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(€rgrqnur)

fleq,n I rfirRrd

sfris 212 l

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dg 24, rrrn le40

fr& ert fur* sr{ fflTrrr

t'm-em,rffitrea,rcrq

mrrugt, ftaim 1aq12613

xrio sm/d. re /zt-al/qr./8. r./18.- cr(dw({n, ft& Bl}rqrqdarac, frqrfrftftfi+qdFcis F. No. l(32)/

2017-L. I ^qd F. No. I (3y2018-L. I, "r$ftrd, frqis rz-ol-zora* ergvwrifrti-e erim u-g* twffiel ee, 201s (sci{

t z t1 z o r t ) twqim v{erunur ff ilr*fi ?g S{. ^y-*rRra * il* t.

u*erz * {qwra * ^rnc taqr sra{rqm,

l.frcSmBI$(, ^qftf{fisfos.

Short title and

commencement.

Amendmcnt of

section 2.

THE PAYMENT OF GRATUITY (AMENDMENT) ACT,2OI8

AN

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:-

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

(2) It shall come into force on such date as the Central Governmedt may, by

notification in the Ofiicial Gazette, appoint.

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

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;'.

3. 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.

Amendment of

section 2A.

l9 of 1972.

E-*$B {qqd, Qqi+ uqr rols

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.

riarc+, glor ariea<ud, derre am vrcft gaurrcq, rngt i gpnaur rrrfua - rorr.

,I

I

"Ecraq d€ * ^ermla sm ga*

ilE gq-dr{ (ffir smftm'e lt iqur

fu ^{ergla *cim *.2-zz-ESsIr€}

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o-*vre * ^qqqn* aniau sn?vqvn,

r{q $cn 6r5ir, erftft-fi ^qftre.

THE FINANCE ACT 20 18

ARRANCEMENT OF

Ct.AUsEs

CHAPTER I

PREI,IMINARY

1_

SHORT TITLE AND CoMMENCEMENT

Income-tax.

CHAPTER II

RATES oF INCoME-TAX

CHAPTER III

DIRECTTAxES

Income-tax

3.

Amendment ofsection 2.

424 (rl

424 ⁽²¹

BffisrrB {q[d, ftaio rl qr zorr

4.

5.

6.

7.

8.

9.

10.

.

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.

Amendment ofsection 9-

Amendment of section 10.

Amendment ofsection I l.

Amendment of section 16.

Amendment of section 17.

Amendment of section 28.

Amendment of section 36.

Amendment of section 40A-

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.

45.

46.

47.

48.

49.

50.

51.

.'

52.

,

s3.

54.

55.

56.

57.

58.

CHAPTER IV

INDIRECT TAxEs

Customs

Substitution of references to certain expressions by certain other expressions.

Amendment of section l.

Amendment ofsection 2.

Bdelc trqu.r, Eqim raqr zors

424 ⁽³¹

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.

105.

106.

t07.

Service tax

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.

424 ⁽¹¹

sdwq rrqqd, ftrim uqrzore

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.

EdRirq Gq-d, Grir raqr zorr

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 ^(s)

I

424 ⁽⁶¹

E-dsoc 1lqqd, ft<iq ^{t a} {c ^{zo t} t

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.}

dslE {Mqd, e{i6 l4W 2otr

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

2rg. Amendment ofAct r7of20l3.

AMENDMENT' Io rHE FNAN.EAcT' 2013

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.

Ed$c{q[d, frrit rlqr zorr

424 ^(el

THE FINANCE ACT. 2018

AN

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

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

(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

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

Short title

and

lncome-tax.

424 (t}l

ErS€{E {rqqd, Gri* raqr rorr

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;

(c) in the case ofevery domestic company.-

(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,}

Bdgrrq {rdq-i, ftrim rl qr zorr

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

to be computed at the rate or rates in force, such income-tax or, as the case may be, ^..advance

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;

(c) in the case ofevery domestic company,-

(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

sum so anived at shall be the income-tax or, as the case may be, ^..advance tax',

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

An)endment

ol-scclion 2

( /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,-

(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

the lst day ofApril, 2019,-

of section 9.

(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,-

(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

Amendment

of section l0

424 ^(r8)

Bdn.rq {rd'rd, ttiq r,tqq zotr

A men dmenl

ol sectio[ 16.

(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.";

(c) iir clause (.1Q, after the brackets and words "(by whatever name called)" at

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

(d) in clause (488) [as inserted by section 6 ofthe Finance Act, 2017], after the ^{7 of 2017}

word, brackets, figures and letter "clause ^{(48,4)", the words "or on termination ofthe}

said agreement or the arrangement, ^{in accordance with the lerms mentioned therein, as}

the case may be," shall be inserted ^{with effect liom the lst day ofApril, 2019.}

6. ln section ^I I of the lncome-tax ^{Act, in sub-section (/), after Explanation 2} las

inserred by section I I ofthe Finance Act, ^{2017], the following Explanqtion shall be inserted 7 of 2017.}

with effect fiom the ^I st day ofApril, ^{2019, namely:-}

'Erplqnqtion 3.-For the ^{purposes of determining lhe amount of application}

under clause ^(a) or clause ^{(b), the provisions of sub'clause (ic) of clause (a) of}

section 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".'.

7. In section l6 ofthe tncome-tax Act, after ^{clause (r)} [as ^{omitted by section 6 ofthe}

Finance Act, 20051, ^{the following clause shall be insened with effect from the I st day of l8 of 2005'}

April.20l9. namely:-

"(ia) a deduction of forry thousand rupees ^{or the amount oflhe salary, whichever}

ls less:

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'-}

(/) in clause (ii), after sub-clause ^{(d),the following sub-clause shall be inserted'}

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}

relating to his business;";

Amendment

ol sectio[ l?.

Amendmenl

of scction ^28.

(14 after clause (v,), the following clause ^{shall be inserted, namely:-}

"(via) the ^{fair market value of inventory as on the date on which it is '}

converted into, or treated ^{as, acapitalasset determined inthe prescribed manner;".}

Amendmenr 10. ^Iq section ^{36 of the Income-tax Act, in sub-section (,1), after clause (xvii), the}

ol section 36. followingclause shall be inserted and shall be deemed to have been inserted ^{with effect from}

the I st day ofAPril,20l7, namelY:-

"(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

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,_

(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:-

"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,-

(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:-

'?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:

I

I

Amendment

of section

40A.

Amendmenl

of section 43.

lnsertion of

n€w section

43AA.

Taxation of

foreign

exchange

fluctuation,

Amendment

of section

43CA,

lnsertion of

new section

43CB

Compuiation of

income fiom