FINANCE ACT, 2000
(1) This Act may be called the Finance Act, 2000.
(2) Save as otherwise provided in this Act, sections 2 to 77 shall be deemed to have come into force on the 1st day of April, 2000.
(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2000, 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 th
In section 2 of the Income-tax Act,-
(a) in clause (1A), the Explanation shall be numbered as Explanation 1 thereof, and after Explanation 1 as so numbered, the following Explanation shall be inserted with effect from the 1st day of April, 2001, namely:-
"Explanation 2.-For the removal of doubts, it is hereby declared that income derived from any building or land referred to in sub-clause (c) arising from the use of such building or land for any purpose (including letting for residential purpose or for the purpose of any business or profession) other than agriculture falling under sub- clause (a) or sub-clause (b) shall not be agricultural income;";
(b) in clause (19AA), in Explanation 4, for the words, brackets and figures "the conditions specified in sub-clauses (i) to (vii) of this clause,
In section 9 of the Income-tax Act, in sub- section (1), in clause (vi), for Explanation 3, the following Explanation shall be substituted with effect from the 1st day of April, 2001, namely:-
'Explanation 3.-For the purposes of this clause, "computer software" means any computer programme recorded on any disc, tape, perforated media or other information storage device and includes any such programme or any customized electronic data;'.
In section 10 of the Income-tax Act,-
(a) in clause (10C), with effect from the 1st day of April, 2001,-
(i) for the words "voluntary retirement, in accordance with any scheme or schemes of voluntary retirement, to the extent such amount does not exceed five lakh rupees", occurring after sub-clause (viii), the words "voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause (i), a scheme of voluntary separation, to the extent such amount does not exceed five lakh rupees" shall be substituted;
(ii) in the first proviso, the words, brackets and figures "and such schemes in relation to companies referred to in sub-clause (ii) or co- operative societies referred to in sub-
For section 10A of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2001, namely :-
"10A. Special provision in respect of newly established undertakings in free trade zone, etc.-(1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by an undertaking from the export of articles or things or computer software for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce such articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee :
Provided that where in computing the total income of the undertaking for any assessment year, its profits and gains had not been included by appli
For section 10B of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2001, namely :-
"10B. Special provisions in respect of newly established hundred per cent export-oriented undertakings.-(1) Subject to the provisions of this section, a deduction of such profits and gains as are derived by a hundred per cent export-oriented undertaking from the export for articles or things or computer software for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things or computer software, as the case may be, shall be allowed from the total income of the assessee :
Provided that where in computing the total income of the undertaking for any assessment year, its profits an
In section 11 of the Income-tax Act, in sub-section (5),-
(a) in clause (vii), the following proviso shall be inserted with effect from the 1st day of April, 2001, namely:-
"Provided that where an investment or deposit in any public sector company has been made and such public sector company ceases to be a public sector company,-
(A) such investment made in the shares of such company shall be deemed to be an investment made under this clause for a period of three years from the date on which such public sector company ceases to be a public sector company;
(B) such other investment or deposit shall be deemed to be an investment made under this clause for the period up to the date on which such investment or deposit becomes repayable by such company;"
Section 12 of the Income-tax Act shall be numbered as sub-section (1) thereof, and after sub-section (1) as so numbered, the following shall be inserted with effect from the 1st day of April, 2001, namely:-
'(2) The value of any services, being medical or educational services, made available by any charitable or religious trust running a hospital or medical institution or an educational institution, to any person referred to in clause (a) or clause (b) or clause (c) or clause (cc) or clause (d) of sub-section (3) of section 13, shall be deemed to be the income of such trust or institution derived from property held under trust wholly for charitable or religious purposes during the previous year in which such services are so provided and shall be chargeable to income-tax notwithstanding the provisions of sub-section (1) of section 11.
Exp
In section 13 of the Income-tax Act, with effect from the 1st day of April, 2001, after sub-section (5), the following sub-section shall be inserted, namely:-
"(6) Notwithstanding anything contained in sub-section (1) or sub- section (2), but without prejudice to the provisions contained in sub- section (2) of section 12, in the case of a charitable or religious trust running an educational institution or a medical institution or a hospital, the exemption under section 11 or section 12 shall not be denied in relation to any income, other than the income referred to in sub-section (2) of section 12, by reason only that such trust has provided educational or medical facilities to persons referred to in clause (a) or clause (b) or clause (c) or clause (cc) or clause (d) of sub-section (3).".
In section 17 of the Income-tax Act, in clause (2), with effect from the 1st day of April, 2001,-
(a) in sub-clause (iii) but before the Explanation, the following proviso shall be inserted, namely :-
"Provided that nothing contained in this sub-clause shall apply to the value of any benefit provided by a company free of cost or at concessional rate to its employees by way of allotment of shares, debentures or warrants directly or indirectly under the Employees' Stock Option Plan or Scheme of the said company.";
(b) sub-clause (iiia) shall be omitted.
In section 24 of the Income-tax Act, in sub-section (2), in the second proviso, with effect from the 1st day of April, 2001,-
(i) for the figures, letters and words "1st day of April, 2001", the figures, letters and words "1st day of April, 2003" shall be substituted;
(ii) for the words "seventy-five thousand rupees", the words "one lakh rupees" shall be substituted.
After section 25A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2001, namely:-
'25B. Special provision for arrears of rent received.-Where the assessee-
(a) is the owner of any property consisting of any buildings or lands appurtenant thereto which has been let to a tenant; and
(b) has received any amount, by way of arrears of rent from such property, not charged to income-tax for any previous year,
the amount so received, after deducting a sum equal to one-fourth of such amount for repairs of, and collection of rent from, the property, shall be deemed to be the income chargeable under the head "Income from house property" and accordingly charged to income-tax as the income of that previous yea
In section 32 of the Income-tax Act, in sub-section (2), with effect from the 1st day of April, 2001,-
(a) the first proviso shall be omitted;
(b) in the existing second proviso, for the words "Provided further that", the words "Provided that" shall be substituted.
In section 33AC of the Income-tax Act, in sub-section (1), after the proviso, the following proviso shall be inserted with effect from the 1st day of April, 2001, namely:-
'Provided further that for five assessment years commencing on or after the 1st day of April, 2001 and ending before the 1st day of April, 2006, the provisions of this sub-section shall have effect as if for the words "an amount not exceeding fifty per cent. of profits", the words "an amount not exceeding the profits" had been substituted.'.
In section 35 of the Income-tax Act, in sub-section (2AB), in clause (1), for the words "a sum equal to one and one-fourth times of the expenditure", the words "a sum equal to one and one-half times of the expenditure" shall be substituted with effect from the 1st day of April, 2001.
In section 35D of the Income-tax Act, in sub-section (3), in the Explanation, in clause (c), in sub-clause (i), for the words, brackets and figures "which is for the time being approved by the Central Government for the purposes of clause (viii) of sub-section (1) of section 36", the words, brackets and figures "which is eligible for deduction under clause (viii) of sub-section (1) of section 36" shall be substituted.
In section 36 of the Income-tax Act, in sub-section (1), in clause (viia), in the Explanation, in clause (v), for the words, brackets and figures "approved by the Central Government under clause (viii) of this sub-section", the words, brackets and figures "eligible for deduction under clause (viii) of this sub-section" shall be substituted.
In section 43 of the Income-tax Act, in clause (6),-
(a) in Explanation 2A, for the words "book value of the assets", the words "written down value of the assets" shall be substituted;
(b) in Explanation 2B,-
(i) for the words "value of the assets as appearing in the books of account", the words "written down value of the transferred assets as appearing in the books of account" shall be substituted;
(ii) the proviso shall be omitted.
In section 43B of the Income-tax Act, in Explanation 4, in clause (c), for the words, brackets and figures "approved by the Central Government under clause (viii) of sub-section (1) of section 36", the words, brackets and figures "eligible for deduction under clause (viii) of sub-section (1) of section 36" shall be substituted.
In section 47 of the Income-tax Act,-
(a) after clause (iii), the following proviso shall be inserted with effect from the 1st day of April, 2001, namely :-
"Provided that this clause shall not apply to transfer under a gift or an irrevocable trust of a capital asset being shares, debentures or warrants allotted by a company directly or indirectly to its employees under the Employees' Stock Option Plan or Scheme.";
(b) in clause (vic), in sub-clause (a), for the words "at least seventy-five per cent of the shareholders", the words "the shareholders holding not less than three-fourths in value of the shares" shall be substituted.
In section 48 of the Income-tax Act,-
(i) after the third proviso but before the Explanation, the following shall be inserted with effect from the 1st day of April, 2001, namely :-
"Provided also that where shares, debentures or warrants referred to in the proviso to clause (iii) of section 47 are transferred under a gift or an irrevocable trust, the market value on the date of such transfer shall be deemed to be the full value of consideration received or accruing as a result of transfer for the purposes of this section.";
(ii) in the Explanation, for clause (v), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1993, namely :-
'(v) "Cost Inflation Index", in relation to a
In section 49 of the Income-tax Act, sub- section (2B) shall be omitted with effect from the 1st day of April, 2001.
In section 50B of the Income-tax Act, for the Explanation, the following Explanations shall be substituted, namely:-
'Explanation 1 : For the purposes of this section, "net worth" shall be the aggregate value of total assets of the undertaking or division as reduced by the value of liabilities of such undertaking or division as appearing in its books of account:
Provided that any change in the value of assets on account of revaluation of assets shall be ignored for the purposes of computing the net worth.
Explanation 2 : For computing the net worth, the aggregate value of total assets shall be,-
(a) in the case of depreciable assets, the written down value of the block of assets determined in accordance with the provisions contained in sub-item (C)
In section 54EA of the Income-tax Act, in sub-section (1), after the words "transfer of a long-term capital asset", the words, figures and letters "before the 1st day of April, 2000" shall be inserted with effect from the 1st day of April, 2001.
In section 54EB of the Income-tax Act, in sub-section (1), after the words "transfer of a long-term capital asset", the words, figures and letters "before the 1st day of April, 2000" shall be inserted with effect from the 1st day of April, 2001.
After section 54EB of the Income- tax Act, the following section shall be inserted with effect from the 1st day of April, 2001, namely:-
'54EC. Capital gain not to be charged on investment in certain bonds.- (1) Where the capital gain arises from the transfer of a long-term capital asset (the capital asset so transferred being hereafter in this section referred to as the original asset) and the assessee has, at any time within a period of six months after the date of such transfer, invested the whole or any part of capital gains in the long- term specified asset, the capital gain shall be dealt with in accordance with the following provisions of this section, that is to say,-
(a) if the cost of the long-term specified asset is not less than the capital gain arising from the transfer of the original asset, the whole of such capital gain s
In section 54F of the Income-tax Act, in sub-section (1), for the proviso, the following proviso shall be substituted with effect from the 1st day of April, 2001, namely:-
'Provided that nothing contained in this sub-section shall apply where-
(a) the assessee,-
(i) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or
(ii) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or
(iii) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and
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In section 72A of the Income-tax Act, in sub-section (2), in clause (i), for the words "value of assets", the words "book value of fixed assets" shall be substituted.
In section 80E of the Income-tax Act, in sub-section (1), in the proviso, for the words "twenty-five thousand rupees", the words "forty thousand rupees" shall be substituted with effect from the 1st day of April, 2001.
In section 80G of the Income-tax Act, with effect from the 1st day of April, 2001,-
(a) in sub-section (1), in clause (i), after the words, brackets, figures and letter "sub-clause (vii) of clause (a)", the words, brackets and letter "or in clause (c)" shall be inserted;
(b) in sub-section (2), after clause (b), the following clause shall be inserted, namely:-
"(c) any sums paid by the assessee, being a company, in the previous year as donations to the Indian Olympic Association or to any other association or institution as notified by the Central Government under clause (23) of section 10 for-
(i) the development of infrastructure for sports and games; or
(ii) the sponsorship of sports and games,
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In section 80HHB of the Income-tax Act, with effect from the 1st day of April, 2001,-
(a) in sub-section (1), for the words "a deduction from such profits and gains of an amount equal to fifty per cent. thereof", the following shall be substituted, namely:-
"a deduction from such profits and gains of an amount equal to-
(i) forty per cent. thereof for an assessment year beginning on the 1st day of April, 2001;
(ii) thirty per cent. thereof for an assessment year beginning on the 1st day of April, 2002;
(iii) twenty per cent. thereof for an assessment year beginning on the 1st day of April, 2003;
(iv) ten per cent. thereof for an assessment year beginning on the
In section 80HHBA of the Income-tax Act, with effect from the 1st day of April, 2001,-
(a) in sub-section (1), for the words "a deduction from such profits and gains of an amount equal to fifty per cent. thereof", the following shall be substituted, namely:-
"a deduction from such profits and gains of an amount equal to-
(i) forty per cent. thereof for an assessment year beginning on the 1st day of April, 2001;
(ii) thirty per cent. thereof for an assessment year beginning on the 1st day of April, 2002;
(iii) twenty per cent. thereof for an assessment year beginning on the 1st day of April, 2003;
(iv) ten per cent. thereof for an assessment year beginning on th
In section 80HHC of the Income-tax Act, with effect from the 1st day of April, 2001,-
(a) in sub-section (1), for the words "a deduction of the profits", the words, brackets, figure and letter "a deduction to the extent of profits, referred to in sub-section (1B)," shall be substituted;
(b) in sub-section (1A), for the words "a deduction of the profits", the words, brackets, figure and letter "a deduction to the extent of profits, referred to in sub-section (1B)," shall be substituted;
(c) after sub-section (1A), the following sub-section shall be inserted, namely:-
"(1B) For the purposes of sub-sections (1) and (1A), the extent of deduction of the profits shall be an amount equal to-
(i) eighty per cent.
In section 80HHD of the Income-tax Act, in sub-section (1), for the portion beginning with the words "in computing the total income of the assessee, a deduction of a sum equal to the aggregate of-" and ending with the words, brackets and figure "manner laid down in sub-section (4)", the following shall be substituted with effect from the 1st day of April, 2001, namely:-
"in computing the total income of the assessee-
(a) for an assessment year beginning on the 1st day of April, 2001, a deduction of a sum equal to the aggregate of-
(i) forty per cent. of the profits derived by him from services provided to foreign tourists; and
(ii) so much of the amount not exceeding forty per cent. of the profits referred to in sub-clause (i) as is debited to the p
In section 80HHE of the Income-tax Act, with effect from the 1st day of April, 2001,-
(a) in sub-section (1), for the words "a deduction of the profits", the words, brackets, figure and letter "a deduction to the extent of the profits, referred to in sub-section (1B)," shall be substituted;
(b) in sub-section (1A), after the words "in respect of which the certificate has been issued by the said company", the words, brackets, figure and letter "to such extent and for such years as specified in sub-section (1B)," shall be inserted;
(c) after sub-section (1A), the following sub-section shall be inserted, namely:-
"(1B) For the purposes of sub-sections (1) and (1A), the extent of deduction of profits shall be an amount equal to-
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In section 80HHF of the Income-tax Act,-
(a) in sub-section (1),-
(i) after the words "an Indian company", the words and brackets "or a person (other than a company) resident in India" shall be inserted;
(ii) for the words "a deduction of the profits", the words, brackets, figure and letter "a deduction to the extent of profits, referred to in sub-section (1A)," shall be substituted with effect from the 1st day of April, 2001;
(b) after sub-section (1), the following sub-section shall be inserted with effect from the 1st day of April, 2001, namely:-
"(1A) For the purposes of sub-section (1), the extent of deduction of profits shall be an amount equal to-
(i) ei
In section 80-IA of the Income-tax Act,-
(a) in sub-section (3), for the words "any industrial undertaking", the words, brackets and figures "an industrial undertaking referred to in clause (iv) of sub-section (4)" shall be substituted;
(b) in sub-section (4), in clause (i), in the Explanation, for clause (c), the following clause shall be substituted with effect from the 1st day of April, 2001, namely:-
"(c) a water supply project, water treatment system, irrigation project, sanitation and sewerage system or solid waste management system;".
In section 80-IB of the Income-tax Act, with effect from the 1st day of April, 2001,-
(a) in sub-section (3), in clause (ii), for the figures, letters and words "31st day of March, 2000", the figures, letters and words "31st day of March, 2002" shall be substituted;
(b) in sub-section (4), in the first proviso, for the figures, letters and words "31st day of March, 2000", the figures, letters and words "31st day of March, 2002" shall be substituted;
(c) in sub-section (5), in the second proviso to clauses (i) and (ii), for the figures, letters and words "31st day of March, 2000", the figures, letters and words "31st day of March, 2002" shall be substituted;
(d) after sub-section (8), the following sub-section shall be inserted, namely :-
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In section 80L of the Income-tax Act, in sub-section(1),-
(a) in clause (vii),-
(i) after the words "industrial development in India:", the words, brackets and figures "and which is eligible for deduction under clause (viii) of sub-section (1) of section 36;" shall be inserted;
(ii) the proviso shall be omitted;
(b) in clause (x), for the words "for residential purposes:", the words, brackets and figures "for residential purposes and which is eligible for deduction under clause (viii) of sub-section (1) of section 36," shall be substituted.
In section 80-O of the Income-tax Act, for the portion beginning with the words "a deduction of an amount" and ending with the words "total income of the assessee", the following shall be substituted with effect from the 1st day of April, 2001, namely:-
"a deduction of an amount equal to-
(i) forty per cent. for an assessment year beginning on the 1st day of April, 2001;
(ii) thirty per cent. for an assessment year beginning on the 1st day of April, 2002;
(iii) twenty per cent. for an assessment year beginning on the 1st day of April, 2003;
(iv) ten per cent. for an assessment year beginning on the 1st day of April, 2004,
of the income so received in, or brough
In section 80R of the Income-tax Act, for the portion beginning with the words "a deduction from such remuneration of an amount" and ending with the words "competent authority may allow in this behalf", the following shall be substituted with effect from the 1st day of April, 2001, namely:-
"a deduction from such remuneration of an amount equal to-
(i) sixty per cent. of such remuneration for an assessment year beginning on the 1st day of April, 2001;
(ii) forty-five per cent. of such remuneration for an assessment year beginning on the 1st day of April, 2002;
(iii) thirty per cent. of such remuneration for an assessment year beginning on the 1st day of April, 2003;
(iv) fifteen per cent. of such remunera
In section 80RR of the Income-tax Act, for the portion beginning with the words "a deduction from such income of an amount" and ending with the words "competent authority may allow in this behalf", the following shall be substituted with effect from the 1st day of April, 2001, namely:-
"a deduction from such income of an amount equal to-
(i) sixty per cent. of such income for an assessment year beginning on the 1st day of April, 2001;
(ii) forty-five per cent. of such income for an assessment year beginning on the 1st day of April, 2002;
(iii) thirty per cent. of such income for an assessment year beginning on the 1st day of April, 2003;
(iv) fifteen per cent. of such income for an assessment year beginni
In section 80RRA of the Income-tax Act, for the portion beginning with the words "a deduction from such remuneration" and ending with the words "authority may allow in this behalf", the following shall be substituted with effect from the 1st day of April, 2001, namely:-
"a deduction from such remuneration of an amount equal to-
(i) sixty per cent. of such remuneration for an assessment year beginning on the 1st day of April, 2001;
(ii) forty-five per cent. of such remuneration for an assessment year beginning on the 1st day of April, 2002;
(iii) thirty per cent. of such remuneration for an assessment year beginning on the 1st day of April, 2003;
(iv) fifteen per cent. of such remuneration for an assessmen
In section 87 of the Income-tax Act, with effect from the 1st day of April, 2001,-
(a) in sub-section (1), for the word, figures and letter "and 88B", the figures, letters and word "88B and 88C" shall be substituted;
(b) in sub-section (2), after the words, figures and letter "or section 88B", the words, figures and letter "or section 88C" shall be inserted.
In section 88 of the Income-tax Act,-
(a) in sub-section (2), in clause (xv), in sub-clause (c), in item (5), for the words, brackets and figures "which is approved for the purposes of clause (viii) of sub-section (1) of section 36", the words, brackets and figures "which is eligible for deduction under clause (viii) of sub-section (1) of section 36" shall be substituted;
(b) in sub-section (5), for the words "ten thousand rupees", at both the places where they occur, the words "twenty thousand rupees" shall be substituted with effect from the 1st day of April, 2001.
(c) in sub-section (6), in clause (ii), for the words "fourteen thousand rupees", the words "sixteen thousand rupees" shall be substituted with effect from the 1st day of April, 2001.
In section 88B of the Income-tax Act, for the words "ten thousand rupees", the words "fifteen thousand rupees" shall be substituted with effect from the 1st day of April, 2001.
After section 88B of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2001, namely:-
"88C. Rebate of income-tax in case of women below sixty-five years.-An assessee,-
(a) being a woman resident in India; and
(b) below the age of sixty-five years, at any time during the previous year,
shall be entitled to a deduction from the amount of income-tax (as computed before allowing the deductions under this Chapter) on her total income, with which she is chargeable for any assessment year, of an amount equal to hundred per cent. of such income-tax or an amount of five thousand rupees, whichever is less.".
In section 112 of the Income-tax Act, in sub-section (1),-
(a) in the proviso, for the words "being listed securities", the words "being listed securities or unit" shall be substituted;
(b) for the Explanation, the following Explanation shall be substituted, namely:-
'Explanation : For the purposes of this sub-section,-
(a) "listed securities" means the securities-
(i) as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (32 of 1956); and
(ii) listed in any recognised stock exchange in India;
(b) "unit" shall have the meaning assigned to it in clause (b) of Explanation to section 1
In section 115JA of the Income-tax Act, with effect from the 1st day of April, 2001,-
(i) in sub-section (1), after the words, figures and letters "the 1st day of April, 1997", the words, figures and letters "but before the 1st day of April, 2001" shall be inserted;
(ii) in sub-section (2), in the Explanation, in item (i) below clause (f), in the proviso, after the words, figures and letters "the 1st day of April, 1997", the words, figures and letters "but ending before the 1st day of April, 2001" shall be inserted.
In section 115JAA of the Income-tax Act, in sub-sections (4) and (5), after the word, figures and letters "section 115JA", the words, figures and letters "or section 115JB, as the case may be" shall be inserted with effect from the 1st day of April, 2001.
After section 115JAA of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2001, namely:-
'115JB. Special provision for payment of tax by certain companies.-(1) Notwithstanding anything contained in any other provision of this Act, where in the case of an assessee, being a company, the income-tax, payable on the total income as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 2001, is less than seven and one-half per cent. of its book profit, the tax payable for the relevant previous year shall be deemed to be seven and one-half per cent. of such book profit.
(2) Every assessee, being a company, shall, for the purposes of this section, prepare its profit and loss account for the relevant previous year in acc
In section 115-O of the Income-tax Act, in sub-section (1), for the words "ten per cent.", the words "twenty per cent." shall be substituted with effect from the 1st day of June, 2000.
In section 115P of the Income-tax Act, for the words "two per cent.", the words "one and one-half per cent." shall be substituted with effect from the 1st day of June, 2000.
In section 115R of the Income-tax Act, with effect from the 1st day of June, 2000,-
(a) in sub-sections (1) and (2), for the words "ten per cent.", the words "twenty per cent." shall be substituted;
(b) after sub-section (3), the following sub-section shall be inserted, namely:-
"(3A) The person responsible for making payment of the income distributed by the Unit Trust of India or a Mutual Fund and the Unit Trust of India or the Mutual Fund, as the case may be, shall on or before the 15th day of September in each year, furnish to the prescribed income-tax authority, a statement in the prescribed form and verified in the prescribed manner, giving the details of the amount of income distributed to unit holders during the previous year, the tax paid thereon and such other relevant details as may
In section 115S of the Income-tax Act, for the words "two per cent.", the words "one and one-half per cent." shall be substituted with effect from the 1st day of June, 2000.
After Chapter XII-E of the Income- tax Act, the following Chapter shall be inserted with effect from the 1st day of April, 2001, namely:-
CHAPTER XII-F
Special Provisions Relating To Tax On Income Received From Venture Capital Companies And Venture Capital Funds
115U. Tax on income in certain cases.-(1) Notwithstanding anything contained in any other provisions of this Act, any income received by a person out of investments made in a venture capital company or venture capital fund shall be chargeable to income-tax in the same manner as if it were the income received by such person had he made investments directly in the venture capital undertaking.
(2) The person responsible for making payment of the income on behalf of a venture capital company or
In section 139A of the Income-tax Act, after sub-section (1), the following sub-section shall be inserted with effect from the 1st day of June, 2000, namely:-
"(1A) Notwithstanding anything contained in sub-section (1), the Central Government may, by notification in the Official Gazette, specify, any class or classes of persons by whom tax is payable under this Act or any tax or duty is payable under any other law for the time being in force including importers and exporters whether any tax is payable by them or not and such persons shall, within such time as mentioned in that notification, apply to the Assessing Officer for the allotment of a permanent account number."
In section 158BFA of the Income-tax Act, in sub-section (3), in clause (c), after the words, brackets and figures "the Commissioner (Appeals) under section 246", the words, figures and letter "or section 246A" shall be inserted with effect from the 1st day of June, 2000.
In section 194A of the Income-tax Act, in sub-section (3), in clause (i),-
(a) for the words "two thousand five hundred rupees", the words "five thousand rupees" shall be substituted with effect from the 1st day of June, 2000;
(b) in the proviso, in clause (c), for the words "for residential purposes", the words, brackets and figures "for residential purposes and which is eligible for deduction under clause (viii) of sub-section (1) of section 36" shall be substituted.
In section 194L of the Income-tax Act, after the proviso, the following proviso shall be inserted with effect from the 1st day of June, 2000, namely :-
"Provided further that no deduction shall be made under this section from any payment made on or after the 1st day of June, 2000."
In section 220 of the Income-tax Act, in sub-section (6), after the words and figures "under section 246", the words, figures and letter "or section 246A" shall be inserted with effect from the 1st day of June, 2000.
In section 245N of the Income-tax Act, for clauses (a) and (b), the following clauses shall be substituted with effect from the 1st day of June, 2000, namely:-
'(a) "advance ruling" means-
(i) a determination by the Authority in relation to a transaction which has been undertaken or is proposed to be undertaken by a non- resident applicant; or
(ii) a determination by the Authority in relation to a transaction which has been undertaken or is proposed to be undertaken by a resident applicant with a non-resident,
and such determination shall include the determination of any question of law or of fact specified in the application;
(iii) a determination or decision by the Authority in respect of an issue relat
In section 245R of the Income-tax Act, in sub-section (2), for the first proviso, the following proviso shall be substituted with effect from the 1st day of June, 2000, namely:-
"Provided that the Authority shall not allow the application where the question raised in the application, -
(i) is already pending before any income-tax authority or Appellate Tribunal [except in the case of a resident applicant falling in sub- clause (iii) of clause (b) of section 245N] or any Court;
(ii) involves determination of fair market value of any property;
(iii) relates to a transaction or issue which is designed prima facie for the avoidance of income-tax [except in the case of a resident applicant falling in sub-clause (iii) of clause (b) of section 245N]:".
In section 246 of the Income-tax Act, with effect from the 1st day of June, 2000,-
(a) in sub-section (1), after the words and brackets "Deputy Commissioner (Appeals)", the words, figures and letters "before the 1st day of June, 2000" shall be inserted;
(b) after sub-section (1), the following sub-section shall be inserted, namely:-
"(1A) Notwithstanding anything contained in sub-section (1), every appeal filed, on or after the 1st day of October, 1998 but before the 1st day of June, 2000, before the Deputy Commissioner (Appeals) and any matter arising out of or connected with such appeal and which is so pending shall stand transferred to the Commissioner (Appeals) and the Commissioner (Appeals) may proceed with such appeal or matter from the stage at which it was on that day.";
In section 246A of the Income-tax Act, with effect from the 1st day of June, 2000,-
(i) in sub-section (1), after clause (h), the following clause shall be inserted, namely:-
"(ha) an order made under section 201;";
(ii) after sub-section (1), the following sub-section shall be inserted, namely:-
"(1A) Every appeal filed by an assessee in default against an order under section 201 on or after the 1st day of October, 1998 but before the 1st day of June, 2000 shall be deemed to have been filed under this section."
In section 249 of the Income-tax Act, after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of June, 2000, namely:-
"(2A) Notwithstanding anything contained in sub-section (2), where an order has been made under section 201 on or after the 1st day of October, 1998 but before the 1st day of June, 2000 and the assessee in default has not presented any appeal within the time specified in that sub-section, he may present such appeal before the 1st day of July, 2000."
In section 254 of the Income-tax Act, in sub-section (2A), after the words, brackets and figure "under sub- section (1)", the words, brackets and figure "or sub-section (2)" shall be inserted with effect from the 1st day of June, 2000.
In section 267 of the Income-tax Act, after the words and figures "an appeal under section 246", the words, figures and letter "or section 246A" shall be inserted with effect from the 1st day of June, 2000.
In section 275 of the Income-tax Act, in sub-section (1), in clause (a), after the words, brackets and figures "Commissioner (Appeals) under section 246", the words, figures and letter "or section 246A" shall be inserted with effect from the 1st day of June, 2000.
In section 285B of the Income-tax Act, for the words "twenty-five thousand rupees", the words "fifty thousand rupees" shall be substituted with effect from the 1st day of April, 2001.
In section 23 of the Wealth-tax Act, 1957 (27 of 1957) (hereinafter referred to as the Wealth-tax Act), with effect from the 1st day of June, 2000,-
(a) in sub-section (1), after the words and brackets "Deputy Commissioner (Appeals)", the words, figures and letters "before the 1st day of June, 2000," shall be inserted;
(b) in sub-section (1A), after the words and brackets "Commissioner (Appeals)", the words, figures and letters "before the 1st day of June, 2000," shall be inserted;
(c) after sub-section (1A), the following sub-section shall be inserted, namely:-
"(1AA) Notwithstanding anything contained in sub-section (1), every appeal filed, on or after the 1st day of October, 1998, but before the 1st day of June, 2000, before the Deputy Commission
In section 24 of the Wealth-tax Act, in sub-section (5A), after the words, brackets and figure "under sub- section (1)", the words, brackets and figure "or sub-section (2)" shall be inserted with effect from the 1st day of June, 2000.
In section 31 of the Wealth-tax Act, with effect from the 1st day of June, 2000,-
(a) in sub-section (2), in the first proviso, after the words and figures "where as a result of an order under section 23," the words, figures and letter "or section 23A," shall be inserted;
(b) in sub-section (6), after the words and figures "an appeal under section 23", the words, figures and letter "or section 23A" shall be inserted.
In section 34A of the Wealth-tax Act, in sub-section (4B), in clause (c), after the words and figures "or section 23", the words, figures and letter "or section 23A" shall be inserted with effect from the 1st day of June, 2000.
In section 35 of the Wealth-tax Act, in sub-section (1), in clause (c), after the words and figures "under section 23", the words, figures and letter "or section 23A" shall be inserted with effect from the 1st day of June, 2000.
Interest-tax
In the Interest-tax Act, 1974, in section 4, after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of April, 2001, namely:-
"(3) Notwithstanding anything contained in sub-sections (1) and (2), no interest-tax shall be charged in respect of any chargeable interest accruing or arising after the 31st day of March, 2000."
During the period commencing on and from the 16th day of July, 1997 and ending with the 16th day of October, 1998, the provisions of Chapter V of the Finance Act, 1994 shall be deemed to have had effect subject to the following modifications, namely:-
(a) in section 65,-
(i) for clause (6), the following clause had been substituted, namely:-
'(6) "assessee" means a person liable for collecting the service tax and includes-
(i) his agent; or
(ii) in relation to services provided by a clearing and forwarding agent, every person who engages a clearing and forwarding agent and by whom remuneration or commission (by whatever name called) is paid for such services to the said agent; or
&nbs
Notwithstanding anything contained in any judgment, decree or order of any Court, Tribunal or other authority, sub-clauses (xii) and (xvii) of clause (d) of sub-rule (1) of rule 2 of the Service Tax Rules, 1994 as they stood immediately before the commencement of the Service Tax (Amendment) Rules, 1998 shall be deemed to be valid and to have always been valid as if the said sub-clauses had been in force at all material times and accordingly,-
(i) any action taken or anything done or purported to have been taken or done at any time during the period commencing on and from the 16th day of July, 1997 and ending with the day, the Finance Act, 2000 receives the assent of the President shall be deemed to be valid and always to have been valid for all purposes, as validly and effectively taken or done;
(ii) any service tax refunded in pursuance
In the Indian Stamp Act, 1899, for section 8A, the following section shall be substituted, namely :-
'8A. Securities dealt in depository not liable to stamp duty.-(1) Notwithstanding anything contained in this Act or any other law for the time being in force,-
(a) an issuer, by the issue of securities to one or more depositories, shall, in respect of such issue, be chargeable with duty on the total amount of security issued by it and such securities need not be stamped;
(b) where an issuer issues certificate of security under sub-section (3) of section 14 of the Depositories Act, 1996 (22 of 1996), on such certificate duty shall be payable as is payable on the issue of duplicate certificate under this Act;
(c) the transfer of-
&
In the Central Sales Tax Act, 1956 (42 of 1956), in section 9,-
(a) in sub-section (2), for the word "penalty", wherever it occurs, the words "interest or penalty" shall be substituted;
(b) in sub-section (2A), for the words "provisions relating to offences and penalties", the words "provisions relating to offences, interest and penalties" shall be substituted;
(c) after sub-section (2A), the following sub-section shall be inserted, namely:-
"(2B) If the tax payable by any dealer under this Act is not paid in time, the dealer shall be liable to pay interest for delayed payment of such tax and all the provisions for delayed payment of such tax and all the provisions relating to due date for payment of tax, rate of interest for delayed payment of tax
(1) The provisions of section 9 of the Central Sales Tax Act, 1956 (74 of 1956) (hereafter in this section referred to as the Central Sales Tax Act), shall have effect, and shall be deemed always to have had effect, as if that section also provided-
(a) that all the provisions relating to interest of the general sales tax law of each State shall, with necessary modifications, apply in relation to-
(i) the assessment, reassessment, collection and enforcement of payment of any tax required to be collected under the Central Sales Tax Act, in such State; and
(ii) any process connected with such assessment, reassessment, collection or enforcement of payment; and
(b) that for the purposes of the application of the provisions of such law, the tax under the
In the Finance (No. 2) Act, 1998, with effect from the 1st day of September, 1998,-
(a) in section 88, in clause (e), in sub-clause (ii), for the words "two per cent of the tax arrear", the words "two per cent of the disputed chargeable interest" shall be substituted and shall be deemed to have been substituted;
(b) in section 90, in sub-section (2), for the words "within thirty days of the passing of an order by the designated authority", the words "within thirty days from the date of receipt of an order passed by the designated authority" shall be substituted and shall be deemed to have been substituted.
In the Finance Act, 1999, in the First Schedule, in Part III, in the opening portion, for the word, figures and letters "section 115AC", the word, figures and letters "section 115ACA" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1999.
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 amoun
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