Finance Act 2004

THE FINANCE (No. 2) ACT, 2004

No. 23 of 2004 [10th September, 2004]

10th September, 2004

An Act to give effect to the financial proposals of the Central Government for the financial year 2004-2005.

S.1 Short title, extent, commencement and application

(1) This Act may be called the Finance (No. 2) Act, 2004.

(2) Save as otherwise provided in this Act, sections 2 to 65 shall be deemed to have come into force on the 1st day of April, 2004.

S.2 Rates of income-tax

(1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2004, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax as reduced by the rebate of income-tax calculated under Chapter VIII-A of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) shall be increased by a surcharge for purposes of the Union calculated in each case in the manner provided therein.

(2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds fifty thousand rupees, then,

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 fifty thousand rupees of

S.3 Amendment of section 2

In section 2 of the Income-tax Act, in clause (24), after sub-clause (xii), the following sub-clause shall be inserted with effect from the 1st day of April, 2005, namely:

“(xiii) any sum referred to in clause (v) of sub-section (2) of section 56;”.

S.4 Amendment of section 7

In section 7 of the Income-tax Act, after clause (ii), the following clause shall be inserted at the end, namely:

“(iii) the contribution made, by the Central Government in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD.”.

S.5 Amendment of section 10

In section 10 of the Income-tax Act,

(a) in clause (4), in sub-clause (ii), after the proviso, the following proviso shall be inserted with effect from the 1st day of April, 2006, namely:

“Provided further that nothing contained in this sub-clause shall apply to any income by way of interest paid or credited on or after the 1st day of April, 2005 to the Non-Resident (External) Account of such individual;”;

(b) in clause (6BB), for the words, figures and letters “an agreement entered after the 31st day of March, 1997 but before the 1st day of April, 1999 and approved by the Central Government in this behalf”, the words, figures and letters “an agreement entered into after the 31st day of March, 1997 but before the 1st day of April, 1999, or entered into after the 31st day of March, 2005 and approved by the Central Government in this behalf” shall be substituted with effect from the 1st day of April, 2006;
(c) in clause (15),

S.6 Amendment of section 12AA

In section 12AA of the Income-tax Act, after sub-section (2), the following sub-section shall be inserted at the end, with effect from the 1st day of October, 2004, namely:

“(3) Where a trust or an institution has been granted registration under clause (b) of sub-section (1) and subsequently the Commissioner is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing cancelling the registration of such trust or institution:

Provided that no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard.”

S.7 Amendment of section 17

In section 17 of the Income-tax Act, in clause (1), after sub-clause (vii), the following sub-clause shall be inserted, namely:

“(viii) the contribution made by the Central Government in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD;”

S.8 Amendment of section 32

In section 32 of the Income-tax Act, in sub-section (1), in clause (iia), in the first proviso, in clause (B), for the words “twenty-five per cent.”, the words “ten per cent.” shall be substituted with effect from the 1st day of April, 2005.

S.9 Amendment of section 33AC

In section 33AC of the Income-tax Act, in sub-section (1), after the second proviso, the following proviso shall be inserted with effect from the 1st day of April, 2005, namely:

“Provided also that no deduction shall be allowed under this section for any assessment year commencing on or after the 1st day of April, 2005.”

S.10 Amendment of section 35AC

In section 35AC of the Income-tax Act, for sub-sections (4) and (5), the following sub-sections shall be substituted with effect from the 1st day of October, 2004, namely:

“(4) Where an association or institution is approved by the National Committee under sub-section (1), and subsequently—

(i) that Committee is satisfied that the project or the scheme is not being carried on in accordance with all or any of the conditions subject to which approval was granted; or
(ii) such association or institution, to which approval has been granted, has not furnished to the National Committee, after the end of each financial year, a report in such form and setting forth such particulars and within such time as may be prescribed.

the National Committee may, at any time, after giving a reasonable opportunity of showing cause against the proposed withdrawal to the concerned association or institution, withdraw the approval:

Provided that a copy of t

S.11 Amendment of section 40

In section 40 of the Income-tax Act, in clause (a), for sub-clause (i), the following shall be substituted with effect from the 1st day of April, 2005, namely:

(i) any interest (not being interest on a loan issued for public subscription before the 1st day of April, 1938), royalty, fees for technical services or other sum chargeable under this Act, which is payable,—

(A) outside India; or
(B) in India to a non-resident, not being a company or to a foreign company,

on which tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction, has not been paid during the previous year, or in the subsequent year before the expiry of the time prescribed under sub-section (1) of section 200:

Provided that where in respect of any such sum, tax has been deducted in any subsequent year or, has been deducted in the previous year but paid in any subsequent year after the expiry of the time prescribed under s

S.12 Amendment of section 48

In section 48 of the Income-tax Act, after the fourth proviso and before the Explanation, the following proviso shall be inserted with effect from the 1st day of April, 2005, namely:

‘Provided also that no deduction shall be allowed in computing the income chargeable under the head “Capital gains” in respect of any sum paid on account of securities transaction tax under Chapter VII of the Finance (No. 2) Act, 2004.’.

S.13 Amendment of section 56

In section 56 of the Income-tax Act, in sub-section (2), after clause (iv), the following clause shall be inserted at the end, with effect from the 1st day of April, 2005, namely:

‘(v) where any sum of money exceeding twenty-five thousand rupees is received without consideration by an individual or a Hindu undivided family from any person on or after the 1st day of September, 2004, the whole of such sum:

Provided that this clause shall not apply to any sum of money received—

(a) from any relative; or
(b) on the occasion of the marriage of the individual; or
(c) under a will or by way of inheritance; or
(d) in contemplation of death of the payer.

Explanation.—For the purposes of this clause, “relative” means—

(i) spouse of the individual;
(ii) brother or sister of the individual;
(iii) brother or sister of the spouse of the individual;
(iv) brother or sister of either of the pa

S.14 Amendment of section 71

In section 71 of the Income-tax Act, after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of April, 2005, namely:

‘(2A) Notwithstanding anything contained in sub-section (1) or sub-section (2), where in respect of any assessment year, the net result of the computation under the head “Profits and gains of business or profession” is a loss and the assessee has income assessable under the head “Salaries”, the assessee shall not be entitled to have such loss set off against such income.’.

S.15 Insertion of new section 80CCD

Deduction in respect of contribution to pension scheme of Central Government

After section 80CCC of the Income-tax Act, the following section shall be inserted, namely:

‘80CCD. (1) Where an assessee, being an individual employed by the Central Government on or after the 1st day of January, 2004, has in the previous year paid or deposited any amount in his account under a pension scheme notified or as may be notified by the Central Government, he shall, in accordance with, and subject to, the provisions of this section, be allowed a deduction in the computation of his total income, of the whole of the amount so paid or deposited as does not exceed ten per cent. of his salary in the previous year.

(2) Where, in the case of an assessee referred to in sub-section (1), the Central Government makes any contribution to his account referred to in that sub-section, the assessee shall be allowed a deduction in the computation of his total income, of the whole of the amoun

S.16 Amendment of section 80DD

In section 80DD of the Income-tax Act, in the Explanation, with effect from the 1st day of April, 2005,—

(a) in clause (c), after the figures “1995”, occurring at the end, the words, brackets, letters and figures ‘and includes “autism”, “cerebral palsy” and “multiple disability” referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999’ shall be inserted;
(b) in clause (e), after the figures “1995”, occurring at the end, the words, brackets, letters and figures ‘or such other medical authority as may, by notification, be specified by the Central Government for certifying “autism”, “cerebral palsy”, “multiple disabilities”, “person with disability” and “severe disability” referred to in clauses (a), (c), (h), (j) and (o) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Di

S.17 Amendment of section 80-IA

In section 80-IA of the Income-tax Act, with effect from the 1st day of April, 2005,—

(a) in sub-section (2), after the words “generates power or commences transmission or distribution of power”, the words “or undertakes substantial renovation and modernisation of the existing transmission or distribution lines” shall be inserted;
(b) in sub-section (3),

(A) in the opening portion, for the words, brackets and figures “undertaking referred to in clause (iv)”, the words, brackets and figures “undertaking referred to in clause (ii) or clause (iv)” shall be substituted;
(B) after clause (ii) and before Explanation 1, the following proviso shall be inserted, namely:

“Provided that nothing contained in this sub-section shall apply in the case of transfer, either in whole or in part, of machinery or plant previously used by a State Electricity Board referred to in clause (7) of section 2 of the Electricity Act, 2003, whether

S.18 Amendment of section 80-IB

In section 80-IB of the Income-tax Act, with effect from the 1st day of April, 2005,—

(a) in sub-section (1), for the brackets, figures, word and letter “(11) and (11A)”, the brackets, figures, letters and word “(11), (11A) and (11B)” shall be substituted;
(b) in sub-section (4), after the third proviso, the following provisos shall be inserted, namely:

‘Provided also that in the case of an industrial undertaking in the State of Jammu and Kashmir, the provisions of the first proviso shall have effect as if for the figures, letters and words “31st day of March, 2004”, the figures, letters and words “31st day of March, 2005” had been substituted:

Provided also that no deduction under this sub-section shall be allowed to an industrial undertaking in the State of Jammu and Kashmir which is engaged in the manufacture or production of any article or thing specified in Part C of the Thirteenth Schedule.;

S.19 Amendment of section 80U

In section 80U of the Income-tax Act, for the Explanation, the following Explanation shall be substituted with effect from the 1st day of April, 2005, namely:

'Explanation.—For the purposes of this section,—

(a) “disability” shall have the meaning assigned to it in clause (i) of section 2 of the Persons With Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, and includes “autism”, “cerebral palsy” and “multiple disabilities” referred to in clauses (a), (c) and (h) of section 2 of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999;
(b) “medical authority” means the medical authority as referred to in clause (p) of section 2 of the Persons With Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, or such other medical authority as may, by notification, be specified by the Central Government for certifying

S.20 Amendment of section 87

In section 87 of the Income-tax Act, with effect from the 1st day of April, 2005,—

(a) in sub-section (1), for the words, figures and letters “sections 88, 88A, 88B and 88C”, the words, figures and letters “sections 88, 88A, 88B, 88C, 88D and 88E” shall be substituted;
(b) in sub-section (2), after the words, figures and letter “or section 88C”, the words, figures and letters “or section 88D or section 88E” shall be inserted.

S.21 Amendment of section 88

In section 88 of the Income-tax Act, in sub-section (2), in clause (xv), in sub-clause (c), after item (6), the following item shall be inserted with effect from the 1st day of April, 2005, namely:

“(6A) the assessee’s employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or”.

S.22 Insertion of new section 88D

Rebate of income-tax in case of certain individuals

After section 88C of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2005, namely:

“88D. An assessee, being an individual resident in India,—

(a) whose total income does not exceed one hundred thousand rupees, shall be entitled to a deduction from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with

which he is chargeable for any assessment year, of an amount equal to hundred per cent. of such income-tax;

(b) whose total income exceeds one hundred thousand rupees and the income-tax payable on such total income (as computed before allowing the deductions under this Chapter) exceeds the amount by which such total income is in excess of one hundred thousand rupees, shall be entitled to a deduction from the amount of income-tax on his total income, of an amount equal to th

S.23 Insertion of new section 88E

Rebate in respect of securities transaction tax

After section 88D of the Income-tax Act, as so inserted, the following section shall be inserted with effect from the 1st day of April, 2005, namely:

88E. (1) Where the total income of an assessee in a previous year includes any income, chargeable under the head "Profits and gains of business or profession", arising from taxable securities transactions, he shall be entitled to a deduction, from the amount of income-tax on such income arising from such transactions, computed in the manner provided in sub-section (2), of an amount equal to the securities transaction tax paid by him in respect of the taxable securities transactions entered into in the course of his business during that previous year:

Provided that no deduction under this sub-section shall be allowed unless the assessee furnishes along with the return of income, evidence of payment of securities transaction tax in the prescribed form:

Provided f

S.24 Amendment of section 90

In section 90 of the Income-tax Act, in the Explanation, the words and brackets ",where such foreign company has not made the prescribed arrangement for declaration and payment within India, of the dividends (including dividends on preference shares) payable out of its income in India" shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 1962.

S.25 Amendment of section 94

In section 94 of the Income-tax Act, with effect from the 1st day of April, 2005,

(a) in sub-section (7), for clause (b), the following clause shall be substituted, namely:

(b) such person sells or transfers—

(i) such securities within a period of three months after such date; or
(ii) such unit within a period of nine months after such date;

(b) after sub-section (7), the following sub-section shall be inserted, namely:

(8) Where—

(a) any person buys or acquires any units within a period of three months prior to the record date;
(b) such person is allotted additional units without any payment on the basis of holding of such units on such date;
(c) such person sells or transfers all or any of the units referred to in clause (a) within a period of nine months after such date, while continuing to hold all or any of the additional units referred to in clause (b),

S.26 Insertion of new section 111A

After section 111 of the Income-tax Act, the following section shall be inserted, with effect from the 1st day of April, 2005, namely:

‘111A. (I) Where the total income of an assessee includes any income chargeable under the head “Capital gains”, arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund and—

(a) the transaction of sale of such equity share or unit is entered into on or after the date on which Chapter VII of the Finance (No. 2) Act, 2004 comes into force; and
(b) such transaction is chargeable to securities transaction tax under that Chapter,

the tax payable by the assessee on the total income shall be the aggregate of—

(i) the amount of income-tax calculated on such short-term capital gains at the rate of ten per cent.; and
(ii) the amount of income-tax payable on the balance amount of the total income as if such balance amount were

S.27 Amendment of section 115AD

In section 115AD of the Income-tax Act, in sub-section (1), in clause (ii), the following proviso shall be inserted with effect from the 1st day of April, 2005, namely:

“Provided that the amount of income-tax calculated on the income by way of short-term capital gains referred to in section 111A shall be at the rate of ten per cent.”.

S.28 Amendment of section 115JB

In section 115JB of the Income-tax Act, in the Explanation, with effect from the 1st day of April, 2005,—

(a) in clause (f), for the word and figures “section 10”, the words, figures, brackets and letter “section 10 [other than the provisions contained in clause (23G) thereof]” shall be substituted;
(b) in clause (ii), for the words and figures “provisions of section 10”, the words, figures, brackets and letter “provisions of section 10 [other than the provisions contained in clause (23G) thereof]” shall be substituted.

S.29 Amendment of section 115R

In section 115R of the Income-tax Act, in sub-section (2), —

(a) for the words “at the rate of twelve and one-half per cent.”, the following shall be substituted with effect from the 9th day of July, 2004, namely:

“at the rate of—

(i) twelve and one-half per cent. on income distributed to any person being an individual or a Hindu undivided family; and
(ii) twenty per cent. on income distributed to any other person:”;

(b) in the proviso, the words, figures and letters “for a period of one year commencing from the 1st day of April, 2003” shall be omitted.

S.30 Insertion of new Chapter XII-G

After Chapter XII-F of the Income-tax Act, the following Chapter shall be inserted with effect from the 1st day of April, 2005, namely:

CHAPTER XII-G

SPECIAL PROVISIONS RELATING TO INCOME OF SHIPPING COMPANIES

A.—Meaning of certain expressions

115V. In this Chapter, unless the context otherwise requires,—

(a) “bareboat charter” means hiring of a ship for a stipulated period on terms which give the charterer possession and control of the ship, including the right to appoint the master and crew;
(b) “bareboat charter-cum-demise” means a bareboat charter where the ownership of the ship is intended to be transferred after a specified period to the company to whom it has been chartered;
(c) “Director-General of Shipping” means the Director-General of Shipping appointed by the Central Government under sub-section (1) of section 7 of the Merchant Shipping Act, 1958;
(d) “factory ship” includes a vessel providing processing

S.31 Amendment of section 119

In section 119 of the Income-tax Act, in sub-section (2), in clause (a), after the bracket and words "(whether by way of relaxation of any of the provisions of sections", the figures and letters "115P, 115S," shall be inserted with effect from the 1st day of October, 2004.

S.32 Amendment of section 139

In section 139 of the Income-tax Act, in sub-section (9), in the Explanation, in clause (c), in sub-clause (i), for the words "deducted at source and", the words, figures and letters "deducted at source before the 1st day of April, 2005 and" shall be substituted with effect from the 1st day of April, 2005.

S.33 Amendment of section 139A

In section 139A of the Income-tax Act,—

(a) in sub-section (5A), the first proviso shall be omitted with effect from the 1st day of April, 2005;
(b) in sub-sections (5C) and (5D), for the word "buyer", the words "buyer or licensee or lessee" shall be substituted with effect from the 1st day of October, 2004.

S.34 Insertion of new section 142A

Estimate by Valuation Officer in certain cases

After section 142 of the Income-tax Act, the following section shall be inserted and shall be deemed to have been inserted with effect from the 15th day of November, 1972, namely:

‘142A. (1) For the purposes of making an assessment or re-assessment under this Act, where an estimate of the value of any investment referred to in section 69 or section 69B or the value of any bullion, jewellery or other valuable article referred to in section 69A or section 69B is required to be made, the Assessing Officer may require the Valuation Officer to make an estimate of such value and report the same to him.

(2) The Valuation Officer to whom a reference is made under sub-section (1) shall, for the purposes of dealing with such reference, have all the powers that he has under section 38A of the Wealth-tax Act, 1957.

(3) On receipt of the report from the Valuation Officer, the Assessing Officer may, after giving the assess

S.35 Amendment of section 153

In section 153 of the Income-tax Act, in Explanation 1, with effect from the 1st day of October, 2004,—

(a) in clause (v), for the words “that section,”, the words “that section, or” shall be substituted;
(b) after clause (v) and before the words “shall be excluded”, the following clauses shall be inserted, namely:

“(vi) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the order rejecting the application is received by the Commissioner under sub-section (3) of section 245R, or

(vii) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the advance ruling pronounced by it is received by the Commissioner under sub-section (7) of section 245R,”.

S.36 Amendment of section 153B

In section 153B of the Income-tax Act, in sub-section (1), in the Explanation, with effect from the 1st day of October, 2004,—

(a) in clause (iv), for the words “that section,”, the words “that section, or” shall be substituted;
(b) after clause (iv) and before the words “shall be excluded”, the following clauses shall be inserted, namely:

“(v) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the order rejecting the application is received by the Commissioner under sub-section (3) of section 245R, or

(vi) the period commencing from the date on which an application is made before the Authority for Advance Rulings under sub-section (1) of section 245Q and ending with the date on which the advance ruling pronounced by it is received by the Commissioner under sub-section (7) of section 245R,”.

S.37 Amendment of section 194C

In section 194C of the Income-tax Act, in sub-section (3), for clause (i), the following clause shall be substituted with effect from the 1st day of October, 2004, namely:

“(i) the amount of any sum credited or paid or likely to be credited or paid to the account of, or to, the contractor or sub-contractor, if such sum does not exceed twenty thousand rupees:

Provided that where the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year exceeds fifty thousand rupees, the person responsible for paying such sums referred to in sub-section (1) or, as the case may be, sub-section (2) shall be liable to deduct income-tax under this section; or”.

S.38 Insertion of new section 194LA

Payment of compensation on acquisition of certain immovable property

After section 194L of the Income-tax Act, the following section shall be inserted with effect from the 1st day of October, 2004, namely:

‘194LA. Any person responsible for paying to a resident any sum, being in the nature of compensation or the enhanced compensation or the consideration or the enhanced consideration on account of compulsory acquisition, under any law for the time being in force, of any immovable property (other than agricultural land), shall, at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent. of such sum as income-tax thereon:

Provided that no deduction shall be made under this section where the amount of such payment or, as the case may be, the aggregate amount of such payments to a resident during the financial year does not exceed one hundred thousand rupees.

S.39 Amendment of section 197

In section 197 of the Income-tax Act, in sub-section (1), for the figures and letters “194C, 194D, 194G, 194H, 194-I, 194J, 194K”, the figures and letters “194C, 194D, 194G, 194H, 194-I, 194J, 194K, 194LA” shall be substituted with effect from the 1st day of October, 2004.

S.40 Amendment of section 198

In section 198 of the Income-tax Act, for the portion beginning with the words and figures “the provisions of sections 192” and ending with the word, figures and letter “section 196D”, the words “the foregoing provisions of this Chapter” shall be substituted with effect from the 1st day of October, 2004.

S.41 Amendment of section 199

(a) in sub-section (1), for the portion beginning with the words and figures “the provisions of sections 192” and ending with the word, figures and letter “section 196D”, the words “the foregoing provisions of this Chapter” shall be substituted with effect from the 1st day of October, 2004;
(b) after sub-section (2), the following sub-section shall be inserted at the end with effect from the 1st day of April, 2005, namely:

“(3) Where any deduction is made in accordance with the foregoing provisions of this Chapter on or after the 1st day of April, 2005 and paid to the Central Government, the amount of tax deducted and specified in the statement referred to in section 203AA shall be treated as tax paid on behalf of the persons referred to in sub-section (1) or, as the case may be, sub-section (2) and credit shall be given to him for the amount so deducted in the assessment made under this Act for the assessment year for which such income is assessable wit

S.42 Amendment of section 200

(a) in sub-section (1), for the portion beginning with the words and figures “the provisions of sections 192” and ending with the word, figures and letter “section 196D”, the words “the foregoing provisions of this Chapter” shall be substituted with effect from the 1st day of October, 2004;
(b) after sub-section (2), the following sub-section shall be inserted with effect from the 1st day of April, 2005, namely:

“(3) Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in sub-section (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time, prepare quarterly statements for the period ending on the 30th June, the 30th September, the 31st December and the 31st March in each financial year and deliver or cause to be delivered to the prescribed income-tax

S.43 Amendment of section 202

In section 202 of the Income-tax Act, for the portion beginning with the word and figures “sections 192” and ending with the word, figures and letter “section 196D”, the words “the foregoing provisions of this Chapter” shall be substituted with effect from the 1st day of October, 2004.

S.44 Amendment of section 203

(a) in sub-section (1), for the portion beginning with the words and figures “the provisions of sections 192” and ending with the word, figures and letter “section 196D”, the words “the foregoing provisions of this Chapter” shall be substituted with effect from the 1st day of October, 2004;
(b) after sub-section (2), the following sub-section shall be inserted at the end with effect from the 1st day of April, 2005, namely:

“(3) Where the tax has been deducted or paid in accordance with the foregoing provisions of this Chapter on or after the 1st day of April, 2005, there shall be no requirement to furnish a certificate referred to in sub-section (1) or, as the case may be, sub-section (2).”

S.45 Substitution of new section for section 203A

Tax deduction and collection account number.

For section 203A of the Income-tax Act, the following section shall be substituted with effect from the 1st day of October, 2004, namely:

‘203A. (1) Every person, deducting tax or collecting tax in accordance with the provisions of this Chapter, who has not been allotted a tax deduction account number or, as the case may be, a tax collection account number, shall, within such time as may be prescribed, apply to the Assessing Officer for the allotment of a “tax deduction and collection account number”.

(2) Where a “tax deduction account number” or, as the case may be, a “tax collection account number” or a “tax deduction and collection account number” has been allotted to a person, such person shall quote such number—

(a) in all challans for the payment of any sum in accordance with the provisions of section 200 or sub-section (3) of section 206C;
(b) in all certificates furnished under section 20

S.46 Insertion of new section 203AA

Furnishing of statement of tax deducted

After section 203A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2005, namely:

“203AA. The prescribed income-tax authority or the person authorised by such authority referred to in sub-section (3) of section 200, shall, within the prescribed time after the end of each financial year beginning on or after the 1st day of April, 2005 prepare and deliver to every person from whose income the tax has been deducted or in respect of whose income the tax has been paid a statement in the prescribed form specifying the amount of tax deducted or paid and such other particulars as may be prescribed.”.

S.47 Amendment of section 204

In section 204 of the Income-tax Act, for the portion beginning with the word and figures “sections 192” and ending with the words and figures “sections 195 to 203”, the words “the foregoing provisions of this Chapter” shall be substituted with effect from the 1st day of October, 2004.

S.48 Amendment of section 205

In section 205 of the Income-tax Act, for the portion beginning with the word and figures “sections 192” and ending with the word, figures and letter “section 196D”, the words “the foregoing provisions of this Chapter” shall be substituted with effect from the 1st day of October, 2004.

S.49 Amendment of section 206

In section 206 of the Income-tax Act,—

(a) in sub-section (1), with effect from the 1st day of October, 2004,—

(i) for the words “prescribed income-tax authority”, the words “prescribed income-tax authority or such other authority or agency as may be prescribed” shall be substituted;
(ii) the following proviso shall be inserted, namely:

“Provided that the Board may, if it considers necessary or expedient so to do, frame a scheme for the purposes of filing such returns with such other authority or agency referred to in this sub-section.”;

(b) in sub-section (2), with effect from the 1st day of April, 2005,—

(i) for the words “other than the principal officer in the case of every company”, the words “other than the prescribed person in the case of every office of the Government and the principal officer in the case of every company” shall be substituted;
(ii) for the proviso, the followin

S.50 Amendment of section 206C

In section 206C of the Income-tax Act,—

(a) after sub-section (1B), the following sub-section shall be inserted with effect from the 1st day of October, 2004, namely:

‘(1C) Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as “licensee or lessee”) for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting of the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, collect from the licensee or lessee of any such licence, contract or lease of the nature specified in column (2)