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An Act to continue the existing rates of income-tax for the financial year 2019-20 and to provide for certain relief to taxpayers and to make amendments in certain enactments.

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

S.1 Short title and commencement

(1) This Act may be called the Finance Act, 2019.

(2) Save as otherwise provided in this Act, sections 2 to 10 shall come into force on the 1st day of April, 2019.

S.2 Income-tax

The provisions of section 2 of, and the First Schedule to, the Finance Act, 2018 (13 of 2018), shall apply in relation to income-tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of April, 2019, as they apply in relation to income-tax for the assessment year, or as the case may be, the financial year commencing on the 1st day of April,

S.3 Income-tax Amendment of section 16

In section 16 of the Income-tax Act, 1961 (43 of 1961) (hereafter in this Chapter referred to as the Income-tax Act), in clause (ia) [as inserted by section 7 of the Finance Act, 2018 (13 of 2018)], for the words "forty thousand", the words "fifty thousand" shall be substituted with effect from the 1st day of April, 2020.

S.4 Amendment of section 23

In section 23 of the Income-tax Act, with effect from the 1st day of April, 2020,—

(a) in sub-section (4),—

(i) in the opening portion, for the words "one house", the words "two houses" shall be substituted;

(ii) in clause (a), for the word "one", the word "two" shall be subs

S.5 Amendment of section 24

 In section 24 of the Income-tax Act, with effect from the 1st day of April, 2020,—

(a) in the first proviso, after the words "the amounts of deduction", the words "or, as the case may be, the aggregate of the amount of deduction" shall be inserted;

(b) in the second proviso, after the words "the amount of deduction", the words "or, as the case may be,

S.6 Amendment of section 54

In section 54 of the Income-tax Act, in sub-section (1), after clause (ii), the following provisos shall be inserted with effect from the 1st day of April, 2020, namely:— 'Provided that where the amount of the capital gain does not exceed two crore rupees, the assessee may, at his option, purchase or construct two residential houses in India, and where such option has been exercised,—

(a) the provisions of this sub-section shall have effe

S.7 Amendment of section 80-IBA

In section 80-IBA of the Income-tax Act, in sub-section (2), in clause (a), for the figures "2019", the figures "2020" shall be substituted with effect from the 1st day of April, 2020.

S.8 Amendment of section 87A

In section 87A of the Income-tax Act, with effect from the 1st day of April, 2020,—

(a) for the words "three hundred fifty thousand", the words "five hundred thousand" shall be substituted;

(b) for the words, "two thousand and five hundred", the words "twelve thousand and five hundred" shall be substituted.

S.9 Amendment of section 194A

In section 194A of the Income-tax Act, in sub-section (3), in clause (i), for the words "ten thousand" wherever they occur, the words "forty thousand" shall be substituted.

S.10 Amendment of section 194-I

In section 194-I of the Income-tax Act, in the first proviso, for the words "one hundred and eighty thousand rupees", the words "two hundred and forty thousand rupees" shall be substituted.

S.11 Commencement of this Part

The provisions of this Part shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

S.12 Amendment of section 2

In section 2 of the Indian Stamp Act, 1899 (2 of 1899) (hereafter in this Part referred to as the principal Act),—

(a) for clause (1), the following clauses shall be substituted, namely:—

 '(1) "allotment list" means a list containing details of allotment of the securities intimated by the issuer to the depository under sub-section (2) of section 8 of

S.13 Amendment of section 4

In section 4 of the principal Act, after sub-section (2), the following sub-section shall be inserted, namely:—

"(3) Notwithstanding anything contained in sub-sections (1) and (2), in the case of any issue, sale or transfer of securities, the instrument on which stamp-duty is chargeable under section 9A shall be the principal instrument for the purpose of this section and no stamp-duty shall be charged on any other instruments relating t

S.14 Substitution of new section for section 8A

For section 8A of the principal Act, the following section shall be substituted, namely:—

'8A. Securities dealt in depository not liable to stamp duty.—Notwithstanding anything contained in this Act or any other law for the time being in force,—

(a) an issuer, by the issue of securities to one or more depositories, shall, in respect of such issue, be charg

S.15 Insertion of new Part AA

In Chapter II of the principal Act, after Part A relating to 'Of the liability of instruments to duty', the following Part shall be inserted, namely:—

'AA.—Of the liability of instruments of transaction in stock exchanges and depositories to duty

Instruments chargeable with duty for transactions in stock exchanges and depositories.—

S.16 Amendment of section 21

In section 21 of the principal Act,—

(a) for the words "the value of such stock or security according to the average price or the value thereof on the day of the date of the instrument.", the words "the market value of such stock or security:" shall be substituted;

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

In section 29 of the principal Act,—

(i) in clause (a),—

(a) the words, figures and brackets "No. 27 (Debenture)" shall be omitted;

(b) the words, figures, brackets and letter "No. 62 (a) (Transfer of shares in an incorporated Company or other body corporate)" shall be omitt

S.18 Insertion of New section 62A

After section 62 of the principal Act, the following section shall be inserted, namely:—

"62A. Penalty for failure to comply with provisions of section 9A.—

(1) Any person who,—

(a) being required under sub-section (1) of section 9A to collect duty, fails to collect the same

S.19 Insertion of new section 73A

After section 73 of the principal Act, the following section shall be inserted, namely:—

"73A. Power of Central Government to make rules.—(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of Part AA of Chapter II.

(2) Without prejudice to the generality of the provisions of sub-section (1),

S.20 Amendment of section 76

In section 76 of the principal Act, after sub-section (2), the following sub-section shall be inserted, namely:—

"(2A) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immed

S.21 Amendment of Schedule I

In Schedule I of the principal Act,—

(i) in Article 19, in column (1),—

(a) after the words "CERTIFICATE OR OTHER DOCUMENT", the brackets, words, figures and letter "(except the certificate or other document covered under Articles 27 and 56A)" shall be inserted;

(b) the word

S.22 Amendment of section 8 of Act 15 of 2003

In section 8 of the Prevention of Money-laundering Act, 2002, in sub-section (3), with effect from such date as the Central Government may, by notification in the Official Gazette, appoint,—

(i) in clause (a), for the words "ninety days", the words "three hundred and sixty-five days" shall be substituted;

(ii) after clause (b), the following Explanation sh