FINANCE
(NO. 2) ACT, 2009*
[33
of 2009]
A
Bill to give effect to the financial
proposals of the Central Government for the financial year
2009-2010.
BE
it enacted by Parliament in the Sixtieth Year of the
Preliminary
Short
title and commencement
1.
(1) This Act may be called the Finance (No. 2) Act,
2009.
(2)
Save as otherwise provided in this Act, sections 2 to 83 shall be deemed to have
come into force on the 1st day of April, 2009.
Chapter
II
Rates
of Income-tax
Income-tax
2.
(1) Subject to the provisions of sub-sections (2) and (3), for the assessment
year commencing on the 1st day of April, 2009, 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 fifty 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 fifty thousand rupees of the
total income but without being liable to tax], only for the purpose of charging
income-tax in respect of the total income; and
(b)
the income-tax chargeable shall be calculated as
follows :—
(i) the total income
and the net agricultural income shall be aggregated and the amount of income-tax
shall be determined in respect of the aggregate income at the rates specified in
the said Paragraph A, as if such aggregate income were the total
income;
(ii)
the net agricultural income shall be increased by a sum of one lakh fifty thousand rupees, and the amount of income-tax
shall be determined in respect of the net agricultural income as so increased at
the rates specified in the said Paragraph A, as if the net agricultural income
as so increased were the total income;
(iii)
the amount of income-tax determined in
accordance with sub-clause (i) shall be reduced by the amount
of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the
income-tax in respect of the total income :
Provided that in the case
of every woman, resident in India and below the age of sixty-five years at any
time during the previous year, referred to in item (II) of Paragraph A of Part I
of the First Schedule, the provisions of this sub-section shall have effect as
if for the words “one lakh fifty thousand rupees”, the
words “one lakh eighty thousand rupees” had been substituted :
Provided further that in
the case of every individual, being a resident in India, who is of the age of
sixty-five years or more at any time during the previous year, referred to in
item (III) of Paragraph A of Part I of the First Schedule, the provisions of
this sub-section shall have effect as if for the words “one lakh fifty thousand rupees”, the words “two lakh twenty-five thousand rupees” had been substituted :
Provided also that the
amount of income-tax so arrived at, shall be increased
by a surcharge, for purposes of the
(3)
In cases to which the provisions of Chapter XII or Chapter XII-A or Chapter
XII-H or section 115JB or sub-section (1A) of section 161 or section 164 or
section 164A or section 167B of the Income-tax Act, 1961 (43 of 1961)
(hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall
be determined as provided in that Chapter or that section, and with reference to
the rates imposed by sub-section (1) or the rates as specified in that Chapter
or section, as the case may be :
Provided
that the amount of income-tax computed in accordance with the provisions of
section 111A or section 112 shall be increased by a surcharge, for purposes of
the
Provided
further
that in respect of any income chargeable to tax under sections 115A, 115AB,
115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115E and 115JB or fringe
benefits chargeable to tax under section 115WA of the Income-tax Act, the amount
of income-tax computed under this sub-section shall be increased by a surcharge,
for purposes of the Union, calculated,—
(a)
in the case of every individual, Hindu undivided
family, association of persons and body of individuals, whether incorporated or
not, at the rate of ten per cent of such income-tax where the total income
exceeds ten lakh rupees;
(b)
in the case of every artificial juridical person
referred to in sub-clause (vii)
of clause (31) of section 2 of the Income-tax Act, at the rate of ten per cent
of such income-tax;
(c)
in the case of every firm and domestic company,
at the rate of ten per cent of such income-tax where the total income exceeds
one crore rupees;
(d)
in the case of every company, other than a
domestic company, at the rate of two and one-half per cent of such income-tax
where the total income exceeds one crore rupees
:
Provided also that in the
case of every company having total income chargeable to tax under section 115JB
of the Income-tax Act, and such income exceeds one crore rupees, the total amount payable as income-tax and
surcharge on such income-tax shall not exceed the total amount payable as
income-tax on a total income of one crore rupees by
more than the amount of income that exceeds one crore
rupees :
Provided also that in
respect of any fringe benefits chargeable to tax under section 115WA of the
Income-tax Act, income-tax computed under this sub-section shall be increased by
a surcharge, for purposes of the Union,
calculated,—
(a)
in the case of every association of persons and
body of individuals, whether incorporated or not, at the rate of ten per cent of
income-tax where the fringe benefits exceed ten lakh
rupees;
(b)
in the case of every firm, artificial juridical
person referred to in sub-clause (v) of clause (a) of section 115W of the Income-tax Act,
and domestic company, at the rate of ten per cent of such
income-tax;
(c)
in the case of every company, other than a
domestic company, at the rate of two and one-half per cent of such
income-tax.
(4)
In cases in which tax has to be charged and paid under section 115-O or
sub-section (2) of section 115R of the Income-tax Act, the tax shall be charged
and paid at the rates as specified in those sections and shall be increased by a
surcharge, for purposes of the Union, calculated at the rate of ten per cent of
such tax.
(5)
In cases in which tax has to be deducted under sections 193, 194, 194A, 194B,
194BB, 194D and 195 of the Income-tax Act, at the rates in force, the deductions
shall be made at the rates specified in Part II of the First Schedule and shall
be increased by a surcharge, for purposes of the Union, calculated in cases
wherever prescribed, in the manner provided
therein.
(6)
In cases in which tax has to be deducted under sections 194C, 194E, 194EE, 194F,
194G, 194H, 194-I, 194J, 194LA, 196B, 196C and 196D of the Income-tax Act, the
deductions shall be made at the rates specified in those sections and shall be
increased by a surcharge, for purposes of the Union, in the case of every
company, other than a domestic company, calculated at the rate of two and
one-half per cent of such tax, where the income or the aggregate of such incomes
paid or likely to be paid and subject to the deduction exceeds one crore rupees.
(7)
In cases in which tax has to be collected under the proviso to section 194B of
the Income-tax Act, the collection shall be made at the rates specified in Part
II of the First Schedule, and shall be increased by a surcharge, for purposes of
the Union, calculated, in cases wherever prescribed, in the manner provided
therein.
(8)
In cases in which tax has to be collected under section 206C of the Income-tax
Act, the collection shall be made at the rates specified in that section and
shall be increased by a surcharge, for purposes of the Union, in the case of
every company, other than a domestic company, calculated at the rate of two and
one-half per cent of such tax, where the amount or the aggregate of such amounts
collected and subject to the collection exceeds one crore rupees.
(9)
Subject to the provisions of sub-section (10), in cases in which income-tax has
to be charged under sub-section (4) of section 172 or sub-section (2) of section
174 or section 174A or section 175 or sub-section (2) of section 176 of the
Income-tax Act or deducted from, or paid on, income chargeable under the head
“Salaries” under section 192 of the said Act or in which the “advance tax”
payable under Chapter XVII-C of the said Act has to be computed at the rate or
rates in force, such income-tax or, as the case may be, “advance tax” shall be
so charged, deducted or computed at the rate or rates specified in Part III of
the First Schedule and such tax shall be increased by a surcharge, for purposes
of the Union, calculated in such cases and in such manner as provided therein
:
Provided
that in cases to which the provisions of Chapter XII or Chapter XII-A or section
115JB or sub-section (1A) of section 161 or section 164 or section 164A or
section 167B of the Income-tax Act apply, “advance tax” shall be computed with
reference to the rates imposed by this sub-section or the rates as specified in
that Chapter or section, as the case may be
:
Provided
further
that the amount of “advance tax” computed in accordance with the provisions of
section 111A or section 112 of the Income-tax Act shall be increased by a
surcharge, for purposes of the
Provided
also
that in respect of any income chargeable to tax under sections 115A, 115AB,
115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115E and 115JB of the
Income-tax Act, “advance tax” computed under the first proviso shall be
increased by a surcharge, for purposes of the Union,
calculated,—
(a)
in the case of every domestic company, at the
rate of ten per cent of such “advance tax” where the total income exceeds one
crore rupees;
(b)
in the case of every company, other than a
domestic company, at the rate of two and one-half per cent of such “advance tax”
where the total income exceeds one crore rupees
:
Provided
also
that in the case of every company having total income chargeable to tax under
section 115JB of the Income-tax Act, and such income exceeds one crore rupees, the total amount payable as “advance tax” on
such income and surcharge thereon, shall not exceed the total amount payable as
“advance tax” on a total income of one crore rupees by
more than the amount of income that exceeds one crore
rupees.
(10)
In cases to which Paragraph A of Part III of the First Schedule applies, where
the assessee has, in the previous year or, if by
virtue of any provision of the Income-tax Act, income-tax is to be charged in
respect of the income of a period other than the previous year, in such other
period, any net agricultural income exceeding five thousand rupees, in addition
to total income and the total income exceeds one lakh
sixty thousand rupees, then, in charging income-tax under sub-section (2) of
section 174 or section 174A or section 175 or sub-section (2) of section 176 of
the said Act or in computing the “advance tax” payable under Chapter XVII-C of
the said Act, at the rate or rates in force,—
(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 sixty thousand rupees of the
total income but without being liable to tax], only for the purpose of charging
or computing such income-tax or, as the case may be, “advance tax” in respect of
the total income; and
(b)
such income-tax or, as the case may be, “advance
tax” shall be so charged or computed as follows :—
(i) the total income
and the net agricultural income shall be aggregated and the amount of income-tax
or “advance tax” shall be determined in respect of the aggregate income at the
rates specified in the said Paragraph A, as if such aggregate income were the
total income;
(ii)
the net agricultural income shall be increased by a sum of one lakh sixty thousand rupees, and the amount of income-tax or
“advance tax” shall be determined in respect of the net agricultural income as
so increased at the rates specified in the said Paragraph A, as if the net
agricultural income were the total income;
(iii)
the amount of income-tax or “advance tax” determined in accordance with
sub-clause (i) shall be reduced by the amount
of income-tax or, as the case may be, “advance tax” determined in accordance
with sub-clause (ii) and the sum
so arrived at shall be the income-tax or, as the case may be, “advance tax” in
respect of the total income :
Provided that in the case
of every woman, resident in India and below the age of sixty-five years at any
time during the previous year, referred to in item (II) of Paragraph A of Part
III of the First Schedule, the provisions of this sub-section shall have effect
as if for the words “one lakh sixty thousand rupees”,
the words “one lakh ninety thousand rupees” had been
substituted :
Provided further that in
the case of every individual, being a resident in India, who is of the age of
sixty-five years or more at any time during the previous year, referred to in
item (III) of Paragraph A of Part III of the First Schedule, the provisions of
this sub-section shall have effect as if for the words “one lakh sixty thousand rupees”, the words “two lakh forty thousand rupees” had been
substituted.
(11)
The amount of income-tax as specified in sub-sections (1) to (10) and as
increased by the applicable surcharge, for purposes of the Union, calculated in
the manner provided therein, shall be further increased by an additional
surcharge, for purposes of the Union, to be called the “Education Cess on income-tax”, calculated at the rate of two per cent
of such income-tax and surcharge so as to fulfil the
commitment of the Government to provide and finance universalised quality basic education
:
Provided
that nothing contained in this sub-section shall apply to cases in which tax is
to be deducted or collected under the sections of the Income-tax Act mentioned
in sub-sections (5), (6), (7) and (8), if the income subjected to deduction of
tax at source or collection of tax at source is paid to a domestic company and
any other person who is resident in India.
(12)
The amount of income-tax as specified in sub-sections (1) to (10) and as
increased by the applicable surcharge, for purposes of the Union, calculated in
the manner provided therein, shall also be increased by an additional surcharge,
for purposes of the Union, to be called the “Secondary and Higher Education
Cess on income-tax”, calculated at the rate of one per
cent of such income-tax and surcharge so as to fulfil
the commitment of the Government to provide and finance secondary and higher
education :
Provided
that nothing contained in this sub-section shall apply to cases in which tax is
to be deducted or collected under the sections of the Income-tax Act mentioned
in sub-sections (5), (6), (7) and (8), if the income subjected to deduction of
tax at source or collection of tax at source is paid to a domestic company and
any other person who is resident in India.
(13)
For the purposes of this section and the First
Schedule,—
(a)
“domestic company” means an Indian company or any other company which, in
respect of its income liable to income-tax under the Income-tax Act, for the
assessment year commencing on the 1st day of April, 2009, has made the
prescribed arrangements for the declaration and payment within India of the
dividends (including dividends on preference shares) payable out of such
income;
(b)
“insurance commission” means any remuneration or
reward, whether by way of commission or otherwise, for soliciting or procuring
insurance business (including business relating to the continuance, renewal or
revival of policies of insurance);
(c)
“net agricultural income”, in relation to a person, means the total
amount of agricultural income, from whatever source derived, of that person
computed in accordance with the rules contained in Part IV of the First
Schedule;
(d)
all other words and expressions used in this
section and the First Schedule but not defined in this sub-section and defined
in the Income-tax Act shall have the meanings respectively assigned to them in
that Act.
Chapter
III
Direct
Taxes
Income-tax
Amendment
of section 2.
3.
In section 2 of the Income-tax Act,—
(a)
in clause (15), after the
words “medical relief”, the words and brackets “preservation of environment
(including watersheds, forests and wildlife) and preservation of monuments or
places or objects of artistic or historic interest,” shall be
inserted;
(b)
after clause (22AA), the following clause shall be
inserted with effect from the 1st day of April, 2010, namely
:—
‘(22AAA) “electoral trust” means a trust so
approved by the Board in accordance with the scheme made in this regard by the
Central Government;’;
(c)
for clause (23), the following clause shall be
substituted with effect from the 1st day of April, 2010, namely
:—
‘(23)
(i)
“firm” shall have the meaning assigned to it in the Indian Partnership Act, 1932
(9 of 1932), and shall include a limited liability partnership as defined in the
Limited Liability Partnership Act, 2008 (6 of
2009);
(ii) “partner”
shall have the meaning assigned to it in the Indian Partnership Act, 1932 (9 of
1932), and shall include,—
(a)
any person who, being a minor, has been admitted
to the benefits of partnership; and
(b)
a partner of a limited liability partnership as
defined in the Limited Liability Partnership Act, 2008 (6 of
2009);
(iii) “partnership” shall have the meaning
assigned to it in the Indian Partnership Act, 1932 (9 of 1932), and shall
include a limited liability partnership as defined in the Limited Liability
Partnership Act, 2008 (6 of 2009);’;
(d)
in clause (24), in sub-clause (iia), after the word and figures
“section 10”, the words “or by an electoral trust” shall be inserted with effect
from the 1st day of April, 2010;
(e)
after clause (29B), the following clause shall
be inserted, namely :—
‘(29BA) “manufacture”, with its grammatical
variations, means a change in a non-living physical object or article or
thing,—
(a)
resulting in transformation of the object or
article or thing into a new and distinct object or article or thing having a
different name, character and use; or
(b)
bringing into existence of a new and distinct
object or article or thing with a different chemical composition or integral
structure;’;
(f)
in clause (48),—
(i) in sub-clauses
(a) and (b), after the words “public sector
company”, the words “or scheduled bank” shall respectively be
inserted;
(ii)
after clause (c), the following Explanation shall be inserted, namely
:—
‘Explanation.—For the
purposes of this clause, the expression “scheduled bank” shall have the meaning
assigned to it in clause (ii) of
the Explanation to sub-clause
(c) of clause (viia) of
sub-section (1) of section 36’.
Amendment
of section 10.
4.
In section 10 of the Income-tax Act,—
(a)
in clause (10C), after the second proviso, the
following proviso shall be inserted with effect from the 1st day of April, 2010,
namely :—
“Provided also that where any relief has
been allowed to an assessee under section 89 for any
assessment year in respect of any amount received or receivable on his voluntary
retirement or termination of service or voluntary separation, no exemption under
this clause shall be allowed to him in relation to such, or any other,
assessment year.”
(b)
in clause (23C), in the fourteenth proviso, for the words “made at any
time during the financial year immediately preceding the assessment year”, the
words, figures and letters “made on or before the 30th day of September of the
relevant assessment year” shall be substituted;
(c)
in clause (23D), in the Explanation, in clause (a), after the words, brackets and figures
“Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of
1980)”, the words “and a bank included in the category ‘other public sector
banks’ by the Reserve Bank of India” shall be inserted with effect from the 1st
day of April, 2010;
(d)
after clause (43), the following clause shall be
inserted, namely :—
“(44) any
income received by any person for, or on behalf of, the New Pension System Trust
established on the 27th day of February, 2008 under the provisions of the Indian
Trusts Act, 1882 (2 of 1882).”.
Amendment
of section 10A.
5.
In section 10A of the Income-tax Act, in sub-section (1), in the fourth proviso,
for the figures, letters and words “1st day of April, 2011”, the figures,
letters and words “1st day of April, 2012” shall be
substituted.
Amendment
of section 10AA.
6.
In section 10AA of the Income-tax Act, in sub-section (7), for the words “by the
assessee” occurring at the end, the words “by the
undertaking” shall be substituted with effect from the 1st day of April,
2010.
Amendment
of section 10B.
7.
In section 10B of the Income-tax Act, in sub-section (1), in the third proviso,
for the figures, letters and words “1st day of April, 2011”, the figures,
letters and words “1st day of April, 2012” shall be
substituted.
Insertion
of new section 13B.
8.
After section 13A of the Income-tax Act, the following section shall be inserted
with effect from the 1st day of April, 2010, namely
:—
“13B.
Special provisions relating to voluntary
contributions received by electoral trust.—Any voluntary contributions received by an electoral trust
shall not be included in the total income of the previous year of such electoral
trust, if—
(a)
such electoral trust distributes to any political party, registered under
section 29A of the Representation of the People Act, 1951 (43 of 1951), during
the said previous year, ninety-five per cent of the aggregate donations received
by it during the said previous year along with the surplus, if any, brought
forward from any earlier previous year; and
(b)
such electoral trust functions in accordance
with the rules made by the Central Government.”
Amendment
of section 17.
9.
In section 17 of the Income-tax Act, in clause (2), for sub-clause (vi), the following sub-clauses shall be
substituted with effect from the 1st day of April, 2010, namely :—
‘(vi)
the value of any specified security or sweat equity shares allotted or
transferred, directly or indirectly, by the employer, or former employer, free
of cost or at concessional rate to the assessee.
Explanation.—For the purposes of this
sub-clause,—
(a)
“specified security” means the securities as defined in clause (h) of section 2 of the Securities
Contracts (Regulation) Act, 1956 (42 of 1956) and, where employees’ stock option
has been granted under any plan or scheme therefor,
includes the securities offered under such plan or
scheme;
(b)
“sweat equity shares” means equity shares issued by a company to its
employees or directors at a discount or for consideration other than cash for
providing know-how or making available rights in the nature of intellectual
property rights or value additions, by whatever name
called;
(c)
the value of any specified security or sweat equity shares shall be the
fair market value of the specified security or sweat equity shares, as the case
may be, on the date on which the option is exercised by the assessee as reduced by the amount actually paid by, or
recovered from the assessee in respect of such
security or shares;
(d)
“fair market value” means the value determined
in accordance with the method as may be prescribed;
(e)
“option” means a right but not an obligation
granted to an employee to apply for the specified security or sweat equity
shares at a predetermined price;
(vii)
the amount of any contribution to an approved
superannuation fund by the employer in respect of the assessee, to the extent it exceeds one lakh rupees;
(viii)
the value of any other fringe benefit or amenity
as may be prescribed.
Amendment
of section 28.
10.
In section 28 of the Income-tax Act, after clause (vi), the following clause shall be
inserted with effect from the 1st day of April, 2010, namely
:—
“(vii) any
sum, whether received or receivable, in cash or kind, on account of any capital
asset (other than land or goodwill or financial instrument) being demolished,
destroyed, discarded or transferred, if the whole of the expenditure on such
capital asset has been allowed as a deduction under section
35AD;”.
Amendment
of section 32.
11.
In section 32 of the Income-tax Act, in sub-section (1), in Explanation 3, for the words ‘the
expressions “assets” and “block of assets”’, the words ‘the expression “assets”’
shall be substituted with effect from the 1st day of April,
2010.
Amendment
of section 35.
12.
In section 35 of the Income-tax Act, in sub-section (2AB), in clause (1), for
the words “the business of manufacture or production of any drugs,
pharmaceuticals, electronic equipments, computers, telecommunication equipments,
chemicals or any other article or thing notified by the Board”, the words “any
business of manufacture or production of any article or thing, not being an
article or thing specified in the list of the Eleventh Schedule” shall be
substituted with effect from the 1st day of April,
2010.
Insertion
of new section 35AD.
13.
After section 35AC of the Income-tax Act, the following section shall be
inserted with effect from the 1st day of April, 2010, namely
:—
“35AD.
Deduction in respect of expenditure on
specified business.—(1) An assessee shall
be allowed a deduction in respect of the whole of any expenditure of capital
nature incurred, wholly and exclusively, for the purposes of any specified
business carried on by him during the previous year in which such expenditure is
incurred by him.
(2)
This section applies to the specified business which fulfils all the following
conditions, namely :—
(i) it is not set up
by splitting up, or the reconstruction, of a business already in
existence;
(ii)
it is not set up by the transfer to the
specified business of machinery or plant previously used for any
purpose;
(iii)
where the business is of the nature referred to
in sub-clause (iii) of clause
(c) of sub-section (8), such
business,—
(a)
is owned by a company formed and registered in
(b)
has been approved by the Petroleum and Natural Gas Regulatory Board
established under sub-section (1) of section 3 of the Petroleum and Natural Gas
Regulatory Board Act, 2006 (19 of 2006) and notified by the Central Government
in the Official Gazette in this behalf;
(c)
has made not less than one-third of its total pipeline capacity available
for use on common carrier basis by any person other than the assessee or an associated person;
and
(d)
fulfils any other condition as may be
prescribed.
(3)
The assessee shall not be allowed any deduction in
respect of the specified business under the provisions of Chapter VIA under the
heading “C.— Deductions in respect of certain
incomes”.
(4)
No deduction in respect of the expenditure referred to in sub-section (1) shall
be allowed to the assessee under any other section in
any previous year or under this section in any other previous
year.
(5)
The provisions of this section shall apply to the specified business referred to
in sub-section (2) if it commences its operations,—
(a)
on or after the 1st day of April, 2007, where the specified business is
in the nature of laying and operating a cross-country natural gas pipeline
network for distribution, including storage facilities being an integral part of
such network; and
(b)
on or after the 1st day of April, 2009, in all
other cases not falling under clause (a).
(6)
The assessee carrying on the business of the nature
referred to in clause (a) of
sub-section (5) shall be allowed, in addition to deduction under sub-section
(1), a further deduction in the previous year relevant to the assessment year
beginning on the 1st day of April, 2010, of an amount in respect of expenditure
of capital nature incurred during any earlier previous year,
if—
(a)
the business referred to in clause (a) of sub-section (5) has commenced its
operation at any time during the period beginning on or after the 1st day of
April, 2007 and ending on the 31st day of March, 2009;
and
(b)
no deduction for such amount has been allowed or
is allowable to the assessee in any earlier previous
year.
(7)
The provisions contained in sub-section (6) of section 80A and the provisions of
sub-sections (7) and (10) of section 80-IA shall, so far as may be, apply to
this section in respect of goods or services or assets held for the purposes of
the specified business.
(8)
For the purposes of this section,—
(a)
an “associated person”, in relation to the assessee, means a person,—
(i) who
participates, directly or indirectly, or through one or more intermediaries in
the management or control or capital of the assessee;
(ii)
who holds, directly or indirectly, shares
carrying not less than twenty-six per cent of the voting power in the capital of
the assessee;
(iii)
who appoints more than half of the Board of directors or members of the
governing board, or one or more executive directors or executive members of the
governing board of the assessee;
or
(iv)
who guarantees not less than ten per cent of the
total borrowings of the assessee;
(b)
“cold chain facility” means a chain of facilities for storage or
transportation of agricultural and forest produce, meat and meat products,
poultry, marine and dairy products, products of horticulture, floriculture and
apiculture and processed food items under scientifically controlled conditions
including refrigeration and other facilities necessary for the preservation of
such produce;
(c)
“specified business” means the any one or more
of the following business, namely :—
(i) setting up and
operating a cold chain facility;
(ii)
setting up and operating a warehousing facility
for storage of agricultural produce;
(iii)
laying and operating a cross-country natural gas
or crude or petroleum oil pipeline network for distribution, including storage
facilities being an integral part of such network.
(d)
any machinery or plant which was used outside
(i) such machinery
or plant was not, at any time prior to the date of the installation by the assessee, used in
(ii)
such machinery or plant is imported into
(iii)
no deduction on account of depreciation in respect of such machinery or
plant has been allowed or is allowable under the provisions of this Act in
computing the total income of any person for any period prior to the date of the
installation of the machinery or plant by the assessee;
(e)
where in the case of a specified business, any machinery or plant or any
part thereof previously used for any purpose is transferred to the specified
business and the total value of the machinery or plant or part so transferred
does not exceed twenty per cent of the total value of the machinery or plant
used in such business, then, for the purposes of clause (ii) of sub-section (2), the condition
specified therein shall be deemed to have been complied
with;
(f)
any expenditure of capital nature shall not
include any expenditure incurred on the acquisition of any land or goodwill or
financial instrument’.
Amendment
of section 36.
14.
In section 36 of the Income-tax Act, in sub-section
(1),—
(a)
in clause (iiia), in the Explanation, in clause (i), after the
words “public sector company”, at both the places where they occur, the words
“or scheduled bank” shall be inserted;
(b)
in clause (viii), in the Explanation, in clause (b), for sub-clause (i), the
following sub-clause shall be substituted with effect from the 1st day of April,
2010, namely :—
“(i) in respect of
the specified entity referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii) or sub-clause (iv) of clause (a), the business of providing long-term
finance for—
(A)
industrial or agricultural
development;
(B)
development of infrastructure facility in
(C)
development of housing in
(c)
clause (xvi) shall be
omitted.
Amendment
of section 40
15.
In section 40 of the Income-tax Act, in clause (b), in sub-clause (v), for items (1) and (2), the following
shall be substituted with effect from the 1st day of April, 2010, namely
:—
|
|
“(a) |
on
the first Rs. 3,00,000 of the book-profit or in
case of a loss |
Rs.
1,50,000 or at the rate of 90 per cent of the book-profit, whichever is
more; |
|
|
(b) |
on
the balance of the book-profit |
at
the rate of 60 per
cent”. |
Amendment
of section 40A.
16.
In section 40A of the Income-tax Act, in sub-section (3A), after the proviso,
the following proviso shall be inserted with effect from the 1st day of October,
2009, namely :—
‘Provided further that in the case of
payment made for plying, hiring or leasing goods carriages, the provisions of
sub-sections (3) and (3A) shall have effect as if for the words “twenty thousand
rupees”, the words “thirty-five thousand rupees” had been
substituted’.
Amendment
of section 43.
17.
In section 43 of the Income-tax Act, with effect from the 1st day of April,
2010,—
(a)
in clause (1), after Explanation 12, the following Explanation shall be inserted, namely
:—
“Explanation 13.—The actual cost of any
capital asset on which deduction has been allowed or is allowable to the assessee under section 35AD, shall be treated as ‘nil’,—
(a)
in the case of such assessee; and
(b)
in any other case if the capital asset is
acquired or received,—
(i) by way of gift
or will or an irrevocable trust;
(ii)
on any distribution on liquidation of the
company; and
(iii)
by such mode of transfer as is referred to in clauses (i), (iv), (v), (vi), (vib), (xiii) and (xiv) of section
47;”
(b)
in clause (6), after Explanation 6, the following Explanation shall be inserted, namely
:—
‘Explanation 7.—For the purposes of this
clause, where the income of an assessee is derived, in
part from agriculture and in part from business chargeable to income-tax under
the head “Profits and gains of business or profession”, for computing the
written down value of assets acquired before the previous year, the total amount
of depreciation shall be computed as if the entire income is derived from the
business of the assessee under the head “Profits and
gains of business or profession” and the depreciation so computed shall be
deemed to be the depreciation actually allowed under this
Act.’
Amendment
of section 44AA.
18.
In section 44AA of the Income-tax Act, in sub-section (2), with effect from the
1st day of April, 2011,—
(a)
in clause (iii),—
(i) for the words, figures and letters
“section 44AD or section 44AE or section 44AF”, the word, figures and letters
“section 44AE” shall be substituted;
(ii)
for the words “previous year,” occurring at the
end, the words “previous year; or” shall be
substituted;
(b)
after clause (iii), the following clause shall be
inserted, namely :—
“(iv)
where the profits and gains from the business are deemed to be the
profits and gains of the assessee under section 44AD
and he has claimed such income to be lower than the profits and gains so deemed
to be the profits and gains of his business and his income exceeds the maximum
amount which is not chargeable to income-tax during such previous
year”.
Amendment
of section 44AB.
19.
In section 44AB of the Income-tax Act, with effect from the 1st day of April,
2011,—
(a)
in clause (c),—
(i) for the words, figures and letters
“section 44AD or section 44AE or section 44AF”, the word, figures and letters
“section 44AE” shall be substituted;
(ii)
for the words “previous year,” occurring at the
end, the words “previous year; or” shall be
substituted;
(b)
after clause (c), the following clause shall be
inserted, namely :—
“(d)
carrying on the business shall, if the profits and gains from the
business are deemed to be the profits and gains of such person under section
44AD and he has claimed such income to be lower than the profits and gains so
deemed to be the profits and gains of his business and his income exceeds the
maximum amount which is not chargeable to income-tax in any previous
year”.
Substitution
of new section for section 44AD.
20.
For section 44AD of the Income-tax Act, the following section shall be
substituted with effect from the 1st day of April, 2011, namely :—
’44AD.
Special provision for computing profits and
gains of business on presumptive basis.—(1) Notwithstanding anything
to the contrary contained in sections 28 to 43C, in the case of an eligible
assessee engaged in an eligible business, a sum equal
to eight per cent of the total turnover or gross receipts of the assessee in the previous year on account of such business
or, as the case may be, a sum higher than the aforesaid sum claimed to have been
earned by the eligible assessee, shall be deemed to be
the profits and gains of such business chargeable to tax under the head “Profits
and gains of business or profession”.
(2)
Any deduction allowable under the provisions of sections 30 to 38 shall, for the
purposes of sub-section (1), be deemed to have been already given full effect to
and no further deduction under those sections shall be allowed
:
Provided
that where the eligible assessee is a firm, the salary
and interest paid to its partners shall be deducted from the income computed
under sub-section (1) subject to the conditions and limits specified in clause
(b) of section
40.
(3)
The written down value of any asset of an eligible business shall be deemed to
have been calculated as if the eligible assessee had
claimed and had been actually allowed the deduction in respect of the
depreciation for each of the relevant assessment
years.
(4)
The provisions of Chapter XVII-C shall not apply to an eligible assessee insofar as they relate to the eligible
business.
(5)
Notwithstanding anything contained in the foregoing provisions of this section,
an eligible assessee who claims that his profits and
gains from the eligible business are lower than the profits and gains specified
in sub-section (1) and whose total income exceeds the maximum amount which is
not chargeable to income-tax, shall be required to keep and maintain such books
of account and other documents as required under sub-section (2) of section 44AA
and get them audited and furnish a report of such audit as required under
section 44AB.
Explanation.—For the purposes of this
section,—
(a)
“eligible assessee”
means,—
(i) an individual, Hindu undivided family or
a partnership firm, who is a resident, but not a limited liability partnership
firm as defined under clause (n)
of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008
(6 of 2009); and
(ii)
who has not claimed deduction under any of the
sections 10A, 10AA, 10B, 10BA or deduction under any provisions of Chapter VIA
under the heading “C. - Deductions in respect of certain incomes” in the
relevant assessment year;
(b)
“eligible business”
means,—
(i) any business except the business of
plying, hiring or leasing goods carriages referred to in section 44AE;
and
(ii)
whose total turnover or gross receipts in the
previous year does not exceed an amount of forty lakh
rupees’.
Amendment
of section 44AE.
21.
In section 44AE of the Income-tax Act, for sub-section (2), the following
sub-section shall be substituted with effect from the 1st day of April, 2011,
namely :—
“(2)
For the purposes of sub-section (1), the profits and
gains from each goods carriage,—
(i) being a heavy goods vehicle, shall be an
amount equal to five thousand rupees for every month or part of a month during
which the heavy goods vehicle is owned by the assessee
in the previous year or an amount claimed to have been actually earned from such
vehicle, whichever is higher;
(ii)
other than a heavy goods vehicle, shall be an
amount equal to four thousand five hundred rupees for every month or part of a
month during which the goods carriage is owned by the assessee in the previous year or an amount claimed to have
been actually earned from such vehicle, whichever is
higher.”.
Amendment
of section 44AF
22.
In section 44AF of the Income-tax Act, after sub-section (5), the following
sub-section shall be inserted, namely
:—
“(6)
Nothing contained in this section shall apply to any assessment year beginning
on or after the 1st day of April, 2011.”.
Amendment
of section 49
23.
In section 49 of the Income-tax Act, for sub-section (2AA), the following
sub-section shall be substituted with effect from the 1st day of April, 2010,
namely :—
“(2AA)
Where the capital gain arises from the transfer of specified security or sweat
equity shares referred to in sub-clause (vi) of clause (2) of section 17, the cost
of acquisition of such security or shares shall be the fair market value which
has been taken into account for the purposes of the said sub-clause.”.
Amendment
of section 50B
24.
In section 50B of the Income-tax Act, in Explanation 2, for clause (b), the following clauses shall be
substituted with effect from the 1st day of April, 2010, namely :—
“(b)
in the case of capital assets in respect of which the whole of the
expenditure has been allowed or is allowable as a deduction under section 35AD,
nil;
and
(c)
in the case of other assets, the book value of
such assets.”.
Amendment
of section 50C
25.
In section 50C of the Income-tax Act, with effect from the 1st day of October,
2009,—
(a)
for the words “or assessed” wherever they occur,
the words “or assessed or assessable” shall be
substituted;
(b)
in sub-section (2), the Explanation shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the
following Explanation shall be
inserted, namely :—
‘Explanation 2.—For the purposes of this
section, the expression “assessable” means the price which the stamp valuation
authority would have, notwithstanding anything to the contrary contained in any
other law for the time being in force, adopted or assessed, if it were referred
to such authority for the purposes of the payment of stamp
duty.’.
Amendment
of section 56
26.
In section 56 of the Income-tax Act, in sub-section
(2),—
(a)
with effect from the 1st day of October,
2009,—
(i) in clause
(vi), after the words, figures
and letters “on or after the 1st day of April, 2006”, the words, figures and
letters “but before the 1st day of October, 2009” shall be
inserted;
(ii)
after clause (vi), the following clause shall be
inserted, namely :—
‘(vii) where an individual or a Hindu
undivided family receives, in any previous year, from any person or persons on
or after the 1st day of October, 2009,—
(a) any sum of
money, without consideration, the aggregate value of which exceeds fifty
thousand rupees, the whole of the aggregate value of such
sum;
(b) any immovable
property,—
(i) without
consideration, the stamp duty value of which exceeds fifty thousand rupees, the
stamp duty value of such property;
(ii) for a consideration which is less than
the stamp duty value of the property by an amount exceeding fifty thousand
rupees, the stamp duty value of such property as exceeds such
consideration;
(c) any property,
other than immovable property,—
(i) without consideration, the aggregate fair
market value of which exceeds fifty thousand rupees, the whole of the aggregate
fair market value of such property;
(ii) for a
consideration which is less than the aggregate fair market value of the property
by an amount exceeding fifty thousand rupees, the aggregate fair market value of
such property as exceeds such consideration :
Provided that where the
stamp duty value of immovable property as referred to in sub-clause (b) is disputed by the assessee on grounds mentioned in sub-section (2) of section
50C, the Assessing Officer may refer the valuation of such property to a
Valuation Officer, and the provisions of section 50C and sub-section (15) of
section 155 shall, as far as may be, apply in relation to the stamp duty value
of such property for the purpose of sub-clause (b) as they apply for valuation of capital
asset under that section :
Provided further that this
clause shall not apply to any sum of money or any property
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 or donor, as the case may be;
or
(e) from any local
authority as defined in the Explanation to clause (20) of section 10;
or
(f) from any fund or
foundation or university or other educational institution or hospital or other
medical institution or any trust or institution referred to in clause (23C) of
section 10; or
(g) from any trust
or institution registered under section 12AA.
Explanation.—For the purposes of this
clause,—
(a) “assessable”
shall have the meaning assigned to it in the Explanation 2 to sub-section (2) of
section 50C;
(b) “fair market
value” of a property, other than an immovable property, means the value
determined in accordance with the method as may be
prescribed;
(c) “jewellery” shall have the meaning assigned to it in
the Explanation to sub-clause
(ii) of clause (14) of section
2;
(d) “property”
means—
(i) immovable
property being land or building or both;
(ii) shares and
securities;
(iii) jewellery;
(iv) archaeological
collections;
(v) drawings;
(vi) paintings;
(vii) sculptures;
or
(viii) any work of
art;
(e) “relative” shall
have the meaning assigned to it in the Explanation to clause (vi) of sub-section (2) of this
section;
(f) “stamp duty
value” means the value adopted or assessed or assessable by any authority of the
Central Government or a State Government for the purpose of payment of stamp
duty in respect of an immovable property;
(b)
after clause (vii) as so inserted, the following clause
shall be inserted with effect from the 1st day of April, 2010, namely
:—
“(viii) income by
way of interest received on compensation or on enhanced compensation referred to
in sub-section (2) of section 145A.”.
Amendment
of section 57.
27.
In section 57 of the Income-tax Act, after clause (iii), the following clause shall be
inserted at the end with effect from the 1st day of April, 2010, namely :—
“(iv)
in the case of income of the nature referred to
in clause (viii) of sub-section
(2) of section 56, a deduction of a sum equal to fifty per cent of such income
and no deduction shall be allowed under any other clause of this
section.”.
Insertion
of new section 73A.
28.
After section 73 of the Income-tax Act, the following section shall be inserted
with effect from the 1st day of April, 2010, namely
:—
“73A.
Carry forward and set off of losses by
specified business.—(1) Any loss, computed in respect of any
specified business referred to in section 35AD shall not be set off except
against profits and gains, if any, of any other specified
business.
(2)
Where for any assessment year any loss computed in respect of the specified
business referred to in sub-section (1) has not been wholly set off under
sub-section (1), so much of the loss as is not so set off or the whole loss
where the assessee has no income from any other
specified business, shall, subject to the other provisions of this Chapter, be
carried forward to the following assessment year,
and—
(i) it shall be set off against the profits
and gains, if any, of any specified business carried on by him assessable for
that assessment year; and
(ii)
if the loss cannot be wholly so set off, the
amount of loss not so set off shall be carried forward to the following
assessment year and so on.”.
Amendment
of section 80A.
29.
In section 80A of the Income-tax Act,—
(a)
after sub-section (3), the following
sub-sections shall be inserted, and shall be deemed to have been inserted with
effect from the 1st day of April, 2003, namely:—
‘(4)
Notwithstanding anything to the contrary contained in section 10A or section
10AA or section 10B or section 10BA or in any provisions of this Chapter under
the heading “C-Deductions in respect of
certain incomes”, where, in the case of an assessee, any amount of profits and gains of an undertaking
or unit or enterprise or eligible business is claimed and allowed as a deduction
under any of those provisions for any assessment year, deduction in respect of,
and to the extent of, such profits and gains shall not be allowed under any
other provisions of this Act for such assessment year and shall in no case
exceed the profits and gains of such undertaking or unit or enterprise or
eligible business, as the case may be.
(5)
Where the assessee fails to make a claim in his return
of income for any deduction under section 10A or section 10AA or section 10B or
section 10BA or under any provision of this Chapter under the heading
“C.—Deductions in respect of certain
incomes”, no deduction shall be allowed to him thereunder.’;
(b)
after sub-section (5) as so inserted, the
following sub-section shall be inserted, namely:—
‘(6)
Notwithstanding anything to the contrary contained in section 10A or section
10AA or section 10B or section 10BA or in any provisions of this Chapter under
the heading “C-Deductions in respect of
certain incomes”, where any goods or services held for the purposes
of the undertaking or unit or enterprise or eligible business are transferred to
any other business carried on by the assessee or where
any goods or services held for the purposes of any other business carried on by
the assessee are transferred to the undertaking or
unit or enterprise or eligible business and, the consideration, if any, for such
transfer as recorded in the accounts of the undertaking or unit or enterprise or
eligible business does not correspond to the market value of such goods or
services as on the date of the transfer, then, for the purposes of any deduction
under this Chapter, the profits and gains of such undertaking or unit or
enterprise or eligible business shall be computed as if the transfer, in either
case, had been made at the market value of such goods or services as on that
date.
Explanation.—For the purposes of this sub-section, the expression “market
value”,—
(i) in relation to any goods or services sold
or supplied, means the price that such goods or services would fetch if these
were sold by the undertaking or unit or enterprise or eligible business in the
open market, subject to statutory or regulatory restrictions, if
any;
(ii)
in relation to any goods or services acquired, means the price that such
goods or services would cost if these were acquired by the undertaking or unit
or enterprise or eligible business from the open market, subject to statutory or
regulatory restrictions, if any.’.
Amendment
of section 80CCD
30.
In section 80CCD of the Income-tax Act,—
(a)
in sub-section (1), in the opening portion, after the words, figures and
letters “Where an assessee, being an individual,
employed by the Central Government or any other employer on or after the 1st day
of January, 2004,”, the words “or any other assessee,
being an individual” shall be inserted;
(b)
after sub-section (4), the following sub-section
shall be inserted, namely:—
“(5)
For the purposes of this section, the assessee shall
be deemed not to have received any amount in the previous year if such amount is
used for purchasing an annuity plan in the same previous year.”.
Amendment
of section 80DD
31.
In section 80DD of the Income-tax Act, in sub-section (1), in the proviso, for
the words “seventy-five thousand rupees”, the words “one hundred thousand
rupees” shall be substituted with effect from the 1st day of April,
2010.
Amendment
of section 80E
32.
In section 80E of the Income-tax Act, in sub-section (3), for clause (c), the following clause shall be
substituted with effect from the 1st day of April, 2010,
namely:—
‘(c)
“higher education” means any course of study pursued after passing the
Senior Secondary Examination or its equivalent from any school, board or
university recognised by the Central Government or
State Government or local authority or by any other authority authorised by the Central Government or State Government or
local authority to do so;’.
Amendment
of section 80G
33.
In section 80G of the Income-tax Act, in sub-section
(5),—
(a)
in clause (v), the word “and” at the end shall be
omitted;
(b)
in clause (vi), for the words “made in this behalf”,
the words “made in this behalf; and” shall be
substituted;
(c)
in clause (vi), the proviso shall be omitted with
effect from the 1st day of October, 2009;
(d)
after clause (vi), the following clause shall be
inserted, namely:—
“(vii) where
any institution or fund had been approved under clause (vi) for the previous year beginning on the
1st day of April, 2007 and ending on the 31st day of March, 2008, such
institution or fund shall, for the purposes of this section and notwithstanding
anything contained in the proviso to clause (15) of section 2, be deemed to have
been,—
(a)
established for charitable purposes for the previous year beginning on
the 1st day of April, 2008 and ending on the 31st day of March, 2009;
and
(b)
approved under the said clause (vi) for the previous year beginning on the
1st day of April, 2008 and ending on the 31st day of March,
2009.”.
Amendment
of section 80GGB
34.
In section 80GGB of the Income-tax Act, after the words “political party”, the
words “or an electoral trust” shall be inserted with effect from the 1st day of
April, 2010.
Amendment
of section 80GGC
35.
In section 80GGC of the Income-tax Act, for the words “to a political party”,
the words “to a policital party or an electoral trust”
shall be substituted with effect from the 1st day of April,
2010.
Amendment
of section 80-IA
36.
In section 80-IA of the Income-tax Act,—
(a)
in sub-section (1), the words “or lays and
begins to operate a cross-country natural gas distribution network” shall be
omitted with effect from the 1st day of April,
2010;
(b)
in sub-section (3), the words, brackets and
letters “or clause (vi)” shall be
omitted with effect from the 1st day of April,
2010;
(c)
in sub-section
(4),—
(A)
in clause (iv), for the words, figures and letters
“the 31st day of March, 2010” wherever they occur, the words, figures and
letters “31st day of March, 2011” shall respectively be
substituted;
(B)
in clause (v), in
sub-clause (b), for the figures,
letters and words “31st day of March, 2008”, the figures, letters and words
“31st day of March, 2011” shall be substituted and shall be deemed to have been
substituted with effect from the 1st day of April,
2008;
(C)
clause (vi) shall be omitted with effect from the
1st day of April, 2010;
(d)
after sub-section (13), for the Explanation, the following Explanation shall be substituted and shall
be deemed to have been substituted with effect from the 1st day of April, 2000,
namely:—
“Explanation.—For the removal of doubts, it
is hereby declared that nothing contained in this section shall apply in
relation to a business referred to in sub-section (4) which is in the nature of
a works contract awarded by any person (including the Central or State
Government) and executed by the undertaking or enterprise referred to in
sub-section (1).”.
Amendment
of section 80-IB
37.
In section 80-IB of the Income-tax Act,—
(a)
for sub-section (9), the following sub-section
shall be substituted and shall be deemed to have been substituted with effect
from the 1st day of April, 2000, namely:—
‘(9)
The amount of deduction to an undertaking shall be hundred per cent of the
profits for a period of seven consecutive assessment years, including the
initial assessment year, if such undertaking fulfils any of the following,
namely:—
(i) is located in North-Eastern Region and
has begun or begins commercial production of mineral oil before the 1st day of
April, 1997;
(ii) is located in any part of
(iii)
is engaged in refining of mineral oil and begins
such refining on or after the 1st day of October,
1998.
Explanation.—For the purposes of claiming deduction under this
sub-section, all blocks licensed under a single contract, which has been awarded
under the New Exploration Licencing Policy announced
by the Government of India vide
Resolution No. O-19018/22/95-ONG.DO.VL, dated 10th February, 1999 or has been
awarded in pursuance of any law for the time being in force or has been awarded
by Central or a State Government in any other manner, shall be treated as a
single “undertaking”.’;
(b)
in sub-section (9), as so
substituted,—
(A)
in clause (iii), after the
words, figures and letters “the 1st day of October, 1998”, the words, figures
and letters “but not later than the 31st day of March, 2012” shall be
inserted;
(B)
after clause (iii), the following clause shall be
inserted with effect from the 1st day of April, 2010,
namely:—
‘(iv)
is engaged in commercial production of natural gas in blocks licensed
under the VIII Round of bidding for award of exploration contracts (hereafter
referred to as “NELP-VIII”) under the New Exploration Licencing Policy announced by the Government of India
vide Resolution No.
O-19018/22/95-ONG.DO.VL, dated 10th February, 1999 and begins commercial
production of natural gas on or after the 1st day of April, 2009.’;
(c)
in sub-section
(10),—
(i) after clause
(d), the following clauses shall
be inserted with effect from the 1st day of April, 2010,
namely:—
“(e)
not more than one residential unit in the
housing project is allotted to any person not being an individual;
and
(f)
in a case where a residential unit in the housing project is allotted to
a person being an individual, no other residential unit in such housing project
is allotted to any of the following persons,
namely:—
(i) the spouse or
the minor children of such individual,
(ii) the Hindu
undivided family in which such individual is the karta,
(iii) any person representing such individual,
the spouse or the minor children of such individual or the Hindu undivided
family in which such individual is the karta;”;
(ii)
the following Explanation shall be inserted and shall be
deemed to have been inserted with effect from the 1st day of April, 2001,
namely:—
“Explanation.—For the
removal of doubts, it is hereby declared that nothing contained in this
sub-section shall apply to any undertaking which executes the housing project as
a works contract awarded by any person (including the Central or State
Government).”.
Amendment
of section 89
38.
In section 89 of the Income-tax Act, the following proviso shall be inserted
with effect from the 1st day of April, 2010,
namely:—
“Provided that no such relief shall be
granted in respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his
service, in accordance with any scheme or schemes of voluntary retirement or in
the case of a public sector company referred to in sub-clause (i) of clause
(10C) of section 10, a scheme of
voluntary separation, if an exemption in respect of any amount received or
receivable on such voluntary retirement or termination of his service or
voluntary separation has been claimed by the assessee
under clause (10C) of section 10
in respect of such, or any other, assessment
year.”.
Substitution
of new section for section 90
39.
For section 90 of the Income-tax Act, the following section shall be substituted
with effect from the 1st day of October, 2009, namely
:—
“90.
Agreement with foreign countries or
specified territories.—(1) The Central Government may enter into an
agreement with the Government of any country outside India or specified
territory outside India,—
(a)
for the granting of relief in respect
of—
(i) income on which have been paid both
income-tax under this Act and income-tax in that country or specified territory,
as the case may be, or
(ii)
income-tax chargeable under this Act and under the corresponding law in
force in that country or specified territory, as the case may be, to promote
mutual economic relations, trade and investment, or
(b)
for the avoidance of double taxation of income under this Act and under
the corresponding law in force in that country or specified territory, as the
case may be, or
(c)
for exchange of information for the prevention of evasion or avoidance of
income-tax chargeable under this Act or under the corresponding law in force in
that country or specified territory, as the case may be, or investigation of
cases of such evasion or avoidance, or
(d)
for recovery of income-tax under this Act and
under the corresponding law in force in that country or specified territory, as
the case may be,
and
may, by notification in the Official Gazette, make such provisions as may be
necessary for implementing the agreement.
(2)
Where the Central Government has entered into an agreement with the Government
of any country outside India or specified territory outside India, as the case
may be, under sub-section (1) for granting relief of tax, or as the case may be,
avoidance of double taxation, then, in relation to the assessee to whom such agreement applies, the provisions of
this Act shall apply to the extent they are more beneficial to that assessee.
(3)
Any term used but not defined in this Act or in the agreement referred to in
sub-section (1) shall, unless the context otherwise requires, and is not
inconsistent with the provisions of this Act or the agreement, have the same
meaning as assigned to it in the notification issued by the Central Government
in the Official Gazette in this behalf.
Explanation
1.—For
the removal of doubts, it is hereby declared that the charge of tax in respect
of a foreign company at a rate higher than the rate at which a domestic company
is chargeable, shall not be regarded as less favourable charge or levy of tax in respect of such foreign
company.
Explanation
2.—For the purposes of this section, “specified territory” means
any area outside
Amendment
of section 92C
40.
In section 92C of the Income-tax Act, in sub-section (2), for the proviso, the
following provisos shall be substituted with effect from the 1st day of October,
2009, namely:—
“Provided that where more than one price is
determined by the most appropriate method, the arm’s length price shall be taken
to be the arithmetical mean of such prices:
Provided
further
that if the variation between the arm’s length price so determined and price at
which the international transaction has actually been undertaken does not exceed
five per cent of the latter, the price at which the international transaction
has actually been undertaken shall be deemed to be the arm’s length price.”.
Insertion
new section 92CB
41.
After section 92CA of the Income-tax Act, the following section shall be
inserted, namely:—
‘92CB.
Power of Board to make safe harbour rules.—(1) The determination of arm’s
length price under section 92C or section 92CA shall be subject to safe harbour rules.
(2)
The Board may, for the purposes of sub-section (1), make rules for safe harbour.
Explanation.—For
the purposes of this section, “safe harbour” means
circumstances in which the income-tax authorities shall accept the transfer
price declared by the assessee.’.
Amendment
of section 115BBC
42.
In section 115BBC of the Income-tax Act, in sub-section (1), with effect from
the 1st day of April, 2010,—
(a)
for clause (i), the following clause shall be
substituted, namely:—
“(i) the amount of income-tax calculated at
the rate of thirty per cent of the aggregate of anonymous donation, as exceeds
five per cent of the total income of the assessee or
an amount of rupees one lakh, whichever is higher;
and”;
(b)
for clause (ii), the following clause shall be
substituted, namely:—
“(ii)
the amount of income-tax with which the assessee would have been chargeable had his total income
been reduced by the amount of income subject to tax under clause (i).”.
Amendment
of section 115JA
43.
In section 115JA of the Income-tax Act, in sub-section (2), after the second
proviso, in the Explanation,
after clause (f), for the words,
brackets and letters “if any amount referred to in clauses (a) to (f) is debited to the profit and loss
account, and as reduced by,—”the following shall be substituted and shall be
deemed to have been substituted with effect from the 1st day of April, 1998,
namely:—
“(g)
the amount or amounts set aside as provision for
diminution in the value of any asset,
if
any amount referred to in clauses (a) to (g) is debited to the profit and loss
account, and as reduced by,—”.
Amendment
of section 115JAA
44.
In section 115JAA of the Income-tax Act, in sub-section (3A), for the words
“seventh assessment year”, the words “tenth assessment year” shall be
substituted with effect from the 1st day of April,
2010.
Amendment
of section 115JB
45.
In section 115JB of the Income-tax Act,—
(a)
in sub-section (1), with effect from the 1st day
of April, 2010,—
(i) for the words,
figures and letters “the 1st day of April, 2007”, the words, figures and letters
“the 1st day of April, 2010” shall be substituted;
(ii)
for the words “ten per cent”, at both the places
where they occur, the words “fifteen per cent” shall be
substituted;
(b)
in sub-section (2), after the second proviso, in Explanation 1, after clause (h), for the words, brackets and letters
“if any amount referred to in clauses (a) to (h) is debited to the profit and loss
account, and as reduced by”, the following shall be substituted and shall be
deemed to have been substituted with effect from the 1st day of April, 2001,
namely:—
“(i) the amount or amounts set aside as
provision for diminution in the value of any asset,
if
any amount referred to in clauses (a) to (i) is debited to the profit and
loss account, and as reduced by,—”.
Amendment
of section 115-O
46.
In section 115-O of the Income-tax Act, for sub-section (1A), the following
shall be substituted, namely:—
“(1A)
The amount referred to in sub-section (1) shall be
reduced by,—
(i) the amount of
dividend, if any, received by the domestic company during the financial year,
if—
(a)
such dividend is received from its
subsidiary;
(b)
the subsidiary has paid tax under this section
on such dividend; and
(c)
the domestic company is not a subsidiary of any
other company :
Provided that the same
amount of dividend shall not be taken into account for reduction more than
once;
(ii)
the amount of dividend, if any, paid to any
person for, or on behalf of, the New Pension System Trust referred to in clause
(44) of section
10.
Explanation - For the
purposes of this sub-section, a company shall be a subsidiary of another
company, if such other company, holds more than half in nominal value of the
equity share capital of the company.”
Amendment
of section 115WE
47.
In section 115WE of the Income-tax Act, in sub-section (1B), for the words,
figures and letters “after the 31st day of March, 2009”, the words, figures and
letters “after the 31st day of March, 2010” shall be
substituted.
Insertion
of new section 115WM
48.
After section 115WL of the Income-tax Act, the following section shall be
inserted, namely:—
“115WM.
Chapter XII-H not to apply after a certain
date.—Nothing contained in this Chapter shall apply, in respect of
any assessment for the assessment year commencing on the 1st day of April, 2010
or any subsequent assessment year.”.
Amendment
of section 131
49.
In section 131 of the Income-tax Act, in sub-section (1), for the words “and
Chief Commissioner or Commissioner”, the words “Chief Commissioner or
Commissioner and the Dispute Resolution Panel referred to in clause (a) of sub-section (15) of section 144C”
shall be substituted with effect from the 1st day of October,
2009.
Amendment
of section 132
50.
In section 132 of the Income-tax Act,—
(a)
in sub-section
(1),—
(i) for the words “Where the Director General
or Director or the Chief Commissioner or Commissioner or any such Joint Director
or Joint Commissioner as may be empowered in this behalf by the Board,”, the
words “Where the Director General or Director or the Chief Commissioner or
Commissioner or Additional Director or Additional Commissioner” shall be
substituted and shall be deemed to have been substituted with effect from the 1
st day of June, 1994;
(ii)
after the words “Where the Director General or
Director or the Chief Commissioner or Commissioner or Additional Director or
Additional Commissioner” as so substituted, the words “or Joint Director or
Joint Commissioner” shall be inserted and shall be deemed to have been inserted
with effect from the 1st day of October, 1998;
(iii)
in clause (A), after the words “may authorise any”, the words “Additional Director or Additional
Commissioner or” shall be inserted and shall be deemed to have been inserted
with effect from the 1st day of June, 1994;
(iv)
in clause (B), after the word “such”, the words
“Additional Director or Additional Commissioner or” shall be inserted and shall
be deemed to have been inserted with effect from the 1st day of June,
1994;
(v)
after the third proviso, the following proviso
shall be inserted, namely :—
“Provided also that no
authorisation shall be issued by the Additional
Director or Additional Commissioner or Joint Director or Joint Commissioner on
or after the 1st day of October, 2009 unless he has been empowered by the Board
to do so.”;
(b)
in sub-section
(1A),—
(i) for the words
“Commissioner or any such Joint Director or Joint Commissioner as may be
empowered in this behalf by the Board”, the words “Commissioner or Additional
Director or Additional Commissioner” shall be substituted and shall be deemed to
have been substituted with effect from the 1st day of June,
1994;
(ii)
after the words “Commissioner or Additional
Director or Additional Commissioner” as so substituted, the words “or Joint
Director or Joint Commissioner” shall be inserted and shall be deemed to have
been inserted with effect from the 1st day of October,
1998.
Amendment
of section 132A
51.
In section 132A of the Income-tax Act, in sub-section (1), after clause
(c), after the words “Chief
Commissioner or Commissioner may authorise any”, the
words “Additional Director, Additional Commissioner,” shall be inserted and
shall be deemed to have been inserted with effect from the 1st day of June,
1994.
Amendment
of section 139A
52.
In section 139A of the Income-tax Act, with effect from the 1st day of October,
2009,—
(a)
in sub-section (5B), in clause (iv), the word “quarterly” shall be
omitted;
(b)
in sub-section (5D), in clause (iii), the word “quarterly” shall be
omitted.
Amendment
of section 140
53.
In section 140 of the Income-tax Act, after clause (cc), the following clause shall be
inserted with effect from the 1st day of April, 2010,
namely:—
“(cd) in
the case of a limited liability partnership, by the designated partner thereof,
or where for any unavoidable reason such designated partner is not able to sign
and verify the return, or where there is no designated partner as such, by any
partner thereof.”.
Amendment
of section 143
54.
In section 143 of the Income-tax Act, in sub-section (1B), for the words,
figures and letters “after the 31st day of March, 2009”, the words, figures and
letters “after the 31st day of March, 2010” shall be to
substituted.
Insertion
of new section 144C
55.
After section 144B of the Income-tax Act, the following section shall be
inserted, namely:—
“144C.
Reference to dispute resolution
panel.—(1) The Assessing Officer shall, notwithstanding anything to
the contrary contained in this Act, in the first instance, forward a draft of
the proposed order of assessment (hereafter in this section referred to as the
draft order) to the eligible assessee if he proposes
to make, on or after the 1st day of October, 2009, any variation in the income
or loss returned which is prejudicial to the interest of such assessee.
(2)
On receipt of the draft order, the eligible assessee
shall, within thirty days of the receipt by him of the draft
order,—
(a)
file his acceptance of the variations to the
Assessing Officer; or
(b)
file his objections, if any, to such variation
with,—
(i) the Dispute
Resolution Panel; and
(ii)
the Assessing
Officer.
(3)
The Assessing Officer shall complete the assessment on the basis of the draft
order, if—
(a)
the assessee intimates
to the Assessing Officer the acceptance of the variation;
or
(b)
no objections are received within the period
specified in sub-section (2).
(4)
The Assessing Officer shall, notwithstanding anything contained in section 153,
pass the assessment order under sub-section (3) within one month from the end of
the month in which,—
(a)
the acceptance is received;
or
(b)
the period of filing of objections under
sub-section (2) expires.
(5)
The Dispute Resolution Panel shall, in a case where any objection is received
under sub-section (2), issue such directions, as it thinks fit, for the guidance
of the Assessing Officer to enable him to complete the
assessment.
(6)
The Dispute Resolution Panel shall issue the directions referred to in
sub-section (5), after considering the following,
namely:—
(a)
draft order;
(b)
objections filed by the assessee;
(c)
evidence furnished by the assessee;
(d)
report, if any, of the Assessing Officer,
Valuation Officer or Transfer Pricing Officer or any other
authority;
(e)
records relating to the draft
order;
(f)
evidence collected by, or caused to be collected
by, it; and
(g)
result of any enquiry made by, or caused to be
made by, it.
(7)
The Dispute Resolution Panel may, before issuing any directions referred to in
sub-section (5),—
(a) make such further enquiry, as it thinks
fit; or
(b)
cause any further enquiry to be made by any
income-tax authority and report the result of the same to
it.
(8)
The Dispute Resolution Panel may confirm, reduce or enhance the variations
proposed in the draft order so, however, that it shall not set aside any
proposed variation or issue any direction under sub-section (5) for further
enquiry and passing of the assessment order.
(9)
If the members of the Dispute Resolution Panel differ in opinion on any point,
the point shall be decided according to the opinion of the majority of the
members.
(10)
Every direction issued by the Dispute Resolution Panel shall be binding on the
Assessing Officer.
(11)
No direction under sub-section (5) shall be issued unless an opportunity of
being heard is given to the assessee and the Assessing
Officer on such directions which are prejudicial to the interest of the assessee or the interest of the revenue,
respectively.
(12)
No direction under sub-section (5) shall be issued after nine months from the
end of the month in which the draft order is forwarded to the eligible assessee.
(13)
Upon receipt of the directions issued under sub-section (5), the Assessing
Officer shall, in conformity with the directions, complete, notwithstanding
anything to the contrary contained in section 153, the assessment without
providing any further opportunity of being heard to the assessee, within one month from the end of the month in
which such direction is received.
(14)
The Board may make rules for the purposes of the efficient functioning of the
Dispute Resolution Panel and expeditious disposal of the objections filed under
sub-section (2) by the eligible assessee.
(15)
For the purposes of this section,—
(a)
“Dispute Resolution Panel” means a collegium
comprising of three Commissioners of Income-tax constituted by the Board for
this purpose;
(b)
“eligible assessee”
means,—
(i) any person in whose case the variation
referred to in sub-section (1) arises as a consequence of the order of the
Transfer Pricing Officer passed under sub-section (3) of section 92CA;
and
(ii)
any foreign
company.’.
Substitution
of new section for section 145A
56.
For section 145A of the Income-tax Act, the following section shall be
substituted with effect from the 1st day of April, 2010,
namely:—
“145A.
Method of accounting in certain
cases.—Notwithstanding anything to the
contrary contained in section 145,—
(a)
the valuation of purchase and sale of goods and
inventory for the purposes of determining the income chargeable under the head
“Profits and gains of business or profession” shall
be—
(i) in accordance
with the method of accounting regularly employed by the assessee; and
(ii)
further adjusted to include the amount of any tax, duty, cess or fee (by whatever name called) actually paid or
incurred by the assessee to bring the goods to the
place of its location and condition as on the date of
valuation.
Explanation.—For
the purposes of this section, any tax, duty, cess or
fee (by whatever name called) under any law for the time being in force, shall
include all such payment notwithstanding any right arising as a consequence to
such payment.
(b)
interest received by an assessee on compensation or on enhanced compensation, as the
case may be, shall be deemed to be the income of the year in which it is
received.’.
Amendment
of section 147
57.
In section 147 of the Income-tax Act, after Explanation 2, the following Explanation shall be inserted and shall be
deemed to have been inserted with effect from the 1st day of April, 1989,
namely:—
“Explanation 3.—For the purpose of
assessment or reassessment under this section, the Assessing Officer may assess
or reassess the income in respect of any issue, which has escaped assessment,
and such issue comes to his notice subsequently in the course of the proceedings
under this section, notwithstanding that the reasons for such issue have not
been included in the reasons recorded under sub-section (2) of section
148.”.
Insertion
of new section 167C
58.
After section 167B of the Income-tax Act, the following section shall be
inserted with effect from the 1st day of April, 2010,
namely:—
“167C.
Liability of partners of limited liability
partnership in liquidation.—Notwithstanding anything contained in the
Limited Liability Partnership Act, 2008 (6 of 2009), where any tax due from a
limited liability partnership in respect of any income of any previous year or
from any other person in respect of any income of any previous year during which
such other person was a limited liability partnership cannot be recovered, in
such case, every person who was a partner of the limited liability partnership
at any time during the relevant previous year, shall be jointly and severally
liable for the payment of such tax unless he proves that the non-recovery cannot
be attributed to any gross neglect, misfeasance or breach of duty on his part in
relation to the affairs of the limited liability
partnership.”.
Amendment
of section 194A
59.
In section 194A of the Income-tax Act, in sub-section (3), in clause (x), after the words “public sector
company” at both the places where they occur, the words “or scheduled bank”
shall be inserted.
Substitution
of new section for section 194C
60.
For section 194C of the Income-tax Act, the following section shall be
substituted with effect from the 1st day of October, 2009,
namely:—
“194C.
Payments to contractors.—(1) Any
person responsible for paying any sum to any resident (hereafter in this section
referred to as the contractor) for carrying out any work (including supply of
labour for carrying out any work) in pursuance of a
contract between the contractor and a specified person shall, at the time of
credit of such sum to the account of the contractor 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 an amount equal
to—
(i) one per cent where the payment is being
made or credit is being given to an individual or a Hindu undivided
family;
(ii)
two per cent where the payment is being made or credit is being given to
a person other than an individual or a Hindu undivided
family,
of
such sum as income-tax on income comprised therein.
(2)
Where any sum referred to in sub-section (1) is credited to any account, whether
called “Suspense account” or by any other name, in the books of account of the
person liable to pay such income, such crediting shall be deemed to be credit of
such income to the account of the payee and the provisions of this section shall
apply accordingly.
(3)
Where any sum is paid or credited for carrying out any work mentioned in
sub-clause (e) of clause (iv) of the
Explanation, tax shall be
deducted at source—
(i) on the invoice
value excluding the value of material, if such value is mentioned separately in
the invoice; or
(ii)
on the whole of the invoice value, if the value
of material is not mentioned separately in the
invoice.
(4)
No individual or Hindu undivided family shall be liable to deduct income-tax on
the sum credited or paid to the account of the contractor where such sum is
credited or paid exclusively for personal purposes of such individual or any
member of Hindu undivided family.
(5)
No deduction shall be made from the amount of any sum credited or paid or likely
to be credited or paid to the account of, or to, the 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) shall
be liable to deduct income-tax under this section.
(6)
No deduction shall be made from any sum credited or paid or likely to be
credited or paid during the previous year to the account of a contractor during
the course of business of plying, hiring or leasing goods carriages, on
furnishing of his Permanent Account Number, to the person paying or crediting
such sum.
(7)
The person responsible for paying or crediting any sum to the person referred to
in sub-section (6) shall furnish, to the prescribed income-tax authority or the
person authorised by it, such particulars, in such
form and within such time as may be prescribed.
Explanation.—For the purposes of this
section,—
(i) “specified
person” shall mean,—
(a)
the Central Government or any State Government;
or
(b)
any local authority;
or
(c)
any corporation established by or under a
Central, State or Provincial Act; or
(d)
any company; or
(e)
any co-operative society;
or
(f)
any authority, constituted in India by or under any law, engaged either
for the purpose of dealing with and satisfying the need for housing
accommodation or for the purpose of planning, development or improvement of
cities, towns and villages, or for both; or
(g)
any society registered under the Societies
Registration Act, 1860 (21 of 1860), or under any law corresponding to that Act
in force in any part of
(h)
any trust; or
(i) any university established or
incorporated by or under a Central, State or Provincial Act and an institution
declared to be a university under section 3 of the University Grants Commission
Act, 1956 (3 of 1956); or
(j)
any Government of a foreign State or a foreign
enterprise or any association or body established outside
(k)
any firm; or
(l)
any person, being an individual or a Hindu
undivided family or an association of persons or a body of individuals, if such
person,—
(A)
does not fall under any of the preceding sub-clauses;
and
(B)
is liable to audit of accounts under clause (a) or clause (b) of section 44AB during the financial
year immediately preceding the financial year in which such sum is credited or
paid to the account of the contractor;
(ii)
“goods carriage” shall have the meaning assigned
to it in the Explanation to
sub-section (7) of section 44AE;
(iii)
“contract” shall include
sub-contract;
(iv)
“work” shall
include—
(a)
advertising;
(b)
broadcasting and telecasting including
production of programmes for such broadcasting or
telecasting;
(c)
carriage of goods or passengers by any mode of
transport other than by railways;
(d)
catering;
(e)
manufacturing or supplying a product according
to the requirement or specification of a customer by using material purchased
from such customer,
but
does not include manufacturing or supplying a product according to the
requirement or specification of a customer by using material purchased from a
person, other than such customer.’.
Amendment
of section 194-I
61.
In section 194-I of the Income-tax Act, for clauses (a), (b) and (c), the following clauses shall be
substituted with effect from the 1st day of October, 2009,
namely:—
“(a)
two per cent for the use of any machinery or plant or equipment;
and
(b)
ten per cent for the use of any land or building (including factory
building) or land appurtenant to a building (including factory building) or
furniture or fittings:”.
Amendment
of section 197A
62.
In section 197A of the Income-tax Act, after sub-section (1D), the following
sub-section shall be inserted, namely:—
“(1E)
Notwithstanding anything contained in this Chapter, no deduction of tax shall be
made from any payment to any person for, or on behalf of, the New Pension System
Trust referred to in clause (44)
of section 10.”.
Amendment
of section 200
63.
In section 200 of the Income-tax Act, in sub-section (3), for the words, figures
and letters “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”, the words “prepare such statements for such period as may be prescribed”
shall be substituted with effect from the 1st day of October,
2009.
Insertion
of new section 200A
64.
After section 200 of the Income-tax Act, the following section shall be inserted
with effect from the 1st day of April, 2010,
namely:—
“200A.
Processing of statements of tax deducted at
source.—(1) Where a statement of tax deduction at source has been
made by a person deducting any sum (hereafter referred to in this section as
deductor) under section 200, such statement shall be
processed in the following manner, namely:—
(a)
the sums deductible under this Chapter shall be
computed after making the following adjustments,
namely:—
(i) any arithmetical
error in the statement; or
(ii)
an incorrect claim, apparent from any
information in the statement;
(b)
the interest, if any, shall be computed on the
basis of the sums deductible as computed in the
statement;
(c)
the sum payable by, on the amount of refund due to, the deductor shall be determined after adjustment of amount
computed under clause (b) against
any amount paid under section 200 and section 201, and any amount paid otherwise
by way of tax or interest;
(d)
an intimation shall be prepared or generated and sent to the deductor specifying the sum determined to be payable by, or
the amount of refund due to, him under clause (c); and
(e)
the amount of refund due to the deductor in pursuance of the determination under clause
(c) shall be granted to the deductor :
Provided
that no intimation under this sub-section shall be sent after the expiry of one
year from the end of the financial year in which the statement is
filed.
Explanation.—For the purposes of this sub-section, “an incorrect claim
apparent from any information in the statement” shall mean a claim, on the basis
of an entry, in the statement—
(i) of an item,
which is inconsistent with another entry of the same or some other item in such
statement;
(ii)
in respect of rate of deduction of tax at
source, where such rate is not in accordance with the provisions of this
Act;
(2)
For the purposes of processing of statements under sub-section (1), the Board
may make a scheme for centralised processing of
statements of tax deducted at source to expeditiously determine the tax payable
by, or the refund due to, the deductor as required
under the said sub-section.
Amendment
of section 201
65.
In section 201 of the Income-tax Act,—
(a)
in sub-section (1A), for the words “the
quarterly statement for each quarter”, the words “the statement” shall be
substituted with effect from the 1st day of October,
2009;
(b)
after sub-section (2), the following
sub-sections shall be inserted with effect from the 1st day of April, 2010,
namely:—
“(3)
No order shall be made under sub-section (1) deeming a person to be an assessee in default for failure to deduct the whole or any
part of the tax from a person resident in India, at any time after the expiry
of—
(i) two years from the end of the financial
year in which the statement is filed in a case where the statement referred to
in section 200 has been filed;
(ii)
four years from the end of the financial year in which payment is made or
credit is given, in any other case
:
Provided that such order
for a financial year commencing on or before the 1st day of April, 2007 may be
passed at any time on or before the 31st day of March,
2011.
(4)
The provisions of sub-clause (ii)
of sub-section (3) of section 153 and of Explanation 1 to section 153 shall, so far
as may, apply to the time limit prescribed in sub-section (3).”.
Amendment
of section 203A
66.
In section 203A of the Income-tax Act, in sub-section (2), in clause (ba), the word
“quarterly” shall be omitted with effect from the 1st day of October,
2009.
Amendment
of section 206A
67.
In section 206A of the Income-tax Act, with effect from the 1st day of October,
2009—
(a)
in sub-section (1), for the words, figures and letters “quarterly returns
for the period ending on the 30th June, the 30th September, the 31st December
and the 31st March in each financial year”, the words “such statements for such
period as may be prescribed” shall be substituted;
(b)
in sub-section (2), for the words “quarterly
returns”, the words “such statements” shall be
substituted.
Insertion
of new section 206AA
68.
After section 206A of the Income-tax Act, the following section shall be
inserted with effect from the 1st day of April, 2010,
namely:—
“206AA.
Requirement to furnish Permanent Account
Number.—(1) Notwithstanding anything contained in any other
provisions of this Act, any person entitled to receive any sum or income or
amount, on which tax is deductible under Chapter XVIIB (hereafter referred to as
deductee) shall furnish his Permanent Account Number
to the person responsible for deducting such tax (hereafter referred to as deductor), failing which tax shall be deducted at the higher
of the following rates, namely:—
(i) at the rate
specified in the relevant provision of this Act; or
(ii)
at the rate or rates in force;
or
(iii)
at the rate of twenty per
cent.
(2)
No declaration under sub-section (1) or sub-section (1A) or sub-section (1C) of
section 197A shall be valid unless the person furnishes his Permanent Account
Number in such declaration.
(3)
In case any declaration becomes invalid under sub-section (2), the deductor shall deduct the tax at source in accordance with
the provisions of sub-section (1).
(4)
No certificate under section 197 shall be granted unless the application made
under that section contains the Permanent Account Number of the
applicant.
(5)
The deductee shall furnish his Permanent Account
Number to the deductor and both shall indicate the
same in all the correspondence, bills, vouchers and other documents which are
sent to each other.
(6)
Where the Permanent Account Number provided to the deductor is invalid or does not belong to the deductee, it shall be deemed that the deductee has not furnished his Permanent Account Number to
the deductor and the provisions of sub-section (1)
shall apply accordingly.”.
Amendment
of section 206C
69.
In section 206C of the Income-tax Act, in sub-section (3), in the proviso, for
the words, figures and letters “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”, the words “prepare such statements for such
period as may be prescribed” shall be substituted with effect from the 1st day
of October, 2009.
Amendment
of section 208
70.
In section 208 of the Income-tax Act, for the words “five thousand rupees”, the
words “ten thousand rupees” shall be substituted.
Amendment
of section 246A
71.
In section 246A of the Income-tax Act, in sub-section (1), in clause (a), for the words, brackets and figures
“under sub-section (3) of section 143”, the words, brackets and figures “under
sub-section (3) of section 143 except an order passed in pursuance of directions
of Dispute Resolution Panel” shall be substituted with effect from the 1st day
of October, 2009.
Amendment
of section 253
72.
In section 253 of the Income-tax Act, in sub-section (1), after clause (c), the following clause shall be inserted
with effect from the 1st day of October, 2009,
namely:—
“(d)
an order passed by an Assessing Officer under
sub-section (3) of section 143 in pursuance of the directions of the Dispute
Resolution Panel or an order passed under section 154 in respect of such
order.”.
Amendment
of section 271
73.
In section 271 of the Income-tax Act, in sub-section (1), for Explanation 5A, the following Explanation shall be substituted and shall
be deemed to have been substituted with effect from the 1st day of June, 2007,
namely:—
“Explanation 5A.— Where, in the course of a
search initiated under section 132 on or after the 1st day of June, 2007, the
assessee is found to be the owner
of—
(i) any money, bullion, jewellery or other valuable article or thing (hereafter in
this Explanation referred to as
assets) and the assessee claims that such assets have
been acquired by him by utilising (wholly or in part)
his income for any previous year; or
(ii)
any income based on any entry in any books of account or other documents
or transactions and he claims that such entry in the books of account or other
documents or transactions represents his income (wholly or in part) for any
previous year, which has ended before the date of search
and,—
(a)
where the return of income for such previous
year has been furnished before the said date but such income has not been
declared therein; or
(b)
the due date for filing the return of income for
such previous year has expired but the assessee has
not filed the return,
then,
notwithstanding that such income is declared by him in any return of income
furnished on or after the date of search, he shall, for the purposes of
imposition of a penalty under clause (c) of sub-section (1) of this section, be
deemed to have concealed the particulars of his income or furnished inaccurate
particulars of such income.”.
Amendment
of section 272A
74.
In section 272A of the Income-tax Act, in sub-section (2), in clause (l), for the words “quarterly return”, the
word “statements” shall be substituted with effect from the 1st day of October,
2009.
Amendment
of section 281B
75.
In section 281B of the Income-tax Act, in sub-section (2), 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, 1988,
namely:—
“Provided also that the period during which
the proceedings for assessment or reassessment are stayed by an order or
injunction of any court shall be excluded from the period specified in the first
proviso.”.
Substitution
of new section for section 282
76.
For section 282 of the Income-tax Act, the following section shall be
substituted with effect from the 1st day of October, 2009,
namely:—
‘282.
Service of notice generally.—(1)
The service of a notice or summon or requisition or
order or any other communication under this Act (hereafter in this section
referred to as “communication”) may be made by delivering or transmitting a copy
thereof, to the person therein named,—
(a)
by post or by such courier services as may be
approved by the Board; or
(b)
in such manner as provided under the Code of
Civil Procedure, 1908 (5 of 1908) for the purposes of service of summons;
or
(c)
in the form of any electronic record as provided
in Chapter IV of the Information Technology Act, 2000 (21 of
2000);
(d) by any other means of transmission of
documents as provided by rules made by the Board in this
behalf.
(2)
The Board may make rules providing for the addresses (including the address for
electronic mail or electronic mail message) to which the communication referred
to in sub-section (1) may be delivered or transmitted to the person therein
named.
Explanation.—For
the purposes of this section, the expressions “electronic mail” and “electronic
mail message” shall have the meanings as assigned to them in Explanation to section 66A of the
Information Technology Act, 2000 (21 of 2000).’.
Insertion
of new section 282B
77.
After section 282A of Income-tax Act, the following section shall be inserted
with effect from the 1st day of October, 2010,
namely:—
“282B.
Allotment of Document Identification
Number.—(1) Every income-tax authority shall allot a computer
generated Document Identification Number in respect of every notice, order,
letter or any correspondence issued by him to any other income-tax authority or
assessee or any other person and such number shall be
quoted thereon.
(2)
Where the notice, order, letter or any correspondence, issued by any income-tax
authority, does not bear a Document Identification Number referred to in
sub-section (1), such notice, order, letter or any correspondence shall be
treated as invalid and shall be deemed never to have been
issued.
(3)
Every document, letter or any correspondence, received by an income-tax
authority or on behalf of such authority, shall be accepted only after allotting
and quoting of a computer generated Document Identification
Number.
(4)
Where the document, letter or any correspondence received by any income-tax
authority or on behalf of such authority does not bear the Document
Identification Number referred to in sub-section (3), such document, letter or
any correspondence shall be treated as invalid and shall be deemed never to have
been received.”.
Insertion
of new section 293C
78.
After section 293B of the Income-tax Act, the following section shall be
inserted with effect from the 1st day of October, 2009, namely
:—
“293C.
Power to withdraw approval.—Where
an income-tax authority, who has been conferred upon the power under any
provision of this Act to grant any approval to any assessee, such authority may, notwithstanding that a
provision to withdraw such approval has not been specifically provided for in
such provision, withdraw such approval at any time
:
Provided
that the income-tax authority shall, after giving a reasonable opportunity of
showing cause against the proposed withdrawal to the assessee concerned, at anytime, withdraw the approval after
recording the reasons for doing so.”.
Amendment
of First Schedule
79.
In the First Schedule to the Income-tax Act, in rule
5,—
(i) for the portion beginning with the words
“balance of the profits”, and ending with the words “Controller of Insurance,”,
the following shall be substituted with effect from the 1st day of April, 2011,
namely:—
“profit
before tax and appropriations as disclosed in the profit and loss account
prepared in accordance with the provisions of the Insurance Act, 1938 (4 of
1938) or rules made thereunder or the provision of the
Insurance Regulatory and Development Authority Act, 1999 (41 of 1999) or
regulations made thereunder,”;
(ii)
after clause (a), the following clause shall be inserted
with effect from the 1st day of April, 2011,
namely:—
“(b)
(i) deduction in respect of any amount either
written off or provided in the accounts to meet diminution in or loss on realisation of investments in accordance with the
regulations made by Insurance Regulatory and Development
Authority;
(ii)
increase in respect of any amount taken credit
for in the accounts on account of appreciation of or gains on realisation of investments in accordance with the
regulations made by Insurance Regulatory and Development
Authority.”.
Amendment
of Fourth Schedule
80.
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 figures, letters and words “31st day of
March, 2009,”, the figures, letters and words “31st day
of December, 2010,” shall be substituted.
Amendment
of Thirteenth Schedule
81.
In the Thirteenth Schedule to the Income-tax Act, under Part B, for S.No. 19 and the entries relating thereto,
the following S.No. and entries shall be substituted with effect from the 1st day
of April, 2010, namely:—
|
S.No. |
Activity
or article or thing |
Excise
classification |
Sub-class
under National Industrial Classification (NIC),
1998 |
|
“19. |
Manufacture
of pulp-wood pulp, mechanical or chemical (including dissolving
pulp) |
4701.00 |
|
|
|
Newsprint
in rolls or sheets |
4801.00 |
|
|
|
Writing
or printing paper for printing of educational
textbooks |
4802.10 |
|
|
|
Paper
or paper board, in the manu- facture of
which— |
4802.20 |
|
|
|
(a) the principal process of lifting
the pulp is done by hand; and |
|
|
|
|
(b) if power driven sheet forming
equipment is used, the Cylinder Mould Vat does not exceeds 40
inches |
|
|
|
|
Maplitho
paper supplied to a Braille press against an indent placed by the National
Institute for Visually Handicapped, Dehradun |
4802.30 |
|
|
|
Others |
4802.90 |
|
|
|
Toilet
or facial tissue stock, towel or napkin stock and similar paper of a kind
used for household or sanitary purposes, cellulose wadding and webs of
cellulose fibres, whether or not creped,
crinkled embossed, perforated, surfact-coloured,
surface decorated or printed, in rolls of a width exceeding 36 cms. or in rectangular
(including square) sheets with at least one side exceeding 36 cms. in unfolded
state. |
4803.00 |
|
|
|
Kraft
paper supplied to a Braille press against an indent placed by the National
Institute for Visually Handicapped, Dehradun |
4804.10 |
|
|
|
Kraft
paper and paperboard used in the manufacture of cartons for packing of
horticultural produce |
4804.20 |
|
|
|
Others |
4804.90 |
|
|
|
Other
uncoated paper and paperboard, in roll or sheets, not further worked or
processed than as specified in Note 2 to this
Chapter. |
4805.00 |
|
|
|
Grease-proof
paper |
4806.10 |
|
|
|
Glassine
and other glazed transparent or translucent
paper |
4806.20 |
|
|
|
Others |
4806.90 |
|
|
|
Straw
Board, in the manufacture of which sun-drying process has been
employed. |
4807.91 |
|
|
|
Straw
paper and other straw board, whether or not covered with paper other than
straw paper. |
4807.92 |
|
|
|
Other |
4807.99 |
|
|
|
Carbon
or similar copying papers |
4809.10 |
|
|
|
Self-copy
paper |
4809.20 |
|
|
|
Others |
4809.90 |
|
|
|
Paper
and paperboard of a kind used for writing, printing or other graphic
purposes. |
4810.10 |
|
|
|
Kraft
paper and paperboard other than that of a kind used for writing, printing
or other graphic purposes. |
4810.20 |
|
|
|
Other
paper and paperboard |
4810.90 |
|
|
|
Tarred,
bituminized or asphalted paper and
paperboard. |
4811.10 |
|
|
|
Gummed
or adhesive paper and paper- board |
4811.20 |
|
|
|
Paper
and paperboard coated, impregnated or covered with plastic (excluding
adhesives). |
|
|
|
|
Products
consisting of sheets of paper or paperboard, impregnated, coated or
covered with plastics (including thermoset
resins or mixtures thereof or chemical formulations containing melamine,
phenol, urea formaldehyde with or without curing agents or catalysts),
compressed together in one or more operations; Products known commercially
as decorative laminates. |
4811.31 |
|
|
|
Others |
4811.39 |
|
|
|
Paper
and paperboard, coated, impregnated or covered with wax, paraffin wax,
stearin, oil or
glycerol. |
4811.40 |
|
|
|
Other |
4811.90 |
|
|
|
Cigarette
paper, whether or not cut to size or in the form of booklets or
tubes. |
4813.00.”. |
|
Wealth-tax
Amendment
of section 3
82.
In section 3 of the Wealth-tax Act, 1957 (27 of 1957) (hereinafter referred to
as the Wealth-tax Act), after sub-section (2), the following proviso shall be
inserted with effect from the 1st day of April, 2010,
namely:—
‘Provided that in the case of every
assessment year commencing on and from the 1st day of April, 2010, the
provisions of this section shall have effect as if for the words “fifteen lakh rupees”, the words “thirty lakh rupees” had been
substituted.’.
Amendment
of section 44A
83.
In section 44A of the Wealth-tax Act, in the Explanation, for the words “any country”,
the words “any country outside
|
** |
** |
** |
Chapter
VI
Miscellaneous
Amendment
of section 13 of Act 58 of 2002
113.
In the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, in
section 13, in sub-section (1), for the words, figures and letters “the 31st day
of March, 2009”, the words, figures and letters “the 31st day of March, 2014”
shall be substituted.
Amendment
of Chapter VII of Finance (No. 2) Act, 2004
114.
In Chapter VII of the Finance (No. 2) Act, 2004 (23 of 2004), after section 113,
the following section shall be inserted with effect from the 1st day of October,
2009, namely:—
“113A.
Chapter VII not to apply in certain
cases.—Notwithstanding anything contained in this Chapter, the
provisions of this Chapter shall not apply to taxable securities transactions
entered into by any person for, or on behalf of, the New Pension System Trust
referred to in clause (44) of
section 10 of the Income-tax Act, 1961 (43 of
1961).”.
Amendment
of Act 18 of 2008
115.
After section 121 of the Finance Act, 2008, the following section shall be
inserted, namely:—
“121A.
Provisions of Chapter VII not to apply to
taxable commodities transaction.—Nothing contained in this Chapter
shall apply to, or in relation to, the taxable commodities transaction entered
on or after the 1st day of April, 2009.”.
Repeal
116.
The Finance Act, 2009 (26 of 2009) is hereby repealed and shall be deemed never
to have been enacted.
THE
FIRST SCHEDULE
(See section
2)
PART
I
INCOME-TAX
Paragraph
A
(I) In the case of every individual other
than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided
family or association of persons or body of individuals, whether incorporated or
not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,
not being a case to which any other Paragraph of this Part
applies,—
Rates
of income-tax
|
(1) |
where
the total income does not exceed Rs.
1,50,000 |
|
Nil; |
|
(2) |
where
the total income exceeds Rs. 1,50,000 but does
not exceed Rs.
3,00,000 |
|
10
per cent of the amount by which the total income exceeds Rs. 1,50,000; |
|
(3) |
where
the total income exceeds Rs. 3,00,000 but does
not exceed Rs.
5,00,000 |
|
Rs.
15,000 plus 20 per cent of
the amount by which the total income exceeds Rs.
3,00,000; |
|
(4) |
where
the total income exceeds Rs.
5,00,000 |
|
Rs.
55,000 plus 30 per cent of
the amount by which the total income exceeds Rs.
5,00,000. |
(II) In the case of every individual, being
a woman resident in
Rates
of income-tax
|
(1) |
where
the total income does not exceed Rs.
1,80,000 |
|
Nil; |
|
(2) |
where
the total income exceeds Rs. 1,80,000 but does
not exceed Rs.
3,00,000 |
|
10
per cent of the amount by which the total income exceeds Rs. 1,80,000; |
|
(3) |
where
the total income exceeds Rs. 3,00,000 but does
not exceed Rs.
5,00,000 |
|
Rs.
12,000 plus 20 per cent of
the amount by which the total income exceeds Rs.
3,00,000; |
|
(4) |
where
the total income exceeds Rs.
5,00,000 |
|
Rs.
52,000 plus 30 per cent of
the amount by which the total income exceeds Rs.
5,00,000. |
(III) In the case of every individual,
being a resident in India, who is of the age of sixty-five years or more at any
time during the previous year,—
Rates
of income-tax
|
(1) |
where
the total income does not exceed Rs.
2,25,000 |
|
Nil; |
|
(2) |
where
the total income exceeds Rs. 2,25,000 but does
not exceed Rs.
3,00,000 |
|
10
per cent of the amount by which the total income exceeds Rs. 2,25,000; |
|
(3) |
where
the total income exceeds Rs. 3,00,000 but does
not exceed Rs.
5,00,000 |
|
Rs.
7,500 plus 20 per cent of
the amount by which the total income exceeds Rs.
3,00,000; |
|
(4) |
where
the total income exceeds Rs. 5,00,000
|
|
Rs.
47,500 plus 30 per cent of
the amount by which the total income exceeds Rs.
5,00,000. |
Surcharge
on income-tax
The
amount of income-tax computed in accordance with the preceding provisions of
this Paragraph, or in section 111A or section 112,
shall,—
(i) in the case of every individual or Hindu
undivided family or association of persons or body of individuals having a total
income exceeding ten lakh rupees, be increased by a
surcharge for purposes of the Union calculated at the rate of ten per cent of
such income-tax;
(ii)
in the case of every person, other than those
mentioned in item (i), be increased by a surcharge,
for purposes of the
Provided
that in case of persons mentioned in item (i) above having a total income
exceeding ten lakh rupees, the total amount payable as
income-tax and surcharge on such income shall not exceed the total amount
payable as income-tax on a total income of ten lakh
rupees by more than the amount of income that exceeds ten lakh rupees.
Paragraph
B
In
the case of every co-operative society,—
Rates
of income-tax
|
(1) |
where
the total income does not exceed Rs.
10,000 |
|
10
per cent of the total income; |
|
(2) |
where
the total income exceeds Rs. 10,000 but does not
exceed Rs.
20,000 |
|
Rs.
1,000 plus 20 per cent of
the amount by which the total income exceeds Rs.
10,000; |
|
(3) |
where
the total income exceeds Rs.
20,000 |
|
Rs.
3,000 plus 30 per cent of
the amount by which the total income exceeds Rs.
20,000. |
Paragraph
C
In
the case of every firm,—
Rate
of income-tax
|
On
the whole of the total income |
30
per cent |
Surcharge
on income-tax
The
amount of income-tax computed at the rate hereinbefore specified, or in section
111A or section 112, shall, in the case of every firm having a total income
exceeding one crore rupees, be increased by a
surcharge for purposes of the Union calculated at the rate of ten per cent of
such income-tax:
Provided
that in the case of every firm having a total income exceeding one crore rupees, the total amount payable as income-tax and
surcharge on such income shall not exceed the total amount payable as income-tax
on a total income of one crore rupees by more than the
amount of income that exceeds one crore
rupees.
Paragraph
D
In
the case of every local authority,—
Rates
of income-tax
|
On
the whole of the total income |
30
per cent |
Paragraph
E
In
the case of a company,—
Rates
of income-tax
|
|
30
per cent of the total income; |
II.
In the case of a company other than a domestic
company—
|
(i) on so much of the total income as
consists of,— (a) royalties received from Government
or an Indian concern in pursuance of an agreement made by it with the
Government or the Indian concern after the 31st day of March, 1961 but
before the 1st day of April, 1976; or (b) fees for rendering technical
services received from Government or an Indian concern in pursuance of an
agreement made by it with the Government or the Indian concern after the
29th day of February, 1964 but before the 1st day of April,
1976, |
|
|
and
where such agreement has, in either case, been approved by the Central
Government |
50
per cent; |
|
(ii) on the balance, if any, of the
total income |
40
per cent. |
Surcharge
on income-tax
The
amount of income-tax computed in accordance with the preceding provisions of
this Paragraph, or in section 111A or section 112, shall, in the case of every
company, be increased by a surcharge for purposes of the Union
calculated,—
(i) in the case of
every domestic company having a total income exceeding one crore rupees, at the rate of ten per cent of such
income-tax;
(ii)
in the case of every company other than a
domestic company having a total income exceeding one crore rupees, at the rate of two and one-half per
cent:
Provided
that in the case of every company having a total income exceeding one crore rupees, the total amount payable as income-tax and
surcharge on such income shall not exceed the total amount payable as income-tax
on a total income of one crore rupees by more than the
amount of income that exceeds one crore
rupees.
PART
II
Rates
for deduction of tax at source in certain cases
In
every case in which under the provisions of sections 193, 194, 194A, 194B,
194BB, 194D and 195 of the Income-tax Act, tax is to be deducted at the rates in
force, deduction shall be made from the income subject to the deduction at the
following rates:—
|
1.
In the case of a person other than a
company— |
|
Rate
of income-tax |
|
(a) where the person is resident in
|
|
|
|
(i) on income by way of interest other
than “Interest on securities” |
|
10
per cent; |
|
(ii) on income by way of winnings from
lotteries, crossword puzzles, card games and other games of any
sort |
|
30
per cent; |
|
(iii) on income by way of winnings from
horse races |
|
30
per cent; |
|
(iv) on income by way of insurance
commission |
|
10
per cent; |
|
(v) on income by way of interest
payable on— |
|
10
per cent; |
|
(A) any debentures or securities for
money issued by or on behalf of any local authority or a corporation
established by a Central, State or Provincial
Act; |
|
|
|
(B) any debentures issued by a company
where such debentures are listed on a recognised
stock exchange in India in accordance with the Securities Contracts
(Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; |
|
|
|
(C) any security of the Central or
State Government |
|
|
|
(vi) on any other
income |
|
10
per cent; |
|
(b) where the person is not resident in
|
|
|
|
(i) in the case of a non-resident
Indian— |
|
|
|
(A) on any investment
income |
|
20
per cent; |
|
(B) on income by way of long-term
capital gains referred to in section 115E |
|
10
per cent; |
|
(C) on income by way of short-term
capital gains referred to in section 111A |
|
15
per cent; |
|
(D) on other income by way of long-term
capital gains [not being long-term capital gains referred to in clauses
(33), (36) and (38) of section
10] |
|
20
per cent; |
|
(E) on income by way of interest
payable by Government or an Indian concern on moneys borrowed or debt
incurred by Government or the Indian concern in foreign
currency |
|
20
per cent; |
|
(F) on income by way of royalty payable
by Government or an Indian concern in pursuance of an agreement made by it
with the Government or the Indian concern where such royalty is in
consideration for the transfer of all or any rights (including the
granting of a licence) in respect of copyright
in any book on a subject referred to in the first proviso to sub-section
(1A) of section 115A of the Income-tax Act, to the Indian concern, or in
respect of any computer software referred to in the second proviso to
sub-section (1A) of section 115A of the Income-tax Act, to a person
resident in India— |
|
|
|
(I) where the agreement is made on or
after the 1st day of June, 1997 but before the 1st day of June,
2005 |
|
20
per cent; |
|
(II) where the agreement is made on or
after the 1st day of June, 2005 |
|
10
per cent; |
|
(G) on income by way of royalty [not
being royalty of the nature referred to in sub-Item (b)(i)(F)] payable by Government or an
Indian concern in pursuance of an agreement made by it with the Government
or the Indian concern and where such agreement is with an Indian concern,
the agreement is approved by the Central Government or where it relates to
a matter included in the industrial policy, for the time being in force,
of the Government of India, the agreement is in accordance with that
policy— |
|
|
|
(I) where the agreement is made on or
after the 1st day of June, 1997 but before the 1st day of June,
2005 |
|
20
per cent; |
|
(II) where the agreement is made on or
after the 1st day of June, 2005 |
|
10
per cent; |
|
(H) on income by way of fees for
technical services payable by Government or an Indian concern in pursuance
of an agreement made by it with the Government or the Indian concern and
where such agreement is with an Indian concern, the agreement is approved
by the Central Government or where it relates to a matter included in the
industrial policy, for the time being in force, of the Government of
India, the agreement is in accordance with that
policy— |
|
|
|
(I) where the agreement is made on or
after the 1st day of June, 1997 but before the 1st day of June,
2005 |
|
20
per cent; |
|
(II) where the agreement is made on or
after the 1st day of June, 2005 |
|
10
per cent; |
|
(I) on income by way of winnings from
lotteries, crossword puzzles, card games and other games of any
sort |
|
30
per cent; |
|
(J) on income by way of winnings from
horse races |
|
30
per cent; |
|
(K) on the whole of the other
income
|
|
30
per cent; |
|
(ii) in the case of any other
person— |
|
|
|
(A) on income by way of interest
payable by Government or an Indian concern on moneys borrowed or debt
incurred by Government or the Indian concern in foreign currency
|
|
20
per cent; |
|
(B) on income by way of royalty payable
by Government or an Indian concern in pursuance of an agreement made by it
with the Government or the Indian concern where such royalty is in
consideration for the transfer of all or any rights (including the
granting of a licence) in respect of copyright
in any book on a subject referred to in the first proviso to sub-section
(1A) of section 115A of the Income-tax Act, to the Indian concern, or in
respect of any computer software referred to in the second proviso to
sub-section (1A) of section 115A of the Income-tax Act, to a person
resident in India— |
|
|
|
(I) where the agreement is made on or
after the 1st day of June, 1997 but before the 1st day of June,
2005 |
|
20
per cent.; |
|
(II) where the agreement is made on or
after the 1st day of June, 2005 |
|
10
per cent.; |
|
(C) on income by way of royalty [not
being royalty of the nature referred to in sub-Item (b)(ii)(B)] payable by Government or an
Indian concern in pursuance of an agreement made by it with the Government
or the Indian concern and where such agreement is with an Indian concern,
the agreement is approved by the Central Government or where it relates to
a matter included in the industrial policy, for the time being in force,
of the Government of India, the agreement is in accordance with that
policy— |
|
|
|
(I) where the agreement is made on or
after the 1st day of June, 1997 but before the 1st day of June,
2005 |
|
20
per cent.; |
|
(II) where the agreement is made on or
after the 1st day of June, 2005 |
|
10
per cent.; |
|
(D) on income by way of fees for
technical services payable by Government or an Indian concern in pursuance
of an agreement made by it with the Government or the Indian concern and
where such agreement is with an Indian concern, the agreement is approved
by the Central Government or where it relates to a matter included in the
industrial policy, for the time being in force, of the Government of
India, the agreement is in accordance with that
policy— |
|
|
|
(I) where the agreement is made on or
after the 1st day of June, 1997 but before the 1st day of June,
2005 |
|
20
per cent.; |
|
(II) where the agreement is made on or
after the 1st day of June, 2005 |
|
10
per cent.; |
|
(E) on income by way of winnings from
lotteries, crossword puzzles, card games and other games of any
sort |
|
30
per cent.; |
|
(F) on income by way of winnings from
horse races |
|
30
per cent.; |
|
(G) on income by way of short-term
capital gains referred to in section 111A |
|
15
per cent.; |
|
(H) on income by way of long-term
capital gains [not being long-term capital gains referred to in clauses
(33), (36) and (38) of section
10] |
|
20
per cent.; |
|
(I) on the whole of the other income
|
|
30
per cent. |
|
2.
In the case of a company— |
|
|
|
(a) where the company is a domestic
company— |
|
|
|
(i) on income by way of interest other
than “Interest on securities” |
|
10
per cent.; |
|
(ii) on income by way of winnings from
lotteries, crossword puzzles, card games and other games of any
sort |
|
30
per cent.; |
|
(iii) on income by way of winnings from
horse races |
|
30
per cent.; |
|
(iv) on any other income
|
|
10
per cent.; |
|
(b) where the company is not a domestic
company— |
|
|
|
(i) on income by way of winnings from
lotteries, crossword puzzles, card games and other games of any
sort |
|
30
per cent.; |
|
(ii) on income by way of winnings from
horse races |
|
30
per cent.; |
|
(iii) on income by way of interest
payable by |
|
20
per cent.; |
|
Government or an Indian concern on moneys
borrowed or debt incurred by Government or the Indian concern in foreign
currency |
|
|
|
(iv) on income by way of royalty payable
by Government or an Indian concern in pursuance of an agreement made by it
with the Government or the Indian concern after the 31st day of March,
1976 where such royalty is in consideration for the transfer of all or any
rights (including the granting of a licence) in
respect of copyright in any book on a subject referred to in the first
proviso to sub-section (1A) of section 115A of the Income-tax Act, to the
Indian concern, or in respect of any computer software referred to in the
second proviso to sub-section (1A) of section 115A of the Income-tax Act,
to a person resident in India— |
|
|
|
(A) where the agreement is made before
the 1st day of June, 1997 |
|
30
per cent.; |
|
(B) where the agreement is made on or
after the 1st day of June, 1997 but before the 1st day of June,
2005 |
|
20
per cent.; |
|
(C) where the agreement is made on or
after the 1st day of June, 2005 |
|
10
per cent.; |
|
(v) on income by way of royalty [not
being royalty of the nature referred to in sub-item (b)(iv)] payable by Government or an
Indian concern in pursuance of an agreement made by it with the Government
or the Indian concern and where such agreement is with an Indian concern,
the agreement is approved by the Central Government or where it relates to
a matter included in the industrial policy, for the time being in force,
of the Government of India, the agreement is in accordance with that
policy— |
|
|
|
(A) where the agreement is made after
the 31st day of March, 1961 but before the 1st day of April,
1976 |
|
50
per cent.; |
|
(B) where the agreement is made after
the 31st day of March, 1976 but before the 1st day of June,
1997 |
|
30
per cent.; |
|
(C) where the agreement is made on or
after the 1st day of June, 1997 but before the 1st day of June,
2005 |
|
20
per cent.; |
|
(D) where the agreement is made on or
after the 1st day of June, 2005 |
|
10
per cent.; |
|
(vi) on income by way of fees for
technical services payable by Government or an Indian concern in pursuance
of an agreement made by it with the Government or the Indian concern and
where such agreement is with an Indian concern, the agreement is approved
by the Central Government or where it relates to a matter included in the
industrial policy, for the time being in force, of the Government of
India, the agreement is in accordance with that
policy— |
|
|
|
(A) where the agreement is made after
the 29th day of February, 1964 but before the 1st day of April,
1976 |
|
50
per cent.; |
|
(B) where the agreement is made after
the 31st day of March, 1976 but before the 1st day of June,
1997 |
|
30
per cent.; |
|
(C) where the agreement is made on or
after the 1st day of June, 1997 but before the 1st day of June,
2005 |
|
20
per cent.; |
|
(D) where the agreement is made on or
after the 1st day of June, 2005 |
|
10
per cent.; |
|
(vii) on income by way of short-term
capital gains referred to in section 111A |
|
15
per cent.; |
|
(viii)
on income by way of long-term capital gains [not being long-term
capital gains referred to in clauses (33), (36) and (38) of section 10]
|
|
20
per cent.; |
|
(ix) on any other income
|
|
40
per cent. |
|
Explanation.—For
the purpose of item 1(b)(i) of this Part, “investment
income” and “non-resident Indian” shall have the meanings assigned to them
in Chapter XII-A of the Income-tax Act. |
|
|
Surcharge
on income-tax
The
amount of income-tax deducted in accordance with the provisions of item
2(b) of this Part, shall be
increased by a surcharge, for purposes of the Union, in the case of every
company other than a domestic company, calculated at the rate of two and
one-half per cent of such income-tax where the income or the aggregate of such
incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees.
PART
III
Rates
for charging income-tax in certain cases, deducting income-tax from income
chargeable under the head “salaries” and computing “advance
tax”
In
cases in which income-tax has to be charged under sub-section (4) of section 172
of the Income-tax Act or sub-section (2) of section 174 or section 174A or
section 175 or sub-section (2) of section 176 of the said Act or deducted from,
or paid on, from income chargeable under the head “Salaries” under section 192
of the said Act or in which the “advance tax” payable under Chapter XVII-C of
the said Act has to be computed at the rate or rates in force, such income-tax
or, as the case may be, “advance tax” [not being “advance tax” in respect of any
income chargeable to tax under Chapter XII or Chapter XII-A or income chargeable
to tax under section 115JB or sub-section (1A) of section 161 or section 164 or
section 164A or section 167B of the Income-tax Act at the rates as specified in
that Chapter or section or surcharge, wherever applicable, on such “advance tax”
in respect of any income chargeable to tax under section 115A or section 115AB
or section 115AC or section 115ACA or section 115AD or section 115B or section
115BB or section 115BBA or section 115BBC or section 115E or section 115JB]
shall be charged, deducted or computed at the following rate or
rates:—
Paragraph
A
(I)
In the case of every individual other than the individual referred to in items
(II) and (III) of this Paragraph or Hindu undivided family or association of
persons or body of individuals, whether incorporated or not, or every artificial
juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,
not being a case to which any other Paragraph of this Part
applies,—
Rates
of income-tax
|
(1) |
where
the total income does not exceed Rs.
1,60,000 |
|
Nil; |
|
(2) |
where
the total income exceeds Rs. 1,60,000 but does
not exceed Rs.
3,00,000 |
|
10
per cent of the amount by which the total income exceeds Rs. 1,60,000; |
|
(3) |
where
the total income exceeds Rs. 3,00,000 but does
not exceed Rs.
5,00,000 |
|
Rs.
14,000 plus 20 per cent of
the amount by which the total income exceeds Rs.
3,00,000; |
|
(4) |
where
the total income exceeds Rs.
5,00,000 |
|
Rs.
54,000 plus 30 per cent of
the amount by which the total income exceeds Rs.
5,00,000. |
(II) In the case of every individual, being
a woman resident in
Rates
of income-tax
|
(1) |
where
the total income does not exceed Rs.
1,90,000 |
|
Nil; |
|
(2) |
where
the total income exceeds Rs. 1,90,000 but does
not exceed Rs.
3,00,000 |
|
10
per cent of the amount by which the total income exceeds Rs. 1,90,000; |
|
(3) |
where
the total income exceeds Rs. 3,00,000 but does
not exceed Rs.
5,00,000 |
|
Rs.
11,000 plus 20 per cent of
the amount by which the total income exceeds Rs.
3,00,000; |
|
(4) |
where
the total income exceeds Rs.
5,00,000 |
|
Rs.
51,000 plus 30 per cent of
the amount by which the total income exceeds Rs.
5,00,000. |
(III) In the case of every individual,
being a resident in India, who is of the age of sixty-five years or more at any
time during the previous year, —
Rates
of income-tax
|
(1) |
where
the total income does not exceed Rs.
2,40,000 |
|
Nil; |
|
(2) |
where
the total income exceeds Rs. 2,40,000 but does
not exceed Rs.
3,00,000 |
|
10
per cent of the amount by which the total income exceeds Rs. 2,40,000; |
|
(3) |
where
the total income exceeds Rs. 3,00,000 but does
not exceed Rs.
5,00,000 |
|
Rs.
6,000 plus 20 per cent of
the amount by which the total income exceeds Rs.
3,00,000; |
|
(4) |
where
the total income exceeds Rs.
5,00,000 |
|
Rs.
46,000 plus 30 per cent of
the amount by which the total income exceeds Rs.
5,00,000. |
Paragraph
B
In
the case of every co-operative society, —
Rates
of income-tax
|
(1) |
where
the total income does not exceed Rs.
10,000 |
|
10
per cent of the total income; |
|
(2) |
where
the total income exceeds Rs. 10,000 but does not
exceed Rs.
20,000 |
|
Rs.
1,000 plus 20 per cent of
the amount by which the total income exceeds Rs.
10,000; |
|
(3) |
where
the total income exceeds Rs.
20,000 |
|
Rs.
3,000 plus 30 per cent of
the amount by which the total income exceeds Rs.
20,000. |
Paragraph
C
In
the case of every firm,—
Rate
of income-tax
|
On
the whole of the total income |
30
per cent. |
Paragraph
D
In
the case of every local authority,—
Rate
of income-tax
|
On
the whole of the total income |
30
per cent. |
Paragraph
E
In
the case of a company,—
Rates
of income-tax
|
|
30
per cent of the total income; |
|
II. In the case of a company other than
a domestic company— |
|
|
(i) on so much of the total income as
consists of,— |
|
|
(a) royalties received from Government
or an Indian concern in pursuance of an agreement made by it with the
Government or the Indian concern after the 31st day of March, 1961 but
before the 1st day of April, 1976; or |
|
|
(b) fees for rendering technical
services received from Government or an Indian concern in pursuance of an
agreement made by it with the Government or the Indian concern after the
29th day of February, 1964 but before the 1st day of April,
1976, |
|
|
and where such agreement has, in either case, been approved by the
Central Government |
50
per cent; |
|
(ii) on the balance, if any, of the
total income |
40
per cent |
Surcharge
on income-tax
The
amount of income-tax computed in accordance with the preceding provisions of
this Paragraph, or in section 111A or section 112, shall, in the case of every
company, be increased by a surcharge for purposes of the Union
calculated,—
(i) in the case of
every domestic company having a total income exceeding one crore rupees, at the rate of ten per cent of such
income-tax;
(ii)
in the case of every company other than a
domestic company having a total income exceeding one crore rupees at the rate of two and one-half per cent
:
Provided
that in the case of every company having a total income exceeding one crore rupees, the total amount payable as income-tax and
surcharge on such income shall not exceed the total amount payable as income-tax
on a total income of one crore rupees by more than the
amount of income that exceeds one crore
rupees.
PART
IV
[See section 2(12)(c)]
Rules
for computation of net agricultural income
Rule
1.—Agricultural
income of the nature referred to in sub-clause (a) of clause (1A) of section 2 of the Income-tax Act
shall be computed as if it were income chargeable to income-tax under that Act
under the head “Income from other sources” and the provisions of sections 57 to
59 of that Act shall, so far as may be, apply
accordingly:
Provided
that sub-section (2) of section 58 shall apply subject to the modification that
the reference to section 40A therein shall be construed as not including a
reference to sub-sections (3) and (4) of section
40A.
Rule
2.—Agricultural
income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1A) of section 2 of the Income-tax Act
[other than income derived from any building required as a dwelling-house by the
receiver of the rent or revenue of the cultivator or the receiver of
rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income
chargeable to income-tax under that Act under the head “Profits and gains of
business or profession” and the provisions of sections 30, 31, 32, 36, 37, 38,
40, 40A [other than sub-sections (3) and (4) thereof], 41, 43, 43A, 43B and 43C
of the Income-tax Act shall, so far as may be, apply
accordingly.
Rule
3.—Agricultural
income of the nature referred to in sub-clause (c) of clause (1A) of section 2 of the Income-tax Act,
being income derived from any building required as a dwelling-house by the
receiver of the rent or revenue or the cultivator or the receiver of
rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income
chargeable to income-tax under that Act under the head “Income from house
property” and the provisions of sections 23 to 27 of that Act shall, so far as
may be, apply accordingly.
Rule
4.—Notwithstanding anything contained in any other provisions of
these rules, in a case—
(a)
where the assessee derives income from sale of
tea grown and manufactured by him in India, such income shall be computed in
accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent of such
income shall be regarded as the agricultural income of the assessee;
(b)
where the assessee derives income from sale of
centrifuged latex or cenex or latex based crepes (such
as pale latex crepe) or brown crepes (such as estate brown crepe, re-milled
crepe, smoked blanket crepe or flat bark crepe) or technically specified block
rubbers manufactured or processed by him from rubber plants grown by him in
India, such income shall be computed in accordance with rule 7A of the
Income-tax Rules, 1962, and sixty-five per cent of such income shall be regarded
as the agricultural income of the assessee;
(c)
where the assessee
derives income from sale of coffee grown and manufactured by him in
Rule
5.—Where
the assessee is a member of an association of persons
or a body of individuals (other than a Hindu undivided family, a company or a
firm) which in the previous year has either no income chargeable to tax under
the Income-tax Act or has total income not exceeding the maximum amount not
chargeable to tax in the case of an association of persons or a body of
individuals (other than a Hindu undivided family, a company or a firm) but has
any agricultural income then, the agricultural income or loss of the association
or body shall be computed in accordance with these rules and the share of the
assessee in the agricultural income or loss so
computed shall be regarded as the agricultural income or loss of the assessee.
Rule
6.—Where
the result of the computation for the previous year in respect of any source of
agricultural income is a loss, such loss shall be set off against the income of
the assessee, if any, for that previous year from any
other source of agricultural income:
Provided
that
where the assessee is a member of an association of
persons or a body of individuals and the share of the assessee in the agricultural income of the association or
body, as the case may be, is a loss, such loss shall not be set off against any
income of the assessee from any other source of
agricultural income.
Rule
7.—Any sum payable by the assessee on
account of any tax levied by the State Government on the agricultural income
shall be deducted in computing the agricultural
income.
Rule
8.—(1)
Where the assessee has, in the previous year relevant
to the assessment year commencing on the 1st day of April, 2009, any
agricultural income and the net result of the computation of the agricultural
income of the assessee for any one or more of the
previous years relevant to the assessment years commencing on the 1st day of
April, 2001 or the 1st day of April, 2002 or the 1st day of April, 2003 or the
1st day of April, 2004 or the 1st day of April, 2005 or the 1st day of April,
2006 or the 1st day of April, 2007 or the 1st day of April, 2008, is a loss,
then, for the purposes of sub-section (2) of section 2 of this
Act,—
(i) the loss so computed for the previous
year relevant to the assessment year commencing on the 1st day of April, 2001,
to the extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year commencing on the
1st day of April, 2002 or the 1st day of April, 2003 or the 1st day of April,
2004 or the 1st day of April, 2005 or the 1st day of April, 2006 or the 1st day
of April, 2007 or the 1st day of April, 2008,
(ii)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2002, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April, 2003 or the
1st day of April, 2004 or the 1st day of April, 2005 or the 1st day of April,
2006 or the 1st day of April, 2007 or the 1st day of April,
2008,
(iii)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2003, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April, 2004 or the
1st day of April, 2005 or the 1st day of April, 2006 or the 1st day of April,
2007 or the 1st day of April, 2008,
(iv)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2004, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April, 2005 or the
1st day of April, 2006 or the 1st day of April, 2007 or the 1st day of April,
2008,
(v)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2005, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April, 2006 or the
1st day of April, 2007 or the 1st day of April,
2008,
(vi)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2006, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April, 2007 or the
1st day of April, 2008,
(vii)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2007, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April,
2008,
(viii)
the loss so computed for the previous year
relevant to the assessment year commencing on the 1st day of April,
2008,
shall
be set off against the agricultural income of the assessee for the previous year relevant to the assessment
year commencing on the 1st day of April, 2009.
(2)
Where the assessee has, in the previous year relevant
to the assessment year commencing on the 1st day of April, 2010, or, if by
virtue of any provision of the Income-tax Act, income-tax is to be charged in
respect of the income of a period other than the previous year, in such other
period, any agricultural income and the net result of the computation of the
agricultural income of the assessee for any one or
more of the previous years relevant to the assessment years commencing on the
1st day of April, 2002 or the 1st day of April, 2003 or the 1st day of April,
2004 or the 1st day of April, 2005 or the 1st day of April, 2006 or the 1st day
of April, 2007 or the 1st day of April, 2008 or the 1st day of April, 2009, is a
loss, then, for the purposes of sub-section (10) of section 2 of this
Act,—
(i) the loss so computed for the previous
year relevant to the assessment year commencing on the 1st day of April, 2002,
to the extent, if any, such loss has not been set off against the agricultural
income for the previous year relevant to the assessment year commencing on the
1st day of April, 2003 or the 1st day of April, 2004 or the 1st day of April,
2005 or the 1st day of April, 2006 or the 1st day of April, 2007 or the 1st day
of April, 2008 or the 1st day of April, 2009,
(ii)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2003, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April, 2004 or the
1st day of April, 2005 or the 1st day of April, 2006 or the 1st day of April,
2007 or the 1st day of April, 2008 or the 1st day of April,
2009,
(iii)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2004, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April, 2005 or the
1st day of April, 2006 or the 1st day of April, 2007 or the 1st day of April,
2008 or the 1st day of April, 2009,
(iv)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2005, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April, 2006 or the
1st day of April, 2007 or the 1st day of April, 2008 or the 1st day of April,
2009,
(v)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2006, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April, 2007 or the
1st day of April, 2008 or the 1st day of April,
2009,
(vi)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2007, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April, 2008 or the
1st day of April, 2009,
(vii)
the loss so computed for the previous year relevant to the assessment
year commencing on the 1st day of April, 2008, to the extent, if any, such loss
has not been set off against the agricultural income for the previous year
relevant to the assessment year commencing on the 1st day of April,
2009,
(viii)
the loss so computed for the previous year
relevant to the assessment year commencing on the 1st day of April,
2009,
shall
be set off against the agricultural income of the assessee for the previous year relevant to the assessment
year commencing on the 1st day of April, 2010.
(3)
Where any person deriving any agricultural income from any source has been
succeeded in such capacity by another person, otherwise than by inheritance,
nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the
person incurring the loss, to have it set off under sub-rule (1) or, as the case
may be, sub-rule (2).
(4)
Notwithstanding anything contained in this rule, no loss which has not been
determined by the Assessing Officer under the provisions of these rules or the
rules contained in Part IV of the First Schedule to the Finance Act, 2001 (14 of
2001), or of the First Schedule to the Finance Act, 2002 (20 of 2002), or of the
First Schedule to the Finance Act, 2003 (32 of 2003), or of the First Schedule
to the Finance (No. 2) Act, 2004 (23 of 2004) or of the First Schedule to the
Finance Act, 2005 (18 of 2005), or of the First Schedule to the Finance Act,
2006 (21 of 2006) or of the First Schedule to the Finance Act, 2007 (22 of 2007)
or of the First Schedule to the Finance Act, 2008 (18 of 2008) shall be set off
under sub-rule (1) or, as the case may be, sub-rule
(2).
Rule
9.—Where the net result of the computation made in accordance
with these rules is a loss, the loss so computed shall be ignored and the net
agricultural income shall be deemed to be nil.
Rule
10.—The
provisions of the Income-tax Act relating to procedure for assessment (including
the provisions of section 288A relating to rounding off of income) shall, with
the necessary modifications, apply in relation to the computation of the net
agricultural income of the assessee as they apply in
relation to the assessment of the total income.
Rule
11.—For the purposes of computing the net agricultural income of
the assessee, the Assessing Officer shall have the
same powers as he has under the Income-tax Act for the purposes of assessment of
the total income.
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