred in any year prior to the previous year shall be allowed to be carried forward and set off against the income of the previous year if all the shareholders of such company who held shares carrying voting power on the last day of the year or years in which the loss was incurred, continue to hold those shares on the last day of such previous year and such loss has been incurred during the period of seven years beginning from the year in which such company is incorporated.

(2) Nothing contained in sub-section (1) shall apply,––

(a) to a case where a change in the said voting power and shareholding takes place in a previous year consequent upon the death of a shareholder or on account of transfer of shares by way of gift to any relative of the shareholder making such gift;

(b) to any change in the shareholding of an Indian company which is a subsidiary of a foreign company as a result of amalgamation or demerger of a foreign company subject to the condition that fifty-one per cent. shareholders of amalgamating or demerged foreign company continue to be the shareholders of the amalgamated or the resulting foreign company;

(c) to a company where a change in the shareholding takes place in a previous year pursuant to a resolution plan approved under the Insolvency and Bankruptcy Code, 2016, after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or

(d) to a company, and its subsidiary and the subsidiary of such subsidiary, where,––

(i) the Tribunal, on an application moved by the Central Government under section 241 of the Companies Act, 2013, has suspended the Board of Directors of such company and has appointed new directors nominated by the Central Government, under section 242 of the said Act; and

(ii) a change in shareholding of such company, and its subsidiary and the subsidiary of such subsidiary, has taken place in a previous year pursuant to a resolution plan approved by the Tribunal under section 242 of the Companies Act, 2013 after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner. Explanation.––For the purposes of this section,––

(i) a company shall be a subsidiary of another company, if such other company holds more than half in nominal value of the equity share capital of the company;

(ii) “Tribunal” shall have the meaning assigned to it in clause (90) of section 2 of the Companies Act, 2013.’.

  1. Amendment of section 80C.

In section 80C of the Income-tax Act, in sub-section (2), after clause (xxiv), the following clause shall be inserted with effect from the 1st day of April, 2020, namely:—

‘(xxv) being an employee of the Central Government, as a contribution to a specified account of the pension scheme referred to in section 80CCD––

(a) for a fixed period of not less than three years; and

(b) which is in accordance with the scheme as may be notified by the Central Government in the Official Gazette for the purposes of this clause.

Explanation.—For the purposes of this clause, “specified account” means an additional account referred to in sub-section (3) of section 20 of the Pension Fund Regulatory and Development Authority Act, 2013. ’.

24.Amendment of section 80CCD.

In section 80CCD of the Income-tax Act, in sub-section (2), for the words “does not exceed ten per cent. of his salary in the previous year”, the words, brackets and letters “does not exceed––

(a) fourteen per cent., where such contribution is made by the Central Government;

(b) ten per cent., where such contribution is made by any other employer, of his salary in the previous year” shall be substituted with effect from the 1st day of April, 2020.

  1. Insertion of new sections 80EEA and 80EEB.

After section 80EE of the Income-tax Act, the following sections shall be inserted with effect from the 1st day of April, 2020, namely:––

Deduction in respect of interest on loan taken for certain house property.

‘80EEA. (1) In computing the total income of an assessee, being an individual not eligible to claim deduction under section 80EE, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential house property.

(2) The deduction under sub-section (1) shall not exceed one lakh and fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2020 and subsequent assessment years.

(3) The deduction under sub-section (1) shall be subject to the following conditions, namely:—

(i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2020;

(ii) the stamp duty value of residential house property does not exceed forty-five lakh rupees;

(iii) the assessee does not own any residential house property on the date of sanction of loan.

(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year.

(5) For the purposes of this section,––

(a) the expression “financial institution” shall have the meaning assigned to it in clause (a) of sub-section (5) of section 80EE;

(b) the expression “stamp duty value” means value adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property.

80EEB. Deduction in respect of purchase of electric vehicle.

 (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of purchase of an electric vehicle.

(2) The deduction under sub-section (1) shall not exceed one lakh and fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2020 and subsequent assessment years.

(3) The deduction under sub-section (1) shall be subject to the condition that the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2023.

(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year.

(5) For the purposes of this section,––

(a) “electric vehicle” means a vehicle which is powered exclusively by an electric motor whose traction energy is supplied exclusively by traction battery installed in the vehicle and has such electric regenerative braking system, which during braking provides for the conversion of vehicle kinetic energy into electrical energy;

(b) “financial institution” means a banking company to which the Banking Regulation Act, 1949 applies, or any bank or banking institution referred to in section 51 of that Act and includes any deposit taking non-banking financial company or a systemically important non-deposit taking non-banking financial company as defined in clauses (e) and (g) of Explanation 4 to section 43B.’.

  1. Amendment of section 80-IBA.

In section 80-IBA of the Income-tax Act, with effect from the 1st day of April, 2020,—

(A) in sub-section (2), after clause (i), the following proviso shall be inserted, namely:—

‘Provided that for the projects approved on or after the 1st day of September, 2019, the provisions of this sub-section shall have effect as if for clauses (d) to (i), the following clauses had been substituted, namely:––

“(d) the project is on a plot of land measuring not less than—

(i) one thousand square metres, where such project is located within the metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region); or

(ii) two thousand square metres, where such project is located in any other place;

(e) the project is the only housing project on the plot of land as specified in clause (d);

(f) the carpet area of the residential unit comprised in the housing project does not exceed—

(i) sixty square metres, where such project is located within the metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region); or

(ii) ninety square metres, where such project is located in any other place;

(g) the stamp duty value of a residential unit in the housing project does not exceed forty-five lakh rupees;

(h) where a residential unit in the housing project is allotted to an individual, no other residential unit in the housing project shall be allotted to the individual or the spouse or the minor children of such individual;

(i) the project utilises—

(I) not less than ninety per cent. of the floor area ratio permissible in respect of the plot of land under the rules to be made by the Central Government or the State Government or the local authority, as the case may be, where such project is located within the metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region); or

(II) not less than eighty per cent. of such floor area ratio where such project is located in any place other than the place referred to in sub-clause (I); and

(j) the assessee maintains separate books of account in respect of the housing project.”.’;

(B) in sub-section (6), after clause (e), the following clause shall be inserted, namely:—

‘(f) “stamp duty value” means the value adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property.’.

  1. Amendment of section 80JJAA.

In section 80JJAA of the Income-tax Act, in the Explanation, in clause (i), in the first proviso, in clause (b), for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of April, 2020.

  1. Amendment of section 80LA.

In section 80LA of the Income-tax Act, with effect from the 1st day of April, 2020,––

(i) for sub-section (1), the following sub-sections shall be substituted, namely:––

“(1) Where the gross total income of an assessee, being a scheduled bank, or, any bank incorporated by or under the laws of a country outside India; and having an Offshore Banking Unit in a Special Economic Zone, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to––

(a) one hundred per cent. of such income for five consecutive assessment years beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 or permission or registration under the Securities and Exchange Board of India Act,1992 or any other relevant law was obtained, and thereafter;

(b) fifty per cent. of such income for five consecutive assessment years.

(1A) Where the gross total income of an assessee, being a Unit of an International Financial Services Centre, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to one hundred per cent. of such income for any ten consecutive assessment years, at the option of the assesse, out of fifteen years, beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 or permission or registration under the Securities and Exchange Board of India Act,1992 or any other relevant law was obtained.”;

(ii) in sub-section (2), in the opening portion, for the word, brackets and figure “sub-section (1), the words, brackets, figures and letter “sub-section (1) and sub-section (1A)” shall be substituted.

  1. Amendment of section 92CD.

In section 92CD of the Income-tax Act, with effect from the 1st day of September, 2019,––

(a) in sub-section (3), for the words “proceed to assess or reassess or recompute the total income of the relevant assessment year”, the words “pass an order modifying the total income of the relevant assessment year determined in such assessment or reassessment, as the case may be,” shall be substituted;

(b) in sub-section (5), in clause (a), the words “of assessment, reassessment or recomputation of total income” shall be omitted.

  1. Amendment of section 92CE. 

In section 92CE of the Income-tax Act,––

(a) in sub-section (1),––

(I) in clause (iii), for the word, figures and letters “section 92CC”, the words, figures and letters “section 92CC, on or after the 1st day of April, 2017,” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2018;

(II) in the proviso, in clause (i), for the words “one crore rupees; and”, the words “one crore rupees; or” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2018;

(III) after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2018, namely:––

“Provided further that no refund of taxes paid, if any, by virtue of provisions of this sub-section as they stood immediately before their amendment by the Finance (No.2) Act, 2019 shall be claimed and allowed.”;

(b) in sub-section (2),––

(i) for the words “the excess money which”, the words “the excess money or part thereof, as the case may be, which” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2018;

(ii) the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2018, namely:––

“Explanation.––For the removal of doubts, it is hereby clarified that the excess money or part thereof may be repatriated from any of the associated enterprises of the assessee which is not a resident in India.”;

(c) after sub-section (2), the following sub-sections shall be inserted with effect from the 1st day of September, 2019, namely:––

“(2A) Without prejudice to the provisions of sub-section (2), where the excess money or part thereof has not been repatriated within the prescribed time, the assessee may, at his option, pay additional income-tax at the rate of eighteen per cent. on such excess money or part thereof, as the case may be.

(2B) The tax on the excess money or part thereof so paid by the assessee under sub-section (2A) shall be treated as the final payment of tax in respect of the excess money or part thereof not repatriated and no further credit therefor shall be claimed by the assessee or by any other person in respect of the amount of tax so paid.

(2C) No deduction under any other provision of this Act shall be allowed to the assessee in respect of the amount on which tax has been paid in accordance with the provisions of sub-section (2A).

(2D) Where the additional income-tax referred to in sub-section (2A) is paid by the assessee, he shall not be required to make secondary adjustment under sub-section (1) and compute interest under sub-section (2) from the date of payment of such tax.”.

  1. Substitution of section 92D.

In the Income-tax Act, for section 92D, the following section shall be substituted with effect from the 1st day of April, 2020, namely:––

Maintenance, keeping and furnishing of information and document by certain persons.

‘92D. (1) Every person,––

(i) who has entered into an international transaction or specified domestic transaction shall keep and maintain such information and document in respect thereof as may be prescribed;

(ii) being a constituent entity of an international group, shall keep and maintain such information and document in respect of an international group as may be prescribed.

Explanation.––For the purposes of this clause,––

(A) “constituent entity” shall have the meaning assigned to it in clause (d) of sub-section (9) of section 286;

(B) “international group” shall have the meaning assigned to it in clause (g) of sub-section (9) of section 286.

(2) Without prejudice to the provisions contained in sub-section (1), the Board may prescribe the period for which the information and document shall be kept and maintained under the said sub-section.

(3) The Assessing Officer or the Commissioner (Appeals) may, in the course of any proceeding under this Act, require any person referred to in clause (i) of sub-section (1) to furnish any information or document referred therein, within a period of thirty days from the date of receipt of a notice issued in this regard:

Provided that the Assessing Officer or the Commissioner (Appeals) may, on an application made by such person, extend the period of thirty days by a further period not exceeding thirty days.

(4) The person referred to in clause (ii) of sub-section (1) shall furnish the information and document referred therein to the authority prescribed under sub-section (1) of section 286, in such manner, on or before such date, as may be prescribed.’.

  1. Amendment of section 111A.

In section 111A of the Income-tax Act, in the Explanation, in clause (a), for the words, brackets and figures “the Explanation to clause (38) of section 10”, the words, brackets, letters and figures “clause (a) of the Explanation to section 112A” shall be substituted with effect from the 1st day of April, 2020.

  1. Amendment of section 115A.

In section 115A of the Income-tax Act, in sub-section (4), after clause (b), the following proviso shall be inserted with effect from the 1st day of April, 2020, namely:––

“Provided that nothing contained in this sub-section shall apply to a deduction allowed to a Unit of an International Financial Services Centre under section 80LA.”.

  1. Amendment of section 115JB.

In section 115JB of the Income-tax Act, in sub-section (2), in Explanation 1, in the long line, for clause (iih), the following clause shall be substituted with effect from the 1st day of April, 2020, namely:—

‘(iih) the aggregate amount of unabsorbed depreciation and loss brought forward in case of a—

(A) company, and its subsidiary and the subsidiary of such subsidiary, where, the Tribunal, on an application moved by the Central Government under section 241 of the Companies Act, 2013 has suspended the Board of Directors of such company and has appointed new directors who are nominated by the Central Government under section 242 of the said Act;

(B) company against whom an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code, 2016.

Explanation.–– For the purposes of this clause,—

(i) “Adjudicating Authority” shall have the meaning assigned to it in clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016;

(ii) “Tribunal” shall have the meaning assigned to it in clause (90) of section 2 of the Companies Act, 2013;

(iii) a company shall be a subsidiary of another company, if such other company holds more than half in the nominal value of equity share capital of the company;

(iv) “loss” shall not include depreciation; or’.

  1. Amendment of section 115-O.

In section 115-O of the Income-tax Act, in sub-section (8), for the words “out of its current income”, the words “out of its current income or income accumulated as a unit of International Financial Services Centre after the 1st day of April, 2017” shall be substituted with effect from the 1st day of September, 2019.

  1. Amendment of section 115QA.

In section 115QA of the Income-tax Act, in sub-section (1), the brackets and words “(not being shares listed on a recognised stock exchange)” shall be omitted with effect from the 5th day of July, 2019.

  1. Amendment of section 115R. 

In section 115R of the Income-tax Act, in sub-section (2), with effect from the 1st day of September, 2019,—

(A) after the second proviso, before the Explanation, the following proviso shall be inserted, namely:—

“Provided also that no additional income-tax shall be chargeable in respect of any amount of income distributed on or after the 1st day of September, 2019 by a specified Mutual Fund, out of its income derived from transactions made on a recognised stock exchange located in any International Financial Services Centre:”;

(B) in the Explanation,—

(a) after clause (i), the following clause shall be inserted, namely:––

‘(ia) “convertible foreign exchange” means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 and the rules made thereunder;’;

(b) after clause (ii), the following clauses shall be inserted, namely:––

‘(iii) “International Financial Services Centre” shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005;

(iv) “recognised stock exchange” shall have the meaning assigned to it in clause (ii) of Explanation 1 to clause (5) of section 43;

(v) “specified Mutual Fund” means a Mutual Fund specified under clause (23D) of section 10—

(a) located in any International Financial Services Centre;

(b) deriving income solely in convertible foreign exchange;

(c) of which all the units are held by non-residents;

(vi) “unit” means beneficial interest of an investor in the fund;’.

  1. Amendment of section 115UB 

In section 115UB of the Income-tax Act, in sub-section (2), with effect from the 1st day of April, 2020,––

(a) for clauses (i) and (ii), the following clauses shall be substituted, namely:––

‘(i) out of such loss, the loss arising to the investment fund as a result of the computation under the head “Profit and gains of business or profession”, if any, shall be,––

(a) allowed to be carried forward and it shall be set off by the investment fund in accordance with the provisions of Chapter VI; and

(b) ignored for the purposes of sub-section (1);

(ii) the loss other than the loss referred to in clause (i), if any, shall also be ignored for the purposes of sub-section (1), if such loss has arisen in respect of a unit which has not been held by the unit holder for a period of atleast twelve months.’;

(b) after sub-section (2), the following sub-section shall be inserted, namely:––

‘(2A) The loss other than the loss under the head “Profit and gains of business or profession”, if any, accumulated at the level of investment fund as on the 31st day of March, 2019, shall be,––

(i) deemed to be the loss of a unit holder who held the unit on the 31st day of March, 2019 in respect of the investments made by him in the investment fund, in the same manner as provided in sub-section (1); and

(ii) allowed to be carried forward by such unit holder for the remaining period calculated from the year in which the loss had occurred for the first time taking that year as the first year and shall be set off by him in accordance with the provisions of Chapter VI:

Provided that the loss so deemed under this sub-section shall not be available to the investment fund on or after the 1st day of April, 2019.’.

  1. Amendment of section 139.

In section 139 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2020,––

(a) in the sixth proviso, after the word, figures and letters “section 10BA”, the words, figures and letters “ or section 54 or section 54B or section 54D or section 54EC or section 54F or section 54G or section 54GA or section 54GB” shall be inserted;

(b) after the sixth proviso, and before Explanation 1 the following proviso shall be inserted, namely:––

“Provided also that a person referred to in clause (b), who is not required to furnish a return under this sub-section, and who during the previous year––

(i) has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or

(ii) has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or

(iii) has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or

(iv) fulfils such other conditions as may be prescribed, shall furnish a return of his income on or before the due date in such form and verified in such manner and setting forth such other particulars, as may be prescribed.”;

(c) after Explanation 5, the following Explanation shall be inserted, namely:––

‘Explanation 6.—For the purposes of this sub-section,—

(a) “banking company” shall have the meaning assigned to it in clause (i) of the Explanation to section 269SS;

(b) “co-operative bank” shall have the meaning assigned to it in clause (ii) of the Explanation to section 269SS.’.

  1. Amendment of section 139A.

In section 139A of the Income-tax Act, with effect from the 1st day of September, 2019,––

(i) in sub-section (1), in clause (vi), for the words, brackets and figure “on behalf of the person referred to in clause (v)”, the following shall be substituted, namely:––

“on behalf of the person referred to in clause (v); or

(vii) who intends to enter into such transaction as may be prescribed by the Board in the interest of revenue,”;

(ii) after sub-section (5D), the following sub-section shall be inserted, namely:–

“(5E) Notwithstanding anything contained in this Act, every person who is required to furnish or intimate or quote his permanent account number under this Act, and who,––

(a) has not been allotted a permanent account number but possesses the Aadhaar number, may furnish or intimate or quote his Aadhaar number in lieu of the permanent account number, and such person shall be allotted a permanent account number in such manner as may be prescribed;

(b) has been allotted a permanent account number, and who has intimated his Aadhaar number in accordance with provisions of sub-section (2) of section 139AA, may furnish or intimate or quote his Aadhaar number in lieu of the permanent account number.”;

(iii) in sub-section (6), for the words “the General Index Register Number”, the words “the General Index Register Number or the Aadhaar number, as the case may be,” shall be substituted;

(iv) after sub-section (6), the following sub-sections shall be inserted, namely:–

“(6A) Every person entering into such transaction, as may be prescribed, shall quote his permanent account number or Aadhaar number, as the case may be, in the documents pertaining to such transactions and also authenticate such permanent account number or Aadhaar number, in such manner as may be prescribed.

(6B) Every person receiving any document relating to the transactions referred to in sub-section (6A), shall ensure that permanent account number or Aadhaar number, as the case may be, has been duly quoted in such document and also ensure that such permanent account number or Aadhaar number is so authenticated.”;

(v) in sub-section (8), in clauses (b) and (f), for the words “the General Index Register Number”, the words “the General Index Register Number or the Aadhaar number, as the case may be,” shall be substituted;

(vi) in the Explanation, for clause (a), the following clauses shall be substituted, namely:––

‘(a) “Aadhaar number” shall have the meaning assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016; (aa) “Assessing Officer” includes an income-tax authority who is assigned the duty of allotting permanent account numbers;

(ab) “authentication” means the process by which the permanent account number or Aadhaar number alongwith demographic information or biometric information of an individual is submitted to the income-tax authority or such other authority or agency as may be prescribed for its verification and such authority or agency verifies the correctness, or the lack thereof, on the basis of information available with it;’.

  1. Amendment of section 139AA.

In section 139AA of the Income-tax Act, in sub-section (2), in the proviso, for the words “deemed to be invalid and the other provisions of this Act shall apply, as if the person had not applied for allotment of permanent account number”, the words “made inoperative after the date so notified in such manner as may be prescribed” shall be substituted with effect from the 1st day of September, 2019.

42.Amendment of section 140A.

In section 140A of the Income-tax Act,––

(i) in sub-section (1), after clause (ii), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

“(iia) any relief of tax claimed under section 89;”;

(ii) in sub-section (1A), in clause (i), after sub-clause (b), the following sub-clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

“(ba) any relief of tax claimed under section 89;”;

(iii) in sub-section (1B), in the Explanation, after clause (i), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

“(ia) any relief of tax claimed under section 89;”.

  1. Amendment of section 143.

In section 143 of the Income-tax Act, in sub-section (1), in clause (c), after the words “any advance tax paid,”, the words and figures “any relief allowable under section 89,” shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007.

  1. Amendment of section 194DA.

In section 194DA of the Income-tax Act, for the words “one per cent.”, the words “five per cent. on the amount of income comprised therein” shall be substituted with effect from the 1st day of September, 2019.

  1. Amendment of section 194-IA.

In section 194-IA of the Income-tax Act, in the Explanation, after clause (a), the following clause shall be inserted with effect from the 1st day of September, 2019,––

‘(aa) “consideration for immovable property” shall include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property;’.

  1. Insertion of new sections 194M and 194N.

After section 194LD of the Income-tax Act, the following sections shall be inserted with effect from the 1st day of September, 2019, namely:––

Payment of certain sums by certain individuals or Hindu undivided family.

‘194M. (1) Any person, being an individual or a Hindu undivided family (other than those who are required to deduct income-tax as per the provisions of section 194C or section 194J) responsible for paying any sum to any resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract or by way of fees for professional services during the financial year, shall, at the time of credit of such sum or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to five per cent. of such sum as income -tax thereon:

Provided that no such deduction under this section shall be made if such sum or, as the case may be, aggregate of such sums, credited or paid to a resident during a financial year does not exceed fifty lakh rupees.

(2) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.

Explanation.––For the purposes of this section,––

(a) “contract” shall have the meaning assigned to it in clause (iii) of the Explanation to section 194C;

(b) “professional services” shall have the meaning assigned to it in clause (a) of the Explanation to section 194J;

(c) “work” shall have the meaning assigned to it in clause (iv) of the Explanation to section 194C.

Payment of certain amounts in cash. 

194N. Every person, being,––

(i) a banking company to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act);

(ii) a co-operative society engaged in carrying on the business of banking; or

(iii) a post office,

who is responsible for paying any sum, or, as the case may be, aggregate of sums, in cash, in excess of one crore rupees during the previous year, to any person (herein referred to as the recipient) from an account maintained by the recipient with it shall, at the time of payment of such sum, deduct an amount equal to two per cent. of sum exceeding one crore rupees, as income-tax: Provided that nothing contained in this sub-section shall apply to any payment made to,–– (i) the Government;

(ii) any banking company or co-operative society engaged in carrying on the business of banking or a post office;

(iii) any business correspondent of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the guidelines issued in this regard by the Reserve Bank of India under the Reserve Bank of India Act, 1934;

(iv) any white label automated teller machine operator of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007;

(v) such other person or class of persons, which the Central Government may, by notification in the Official Gazette, specify in consultation with the Reserve Bank of India.’.

  1. Amendment of section 195.

In section 195 of the Income-tax Act, with effect from the 1st day of November, 2019,––

(a) in sub-section (2), for the words “to the Assessing Officer to determine, by general or special order”, the words “in such form and manner to the Assessing Officer, to determine in such manner, as may be prescribed” shall be substituted;

(b) in sub-section (7), for the words “to the Assessing Officer to determine, by general or special order”, the words “in such form and manner to the Assessing Officer, to determine in such manner, as may be prescribed” shall be substituted.

  1. Amendment of section 197.

In section 197 of the Income-tax Act, in sub-section (1), for the figures and letters “194LBC”, the figures and letters “194LBC, 194M” shall be substituted with effect from the 1st day of September, 2019.

  1. Amendment of section 201.

In section 201 of the Income-tax Act, with effect from the 1st day of September, 2019,––

(a) in sub-section (1), in the first proviso, for the word “resident” wherever it occurs, the word “payee” shall be substituted;

(b) in sub-section (1A), in the proviso, for the word “resident” wherever it occurs, the word “payee” shall be substituted;

(c) in sub-section (3), after the words “credit is given”, the words, brackets and figures “or two years from the end of the financial year in which the correction statement is delivered under the proviso to sub-section (3) of section 200, whichever is later” shall be inserted.

  1. Substitution of section 206A. 

For section 206A of the Income-tax Act, the following section shall be substituted with effect from the 1st day of September, 2019, namely:––

Furnishing of statement in respect of payment of any income to residents without deduction of tax.

“206A.(1) Any banking company or co-operative society or public company referred to in the proviso to clause (i) of sub-section (3) of section 194A responsible for paying to a resident any income not exceeding forty thousand rupees, where the payer is a banking company or a co-operative society, and five thousand rupees in any other case by way of interest (other than interest on securities), shall prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and deliver or cause to be delivered the said statement to the prescribed income-tax authority or to the person authorised by such authority.

(2) The Board may require any person, other than a person mentioned in sub-section (1), responsible for paying to a resident any income liable for deduction of tax at source under Chapter XVII, to prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and deliver or cause to be delivered the said statement to the income-tax authority or the authorised person referred to in sub-section (1).

(3) The person responsible for paying to a resident any income referred to in sub-section (1) or sub-section (2) may also deliver to the income-tax authority referred to in sub-section (1), a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under the said sub-sections in such form and verified in such manner, as may be prescribed.”.

  1. Amendment of section 228A. 

In section 228A of the Income-tax Act, with effect from the 1st day of September, 2019,––

(a) in sub-section (1),––

(i) for the words “corresponding law from”, the words “corresponding law from a resident, or”

shall be substituted;

(ii) for the words “any Tax Recovery Officer”, the words “any Tax Recovery Officer having jurisdiction over the resident, or” shall be substituted;

(b) in sub-section (2),––

(i) for the words “has property in a country outside India”, the words “ is a resident of a country” shall be substituted;

(ii) for the words “forward to the Board”, the words “or has any property in that country, forward to the Board” shall be substituted.

  1. Amendment of section 234A.

In section 234A of the Income-tax Act, in sub-section (1), in the long line, after clause (ii), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

“(iia) any relief of tax allowed under section 89;”.

  1. Amendment of section 234B.

In section 234B of the Income-tax Act, in sub-section (1), in Explanation 1, after clause (i), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

“(ia) any relief of tax allowed under section 89;”.

  1. Amendment of section 234C.

In section 234C of the Income-tax Act, in sub-section (1), in the Explanation, after clause (i), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

“(ia) any relief of tax allowed under section 89;”.

  1. Amendment of section 239.

In section 239 of the Income-tax Act, with effect from the 1st day of September, 2019,––

(a) in sub-section (1), for the words “in the prescribed form and verified in the prescribed manner”, the words and figures “by furnishing return in accordance with the provisions of section 139” shall be substituted;

(b) sub-section (2) shall be omitted.

  1. Amendment of section 246A. 

In section 246A of the Income-tax Act, in sub-section (1), in clause (bb), for the words “of assessment or reassessment”, the word “made” shall be substituted with effect from the 1st day of September, 2019.

  1. Amendment of section 269SS. 

In section 269SS of the Income-tax Act, in the opening portion, for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of September, 2019.

  1. Amendment of section 269ST.

In section 269ST of the Income-tax Act, in the long line, for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of September, 2019.

  1. Insertion of new section 269SU.

After section 269ST of the Income-tax Act, the following section shall be inserted with effect from the 1st day of November, 2019, namely:—

Acceptance of payment through prescribed electronic modes.

“269SU. Every person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes, in addition to the facility for other electronic modes, of payment, if any, being provided by such person, if his total sales, turnover or gross receipts, as the case may be, in business exceeds fifty crore rupees during the immediately preceding previous year.”.

  1. Amendment of section 269T.

In section 269T of the Income-tax Act, in the opening portion, for the words “bank account”, the words “bank account or through such other electronic mode as may be prescribed” shall be substituted with effect from the 1st day of September, 2019.

  1. Amendment of section 270A. 

In section 270A of the Income-tax Act,––

(A) for the words “no return of income has been furnished” at both the places where they occur, the words and figures “no return of income has been furnished or where return has been furnished for the first time under section 148” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2017;

(B) in sub-section (2), in clause (e), for the words “no return of income has been filed”, the words and figures “no return of income has been furnished or where return has been furnished for the first time under section 148” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2017;

(C) in sub-section (3), in clause (i), in sub-clause (b), for the words “no return has been furnished”, the words and figures “no return of income has been furnished or where return has been furnished for the first time under section 148” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2017.

  1. Insertion of new section 271DB.

After section 271DA of the Income-tax Act, the following section shall be inserted with effect from the 1st day of November, 2019, namely:—

Penalty for failure to comply with provisions of section 269SU. 

“271DB.(1) If a person who is required to provide facility for accepting payment through the prescribed electronic modes of payment referred to in section 269SU, fails to provide such facility, he shall be liable to pay, by way of penalty, a sum of five thousand rupees, for every day during which such failure continues:

Provided that no such penalty shall be imposable if such person proves that there were good and sufficient reasons for such failure.

(2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner of
Income-tax.”.

  1. Amendment of section 271FAA.

In section 271FAA of the Income-tax Act, in the opening portion, the words, brackets and letter “clause (k) of” shall be omitted with effect from the 1st day of September, 2019.

  1. Amendment of section 272B.

In section 272B of the Income-tax Act, with effect from the 1st day of September, 2019,––

(a) in sub-section (2),––

(i) for the words “permanent account number”, the words “permanent account number or Aadhaar number, as the case may be,” shall be substituted;

(ii) for the words “ten thousand rupees”, the words “ten thousand rupees for each such default” shall be substituted;

(b) after sub-section (2), the following sub-sections shall be inserted, namely:––

“(2A) If a person, who is required to quote his permanent account number or Aadhaar number, as the case may be, in documents referred to in sub-section (6A) of section 139A or authenticate such number in accordance with the provisions of the said sub-section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.

(2B) If a person, who is required to ensure that the permanent account number or the Aadhaar number, as the case may be, has been,––

(i) duly quoted in the documents relating to transactions referred to in clause (c) of sub-section (5) or in sub-section (6A) of section 139A; or

(ii) duly authenticated in respect of transactions referred to under sub-section (6A) of that section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.”;

(c) in sub-section (3), for the word, brackets and figure “sub-section (2)”, the words, brackets, figures and letters “sub-section (2) or sub-section (2A) or sub-section (2B)” shall be substituted.

  1. Amendment of section 276CC.

In section 276CC of the Income-tax Act, in the proviso, in clause (ii), for sub-clause (b), the following sub-clause shall be substituted with effect from the 1st day of April, 2020, namely:––

“(b) the tax payable by such person, not being a company, on the total income determined on regular assessment, as reduced by the advance tax or self-assessment tax, if any, paid before the expiry of the assessment year, and any tax deducted or collected at source, does not exceed ten thousand rupees.”.

  1. Amendment of section 285BA.

In section 285BA of the Income-tax Act, with effect from the 1st day of September, 2019,––

(i) in sub-section (1), for clause (k), the following clauses shall be substituted, namely:––

“(k) a prescribed reporting financial institution; or

(l) a person, other than those referred to in clauses (a) to (k), as may be prescribed,”;

(ii) in sub-section (3), the second proviso shall be omitted;

(iii) in sub-section (4), for the words “such statement shall be treated as an invalid statement and the provisions of this Act shall apply as if such person had failed to furnish the statement”, the words “the provisions of this Act shall apply as if such person had furnished inaccurate information in the statement” shall be substituted.

  1. Amendment of section 286.

In section 286 of the Income-tax Act, in sub-section (9), in clause (a), in sub-clause (i), the words “or alternate reporting entity” shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 2017.

  1. Amendment of rule 68B of Second Schedule. 

In the Second Schedule to the Income-tax Act, in Part III, in rule 68B, in sub-rule (1), with effect from the 1st day of September, 2019,––

(a) for the words “three years, the words “seven years” shall be substituted;

(b) in the proviso, for the word “Provided”, the words “Provided further” shall be substituted;

(c) before the proviso as so amended, the following proviso shall be inserted, namely:––

“Provided that the Board may, for reasons to be recorded in writing, extend the aforesaid period for a further period not exceeding three years:”.

 

CHAPTER IV

INDIRECT TAXES

Customs

  1. Amendment of section 41.

In section 41 of the Customs Act, 1962 (hereinafter referred to as the Customs Act), in subsection (1), for the portion beginning with the words “The person-in-charge of a conveyance”, and ending with the words “not exceeding fifty thousand rupees”, the following shall be substituted, namely:—

“The person-in-charge of a conveyance carrying export goods or imported goods or any other person as may be specified by the Central Government, by notification, shall, before departure of the conveyance from a customs station, deliver to the proper officer in the case of a vessel or aircraft, a departure manifest or an export manifest by presenting electronically, and in the case of a vehicle, an export report, in such form and manner as may be prescribed and in case, such person-in-charge or other person fails to deliver the departure manifest or export manifest or the export report or any part thereof within such time, and the proper officer is satisfied that there is no sufficient cause for such delay, such person-in-charge or other person shall be liable to pay penalty not exceeding fifty thousand rupees”.

  1. Insertion of New Chapter XIIB.

After Chapter XIIA of the Customs Act, the following Chapter shall be inserted, namely:––

‘CHAPTER XIIB

VERIFICATION OF IDENTITY AND COMPLIANCE

Verification of identity and compliance there of.

99B. (1) The proper officer, authorised in this behalf by the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, may, for the purposes of ascertaining compliance of the provisions of this Act or any other law for the time being in force, require a person, whose verification he considers necessary for protecting the interest of revenue or for preventing smuggling, to do all or any of the following, namely:––

(a) undergo authentication, or furnish proof of possession of Aadhaar number, in such manner and within such time as may be prescribed;

(b) submit such other document or information, in such manner and within such time as may be prescribed:

Provided that where such person has not been assigned the Aadhaar number, or where so assigned, but authentication of such person has failed due to technical reasons or for reasons beyond his control, then, he shall be provided an opportunity to furnish such other alternative and viable means of identification in such form and manner and within such time as may be prescribed.

(2) The provisions of sub-section (1) shall not apply to such person or class of persons as may be prescribed.

(3) Notwithstanding anything contained in any other provisions of this Act, where the Principal Commissioner of Customs or the Commissioner of Customs comes to the conclusion, based on reasons to be recorded in writing, that the person referred to in sub-section (1) has––

(i) failed to comply with the requirements of the said sub-section or submitted incorrect documents or information under the said sub-section, he may, by order, suspend––

(a) clearance of imported goods or export goods;

(b) sanction of refund;

(c) sanction of drawback;

(d) exemption from duty;

(e) licence or registration granted under this Act; or

(f) any benefit, monetary or otherwise, arising out of import or export,

relating to such person, subject to such conditions as may be prescribed;

(ii) failed authentication as required under the said sub-section, he may, by order, direct that such person shall not have the benefit of any of the items specified in sub-clauses (a) to (f) of clause (i).

(4) The order of suspension under sub-section (3) shall remain in force until the person concerned complies with the requirements of sub-section (1) or furnishes correct document or information thereunder.

Explanation.– For the purposes of this section, the expression “Aadhaar number” shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.’.

71.Amendment of section 103.

In section 103 of the Customs Act, ––

(i) for sub-section (1), the following sub-section shall be substituted, namely:–

“(1) Where the proper officer has reason to believe that any person referred to in sub-section (2) of section 100 has any goods liable to confiscation secreted inside his body, he may detain such person and shall,––

(a) with the prior approval of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as soon as practicable, screen or scan such person using such equipment as may be available at the customs station, but without prejudice to any of the rights available to such person under any other law for the time being in force, including his consent for such screening or scanning, and forward a report of such screening or scanning to the nearest magistrate if such goods appear to be secreted inside his body; or

(b) produce him without unnecessary delay before the nearest magistrate.”;

(ii) in sub-section (6), after the words “Where on receipt of a report”, the words, brackets, letter and figure “from the proper officer under clause (a) of sub-section (1) or” shall be inserted.

  1. Amendment of section 104. 

In section 104 of the Customs Act, ––

(i) in sub-section (1), the words “in India or within the Indian customs waters” shall be omitted;

(ii) in sub-section (4),––

(A) in clause (b), for the word “rupees,”, the words “rupees; or” shall be substituted;

(B) after clause (b), the following clauses shall be inserted, namely:—

“(c) fraudulently availing of or attempting to avail drawback or any exemption from duty provided under this Act, where the amount of drawback or exemption from duty exceeds fifty lakh rupees; or

(d) fraudulently obtaining an instrument for the purposes of this Act or the Foreign Trade (Development and Regulation) Act, 1992, and such instrument is utilised under this Act, where duty relatable to such utilisation of instrument exceeds fifty lakh rupees,”;

(iii) in sub-section (6),––

(A) in clause (d), for the word “rupees,”, the words “rupees; or” shall be substituted;

(B) after clause (d), the following clause shall be inserted, namely:—

“(e) fraudulently obtaining an instrument for the purposes of this Act or the Foreign Trade (Development and Regulation) Act, 1992, and such instrument is utilised under this Act, where duty relatable to such utilisation of instrument exceeds fifty lakh rupees,”;

(iv) after sub-section (7), the following Explanation shall be inserted, namely:––

‘Explanation.––For the purposes of this section, the expression “instrument” shall have the same meaning as assigned to it in Explanation 1 to section 28AAA.’.

  1. Amendment of section 110.

In section 110 of the Customs Act, ––

(i) in sub-section (1), for the proviso, the following provisos shall be substituted, namely:—

“Provided that where it is not practicable to remove, transport, store or take physical possession of the seized goods for any reason, the proper officer may give custody of the seized goods to the owner of the goods or the beneficial owner or any person holding himself out to be the importer, or any other person from whose custody such goods have been seized, on execution of an undertaking by such person that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer:

Provided further that where it is not practicable to seize any such goods, the proper officer may serve an order on the owner of the goods or the beneficial owner or any person holding himself out to be importer, or any other person from whose custody such goods have been found, directing that such person shall not remove, part with, or otherwise deal with such goods except with the previous permission of such officer.”;

(ii) after sub-section (4), the following sub-section shall be inserted, namely:—

“(5) Where the proper officer, during any proceedings under the Act, is of the opinion that for the purposes of protecting the interest of revenue or preventing smuggling, it is necessary so to do, he may, with the approval of the Principal Commissioner of Customs or Commissioner of Customs, by order in writing, provisionally attach any bank account for a period not exceeding six months:

Provided that the Principal Commissioner of Customs or Commissioner of Customs may, for reasons to be recorded in writing, extend such period to a further period not exceeding six months and inform such extension of time to the person whose bank account is provisionally attached, before the expiry of the period so specified.”.

  1. Amendment of section 110A.

In section 110A of the Customs Act,—

(i) in the marginal heading, after the words ‘‘things seized’’, the words ‘‘or bank account provisionally attached’’ shall be inserted;

(ii) after the words “documents or things seized”, the words “or bank account provisionally attached” shall be inserted;

(iii) after the words ‘‘to the owner’’, the words ‘‘or the bank account holder’’ shall be inserted.

  1. Insertion of new section 114AB.

After section 114AA of the Customs Act, the following section shall be inserted, namely:––

Penalty for obtaining instrument by fraud, etc.

‘114AB. Where any person has obtained any instrument by fraud, collusion, wilful misstatement or suppression of facts and such instrument has been utilised by such person or any other person for discharging duty, the person to whom the instrument was issued shall be liable for penalty not exceeding the face value of such instrument.

Explanation.–– For the purposes of this section, the expression “instrument” shall have the same meaning as assigned to it in the Explanation 1 to section 28AAA.’.

  1. Amendment of section 117. 

In section 117 of the Customs Act, for the words “one lakh rupees”, the words “four lakh rupees” shall be substituted.

  1. Amendment of section 125.

In section 125 of the Customs Act, in sub-section (1), in the first proviso, for the words “the provisions of this section shall not apply”, the words “no such fine shall be imposed” shall be substituted.

  1. Amendment of section 135. 

In section 135 of the Customs Act,––

(i) in sub-section (1),—

(a) in clause (d), for the words ‘‘export of goods,’’, the words ‘‘export of goods; or’’ shall be substituted;

(b) after clause (d), the following clause shall be inserted, namely:—

“(e) obtains an instrument from any authority by fraud, collusion, wilful misstatement or suppression of facts and such instrument has been utilised by such person or any other person,”;

(c) in item (i),—

(I) in sub-item (D), for the words ‘‘of rupees,’’, the words ‘‘of rupees; or’’ shall be substituted;

(II) after sub-item (D), the following sub-item shall be inserted, namely:—

“(E) obtaining an instrument from any authority by fraud, collusion, wilful misstatement or suppression of facts and such instrument has been utilised by any person, where the duty relatable to utilisation of the instrument exceeds fifty lakh rupees,”.

(ii) after sub-section (3), the following Explanation shall be inserted, namely:––

‘Explanation.–– For the purposes of this section, the expression “instrument” shall have the same meaning as assigned to it in the Explanation 1 to section 28AAA.’.

  1. Amendment of section 149.

In section 149 of the Customs Act, after the words “custom house to be amended”, the words “in such form and manner, within such time, subject to such restrictions and conditions, as may be prescribed” shall be inserted.

  1. Amendment of section 157.

In section 157 of the Customs Act, in sub-section (2),––

(i) after clause (k), the following clause shall be inserted, namely:––

“(ka) the manner of authentication and the time limit for such authentication, the document or information to be furnished and the manner of submitting such document or information and the time limit for such submission, the form and the manner of furnishing alternative means of identification and the time limit for furnishing such identification, person or class of persons to be exempted and conditions subject to which suspension may be made, under Chapter XIIB;”;

(ii) after clause (m), the following clause shall be inserted, namely:––

“(n) the form and manner, the time limit and the restrictions and conditions for amendment of any document under section 149.”.

  1. Amendment of section 158.

In section 158 of the Customs Act, in sub-section (2), in clause (ii), for the words “fifty thousand rupees”, the words “two lakh rupees” shall be substituted.

  1. Amendment of notifications issued under sub-section (1) of section 25 of Customs Act, retrospectively.
  2. (1) The notifications of the Government of India in the Ministry of Finance (Department of Revenue) numbers G.S.R. 423(E), dated the 1st June, 2011, G.S.R. 499(E), dated the 1st July, 2011 and G.S.R. 185(E), dated the 17th March, 2012 issued by the Central Government under sub-section (1) of section 25 of the Customs Act, 1962, shall stand amended and shall be deemed to have been amended in the manner as specified in the Second Schedule, on and from the date mentioned in column (4) of that Schedule, against each of such notifications, retrospectively, and accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done under the said notifications, shall be deemed to be, and always to have been, for all purposes, as validly and effectively taken or done as if the notifications as amended by this sub-section had been in force at all material times.

(2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to amend the notifications referred to in the said sub-section with retrospective effect as if the Central Government had the power to amend the said notifications under sub-section (1) of section 25 of the Customs Act, retrospectively, at all material times.

  1. Amendment of notification issued under sub-section (1) of section 25 of Customs Act and subsection (12) of section 3 of Customs Tariff Act, retrospectively.
  2. (1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 785(E), dated the 30th June, 2017 issued by the Central Government under subsection (1) of section 25 of the Customs Act, 1962 and sub-section (12) of section 3 of the Customs Tariff Act, 1975, shall stand amended and shall be deemed to have been amended in the manner as specified in the Third Schedule, on and from the date mentioned in column (4) of that Schedule and accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done under the said notification, shall be deemed to be, and always to have been, for all purposes, as validly and effectively taken or done as if the notification as amended by this sub-section had been in force at all material times.

(2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to amend the notification referred to in the said sub-section with retrospective effect as if the Central Government had the power to amend the said notification under sub-section (1) of section 25 of the Customs Act and sub-section (12) of section 3 of Customs Tariff Act, retrospectively, at all material times.

  1. Retrospective effect of notification issued under sub-section (1) of section 25 of Customs Act and sub-section (12) of section 3 of Customs Tariff Act.
  2. The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 1270(E), dated the 31st December, 2018 amending the notification number G.S.R. 665 (E), dated the 2ndAugust, 1976, which was issued in exercise of powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 and sub-section (12) of section 3 of the Customs Tariff Act, 1975, shall be deemed to have, and always to have, for all purposes, come into force on and from the 1st day of July, 2017.

Customs Tariff

  1. Amendment of section 9.

In section 9 of the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act), after sub-section (1), the following sub-section shall be inserted, namely:––

“(1A) Where the Central Government, on such inquiry as it considers necessary, is of the opinion that circumvention of countervailing duty imposed under sub-section (1) has taken place, either by altering the description or name or composition of the article on which such duty has been imposed or by import of such article in an unassembled or disassembled form or by changing the country of its origin or export or in any other manner, whereby the countervailing duty so imposed is rendered ineffective, it may extend the countervailing duty to such other article also.”.

  1. Amendment of section 9C.

In section 9C of the Customs Tariff Act, for sub-section (1), the following sub-section shall be substituted, namely:––

“(1) An appeal against the order of determination or review thereof shall lie to the Customs, Excise and Service Tax Appellate Tribunal constituted under section 129 of the Customs Act, 1962 (hereinafter referred to as the Appellate Tribunal), in respect of the existence, degree and effect of—

(i) any subsidy or dumping in relation to import of any article; or

(ii) import of any article into India in such increased quantities and under such condition so as to cause or threatening to cause serious injury to domestic industry requiring imposition of safeguard duty in relation to import of that article.”.

  1. Amendment of First Schedule.
  2. In the Customs Tariff Act, the First Schedule shall––

(a) be amended in the manner specified in the Fourth Schedule;

(b) be also amended in the manner specified in the Fifth Schedule, with effect from such date as the Central Government may, by notification in the Offical Gazette, appoint.

  1. Validation of modification in classification of certain goods leviable to antidumping duty with retrospective effect.
  2. (1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 186 (E), dated the 22nd February, 2016 amending the notification number G.S.R. 804 (E), dated the 21st October, 2015, issued in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975 read with rules 18 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 shall be deemed to have, and always to have, for all purposes, validly come into force on and from the 21st day of October, 2015.

(2) Refund shall be made of all such anti-dumping duty which has been collected, but which would not have been so collected, if the notification referred to in sub-section (1) been in force at all material times.

(3) An application for refund of anti-dumping duty referred to in sub-section (2) shall be made within a period of six months from the date on which the Finance (No.2) Bill, 2019 receives the assent of the President.

  1. Validation of modification in description of goods with retrospective effect.
  2. (1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R.665 (E), dated the 5th July 2016 amending the notification number G.S.R. 285 (E), dated the 8th March, 2016, issued in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975, read with rules 18, 20 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 shall be deemed to have, and always to have, for all purposes, come into force on and from the 8th day of March, 2016.

(2) Refund shall be made of all such anti-dumping duty which has been collected, but which would not have been so collected, if the notification referred to in sub-section (1) been in force at all material times.

(3) An application for refund of anti-dumping duty referred to in sub-section (2) shall be made within a period of six months from the date on which the Finance (No.2) Bill, 2019 receives the assent of the President.

 

Central Excise

  1. Amendment of Fourth Schedule.

In the Fourth Schedule to the Central Excise Act, 1944, in Chapter 27, for the entry in column (4) occurring against tariff item 2709 2000, the entry “Re.1 per tonne” shall be substituted.

Central Goods and Services Tax

  1. Amendment of section 2. 

In section 2 of the Central Goods and Services Tax Act, 2017 (hereinafter referred as the Central Goods and Services Tax Act), in clause (4), after the words “the Appellate Authority for Advance Ruling,”, the words “the National Appellate Authority for Advance Ruling,” shall be inserted;

  1. Amendment of section 10.

In section 10 of the Central Goods and Services Tax Act,––

(a) in sub-section (1), after the second proviso, the following Explanation shall be inserted, namely:—

“Explanation.–– For the purposes of second proviso, the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account for determining the value of turnover in a State or Union territory.”;

(b) in sub-section (2),—

(i) in clause (d), the word ‘‘and’’ occuring at the end shall be omitted;

(ii) in clause (e), for the word ‘‘Council:’’, the words ‘‘Council; and’’ shall be substituted;

(iii) after clause (e), the following clause shall be inserted, namely:––

“(f) he is neither a casual taxable person nor a non-resident taxable person:”;

(c) after sub-section (2), the following sub-section shall be inserted, namely:––

“(2A) Notwithstanding anything to the contrary contained in this Act, but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, not eligible to opt to pay tax under sub-section (1) and sub-section (2), whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate as may be prescribed, but not exceeding three per cent. of the turnover in State or turnover in Union territory, if he is not––

(a) engaged in making any supply of goods or services which are not leviable to tax under this Act;

(b) engaged in making any inter-State outward supplies of goods or services;

(c) engaged in making any supply of goods or services through an electronic commerce operator who is required to collect tax at source under section 52;

(d) a manufacturer of such goods or supplier of such services as may be notified by the Government on the recommendations of the Council; and

(e) a casual taxable person or a non-resident taxable person:

Provided that where more than one registered person are having the same Permanent Account Number issued under the Income-tax Act, 1961, the registered person shall not be eligible to opt for the scheme under this sub-section unless all such registered persons opt to pay tax under this subsection.”;

(d) in sub-section (3), after the words, brackets and figure “under sub-section (1)” at both the places where they occur, the words, brackets, figure and letter “or sub-section (2A), as the case may be,” shall be inserted.

(e) in sub-section (4), after the words, brackets and figure “of sub-section (1)”, the words, brackets, figure and letter “or, as the case may be, sub-section (2A)” shall be inserted.

(f) in sub-section (5), after the words, brackets and figure “under sub-section (1)”, the words, brackets, figure and letter “or sub-section (2A), as the case may be,” shall be inserted.

(g) after sub-section (5), the following Explanations shall be inserted, namely:–

‘Explanation 1.–– For the purposes of computing aggregate turnover of a person for determining his eligibility to pay tax under this section, the expression “aggregate turnover” shall include the value of supplies made by such person from the 1st day of April of a financial year upto the date when he becomes liable for registration under this Act, but shall not include the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.

Explanation 2.–– For the purposes of determining the tax payable by a person under this section, the expression “turnover in State or turnover in Union territory” shall not include the value of following supplies, namely:––

(i) supplies from the first day of April of a financial year upto the date when such person becomes liable for registration under this Act; and

(ii) exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.’.

  1. Amendment of section 22.

In section 22 of the Central Goods and Services Tax Act, in sub-section (1), after the second proviso, the following shall be inserted, namely:––

“Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.

Explanation.––For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.”.

  1. Amendment of section 25.

In section 25 of the Central Goods and Services Tax Act, after sub-section (6), the following sub-sections shall be inserted, namely:–-

“(6A) Every registered person shall undergo authentication, or furnish proof of possession of Aadhaar number, in such form and manner and within such time as may be prescribed:

Provided that if an Aadhaar number is not assigned to the registered person, such person shall be offered alternate and viable means of identification in such manner as Government may, on the recommendations of the Council, prescribe:

Provided further that in case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid and the other provisions of this Act shall apply as if such person does not have a registration.

(6B) On and from the date of notification, every individual shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number, in such manner as the Government may, on the recommendations of the Council, specify in the said notification:

Provided that if an Aadhaar number is not assigned to an individual, such individual shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification.

(6C) On and from the date of notification, every person, other than an individual, shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number of the Karta, Managing Director, whole time Director, such number of partners, Members of Managing Committee of Association, Board of Trustees, authorised representative, authorised signatory and such other class of persons, in such manner, as the Government may, on the recommendation of the Council, specify in the said notification:

Provided that where such person or class of persons have not been assigned the Aadhaar Number, such person or class of persons shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification.

(6D) The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such person or class of persons or any State or Union territory or part thereof, as the Government may, on the recommendations of the Council, specify by notification.

Explanation.—For the purposes of this section, the expression “Aadhaar number” shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.”.

  1. Insertion of new section 31A. 

After section 31 of the Central Goods and Services Tax Act, the following section shall be inserted, namely:––

“31A. Facility of digital payment to recipient.

The Government may, on the recommendations of the Council, prescribe a class of registered persons who shall provide prescribed modes of electronic payment to the recipient of supply of goods or services or both made by him and give option to such recipient to make payment accordingly, in such manner and subject to such conditions and restrictions, as may be prescribed.”.

  1. Amendment of section 39.

In section 39 of the Central Goods and Services Tax Act,––

(a) for sub-sections (1) and (2), the following sub-sections shall be substituted, namely:––

‘‘(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, a return, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as may be prescribed:

Provided that the Government may, on the recommendations of the Council, notify certain class of registered persons who shall furnish a return for every quarter or part thereof, subject to such conditions and restrictions as may be specified therein.

(2) A registered person paying tax under the provisions of section 10, shall, for each financial year or part thereof, furnish a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, tax paid and such other particulars in such form and manner, and within such time, as may be prescribed.’’;

(b) for sub-section (7), the following sub-section shall be substituted, namely:––

“(7) Every registered person who is required to furnish a return under sub-section (1), other than the person referred to in the proviso thereto, or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return:

Provided that every registered person furnishing return under the proviso to sub-section (1) shall pay to the Government, the tax due taking into account inward and outward supplies of goods or services or both, input tax credit availed, tax payable and such other particulars during a month, in such form and manner, and within such time, as may be prescribed:

Provided further that every registered person furnishing return under sub-section (2) shall pay to the Government the tax due taking into account turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, and such other particulars during a quarter, in such form and manner, and within such time, as may be prescribed.”.

  1. Amendment of section 44.

In section 44 of the Central Goods and Services Tax Act, in sub-section (1), the following provisos shall be inserted, namely:—

“Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual return for such class of registered persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.”.

  1. Amendment of section 49.

In section 49 of the Central Goods and Services Tax Act, after sub-section (9), the following subsections shall be inserted, namely:—

“(10) A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in such form and manner and subject to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act.

(11) Where any amount has been transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said ledger as provided in sub-section (1).”.

  1. Amendment of section 50. 

In section 50 of the Central Goods and Services Tax Act, in sub-section (1), the following proviso shall be inserted, namely:––

“Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.”.

  1. Amendment of section 52.

In section 52 of the Central Goods and Services Tax Act,––

(a) in sub-section (4), the following provisos shall be inserted, namely:––

“Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the statement for such class of registered persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.”;

(b) in sub-section (5), the following provisos shall be inserted, namely:––

“Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual statement for such class of registered persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.”.

  1. Insertion of new section 53A. 

After section 53 of the Central Goods and Services Tax Act, the following section shall be inserted, namely:––

Transfer of certain amounts. 

“53A. Where any amount has been transferred from the electronic cash ledger under this Act to the electronic cash ledger under the State Goods and Services Tax Act or the Union territory Goods and Services Tax Act, the Government shall, transfer to the State tax account or the Union territory tax account, an amount equal to the amount transferred from the electronic cash ledger, in such manner and within such time as may be prescribed.”.

  1. Amendment of section 54.

In section 54 of the Central Goods and Services Tax Act, after sub-section (8), the following sub-section shall be inserted, namely:––

“(8A) The Government may disburse the refund of the State tax in such manner as may be prescribed.”.

  1. Amendment of section 95.

In section 95 of the Central Goods and Services Tax Act,––

(i) in clause (a),––

(a) after the words “Appellate Authority”, the words “or the National Appellate Authority” shall be inserted;

(b) after the words and figures “of section 100”, the words, figures and letter “or of section 101C” shall be inserted;

(ii) after clause (e), the following clause shall be inserted, namely:––

“(f) “National Appellate Authority” means the National Appellate Authority for Advance Ruling referred to in section 101A.”.

  1. Insertion of new sections 101A, 101B and 101C.

After section 101 of the Central Goods and Services Tax Act, the following sections shall be inserted, namely:––

Constitution of National Appellate Authority for Advance Ruling.

“101A. (1) The Government shall, on the recommendations of the Council, by notification, constitute, with effect from such date as may be specified therein, an Authority known as the National Appellate Authority for Advance Ruling for hearing appeals made under section 101B.

(2) The National Appellate Authority shall consist of—

(i) the President, who has been a Judge of the Supreme Court or is or has been the Chief Justice of a High Court, or is or has been a Judge of a High Court for a period not less than five years;

(ii) a Technical Member (Centre) who is or has been a member of Indian Revenue (Customs and Central Excise) Service, Group A, and has completed at least fifteen years of service in Group A;

(iii) a Technical Member (State) who is or has been an officer of the State Government not below the rank of Additional Commissioner of Value Added Tax or the Additional Commissioner of State tax with at least three years of experience in the administration of an existing law or the State Goods and Services Tax Act or in the field of finance and taxation.

(3) The President of the National Appellate Authority shall be appointed by the Government after consultation with the Chief Justice of India or his nominee:

Provided that in the event of the occurrence of any vacancy in the office of the President by reason of his death, resignation or otherwise, the senior most Member of the National Appellate Authority shall act as the President until the date on which a new President, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office:

Provided further that where the President is unable to discharge his functions owing to absence, illness or any other cause, the senior most Member of the National Appellate Authority shall discharge the functions of the President until the date on which the President resumes his duties.

(4) The Technical Member (Centre) and Technical Member (State) of the National Appellate Authority shall be appointed by the Government on the recommendations of a Selection Committee consisting of such persons and in such manner as may be prescribed.

(5) No appointment of the Members of the National Appellate Authority shall be invalid merely by the reason of any vacancy or defect in the constitution of the Selection Committee.

(6) Before appointing any person as the President or Members of the National Appellate Authority, the Government shall satisfy itself that such person does not have any financial or other interests which are likely to prejudicially affect his functions as such President or Member.

(7) The salary, allowances and other terms and conditions of service of the President and the Members of the National Appellate Authority shall be such as may be prescribed: Provided that neither salary and allowances nor other terms and conditions of service of the President or Members of the National Appellate Authority shall be varied to their disadvantage after their appointment.

(8) The President of the National Appellate Authority shall hold office for a term of three years from the date on which he enters upon his office, or until he attains the age of seventy years, whichever is earlier and shall also be eligible for reappointment.

(9) The Technical Member (Centre) or Technical Member (State) of the National Appellate Authority shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier and shall also be eligible for reappointment.

(10) The President or any Member may, by notice in writing under his hand addressed to the Government, resign from his office:

Provided that the President or Member shall continue to hold office until the expiry of three months from the date of receipt of such notice by the Government, or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.

(11) The Government may, after consultation with the Chief Justice of India, remove from the office such President or Member, who—

(a) has been adjudged an insolvent; or

(b) has been convicted of an offence which, in the opinion of such Government involves moral turpitude; or

(c) has become physically or mentally incapable of acting as such President or Member; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as such President or Member; or

(e) has so abused his position as to render his continuance in office prejudicial to the public interest:

Provided that the President or the Member shall not be removed on any of the grounds specified in clauses (d) and (e), unless he has been informed of the charges against him and has been given an opportunity of being heard.

(12) Without prejudice to the provisions of sub-section (11), the President and Technical Members of the National Appellate Authority shall not be removed from their office except by an order made by the Government on the ground of proven misbehaviour or incapacity after an inquiry made by a Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to him by the Government and such President or Member had been given an opportunity of being heard.

(13) The Government, with the concurrence of the Chief Justice of India, may suspend from office, the President or Technical Members of the National Appellate Authority in respect of whom a reference has been made to the Judge of the Supreme Court under sub-section (12).

(14) Subject to the provisions of article 220 of the Constitution, the President or Members of the National Appellate Authority, on ceasing to hold their office, shall not be eligible to appear, act or plead before the National Appellate Authority where he was the President or, as the case may be, a Member.

Appeal to National Appellate Authority.

101B. (1) Where, in respect of the questions referred to in sub-section (2) of section 97, conflicting advance rulings are given by the Appellate Authorities of two or more States or Union territories or both under sub-section (1) or sub-section (3) of section 101, any officer authorised by the Commissioner or an applicant, being distinct person referred to in section 25 aggrieved by such advance ruling, may prefer an appeal to National Appellate Authority:

Provided that the officer shall be from the States in which such advance rulings have been given. (2) Every appeal under this section shall be filed within a period of thirty days from the date on which the ruling sought to be appealed against is communicated to the applicants, concerned officers and jurisdictional officers:

Provided that the officer authorised by the Commissioner may file appeal within a period of ninety days from the date on which the ruling sought to be appealed against is communicated to the concerned officer or the jurisdictional officer:

Provided further that the National Appellate Authority may, if it is satisfied that the appellant was prevented by a sufficient cause from presenting the appeal within the said period of thirty days, or as the case may be, ninety days, allow such appeal to be presented within a further period not exceeding thirty days.

Explanation.–– For removal of doubts, it is clarified that the period of thirty days or as the case may be, ninety days shall be counted from the date of communication of the last of the conflicting rulings sought to be appealed against.

(3) Every appeal under this section shall be in such form, accompanied by such fee and verified in such manner as may be prescribed.

Order of National Appellate Authority. 

101C. (1) The National Appellate Authority may, after giving an opportunity of being heard to the applicant, the officer authorised by the Commissioner, all Principal Chief Commissioners, Chief Commissioners of Central tax and Chief Commissioner and Commissioner of State tax of all States and Chief Commissioner and Commissioner of Union territory tax of all Union territories, pass such order as it thinks fit, confirming or modifying the rulings appealed against.

(2) If the members of the National Appellate Authority differ in opinion on any point, it shall be decided according to the opinion of the majority.

(3) The order referred to in sub-section (1) shall be passed as far as possible within a period of ninety days from the date of filing of the appeal under section 101B.

(4) A copy of the advance ruling pronounced by the National Appellate Authority shall be duly signed by the Members and certified in such manner as may be prescribed and shall be sent to the applicant, the officer authorised by the Commissioner, the Board, the Chief Commissioner and Commissioner of State tax of all States and Chief Commissioner and Commissioner of Union territory tax of all Union territories and to the Authority or Appellate Authority, as the case may be, after such pronouncement.”.

  1. Amendment of section 102.

In section 102 of the Central Goods and Services Tax Act, in the opening portion,––

(a) after the words “Appellate Authority”, at both the places where they occur, the words “or the National Appellate Authority” shall be inserted;

(b) after the words and figures “or section 101”, the words, figures and letter “or section 101C, respectively,” shall be inserted;

(c) for the words “or the appellant”, the words “,appellant, the Authority or the Appellate Authority” shall be substituted.

  1. Amendment of section 103.

In section 103 of the Central Goods and Services Tax Act,––

(i) after sub-section (1), the following sub-section shall be inserted, namely:––

“(1A) The advance ruling pronounced by the National Appellate Authority under this Chapter shall be binding on—

(a) the applicants, being distinct persons, who had sought the ruling under sub-section (1) of section 101B and all registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961;

(b) the concerned officers and the jurisdictional officers in respect of the applicants referred to in clause (a) and the registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961.”;

(ii) in sub-section (2), after the words, brackets and figure “in sub-section (1)”, the words, brackets, figure and letter “and sub-section (1A)” shall be inserted.

  1. Amendment of section 104

In section 104 of the Central Goods and Services Tax Act, in sub-section (1),––

(a) after the words “Authority or the Appellate Authority”, the words “or the National Appellate Authority” shall be inserted;

(b) after the words and figures “of section 101”, the words, figures and letter “or under section 101C” shall be inserted.

  1. Amendment of section 105.

In section 105 of the Central Goods and Services Tax Act,––

(a) for the marginal heading, the following marginal heading shall be substituted, namely:––

“Powers of Authority, Appellate Authority and National Appellate Authority”;

(b) in sub-section (1), after the words “Appellate Authority”, the words “or the National Appellate Authority” shall be inserted;

(c) in sub-section (2), after the words “Appellate Authority”, the words “or the National Appellate Authority” shall be inserted.

  1. Amendment of section 106.

In section 106 of the Central Goods and Services Tax Act,––

(a) for the marginal heading, the following marginal heading shall be substituted, namely:––

“Procedure of Authority, Appellate Authority and National Appellate Authority”;

(b) after the words “Appellate Authority”, the words “or the National Appellate Authority” shall be inserted.

  1. Amendment of section 168.

In section 168 of the Central Goods and Services Tax Act, in sub-section (2), after the word, and figures “section 39,”, the words, brackets and figures “sub-section (1) of section 44, sub-sections (4) and (5) of section 52,” shall be inserted.

  1. Amendment of section 171.

In section 171 of the Central Goods and Services Tax Act, after sub-section (3), the following shall be inserted, namely:––

“(3A) Where the Authority referred to in sub-section (2) after holding examination as required under the said sub-section comes to the conclusion that any registered person has profiteered under sub- section (1), such person shall be liable to pay penalty equivalent to ten per cent. of the amount so profiteered:

Provided that no penalty shall be leviable if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority.

Explanation.— For the purposes of this section, the expression “profiteered” shall mean the amount determined on account of not passing the benefit of reduction in rate of tax on supply of goods or services or both or the benefit of input tax credit to the recipient by way of commensurate reduction in the price of the goods or services or both.”.

112.Amendment of notification number G.S.R. 674(E) issued under subsection (1) of section 11 of Central Goods and Services Tax Act, retrospectively.

(1) In the notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 674(E), dated the 28th June, 2017, issued by the Central Government on the recommendations of the Council, under sub-section (1) of the section 11 of the Central Goods and Services Tax Act, 2017, in the Schedule, after S. No. 103 and the entries relating thereto, the following S. No. and the entries shall be inserted and shall deemed to have been inserted retrospectively with effect from the 1st day of July, 2017, namely:–– 

(1)

(2)

(3)

“103A

26

Uranium Ore Concentrate”.

 (2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to amend the notification referred to in sub-section (1) with retrospective effect as if the Central Government had the power to amend the said notification under sub-section (1) of section 11 of the said Act, retrospectively, at all material times.

(3) No refund shall be made of all such tax which has been collected, but which would not have been so collected, if the notification referred to in sub-section (1) had been in force at all material times.

 

Integrated Goods and Services Tax

  1. Insertion of new section 17A.

After section 17 of the Integrated Goods and Services Tax Act, 2017, the following section shall be inserted, namely:––

“17A. Transfer of certain amounts.

Where any amount has been transferred from the electronic cash ledger under this Act to the electronic cash ledger under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, the Government shall transfer to the State tax account or the Union territory tax account, an amount equal to the amount transferred from the electronic cash ledger, in such manner and within such time, as may be prescribed.”.

  1. Amendment of notification number G.S.R. 667(E) issued under subsection (1) of section 6 of Integrated Goods and Services Tax Act, retrospectively.

(1) In the notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 667(E), dated the 28th June, 2017, issued by the Central Government on the recommendations of the Council, under sub-section (1) of the section 6 of the Integrated Goods and Services Tax Act, 2017, in the Schedule, after S. No. 103 and the entries relating thereto, the following S. No. and the entries shall be inserted and shall deemed to have been inserted retrospectively with effect from the 1st day of July, 2017, namely:—

(1)

(2)

(3)

“103A

26

Uranium Ore Concentrate”.

(2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to amend the notification referred to in sub-section(1) with retrospective effect as if the Central Government had the power to amend the said notification under sub-section (1) of section 6 of the said Act, retrospectively, at all material times.

(3) No refund shall be made of all such tax which has been collected, but which would not have been so collected, if the notification referred to in sub-section (1) had been in force at all material times.

 

Union Territory Goods and Services Tax

  1. Amendment of notification number G.S.R. 711(E) issued under sub-section (1) of section 8 of Union Territory Goods and Services Tax Act, retrospectively.

(1) In the notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 711(E), dated the 28th June, 2017, issued by the Central Government on the recommendations of the Council, under sub-section (1) of the section 8 of the Union Territory Goods and Services Tax Act, 2017, in the Schedule, after S. No. 103 and the entries relating thereto, the following S. No. and the entries shall be inserted and shall deemed to have been inserted retrospectively with effect from the 1st day of July, 2017, namely:––

(1)

(2)

(3)

“103A

26

Uranium Ore Concentrate”.


(2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to amend the notification referred to in sub-section (1) with retrospective effect as if the Central Government had the power to amend the said notification under sub-section (1) of section 8 of the said Act, retrospectively, at all material times.

(3) No refund shall be made of all such tax which has been collected, but which would not have been so collected, if the notification referred to in sub-section (1) had been in force at all material times.

 

Service Tax

  1. Special provision for retrospective exemption from service tax on service by way of grant of liquor licence.

(1) Notwithstanding anything contained in section 66B of Chapter V of the Finance Act, 1994 as it stood prior to its omission vide section 173 of the Central Goods and Services Tax Act, 2017 with effect from the 1st day of July, 2017(hereinafter referred to as the said Chapter), no service tax shall be levied or collected in respect of taxable service provided or agreed to be provided by the State Government by way of grant of liquor licence, against consideration in the form of licence fee or application fee, by whatever name called, during the period commencing from the 1st day of April, 2016 and ending with the 30th day of June, 2017 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times:

Provided that an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance (No.2) Bill, 2019 receives the assent of the President.

(3) Notwithstanding the omission of the said Chapter, the provisions of the said Chapter shall apply for refund under this section retrospectively as if the said Chapter had been in force at all material times.

  1. Special provision for retrospective exemption from service tax in certain cases relating to services provided by Indian Institutes of Management to students.

(1) Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, or in section 66B, as it stood prior to the 1st day of July, 2017, of Chapter V of the Finance Act, 1994, as it stood prior to its omission vide section 173 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the said Chapter), no service tax shall be levied or collected during the period commencing from the 1st day of July, 2003 and ending with the 31st day of March, 2016 (both days inclusive), in respect of taxable services provided or agreed to be provided by the Indian Institutes of Management to the students as per the guidelines of the Central Government, by way of the following educational programmes, except Executive Development Programme, namely:—

(a) two year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test conducted by the Indian Institute of Management;

(b) fellow programme in Management;

(c) five year integrated programme in Management.

(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times:

Provided that an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance (No.2) Bill, 2019 receives the assent of the President.

(3) Notwithstanding the omission of the said Chapter, the provisions of the said Chapter shall apply for refund under this section retrospectively as if the said Chapter had been in force at all material times.

  1. Special provision for retrospective exemption from service tax in certain cases relating to long term lease of plots for development of infrastructure for financial business.

(1) Notwithstanding anything contained in section 66B of Chapter V of the Finance Act, 1994, as it stood prior to its omission vide section 173 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the said Chapter), no service tax shall be levied or collected on upfront amount, called as premium, salami, cost, price, development charges or by any other name, payable in respect of service by way of granting long term lease of thirty years or more of plots for development of infrastructure for financial business, provided or agreed to be provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having fifty per cent. or more of the ownership of the Central Government or the State Government or the Union territory, either directly or through an entity which is wholly owned by the Central Government or the State Government or the Union territory, to the developers in any industrial or financial business area during the period commencing from the 1st day of October, 2013 and ending with the 30th day of June, 2017 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times:

Provided that an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance (No.2) Bill, 2019 receives assent of the President.

(3) Notwithstanding the omission of the said Chapter, the provisions of the said Chapter shall apply for refund under this section retrospectively as if the said Chapter had been in force at all material times.

 

CHAPTER V

SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019

  1. Short title and commencement.

(1) This Scheme shall be called the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (hereafter in this Chapter referred to as the “Scheme”).

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

  1. Definitions.

In this Scheme, unless the context otherwise requires,—

(a ) “amount declared” means the amount declared by the declarant under section 124;

(b) “amount estimated” means the amount estimated by the designated committee under section 126;

(c) “amount in arrears” means the amount of duty which is recoverable as arrears of duty under the indirect tax enactment, on account of—

(i) no appeal having been filed by the declarant against an order or an order in appeal before expiry of the period of time for filing appeal; or

(ii) an order in appeal relating to the declarant attaining finality; or

(iii) the declarant having filed a return under the indirect tax enactment on or before the 30th day of June, 2019, wherein he has admitted a tax liability but not paid it;

(d) “amount of duty “ means the amount of central excise duty, the service tax and the cess payable under the indirect tax enactment;

(e) “amount payable” means the final amount payable by the declarant as determined by the designated committee and as indicated in the statement issued by it, in order to be eligible for the benefits under this Scheme and shall be calculated as the amount of tax dues less the tax relief;

(f) “appellate forum” means the Supreme Court or the High Court or the Customs, Excise and Service Tax Appellate Tribunal or the Commissioner ( Appeals);

(g) “audit” means any scrutiny, verification and checks carried out under the indirect tax enactment, other than an enquiry or investigation, and will commence when a written intimation from the central excise officer regarding conducting of audit is received;

(h) “declarant” means a person who is eligible to make a declaration and files such declaration under section 124;

(i ) “declaration” means the declaration filed under section 124;

(j) “departmental appeal” means the appeal filed by a central excise officer authorised to do so under the indirect tax enactment, before the appellate forum;

(k) “designated committee” means the committee referred to in section 125;

(l) “discharge certificate” means the certificate issued by the designated committee under section 126;

(m) ‘‘enquiry or investigation’’, under any of the indirect tax enactment, shall include the following actions, namely:—

(i) search of premises;

(ii) issuance of summons;

(iii) requiring the production of accounts, documents or other evidence;

(iv) recording of statements;

(n) “indirect tax enactment” means the enactments specified in section 121;

(o) “order” means an order of determination under any of the indirect tax enactment, passed in relation to a show cause notice issued under such indirect tax enactment;

(p) “order in appeal” means an order passed by an appellate forum with respect to an appeal filed before it;

(q) “person” includes—

(i) an individual;

(ii) a Hindu undivided family;

(iii) a company;

(iv) a society;

(v) a limited liability partnership;

(vi) a firm;

(vii) an association of persons or body of individuals, whether incorporated or not;

(viii)the Government;

(ix) a local authority;

(x) an assessee as defined in rule 2 of the Central Excise Rules, 2002;

(xi) every artificial juridical person, not falling within any of the preceding clauses.

(r) ‘‘quantified”, with its cognate expression, means a written communication of the amount of duty payable under the indirect tax enactment;

(s) “statement” means the statement issued by the designated committee under section 126;

(t) “tax relief” means the amount of relief granted under section 123;

(u) all other words and expressions used in this Scheme, but not defined, shall have the same meaning as assigned to them in the indirect tax enactment and in case of any conflict between two or more such meanings in any indirect tax enactment, the meaning which is more congruent with the provisions of this Scheme shall be adopted.

  1. Application of Scheme to indirect tax enactments.

This Scheme shall be applicable to the following enactments, namely:—

(a) the Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act, 1994 and the rules made thereunder;

(b) the following Acts, namely:—

(i) the Agricultural Produce Cess Act,1940;

(ii) the Coffee Act, 1942;

(iii) the Mica Mines Labour Welfare Fund Act, 1946;

(iv) the Rubber Act, 1947;

(v) the Salt Cess Act, 1953;

(vi) the Medicinal and Toilet Preparations (Excise Duties) Act, 1955;

(vii) the Additional Duties of Excise (Goods of Special Importance) Act, 1957;

(viii) the Mineral Products (Additional Duties of Excise and Customs) Act, 1958;

(ix) the Sugar (Special Excise Duty) Act, 1959;

(x) the Textiles Committee Act, 1963;

(xi) the Produce Cess Act, 1966;

(xii) the Limestone and Dolomite Mines Labour Welfare Fund Act, 1972;

(xiii) the Coal Mines (Conservation and Development) Act, 1974;

(xiv) the Oil Industry (Development) Act, 1974;

(xv) the Tobacco Cess Act, 1975;

(xvi) the Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Cess Act, 1976;

(xvii) the Bidi Workers Welfare Cess Act, 1976;

(xviii) the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978;

(xix) the Sugar Cess Act, 1982;

(xx) the Jute Manufacturers Cess Act, 1983;

(xxi) the Agricultural and Processed Food Products Export Cess Act, 1985;

(xxii) the Spices Cess Act, 1986;

(xxiii) the Finance Act, 2004;

(xxiv) the Finance Act, 2007;

(xxv) the Finance Act, 2015;

(xxvi) the Finance Act, 2016;

(c) any other Act, as the Central Government may, by notification in the Official Gazette, specify.

  1. Tax dues.

For the purposes of the Scheme, “tax dues” means—

(a) where—

(i) a single appeal arising out of an order is pending as on the 30th day of June, 2019 before the appellate forum, the total amount of duty which is being disputed in the said appeal;

(ii) more than one appeal arising out of an order, one by the declarant and the other being a departmental appeal, which are pending as on the 30th day of June, 2019 before the appellate forum, the sum of the amount of duty which is being disputed by the declarant in his appeal and the amount of duty being disputed in the departmental appeal:

Provided that nothing contained in the above clauses shall be applicable where such an appeal has been heard finally on or before the 30th day of June, 2019.

Illustration 1: The show cause notice to a declarant was for an amount of duty of Rs.1000 and an amount of penalty of Rs.100. The order was for an amount of duty of Rs.1000 and amount of penalty of Rs.100. The declarant files an appeal against this order. The amount of duty which is being disputed is Rs.1000 and hence the tax dues are Rs.1000.

Illustration 2: The show cause notice to a declarant was for an amount of duty of Rs.1000 and an amount of penalty of Rs.100. The order was for an amount of duty of Rs.900 and penalty of Rs.90. The declarant files an appeal against this order. The amount of duty which is being disputed is Rs.900 and hence tax dues are Rs.900.

Illustration 3: The show cause notice to a declarant was for an amount of duty of Rs.1000 and an amount of penalty of Rs.100. The order was for an amount of duty of Rs.900 and penalty of Rs 90. The declarant files an appeal against this order of determination. The departmental appeal is for an amount of duty of Rs.100 and penalty of Rs.10. The amount of duty which is being disputed is Rs.900 plus Rs.100 i.e Rs.1000 and hence tax dues are Rs.1000.

Illustration 4: The show cause notice to a declarant was for an amount of duty of Rs.1000. The order was for an amount of duty of Rs.1000. The declarant files an appeal against this order of determination. The first appellate authority reduced the amount of duty to Rs.900. The declarant files a second appeal. The amount of duty which is being disputed is Rs.900 and hence tax dues are Rs.900;

(b) where a show cause notice under any of the indirect tax enactment has been received by the declarant on or before the 30th day of June, 2019, then, the amount of duty stated to be payable by the declarant in the said notice:

Provided that if the said notice has been issued to the declarant and other persons making them jointly and severally liable for an amount, then, the amount indicated in the said notice as jointly and severally payable shall be taken to be the amount of duty payable by the declarant;

(c) where an enquiry or investigation or audit is pending against the declarant, the amount of duty payable under any of the indirect tax enactment which has been quantified on or before the 30th day of June, 2019;

(d) where the amount has been voluntarily disclosed by the declarant, then, the total amount of duty stated in the declaration;

(e) where an amount in arrears relating to the declarant is due, the amount in arrears.

  1. Relief available under Scheme.

(1) Subject to the conditions specified in sub-section (2), the relief available to a declarant
under this Scheme shall be calculated as follows:

(a) where the tax dues are relatable to a show cause notice or one or more appeals arising out of such notice which is pending as on the 30th day of June, 2019, and if the amount of duty is,—

(i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues;

(ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues;

(b) where the tax dues are relatable to a show cause notice for late fee or penalty only, and the amount of duty in the said notice has been paid or is nil, then, the entire amount of late fee or penalty;

(c) where the tax dues are relatable to an amount in arrears and,—

(i) the amount of duty is, rupees fifty lakhs or less, then, sixty per cent. of the tax dues;

(ii) the amount of duty is more than rupees fifty lakhs, then, forty per cent. of the tax dues;

(iii) in a return under the indirect tax enactment, wherein the declarant has indicated an amount of duty as payable but not paid it and the duty amount indicated is,—

(A) rupees fifty lakhs or less, then, sixty per cent. of the tax dues;

(B) amount indicated is more than rupees fifty lakhs, then, forty per cent. of the tax dues;

(d) where the tax dues are linked to an enquiry, investigation or audit against the declarant and the amount quantified on or before the 30th day of June, 2019 is—

(i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues;

(ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues;

(e) where the tax dues are payable on account of a voluntary disclosure by the declarant, then, no relief shall be available with respect to tax dues.

(2) The relief calculated under sub-section (1) shall be subject to the condition that any amount paid as predeposit at any stage of appellate proceedings under the indirect tax enactment or as deposit during enquiry, investigation or audit, shall be deducted when issuing the statement indicating the amount payable by the declarant:

Provided that if the amount of predeposit or deposit already paid by the declarant exceeds the amount payable by the declarant, as indicated in the statement issued by the designated committee, the declarant shall not be entitled to any refund.

  1. Declaration under Scheme. 

(1) All persons shall be eligible to make a declaration under this Scheme except the following, namely:—

(a) who have filed an appeal before the appellate forum and such appeal has been heard finally on or before the 30th day of June, 2019;

(b) who have been convicted for any offence punishable under any provision of the indirect tax enactment for the matter for which he intends to file a declaration;

(c) who have been issued a show cause notice, under indirect tax enactment and the final hearing has taken place on or before the 30th day of June, 2019;

(d) who have been issued a show cause notice under indirect tax enactment for an erroneous refund or refund;

(e) who have been subjected to an enquiry or investigation or audit and the amount of duty involved in the said enquiry or investigation or audit has not been quantified on or before the 30th day of June, 2019;

(f) a person making a voluntary disclosure,—

(i) after being subjected to any enquiry or investigation or audit; or

(ii) having filed a return under the indirect tax enactment, wherein he has indicated an amount of duty as payable, but has not paid it;

(g) who have filed an application in the Settlement Commission for settlement of a case;

(h) persons seeking to make declarations with respect to excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944;

(2) A declaration under sub-section (1) shall be made in such electronic form as may be prescribed.

  1. Verification of declaration by designated committee.

(1) The designated committee shall verify the correctness of the declaration made by the declarant under section 124 in such manner as may be prescribed:

Provided that no such verification shall be made in case where a voluntary disclosure of an amount of duty has been made by the declarant.

(2) The composition and functioning of the designated committee shall be such as may be prescribed.

  1. Issue of statement by designated committee.

(1) Where the amount estimated to be payable by the declarant, as estimated by the designated committee, equals the amount declared by the declarant, then, the designated committee shall issue in electronic form, a statement, indicating the amount payable by the declarant, within a period of sixty days from the date of receipt of the said declaration.

(2) Where the amount estimated to be payable by the declarant, as estimated by the designated committee, exceeds the amount declared by the declarant, then, the designated committee shall issue in electronic form, an estimate of the amount payable by the declarant within thirty days of the date of receipt of the declaration.

(3) After the issue of the estimate under sub-section (2), the designated committee shall give an opportunity of being heard to the declarant, if he so desires, before issuing the statement indicating the amount payable by the declarant:

Provided that on sufficient cause being shown by the declarant, only one adjournment may be granted by the designated committee.

(4) After hearing the declarant, a statement in electronic form indicating the amount payable by the declarant, shall be issued within a period of sixty days from the date of receipt of the declaration.

(5) The declarant shall pay electronically through internet banking, the amount payable as indicated in the statement issued by the designated committee, within a period of thirty days from the date of issue of such statement.

(6) Where the declarant has filed an appeal or reference or a reply to the show cause notice against any order or notice giving rise to the tax dues, before the appellate forum, other than the Supreme Court or the High Court, then, notwithstanding anything contained in any other provisions of any law for the time being in force, such appeal or reference or reply shall be deemed to have been withdrawn.

(7) Where the declarant has filed a writ petition or appeal or reference before any High Court or the Supreme Court against any order in respect of the tax dues, the declarant shall file an application before such High Court or the Supreme Court for withdrawing such writ petition, appeal or reference and after withdrawal of such writ petition, appeal or reference with the leave of the Court, he shall furnish proof of such withdrawal to the designated committee, in such manner as may be prescribed, along with the proof of payment referred to in sub-section (5).

(8) On payment of the amount indicated in the statement of the designated committee and production of proof of withdrawal of appeal, wherever applicable, the designated committee shall issue a discharge certificate in electronic form, within thirty days of the said payment and production of proof .

  1. Rectification of errors.

Within thirty days of the date of issue of a statement indicating the amount payable by the declarant, the designated committee may modify its order only to correct an arithmetical error or clerical error, which is apparent on the face of record, on such error being pointed out by the declarant or suo motu, by the designated committee.

  1. Issue of discharge certificate to be conclusive of matter and time period.

(1) Every discharge certificate issued under section 126 with respect to the amount payable under this Scheme shall be conclusive as to the matter and time period stated therein, and–

(a) the declarant shall not be liable to pay any further duty, interest, or penalty with respect to the matter and time period covered in the declaration;

(b) the declarant shall not be liable to be prosecuted under the indirect tax enactment with respect to the matter and time period covered in the declaration;

(c) no matter and time period covered by such declaration shall be reopened in any other proceeding under the indirect tax enactment.

(2) Notwithstanding anything contained in sub-section (1),—

(a) no person being a party in appeal, application, revision or reference shall contend that the central excise officer has acquiesced in the decision on the disputed issue by issuing the discharge certificate under this scheme;

(b) the issue of the discharge certificate with respect to a matter for a time period shall not preclude the issue of a show cause notice,—

(i) for the same matter for a subsequent time period; or

(ii) for a different matter for the same time period;

(c) in a case of voluntary disclosure where any material particular furnished in the declaration is subsequently found to be false, within a period of one year of issue of the discharge certificate, it shall be presumed as if the declaration was never made and proceedings under the applicable indirect tax enactment shall be instituted.

  1. Restrictions of Scheme.

(1) Any amount paid under this Scheme,—

(a) shall not be paid through the input tax credit account under the indirect tax enactment or any other Act;

(b) shall not be refundable under any circumstances;

(c) shall not, under the indirect tax enactment or under any other Act,—

(i) be taken as input tax credit; or

(ii) entitle any person to take input tax credit, as a recipient, of the excisable goods or taxable services, with respect to the matter and time period covered in the declaration.

(2) In case any predeposit or other deposit already paid exceeds the amount payable as indicated in the statement of the designated committee, the difference shall not be refunded.

  1. Removal of doubts. 

For the removal of doubts, it is hereby declared that, save as otherwise expressly provided in sub-section (1) of section 123, nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant in any proceedings other than those in relation to the matter and time period to which the declaration has been made.

  1. Power to make rules.

(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Scheme.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—

(a) the form in which a declaration may be made and the manner in which such declaration may be verified;

(b) the manner of constitution of the designated committee and its rules of procedure and functioning;

(c) the form and manner of estimation of amount payable by the declarant and the procedure relating thereto;

(d) the form and manner of making the payment by the declarant and the intimation regarding the withdrawal of appeal;

(e) the form and manner of the discharge certificate which may be granted to the declarant;

(f) the manner in which the instructions may be issued and published;

(g) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules.

(3) The Central Government shall cause every rule made under this Scheme to be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

  1. Power to issue orders, instructions, etc.

(1) The Central Board of Indirect Taxes and Customs may, from time to time, issue such orders, instructions and directions to the authorities, as it may deem fit, for the proper administration of this Scheme, and such authorities, and all other persons employed in the execution of this Scheme shall observe and follow such orders, instructions and directions:

Provided that no such orders, instructions or directions shall be issued so as to require any designated authority to dispose of a particular case in a particular manner.

(2) Without prejudice to the generality of the foregoing power, the Central Board of Indirect Taxes and Customs may, if it considers necessary or expedient so to do, for the purpose of proper and efficient administration of the Scheme and collection of revenue, issue, from time to time, general or special orders in respect of any class of cases, setting forth directions or instructions as to the guidelines, principles or procedures to be followed by the authorities in the work relating to administration of the Scheme and collection of revenue and any such order may, if the said Board is of opinion that it is necessary in the public interest so to do, be published in the prescribed manner.

  1. Removal of difficulties.

(1) If any difficulty arises in giving effect to the provisions of this Scheme, the Central Government may, by order, not inconsistent with the provisions of this Scheme, remove the difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of this Scheme come into force.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.

  1. Protection to officers.

(1) No suit , prosecution or other legal proceeding shall lie against the Central Government or any officer of the Central Government for anything which is done, or intended to be done in good faith, in pursuance of this Scheme or any rule made thereunder.

(2) No proceeding, other than a suit shall be commenced against the Central Government or any officer of the Central Government for anything done or purported to have been done in pursuance of this Scheme, or any rule made thereunder, without giving the Central Government or such officer a prior notice of not less than one month in writing of the intended proceeding and of the cause thereof, or after the expiration of three months from the accrual of such cause.

(3) No proceeding shall be commenced against any officer only on the ground of subsequent detection of an error in calculating the amount of duty payable by the declarant, unless there is evidence of misconduct".

 

CHAPTER VI

MISCELLANEOUS

PART I

AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934

  1. Commencement of this Part.

The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

  1. Amendment of section 45-IA.

In the Reserve Bank of India Act, 1934 (hereafter in this Part referred to as the principal Act), in section 45-IA, in sub-section (1), for clause (b), the following shall be substituted, namely:—

“(b) having the net owned fund of twenty-five lakh rupees or such other amount, not exceeding hundred crore rupees, as the Bank may, by notification in the Official Gazette, specify: Provided that the Bank may notify different amounts of net owned fund for different categories of non-banking financial companies.”.

  1. Insertion of new sections 45-ID and 45-IE.

After section 45-IC of the principal Act, the following sections shall be inserted, namely:—

“45-ID. Power of Bank to remove directors from office.

(1) Where the Bank is satisfied that in the public interest or to prevent the affairs of a nonbanking financial company being conducted in a manner detrimental to the interest of the depositors or creditors, or financial stability or for securing the proper management of such company, it is necessary so to do, the Bank may, by order and for reasons to be recorded in writing, remove from office, a director (by whatever name called) of such company, other than Government owned nonbanking financial company with effect from such date as may be specified in the said order.

(2) No order under sub-section (1) shall be made unless the director concerned has been given a reasonable opportunity of making a representation to the Bank against the proposed order:

Provided that if, in the opinion of the Bank, any delay will be detrimental to the interest of the said company or its depositors, the Bank may, at the time of giving the aforesaid opportunity or at any time thereafter, by order direct that, pending the consideration of the representation, if any, the director, shall not, with effect from the date of such order––

(a) act as such director of that company;

(b) in any way, whether directly or indirectly, be concerned with or take part in the management of that company.

(3) Where any order is made in respect of a director of a company under sub-section (1), he shall cease to be a director of that non-banking financial company and shall not, in any way, whether directly or indirectly, be concerned with, or take part in the management of any non-banking financial company for such period not exceeding five years at a time as may be specified in the order.

(4) Where an order under sub-section (1) has been made, the Bank may, by order in writing, appoint a suitable person in place of the director, who has been so removed from his office, with effect from such date as may be specified in such order.

(5) Any person appointed under sub-section (4) shall,—

(a) hold office during the pleasure of the Bank and subject thereto for a period not exceeding three years or such further periods not exceeding three years at a time;

(b) not incur any obligation or liability by reason only of his being a director for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto.

(6) Notwithstanding anything contained in any other law for the time being in force or in any contract, memorandum or articles of association, on the removal of a director from office under this section, such director shall not be entitled to claim any compensation for the loss or termination from office.

45-IE. Supersession of Board of directors of non-banking financial company (other than Government Company).

(1) Where the Bank is satisfied that in the public interest or to prevent the affairs of a non-banking financial company being conducted in a manner detrimental to the interest of the depositors or creditors, or of the non-banking financial company (other than Government Company), or for securing the proper management of such company or for financial stability, it is necessary so to do, the Bank may, for reasons to be recorded in writing, by order, supersede the Board of Directors of such company for a period not exceeding five years as may be specified in the order, which may be extended from time to time, so, however, that the total period shall not exceed five years.

(2) The Bank may, on supersession of the Board of Directors of the non-banking financial company under sub-section (1), appoint a suitable person as the Administrator for such period as it may determine.

(3) The Bank may issue such directions to the Administrator as it may deem appropriate and the Administrator shall be bound to follow such directions.

(4) Upon making the order of supersession of the Board of Directors of a non-banking financial company,––

(a) the chairman, managing director and other directors shall from the date of supersession of the Board of Directors vacate their offices;

(b) all the powers, functions and duties, which may, by or under the provisions of this Act or any other law for the time being in force, be exercised and discharged by or on behalf of the Board of Directors of such non-banking financial company or by a resolution passed in general meeting of such non-banking financial company, shall, until the Board of Directors of such company is reconstituted, be exercised and discharged by the Administrator referred to in sub-section (2).

(5) (a) The Bank may constitute a committee consisting of three or more members who have experience in law, finance, banking, administration or accountancy to assist the Administrator in discharge of his duties.

(b) The committee shall meet at such times and places and observe such rules of procedure as may be specified by the Bank.

(6) The salary and allowances payable to the Administrator and the members of the committee constituted by the Bank shall be such as may be specified by the Bank and be paid by the concerned non-banking financial company.

(7) On or before the expiration of the period of supersession of the Board of Directors as specified in the order issued under sub-section (1), the Administrator of the non-banking financial company shall facilitate reconstitution of the Board of Directors of the non-banking financial company.

(8) Notwithstanding anything contained in any other law for the time being in force or in any contract, no person shall be entitled to claim any compensation for the loss or termination of his office.

(9) The Administrator referred to in sub-section (2) shall vacate office immediately after the Board of Directors of the non-banking financial company has been reconstituted.”.

  1. Insertion of new section 45MAA.

After section 45MA of the principal Act, the following section shall be inserted, namely:—

"45MAA. Power to take action against auditors.

Where any auditor fails to comply with any direction given or order made by the Bank under section 45MA, the Bank, may, if satisfied, remove or debar the auditor from exercising the duties as auditor of any of the Bank regulated entities for a maximum period of three years, at a time."

  1. Insertion of new section 45MBA.

After section 45MB of the principal Act, the following section shall be inserted, namely:—

'45MBA. Resolution of non-banking financial company.

(1) Without prejudice to any other provision of this Act or any other law for the time being in force, the Bank may, if it is satisfied, upon an inspection of the Books of a non-banking financial company that it is in the public interest or in the interest of financial stability so to do for enabling the continuance of the activities critical to the functioning of the financial system, frame schemes which may provide for any one or more of the following, namely:––

(a) amalgamation with any other non-banking institution;

(b) reconstruction of the non-banking financial company;

(c) splitting the non-banking financial company into different units or institutions and vesting viable and non-viable businesses in separate units or institutions to preserve the continuity of the activities of that non-banking financial company that are critical to the functioning of the financial system and for such purpose establish institutions called “Bridge Institutions”.

Explanation.––For the purposes of this sub-section, “Bridge Institutions” mean temporary institutional arrangement made under the scheme referred to in this sub-section, to preserve the continuity of the activities of a non-banking financial company that are critical to the functioning of the financial system.

(2) Without prejudice to the generality of the foregoing provisions, the scheme referred to in sub-section (1) may provide for––

(a) reduction of the pay and allowances of the chief executive officer, managing director, chairman or any officer in the senior management of the non-banking financial company;

(b) cancellation of all or some of the shares of the non-banking financial company held by the chief executive officer, managing director, chairman or any officer in the senior management of the non-banking financial company or their relatives;

(c) sale of any of the assets of the non-banking financial company.

(3) The chief executive officer, managing director, chairman or any officer in the senior management of the non-banking financial company whose pay and allowances are reduced or the shareholders whose shares are cancelled under the scheme shall not be entitled to any compensation.'

  1. Insertion of new section 45NAA.

After section 45NA of the principal Act, the following section shall be inserted, namely:—

“45NAA. Power in respect of group companies.

(1) The Bank may, at any time, direct a non-banking financial company to annex to its financial statements or furnish separately, within such time and at such intervals as may be specified by the Bank, such statements and information relating to the business or affairs of any group company of the non-banking financial company as the Bank may consider necessary or expedient to obtain for the purposes of this Act.

(2) Notwithstanding anything to the contrary contained in the Companies Act, 2013, the Bank may, at any time, cause an inspection or audit to be made of any group company of a non-banking financial company and its books of account.

Explanation.––For the purposes of this section,––

(a) “group company” shall mean an arrangement involving two or more entities related to each other through any of the following relationships, namely:––

(i) subsidiary— parent (as may be notified by the Bank in accordance with Accounting Standards);

(ii) joint venture (as may be notified by the Bank in accordance with Accounting Standards);

(iii) associate (as may be notified by the Bank in accordance with Accounting Standards);

(iv) promoter-promotee (under the Securities and Exchange Board of India Act, 1992 or the rules or regulations made thereunder for listed companies);

(v) related party;

(vi) common brand name (that is usage of a registered brand name of an entity by another entity for business purposes); and

(vii) investment in equity shares of twenty per cent. and above in the entity;

(b) “Accounting Standards” means the Accounting Standards notified by the Central Government under section 133, read with section 469 of the Companies Act, 2013 and subsection (1) of section 210A of the Companies Act, 1956.”.

  1. Amendment of section 58B.

In section 58B of the principal Act,––

(i) in sub-section (2), for the words “two thousand rupees” and “one hundred rupees”, the words “one lakh rupees” and “five thousand rupees” shall respectively be substituted;

(ii) in sub-section (4A), for the words “five lakh rupees”, the words “twenty-five lakh rupees” shall be substituted;

(iii) in sub-section (4AA), for the words “five thousand rupees”, the words “ten lakh rupees” shall be substituted;

(iv) in sub-section (4AAA), for the words “rupees fifty”, the words “five thousand rupees” shall be substituted;

(v) in sub-section (5),––

(A) in clause (a), for the words “any deposit”, the words “any deposit without being authorised so to do or” shall be substituted;

(B) in clause (b), for the word, figures and letters “section 45NA”, the word, figures and letter “section 45J” shall be substituted;

(vi) in sub-section (6), for the words “two thousand rupees” and “one hundred rupees”, the words “one lakh rupees” and “ten thousand rupees” shall respectively be substituted.

  1. Amendment of section 58G.

In section 58G of the principal Act, in sub-section (1),—

(A) in clause (a) for the words ‘‘five thousand’’, the words ‘‘twenty-five thousand ’’ shall be substituted;

(B) in clause (b) for the words ‘‘five lakh’’ and ‘‘twenty-five thousand’’, the words ‘‘ten lakh’’ and ‘‘one lakh’’ respectively shall be substituted.

 

PART II

AMENDMENT TO THE INSURANCE ACT, 1938

  1. Amendment of Act 4 of 1938.

In the Insurance Act, 1938, in section 6, after sub-section (2), the following sub-section shall be inserted, namely:––

"(3) No insurer, being a foreign company engaged in re-insurance business through a branch established in an International Financial Services Centre referred to in sub-section (1) of section 18 of the Special Economic Zones Act, 2005, shall be registered unless it has net owned funds of not less than rupees one thousand crore.”

PART III

AMENDMENTS TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956

  1. Commencement of this Part

The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

  1. Amendment of Act 42 of 1956.

In the Securities Contracts (Regulation) Act, 1956, in section 23A, in clause (a), for the words “report to a recognised stock exchange, fails to furnish the same within the time specified therefor in the listing agreement or conditions or bye-laws of the recognised stock exchange or who furnishes”, the words “report to a recognised stock exchange or to the Board, fails to furnish the same within the time specified therefor in the listing agreement or conditions or bye-laws of the recognised stock exchange or the Act or rules made thereunder, or who furnishes” shall be substituted.

PART IV

AMENDMENTS TO THE BANKING COMPANIES (ACQUISITION

AND TRANSFER OF UNDERTAKINGS) ACT, 1970

  1. Commencement of this Part

The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

  1. Amendment of Act 5 of 1970

In the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, in section 9, in sub-section (3), for clause (a), the following clause shall be substituted, namely:—

‘(a) not more than five whole-time directors to be appointed by the Central Government after consultation with the Reserve Bank:

Provided that the Central Government, may, after consultation with the Reserve Bank, by notification published in the Official Gazette, post a whole-time director so appointed to any other corresponding new bank.

Explanation.—For the purposes of this clause, the expression “corresponding new bank” shall include a “corresponding new bank” as defined in clause (b) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980;’.

PART V

AMENDMENTS TO THE GENERAL INSURANCE BUSINESS

(NATIONALISATION) ACT, 1972

  1. Amendment of Act 57 of 1972.

In the General Insurance Business (Nationalisation) Act, 1972, in section 16, in sub-section (2), for the words “only four companies”, the words “up to four companies” shall be substituted.

PART VI

AMENDMENTS TO THE BANKING COMPANIES

(ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1980

  1. Commencement of this Part

The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

  1. Amendment of Act 40 of 1980

In the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, in section 9, in sub-section (3), for clause (a), the following clause shall be substituted, namely:—

‘(a) not more than five whole-time directors to be appointed by the Central Government after consultation with the Reserve Bank:

Provided that the Central Government, may, after consultation with the Reserve Bank, by notification published in the Official Gazette, post a whole-time director so appointed to any other corresponding new bank.

Explanation.— For the purposes of this clause, the expression “corresponding new bank” shall include a “corresponding new bank” as defined in clause (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970;’.

PART VII

AMENDMENTS TO THE NATIONAL HOUSING BANK ACT, 1987

  1. Commencement of this Part.

The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

  1. Substitution of heading of Chapter V.

In the National Housing Bank Act, 1987 (hereafter in this Part referred to as the principal Act), in Chapter V, for the heading, the following heading shall be substituted, namely:—

“PROVISIONS RELATING TO HOUSING FINANCE INSTITUTIONS”

  1. Amendment of section 29A.

In section 29A of the principal Act,—

(a) for sub-sections (1) and (2), the following sub-sections shall be substituted, namely:—

“(1) Notwithstanding anything contained in this Chapter or in any other law for the time being in force, no housing finance institution which is a company shall commence housing finance as its principal business or carry on the business of housing finance as its principal business without—

(a) obtaining a certificate of registration issued under this Chapter; and

(b) having the net owned fund of ten crore rupees or such other higher amount, as the Reserve Bank may, by notification, specify.

(2) Every housing finance institution which is a company shall make an application for registration to the Reserve Bank in such form as may be specified by the Reserve Bank:

Provided that an application made by a housing finance institution which is a company to the National Housing Bank and pending for consideration with the National Housing Bank as on the date of commencement of the provisions of Part VII of Chapter VI of the Finance (No.2) Act, 2019, shall stand transferred to the Reserve Bank and thereupon the application shall be deemed to have been made under the provisions of this sub-section and shall be dealt with accordingly:

Provided further that the provisions of this sub-section shall not apply to the housing finance institution which is a company and having a valid registration certificate granted under sub-section (5) on the date of commencement of the provisions of Part VII of Chapter VI of the Finance (No.2) Act, 2019, and such housing finance institution shall be deemed to have been granted a certificate of registration under the provision of this Act.”;

(b) sub-section (3) shall be omitted;

(c) in sub-section (4),—

(i) for the words “National Housing Bank” at both the places where they occur, the words “Reserve Bank” shall be substituted;

(ii) after clause (g), the following proviso shall be inserted, namely:––

“Provided that the Reserve Bank may, wherever it considers necessary so to do, require the National Housing Bank to inspect the books of such housing finance institution and submit a report to the Reserve Bank for the purpose of considering the application.”;

(d) in sub-section (5), for the words “National Housing Bank”, the words “Reserve Bank” shall be substituted;

(e) in sub-section (6),—

(i) in the opening portion, for the words “National Housing Bank”, the words “Reserve Bank” shall be substituted;

(ii) in clause (iv), for the words “National Housing Bank” wherever they occur, the words “Reserve Bank or the National Housing Bank” shall be substituted;

(iii) in the first proviso,—

(A) for the words “housing finance institution” at both the places where they occur, the words “housing finance institution which is a company” shall be substituted;

(B) for the words “National Housing Bank” at both the places where they occur, the words “Reserve Bank” shall be substituted;

(f) in sub-section (7),––

(i) for the words “National Housing Bank”, the words “Reserve Bank” shall be substituted; (ii) in the Explanation,––

(A) in clause (I), in sub-clause (b), in item (1), for sub-item (iii), the following sub-item shall be substituted, namely:—

"(iii) all other housing finance companies; and";

(B) for clause (II), the following clause shall be substituted, namely:––

'(II) the expressions “subsidiaries” and “companies in the same group” shall have the meanings respectively assigned to them in the Companies Act, 2013:

Provided that the National Housing Bank shall, in consultation with the Reserve Bank, specify the companies to be deemed to be in the same group.’

  1. Amendment of section 29B.

In section 29B of the principal Act,—

(i) for the words “housing finance institution” wherever they occur, the words “housing finance institution which is a company” shall be substituted;

(ii) in sub-section (1), for the words “National Housing Bank”, the words “Reserve Bank” shall be substituted;

(iii) in sub-section (2), for the words “such higher percentage not exceeding twenty-five per cent., as the National Housing Bank may”, the words “such higher percentage not exceeding twenty-five per cent., as the Reserve Bank may” shall be substituted;

(iv) in sub-section (3), for the words “National Housing Bank” at both the places where they occur, the words “Reserve Bank” shall be substituted.

  1. Amendment of section 29C.

In section 29C of the principal Act, in sub-section (2),––

(a) for the words “specified by the National Housing Bank”, the words “specified by the Reserve Bank” shall be substituted;

(b) for the words “reported to the National Housing Bank”, the words “reported to the National Housing Bank and the Reserve Bank” shall be substituted;

(c) in the proviso, for the words “Provided that the National Housing Bank”, the words “Provided that the National Housing Bank or the Reserve Bank” shall be substituted;

(d) in sub-section (3), for the words “the National Housing Bank”, the words “the Reserve Bank” shall be substituted.

  1. Substitution of section 30.

For section 30 of the principal Act, the following section shall be substituted, namely:—

“30. Reserve Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money

The Reserve Bank may, if it considers necessary in the public interest so to do, by general or special order,—

(a) regulate or prohibit the issue by any housing finance institution which is a company of any prospectus or advertisement soliciting deposits of money from the public; and

(b) specify the conditions subject to which any such prospectus or advertisement, if not prohibited, may be issued.”

  1. Substitution of section 30A.

For section 30A of the principal Act, the following section shall be substituted, namely:—

“30A. Power of Reserve Bank to determine policy and issue directions

(1) If the Reserve Bank is satisfied that, in the public interest or to regulate the housing finance system of the country to its advantage or to prevent the affairs of any housing finance institution which is a company being conducted in a manner detrimental to the interest of the depositors or in a manner prejudicial to the interest of such housing finance institutions, it is necessary or expedient so to do, it may determine the policy and give directions to all or any of the housing finance institution which is a company relating to income recognition, accounting standards, making of proper provision for bad and doubtful debts, capital adequacy based on risk weights for assets and credit conversion factors for off balance-sheet items and also relating to deployment of funds by a housing finance institution which is a company or a group of such housing finance institutions or housing finance institutions which are companies generally, as the case may be, and such housing finance institutions shall be bound to follow the policy so determined and the direction so issued.

(2) Without prejudice to the generality of the powers vested under sub-section (1), the Reserve Bank may give directions to housing finance institutions which are companies generally or to a group of such housing finance institutions or to any housing finance institution which is a company in particular as to—

(a) the purpose for which advances or other fund-based or non-fund-based accommodation may not be made; and

(b) the maximum amount of advances or other financial accommodation or investment in shares and other securities which, having regard to the paid-up capital, reserves and deposits of the housing finance institution and other relevant considerations, may be made by that housing finance institution to any person or a company or to a group of companies.

(3) The Reserve Bank may, if it considers necessary in the public interest so to do, issue directions to housing finance institutions which are companies accepting deposits referred to in section 31, either generally or to any group of such housing finance institutions accepting deposits, and in particular, in respect of any matters relating to, or connected with, the receipt of deposits, including credit rating of the housing finance institution which is a company accepting deposits, the rates of interest payable on such deposits, and the periods for which deposits may be received.

(4) If any housing finance institution which is a company accepting deposits fails to comply with any direction issued under sub-section (3), the Reserve Bank may, by order, prohibit the acceptance of deposits by that housing finance institution.”

  1. Substitution of section 31.

For section 31 of the principal Act, the following section shall be substituted, namely:—

“31. Power of National Housing Bank to collect information from housing finance institutions as to deposits

(1) The National Housing Bank may at any time direct that every housing finance institution which is a company accepting deposits shall furnish to the National Housing Bank and the Reserve Bank in such form, at such intervals and within such time, such statements, information or particulars relating to or connected with deposits received by such housing finance institution, as may be specified by the National Housing Bank by general or special order.

(2) Without prejudice to the generality of the power vested in the National Housing Bank under sub-section (1), the statements, information or particulars to be furnished under sub-section (1), may relate to all or any of the following matters, namely, the amount of the deposits, the purposes and periods for which, and the rates of interest and other terms and conditions on which, such deposits are received.

(3) Every housing finance institution which is a company receiving deposits, shall, if so required by the National Housing Bank and within such time as the National Housing Bank may specify, cause to be sent at the cost of such housing finance institution, a copy of its annual balance-sheet and profit and loss account or other annual accounts to every person from whom the housing finance institution which is a company holds, as on the last day of the year to which the accounts relate, deposits higher than such sum as may be specified by the National Housing Bank.”.

  1. Substitution of section 32.

For section 32 of the principal Act, the following section shall be substituted, namely:—

“32. Duty of housing finance institution to furnish statements, etc., under this Chapter.

Every housing finance institution which is a company shall furnish the statements, information or particulars called for by the National Housing Bank or the Reserve Bank, as the case may be, and shall comply with any direction given to it under the provisions of this Chapter.”

  1. Amendment of section 33.

In section 33 of the principal Act,—

(a) in sub-section (1),—

(i) for the words “housing finance institution” wherever they occur, the words “housing finance institution which is a company” shall be substituted;

(ii) for the words “the National Housing Bank” at both the places where they occur, the words “the National Housing Bank and the Reserve Bank “ shall be substituted;

(b) in sub-section (1A), for the words “National Housing Bank”, the words “Reserve Bank” shall be substituted;

(c) in sub-section (2), for the words “the National Housing Bank” at both the places where they occur, the words “the National Housing Bank and the Reserve Bank” shall be substituted;

(d) in sub-section (3), for the words “it may at any time”, the words “it may at any time and shall, on being directed to do so by the Reserve Bank,” shall be substituted.

  1. Substitution of section 33A.

For section 33A of the principal Act, the following section shall be substituted, namely:—

“33A. Power of Reserve Bank to prohibit acceptance of deposit and alienation of assets

(1) If any housing finance institution which is a company violates the provisions of any section or fails to comply with any direction or order given by the National Housing Bank or the Reserve Bank, under any of the provisions of this Chapter, the Reserve Bank may, by order, prohibit such housing finance institution from accepting any deposit.

(2) Notwithstanding anything to the contrary contained in any agreement or instrument or any law for the time being in force, the Reserve Bank on being satisfied that it is necessary so to do in the public interest or in the interest of the depositors, may direct the housing finance institution which is a company, against which an order prohibiting from accepting deposit has been issued, not to sell, transfer, create charge or mortgage or deal in any manner with its property and assets without prior written permission of the National Housing Bank for such period not exceeding six months from the date of the order.”.

  1. Amendment of section 33B.

In section 33B of the principal Act,—

(i) in sub-section (1), in clause (c), for the words “the National Housing Bank”, the words “the National Housing Bank or the Reserve Bank” shall be substituted;

(ii) in sub-section (3), for the words “the Registrar of Companies”, the words “the Registrar of Companies and the Reserve Bank” shall be substituted.

  1. Amendment of section 34.

In section 34 in the principal Act,—

(i) for the words “at any time”, the words “at any time or on being directed so to do by the Reserve Bank, shall” shall be substituted;

(ii) for the words “housing finance institution accepting deposits” at both the places where they occur, the words “housing finance institution which is a company” shall be substituted;

(iii) after sub-section (3), the following sub-section shall be inserted, namely:—

“(4) The National Housing Bank shall submit a copy of the report of inspection referred to in sub-section (1) to the Reserve Bank.”.

  1. Amendment of section 35.

In section 35 of the principal Act,—

(i) in the opening portion, for the words “housing finance institution”, the words “housing finance institution which is a company” shall be substituted;

(ii) in clause (b), for the words “National Housing Bank”, the words “Reserve Bank” shall be substituted.

  1. Amendment of section 35A.

In section 35A of the principal Act,—

(a) for the words “housing finance institution” wherever they occur, the words “housing finance institution which is a company” shall be substituted;

(b) for the words “the National Housing Bank” wherever they occur, the words “the National Housing Bank or the Reserve Bank, as the case may be,” shall be substituted.

  1. Substitution of section 35B.

For section 35B of the principal Act, the following section shall be substituted, namely:—

“35B. Power of Reserve Bank to exempt housing finance institution.

(1) The Reserve Bank, on being satisfied that it is necessary so to do, may declare by notification that all or any of the provisions of this Chapter shall not apply to a housing finance institution which is a company or a group of such housing finance institutions either generally or for such period as may be specified, subject to such conditions, limitations or restrictions as it may think fit to impose.

(2) Every notification made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.”

  1. Amendment of section 44.

In section 44 of the principal Act, in sub-section (1), for the words “National Housing Bank” at both the places where they occur, the words “National Housing Bank or the Reserve Bank, as the case may be,” shall be substituted.

  1. Amendment of section 46.

In section 46 of the principal Act, for the words “the National Housing Bank” wherever they occur, the words “the National Housing Bank or the Reserve Bank” shall be substituted.

  1. Amendment of section 49.

In section 49 of the principal Act,—

(a) in sub-section (2B), for the words “the National Housing Bank”, the words “the National Housing Bank or the Reserve Bank” shall be substituted;

(b) in sub-section (2C), for the words “any order made by the authorised officer”, the words “any order made by the National Company Law Tribunal” shall be substituted;

(c) in sub-section (3), in clause (aa), for the words “the National Housing Bank”, the words “the National Housing Bank or the Reserve Bank” shall be substituted.

  1. Amendment of section 51.

In section 51 of the principal Act, for the words “the National Housing Bank,” wherever they occur, the words “the National Housing Bank or the Reserve Bank” shall be substituted.

  1. Substitution of section 52A.

For section 52A of the principal Act, the following section shall be substituted, namely:—

“52A. Power of National Housing Bank and Reserve Bank to impose fine

(1) Notwithstanding anything contained in section 49, if the contravention or default of the nature referred to in the said section is committed by a housing finance institution which is a company, the National Housing Bank or the Reserve Bank, as the case may be, may impose on such company—

(a) a penalty not exceeding five thousand rupees; or

(b) where the contravention or default is under sub-section (2A) or clause (a) or clause (aa) of sub-section (3) of that section, a penalty not exceeding five lakh rupees or twice the amount involved in such contravention or default, where the amount is quantifiable, whichever is more; and where such contravention or default is a continuing one, further penalty which may extend to twenty-five thousand rupees for every day, after the first, during which the contravention or default continues.

(2) For the purpose of imposing penalty under sub-section (1), the National Housing Bank or the Reserve Bank, as the case may be, shall serve a notice on the housing finance institution which is a company requiring it to show cause why the amount specified in the notice should not be imposed as a penalty and a reasonable opportunity of being heard shall also be given to such housing finance institution.

(3) Any penalty imposed by the National Housing Bank or the Reserve Bank, as the case may be, under this section shall be payable within a period of thirty days from the date on which notice issued by the National Housing Bank or the Reserve Bank, as the case may be, demanding payment of the sum is served on the housing finance institution which is a company and, in the event of failure of such housing finance institution to pay the sum within such period, may be levied on a direction made by the principal civil court having jurisdiction in the area where the registered office or the head office of such housing finance institution is situated:

Provided that no such direction shall be made, except on an application made by an officer of the National Housing Bank or the Reserve Bank, as the case may be, authorised in this behalf, to the principal civil court.

(4) The court which makes a direction under sub-section (3), shall issue a certificate specifying the sum payable by the housing finance institution which is a company and every such certificate shall be enforceable in the same manner as if it were a decree made by the court in a civil suit.

(5) No complaint shall be filed against any housing finance institution which is a company in any court of law pertaining to any contravention or default in respect of which any penalty has been imposed by the National Housing Bank or the Reserve Bank, as the case may be, under this section.

(6) Where any complaint has been filed against a housing finance institution which is a company in a court in respect of contravention or default of the nature referred to in section 49, no proceedings for imposition of penalty against such housing finance institution shall be taken under this section.”.

 

PART VIII

AMENDMENTS TO THE PROHIBITION OF BENAMI PROPERTY

TRANSACTIONS ACT, 1988

  1. Amendment of section 23.

In the Prohibition of Benami Property Transactions Act, 1988 (hereafter in this Part referred to as the principal Act), in section 23, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of November, 2016, namely:––

“Explanation.––For the removal of doubts, it is hereby clarified that nothing contained in this section shall apply and shall be deemed to have ever applied where a notice under sub-section (1) of section 24 has been issued by the Initiating Officer.”.

  1. Amendment of section 24.

In section 24 of the principal Act, with effect from the 1st day of September, 2019,—

(a) in sub-section (3), for the words, brackets and figure “from the date of issue of notice under sub-section (1)”, the words, brackets and figure “from the last day of the month in which the notice under sub-section (1) is issued” shall be substituted;

(b) in sub-section (4), for the words, brackets and figure “from the date of issue of notice under sub-section (1)”, the words, brackets and figure “from the last day of the month in which the notice under sub-section (1) is issued” shall be substituted;

(c) the following Explanation shall be inserted, namely:-—

“Explanation.––For the purposes of this section, in computing the period of limitation, the period during which the proceeding is stayed by an order or injunction of any court shall be excluded:

Provided that where immediately after the exclusion of the aforesaid period, the period of limitation referred to in sub-section (4) available to the Initiating Officer for passing order of attachment is less than thirty days, such remaining period shall be deemed to be extended to thirty days:

Provided further that where immediately after the exclusion of the aforesaid period, the period of limitation referred to in sub-section (5) available to the Initiating Officer to refer the order of attachment to Adjudicating Authority is less than seven days, such remaining period shall be deemed to be extended to seven days.”.

  1. Amendment of section 26.

In section 26 of the principal Act, in sub-section (7), with effect from the 1st day of September, 2019, the following Explanation shall be inserted, namely:-—

“Explanation.—For the purposes of this sub-section, in computing the period of limitation, the period during which the proceeding is stayed by an order or injunction of any court shall be excluded:

Provided that where immediately after the exclusion of the aforesaid period, the period of limitation available to the Adjudicating Authority for passing order is less than sixty days, such remaining period shall be deemed to be extended to sixty days.”.

  1. Insertion of new sections 54A and 54B.

In the principal Act, after section 54, the following sections shall be inserted with effect from the 1st day of September, 2019, namely:—

“54A. Penalty for failure to comply with notices or furnish information.

(1) Any person who fails to,––

(i) comply with summons issued under sub-section (1) of section 19; or

(ii) furnish information as required under section 21, shall be liable to pay penalty of twenty-five thousand rupees for each such failure.

(2) The penalty under sub-section (1) shall be imposed by the authority who had issued the summons or called for the information.

(3) No order under sub-section (2) shall be passed by the authority unless the person on whom the penalty is to be imposed has been given an opportunity of being heard:

Provided that no penalty shall be imposed if, such person proves that there were good and sufficient reasons which prevented him from complying with the summons or furnishing information.

54B. Proof of entries in records or documents

The entries in the records or other documents in the custody of an authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under section 3 or this Chapter, as the case may be, and all such entries may be proved either by––

(i) the production of the records or other documents in the custody of the authority containing such entries; or

(ii) the production of a copy of the entries certified by the authority having custody of the records or other documents under its signature stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.”.

  1. Amendment of section 55.

In section 55 of the principal Act, with effect from the 1st day of September, 2019,—

(i) for the word “Board”, the words “competent authority” shall be substituted;

(ii) the following Explanation shall be inserted, namely:––

‘Explanation.––For the purposes of this section, “competent authority” means a Commissioner, a Director, a Principal Commissioner of Income-tax or a Principal Director of Income-tax as defined in clause (16), clause (21), clause (34B) and clause (34C), respectively, of section 2 of the Income-tax Act, 1961.’.

 

PART IX

AMENDMENTS TO THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

  1. Commencement of this Part.

The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

  1. Amendment of section 14

In the Securities and Exchange Board of India Act, 1992 (hereafter in this Part referred to as the principal Act), in section 14,—

(i) in sub-section (2), after clause (c), the following clause shall be inserted, namely:-

"(d) the capital expenditure, as per annual capital expenditure plan approved by the Board and the Central Government.";

(ii) after sub-section (2), the following sub-sections shall be inserted, namely:—

"(3) The Board shall constitute a Reserve Fund and twenty-five per cent. of the annual surplus of the General Fund in any year shall be credited to such Reserve Fund and such fund shall not exceed the total of annual expenditure of preceding two financial years.

(4) After incurring all the expenses referred to in sub-section (2) and transfer to Reserve Fund as specified in sub-section (3), the surplus of the General Fund shall be transferred to the Consolidated Fund of India.".

  1. Amendment of section 15C.

In section 15C of the principal Act, after the words "after having been called upon by the Board in writing", the words "including by any means of electronic communication" shall be inserted.

  1. Amendment of section 15F.

In section 15F of the principal Act, in sub-clause (a), after the words "one lakh rupees but which may extend to", the words "one crore rupees" shall be inserted.

  1. Insertion of new section 15HAA. 

After section 15HA of the principal Act, the following section shall be inserted, namely:-

‘15HAA. Penalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board.

Any person, who—

(a) knowingly alters, destroys, mutilates, conceals, falsifies, or makes a false entry in any information, record, document (including electronic records), which is required under this Act or any rules or regulations made thereunder, so as to impede, obstruct, or influence the investigation, inquiry, audit, inspection or proper administration of any matter within the jurisdiction of the Board.

Explanation.— For the purposes of this clause, a person shall be deemed to have altered, concealed or destroyed such information, record or document, in case he knowingly fails to immediately report the matter to the Board or fails to preserve the same till such information continues to be relevant to any investigation, inquiry, audit, inspection or proceeding, which may be initiated by the Board and conclusion thereof;

(b) without being authorised to do so, access or tries to access, or denies of access or modifies access parameters, to the regulatory data in the database;

(c) without being authorised to do so, downloads, extracts, copies, or reproduces in any form the regulatory data maintained in the system database;

(d) knowingly introduces any computer virus or other computer contaminant into the system database and brings out a trading halt;

(e) without authorisation disrupts the functioning of system database;

(f) knowingly damages, destroys, deletes, alters, diminishes in value or utility, or affects by any means, the regulatory data in the system database; or

(g) knowingly provides any assistance to or causes any other person to do any of the acts specified in clauses (a) to (f), shall be liable to a penalty which shall not be less than one lakh rupees but which may extend to ten crore rupees or three times the amount of profits made out of such act, whichever is higher.

Explanation.—In this section, the expressions "computer contaminant", "computer virus" and "damage" shall have the meanings respectively assigned to them under section 43 of the Information Technology Act, 2000.

 

PART X

AMENDMENTS TO THE CENTRAL ROAD AND INFRASTRUCTURE

FUND ACT, 2000

  1. Amendment of section 10.

In the Central Road and Infrastructure Fund Act, 2000 (hereafter in this Part referred to as the principal Act), in section 10, in sub-section (1),––

(a) for clause (iv), the following clause shall be substituted, namely:––

“(iv) formulation of criteria for allocation of funds for development and maintenance of State road projects including the projects of inter-State and economic importance;”;

(b) clauses (v) and (vii) shall be omitted.

  1. Amendment of section 11.

In section 11 of the principal Act, for sub-section (1), the following sub-section shall be substituted, namely:––

“(1) The share of the Fund to be spent on development and maintenance of State roads, based on the criteria formulated under clause (iv) of sub-section (1) of section 10, shall be allocated in such manner as may be finalised by the Committee referred to in section 7A.”.

  1. Amendment of section 12.

In section 12 of the principal Act, in sub-section (2), clause (c) shall be omitted.

 

PART XI

AMENDMENT TO THE FINANCE ACT, 2002

  1. Amendment of Act 20 of 2002

In the Finance Act, 2002, in the Eighth Schedule,––

(a) against Item No. 1, for the entry in column (3), the entry “Rs.10 per litre” shall be substituted;

(b) against Item No. 2, for the entry in column (3), the entry “Rs.4 per litre” shall be substituted.

 

PART XII

AMENDMENT TO THE UNIT TRUST OF INDIA (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 2002

  1. Amendment of Act 58 of 2002.

In the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, in section 13, in subsection (1), for the words, figures and letters “the 31st day of March, 2019”, the words, figures and letters “the 31st day of March, 2021” shall be substituted and shall be deemed to have been substituted
with effect from the 1st day of April, 2019.

 

PART XIII

AMENDMENTS TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

  1. Amendment of section 2.

In the Prevention of Money-laundering Act, 2002 (hereafter in this Part referred to as the principal Act), in section 2, in sub-section (1),––

(i) in clause (n), in sub-clause (i), the word “sub-broker,” shall be omitted;

(ii) in clause (sa), for sub-clause (ii), the following sub-clause shall be substituted, namely:––

"(ii) Inspector-General of Registration appointed under section 3 of the Registration Act, 1908 as may be notified by the Central Government;".

  1. Amendment of section 12A

In section 12A of the principal Act, in sub-section (1), for the words, brackets and figures “sub-section (1) of section 12”, the words, figures, letters and brackets “section 11A, sub-section (1) of section 12, sub-section (1) of section 12AA” shall be substituted.

  1. Insertion of new section 12AA.

After section 12A of the principal Act, the following section shall be inserted, namely:––

‘12AA. Enhanced due diligence.

(1) Every reporting entity shall, prior to the commencement of each specified transaction,—

(a) authenticate the identity of the clients undertaking such specified transaction in such manner and subject to such conditions as may be prescribed;

(b) take additional steps to examine the ownership and financial position, including sources of funds of the client, in such manner as may be prescribed;

(c) take additional steps as may be prescribed to record the purpose behind conducting the specified transaction and the intended nature of the relationship between the transaction parties.

(2) Where the client fails to fulfil the conditions laid down under sub-section (1), the reporting entity shall not allow the specified transaction to be carried out.

(3) Where any specified transaction or series of specified transactions undertaken by a client is considered suspicious or likely to involve proceeds of crime, the reporting entity shall increase the future monitoring of the business relationship with the client, including greater scrutiny or transactions in such manner as may be prescribed.

Explanation.––For the purpose of this section, “authentication” means the process as defined under sub-section (c) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

(4) The information obtained while applying the enhanced due diligence measures under subsection (1) shall be maintained for a period of five years from the date of transaction between a client and the reporting entity.’.

  1. Amendment of section 15.

In section 15 of the principal Act, for the words, brackets and figures “sub-section (1) of section 12”, the words, figures, letters and brackets “section 11A, sub-section (1) of section 12 and subsection (1) of section 12AA” shall be substituted.

  1. Insertion of new section 72A.

After section 72 of the principal Act, the following section shall be inserted, namely:–

“72A. Interministerial Co-ordination Committee.

The Central Government may by notification constitute an Inter-ministerial Co-ordination Committee for inter-departmental and inter-agency co-ordination for the following purposes, namely:—

(a) operational co-operation between the Government, law enforcement agencies, the Financial Intelligence Unit, India and the regulators or supervisors;

(b) policy co-operation and co-ordination across all relevant or competent authorities;

(c) such consultation among the concerned authorities, the financial sector and other sectors, as are appropriate, and are related to anti money-laundering or countering the financing of terrorism laws, regulations and guidelines;

(d) development and implementing policies on anti money-laundering or countering the financing of terrorism; and

(e) any other matter as the Central Government may, by notification, specify in this behalf.”.

  1. Amendment of section 73.

In section 73 of the principal Act, in sub-section (2), after clause (jj), the following clauses shall be inserted, namely:––

“(jja) the manner and the conditions in which authentication of the identity of clients shall be verified by the reporting entities under clause (a) of sub-section (1) of section 12AA;

(jjb) the manner of identifying the ownership and financial position of the client under clause (b) of sub-section (1) of section 12AA;

(jjc) additional steps to record the purpose behind conducting the specified transaction and the intended nature of the relationship between the transaction parties under clause (c) of sub-section (1) of section 12AA;

(jjd) manner of increasing the future monitoring under sub-section (3) of section 12AA.".

 

PART XIV

AMENDMENT TO THE FINANCE (NO. 2) ACT, 2004

  1. Amendment of Act 23 of 2004.

In section 99 of the Finance (No. 2) Act, 2004, with effect from the 1st day of September, 2019,––

(I) in clause (a), in sub-clause (ii), for the words “settlement price”, the words “intrinsic value” shall be substituted;

(II) after the proviso, the following Explanation shall be inserted, namely:––

‘Explanation.–– For the purposes of this section, the expression “intrinsic value” means the difference between the settlement price and the strike price.’.

 

PART XV

AMENDMENT TO THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007

  1. Amendment of Act 51 of 2007.

In the Payment and Settlement Systems Act, 2007, after section 10, the following section shall be inserted with effect from the 1st day of November, 2019, namely:––

“10A. Bank, etc., not to impose charge for using electronic modes of payment

Notwithstanding anything contained in this Act, no bank or system provider shall impose any charge upon anyone, either directly or indirectly, for using the electronic modes of payment prescribed under section 269SU of the Income-tax Act, 1961.”.

 

PART XVI

AMENDMENTS TO THE BLACK MONEY (UNDISCLOSED FOREIGN

INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015

  1. Amendment of section 2.

In the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (hereafter in this Part referred to as the principal Act), in section 2, for clause (2), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2015, namely:––

‘(2) “assessee” means a person,––

(a) being a resident in India within the meaning of section 6 of the Income-tax Act, 1961 in the previous year; or

(b) being a non-resident or not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act 1961 in the previous year, who was resident in India either in the previous year to which the income referred to in section 4 relates; or in the previous year in which the undisclosed asset located outside India was acquired:

Provided that the previous year, in case of acquisition of undisclosed asset outside India, shall be determined without giving effect to the provisions of clause (c) of section 72;’.

  1. Amendment of section 10.

In section 10 of the principal Act,––

(i) in sub-section (3), after the word “assess”, the words “or reassess” shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2015;

(ii) in sub-section (4), after the word “assessment”, the words “ or reassessment” shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2015.

  1. Amendment of section 17

In the principal Act, in section 17, in sub-section (1), in clause (b), for the words “such order”, the words “or vary such order either to enhance or reduce the penalty” shall be substituted with effect from the 1st day of September, 2019.

  1. Amendment of section 84.

In the principal Act, in section 84, for the figures “138”, the figures and letter “138, 144A” shall be substituted with effect from the 1st day of September, 2019.

 

PART XVII

AMENDMENTS TO THE FINANCE ACT, 2016

  1. Amendment of section 187.

In the Finance Act, 2016 (hereafter in this Part referred to as the principal Act), in section 187, in sub-section (1), the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:––

“Provided that where the amount of tax, surcharge and penalty, has not been paid within the due date notified under this sub-section, the Central Government may, by notification in the Official Gazette, specify the class of persons, who may, make the payment of such amount on or before such date as may be notified by the Central Government, along with the interest on such amount, at the rate of one per cent. for every month or part of a month comprised in the period commencing on the date immediately following the due date and ending on the date of such payment.”.

  1. Amendment of section 191.

In section 191 of the principal Act, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:––

“Provided that the Central Government may, by notification in the Official Gazette, specify the class of persons to whom the amount of tax, surcharge and penalty, paid in excess of the amount payable under this Scheme shall be refundable.”.

 

PART XVIII

AMENDMENT TO THE FINANCE ACT, 2018

  1. Amendment of Act 13 of 2018

In the Finance Act, 2018, in the Sixth Schedule, against Item Nos. 1 and 2, for the entry in column (3), the entry “Rs.10 per litre” shall be substituted.

  1. Repeal.

Section 2 of the Finance Act, 2019 is hereby repealed and shall be deemed never to have been enacted.

————————

Declaration under the Provisional Collection of Taxes Act, 1931

It is hereby declared that it is expedient in the public interest that the provisions of clauses (a) of section 87, sections 90, 185 and 201 of this Bill shall have immediate effect under the Provisional Collection of Taxes Act, 1931.

 

————————

THE FIRST SCHEDULE

(See section 2)

PART I

INCOME-TAX

Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies,—

Rates of income-tax

(1)

where the total income does not exceed Rs. 2,50,000

Nil;

(2)

where the total income exceeds Rs. 2,50,000 but does
not exceed Rs. 5,00,000

5 per cent. of the amount by which the total income exceeds
Rs. 2,50,000;

(3)

where the total income exceeds Rs. 5,00,000 but does
not exceed Rs. 10,00,000

Rs.12,500 plus 20 per cent. of the amount by which the total
income exceeds Rs. 5,00,000;

(4)

where the total income exceeds Rs. 10,00,000

Rs. 1,12,500 plus 30 per cent. of the amount by which the
total income exceeds Rs.10,00,000.

 

 

(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,—

Rates of income-tax

(1)

where the total income does not exceed Rs. 3,00,000

Nil;

(2)

where the total income exceeds Rs. 3,00,000 but does
not exceed Rs. 5,00,000

5 per cent. of the amount by which the total income exceeds
Rs. 3,00,000;

(3)

where the total income exceeds Rs. 5,00,000 but does
not exceed Rs. 10,00,000

Rs.10,000 plus 20 per cent. of the amount by which the total
income exceeds Rs. 5,00,000;

(4)

where the total income exceeds Rs. 10,00,000

Rs. 1,10,000 plus 30 per cent. of the amount by which the
total income exceeds Rs.10,00,000.


(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,—

 

Rates of income-tax

(1)

where the total income does not exceed Rs. 5,00,000

Nil;

(2)

where the total income exceeds Rs. 5,00,000 but does
not exceed Rs. 10,00,000

20 per cent. of the amount by which the total income exceeds
Rs. 5,00,000;

(3)

where the total income exceeds Rs. 10,00,000

Rs. 1,00,000 plus 30 per cent. of the amount by which the
total income exceeds Rs. 10,00,000.


Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—

(a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax; and

(b) having a total income exceeding one crore rupees, at the rate of fifteen per cent. of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding,—

(a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph B

In the case of every co-operative society,—

Rates of income-tax

(1)

where the total income does not exceed Rs.10,000

10 per cent. of the total income;

(2)

where the total income exceeds Rs.10,000 but does not
exceed Rs. 20,000

Rs.1,000 plus 20 per cent. of the amount by which the total
income exceeds Rs. 10,000;

(3)

where the total income exceeds Rs. 20,000

Rs. 3,000 plus 30 per cent. of the amount by which the total
income exceeds Rs. 20,000.


Surcharge on income-tax

 

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every co-operative society, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every co-operative society mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph C

In the case of every firm,—

Rate of income-tax

On the whole of the total income                                                     30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every firm mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph D

In the case of every local authority,—

Rate of income-tax

On the whole of the total income                                                     30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every local authority, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every local authority mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph E

In the case of a company,—

Rates of income-tax

  1. In the case of a domestic company,—

(i)

where its total turnover or the gross receipt in the
previous year 2016-2017 does not exceed two hundred
and fifty crore rupees;

25 per cent. of the total income;

(ii)

other than that referred to in item (i)

30 per cent. of the total income.

  1. In the case of a company other than a domestic company,—

(i) on so much of the total income as consists of,—

(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or

(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976,

and where such agreement has, in either case, been approved by the Central Government 50 per cent.;

(ii) on the balance, if any, of the total income 40 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, be increased by a surcharge for the purposes of the Union calculated,—

(i) in the case of every domestic company,––

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of seven per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such income-tax;

(ii) in the case of every company other than a domestic company,––

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:

Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

PART II

RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES

In every case in which under the provisions of sections 193, 194, 194A, 194B, 194BB, 194D, 194LBA, 194LBB, 194LBC and 195 of the Income-tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to the deduction at the following rates:– 

 

 

Rate of income-tax

1.

In the case of a person other than a company—

 

(a)

where the person is resident in India—

 

(i)

on income by way of interest other than “Interest on securities”

10 per cent.;

(ii)

on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

(iii)

on income by way of winnings from horse races

30 per cent.;

(iv)

on income by way of insurance commission

5 per cent.;

(v)

on income by way of interest payable on—

10 per cent.;

 

(A) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

 

 

(B) any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;

 

 

(C) any security of the Central or State Government;

 

(vi)

on any other income

10 per cent.;

(b)

where the person is not resident in India—

 

(i)

in the case of a non-resident Indian—

 

 

(A) on any investment income

20 per cent.;

 

(B) on income by way of long-term capital gains referred to in section 115E or sub-clause (iii) of clause (c) of sub-section (1) of section 112

10 per cent.;

 

(C) on income by way of long-term capital gains referred to in section 112A

10 per cent.;

 

(D) on other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33) and (36) of section 10] referred to in section 112A exceeding one lakh rupees

20 per cent.;

 

(E) on income by way of short-term capital gains referred to in section 111A

15 per cent.;

 

(F) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by
Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 194LB or section 194LC)

20 per cent.;

 

 (G) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section115A of the Income-tax Act, to a person resident in India

 10 per cent.;

 

(H) on income by way of royalty [not being royalty of the or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

 10 per cent.;

 

(I) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10 per cent.;

 

(J) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

 

(K) on income by way of winnings from horse races

30 per cent.;

 

(L) on the whole of the other income

30 per cent.;

(ii)

in the case of any other person—

 

 

(A) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section194LB or section 194LC)

20 per cent.;

 

(B) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India

10 per cent.;

 

(C) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(ii)(B)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10 per cent.;

 

(D) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10 per cent.;

 

(E) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

 

(F) on income by way of winnings from horse races

30 per cent.;

 

(G) on income by way of short-term capital gains referred to in section 111A

15 per cent.;

 

(H) on income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of section 112

10 per cent.;

 

(I) on income by way of long-term capital gains referred to in section 112A exceeding one lakh rupees

10 per cent.;

 

(J) on income by way of other long-term capital gains [not being long-term capital gains referred to in clauses (33) and (36) of section 10]

20 per cent.;

 

(K) on the whole of the other income

30 per cent.

  

  1. In the case of a company—  

(a)

where the company is a domestic company—

 

 

(i) on income by way of interest other than “Interest on securities”

10 per cent.;

 

(ii) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

 

(iii) on income by way of winnings from horse races

30 per cent.;

 

(iv) on any other income

10 per cent.;

(b)

where the company is not a domestic company—

 

 

(i) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

 

(ii) on income by way of winnings from horse races

30 per cent.;

 

(iii) on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 194LB or section 194LC)

20 per cent.;

 

(iv) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India

10 per cent.;

 

(v) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(iv)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

 

 

(A) where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976

50 per cent.;

 

(B) where the agreement is made after the 31st day of March, 1976

10 per cent.;

 

vi) on income by way of fees for technical services payable by the Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

 

 

(A) where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976

50 per cent.;

 

(B) where the agreement is made after the 31st day of March, 1976

10 per cent.;

 

(vii) on income by way of short-term capital gains referred to in section 111A

15 per cent.;

 

(viii) on income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of section 112

10 per cent.;

 

(ix) on income by way of long-term capital gains referred to in section 112A exceeding one lakh rupees

10 per cent.;

 

(x) on income by way of other long-term capital gains [not being long-term capital gains referred to in clauses (33) and (36) of section 10]

20 per cent.;

 

(xi) on any other income

40 per cent.


Explanation.—For the purposes of item 1(b)(i) of this Part, “investment income” and “non-resident Indian” shall have the respective meanings assigned to them in Chapter XII-A of the Income-tax Act.

Surcharge on income-tax

The amount of income-tax deducted in accordance with the provisions of––

(i) item 1 of this Part, shall be increased by a surcharge, for the purposes of the Union,––

(a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, being a non-resident, calculated,––

  1. at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds fifty lakh rupees but does not exceed one crore rupees;
  2. at the rate of fifteen per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed two crore rupees;

III. at the rate of twenty-five per cent. of such tax, where the income or the aggregate of such incomes paid orlikely to be paid and subject to the deduction exceeds two crore rupees but does not exceed five crore rupees; and

  1. at the rate of thirty-seven per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds five crore rupees;

(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve per cent., where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees;

(ii) Item 2 of this Part shall be increased by a surcharge, for the purposes of the Union, in the case of every company other than a domestic company, calculated,––

(a) at the rate of two per cent. of such income-tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees; and

(b) at the rate of five per cent. of such income-tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees.

 

PART III

RATES FOR CHARGING INCOME-TAX IN CERTAIN CASES, DEDUCTING INCOME-TAX FROM INCOME CHARGEABLE

UNDER THE HEAD “SALARIES” AND COMPUTING “ADVANCE TAX”

In cases in which income-tax has to be charged under sub-section (4) of section 172 of the Income-tax Act or sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the said Act or deducted from, or paid on, from income chargeable under the head “Salaries” under section 192 of the said Act or in which the “advance tax” payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, “advance tax” [not being “advance tax” in respect of any income chargeable to tax under Chapter XII or Chapter XII-A or income chargeable to tax under section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act at the rates as specified in that Chapter or section or surcharge, wherever applicable, on such “advance tax” in respect of any income chargeable to tax under section 115A or section 115AB or section 115AC or section 115ACA or section 115AD or section 115B or section 115BA or section 115BB or section 115BBA or section 115BBC or section 115BBD or section 115BBDA or section 115BBE or section 115BBF or section 115BBG or section 115E or section 115JB or section 115JC] shall be charged, deducted or computed at the following rate or rates:—

Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies,—

Rates of income-tax  

(1) where the total income does not exceed Rs. 2,50,000

Nil;

(2) where the total income exceeds Rs. 2,50,000 but does
not exceed Rs. 5,00,000

5 per cent. of the amount by which the total income exceeds
Rs. 2,50,000;

(3) where the total income exceeds Rs. 5,00,000 but does
not exceed Rs. 10,00,000

Rs. 12,500 plus 20 per cent. of the amount by which the
total income exceeds Rs. 5,00,000;

(4) where the total income exceeds Rs. 10,00,000

Rs. 1,12,500 plus 30 per cent. of the amount by which the
total income exceeds Rs.10,00,000.

 

 (II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,—

Rates of income-tax

(1) where the total income does not exceed Rs. 3,00,000

Nil;

(2) where the total income exceeds Rs. 3,00,000 but does
not exceed Rs. 5,00,000

5 per cent. of the amount by which the total income exceeds
Rs.3,00,000;

(3) where the total income exceeds Rs. 5,00,000 but does
not exceed Rs. 10,00,000

Rs. 10,000 plus 20 per cent. of the amount by which the
total income exceeds Rs. 5,00,000;

(4) where the total income exceeds Rs. 10 ,00,000

Rs. 1,10,000 plus 30 per cent. of the amount by which the
total income exceeds Rs. 10,00,000.

 

 (III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,—

 Rates of income-tax

  

(1) where the total income does not exceed Rs. 5,00,000

Nil;

(2) where the total income exceeds Rs. 5,00,000 but does
not exceed Rs. 10,00,000

20 per cent. of the amount by which the total income exceeds
Rs. 5,00,000;

(3) where the total income exceeds Rs.10,00,000

Rs. 1,00,000 plus 30 per cent. of the amount by which the
total income exceeds Rs. 10,00,000.

 

 Surcharge on income-tax

 The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—

(a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax;

(b) having a total income exceeding one crore rupees but not exceeding two crore rupees, at the rate of fifteen per cent. of such income-tax;

(c) having a total income exceeding two crore rupees but not exceeding five crore rupees, at the rate of twenty-five per cent. of such income-tax; and

(d) having a total income exceeding five crore rupees, at the rate of thirty-seven per cent. of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding,—

(a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees but does not exceed two crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees;

(c) two crore rupees but does not exceed five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of two crore rupees by more than the amount of income that exceeds two crore rupees;

(d) five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of five crore rupees by more than the amount of income that exceeds five crore rupees.

  Paragraph B

In the case of every co-operative society,—

 Rates of income-tax

  

(1) where the total income does not exceed Rs.10,000

10 per cent. of the total income;

(2) where the total income exceeds Rs.10,000 but does not
exceed Rs. 20,000

Rs. 1,000 plus 20 per cent. of the amount by which the total
income exceeds Rs. 10,000;

(3) where the total income exceeds Rs. 20,000

Rs. 3,000 plus 30 per cent. of the amount by which the total
income exceeds Rs. 20,000.

Surcharge on income-tax

 The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every co-operative society, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every co-operative society mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph C

In the case of every firm,—

Rate of income-tax

On the whole of the total income                                               30 per cent.

Surcharge on income-tax

 

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every firm mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph D

In the case of every local authority,—

Rate of income-tax

On the whole of the total income                                                 30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every local authority, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every local authority mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

 

Paragraph E

In the case of a company,—

Rates of income-tax

  1. In the case of a domestic company,—

(i) where its total turnover or the gross receipt in the previous year 2017-2018 does not exceed four hundred crore rupees;

25 per cent. of the total income;

(ii) other than that referred to in item (i)

30 per cent. of the total income.

  1. In the case of a company other than a domestic company,—

(a) royalties received from the Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or

(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the 50 per cent.; Central Government

(ii) on the balance, if any, of the total income 40 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated,––

(i) in the case of every domestic company,––

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of seven per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such income-tax;

(ii) in the case of every company other than a domestic company,––

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:

Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

PART IV
[See section 2 (13)(c)]
RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME

Rule 1.—Agricultural income of the nature referred to in sub-clause (a) of clause (1A) of section 2 of the Income-tax Act shall be computed as if it were income chargeable to income-tax under that Act under the head “Income from other sources” and the provisions of sections 57 to 59 of that Act shall, so far as may be, apply accordingly:

Provided that sub-section (2) of section 58 shall apply subject to the modification that the reference to section 40A shall be construed as not including a reference to sub-sections (3), (3A) and (4) of section 40A.

Rule 2.—Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1A) of section 2 of the Income-tax Act [other than income derived from any building required as a dwelling-house by the receiver of the rent or revenue of the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that Act under the head “Profits and gains of business or profession” and the provisions of sections 30, 31, 32, 36, 37, 38, 40, 40A [other than sub-sections (3), (3A) and (4) thereof], 41, 43, 43A, 43B and 43C of the Income-tax Act shall, so far as may be, apply accordingly.

Rule 3.—Agricultural income of the nature referred to in sub-clause (c) of clause (1A) of section 2 of the Income-tax Act, being income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head “Income from house property” and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly.

Rule 4.—Notwithstanding anything contained in any other provisions of these rules, in a case—

(a) where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed in accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent. of such income shall be regarded as the agricultural income of the assessee;

(b) where the assessee derives income from sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe, re-milled crepe, smoked blanket crepe or flat bark crepe) or technically specified block rubbers manufactured or processed by him from rubber plants grown by him in India, such income shall be computed in accordance with rule 7A of the Income-tax Rules, 1962, and sixty-five per cent. of such income shall be regarded as the agricultural income of the assessee;

(c) where the assessee derives income from sale of coffee grown and manufactured by him in India, such income shall be computed in accordance with rule 7B of the Income-tax Rules, 1962, and sixty per cent. or seventy-five per cent., as the case may be, of such income shall be regarded as the agricultural income of the assessee.

Rule 5.—Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6.—Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income:

Provided that where the assessee is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 7.—Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.

Rule 8.—(1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 2019, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018, is a loss, then, for the purposes of sub-section (2) of section 2 of this Act,—

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2011, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2012, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2014, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2015, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2016, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2017 or the 1st day of April, 2018,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2018, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2019,

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2019, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 2020.

(3) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2).

(4) Notwithstanding anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in the First Schedule to the Finance Act, 2011 (8 of 2011) or the First Schedule to the Finance Act, 2012 (23 of 2012) or the First Schedule to the Finance Act, 2013 (17 of 2013) or the First Schedule to the Finance (No. 2) Act, 2014 (25 of 2014) or the First Schedule to the Finance Act, 2015 (20 of 2015) or the First Schedule to the Finance Act, 2016 (28 of 2016) or the First Schedule to the Finance Act, 2017 (7 of 2017) or the First Schedule to the Finance Act, 2018 (13 of 2018) shall be set off under sub-rule (1) or, as the case may be, sub-rule (2).

Rule 9.-Where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil. 

Rule 10.-The provisions of the Income-tax Act relating to procedure for assessment (including the provisions of section 288A relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income.

Rule 11.-For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.

THE SECOND SCHEDULE

[See section 82(1)]

 

Notification number and date 

Amendment

Period of effect of amendment               

(1)

(2)

(3)

G.S.R. 423 (E), dated the 1 st June, 2011 [46/2011- Customs, dated 

In the said notification, in the Table, against serial number 443, in column (2), for the figures “3823 11 90”, the figures “3823 11 00” shall be substituted.

31 March, 2017 to 14 September, 2017 th 

1 June, 2011] G.S.R. 499 (E), st dated the 1 st July, 2011 [53/2011- Customs, dated 

In the said notification, in the Table, against serial number 476, in column (2), for the figures “3823 11 90”, the figures “3823 11 00” shall be substituted. 

31 March, 2017 to 14 September, 2017 st th 

G.S.R. 185 (E), dated the 17 th March, 2012 [12/2012- Customs, dated 17 th March, 2012]

In the said notification, in the Table, against serial numbers 230 and 230A, in column (2), for the figures”3823 11 90", the figures “3823 11 00” shall be substituted. 

31 March, 2017 to 30 June, 2017 st th

 

THE THIRD SCHEDULE

[See section 83 (1)]

 

Notification number and date

Amendment

Period of effect of amendment

(1)

(2)

(3)

G.S.R. 785 (E), dated the 30th  June, 2017 [50/2017- Customs, dated 30th  June, 2017]

In the said notification, in the Table, against serial number 251 and 252, in column (2), for the figures “3823 11 90”, the figures “3823 11 00” shall be substituted.

1st July, 2017 to 14th  September, 2017

 

THE FOURTH SCHEDULE

[See section 87 (a)]

( ) In the First Schedule to the Customs Tariff Act,-

(1) in Chapter 39, for the entry in column (4) occurring against all the tariff items of heading 3918, the entry "15%" shall be substituted;

(2) in Chapter 68, for the entry in column (4) occurring against all the tariff items of heading 6813, the entry "15%" shall be substituted;

(3) in Chapter 69, for the entry in column (4) occurring against all the tariff items of headings 6905 and 6907, the entry "15%" shall be substituted;

10 (4) in Chapter 70, for the entry in column (4) occurring against all the tariff items of heading 7009, the entry "15%" shall be substituted;

(5) in Chapter 71,--

(i) for the entry in column (4) occurring against all the tariff items of headings 7106, 7108, 7110 and 7112, the entry "12.5%" shall be substituted;

(ii) for the entry in column (4) occurring against tariff items 7107 00 00, 7109 00 00 and 7111 00 00, the entry "12.5%" shall be substituted;

(6) in Chapter 83, --

(i) for the entry in column (4) occurring against tariff item 8301 20 00, the entry "15%" shall be substituted;

(ii) for the entry in column (4) occurring against all the tariff items of heading 8302, the entry "15%" shall be substituted;

(7) in Chapter 84,--

(i) for the entry in column (4) occurring against tariff item 8415 90 00, the entry "20%" shall be substituted;

(ii) for the entry in column (4) occurring against tariff items 8421 23 00, 8421 31 00, 8421 39 20 and 8421 39 90, the entry "10%" shall be substituted;

(8) in chapter 85, -

(i) for the entry in column (4) occurring against tariff items 8512 10 00, 8512 20 10, 8512 20 20, 8512 20 90, 8512
30 10, 8512 30 90 and 8512 40 00, the entry "15%" shall be substituted;

(ii) for the entry in column (4) occurring against tariff item 8512 90 00, the entry "10%" shall be substituted;

(iii) for the entry in column (4) occurring against tariff items 8518 21 00 and 8518 22 00, the entry "15%" shall be substituted;

(iv) for the entry in column (4) occurring against tariff item 8521 90 90, the entry "20%" shall be substituted;

(v) for the entry in column (4) occurring against tariff items 8525 80 10, 8525 80 20, 8525 80 30 and 8525 80 90, the entry "20%" shall be substituted;

(vi) for the entry in column (4) occurring against tariff items 8539 10 00, 8539 21 20 and 8539 29 40, the entry
"15%" shall be substituted;

(8) in Chapter 87, for the entry in column (4) occurring against all the tariff items of headings 8706 and 8707, the entry

"15%" shall be substituted;

(9) in Chapter 90, for the entry in column (4) occurring against tariff item 9001 10 00, the entry "15%" shall be substituted; (10) in Chapter 98, after Note 6, the following Note shall be inserted, namely :-

"7. Heading 9804 is to be taken not to apply to printed books.". 

THE FIFTH SCHEDULE 

[See section 87 (b)] 

In the First Schedule to the Customs Tariff Act,––

 

Tariff Item 

Description of goods 

Unit 

Rate of duty

Standard 

Preferential

1()

(2)

(3)

(4)

(5)


(1) in Chapter 1, for the entry in column (2) occurring against tariff item 0106 20 00, the following shall be substituted, namely:-

"- Reptiles (including snakes and turtles)";

(2) in Chapter 2,- 

(i) for the entry in column (2) occurring against heading 0201, the following shall be substituted, namely:-

"MEAT OF BOVINE ANIMALS, FRESH OR CHILLED";

(ii) for the entry in column (2) occurring against heading 0207, the following shall be substituted, namely:-

"MEAT AND EDIBLE OFFAL, OF 15 THE POULTRY OF HEADING 0105, FRESH, CHILLED OR FROZEN";

(3) in Chapter 3,-

(i) in heading 0303,-

(a) in the entry in column (2) occurring against tariff item 0303 14 00, for the words "Oncorhynchus clarkii", the words 20 "Oncorhynchus clarki" shall be substituted;

(b) in the entry in column (2) occurring after the entry against tariff item 0303 19 00, for the words and bracket "carp (Cyprinus carpio, Carassius carassius, Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti, Leptobarbus hoeveni, Megalobroma spp.", the words and brackets "carp (Cyprinus spp., Carassius spp., Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti, Leptobarbus hoeveni, Megalobrama spp.)" shall be substituted; 

(c) in the entry in column (2) occurring against tariff item 0303 25 00,-

(i) for the words "Cyprinus carpio, Carassius carassius", the words "Cyprinus spp., Carassius spp." shall be substituted;

(ii) for the word "Megalobroma", the word "Megalobrama" shall be substituted;

(d) in the entry in column (2) occurring against tariff item 0303 31 00, for the word "hippoglossidae", the word "hippoglossoides" 30 shall be substituted;

(e) in the entry in column (2) occurring after the entry against tariff item 0303 49 00, for the words and brackets "scads (Decapterusspp.)", the words and brackets "scads (Decapterus spp.)" shall be substituted;

(f) for tariff item 0303 59 00 and the entries relating thereto, the following shall be substituted, namely:-

 

“0303 59

Others:

 

0303 59 10

Indian mackerels (Rastrelliger spp.)

kg. 30%

0303 59 10

Other

kg. 30%

 

(ii) in heading 0304, in the entry in column (2) occurring against tariff items 0304 42 00 and 0304 82 00, for the words "Oncorhynchus clarkii", the words "Oncorhynchus clarki" shall be substituted;

(iii) in heading 0305,-

(a) in the entry in column (2) occurring against tariff item 0305 32 00, for the word "Uclichthyidae", the word "Euclichthyidae" shall be substituted;

(b) in the entry in column (2) occurring against tariff item 0305 43 00, for the words "Oncorhynchus clarkii", the words "Oncorhynchus clarki" shall be substituted; 

(iv) in heading 0306, after tariff item 0306 17 19 and the entries relating thereto, the following shall be inserted, namely:—

 

“0306 17 20

- - -  Vannamei shrimp (Litopenaeus vannamei)

kg.

30%

-

0306 17 30

- - -  Indian white shrimp (Fenneropenaeus indicus)

kg.

30%

-

0306 17 40

- - - Black tiger shrimp (Penaeus monodon)

kg.

30%

-

0306 17 50

- - - Flower shrimp (Penaeus semisulcatus)

kg.

30%

-”;

 

(v) in heading 0308,-

(a) in the entry in column (2), for the words "MOLLUSCS, LIVE, FRESH, CHILLED, DRIED, SALTED OR IN BRINE", the words "MOLLUSCS, LIVE, FRESH, CHILLED, FROZEN, DRIED, SALTED OR IN BRINE" shall be substituted;

(b) for tariff item 0308 90 00 and the entries relating thereto, the following shall be substituted, namely:-

“0308 90 00            

Other

kg

30%

 

(4) in Chapter 4, in heading 0406, —

(i)  for the entry in column (2) occurring against tariff item 0406 10 00, the following shall be substituted, namely:—

“- Fresh (unripened or uncured) cheese,

including whey cheese, and curd”;

(ii)  for the entry in column (2) occurring against tariff item 0406 30 00, the following shall be substituted, namely: —

“- Processed cheese, not grated or powdered”;

(5) in Chapter 5, in the entry in column (2) occurring against heading 0506, for the words “DEGELATINISED POWDER”, the words “DEGELATINISED; POWDER” shall be substituted;

(6) in Chapter 7,

(i) in Note 2, for the words “Majorana hartensis”, the words “Majorana hortensis” shall be substituted;

(ii) in the entry in column (2) occurring against heading 0705, for the word “LACTUCASATIVA”, the words “LACTUCA SATIVA” shall be substituted;

(iii) for tariff item 0709 93 00 and the entries relating thereto, the following shall be substituted, namely: —

 

“0709 93

- -

Pumpkins, squash and gourds (Cucurbita spp.):

 

0709 93 10

- - -

Pumpkins

kg.

30%

20%

0709 93 20

- - -

Squash

kg.

30%

20%

0709 93 30

- - -

Bitter gourd

kg.

30%

20%

0709 93 40

- - -

Bottle gourd

kg.

30%

20%

0709 93 50

- - -

Snake gourd

kg.

30%

20%

0709 93 60

- - -

Coccinia (Kundru)

kg.

30%

20%

0709 93 90

- - -

Other

kg.

30%

20%”;

(iv) for tariff item 0709 99 20 and the entries relating thereto, the following shall be substituted, namely:—

“0709 99 30

 

- - -

Okra/lady finger (Bhindi)

kg.

30%

20%”;

(v) for tariff item 0713 10 00 and the entries relating thereto, the following shall be substituted, namely:—

“0713 10

0713 10 10

 

-

- - -

Peas (Pisum sativum): Yellow peas

kg.

50%

40%

0713 10 20

- - -

Green peas

kg.

50%

40%

0713 10 90

- - -

Other

kg.

50%

40%”;

 

(7) in Chapter 8,—

(i) for tariff item 0804 50 20 and the entries relating thereto, the following shall be substituted, namely:—

 

 

 

“- - -

Mangoes, fresh:

 

0804 50 21

- - - -

Alphonso (Hapus)

kg.

30%

20%

0804 50 22

- - - -

Banganapalli

kg.

30%

20%

0804 50 23

- - - -

Chausa

kg.

30%

20%

45

0804 50 24

- - - -

Dasheri

kg.

30%

20%

 

0804 50 25

- - - -

Langda

kg.

30%

20%

 

0804 50 26

- - - -

Kesar

kg.

30%

20%

 

0804 50 27

- - - -

Totapuri

kg.

30%

20%

 

0804 50 28

- - - -

Mallika

kg.

30%

20%

 

(ii) for tariff item 0807 19 00 and the entries relating thereto, the following shall be substituted, namely:—

 

“0807 19

- -

Other:

 

0807 19 10

- - -

Musk melons

kg.

30%

20%

0807 19 90

- - -

Other

kg.

30%

20%”;

 

(iii) in the entry in column (2) occurring against heading 0809, for the words "PLUMS AND SOLES", the words "PLUMS      5 AND SLOES" shall be substituted;

(8) in Chapter 9, for the entry in column (2) occurring against sub-heading 0906 19, the following shall be substituted, namely:-

 

“- -

Other:”;

(9) in Chapter 10, for tariff item 1005 90 00 and the entries relating thereto, the following shall be substituted, namely:—    

 

“1005 90

 

-

 

Other:

 

 

 

 

 

- - -

Dent corn (Zea mays var. indenta):

 

 

 

 

1005 90 11

- - - -

Yellow

kg.

60%

-

 

1005 90 19

- - - -

Other

kg.

60%

-

 

1005 90 20

- - -

Flint corn (Zea mays var. indurata)

kg.

60%

-

15

1005 90 30

- - -

Pop corn (Zea mays var. everta)

kg.

60%

-

 

1005 90 90

- - -

Other

kg.

60%

-”;

 

(10) in Chapter 11, after tariff item 1102 90 10 and the entries relating thereto, the following shall be inserted, namely:—

 

 

“- - -

 

Rice flour:

 

 

 

 

1102 90 21

- - - -

Brown rice flour

kg.

30%

-

20

1102 90 22

- - - -

White rice flour

kg.

30%

-

 

1102 90 29

- - - -

Other

kg.

30%

-”;

 

 

(11) in Chapter 12, in the entry in column (2) occurring against heading 1212, for the words "Ci-chorium intybus sativum", the words "CICHORIUM INTYBUS SATIVUM" shall be substituted;

(12) in Chapter 15,-

(i) for the entry in column (2) occurring against tariff item 1512 19 30, the following shall be substituted, namely:-

"- - - Safflower oil, edible grade";

(ii) for the entry in column (2) occurring against tariff item 1512 19 40, the following shall be substituted, namely:-

"- - - Safflower oil, non-edible grade";

(13) in Chapter 21, in the entry in column (2) occurring against heading 2103, for the words "THEREFOR, MIXED", the 30 words "THEREFOR; MIXED" shall be substituted;

(14) in Chapter 22,-

(i) in Note 1, in clause (a), for the words "products falling thereunder", the words "products of this Chapter" shall be substituted;

(ii) in the entry in column (2) occurring against tariff item 2206 00 00, for the words "MIXTURES OF FERMENTED BEVERAGES AND NON-ALCOHOLIC BEVERAGES", the words "MIXTURES OF FERMENTED BEVERAGES AND MIXTURES OF FERMENTED BEVERAGES AND NON-ALCOHOLIC BEVERAGES" shall be substituted; (iii) in heading 2208,-

(a) tariff items 2208 20 12, 2208 20 92 and 2208 50 13 and the entries relating thereto shall be omitted;

(b) for tariff item 2208 60 93 and the entries relating thereto, the following shall be substituted, namely:- 

“2208 60 00           

Vodka

l

150%

-”:

(15) in Chapter 25, in Note 2, in clause (b), for the words "evaluated at", the words "evaluated as" shall be substituted; (16) in Chapter 26,-

(i) in Note 3, in clause (a), for the words "excluding slag, ash and residues", the words "excluding ash and residues" shall be substituted; 

(ii) in heading 2620,- 

(a) for the tariff item 2620 19 00 and the entries relating thereto, the following shall be substituted, namely: —

“2620 19          

- -

Other:

 

 

 

2620 19 10

- - -

Zinc dross

kg.

10%

-

2620 19 90

- - -

Other

kg.

10%

-”;

 (b) for the tariff item 2620 29 00 and the entries relating thereto, the following shall be substituted, namely:—

“2620 29       

- -

Other:

 

 

 

2620 29 10

- - -

Lead dross

kg.

5%

-

2620 29 90

- - -

Other

kg.

5%

-”;

(17) in Chapter 27,—
(i) for the Supplementary Note, the following Supplementary Note shall be substituted, namely:—
“Supplementary Note:
In this Chapter, reference to any standard of the Bureau of Indian standards refers to the last published version of that standard.
Illustration : IS 1459 refers to IS 1459: 2018 and not to IS 1459: 1974.”;
(ii) in the entry in column (2) occurring against heading 2707, for the words “COAL TAR SIMILAR PRODUCTS”, the
words “COAL TAR; SIMILAR PRODUCTS” shall be substituted;
(iii) in heading 2710,—
(a) for sub-heading 2710 12, tariff items 2710 12 11 to 2710 12 90, sub-heading 2710 19 and tariff items 2710 19 10 to 2710 20 00 and the entries relating thereto, the following shall be substituted, namely:—

“2710 12

- -

Light oils and preparations:

 

 

 

 

- - -

Naphtha:

 

 

 

2710 12 21

- - - -

Light naphtha

kg.

10%

-

2710 12 22

- - - -

Heavy naphtha

kg.

10%

-

2710 12 29

- - - -

Full range naphtha

kg.

10%

-

 

- - -

Solvent 60/80, solvent 50/120 and solvent  145/205 (petroleum hydrocarbon solvents) as specified under standard IS 1745:

 

 

 

2710 12 31

- - - -

Solvent 60/80

kg.

10%

-

2710 12 32

- - - -

Solvent 50/120

kg.

10%

-

2710 12 39

- - - -

Solvent 145/205

kg.

10%

-

 

- - -

Motor gasoline conforming to standard IS 2796, IS 17021 or IS 17076:

 

 

 

2710 12 41

- - - -

Motor gasoline conforming to standard IS 2796

kg.

10%

-

2710 12 42

- - - -

E 20 fuel conforming to standard IS 17021

kg.

10%

-

2710 12 49

- - - -

M15 fuel conforming to standard IS 17076

kg.

10%

-

2710 12 50

- - -

Aviation gasoline conforming to standard IS 1604

kg.

10%

-

2710 12 90

- - -

Other

kg.

10%

-

2710 19

- -

Other:

 

 

 

2710 19 20

- - -

Solvent 125/240 (petroleum hydrocarbon solvent) as specified under standard IS 1745

kg.

10%

-

 

- - -

Kerosene intermediate and oils obtained from kerosene intermediate:

 

 

 

2710 19 31

- - - -

Kerosene intermediate

kg.

10%

-

2710 19 32

- - - -

Kerosene conforming to standard IS 1459

kg.

10%

-

2710 19 39

- - - -

Aviation turbine fuels, kerosene type conforming to standard IS 1571

kg.

10%

-

 

- - -

Gas oil and oils obtained from gas oil:

 

 

 

2710 19 41

- - - -

Gas oil

kg.

10%

-

 

2710 19 42

- - - -

Vacuum gas oil

kg.

10%

-

2710 19 43

- - - -

Light diesel oil conforming to standard IS 15770

kg.

10%

-

2710 19 44

- - - -

Automotive diesel fuel, not containing biodiesel, conforming to standard IS 1460

kg.

10%

-

2710 19 49

- - - -

High flash high speed diesel fuel conforming to standard IS 16861

kg.

10%

-               5

 

- - -

Fuel oils conforming to standard IS 1593:

 

 

 

2710 19 51

- - - -

Grade LV

kg.

10%

-

2710 19 52

- - - -

Grade MV1

kg.

10%

-

2710 19 53

- - - -

Grade MV2

kg.

10%

-               10

2710 19 59

- - - -

Grade HV

kg.

10%

-

 

- - -

Fuels (Class F) or marine fuels conforming to standard IS 16731:

 

 

 

2710 19 61

- - - -

Distillate oil

kg.

10%

-

2710 19 69

- - - -

Residual oil

kg.

10%

-              15

 

- - -

Base oil and lubricating oil:

 

 

 

2710 19 71

- - - -

Base oil

kg.

10%

-

2710 19 72

- - - -

Engine oil (internal combustion engine crankcase oils) conforming to standard IS 13656

kg.

10%

-

2710 19 73

- - - -

Engine oil conforming to standard IS 14234

kg.

10%

-               20

2710 19 74

- - - -

Automotive gear oil conforming to standard IS 1118

kg.

10%

-

2710 19 75

- - - -

Industrial gear oil conforming to standard IS 8406

kg.

10%

-

2710 19 76

- - - -

General purpose machinery and spindle oils conforming to standard IS 493

kg.

10%

-

2710 19 77

- - - -

Turbine lubricating oil conforming to standard IS 1012

kg.

10%

-               25

2710 19 78

- - - -

Other lubricating oil, conforming to any other BIS standard

kg.

10%

-

2710 19 79

- - - -

Other lubricating oil, not conforming to any BIS standard

kg.

10%

-

 

- - -

Cutting oil, hydraulic oil, industrial white oil, jute batching oil, mineral oil for cosmetic industry, transformer oil:

 

 

 

2710 19 81

- - - -

Cutting oil conforming to standard IS 1115

kg.

10%

-

2710 19 82

- - - -

Cutting oil (neat) conforming to standard IS 3065

kg.

10%

-

2710 19 83

- - - -

Hydraulic oil conforming to standard IS 3098 or IS 11656

kg.

10%

-

2710 19 84

- - - -

Industrial white oil conforming to standard IS 1083

kg.

10%

-

2710 19 85

- - - -

Insulating oil for transformer and circuit-breaker transformer and circuit-breaker oils) conforming to standard IS 335 or IS 12463

kg.

10%

-

2710 19 86

- - - -

Mineral oil for cosmetic industry conforming to standard IS 7299

kg.

10%

-               40

2710 19 87

- - - -

Jute batching oil conforming to standard IS 1758

kg.

10%

-

2710 19 88

- - - -

Other cutting oil, hydraulic oil, industrial white oil, jute batching oil, mineral oil for cosmetic industry, transformer oil conforming to any other BIS standard

kg.

10%

-

 

2710 19 89

 

- - - -

Other cutting oil, hydraulic oil, industrial white oil, jute batching oil, mineral oil for cosmetic industry, transformer oil, not conforming to any BIS standard

 

kg.

 

10%

45

-

2710 19 90

- - -

Other

kg.

10%

-

2710 20

-

Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, containing biodiesel, other than waste oils:

 

 

50

 

 

2710 20 10 

- - - - - -

Automotive diesel fuel, containing biodiesel, conforming to standard IS 1460 

kg. kg.

10% 10%

- -

 2710 20 20

 

Diesel fuel blend (B6 to B20) conforming to standard IS 16531

 

 

 

2710 20 90

- - -

Other

kg.

10%

-”;

(b) for the entry in column (2) occurring against tariff item 2710 99 00, the following shall be substituted namely :—

 

“- -

 

Other” ;

 

 

 

(iv) in heading 2711, for tariff item 2711 19 00 and the entries relating thereto, the following shall be substituted, namely:—

 “2711 19

 

- -

 Other:

 

 

 

2711 19 10

- - -

LPG (for non-automotive purposes) conforming to

standard IS 4576

kg.

10%

-

2711 19 20

- - -

LPG (for automotive purposes) conforming to standard IS 14861

kg.

10%

-

2711 19 90

- - -

Other

kg.

10%

-”;

(v) in heading 2713, for tariff items 2713 11 00 and 2713 12 00 and the entries relating thereto, the following shall be substituted, namely:-

“2713 11

- -

Not calcined:

 

 

 

2713 11 10

- - -

Raw petroleum coke for anode making in aluminium industry conforming to standard IS 17049

kg.

10%

-

2713 11 90

- - -

Other

kg.

10%

-

2713 12

- -

Calcined:

 

 

 

2713 12 10

- - -

Calcined petroleum coke for anode making in aluminium industry conforming to standard IS 17049

kg.

10%

-

2713 12 90

- - -

Other

kg.

10%

-”;

 

(18) in Chapter 28,-

(i) in Note 3, in clause (e), for the words and figures "of heading 3813, ink removers", the words and figures "of heading 3813; ink removers" shall be substituted ;

(ii) for the entry in column (2) occurring against tariff item 2836 30 00, the following shall be substituted, namely:-

“-        Sodium hydrogencarbonate (sodium bicarbonate)”;

19) in Chapter 29,-

(i) in Note 5, in clause (C), in paragraph (1), for the words "compound; and", the word "compound;" shall be substituted;

(ii) in Note 7, for the words "thioaldehydes anhydrides", the words "thioaldehydes, anhydrides" shall be substituted;

(iii) after tariff item 2901 29 20 and the entries relating thereto, the following shall be inserted, namely:-

 

“2901 29 30

- - -

Dihydromyrcene

kg.

10%

2901 29 40

 

Tetradecene

kg.

10%

 

(iv) in heading 2902,-

(a) for tariff item 2902 19 00 and the entries relating thereto, the following shall be substituted, namely:- 

 

290219

Other

 

 

29021910

Cyclopropyl actetylene

kg

10%

29021910

Other

kg

10%


 (b) after tariff item 2902 90 50 and the entries relating thereto, the following shall be inserted, namely:— 

 

“2902 90 60

N-propyl benzene

kg.

10%

-”;

 

(v) in heading 2904, tariff item 2904 10 40 and the entries relating thereto, shall be omitted; 

(vi) in heading 2905,-

(a) after tariff item 2905 22 40 and the entries relating thereto, the following shall be inserted, namely:- 

 

“2905 22 50

Dihydromyrcenol

kg.

10%

-”;

(b) after tariff item 2905 39 10 and the entries relating thereto, the following shall be inserted, namely:—

“2905 39 20

Hexylene glycol

kg.

10%

-”;

(vii) in heading 2907, after tariff item 2907 29 10 and the entries relating thereto, the following shall be inserted, namely:—

50

“2907 29 20

Tris (p-hydroxy phenyl) ethane

kg.

10%

-

 

2907 29 30

Tertiary butyl hydroquinone

kg.

10%

-”;

 

(viii) in heading 2909,-

(a) for tariff item 2909 19 00 and the entries relating thereto, the following shall be substituted, namely:-

 

“2909 19

Other:

 

2909 19 10

Tertiary amyl methyl ether

kg.

10%

-

 

2909 19 20

Methyl tertiary butyl ether   (MTBE)

kg.

10%

-

5

2909 19 90

Other

kg.

10%

-”;

 

(b) for the entry in column (2) occurring against tariff item 2909 41 00, the following shall be substituted, namely:—

 

2,2’-oxydiethanol (diethylene glycol, digol)”;

(c) for tariff item 2909 49 00 and the entries relating thereto, the following shall be substituted, namely:—

“2909 49

Other:

 

 

 

10

2909 49 10

Phenoxy ethanol

kg.

10%

-

 

2909 49 20

1-(4-phenoxyphenoxy)propan-2-ol

kg.

10%

-

 

2909 49 30

Meta phenoxy benzyl alcohol (MPBA)

kg.

10%

-

 

2909 49 90

Other

kg.

10%

-”;

 

 

(d) after tariff item 2909 50 30 and the entries relating thereto, the following shall be inserted, namely:—

 

2909 50 50

4-methoxy phenol (mono methyl ether of hydroquinone)   

kg

10%

29095050

Butylated hydroxyanisole (BHA)

kg.

10%

 

(ix) in heading 2912, after tariff item 2912 29 20 and the entries relating thereto, the following shall be inserted, namely:—

 

2912 29 30

Hexyl cinnamic aldehyde

kg

10%

 

(x) in heading 2914,- 

 

(a) after tariff item 2914 29 22 and the entries relating thereto, the following shall be inserted, namely:—       

  

“2914 29 30

Pentyl-2-cyclopenten-1-one

kg.

10%

2914 29 40

Cyclohexane dione

kg.

10%

2914 29 50

7-acetyl, 1,2,3,4,5,6,7,8-octahydro,  1,1, 6,7-tetra methyl

kg.

10%

 

Naphthalene / 1-(2,3,8,8-tetramethyl-1,2,3,4,5,6,7,8-octahydronaphthalen-2-yl)  ethanone

 

 

(b) after tariff item 2914 79 20 and the entries relating thereto, the following shall be inserted, namely:—

“2914 79 30

Tri fluoro methyl acetophenone

kg.

10%

2914 79 40

Chloro-4-(4-chloro phenoxy) acetophenone

kg.

10%

2914 79 50             

Dichloroacetophenone 

kg.

10%

      

(xi) in heading 2915,-

(a) after tariff item 2915 39 60 and the entries relating thereto, the following shall be inserted, namely:- 

 

“2915 39 70

Ortho tertiary butyl cyclohexyl acetate

kg.

10%

2915 39 80

Para tertiary butyl cyclohexyl acetate

kg.

10%

(b) for tariff item 2915 39 90 and the entries relating thereto, the following shall be substituted, namely:—

 

Other: 

 

 

 

2915 39 91

Methyl cyclohexyl acetate

kg.

10%

2915 39 92

Ethylene glycol mono ethyl ether acetate

kg.

10%

2915 39 99

Other

kg.

10%

 

(c) for tariff items 2915 90 20 to 2915 90 90 and the entries relating thereto, the following shall be substituted, namely:- 

 

“2915 90 40

Pivaloyl chloride

kg.

10%

2915 90 50

N-valeryl chloride

kg.

10%

2915 90 60

N-octanoyl chloride

kg.

10%

2915 90 70

Neodecanoyl chloride

kg.

10%

 

Other:

 

 

2915 90 91

Hexoic acid (caproic acid)

kg.

10%

2915 90 92

Octoic acid (caprylic acid)

kg.

10%

2915 90 93

Tri fluoro acetic acid

kg.

10%

2915 90 94

2915 90 95

Ethyl difluoro acetate

Ethyl trifluoro acetate

kg.

kg.

10%

10%

2915 90 99

Other

kg.

10%

 

(xii) in heading 2916,-

(a) after tariff item 2916 19 60 and the entries relating thereto, the following shall be inserted, namely:-

 

“2916 19 70

Erucic acid

kg.

10%

(b) for tariff item 2916 20 00 and the entries relating thereto, the following shall be substituted, namely:—

“2916 20

Cyclanic, cyclenic or cycloterpenic monocarboxylic acids

,

 

2916 20 10

their anhydrides, halides, peroxides, peroxyacids and their derivatives: D. V. acid chloride/cypermethric acid chloride

kg.

10%

2916 20 90

Other

kg.

10%

(c) after tariff item 2916 39 50 and the entries relating thereto, the following shall be inserted, namely:—

“2916 39 60

Dichlorophenyl acetyl chloride

kg.

10%

 

(xiii) in heading 2917,-

(a) for tariff item 2917 13 00 and the entries relating thereto, the following shall be substituted, namely:-

 

“2917 13

- -

Azelaic acid, sebacic acid, their salts and esters:

 

2917 13 10

- - -

Sebacic Acid

kg.

10%

2917 13 90

- - -

Other

kg.

10%

 

(b) in the entry in column (2) occurring against tariff item 2917 20 00, for the word "polycaroxylic", the word "polycarboxylic" shall be substituted;

(xiv) in heading 2918,-

(a) for the entry in column (2) occurring against sub-heading 2918 19, the following shall be substituted, namely:—

 

“- -

Other:”;

all be inserted, namely:—

(b) after tariff item 2918 19 10 and the entries relating thereto, the following sh

“2918 19 20

Cholic acid

kg.

10%

-

2918 19 30

Ricinoleic acid

kg.

10%

-”;

(c) after tariff item 2918 23 30 and the entries relating thereto, the following shall be inserted, namely:—

 “2918 23 40

 Benzyl salicylate

 kg.

 10%

 -”;

(d) after tariff item 2918 30 40 and the entries relating thereto, the following shall be inserted, namely:—

“2918 30 50

Fluoro benzoyl butyric acid

kg.

10%

-”;

(e) for tariff item 2918 99 00 and the entries relating thereto, the following shall be substituted, namely:—

“2918 99

Other:

 

 

 

2918 99 10

Sodium phenoxy acetate

kg.

10%

-

2918 99 20

Methyl (E)-2-[2-(chloro methyl) phenyl]-3- methoxyacrylate

kg.

10%

-

2918 99 90

Other

kg.

10%

-”;

 

(xv) in heading 2920, for tariff item 2920 90 99 and the entries relating thereto, the following shall be substituted, namely:-

 

2920 90 00

Other

kg.

10%

-”;

 

(xvi) in heading 2921,--

(a) for tariff items 2921 42 15 to 2921 42 24 and the entries relating thereto, the following shall be substituted, namely:-

 

“2921 42 15

2 - 4 - 5 trichloroaniline

kg.

10%

-

2921 42 21

N-benzyl-N-ethylaniline, N,N-diethylaniline, N,N-dimethylaniline, meta nitroaniline, para nitroaniline: N-benzyl-N-ethylaniline

kg.

10%

-

2921 42 22

N,N-diethylaniline

kg.

10%

-

2921 42 23

N,N-dimethylaniline

kg.

10%

-

2921 42 24

N-ethyl aniline

kg.

10%

-”;

(b) for tariff items 2921 43 10 to 2921 43 20 and the entries relating thereto, the following shall be substituted, namely:—

“2921 43 10

N,N-diethyl toluidine

kg.

10%

-

2921 43 20

N,N-dimethyl toluidine

kg.

10%

-”;

 

(c) after tariff item 2921 49 10 and the entries relating thereto, the following shall be inserted, namely:- 

 

29214920

Para cumidine

kg.

10%

 

(d) after tariff item 2921 59 30 and the entries relating thereto, the following shall be inserted, namely:-

 

29214920

Para cumidine

kg.

10%

 

(d)  after tariff item 2921 59 30 and the entries relating thereto, the following shall be inserted, namely:—

 

2921 59 40            

Diaminostilbene 2,2-disulphonic acid (Dasda)                    

kg.

10%

 

(xvii) in heading 2922,-

(a) for the entry in column (2) occurring against sub-heading 2922 11, the following shall be substituted, namely:-

                     “- -           Monoethanolamine and its salts

(b) in the entry in column (2) occurring after the entry against tariff item 2922 29 26, after the words,  brackets and letter "Picramic acid (T-grade)", the words ", para cresidine ortho sulphonic acid" shall be inserted;

(c) after tariff item 2922 29 35 and the entries relating thereto, the following shall be inserted, namely:-

 

29222936            

Para cresidine ortho sulphonic acid

kg.                  

10%                 

-”;

 

(xix) in heading 2932, for tariff item 2932 99 00 and the entries relating thereto, the following shall be substituted,  namely:- 

 

“2932 99

- -

Other:

 

2932 99 10

- - -

Cineole

kg.

10%

-

2932 99 90

- - -

Other

kg.

10%

-”;

 

(xx) in heading 2933,—

(a) for tariff item 2933 19 90 and the entries relating thereto, the following shall be substituted, namely:—

 

 

Other:

 

 

 

29331991

Fluoro-3-(difluoromethyl)-1-methyl-1h-pyrazole-4- carbonyl fluoride

kg.

10%

 

2933 19 99

Other

kg.

10%

-”;

 

(b) tariff item 2933 39 17 and the entries relating thereto, shall be omitted;

(c) after tariff item 2933 69 10 and the entries relating thereto, the following shall be inserted, namely:-

 

“2933 69 20 

4-[4,6-bis(2,4-dimethylphenyl)-1,3,5- triazine-2-yl]-1,3-benzenediol

kg.

10% 

-

29339 30

Tris(2-hydroxyethyl)  isocyanurate

kg.

10%

-

2933 69 40

Ethylhexyltriazone

kg.

10%

-

2933 69 50

2,4,6-tri(2,4-dyhydroxyl-3-methylphenyl)-1,3,5-triazine

kg.

10%

-”;

(d) for tariff item 2933 79 00 and the entries relating thereto, the following shall be substituted, namely:—

“2933 79

Other lactams :

 

 

 

2933 79 10

N-methyl-2-pyrrolidone

kg.

10%

-

2933 79 20

N-ethyl-2-pyrrolidone

kg.

10%

-

2933 79 90

Other

kg.

10%

-”;

 

(e) in the entry in column (2) occurring against tariff item 2933 91 00, for the words, brackets and letters "flunitrzepam (INN), flurazepam (INN), halazaepam (INN)", the words, brackets and letters "flunitrazepam (INN), flurazepam (INN), halazepam (INN)" shall be substituted;  

(f) for tariff item 2933 99 00 and the entries relating thereto, the following shall be substituted, namely:- 

 

“2933 99

Other:

 

 

2933 99 10

Imidazo pyridine methyl amine

kg.

10%

2933 99 90

Other

kg.

10%


(xxi) in heading 2934,-

(a) in the entry in column (2) occurring against tariff item 2934 91 00, for the word "claxazolam", the word "cloxazolam" shall be substituted;

(b) for tariff item 2934 99 00 and the entries relating thereto, the following shall be substituted, namely:- 

 

“2934 99

Other:

 

 

 

2934 99 10

Chloro thiophene-2-carboxylic  acid

kg.

10%

-

2934 99 20

Morpholine

kg.

10%

-

2934 99 90

Other

kg.

10%

-”;

 

(xxii) in heading 2937, in the entry in column (2) occurring against tariff item 2937 21 00, for the words and brackets "prednisone, (dehydrocortisone)", the words and brackets "prednisone  (dehydrocortisone)" shall be substituted; 

(xxiii) in heading 2939,-

(a) for the entry in column (2) occurring against tariff item 2939 19 00, the following shall be substituted, namely:-

 

 

“- -

Other”;

 

 

 

 

(b) for tariff item 2939 79 00 and the entries relating thereto, the following shall be substituted, namely:—

“2939 79

- -

Other:

 

 

 

2939 79 10

- - -

Nicotine

kg.

10%

-

2939 79 90

- - -

Other

kg.

10%

-”;

 

(20) in Chapter 30,-

(i) in heading 3004, in the entry in column (2) occurring after the entry against tariff item 3004 20 99, for the words

"hormones and other products", the words "hormones or other products" shall be substituted;

(ii) in heading 3006, in the entry in column (2) occurring against sub-heading 3006 60, for the words "hormones, or other products" the words "hormones, on other products" shall be substituted;

(21) in Chapter 31, in Note 1, in clause (c), for the brackets, words, figures and letter "(other than optical elements weighing not less than 2.5 g. each, of heading 3824)", the brackets, words, figures and letter "(other than optical elements) weighing

not less than 2.5 g. each, of heading 3824" shall be substituted; (22) in Chapter 32,-

(i) in heading 3204, in the entry in column (2) occurring against sub-heading 3204 15, for the words "preparations thereon", the words "preparations based thereon" shall be substituted;

(ii) in the entry in column (2) occurring against heading 3207, for the words "CERAMIC ENAMELLING", the words

"CERAMIC, ENAMELLING" shall be substituted; (23) in Chapter 33,-

(i) in heading 3301, for the entry in column (2) occurring after the entry against tariff item 3301 30 10, the following shall be substituted;

                     "- - -                          Other:"

(ii) in the entry in column (2) occurring against heading 3307, for the words "INCLUDED, PREPARED", the words

"INCLUDED; PREPARED" shall be substituted;

(24) in Chapter 34, in heading 3402,-

(i) in the entry in column (2) occurring against heading 3402, for the brackets and words "(OTHER THAN SOAP), SURFACE-ACTIVE PREPARATIONS", the brackets and words "(OTHER THAN SOAP); SURFACE-ACTIVE PREPARATIONS" shall be substituted;

(ii) for the entry in column (2) occurring against sub-heading 3402 90, the following shall be substituted; "-    Other:"

(25) in Chapter 37, in the entry in column (2) occurring against heading 3703, for the words "TEXTILES SENSITISED", the words "TEXTILES, SENSITISED" shall be substituted;

(26) in Chapter 38,-

(i) in Sub-heading Note 3, for the brackets and words "(pchlorophenyl)ethane", the brackets and words "(p- chlorophenyl)ethane" shall be substituted;

(ii) Supplementary Notes shall be omitted;

(iii) in heading 3804,-

(a) in the entry in column (2), for the words "LYES FOR", the words "LYES FROM" shall be substituted;

(b) in the entry in column (2) occurring against sub-heading 3804 00, for the words "lyes for", the words "lyes from" shall be substituted;

(iv) in heading 3808,-

(a) for the entry in column (2) occurring against sub-heading 3808 92, the following shall be substituted, namely:—
                “- -                    Fungicides:”;
(b) in the entry in column (2) occurring against sub-heading 3808 93, for the words “plant-growth regulated”, the words “plantgrowth regulators” shall be substituted;
(v) in heading 3824,—
(a) after tariff item 3824 88 00 and the entries relating thereto, the following shall be inserted, namely:—

              “-                        Other:”;

(b) for sub-heading 3824 99 and tariff items 3824 99 11 to 3824 99 90 and the entries relating thereto, the following shall be substituted, namely:—

“3824 99 00

Other

kg.

10%

 

(27) in Chapter 39,—

(i) in heading 3901,-

(a) for tariff item 3901 10 10 and the entries relating thereto, the following shall be substituted, namely:-

 

“3901 10 10

Linear low density polyethylene (LLDPE), in which ethylene monomer unit contributes 95 % or more by weight of the total polymer content

kg.

10%

 

 

 

 

3901 10 20

Low density polyethylene (LDPE)

kg.

10%

(b) for tariff item 3901 40 00, sub-heading 3901 90 and tariff items 3901 90 10 to 3901 90 90 and the entries relating thereto, the following shall be substituted, namely:—

“3901 40

Ethylene-alpha-olefin copolymers, having a specific gravity of less than 0.94:

 

 

3901 40 10

Linear low density polyethylene (LLDPE), in which ethylene monomer unit contributes less than 95 % by weight of the total polymer content

kg.

10%

3901 40 90

Other

kg.

10%

3901 90 00

Other

kg.

10%

 

(ii) in heading 3904,-

(a) for tariff items 3904 40 00 to 3904 50 10 and the entries relating thereto, the following shall be substituted, namely:-

 

“3904 40 00

Other vinyl chloride copolymers

kg.

10%

 

3904 50

Vinylidene chloride polymers :

 

 

 

3904 50 10

Copolymer of vinylidene chloride with acrylonitrite, in the form of expansible beads of a diameter of 4 micrometers or more but not more than 20 micrometers

kg.

10%

-”;

(b) for tariff item 3904 90 00 and the entries relating thereto, the following shall be substituted, namely: 

“3904 90

Other:

 

 

 

3904 90 10

Chlorinated poly vinyl chloride (CPVC) resin

kg.

10%

-

3904 90 90

Other

kg.

10%

-”;

 

(iii) in heading 3906, for tariff items 3906 90 10 to 3906 90 30 and the entries relating thereto, the following shall be substituted, namely:-

 

“3906 90 40

Poly (acrylic acid)

kg.

10%

-

3906 90 50

Polyacrylonitrile (PAN)

kg.

10%

-

3906 90 60

Copolymers of acrylonitrile

kg.

10%

-

3906 90 70

Sodium polyacrylate

kg.

10%

-”;

 

(iv) in heading 3907,-  

(a) for tariff item 3907 61 00 and the entries relating thereto, the following shall be substituted, namely:- 

 

“3907 61

Having a viscosity number of 78 ml/g or higher:

 

 

 

3907 61 10

PET flake (chip)

kg.

10%

-

3907 61 90

Other primary form

kg.

10%

-”;

 

(b) for tariff items 3907 69 10 to 3907 69 90 and the entries relating thereto, the following shall be substituted, namely:-

 

“3907 69 30

PET flake (chip)

kg.

10%

-

3907 69 90

Other primary form

kg.

10%

-”;

 

(c) for sub-heading 3907 99 and tariff items 3907 99 10 to 3907 99 90 and the entries relating thereto, the following shall be substituted, namely:-

 

“3907 99 00

- -

Other

kg.

10%

-”;

 

(v)  in heading 3908, for tariff items 3908 10 10 to 3908 10 90, sub-heading 3908 90 and tariff items 3908 90 10 to 3908 90 90 and the entries relating thereto, the following shall be substituted, namely:- 

 

 

Polyamide -6 (Nylon-6):

 

 

 

39081011

Flake (chip)

kg.

10%

-               50

39081019

Other primary form

kg.

10%

-

 

Polyamide -11 (Nylon-11):

 

 

 

 

3908 10 21

Flake (chip)

kg.

10%

3908 10 29

Other primary form

kg.

10%

 

Polyamide -12 (Nylon-12):

 

 

3908 10 31

Flake (chip)

kg.

10%

3908 10 39

Other primary form

kg.

10%

 

Polyamide -6,6 (Nylon-6,6):

 

 

3908 10 41

Flake(chip)

kg.

10%

3908 10 49

Other primary form

kg.

10%

 

Polyamide -6,9 (Nylon-6,9):

 

 

3908 10 51

Flake (chip)

kg.

10%

3908 10 59

Other primary form

kg.

10%

 

Polyamide -6,10 (Nylon-6,10):

 

 

3908 10 61

Flake (chip)

kg.

10%

3908 10 69

Other primary form

kg.

10%

 

Polyamide -6,12 (Nylon-6,12):

 

 

3908 10 71

Flake (chip)

kg.

10%

3908 10 79

Other primary form

kg.

10%

3908 90 00

Other

kg.

10%

 

(vi) in heading 3911, in the entry in column (2) occurring against sub-heading 3911 10, for the words "Petroleum resins, coumarone-indene", the words "Petroleum resins, coumarone, indene" shall be substituted; 

(vii) in heading 3920, for sub-heading 3920 91 and tariff items 3920 91 11 to 3920 91 19 and the entries relating thereto, the following shall be substituted, namely:-

 

 

Of other plastics:

 

 

 

3920 91

Of poly (vinyl butyral):

 

 

 

3920 91 10

Rigid, plain

kg.

10%

-

3920 91 20

Flexible, plain

kg.

10%

-

3920 91 90

Other

kg.

10%

-”;

 

(28) in Chapter 40,-

(i) in Note 5, in clause (B), in paragraph (iii), for the word "vulcanised", the word "stabilisers" shall be substituted;

(ii) in heading 4010,-

(a) for the entry in column (2) occurring against sub-heading 4010 31, the following shall be substituted, namely:-

"- -Endless transmission belts of trapezoidal cross-section (V-belts), V-ribbed, of an outside circumference exceeding 60 cm but not exceeding 180 cm:";

(b) for the entry in column (2) occurring against sub-heading 4010 33, the following shall be substituted, namely:-

"- -Endless transmission belts of trapezoidal cross- section (V-belts), V-ribbed, of an outside circumference exceeding 180 cm but not exceeding 240 cm:";

(29) in Chapter 42, in Note 2, in clause (f), for the word "rigid-crops", the word "riding-crops" shall be substituted; (30) in Chapter 44,-

(i) in Note 1, in clause (m), for the word and figures "Section XVII", the word and figures "Section XVIII" shall be substituted;

(ii) in Supplementary Note 1, for the letters and figures "IS : 710-1976", the letters and figures "IS 710" shall be substituted;

(iii) in Supplementary Note 2, for the letters and figures "IS : 709-1974 and IS : 4859-1968", the letters and figures "IS 709 and IS 4859" shall be substituted

(iv) in heading 4402, for sub-heading 4402 10 and tariff item 4402 10 10 and the entries relating thereto, the following shall be substituted, namely:- 

44021000            

Of bamboo                                                                              

mt

5%

-”;

 

(31) in Chapter 46, in heading 4601, after tariff item 4601 29 00 and the entries relating thereto, the following shall be inserted, namely:-

                      “-     Other:”;

(32) in Chapter 48,—

(i) in heading 4818, in the entry in column (2) occurring against tariff item 4818 20 00, for the word "cleaning", the word "cleansing" shall be substituted;

(ii) in the entry in column (2) occurring against heading 4820, for the words "EXCISE BOOKS", the words "EXERCISE BOOKS" shall be substituted;

(33) in Chapter 53, in the entry in column (2) occurring against heading 5310, for the words "BASE FIBRES", the words "BAST FIBRES" shall be substituted;

(34) in Chapter 55,-

(i) in heading 5502,-

(a) for the entry in column (2) occurring against sub-heading 5502 10, the following shall be substituted, namely:-     

                "-    Of cellulose acetate:";

(b) for the entry in column (2) occurring  against sub-heading 5502 90, the following shall be substituted, namely:-

                 "-  Other:";

(ii) in heading 5504, for tariff item 5504 10 00 and the entries relating thereto, the following shall be substituted, namely:—

 

“550410  - 

Of viscose rayon:

 

 

 

5504 10 10

Obtained from wood other than bamboo

kg.

20%

-

5504 10 20

Obtained from bamboo

kg.

20%

-

5504 10 90

Other

kg.

20%

-”;

 

(35) in Chapter 56, in the entry in column (2) occurring against heading 5605, for the words "NOT GIMPED BEING TEXTILE YARN", the words "NOT GIMPED, BEING TEXTILE YARN" shall be substituted;

(36) in Chapter 57,-

(i) in heading 5701, for tariff item 5701 10 00, sub-heading 5701 90 and tariff items 5701 90 10 to 5701 90 20 and the entries relating thereto, the following shall be substituted, namely:-

 

“570110 

Of wool or fine animal hair: 

 

 

 

5701 10 10

Hand-made

m2

25%

-

5701 10 90

Other

m2

25% 

-

5701 90

Of other textile materials: 

 

 

 

 

Of cotton:

 

 

 

5701 90 11

Hand-made

m2

25% 

-

5701 90 19

Other

m2

25% 

-

5701 90 20

Of coir including geo textile

m2

25% 

-

 

Of silk:

 

 

 

5701 90 31

Hand-made

m2

25% 

-

5701 90 39

Other

m2

25% 

-”;

 

(ii) in heading 5702,-  

(a) for the entry in column (2) occurring after the entry against sub-heading 5702 50, the following shall be substituted, namely:-

"- - -    Of man-made textile materials:";

(b) for the entry in column (2) occurring after the entry against tariff item 5702 50 29, the following shall be substituted, namely:-

"- - -    Of other textile materials:";

(37) in Chapter 59, in heading 5907, for the entry in column (2) occurring after the entry against tariff item 5907 00 19, the following shall be substituted, namely:-

"- - -    Other:";

(38) in Chapter 60, after Sub-heading Note, the following Supplementary Note shall be inserted, namely:-    "Supplementary Note:

Tariff items 6001 91 00, 6001 92 00 and sub-heading 6001 99 includes cut-pile fabrics produced through shearing of loops during or after the production of fabric.";

(39) in Chapter 61,-

(i) in heading 6103, after tariff item 6103 10 90 and the entries relating thereto, the following shall be inserted, namely:-   

                     "-    Ensembles:"; 

(ii) in heading 6115, after tariff item 6115 30 00 and the entries relating thereto, the following shall be inserted, namely:-

                    "-    Other:";

(40) in Chapter 62,-

(i) in Note 3, in clause (b), for the words "corresponding of compatible size", the words "corresponding or compatible size" shall be substituted;

(ii) after Note 9, the following Supplementary Note shall be inserted, namely:-"Supplementary Note:

For the purpose of this Chapter, "Khadi" means,-

(a) the article of apparel or clothing accessories, made from any cloth woven on handlooms in India from cotton, silk or woollen yarn handspun in India or from a mixture of any two or all of such yarns; and

(b) produced by a person certified or recognised by the Khadi Village Industries Commission  established under section 4 of the Khadi and Village Industries Commission Act, 1956 (61 of 1956).";

(iii) in heading 6203,-

(a) for tariff items 6203 29 00 to 6203 31 00 and the entries relating thereto, the following shall be substituted,

 

“6203 29

Of other textile materials: Of silk:

 

6203 29 11

Khadi

25% or Rs. 145 per piece, whichever is higher

6203 29 19

Other

25% or Rs. 145 per piece, 

6203 29 90

Other Jackets and blazers:

25% or Rs. 145 per piece, whichever is higher

6203 31

Of wool or fine animal hair:

 

6203 31 10

Khadi

25% or Rs. 815 per piece, whichever is higher

6203 31 90

Other

25% or Rs. 815 per piece, whichever is higher

(b) for tariff item 6203 39 10 and the entries relating thereto, the following shall be substituted, namely:

 

Of silk:

 

6203 39 11

Khadi

25% or Rs. 755 per piece, whichever is higher

6203 39 19

Other

25% or Rs. 755 per piece, whichever is higher

(c) for tariff item 6203 42 00 and the entries relating thereto, the following shall be substituted, namely:

“6203 42

Of cotton:

 

62034210

 

Handloom

25% or Rs. 135 per piece, whichever is higher

62034290

Other

25% or Rs. 135 per piece, whichever is higher

 

(iv) in heading 6204,—
(a) for tariff item 6204 29 11 and the entries relating thereto, the following shall be substituted, namely:—

 

“6204 29 12

Khadi

 u

25%

-”;

 

(b) for tariff item 6204 31 00 and the entries relating thereto, the following shall be substituted, namely:—

 

“6204 31

Of wool or fine animal hair:

 

 

 

6204 31 10

Khadi

u

25% or Rs. 370 per piece, whichever is higher

-

6204 31 90

Other

u

25% or Rs. 370 per piece, whichever is higher

-”;

 

(c) for tariff item 6204 39 11 and the entries relating thereto, the following shall be substituted, namely:—

 

“6204 39 12

Khadi

 u

25% or Rs. 350 per piece, whichever is higher

-”;

 

(d) for the entry in column (2) occurring against tariff item 6204 42 20, the following shall be substituted, namely:-

                   “- - -  Handloom”;

 

(e) for tariff item 6204 62 00 and the entries relating thereto, the following shall be substituted, namely:—

  

“6204 62

Of cotton:

 

 

 

6204 62 10

Handloom

u

25% or Rs. 135 per piece, whichever is higher

-

6204 62 90

Other

u

25% or Rs. 135 per piece, whichever is higher

-”;

 

(v) in heading 6205,-
(a) for tariff item 6205 20 00 and the entries relating thereto, the following shall be substituted, namely: —

 

“620520

Of cotton:

 

 

 

62052010

Handloom

u

25% or Rs. 85 per piece, whichever is higher

-

62052090

Other

u

25% or Rs. 85 per piece, whichever is higher

-”;

 

(b) for tariff item 6205 90 10 and the entries relating thereto, the following shall be substituted, namely:—

 

     

Of silk:

 

 

 

62059011          

Khadi

u

25% or Rs. 95 per piece,- whichever is higher

-

62059019          

Other

u

25% or Rs. 95 per piece, whichever is higher

-”;

 

(vi) in heading 6206, for tariff item 6206 30 00 and the entries relating thereto, the following shall be substituted, namely:-

 

“6206 30

Of cotton:

 

 

 

6206 30 10

Handloom

u

25% or Rs. 95 per piece, whichever is higher

-

6206 30 90

Other

u

25% or Rs. 95 per piece, whichever is higher

-”;

 

(vii) in heading 6207, for tariff items 6207 19 90 to 6207 22 00 and the entries relating thereto, the following shall be substituted, namely:—

 

“6207 19 90

Other

u

25% or Rs.30 per piece, whichever is higher

-

 

Night shirts and pyjamas:

 

 

 

6207 21

Of cotton:

 

 

 

6207 21 10

Handloom

u

25%

-

6207 21 90

Other

u

25%

-

6207 22 00

Of man-made fibres

u

25%

-”;

(viii) in heading 6208, for tariff item 6208 21 00 and the entries relating thereto, the following shall be substituted, namely:—

“620821

Of cotton:

 

 

 

6208 21 10

Handloom

u

25%

-

6208 21 90

Other

u

25%

-”;

(ix) in heading 6209, for tariff item 6209 20 00 and the entries relating thereto, the following shall be substituted, namely:-

“6209 20

Of cotton:

 

 

 

62092010

Handloom

u

25%

-

62092090

Other

u

25%

-”;

 

(x) in heading 6211,-

(a) for tariff item 6211 39 00 and the entries relating thereto, the following shall be substituted, namely:-

 

“6211 39

Of other textile materials:

 

 

 

 

Of silk:

 

 

 

6211 39 11

Handloom

u

25%

-

6211 39 19

Other

u

25%

 

6211 39 90

Other

u

25% 

-”;

 

(b) after tariff item 6211 49 10 and the entries relating thereto, the following shall be inserted, namely:- 

 

 

Of silk:

 

 

 

6211 49 21

Khadi

u

25%

-

6211 49 29

Other

u

25% 

-”;

 

(xi) in heading 6214, for tariff items 6214 20 20 and 6214 20 30 and the entries relating thereto, the following shall be
substituted, namely:

 

 

Scarves:

 

 

 

6214 20 21

Khadi

u

25% or Rs. 180 per piece, whichever is higher

-

6214 20 29

Other

u

25% or Rs. 180 per piece, whichever is higher

-

 

Mufflers:

 

 

 

6214 20 31

Khadi

u

25% or Rs. 180 per piece, whichever is higher

-

6214 20 39

Other

u

25% or Rs. 180 per piece, whichever is higher

-”;

 

(xii) in heading 6215, for tariff item 6215 10 00 and the entries relating thereto, the following shall be substituted, namely

 

“6215 10

Of silk or silk waste:

 

 

 

6215 10 10

Khadi

u

25% or Rs. 55 per piece, whichever is higher

-

6215 10 90

Other

u

25% or Rs. 55 per piece, whichever is higher

-”;

 

(41) in Chapter 68,—

(i) in Note 1, in clause (b), for the words "paper coated with mica", the words "paper and paperboard coated with mica" shall be substituted;

(ii) in heading 6813, for sub-heading 6813 20, tariff items 6813 20 10 to 6813 89 00 and the entries relating thereto, the following shall be substituted, namely:-

 

681320                 

Containing asbestos

kg.

15%

68132010             

Brake lining and pads

kg.

15%

68132090

Asbestos friction materials

kg

15%

6813 81 00            

Brake linings and pads                                               

kg.        

15%

6813 89 00            

Other

kg.        

15%

 (42) in Chapter 70,—

(i) in Sub-heading Note, for the figures "7013 91", the figures "7013 91 00" shall be substituted;

(ii) in heading 7005, in the entry in column (2) occurring against sub-heading 7005 21, for the words and brackets "mass

(body tinted) opacified", the words and brackets "mass (body tinted), opacified" shall be substituted;

(iii) in the entry in column (2) occurring against heading 7018, for the words "JEWELLERY,  GLASS", the words "JEWELLERY; GLASS" shall be substituted;

(43) in Chapter 71,-

(i) in heading 7103, for sub-heading 7103 10 and tariff items 7103 10 11 to 7103 99 90 and the entries relating thereto, the following shall be substituted, namely:-

 

“7103 10

Unworked or simply sawn or roughly shaped: 

 

 

 

Precious or semi-precious stones of “Beryl” and “Chrysoberyl” mineralogical species:

 

 

7103 10 31

Emerald

kg.

10%

7103 10 32

Yellow/golden/pink/red/green beryl 

kg.

10%

7103 10 33

Chrysoberyl (including chrysoberyl cat’s eye)

kg.

10%

7103 10 34

Alexandrite (including alexandrite cat’s eye)

kg.

10%

7103 10 39

Other

kg.

10%

 

Precious or semi-precious stones of  “Corundum” and “Feldspar” mineralogical species:

 

 

7103 10 41

Ruby

kg.

10%

7103 10 42

Sapphire

kg.

10%

7103 10 43

Moonstone

kg.

10%

7103 10 49

Other

kg.

10%

 

Precious or semi-precious stones of  “Garnet” and “Lazurite” mineralogical species:

 

 

7103 10 51

Garnet

kg.

10%

7103 10 52

Lapis-lazuli

kg.

10%

7103 10 59

Other

kg.

10%

 

Precious or semi-precious stones of  “Prehnite” and “Quartz” mineralogical species:

 

 

7103 10 61

Prehnite

kg.

10%

7103 10 62

Agate

kg.

10%

7103 10 63

Aventurine

kg.

10%

 

7103 10 64

Chalcedony

kg.

10%

7103 10 69

Other

kg.

10%

 

Precious or semi-precious stones of “Tourmaline” and “Zoisite” mineralogical species:

 

 

7103 10 71

Tourmaline

kg.

10%

7103 10 72

Tanzanite

kg.

10%

7103 10 79

Other

kg.

10%

7103 10 90

Other

kg.

10%

 

Otherwise worked:

 

 

7103 91

Ruby, sapphire and emeralds:

 

 

7103 91 10

Ruby

c/k

10%

7103 91 20

Sapphire

c/k

10%

7103 91 30

Emeralds

c/k

10%

7103 99

Other:

 

 

 

Precious or semi-precious stones of “Beryl” and “Chrysoberyl” mineralogical species, other than “Emerald”:

 

 

7103 99 11

Yellow/golden/pink/red/green  beryl

c/k

10%

7103 99 12

Chrysoberyl (including chrysoberyl cat’s eye)

c/k

10%

7103 99 13

Alexandrite (including alexandrite cat’s eye)

c/k

10%

7103 99 19

Other

c/k

10%

 

Precious or semi-precious stones of “Corundum” and “Feldspar” mineralogical species, other than “Ruby” and “Sapphire”:

 

 

7103 99 21

Moonstone

c/k

10%

7103 99 29

Other

c/k

10%

 

Precious or semi-precious stones of “Garnet” and “Lazurite” mineralogical species:

 

 

7103 99 31

Garnet

c/k

10%

7103 99 32

Lapis-lazuli

c/k

10%

7103 99 39

Other

c/k

10%

 

Precious or semi-precious stones of “Prehnite” and “Quartz” mineralogical species:

 

 

7103 99 41

Prehnite

c/k

10%

7103 99 42

 Agate

c/k

10%

7103 99 43

Aventurine

c/k

10%

7103 99 44

Chalcedony

c/k

10%

7103 99 49

Other

c/k

10%

 

Precious or semi-precious stones of “Tourmaline” and “Zoisite” mineralogical species:

 

 

7103 99 51

Tourmaline

c/k

10%

7103 99 52

Tanzanite

c/k

10%

7103 99 59

Other

c/k

10%

7103 99 90

Other

c/k

10%

(ii) in heading 7104, for tariff item 7104 20 00 and the entries relating thereto, the following shall be substituted, namely:—

“7104 20

Other, unworked or simply sawn or roughly shaped

:

 

7104 20 10

Laboratory-created or laboratory grown or manmade or cultured or synthetic diamonds

kg.

10%

7104 20 90

Other

kg.

10%

 

(iii) in heading 7106,-

(a) for tariff item 7106 91 00 and the entries relating thereto, the following shall be substituted, namely:- 

 

“7106 91

Unwrought:

 

 

7106 91 10

Grains

kg.

12.5%

7106 91 90

Other

kg.

12.5%

 

(b) after tariff item 7106 92 10 and the entries relating thereto, the following shall be inserted, namely:-

 

“7106 92 20

Bar

kg.

12.5%

-”;

 

(44) in Chapter 72, in heading 7222, for the entry in column (2) occurring after the entry against tariff item 7222 20 19, the following shall be substituted, namely:-

                     “- - -    Other:”;

(45) in Chapter 73, in heading 7304,-

(i) for the entry in column (2) occurring against tariff item 7304 22 00, the following shall be substituted, namely:-

               "- -   Drill pipe of stainless steel";

(ii) for the entry in column (2) occurring against tariff item 7304 23 90, the following shall be substituted, namely:-

            "- - -    Other";

(iii) for the entry in column (2) occurring after the entry against tariff item 7304 49 00, the following shall be substituted, namely:- 

            "-    Other, of circular cross section, of alloy steel:";

(46) in Chapter 74, in heading 7404,-

(i) for tariff item 7404 00 21 and the entries relating thereto, the following shall be substituted, namely:-

 

“7404 00 21

Empty or discharged cartridges of all bores and sizes, including the following:clean fired 70/30 brass shells free of bullets, iron and any other foreign material covered by ISRI code word ‘Lake’;clean muffled (popped) 70/30 brass shells free of bullets, iron and any other foreign material covered by ISRI code word ‘Lamb’

kg.

5%

-”;

 

(ii) in the entry in column (2) occurring against tariff item 7404 00 22, the portion beginning with the words "manganese bronze solids" and ending with the words  "code word 'Lamb';" shall be omitted;

(iii) for tariff item 7404 00 23 and the entries relating thereto, the following shall be substituted, namely:-

 

“7404 00 24

Bronze scrap, including the following:manganese bronze solids covered ISRI code word ‘Parch’; High lead bronze solids and borings covered by ISRI code word ‘Elias’

kg

5%

7404 00 25

Copper nickel scrap, including the following: new cupro nickel clips and solids covered by ISRI code word ‘Dandy’; cupro nickel solids covered by ISRI code word ‘Daunt’; soldered  cupro-nickel solids covered by ISRI code word ‘Delta’; cupro nickel spinnings, turnings, borings covered by ISRI code word ‘Decoy’;

kg

5%

 

(47) in Chapter 75, in heading 7503, in the entry in column (2) occurring against tariff item 7503 00 10, the portion beginning with the words "new cupro nickel clips" and ending with the words "code word 'Depth';" shall be omitted;

(48) in Chapter 76, in heading 7602, in the entry in column (2) occurring against tariff item 7602 00 10,-

(i) the words and letters "Sweated aluminium covered by ISRI code word 'Throb';" shall be omitted;

(ii) the words and letters "Aluminium drosses, spatterns, spellings, skimmings and sweepings covered by ISRI code word 'Thirl';" shall be omitted;

(49) in Chapter 78, in heading 7802, in the entry in column (2) occurring against tariff item 7802 00 10,-

(i) the words and letters "lead covered copper cable covered by ISRI code word 'Relay';" shall be omitted;

(ii) the portion beginning with the words "Lead battery plates" and  ending with the words "code word 'Rents';" shall be omitted;

(50) in Chapter 79, in heading 7902, in the entry in column (2) occurring against tariff item 7902 00 10,-

(i) the words and letters "Zinc die cast slabs or pigs covered by ISRI code word 'Scull';" shall be omitted;

(ii) the portion beginning with the words "Hot dip galvanizers" and ending with the words "corrosion or 'oxidation';" shall be omitted; 

(51) in Chapter 85,-

(i) in heading 8517,--

(a) for tariff items 8517 12 10 and 8517 12 90 and entries relating thereto, the following shall be substituted, namely:— 

 

 

Telephones for cellular networks:

 

 

8517 12 11

Mobile phones, other than push button type

u

20%

8517 12 19

Mobile phones, push button type

u

20%

8517 12 90

Telephones for other wireless networks

u

20%

 

(b) tariff item 8517 69 30 and the entries relating thereto, shall be omitted;

(ii) in heading 8525, for sub-heading 8525 60 and tariff items 8525 60 11 to 8525 60 99 and the entries relating thereto, the following shall be substituted, namely:-

 

“8525 60 00

Transmission apparatus incorporating reception apparatus

u

Free

-”;

 

(iii) in heading 8527, for sub-heading 8527 99 and tariff items 8527 99 11 to 8527 99 90 and the entries relating thereto, the following shall be substituted, namely:—

 

“8527 99 00

Other

u

10%

 

(52) in Chapter 90, in heading 9018, for tariff items 9018 90 29 to 9018 90 33 and entries relating thereto, the following shall be substituted, namely:-

 

“9018 90 29

Other

u

10%

 

Artificial kidney (dialysis) apparatus, blood transfusion apparatus:

 

 

9018 90 31

Artificial kidney (dialysis) apparatus

u

10%

9018 90 32

Blood transfusion apparatus

u

10%

STATEMENT OF OBJECTS AND REASONS

The object of the Bill is to give effect to the financial proposals of the Central Government for the financial year 2019-20. The notes on clauses explain the various provisions contained in the Bill.

NIRMALA SITHARAMAN.

NEW DELHI;
The 26th June, 2019.

—————

PRESIDENT’S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA

[Copy of letter No.F.2(16)-B(D)/2019, dated the 26th June, 2019 from Smt. Nirmala Sitharaman, Minister of Finance, to the Secretary-General, Lok Sabha.]

The President, having been informed of the subject matter of the proposed Bill, recommends, under clauses (1) and (3) of article 117, read with clause (1) of article 274, of the Constitution of India, the introduction of the Finance (No.2) Bill, 2019 to the Lok Sabha and also recommends to the Lok Sabha the consideration of the Bill.

  1. The Bill will be introduced in the Lok Sabha immediately after the presentation of the Budget on the 5th July, 2019.

Notes on clauses

Income-tax

Clause 2, read with the First Schedule to the Bill, specifies the rates at which income-tax is to be levied on income chargeable to tax for the assessment year 2018-2019. Further, it lays down the rates at which tax is to be deducted at source during the financial year 2019-2020 from income other than “Salaries” subject to such deductions under the Income-tax Act; and the rates at which “advance tax” is to be paid, tax is to be deducted at source from, or paid on, income chargeable under the head “Salaries” and tax is to be calculated and charged in special cases for the financial year 2019-2020.

Rates of income-tax for the assessment year 2019-2020

Part I of the First Schedule to the Bill specifies the rates at which income is liable to tax for the assessment year 2019-2020. These rates are the same as those specified in Part III of the First Schedule to the Finance Act, 2018, for the purposes of deduction of tax at source from “Salaries”, computation of “advance tax” and charging of income-tax in special cases during the financial year 2018-2019.
Rates for deduction of tax at source during the financial year 2019-2020 from income other than “Salaries”

Part II of the First Schedule to the Bill specifies the rates at which income-tax is to be deducted at source during the financial year 2019-2020 from income other than “Salaries”. The rates are the same, as those specified in Part II of the First Schedule to the Finance Act, 2018 for the purposes of deduction of income tax at source during the financial year 2018-2019.

The amount of tax so deducted shall be increased by a surcharge in the case of—

(i) every non-resident being an individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Incometax Act,—

(a) at the rate of ten per cent. of such tax, where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds fifty lakh rupees but does not exceed one crore rupees;

(b) at the rate of fifteen per cent. of such tax, where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees but does not exceed two crore rupees;

(c) at the rate of twenty five per cent. of such tax, where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds two crore rupees but does not exceed five crore rupees;

(d) at the rate of thirty seven per cent. of such tax, where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds five crore rupees;

(ii) every non-resident being a co-operative society or firm or local authority at the rate of twelve per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees,

(iii) every company other than a domestic company at the rate of two per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds one crore rupees but does not exceed ten crore rupees;

(iv) every company other than a domestic company at the rate of five per cent. where the income or the aggregate of income paid or likely to be paid and subject to deduction exceeds ten crore rupees.

Rates for deduction of tax at source from “Salaries”, computation of “advance tax” and charging of income-tax in special cases during the financial year 2019-2020

Part III of the First Schedule to the Bill specifies the rates at which income-tax is to be deducted at source from, or paid on, income under the head “Salaries” and also the rates at which “advance tax” is to be paid and income-tax is to be calculated or charged in special cases for the financial year 2019-2020.

Paragraph A of this Part specifies the rates of income-tax as under:—

(i) in the case of every individual [other than those specifically mentioned in sub-paras (ii) and (iii)] or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies:—

Up to Rs. 2,50,000

Nil

Rs. 2,50,001 to Rs. 5,00,000

5 per cent.

Rs. 5,00,001 to Rs. 10,00,000

20 per cent.

Above Rs. 10,00,000

30 per cent.;


(ii) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than the age of eighty years at any time during the previous year:—

Up to Rs. 3,00,000

Nil

Rs. 3,00,001 to Rs. 5,00,000

5 per cent.

Rs. 5,00,001 to Rs. 10,00,000

20 per cent.

Above Rs. 10,00,000

30 per cent.;


(iii) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year:—

Up to Rs. 5,00,000

Nil

Rs. 5,00,001 to Rs. 10,00,000

20 per cent.

Above Rs. 10,00,000

30 per cent.;


The surcharge in cases of persons referred to in this paragraph, having total income above fifty lakh rupees but not above one crore rupees, shall be levied at the rate of ten per cent. In cases of persons referred to in this paragraph, having total income above one crore rupees but not above two crore rupees, surcharge shall be levied at the rate of fifteen per cent. In cases of persons referred to in this paragraph, having total income above two crore rupees but not above five crore rupees, surcharge shall be levied at the rate of twenty five per cent.. In cases of persons referred to in this paragraph, having total income above five crore rupees, surcharge shall be levied at the rate of thirty-seven per cent., Marginal relief will be provided.

Paragraph B of this Part specifies the rates of income-tax in the case of every co-operative society. In such cases, the rates of tax will continue to be the same as those specified for assessment year 2019-2020. The surcharge in cases of co-operative societies, having income above one crore rupees shall be levied at the rate of twelve per cent. Marginal relief will be provided.

Paragraph C of this Part specifies the rate of income-tax in the case of every firm. In such cases, the rate of tax will continue to be the same as that specified for assessment year 2019-2020. The surcharge in cases of firms, having income above one crore rupees shall be levied at the rate of twelve per cent. Marginal relief will be provided.

Paragraph D of this Part specifies the rate of income-tax in the case of every local authority. In such cases, the rate of tax will continue to be the same as that specified for the assessment year 2019-2020. The surcharge in cases of local authorities, having income above one crore rupees shall be levied at the rate of twelve per cent. Marginal relief will be provided.

Paragraph E of this Part specifies the rates of income-tax in the case of companies. In the case of domestic companies the rate of income-tax shall be twenty-five-per cent. of the total income where the total turnover or gross receipts of previous year 2017-2018 does not exceed four hundred crore rupees and in all other cases the rate of income-tax shall be thirty per cent. of the total income. In the case of companies other than domestic companies, the rate of tax will continue to be the same as that specified for assessment year 2019-2020.

Surcharge in the case of domestic companies having total income above one crore rupees but not above ten crore rupees shall be levied at the rate of seven per cent. In the case of domestic companies having total income above ten crore rupees, surcharge shall be levied at the rate of twelve per cent. In the case of companies other than domestic companies having income above one crore rupees but not above ten crore rupees surcharge shall be levied at the rate of two per cent. In the case of companies other than domestic companies having total income above ten crore rupees, surcharge shall be levied at the rate of five per cent. Marginal relief will be provided.

In all other cases (including sections 115-O, 115QA, 115R, 115TA, 115TD, etc.), the surcharge will be applicable at the rate of twelve per cent.

The existing “Education Cess” and “Secondary and Higher Education Cess” currently being levied in all cases covered under Part 1 of the First Schedule shall be substituted by a new cess by the name of “Health and Education Cess”: at the rate of four per cent. However, in financial year 2019-2020, in the cases covered under Part II and Part III of the First Schedule, the “Health and Education Cess” at the rate of four per cent. shall continue to be levied. In the cases covered under Part II of the First Schedule, there will be no levy of the “Health and Education Cess” on tax deducted or collected at source in the case of domestic company and any other person who is resident in India. The cess would apply on tax deducted at source in the case of salary payments. It would also be levied in the cases of persons not resident in India and companies other than domestic company.

Clause 3 of the Bill seeks to amend section 2 of the Income-tax Act relating to definitions.

Clause (19AA) of the said section provides for the definition of the expression demerger for the purpose of providing tax neutrality where the property and liabilities of the undertaking transferred pursuant to the demerger shall be recorded at book value.

It is proposed to amend the said clause so as to provide that the requirement of recording property and the liabilities at book value shall not be applicable in a case where the property and the liabilities of the undertakings received by a resulting company are recorded at a value different from the value appearing in the books of account of the demerged company immediately before the demerger in compliance to the Indian Accounting Standards specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 4 of the Bill seeks to amend section 9 of the Income-tax Act relating to income deemed to accrue or arise in India. Sub-section (1) of the said section provides for the incomes which shall be deemed to accrue or arise in India.

It is proposed to insert a new clause (viii) to said sub-section so as to provide that certain income, being any sum of money paid or any property situate in India transferred on or after the 5th day of July, 2019 by a person resident in India to a person outside India, shall be deemed to accrue or arise in India.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 5 of the Bill seeks to amend section 9A of the Incometax Act relating to certain activities not to constitute business connection in India.

Sub-section (3) of the said section provides for the conditions to be fulfilled for being an eligible investment fund.

Clause (j) of the said sub-section provides that the monthly average of the corpus of the fund shall not be less than one hundred crore rupees. The first proviso to said clause further provides that where the fund has been established or incorporated in the previous year, the corpus of fund shall not be less than one hundred crore rupees at the end of such previous year.

It is proposed to amend the said proviso so as to provide that where the fund has been established or incorporated in the previous year, the fund shall be required to fulfill the condition of maintaining the corpus of one hundred crore rupees within a period of six months from the last day of the month of its establishment or incorporation, or at the end of such previous year, whichever is later.

Further, clause (m) of said sub-section provides that the remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf is not less than the arm's length price of the said activity.

It is proposed to amend the said clause so as to provide that the remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf is not less than the amount calculated in such manner as may be prescribed instead of the arm's length price of the said activity.

These amendments will take effect retrospectively from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent assessment years.

Clause 6 of the Bill seeks to amend section 10 of the Incometax Act relating to incomes not included in total income.

It is proposed to insert a new clause (4C) in the said section so as to provide for exemption in respect of any income by way of interest payable to a non-resident, not being a company, or to a foreign company, by any Indian company or business trust in respect of monies borrowed from a source outside India by way of issue of rupee denominated bond as referred to in clause (ia) of sub-section (2) of section 194LC issued during the period commencing from the 17th September, 2018 and ending on 31st March, 2019.

This amendment will take effect retrospectively from 1st April, 2019 and will, accordingly, apply in relation to the assessment year 2019-2020 and subsequent assessment years.

Further, clause (12A) of the said section provides that any payment from the National Pension System Trust to an employee on closure of his account or on his opting out of the pension scheme referred to in section 80CCD, to the extent it does not exceed forty per cent. of the total amount payable to him at the time of such closure or his opting out of the scheme, shall be exempt from tax.

It is proposed to amend the said section so as to increase the said tax exempt amount from forty per cent. to sixty per cent.

It is proposed to insert sub-clause (ix) in the clause (15) so as to provide that any income by way of interest payable to a nonresident by a unit located in an International Financial Services Centre in respect of monies borrowed by it on or after 1st September, 2019 shall be exempted from tax.

It is further proposed to insert an Explanation to define the expressions "International Financial Services Centre" and "unit". These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause(34A) of the said section provides for exemption to any income arising to a shareholder on account of buy-back of shares not being listed on a recognised stock exchange by the company as referred to in section 115QA.

It is proposed to amend the said clause so as to provide the said exemption also to the income arising to a shareholder on account of buy-back of shares listed on a recognised stock exchange by the company as referred to in section 115QA.

This amendment will take effect from 5th July, 2019.

Clause 7 of the Bill seeks to amend section 12AA of the Incometax Act relating to procedure for registration.

Sub-clause (a) of sub-section (1) of the said section, inter alia, provides that while considering the application of a trust or institution, the Principal Commissioner or Commissioner may call for documents or information necessary in order to satisfy himself about the genuineness of its activities.

It is proposed to substitute the said sub-clause so as to provide that besides the genuineness of its activities, the Principal Commissioner or Commissioner shall also satisfy himself about compliance to the requirements of any other law which is material for the purpose of achieving its objects.

Sub-clause (b) of sub-section (1) of the said section, inter alia, provides that after satisfying himself about the objects of the trust or institution and the genuineness of its activities the Principal Commissioner or Commissioner shall pass an order registering or refusing to register the said trust or institution.

It is proposed to amend the said sub-clause so as to provide that the Principal Commissioner or Commissioner, besides satisfying himself about the objects of the trust or institution and the genuineness of its activities, shall also satisfy himself about the compliance to the requirements of any other law which is material for the purpose of achieving its objects.

Sub-section (4) of the said section, inter alia, provides for cancellation of registration if it is noticed that the activities of the exempted entity are being carried out in a manner that either whole or any part of its income would cease to be exempt.

It is proposed to amend the said sub-section so as to provide that besides the existing ground of cancellation, the trust or institution has not complied with the provisions of any other law that it was required to comply with due to the reason that the same was material for the purpose of achieving its objects and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or attained finality, shall be an additional ground on which the registration may be cancelled.

These amendments will take effect from 1st September, 2019.

Clause 8 of the Bill seeks to amend section 13A of the Incometax Act relating to special provision relating to the incomes of political parties.

The said section provides that any income of a political party which is chargeable under the head "Income from house property" or "Income from other sources" or "Capital Gains" or income from voluntary contributions shall not be included in the total income of the previous year of such political party.

The first proviso to the said section lays down conditions to be satisfied by a political party in order for the provisions of this section to be applicable.

It is proposed to amend clause (d) of the said proviso so as to empower the Board to make rules to prescribe any other electronic mode through which a political party may also receive donations exceeding two thousand rupees.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 9 of the Bill seeks to amend section 35AD of the Incometax Act relating to deduction in respect of expenditure on specified business.

The said section provides for deduction to an assessee of the whole of any expenditure of capital nature incurred, wholly and exclusively, for the purposes of any specified business carried on by him during the previous year in which such expenditure is incurred by him.

Clause (f) of sub-section (8) of the said section provides that the term 'any expenditure of capital nature' shall not include any expenditure in respect of which the assessee makes payment or an aggregate of payments exceeding ten thousand rupees to a person in a day through any mode other than an account payee cheque or an account payee bank draft or using the electronic clearing system through a bank account.

It is proposed to amend the said clause (f) so as to empower the Board to make rules to provide that payment made through such other electronic mode as may be prescribed shall also be allowed as deduction.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 10 of the Bill seeks to amend section 40 of the Income tax Act relating to amounts not deductible.

Sub-clause (i) of clause (a) of the said section provides that where, in case of any assessee, tax is to be deducted at source under Chapter XVII-B on payment of any amount in the nature of interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938), royalty, fees for technical services or other sum chargeable under the Income-tax Act, which is payable outside India, or in India to a non-resident, not being a company or to a foreign company, and where such tax has not been deducted or, after deduction, has not been paid on or before the due date for filing the return of income, the amount of such sum shall not be allowed as a deduction.

The proviso to the said sub-clause specifies that where in respect of any such sum, tax has been deducted in any subsequent year, or has been deducted during the previous year but paid after the due date specified in sub-section (1) of section 139, such sum shall be allowed as a deduction in computing the income of the previous year in which such tax has been paid.

It is proposed to insert a second proviso to the said sub-clause so as to provide that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purposes of the said sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the payee referred to in the first proviso to sub-section (1) of section 201.

It is further proposed to make a similar consequential amendment in the second proviso to sub-clause (ia) of clause (a) of section 40 to omit the word "resident".

These amendments will take effect from 1st April, 2020, and will, accordingly, apply to the assessment year 2020-2021 and subsequent assessment years.

Clause 11 of the Bill seeks to amend section 40A of the Incometax Act relating to expenses or payments not deductible in certain circumstances.

Sub-sections (3), (3A) and (4) of the said section provide for disallowance of any expenditure for which the assessee makes payment (or an aggregate of payments) exceeding ten thousand rupees through any mode other than through an account payee cheque or an account payee bank draft or using the electronic clearing system through a bank account.

It is proposed to amend the said sub-sections so as to empower the Board to make rules to provide that payment made through such other electronic mode as may be prescribed shall also be allowed as deduction.

These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 12 of the Bill seeks to amend section 43 of the Incometax Act relating to definitions of certain terms relevant to income from profits and gains of business or profession.

Sub-section (1) of the said section defines the term "actual cost" to mean the actual cost of the assets to the assessee, reduced by that portion of the cost thereof, if any, as has been met directly or indirectly by any other person or authority.

The second proviso to sub-section (1) of the said section provides that where the assessee incurs any expenditure for acquisition of any asset or part thereof in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or an account payee bank draft or use of electronic clearing system through a bank account, exceeds ten thousand rupees, such expenditure shall be ignored for the purposes of determination of actual cost.

It is proposed to amend the said second proviso so as to empower the Board to make rules to provide that payment made through such electronic mode as may be prescribed shall not be ignored for the purposes of determination of actual cost.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 13 of the Bill seeks to amend section 43B of the Incometax Act relating to certain deductions to be only on actual payment.

Clause (d) of the said section provides that in case of any loan or borrowing from any public financial institution or a State financial corporation or a State industrial investment corporation, deduction of any sum payable by the assessee as interest on such borrowing, in accordance with the terms and conditions of the agreement governing such loan or borrowing, shall be allowed only in computing the income of such borrower in the previous year in which such sum is actually paid by him.

It is proposed to amend the said section by inserting clause (da) to provide that in case of any loan or borrowing from any systemically important non-deposit taking non-banking financial company or a deposit taking non-banking financial company, deduction of any sum payable by the assessee as interest on such borrowing, in accordance with the terms and conditions of the agreement governing such loan or borrowing, shall be allowed in computing the income of such borrower only in the previous year in which such sum is actually paid by him.

It is further proposed to insert Explanation 3AA in the said section to provide that where a deduction in respect of any sum referred to in clause (da) of this section is allowed in computing the income referred to in section 28 of the previous year (being a previous year relevant to the assessment year commencing on the 1st April, 2019, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled to any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him.

It is also proposed to insert Explanation 3CA in the said section to provide that a deduction of any sum, being interest payable under clause (da) of this section, shall be allowed if such interest has been actually paid and any interest referred to in that clause which has been converted into a loan or borrowing shall not be deemed to have been actually paid.

It is also proposed to define the expressions "deposit taking non-banking financial company", "non-banking financial company" and "systemically important non-deposit taking non-banking financial company" in the said Explanation 4 to the said section.

These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 14 of the Bill seeks to amend section 43CA of the Incometax Act relating to special provision for value of consideration for transfer of assets other than capital assets in certain cases.

Sub-section (3) of the said section provides that where the date of agreement fixing the value of consideration for the transfer of the asset and the date of registration of such transfer of asset are not the same, then the full value of consideration for transfer of such asset shall be the stamp duty value on the date of the agreement.

Sub-section (4) of the said section provides that the provisions of sub-section (3) shall apply only in those cases where the amount of consideration or a part thereof has been received by way of an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account on or before the date of agreement for transfer of the asset.

It is proposed to amend the said sub-section (4) so as to empower the Board to make rules to provide that the provisions of sub-section (3) shall also apply in respect of those cases where the amount of consideration or a part thereof has been received by way of any other electronic mode as may be prescribed. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 15 of the Bill seeks to amend section 43D of the Incometax Act relating to special provision in case of income of public financial institutions, public companies, etc

Clause (a) of the aforesaid section provides that in the case of a public financial institution, scheduled bank, cooperative bank other than a primary agricultural credit society or a primary cooperative agricultural and rural development bank or a State financial corporation or a State industrial investment corporation, the income by way of interest in relation to certain prescribed categories of bad or doubtful debts shall be chargeable to tax when it is actually received or when it is credited to the profit and loss account of such entity, whichever is earlier.

It is proposed to amend the said section so as to insert reference of a deposit-taking non-banking financial company or a systemically important non-deposit taking non-banking financial company in order to extend the benefit of the provision of this section to the said entities.

It is further proposed to define the expressions "deposit taking non-banking financial company", "non-banking financial company" and "systemically important non-deposit taking non-banking financial company" in the Explanation to the said section.

These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 16 of the Bill seeks to amend section 44AD of the Incometax Act relating to special provision for computing profits and gains of business on presumptive basis.

Sub-section (1) of the said section provides that notwithstanding anything to the contrary contained in sections 28 to 43C, in the case of an eligible assessee engaged in an eligible business, a sum equal to eight per cent. of the total turnover or gross receipts of the assessee in the previous year on account of such business or, as the case may be, a sum higher than the aforesaid sum claimed to have been earned by the eligible assessee, shall be deemed to be the profits and gains of such business chargeable to tax under the head "Profits and gains of business or profession".

The proviso to the said sub-section (1) provides that in respect of the amount of total turnover or gross receipts which is received by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account during the previous year or before the due date specified in sub-section (1) of section 139 in respect of that previous year, a sum equal to six per cent. or higher shall be deemed to be the profits and gains of business and profession.

It is proposed to amend the said proviso so as to empower the Board to make rules to provide that an eligible assessee can opt for presumptive taxation scheme if he declares profit at the rate of six per cent. or higher of the turnover, received through any other electronic mode as may be prescribed.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 17 of the Bill seeks to amend section 47 of the Incometax Act relating to transactions not regarded as transfer.

The provisions of the said section provide that any transfer of a capital asset, being bonds or Global Depository Receipts referred to in sub-section (1) of section 115AC or rupee denominated bond of an Indian company or derivative, made by a non-resident through a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in foreign currency, shall not be regarded as transfer.

It is proposed to amend the said section so as to provide that any transfer of a capital asset, being bonds or Global Depository Receipts referred to in sub-section (1) of section 115AC or rupee denominated bond of an Indian company or derivative, made by a specified fund through a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in foreign currency, shall not be regarded as transfer.

It is also proposed to provide that transfer, at a recognised stock exchange located in any International Financial Services Centre, of such other securities as may be notified by the Central Government in this behalf, shall not be regarded as transfer in the hands of a non-resident or a specified fund.

It is also proposed to insert the definitions of the expressions "securities", "specified fund", "trust", "unit" and "convertible foreign exchange" in the Explanation to clause (viiab) of section 47.

These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 18 of the Bill seeks to amend section 50C of the Incometax Act relating to special provision for full value of consideration in certain cases.

The second proviso to sub-section (1) specifies that the first proviso shall apply only in a case where the amount of consideration or a part thereof has been received by way of an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account on or before the date of agreement for transfer of the asset.

It is proposed to amend the said second proviso so as to empower the Board to make rules to provide that the first proviso shall also apply in respect of those cases where the amount of consideration or a part thereof has been received by way of any other electronic mode as may be prescribed.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 19 of the Bill seeks to amend section 50CA of the Incometax Act relating to special provision for full value of consideration for transfer of share other than quoted share.

The said section, inter alia, provides that where the consideration received or accruing as a result of the transfer by an assessee of a capital asset, being share of a company other than a quoted share, is less than the fair market value of such share determined in such manner as may be prescribed, the value so determined shall, for the purposes of computing capital gains, be deemed to be the full value of consideration received or accruing as a result of such transfer.

It is proposed to amend the said section so as to provide that the provisions of the said section shall not apply to any consideration received or accruing as a result of transfer by such class of persons and subject to such conditions as may be prescribed.

This amendment will take effect from 1st April, 2020 and will,
accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 20 of the Bill seeks to amend section 54GB of the Income-tax Act relating to capital gain on transfer of residential property not to be charged in certain cases.

The said section, inter alia, provides that where the capital gain arises from the transfer of a long-term capital asset, being a residential property (a house or a plot of land), owned by the eligible assessee; and the assessee, before the due date of furnishing of return of income under sub-section (1) of section 139, utilises the net consideration for subscription in the equity shares of an eligible company; and the company has, within one year from the date of subscription in equity shares by the assessee, utilised this amount for purchase of new asset, then, the amount so utilised shall not be charged to tax as the income of the previous year. It is further provided that the new assets shall not be sold or otherwise transferred within a period of five years from the date of their acquisition; the capital gains arising from transfer of residential property made after the 31st day of March, 2017 (in case of eligible start-up, the 31st March, 2019) shall not be eligible for the benefit under the said section; and the assessee shall have more than fifty per cent. share capital or more than fifty per cent. voting rights after the subscription in shares in the eligible company.

It is proposed to amend the said section so as to provide that in the case of an eligible start-up, in place of five years, the restriction of three years on transfer from the date of acquisition of new asset, being computer or computer software shall apply; the capital gains arising from transfer of residential property made upto the 31st March, 2021 shall be eligible for the benefit under the said section; and the assessee shall have more than twenty-five per cent. share capital or more than twenty-five per cent. voting rights after the subscription in shares in the eligible company. This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 21 of the Bill seeks to amend section 56 of the Incometax Act relating to income from other sources.

Clause (viib) of sub-section (2) of the said section provides that where a company, not being a company in which the public are substantially interested, receives in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall not be charged to tax, if the consideration for issue of shares is received by a venture capital undertaking from a venture capital company or a venture capital fund or by a company from a class or classes of persons as may be notified by the Central Government in this behalf.

It is proposed to amend the said clause so as to provide that where a company, not being a company in which the public are substantially interested, receives in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value of the shares shall not be charged to tax, if the consideration for issue of shares is received by a venture capital undertaking from a specified fund.

It is further proposed to define the expression "specified fund".

It is also proposed to insert a second proviso to the said clause so as to provide that where the provisions of the said clause have not been applied to a company on account of fulfilment of conditions specified in the notification issued under clause (ii) of the first proviso and the company fails to comply with any of those conditions, then, any consideration received for issue of share that exceeds the face value of such shares shall be deemed to be the income of the company chargeable to income-tax for the previous year in which such failure has taken place.

These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause (viii) of sub-section (2) of the said section provides that income by way of interest received on compensation or on enhanced compensation referred to in clause (b) of section 145A shall be chargeable to tax.

It is proposed to amend the said clause so as to substitute the reference of clause (b) of section 145A with the reference of subsection (1) of section 145B therein. This amendment will take effect retrospectively from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent assessment years.

The second proviso to the sub-clause (b) of clause (x) of subsection (2) of the said section specifies that the first proviso shall apply only in a case where the amount of consideration or a part thereof has been received by way of an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account on or before the date of agreement for transfer of the asset.

It is proposed to amend the said second proviso so as to empower the Board to make rules to provide that the first proviso shall also apply in respect of those cases where the amount of consideration or part thereof has been received by way of any other electronic mode as may be prescribed.

The proviso to the said clause (x) provides that where any person receives, in any previous year, from any person or persons any property without consideration, the aggregate fair market value of which exceeds fifty thousand rupees, the whole of the aggregate fair market value of such property or consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, then the aggregate fair market value of such property as exceeds such consideration shall be the income of the person receiving such property.

It is proposed to insert a new clause (XI) in the proviso to the said clause (x) so as to provide that any sum of money or any property received from such class of persons and subject to such conditions, as may be provided by rules shall not be the income of such persons.

These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 22 of the Bill seeks to substitute section 79 of the Incometax Act relating to carry forward and set off of losses in case of certain companies and provides that where a change in shareholding has taken place during the previous year in the case of a company, not being a company in which the public are substantially interested, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year, unless on the last day of the previous year, the shares of the company carrying not less than fifty-one per cent. of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than fiftyone per cent. of the voting power on the last day of the year or years in which the loss was incurred.

The proviso to sub-section (1) of the said section provides that if the above condition is not satisfied in case of an eligible start up as referred to in section 80-IAC, loss incurred in any year prior to the previous year shall still be allowed to be carried forward and set off against the income of the previous year if all the shareholders of such company who held shares carrying voting power on the last day of the year or years in which the loss was incurred, continue to hold those shares on the last day of such previous year and such loss has been incurred during the period of seven years beginning from the year in which such company is incorporated.

Clause (a) of sub-section (2) to the said section provides that nothing contained in the section shall apply to a case where a change in the said voting power and shareholding takes place in a previous year consequent upon the death of a shareholder or on account of transfer of shares by way of gift to any relative of the shareholder making such gift.

Clause (b) of sub-section (2) to the said section provides that nothing contained in the section shall apply to any change in the shareholding of an Indian company which is a subsidiary of a foreign company as a result of amalgamation or demerger of a foreign company subject to the condition that fifty-one per cent. shareholders of amalgamating or demerged foreign company continue to be the shareholders of the amalgamated or the resulting foreign company.

Clause (c) of sub-section (2) to the said section provides that nothing contained in this section shall apply to a company where a change in the shareholding takes place in a previous year pursuant to a resolution plan approved under the Insolvency and Bankruptcy Code, 2016, after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner.

Clause (d) of sub-section (2) to the said section provides that nothing contained in this section shall apply to a company, and its subsidiaries and the subsidiary of such subsidiary, where,--

(i) the National Company Law Tribunal, on a petition moved by the Central Government under section 241 of the Companies Act, 2013 has suspended the Board of Directors of such company and has appointed new directors which are nominated by the Central Government, under section 242 of the said Act; and

(ii) a change in shareholding of such company, and its subsidiary and the subsidiary of such subsidiary, has taken place in a previous year pursuant to a resolution plan approved by the National Company Law Tribunal under section 242 of the Companies Act, 2013 after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner.

The Explanation to the section specifies that a company shall be a subsidiary of other company, if such other company holds more than half in nominal value of the equity share capital of the company.

This amendment will take effect from 1st April, 2020 and will, accordingly, be applicable for assessment year 2020-2021 and subsequent assessment years.

Clause 23 of the Bill seeks to amend section 80C of the Incometax Act relating to deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc.

It is proposed to amend the said section so as to provide that any amount paid or deposited by the assessee, being an employee of the Central Government, as a contribution to a specified account of the pension scheme referred to in section 80CCD for a fixed period of not less than three years and which is in accordance with the scheme as may be notified by the Central Government in this behalf, shall be eligible for deduction. It is further proposed to define the expression "specified account" by insertion of an Explanation to the said clause.

These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 24 of the Bill seeks to amend section 80CCD of the Income-tax Act relating to deduction in respect of contribution to pension scheme of the Central Government.

Sub-section (2) of the said section provides that in respect of any contribution made by the Central Government or any other employer to the account of the employee, the assessee shall be allowed a deduction in the computation of his total income, of the whole of the amount contributed by the Central Government or any other employer as does not exceed ten per cent. of his salary in the previous year.

It is proposed to amend the said section so as to provide that in respect of any contribution made by the Central Government to the account of the employee referred to in the section, the assessee shall be allowed a deduction in the computation of his total income, of the whole of the amount contributed by the Central Government as does not exceed fourteen per cent. of his salary in the previous year.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 25 of of the Bill seeks to insert a new sections 80EEA and 80EEB in the Income-tax Act relating to deduction in respect of interest on loan taken for certain house property and deduction in respect of purchase of electric vehicle.

The proposed new section 80EEA seeks to provide for deduction in respect of interest on loan taken for residential house property from any financial institution up to one lakh and fifty-thousand rupees subject to the conditions specified therein.

The proposed new section 80EEB seeks to provide for a deduction up to one lakh and fifty thousand rupees in respect of interest on loan taken for purchase of an electric vehicle from any financial institution subject to the conditions specified therein.

These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 26 of the Bill seeks to amend section 80-IBA of the Income-tax Act relating to deductions in respect of profits and gains from housing projects.

The provisions of the said section, inter alia, provide that where the gross total income of an assessee includes any profits and gains derived from the business of developing and building housing projects, there shall, subject to certain conditions, be allowed, a deduction of an amount equal to hundred per cent. of the profits and gains derived from such business.

It is proposed to amend the said section so as to provide that a housing project approved on or after the 1st day of September, 2019 shall be eligible for deduction under this section if the carpet area of the residential unit comprised in the housing project does not exceed sixty square metres, where the project is located within the Metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region), or ninety square metres, where the project is located in any other place; and if the stamp duty value of a residential unit in the housing project does not exceed forty-five lakh rupees.

It is also proposed to amend the said section so as to define the expression "stamp duty value".

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 27 of the Bill seeks to amend section 80JJAA of the Income-tax Act relating to deduction in respect of employment of new employees.

Clause (b) of the first proviso to clause (i) of the said Explanation specifies that the additional employee cost in case of an existing business shall be nil if the emoluments are paid otherwise than by an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account.

It is proposed to amend the said clause (b) so as to empower the Board to make rules to provide that deduction of an amount equal to thirty per cent. of additional employee cost in the case of an existing business shall be allowed if the emolument of such additional employees are paid through any other electronic mode as may be prescribed.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 28 of the Bill seeks to amend section 80LA of the Incometax Act relating to deductions in respect of certain incomes of Offshore Banking Units and International Financial Services Centre.

The said section, inter alia, provides that where the gross total income of an assessee, (i) being a scheduled bank, or, any bank incorporated by or under the laws of a country outside India; and having an Offshore Banking Unit in a Special Economic Zone; or (ii) being a Unit of an International Financial Services Centre, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to (a) one hundred per cent. of such income for five consecutive assessment years beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the Banking Regulation Act, 1949 or permission or registration under the Securities and Exchange Board of India Act, 1992 or any other relevant law was obtained, and thereafter; (b) fifty per cent. of such income for five consecutive assessment years.

It is proposed to amend the said section by substituting subsection (1) with sub-section (1) and (1A) so as to provide that the deduction specified in the said section in respect of an an Unit of International Financial Services Centre shall be allowed at one hundred per cent. for ten years. In addition the deductions may, at the option of the assessee, be claimed by him for any ten consecutive assessment years out of fifteen years beginning with the assessment year relevant to the previous year in which the permission referred to in clause (a) of sub-section (1) of the said section was obtained.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 29 of the Bill seeks to amend section 92CD of the Income-tax Act relating to effect to advance pricing agreement.

Sub-section (3) of the said section provides that if the assessment or reassessment proceedings for an assessment year relevant to a previous year to which the agreement applies have been completed before the expiry of period allowed for furnishing of modified return under sub-section (1), the Assessing Officer shall, in a case where modified return is filed in accordance with the provisions of sub-section (1), proceed to assess or reassess or recompute the total income of the relevant assessment year having regard to and in accordance with the agreement.

It is proposed to amend the said sub-section so as to provide that the Assessing Officer shall, in a case where modified return is filed in accordance with the provisions of sub-section (1), pass an order modifying the total income of the relevant assessment year, determined in such assessment or reassessment, as the case may be, having regard to and in accordance with the terms of the advance pricing agreement.

It is further proposed to make consequential amendment in subsection (5) of the said section.

These amendments will take effect from 1st September, 2019.

Clause 30 of the Bill seeks to amend section 92CE of the Incometax Act relating to secondary adjustment in certain cases.

Sub-section (1) of the said section, inter alia, provides that the assessee shall make secondary adjustment in case where primary adjustment to transfer price takes place as specified therein. The proviso to said sub-section provides exemption in cases where the amount of primary adjustment made in any previous year does not exceed the threshold limit of one crore rupees; and the primary adjustment is made in respect of an assessment year commencing on or before 1st April, 2016.

It is proposed to amend clause (iii) of the said sub-section so as to provide that the secondary adjustment will be applicable where the primary adjustment to transfer price is determined by an advance pricing agreement entered into by the assessee under section 92CC on or after 1st April, 2017.

It is also proposed to insert a second proviso in sub-section (1) so as to provide that no refund of any taxes paid, if any, by virtue of provisions of sub-section (1) as they stood immediately before their amendment by this Bill, shall be claimed and allowed.

Sub-section (2) of said section, inter alia, provides that the excess money available to the associated enterprise shall be repatriated to India from such associated enterprise within prescribed time and in case of non-repatriation, interest thereon is to be computed deeming the same as advance to such associated enterprise.

It is proposed to amend said sub-section so as to provide that the interest shall be computed on the excess money or part thereof and that the excess money can be repatriated from any of the associated enterprises of the assessee, which is not resident in India, besides the associated enterprise with which the excess money is available.

These amendments will take effect retrospectively from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-2019 and subsequent assessment years.

It is also proposed to insert sub-section (2A) in the said section so as to provide that where the excess money or part thereof has not been repatriated in time, besides the existing requirement of calculation of interest, the assessee will have the option to pay additional income tax at the rate of eighteen per cent. on such excess money or part thereof.

It is also proposed to insert sub-section (2B) so as to provide that the tax on the excess money or part thereof so paid by the assessee under sub-section (2A) shall be treated as the final payment of tax in respect of the excess money or part thereof not repatriated and no further credit therefor shall be claimed by the assessee or by any other person in respect of the amount of tax so paid.

It is also proposed to insert sub-section (2C) so as to provide that no deduction under any other provision of this Act shall be allowed to the assessee in respect of the amount on which tax has been paid in accordance with the provisions of sub-section (2A). It is also propsed to insert sub-section (2D) so as to provide that where the additional income-tax referred to in sub-section (2A) is paid by the assessee, he shall not be required to make secondary adjustment under sub-section (1) and compute interest under subsection (2) from the date of payment of such tax.

These amendments will take effect from 1st September, 2019.

Clause 31 of the Bill seeks to substitute section 92D of the Income-tax Act relating to maintenance and keeping of information and document by persons entering into an international transaction or specified domestic transition.

The proposed section seeks to provide for the maintenance, keeping and furnishing of information and document by certain persons.

Sub-section (1) of the proposed section provides for keeping and maintaining of prescribed information and document by the person entering into an international transaction or specified domestic transaction, and by the constituent entity of an international group referred to in section 286.

Sub-section (2) of the proposed section empowers the Board to prescribe the period for which said information and document shall be kept and maintained.

Sub-section (3) of the proposed section provides that the Assessing Officer or the Commissioner (Appeals) may, in the course of any proceeding under this Act, require any person referred to in clause (i) of sub-section (1) to furnish any information or document referred therein, within a period of thirty days from the date of receipt of a notice issued in this regard which may be further extended upto thirty days on such person's application.

Sub-section (4) of the proposed section provides that the constituent entity referred to in clause (ii) of sub-section (1) shall furnish the information and document referred therein to the authority prescribed under sub-section (1) of section 286, in such manner, on or before such date as may be prescribed. These amendments will take effect from the 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 32 of the Bill seeks to amend section 111A of the Incometax Act relating to tax on short-term capital gains in certain cases.

Clause (a) of the Explanation to the said section provides that the "equity oriented fund" shall have the meaning assigned to it in the Explanation to clause (38) of section 10.

It is proposed to amend the said Explanation so as to provide that "equity oriented fund" shall have the meaning assigned to it in clause (a) of the Explanation to section 112A.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 33 of the Bill seeks to amend section 115A of the Incometax Act relating to tax on dividends, royalty and technical service fees in the case of foreign companies.

Sub-section (4) of the said section provides that no deduction under Chapter VI-A shall be allowed in respect of income as specified in clause (a) or be allowed in the manner provided in clause (b) thereof to an assessee referred to in sub-section (1), where the gross total income of such assessee consists of only or includes any income referred to in clause (a) of the said sub-section (1).

It is proposed to insert a proviso to the said sub-section so as to exempt a Unit of an International Financial Services, for which deduction is allowed under section 80LA, from the applicability of the provisions of that sub-section.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.
Clause 34 of the Bill seeks to amend section 115JB of the Income-tax Act relating to special provision for payment of tax by certain companies.

The said section provides for levy of tax on certain companies on the basis of book profit which is determined after making certain adjustments to the net profit disclosed in the profit and loss account prepared in accordance with the provisions of the Companies Act, 2013. It also provides that in case of a company, against whom an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code, 2016, the aggregate amount of unabsorbed depreciation and loss brought forward shall be allowed to be reduced from the book profit and the loss shall not include depreciation.

It is proposed to amend the said section so as to provide that the aggregate amount of unabsorbed depreciation and loss (excluding depreciation) brought forward shall also be allowed to be reduced from the book profit in case of a company, and its subsidiary and the subsidiary of such subsidiary, where, the National Company Law Tribunal, on an application moved by the Central Government under section 241 of the Companies Act, 2013 has suspended the Board of Directors of such company and has appointed new directors who are nominated by the Central Government, under section 242 of the said Act.

It is also proposed to amend the said section so as to provide that a company shall be a subsidiary of another company, if such other company holds more than half in nominal value of the equity share capital of the company.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 35 of the Bill seeks to amend section 115-O of the Income-tax Act relating to tax on distributed profits of domestic companies.

Sub-section (8) of the said section provides that notwithstanding anything contained in this section, no tax on distributed profits shall be chargeable in respect of the total income of a company, being a unit of an International Financial Services Centre, deriving income solely in convertible foreign exchange, for any assessment year on any amount declared, distributed or paid by such company, by way of dividends (whether interim or otherwise), on or after the 1st day of April, 2017, out of its current income, either in the hands of the company or the person receiving such dividend.

It is proposed to amend the said sub-section so as to include the income accumulated after the 1st day of April, 2017 within the purview of the said sub-section.

This amendment will take effect from 1st September, 2019. Clause 36 of the Bill seeks to amend section 115QA of the Income-tax Act relating to tax on distributed income to shareholders.

Sub-section (1) of the said section provides that a domestic company shall be liable to pay additional income-tax at the rate of twenty per cent. on the distributed income on buy-back of shares not being shares listed on a recognised stock exchange from a shareholder.

It is proposed to amend the said sub-section so as to provide that the provisions contained therein shall also apply to the buyback of shares listed on a recognised stock exchange.

This amendment will take effect from 5th July, 2019.

Clause 37 of the Bill seeks to amend section 115R of the Incometax Act relating to tax on distributed income to unit holders.

Sub-section (2) of the said section, inter alia, provides that any amount of income distributed by the specified company or a Mutual Fund to its unit holders shall be chargeable to tax and such specified company or Mutual Fund shall be liable to pay additional incometax on such distributed income.

It is proposed to amend the said sub-section by inserting a proviso so as to provide that no additional income-tax shall be chargeable in respect of any amount of income distributed, on or after the 1st day of September, 2019, by a specified Mutual Fund out of its income derived from transactions made on a recognised stock exchange located in any International Financial Services Centre.

It is further proposed to insert the definition of the expressions "specified Mutual Fund", "unit", "convertible foreign exchange" and "International Financial Services Centre" in the Explanation to the said sub-section.

These amendments will take effect from 1st September, 2019. Clause 38 of the Bill seeks to amend section 115UB of the Income-tax Act relating to tax on income of investment fund and its unit holders.

Clauses (i) of sub-section (2) of said section, inter alia, provides that the loss of an investment fund for any previous year, being the net result of computation of total income of the investment fund, without giving effect to the exemption to income other than business income, under any head of income which cannot be or is not wholly set-off against income under any other head of income of the said previous year, shall be allowed to carry forward and set-off in accordance with the provisions of Chapter VI.

Clause (ii) of said sub-section provides that such loss shall not accrue or arise or received by the unit holder.

It is proposed to substitute the said sub-clauses so as to provide that,--

(i) the loss arising to the investment fund as a result of the computation under the head "Profit and gains of business or profession", if any, shall be, allowed carry forward and set off in accordance with the provisions of Chapter VI; and such loss shall not accrue, or arise or received by the unit holder; and

(ii) the other loss, if any, shall not accrue, or arise or received by the unit holder, if such loss has arisen in respect of a unit which has not been held by the unit holder for a period of atleast twelve months.

It is further proposed to insert sub-section (2A) to the said section so as to provide that the loss other than the loss under the head "Profit and gains of business or profession", if any, accumulated at the level of investment fund as on the 31st day of March, 2019, shall be deemed to be the loss of a unit holder who held the unit on that day in respect of the investments made by him in the investment fund and be allowed carry forward and set off for the remaining period calculated from the year in which it had occurred for the first time taking that year as the first year in accordance with the provisions of Chapter VI and that thereafter said loss shall not be available to the investment fund.

These amendments will take effect from the 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 39 of the Bill seeks to amend section 139 of the Incometax Act relating to return of income.

Sub-section (1) of the said section provides for furnishing of return by every person specified therein.

It is proposed to insert a proviso in the said sub-section so as to provide for furnishing of return by a person referred to in clause (b) of the said sub-section (1), who is not required to furnish a return under the said sub-section, if such person during the previous year —

(i) has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current account maintained with a banking company or a co-operative bank ; or

(ii) has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or

(iii) has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or

(iv) fulfills such other conditions as may be prescribed.

It is further proposed to amend the said sub-section so as to provide for furnishing of return by a person who is claiming rollover benefit of capital gains, for investment in a house or a bond or any other asset under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA and 54GB.

These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent years.

Clause 40 of the Bill seeks to amend section 139A of the Incometax Act relating to permanent account number.

Sub-section (1) of the said section, inter alia, provides that every person specified therein and who has not been allotted a permanent account number shall apply to the Assessing Officer for allotment of a permanent account number.

It is proposed to insert a new clause (vii) in the said sub-section so as to provide that every person, who intends to enter into such transaction, as may be prescribed by the Board in the interest of revenue, shall also apply to the Assessing Officer for allotment of a permanent account number.

It is further proposed to insert a new sub-section (5E) in the said section to provide that notwithstanding anything contained in this Act, every person who is required to furnish or intimate or quote his permanent account number under this Act, and who, has not been allotted a permanent account number and possesses the Aadhaar number, may, furnish or intimate or quote his Aadhaar number in lieu of permanent account number, and such person shall be allotted a permanent account number in such manner as may be prescribed. Further, every such person who has been allotted a permanent account number, and who has intimated his Aadhaar number in accordance with provisions of sub-section (2) of section 139AA may, furnish or intimate or quote his Aadhaar number in lieu of a permanent account number.

It is also proposed to amend sub-section (6) of the said section to provide that every person receiving document relating to a transaction prescribed under clause (c) of sub-section (5) shall also ensure that the permanent account number or the Aadhaar number, as the case may be, has been duly quoted.

It is also proposed to insert a new sub-section (6A) to provide that every person entering into such transaction, as may be prescribed, shall quote his permanent account number or Aadhaar number, as the case may be, in the documents pertaining to such transactions and also authenticate such permanent account number or Aadhaar number, as the case may be, in such manner as may be prescribed.

It is also proposed to insert a new sub-section (6B) to provide that every person receiving any documents relating to the transactions prescribed under sub-section (6A), shall ensure that permanent account number or Aadhaar number, as the case may be, has been duly quoted in the documents and also ensure that such permanent account number or Aadhaar number is authenticated in such manner as may be prescribed.

It is also proposed to empower the Board to prescribe by rules the categories of transactions in respect of which Aadhaar number shall be quoted by every person in documents pertaining to such transactions and the manner in which the Aadhaar number shall be quoted.

It is also proposed to define the expressions "Aadhaar number" and "authentication" in the Explanation to the said section.

These amendments will take effect from 1st September, 2019.

Clause 41 of the Bill seeks to amend section 139AA of the Income-tax Act relating to quoting of Aadhaar number.

Proviso to sub-section (2) of the said section provides for deeming the permanent account number allotted to a person invalid, in case the person fails to intimate the Aadhaar number, on or before a date to be notified in the Official Gazette.

It is proposed to amend the said proviso so as provide that if a person fails to intimate the Aadhaar number, the permanent account number allotted to such person shall be made inoperative after the notified date in the manner as may be provided by rules.

This amendment will take effect from 1st September, 2019.

Clause 42 of the Bill seeks to amend section 140A of the Incometax Act relating to self-assessment.

The said section 140A, inter alia, provides for payment of self assessment tax.

It is proposed to insert a new clause (iia) in sub-section (1) of the said section, so as to provide that "any relief of tax claimed under section 89" shall be taken into account for the purpose determining tax payable under the said sub-section.

It is further proposed to insert a new sub-clause (ba) in clause (i) of sub-section (1A) of the said section so as to provide that "any relief of tax claimed under section 89" shall be taken into account for the purpose of determining interest payable under the said subsection.

It is also proposed to insert a new clause (ia) in the Explanation to sub-section (1B) of the said section so as to provide that for the purpose of determining "assessed tax" under the said sub-section, "any relief of tax claimed under section 89" shall also be reduced from the tax on total income.

These amendments will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years.

Clause 43 of the Bill seeks to amend section 143 of the Incometax Act relating to Assessment.

Sub-section (1) of the said section 143, inter alia, provides for processing of return furnished under section 139 or in response to a notice under sub-section (1) of section 142.

It is proposed to amend clause (c) of sub-section (1) of the said section so as to provide that "any relief of tax allowable under section 89" shall be taken into account, while determining sum payable or refund due to the assessee.

These amendments will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years.

Clause 44 of the Bill seeks to amend section 194DA of the Income-tax Act relating to payment in respect of life insurance policy.

The said section provides for levy of tax deduction at source at the rate of one per cent. on the sum payable by way of a life insurance policy, including the sum allocated by way of bonus on such life insurance policy, excluding the amount exempted under clause (10D) of section 10.

It is proposed to amend the said section so as to provide that the levy of tax deduction at source shall be on the income comprised in the sum payable by way of redemption of a life insurance policy, including the sum allocated by way of bonus on such life insurance policy, excluding the amount exempted under the said clause (10D) of section 10 at the increased rate of five per cent.

This amendment will take effect from 1st September, 2019.

Clause 45 of the Bill seeks to amend section 194-IA of the Income-tax Act relating to payment on transfer of certain immovable property other than agricultural land.

Sub-section (1) of the said section provides for tax deduction at source at the rate of one per cent. on the amount of consideration paid for transfer of immovable property. Sub-section (2) provides that the tax deduction at source shall not be applicable where the amount of consideration does not exceed fifty lakh rupees.

It is proposed to amend the Explanation to the said section to clarify the expression "consideration for immovable property" to include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property.

This amendment will take effect from 1st September, 2019.

Clause 46 of the Bill seeks to insert new sections 194M relating to payment of certain sums by certain individuals or Hindu undivided family and 194N relating to payment of certain amounts in cash in the Income-tax Act.

Sub-section (1) of the proposed new section 194M seeks to provide for levy of tax deduction at source at the rate of five per cent. on any sum, or aggregate of sums, paid by an individual or a Hindu undivided family (other than those who are required to deduct income-tax as per the provisions of section 194C or section 194J) to a resident for carrying out any work (including supply of labour for carrying out any work) or by way of fees for professional services at the time of credit to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.

The proviso to the said sub-section provides that no incometax referred to in sub-section (1) shall be deducted, if such sum or aggregate of such sums paid to a resident does not exceed fifty lakh rupees during the financial year.

Sub-section (2) of the proposed new section 194M seeks to provide that the provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.

The Explanation to the proposed new section also defines the expressions "contract", "professional services" and "work".

The proposed new section 194N provides that a banking company or a co-operative society engaged in carrying on the business of banking or a post office, which is responsible for paying any sum or aggregate of sums, in excess of one crore rupees in cash during the previous year to any person (referred to as the recipient in the section) from an account maintained by the recipient with such banking company or co-operative society or post office shall, at the time of payment of such amount, deduct an amount equal to two per cent. of sum exceeding one crore rupees as income-tax.

The proviso to the said section provides that the provisions of the proposed new section shall not apply to any payment made to the Government, any banking company, co-operative society engaged in carrying on the business of banking, post office, business correspondent of a banking company or co-operative society, engaged in carrying the business of banking, any white label automated teller machine operator of a banking company or co-operative society engaged in carrying the business of banking, or such other persons or class of persons, which the Central Government may, specify by notification in consultation with the Reserve Bank of India,.

These amendments will take effect from 1st September, 2019.

Clause 47 of the Bill seeks to amend section 195 of the Incometax Act relating to other sums.

Sub-section (2) of the said section provides that where the person responsible for paying such sum chargeable under the Act to a non-resident considers that the whole of such sum would not be income chargeable in the case of the recipient, he may make an application to the Assessing Officer to determine, by general or special order, the appropriate proportion of such sum so chargeable, and upon such determination, tax shall be deducted only on that proportion of the sum which is so chargeable. 

It is proposed to amend the said sub-section so as to empower the Board to prescribe the form and manner of making such application and the manner of determining the appropriate proportion of such sum chargeable.

Sub-section (7) of the said section empowers the Board to specify a class of persons or cases, where the person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall make an application to the Assessing Officer to determine, by general or special order, the appropriate proportion of sum chargeable to tax.

It is proposed to amend the said sub-section so as to empower the Board to prescribe the form and manner of making such application and the manner of determining the appropriate proportion of such sum chargeable to tax.

These amendments will take effect from 1st November, 2019.

Clause 48 of the Bill seeks to amend section 197 of the Incometax Act relating to certificate for deduction at lower rate.

It is proposed to amend sub-section (1) of the said section so as to provide that the sums on which tax deduction at source has been deducted under section 194M shall also be eligible for certificate for deduction at lower rate. This amendment is consequential in nature for the insertion of proposed new section 194M.

This amendment will take effect from 1st September, 2019.

Clause 49 of the Bill seeks to amend section 201 of the Income tax relating to consequences of failure to deduct or pay.

The first proviso to sub-section (1) of the said section provides that any person, including the principal officer of a company specified therein, who fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVIIB on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident has furnished a return of his income, has taken into account such sum for computing income in such return of income, has paid the tax due on the income declared by him in such return of income and furnishes a certificate to this effect from an accountant in the prescribed form.

It is proposed to amend the said first proviso so as to substitute the word "resident" with the words "payee".

It is further proposed to make a similar amendment in the proviso to sub-section (1A) of the said section.

Sub-section (3) of the said section provides that no order deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a payment made to a resident shall be made after the expiry of seven years from the end of the financial year in which payment is made or credit is given.

It is proposed to amend the said sub-section to specify that in respect of a correction statement delivered by the assessee under the proviso to sub-section (3) of section 200, no order shall be made under sub-section (1) deeming a person to be an assessee in default for failure to deduct the whole or any part of the tax from a resident, at any time after the expiry of seven years from the end of the financial year in which payment is made or credit is given, or two years from the end of the financial year in which such correction statement is delivered under the proviso to sub-section (3) of section 200, whichever is later.

These amendments will take effect from 1st September, 2019.

Clause 50 of the Bill seeks to substitute section 206A of the Income-tax Act relating furnishing of quarterly return in respect of payment of interest to residents without deduction of tax.

Sub-section (1) of the proposed section provides that any banking company or co-operative society or public company referred to in the proviso to clause (i) of sub-section (3) of section 194A responsible for paying to a resident any income not exceeding forty thousand rupees, where the payer is a banking company or a co-operative society, and five thousand rupees in any other case by way of interest (other than interest on securities), shall prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and deliver or cause to be delivered to the prescribed income-tax authority or to the person authorised by such authority.

Sub-section (2) of the proposed section provides that the Board may, by rules, require any person other than a person mentioned in sub-section (1), responsible for paying to a resident, any income liable for deduction of tax at source under Chapter XVII, to prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and to deliver or cause to be delivered to the incometax authority or the authorised person referred to in sub-section (1).

Sub-section (3) of the proposed section provides for the furnishing of a correction statement to add, delete or update the information in the statement delivered under sub-section (1) or sub-section (2), as the case may be, in such form and verified in such manner as may be prescribed.

This amendment will take effect from 1st September, 2019. 

Clause 51 of the Bill seeks to amend section 228A of the Incometax Act relating to recovery of tax in pursuance of agreements with foreign countries.

Sub-section (1) of the said section, inter alia, provides that where an agreement is entered into by the Central Government with the Government of any foreign country for recovery of income-tax under the Income-tax Act and the corresponding law in force in that country and where such foreign country sends a certificate for the recovery of any tax due under such corresponding law from a person having any property in India, the Board, on receipt of such certificate may, forward it to the Tax Recovery Officer within whose jurisdiction such property is situated for the recovery of tax in pursuance of agreement with such foreign country.

It is proposed to amend the said sub-section so as to provide for tax recovery in cases where details of property of such person are not available but the said person is a resident in India.

It is further proposed to amend sub-section (2) of the said section so as to provide for tax recovery where details of property of assessee in default are not available but the said assessee is a resident in a foreign country.

This amendment will take effect from 1st September, 2019.

Clause 52 of the Bill seeks to amend section 234A of the Incometax Act relating to interest for defaults in furnishing return of income.

The said section 234A, inter alia, provides for charging of interest for defaults in furnishing return of income.

It is proposed to insert a new sub-clause (iia) in sub-clause (b) of sub-section (1) of said section so as to provide that "any relief of tax allowed under section 89" shall also be reduced from the tax on total income for the purpose of charging interest under the said section.

These amendments will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years.

Clause 53 of the Bill seeks to amend section 234B of the Incometax Act relating to interest for defaults in payment of advance tax.

The said section 234B, inter alia, provides for charging of interest for defaults in payment of advance tax.

It is proposed to insert a new clause (ia) in Explanation 1 to sub-section (1) of the said section, so as to provide that "any relief of tax allowed under section 89" shall also be reduced from the tax on the total income for the purpose of charging interest under the said section.

These amendments will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years.

Clause 54 of the Bill seeks to amend section 234C of the Incometax Act relating to interest for deferment of advance tax.

The said section 234C, inter alia, provides for charging of interest for deferment of advance tax.

It is proposed to insert a new clause (ia) in the Explanation to the said section, so as to provide that "any relief of tax allowed under section 89" shall also be reduced from the tax on the returned income for the purpose of charging interest under the said section. These amendments will take effect retrospectively from 1st April, 2007 and will, accordingly, apply in relation to the assessment year 2007-08 and subsequent assessment years.

Clause 55 of the Bill seeks to amend section 239 of the Incometax Act relating to form of claim for refund and limitation.

Sub-section (1) of the said section provides that every claim of refund under Chapter XIX of the said Act shall be made in such form and verified in the such manner as may be prescribed.

It is proposed to amend the said sub-section so as to provide that every claim for refund under the said Chapter shall be made by furnishing return in accordance with the provisions of section 139.

 It is further proposed to omit sub-section (2) of section 239.

These amendments will take effect from 1st September, 2019.

Clause 56 of the Bill seeks to amend section 246A of the Incometax Act relating to appealable orders before Commissioner (Appeals).

Clause (bb) of sub-section (1) of the said section provides that the assessee may appeal to the Commissioner (Appeals) against an order of assessment or reassessment under sub-section (3) of section 92CD.

It is proposed to amend the said clause so as to provide that the assessee may appeal to the Commissioner (Appeals) against an order made under sub-section (3) of section 92CD.

This amendment is consequential in nature to the amendment of section 92CD.

This amendment will take effect from 1st September, 2019.

Clause 57 of the Bill seeks to amend section 269SS of the Income-tax Act relating to mode of taking or accepting certain loans, deposits and specified sum.

The said section prohibits a person from taking or accepting from a depositor any loan or deposit or any specified sum equal to twenty thousand rupees or more otherwise than by an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account.

It is proposed to amend the said section so as to empower the Board to make rules to prescribe any other electronic mode for taking or accepting of certain loans, deposits and any specified sum.

This amendment will take effect from 1st September, 2019.

Clause 58 of the Bill seeks to amend section 269ST of the Income-tax Act relating to mode of undertaking transactions.

The said section prohibits a person from receiving an amount equal to two lakh rupees or more in aggregate from a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion from a person otherwise than by an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account.

It is proposed to amend the said section so as to empower the Board to make rules to prescribe any other electronic mode of undertaking transactions.

This amendment will take effect from 1st September, 2019.

Clause 59 of the Bill seeks to insert a new section 269SU of the Income-tax Act relating to acceptance of payment through prescribed electronic modes.

It is proposed to provide that every person, carrying on business, shall provide facility for accepting payment through the prescribed electronic modes, in addition to the facility for other electronic modes of payment, if any, being provided by such person, if his total sales, turnover or gross receipts, as the case may be, in business exceeds fifty crore rupees during the immediately preceding previous year.

This amendment will take effect from 1st November, 2019.

Clause 60 of the Bill seeks to amend section 269T of the Incometax Act relating to mode of repayment of certain loans or deposits.

The said section prohibits a banking company or a co-operative bank and any other company or co-operative society and any firm or other person from repaying any loan or deposit made with it or any specified advance received by it, in any mode other than by an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account, if the amount being repaid is equal to twenty thousand rupees or more.

It is proposed to amend the said section so as to empower the Board to make rules to prescribe any other electronic mode of repayment of certain loans or deposits.

This amendment will take effect from 1st September, 2019.

Clause 61 of the Bill seeks to amend section 270A of the Incometax Act relating to penalty for under-reporting and misreporting of income.

Sub-section (2) of the said section specifies the condition under which a person shall be considered to have under-reported his income.

Sub-section (3) of the said section provides for the manner in which under-reported income shall be determined.

It is proposed to amend clause (b) and clause (e) of the said sub-section (2) so as to provide that where return is furnished for the first time under section 148, a person shall be considered to have under-reported his income, if the income or deemed income assessed is greater than the maximum amount not chargeable to tax.

It is further proposed to amend sub-clause (b) of clause (i) of the said sub-section (3) so as to provide that where return is furnished for the first time under section 148 in the case of a company, firm or local authority, the amount of income assessed, and in any other case, the difference between the amount of income assessed and the maximum amount not chargeable to tax shall be the under-reported income.

It is also proposed to amend clause (a) of sub-section (10) of section 270A so as to provide that in a case where return is furnished for the first time under section 148, the tax payable in respect of under-reported income shall be the amount of tax calculated on the under-reported income as increased by the maximum amount not chargeable to tax as if it were the total income.

These amendments will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent assessment years.

Clause 62 of the Bill seeks to insert a new section 271DB of the Income-tax Act relating to penalty for failure to comply with provisions of section 269SU.

It is proposed to provide that if a person who is required to provide facility for accepting payment through the prescribed electronic modes of payment referred to in section 269SU, fails to provide such facility, he shall be liable to pay, by way of penalty, a sum of five thousand rupees, for every day during which such failure continues.

It is further proposed that the penalty shall not be imposable if the person proves that there were good and sufficient reasons for such failure.

It is also proposed that any such penalty shall be imposed by the Joint Commissioner.

This amendment will take effect from 1st November, 2019.

Clause 63 of the Bill seeks to amend section 271FAA of the Income-tax Act relating to penalty for furnishing inaccurate statement of financial transaction or reportable account.

The said section, inter alia, provides for penalty of a sum of fifty thousand rupees if a person referred to in clause (k) of sub-section (1) of section 285BA furnishes inaccurate information in the statement.

It is proposed to amend the said section so as to extend the penalty for furnishing inaccurate information in the statement to all the persons referred to in sub-section(1) of section 285BA.

This amendment will take effect from 1st September, 2019.

Clause 64 of the Bill seeks to amend section 272B of the Incometax Act relating to penalty for failure to comply with the provisions of section 139A.

The said section, inter alia, provides for penalty for failure to comply with the provisions of section 139A.

It is proposed to suitably amend the sub-section (2) of the said section, so that penalty may also be levied on false quoting or non-intimation of Aadhaar number.

It is further proposed that penalty of ten thousand rupees shall be levied for each such default.

It is also proposed to insert a new sub-section (2A) to provide that if a person, who is required to quote and also authenticate his permanent account number or Aadhaar number, as the case may be, in accordance with the provisions of section (6A), fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.

It is also proposed to insert a new sub-section (2B) to provide that if a person who is required to ensure that the permanent account number or the Aadhaar number, as the case may be, quote in the documents relating to transaction prescribed in clause (c) of sub-section (5) of section 139A or authenticate such number in respect of transactions prescribed under sub-section (6A) of that section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.

It is also proposed that before passing a penalty order under the proposed new sub-section (2A) and sub-section (2B), a person shall be heard.

These amendments will take effect from 1st September, 2019.

Clause 65 of the Bill seeks to amend section 276CC of the Income-tax Act relating to failure to furnish returns of income.

The proviso to the said section, inter alia, provides that a person shall not be proceeded against under the said section, for failure to furnish the return of income in due time, if the tax payable by such person, not being a company, on the total income determined on regular assessment does not exceed three thousand rupees.

It is proposed to amend sub-clause (b) of clause (ii) of the said proviso so as to provide reference of self-assessment tax, if any, paid before the expiry of the assessment year, and tax collected at source in the said proviso, and also to increase the threshold limit of tax payable from three thousand rupees to ten thousand rupees in the said proviso.

This amendment will take effect from 1st April, 2020 and will, accordingly, apply in relation to the assessment year 2020-2021 and subsequent assessment years.

Clause 66 of the Bill seeks to amend section 285BA of the Income-tax Act relating to obligation to furnish statement of financial transaction or reportable account.

Sub-section (1) of the said section, inter alia, specifies the persons who are required to furnish statement in respect of specified financial transaction or reportable account.

It is proposed to insert a new clause (l) in the said sub-section so as to provide that a person, other than those referred to in clauses (a) to (k), as may be prescribed, shall also be required to furnish a statement under the said section.

Second proviso to sub-section (3) of the said section specifies that the value or aggregate value of prescribed specified financial transaction during a financial year shall not be less than fifty thousand rupees.

It is further proposed to omit the said proviso.

Sub-section (4) of the said section, inter alia, provides that if the defect in the statement is not rectified within the time specified therein, the statement shall be treated as invalid.

It is proposed to amend the said sub-section so as to provide that if the defect in the statement is not rectified within the time specified therein, the provisions of the Act shall apply as if such person had furnished inaccurate information in the statement.

These amendments will take effect from 1st September, 2019.

Clause 67 of the Bill seeks to amend section 286 of the Incometax Act relating to furnishing of report in respect of international group.

The provisions of the said section, inter alia, provide for specific reporting regime containing revised standards for transfer pricing documentation and a template for country-by-country reporting.

Sub-clause (i) of clause (a) of sub-section (9) of the said section defines the expression "accounting year" to mean a previous year, in a case where the parent entity or alternate reporting entity is resident in India.

It is proposed to amend the said sub-clause so as to provide that the accounting year in case of an alternate reporting entity, resident in India, whose ultimate parent entity is outside India, shall not mean the previous year but an annual accounting period, with respect to which the parent entity of the international group prepares its financial statements under any law for the time being in force or the applicable accounting standards of the country or territory of which such entity is resident.

This amendment will take effect retrospectively from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent assessment years.

Clause 68 of the Bill seeks to amend rule 68B of the Second Schedule of the Income-tax Act relating to time limit for sale of attached immovable property.

Sub-rule (1) of the said rule provides that no sale of immovable property attached towards the recovery of tax, penalty, etc., shall be made after the expiry of three years from the end of the financial year in which the order giving rise to a demand of any tax, interest, fine, penalty or any other sum, for the recovery of which the immovable property has been attached, has become conclusive or final, as the case may be.

It is proposed to amend the said sub-rule so as to extend the said period from three years to seven years.

It is further proposed to insert a new proviso in the said sub-rule so as to provide that the Board may, for reasons to be recorded in writing, extend the aforesaid period by a further period not exceeding three years.

This amendment will take effect from 1st September, 2019.

Customs

Clause 69 of the Bill seeks to amend sub-section (1) of section 41 of the Customs Act so as to provide that the facility to furnish departure manifest shall, in addition to the person-in-charge of the conveyance, also be given to other person notified by the Central Government.

Clause 70 of the Bill seeks to insert a new chapter XIIB relating to verification of identity and compliance in the Customs Act. The proposed new section 99B under that clause seeks to empower proper officer of customs to carry out verification of a person for ascertaining compliance with the provision of the Customs Act or any other law for the time being in force, for protecting the interests of revenue or to prevent smuggling in the manner as may be prescribed. It is proposed to verify identity of a person through Aadhaar number or through any other alternative and viable means of identification. The section also specifies circumstances under which benefit of certain items shall be suspended or denied to such person. It also empowers the Board to make regulations for the purposes of the section.

Clause 71 of the Bill seeks to substitute sub-section (1) and to amend sub-section (6) of section 103 of the Customs Act. The proposed amendment to sub-section (1) seeks to enable the proper officer to scan or screen with prior approval of Deputy Commissioner of Customs or Assistant Commissioner of Customs any person referred to in sub-section (2) of section 100 who has any goods liable to confiscation secreted inside his body. The proposed amendment to sub-section (6) seeks to enable the magistrate to take action upon the report of scanning or screening by the proper officer also.

Clause 72 of the Bill seeks to amend sub-sections (1), (4) and (6) of section 104 of the Customs Act.

The amendment to sub-section (1) seeks to empower an officer of customs to arrest a person who has committed an offence outside India or Indian Customs waters.

The amendment to sub-section (4) seeks to insert two new clauses (c) and (d) therein, to provide for certain offences which shall be cognizable.

The amendment to sub-section (6) seeks to insert a new clause (e) therein, to provide for an offence which shall be non-bailable.

It is also proposed to insert an Explanation to define the term "instrument".

Clause 73 of the Bill seeks to amend sub-section (1) of section 110 of the Customs Act so as to substitute the existing proviso with two provisos so as to specify the conditions under which the custody of seized goods could be given to certain person. The amendment also seeks to specify the conditions, under which the custody of such goods, where it is not practicable to seize such goods, could be given to certain persons.

It is proposed to insert a new sub-section (5) so as to empower the proper officer to provisionally attach any bank account for safeguarding the Government revenue and prevention of smuggling, for a period not exceeding six months. It is also proposed that Principal Commissioner of Customs or Commissioner of Customs may, for reasons to be recorded in writing, extend the period of provisional attachment of a bank account to a further period not exceeding six months and inform the person whose bank account is provisionally attached before the expiry of the period so specified.

Clause 74 of the Bill seeks to amend section 110A of the Customs Act so as to empower an adjudicating authority to release bank account provisionally attached under section 110 to the bank account holder on fulfilment of certain conditions.

Clause 75 of the Bill seeks to insert a new section 114AB in the Customs Act. The proposed section seeks to provide that any person who has obtained any instrument by fraud, collusion, wilful misstatement or suppression of facts and such instrument has been utilised by such person or any other person for discharging duty, such person to whom the instrument was issued shall be liable for penalty not exceeding the face value of such instrument. It is also proposed to insert an Explanation to define the term "instrument".

Clause 76 of the Bill seeks to amend section 117 of the Customs Act so as to increase the maximum limit of penalty from one lakh rupees to four lakh rupees.

Clause 77 of the Bill seeks to amend first proviso to section 125 of the Customs Act so as to provide that the no fine in lieu of confiscation shall be imposed in respect of cases of deemed closure under section 28.

Clause 78 of the Bill seeks to amend sub-section (1) of section 135 of the Customs Act so as to insert a new clause (e) therein to make obtaining of an instrument by any person from any authority by fraud, collusion, wilful misstatement or suppression of facts, where such instrument has been utilised by such person or any other person a punishable offence.

The new clause (E) in item (i) of sub-section (1) seeks to make obtaining an instrument from any authority by fraud, collusion, wilful misstatement or suppression of facts, where such instrument has been utilised by any person a punishable offence if the duty relatable to utilisation of the instrument exceeds fifty lakhs of rupees.

It is also proposed to insert an Explanation to define the term "instrument".

Clause 79 of the Bill seeks to amend section 149 of the Customs Act so as to empower Board to make regulations specifying time, form, manner, restrictions and conditions for amendment of any document.

Clause 80 of the Bill seeks to amend section 157 of the Customs Act. The proposed amendment seeks to empower the Board to make regulations under proposed new section 99B and section 149 of the Customs Act.

Clause 81 of the Bill seeks to amend sub-section (2) of section 158 of the Customs Act so as to increase the maximum limit of penalty for violation of any provisions of rules or regulations made under Customs Act from fifty thousand rupees to two lakh rupees.

Clause 82 of the Bill seeks to make retrospective amendments to certain notifications issued under sub-section (1) of section 25 of the Customs Act, 1962, in the manner specified in Second Schedule, so as to change the tariff classification of Stearic acid from "3823 10 90" to "3823 11 00".

Clause 83 of the Bill seeks to make retrospective amendments to notification number G.S.R. 785(E), dated the 30th June, 2017 issued under sub-section (1) of section 25 of the Customs Act, 1962 and sub-section (12) of section 3 of the Customs Tariff Act, 1975 in the manner specified in Third Schedule, so as to change the tariff classification of Stearic acid from "3823 10 90" to "3823 11 00".

Clause 84 of the Bill seeks to give retrospective effect to the notification number G.S.R. 1270(E), dated the 31st December 2018, which was issued in exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 and subsection (12) of section 3 of the Customs Tariff Act, 1975, to amend the notification number G.S.R. 665 (E), dated the 2nd August, 1976, on the temporary importation of vehicles as per the Convention on the Temporary Importation of Private Road Vehicles to bring it into force on and from the 1st July, 2017, so as to give retrospective exemption from the integrated tax leviable under section 3 of the Customs Tariff Act, 1975.

Customs Tariff

Clause 85 of the Bill seeks to insert sub-section (1A) under section 9 of the Customs Tariff Act, so as to provide anticircumvention provision in case of Countervailing duty.

Clause 86 of the Bill seeks to amend sub-section (1) of section 9C of the Customs Tariff Act, so as to provide for filing of appeal before the Customs, Excise and Service Tax Appellate Tribunal against the findings of the designated authority regarding determination of safeguard duty.

Clause 87 of the Bill seeks to amend the First Schedule to the Customs Tariff Act,-

(a) in the manner specified in the Fourth Schedule with a view to revise the tariff rates in respect of certain tariff items and to amend Chapter Note of Chapter 98 so as to exclude printing books from the purview of heading 9804;

(b) in the manner specified in the Fifth Schedule with a view to rectify errors and harmonise certain entries with Harmonised System of Nomenclature and also to create new tariff lines from certain entries, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint.

Clause 88 of the Bill seeks to give retrospective effect to the notification number G.S.R. 186 (E), dated the 22nd February, 2016, amending the notification number G.S.R. 804 (E), dated the 21st October, 2015, issued under sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975, so as to retrospectively modify the tariff classification of the goods leviable to anti-dumping duty from tariff heading "5402" to tariff sub-heading "5402 47" on and from the 21st day of October, 2015 to 22nd day of February, 2016.

Clause 89 of the Bill seeks to give retrospective effect to notification number G.S.R. 665 (E), dated the 5th July, 2016, amending the notification number G.S.R. 285 (E), dated the 8th March 2016, issued under sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975, so as to retrospectively exclude expanded Polypropylene beads and ter-polymer from the levy of anti-dumping duty from 8th March, 2016 to 5th July, 2016.

Central Excise

Clause 90 of the Bill seeks to amend the Fourth Schedule to the Central Excise Act, 1944, so as to revise the tariff rate in respect of tariff item "2709 20 00" from "Nil" to "Re. 1 per tonne".

Central Goods and Service Tax

Clause 91 of the Bill seeks to amend clause (4) of section 2 of the Central Goods and Services Tax Act to insert the words "the National Appellate Authority for Advance Ruling" in the definition of "adjudicating authority" so as to exclude that authority from the definition of adjudicating authority.

Clause 92 of the Bill seeks to amend section 10 of the Central Goods and Services Tax Act so as to provide alternative composition scheme for supplier of services or mixed suppliers (not eligible for the earlier composition scheme) having an annual turnover in preceding financial year upto rupees fifty lakhs.

Clause 93 of the Bill seeks to amend section 22 of the Central Goods and Services Tax Act so as to provide for higher threshold exemption limit from rupees twenty lakhs to such amount not exceeding rupees forty lakhs in case of supplier who is engaged exclusively in the supply of goods.

Clause 94 of the Bill seeks to amend section 25 of the Central Goods and Services Tax Act so as to provide for mandatory Aadhaar submission or authentication for persons who intend to take or have taken registration under the said Act in such manner as may be notified by the Government on the recommendations of the Council.

Clause 95 of the Bill seeks to insert a new section 31A in the Central Goods and Services Tax Act, to provide that supplier shall mandatorily offer facility for digital payments to his recipient.

Clause 96 of the Bill seeks to amend section 39 of the Central Goods and Services Tax Act so as to provide for furnishing of annual returns and for quarterly payment of tax by taxpayer who opts for composition levy and to provide for certain other category of tax payers, an option for quarterly and monthly payments under the proposed new return filing system.

Clause 97 of the Bill seeks to amend section 44 of the Central Goods and Services Tax Act so as to empower the Commissioner to extend the due date for furnishing Annual return and reconciliation statement.

Clause 98 of the Bill seeks to amend section 49 of the Central Goods and Services Tax Act so as to provide facility to the taxpayer to transfer an amount from one head to another in the electronic cash ledger.

Clause 99 of the Bill seeks to amend section 50 of the Central Goods and Services Tax Act so as to provide for charging interest only on the net cash tax liability, except in those cases where tax is paid subsequent to initiation of any proceedings under section 73 or 74 of the Act.

Clause 100 of the Bill seeks to amend section 52 of the Central Goods and Services Tax Act so as to empower the Commissioner to extend the due date for furnishing of monthly and annual statement by the person collecting tax at source.

Clause 101 of the Bill seeks to insert a new section 53A in the Central Goods and Services Tax Act so as to provide for transfer of amount in the electronic cash ledger between the Centre and States as a consequence of the new facility given to the tax payer under section 49.

Clause 102 of the Bill seeks to amend section 54 of the Central Goods and Services Tax Act so as to empower the Central Government to disburse refund amount to the taxpayers in respect of refund of State taxes.

Clause 103 of the Bill seeks to amend clause (a) of section 95 of the Central Goods and Services Tax Act so as to include "the National Appellate Authority for Advance Ruling" in the definition of "advance ruling". It also seeks to insert clause (f) in section 95 of the Central Goods and Services Tax Act to define "National Appellate Authority".

Clause 104 of the Bill seeks to insert new sections 101A, 101B and 101C in the Central Goods and Services Tax Act.

The proposed new section 101A seeks to provide for constitution of the National Appellate Authority for Advance Ruling. It also provides for qualification, appointment, tenure, conditions of services and manner of removal of the President and Members of the National Appellate Authority.

The proposed new section 101B seeks to provide for filing of appeals and the procedure to be followed for hearing appeals against conflicting advance rulings pronounced on the same question by the Appellate Authorities of two or more States or Union territories or both under sub-section (1) of section 101 or subsection (3) of section 101 of the Act.

The proposed new section 101C seeks to provide that the National Appellate Authority shall pass order within a period of ninety days from the date of filing of the appeal. It also provides that where the members differ on any point, it shall be decided by majority.

Clause 105 of the Bill seeks to amend section 102 of the Central Goods and Services Tax Act so as to bring the National Appellate Authority within the ambit of that section to empower it to rectify its advance ruling.

Clause 106 of the Bill seeks to amend section 103 of the Central Goods and Services Tax Act so as to provide that the advance ruling pronounced by the National Appellate Authority shall be binding on the applicants, being distinct persons and all registered persons having the same Permanent Account Number and on the concerned officers or the jurisdictional officers in respect of the said applicants and the registered persons having the same Permanent Account Number. It also provides that the ruling shall be binding unless there is a change in law or facts.

Clause 107 of the Bill seeks to amend section 104 of the Central Goods and Services Tax Act to provide that advance ruling pronounced by the National Appellate Authority shall be void where the ruling has been obtained by fraud or suppression of material facts or misrepresentation of facts.

Clause 108 of the Bill seeks to amend section 105 of the Central Goods and Services Tax Act to provide that the National Appellate Authority shall have all the powers of a civil court under the Code of Civil Procedure, 1908 for the purpose of exercising its powers under the Act.

Clause 109 of the Bill seeks to amend section 106 of the Central Goods and Services Tax Act to provide that the National Appellate Authority shall have power to regulate its own procedure.

Clause 110 of the Bill seeks to amend section 168 of the Central Goods and Services Tax Act to include sub-section (1) of section 44 and sub-sections (4) and (5) of section 52, within the ambit of that section so that the Commissioner or Joint Secretary shall exercise the powers specified in the said sections with the approval of the Board.

Clause 111 of the Bill seeks to amend section 171 of the Central Goods and Services Tax Act to insert new sub-section (2A) therein so as to empower the Authority specified under sub-section (2) thereof to impose penalty equivalent to ten per cent. of the profiteered amount.

Clause 112 of the Bill seeks to amend the notification number G.S.R. 674(E), dated the 1st July, 2017, issued under sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017,so as to give retrospective exemption to "Uranium Ore Concentrate" from the levy of central tax from 1st July, 2017 to 14th November, 2017.

Integrated Goods and Services Tax

Clause 113 of the Bill seeks to insert a new section 17A in the Integrated Goods and Services Tax Act so as to provide for transfer of amount in the electronic cash ledger between the Centre and the States as a consequence new facility given to the tax payers under section 49 of the Central Goods and Service Tax Act.

Clause 114 of the Bill seeks to amend the notification number G.S.R. 667(E), dated the 1st July, 2017, issued under sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017,so as to give retrospective exemption to "Uranium Ore Concentrate" from the levy of integrated tax from 1st July, 2017 to 14th November, 2017.

Union Territory Goods and Services Tax

Clause 115 of the Bill seeks to amend the notification number G.S.R. 711(E), dated the 1st July, 2017, issued under sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017,so as to give retrospective exemption to "Uranium Ore Concentrate" from the levy of Union territory tax from 1st July, 2017 to 14th November, 2017.

Service Tax

Clause 116 of the Bill seeks to provide retrospective exemption from service tax on service by way of grant of liquor licence by the State Government, during the period from the 1st day of April, 2016 up to 30th day of June, 2017.

Clause 117 of the Bill seeks to provide retrospective exemption from service tax to the long duration degree or diploma programmes except Executive Development Programme provided by the Indian Institutes of Management to the students during the period from the 1st day of July, 2003 up to the 31st day of March, 2016.

Clause 118 of the Bill seeks to provide retrospective exemption from service tax on upfront amount paid for services by way of grant of long term lease of plots for development of infrastructure for financial business by the State Government Industrial Development Corporations or Undertakings or by any other entity having fifty per cent. or more ownership of the Central Government or State Government or Union territory, directly or through an entity which is wholly owned by such Governments, to the developers in the industrial or financial business area, during the period from the 1st day of October, 2013 up to the 30th day of June, 2017.

Clauses 119 to 134 of Chapter V of the Bill seeks to provide for Sabka Viswas (Legacy Dispute Resolution) Scheme, 2019.

The Scheme is a one time measure for liquidation of past disputes of Central Excise and Service Tax as well as to ensure disclosure of unpaid taxes by a person eligible to make a declaration. The Scheme shall be enforced by the Central Government from a date to be notified. It provides that eligible persons shall declare the tax dues and pay the same in accordance with the provisions of the Scheme. It further provides for certain immunities including penalty, interest or any other proceedings under the Central Excise Act, 1944 or Chapter V of the Finance Act, 1944 to those persons who pay the declared tax dues.

Miscellaneous

Clauses 135 to 142 of the Bill seek to amend certain provisions of the Reserve Bank of India Act, 1934.

It is proposed to amend section 45-IA of the Act so as to enhancethe existing amounts of the net owned fund of a non-banking financial company.

It is further proposed to insert new sections 45-ID and 45-IE in the Act so as to provide power to the Reserve Bank to remove directors of a non-banking financial company other than Government Company from office, and supersession of Board of Directors of a non-banking financial company, on certain grounds.

It is also proposed to insert a new section 45MAA in the Act so as to provide power to Reserve Bank to take action against auditors if any auditor fails to comply with any direction given or order made by the Reserve Bank under section 45MA.

It is also proposed to insert a new section 45MBA in the Act relating to resolution of a non-banking financial company.

It is also proposed to insert a new section 45NAA in the Act relating to power of the Reserve Bank in respect of group company.

It is also proposed to amend section 58B of the Act so as to enhance the existing amounts of penalty.

It is also proposed to amend section 58G of the Act so as to enhance the existing penalties of five thousand rupees, five lakh rupees and twenty-five thousand rupees to twenty-five thousand rupees, ten lakh rupees and one lakh rupees respectively.

Clause 143 of the Bill seeks to amend section 6 of the Insurance Act, 1938 relating to requirement as to capital.

It is proposed to insert a new sub-section (3) in the said section so as to restrict the foreign company engaging in re-insurance business through a branch in an International Financial Services Centre as specified in sub-section (1) of section 18 of the Special Economic Zones Act, 2005 for registration unless it has net owned funds of not less than rupees one thousand crore.

This amendment will take effect retrospectively from 1st April, 2019.

Clauses 144 and 145 of the Bill seek to amend certain provision of the Securities Contracts (Regulation) Act, 1956. It is proposed to amend section 23A of the said Act to provide that in addition to furnish information to recognised stock exchange the said information may also be furnished to the Board.

Clauses 146 and 147 of the Bill seek to amend certain provisions of the Banking Companies (Acquisition and Transfer of undertakings) Act, 1970.

It is proposed to amend section 9 of the Act to empower the Central Government to appoint not more than five full time directors of corresponding new bank.

Clause 148 of the Bill seeks to amend the Genaral Insurance Business (Nationalisation) Act, 1972. It is propsed to amend subsection (2) of the section 16 of the Act to provide “upto four companies” instead of “only four companies”.

Clauses 149 and 150 of the Bill seek to amend the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.

It is proposed to amend section 9 of the Act to empower the Central Government to approve not more than five full time directors in corresponding new bank.

Clauses 151 to 171 of the Bill seek to amend the National Housing Bank Act, 1987.

It is proposed to transfer regulation of such housing finance institutions from the National Housing Bank to the Reserve Bank of India and for the said purpose, it is proposed to amend certain provisions of the said Act.

Clause 153 of the Bill seeks to amend section 29A of the said Act relating to requirement of registration and net owned fund.

Clause 154 of the Bill seeks to amend section 29B of the said Act relating to maintenance of percentage of assets.

Clause 155 of the Bill seeks to amend section 29C of the said Act relating to reserve fund.

Clause 156 of the Bill seeks to substitute section 30 of the said Act relating to Reserve Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money.

Clause 157 of the Bill seeks to substitute section 30A of the said Act relating to power of Reserve Bank to determine policy and issue directions.

Clause 158 of the Bill seeks to substitute section 31 of the said Act relating to power of National Housing Bank to collect information from housing finance institutions as to deposits.

Clause 159 of the Bill seeks to substitute section 32 of the said Act relating to duty of housing finance institution to furnish statements, etc., under Chapter V.

Clause 160 of the Bill seeks to amend section 33 of the said Act relating to powers and duties of auditors.

Clause 161 of the Bill seeks to substitute section 33A of the said Act relating to power of Reserve Bank to prohibit acceptance and deposits and alienation of assets.

Clause 162 of the Bill seeks to amend section 33B of the said Act relating to power of National Housing Bank to file winding up petition.

Clause 163 of the Bill seeks to amend section 34 of the said Act relating to inspection.

Clause 164 of the Bill seeks to amend section 35 of the said Act relating to deposits not to be solicited by unauthorised persons.

Clause 165 of the Bill seeks to amend section 35A of the said Act relating to disclosure of information.

Clause 166 of the Bill seeks to substitute section 35B of the said Act relating to power of Reserve Bank to exempt housing finance institution.

Clause 167 of the Bill seeks to amend section 44 of the said Act relating to obligation as to fidelity and secrecy.

Clause 168 of the Bill seeks to amend section 46 of the Act to substitute Reserve Bank for national housing Bank throughout the Act.

Clause 169 of the Bill seeks to amend section 49 of the Act to substitute the “National Housing Bank or the Reserve Bank” for the “National Housing Bank”.

It is further propsed to substitute “National Company Law Tribunal for “Authorised officer”.

Clause 170 of the Bill seeks to amend section 51 of the said Act relating to cognisance of offences.

Clause 171 of the Bill seeks to substitute section 52A of the said Act relating to power of National Housing Bank and Reserve Bank to impose fine.

Clauses 172 to 176 of the Bill seek to amend the Prohibition of Benami Property Transactions Act, 1988.

Section 23 of the said Act provides that the Initiating Officer, after obtaining prior approval of the Approving Authority, shall have power to conduct or cause to be conducted any inquiry or investigation in respect of any person, place, property, assets, documents, books of account or other documents, in respect of any other relevant matters under this Act.

It is proposed to amend the said section so as to clarify that nothing contained in this section shall apply and shall be deemed to have ever applied where a notice under sub-section (1) of section 24 has been issued by the Initiating Officer.

This amendment will take effect retrospectively from 1st day of November, 2016.

Section 24 of the said Act provides that where the Initiating Officer is of the opinion that the person in possession of the property held benami may alienate the property during the period specified in the notice, he may, with the previous approval of the Approving Authority, by order in writing, attach provisionally the property in the manner as may be prescribed, for a period not exceeding ninety days from the date of issue of notice under sub-section (1) and Initiating Officer shall pass an order within a period of ninety days from the date of issue of notice under sub-section (1).

It is proposed to amend sub-section (3) of the said section so as to provide that instead of attaching the property for a period of ninety days from the date of notice, the said property may be attached for a period of ninety days from the last day of the month in which notice was issued.

It is further proposed to amend sub-section (4) of the said section so as to provide that instead of passing an order within a period of ninety days from the date of issue of notice under sub-section (1), the said order shall be passed from the last date of the month in which notice under sub-section (1) was issued.

It is also proposed to amend the said section so as to exclude the time on account of stay granted by any court from the period of time provided under sub-section (5) to refer the order passed under sub-section (4) within fifteen days from the date of attachment to the Adjudicating Authority and that if after exclusion of the period of stay if the remaining period is less than seven days, the remaining period shall be deemed to extend to seven days.

Sub-section (7) of section 26 of the said Act does not provide that in computing the period of one year for passing an order the period during which the proceeding is stayed by an order or injunction of any court shall be excluded.

It is proposed to amend the said sub-section so as to provide that in computing the period of one year for passing an order, the period during which the proceeding is stayed by an order or injunction of any court is excluded. It is also proposed that if after exclusion of the period of stay if the remaining period is less than sixty days, the remaining period shall be deemed to extend to sixty days.

It is also proposed to insert new sections 54A and 54B in the said Act.

Sub-section (1) of the proposed new section 54A provides that the person shall pay a penalty of twenty-five thousand rupees for each failure to comply with summons under sub-section (1) of section 19; or to furnish information which he was required to furnish under section 21.

Sub-section (2) of the said section provides for the authority who shall impose penalty.

Sub-section (3) of the said section provides that no penalty shall be imposed without affording an opportunity of being heard to the person in respect of whom penalty is sought to be imposed.

The proviso to the said sub-section provides that no penalty shall be imposed if such person proves that there were good and sufficient reasons for the contravention.

The proposed new section 54B provides that the entries in the records or other documents in the custody of an authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under section 3 or Chapter VII, and all such entries may be proved either by the production of the records or other documents in the custody of the authority containing such entries, or by the production of a copy of the entries certified by the authority having custody of the records or other documents under its signature and stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.

It is also proposed to amend section 55 of the said Act so as to provide that no prosecution shall be instituted against any person in respect of any offence under sections 3, 53 or section 54 without the previous sanction of the Board.

It is further proposed to insert an Explanation to the said section so as to define the expression "competent authority".

These amendments will take effect from 1st September, 2019.

Clauses 177 to 181 seek to amend the certain provisions fo the Securities Exchange Board of India Act, 1992.

It is proposed to amend section 14 of the said Act so as to restrict the accumulation of huge surplus funds with the Securities Exchange Board of India.

It is further proposed to amend section 15C of the said Act so as to provide that failure of any listed company or any person who is registered as an inermediary, to redress investors’ grievances after having been called upon the Board even through any electronic means and not necessarily in writing, may also amount to a penalty under the said section.

It is also proposed to amend section 15F of the said Act so as to provide monetary penalty for failure to issue contract notes in the form and in the manner specified by the stock exchange of which a registered stock broker is a member.

It is also proposed to insert a new section 15HAA so as to provide monetary penalty for alteration, destruction, mutilation, concealment or falsification of information, record, document (including electronic records), relating to a contravention of this Act, so as to impede, obstruct, or influence the investigation, inquiry, audit, inspection or proper administration of any matter within the juridiction of the Board. It also seeks to protect of electronic database of the Board intermediaries regulated by the Board, under the Act.

Clause 182 of the Bill seeks to amend section 10 of the Central Road and Infrastructure Fund Act, 2000 relating to functions of the Central Government. It is proposed to amend clause (iv) of subsection (1) of the said section for formulation of criteria for allocation of funds for development and maintenance of state road projects including the projects of inter-State and economic importance.

It is proposed to omit clause (v) of sub-section (1) of said section 10 which provides for release of funds to the States for specific projects and monitoring of such projects and expenditure incurred thereon, and clauses (v) and (vii) of said sub-section to omit.

clause (vii) of said sub-section which provides for allocation of share of funds to each State and Union territory specified in the First Schedule to the Constitution.

Clause 183 of the Bill seeks to subs titute sub-section (1) of section 11 of the Central Road and Infrastructure Fund Act, 2000 to have reference to clause (iv) sub-section (1) of Section 10 for formulation of criteria for allocation of funds for development and maintenance of road projects including the projects of inter-State and economic importance.

Clause 184 of the Bill seeks to omit clause (c) below sub-section (2) of section 12 of the Central Road and Infrastructure Fund Act, 2000 which provides for the manner in which the schemes for development and maintenance of State roads of inter-State and economic importance are to be formulated and sanctioned.

Clause 185 of the Bill seeks to amend the Eighth Schedule to the Finance Act, 2002, sub-clause (a) thereof seeks to increase the rate of special additional duty of excise on motor spirit commonly known as petrol from rupees seven per litre to rupees ten per litre.

Sub-clause (b) thereof seeks to increase the rate of special additional duty of excise on high speed diesel oil from rupees one per litre to rupees four per litre.

Clause 186 of the Bill seeks to amend section 13 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 relating to tax exemption or benefit to continue to have effect.

Sub-section (1) of said section 13 of the aforesaid Act provide that notwithstanding anything contained in the Income-tax Act, 1961, or any other enactment for the time being in force relating to tax or income, profits or gains, no income-tax or any other tax shall be payable by the Administrator upto 31st March, 2019 in respect of any income, profits or gains derived, or any amount received in relation to the specified undertaking.

It is proposed to amend the said sub-section (1) so as to extend the income-tax exemption to the said undertaking from the period beginning on the 1st April, 2019 to the 31st March, 2021.

This amendment will take effect retrospectively from 1st April, 2019.

Clauses 187 to 192 of the Bill seek to amend certain provisions of the Prevention of Money-Laundering Act, 2002.

It is proposed to amend sub-clause (i) of clause (n) of sub-section (I) of section 2, to meet out the difficulties being faced out by the Securities and Exchange Board of India.

It is further proposed to amend sub-clause (ii) of clause (sa) of sub-section (I) of section 2, to meet out the difficulties being faced out by the Financial Intelligence Unit, India.

It is also proposed to amend section 12A so as to provide the reference of newly inserted section 12AA therein.

It is also proposed to insert a section 12AA of the said Act so as to provide for the provisions for enhance due diligence.

It is also proposed to amend section 15 of the said Act so as to provide the reference of newly inserted section 12AA therein.

It is also proposed to insert Section 72A to allow power to Central Government to constitute Inter Ministerial Co-ordination Committee that is responsible for coordination and cooperation across all relevant/competent authorities on implementation of Financial Action Task Force standards. This is required for effective implementation of Financial Action Task Force standards Recommendations and to draw, coordinate, monitor and review the Anti Money Laundering or Countering Financing of Terrorism policies or activities and their implementation to strengthen Anti Money Laundering or Countering Financing of Terrorism framework in line with Financial Action Task Force standards.

It is also proposed to amend section 73 of the Act so as to provide certain rule making provisions.

Clause 193 of the Bill seeks to amend section 99 of the Finance (No. 2) Act, 2004 relating to the value of taxable securities transaction.

The said section provides for the value of taxable securities transaction in respect of sale of an option in securities, where option is exercised, shall be the settlement price.

It is proposed to amend the said section so as to provide that the value of taxable securities transaction in respect of sale of an option in securities, where option is exercised shall be the intrinsic value.

It is further proposed to insert an Explanation in the said section so as to define the expression "intrinsic value'' for the purposes of the said section.

These amendments will take effect from 1st September, 2019.

Clause 194 of the Bill seeks to amend the Payment and Settlement Systems Act, 2007 by insertion of a new section 10A relating to banks, etc. not to impose charge for using electronic modes of payment.

The proposed new section provides that notwithstanding anything contained in the said Act, no bank or system provider shall impose any charge, upon anyone, either directly or indirectly for using the electronic modes of payment prescribed under section 269SU of the Income-tax Act, 1961.

This amendment will take effect from 1st November, 2019.

Clauses 195 to 198 of the Bill seeks to amend certain provisions of the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.

Clause 195 of the Bill seeks to amend section 2 of the said Act.

The existing provisions of clause (2) of section 2 of the said Act, inter alia, provides that the "assessee" means a person who is resident in India within the meaning of section 6 of the Income-tax Act.

It is proposed to amend the aforementioned clause so as to provide that the "assessee" shall mean a person being a resident in India within the meaning of section 6 of the Income-tax Act, in the previous year, or a person being a non-resident or not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, in the previous year, who was resident in India either in the previous year to which the income referred to in section 4 relates to or in the previous year in which the undisclosed asset located outside India is acquired.

It is further proposed to insert a proviso to provide that the previous year of acquisition of the asset shall be determined without giving effect to the provisions of clause (c) of section 72. This amendment will take effect retrospectively from 1st July, 2015.

Clause 196 of the Bill seeks to amend section 10 of the said Act which, inter alia, provides for assessment or re-assessment under the said Act.

It is proposed to amend the provisions of sub-sections (3) and (4) of the said section so as to also include the terms "re-assess" and "reassessment" under the said sub-sections.

This amendment will take effect retrospectively from 1st July, 2015.

Clause 197 of the Bill seeks to amend section 17 of the said Act relating to powers of Commissioner (Appeals).

The existing provisions of clause (b) of sub-section (1) of the said section provide that the Commissioner (Appeals) may confirm or cancel the penalty order.

It is proposed to amend the said clause to provide that the Commissioner (Appeals) may also vary the penalty order either to enhance or reduce the penalty.

This amendment will take effect from lst September, 2019.

Clause 198 of the Bill seeks to amend section 84 of the said Act relating to application of provisions of Income-tax Act.

The said section provides for application of certain provisions of the Income-tax Act to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with necessary modifications.

It is proposed to amend the said section so as to provide that the provisions of section 144A of the Income-tax Act shall also be applicable to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 with necessary modifications.

These amendment will take effect from 1st September, 2019.

Clauses 199 and 200 of the Bill seek to amend certain provisions of the Finance Act, 2016 relating to the Income Declaration Scheme, 2016 (hereinafter referred to as the Scheme).

Sub-section (1) of section 187 of the said Act, inter alia, provides that the tax, surcharge and penalty in respect of the undisclosed income, shall be paid on or before a notified date.

It is proposed to insert a proviso in said sub-section to provide that where the amount of tax, surcharge and penalty, has not been paid within the due date notified under the said sub-section (1) of section 187, the Central Government may, by notification in the Official Gazette, specify the class of persons, who may, make the payment of such amount on or before such date as may be notified by the Central Government in the Official Gazette, along with the interest on such amount, at the rate of one per cent. for every month or part of a month comprised in the period commencing on the date immediately following the due date and ending on the date of such payment.

Section 191 of the said Act, inter alia, provides that any amount of tax, surcharge or penalty paid in pursuance of a declaration made under the Scheme shall not be refundable.

It is proposed to insert a proviso in the said section to provide that the Central Government may, by notification in the Official Gazette, specify the class of persons to whom the amount of tax, surcharge and penalty, paid in excess of the amount payable under the Scheme shall be refundable.

This amendment will take effect retrospectively from 1st June, 2016.

Clause 201 of the Bill seeks to amend the Sixth Schedule to the Finance Act, 2018, so as to increase the rate of road and infrastructure cess on motor spirit commonly known as petrol and high speed diesel oil , from rupees 8 per litre to rupees 10 per litre.

Clause 202 of the Bill seeks to repeal section 2 of the Finance Act, 2019.

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 5 of the Bill seeks to amend section 9A of the Incometax Act relating to certain activities not to constitute business connection in India.

It is proposed to amend clause (m) of sub-section (3) of the said section to provide that the amount shall be calculated in such manner as may be prescribed.

Clause 8 of the Bill seeks to amend section 13A of the Incometax Act relating to special provision relating to the incomes of political parties.

It is proposed to amend clause (d) of the first proviso to the said section to provide that the donation referred to therein is also received through such other electronic mode as may be prescribed.

Clause 9 of the Bill seeks to amend section 35AD of the Incometax Act relating to deduction in respect of expenditure on specified business.

The proposed amendment in clause (f) of sub-section (8) of the said section provides that besides payment through bank account the payment shall also be made through such other electronic mode as may be prescribed.

Clause 11 of the Bill seeks to amend section 40A of the Incometax Act relating to expenses or payments not deductible in certain circumstances.

The proposed amendment empowers the Board to make rules to provide that payment made through such other electronic mode shall also be allowed as deduction.

Clause 12 of the Bill seeks to amend section 43 of the Incometax Act relating to definitions of certain terms relevant to income from profits and gains of business or profession.

The proposed amendment seeks to empower the Board to make rules to provide that payment made through such electronic mode shall not be ignored for the purposes of determination of actual cost.

Clause 14 of the Bill seeks to amend section 43CA of the Income-tax Act relating to special provision for value of consideration for transfer of assets other than capital assets in certain cases.

The proposed amendment to sub-section (4) of the said section empowers the Board to make rules that the provision of sub-section (3) shall also apply in respect of those cases where the amount of consideration or a part thereof has been received by way of any electronic mode.

Clause 16 of the Bill seeks to amend section 44AD of the Income-tax Act relating to special provision for computing profits and gains of business on presumptive basis.

The proposed amemdment to the proviso to sub-section (1) of the said section empowers the Board to make rules to provide that an eligible assessee can opt for presumptive taxation scheme if he declares profit at the rate of six percent or higher of the turnover received through any electronic mode.

Clause 18 of the Bill seeks to amend second proviso to subsection (1) of section 50C, relating to special provision for full value of consideration in certain cases, so as to empower the Board to make rules to provide that the first proviso shall also apply in respect of those cases where the amount of consideration or a part thereof has been received by way of electronic mode as may be prescribed.

Clause 19 of the Bill seeks to amend section 50CA to insert a proviso to provide that the provision of the said section shall not apply to any consideration received or accruing as a result of such transfer by such class of persons referred to in the said section and such condition as may be prescribed.

Clause 21 of the Bill seeks to amend section 56 of the Incometax Act relating to income from other sources. It is proposed to amend the second proviso to sub-clause (b) of clause (x) of sub-section (2) of the said section to empower the Board to make rules to provide other electronic mode referred to therein.

It is further proposed to insert a new clause (XI) in the proviso to the said clause (x) so as to provide that sum of money or any property received from such class of persons and subject to such conditions, as may be prescribed by rules shall not be the income of such persons.

Clause 27 of the Bill seeks to amend section 80JJAA of the Income-tax Act relating to deduction in respect of employment of new employees so as to provide in clause (b) of the first proviso to the Explanation to the said section so as to empower the Board to make rules to provide that deduction of an amount of additional employee cost shall be allowed if such emoluments are also paid through electronic mode.

Clause 31 of the Bill seeks to substitute section 92D of the Income-tax Act relating to maintenance and keeping of information and document by persons entering into an international transaction or specified domestic transaction.

Sub-section (1) of the said section empowers the Board to make rules for the manner of keeping and maintaining information and document.

It is further proposed to empower the Board under sub-section (2) of the said section to prescribe the period for which the said information and document shall be kept and maintained.

Clause 39 of the Bill seeks to amend section 139 of the Incometax Act relating to return of income. It is proposed to insert a new provisio in sub-section (1) which empowers the Board to prescribe by rules other conditions in addition to the conditions specified therein.

Clause 40 of the Bill seeks to amend section 139A of the Incometax Act relating to permanent account number. It is proposed to insert a new clause (vii) in sub-section (1) of the said section and to empower the Board to make rules to specify the transaction referred to therein.

It is further proposed to insert new sub-section (6A) to empower the Board to make rules to specify the category of transaction and to provide for the manner of authentication of Permanent Account number and Aadhaar number.

It is also proposed to insert new sub-section (6B) to empower the Board to provide for manner of authentication of permanent account number and Aadhaar number by the person referred to in sub-section (6A).

Clause 41 of the Bill seeks to amend section 139AA of the Income-tax Act relating to quoting of Aadhaar Number.

It is proposed to amend the proviso to sub-section (2) of the
said section so as to provide that if a person fails to intimate the

Aadhaar number, the permanent account number allotted to such person shall be made inoperative after the notified date in the manner as may be prescribed by rules.

Clause 47 of the Bill seeks to amend section 195 of the Incometax Act relating to other sums.

It is proposed to amend sub-section (2) of the said section so as to empower the Board to prescribe the form and manner of making application and the manner of determining the appropriate proportion of such sum chargeable.

It is further proposed to amend sub-section (7) of the said section to empower the Board to prescribe the form and manner of making application and the manner of determining the appropriate proportion of such sum chargeable to tax.

Clause 50 of the Bill seeks to substitute section 206A of the Income-tax Act relating to furnishing of quarterly return in respect of payment of interest to residents without deduction of tax.

Sub-section (1) of the said section provides that any banking company or co-operative society or public company referred to in the proviso to clause (i) of sub-section (3) of section 194A responsible for paying to a resident any income not exceeding forty thousand rupees, where the payer is a banking company or a co-operative society, and five thousand rupees in any other case by way of interest (other than interest on securities), shall prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and deliver or cause to be delivered to the prescribed income-tax authority or to the person authorised by such authority.

Sub-section (2) of the said section provides that the Board may, require any person other than a person mentioned in sub-section (1), responsible for paying to a resident, any income liable for deduction of tax at source under Chapter XVII, to prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and to deliver or cause to be delivered to the income-tax authority or the authorised person referred to in sub-section (1).
Sub-section (3) of the said section provides for the furnishing of a correction statement to add, delete or update the information in the statement delivered under sub-section (1) or sub-section (2), as the case may be, in such form and verified in such manner as may be prescribed.

Clause 57 of the Bill seeks to amend section 269SS of the Income-tax Act relating to mode of taking or accepting certain loans, deposits and specified sum.

It is proposed to amend the said section so as to empower the Board to make rules to provide that the taking or accepting from any depositor of a loan or deposit or any specified sum equal to twenty thousand or more shall be allowed if such sum is received through any electronic mode.

Clause 58 of the Bill seeks to amend section 269ST of the Income-tax Act relating to mode of undertaking transactions.

It is proposed to amend the said section so as to empower the Board to make rules to provide that the receipt of an amount equal to two lakh rupees or more in aggregate from a person in a day or in respect of a single transaction or in respect of transactions relating to one event or occasion from a person shall also be allowed if such amount is received through any electronic mode.

Clause 60 of the Bill seeks to amend section 269T of the IncomeTax Act relating to mode of repayment of certain loans or deposits.

It is proposed to amend the said section so as to empower the Board to provide by rules that the repayment of any loan or deposit made with or any specified advance received by a banking company or a co-operative bank and any other company or cooperative society and any firm or other person in an amount equal to twenty thousand or more shall also be allowed if such repayment is made through electronic mode.

Clause 66 of the Bill seeks to amend section 285BA of the Income-tax Act relating to obligation to furnish statement of financial transaction or reportable account.

It is proposed to insert a new clause (l) in the said sub-section so as to provide that a person, other than those referred to in clauses (a) to (k), as may be presribed, shall also be required to furnish a statement under the said section.

Clause 80 of the Bill seeks to amend sub-section (2) of the section 157 of the Customs Act, so as to insert new clauses (ka) and (n) therein. The said new clauses seek to empower the Board to make regulations regarding ––

(a) the manner of authentication and the time limit for such authentication, the manner of submitting such documents or information and the time limit for such submission, the form and the manner of furnishing alternative means of identification and time limit for furnishing such identification, person or class of persons to be exempted and the conditions subject to which suspension may be made, under Chapter XIIB;

(b) the form and the manner, the time limit and the restrictions and conditions and amendment of any document under section 149.

Clause 92 of the Bill seeks to amend section 10 of the Central Goods and Services Tax Act. Sub-clause (c) of the said clause seeks to insert new sub-section (2A) therein which empowers the Government on the recommendations of the Council to prescribe the rate not exceeding three per cent. of the turnover in State or turnover in Union territory for the purpose of calculating the amount of tax under the said sub-section.

Clause 93 of the Bill seeks to amend section 22 of the Central Goods and Services Tax Act, so as to insert a third proviso which empowers the Government, at the request of a State and on the recommendations of the Council, to enhance the aggregate turnover from twenty lakh rupees to a higher amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods and subject to certain conditions and limitations as may be specified in the notification.

Clause 94 of the Bill seeks to amend section 25 of the Central Goods and Services Tax Act, so as to insert new sub-sections (6A), (6B), (6C) and (6D) therein. The said sub-section (6A) empowers the Government to make rules on the recommendations of the Council to provide for the form and manner and the time within which a registered person shall undergo authentication or furnish proof of possession of Aadhaar number and in case such person is not assigned Aadhaar number, then the manner in which an alternate and viable means of identification may be offered to such person.

Clause 95 of the Bill seeks to insert a new section 31A in the Central Goods and Services Tax Act, which empowers the Government on the recommendations of the Council to make rules to provide for a class of registered person who shall provide prescribe mode of electronic payment to the recipient of the supply of goods or services or both and give option to the recipient to make payment in such mode, in the manner and subject to the conditions and restrictions as may be provided in such rules.

Clause 96 of the Bill seeks to amend section 39 of the Central Goods and Services Tax Act, so as to substitute sub-sections (1), (2) and (7) of said section to provide for a new return system and empower the Government to make rules regarding the particulars to be furnished in the return, the form, manner and time within which the return may be filed.

Clause 98 of the Bill seeks to insert new sub-sections (10) and (11) in section 49 of the Central Goods and Services Tax Act, which empowers the Government to make rules to provide for the form, manner, conditions and restrictions for a registered person to transfer on the common portal any amount of tax, interest, penalty, fee or any amount available in the electronic cash ledger under the said Act to the electronic cash ledger for integrated tax, Central tax, State tax, Union territory tax on cess, and such transfer shall be deemed to be a refund.

Clause 101 of the Bill seeks to insert a new section 53A in the Central Goods and Services Tax Act, which empowers the Government to transfer to the State tax account or Union territory tax account an amount equal to the amount transferred from the electronic cash ledger in the manner and within the time provided by the rules.

Clause 102 of the Bill seeks to insert a new sub-section (8A) in section 54 of the Central Goods and Services Tax Act to empower the Government to disburse the refund of the State tax in the manner provided by the rules.

Clause 104 of the Bill seeks to insert new sections 101A, 101B and 101C in the Central Goods and Services Tax Act, to provide by rules ––

(a) the manner of appointment of Technical members (Centre) and Technical members (State) of the National Appellate Authority and composition of Selection Committee for such appointment;

(b) the salary and allowances and other terms and conditions of service of President and members of the National Appellate Authority;

(c) the form of appeal, the fees and manner of verification of such appeal.

Clause 113 of the Bill seeks to insert a new section 17A in the Integrated Goods and Services Tax Act which empowers the Government to transfer to the State tax account or Union territory tax account an amount equal to the amount transferred from the electronic cash ledger in the manner and within the time provided by rules.

Clauses 119 to 134 of the Bill provide for Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. Clause 131 thereof empowers the Central Government to make rules to provide for all or any of the following:––

(a) the form in which a declaration may be made and the manner in which such declaration may be verified;

(b) the manner of constitution of the designated committee and its rules of procedure and functioning;

(c) the form and manner of estimation of amount payable by the declarant and the procedure relating thereto;

(d) the form and manner of making the payment by the declarant and the intimation regarding the withdrawal of appeal;

(e) the form and manner of the discharge certificate which may be granted to the declarant;

(f) the manner in which the instructions may be issued and published;

(g) any other matter which is to, or may be, prescribed, or in respect of which provision is to be made, by rules.

Clause 189 of the Bill seeks to insert a new section 12AA relating to enhanced due diligence, in the Prevention of Money-Laundering Act, 2002.

The said section empowers the Central Government to make rules that every reporting entity shall, prior to the commencement of each specified transaction,-

(a) authenticate the identity of the clients undertaking such specified transaction in such manner and subject to such conditions as may be prescribed;

(b) take additional steps to examine the ownership and financial position, including sources of funds of the client, in such manner as may be prescribed;

(c) take additional steps as may be prescribed to record the purpose behind conducting the specified transaction and the intended nature of the relationship between the transaction parties;

(d) Where any specified transaction or series of specified transactions undertaken by a client is considered suspicious or likely to involve proceeds of crime, the reporting entity shall increase the future monitoring of the business relationship with the client, including greater scrutiny or transactions in such manner as may be prescribed.

2. The matters in respect of which rules or regulations may be made or notifications or order may be issued in accordance with the provisions of the Bill are matters of procedure and detail and it is not practicable to provide for them in the Bill itself.

3.The delegation of legislative power is, therefore, of a normal character.