FINANCE ACT, 2012
(1) This Act may be called the Finance Act, 2012.
(2) Save as otherwise provided in this Act, sections 2 to 112 shall be deemed to have come into force on the 1st day of April, 2012.
(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2012, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax shall be increased by a surcharge, for purposes of the Union, calculated in each case in the manner provided therein.
(2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds one lakh eighty thousand rupees, then,--
(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first one lakh eighty thousand r
In section 2 of the Income-tax Act,--
(i) in clause (14), at the end, 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 clarified that "property" includes and shall be deemed to have always included any rights in or in relation to an Indian company, including rights of management or control or any other rights whatsoever;';
(ii) in clause (16), after the words, "Commissioner of Income-tax", the words "or a Director of Income-tax" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1988;
(iii) in clause (19AA), in sub-clause (iv), for the words "proportionate
In section 9 of the Income-tax Act, in sub-section (1),--
(a) in clause (1), after Explanation 3, the following Explanations shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1962, namely:--
'Explanation 4.--For the removal of doubts, it is hereby clarified that the expression "through" shall mean and include and shall be deemed to have always meant and included ''by means of", "in consequence of" or "by reason of".
Explanation 5.--For the removal of doubts, it is hereby clarified that an asset or a capital asset being any share or interest in a company or entity registered or incorporated outside India shall be deemed to be and shall always be deemed to have been situated in India, if the share or interest derives, directly or indirectly, its v
In section 10 of the Income-tax Act,--
(A) in clause (10D), with effect from the 1st day of April, 2013,--
(i) in sub-clause (c),--
(I) after the words, figures and letters "the 1st day of April, 2003", the words, figures and letters "but on or before the 31st day of March, 2012" shall be inserted;
(II) for the word "assured:", the words "assured; or" shall be substituted;
(ii) after sub-clause (c) and before the first proviso, the following sub-clause shall be inserted, namely:--
"(d) any sum received under an insurance policy issued on or after the 1st day of April, 2012 in respect of which the premium payable for any of the years during the term of the polic
In section 13 of the Income-tax Act, after sub-section (7) and before Explanation 1, the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2009, namely:--
"(8) Nothing contained in section 11 or section 12 shall operate so as to exclude any income from the total income of the previous year of the person in receipt thereof if the provisions of the first proviso to clause (15) of section 2 become applicable in the case of such person in the said previous year.".
In section 32 of the Income-tax Act, in sub-section (1), in clause (iia), after the words "any article or thing", the words "or in the business of generation or generation and distribution of power" shall be inserted with effect from the 1st day of April, 2013.
In section 35 of the Income-tax Act, in sub-section (2AB), in clause (5), for the words, figures and letters "the 31st day of March, 2012", the words, figures and letters "the 31st day of March, 2017" shall be substituted with effect from the 1st day of April, 2013.
In section 35AD of the Income-tax Act,--
(a) after sub-section (1), the following sub-section shall be inserted with effect from the 1st day of April, 2013, namely:--
"(1A) Where the specified business is of the nature referred to in sub-clause (i) or sub-clause (ii) or sub-clause (v) or sub-clause (vii) or sub-clause (viii) of clause (c) of sub-section (8) and has commenced its operations on or after the 1st day of April, 2012, the deduction under sub-section (1) shall be allowed of an amount equal to one and one-half times of the expenditure referred to therein.";
(b) in sub-section (5), with effect from the 1st day of April, 2013,--
(A) in clause (ae), the word "and" shall be omitted;
(B) after clause
After section 35CCB of the Income-tax Act, the following sections shall be inserted with effect from the 1st day of April, 2013, namely:--
"35CCC. Expenditure on agricultural extension project.--
(1) Where an assessee incurs any expenditure on agricultural extension project notified by the Board in this behalf in accordance with the guidelines as may be prescribed, then, there shall be allowed a deduction of a sum equal to one and one-half times of such expenditure.
(2) Where a deduction under this section is claimed and allowed for any assessment year in respect of any expenditure referred to in sub-section (1), deduction shall not be allowed in respect of such expenditure under any other provisions of this Act for the same or any other assessment year.
In section 40 of the Income-tax Act, in clause (a), in sub-clause (ia), after the proviso and before the Explanation, the following proviso shall be inserted with effect from the 1st day of April, 2013, namely:--
"Provided further that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purpose of this sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the resident payee referred to in the said proviso.".
In section 40A of the Income-tax Act, in sub-section (2), with effect from the 1st day of April, 2013,--
(i) in clause (a), the following proviso shall be inserted, namely:--
"Provided that no disallowance, on account of any expenditure being excessive or unreasonable having regard to the fair market value, shall be made in respect of a specified domestic transaction referred to in section 92BA, if such transaction is at arm's length price as defined in clause (ii) of section 92F.";
(ii) in clause (b), in sub-clause (iv), after the words "or any relative of such director, partner or member", the words "or any other company carrying on business or profession in which the first mentioned company has substantial interest" shall be inserted.
In section 44AB of the Income-tax Act,--
(i) in clause (a), for the words "sixty lakh rupees", the words "one crore rupees" shall be substituted with effect from the 1st day of April, 2013;
(ii) in clause (b), for the words "fifteen lakh rupees", the words "twenty-five lakh rupees" shall be substituted with effect from the 1st day of April, 2013;
(iii) in the Explanation, in clause (ii), for the words, figures and letters "the 30th day of September of the assessment year", the words, brackets and figures "the due date for furnishing the return of income under sub-section (1) of section 139" shall be substituted.
In section 44AD of the Income-tax Act,--
(a) after sub-section (5), and before the Explanation, the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2011, namely:--
"(6) The provisions of this section, notwithstanding anything contained in the foregoing provisions, shall not apply to--
(i) a person carrying on profession as referred to in sub-section (1) of section 44AA;
(ii) a person earning income in the nature of commission or brokerage; or
(iii) a person carrying on any agency business.";
(b) in the Explanation, in clause (b), in sub-clause (ii), for the words "sixty lakh rupees", the w
In section 47 of the Income-tax Act, in clause (vii), in sub-clause (a), for the words "amalgamated company, and", the words "amalgamated company except where the shareholder itself is the amalgamated company, and" shall be substituted with effect from the 1st day of April, 2013.
In section 49 of the Income-tax Act, in sub-section (1), in clause (iii), in sub-clause (e), for the words, brackets, figures and letter "clause (xiiib) of section 47", the words, brackets, figures and letter "clause (xiii) or clause (xiiib) or clause (xiv) of section 47" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 1999.
After section 50C of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2013, namely:--
"50D. Fair market value deemed to be full value of consideration in certain cases.--Where the consideration received or accruing as a result of the transfer of a capital asset by an assessee is not ascertainable or cannot be determined, then, for the purpose of computing income chargeable to tax as capital gains, the fair market value of the said asset on the date of transfer shall be deemed to be the full value of the consideration received or accruing as a result of such transfer.".
In section 54B of the Income-tax Act, in sub-section (1), for the words "the assessee or a parent of his", the words "the assessee being an individual or his parent, or a Hindu undivided family" shall be substituted with effect from the 1st day of April, 2013.
After section 54GA of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2013, namely:--
'54GB. Capital gain on transfer of residential property not to be charged in certain cases.--
(1) Where,--
(i) the capital gain arises from the transfer of a long-term capital asset, being a residential property (a house or a plot of land), owned by the eligible assessee (herein referred to as the assessee); and
(ii) the assessee, before the due date of furnishing of return of income under sub-section (1) of section 139, utilises the net consideration for subscription in the equity shares of an eligible company (herein referred to as the company); and
(iii) the company h
In section 55A of the Income-tax Act, in clause (a), for the words "is less than its fair market value", the words "is at variance with its fair market value" shall be substituted with effect from the 1st day of July, 2012.
In section 56 of the Income-tax Act, in sub-section (2),--
(A) in clause (vii), in the Explanation, for clause (e), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of October, 2009, namely:--
'(e) "relative" means,--
(i) in case of an individual--
(A) spouse of the individual;
(B) brother or sister of the individual;
(C) brother or sister of the spouse of the individual;
(D) brother or sister of either of the parents of the individual;
(E) any lineal ascendant or descendant of the individual;
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In section 68 of the Income-tax Act, the following provisos shall be inserted with effect from the 1st day of April, 2013, namely:--
"Provided that where the assessee is a company, (not being a company in which the public are substantially interested) and the sum so credited consists of share application money, share capital, share premium or any such amount by whatever name called, any explanation offered by such assessee-company shall be deemed to be not satisfactory, unless--
(a) the person, being a resident in whose name such credit is recorded in the books of such company also offers an explanation about the nature and source of such sum so credited; and
(b) such explanation in the opinion of the Assessing Officer aforesaid has been found to be satisfactory:
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In section 80A of the Income-tax Act, in sub-section (6), in the Explanation, after clause (ii), the following clause shall be inserted with effect from the 1st day of April, 2013, namely:--
"(iii) in relation to any goods or services sold, supplied or acquired means the arm's length price as defined in clause (ii) of section 92F of such goods or services, if it is a specified domestic transaction referred to in section 92BA.".
24A. After section 80CCF of the Income-tax Act, the following section shall be inserted with effect from the 1St day of April, 2013, namely:-
"80CCG. Deduction in respect of investment made under an equity savings scheme.-(1) Where an assessee, being a resident individual, has, in a previous year, acquired listed equity shares in accordance with a scheme, as may be notified by the Central Government in this behalf, he shall, subject to the provisions of sub-section (3), be allowed a deduction, in the computation of his total income of the assessment year relevant to such previous year, of fifty per cent. of the amount invested in such equity shares to the extent such deduction does not exceed twenty-five thousand rupees.
(2) Where an assessee has claimed and allowed a deduction under this section for any assessment year in respect of any
In section 80C of the Income-tax Act, with effect from the 1st day of April, 2013,--
(i) in sub-section (3), for the words "insurance policy other than a contract for a deferred annuity", the words, figures and letters "insurance policy, other than a contract for a deferred annuity, issued on or before the 31st day of March, 2012," shall be substituted;
(ii) after sub-section (3), the following shall be inserted, namely:--
'(3A) The provisions of sub-section (2) shall apply only to so much of any premium or other payment made on an insurance policy, other than a contract for a deferred annuity, issued on or after the 1st day of April, 2012 as is not in excess of ten per cent. of the actual capital sum assured.
Explanation.--For the purposes of this
In section 80D of the Income-tax Act, with effect from the 1st day of April, 2013,--
(a) in sub-section (1), for the words ", other than cash,", the words, brackets, figure and letter "as specified in sub-section (2B)," shall be substituted;
(b) in sub-section (2),--
(A) in clause (a), after the words "the Central Government Health Scheme", the words "or any payment made on account of preventive health check-up of the assessee or his family" shall be inserted;
(B) in clause (b), after the words "parents of the assessee", the words "or any payment made on account of preventive health check-up of the parent or parents of the assessee" shall be inserted;
(c) after sub-section (2), the following sub-sections
In section 80DDB of the Income-tax Act, in the Explanation, in clause (iv), for the words "sixty-five years", the words "sixty years" shall be substituted with effect from the 1st day of April, 2013.
In section 80G of the Income-tax Act, after sub-section (5C), the following sub-section shall be inserted with effect from the 1st day of April, 2013, namely:--
"(5D) No deduction shall be allowed under this section in respect of donation of any sum exceeding ten thousand rupees unless such sum is paid by any mode other than cash.".
In section 80GGA of the Income-tax Act, after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of April, 2013, namely:--
"(2A) No deduction shall be allowed under this section in respect of any sum exceeding ten thousand rupees unless such sum is paid by any mode other than cash.".
In section 80-IA of the Income-tax Act, with effect from the 1st day of April, 2013,--
(a) in sub-section (4), in clause (iv), for the words, figures and letters "the 31st day of March, 2012", wherever they occur, the words, figures and letters "the 31st day of March, 2013" shall respectively be substituted;
(b) in sub-section (8), for the Explanation, the following Explanation shall be substituted, namely:--
'Explanation.--For the purposes of this sub-section, "market value", in relation to any goods or services, means--
(i) the price that such goods or services would ordinarily fetch in the open market; or
(ii) the arm's length price as defined in clause (ii) of section 92F, where the transfer of such g
In Chapter VI-A of the Income-tax Act, after Part C, the following Part shall be inserted with effect from the 1st day of April, 2013, namely:--
'CA.--Deductions in respect of other incomes
80TTA. Deduction in respect of interest on deposits in savings account.--
(1) Where the gross total income of an assessee, being an individual or a Hindu undivided family, includes any income by way of interest on deposits (not being time deposits) in a savings account with--
(a) a banking company to which the Banking Regulation Act, 1949(10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act);
(b) a co-operative society engaged in carrying on the business of banking (incl
In section 90 of the Income-tax Act,--
(a) after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of April, 2013, namely:--
"(2A) Notwithstanding anything contained in sub-section (2), the provisions of Chapter X-A of the Act shall apply to the assessee, even if such provisions are not beneficial to him.";
(b) after sub-section (3) and before Explanation 1, the following sub-section shall be inserted with effect from the 1st day of April, 2013, namely:--
"(4) An assessee, not being a resident, to whom an agreement referred to in sub-section (1) applies, shall not be entitled to claim any relief under such agreement unless a certificate, containing such particulars as may be prescribed, of his being a resident
In section 90A of the Income-tax Act,--
(a) after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of April, 2013, namely:--
"(2A) Notwithstanding anything contained in sub-section (2), the provisions of Chapter X-A of the Act shall apply to the assessee, even if such provisions are not beneficial to him.";
(b) after sub-section (3) and before Explanation 1, the following sub-section shall be inserted with effect from the 1st day of April, 2013, namely:--
"(4) An assessee, not being a resident, to whom the agreement referred to in sub-section (1) applies, shall not be entitled to claim any relief under such agreement unless a certificate, containing such particulars as may be prescribed, of his being a reside
In section 92 of the Income-tax Act, with effect from the 1st day of April, 2013,--
(a) in sub-section (2), for the words "international transaction", the words "international transaction or specified domestic transaction" shall be substituted;
(b) after sub-section (2), the following sub-section shall be inserted, namely:--
"(2A) Any allowance for an expenditure or interest or allocation of any cost or expense or any income in relation to the specified domestic transaction shall be computed having regard to the arm's length price.";
(c) in sub-section (3),--
(i) for the words "international transaction", the words "international transaction or specified domestic transaction" shall be substituted.
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In section 92B of the Income-tax Act, after sub-section (2), the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2002, namely:--
'Explanation.--For the removal of doubts, it is hereby clarified that--
(i) the expression "international transaction" shall include--
(a) the purchase, sale, transfer, lease or use of tangible property including building, transportation vehicle, machinery, equipment, tools, plant, furniture, commodity or any other article, product or thing;
(b) the purchase, sale, transfer, lease or use of intangible property, including the transfer of ownership or the provision of use of rights regarding land use, copyrights, patents, trademarks, licences, franchise
After section 92B of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2013, namely:--
'92BA. Meaning of specified domestic transaction.--For the purposes of this section and sections 92, 92C, 92D and 92E, "specified domestic transaction" in case of an assessee means any of the following transactions, not being an international transaction, namely:--
(i) any expenditure in respect of which payment has been made or is to be made to a person referred to in clause (b) of sub-section (2) of section 40A;
(ii) any transaction referred to in section 80A;
(iii) any transfer of goods or services referred to in sub-section (8) of section 80-IA;
(iv) any business tran
In section 92C of the Income-tax Act,--
(a) in sub-section (2),--
(i) in the second proviso, for the words "does not exceed such percentage of latter as may be notified", the words "does not exceed such percentage not exceeding three per cent. of the latter, as may be notified" shall be substituted with effect from the 1st day of April, 2013;
(ii) after the second proviso, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, 2009, namely:--
"Explanation.--For the removal of doubts, it is hereby clarified that the provisions of the second proviso shall also be applicable to all assessment or reassessment proceedings pending before an Assessing Officer as on the 1st day of Octob
In sections 92C, 92D and section 92E of Chapter X of the Income-tax Act, for the words "international transaction" wherever they occur, the words "international transaction or specified domestic transaction" shall respectively be substituted with effect from the 1st day of April, 2013.
In section 92CA of the Income-tax Act,--
(a) in sub-sections (1), (2) and (3), for the words "international transaction", wherever they occur, the words "international transaction or specified domestic transaction" shall respectively be substituted with effect from the 1st day of April, 2013;
(b) after sub-section (2A), the following sub-section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2002, namely:--
"(2B) Where in respect of an international transaction, the assessee has not furnished the report under section 92E and such transaction comes to the notice of the Transfer Pricing Officer during the course of the proceeding before him, the provisions of this Chapter shall apply as if such transaction is an international transaction referre
After section 92CB of the Income-tax Act, the following sections shall be inserted with effect from the 1st day of July, 2012, namely:--
'92CC. Advance pricing agreement.--
(1) The Board, with the approval of the Central Government, may enter into an advance pricing agreement with any person, determining the arm's length price or specifying the manner in which arm's length price is to be determined, in relation to an international transaction to be entered into by that person.
(2) The manner of determination of arm's length price referred to in sub-section (1), may include the methods referred to in sub-section (1) of section 92C or any other method, with such adjustments or variations, as may be necessary or expedient so to do.
(3) Notwithstanding
After Chapter X of the Income-tax Act, the following Chapter shall be inserted with effect from the 1st day of April, 2014, namely:--
'CHAPTER X-A
GENERAL ANTI-AVOIDANCE RULE
95. Applicability of General Anti-Avoidance Rule.--Notwithstanding anything contained in the Act, an arrangement entered into by an assessee may be declared to be an impermissible avoidance arrangement and the consequence in relation to tax arising therefrom may be determined subject to the provisions of this Chapter.
Explanation.--For the removal of doubts, it is hereby declared that the provisions of this Chapter may be applied to any step in, or a part of, the arrangement as they are applicable to the arrangement.
96. Impermissibl
In section 111A of the Income-tax Act, in sub-section (1), in the proviso, for the words "ten per cent.", the words "fifteen per cent." shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2009.
In section 112 of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2013,-
(A) in clause (c), for sub-clause (ii), the following sub-clauses shall be substituted, namely: -
"(ii) the amount of income tax calculated on long term capital gains [except where such gain arises from transfer of capital asset referred to in sub-clause (iii)] at the rate of twenty per cent. ; and
(iii) the amount of income tax on long term capita) gains arising from the transfer of a capital asset, being unlisted securities, calculated at the rate often per cent. on the capital gains in respect of such asset as computed without giving effect to the first and second proviso to section 48.";
(B) in the Explanation, for clause (a), the following cl
In section 115A of the Income-tax Act, with effect from the 1st day of July, 2012, in sub-section (1), in clause (a),--
(a) in sub-clause (ii), for the word, brackets, figures and letter "clause (iia)", the words, brackets, figures and letters "sub-clause (iia) or sub-clause (iiaa)" shall be substituted;
(b) after sub-clause (iia), the following sub-clause shall be inserted, namely:--
"(iiaa) interest of the nature and extent referred to in section 194LC; or";
(c) in item (BA), after the word, brackets, figures and letter "sub-clause (iia)", the words, brackets, figures and letters "or sub-clause (iiaa)" shall be inserted;
(d) in item (D), after the word, brackets, figures and letter "sub-clause (iia)", t
In section 115BBA of the Income-tax Act, with effect from the 1st day of April, 2013,--
(a) in sub-section (1),--
(i) in clause (b), the word "; or" shall be inserted at the end;
(ii) after clause (b), and before the words "the income-tax payable by the assessee", the following clause shall be inserted, namely:--
"(c) being an entertainer, who is not a citizen of India and is a non-resident, includes any income received or receivable from his performance in India,";
(iii) for the words, brackets and letters "clause (a) or clause (b)", wherever they occur, the words, brackets and letters "clause (a) or clause (b) or clause (c)" shall respectively be substituted;
In section 115BBD of the Income-tax Act, in sub-section (1), after the words, figures and letters "the 1st day of April, 2012", the words, figures and letters "or beginning on the 1st day of April, 2013" shall be inserted with effect from the 1st day of April, 2013.
After section 115BBD of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2013, namely:--
"115BBE. Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D.--
(1) Where the total income of an assessee includes any income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D, the income-tax payable shall be the aggregate of--
(a) the amount of income-tax calculated on income referred to in section 68, section 69, section 69A, section 69B, section 69C or section 69D, at the rate of thirty per cent.; and
(b) the amount of income-tax with which the assessee would have been chargeable had his total income been re
In section 115JB of the Income-tax Act,--
(A) in sub-section (2), with effect from the 1st day of April, 2013,--
(i) for the portion beginning with the words "Every assessee," and ending with the words and figures "the Companies Act, 1956(1 of 1956):", the following shall be substituted, namely:--
"Every assessee,--
(a) being a company, other than a company referred to in clause (b), shall, for the purposes of this section, prepare its profit and loss account for the relevant previous year in accordance with the provisions of Part II of Schedule VI to the Companies Act, 1956(1 of 1956); or
(b) being a company, to which the proviso to sub-section (2) of section 211 of the Companies Act, 1956(1 of 1956) is
In Chapter XII-BA of the Income-tax Act, in the heading, for the words "LIMITED LIABILITY PARTNERSHIPS", the words "PERSONS OTHER THAN A COMPANY" shall be substituted with effect from the 1st day of April, 2013.
For section 115JC of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2013, namely:--
'115JC. Special provisions for payment of tax by certain persons other than a company.--
(1) Notwithstanding anything contained in this Act, where the regular income-tax payable for a previous year by a person, other than a company, is less than the alternate minimum tax payable for such previous year, the adjusted total income shall be deemed to be the total income of that person for such previous year and he shall be liable to pay income-tax on such total income at the rate of eighteen and one-half per cent.
(2) Adjusted total income referred to in sub-section (1) shall be the total income before giving effect to this Chapter as increased by--
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In section 115JD of the Income-tax Act, in sub-section (1), for the words, figures and letters "a limited liability partnership under section 115JC shall be allowed to it", the words, figures and letters "a person under section 115JC shall be allowed to him" shall be substituted with effect from the 1st day of April, 2013.
In section 115JE of the Income-tax Act, for the words "a limited liability partnership", the words "a person" shall be substituted with effect from the 1st day of April, 2013.
After section 115JE of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2013, namely:--
'115JEE. Application of this Chapter to certain persons.--
(1) The provisions of this Chapter shall apply to a person who has claimed any deduction under--
(a) any section (other than section 80P) included in Chapter VI-A under the heading "C.--Deductions in respect of certain incomes"; or
(b) section 10AA.
(2) The provisions of this Chapter shall not apply to an individual or a Hindu undivided family or an association of persons or a body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of sec
In section 115JF of the Income-tax Act, with effect from the 1st day of April, 2013,--
(i) clause (c) shall be omitted;
(ii) in clause (d), for the words "a limited liability partnership on its total income", the words "a person on his total income" shall be substituted.
In section 115-O of the Income-tax Act, in sub-section (1A), in clause (i), with effect from the 1st day of July, 2012,--
(i) in sub-clause (a), the word "and" shall be inserted at the end;
(ii) in sub-clause (b), for the words "paid tax under this section on such dividend; and", the words "paid the tax which is payable under this section on such dividend:" shall be substituted;
(iii) sub-clause (c) shall be omitted.
After chapter XII-BA, the following Chapter shall be inserted with effect from the 1st day of April 2013, namely:-
"Chapter XII-BB
SPECIAL PROVISIONS RELATING TO CONVERSION OF INDIAN BRANCH OF A FOREIGN BANK INTO A SUBSIDIARY COMPANY
115JG. Conversion of an Indian branch of Foreign Company into subsidiary Indian company.--
(1) Where a foreign company is engaged in the business of banking in India through its branch situate in India and such branch is converted into a subsidiary company thereof, being an Indian company (hereafter referred to as an Indian subsidiary company) in accordance with the scheme framed by the Reserve Bank of India, then, notwithstanding anything contained in the Act and subject to the conditions as may be notified by the Cent
In section 115U of the Income-tax Act,--
(i) with effect from the 1st day of April, 2013,--
(a) in sub-section (1), for the words "income received", at both the places where they occur, the words "income accruing or arising to or received" shall respectively be substituted;
(b) in sub-sect ion (2),--
(i) for the words 'The person responsible for making", the words 'The person responsible for crediting or making" shall be substituted;
(ii) for the words "to the person receiving such income", the words "to the person who is liable to tax in respect of such income" shall be substituted;
(iii) for the words "income paid", the words "income paid or credited" shall b
In section 115VG of the Income-tax Act, in sub-section (3), for the Table, the following Table shall be substituted with effect from the 1st day of April, 2013, namely:--
'TABLE
Qualifying ship having net tonnage Amount of daily tonnage income
(1) (2)
up to 1,000 Rs. 70 for each 100 tons
exceeding 1,000 but not
more than 10,000 Rs. 700 plus Rs. 53 for each 100 tons
exceeding 1,000 tons
exceeding 10,000 but not
more than 25,000 Rs. 5,470 plus Rs. 42 for each 100 tons
In section 139 of the Income-tax Act, in sub-section (1),--
(a) after the third proviso, the following proviso shall be inserted, namely:--
"Provided also that a person, being a resident, other than not ordinarily resident in India within the meaning of clause (6) of section 6 who is not required to furnish a return under this sub-section and who during the previous year has any asset (including any financial interest in any entity) located outside India or signing authority in any account located outside India, shall furnish, on or before the due date, a return in respect of his income or loss for the previous year in such form and verified in such manner and setting forth such other particulars as may be prescribed.".
(b) in Explanation 2,--
(i) i
In section 140A of the Income-tax Act, with effect from the 1st day of April, 2013,--
(i) in sub-section (1), in clause (v), after the word, figures and letters "section 115JAA", the words, figures and letters "or section 115JD" shall be inserted;
(ii) in sub-section (1A), in clause (i), in sub-clause (e), after the word, figures and letters "section 115JAA", the words, figures and letters "or section 115JD" shall be inserted;
(iii) in sub-section (1B), in the Explanation, in clause (iv), after the word, figures and letters "section 115JAA", the words, figures and letters "or section 115JD" shall be inserted.".
In section 143 of the Income-tax Act,--
(a) after sub-section (1C), the following sub-section shall be inserted with effect from the 1st day of July, 2012, namely:--
"(1D) Notwithstanding anything contained in sub-section (1), the processing of a return shall not be necessary, where a notice has been issued to the assessee under sub-section (2).".
(b) in sub-section (3), after the second proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2009, namely:--
"Provided also that notwithstanding anything contained in the first and the second proviso, no effect shall be given by the Assessing Officer to the provisions of clause (23C) of section 10 in the case of a trust or instit
After section 144B of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2014, namely:--
"144BA. Reference to Commissioner in certain cases.--
(1) If, the Assessing Officer, at any stage of the assessment or reassessment proceedings before him having regard to the material and evidence available, considers that it is necessary to declare an arrangement as an impermissible avoidance arrangement and to determine the consequence of such an arrangement within the meaning of Chapter X-A, then, he may make a reference to the Commissioner in this regard.
(2) The Commissioner shall, on receipt of a reference under sub-section (1), if he is of the opinion that the provisions of Chapter X-A are required to be invoked, issue a notice to the assessee, settin
In section 144C of the Income-tax Act,--
(a) in sub-section (4), for the words and figures "in section 153", the words, figures and letter "in section 153 or section 153B" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of October, 2009;
(b) after sub-section (8), the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2009, namely:--
"Explanation.--For the removal of doubts, it is hereby declared that the power of the Dispute Resolution Panel to enhance the variation shall include and shall be deemed always to have included the power to consider any matter arising out of the assessment proceedings relating to the draft order, notwithstanding that such matter was raised or not by
In section 147 of the Income-tax Act, with effect from the 1st day of July, 2012--
(i) after the first proviso, the following proviso shall be inserted, namely:--
"Provided further that nothing contained in the first proviso shall apply in a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any assessment year:";
(ii) in the second proviso, for the words "Provided further", the words "Provided also" shall be substituted;
(iii) in Explanation 2,--
(I) after clause (b), the following clause shall be inserted, namely:--
"(ba) where the assessee has failed
In section 149 of the Income-tax Act, with effect from the 1st day of July, 2012,--
(A) in sub-section (1),--
(i) in clause (a), after the word, brackets and letter "clause (b)", the words, brackets and letter "or clause (c)" shall be inserted;
(ii) after clause (b), the following clause shall be inserted, namely:--
"(c) if four years, but not more than sixteen years, have elapsed from the end of the relevant assessment year unless the income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment.";
(B) in sub-section (3), for the words "two years", the words "six years" shall be substituted;
&
In section 153 of the Income-tax Act,--
(A) with effect from the 1st day of July, 2012,--
(i) in sub-section (1),--
(a) in the first proviso, for the words, figures and letters "on the 1st day of April, 2004 or any subsequent assessment year", the words, figures and letters "on or after the 1st day of April, 2004 but before the 1st day of April, 2010" shall be substituted;
(b) in the second proviso, for the words, figures and letters "on the 1st day of April, 2005 or any subsequent assessment year", the words, figures and letters "on or after the 1st day of April, 2005 but before the 1st day of April, 2009" shall be substituted;
(c) after the second proviso, the following proviso shall be inserted, namely
In section 153A of the Income-tax Act, in sub-section (1), after the second proviso, the following proviso shall be inserted with effect from the 1st day of July, 2012, namely:--
'Provided also that the Central Government may by rules made by it and published in the Official Gazette (except in cases where any assessment or reassessment has abated under the second proviso), specify the class or classes of cases in which the Assessing Officer shall not be required to issue notice for assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made.".
In section 153B of the Income-tax Act,--
(I) in sub-section (1) with effect from the 1st day of July, 2012,--
(i) in the second proviso, for the words, figures and letters "on the 1st day of April, 2004 or any subsequent financial year", the words, figures and letters "on or after the 1st day of April, 2004 but before the 1st day of April, 2010" shall be substituted;
(ii) in the third proviso for the words, figures and letters "on the 1st day of April, 2005 or any subsequent financial year", the words, figures and letters "on or after the 1st day of April, 2005 but before the 1st day of April, 2009" shall be substituted;
(iii) after the third proviso, the following proviso shall be inserted, namely:--
'Pr
In section 153C 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 July, 2012, namely:--
"Provided further that the Central Government may by rules made by it and published in the Official Gazette, specify the class or classes of cases in respect of such other person, in which the Assessing Officer shall not be required to issue notice for assessing or reassessing the total income for six assessment years immediately preceding the assessment year relevant to the previous year in which search is conducted or requisition is made except in cases where any assessment or reassessment has abated.".
In section 154 of the Income-tax Act, with effect from the 1st day of July, 2012,--
(a) in sub-section (1), after clause (b), the following clause shall be inserted, namely:--
"(c) amend any intimation under sub-section (1) of section 200A.";
(b) in sub-section (2), in clause (b), for the words "by the assessee", the words "by the assessee or by the deductor," shall be substituted;
(c) in sub-section (3), for the words "the assessee", wherever they occur, the words "the assessee or the deductor" shall respectively be substituted;
(d) for sub-section (5), the following sub-section shall be substituted, namely:--
"(5) Where any such amendment has the effect of re
In section 193 of the Income-tax Act, in the proviso, for clause (v), the following clause shall be substituted with effect from the 1st day of July, 2012, namely:--
"(v) any interest payable to an individual or a Hindu undivided family, who is resident in India, on any debenture issued by a company in which the public are substantially interested, if--
(a) the amount of interest or, as the case may be, the aggregate amount of such interest paid or likely to be paid on such debenture during the financial year by the company to such individual or Hindu undivided family does not exceed five thousand rupees; and
(b) such interest is paid by the company by an account payee cheque;".
In section 194E of the Income-tax Act, with effect from the 1st day of July, 2012,--
(a) after the words and brackets "is payable to a non-resident sportsman (including an athlete)", the words "or an entertainer," shall be inserted;
(b) for the words "ten per cent.", the words "twenty per cent." shall be substituted.
In section 194J of the Income-tax Act, in sub-section (1), after clause (b), the following clause shall be inserted with effect from the 1st day of July, 2012, namely:--
"(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company; or".
In section 194LA of the Income-tax Act, in the proviso, for the words "one hundred thousand rupees", the words "two hundred thousand rupees" shall be substituted with effect from the 1st day of July, 2012.
After section 194LA of the Income-tax Act, the following section shall be inserted with effect from the 1st day of October, 2012, namely:--
"194LAA. Payment on transfer of certain immovable property other than agricultural land.--
(1) Any person, being a transferee, responsible for paying (other than the person referred to in section 194LA) to a resident transferor any sum by way of consideration for transfer of any immovable property (other than agricultural land), shall, at the time of credit of such sum to the account of the transferor or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to one per cent. of such sum as income-tax thereon.
(2) No deduction under sub-section (1) shall be made where co
After section 194LB of the Income-tax Act, the following section shall be inserted with effect from the 1st day of July, 2012, namely:--
'194LC. Income by way of interest from Indian company.--
(1) Where any income by way of interest referred to in sub-section (2) is payable to a non-resident, not being a company or to a foreign company by a specified company, the person responsible for making the payment, shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct the income-tax thereon at the rule of five per cent.
(2) The interest referred to in sub-section (1) shall be the income by way of interest payable by the specified company,-
&
In section 195 of the Income-tax Act,--
(a) in sub-section (1),--
(i) for the words "any interest", the words, brackets, figures and letters "any interest (not being interest referred to in section 194LB or section 194LC)" shall be substituted;
(ii) the Explanation shall be numbered as Explanation 1 thereof, and after Explanation 1 as so numbered, 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 2.--For the removal of doubts, it is hereby clarified that the obligation to comply with sub-section (1) and to make deduction thereunder applies and shall be deemed to have always applied and extends and shall be deemed to have always extended to all per
"76. In section 197A of the Income-tax Act, with effect from the 1st day of July, 2012,-
(a) in sub-section (1C), for the words "sixty-five years", the words "sixty years" shall be substituted;
(b) after sub-section (1E), the following sub-section shall be inserted, namely:-
"(1F) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made from such specified payment to such institution, association or body or class of institutions, associations or bodies as may be notified by the Central Government in the Official Gazette, in this behalf."
In section 201 of the Income-tax Act,--
(A) with effect from the 1st day of July, 2012--
(i) in sub-section (1),--
(a) before the proviso, the following proviso shall be inserted, namely:--
"Provided that any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident--
(i) has furnished his return of income under section 139;
(ii) has taken into account such sum for computing income in such return
In section 204 of the Income-tax Act, after clause (iii) and before the Explanation, the following clause shall be inserted with effect from the 1st day of July, 2012, namely:--
"(iv) in the case of credit, or as the case may be, payment of any sum chargeable under the provisions of this Act made by or on behalf of the Central Government or the Government of a State, the drawing and disbursing officer or any other person, by whatever name called, responsible for crediting, or as the case may be, paying such sum.".
In section 206C of the Income-tax Act, with effect from the 1st day of July, 2012,--
(a) in sub-section (1), in the Table, after serial number (vi) and the entries relating thereto, the following serial number and entries shall be inserted, namely:--
Sl. No. Nature of goods Percentage
(1) (2) (3)
"(vii) Minerals, being coal or lignite or iron ore one per cent:";
(aa) in sub-section (1A), after the words "articles or things", the words "or for the purposes of generation of power" shall be inserted;
(b) after sub-section (1C), the following sub-section shall be inserted, namely:--
"(1D) Every person, being a seller, wh
Section 207 of the Income-tax 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 an individual resident in India, who--
(a) does not have any income chargeable under the head "Profits and gains of business or profession"; and
(b) is of the age of sixty years or more at any time during the previous year.".
In section 209 of the Income-tax Act, in sub-section (1), in clause (d), the following proviso shall be inserted, namely:--
"Provided that for computing liability for advance tax, income-tax calculated under clause (a) or clause (b) or clause (c) shall not, in each case, be reduced by the aforesaid amount of income-tax which would be deductible or collectible at source during the said financial year under any provision of this Act from any income, if the person responsible for deducting tax has paid or credited such income without deduction of tax or it has been received or debited by the person responsible for collecting tax without collection of such tax.".
'81A In section 220 of the Income-tax Act, after sub-section (2A), the following sub-section shall be inserted, with effect from the 1st day of July, 2012, namely:--
"(2B) Notwithstanding anything contained in sub-section (2), where interest is charged under sub-section (I A) of section 201 on the amount of tax specified in the intimation issued under sub-section (1) of section 200A for any period, then, no interest shall be charged under sub-section (2) on the same amount for the same period."
In section 234A of the Income-tax Act, in sub-section (1), in clause (vi), after the word, figures and letters "section 115JAA", the words, figures and letters "or section 115JD" shall be inserted with effect from the 1st day of April, 2013.
In section 234B of the Income-tax Act, in sub-section (1), in Explanation 1, in clause (v), after the word, figures and letters "section 115JAA", the words, figures and letters "or section 115JD" shall be inserted with effect from the 1st day of April, 2013.
In section 234C of the Income-tax Act, in sub-section (1), in the Explanation, in clause (v), after the word, figures and letters "section 115JAA", the words, figures and letters "or section 115JD" shall be inserted with effect from the 1st day of April, 2013.
In section 234D of the Income-tax Act, the Explanation shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2003, namely:--
"Explanation 2.--For the removal of doubts, it is hereby declared that the provisions of this section shall also apply to an assessment year commencing before the 1st day of June, 2003 if the proceedings in respect of such assessment year is completed after the said date.".
After section 234D of the Income-tax Act, the following sub-heading and section shall be inserted with effect from the 1st day of July, 2012, namely:--
"G.--Levy of fee in certain cases
234E. Fee for defaults in furnishing statements.--
(1) Without prejudice to the provisions of the Act, where a person fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum of two hundred rupees for every day during which the failure continues.
(2) The amount of fee referred to in sub-section (1) shall not exceed the amount of tax deductible or collectible, as the case may be.
&
In section 245N of the Income-tax Act, with effect from the 1st day of April, 2013,-
(I) in clause (a), after sub-clause (iii) and before the proviso, the following sub-clause shall be inserted, namely:-
(iv) a determination or decision by the Authority whether an arrangement, which is proposed to be undertaken by any person being a resident or a non-resident, is an impermissible avoidance arrangement as referred to in Chapter X-A or not.";
(II) in clause (b),-
(i) in sub-clause (iii), for the word "and", occurring at the end, the word "or" shall be substituted;
(ii) after sub-clause (iii), the following sub-clause shall be inserted, namely:-
"(iiia) is referre
In section 245C of the Income-tax Act, in sub-section (1), in the proviso, in the Explanation, in clause (b), for the words "at any time during the previous year", at both the places where they occur, the words "on the date of search" shall respectively be substituted with effect from the 1st day of July, 2012.
In section 245R of the Income-tax Act, in sub-section (2), in the first proviso, in clause (iii), after the word, figures and letter "section 245N", the words, brackets figures and letters "or in the case of an applicant falling in sub-clause (iiia) of clause (6) of section 245N" shall be inserted with effect from the 1 day of April, 2013.
In section 245Q of the Income-tax Act, in sub-section (2), for the words "two thousand five hundred rupees", the words "ten thousand rupees or such fee as may be prescribed in this behalf, whichever is higher" shall be substituted with effect from the 1st day of July, 2012.
In section 246A of the Income-tax Act, in sub-section (1),--
(i) for the words "Any assessee aggrieved", the words "Any assessee or any deductor aggrieved" shall be substituted with effect from the 1st day of July, 2012;
(ii) in clause (a),--
(I) for the words and figures "section 143, where the assessee objects", the words, figures, brackets and letter "section 143 or sub-section (1) of section 200A, where the assessee or the deductor objects" shall be substituted with effect from the 1st day of July, 2012;
(II) for the words "except an order passed in pursuance of directions of the Dispute Resolution Panel", the brackets, words, figures and letters "[except an order passed in pursuance of directions of the Dispute Resolution Panel or an order refe
In section 253 of the Income-tax Act(52 of 1962),--
(A) in sub-section (1),--
(i) in clause (d), for the word and figures "section 147", the words, figures and letters "section 147 or section 153A or section 153C" shall be substituted with effect from the 1st day of October, 2009;
(ii) after clause (d), the following clause shall be inserted with effect from the 1st day of April, 2013, namely:--
"(e) an order passed by an Assessing Officer under sub-section (3) of section 143 or section 147 or section 153A or section 153C with the approval of the Commissioner as referred to in sub-section (12) of section 144BA or an order passed under section 154 or section 155 in respect of such order;";
(B) with effect
In section 254 of the Income-tax Act, in sub-section (2A), after the words, brackets and figures "under sub-section (1) or sub-section (2)", the words, brackets, figure and letter "or sub-section (2A)" shall be inserted with effect from the 1st day of July, 2012.
In section 271 of the Income-tax Act, in sub-section (1), in Explanation 7, for the words "international transaction", the words "international transaction or specified domestic transaction" shall be substituted with effect from the 1st day of April, 2013.
For section 271AA of the Income-tax Act, the following section shall be substituted with effect from the 1st day of July, 2012, namely:--
"271AA. Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions.--Without prejudice to the provisions of section 271 or section 271BA, if any person in respect of an international transaction,--
(i) fails to keep and maintain any such information and document as required by sub-section (1) or sub-section (2) of section 92D;
(ii) fails to report such transaction which he is required to do so; or
(iii) maintains or furnishes an incorrect information or document, the Assessing Officer or Commissioner (Appeals) may direct that such person shall pay, by way of penalty
In section 271 AA of the Income-tax Act, as so substituted by section 93 of this Act, for the words "international transaction", the words "international transaction or specified domestic transaction" shall be substituted with effect from the 1st day of April, 2013.
In section 271AAA of the Income-tax Act, in sub-section (1), after the words, figures and letters "on or after the 1st day of June, 2007", the words, figures and letters "but before the 1st day of July, 2012" shall be inserted.
After section 271AAA of the Income-tax Act, the following section shall be inserted with effect from the 1st day of July, 2012, namely:--
'271AAB. Penalty where search has been initiated.--
(1) The Assessing Officer may, notwithstanding anything contained in any other provisions of this Act, direct that, in a case where search has been initiated under section 132 on or after the 1st day of July, 2012, the assessee shall pay by way of penalty, in addition to tax, if any, payable by him,--
(a) a sum computed at the rate of ten per cent. of the undisclosed income of the specified previous year, if such assessee--
(i) in the course of the search, in a statement under sub-section (4) of section 132, admits the undisclosed income and specifies the manner
In section 271G of the Income-tax Act, for the words "international transaction", at both the places where they occur, the words "international transaction or specified domestic transaction" shall respectively be substituted with effect from the 1st day of April, 2013.
After section 271G of the Income-tax Act, the following section shall be inserted with effect from the 1st day of July, 2012, namely:--
"271H. Penalty for failure to furnish statements, etc.--
(1) Without prejudice to the provisions of the Act, a person shall be liable to pay penalty, if, he--
(a) fails to deliver or cause to be delivered a statement within the time prescribed in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C; or
(b) furnishes incorrect information in the statement which is required to be delivered or cause to be delivered under sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C.
(2) The penalty referred to in sub-section (1)
In section 272A 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 July, 2012, namely:--
"Provided further that no penalty shall be levied under this section for the failure referred to in clause (k), if such failure relates to a statement referred to in sub-section (3) of section 200 or the proviso to sub-section (3) of section 206C which is to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012.".
In section 273B of the Income-tax Act, after the word, figures and letter "section 271G,", the word, figures and letter "section 271H," shall be inserted with effect from the 1st day of July, 2012.
In section 276C of the Income-tax Act, with effect from the 1st day of July, 2012,--
(i) in sub-section (1),--
(a) in clause (i), for the words "one hundred thousand rupees", the words "twenty-five hundred thousand rupees" shall be substituted;
(b) in clause (ii), for the words "three years", the words "two years" shall be substituted;
(ii) in sub-section (2), for the words "three years", the words "two years" shall be substituted.
In section 276CC of the Income-tax Act, with effect from the 1st day of July, 2012,--
(a) in clause (i), for the words "one hundred thousand rupees", the words "twenty-five hundred thousand rupees" shall be substituted;
(b) in clause (ii), for the words "three years", the words "two years" shall be substituted.
In section 277 of the Income-tax Act, with effect from the 1st day of July, 2012,--
(a) in clause (i), for the words "one hundred thousand rupees", the words "twenty-five hundred thousand rupees" shall be substituted;
(b) in clause (ii), for the words "three years", the words "two years" shall be substituted.
In section 277A of the Income-tax Act, for the words "three years", the words "two years" shall be substituted with effect from the 1st day of July, 2012.
In section 278 of the Income-tax Act, with effect from the 1st day of July, 2012,--
(a) in clause (i), for the words "one hundred thousand rupees", the words "twenty-five hundred thousand rupees" shall be substituted;
(b) in clause (ii), for the words "three years", the words "two years" shall be substituted.
In Chapter XXII of the Income-tax Act, after section 280, the following sections shall be inserted, with effect from the 1st day of July, 2012, namely:--
"280A. Special Courts.--
(1) The Central Government, in consultation with the Chief Justice of the High Court, may, for trial of offences punishable under this Chapter, by notification, designate one or more courts of Magistrates of the first class as Special Court for such area or areas or for such cases or class or group of cases as may be specified in the notification.
Explanation.--In this sub-section, "High Court" means the High Court of the State in which a Magistrate of first class designated as Special Court was functioning immediately before such designation.
(2) While trying an offence un
After section 292C 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, 1976, namely:--
"292CC. Authorisation and assessment in case of search or requisition.--
(1) Notwithstanding anything contained in this Act,--
(i) it shall not be necessary to issue an authorisation under section 132 or make a requisition under section 132A separately in the name of each person;
(ii) where an authorisation under section 132 has been issued or requisition under section 132A has been made mentioning therein the name of more than one person, the mention of such names of more than one person on such authorisation or requisition shall not be deemed to construe that it was issue
In the Fourth Schedule to the Income-tax Act, in Part A, in rule 3, in sub-rule (1) in the first proviso, for the words, figures and letters "the 31st day of March, 2012", the words, figures and letters "the 31st day of March, 2013" shall be substituted with effect from the 1st day of April, 2012.
In section 296 of the Income-tax Act, after the word and figures "section 139", the words, brackets, figures and letter "or third proviso to sub-section (1) of section 153A or second proviso to sub-section (1) of section 153C" shall be inserted with effect from the 1st day of July, 2012.
In section 2 of the Wealth-tax Act, 1957 (27 of 1957) (hereinafter referred to as the Wealth-tax Act), in clause (ea), in sub-clause (i), in item (1), for the words "five lakh rupees", the words "ten lakh rupees" shall be substituted with effect from the 1st day of April, 2013.
In section 17 of the Wealth-tax Act, with effect from the 1st day of July, 2012,--
(a) in sub-section (1), after the second proviso, the following proviso shall be inserted and shall be deemed to have been inserted, namely:--
"Provided also that nothing contained in the first proviso shall apply in a case where any net wealth in relation to any asset (including financial interest in any entity) located outside India chargeable to tax, has escaped assessment for any assessment year:";
(b) in sub-section (1A),--
(i) in clause (a), after the word, brackets and letter "clause (b)", the words, brackets and letter "or clause (c)" shall be inserted;
(ii) after clause (b), the following clause shall be inserted,
In section 17A of the Wealth-tax Act, with effect from the 1st day of July, 2012--
(i) in sub-section (1), in the second proviso, for the words, letters and figures "commencing on the 1st day of April, 2004 or any subsequent year", the words, letters and figures "commencing on or after the 1st day of April, 2004 but before the 1st day of April, 2010" shall be substituted;
(ii) in sub-section (2), in the second proviso, for the words, letters and figures "after the 1st day of April, 2005", the words, letters and figures "after the 1st day of April, 2005 but before the 1st day of April, 2011" shall be substituted;
(iii) in sub-section (3), in the second proviso, for the words, letters and figures "after the 1st day of April, 2005", the words, letters and figures "after the 1st day of April, 2005
In section 45 of the Wealth-tax Act, after clause (j), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1957, namely:--
"(k) the Reserve Bank of India incorporated under the Reserve Bank of India Act, 1934 (2 of 1934).".
Notwithstanding anything contained in any judgment, decree or order of any Court or Tribunal or any authority, all notices sent or purporting to have been sent, or taxes levied, demanded, assessed, imposed, collected or recovered or purporting to have been levied, demanded, assessed, imposed, or recovered under the provisions of Income-tax Act, 1961, in respect of income accruing or arising through or from the transfer of a capital asset situate in India in consequence of the transfer of a share or shares of a company registered or incorporated outside India or in consequence of an agreement, or otherwise, outside India, shall be deemed to have been validly made, and the notice, levy, demand, assessment, imposition, collection or recovery of tax shall be valid and shall be deemed always to have been valid and shall not be called in question on the ground that the tax was not chargeable or any ground including that it is a tax on capital gains arising out of transacti
In the Customs Act, 1962(52 of 1962) (hereinafter referred to as the Customs Act), in section 2, in clause (10), after the words "to be a customs airport", the words, brackets and letters "and includes a place appointed under clause (aa) of that section to be an air freight station" shall be inserted.
In section 7 of the Customs Act, in sub-section (1), in clause (aa), for the words "container depots", the words "container depots or air freight stations" shall be substituted.
After section 28AA of the Customs Act, the following section shall be inserted, namely:--
'28AAA. Recovery of duties in certain cases.--
(1) Where an instrument issued to a person has been obtained by him by means of--
(a) collusion; or
(b) wilful misstatement; or
(c) suppression of facts, for the purposes of this Act or the Foreign Trade (Development and Regulation) Act, 1992(22 of 1992), by such person or his agent or employee and such instrument is utilised under the provisions of this Act or the rules made or notifications issued thereunder, by a person other than the person to whom the instrument was issued, the duty relatable to such utilisation of instrument shall be deemed never to have been exemp
In section 28BA of the Customs Act, in sub-section (1),--
(a) for the words, figures and letter "or section 28B", the words, figures and letters "or section 28AAA or section 28B" shall be substituted;
(b) for the words, brackets, figures and letter "or sub-section (2) of section 28B", the words, brackets, figures and letters "or sub-section (3) of section 28AAA or sub-section (2) of section 28B" shall be substituted.
In section 47 of the Customs Act, in sub-section (2),--
(a) in the first proviso, for the words "Provided that", the following shall be substituted, namely:--
"Provided that the Central Government may, by notification in the Official Gazette, specify the class or classes of importers who shall pay such duty electronically:
Provided further that";
(b) in the second proviso, for the words "Provided further that", the words "Provided also that" shall be substituted.
In section 75A of the Customs Act, in sub-section (2), for the word, figures and letters "section 28AB", the word, figures and letters "section 28AA" shall be substituted and shall be deemed to have been substituted with effect from the 8th day of April, 2011.
In section 104 of the Customs Act, for sub-section (4), the following sub-sections shall be substituted, namely:-
"(4) Notwithstanding anything contained in the Code of Criminal Procedure, 1973(2 of 1974), any offence relating to--
(a) prohibited goods; or
(b) evasion or attempted evasion of duty exceeding fifty lakh rupees, shall be cognizable.
(5) Save as otherwise provided in sub-section (4), all other offences under the Act shall be non-cognizable.
(6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973(2 of 1974), all offences under the Act shall be bailable."
After section 104 of the Customs Act, the following section shall be inserted, namely:--
"104A. Bail for offence punishable for a term of imprisonment of three years or more under section 135 not to be granted without hearing public prosecutor.--
(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973(2 of 1974), no person accused of an offence punishable for a term of imprisonment of three years or more under section 135 shall be released on bail or on his own bond unless--
(i) the public prosecutor has been given an opportunity to oppose the application for such release; and
(ii) where the public prosecutor opposes the application, the Magistrate is satisfied that there are reasonable grounds for believing that he is not gui
In section 122 of the Customs Act,--
(i) in clause (b), for the words "two lakh", the words "five lakh" shall be substituted;
(ii) in clause (c), for the words "ten thousand", the words "fifty thousand" shall be substituted.
For section 138 of the Customs Act, the following section shall be substituted, namely:--
"138. Offences to be tried summarily.--Notwithstanding anything contained in the Code of Criminal Procedure, 1973(2 of 1974), an offence under this Chapter (other than the offence punishable for a term of imprisonment of three years or more under section 135) may be tried summarily by a Magistrate.".
In section 153 of the Customs Act, in clause (a), for the words "registered post to the person for whom it is intended or to his agent", the words "registered post or by such courier as may be approved by the Commissioner of Customs" shall be substituted.
Notwithstanding anything contained in sub-section (1) of section 25 of the Customs Act, the item and its description specified under column (1) of the Second Schedule, falling under Chapter 89 of the First Schedule to the Customs Tariff Act, 1975(51 of 1975), shall be and shall be deemed to have been exempted from the whole of the additional duty of customs leviable thereon under sub-section (1) of section 3 of the said Customs Tariff Act, on and from and up to the corresponding date specified in column (2) thereof.
In the Customs Tariff Act, 1975(51 of 1975) (hereinafter referred to as the Customs Tariff Act), in section 8C, in sub-section (5), for the proviso, the following proviso shall be substituted, namely:--
"Provided that if the Central Government is of the opinion that such article continues to be imported into India from the People's Republic of China so as to cause or threatening to cause market disruption to domestic industry, the Central Government may, notwithstanding the measures taken by the domestic industry towards adjustment to such market disruption or any threat arising thereof, if considers necessary that such duty should continue, extend the period of imposition of such safeguard duty for a period not beyond the period of ten years from the date on which the safeguard duty was first imposed.".
The First Schedule to the Customs Tariff Act shall be amended in the manner specified in the Third Schedule.
The Second Schedule to the Customs Tariff Act shall be amended in the manner specified in the Fourth Schedule.
In the Central Excise Act, 1944(1 of 1944) (hereinafter referred to as the Central Excise Act), in section 4, in sub-section (3), in clause (b), in the Explanation, for clause (i), the following clause shall be substituted, namely:--
'(i) "inter-connected undertakings" means two or more undertakings which are inter-connected with each other in any of the following manners, namely:--
(A) if one owns or controls the other;
(B) where the undertakings are owned by firms, if such firms have one or more common partners;
(C) where the undertakings are owned by bodies corporate,--
(I) if one body corporate manages the other body corporate; or
(II) if one body corporate
In section 9 of the Central Excise Act, in sub-section (1), in clause (i), for the words "one lakh", the words "thirty lakh" shall be substituted.
In section 9A of the Central Excise Act, for sub-section (1), the following sub-section shall be substituted, namely:--
"(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973(2 of 1974), all offences under this Act (except an offence punishable for a term of imprisonment of three years or more under section 9) shall be non-cognizable.".
In section 11A of the Central Excise Act,--
(a) in sub-section (5), for the words "has not been levied or paid or", the words "has not been levied or paid or has been" shall be substituted;
(b) for sub-section (8), the following sub-section shall be substituted, namely:--
"(8) Where the service of notice is stayed by an order of a court or tribunal, the period of such stay shall be excluded in computing the period of one year referred to in clause (a) of sub-section (1) or five years referred to in sub-section (4) or sub-section (5), as the case may be.".
In section 11AC of the Central Excise Act, in sub-section (1),--
(i) in clauses (a) and (b), for the words "has not been levied or paid or", the words "has not been levied or paid or has been" shall respectively be substituted;
(ii) in clause (c), for the words "duty so determined", the words "duty so determined only in a case where the penalty is paid within the period so specified" shall be substituted.
In section 12F of the Central Excise Act, for sub-section (2), the following sub-section shall be substituted, namely:--
'(2) The provisions of the Code of Criminal Procedure, 1973(2 of 1974) relating to search and seizure shall, so far as may be, apply to search and seizure under this section subject to the modification that subsection (5) of section 165 of the said Code shall have effect as if for the word "Magistrate", wherever it occurs, the words "Commissioner of Central Excise" were substituted.'.
For section 13 of the Central Excise Act, the following sections shall be substituted, namely:--
"13. Power to arrest.--
(1) If an officer of Central Excise empowered in this behalf by general or special order of the Commissioner of Central Excise has reason to believe that any person has committed an offence punishable under this Act, he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest.
(2) Every person arrested under sub-section (1) for an offence shall, without unnecessary delay, be taken to a Magistrate.
(3) Where an officer of Central Excise has arrested any person under sub-section (1), for any offence (other than an offence punishable for a term of imprisonment of three years or more under section
For section 18 of the Central Excise Act, the following section shall be substituted, namely:--
"18. Searches and arrests how to be made.--All searches under this Act or the rules made thereunder and all arrests under this Act shall, save as otherwise provided under this Act, be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973(2 of 1974), relating respectively to searches and arrests under that Code.".
Section 19 of the Central Excise Act shall be omitted.
In section 20 of the Central Excise Act,--
(a) the words and figures "under section 19" shall be omitted;
(b) after the words "such Magistrate", the words "in accordance with the provisions of this Act" shall be inserted.
(1) The notifications of the Government of India in the Ministry of Finance (Department of Revenue) numbers G.S.R. 62 (E), dated the 6th February, 2010 and G.S.R. 163(E), dated the 17th March, 2012 (hereinafter referred to as the said notifications), issued under sub-section (1) of section 5A of the Central Excise Act, 1944(1 of 1944), shall stand amended and shall be deemed to have been amended retrospectively, in the manner specified in column (2) of the Fifth Schedule, on and from the corresponding date specified in column (3) of that Schedule, against the said notifications specified in column (1) of that Schedule.
(2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to amend the said notifications with retrospective effect as if the Central Government had the power to amend the said notifications under sub-section (1)
(1) In the notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 254(E), dated the 16th March, 1995, issued under sub-section (1) of section 5A of the Central Excise Act, 1944(1 of 1994) read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957(58 of 1957), in the TABLE, after S. No. 19 and the entries relating thereto, the following S. No. and the entries shall be and shall be deemed to be inserted retrospectively with effect from the 20th day of April, 2011, namely:-
(1) (2) (3)
"20. All goods falling under
heading 8607 If the goods are,-
(i) manufactured by a factory belonging to the Central Government; and
&nbs
The Third Schedule to the Central Excise Act shall be amended in the manner specified in the Sixth Schedule.
In the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the Central Excise Tariff Act), the First Schedule shall be amended in the manner specified in the Seventh Schedule.
(1) In the First Schedule to the Central Excise Tariff Act, in Chapter 54, after Note 1, the following Note shall be inserted and shall be deemed to have been inserted with effect from the 29th day of June, 2010, namely:-
"1A. Notwithstanding anything contained in Note 1, man-made fibre such as polyester staple fibre and polyester filament yarn manufactured from plastic and plastic waste including waste polyethylene terephthalate bottles shall be classified as textile material under Chapter 54 or Chapter 55, as the case may be.".
(2) Any action taken or anything done or purported to have been taken or done for recovery of duty of excise at any time during the period commencing on and from the 29th day of June, 2010 and ending with the date on which the Finance Act, 2012 receives the assent of the President (hereafter in this section refe
In the Finance Act, 1994,-
1[(A) in section 65, after the Explanation occurring at the end of clause (121), the following proviso shall be inserted with effect from such date as the Central Government may, by notification, appoint, namely:-
"Provided that the provisions of this section shall not apply with effect from such date as the Central Government may, by notification, appoint.]
1[(B) in section 65A, after sub-section (2), the following sub-section shall be inserted with effect from such date as the Central Government may, by notification, appoint, namely:-
"(3) The provisions of this section shall not apply with effect from such date as the Central Government may, by notification, appoint.]
2[(C) a
The Finance Act, 2012 introduced significant amendments to the Income Tax Act, particularly through the insertion of Section 143(1D). This section alters the processing of income tax returns, especially in cases where scrutiny notices are issued under Section 143(2). The changes aim to streamline the assessment process and address concerns regarding timely refunds.
Section 143(1D) states that the processing of a return under Section 143(1) is not necessary if a notice has been issued under Section 143(2). This provision effectively allows the Assessing Officer (AO) to prioritize scrutiny over automatic processing of returns.
The scope of Section 143(1D) is primarily focused on the procedural aspects of income tax return processing. It delineates the circumstances under which automatic processing is suspended, thereby allowing for a more thorough examination of returns flagged for scrutiny.
While Section 143(1D) itself does not prescribe specific penalties, failure to comply with the provisions of the Income Tax Act, including those related to assessments and returns, can lead to penalties under other sections of the Act.
(1) In the CENVAT Credit Rules, 2004, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act, 1944(1 of 1944), sub-rule (6A) of rule 6 as inserted by clause (ix) of rule 5 of the CENVAT Credit (Amendment) Rules, 2011, published in the Official Gazette vide notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 134(E), dated the 1st March, 2011 shall stand amended and shall be deemed to have been amended retrospectively, in the manner specified in column (2) of the Eighth Schedule, on and from the date specified in column (3) of that Schedule, against the rule specified in column (1) of that Schedule.
(2) 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
(1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 566 (E), dated the 25th July, 2011, issued in exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994(32 of 1994), granting exemption from the whole of service tax leviable under section 66 thereof, on the club or association service referred to in sub-clause (zzze) of clause (105) of section 65 of the said Act, provided by a club or an association including registered cooperative societies, in relation to the project, shall be deemed to have, and deemed always to have, for all purposes, validly come into force on and from the 16th day of June, 2005, at all material times.
(2) Refund shall be made of all such service tax which has been collected but which would not have been so collected as if the notification referred to in sub-section
In section 2 of the Fiscal Responsibility and Budget Management Act, 2003 (39 of 2003) (hereinafter referred to as the Fiscal Responsibility Act),-
(i) after clause (a), the following clause shall be inserted, namely:-
'(aa) "effective revenue deficit" means the difference between the revenue deficit and grants for creation of capital assets;';
(ii) after clause (b), the following clause shall be inserted, namely:-
(bb) "grants for creation of capital assets" means the grants in aid given by the Central Government to the State Governments, constitutional authorities or bodies, autonomous bodies, local bodies and other scheme implementing agencies for creation of capital assets which are owned by the said entities;'.
In section 3 of the Fiscal Responsibility Act,-
(a) in sub-section (1),-
(i) in the opening portion, for the words "demands for grants", the words "demands for grants except the Medium-term Expenditure Framework Statement" shall be substituted;
(ii) after clause (c), the following clause shall be inserted, namely:-
"(d) the Medium-term Expenditure Framework Statement";
(b) after sub-section (7), the following sub-sections shall be inserted, namely:-
"(1A) The statements referred to in clauses (a) to (c) of sub-section (1) shall be followed up with the Medium-term Expenditure Framework Statement with detailed analysis of underlying assumptions.
&n
In section 4 of the Fiscal Responsibility Act,-
(a) for sub-section (1), the following sub-section shall be substituted, namely:-
"(1) The Central Government shall take appropriate measures to reduce the fiscal deficit, revenue deficit and effective revenue deficit to eliminate the effective revenue deficit by the 31st March, 2015 and thereafter build up adequate effective revenue surplus and also to reach revenue deficit of not more than two per cent, of Gross Domestic Product by the 31st March, 2015 and thereafter as may be prescribed by rules made by the Central Government.";
(b) in sub-section (2),-
(i) in clause (a),-
(A) for the words "fiscal deficit and revenue deficit", the words "fiscal deficit,
After section 7 of the Fiscal Responsibility Act, the following section shall be inserted, namely:-
"7A. Laying of review reports.--The Central Government may entrust the Comptroller and Auditor-General of India to review periodically as required, the compliance of the provisions of this Act and such reviews shall be laid on the table of both Houses of Parliament.".
In section 8 of the Fiscal Responsibility Act, in sub-section (2),-
(i) after clause (b), the following clause shall be inserted, namely:-
"(ba) the expenditure indicators with specifications of underlying assumptions and risk involved under clause (a) of sub-section (6A) of section 3;";
(ii) in clause (c), for the words "Fiscal Policy Strategy Statement", the words "Fiscal Policy Strategy Statement, Medium-term Expenditure Framework Statement" shall be substituted;
(iii) after clause (c), the following clause shall be inserted, namely:-
"(ca) the per cent, of revenue deficit to be specified after the 31st March, 2015 under sub-section (1) of section 4;".
In the Oil Industry (Development) Act, 1974, in the Schedule, against Sl. No.1 relating to crude oil, for the entry in column 3, the entry "Rupees four thousand five hundred per tonne" shall be substituted.
The Seventh Schedule to the Finance Act, 2001(18 of 2005) (as substituted by the Twelfth Schedule to the Finance Act, 2005) shall be amended in the manner specified in the Ninth Schedule.
In the Finance (No. 2) Act, 2004, with effect from the 1st day of July, 2012,--
(a) in section 97, -
(i) after clause (5), the following clauses shall be inserted, namely:--
'(5A) "initial public offer" has the meaning assigned to it in clause (p) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 made under the Securities and Exchange Board of India Act, 1992(15 of 1992);
(5B) "lead merchant banker" means a merchant banker appointed as lead merchant banker in accordance with sub-regulation (1) of regulation 5 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 made under the Securities and Exch
The Seventh Schedule to the Finance Act, 2005 shall be amended in the manner specified in the Tenth Schedule.
In section 73 of the Finance Act, 2010, in sub-section (2), for the word "inputs", the words "inputs or input services" shall be substituted and shall be deemed to have been substituted with effect from the 8th day of May, 2010.
In the Finance Act, 2011, with effect from the date of coming into force of that Act,-
(i) in section 73,-
(A) in the opening portion, for the brackets, words and letter "(hereinafter referred to as the Central Excise Tariff Act),-
(a) the First Schedule shall", the words ", the First Schedule shall" shall be substituted and shall be deemed to have been substituted;
(B) the brackets, letter and words "(b) the Third Schedule shall be amended in the manner specified in the Twelfth Schedule" shall be inserted and shall be deemed to have been inserted under the heading "Excise" as section 70A of the aforesaid Act.
(ii) in the Twelfth Schedule, for the brackets, words, figures and letter "[See section 73(b)]
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