FINANCE ACT, 2001
(1) This Act may be called the Finance Act, 2001.
(2) Save as otherwise provided in this Act, sections 2 to 101 shall be deemed to have come into force on the 1st day of April, 2001.
(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2001, 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, -
(a) in the cases to which Paragraphs A, B, C and D of that Part apply, by a surcharge for purposes of the Union; and
(b) in the cases to which Paragraph E of that Part applies, by a surcharge, 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 incom
In section 2 of the Income-tax Act,-
(a) after clause (12), the following clause shall be inserted with effect from the 1st day of June, 2001, namely :-
'(12A) "books or books of account" include ledgers, day-books, cash books, account-books and other books, whether kept in the written form or as print-outs of data stored in a floppy, disc, tape or any other form of electro-magnetic data storage device ;' ;
(b) after clause (22A), the following clause shall be inserted with effect from the 1st day of June, 2001, namely :-
'(22AA) "document" includes an electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);';
(c) in clause (24), in s
In section 9 of the Income-tax Act, in subsection (1), in clause (vi), in Explanation 2, with effect from the 1st day of April, 2002,-
(i) after clause (iv), the following clause shall be inserted, namely :-
"(iva) the use or right to use, any industrial, commercial or scientific equipment but not including the amount referred to in section 44BB ;" ;
(ii) in clause (vi), for the words, brackets and figures "sub-clauses (i) to (v)", the words, brackets, figures and letter "sub-clauses (i) to (iv), (iva) and (v)" shall be substituted
In section 10 of the Income-tax Act,-
(a) in clause (10C),-
(i) after sub-clause (vii), the following sub-clause shallbe inserted, namely :-
"(viia) any State Government; or" ;
(ii) after sub-clause (viia) as so inserted, thefollowing sub-clause shall be inserted with effect from the lst day of April,2002, namely :-
"(viib) the Central Government; or" ;
(b) in clause (15), with effect from the 1st day of April,2002,-
(i) in sub-clause (iv),-
(A) for item (a), the following item shall be substituted,namely :-
"(a) by Government o
In section 10A of the Income-tax Act,
(a) in sub-section (1),-
(i) in the second proviso, for the words "undertaking was first set up", the words "undertaking began to manufacture or produce such articles or things or computer software" shall be substituted ;
(ii) the third proviso shall be omitted with effect from the 1st day of April, 2002 ;
(b) for sub-section (4), the following sub-section shall be substituted, namely :-
"(4) For the purposes of sub-section (1), the profits derived from export of articles or things or computer software shall be the amount which bears to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles or things or c
In section 10B of the Income-tax Act,-
(a) in sub-section (l), the second proviso shall be omitted with effect from the 1st day of April, 2002 ;
(b) for sub-section (4), the following sub-section shall be substituted, namely :-
"(4) For the purposes of sub-section (1), the profits derived from export of articles or things or computer software shall be the amount which bears to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles or things or computer software bears to the total turnover of the business carried on by the undertaking." ;
(c) after sub-section (9),-
(i) below Explanation 1, the following proviso shall be inserted, namely:-
After section 10B of the Income-tax Act, the following section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1994, namely :-
'10BB. Meaning of computer programmes in certain cases.-The profits and gains derived by an undertaking from the production of computer programmes under section 10B, as it stood prior to its substitution by section 7 of the Finance Act, 2000 (10 of 2000), shall be construed as if for the words "computer programmes", the words "computer programmes or processing or management of electronic data" had been substituted in that section.',
In section 11 of the Income-tax Act, in sub-section (2), after the proviso, the following proviso shall be inserted with effect from the 1st day of April, 2002, namely :-
'Provided further that in respect of any income accumulated or set apart on or after the 1st day of April, 2001, the provisions of this sub-section shall have effect as if for the words "ten years" at both the places where they occur, the words "five years" had been substituted.'.
A In section 12A of the Income-tax Act, after clause (b), the following clause shall be inserted with effect from the 1st day of April, 2002, namely :-
"(c) where the total income of the trust or institution as computed under this Act without giving effect to the provisions of sections 11 and 12 exceeds ten lakh rupees in any previous year, the trust or institution-
(i) publishes its accounts in a local newspaper, before the due date for furnishing the return of income under sub-section (4A) of section 139 ; and
(ii) furnishes a copy of such newspaper along with such return.".
After section 14 of the Income-tax Act, the following section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1962, namely ;-
"14A. Expenditure incurred in relation to income not includible in total income.-For the purposes of computing the total income under this Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under this Act.".
In section 16 of the Income-tax Act, for clauses (i) and (ii), the following clause shall be substituted with effect from the 1st day of April, 2002, namely ;-
"(i) in the case of an assessee whose income from salary, before allowing a deduction under this clause,-
(A) does not exceed one lakh fifty thousand rupees, a deduction of a sum equal to thirty-three and one-third per cent of the salary or thirty thousand rupees, whichever is less;
(B) exceeds one lakh fifty thousand rupees but does not exceed three lakh rupees, a deduction of a sum of twenty-five thousand rupees;
(C) exceeds three lakh rupees but does not exceed five lakh rupees, a deduction of a sum of twenty thousand rupees;
(ii) a deduction in
In section 17 of the Income-tax Act,-
(a) in clause (2),-
(i) in sub-clause (iii),-
(A) in item (c), for the words "twenty-four thousand rupees", the words "fifty thousand rupees" shall be substituted with effect from the 1st day of April, 2002 ;
(B) in the proviso, for the words "the Employees' Stock Option Plan or Scheme of the said company", the words "any Employees' Stock Option Plan or Scheme of the company offered to such employees in accordance with the guidelines issued in this behalf by the Central Government" shall be substituted ;
(ii) after sub-clause (v), the following sub-clause shall be inserted with effect from the 1st day of April, 2002, namely ;-
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For section 23 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2002 namely :-
"23.Annual value how determined.-
(1) For the purposes of section 22, the annual value of any property shall be deemed to be-
(a) the sum for which the property might reasonably be expected to let from year to year; or
(b) where the property or any part of the property is let and the actual rent received or receivable by the owner in respect thereof is in excess of the sum referred to in clause (a), the amount so received or receivable; or
(c) where the property or any part of the property is let and was vacant during the whole or any part of the previous year and owing to
For section 24 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2002, namely :-
'24. Deductions from income from house property.-Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely :-
(a) a sum equal to thirty per cent. of the annual value ;
(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital :
Provided that in respect of property referred to in sub-section (2) of section 23; the amount of deduction shall not exceed thirty thousand rupees :
Provided further that where
In section 25 of the Income-tax Act, the words "annual charge or" shall be omitted with effect from the 1st day of April, 2002.
In section 25A of the Income-tax Act, with effect from the 1st day of April, 2002,-
(a) after the words, brackets and figures "under clause (x) of sub-section (1) of section 24", the words and figures ''as it stood immediately before its substitution by the Finance Act, 2001" shall be inserted ;
(b) after the words and figures "under section 23 or section 24", the words and figures ''as it stood immediately before its substitution by the Finance Act, 2001" shall be inserted.
After section 25A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2002, namely :-
'25AA. Unrealised rent received subsequently to be charged to income-tax.-Where the assessee cannot realise rent from a property let to a tenant and subsequently the assessee has realised any amount in respect of such rent, the amount so realised shall be deemed to be income chargeable under the head "Income from house property" and accordingly charged to income-tax as the income of that previous year in which such rent is realised whether or not the assessee is the owner of that property in that previous year.'.
In section 25B of the Income-tax Act, for the words "a sum equal to one-fourth of such amount for repairs of, and collection of rent from, the property", the words "a sum equal to thirty per cent. of such amount" shall be substituted with effect from the 1st day of April, 2002.
In section 27 of the Income-tax Act, clauses (iv) and (v) shall be omitted with effect from the 1st day of April, 2002.
In section 32 of the Income-tax Act, with effect from the 1st day of April, 2002., -
(a) in sub-section (1), in clause (ii), -
(A) in the first proviso, in clause (a) after the figures, letters and words "28th day of February, 1975", the words, figures and letters "but before the 1st day of April, 2001" shall be inserted;
(B) after Explanation 4, the following Explanation shall be inserted, namely :-
"Explanation 5.-For the removal of doubts, it is hereby declared that the provisions of this sub-section shall apply whether or not the assessee has claimed the deduction in respect of depreciation in computing his total income ;" ;
(b) for sub-section (2), the following sub-section shall be substituted, name
In section 33AB of the Income-tax Act, in sub-section (1), for the words "a sum equal to twenty per cent. of the profits", the words "a sum equal to forty per cent. of the profits" shall be substituted with effect from the 1st day of April, 2002.
In section 35 of the Income-tax Act, with effect from the 1st day of April, 2002,-
(a) in sub-section (2AA),-
(i) for the words "University or an Indian Institute of Technology", the words "University or an Indian Institute of Technology or a specified person" shall be substituted ;
(ii) in the Explanation, after clause (c), the following clause shall be inserted, namely :-
'(d) "specified person" means such person as is approved by the prescribed authority.';
(b) in sub-section (2AB),-
(i) in clause (1), for the words "engaged in the business of", the words "engaged in the business of bio-technology or in the business of" shall be substituted ;
After section 35DD of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2002, namely :-
"35DDA. Amortisation of expenditure incurred under voluntary retirement scheme.-
(1) Where an assessee incurs any expenditure in any previous year by way of payment of any sum to an employee at the time of his voluntary retirement, in accordance with any scheme or schemes of voluntary retirement, one-fifth of the amount so paid shall be deducted in computing the profits and gains of the business for that previous year, and the balance shall be deducted in equal instalments for each of the four immediately succeeding previous years :
(2) No deduction shall be allowed in respect of the expenditure mentioned in sub-section (1) under any other provision of this A
In section 36, in sub-section (1), in clause (vil), after the proviso, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1989, namely :-
"Explanation.- For the purposes of this clause, any bad debt or part thereof written of as irrecoverable in the accounts of the assessee shall not include any provision for bad and doubtful debts made in the accounts of the assessee.".
In section 43 of the Income-tax Act, with effect from the 1st day of April,2002,-
(a) in clause (1), after Explanation 11, the following Explanation shall be inserted, namely :-
"Explanation 12.- Where any capital asset is acquired by the assessee under a scheme for corporatisation of a recognised stock exchange in India, approved by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the actual cost of the asset shall be deemed to be the amount which would have been regarded as actual cost had there been no such corporatisation.";
(b) in clause(6), after Explanation 4, the following Explanation shall be inserted, namely :-
"Explanation 5.- Where in a previous y
In section 43B of the Income-tax Act, with effect from the 1st day of April, 2002,-
(i) in clause (e), the word "or" shall be inserted at the end ;
(ii) after clause (e), the following clause shall be inserted, namely :-
"(f) any sum payable by the assessee as an employer in lieu of any leave at the credit of his employee" ;
(iii) in the first proviso, after the word, brackets and letter "clause (e)", the words, brackets and letter "or clause (f)" shall be inserted ;
(iv) after Explanation 3A, the following Explanation shall be inserted, namely :-
"Explanation 3B.-For the removal of doubts, it is hereby declared that where a deduction in respect of any sum refe
In section 44AB of the Income-tax Act,-
(a) in the second proviso, after the words "and a further report", the words "by an accountant" shall be inserted ;
(b) in the Explanation occurring at the end, for clause (ii), the following clause shall be substituted, namely :-
'(ii) "specified date", in relation to the accounts of the assessee of the previous year relevant to an assessment year, means the 31st day of October of the assessment year.'.
In section 47 of the Income-tax Act,-
(a) in clause (iii), in the proviso, for the words "the Employees' Stock Option Plan or Scheme", the words "any Employees' Stock Option Plan or Scheme of the Company offered to such Employees in accordance with the guidelines issued by the Central Government in this behalf" shall be substituted ;
(b) in clause (viia), for the word "shares", the words "Global Depository Receipts" shall be substituted with effect from the 1st day of April, 2002.
(c) in clause (xiii), with effect from the 1st day of April, 2002,-
(i) for the portion beginning with the words "where a firm is succeeded" and ending with the words "intangible asset to the company", the following shall be substituted, namely :-
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In section 49 of the Income-tax Act, after sub-section (2A), the following sub-section shall be inserted, namely :-
"(2AA) Where the capital gain arises from the transfer of the shares, debentures or warrants, the value of which has been taken into account while computing the value of perquisite under clause (2) of section 17, the cost of acquisition of such shares, debentures or warrants shall be the value under that clause.".
In section 54EC of the Income-tax Act, in the Explanation occurring at the end, for clause (b), the following clause shall be substituted with effect from the 1st day of April, 2002, namely :-
(b) "Long-term specified asset" means any bond redeemable after three years, issued,-
(i) on or after the 1st day of April, 2000, by the National Bank for Agriculture and Rural Development established under section 3 of the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981) or by the National Highways Authority of India constituted under section 3 of the National Highways Authority of India Act, 1988 (68 of 1988) ;
(ii) on or after the 1st day of April, 2001, by the Rural Electrification Corporation Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956)
After section 54EC of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2002, namely :-
'54ED. Capital gain on transfer of certain listed securities or unit, not to be charged in certain cases.-
(1) Where the capital gain arises from the transfer of a long-term capital asset, being listed securities or unit (the capital asset so transferred being hereafter in this section referred to as the original asset), and the assessee has, within a period of six months after the date of such transfer, invested the whole or any part of the capital gain in acquiring equity shares forming part of an eligible issue of capital (such equity shares being hereafter in this section referred to as the specified equity shares), the said capital gain shall be dealt with in accordance with the following provision
In section 54H of the Income-tax Act, for the figures and letters "54EA, 54EB", the figures and letters "54EC" shall be substituted.
34. In section 55 of the Income-tax Act, in sub-section (2), with effect from 1st day of April, 2002, -
(a) in clause (a), after the words "good will of a business", the words, "or a trade mark or brand name associated with a business" shall be inserted;
(b) after clause (aa), the following clause shall be inserted, namely:-
"(ab) in relation to a capital asset, being equity share or shares allotted to a shareholder of a recognised stock exchange in India under a scheme for corporatisation approved by the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), shall be the cost of acquisition of his original membership of the exchange,".
In section 72A of the Income-tax Act, in sub-section (7), after clause (a), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2000, namely :-
'(aa) "industrial undertaking" means any undertaking which is engaged in-
(i) the manufacture or processing of goods; or
(ii) the manufacture of computer software; or
(iii) the business of generation or distribution of electricity or any other form of power; or
(iv) mining; or
(v) the construction of ships, aircrafts or rail systems ;'.
In section 80CCC of the Income-tax Act, in sub-section (1), after the words "Life Insurance Corporation of India", the words "or any other insurer" shall be inserted with effect from the 1st day of April, 2002.
In section 80D of the Income-tax Act, in sub-section (2), for the proviso, the following proviso shall be substituted with effect from the 1st day of April, 2002, namely :-
"Provided that such insurance shall be in accordance with a scheme framed in this behalf by-
(a) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf ; or
(b) any other insurer and approved by the Insurance Regulatory and Development Authority established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999).".
In section 80DD of the Income-tax Act, in sub-section (1), in clause (b), for the words "Unit Trust of India", the words "any other insurer or Unit Trust of India" shall be substituted with effect from the 1st day of April, 2002.
In section 80G of the Income-tax Act, with effect from the 1st day of April, 2002,-
(a) in sub-section (1), in clause (i), after the words, brackets, figures and letters "or sub-clause (iiihi)", the words, brackets, figures and letters "or sub-clause (iiihj)" shall be inserted ;
(b) in sub-section (2), in clause (a), after sub-clause (iiihi), the following sub-clause shall be inserted, namely :-
"(iiihj) the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities constituted under sub-section (1) of section 3 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999 (44 of 1999); or".
In section 80GG of the Income-tax Act, in the proviso, in clause (ii), for the words, brackets, figures and letters "under sub-clause (i) of clause (a) or, as the case may be, clause (b) of sub-section (2) of section 23", the words, brackets, letters and figures "under clause (a) of sub-section (2) or, as the case may be, clause (a) of sub-section (4) of section 23" shall be substituted with effect from the 1st day of April, 2002.
In section 80HHC of the Income-tax Act, in sub-section (1B) for clauses (ii), (iii) and (iv), the following clauses shall be substituted with effect from the 1st day of April, 2002, namely:-
"(ii) seventy per cent thereof for an assessment year beginning on the 1st day of April, 2002;
(iii) fifty per cent thereof for an assessment year beginning on the 1st day of April, 2003;
(iv) thirty per cent thereof for an assessment year beginning on the 1st day of April, 2004.".
In section 80HHE of the Income-tax Act,-
(a) after sub-section (1), the following Explanation shall be inserted, namely:-
"Explanation.-For the removal of doubts, it is hereby declared that the profits and gains derived from on site development of computer software (including services for development of software) outside India shall be deemed to be the profits and gains derived from the export of computer software outside India.".
(b) in sub-section (1B), for clauses (ii), (iii) and (iv), the following clauses shall be substituted with effect from the 1st day of April, 2002, namely:-
"(ii) seventy per cent thereof for an assessment year beginning on the 1st day of April, 2002;
(iii) fifty per cent thereof
In section 80HHF of the Income-tax Act,-
"(ii) seventy per cent thereof for an assessment year beginning on the 1st day of April, 2002;
(iii) fifty per cent thereof for an assessment year beginning on the 1st day of April, 2003;
(iv) thirty per cent thereof for an assessment year beginning on the 1st day of April, 2004.".
In section 80-IA of the Income-tax Act,-
(a) for sub-section (1), the following sub-section shall be substituted with effect from the 1st day of April, 2002, namely :-
"(1) Where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any business referred to in sub-section (4) (such business being hereinafter referred to as the eligible business), there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per cent. of profits and gains derived from such business for ten consecutive assessment years." ;
(b) in sub-section (2), for the proviso, the following proviso shall be substituted with effect from the 1st day
In section 80-IB of the Income-tax Act, with effect from the 1st day of April, 2002,-
(a) in sub-section (1), for the brackets, figures and word "(3) to (11)", the brackets, figures, words and letter "(3) to (11) and (11A)" shall be substituted ;
(b) after sub-section (11), the following sub-section shall be inserted, namely :-
"(11A) The amount of deduction in a case of an undertaking deriving profit from the integrated business of handling, storage and transportation of food grains, shall be hundred per cent. of the profits and gains derived from such undertaking for five assessment years beginning with the initial assessment year and thereafter, twenty-five per cent. (or thirty per cent. where the assessee is a company) of the profits and gains derived from the operation of such business in
In section 80L of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2002, in clause (x), for the words "twelve thousand" at both the places where they occur, the words "nine thousand" shall be substituted ;
In section 88 of the Income-tax Act, with effect from the 1st day of April, 2002,-
(a) in sub-section (1), after the proviso, the following proviso shall be inserted, namely :-
'Provided further that an individual shall be entitled to a deduction of an amount equal to thirty per cent. of the aggregate of the sums referred to in sub-section (2) if his income chargeable under the head "Salaries"-
(a) does not exceed one lakh rupees during the previous year before allowing deduction under section 16 ; and
(b) is not less than ninety per cent. of his gross total income as defined in sub-section (5) of section 80B: ;
(b) in sub-section (2), in clause (xiiia), after the words "Life Insurance Corporation", the w
In section 90 of Income-tax Act, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1962, namely :-
"Explanation.- For the removal of doubts, it is hereby declared that the charge of tax in respect of a foreign company at a rate higher than the rate at which a domestic company is chargeable, shall not be regarded as less favourable charge or levy of tax in respect of such foreign company, 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."
For section 92 of the Income-tax Act, the following sections shall be substituted with effect from the 1st day of April, 2002, namely :-
'92.Computation of income from international transaction having regard to arm's length price.-
(1) Any income arising from an international transaction shall be computed having regard to the arm's length price.
(2) In computing income under sub-section (1), the allowance for any expense or interest shall also be determined having regard to the arm's length price.
(3) Where in an international transaction, two or more associated enterprises enter into a mutual agreement or arrangement for the allocation or apportionment of, or any contribution to, any cost or expense incurred or to be incurred in connection with a b
In section 94 of the Income-tax Act, with effect from the 1st day of April, 2002,-
(a) after sub-section (6) but before the Explanation, the following sub-section shall be inserted, namely :-
"(7) Where-
(a) any person buys or acquires any securities or unit within a period of three months prior to the record date;
(b) such person sells or transfers such securities or unit within a period of three months after such date;
(c) the dividend or income on such securities or unit received or receivable by such person is exempt,
then, the loss, if any, arising to him on account of such purchase and sale of securities or unit, to the extent such loss does not exceed th
In section 115AB of the Income-tax Act, in the Explanation, in clause (a), for the words "Central Government", the words and figures "Securities and Exchange Board of India, established under the Securities and Exchange Board of India Act, 1992 (15 of 1992)," shall be substituted with effect from the 1st day of June, 2001.
For section 115AC of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2002. namely :-
'115AC. Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer.-
(1) Where the total income of an assessee, being a non-resident, includes-
(a) income by way of interest on bonds of an Indian company issued in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf, or on bonds of a public sector company sold by the Government, and purchased by him in foreign currency; or
(b) income by way of dividends, other than dividends referred to in section 115-O, on Global Depository
53. In section 115ACA of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted, namely :-
'(1) Where the total income of an assessee, being an individual, who is a resident and an employee of an Indian company engaged in specified knowledge based industry or service, or an employee of its subsidiary engaged in specified knowledge based industry or service (hereafter in this section referred to as the resident employee), includes-
(a) income by way of dividends, other than dividends referred to in section 115-O, on Global Depository Receipts of an Indian company engaged in specified knowledge based industry or service, issued in accordance with such Employees' Stock Option Scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf and purchased by him in foreign
In section 115BB of the Income-tax Act, in clause (i), for the words "forty per cent.", the words "thirty per cent." shall be substituted with effect from the 1st day of April, 2002.
In section 115-O of the Income-tax Act, in sub-section (1), for the words "twenty per cent.", the words "ten per cent." shall be substituted with effect from the 1st day of June, 2001.
In section 115P of the Income-tax Act, for the words "one and one-half per cent.", the words "one and one-fourth per cent." shall be substituted with effect from the 1st day of June, 2001.
In section 115R of the Income-tax Act, in sub-sections (1) and (2), for the words "twenty per cent.", the words "ten per cent." shall be substituted with effect from the 1st day of June, 2001.
In section 115S of the Income-tax Act, for the words "one and one-half per cent.", the words "one and one-fourth per cent," shall be substituted with effect from the 1st day of June, 2001.
In section 139 of the Income-tax Act, for sub-section (1), the following sub-section shall be substituted, namely:-
'(1) Every person,-
(a) being a company; or
(b) being a person other than a company, if his total income or the total income of any other person in respect of which he is assessable under this Act during the previous year exceeded the maximum amount which is not chargeable to income-tax,
shall, on or before the due date, furnish a return of his income or the income of such other person during the previous year, in the prescribed form and verified in the prescribed manner and setting forth such other particulars as may be prescribed :
Provided that a person referred to in clause (b), who is n
In section 139A of the Income-tax with effect from the 1st day of June, 2001,-
(a) after sub-section (5), the following sub-sections shall be inserted, namely :-
"(5A) Every person receiving any sum or income or amount from which tax has been deducted under the provisions of Chapter XVIIB, shall intimate his permanent account number to the person responsible for deducting such tax under that Chapter :
Provided that nothing contained in this sub-section shall apply to a non-resident referred to in sub-section (4) of section 115AC, or sub-section (2) of section 115BBA, or to a non-resident Indian referred to in section 1l5G :
Provided further that a person referred to in this sub-section, shall intimate the General Index Register Number till such time
In section 140A of the Income-tax Act, after sub-section (1), the following sub-sections shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1989, namely :-
"(1A) For the purposes of sub-section (1), interest payable under section 234A shall be computed on the amount of the tax on the total income as declared in the return as reduced by the advance tax, if any, paid and any tax deducted or collected at source.
(1B) For the purposes of sub-section (1), interest payable under section 234B shall be computed on an amount equal to the assessed tax or, as the case may be, on the amount by which the advance tax paid falls short of the assessed tax.
Explanation.-For the purposes of this sub-section, "assessed tax" means the tax on the total income as decl
In section 143 of the Income-tax Act, in sub-section (1), with effect from the 1st day of June, 2001,-
(a) in the second proviso, for the words "two years from the end of the assessment year in which the income was first assessable", the words "one year from the end of the financial year in which the return is made" shall be substituted ;
(b) after the second proviso, the following proviso shall be inserted, namely :-
"Provided also that where the return made is in respect of the income first assessable in the assessment year commencing on the 1st day of April, 1999, such intimation may be sent at any time up to the 31st day of March, 2002.".
In section 149 of the Income-tax Act, in sub-section (1), for clauses (a) and (b), the following clauses shall be substituted with effect from the 1st day of June, 2001, namely :-
"(a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause(b);
(b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year.".
In section 153 of the Income-tax Act, with effect from the 1stday of June, 2001,-
(a) in sub-section (2),-
(i) for the words "two years", the words "one year" shall be substituted ;
(ii) for the proviso, the following proviso shall be substituted, namely :-
"Provided that where the notice under section 148 was served on or after the 1st day of April, 1999 but before the 1st day of April, 2000, such assessment, reassessment or recomputation may be made at any time up to the 31st day of March, 2002." ;
(b) for sub-section (2A), the following sub-section shall be substituted, namely :-
"(2A) Notwithstanding anything contained in sub-sections (1) and (2), in relati
In section 154 of the Income-tax Act, after sub-section (7), the following sub-section shall be inserted with effect from the 1st day of June, 2001,-
"(8) Without prejudice to the provisions of sub-section (7), where an application for amendment under this section is made by the assessee on or after the 1st day of June, 2001 to an income-tax authority referred to in sub-section (1), the authority shall pass an order, within a period of six months from the end of the month in which the application is received by it,-
(a) making the amendment; or
(b) refusing to allow the claim.".
In section 158B of the Income-tax Act, for clause (a), the following clause shall be substituted with effect from the 1st day of June, 2001, namely :-
'(a) "block period" means the period comprising previous years relevant to six assessment years preceding the previous year in which the search was conducted under section or any requisition was made under section 132A and also includes the period up to the date of the commencement of such search or date of such requisition in the previous year in which the said search was conducted or requisition was made :
Provided that where the search is initiated or the requisition is made before the 1st day of June, 2001, the provisions of this clause shall have effect as if for the words "six assessment years", the words "ten assessment years" had been substituted ;'.
In section 158 BFA of the Income-tax Act, in sub-section (1), for the words "two per cent.", the words "one and one-fourth per cent." shall be substituted with effect from the 1st day of June, 2001.
In section 192 of the Income-tax Act, after sub-section (2B), the following sub-section shall be inserted with effect from the 1st day of June, 2001, namely :-
'(2C) A person responsible for paying any income chargeable under the head "Salaries" shall furnish to the person to whom such payment is made a statement giving correct and complete particulars of perquisites or profits in lieu of salary provided to him and the value thereof in such form and manner as may be prescribed.'.
In section 194A of the Income-tax Act, in sub-section (3), in clause (i), in the proviso, the portion beginning with the words "the provisions of this clause" and ending with the words "have been substituted and" shall be omitted with effect from the 1st day of June, 2001.
In section 194B of the Income-tax Act after the words "crossword puzzle", the words "or card game and other game of any sort" shall be inserted with effect from the 1st day of June, 2001.
After section 194G of the Income-tax Act, the following section shall be inserted with effect from the 1st day of June, 2001, namely :-
'194H. Commission or brokerage.-Any person, not being an individual or a Hindu undivided family, who is responsible for paying on or after the 1st day of June, 2001, to a resident, any income by way of commission (not being insurance commission referred to in section 194D) or brokerage, shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of ten per cent. :
Provided that no deduction shall be made under this section in a case where the amount of such income or, as the case may be, the aggregate of the amounts of such income
In section 196C of the Income-tax Act, for the words "bonds or shares" at both the places where they occur, the words "bonds or Global Depository Receipts" shall be substituted with effect from the 1st day of April, 2002.
In section 197 of the Income-tax Act, in sub-section (1), after the figures and letter "194D", the figurs and letter ",194H" shall be inserted with effect from the 1st day of June, 2001.
In section 201 of the Income-tax Act,-
(a) in sub-section (1), after the words "does not deduct", the words "the whole or any part of the tax" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1962 ;
(b) in sub-section (1A),-
(i) after the words "does not deduct", the words "the whole or any part of the tax" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1962 ;
(ii) for the words "eighteen per cent.", the words "fifteen per cent." shall be substituted with effect from the 1st day of June, 2001.
In section 206C of the Income-tax Act, in sub-section (7), for the words "two per cent.", the words "one and one-fourth per cent." shall be substituted with effect from the 1st day of June, 2001.
In section 220 of the Income-tax Act, in sub-section (2), for the words "one and one-half per cent.", the words "one and one-fourth per cent." shall be substituted with effect from the 1st day of June, 2001.
Section 230A of the Income-tax Act shall be omitted with effect from the 1st day of June, 2001.
In section 234A of the Income-tax Act,-
(a) in sub-section (1),-
(i) for the words "one and one-half per cent.", the words "one and one-fourth per cent." shall be substituted with effect from the 1st day of June, 2001 ;
(ii) Explanation 4 shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1989 ;
(b) in sub-section (3), for the words "one and one-half per cent.", the words "one and one-fourth per cent." shall be substituted with effect from the 1st day of June, 2001.
In section 234B of the Income-tax, Act,-
(a) in sub-section (1),-
(i) for the words "one and one-half per cent.", the words "one and one-fourth per cent." shall be substituted with effect from the 1st day of June, 2001 ;
(ii) for Explanation 1, the following Explanation shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1989, namely :-
'Explanation 1.-In this section, "assessed tax" means the tax on the total income determined under sub-section (1) of section 143 or on regular assessment as reduced by the amount of tax deducted or collected at source in accordance with the provisions of Chapter XVII on any income which is subject to such deduction or collection and which is taken into account in
In section 234C of the Income-tax Act, in sub-section (1), with effect from the 1st day of June, 2001,-
(i) in clause (a), in sub-clauses (i) and (ii), for the words "one and one half per cent.", the words "one and one-fourth per cent." shall be substituted ;
(ii) in clause (b), in sub-clauses (i) and (ii), for the words "one an one-half per cent.", the words "one and one-fourth per cent." shall be substituted.
Section 241 of the Income-tax Act shall be omitted with effect from the 1st day of June, 2001.
In section 244A of the Income-tax Act, in sub-section (1), in clauses (a) and (b), for the words "one per cent,", the words "three-fourth per cent," shall be substituted with effect from the 1st day of June, 2001.
In section 251 of the Income-tax Act, in sub-section (1), in clause (a), the portion beginning with the words "or he may set aside" and ending with the words "on the basis of such fresh assessment;" shall be omitted with effect from the 1st day of June, 2001.
In section 254 of the Income-tax Act, in sub-section (2A), the following provisos shall be inserted with effect from the 1st day of June, 2001, namely :-
"Provided that where an order of stay is made in any proceedings relating to an appeal filed under sub-section (1) of section 253, the Appellate Tribunal shall dispose of the appeal within a period of one hundred and eighty days from the date of such order :
Provided further that if such appeal is not so disposed of within the period specified in the first proviso, the stay order shall stand vacated after the expiry of the said period.".
In section 264 of the Income-tax Act, in sub-section (5), for the words "a fee of twenty-five rupees", the words "a fee of five hundred rupees" shall be substituted with effect from the 1st day of June, 2001.
In section 271 of the Income-tax Act, in sub-section (1),-
(a) in clause (ii), for the words "a sum which shall not be less than one thousand rupees but which may extend to twenty-five thousand rupees", the words "a sum of ten thousand rupees" shall be substituted with effect from the 1st day of June, 2001;
(b) after Explanation 6, the following Explanation shall be inserted with effect from the 1st day of April, 2002, namely:-
"Explanation 7.- Where in the case of an assessee who has entered in to an international transaction defined in section 92B, any amount is added or disallowed in computing the total income under sub-section (4) of section 92C, then, the amount so added or disallowed shall, for the purposes of clause (c) of this sub-section, be deemed to represent income in respect of wh
In section 271 of the Income-tax Act, for the words "a sum which shall not be less than two thousand rupees but which may extend to one hundred thousand rupees", the words "a sum of twenty-five thousand rupees" shall be substituted with effect from the 1st day of June, 2001.
After section 271A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2002, namely :-
"271AA. Penalty for failure to keep and maintain information and document in respect of international transaction.-Without prejudice to the provisions of section 271, if any person fails to keep and maintain any such information and document as required by sub-section (1) or sub-section (2) of section 92D, the Assessing Officer or Commissioner (Appeals) may direct that such person shall pay, by way of penalty, a sum equal to two per cent. of the value of each international transaction entered into by such person.".
After section 271B of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2002, namely :-
"271BA. Penalty for failure to furnish report under section 92E.-If any person fails to furnish a report from an accountant as required by section 92E, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of one hundred thousand rupees.".
In section 271F of the Income-tax Act, with effect from the 1st day of June, 2001,-
(a) for the words "one thousand rupees", the words "five thousand rupees" shall be substituted; .
(b) in the proviso, for the words "five hundred rupees", the words "five thousand rupees" shall be substituted.
After section 271F of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2002, namely :-
"271G. Penalty for failure to furnish information or document under section 92D.-If any person who has entered into an international transaction fails to furnish any such information or document as required by sub-section (3) of section 92D, the Assessing Officer or the Commissioner (Appeals) may direct that such person shall pay, by way of penalty, a sum equal to two per cent. of the value of the international transaction for each such failure.".
In section 272A of the Income-tax Act,-
(a) in sub-section (1), for the words "a sum which shall not be less than five hundred rupees but which may extend to ten thousand rupees", the words "a sum of ten thousand rupees" shall be substituted with effect from the 1st day of June, 2001 ;
(b) in sub-section (2), after clause (h), the following clause shall be inserted with effect from the 1st day of April, 2002, namely ;-
"(i) to furnish a statement as required by sub-section (2C) of section 192.".
In section 272BB of the Income-tax Act, in sub-section (1), for the words "a sum which may extend to five thousand rupees", the words "a sum of ten thousand rupees" shall be substituted with effect from the 1st day of June, 2001.
In section 273B of the Income-tax Act, with effect from the 1st day of April, 2002,-
(a) after the word, figures and letter "section 271A", the word, figures and letters", section 271AA" shall be inserted ;
(b) after the word, figures and letter "section 271B", the word, figures and letters", section 271BA" shall be inserted ;
(c) after the word, figures and letter "section 271F", the word, figures and letter", section 271G" shall be inserted.
In the Second Schedule to the Income-tax Act, in rule 68A, in sub-rule (3), for the words "twelve per cent.", the words "nine per cent." shall be substituted with effect from the 1st day of June, 2001.
In section 17 of the Wealth-tax Act, 1957 (27 of 1957) (hereinafter referred to as the Wealth-tax Act), in sub-section (1A), for clauses (a) and (b), the following clauses shall be substituted with effect from the 1st day of June, 2001, namely ;-
"(a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b);
(b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the net wealth chargeable to tax which has escaped assessment amounts to or is likely to amount to rupees ten lakh or more for that year.".
In section 17A of the Wealth-tax Act, with effect from the 1st day of June, 2001,-
(a) in sub-section (2),-
(i) for the words "two years", the words "one year" shall be substituted ;
(ii) for the proviso, the following proviso shall be substituted, namely ;-
"Provided that where the notice under sub-section (1) of section 17 was served on or after the 1st day of April, 1999 but before the 1st day of April, 2000, such assessment or reassessment may be made at any time up to the 31st day of March, 2002." ;
(iii) the Explanation shall be omitted ;
(b) in sub-section (3),
(i) for the words "two years", the words "one yea
In section 17B of the Wealth-tax Act, in sub-sections (1) and (3), for the words "two per cent.", the words "one and one-fourth per cent" shall be substituted with effect from the 1st day of June, 2001.
In section 31 of the Wealth-tax Act, in sub-section (2), with effect from the 1st day of June, 2001,-
(i) for the words "one and one-half per cent", the words "one and one-fourth per cent" shall be substituted ;
(ii) in the second proviso, for the words "one and one-half per cent", the words "one and one-fourth per cent" shall be substituted.
In section 34A of the Wealth-tax Act, with effect from the 1st day of June, 2001,-
(a) in sub-section (3), for the words "fifteen per cent", the words "nine per cent" shall be substituted ;
(b) in sub-section (4B), in clause (a), for the words "one per cent", the words "three-fourth per cent" shall be substituted.
Expenditure-tax
In section 14 of the Expenditure-tax Act, 1987 (Act 35 of 1987), for the words "one and one-half per cent", the words, "one and one-fourth per cent" shall be substituted with effect from the 1st day of June, 2001.
In the Customs Act, 1962 (hereinafter referred to as the Customs Act), in section 27A, for the words "not below ten per cent.", the words "not below five per cent." shall be substituted.
In section 28 of the Customs Act, after sub-section (2), the following shall be inserted, namely:-
'(2A) Where any notice has been served on a person under sub-section (1), the proper officer,-
(i) in case any duty has not been levied or has been short-levied, or the interest has not been paid or has been part paid or the duty or interest has been erroneously refunded by reason of collusion or any wilful mis-statement or suppression of facts, where it is possible to do so, shall determine the amount of such duty or the interest, within a period of one year; and
(ii) in any other case, where it is possible to do so, shall determine the amount of duty which has not been levied or has been short-levied or erroneously refunded or the interest payable which has not been paid, part paid or erroneous
Section 28AA of the Customs Act shall be renumbered as sub-section (1) thereof and after sub-section (1) as so renumbered, the following sub-section shall be inserted, namely:-
"(2) The provisions of sub-section (1) shall not apply to cases where the duty or the interest becomes payable or ought to be paid on and after the date on which the Finance Bill, 2001 receives the assent of the President.".
In section 28AB of the Customs Act,-
(a) for sub-section (1), the following shall be substituted, namely:-
"(1) Where any duty has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person who is liable to pay the duty as determined under sub-section (2), or has paid the duty under sub-section (2B), of section 28, shall, in addition to the duty, be liable to pay interest at such rate not below eighteen per cent. and not exceeding thirty-six per cent. per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette, from the first day of the month succeeding the month in which the duty ought to have been paid under this Act, or from the date of such erroneous refund, as the case may be, but for the provisions contained in sub-section (2), or sub-section (
In section 61 of the Customs Act, in sub-section (2), in clause (ii), for the words "six months", wherever they occur, the words "thirty days" shall be substituted with effect from such date as the Central Government may, by notification in the Official Gazette, appoint.
In section 112 of the Customs Act,-
(a) in clause (i), for the words "not exceeding five times the value of the goods or one thousand rupees,", the words "not exceeding the value of the goods or five thousand rupees," shall be substituted;
(b) in clause (ii), for the words "not exceeding five times the duty sought to be evaded on such goods or one thousand rupees,", the words "not exceeding the duty sought to be evaded on such goods or five thousand rupees," shall be substituted;
(c) in clause (iii), for the words "not exceeding five times the difference between the declared value and the value thereof or one thousand rupees,", the words "not exceeding the difference between the declared value and the value thereof or five thousand rupees," shall be substituted;
&nbs
In section 114 of the Customs Act,-
(a) in clause (i), for the words "not exceeding five times the value of the goods or one thousand rupees,", the words "not exceeding the value of the goods or five thousand rupees," shall be substituted;
(b) in clause (ii), for the words "not exceeding five times the duty sought to be evaded on such goods or one thousand rupees,", the words "not exceeding the duty sought to be evaded or five thousand rupees," shall be substituted;
(c) in clause (iii), for the words "not exceeding five times the amount of drawback claimed or one thousand rupees,", the words "not exceeding the amount of drawback claimed or five thousand rupees," shall be substituted.
In section 128 of the Customs Act, in sub-section (1),-
(a) for the words "within three months", the words "within sixty days" shall be substituted;
(b) for the proviso, the following proviso shall be substituted, namely:-
"Provided that the Commissioner (Appeals) may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of sixty days, allow it to be presented within a further period of thirty days.".
In section 128A of the Customs Act,-
(a) in sub-section (3), for the portion beginning with the words and brackets "The Commissioner (Appeals) may" and ending with the words "additional evidence, if necessary:", the following shall be substituted, namely:-
"The Commissioner (Appeals) shall, after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling the decision or order appealed against:";
(b) after sub-section (4), the following sub-section shall be inserted, namely:-
"(4A) The Commissioner (Appeals) shall, where it is possible to do so, hear and decide every appeal within a period of six months from the date on which it is filed.".
In section 129D of the Customs Act, in sub-section (1), after the words "direct such Commissioner", the words "or any other Commissioner" shall be inserted.
In section 129E of the Customs Act, after the proviso, the following proviso shall be inserted, namely:-
"Provided further that where an application is filed before the Commissioner (Appeals) for dispensing with the deposit of duty and interest demanded or penalty levied under the first proviso, the Commissioner (Appeals) shall , where it is possible to do so, decide such application within thirty days from the date of its filing.".
After section 159 of the Customs Act, the following section shall be inserted and shall be deemed to have been inserted on and from the 1st day of February, 1963, namely:-
"159A. Effect of amendments, etc., of rules, regulations, notifications or orders
Where any rule, regulation, notification or order made or issued under this Act or any notification or order issued under such rule or regulation, is amended, repealed, superseded or rescinded, then, unless a different intention appears, such amendment, repeal, supersession or rescinding shall not-
(a) revive anything not in force or existing at the time at which the amendment, repeal, supersession or rescinding takes effect; or
(b) affect the previous operation of any rule, regulation, notification
Any action taken or anything done or omitted to be done or purported to have been taken or done or omitted to be done under any rule, regulation, notification or order made or issued under the Customs Act, or any notification or order issued under such rule or regulation at any time during the period commencing on and from the 1st day of February, 1963 and ending with the day the Finance Bill, 2001 receives the assent of the President shall be deemed to be, and to always have been, for all purposes, as validly and effectively taken or done or omitted to be done as if the amendment made by section 107 of the Finance Act, 2001 had been in force at all material time 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 or, omitted to be done, during the said period in respe
(1) The notifications of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 465(E), dated the 3rd May, 1990, G.S.R. 423(E), dated the 20th April, 1992, G.S.R. 946(E), dated the 28th December, 1992 and G.S.R. 417(E), dated the 14th May, 1993, issued under sub-section (1) of section 25 of the Customs Act by the Central Government shall stand amended and shall be deemed to have been amended in the manner as specified in the Eighth 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 or effectively taken or done as if the
In the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act), in section 3,-
(a) in sub-section (1) and before the Explanation, the following proviso shall be inserted, namely:-
"Provided that in case of any alcoholic liquor for human consumption imported into India, the Central Government may, by notification in the Official Gazette, specify the rate of additional duty having regard to the excise duty for the time being leviable on a like alcoholic liquor produced or manufactured in different States, or, if a like alcoholic liquor is not produced or manufactured in any State, then, having regard to the excise duty which would be leviable for the time being in different States on the class or description of alcoholic liquor to which such imported alcoholic liquor belongs";
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In section 8B of the Customs Tariff Act,-
(a) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:-
"Provided further that the Central Government may, by notification in the Official Gazette, exempt such quantity of any article as it may specify in the notification, when imported from any country or territory into India, from payment of the whole or part of the safeguard duty leviable thereon.";
(b) after sub-section (2), the following shall be inserted, namely:-
"(2A) Notwithstanding anything contained in sub-section (1) and sub-section (2), a notification issued under sub-section (1) or any safeguard duty imposed under sub-section (2), unless specifically made applicable in such notification or such imposition, a
In section 9A of the Customs Tariff Act, after sub-section (2), the following shall be inserted, namely:-
'(2A) Notwithstanding anything contained in sub-section (1) and sub-section (2), a notification issued under sub-section (1) or any anti-dumping duty imposed under sub-section (2), unless specifically made applicable in such notification or such imposition, as the case may be, shall not apply to articles imported by a hundred per cent. export-oriented undertaking or a unit in a free trade zone or in a special economic zone.
Explanation- For the purposes of this section, the expressions "hundred per cent. export-oriented undertaking", "free trade zone" and "special economic zone" shall have the meanings assigned to them in Explanation 2 to sub-section (1) of section 3 of the Central Excise Act, 1944.'.
In the Customs Tariff Act, the First Schedule shall,-
(a) be amended in the manner specified in the Second Schedule; and
(b) with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, be also amended in the manner specified in the Third Schedule.
In the Central Excise Act, 1944 (hereinafter referred to as the Central Excise Act), in section 3, in sub-section (1),-
(a) in the proviso,-
(i) in clause (i), for the words "free trade zone", the words "free trade zone or a special economic zone" shall be substituted;
(ii) in clause (ii), for the words "allowed to be sold in India", the words "brought to any other place in India" shall be substituted;
(b) in Explanation 2, after clause (ii), the following clause shall be inserted, namely:-
'(iii) "special economic zone" means a zone which the Central Government may, by notification in the Official Gazette, specify in this behalf.'.
Section 3A of the Central Excise Act shall be omitted.
In section 5A of the Central Excise Act, in sub-section (1),-
(a) in the proviso,-
(i) in clause (i), for the words "free trade zone", the words "free trade zone or a special economic zone" shall be substituted;
(ii) in clause (ii), for the words "allowed to be sold in India", the words "brought to any other place in India" shall be substituted;
(b) in the Explanation, for the words '"free trade zone"', the words '"free trade zone", "special economic zone"' shall be substituted.
In section 11A of the Central Excise Act, after sub-section (2), the following shall be inserted, namely:-
'(2A) Where any notice has been served on a person under sub-section (1), the Central Excise Officer,-
(a) in case any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, where it is possible to do so, shall determine the amount of such duty, within a period of one year; and
(b) in any other case, where it is possible to do so, shall determine the amount of duty of excise which has not been levied or paid or has been short-levied o
Section 11AA of the Central Excise Act shall be renumbered as sub-section (1) thereof and after sub-section (1) as so renumbered, the following sub-section shall be inserted, namely:-
"(2) The provisions of sub-section (1) shall not apply to cases where the duty becomes payable on and after the date on which the Finance Bill, 2001 receives the assent of the President.".
In section 11AB of the Central Excise Act,-
(a) for sub-section (1), the following shall be substituted, namely:-
"(1) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person who is liable to pay the duty as determined under sub-section (2), or has paid the duty under sub-section (2B), of section 11A, shall, in addition to the duty, be liable to pay interest at such rate not below eighteen per cent. and not exceeding thirty-six per cent. per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette, from the first date of the month succeeding the month in which the duty ought to have been paid under this Act, or from the date of such erroneous refund, as the case may be, but for the provisions contained in sub-section (2
In section 11BB of the Central Excise Act, for the words "not below ten per cent.", the words "not below five per cent." shall be substituted.
In section 35 of the Central Excise Act, in sub-section (1),-
(a) for the words "within three months", the words "within sixty days" shall be substituted;
(b) for the proviso, the following proviso shall be substituted, namely:-
"Provided that the Commissioner (Appeals) may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of sixty days, allow it to be presented within a further period of thirty days.".
In section 35A of the Central Excise Act,-
(a) in sub-section (3), for the portion beginning with the words and brackets "The Commissioner (Appeals) may" and ending with the words "additional evidence, if necessary:", the following shall be substituted, namely:-
"The Commissioner (Appeals) shall, after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, confirming, modifying or annulling the decision or order appealed against:";
(b) after sub-section (4), the following sub-section shall be inserted, namely:-
"(4A) The Commissioner (Appeals) shall, where it is possible to do so, hear and decide every appeal within a period of six months from the date on which it is filed.".
In section 35E of the Central Excise Act, in sub-section (1), after the words "direct such Commissioner", the words "or any other Commissioner" shall be inserted.
In section 35F of the Central Excise Act, after the proviso, the following proviso shall be inserted, namely: -
"Provided further that where an application is filed before the Commissioner (Appeals) for dispensing with the deposit of duty demanded or penalty levied under the first proviso, the Commissioner (Appeals) shall, where it is possible to do so, decide such application within thirty days from the date of its filing.".
After section 38 of the Central Excise Act, the following section shall be inserted and shall be deemed to have been inserted on and from the 28th day of February, 1944, namely:-
"38A. Effect of amendments, etc., of rules, notifications or orders
Where any rule, notification or order made or issued under this Act or any notification or order issued under such rule, is amended, repealed, superseded or rescinded, then, unless a different intention appears, such amendment, repeal, supersession or rescinding shall not-
(a) revive anything not in force or existing at the time at which the amendment, repeal, supersession or rescinding takes effect; or
(b) affect the previous operation of any rule, notification or order so amended, repealed, superseded or
Any action taken or anything done or omitted to be done or purporting to have been taken or done or omitted to be done under any rule, notification or order made or issued under the Central Excise Act, or any notification or order issued under such rule at any time during the period commencing on and from the 28th day of February, 1944 and ending with the day the Finance Bill, 2001 receives the assent of the President shall be deemed to be and to always have been, for all purposes, as validly and effectively taken or done or omitted to be done as if the amendment made by section 131 of the Finance Act, 2001 had been in force at all material times 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 or omitted to be done, during the said period in respect of any excisab
(1) The amendment of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 168(E), dated the 1st March, 2000 made by the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 98(E) dated the 15th day of February, 2001, which was issued in exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, granting exemption from customs duty leviable under the First Schedule to the Customs Tariff Act and additional duty of customs leviable under sub-section (1) of section 3 of the Customs Tariff Act on import of "Polytan in powder or granule form" by Sports Authority of India for laying synthetic tracks and artificial surfaces for use in a national or international championship or competition to be held in India or abroad shall be deemed to be, and always to have been for all purposes validity, come into force
In the Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act),-
(a) the First Schedule shall be amended in the manner specified in the Fourth Schedule;
(b) the Second Schedule shall be amended in the manner specified in the Fifth Schedule.
The Additional Duties of Excise (Goods of Special Importance) Act, 1957 (hereinafter referred to as the Additional Duties of Excise Act), shall be amended in the manner specified in the Sixth Schedule.
(1) In the case of goods specified in the Seventh Schedule, being goods manufactured or produced, there shall be levied and collected for the purposes of the Union, by surcharge, a duty of excise, to be called the National Calamity Contingent duty (hereinafter referred to as the National Calamity duty), at the rates specified in the said Schedule.
(2) The National Calamity duty chargeable on the goods specified in the Seventh Schedule shall be in addition to any other duties of excise chargeable on such goods under the Central Excise Act, 1944 or any other law for the time being in force.
(3) The provisions of the Central Excise Act, 1944 and the rules made thereunder, including those relating to refunds and exemptions from duties and imposition of penalty, shall, as far as may be, apply in relation to the levy and collection of the Nati
In the Finance Act, 1994, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint,-
(a) for section 65, the following section shall be substituted, namely:-
'65. Definitions- In this Chapter, unless the context otherwise requires,-
(1) "actuary" has the meaning assigned to it in clause (1) of section 2 of the Insurance Act, 1938 (4 of 1938);
(2) "advertisement" includes any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation made by means of light, sound, smoke or gas;
(3) "advertising agency" means any commercial concern engaged in providing any service connected with the making, preparation, display or exhibi
In the Indian Post Office Act, 1898, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, for the First Schedule, the following Schedule shall be substituted, namely:-
"THE FIRST SCHEDULE
(See section 7)
INLAND POSTAGE RATES
Letters
For a weight not exceeding twenty grams : Rs. 4.00
For every twenty grams, or fraction thereof, exceeding twenty grams : Rs. 4.00
Letter-cards
For a letter-card : Rs. 2.00
Post cards
Post cards (not be
In the Central Sales Tax Act, 1956, in section 14,-
(a) after clause (iic), the following clause shall be inserted, namely:-
'(iid) Aviation Turbine Fuel sold to a Turbo-Prop Aircraft.
Explanation-For the purposes of this clause, "Turbo-Prop Aircraft" means an aircraft deriving thrust, mainly from propeller, which may be driven by either turbine engine or piston engine;';
(b) in clause (iv), in sub-clause (i), for the words "pig iron and", the words "pig iron, sponge iron and" shall be substituted.
Section 55 of the National Bank for Agriculture and Rural Development Act, 1981 shall be omitted with effect from the 1st day of April, 2002.
Section 48 of the National Housing Bank Act, 1987 shall be omitted with effect from the 1st day of April, 2002.
Section 50 of the Small Industries Development Bank of India Act, 1989 shall be omitted with effect from the 1st day of April, 2002.
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 exceed Rs. 60,000 10 per cent. of the amount by w
THE SECOND SCHEDULE
[See section 119(a)]
In the First Schedule to the Customs Tariff Act,--
(1) in Chapter 8, for the entries in column (4) and column (5) occurring against each of the sub-heading Nos. 0801.11 and 0801.19, the entries "70%" and "60%" shall respectively be substituted;
(2) in Chapter 9,--
(i) for the entries in column (4) and column (5) occurring against each of the sub-heading Nos. 0901.11, 0901.12, 0901.21, 0901.22 and 0901.90, the entries "70%" and "70% less 13 paise per kg." shall respectively be substituted;
(ii) for the entries in column (4) and column (5) occurring against each of the sub-heading Nos. 0902.10, 0902.20, 0902.30 and 0902.40
THE THIRD SCHEDULE
[See section 119 (A)]
PART I
In the First Schedule to the Customs Tariff Act,--
(1) for the words "heading No." and "headings Nos.", wherever they occur, the word "heading" and "headings" shall respectively be substituted;
(2) for the words "sub-heading No." and "sub-headings Nos.", wherever they occur, the words "sub-heading" and "sub-headings" shall respectively be substituted;
(3) in Chapter 3 --
(i) in NOTE 1, clauses (b) and (c) shall be renumbered as clauses (c) and (d) respectively and for clause (a), the following clauses shall be substituted, namely:--
&nbs
THE FOURTH SCHEDULE
[See section 134 (a)]
PART I
In the First Schedule to the Central Excise Tariff Act,--
(1) in Chapter 21, for NOTE 3, the following NOTE shall be substituted, namely:--
'3. In this Chapter, "Pan masala" means any preparation containing betel-nuts and any one or more of the following ingredients, namely:--
(i) lime; and
(ii) kattha (catechu),
but not tobacco, whether or not containing any other ingredients, such as cardamom, copra and menthol.';
(2) in Chapter 24, after NOTE 5, the following NOTE shall be inse
THE FIFTH SCHEDULE
[See section 134(b)]
PART I
In the Second Schedule to the Central Excise Tariff Act, in sub-heading Nos. 2106.00, 2108.10, 2201.20, 2202.20, 2401.90, 2404.50, 2404.99, 250221, 2502.30, 2502.40, 2502.50, 2502.90, 4301.00, 8703.90, 8704.90, 8706.39, 8706.49, 8903.00, 8907.00, 9302.00, 9303.00, 9304.00, 9305.00, 9306.00 and 9307.00, for the entry in column (4) occurring against each of them, the entry "16%" shall be substituted.
PART II
Heading No. Sub-heading No. Description of goods Rate of special duty of excise
(1) (2) (3) (4)
In the Second Schedule to the Central Excise Tariff Act,--
&nb
THE SIXTH SCHEDULE
(See section 135)
PART I
In the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act --
(1) in sub-heading Nos. 2404.50 and 2404.99, for the entry in column (4) occurring against each of them, the entry "18%" shall be substituted;
(2) in sub-heading Nos. 5110.10, 5110.21, 5110.22, 5110.23, 5110.29, 5111.10, 5111.21, 5111.22, 5111.23 and 5111.29, for the entry in column (4) occurring against each of them, the entry "8%" shall be substituted.
PART II
Heading No. Sub-heading No. Description of goods Rate of additional duty
(1)
THE SEVENTH SCHEDULE
(See section 136)
NOTES
1. In this Schedule, "heading", "sub-heading" and "Chapter" mean respectively a heading, sub-heading and Chapter in the First Schedule to the Central Excise Tariff Act.
2. The rules for the interpretation of the First Schedule to the Central Excise Tariff Act, the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall apply to the interpretation of this Schedule.
Tariff item Description of goods Unit Rate of duty
(1) (2) (3) (4)
2106 90 20 --- Pan Masala Kg. 23%
2402 20 10 --- Other than f
THE EIGHTH SCHEDULE
[See section 115(1)]
Sl. No Notification No. and date Amendment Date of effect of amendment
(1) i (2) (3) (4)
1. G.S.R. 465(E), dated the 3rd May, 1990 (169/90-CUSTOMS, dated the 3rd May, 1990) (i) In the said notification, after condition (ii) and before the Explanation, the following condition shall be inserted, namely,-- 3rd May, 1990.
"(iii) where the licensing authority grants an extension of the period for fulfilment of export obligation in terms of, and subject to satisfaction of such conditions as may be specified in a Public Notice of the Government of India in the Ministry of Commerce in this regard, the said period of fulfilment of export obligation may be extended, but s
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