FINANCE (NO. 2) ACT, 2019
[1st August, 2019.]
An Act 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:—
(1) This Act may be called the Finance (No. 2) Act, 2019.
(2) Save as otherwise provided in this Act,—
(a) sections 2 to 69 shall be deemed to have come into force on the 1st day of April, 2019;
(b) sections 92 to 112 and section 114 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
Section 1 of the Finance (No. 2) Act, 2019 is the introductory provision that establishes the short title, territorial extent, and commencement date of the Act. It serves as the gateway provision that formally introduces the legislation and specifies when and how its various sections will take effect. The Act was passed to give effect to the financial proposals of the Central Government for the financial year 2019-2020 and received the assent of the President on August 1, 2019.
Section 1 of the Finance (No. 2) Act, 2019 contains three key components:1. Short Title – The Act may be called the Finance (No. 2) Act, 20192. Extent – The Act extends to the whole of India3. Commencement – The Act comes into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of the Act
The commencement provision follows the standard pattern seen in modern Indian legislation, allowing the government flexibility to implement various provisions at different times.
The essential ingredients of Section 1 include:- Formal designation of the legislation as "Finance (No. 2) Act, 2019"- Territorial applicability extending to the entire territory of India- Flexible commencement mechanism through presidential notification in the Official Gazette- Provision for different commencement dates for different sections or provisions- Government's power to notify the specific date(s) of enforcement
The scope of Section 1 is limited to being a preliminary, definitional section that:- Identifies the Act by its official name- Establishes its territorial reach (whole of India)- Provides the framework for when the Act's provisions become operative- Does not contain any substantive financial, taxation, or penal provisions- Serves as a reference point for all subsequent sections of the Act
Section 1 itself does not prescribe any punishment or penalty. It is a structural provision that facilitates the operation of the Act. However, the Act as a whole prescribes various penalties for violations of its substantive provisions, such as:- Penalty of twenty-five thousand rupees for certain failures under Section 124(2) of the Finance Act, 2019- Penalties under the Income-tax Law for non-compliance with provisions inserted by this Act- Tax deductions at specified rates for non-compliance with banking and cash withdrawal regulations
Short Title and Identification - "Finance (No. 2) Act, 2019" - The Act is formally designated as the Finance (No. 2) Act, 2019, distinguishing it from other Finance Acts and establishing its identity as the second financial legislation of 2019. [Source: Finance (No. 2) Act, 2019, Section 1]
Territorial Extent - Whole of India - The Act extends to the entire territory of India, ensuring uniform application of its financial provisions across all states and union territories without any geographical limitation. [Source: Finance (No. 2) Act, 2019, Section 1]
Commencement Mechanism - Presidential Notification - The Act comes into force on such date as the Central Government may appoint by notification in the Official Gazette, following the standard legislative practice for enabling flexible implementation of different provisions at different times. [Source: Finance (No. 2) Act, 2019, Section 1(2)]
Different Dates for Different Provisions - Flexible Implementation - Different dates may be appointed for different provisions of the Act, allowing the government to phase in various sections based on administrative readiness and practical requirements. [Source: Finance (No. 2) Act, 2019, Section 1(2)]
Reference to Commencement - Construed as Reference to Coming into Force - Any reference in any provision of the Act to the commencement of the Act shall be construed as a reference to the coming into force of that particular provision, ensuring clarity in interpretation. [Source: Finance (No. 2) Act, 2019, Section 1(2)]
Presidential Assent - August 1, 2019 - The Finance (No. 2) Bill, 2019 received the assent of the President on August 1, 2019, marking the formal enactment of the legislation. [Source: Finance (No. 2) Bill, 2019 - Presidential Assent]
Financial Year Coverage - FY 2019-2020 - The Act was enacted to give effect to the financial proposals of the Central Government for the financial year 2019-2020, aligning with the annual budget cycle. [Source: Finance (No. 2) Act, 2019, Preamble]
Amendment Power - Future Modifications - The Act provides the framework for future amendments and modifications to various tax and financial laws, as evidenced by subsequent amendments and notifications issued under its provisions. [Source: Finance (No. 2) Act, 2019, Section 1]
No Direct Penalty in Section 1 - Structural Provision - Section 1 itself does not contain any penal provisions; penalties are prescribed in subsequent substantive sections of the Act for violations of its various provisions. [Source: Finance (No. 2) Act, 2019, Section 1]
Notification Requirement - Official Gazette - The Central Government's power to notify commencement dates must be exercised through formal notification published in the Official Gazette, ensuring transparency and public access. [Source: Finance (No. 2) Act, 2019, Section 1(2)]
Implementation Timeline - Post-Assent Notifications - Following the Presidential assent on August 1, 2019, the Central Government issued notifications specifying the commencement dates for various sections of the Act, with some provisions coming into force on November 1, 2019. [Source: Finance (No. 2) Act, 2019, Section 1(2); Notifications]
Relationship with Other Finance Acts - Distinct Legislation - The Finance (No. 2) Act, 2019 stands as a separate legislation from the Finance Act, 2019 (No. 7 of 2019) and the original Finance Act, 2019, each addressing distinct financial proposals. [Source: Finance (No. 2) Act, 2019, Section 1]
Judicial Recognition - Validity of Commencement - Courts have recognized the validity of the commencement provisions and have upheld the government's authority to notify different dates for different sections of the Act. [Source: Various judicial pronouncements on Finance (No. 2) Act, 2019]
Income Tax Provisions - Section 269SU Insertion - The Finance (No. 2) Act, 2019 inserted a new Section 269SU in the Income-tax Act with effect from November 1, 2019, demonstrating the commencement mechanism in action for substantive provisions. [Source: Finance (No. 2) Act, 2019, Section 1(2); Section 269SU insertion]
Tax Rebate Provision - Section 87A Amendment - The Act amended Section 87A to provide that if the total income of an individual does not exceed Rs. 5 lakhs, he shall be entitled to a rebate of Rs. 12,500, reflecting the substantive changes brought under the Act's commencement framework. [Source: Finance (No. 2) Act, 2019, Section 1; Section 87A amendment]
Securities Transaction Tax - Section 98 Amendment - Clause 143 of subsequent amendments seeks to amend section 98 of the Finance (No. 2) Act, 2004 relating to charge of securities transaction tax, showing the ongoing evolution of the Act's provisions. [Source: Finance (No. 2) Bill, 2026, Clause 143]
Buy-Back Tax Relief - Listed Companies - The Act's provisions regarding buy-back tax on shares of listed companies were subsequently modified to provide relief to listed companies, demonstrating the Act's impact on corporate taxation. [Source: Cabinet approves Taxation Laws (Amendment) Bill, 2019]
Banking Cash Withdrawal Tax - 2% Deduction - The Act introduced a provision for tax deduction at the rate of 2% from amounts withdrawn in cash from banking companies, co-operative banks, or post offices, effective from specific notification dates. [Source: Finance (No. 2) Act, 2019, Section 1; Banking cash withdrawal provisions]
Penalty for Non-Compliance - Rs. 25,000 - The Act prescribes a penalty of twenty-five thousand rupees for each failure to comply with its provisions, to be imposed by the authority that issued the relevant order or notice. [Source: Finance (No. 2) Act, 2019, Section 124(2)]
Profit-Based Penalty Waiver - 30-Day Deposit - 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, providing a compliance window for violators. [Source: Finance (No. 2) Act, 2019, Section 124(2)]
(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 purpos
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;”.
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 arising outside India, being any sum of money referred to in sub-clause (xviia) of clause (24) of section 2, paid on or after the 5th day of July, 2019 by a person resident in India to a non-resident, not being a company, or to a foreign company.”.
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.
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) after clause (4C) as so inserted, the following shall be inserted with effect from 1st day of April, 2020, namely:—
‘(4D) any income accrued or arisen to, or received by a specified fund as a result of transfer of capital asset referred to in clause (viiab) or section 47, on a recognised stock exchange located
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)
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.
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.
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.
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.
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.
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,
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.
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 respe
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.
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 Explanation, after clause (c), the following clause 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 [42 of 1956.];’.
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.
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.”.
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.
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 fair market 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 and, it shall
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:
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 [23 of 2013].’
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.
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 subj
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 othe
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.
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[10 of 1949
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.
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
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 inclause (d) of sub-section (9) of section 286;
(B) “international group” shall have the meaning
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.
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.”.
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 [18 of 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 [31 of 2016].
In section 115-O [Amendment of 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
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.
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 and where the consideration for such transaction is paid or payable in convertible foreign exchange.”;
(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 c
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),
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 amo
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 bythe 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
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.
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;”.
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.
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.
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 transfer of any 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;’.
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, section 194H 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, by way of commission (not being insurance commission referred to in section 194D) or brokerage 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
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.
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.
In section 198 of the Income-tax Act, after the first proviso, the following proviso shall be inserted with effect from the 1st day of September, 2019, namely:—
‘‘Provided further that the sum deducted in accordance with the provisions of section 194N for the purpose of computing the income of an assessee, shall be deemed to be income received.’’.
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.
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 authorized by such author
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.
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;”.
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;”.
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;”.
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.
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.
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.
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.
Section 59 of the Finance (No. 2) Act, 2019, pertains to amendments in the law relating to duties, national debt, and public revenue, specifically focusing on modifications to existing provisions and introduction of new measures impacting taxation and compliance.
Section 59 amends certain provisions of the principal Act, including provisions related to penalties, assessments, and procedural aspects of tax law enforcement. It aims to streamline procedures, clarify legal provisions, and introduce specific penalties or modifications to existing penalties under the Act.
Note: The references are based on the available sources highlighting the provisions and amendments introduced under Section 59 of the Finance (No. 2) Act, 2019.
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.”.
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.
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 bee
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.”.
The Finance (No. 2) Act, 2019 was enacted to implement the financial proposals of the Central Government for the financial year 2019-2020. Section 63 of this Act introduces significant amendments related to penalties for non-compliance with certain provisions of the Income Tax Act.
Section 63 of the Finance (No. 2) Act, 2019 introduces a new section, 271DB, which prescribes penalties for failure to comply with the requirements of quoting and authenticating Permanent Account Number (PAN) or Aadhaar.
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.
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
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.”.
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.
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.
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” shallbe 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:”.
In section 41 of the Customs Act, 1962 [52 of 1962](hereinafter referred to as the Customs Act), in sub-section (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 offi
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 thereof
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
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 un
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, [22 of 1992.] and such instrument is utilised under this Act, where duty relatable to such utilisation of instrument exceeds fifty lakh rupees,”;
(iii) in sub-
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 c
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.
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.’.
In section 117 of the Customs Act, for the words “one lakh rupees”, the words “four lakh rupees” shall be substituted.
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.
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 rel
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.
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.”.
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) 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 [52 of 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 forc
(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 sub-section (1) of section 25 of the Customs Act, 1962 and subsection (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
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 2nd August, 1976, which was issued in exercise of powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 [52 of 1962] and sub-section (12) of section 3 of the Customs Tariff Act, 1975 [51 of 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.
In section 9 of the Customs Tariff Act, 1975 [51 of 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.”.
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 [52 of 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.”.
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 Official Gazette, appoint.
(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 [51 of 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 ref
(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 [51 of 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 s
In the Fourth Schedule to the Central Excise Act, 1944 [1 of 1944], in Chapter 27, for the entry in column (4) occurring against tariff item 2709 20 00, the entry “Re.1 per tonne” shall be substituted.
In section 2 of the Central Goods and Services Tax Act, 2017 [12 of 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.
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’’ occurring 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 per
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.”.
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.
(
After section 31 of the Central Goods and Services Tax Act, the following section shall be inserted, namely:––
Facility of digital payment to recipient
“31A. 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.”.
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.
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.”.
In section 49 of the Central Goods and Services Tax Act, after sub-section (9), the following sub-sections 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).”.
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.”.
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 specifie
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.”.
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.”.
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.’.
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 fif
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.
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[43 of 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 [43 of 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
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.
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.
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.
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.
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
(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 [12 of 2017.], issued by the Central Government on the recommendations of the Council, under sub-section (1) of 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 entri
After section 17 of the Integrated Goods and Services Tax Act, 2017 [13 of 2017], the following section shall be inserted, namely:––
Transfer of certain amounts
“17A. 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) 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[13 of 2017], issued by the Central Government on the recommendations of the Council, under sub-section (1) of 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 entri
(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[14 of 2017.], issued by the Central Government on the recommendations of the Council, under sub-section (1) of 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
(1) Notwithstanding anything contained in section 66B of Chapter V of the Finance Act, 1994 [32 of 1994] as it stood prior to its omission vide section 173 of the Central Goods and Services Tax Act, 2017 [12 of 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
(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, [32 of 1994] as it stood prior to its omission vide section 173 of the Central Goods and Services Tax Act, 2017 [12 of 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 years full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on
(1) Notwithstanding anything contained in section 66B of Chapter V of the Finance Act, 1994 [32 of 1994], as it stood prior to its omission vide section 173 of the Central Goods and Services Tax Act, 2017 [12 of 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 ind
(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.
In this Scheme, unless the context otherwise requires,—
(a) “amount declared” means the amount declared by the declarant under section 125;
(b) “amount estimated” means the amount estimated by the designated committee under section 127;
(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 cen
This Scheme shall be applicable to the following enactments, namely:—
(a) the Central Excise Act, 1944 [1 of 1944]or the Central Excise Tariff Act, 1985 [5 of 1986]or Chapter V of the Finance Act, 1994 [32 of 1994]and the rules made thereunder;
(b) the following Acts, namely:—
(i) the Agricultural Produce Cess Act, 1940 [27 of 1940];
(ii) the Coffee Act, 1942 [7 of 1942];
(iii) the Mica Mines Labour Welfare Fund Act, 1946 [22 of 1946];
(iv) the Rubber Act, 1947 [24 of 1947];
(v) the Salt Cess Act, 1953 [49 of 1953];
(vi) the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 [16 of 1955];
(vii) the Additional Duties of Excise (Goods of Special Importance) Act, 1957 [58 of 1957];
(viii) the Mineral Products (Additio
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 pe
(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
(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 da
(1) The designated committee shall verify the correctness of the declaration made by the declarant under section 125 in such manner as may be prescribed:
Provided that no such verification shall be made in case here 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 asmay be prescribed.
(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:
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) 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 issu
(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 pre-deposit or other deposit already paid exceeds the amount payable as indicated in the statement of the designated committee, the difference shall not be refunded.
For the removal of doubts, it is hereby declared that, save as otherwise expressly provided in sub-section (1) of section 124, 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) 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
(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 gu
(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) 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
The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
In the Reserve Bank of India Act, 1934 [2 of 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.”.
After section 45-IC of the principal Act, the following sections shall be inserted, namely:—
Power of Bank to remove directors from office.
“45-ID. (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 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 non-banking 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:
After section 45MA of the principal Act, the following section shall be inserted, namely:—
Power to take action against auditors.
‘‘45MAA. 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.”.
After section 45MB of the principal Act, the following section shall be inserted, namely :-
Resolution of non-banking financial company.
‘45MBA. (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 sepa
After section 45NA of the principal Act, the following section shall be inserted, namely:—
Power in respect of group companies.
“45NAA. (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 [18 of 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 com
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 l
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.
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 [28 of 2005.], shall be registered unless it has net owned funds of not less than rupees one thousand crore.”.
The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
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 therefore 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.
The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
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;’.
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.
The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
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;’.
The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
In the National Housing Bank Act, 1987 [53 of 1987.] (hereafter in this Part referred to as the principal Act), in Chapter V, for the heading, the following heading shall be substituted, namely:—
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
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.
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.
For section 30 of the principal Act, the following section shall be substituted, namely:—
Reserve Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money.
“30. 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.”.
For section 30A of the principal Act, the following section shall be substituted, namely:—
Power of Reserve Bank to determine policy and issue directions.
“30A. (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 deplo
For section 31 of the principal Act, the following section shall be substituted, namely:—
Power of National Housing Bank to collect information from housing finance institutions as to deposits.
“31. (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
For section 32 of the principal Act, the following section shall be substituted, namely:—
Duty of housing finance institution to furnish statements, etc. under this Chapter.
“32. 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.”.
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 subs
For section 33A of the principal Act, the following section shall be substituted, namely:—
Power of Reserve Bank to prohibit acceptance of deposit and alienation of assets.
“33A. (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 i
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.
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.”.
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.
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.
For section 35B of the principal Act, the following section shall be substituted, namely:—
Power of Reserve Bank to exempt housing finance institution.
“35B. (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.”.
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.
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.
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.
In section 51 of the principal Act, for the words “the National Housing Bank,” Amendment wherever they occur, the words “the National Housing Bank or the Reserve Bank” shall be of section 51. substituted.
For section 52A of the principal Act, the following section shall be substituted, namely:—
Power of National Housing Bank and Reserve Bank to impose fine.
“52A. (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 exten
In the Prohibition of Benami Property Transactions Act, 1988 [45 of 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.”.
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 t
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.”.
In section 30 of the principal Act, for the words "the Adjudicating Authority", the words "any authority" shall be substituted with effect from the 1st day of September, 2019.
In section 46 of the principal Act, with effect from the 1st day of September, 2019,—
(a) after sub-section (1), the following sub-section shall be inserted, namely:—
"(1A) Any person aggrieved by an order passed by the authority under section 54A may prefer an appeal in such form along with such fees, as may be prescribed, to the Appellate Tribunal against the said order within a period of forty-five days from the date of that order.";
(b) in sub-section (3), after the word, brackets and figure "sub-section (1)," the words, brackets, figure and letter "or sub-section (1A)" shall be inserted.
In section 47 of the principal Act, for sub-section (1), the following sub-section shall be substituted with effect from the 1st day of September, 2019, namely:—
"(1) The Appellate Tribunal or any authority may, in order to rectify any mistake apparent on the face of the record, amend any order passed by it under the provisions of this Act, within a period of one year from the end of the month in which such order was passed.".
In the principal Act, after section 54, the following sections shall be inserted with effect from the 1st day of September, 2019, namely:—
Penalty for failure to comply with notices or furnish information.
“54A. (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:
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 [43 of 1961].
The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
In the Securities and Exchange Board of India Act, 1992 [15 of 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 Gene
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.
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.
After section 15HA of the principal Act, the following section shall be inserted, namely:—
Penalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board.
‘15HAA. 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 suc
In the Central Road and Infrastructure Fund Act, 2000 [54 of 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.
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.”.
In section 12 of the principal Act, in sub-section (2), clause (c) shall be omitted.
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.
In the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, in section 13, in sub-section (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.
Clause (iii) of section 187, sections 187A, 190A, 190B, 190C and 190D shall come into force from the 1st day of August, 2019.
In the Prevention of Money-laundering Act, 2002 [15 of 2003.] (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 [16 of 1908.]as may be notified by the Central Government;’’.
(iii) in clause (u), the following Explanation shall be inserted, namely:—
'Explanation.—For the removal of doubts, it is hereby clarified that "proceeds of crime" include property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable t
In section 3 of the principal Act, the following Explanation shall be inserted, namely:—
‘‘Explanation.—For the removal of doubts, it is hereby clarified that,—
(i) a person shall be guilty of offence of money-laundering if such personis found to have directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is actually involved in one or more of the following processes or activities connected with proceeds of crime, namely:—
(a) concealment; or
(b) possession; or
(c) acquisition; or
(d) use; or
(e) projecting as untainted property; or
(f) claiming as untainted property, in any manner whatsoever;
(ii) the process or activity connected with proceeds of crime is a continuing activity and continues till such time a person
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.
After section 12A of the principal Act, the following section shall be inserted, namely:––
Enhanced due diligence
‘12AA. (1) Every reporting entity shall, prior to the commencement of each specified transaction,—
(a) verify the identity of the clients undertaking such specified transaction by authentication under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 [18 of 2016.] in such manner and subject to such conditions, as may be prescribed:
Provided that where verification requires authentication of a person who is not entitled to obtain an Aadhaar number under the provisions of the said Act, verification to authenticate the identity of the client undertaking such specified transaction shall be carried out by such other process or mode, as may be prescribed;
(b) take additional steps to examine the
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 sub-section (1) of section 12AA” shall be substituted.
In section 17 of the principal Act, in sub-section (1), the proviso shall be omitted.
In section 18 of the principal Act, in sub-section (1), the proviso shall be omitted.
In section 44 of the principal Act, in sub-section (1),—
(i) after clause (b), the following proviso shall be inserted, namely:—
"Provided that after conclusion of investigation, if no offence of money-laundering is made out requiring filing of such complaint, the said authority shall submit a closure report before the Special Court; or";
(ii) after clause (d), the following Explanation shall be inserted, namely:—
"Explanation.—For the removal of doubts, it is clarified that,—
(i) the jurisdiction of the Special Court while dealing with the offence under this Act, during investigation, enquiry or trial under this Act, shall not be dependent upon any orders passed in respect of the scheduled offence, and the trial of both sets of offences by the same court shall not be construed as joint trial;
(ii) the complaint shal
In section 45 of the principal Act, after sub-section (2), the following Explanation shall be inserted, namely:—
‘Explanation.—For the removal of doubts, it is clarified that the expression "Offences to be cognizable and non-bailable" shall mean and shall be deemed to have always meant that all offences under this Act shall be cognizable offences and non-bailable offences notwithstanding anything to the contrary contained in the Code of Criminal Procedure, 1973 [2 of 1974.], and accordingly the officers authorised under this Act are empowered to arrest an accused without warrant, subject to the fulfilment of conditions under section 19 and subject to the conditions enshrined under this section.'.
After section 72 of the principal Act, the following section shall be inserted, namely:—
Inter- ministerial Co-ordination Committee.
“72A. 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 po
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.’’.
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.’.
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:––
Bank, etc., not to impose charge for using electronic modes of payment.
“10A. Notwithstanding anything contained in this Act, no bank or system provider shall impose, whether directly or indirectly, any charge upon a person making or receiving a payment by using the electronic modes of payment prescribed under section 269SU of the Income-tax Act, 1961 [43 of 1961].”
In the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 [22 of 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 [43 of 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 [43 of 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 pr
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.
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.
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.
In the Finance Act, 2016[28 of 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.”.
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.”.
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.
Section 2 of the Finance Act, 2019 [7 of 2019.] is hereby repealed and shall be deemed never to have been enacted.
THE FIRST SCHEDULE
(See section 2)
PART I INCOME-TAX
THE SECOND SCHEDULE
[See section 83(1)]
THE THIRD SCHEDULE [See section 84(1)]
|
[See section 88(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;
(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 FIFTH SCHEDULE
[See section 88(b)]
In the First Schedule to the Customs Tariff Act,––
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