FINANCE (NO.2) ACT, 2004
(1) This Act may be called the Finance (No. 2) Act, 2004.
(2) Save as otherwise provided in this Act, sections 2 to 60 shall lie deemed to have come into force on the 1st day of April, 2004.
(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2004, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax as reduced by the rebate of income-tax calculated under Chapter VIII-A of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income-tax Act) shall be increased by a surcharge for 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 fifty thousand rupees, then,--
(a) the net agricultural income shall be taken into account, in the manner pro
In section 2 of the Income-tax Act, in clause (24), after sub-clause (xii), the following sub-clause shall be inserted with effect from the 1st day of April, 2005, namely:--
'(xiii) any sum referred to in clause (v) of sub-section (2) of section 56;'.
In section 7 of the Income-tax Act, after clause (ii), the following clause shall be inserted at the end, namely:--
"(iii) the contribution made, by the Central Government in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD.".
In section 10 of the Income-tax Act,--
(a) in clause (4), in sub-clause (ii), after the proviso, the following proviso shall be inserted with effect from the 1st day of April, 2006, namely:--
"Provided further that nothing contained in this sub-clause shall apply to any income by way of interest paid or credited on or after the 1st day of April, 2005 to the Non-Resident (External) Account of such individual;";
(b) in clause (6BB), for the words, figures and letters "an agreement entered after the 31st day of March, 1997 but before the 1st day of April, 1999 and approved by the Central Government in this behalf, the words, figures and letters "an agreement entered into after the 31st day of March, 1997 but before the 1st day of April, 1999, or entered into after the 31st day of March, 2005 and
In section 12AA of the Income-tax Act, after sub-section (2), the following sub-section shall be inserted at the end, with effect from the 1st day of October, 2004, namely:--
"(3) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) and subsequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution:
Provided that no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard.".
In section 17 of the Income-tax Act, in clause (1), after sub-clause (vii), the following sub-clause shall be inserted, namely:--
"(viii) the contribution made by the Central Government in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD;".
In section 32 of the Income-tax Act, in sub-section (1), in clause (iia), in the first proviso, in clause (B), for the words "twenty-five per cent.", the words "ten per cent." shall be substituted with effect from the 1st day of April, 2005.
In section 33AC of the Income-tax Act, in sub-section (1), after the second proviso, the following proviso shall be inserted with effect from the 1st day of April, 2005, namely:--
"Provided also that no deduction shall be allowed under this section for any assessment year commencing on or after the 1st day of April, 2005.".
In section 35AC of the Income-tax Act, for sub-sections (4) and (5), the following sub-sections shall be substituted with effect from the 1st day of October, 2004, namely:--
"(4) Where an association or institution is approved by the National Committee under sub-section (1), and subsequently--
(i) that Committee is satisfied that the project or the scheme is not being carried on in accordance with all or any of the conditions subject to which approval was granted; or
(ii) such association or institution, to which approval has been granted, has not furnished to the National Committee, after the end of each financial year, a report in such form and setting forth such particulars and within such time as may be prescribed, the National Committee may, at any time, after giving a reasonable opportun
In section 40 of the Income-tax Act, in clause (a), for sub-clause(i) the following shall be substituted, namely:--
(i) any interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938), royalty, fees for technicalservices or other sum chargeableunder this Act, which is payable,--
(A) outside India; or
(B) in India to a non-resident, notbeing a company or to a foreign company, on which tax is deductible at sourceunder Chapter XVII-B and suchtax has not been deducted or, after deduction, has not been paid during theprevious year, or in the subsequentyear before the expiry of the time prescribed under sub-section (1) of section 200:
Provided that where in respect ofany such sum, tax has been deducted in anysu
In section 48 of the Income-tax Act, after the fourth proviso and before the Explanation, the following proviso shall be inserted with effect from the 1st day of April, 2005, namely:--
"Provided also that no deduction shall be allowed in computing the income chargeable under the head "Capital gains" in respect of any sum paid on account of securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004.".'.
In section 56 of the Income-tax Act, in sub-section (2), after clause (iv), the following clause shall be inserted at the end, with effect from the 1st day of April, 2005, namely:--
"(v) where any sum of money exceeding twenty-five thousand rupees is received without consideration by an individual or a Hindu undivided family from any person on or after the 1st day of September, 2004, the whole of such sum:
Provided that this clause shall not apply to any sum of money received--
(a) from any relative; or
(b) on the occasion of the marriage of the individual; or
(c) under a will or by way of inheritance; or
(d) in contemplation of death of the payer. Explanation.
In section 71 of the Income-tax Act, after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of April, 2005, namely:--
'(2A) Notwithstanding anything contained in sub-section (1) or sub-section (2), where in respect of any assessment year, the net result of the computation under the head "Profits and gains of business or profession" is a loss and the assessee has income assessable under the head "Salaries", the assessee shall not be entitled to have such loss set off against such income.'.
After section 80CCC of the Income-tax Act, the following section shall be inserted, namely:--
'80CCD. Deduction in respect of contribution to pension scheme of Central Government.
(1) Where an assessee, being an individual employed by the Central Government on or after the 1st day of January, 2004, has in the previous year paid or deposited any amount in his account under a pension scheme notified or as may be notified by the Central Government, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount so paid or deposited as does not exceed ten per cent. of his salary in the previous year.
(2) Where, in the case of an assessee referred to in sub-section (1), the Central Government mak
In section 80DD of the Income-tax Act, in the Explanation, with effect from the 1st day of April, 2005,--
(a) in clause (c), after the figures "1995", occurring at the end, the words, brackets, letters and figures 'and includes "autism", "cerebral palsy" and "multiple disability" referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999(44 of 1999)' shall be inserted;
(b) in clause (e), after the figures "1995", occurring at the end, the words, brackets, letters and figures 'or such other medical authority as may, by notification, be specified by the Central Government for certifying "autism", "cerebral palsy", "multiple disabilities", "person with disability" and "severe disability" referred to in clauses (a), (c),
In section 80-IA of the Income-tax Act, with effect from the 1st day of April, 2005.--
(a) in sub-section (2), after the words "generates power or commences transmission or distribution of power", the words "or undertakes substantial renovation and modernisation of the existing transmission or distribution lines" shall be inserted;
(b) in sub-section (3),--
(A) in the opening portion, for the words, brackets and figures "undertaking referred to in clause (iv)", the words, brackets and figures "undertaking referred to in clause (ii) or clause (iv)"shall be substituted;
(B) after clause (ii) and before Explanation 1, the following proviso shall be inserted, namely:--
"Provided that nothing contained in this
In section 80-IB of the Income-tax Act, with effect from the 1st day of April, 2005,--
(a) in sub-section (1), for the brackets, figures, word and letter "(11) and (11A)", the brackets, figures, letters and word "(11), (11A) and (11B)"shall be substituted;
(b) in sub-section (4), after me third proviso, the following provisos shall be inserted, namely--
'Provided also that in the case of an industrial undertaking in the State of Jammu and Kashmir, the provisions of the first proviso shall have effect as if for the figures, letters and words "31st day of March, 2004", the figures, letters and words "31st day of March, 2005" had been substituted:
Provided also that no deduction under this sub-section shall be allowed to an industrial undertaking in th
In section 80U of the Income-tax Act, for the Explanation, the following Explanation shall be substituted with effect from the 1st day of April, 2005, namely:--
"Explanation.--For the purposes of this section,--
(a) "disability" shall have the meaning assigned to it in clause (i) of section 2 of the Persons With Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995(1 of 1996), and includes "autism", "cerebral palsy" and "multiple disabilities" referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999(44 of 1999);
(b) "medical authority" means the medical authority as referred to in clause (p) of section 2 of the Persons With Disabilitie
Section 19 of the Finance (No. 2) Act, 2004, primarily deals with provisions related to the disclosure of avoidance schemes under the Value Added Tax Act 1994, and it also forms part of broader amendments introduced by the Act concerning tax compliance and anti-avoidance measures.
Section 19, along with Schedule 2, inserts and amends provisions related to the disclosure of avoidance schemes (Section 58A) in the VAT Act. It mandates the disclosure of certain schemes designed to avoid tax, requiring entities to report such schemes to tax authorities.
Section 19 applies to all taxpayers involved in designing, implementing, or benefiting from avoidance schemes under the VAT Act. It aims to enhance transparency and curb tax evasion through disclosure obligations, extending to schemes that may not be outright illegal but are structured to avoid tax liabilities.
While specific penalties are not elaborated in the excerpt, references suggest that failure to disclose schemes can lead to penalties and prosecution, including rigorous imprisonment for certain offenses related to tax evasion and concealment, as indicated in other provisions of the Finance Act .
Note: The specific detailed provisions of Section 19 and penalties are inferred from the context of amendments and related provisions in the Finance Act, as explicit details are limited in the provided sources.
In section 87 of the Income-tax Act, with effect from the 1st day of April, 2005,--
(a) in sub-section (1), for the words, figures and letters "sections 88, 88A, 88B and 88C", the words, figures and letters "sections 88, 88A, 88B, 88C, 88D and 88E" shall be substituted;
(b) in sub-section (2), after the words, figures and letter "or section 88C", the words, figures and letters "or section 88D or section 88E" shall be inserted.
In section 88 of the Income-tax Act, in sub-section (2), in clause (xv), in sub-clause (c), after item (6), the following item shall be inserted with effect from the 1st day of April, 2005, namely:--
"(6A) the assessee's employer where such employer, is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or".
After section 88C of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2005, namely:--
88D. An assessee, being an individual resident in India,--
(a) whose total income does not exceed one hundred thousand rupees, shall be entitled to a deduction from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent. of such income-tax;
(b) whose to total income exceeds one hundred thousand rupees and the income-tax payable on such total income (as computed before allowing the deductions under this Chapter) exceeds the amount by which such total income is in excess of one hundred thousand rupees, shall be entitle
After section 88D of the Income-tax Act, as so inserted, the following section shall be inserted with effect from the 1st day of April, 2005, namely:--
88E. Rebate in rebate in respect of securities transaction tax.
(1) Where the total income of an assessee in a previous year includes any income, chargeable under the head "Profits and gains of business or profession", arising from taxable securities transactions, he shall be entitled to a deduction, from the amount of income-tax on such income arising from such transactions, computed in the amnner provided in sub-section (2), of an amount equal to the securities transaction tax paid by him in respect of the taxable securities transactions entered into in the course of his business during that previous year;
Provided that no deduction under thi
In section 90 of the Income-tax Act, in the Explanation, the words and brackets", where such foreign company has not made the prescribed arrangement for declaration and payment within India, of the dividends (including dividends on preference shares) payable out of its income in India" shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1962.
In section 94 of the Income-tax Act, with effect from the 1st day of April, 2005,--
(a) in sub-section (7), for clause (b), the following clause shall be substituted, namely:--
"(b) such person sells or transfers--
(i) such securities within a period of three months after such date; or (ii) such unit within a period of nine months after such date;";
(b) after sub-section (7), the following sub-section shall be inserted, namely:--
"(8) Where--
(a) any person buys or acquires any units within a period of three months prior to the record date;
(b) such person is allotted additional units without any payment on the basis
After section 111 of the Income-tax Act, the following section shall be inserted, with effect from the 1st day of April, 2005, namely:--
111A Tax on short tern capital gains in certain cases.
(1) Where the total income of an assessee includes any income chargeable under the head "Capital gains", arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund and--
(a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and
(b) such transaction is chargeable to securities transaction tax under that Chapter, the tax payable by the assessee on the total income shall be the aggrega
In section 115AD of the Income-tax Act, in sub-section (1), in clause (ii), the following proviso shall be inserted with effect from the 1st day of April, 2005, namely:--
"Provided that the amount of income-tax calculated on the income by way of short-term capital gains referred to in section 111A shall be at the rate of ten per cent.;".
In section 115JB of the Income-tax Act, in the Explanation, with effect from the 1st day of April, 2005,--
(a) in clause (f), for the word and figures "section 10", the words, figures, brackets and letter "section 10 [other than the provisions contained in clause (23G) thereof]" shall be substituted;
(b) in clause (ii), for the words and figures "provisions of section 10", the words, figures, brackets and letter "provisions of section 10 [other than the provisions contained in clause (23G) thereof]" shall be substituted.
In section 115R of the Income-tax Act, in sub-section (2),--
(a) for the words "at the rate of twelve and one-half per cent.", the following shall be substituted with effect from the 9th day of July. 2004, namely:--
"at the rate of--
(i) twelve and one-half per cent. on income distributed to any person being an individual or a Hindu undivided family; and
(ii) twenty per cent. on income distributed to any other person:";
(b) in the proviso, the words, figures and letters "for a period of one year commencing from the 1st day of April, 2003" shall be omitted.
After Chapter XII-F of the Income-tax Act, the following Chapter shall be inserted with effect from the 1st day of April, 2005, namely:--
Chapter XII-G
SPECIAL PROVISIONS RELATING TO INCOME OF SHIPPING COMPANIES
A.--Meaning of certain expressions
115V. Definitions
In this Chapter, unless the context otherwise requires,--
(a) "bareboat charter" means hiring of a ship for a stipulated period on terms which give the charterer possession and control of the ship, including the right to appoint the master and crew;
(b) "bareboat charter-cum-demise" means a bareboat charter where the ownership of the ship is intended to be
In section 119 of the Income-tax Act, in sub-section (2), in clause (a), after the bracket and words "(whether by way of relaxation of any of the provisions of sections", the figures and letters "115P, 115S," shall be inserted with effect from the 1st day of October, 2004.
In section 139 of the Income-tax Act, in sub-section (9) in the Explanation, in clause (c), in sub-clause (i), for the words "deducted at source and", the words, figures and letters "deducted at source before the 1st day of April, 2005 and" shall be substituted with effect from the 1st day of April, 2005.
In section 139A of the Income-tax Act,--
(a) in sub-section (5A), the first proviso shall be omitted with effect from the 1st day of April, 2005;
(b) in sub-sections (5C) and (5D), for the word "buyer", the words "buyer or licensee or lessee" shall be substituted with effect from the 1st day of October, 2004.
After section 142 of the Income-tax Act, the following section shall be inserted and shall be deemed to have been inserted with effect from the 15th day of November, 1972, namely:--
'142A. Estimate by Valuation Officer in certain cases :
(1) For the purposes of making an assessment or re-assessment under this Act, where an estimate of the value of any investment referred to in section 69 or section 69B or the value of any bullion Jewellery or other valuable article referred to in section 69A or section 69B is required to be made, the Assessing Officer may require the Valuation Officer to make an estimate of such value and report the same to him.
(2) The Valuation Officer to whom a reference is made under sub-section (1) shall, for the purposes of dealing with such reference, have all the power
In section 153 of the Income-tax Act, in Explanation 1, with effect from the 1st day of October, 2004,--
(a) in clause (v), for the words "that section,", the words "that section, or" shall be substituted;
(b) after clause (v) and before the words "shall be excluded", the following clauses shall be inserted, namely;--
"(vi) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the order rejecting the application is received by the Commissioner under sub-section (3) of section 245R, or
(vii) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of se
In section 153B of the Income-tax Act, in sub-section (1), in the Explanation, with effect from the 1st day of October, 2004,--
(a) in clause (iv), for the words "that section,", the words "that section, or" shall be substituted;
(b) after clause (iv) and before the words "shall be excluded", the following clauses shall be inserted, namely:--
"(v) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the order rejecting the application is received by the Commissioner under sub-section (3) of section 245R, or
(vi) the period commencing from the date on which an application is made before the Authority for Advance Rulings unde
In section 194C of the Income-tax Act, in sub-section (3), for clause (i), the following clause shall be substituted with effect from the 1st day of October, 2004, namely:--
"(i) the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor or sub-contractor, if such sum does not exceed twenty thousand rupees:
Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds fifty thousand rupees, the person responsible for paying such sums referred to in sub-section (1) or, as the case may be, sub-section (2) shall be liable to deduct income-tax under this section; or".
After section 194L of the Income-tax Act, the following section shall be inserted with effect from the 1st day of October, 2004, namely:--
'194LA. Payment of compensation on acquisition of certain immovable property:
Any person responsible for paying to a resident any sum, being in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory acquisition, under any law for the time being in force, of any immovable property (other than agricultural land), shall, 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 ten per cent. of such sum as income-tax thereon:
Provided that no deduction shall be made under this section where the amo
In section 197 of the Income-tax Act, in sub-section (1), for the figures and letters "194C, 194D, 194G, 194H, 194-I, 194J, 194K", the figures and letters "194C, 194D, 194G, 194H, 194-I, 194J, 194K, 194LA" shall be substituted with effect from the 1st day of October, 2004.
In section 198 of the Income-tax Act, for the portion beginning with the words and figures "the provisions of sections 192" and ending with the word, figures and letter "section 196D", the words "the foregoing provisions of this Chapter" shall be substituted with effect from the 1st day of October, 2004.
In section 199 of the Income-tax Act,--
(a) in sub-section (1), for the portion beginning with the words and figures "the provisions of sections 192" and ending with the word, figures and letter "section 196D", the words "the foregoing provisions of this Chapter" shall be substituted with effect from the 1st day of October, 2004;
(b) after sub-section (2), the following sub-section shall be inserted at the end with effect from the 1st day of April, 2005, namely:--
"(3) Where any-deduction is made in accordance with the foregoing provisions of this Chapter on or after the 1st day of April, 2005 and paid to the Central Government, the amount of tax deducted and specified in the statement referred to in section 203AA shall be treated as tax paid on behalf of the persons referred to in sub-section
In section 200 of the Income-tax Act,--
(a) in sub-section (1), for the portion beginning with the words and figures "the provisions of sections 192" and ending with the word, figures and letter "section 196D", the words "the foregoing provisions of this Chapter" shall be substituted with effect from the 1st day of October, 2004;
(b) after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of April, 2005, namely:--
"(3) Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time, prepare
In section 202 of the Income-tax Act, for the portion beginning with the word and figures "sections 192" and ending with the word, figures and letter "section 196D", the words "the foregoing provisions of this Chapter" shall be substituted with effect from the 1st day of October, 2004.
In section 203 of the Income-tax Act,--
(a) in sub-section (1), for the portion beginning with the words and figures "the provisions of sections 192" and ending with the word, figures and letter "section 196D", the words "the foregoing provisions of this Chapter" shall be substituted with effect from the 1st day of October, 2004;
(b) after sub-section (2), the following sub-section shall be inserted at the end with effect from the 1st day of April, 2005, namely:--
"(3) Where the tax has been deducted or paid in accordance with the foregoing provisions of this Chapter on or after the 1st day of April, 2005, there shall be no requirement to furnish a certificate referred to in sub-section (1) or, as the case may be, sub-section (2).".
For section 203A of the Income-tax Act, the following section shall be substituted with effect from the 1st day of October, 2004, namely:--
'203A. Tax deduction and collection account number:
(1) Every person, deducting tax or collecting tax in accordance with the provisions of this Chapter, who has not been allotted a tax deduction account number or, as the case may be, a tax collection account number, shall, within such time as may be prescribed, apply to the Assessing Officer for the allotment of a "tax deduction and collection account number".
(2) Where a "tax deduction account number" or, as the case may be, a "tax collection account number" or a "tax deduction and collection account number" has been allotted to a person, such person shall quote such number--
&n
After section 203A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2005, namely:--
"203AA. Furnishing of statement of tax deducted:
The prescribed income-tax authority or the person authorised by such authority referred to in sub-section (3) of section 200, shall, within the prescribed time after the end of each financial year beginning on or after the 1st day of April, 2005 prepare and deliver to every person from whose income the tax has been deducted or in respect of whose income the tax has been paid a statement in the prescribed form specifying the amount of tax deducted or paid and such other particulars as may be prescribed.".
In section 204 of the Income-tax Act, for the portion beginning with the word and figures "sections 192" and ending with the words and figures "sections 195 to 203", the words "the foregoing provisions of this Chapter" shall be substituted with effect from the 1st day of October, 2004.
In section 205 of the Income-tax Act, for the portion beginning with the word and figures "sections 192" and ending with the word, figures and letter "section 196D", the words "the foregoing provisions of this Chapter" shall be substituted with effect from the 1st day of October, 2004.
In section 206 of the Income-tax Act;--
(a) in sub-section (1), with effect from the 1st day of October, 2004,--
(i) for the words "prescribed income-tax authority", the words "prescribed income-tax authority or such other authority or agency as may be prescribed" shall be substituted;
(ii) the following proviso shall be inserted, namely:--
"Provided that the Board may, if it considers necessary or expedient so to do, frame a scheme for the purposes of filing such returns with such other authority or agency referred to in this sub-section.";
(b) in sub-section (2), with effect from the 1st day of April, 2005,--
(i) for the words "other than the principal office
In section 206C of the Income-tax Act,--
(a) after sub-section (1B), the following sub-section shall be inserted with effect from the 1st day of October, 2004, namely:--
'(1C) Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as "licensee or lessee") for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee in cash or by the issue of a cheque or draft or by any other mode, whichever i
In section 206CA of the Income-tax Act, after sub-section (2), the following proviso shall be inserted with effect from the 1st day of October, 2004, namely:--
"Provided that the provisions of this section shall not apply on or after the 1st day of October, 2004.".
In section 246A of the Income-tax Act, in sub-section (1), in clause (a), in the opening portion, for the words "an order against the assessee", the words, brackets, figures and letters "an order passed by a Joint Commissioner under clause (ii) of sub-section (3) of section 115VP or an order against the assessee" shall be substituted with effect from the 1st day of October, 2004.
In section 245RR of the Income-tax Act, for the words, brackets, figures and letter "under sub-section (1) of section 245R", the words, brackets, figures and letter "under sub-section (1) of section 245Q" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of October, 1998.
In section 253 of the Income-tax Act, in sub-section (1), after clause (b), the following clause shall be inserted with effect from the 1st day of October, 2004, namely:--
"(ba) an order passed by an Assessing Officer under sub-section (1) of section 115VZC; or".
After section 271F of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2005, namely:--
"271FA. Penalty for failure to furnish annual information return: If a person who is required to furnish an annual information return, as required under sub-section (1) of section 285BA, fails to furnish such return within the time prescribed under that sub-section, the income-tax authority prescribed under the said sub-section may direct that such person shall pay, by way of penalty, a sum of one hundred rupees for even, day during which the failure continues.".
In section 272A of the Income-tax Act, in sub-section (2), after clause (j), the following clause shall be inserted with effect from the 1st day of April. 2005, namely:--
"(k) to deliver or cause to be delivered a copy of the statement within the time specified in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C,".
In section 272B of the Income-tax Act, in sub-section (2), after the word, brackets, figure and letter "sub-section (5A)", the words, brackets, figure and letter "or sub-section (5C)" shall be inserted with effect from the 1st day of April, 2005.
In section 272BBB of the Income-tax Act, in sub-section (1), for the words "fails to comply", the words, figures and letters "fails to comply before the 1st day of October, 2004" shall be substituted with effect from the 1st day of October, 2004.
In section 273B of the Income-tax Act, for the word, figures and letter "section 271F," the words, figures and letters "section 271F, section 271FA," shall be substituted with effect from the 1st day of April, 2005.
After section 277 of the Income-tax Act, the following section shall be inserted with effect from the 1st day of October, 2004, namely:--
"277A. Falsification of books of account or document, etc.:
If any person (hereafter in this section referred to as the first person) wilfully and with intent to enable any other person (hereafter in this section referred to as the second person) to evade any tax or interest or penalty chargeable and imposable under this Act, makes or causes to be made any entry or statement which is false and which the first person either knows to be false or does not believe to be true, in any books of account or other document relevant to or useful in any proceedings against the first person or the second person, under this Act, the first person shall be punishable with rigorous imprisonment for a term which shall n
In section 278B of the Income-tax Act, after sub-section (2) and before the Explanation, the following sub-section shall be inserted with effect from the 1st day of October, 2004, namely:--
"(3) Where an offence under this Act has been committed by a person, being a company, and the punishment for such offence is imprisonment and fine, then, without prejudice to the provisions contained in sub-section (1) or sub-section (2), such company shall be punished with fine and every person, referred to in sub-section (1), or the director, manager, secretary or other officer of the company referred to in sub-section (2), shall be liable to be proceeded against and punished in accordance with the provisions of this Act.".
In Section 279 of the Income-tax Act, in sub-section (1), for the words and figures "section 277 or section 278", the words, figures and letter "section 277, section 277A or section 278" shall be substituted with effect from the 1st day of October, 2004.
For section 285BA of the Income-tax Act, the following section shall be substituted with effect from the 1st day 51 April, 2005, namely:--
'285BA. Obligation to furnish annual information return:
(1) Any person, being--
(a) an assessee; or
(b) the prescribed person in the case of an office of Government; or
(c) a local authority or other public body or association; or
(d) the Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908(16 of 1908); or
(e) the registering authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988(59 of 1988); or
In the Thirteenth Schedule to the Income-tax Act, with effect from the 1st day of April, 2005,--
(a) for the brackets, words, figures and letters "[See section 80-IC(2)]", the brackets, words, figures and letters "[See sections 80-IB(4) and 80-IC(2)]" shall be substituted;
(b) after Part B, the following Part shall be inserted, namely:--
"PART C
FOR THE STATE OF JAMMU AND KASHMIR
S.No. Article or thing
1. Cigarettes/cigars of tobacco, manufactured tobacco and substitutes
2. Distilled/brewed alcoholic drinks
3. Aerated branded beverages and their concentrates".
Wealth-tax
In section 35HA of the Wealth-tax Act, 1957, after sub-section (2), the following subsection shall be inserted with effect from the 1st day of October, 2004, namely:--
"(3) Where an offence under this Act has been committed by a person, being a company and such offence is punishable with imprisonment and fine, then, without prejudice to the provisions contained in sub-section (1) or sub-section (2), such company shall be punished with fine and every person, referred to in sub-section (1) or the director, manager, secretary or other officer of the company referred to in sub-section (2), shall be liable to be proceeded against and punished in accordance with the provisions of this Act.".
In section 41 of the Customs Act, 1962(52 of 1962) (hereinafter referred to as the Customs Act), in sub-section (1), the proviso shall be omitted.
After section 122 of the Customs Act, the following section shall be inserted, namely:--
"122A. Adjudication Procedure:
(1) The adjudicating authority shall, in any proceeding under this Chapter or any other provision of this Act, give an opportunity of being heard to a party in a proceeding, if the party so desires.
(2) The adjudicating authority may, if sufficient cause is shown at any stage of proceeding referred to in sub-section (1), grant time, from time to time, to the parties or any of them and adjourn the hearing for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during the proceeding."
In section 128 of the Customs Act, after sub-section (1), the following sub-section shall be inserted, namely:--
"(1A) The Commissioner (Appeals) may, if sufficient cause is shown at any stage of hearing of an appeal, grant time, from time to time, to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal."
In section 129A of the Customs Act, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, for sub-section (6), the following sub-sections shall be substituted, namely:--
"(6) An appeal to the Appellate Tribunal shall be in such form and shall be verified in such manner as may be specified by rules made in this behalf and shall, irrespective of the date of demand of duty and interest or of levy of penalty in relation to which the appeal is made, be accompanied by a fee of,--
(a) where the amount of duty and interest demanded and penalty levied by any officer of customs in the case to which the appeal relates is five lakh rupees or less, one thousand rupees;
(b) where the amount of duty and interest demanded and penalty levied by any officer
In section 129B of the Customs Act, after sub-section (1), the following sub-section shall be inserted, namely:--
"(1A) The Appellate Tribunal may, if sufficient cause is shown, at any stage of hearing of an appeal, grant time to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal.
In section 137 of the Customs Act, after sub-section (2), the following sub-section shall be inserted, namely:--
"(3) Any offence under this Chapter may, either before or after the institution of prosecution, be compounded by the Chief Commissioner of Customs on payment, by the person accused of the offence to the Central Government, of such compounding amount as may be specified by rules.".
In section 142 of the Customs Act, in sub-section (1), the following proviso shall be inserted at the end, namely:--
"Provided that where the person (hereinafter referred to as predecessor), by whom any sum payable under this Act including the amount required to be paid to the credit of the Central Government under section 28B is not paid, transfers or otherwise disposes of his business or trade in whole or in part, or effects any change in the ownership thereof, in consequence of which he is succeeded in such business or trade by any other person, all goods, materials, preparations, plants, machineries, vessels, utensils, implements and articles in the custody or possession of the person so succeeding may also be attached and sold by the proper officer, after obtaining written approval from the Commissioner of Customs, for the purposes of recovering the amount so payable by such p
In section 156 of the Customs Act, in sub-section (2), after clause (g), the following clause shall be inserted, namely:--
"(h) the amount to be paid for compounding under sub-section (3) of section 137.".
(1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 83/2004-Customs (N.T.), dated the 30th June, 2004, published in the Official Gazette vide No.G.S.R. 393(E), dated the 30th June, 2004 (hereinafter referred to as the said notification) shall, for the purposes of hundred per cent. export-oriented undertakings, be deemed to be, and to have always been, for all purposes, in force retrospectively on and from the 11th day of May, 1982 and accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority--
(a) any action taken or anything done by a Central Excise Officer appointed by the said notification as an officer of customs to discharge the duties of an officer of customs in respect of hundred per cent. export-oriented undertakings, on and from the 11th day of May, 1982 to 3
In section 3 of the Customs Tariff Act, 1975(51 of 1975) (hereinafter referred to as the Customs Tariff Act), in sub-section (2), in clause (ii), the following amendments shall be deemed to have been made on and from the 9th day of July, 2004, namely:--
(a) in sub-clause (d), the word "and", occuring at the end, shall be omitted;
(b) after sub-clause (d), the following sub-clause shall be inserted, namely:--
"(dd) the Education Cess on imported goods referred to in section 94 of the Finance (No. 2) Act, 2004; and".
In section 9A of the Customs Tariff Act, in sub-section (5), for the words "relating to non-levy, short-levy, refunds and appeals", the words "relating to, the date for determination of rate of duty, non-levy, short-levy, refunds, interest, appeals, offences and penalties" shall be substituted.
In section 9C of the Customs Tariff Act, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, after sub-section (1), the following sub-sections shall be inserted, namely:--
"(1A) An appeal under sub-section (1) shall be accompanied by a fee of fifteen thousand rupees.
(1B) Every application made before the Appellate Tribunal,--
(a) in an appeal under sub-section (1), for grant of stay or for rectification of mistake or for any other purpose; or
(b) for restoration of an appeal or an application, shall be accompanied by a fee of five hundred rupees.".
In the First Schedule to the Customs Tariff Act,--
(i) in Chapter 11, in tariff items 1108 1200, 1108 1400, 1108 19 10 and 1108 19 90, for the entry in column (4) occurring against each of them, the entry "50%" shall be substituted;
(ii) in Chapter 19, in tariff item 1903 00 00, for the entry in column (4), the entry "50%" shall be substituted;
(iii) in Chapter 29, in tariff item 2922 42 20, for the entry in column (2), the entry "--Monosodium glutamate" shall be substituted;
(iv) in Chapter 35, in tariff items 3505 10 10 and 3505 10 90, for the entry in column (4) occurring against each of them, the entry "50%" shall be substituted.
Section 9A of the Central Excise Act, 1944(1 of 1944) (hereinafter referred to as the Central Excise Act) shall be re-numbered as sub-section (1) thereof and after sub-section (1) as so renumbered, the following sub-section shall be inserted, namely:--
"(2) Any offence under this Chapter may, either before or after the institution of prosecution, be compounded by the Chief Commissioner of Central Excise on payment, by the person accused of the offence to the Central Government, of such compounding amount as may be prescribed.".
In section 11 of the Central Excise Act, the following proviso shall be inserted at the end, namely:-
"Provided that where the person (hereinafter referred to as predecessor) from whom the duty or any other sums of any kind, as specified in this section, is recoverable or due, transfers or otherwise disposes of his business or trade in whole or in part, or effects any change in the ownership thereof, in consequence of which he is succeeded in such business or trade by any other person, all excisable goods, materials, preparations, plants, machineries, vessels, utensils, implements and articles in the custody or possession of the person so succeeding may also be attached and sold by such officer empowered by the Central Board of Excise and Customs, after obtaining written approval from the Commissioner of Central Excise, for the purposes of recovering such duty or other sums recover
After section 33 of the Central Excise Act, the following section shall be inserted, namely:--
"33A. Adjudication procedure:
(1) The Adjudicating authority shall, in any proceeding under this Chapter or any other provision of this Act, give an opportunity of being heard to a party in a proceeding, if the party so desires.
(2) The Adjudicating authority may, if sufficient cause is shown, at any stage of proceeding referred to in sub-section (1), grant time, from time to time, to the parties or any of them and adjourn the hearing for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during the proceeding.".
In section 35 of the Central Excise Act, after sub-section (1), the following sub-section shall be inserted, namely:--
"(1A) The Commissioner (Appeals) may, if sufficient cause is shown at any stage of hearing of an appeal, grant time, from time to time, to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal.".
In section 35B of the Central Excise Act, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, for sub-section (6), the following sub-sections shall be substituted, namely:--
"(6) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, irrespective of the date of demand of duty and interest or of levy of penalty in relation to which the appeal is made, be accompanied by a fee of,--
(a) where the amount of duty and interest demanded and penalty levied by any Central Excise Officer in the case to which the appeal relates is five lakh rupees or less, one thousand rupees;
(b) where the amount of duty and interest demanded and penalty levied by any Central Excise Officer in t
In section 35C of the Central Excise Act, after sub-section (1), the following sub-section shall be inserted, namely:--
"(1A) The Appellate Tribunal may, if sufficient cause is shown, at any stage of hearing of an appeal, grant time, from time to time, to the parties or any of them and adjourn the hearing of the appeal for reasons to be recorded in writing:
Provided that no such adjournment shall be granted more than three times to a party during hearing of the appeal.".
In section 37 of the Central Excise Act, in sub-section (2),--
(a) after clause (ic), the following clause shall be inserted, namely:--
"(id) provide for the amount to be paid for compounding under sub-section (2) of section 9A;";
(b) after clause (xvia), the following clause shall be inserted, namely:--
"(xviaa) provide for credit of service tax leviable under Chapter V of the Finance Act, 1994(32 of 1994), paid or payable on taxable services used in, or in relation to, the manufacture of excisable goods;".
In the Third Schedule to the Central Excise Act, against serial No. 91, in column (3), in the entry, the words "other than monochrome," shall be omitted.
(1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 38/2001-Central Excise (N.T.), dated the 26th June, 2001, published in the Official Gazette vide No. G.S.R. 467(E), dated the 26th June, 2001, (hereinafter referred to as the principal notification), as amended by the notification of the Government of India in the erstwhile Ministry of Finance and Company Affairs (Department of Revenue) No. 32/2002-Central Excise (N.T.), dated the 17th September, 2002, published in the Official Gazette vide No. G.S.R. 655(E), dated the 17th September, 2002 Hereinafter referred to as the first amendment and the notification of the Government of India in the erstwhile Ministry of Finance and Company Affairs (Department of Revenue) No. 1/2003-Central Excise (N.T.), dated the 13th January, 2003, published in the Official Gazette vide No. GS.R. 27(E), dated the 13th January, 2003 (hereinafter ref
(1) In the CENVAT Credit Rules, 2002 made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act, 1944(1 of 1944), in rule 3, in sub-rule (6), in clause (b), the Explanation shall stand amended and shall be deemed to have been amended retrospectively in the manner as specified in the Second Schedule, on and from the corresponding date mentioned in column (3) 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 Explanation shall be deemed to be, and to have always been, for all purposes, as validly and effectively, taken or done as if the said Explanation as amended by this sub-section had been in force at all material times. .
(2) For the purposes of sub-se
Central Excise Tariff
In the First Schedule to the Central Excise tariff Apt, 1985,--
(i) in Chapter 50, in sub-heading Nos. 5004.11, 5004.90, 5005.10, 5005.20 and 5005.90, for the entry in column (4) occurring against each of them, the entry "8%" shall be substituted;
(ii) in Section XV, after NOTE 9, the following NOTE shall be inserted, namely:--
"10. In relation to the products of this Section, the process of drawing or redrawing a rod, wire or any other similar article, into wire shall amount to 'manufacture'.";
(iii) in Chapter 90, in sub-heading No. 9001.10, for the entry in column (4), the entry "8%" shall be substituted;
(iv) in Chapter 95, in sub-head
In the Finance Act, 1994,--
(a) in section 65,--
(i)after clause (3), the following clauses shall be inserted, namely:--
'(3a)"aircraft" has the meaning assigned to it in clause (1) of section 2of the Aircraft Act, 1934(22 of 1934);
(3b)"aircraft operator" means any commercial concern which provides the service of transport of goods by aircraft;
(3c)"airport" has the meaning assigned to it in clause (b) of section 2of the Airports Authority of India Act, 1994(55 of 1994);
(3d)"airports authority" means the Airports Authority of India constituted under section 3 of the Airports Authority of India Act, 1994(55 of1994) and also includes any person having the charg
(1) Without prejudice to the provisions of sub-section (11) of section 2, there shall be levied and collected, in accordance with the provisions of this Chapter as surcharge for purposes of the Union, a cess to be called the Education Cess, to fulfil the commitment of the Government to provide and finance universalised quality basic education.
(2) The Central Government may, after due appropriation made by Parliament by law in this behalf, utilise, such sums of money of the Education Cess levied under sub-section (11) of section 2 and this Chapter for the purposes specified in sub-section (1), as it may consider necessary.
The words and expressions used in this Chapter and defined in the Central Excise Act, 1944(1 of 1944), the Customs Act, 1962(52 of 1962) or Chapter V of the Finance Act, 1994(32 of 1994), shall have the meanings respectively assigned to them in those Acts or Chapter, as the case may be.
(1) The Education Cess levied under section 91, in the case of goods specified in the First Schedule to the Central Excise Tariff Act, 1985(5 of 1986), being goods manufactured or produced, shall be a duty of excise (in this section referred to as the Education Cess on excisable goods), at the rate of two per cent., calculated on the aggregate of all duties of excise (including special duty of excise or any other duty of excise but 1[excluding Education Cess, and Secondary and Higher Education Cess levied under section 136 of the Finance Act, 2007] on excisable goods) which are levied and collected by the Central Government in the Ministry of Finance (Department of Revenue), under the provisions of the Central Excise Act, 1944(1 of 1994) or under any other law for the time being in force.
(2) The Education Cess on excisable goods shall be in addition to any other duties of excise c
(1) The Education Cess levied under section 91, in the case of goods specified in the First Schedule to the Customs Tariff Act, 1975(51 of 1975), being goods imported into India, shall be a duty of customs (in this section referred to as the Education Cess on imported goods), at the rate of two per cent., calculated on the aggregate of duties of customs which are levied and collected by the Central Government in the Ministry of Finance (Department of Revenue), under section 12 of the Customs Act, 1962(52 of 1962) and any sum chargeable on such goods under any other law for the time being in force, as an addition to, and in the same manner as, a duty of customs, but not including--
(a) the safeguard duty referred to in sections 8B and 8C of the Customs Tariff Act, 1975(51 of 1975);
(b) the countervailing duty referred to in section 9 of
(1) The Education Cess levied under section 91, in the case of all services which are taxable services, shall be a tax (in this section referred to as the Education Cess on taxable services) at the rate of two per cent, calculated on the tax which is levied and collected under section 66 of the Finance Act, 1994(32 of 1994).
(2) The Education Cess on taxable services shall be in addition to the tax chargeable on such taxable services, under Chapter V of the Finance Act, 1994(32 of 1994).
(3) The provisions of Chapter V of the Finance Act, 1994(32 of 1994) and the rules made thereunder, including those relating to refunds and exemptions from tax and imposition of penalty shall, as far as may be, apply in relation to the levy and collection of the Education Cess on taxable services, as they apply in relation to the levy and collection of t
(1) This Chapter extends to the whole of India.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
(3) It shall apply to taxable securities transactions entered into on or after the commencement of this Chapter.
In this Chapter, unless the context otherwise requires.--
(1) "Appellate Tribunal" means the Appellate Tribunal constituted under section 252 of the Income-tax Act, 1961(43 of 1961);
(2) "Assessing Officer" means the Income-tax Officer or Assistant Commissioner of Income-tax or Deputy Commissioner of Income-tax or Joint Commissioner of Income-tax or Additional Commissioner of Income-tax who is authorised by the Board to exercise or perform all or any of the powers and function's conferred on, or assigned to, an Assessing Officer under this Chapter;
(3) "Board" means the Central Board of Direct faxes constituted under the Central Boards of Revenue Act, 1963(54 of 1963);
(4) "derivative" has the meaning assigned to it in clause (aa) of section 2 of th
On and from the commencement of this Chapter, there shall be charged a securities transaction tax in respect of the taxable securities transaction specified in column (2) of the Table below, at the rate specified in the corresponding entry in column (3) of the said table, on the value of such transaction and such tax, shall be payable by the purchaser or the seller, specified in the corresponding entry in column (4) of the said Table:
TABLE
Sl. No. Taxable securities transaction Rate Payable by
(1) (2) (3) (4)
1 Purchase of an equity share in a company or a unit of an equity oriented fund, where --
(a) the transaction of such purchase is entered into in a recognised stock exchange; and
&nbs
1[(a) in the case of a taxable securities transaction relating to an option in securities, shall be--
(i) the option premium, in respect of transaction at item (a) of serial number 4 of the Table in section 98;
(ii) the settlement price, in respect of transaction at item {b) of serial number 4 of the Table in section 98;]
(b) in the case of a taxable securities transaction relating to a derivative, being "futures", shall be the price at which such "futures" is traded; and
(c) in the case of any other taxable securities transaction, shall be the price at which such securities are purchased or sold:
Provided that the Board may, having regard to the manner in which taxable securities transactions are settled
(1) Every recognised stock exchange shall collect the securities transaction tax from every person, being a purchaser or a seller, as the case may be, who enters into a taxable securities transaction in that stock exchange, at the rates specified in section 98.
(2) The prescribed person in the case of every Mutual Fund shall collect the securities transaction tax from every person who sells a unit to that Mutual Fund, at the rate specified in section 98.
(3) The securities transation tax collected during any calendar month in accordance with the provisions of sub-section (1) or sub-section (2), shall be paid by every recognised stock exchange or by the prescribed person in the case of every Mutual Fund, as the case may be, to the credit of the Central Government by the Seventh day of the month immediately following the said calendar mont
(1) Every recognised stock exchange or the prescribed person in the case of every Mutual Fund (hereafter in this Chapter referred to as assessee) shall, within the prescribed time after the end of each financial year, prepare and deliver or cause to be delivered to the Assessing Officer or to any other authority or agency authorised by the Board in this behalf, a return in such form and verified in such manner and setting forth such particulars as may be prescribed, in respect of all taxable securities transactions entered into during such financial year in the stock exchange or, as the case may be, in respect of all taxable securities transactions, being sale of units to such Mutual Fund during such financial year.
(2) Where any assessee fails to furnish the return under sub-section (1) within the prescribed time, the Assessing Officer may issue a notice to such assessee and serve
(1) For the purposes of making an assessment under this Chapter, the Assessing Officer may serve on any assessee, who has furnished a return under section 101 or upon whom a notice has been served under sub-section (2) of section 101 (whether a return has been furnished or not), a notice requiring him to produce or cause to be produced on a date to be specified therein such accounts or documents or other evidence as the Assessing Officer may require for the purposes of this Chapter and may, from time to time, serve further notices requiring the production of such further accounts or documents or other evidence as he may require.
(2) The Assessing Officer, after considering such accounts, documents or other evidence, if any, as he has obtained under sub-section (1) and after taking into account any other relevant material which he has gathered, shall, by an order in writing, assess
(1) With a view to rectifying any mistake apparent from the record, the Assessing Officer may amend any order passed by him under the provisions of this Chapter within one year from the end of the financial year in which the order sought to be amended was passed.
(2) Where any matter has been considered and decided in any proceeding by way of appeal relating to an order referred to in sub-section (1), the Assessing Officer passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided.
(3) Subject to the other provisions of this section, the Assessing officer may--
(a) make an amendment under sub-section (1) of his own motion; or
Every assessee who fails to credit the securities transaction tax or any part thereof as required under section 100, to the account of the Central Government within the period specified in that section, shall pay simple interest at the rate of one per cent. of such tax for every month or part of a month by which such crediting of the tax or any part thereof is delayed.
Any assessee who--
(a) fails to collect the whole or any part of the securities transaction tax as required under section 100; or
(b) having collected the securities transaction tax, fails to pay such tax to the credit of the Central Government in accordance with the provisions of sub-section (3) of that section, shall be liable to pay,--
(i) in the case referred to in clause (a), in addition to paying the tax in accordance with the provisions of sub-section (4) of that section, or interest, if any, in accordance with the provisions of section 104, by way of a penalty, a sum equal to the amount of securities transaction tax that he failed to collect; and
(ii) in the case referred to in clause (b), in addition to paying the tax in accordance with the
If an assessee fails to furnish in due time the return which it is required to furnish under sub-section (1) of section 101 or by notice given under sub-section (2) of that section, it shall be liable to pay, by way of penalty, a sum of one hundred rupees for every day during which the failure continues.
If the Assessing Officer in the course of any proceedings under this Chapter is satisfied that any person has failed to comply with a notice under sub-section (1) of section 102, he may direct that such person shall pay, by way of penalty, in addition to any securities transaction tax and interest, if any, payable by him, a sum of ten thousand rupees for each such failure.
Notwithstanding anything contained in the provisions of section 105 or section 106 or section 107, no penalty shall be imposable for any failure referred to in the said provisions if the assessee proves that there was reasonable cause for the said failure:
Provided that no order imposing a penalty under this Chapter shall be made unless the assessee has been given a reasonable opportunity of being heard.
The provisions of the following sections of the Income-tax Act, 1961(43 of 1961), as in force from time to time, shall apply, so far as may be, in relation to securities transaction tax as they apply in relation to income-tax:--
120, 131, 133A, 156, 178, 226 to 227, 229, 232, 260A, 261, 262, 265 to 269, 278B, 282 and 288 to 293.
(1) Any assessee aggrieved by any assessment order passed by the Assessing Officer under section 102 or any order under section 103, or denying his liability to be assessed under this Chapter, or by an order levying penalty under this Chapter, may appeal to the Commissioner of Income-tax (Appeals) within thirty days from the date of receipt of the order of the Assessing Officer.
(2) Every appeal under sub-section (1) shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by a fee of one thousand rupees.
(3) Where an appeal has been filed under the provisions of sub-section (1), the provisions of sections 249 to 251 of the Income-tax Act, 1961(43 of 1961), shall, as far as may be, apply.
(1) Any assessee aggrieved by an order passed by a Commissioner of Income-tax (Appeals) under section 110 may appeal to the Appellate Tribunal against such order.
(2) The Commissioner of Income-tax may, if he objects to any order passed by the Commissioner of Income-tax (Appeals) under section 110, direct the Assessing Officer to appeal to the Appellate Tribunal against such order.
(3) Every appeal under sub-section (1) or sub-section (2) shall be filed within sixty days of the date on which the order sought to be appealed against is received by the assessee, or by the Commissioner of Income-tax, as the case may be.
(4) Every appeal under sub-section (1) or sub-section (2) shall be in the prescribed form and shall be verified in the prescribed manner and in the case of an appeal filed under su
(1) If a person make a statement in any verification under this Chapter or any rule made thereunder or delivers an account or statement, which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable with imprisonment for a term which may extend to three years and with fine.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973(2 of 1974), an offence punishable under sub-section (1) shall be deemed to be non-cognizable within the meaning of that Code.
A person shall not be proceeded against for any offence under section 112 except with the previous sanction of the Chief Commissioner of Income-tax.
1[Notwithstanding anything contained in this Chapter, the provisions of this Chapter shall not apply to taxable securities transactions entered into by any person for, or on behalf of, the New Pension System Trust referred to in clause (44) of section 10 of the Income-tax Act, 1961 (43 of 1961).]
_____________________________
1. Inserted by the Finance (No. 2) Act, 2009 w.e.f. 1st October, 2009.
(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any Of the following matters, namely:--
(a) the time within which the return shall be delivered or caused to be delivered to the Assessing Officer or to any other agency and the form and the manner in which such return shall be furnished under sub-section (1) or sub-section (2) of section 101;
(b) the time with which the return shall be furnished on receipt of notice under sub-section (2) of section 101;
(c) the form in which an appeal under section 110 or section 111 may be filed and he manner in which t
(1) If any difficulty arises in giving effect to the provisions of this Chapter, the Central Government may, by order published in the Official Gazette, not inconsistent with the provisions of this Chapter, 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 Chapter come into force.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
In section 3 of the Government Savings Banks Act, 1873, for clause (b), the following clauses shall be substituted, namely:--
'(b) "Government Savings Bank" means-
(i) a Post Office Savings Bank; or
(ii) a banking company, or any other company or institution, as the Central Government may, by notification in the Official Gazette, specify, for the purposes of this Act;
(bb) "Secretary" means,--
(i) in the case of a Post Office Savings Bank, the Postmaster-General appointed for the area in which the Post Office Savings Bank is situated, or any officer of the Government as the Central Government may, by general or special order, specify in this behalf; and
(ii)
In the Indian Stamp Act, 1899,--
(i) in section 2, after clause (25), the following clause shall be inserted, namely:--
'(26) Stamp.--"Stamp" means any mark, seal or endorsement by any agency or person duly authorised by the State Government, and includes an adhesive or impressed stamp, for the purposes of duty chargeable under this Act.';
(ii) in section 9, in sub-section (1), in clause (b), after the words "consolidation of duties", the words "of policies of insurance and" shall be inserted;
(iii) in Schedule 1, in Article No. 53, in the first column, for the words "five hundred rupees", the words "five thousand rupees" shall be substituted.
In section 8 of the Central Sales Tax Act, 1956(74 of 1956) (hereinafter referred to as the Central Sales Tax Act),--
(a) for sub-section (6), the following sub-section shall be substituted, namely:--
"(6) Notwithstanding anything contained in this section, no tax under this Act shall be payable by any dealer in respect of sale of any goods made by such dealer, in the course of inter-State trade or commerce to a registered dealer for the purpose of setting up, operation, maintenance, manufacture, trading, production, processing, assembling, repairing, reconditioning, re-engineering, packaging or for use as packing material or packing accessories in a unit located in any special economic zone or for development, operation and maintenance of special economic zone by the developer of the special economic zone, if such registered dealer has
In Chapter VI of the Central Sales Tax Act, as directed to be inserted by section 3 of the Central Sales Tax (Amendment) Act, 2001(41 of 2001), and as it stands amended by the Finance Act, 2003(32 of 2003), with effect from the commencement of the Central Sales Tax (Amendment) Act, 2001,--
(a) in section 19, in sub-section (1), for the words, figures and letter "section 6A or section 9", the words, figures and letter "section 6A read with section 9" shall be substituted;
(b) in section 20, in sub-section (1), for the words, figures and letter "section 6A or section 9", the words, figures and letter "section 6A read with section 9" shall be substituted;
(c) in section 21, in sub-section (3), in the first proviso, for the words "also to the State Government", the words "also to each State Govern
In section 4 of the Fiscal Responsibility and Budget Management Act, 2003, for the figures, letters and word "31st March, 2008", at both the places where they occur, the figures, letters and word "31st March, 2009" shall be substituted.
Section 2 of the Finance Act, 2004 is hereby repealed and shall be deemed never to have been enacted.
THE FIRST SCHEDULE
[See section 2]
PART I
INCOME-TAX
Paragraph A
In the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies,--
Rates of income-tax
(1) where the total income does not exceed
Rs. 50,000 Nil;
(2) Where the total income exceeds Rs. 50,000 but does not exc
THE SECOND SCHEDULE
[See section 88(1)]
Provision of the CENVAT Credit Rules, 2002 to be amended Amendment Date of effect of amendment
(1) (2) (3)
Explanation to clause (b) of sub-rule (6) of rule 3. In the CENVAT Credit Rules, 2002, in rule 3, in sub-rule (6), in clause (b), for the Explanation, the following Explanationshall be substituted, namely: -- 1st March, 2003.
"Explanation. -- For the removal of doubts, it is hereby declared that the credit of the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) and paid on or after the 1st day of April, 2000, may be utilised towards payment of duty of excise leviable und
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