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THE PAYMENT OF GRATUITY (AMENDMENT) ACT,2OI8

ACT

further to amend the Payment ofcrataity Act ¹⁹⁷².

BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:-

Short title and ' 1. (/) This Act may be called the Payment of Gratuity (Amendment) Act, 20 I 8.

commencement.

(2) It shall come into force on such date as the Central Governmedt may, by notification in the Ofiicial Gazette, appoint.

l9 of 1972.

2. In the Payment of Gratuity Act, 1972 (hereinafter referred to as the principal Act), Amendmcnt of section 2.

in sectioil 2, for clause (t); the following clause shall be substituted, namely:-

'(&) "notification" means a notification published in the Official Gazette and the expression "notified" shall be construed accordingly;'.

Amendment of section 2A.

In section 2A of the principal Act, in sub-section (2), in the Explanation, in clause (p), for the words "twelve weeks", the words "such period as may be notified by the Central Government from time to time" shall be substituted. ↩

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Amcndmen. of 4. ln soction 4 ofthe principal Act, in sub-section (3), for dre words '*tcn lakh rupecs", seclion 4. thc words "such amount as may be notified by the Ceniu-al Govemment from time to time" shallbe substituted.

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THE FINANCE ACT 20 18

ARRANCEMENT OF

Ct.AUsEs

CHAPTER I

PREI,IMINARY

¹_ SHORT TITLE AND CoMMENCEMENT

CHAPTER II

RATES oF INCoME-TAX

Income-tax.

CHAPTER III

DIRECTTAxES

Income-tax

3. Amendment ofsection 2.

424 (rl

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4. Amendment ofsection 9-

Amendment of section 10. Amendment ofsection I l. Amendment of section 16. Amendment of section 17. Amendment of section 28.

10.

Amendment of section 36. Amendment of section 40A-

12.

13.

14.

15.

16.

17.

t8. t9. 20. 2t. 22.

23.

24. 25. 26.

27.

2E.

29.

30. 3t.

32. 33.

34.

35. 36.

37.

38.

39.

40.

41.

42.

43. 44.

45. 46.

47.

48.

49.

50.

51.

.' ⁵²., s3.

54.

55.

Amendment of section 43. Insertion ofnew section 43AA. Amendment of section 43CA. lnsertion ofnew section 43CB. Amendment of section 44AE. Amendment of section 47. Amendment of section 48. Amendment of section 49. Amendment of section 50C. Amendment of section 54EC. Amendment of section 55. Amendment of section 56. Amendment of section 79. Substitution ofnew section for 80AC. Amendment of section 80D. Amendment of section 80DDB. Amendment of section 80-lAC. Amendment of section 80JJAA. Insertion of new section 80PA. Amendment of section 80TTA. lnsertion ofnew section 80TTB. Insertion of new section I I 2A. Amendment of section 1l5AD. Amendment of section I I 5BA. Amenilment of section I l5BBE. Amendment of section I l5JB. Amendment of section I l5JC. Amendment of section I lsJF, Amendment of section 1 I 5-O. Omission of Explanation occurring after section I l5Q. Amendment ofsection I l5R. Amendment of section 1 I 5T. Amendment of section 139A.. Amendment of section 140. Amendment of section 143. Substitution ofnew sections l45A and l45B for section 145A. Amendment of section 193. Amqndment of section 194A.. Amendment of section 245-O. Amendment of section 245Q. Am€ndment of section 253- Amendment of section 271 FA. Amendment of section 276CC. Amendment of section 286.

CHAPTER IV INDIRECT TAxEs

Customs

56.

57.

58.

Substitution of references to certain expressions by certain other expressions. Amendment of section l. Amendment ofsection 2.

424 (31

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59. Amendment ofsection 11. 60. Amendment of section 17. 61. Amendment of section 18. 62. Insertion ofnew sections 25A and 258. 63. Amendment ofsection 28. 64. Amendment of section 28E. 65. lnsertion ofnew section 28EA. 66. Amendment of section 28F. 6'7. Amendment of section 28H. 68. Amendment of seclion 28-[. 69. Amendment of section 28K. 70. lnsertion ofnew section 28KA. 'l l. Amendment ofsection 28L. 72. Substitution ofnew section for section 28M. '73. Amendment ofsection 30. '14. Amendment ofsection 41. 75. Amendment ofsection 45. 76. Amendment ofsection 46. 77. Amendment ofsection 47. 78. Amendment of section 50. 79. Amendment ofsection 51. 80. Insertion ofnew Chapter VIIA. 81. Amendment ofsection 54. 82. Amendment ofsection 60. 83. Amendment ofsection 68. 84. Amendment ofsection 69. 85. Amendment ofsection 74. 86. Amendment ofsection 75. 8'7. Amendment of Chapter heading. 88. Amendment ofsection 83. 89. Amendment of section 84. 90. Insertion ofnew Chapter XllA. 91. Insertion ofnew section 109A. 92. Amendment ofsection l[0. 93. Amendment ofsection I22- s4. Amendment ofsection 124. s5. Amendment ofsection 125. 96. Amendment ofsection 1284.. 97. Insertion ofnew section l43AA. 98. [nsertion ofnew section l5lB. 99. Substitution ofnew section for section 153. 100. Amendment of section 157. l0l. Amendment of notification issued under sub-section (l ) of section 25 of Customs Act and sub-section ( l2) of section 3 of Customs Tariff Act, retrospectively.

Customs Tariff

102. Amendment ofCustoms TariffAct, 1975. 103. Amendment of First Schedule. 104. Amendment of Second Schedule.

Service tax

105.

106.

t07.

Special provision for exemption from service tax in certain cases relaling to life insurance services provided by Naval Group Insurance Fund to personnel ofCoasl Guard, retrospectively. Special provision for exemption from service tax in certain cases r€lating to services provided or agreed to be provided by Goods and Services Tax Network, retrospectively. Special provision for retrospective exemption 1}om service tax on Govemment's share of profit petroleum.

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Cr-nuses

CHAPTER V

REpEAr, AND sAvrNcs oF CERTATN ENAcTMENTS

108. Repeal and savings ofcertain enactments.

109. Collection and payment ofarrears ofduties.

C}I,AFTER VI

Socrru- Weuenr Suncrunce

| 10. Social Welfare Surcharge on imporled goods.

CHAPTER VII

RoAD AND INFMsrRuctum Cess

I I l. Road and lnfrastructure Cess dn imponed goods.

112. Road and Infrastructure Cess on excisable goods.

CHAPTER VIII

Mlscsr-r-a.wsous

PART I

AMENDMENTs rorHE GovenNvrxr Srvrrcs BANKSAc-r, 1873

I13. Commencement ofthis Pan.

I 14. Substitution oflong title to Act 5 of 1873.

I15. Amendment ofshon title.

| 16. Substitution of words "Authorised Office/' for the word "Secrelary" throughout Act.

I 17. Omission of section 2.

I18. Substituiori ofnew sections 3, 3A and 3B for section 3.

l19. Amendment ofsection 4.

120. Amendment ofsection 4,A.

l2l. Amendment ofsection 5.

122. Amendment ofsection 6.

123. Amendment ofsection 7.

124. lnsertion of nelv section 74.

125. Amendment ofsection 8.

126. Amendment ofsection 10.

127. Amendment ofsection 12.

128. lnsertion ofnew section l2A.

129. Omission of heading.

130. Omission df section 13.

l3l. Amendment ofseclion 14.

132. lnsertion ofnew section l4A.

. 133. Amendment ofsection 15.

ly. lnsertion ofnew section and Schedule.

PART II

AMENDMENT ro rHE RESERvE BANK oF INDIA Ac1, I 934

135. Amendment ofsection l7 ofAct 2 of 1934.

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424 (s) Cleuses

PART III

AtrexourNrs ro trs PRESTDENT's EMoLUMENTs AND pENSroN Acr, l95l

136. Commencement ofthis Part.

137. Amendment ofsection lA.

138. Amendment ofsection 2.

139. Amendment ofsection 3A.

PARI IV

. AMrNotrrlt to rse Snuntrs lxo ALLowaNcss or OrncEns or PanlmsNr Acr, 1953

. 1,1.0. Amendment of section 3 ofAct 20 of 1953.

PART V

AMENDMENTS ro rHE S,runv, Alr-owaNcrs aNo PsNsroN or MEMBERS oF PARUAMENT Acr, 1954 l4l. Commencement ofthis Pan.

142. Amendment ofsection 3.

143. Amendment ofsection 4.

144. Amendment ofsection 8A.

145. Amendmenl ofsection 8AC.

PART VI

AMENDMENTs ro rHE Sscunrrrss CoNrracrs (REauLATtoN)Ac-r, 1956

146. Commencement ofthis Part.

147. Amendment ofsection l2A.

1,18. Amendment ofsection 23.

149- Amendment ofsection 23A.

150. Amendment ofsection 23E.

l5l. Amendment olsection 23G

152. lnsertion ofnew section 23GA.

153. Amendment ofsection 23-1.

154. Amendment ofseclion 23J.

155. Amendment ofsection 23JA.

: 156- Amendment ofsection 23J8.

157. lnsertion ofnew section 23JC.'

158. Amendment of section 23M.

159. Amendment o[section 24.

PART VII

AMENDMENT ro rHE CENTRAL BoARDs oF REvE)'uE Acr, I 963

160. Amendment ofAct 54 of 1963.

PART VIII

AMENDMENT ro rHE GovERNoRs (EMoLUMENIS, ALLowANcEs AND PRrvrLEcEs)Acf, 1982

16l. Amendment ofsection 3 ofAct43 of 1982.

⁴²⁴ (⁶¹ E-dsoc ¹lqqd, ft

CI.AUsES

PART IX

AMENDMENTS ro rHE NATIoNAL HousrNc BeNrAcr' 1987

162. Commencement ofthis Part.

163. Amendment ofsection 3.

164. Amendment ofsection 4.

165. Amendment ofsection 5.

166. Amendment ofsection 6.

167. Amendment ofsection 7.

l6i. Amendment ofsection ¹⁶.

169. Amendment ofsection 29A.

170. Amendment ofsection 33. l7l. Amendmen{ ofsection 33B.

172. Amendment ofsection 37.

lR. Amendment of section ³⁹.

174. Amendment ofsection 40.

175. Amendmenr ofsection 43.

176. Amendment ofsection 45A.

177. Amendment of section 55.

PART X

AveNo[lst{ts ro rHe Secuntnrs eNo ExcHANGE BoARD oF INDIA Acr, ¹⁹⁹²

178. Commencement ofthis Part. 179. Amendment ofsection I l.

180. Amendment ofsection I I B. l8l. Amendment ofsection l5,A.

182. Insertion ofnew sections l5EAand l5EB.

183. Amendment ofsection l5F.

l&4. Amendment ofsection l5-t.

185. Amendment ofsection l5J.

186, Amendment ofsection l5JB.

187. Amendment ofsection 24.

188. Amendment ofseclion 27.

189. Amendmbnt ofsection 28A.

190. Insertion ofnevi section 288.

PART XI

AMENDMENTS ro rHE Deeosrrox.tis Acr, I 996

l9l. Commencement ofthis Pan.

192. Amendment ofsection ¹⁹. 193. Amendment ofsection l94.

194. lnsertion ofnew section l9FA.

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4z4l7l Cr.euses

195. Amendment ofsection l9H.

196. Amendment ofsection l9-1.

19?. Amendhent of section l9-lA.

198. Amendment ofsection l9-lB.

199. Insertion ofnew section l9-lC.

200. Amendment ofChapter V.

201. Amendment ofsection 20,

2@. Amendment of section 21.

203. Omission of heading.

PART XII

. AMENDMENT ro rHE VrcE-pREstDENT's psNsroN Acr, 1997

204. Amendment ofsection 2 ofAct 30 of 1997.

PART XIII

AMENDMENTS ro rHE CENTML RoAD FUND Ac-r, 2000

205. Commencement ofthis Pan-

206. Amendment ofAct 54 of2000.

PART XTV

AMENDMENTS ro rHE pREvENnoN oF MoNEY-LAUNDERTNa Acr,2002

20l. Commencement ofthis Pan.

208. Amendments ofAct l5 of2003.

PARI XV

AMENDMENTS ro rHE FscAL REspoNstBrltry AND BrrDcET MeNr,oeilelrr Acr, 2003

209. Commencement ofthis Pan.

210. Amendment of long title. 2l l. Amendment ofsection 2.

212. Amendment ofsection 3.

213. Amendment ofsection 4.

214. Amendment ofsection 5.

215. Amendment ofsection 7.

216. Amendment ofsection 8.

PART XVI

AMENDMENT ro rHE FINANCE (No. 2) Ac-r, 2004

217. Amendment o f Act23 of2004.

PART XVII

AMENDMENT' Io rHE FNAN.EAcT' 2013

2rg. Amendment ofAct r7of20l3.

PART XVIII

AMENDMENTS ro rHE BLAcx MoNEy (UNuscr.oseo Fonoox lxcove eNo Assers) rNo lMpostrroN oi T^x Acr. 2Ot 5 219. Amendmenr ofAct22 of70t5.

⁴²⁴ (⁸) Bftnerrc {qqx, ft{i{ 14qr 2ols

. PART XIX

AMENDMENT ro rHE FINANCE Acr, 20 1 6

220. Arnendment ofAct 28 of20l6.

PAKT XX

AuruoupNr ro rHr Cavrlel Cooos nxo SenvtcEs TAx Acr' ²⁰ ¹ ⁷

221. Amendment ofsection 2 ofAct l2 of20l7.

. THE FIRST SCHEDULE.

THE SECOND SCHEDI.JLE. THE THIRD SCHEDIJLE

. THE FOUKTH SCHEDULE.

THE FIFTH SCHEDULE THE STXTH SCHEDULE.

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424 (el

THE FINANCE ACT. 2018

ACT

t di give e/fect to the /inancial proposals of the CentralGoternment lor the

Ji n a nc i a I y e ar 20 ¹ 8-20 I 9.

BE it endcted by Parliament in the Sixty-dnth Year of the Republic oflndia as follows:-

C+IAPTER I

PneLrurNlnv

Short title l. (,1) ThisAct may be called the FiiianceAct,20l8.

and (2) Save as otherwise provided in this Act, sections 2 to 55 shall come into force on the I st dav ofApril' 20lE

cHAprERIl

Rrres on hcoue-tex

lncome-tax.

2. (/) Subject to the provisions of sub-sections (2) end (3), for the asses$tent year commencing on the, I st day ofApril,20l8, income-tax shall be gharged at tlre ratds specified

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in Part I ofthe First Schedule and such tax shall be increased by a surcharge, for the purposes ofthe Union, calculated in each case in the manner provided therein.

(2) ln the cases to which Paragraph A ofPart I ofthe First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding five lhousand rupees, in addition to total income. and the total income exceeds two lakh fifty thousand rupees, then,-

(a) the net agricultuml income shall be taken into account, in the mannerprovided in clause (b) [that is to say, as ifthe net agricultural income were comprised in the total income after the first two lakh fifly thousand rupees ofthe total income but without being liable to tax], only for the purpose ofcharging income-tax in respect ofthe 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 incomel

(il) the net agricultural income shall be increased by a sum oftwo lakh fifty thousand rupees, and the amount ofincome-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:

(lii) the amount of income-tax determiired 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 anived at shall be the income-tax in respect ofthe total income:

Provided that in the case ofevery individual, being a resident in India, who is of the age of sixty years or more but less than eighty years al any time during the previous year, referred to in item (/0 ofParagraph A ofPart I ofthe Fimt Schedule, the provisions of this sub-section shall have effect as if for the words "two lakh fifty thousand rupees", the words "three lakh rupees" had been substituted:

Provided further that in the case of every individual, being a resident in India, who is ofthe age ofeighty years or more at any time during the previous year, referred to in item (,//0 of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as iffor the words "two lakh fifty thousand rupees", the words "five lakh rupees" had been substituted.

(J) I n cases to \a,h ich the provisions ofChapter X I I or Chapter XI I-A or section I | 5J B or section I I 5JC or Chapter X ll-FA or Chapter X I I-FB or sub-section ( /,{) ofsection I 6 I or section 164 or section l644 or section l678 ofthe lncome-taxAct, l96l (hereinafter referred ⁴³ ol l96l. .to as the lncome-tax Act) apply, $e tax chargeable shall be determined as provided in that rchapter 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 I I I A or section I I 2 ol the lncome-tax Act ihall be increased by a surcharge, for the purposes ofthe Union. as provided in Paragraph A, B, C, D or E. as the case may be, of Pan Iofthe First Schedule:

Provided further that in respect ofany income chargeable to tax under section I l5A, I t5AB,l l5AC,l tsACA,ll5AD,l l58, I l5BA I l5BB,ll5BBA" llsBBC,ll5BBD, li5BBDA, ll5BBF, ll5BBG, ll5E, I l5JB or 1l5JC ofthe Income-tax Act, the amount of income-tax

Bdsrq {q[d, ftri+ la{r zorr 424lttl conrputed under this sub-section shall be increased by a surcharge, for the purposes ofthe Union, calculated,-

(a) in the case ofevery individual oi Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificialj uridical person referred to in sub-clause (vir) of clause (.i/) of section 2 of the Income-tax Act.-

(i) having a total income exceeding fifty lakh rupees but not exceeding

one crore rupees, at the rate often per cent. ofsuch income-tax; and

(ii) having a total income exceeding one crore rupees, at the rate offifteen

per cent. ofsuch income-tax;

(6) in the case ofevery co-operative society orfirm or local authority, at the rate of twelve per cent, of such income-tax, where the total income exceeds one crore

rupees;

(l) at the rate ofseven per cent. ofsuch income-tax, where the total income

exceeds one crore rupees bul does not exceed ten crore rupees;

(ii) at the rate of twelve per cent, of such income-tax, where the total income exceeds ten crore ruPees:

(d) in the case ofevery company, other than a domestic company,-

(i) at the rate oftwo per cent ofsuch income-tax, where the total income

exceeds one crore rupees but does not exceed len crore rupeesi

(ii) atthe rate offive percent ofsuch income-tax, wherethetotal income

exceeds ten crore rupees:

Provided also that in the case ofpersons mentioned in (a) above, having total income chargeable to tax under section I l5JC ofthe lncome-taxAct, and such income exceeds,-

(i) fifty lakh rupees but does not exceed one crore rupees. the total amount payable as income-tax and surcharge thereon shall notexceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount ofincome that exceeds fifty lakh rupees;

(li) one crore rupees, the total amount payable as income-tax and surcharge thereon shall not exceed the total amount payable as income-tax and surcharge on a total income ofone crore rupees by more than the amount of income that exceeds one crore ruPees:

Provided also that in the case of persons mentioned in (6) above, having total income chargeable to tax under section l l5JC ofthe lncome-tax Act, and such income exceeds one crore rupees, the total amount payable as income-tax on such income and surcharge thereon shall not exceed the total amount Payable as income-tax on a total income ofone crore rupees by more than the amount ofincome that exceeds one crore rupees:

Provided also that in the case ofevery company having total income chargeable to tax under section I l5JB ofthe Income-tax Act, and such income exceeds one crore rupees but does not exceed len crore rupees. the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax on a total income ofone crore rupees by more than the amount of income that exceeds one crore ruPetes:

Proyided also thal in the case ofevery company having total income chargeable to tax under section I l5JB ofthe Income-tax Act, and such income exceids ten crore rupees, the lotal amount payable as income-tax on such income and surcharge thereon' shall not exceed the total amount payable as income-tax and surcharge on a total

424 (r2l ydtlrq {rq[d, frcis lnq{ zorr

income often crore rupees by more than the amount ofincome that exceeds ten crore rupees:

Provided also that in respect ofany income chargeable to tax under clause (i) of sub-section ( /) of section I I5BBE of the Income-tax .Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for the purposes ofthe Union, calculated at the mte oftwenty-five per cent. ofsuch income-tax.

(4) In cases in which tax has to be charged and paid under section I l5-O or section I I5QA or sub-section (2) ofsection I l5R or section I l5TAor section I l5TD ofthe Income- tax Act, fie tax shall be charged and paid at the rates as specified in those sections and shall be increased by a surcharge, for the purposes ofthe Union, calculated at the rate of twelve per cent. ofsuch tax.

(5) In cases in which tax has to be deducted under sections 193, 194, 194A, 1948, l94BB, 194D. l94LBA, l94LBB, l94LBC and 195 ofthe Income-taxAct, at lhe rates in force, the deductions shall be made at the rates specified in Part Il ofthe First Schedule and shall be increased by a surcharge, for the 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 192A, 194C, l94DA, 194E, r94EE, l94n t94G l9 4H, t9+t,19+Wr94-lB, l9+lc, 194J, 194t"{, l94LB, I94LBA, [94LBB, l94LBC, l94LC, l94LD, 1968, l96C and l96D ofthe Income-taxAct, the deductions shall be made at the rales specified in those sections and shall be inmeased by a surcharge, for the purposes ofthe Union,-

(a) in the case ofevery individual or Hindu undivided family or association of persons or body ofindividuals, whether incorporated or not, or every artificialj uridical person refened to in sub-clause (vi, ofclause (3/) ofsection 2 ofthe Income-tax Act, being a non-resident, calculated,-

(i) atthe rate often per cent. ofsuch tax, where the income or the aggegate ofsuch incomes paid or likely to be paid and subject to the deduction exceeds fifty lakh rupees but does not exceed one crore rupees;

(iD at the rate of fifteen per cent. of such tax, where the income or the aggregate ofsuch incomes paid or likely to be paid and subject to the deduction exceeds one crore ruPees;

(b) in the case of every co'operative society or firm, being a non-resident, calculated at the rate oftwelve per cent ofsuch 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:

(c) in the case of every company, other than a domestic company, calculated,- (l) at the rate oftlvo percenl. ofsuch tax, where the income orthe aggregale of such incomes paid or likely to be paid and subject to the deduction exceeds i one crore rupees but does not exceed ten crore rupees;

(ii) atthe rate offive percent ofsuchtax, where the income orthe aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees.

(7) ln cases in which tax has to be collected under the proviso to section l94B ofthe 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 the purposes ofthe Union, calculated. in cases wherever prescribed, in the manner provided therein.

(8) tn cases in which tax has to be collected under section 206C ofthe lncome'taxAct,

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424 (Bl the collection shall be made at the rates specified in that section and shall be increased bv a surcharge, for the purposes ofthe Union,-

(a) in the case ofevery individual or Hindu undivided family or association of persons or body ofindividuals, whether incorporated or not, or every artificialjuridical person referred to in sub-clause (vil) ofclause (3/) ofsection 2 ofthe Income_taxAct, being a non-resident, calculated,-

(r) at the rate often per cent. ofsuch tax, where the amount or the aggregate ofsuch amounts collected and subject to the collection exceeds fifty lakh rupees but does not exceed one crore rupees;

(lr) at the rate of fifteen per cent. of such tax, where the amount or the aggregate ofsuch amounts collected and subject to the collection exceeds one crore rupees;

(b) io,the case of every co-operatiye society or firm, being a non-residenr, calculated at lhe rate oftwelve per cent. ofsuch tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees;

(c) in the case ofevery company, other than a domestic company, calculated,- (r) at the rate oftwo percent. ofsuch tax, where the amount orthe aggregate ofsuch amounts collected and subject to the collection exceeds one croi.e rupees but does not exceed ten crore rupees;

(il) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crore rupees.

(9) Subject to the provisions ofsub-section (./0), in cases in which income-tax has to be charged under sub-section (l) of section 172 or sub-section (2) of section 174 or section l74A or section 175 or sub-section (2) of section 176 of the lncome-tax Act or deducted liom, or paid on, income chargeable under the head ,,Salaries" under section 192 of the said Act or in which the "advance tax" payable under Chaprer XVII-C ofthe said Act has ..advance to be computed at the rate or rates in force, such income-tax or, as the case may be, tax" shall be charged, deducted or computed at the rate or rates specified in Part III ofthe First Schedule and such tax shall be increased by a surcharge, forthe purposes ofthe Union, caleulated in such cases and in such manner as provided therein:

Proyided that in cases to which the provisions of Chapter Xll or Chapter XII-A or section I l⁵JB or section ¹ l5JC or Chapter XI I-FA or Chapter X I I-FB or sub-section ( /l) of section l6l or section 164 or section l64,4 or section 1678 ofthe Income-tax Act apply, "advance tax" shall be computed with reference Io the rates imposed by this sub-section or the rates as specified in thal Chapter or section, as the case may be:

Provided funher that the amount of"advance tax" computgd in accordance with the provisions ofsection lllAorsection ll2orsection ll2Aof the Income-tax Act shall be increased by a surcharge, for the purposes ofthe Union, as provided in Paragraph A, B, C, D or E, as the case may be, ofPart III ofthe First Schedule:

Provided also that in respect ofany income chargeable lo tax under section I l5A, II5AB,II5AC,IIsACA,II5AD,II58,II5BA,II5BB,II5BBA,lIsBBC, II5BBD, IIsBBDA., I l5BBF, I I5BBG I l5E, I ¹⁵JB or I 15JC ofthe Income-taxAct,.,advance tax,, computed under the first proviso shall be increased by a surcharge, for the purposes of the Union, calculated,-

(a) in the case ofevery individual or Hindu undivided family or association of persons or body ofindividuals, whether incorporated or not, or every artificialjuridical person referred to in sub-clause (vii) ofclause (31) of section 2 ofthe Income-tax Acl.

(l) at the rate of ten per cent. of such "advance tax", where the. total income exceeds fifty lakh rupees but does not exceed one crore rupees;

424 (t4l Bde:rq {ts[d, frci6 trEI:otr

(ir) at the rate of fifteen per cent. of such "advance, tax", where the total income e.xceeds one crore mpees;

(6) in the case ofevery co-operative S;6iety or firm or local authoriry at the rate oftwelve per cent. ofsuch "advance tax", where the total income exceeds one crore rupees;

(i) at the rate of seven per cent. of such "advance tax", where the total income exceeds one cror€ rupees but does not qxceed ten crore rupees;

(i, at the rate oftwetve per cent. ofsuch "advance tax", where the total income exceeds ten crore ruPees;

(d) in the case ofevery company, other than a domestic company,-

(, at the rate of two per cent. of such "advance tax", where the lotal income exceeds one crore rupees but does not exceed ten crore ruPees:

(i, at the rate of five per cent. of such "advance tax", where the total income exceeds ten crore ruPees:

Provided also that in the case ofpersons mentioned in (a) above, having total income chargeable to tax under section I l5JC ofthe Income-tax Act, and such income exceeds,- (a) fifty lakh rupees but does not exceed one crore rupees, the total amount payable as "advance tax" on such income and surcharge thereon shall not exceed the iotal amount payable as "advance tax" on a total income offifty lakh rupees by more than lhe amount ofincome that exceeds fifty lakh rupees;

(r) 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 mpees:

Provided also that in the case ofpersons mentioned in (b) above, having total income chargeable to tax under section I l5JC ofthe Income.:tax Act, and such income exceeds one ciorJ 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:

Provided also that in the case ofevery company having total income chargeable to tax under section I l5JB of the tncome-tax Act, and such income exceedS one crore rupees but does not exceed ten 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 Jne crore rupees by more than the amount of income that exceeds one crore rupees:

Provided atso that in the case oFevery company havingtotal income chargeable to tax under section I lsJB ofthe lncome-tax Act, and such income exceeds ten crore rupees' the i.j,ul u*oun, payable as "advance tax" on such income and surcharge thereon' shall not exceedthetotal.amountpayableas..advancetax,'andsurchargeonatotalincomeoften crore rupees by more than the amount of income that exceeds ten crore rupees:

Provided also that in respect of any income chdrgeable to tax under clause (i) of ,uboiction (l) otr"ction I l5BdE ofthe tncome-tax Act' the "advance tax" computed under ii. n"t pr""ito ,f,r"ll be increased by a surcharge, for the purposes ofthe Union' calculated at the raie of twenty-fiYe per cent. of such "advance tax"'

(/0) In caies to which Paragraph A ofPart III ofthe First Schedule applies' wtiere the urrprraa hur, in the previous year or, if by virtue of any provision of the Income-tax AcJ' income-tax is to be cirarged in respect ofthe income ofa period other than the previous year'

ird€rrd irqrd, ftri* ra qr zott

424 (rsl in such otherperiod, any net agricurturar income exceeding five thousand rupees, in addition to total income and the total income exc€eds two lakh fifryihou5and rupees, then, in charging income-tax under sub-section (2) of section r74 or section l74A or section r75 or sub-section (2) ofsection ¹⁷⁶ of the said Act or in computing the.,adyance tax,, payable under Chapter XVII-C ofthe said Act, at the rate or rates in forie,_

(a) the netagricultural income shallbetaken into account, inthe manner provided in clause (b) [that is to say, as ifthe net agricurtural income were comprised inthe totar income after the first two rakh fifty thousand rupees ofthe total income but without being liable to taxl, only for fte purpose ofcharging or computing such income-tax or. as the case may be, "advance tax,' in respect ofthe total income; and

(6) such income-tax or, as the case may be,,,advance tax,'shall be so charged or computed as follows:-

(D the total income and the net agricultural income shall be aggregated and the amount ofincome-tax or,.advance tax,: shall be determined in respect of the aggregate income at the rates specified in.the said paragraph A, as ifsuch aggregale income were the total income;

(il) the net agricultural income shall be increased by a sum oftwo lakh fifty thousand rupees, and the amount of income-tax,or ..advance tax', shall be determined in respect ofthe net agricultural income as so increased al the rates specified in the said Paragraph A, as ifthe nel agricultural income were the total income;

(iir lhe amount ofincome-tax or.,advance tax,, determined in accordance with sub.clause (r) shall be reduced by the amount ofincome-tax or, as the case may be, "advance tax" determined in :iccordance with sub-clause (r, and the ..advance tax', sum so anived at shall be the income-tax or, as the case may be, in respect ofthe total income:

Provided that in the case ofevery individual, being a resident in Indi4 who is ofthe age of sixfy years or more but less than eighty years aI any time during the previous year. referred to in item (//) of Paragraph A ofPart III ofthe First Schedule, the provisions ofthis sub-section shall have effect as if ibr the words "two lakh fifty thousand rupees", the words "three lakh rupees" had been substituted:

Provided further that in the case ofevery individual, being a resident in India, who is ofthe age ofeighty years or more at anytime during the previousyeal refened to in item (1f) ofParagraph A of Pan III ofthe First Schedule, the provisions ofthis sub-section shall have effect as if for the words "two lakh fifty thousand rupees", the words ,.five lakh rupees" had

been subsrituted:

Provided also thal the amount of income-tax or "advance tax" so anived at, shall be increased by a surcharge for the purposes ofthe Union, calculated in each case, in the manner provided therein.

( //) The amount of income-tax as specified in sub-secrions (/) to (J) and as increased by the applicable surcharge, for the purposes ofthe Union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for the purposes ofthe Union, to be called the "Education Cess on income-tax", calculated at the mte ofhvo per cent. of such income-Iax and surcharge so as to fulfil the commitment ofthe Govemment to provide and finance universalised quality basic education.

(/2) The amount ofincome-tax as specified in sub-sections (,1) to (J) and as increased by the applicable surcharge, for lhe purposes ofthe Union, calculated in the manner provided therein, shall also be increased by an additional surcharge, for the purposes ofthe Union, to be called the "Secondary and Higher Education Cess on income-tax,', calcular;d at the rate ofone per cent. ofsuch income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance secondary and higher education.

⁴²⁴ (t⁶\ B*c.E trd[d, ftci* uqr zorr

( /J) The amount ofincome-tax as specified in sub-sections (4) to ( /0) and as increased by the applicable surcharge. for the purposes ofthe Union, calculated in the manner provided therein, shall be funher increased by an additional surcharge, for the purposes ofthe Union, to be called the "Health and Education Cess on income-tax", calculated at the rate offour per cent. ofsuch income-tax and surcharge so as to fulfil the commitment ofthe Covemment to provide and finance quality health services and universalised quality basic education and secondary and higher education:

Provided that nothing contained in this sub-section shall apply to cases in rvhich tix is to be deducted or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), ifthe income subjected to deduction oftax ar source orcollecrion oftax at source is paid to a domestic company and any other person who is resident in India.

(14 For the purposes ofthis section and the First Schedule,-

(a) "domestic company" means an Indian company or any other company which, in respect ofits income liable to income-tax under the Income-tax Act, for the assessment year commencing on the I st day ofApril, 201 8, has made the prescribed arrangements for the declaration and payment within India ofthe dividends (including dividends on prel'erence 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 ofpolicies ofinsurance);

(c) "net agricultural income" in relation to a person, means the total amount oi agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Pan IV ofthe First Schedule;

(/) 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-l0x

3. In section 2 ofthe lncome-tax Act,-

An)endment ol-scclion 2

(a) in clause (?2), after Explonation2,thefollowing Explanation shall be inserted, namely:--

" Explanation 24.-ln the case of an amalgamated company, the accumulated profits, whether capitalised or not, or loss, as the case may be, shall be increased by the accumulated profits, whether capitalised or not, of the amalgamating company on the date of amalgamation.";

(D) with effcct fiom the I st day ofApril, 2019,*

(i) in clause (21),-

(l) after sub-clause (.rii), the following sub-clause shall be inserted, namely:-

"(rila) the fair market value of inventory referred lo in clause (via) of section 28i';

(B) after sub-clause (xviia), the following sub-clause shall be inserted, namely:-

"(.piib) any compensation or other piryment referred to in clause (,ri) ofsub-section (2) ofsection 56;"1

s+$rq {qq{, ffi6 t4W2ols 424 (t7t (ti) in ctause (421),-

(A) tn Explanation l, in clause (r), after sub-clause (D), the following

sub-clause shall be inserted namely:-

"(ba) in the case of a capital asset referred to in clause (vla) of secrion ²⁸, the period shall be reckoned from the date ofits conversion or treatment;";

(B) in Explanation 4, for the words, brackets and figures ,,the Expldn(ltion to cla\se (.i8) ofsection I0,,, the words, brackets, letters and

' figures "clause (d) ofthe .Arp hnationto section I l2A,' shall be substituted.

⁴, ln section ⁹ ofthe Income-tax Act, in sub-section (.¹), in clause (i), with effect from Amendmenr

of section 9.

the lst day ofApril, 2019,-

(t) in Explanation²,for clause (a), ⁰re following clause shall be substituted, namely:_ "(a) has and habitually exercises in India, an authority to conclude contracts on behalf of the non-resident or habitually concludes contracts or habitually plays the principal role leading to concluiion of contracts by thar non-resident and the contracts are-

(i) in the name ofthe non-resident; or

(10 for the transfer ofthe ownership of, or for the granting ofthe right to use, propefty owned by that non-resident or that non-resident has the right to use; or

(iil) for the provision of sewices by the non-resident; or,';

(ll) after Explanation 2, the following Exp lonation shallbe inserted. namely:-

'Explanatio?2A.-For the removal ofdoubts, it is hereby clarified that the significant economic presence of a non-resident in India shall constitute "business connection" in India and "significant economic presence" for this purpose, shall mean-

(a) transaction in respect ofany goods, services or property canied out by a non-resident in India including provision ofdownload ofdata or software in India, ifthe aggregate ofpayments arising tiom such transaction or transactions during the previous year exceeds such amount as may be prescribed; or

(b) systematic and continuous soliciting of business acrivities or engaging in interaction with such number ofusers as may be prescribed, in India through digital means:

Provided that the transactions or activities shall constitute significant

economic presence in India, whether or not,-

(i) the ageement for such tmnsactions or activities is entered in India;

(ii) the non-resident has a residence or place ofbusiness in India; or (il, the non-resident renders services in lndia:

Provided further that only so much of income as is aftributable to the transactions or activities referredto in clause (a) or clause (6) shall be deemed to accrue or arise in India.'.

5. ln section l0 ofthe Income-tax Act,-

Amendment of section l0 (a) after clause (6C), the following clause shall be inserted, namely:*

"(6D) any income arising to a non-resident, not being a company, or a foreign company, by way ofroyalty from, or fees fortechnical services rendered in or outsjde India to, the National Technical Research Organisation;"; (b) witheffect from the lst day ofApril,20l9,-

(i) in clause (/21), for the word "employee", the word "assessee" shall be

substitutedi

424 (r⁸) Bdn.rq {rd'rd, ttiq r,tqq zotr

(il) in clause (zJC), after the twelfth proviso [as insened by section ⁶ of

the Finance Act, 20171, the following proviso shall be inserted, namely:- 1of2oti. 'Provided also that for the purposes of determining the amounl of application under item (4) of lhe third proviso, the provisions of sub-clause (la) ofclause (a) ofsection 40 and sub-sections (3) and (31) of section 40A, shall, mutatis mutandis, apply as they apply in computing the income chargeable under the head "Profits and gains of business or profession":';

(iir) in clause (.i8), after the third proviso, the following proviso shall be

inserted. namely:-

"Provided also that nothing contained in this clause shall apply to any income arising from the transfer of long-term capital asset, being an equity share in a company or a unit ofan equity oriented fund or a unit of a business trust, made on or after the I st day ofApril, 20 I 8.";

both the places where they occur, the words ", or a class thereofl' shall be insertedi

A men dmenl

ol sectio[ 16. April.20l9. namely:-

8, tn section l7 ofthe tncome-tax Act, in clause (2), in the proviso occurring afler

sub-clause (vili), clause (v) shall be omitted with effect from the I st day ofApril, 2019'

9, In section 28 ofthe lncome'taxAct, with effecl from the lst day ofApril,20l9'-

Amendmenl of scction 28.

namely:-

"(e) any person, by whatever name called, at or in connection with the . termination or the modification of the terms and conditions, of any contracl

"(via) the fair market value of inventory as on the date on which it is ' "(Jviii) marked to market loss or other expected loss ascomputed in accordance with the income computation and disclosure standards notified under sub-section (2) ofsection 145.".

Bd€rc {rdq-d, ftci66 rlqi zote

424 (tel ll. In section ⁴⁰A of the lncome-tax Act, after sub-section (/²) [as omitted by l⁸ ol lee2 section I ⁷ ofthe Finance Act, ¹⁹⁹²¹, the following sub-section shallbe inserted and shallbe

Amendment of section 40A.

deemed to have been inserted with effect from the I st day ofApril, 2017, namely:_

"(/J) No deduction or allowance shall be allowed in respect ofany narked to market loss or other expected loss; except as allowable under clause (xvlil) of sub-section (/) ofsection 36.".

¹². In section ⁴³ oflncome-tax Act, with effect ilom the I st day ofApril, 2019,_

Amendmenl of section 43.

(i) in clause (/), after Explanation I,the following Explanatior shallbe insened, namely:-

"Explanation lA.-Where a capital asset referred to in clause (via) of section 28 is used for the purposes ofbusiness or profession, the actual cost of such asset to the assessee shall be the fair market.value which has been taken into account for the purposes ofthe said clause.,';

(ii) in clause (J), after the proviso and beforc Expldnatioh l, the following proviso shall be inserted, namely:-

"Provided funherthat for the purposes ofclause (e) ofthe first proviso, in respect of trading in agricultural commodity derivatives, the requirement of chargeability of I ? 01 2013 commodity transaction tax under Chapter VI I ofthe Finance Act, 2013 shall not apply.".

13. After section 43A ofthe Income-tax Act, the following section shall be inserted and shall be deemed to have been insened with effect from the I st day ofApril, 2017, namely:-

lnsertion of n€w section 43AA.

Taxation of foreign exchange fluctuation, "43AA. (/) Subject to the provisions ofsection 43A, any gain or loss arising on account of any change in foreign exchange rates shall be treated as income or loss, as the case may be, and such gain or loss shall be computed in accordance with the income computation and disclosure standards notified under sub-section (2) ofsection 145.

(2) For the purposes ofsub-section (/), gain or loss arising on account ofthe effects ofchange in foreign exchange rates shall be in respect ofall foreign currency transactions, including those relating to-

(l) monetary items and non-monetary.items;

(i, translalion of financial statements of foreign operationil

(i,) forward exchange contracts;

(lv) foreign cunency translation reserves.".

14. In section 43CA ofthe I ncome-tax Act, with effect from the I st day ofApril, 2019,- Amendment of section 43CA, (a) in sub-section (1), the following proviso shall be inserted, namely:-

"Provided that where the value adopted or assessed or assessable by the authority for the purpose ofpayment ofstamp duty does not exceed one hundred and five per cent. of the consideration received or accruing as a result of the transfer, the consideration so received or accruing as a result ofthe transfer shall, foi the purposei of computing profits and gains from transfer of such

. asset, be deemed to be the full value ofthe consideration."; ' (A) ln sub-section (4), for fte words "by any mode other lhan cash", the words lby way of an account payee cheque or an account payee bank draft or by use of electronic clearing system through a bank account" shall be substituted.

15. After section 43CA ofthe Income-tax Act, the following section shall be insened and shall be deemed to have been inserted with effect ftom the I st day ofApril, 2017, namely:-

lnsertion of new section 43CB

Compuiation of income fiom '?3CB. ( /) The profits and gains arising from a consfuction contracl or a contract for providing services shall be determined on the basis of percentage of completion method in accordance with the income computation and disclosure standards notified under sub-section (2) ofsection 145:

⁴²⁴ (²⁰) B-dgrrs {rqq-d, Qci* ruqr zorr

Provided that profits and gains arising from a contract for providing services,- (i) with duration ofnor morc than ninety days shall be determined on the basis of project completion method;

(li) involving indeterminate number ofacts over a specific period oftime shall be determined on the basis ofstraight line method.

(2) Forthe purposes ofpercentage ofcompletion method, project completion method or straight line method referred to in sub-section (,lF

(i) the contract revenue shall include retention money;

(li) the contract costs shall not be reduced by any incidental income in the nature of interest, dividends or capital gains.".

ADcndme r o l' I 6. in section 44AE ofthe Income-tax Act, with effect flom the I st day ofApril, 2019,- (a) for sub-section (?), the following sub-section shall be substituted, namely:-

"(2) For the purposes ofsub-section (/), the profits and gains from each goods carriage,-

(i) being a heavy goods vehicle, shall be an amount equal to one thousand rupees per ton of gross vehicle weight or unladen weight, as the case may be, 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 eamed from such vehicle. whichever

is higher;

(il) other than hearry goods vehicle, shall be an amount equal to seven thousand five hundred rupees for every month or pan ofa 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 goods carriage, whichever is higher.";

' (bl in the Explanation, for c lause (a), the following clauses shall be substituted,

narnelS:

'(a) the expressions "goods caniage", "gross vehicle weight" and "unladen weighf' shall have the respective meanings assigned to them in section 2 ofthe

59 ot 1988.

Motor VehiclesAcr, 19881

(aa) the expression "heavy goods vehicle" means any goods carriage, the gross vehicle weight ofwhich exceeds 12000 kilograms;'.

Amendnen r 17. In section 47 of the lncome-tax Act, after clause (vliaa) [as inserted by section ²³ ol section 47. ofthe F inance Act, 20 I ?1, the fo llowing c lause shall be inserted with effect from the lstday 7 of20l7.

ofApril, 2019, namely:-

'(viiab) any transfer ofa capital asset, being-

(a) bond or Global Depository Receipt referred to in sub-section (/) of section I l5AC; or

(b) rupee denominated bond ofan Indian company; or

made by a non-resident on a recognised stock exchange located in any lntemational Financial Services Centre and where the consideration for such transaction is paid or payable in foreign currency.

Erplunation.- For the purposes of this clause,-

(a) "lnternational Financial Services Centre" shall have the meaning

assignedto it in clause (g)ofsection 2 ofthe Special Economic ZonesAct,2005l 28of200s.

(b) "recognised stock exchange" shallhave the meaning assignid to it in clause (ii) of Explanarion I to clause (J) ofsection 43;

Edsnq rts[d, k
424 (ztl (c) "derivative" shall have the meaning assigned to it in clause (ac) of -¹² ol I956

section ² ofthe Securities Contracts (Regulation) Act, 1956.'.

¹⁸. In section 48 ofthe Income-tax Act, after the second proviso, the following proviso Amendment of section 48.

shall be insened, namely:-

"Provided also that nothing contained in the first and second provisos shall apply to the capital gains arising from the transfer ofa long-term capital asset being an equity share in a company or a unit ofan equity oriented fund or a unit ofa business trust referred to in section I l2A:".

19. ln section 49 ofthe Income-tax Act, after sub-section (8), the following Amendment of section 49.

sub-section shall be insened with effect ftom the tst day ofApril,2019, namely:-

"(9) Where the capital gain arises from the transfer ofa capital asset referred to in clause (via) ofsection 28, the cost ofacquisition ofsuch assel shall be deemed to be the fair market value which has been taken into account for the purposes ofthe said clause.".

of setion 50C 20. In section 50C ofthe Income-tax Act, in sub-section (/), after the second proviso, the followiirg proviso shall be insened with effect from the I st day ofApril, 2019, namely:-

"Provided also that where the value adopted or assessed or assessable by the stamp valuation authority does not exceed one hundred and five per cent. of the consideralion received or accruing as a result of the transfer, the consideration so received or accruing as a result ofthe transfer shall, for the purposes ofsection 48, be deemed to be the full value ofthe consideration.".

21. ln section 54EC ofthe Income-taxAcl, with effect from the lst day ofApril, 2019,- (a) in sub-section (/), after the words "long-term capital asset", the words

Amendment of section 54EC.

", being land or building or both," shall be inserted;

(b) in sub-section (2), before the Explanation, the following proviso shall be insened. namely:-

'Provided that in case of long-term specified asset refened to in sub- clause (ri) of clause (Dc) of the Explanation occuning after sub-section (J), this sub-section shall have effect as if for the words "three years", the words "five years" had been subslituled.';

(c) in the Explanation occurring after sub-section (3), for clause (6a), the following clause shall be substituted, namely:-

'(ba) "long-term specified asset" for making any investment under this section,-

(r) on or after the lst day ofApril, 2007 but before the lst day of April, 2018, means any bond, redeemable after three years and issued on or after the I st day ofApril, 2007 but before the I st day ofApril' 2018;

(ir) on or after the I st day ofAPril, 2018, means any bond, redeemable after five years and issued on or after the lst day ofApril, 2018,

68 of 1988 I of 1956.

by the NationalHighways Authority oflndia constituted undersection 3 ofthe National Highways Authority of India Act, 1988 or by the Rural Electrification Corporation Limited, a company formed and registered under the Companies Act, 1956 or any other bond notified in the Official Gazette by the Central Government in this behalf.'.

22. In section 55 of the Income-tax Act, in sub-section (2), after clause (aD), the Amendment of section 55- following clause shall be insened, namely:-

'(ac) subject to the provisions of sub-clauses (,) and (ir) ofclause (6), in relation to a long-term capital asset, being an equity share in a company or a unit ofan equity oriented fund or a unit ofa business trust referred to in section I l24, acquired before the lst day ofFebruary, 2018, shall be higher of-

(i) the cost of acquisition of such asset; and

424 (22!.

y+€rrE 1rqq", fu6 l4W 2ol8

(li) lower of-

(l) the fair market value ofsuch asset; and (B) the full value ofconsideration received or accruing as a repult of the transfer ofthe capital asset.

Explqnqlion.-For the purposes of this clause,-

(a) "fair market value" means,-

(l) in a case where the capital asset is listed on any recognised stock exchange as on the 3lst day of January 2018, the highest price ofthe capital asset quoted on such exchange on the said date:

Provided that where there is no trading in such asset on such exchange on the 3 Ist day ofJanuary, 2018, the highest price ofsuch asset on such exchange on a date immediately preceding the 3 I st day ofJanuary, 2018 when such asset wds traded on such exchange shall be the fair market value;

(il) in a case where the capital asset is a unit which is not listed on a recognised stock exchange as on the 3lst day ofJanuary 2018, the net asset value of such unit as on the said date;

(iii) in a case where the capital asset is an equity share in a company which is-

(,4) not listed on a recognised stock exchange as on the 3lst day ofJanuary 2018 but listed on such exchange on the date of transfer:

(B) listed on a recognised stock exchange on the date oftransfer and which became the property ofthe aisessee in consideration of share which is not listed on such exchange as on the 3lst day of January, 201 8 by way oftransaction not regarded as transfer under section 47,

an amount which bears to the cost ofacquisition the same proportion as ' Cost lnflation Index for the financial year 2017-2018 bears to the Cost lnflation Index for the firstyear in which the asset was held bythe assessee or for the year beginning on the first day ofApril,2001, whichever is later;

(b) "Cost lnflarion lndex" shall have the meaning assigned to it in clause (v) of the Explqnalio, to section 48;

(c) "recognised stock exchange" shall have the meaning assigned to it in clause (ii) of Explanarlor I to clause (J) ofsection 43,'. Amcndlncnr 23. ln section 56 ofthe Income-tax Act, in sub-section (?),- ol secrion 56. (,4) in clause (x),_

(0 in sub-clause (6), for item (8), the following item shall be substituted with effect from the lst day ofApril,20l9, namely:-

"(B) for a consideration, the stamp duty value of such property as exceeds such consideration, ifthe amount ofsuch excess is more than the higher ofthe following amounts. namely:-

(i) the amount of fifty thousand rupees; and

(ii) the amount equal to five per cent. ofthe consideration:"; (i4 in the founh proviso, in clause (/X), after the words, brackets and figure "clause (r) oC', the words, brackets and figures "clause (rv) or clause (v) or" shall be inserted;

(B) after clause (r), the following clause shall be insened with effect from thb lst day ofApril,20l9, namely:-

"(rr) any compensation or othetpayment, due to orreceived by any person, by whatever name called, in connection with the termination ofhis employmenl or the mbdification ofthe terms and conditions relating thereto.".

uderrq {rn({, ftria rnqr zolr

424 (23) 24. ln section 79 ofthe Income-tax Act [as substiruted by section 32 ofthe Finance

7 ol 20l7.

of seclioll 79.

Act, 2017]. after the second proviso, the following proviso shall be insened, namely:_

il ol'2016.

"Provided also that nothing contained in this section shall apply to a company where a change in the shareholding takes place in a previous year pursuant to a resolution plan approved under the lnsolvency and Bankruptcy Code; 2016. after affording a reasonable opportunity of being heard to the jurisdictional principal Commissioner or Commissioner.".

25. For section 8oAC ofthe Income-tax Act, the following section shall be substitured,

narnell:-

Substirurion oI new seqion tbr section 8oAC.

'80AC. Where in computing the total income of an assessee of any previous Deduction not to be allorYed year relevant to the assessment year commencing on or after-

unless return

llrnashed.

(r) the lst day ofApril,2006 but before the lst day ofApril, 2018, any deduction is admissible under section 80-lA or section 80-lAB or section g0-lB or section 80-lC or section 80lD or section 80-lE;

(ii) the lst day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading "C.-Deductions in respect ol certqin incomes",

no such deduction shall be allowed to him unless he furnishes a retum of his income for such assessment year on or before the due date specified under sub-section (.1) of section 139.'.

²⁶. ln section ⁸⁰D ofthe Income-tax Act, wilh effect from lhe I st day ofApril, 2019,- Amendmgnt of section 80D (.J ) in sub-secrion (2).-

(l) for the words "thirty thousand rupees" wherever they occur, the words

-fift1 thousand rupees" shall be substiruted:

(ll) in the first proviso occurring after clause (d), the word "very" shall be

om itred:

(B) in sub-section (.1),-

(l) for the words "thirty thousand rupees" al both the places where they

occur, the words "fifty thousand rupees" shall be substituted;

(l/) the word "very" shall be omined;

(l) the words "or a very senior citizen" shall be omitted; (ii) for the words "thirty thousand rupees", the words "fifty thousand

rupees" shall be substituted;

(D) after sub-section (4), the following sub-section shall be inserted, namely:- '(⁷,⁴) Where the amount specified in clause (a) or clause (b) of sub-section (2) orclause (a) ofsub-secrion (-i) is paid in lump sum in the previous year to effect or to keep in force an insurance on the health of any person specified therein for more than a year, then, subject to the provisions of this section, there shall be allowed for each ofthe relevant previous year, a deduction equal to the appropriate fraction ofthe amount.

Explanqtion.-Fot the purposes of this sub-section,-

(i) 'lappropriate fraction" means the fraction, the numerator ofwhich is one and the denominator ofwhich is the total number ofrelevanl previous yearsl

(il) "relevant previous year" means the previous year beginning with the previous year in which such amount is paid and the subsequent previous year or years during which the insurance shall have effecf or be in force.';

⁴²⁴ (²⁴¹ B+€Ird {rqqa, Eri* rlEr zors

(E) in the Explanation occurring after sub-section (J), clause (ir) shall be omined. 27. In section 80DDB ofthe lncome-tax Act, with effect from the lst dav of April,2019,-

Amendment of seclion 8ODDB.

(a) in the third proviso, for the words "sixty thousand rupees',, the words,.one hundred thousand rupees" shall be substitutedi

(6) the founh proviso shall be omitted;

28. In section 80lAC ofthe lncome-tax Act,inthe Explanation below sub.section (-l),- (a) for clause (i), the following clause shall be substituted, namely:-

A mendment of section 80- rAC.

'(l) "eligible business" means a business carried out by an eligible start up engaged in innovation, development or improvement ofproducts or processes or services or a scalable business model with a high potential of employmenr generation or wealth creationi'i

(b) in clause (ii),-

(r) in sub-clause (a), for the figures "20l9", the figures "202l" shall be substituted:

(ii) in sub-clause (b), for the words, figures and letters "in any of the previous years beginn ing on or after the I st day ofApril, 2016 and ending on the 3l st day of March, 2021'', the words, brackets and figure "in the previous year relevant to the assessment year for which deduction under sub-section (,1) is claimed" shall be substituted.

29. ln section 8oJJAA of the Income-tax Act, in the Explanation occurring after sub-section (2), in clause (ir), with effect from the lst day ofApril, 2019,-

Amen dment ol section SOJIAA

(a) in the proviso, after the words "manufacturing of apparel", the words "or footwear or leather products" shall be inserted;

(b) afterthe proviso, the following proviso shall be inserted, namely:-

"Provided further that where an employee is employed during the previous year for a period of less than two hundred and forty days or one hundred and fifty days, as the case may be, but is employed for a period of rwo hundred and forty days or one hundred and fifty days, as the case may be, in the immediately succeeding year, he shall be deemed to have been employed in the succeeding year and the provisions ofthis section shall apply accordinglyi'.

lnserlion ol'

30. After section 80P ofthe lncome-tax Act, the following section shall be inserted with effect from the I st day ofApril, 2019, namely:-

S()PA

Deduction in respect of certain income of Producer Companies.

'80PA. (/) Where the gross total income of an assessie, being a Producer Company having a total tumover ofless than one hundred crore rupees in any previous yeaq includes any profits and gains derived from eligible business, there shall, in accordance with aid subject to the proyisions ofthis section, be allowed, in computing the total income of the assessee, a deduction of an amount equal to one hundred per cent. of the profits and gains attributable to such business for the previous year releyant to an assessment year commencing on or after the I st day ofApril,20l9, but before the I st day ofApril, 2025.

(2) In a case where the assessee is entitled also to deduction under any other provision of this Chapt€r, the deduclion under this section shall be allowed with reference to the income, ifany, as refened to in this section included in the gross total income as reduced by the deductions under such other provision of this Chapter.

Explanqtion.-por lhe purposes of this section,-

(i) "eligible business" means-

(a) the markeiing ofagricgltural produce grown by the members; or

424 (25\ L BdqrG{sqe, ftri* uqr zorr

' (b) the purchase ofagricultural implements, seeds, livestock orother . articles intended for agriculture for the purpose ofsupplying them to the

members;or

' (1i) "member" shall have the meaning assigned to it in clause (d) of

seclion 581A ofthe CompaniesAct, 1956;

I ol l956.

(iii) "Producer Company" shall have lhe meaning assigned to it in

clause (/) ofsection 581A ofthe Companies Act, 1956.'.

I ol l956.

Amendment of section 8 OTTA.

31. In seclion 80TTA ofthe lncome-taxAct, in sub-section (,I), in the open ing portion, after the word "assessee", the brackets, words, figures and letters "(other than the assessee referred to in section 80TTB)" shall be inserted with eflect from the I st day ofApril, 2019.

lnsertion of 32. Atier section 80TTA ofthe lncome-taxAct, the following section shall be inserted

with etlect fiom the I st day ofApril,20l9, namely:-

8OTTB, '80TTB. ( /) Where the gross tolal income ofan assessee, being a senior cilizen,

includes any income by way of interest on deposits with-

l0 o1 19.19.

(() a banking companyto whichthe Banking RegulationAct, 1949, applies (including any bank or banking institution referred to in section 5 I ofthat Act);

Deduction in respect of rnlercst on deposits in case of senior citizens.

(b) a co-operative society engag€d in carrying on lhe business ofbanking (including a co-operative land mortgage bank or a co-operatiYe land deYelopment

bank)t or

6 ol 1898.

OffiieAct, 1898,

there shall, in accordance with and subject to the provisions ofthis section, be allowed, in computing the total income ofthe assessee, a deduction-

(r) in a case where the amount of such income does not exceed in the

aggregate fifty thousand rupees, the whole of such amount; and

(li) in any other case, fifty thousand rupees.

(2) Where the income refened.to in sub-section (/) is derived fiom any deposit held by, or on behalfof, a firm, an association ofpersons or a body ofindividuals, no deduction shall be allowed under this section in respect ofsuch income in computing the total income ofany partner ofthe firm or any member ofthe association or any individual ofthe body.

Explanation.-Ior the purposes of this section, "senior citizen" means an individual resident in India who is ofthe age ofsixty years or more at any time during the relevant previous year.'. 33. After section I I2 ofthe tncome-taxAct, the following section shall be inserted with

effect from the I st day ofApril,20l9, namely:-

Inserlion of new section I t2A.

' I l2A. (/) Notwithstanding anything contained in section I ¹², the tax payable by an assessee on his total income shall be determined in accordance with the provisions ofsub-section (2), iF

Tax on long- term capital gains in certain cases.

(r) the total income includesany income chargeable underthe head "Capital

gains";

(ii) the capital gains arise liom the transfer of a long-term capital asset being an equity share in a company or d unit ofan equity oriented fund or a unit of a business trust;

(lli) securities transaction tax under Chapter VII of the Finance (No.²)

2i o12004.

Act, 2004 has.-

(a) in a case where the long-term caPital asset is in thenature ofan equity share in a company, been paid on acquisition and transfer ofsuch capital asset; or

⁴²⁴ (²⁶¹ BRft€rE trdqe, frqi+ rlqr zore

(b) in a case where the long-term capital asset is in the nature ofa unit ofan equity oriented fund or a unit ofa business trust, been paid on transfer of such capital asset.

(?) The tax payable by the assessee on the total income referred to in

sub-section (/) shall be the aggregate of--

(l) the amount of income-tax calculated on such long-tenn capital gains

exceeding one lakh rupees at the rate of ten per cent.; and

(,i) the amount of income-tax payable on the total income as reduced by the amount oflong-term capital gains referred to in sub-section ( /) as ifthe total income so reduced were the total income ofthe assessee:

Provided that in the case ofan individual or a Hindu undivided family, being a resident, where the total income as reduced by such long-term capital gains is below the maximum amount which is not chargeable to income-tax, then, the long-term capital gains, for the purposes ofclause (l), shall be reduced by the amount by which the total income as so reduced falls short ofthe maximum amount which is not chargeable to

income-tax.

(.r) The condition specified in clause (iii) ofsub-section (,1) shall not apply to a transfer undertaken on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transfer is received or receivable in foreign currency.

(-l) The Central Covernment may, by notification in the OflicialCazette, specify the nature ofacquisition in respect of which the provisions of sub-clause (a) of clause (lll) of sub-section ( /) shall not apply.

(5) Where the gross total income ofan assessee includes any long-term capilal gains referred to in sub-section ( /), the deduction under Chapter VI-A shall be allowed from the gross total income as reduced by such capital gains.

(6) Where the total income of an assessee includes any long-term capiral gains ret'erred to in sub-section (/), the rebate under section 87A shall be allowed from the income-tax on the total income as reduced by tax payable on such capital gains.

Explo nat ion.-For the purposes of this section,-

(a) "equity oriented fund" means a fund set up under a scheme ofa mutual

lirnd specified under clause (23D) ofsection l0 and,-

(D in a case where the fund invests in the units of another fund

which is traded on a recognised stock exchange,-

(l) a minimum ofninety per cent. ofthe total proceeds ofsuch

fund is invested in the units ofsuch other fundt and

(B) such other fund also invests a minimum ofninety per cent. of its total proceeds in the equity shares of domestic companies listed on a recognised stock exchange; and

(il) in any other case, a minimum ofsixty-five per cent. ofthe total proceeds of such fund is invested in the equity shares of domestic companies listed on a recognised stock exchange:

Provided that the percentage ofequity shareholding or unit held in respect ofthe fund. as the case may be, shall be computed with reference to the annual average of the monthly averages of the opening and closing figures;

(b) "lntemational Financial Services Cenre" shallhave the meaning assigned to it in clause (g) ofsection 2 ofthe Special Economic ZonesAct, 2005: ²⁸ oi ²⁰⁰⁵ (c) "recognised stock exchange" shall have the meaning assigned to il in claul€ (ii) of Explanclion I to clause (5) ofsection 43.'.

yffisrrd rrdrd, ftrim uEr rorr

424 (271

Amendment 34. In section I l5AD ofthe lncome-tax Act, in sub-section (/), with effect from the I st day of April, 2019,-

I tsAt) (.r) in clause (iii), the word "and" occurring at the end shall be omitted;

(b) after clause (iir), the following proviso shall be inserted, namely:-

"Provided lhat in case of income arising from the transfer ofa long+erm capital asset refered to in section I l2,{, income-tax at the rate often per cenl. shall be calculated on such income exceeding one Iakh rupees; and".

Amendment of seclion I I5BA, 35. In section I I 5 BA of the Income-tax Act, in sub-section ( /), for the words. figures and letter "proyisions of section I I I A and section I 12". the words "other provisions ofthis Chapter" shall be substituted and shall be deemed to have been substituted with effect from the lst day ofApril,20l7.

Amendment of section I I5BBE, 36. In section I I 5BBE ofthe Income-tax Act, in sub-section (2), after the word, brackets and letter "clause (rD", the words, bmckets and letter "and clause (b)" shall be inserted and shall be deemed to have been insened with effect flom the I st day ofApril, 20 l7.

37. In section I I 5JB ofthe lncome-tax Act,-

Amendment of section I I5JB, (u) rn Explanation l,-

(,⁴ ) after clause (lig), the following clause shall be inserted, namely:-

'(lir) the aggregatd amount of unabsorbed depreciation and loss brought forward in case of a company against whom an application for corporate insolvency resolution process has been admitted by the , Adj udicating Authority under section ⁷ or section ⁹ or section I ⁰ of the Insolvency and Bankruptcy Code, 2016.

3l ol 2016.

Explanalion.-For the purposes of this clause, the expression ' "Adiudicating Authority" shall have the meaning assigned to it in llol 20l6

clause (,1) ofsection 5 ofthe lnsolvency and Bankuptcy Code, 2016 and the loss shall not include depreciation; or';

(B) in clause (iii), after the words "books ofaccount", the words. brackels, . ligures and letter "in case ofa company other than the company refered to in clause (irh)" shall be inserted;

(b) aft,er Explanation 4, the following Explanation shallbe insened and shall be deemed to have been inserted with effect fiom the lst day ofApril, ²⁰⁰¹. namely:-

"Explanalion 4A.-For the removal ofdoubts, it is hereby clarified that the provisions ofthis seclion shall not be applicable and shall be deemed never ro have been applicable to an assessee, being a foreign company, where its total income comprises solely of profits and gains from business referred to in section 448 or section 44BB or section 44BBA or section 44BBB and such income has been offered to tax at the rates specified in those sections.". 38. ln section ll5JC of the lncome-tax Act, after sub-section (3), the following Amendment of secrion I l5JC.

sub-section shall be inserted with effect from the lst day ofAPril, ²⁰¹⁹, namely:-

'(4) Notlvithstanding anything contained in sub-section (/), where the person refered to therein, is a unit localed in an lntemational Financial Services Centre and derives its income solely in convertible foreign exchange, the provisions of sub-section (1) shall have effect as if for the words "eighteen and one-halfper cent ". the words "nine per cent." had been substituled.'. 39. ln section ll5JF of the Income-tax Act, with effect from the lsl day of AmeodmeDt of section I l5JF April,20l9.

(l) for clause (6), the following clause shall be substituted, namely:-

'(b) "altemate minimum tax" means the amount oftax computedon adjusted total income,-

424 (²⁸') EdqJrq {MTd, fr{isi l4W 2ol8

(r) in case ofan assessee being a unit referred to in sub-section (4) ofsection t t5JC, at a rate ofnine per cent.;

(i,) in any other case, at a rate of eighteen and one-halfper cenl.;';

(ir) after clause (6), the following clauses shall be inserted, namely:-

'(ba) "convenible foreign exchange" means a foreign exchange which is for the time being tr€ated by the Reserve Bank oflndia as convertibl€ foreign exchange for the purpose ofthe Foreign Exchange ManagementAct, l999and 42or t999.

the rules made thereunder;

28 ol 2oos' (bb) "lnternational Financial Services Centre" shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act,2005;'; (ii) after clause (d1, the following clause shall be inserted, namely:-

'(e) "unit" means a unit established in an International Financial Services . Cenre.'.

Amendmenr 40. In section I l5-O ofthe tncome-taxAct,- ol sectionil$-' (a) in sub-section (,¹), the following proviso shall be inserted, namely:-

"Provided that in respect of dividend referred to in sub-clause (e) of clause (22) of section 2, this sub-section shall have effect as if for the words "fifteen per cent.", the words "Ihirty per cent." had been substituted;';

(b) in sub-section (/8), the following Proviso shall be insened, namely:-

"Provided that this sub-section shall not apply in respect of dividend referred to in sub-clause (e) ofclause (22) ofsection 2."

omission of 41. After section I l5Q ofthe Income-tax Act, the Explanarion shall be omitted.

occurring afler section I I iQ.

ol'section

Amendment 42.In section I l5 R ofthe Income-tax Act, in sub-section (2),- ;i;i:"-' lA) for clause (r) to clause (iir, the following clauses shall be substituted, ' namelY:-

"(i) twenty-five Per cent. on income distributed to any person being an individualora Hindu undivided familybyamoney market mutualfund or a liquid fund;

(i,) thirty per cent. on income distributed to any other person by a money markel mutual fund or a liquid fund;

(iii) ten percent. on income distributed to any person by an equiry oriented lund;

(rv) twenty-five per oent. on income distributed to any person being an individual 9r a Hindu undivided family by a fund other than a money market mutual fund or a liquid fund or an equity oriented fund; and

i (v) thirty per cent. on income distributed to any other person by a fund other than a money market mutual fund or a liquid fund or an equify oriented fund:";

(B) in the second proviso, clause (6) shall.be omitted. Amendmenr 43. In the Explanation occurring after section ll5T ofthe Income-Iax Act, for of seclion clause (6), the following clause shall be substituted, namely:-

I l5T.

'(b) "equity oriented fund" means a fund referred lo in clause (a) 9f the Etplqndtion lo section I l2A and the Unit Scheme, ¹⁹⁶⁴ made by the Unit-Trust of lndial'.

ydaq {Brd, ftcis uqruora 424 (2e) 44. ln section l39Aofthe Income-tax Act,-

Amendment of section 139A.

(,4) in sub-section (/),-

(a) in clause (lv), the word "or" shall be insened at the end;

(b) after clause (rv), the following clauses shall be inserled, namely:-

"(v) being a resident, other than an individual,.which enters into a financial transaction ofan amount aggregating to two lakh fifty thousand rupees or more in a financial Year; or

(vr) who is the managing director, director, partner, trustee, author, founder,larla, chiefexecutive olficer, principalofficer or office bearer of the person refened to in clause (v) or any person competent to act on behalfofthe person refened to in clause (v),";

(B) in the Erptanalion occurring after sub'section (8), in clause (c), the words "and issued in the iorm ofa laminated card" shall be omitted. 45. ln section l40ofthe Income+ax Act, in clause (c), in the second proviso,-

Amendment of section 140.

(,4) in clause (6), after the words "principal omcer thereof;" occurring at the end. the word "or" shall be insened;

(B) after clause (b), the following shall be insened, namely:-

ll i)1 2016.

'(c) where in respect ofa company, an application for corporate insolvency resolulion process has been admitted by the Adjudicating Authority under section 7 or section 9 or section l0 ofthe lnsolvency and Bankruptcy Code, 2016, the retum shall be verified by the insolvency professioml appointed by such Adjudicating AuthoritY.

Explanalion.--For the purposes of this clause the expressions "insolvency professional" and "Adjudicating Authority" shall have the respeclive meanings assigned to them in clause (/⁸) ofsection ³ and clause (/) ofsection 5 ofthe lnsolvency and Bankruptcy Code, 2016;'.

ll ol2016

46. ln section 143 ofthe lncome-tax Act,-

Amendmenl of section 143 (a) in sub-section (/), in clause (a), after the second proviso, the following proviso shall be insened, namelY:-

scale and functional specialisation;

(c) introducing a team-based assessment with dynamic jurisdiction' Proyided that no direction shall be issued after the ³ I st day ofMaroh, 2020'

⁴²⁴ (³⁰) Effis{E {Mq-d, fr{isi 14W 2or8

(3Q Every notification issued under sub-section (-il) and sub-section (.lB) shall, as soon as may be after the notification is issued, be laid before each House ofParliament.'.

Substil$tion ol'

47. For section l45A ofthe I ncome-tax Act, the following sections shall be substituted and shall be deemed to have been substituted with effect from the lst day ofApril,20l7, namely:

l4iA and l.liU lor sccrion 145A.

'145A. For the purpose of determining the income chargeable under the head Merhod of accoun0lr8 in

*Profits and gains of business or profession",-

(i) the valuation of inventory shall be made at lower ofactual cost or net realisable value computed in accordance with the income computation and disclosure standards notified under sub-section (2) of section 145;

(li) the valuation ofpurchase and sale ofgoods or services and ofinventory shall be adjusted to include the amount ofany tax, duty, cess or fee (by whatever name called) actually paid or incuned by the assessee to bring the goods or services to the place of its location and condition as on the date of valuationl (iii) the inventory being securities not listed on a recognised stock exchange, or lisled but notquoted on a recognised stock exchange with regularity fiom time to time, shall be valued at actual cost initially recognised in accordance with the income computation and disclosure standards notified under sub-section (2) ofsection 145;

(lv) the inventory being securities other than those referred to in clause (iii), shall be valued at lower of actual cost or net iealisable value in accordance with the income computation and disclosure standards notified under sub-section (2) ofsection 145:

Provided that the inventory being securities held by a scheduled bank or public financial institution shall be valued in accordance with the income computation and disclosure standards notified under sub'section (2) of section 145 after laking into account the extant guidelines issued by the Reserve Bank oflndia in this regard:

Provided further that the comparison of actual cost and net realisable value ofsecurities shall be made category'wise.

Explanalion t.-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.

Explanation 2.-For the Purposes of this section,-

(a) "public financial institution" shall have the meaning assigned to it in clause ( 72) of section 2 oflhe Companies Act, 201 3; I8 ol'2013 (b) "recognised stock exchange" shall have the meaning assigned . to it in clause (ii) ofErplanqtion I to clause (J) ofsection ⁴³;

(c) "scheduled bank" shall have the meaning assigned to it in clause (ir) ofthe Erp lqndt ion lo clau'se (viia) ofsub-section (/) ofsection ³⁶.

'la,\ability of ce atn inoome.

1458. (/) Notlvithstanding anything to the gontrary contained in section 145, the interest received by an assessee on any compensation or on enhanced compensation, as lhe case may be, shall be deemed to be the income ofthe previous year in which it is received.

424 (3tl

B*srrq rlq[d, fci$ uq{ zora

(3) The income referred to in sub-clause (rvlu) ofclause(24) ofsection2 shall be deemed to be the income ofthe previous year in which it is received, ifnot charged to income-tax in any earlier previous year.,..

Amendment of section t 93.

48. ln section ¹⁹³ ofthe Income-taxAct, in the proviso, in clause (iv), in the proviso, aflerthe figures, words and brackels "8% Savings (Taxable) Bonds,2003',, the words, figures and brackets "or 7.75% Savings (Taxable) Bonds, 2018" shall be inserted.

49. In section l94A ofthe Income-tax Act, in sub-section (J), in clause (r), after the second proviso, the following shall be inserted, namdly:-

Amendment of section 194A.

'Provided also that in case of payee being a senior citizen, the provisions of sub-clause (a), sub-clause (6), and sub-clause (c) shall have effect as if for the lvords "ten thousand rupees", the words "fifty thousand rupees,' had been substituted.

Explanolion.-For the purposes of this clause, .,senior citizen,, means an individual resident in lndia who is ofthe age ofsixty years or more at any time during lhe relevant previous year;'.

50. In section 245-O oftle Income=laxAct,-

(i) in sub-section (/), the following proviso shall be insened, namely:-

Amendment of sectron 245-O 52 of 1962

"Provided that theAuthority shall cease to act as an Aothority forAdvance Rulings for the purposes ofChapter V ofthe Customs Act, 1962 on and from the date of appointment of the Customs Authority for Advance Rulings under section 28EA ofthat Act.";

(ii) after sub-section (¹), the following sub-section shall be inserted, namely:-

52 oi 1962.

"(,U) On and ftom the date of appointment of the Customs Authority for Advance Rulings referred to in the proviso to sub-section (/), the Authority shall act as an Appellate Authority, for the purpose ofChapter V ofthe Customs Act,1962

52 of 1962.

Provided that the;uthority shall nor admit any appeal against any ruling or order passed earlier by it in the capacity ofthe Authority for Adyanc€ Rulings in relation to any mafter under Chapter V ofthe Customs Act, 1962 afier the date of such appointment ofthe Customs Authority for Advance Rulings.";

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

"Provided that where theAuthority is dealing with an application seeking advance ruling in any matter relatinB to this Act, the revenue Member of the Bench shall be such Member as refened to in sub-clause (i) of clause (c) of sub-section (3).".

52 of I962

Amendment of section 245Q.

51. In section 245Q ofthe lncome-tax Act, in suLsection (,1), the words, letter and figures "or under Chapter V ofthe Customs Act, 1962" shall be omitted with effect ftom the date of appointment ofthe Customs Authority for Advance Rulings under section 28EA of the CustomsAct, 1962.

Amendment of s€ction 253.

52. In sectiori 253 ofthe Income-tax Act, in sub-section (/), in clause (a), after the word, figures and letter "section 271A", the word, figures and letter ", section 271J" shall be insened.

53. In section 271FA ofthe lncome-taxAct,-

(a) for the words "one hundred rupees", the words "five hundred rupees" shall

Amendment of section 27 tFA.

be substituted;

(6) for the words "five hundred rupees", the words "ooe thousand rupees" shall

be substituled.

Amendment of section 216CC.

54. In section 276CC ofthe I ncome-tax Act, in the proviso, in clause (u), in subclause (b), for the words "lax payable by him", the words'tax payable by such person, not being a company," shall be substituted

⁴²⁴ (³²¹ udqrE {qqd, t-ai+ tlc(r zotr

Amendnrcnl

55. ln section 286 ofthe Income-tax Act.-

2E6

(.r) in sub-section (2), for the words, brackets and figures "on or before the due date specified under sub-section ( / ) ofsection I ³ ⁹, for fumishing the return of inconre for the releyant accounting year". the words "\,vithin a period oftwelve months from the end ofthe said reporting accounting year" shall be substituted and shall be deemed to have been substituted with effect from the lst day ofApril, 20171

(b) in sub-section (3), after the word, brackets and figure "sub-section (?)", the words, brackets and figure "and sub-section (y')" shall be inserted and shall be deemed to have been inserted with effect fi'om the lst day ofApril, 2017;

(i) after the words "repilrting accounting year", the words'within the period as may be prescribed" shall be inserted and shall be deemed to have been insened with effect from the lst day ofApril, 2017;

(ii) clause (a) shall be relettered as clause (aa) thereof and before clause (aa) as so relettered, the following clause shall be inserted and shall be deemed to have been insened with effec, from the lst day ofAptil, 2017, namely:-

"(a) where the parent entity is not obligated to file the repoI.t ofthe nature referred to in sub-section (2):";

(/) in sub-section (i),-

(l) in the opening portion, for the words "in the said sub-section". the words "by that country or territory" shall be substituted and shall be deemed to have been substituted with eft'ect from the Ist day ofApril, 201 7;

(ll) in clause ("), for the word "entities", the word "entity" shall be substituted and shall be deemed to have been substituted with etlect from the I st day ofApril, 2017:

(e) in sub-section (9),-

(l) for clause (b), the following clause shall be substituted and shall be deemed to have been substituted with effect from the lst day of April' 2017, namely:-

'(6) "agreement" means a combination of all of the following agreements, namelY:-

(r) an agreemcnt entered into under sub-section (/) ofsection ⁹⁰

or sub-section (/) ofsection 90A; and

(ii) an agreement for exchange ofthe report referred to in

sub-section (2) and notified by the Cenlral Government:';

(B) in clause (d), in sub-clause (iii)' for the words' brackets and figures "clause (i) or clause (ii)", the words, brackets and figures "sub-clause (l) or sub-clause (li)" shall be substituted and shall be deemed to have been substituted with effect from the lst day ofApril. 2017;

(C) in clause (r), in the long line, for the words, brackets and figures "clause (r) or clause (li)", the words, brdckets and figures "sub-clause (l) or sub-clause (il)" shall be substituted and shall be deemed to have been substituted with effect liom the I st day ofApril, 2017;

(D) in clause (r), for the word, brackets and figure "sub-section (2)"' the words, brackets and figures "sub-sections (2) and (4)" shall be substituted and shall be deemed to have been substituted with effect from the lst day of April,20l7.