TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

272

(Legislative Department)

New Delhi, 29th March 2018.

The following Act of Parliament received the assent of the President on the

28th March 2018 and is here by Published for General Information:—

THE PAYMENT OF GRATUITY (AMENDMENT) ACT, 2018

Act No. 12 of 2018

An Act further to amend the Payment of Gratuity Act, 1972.

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

follows:—

1. (1) This Act may be called the Payment of Gratuity (Amendment) Act, 2018.

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

notification in the Official Gazette, appoint.

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

in section 2, for clause (k), the following clause shall be substituted, namely:—

'(k) "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 (iv), for the words "twelve weeks", the words "such period as may be notified by the

Central Government from time to time" shall be substituted.

Short title and

commencement.

Amendment of

section 2.

Amendment of

section 2A.

Amendment of

section 4.

4. In section 4 of the principal Act, in sub-section (3), for the words "ten lakh rupees",

the words "such amount as may be notified by the Central Government from time to time"

shall be substituted.

DR. G. NARAYANA RAJU,

Secretary to Government of India.

(Re-published by Order of the Governor)

K. RAVIKUMAR,

Additional Secretary to Government,

Law Department.

39 of 1972

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

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New Delhi 29th March 2018.

The following Act of Parliament recevied the assent of the President on the 29th March 2018 and

is here by published for general information:—

THE FINANCE ACT, 2018

ARRANGEMENT OF SECTION

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TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

278

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TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

282

in Part I of the First Schedule and such tax shall be increased by a surcharge, for the purposes

of the Union, calculated in each case in the manner provided therein.

(2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the

assessee has, in the previous year, any net agricultural income exceeding five thousand

rupees, in addition to total income, and the total income exceeds two lakh fifty thousand

rupees, then,—

(a) the net agricultural income shall be taken into account, in the manner provided

in clause (b) [that is to say, as if the net agricultural income were comprised in the total

income after the first two lakh fifty thousand rupees of the total income but without

being liable to tax], only for the purpose of charging income-tax in respect of the total

income; and

(b) the income-tax chargeable shall be calculated as follows:—

(i) the total income and the net agricultural income shall be aggregated

and the amount of income-tax shall be determined in respect of the aggregate

income at the rates specified in the said Paragraph A, as if such aggregate

income were the total income;

(ii) the net agricultural income shall be increased by a sum of two lakh fifty

thousand rupees, and the amount of income-tax shall be determined in respect of

the net agricultural income as so increased at the rates specified in the said

Paragraph A, as if the net agricultural income as so increased were the total

income;

(iii) the amount of income-tax determined in accordance with

sub-clause (i) shall be reduced by the amount of income-tax determined in

accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax

in respect of the total income:

Provided that in the case of every individual, being a resident in India, who is of

the age of sixty years or more but less than eighty years at any time during the

previous year, referred to in item (II) of Paragraph A of Part I of the First Schedule, the

provisions of this sub-section shall have effect as if for the words “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 of the age of eighty years or more at any time during the previous year, referred

to in item (III) of Paragraph A of Part I of the First Schedule, the provisions of this

sub-section shall have effect as if for the words “two lakh fifty thousand rupees”, the

words “five lakh rupees” had been substituted.

(3) In cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB

or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or

section 164 or section 164A or section 167B of the Income-tax Act, 1961 (hereinafter referred

to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that

Chapter or that section, and with reference to the rates imposed by sub-section (1) or the

rates as specified in that Chapter or section, as the case may be:

Provided that the amount of income-tax computed in accordance with the provisions

of section 111A or section 112 of the Income-tax Act shall be increased by a surcharge, for

the purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of

Part I of the First Schedule:

Provided further that in respect of any income chargeable to tax under section 115A,

115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA,

115BBF, 115BBG, 115E, 115JB or 115JC of the Income-tax Act, the amount of income-tax

43 of 1961.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

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computed under this sub-section shall be increased by a surcharge, for the purposes of the

Union, calculated,—

(a) in the case of every individual or Hindu undivided family or association of

persons or body of individuals, whether incorporated or not, or every artificial juridical

person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax

Act,—

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

one crore rupees, at the rate of ten per cent. of such income-tax; and

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

per cent. of such income-tax;

(b) in the case of every co-operative society or firm or local authority, at the rate

of twelve per cent. of such income-tax, where the total income exceeds one crore

rupees;

(i) at the rate of seven per cent. of such income-tax, where the total income

exceeds one crore rupees but 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 of every company, other than a domestic company,—

(i) at the rate of two per cent. of such income-tax, where the total income

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

(ii) at the rate of five per cent. of such income-tax, where the total income

exceeds ten crore rupees:

Provided also that in the case of persons mentioned in (a) above, having total

income chargeable to tax under section 115JC of the Income-tax Act, 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 not exceed the total amount

payable as income-tax on a total income of fifty lakh rupees by more than the

amount of income that exceeds fifty lakh rupees;

(ii) 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 of one crore rupees by more than the amount of income that

exceeds one crore rupees:

Provided also that in the case of persons mentioned in (b) above, having total

income chargeable to tax under section 115JC of the Income-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 of one crore rupees by more than the amount of income that exceeds one crore

rupees:

Provided also that in the case of every company having total income chargeable

to tax under section 115JB of the Income-tax Act, and such income exceeds one crore

rupees but does not exceed ten 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 of one crore rupees by more than the amount of income

that exceeds one crore rupees:

Provided also that in the case of every company having total income chargeable

to tax under section 115JB of the Income-tax Act, and such income exceeds ten 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 and surcharge on a total

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

284

income of ten crore rupees by more than the amount of income that exceeds ten crore

rupees:

Provided also that in respect of any income chargeable to tax under clause (i) of

sub-section (1) of section 115BBE of the Income-tax Act, the amount of income-tax

computed under this sub-section shall be increased by a surcharge, for the purposes

of the Union, calculated at the rate of twenty-five per cent. of such income-tax.

(4) In cases in which tax has to be charged and paid under section 115-O or section

115QA or sub-section (2) of section 115R or section 115TA or section 115TD of the Income-

tax Act, the tax shall be charged and paid at the rates as specified in those sections and shall

be increased by a surcharge, for the purposes of the Union, calculated at the rate of twelve

per cent. of such tax.

(5) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B,

194BB, 194D, 194LBA, 194LBB, 194LBC and 195 of the Income-tax Act, at the rates in force,

the deductions shall be made at the rates specified in Part II of the First Schedule and shall be

increased by a surcharge, for 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, 194DA, 194E,

194EE, 194F, 194G, 194H, 194-I, 194-IA, 194-IB, 194-IC, 194J, 194LA, 194LB, 194LBA, 194LBB,

194LBC, 194LC, 194LD, 196B, 196C and 196D of the Income-tax Act, the deductions shall be

made at the rates specified in those sections and shall be increased by a surcharge, for the

purposes of the Union,—

(a) in the case of every individual or Hindu undivided family or association of

persons or body of individuals, whether incorporated or not, or every artificial juridical

person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,

being a non-resident, calculated,—

(i) at the rate of ten per cent. of such tax, where the income or the aggregate

of such incomes paid or likely to be paid and subject to the deduction exceeds

fifty lakh rupees but does not exceed one crore rupees;

(ii) at the rate of fifteen per cent. of such tax, where the income or the

aggregate of such incomes paid or likely to be paid and subject to the deduction

exceeds one crore rupees;

(b) in the case of every co-operative society or firm, being a non-resident,

calculated at the rate of twelve per cent. of such tax, where the income or the aggregate

of such incomes paid or likely to be paid and subject to the deduction exceeds one

crore rupees;

(i) at the rate of two per cent. of such tax, where the income or the aggregate

of such incomes paid or likely to be paid and subject to the deduction exceeds

one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such tax, where the income or the aggregate

of such incomes paid or likely to be paid and subject to the deduction exceeds

ten crore rupees.

(7) In cases in which tax has to be collected under the proviso to section 194B of the

Income-tax Act, the collection shall be made at the rates specified in Part II of the First

Schedule, and shall be increased by a surcharge, for the purposes of the Union, calculated,

in cases wherever prescribed, in the manner provided therein.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

285

(8) In cases in which tax has to be collected under section 206C of the Income-tax Act,

the collection shall be made at the rates specified in that section and shall be increased by a

surcharge, for the purposes of the Union,—

(a) in the case of every individual or Hindu undivided family or association of

persons or body of individuals, whether incorporated or not, or every artificial juridical

person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,

being a non-resident, calculated,—

(i) at the rate of ten per cent. of such tax, where the amount or the aggregate

of such amounts collected and subject to the collection exceeds fifty lakh rupees

but does not exceed one crore rupees;

(ii) at the rate of fifteen per cent. of such tax, where the amount or the

aggregate of such amounts collected and subject to the collection exceeds one

crore rupees;

(b) in the case of every co-operative society or firm, being a non-resident,

calculated at the rate of twelve per cent. of such tax, where the amount or the aggregate

of such amounts collected and subject to the collection exceeds one crore rupees;

(i) at the rate of two per cent. of such tax, where the amount or the aggregate

of such amounts collected and subject to the collection exceeds one crore rupees

but does not exceed ten crore rupees;

(ii) 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 of sub-section (10), in cases in which income-tax has to

be charged under sub-section (4) of section 172 or sub-section (2) of section 174 or

section 174A or section 175 or sub-section (2) of section 176 of the Income-tax Act or

deducted from, or paid on, income chargeable under the head “Salaries” under section 192 of

the said Act or in which the “advance tax” payable under Chapter XVII-C of the said Act has

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

tax” shall be charged, deducted or computed at the rate or rates specified in Part III of the

First Schedule and such tax shall be increased by a surcharge, for the purposes of the Union,

calculated in such cases and in such manner as provided therein:

Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or

section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of

section 161 or section 164 or section 164A or section 167B of the Income-tax Act apply,

“advance tax” shall be computed with reference to the rates imposed by this sub-section or

the rates as specified in that Chapter or section, as the case may be:

Provided further that the amount of “advance tax” computed in accordance with the

provisions of section 111A or section 112 or section 112A of the Income-tax Act shall be

increased by a surcharge, for the purposes of the Union, as provided in Paragraph A, B, C,

D or E, as the case may be, of Part III of the First Schedule:

Provided also that in respect of any income chargeable to tax under section 115A,

115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA,

115BBF, 115BBG, 115E, 115JB or 115JC of the Income-tax Act, “advance tax” computed under

the first proviso shall be increased by a surcharge, for the purposes of the Union,

calculated,—

(a) in the case of every individual or Hindu undivided family or association of

persons or body of individuals, whether incorporated or not, or every artificial juridical

person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax

Act,—

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

286

(i) 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;

(ii) at the rate of fifteen per cent. of such “advance tax”, where the total

income exceeds one crore rupees;

(b) in the case of every co-operative society or firm or local authority at the rate

of twelve per cent. of such “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 crore rupees but does not exceed ten crore rupees;

(ii) at the rate of twelve per cent. of such “advance tax”, where the total

income exceeds ten crore rupees;

(d) in the case of every company, other than a domestic company,—

(i) at the rate of two per cent. of such “advance tax”, where the total

income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) 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 of persons mentioned in (a) above, having total income

chargeable to tax under section 115JC of the 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

total amount payable as “advance tax” on a total income of fifty lakh rupees by more

than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees, the total amount payable as “advance tax” on such income

and surcharge thereon shall not exceed the total amount payable as “advance tax” on

a total income of one crore rupees by more than the amount of income that exceeds one

crore rupees:

Provided also that in the case of persons mentioned in (b) above, having total income

chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds one

crore rupees, the total amount payable as “advance tax” on such income and surcharge

thereon shall not exceed the total amount payable as “advance tax” on a total income of one

crore rupees by more than the amount of income that exceeds one crore rupees:

Provided also that in the case of every company having total income chargeable to tax

under section 115JB of the Income-tax Act, and such income exceeds one crore rupees 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 one crore rupees by more than the amount of income that exceeds one crore

rupees:

Provided also that in the case of every company having total income chargeable to tax

under section 115JB of the Income-tax Act, and such income exceeds 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” and surcharge on a total income of ten

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

Provided also that in respect of any income chargeable to tax under clause (i) of

sub-section (1) of section 115BBE of the Income-tax Act, the “advance tax” computed under

the first proviso shall be increased by a surcharge, for the purposes of the Union, calculated

at the rate of twenty-five per cent. of such “advance tax”.

(10) In cases to which Paragraph A of Part III of the First Schedule applies, where the

assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act,

income-tax is to be charged in respect of the income of a period other than the previous year,

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

287

in such other period, any net agricultural income exceeding five thousand rupees, in addition

to total income and the total income exceeds two lakh fifty thousand rupees, then, in charging

income-tax under sub-section (2) of section 174 or section 174A or section 175 or

sub-section (2) of section 176 of the said Act or in computing the “advance tax” payable

under Chapter XVII-C of the said Act, at the rate or rates in force,—

(a) the net agricultural income shall be taken into account, in the manner provided

in clause (b) [that is to say, as if the net agricultural income were comprised in the total

income after the first two lakh fifty thousand rupees of the total income but without

being liable to tax], only for the purpose of charging or computing such income-tax or,

as the case may be, “advance tax” in respect of the total income; and

(b) such income-tax or, as the case may be, “advance tax” shall be so charged or

computed as follows:—

(i) the total income and the net agricultural income shall be aggregated

and the amount of income-tax or “advance tax” shall be determined in respect of

the aggregate income at the rates specified in the said Paragraph A, as if such

aggregate income were the total income;

(ii) the net agricultural income shall be increased by a sum of two lakh fifty

thousand rupees, and the amount of income-tax or “advance tax” shall be

determined in respect of the net agricultural income as so increased at the rates

specified in the said Paragraph A, as if the net agricultural income were the total

income;

(iii) the amount of income-tax or “advance tax” determined in accordance

with sub-clause (i) shall be reduced by the amount of income-tax or, as the case

may be, “advance tax” determined in accordance with sub-clause (ii) and the

sum so arrived at shall be the income-tax or, as the case may be, “advance tax”

in respect of the total income:

Provided that in the case of every individual, being a resident in India, who is of the

age of sixty years or more but less than eighty years at any time during the previous year,

referred to in item (II) of Paragraph A of Part III of the First Schedule, the provisions of this

sub-section shall have effect as if for the words “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

of the age of eighty years or more at any time during the previous year, referred to in item (III)

of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have

effect as if for the words “two lakh fifty thousand rupees”, the words “five lakh rupees” had

been substituted:

Provided also that the amount of income-tax or “advance tax” so arrived at, shall be

increased by a surcharge for the purposes of the Union, calculated in each case, in the

manner provided therein.

(11) The amount of income-tax as specified in sub-sections (1) to (3) and as increased

by the applicable surcharge, for the purposes of the Union, calculated in the manner provided

therein, shall be further increased by an additional surcharge, for the purposes of the Union,

to be called the “Education Cess on income-tax”, calculated at the rate of two per cent. of

such income-tax and surcharge so as to fulfil the commitment of the Government to provide

and finance universalised quality basic education.

(12) The amount of income-tax as specified in sub-sections (1) to (3) and as increased

by the applicable surcharge, for the purposes of the Union, calculated in the manner provided

therein, shall also be increased by an additional surcharge, for the purposes of the Union, to

be called the “Secondary and Higher Education Cess on income-tax”, calculated at the rate

of one per cent. of such income-tax and surcharge so as to fulfil the commitment of the

Government to provide and finance secondary and higher education.

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(13) The amount of income-tax as specified in sub-sections (4) to (10) and as increased

by the applicable surcharge, for the purposes of the Union, calculated in the manner provided

therein, shall be further increased by an additional surcharge, for the purposes of the Union,

to be called the “Health and Education Cess on income-tax”, calculated at the rate of four per

cent. of such income-tax and surcharge so as to fulfil the commitment of the Government 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 which tax is

to be deducted or collected under the sections of the Income-tax Act mentioned in

sub-sections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection

of tax at source is paid to a domestic company and any other person who is resident in India.

(14) For the purposes of this section and the First Schedule,—

(a) “domestic company” means an Indian company or any other company which,

in respect of its income liable to income-tax under the Income-tax Act, for the assessment

year commencing on the 1st day of April, 2018, has made the prescribed arrangements

for the declaration and payment within India of the dividends (including dividends on

preference shares) payable out of such income;

(b) “insurance commission” means any remuneration or reward, whether by way

of commission or otherwise, for soliciting or procuring insurance business (including

business relating to the continuance, renewal or revival of policies of insurance);

agricultural income, from whatever source derived, of that person computed in

accordance with the rules contained in Part IV of the First Schedule;

(d) all other words and expressions used in this section and the First Schedule

but not defined in this sub-section and defined in the Income-tax Act shall have the

meanings, respectively, assigned to them in that Act.

CHAPTER III

DIRECT TAXES

Income-tax

3. In section 2 of the Income-tax Act,––

(a) in clause (22), after Explanation 2, the following Explanation shall be inserted,

namely:––

“Explanation 2A.––In 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.”;

(b) with effect from the 1st day of April, 2019,––

(i) in clause (24),––

(A) after sub-clause (xii), the following sub-clause shall be inserted,

namely:––

“(xiia) the fair market value of inventory referred to in

clause (via) of section 28;”;

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

inserted, namely:––

“(xviib) any compensation or other payment referred to in

clause (xi) of sub-section (2) of section 56;”;

Amendment

of section 2.

July 11, 2018]

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(ii) in clause (42A),—

(A) in Explanation 1, in clause (i), after sub-clause (b), the following

sub-clause shall be inserted namely:—

“(ba) in the case of a capital asset referred to in clause (via) of

section 28, the period shall be reckoned from the date of its conversion or

treatment;”;

(B) in Explanation 4, for the words, brackets and figures "the

Explanation to clause (38) of section 10", the words, brackets, letters and

figures "clause (a) of the Explanation to section 112A" shall be substituted.

4. In section 9 of the Income-tax Act, in sub-section (1), in clause (i), with effect from

the 1st day of April, 2019,––

(I) in Explanation 2, for clause (a), the 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 conclusion of contracts by that

non-resident and the contracts are––

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

(ii) for the transfer of the ownership of, or for the granting of the

right to use, property owned by that non-resident or that non-resident

has the right to use; or

(iii) for the provision of services by the non-resident; or”;

(II) after Explanation 2, the following Explanation shall be inserted, namely:—

‘Explanation 2A.––For the removal of doubts, 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 of any goods, services or property carried

out by a non-resident in India including provision of download of data or

software in India, if the aggregate of payments arising from such transaction

or transactions during the previous year exceeds such amount as may be

prescribed; or

(b) systematic and continuous soliciting of business activities or

engaging in interaction with such number of users 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 agreement for such transactions or activities is entered in India;

(ii) the non-resident has a residence or place of business in India; or

(iii) the non-resident renders services in India:

Provided further that only so much of income as is attributable to the

transactions or activities referred to in clause (a) or clause (b) shall be deemed to

accrue or arise in India.’.

5. In section 10 of the 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 of royalty from, or fees for technical services rendered

in or outside India to, the National Technical Research Organisation;”;

(b) with effect from the 1st day of April, 2019,––

(i) in clause (12A), for the word “employee”, the word “assessee” shall be

substituted;

Amendment

of section 9.

Amendment

of section 10.

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(ii) in clause (23C), after the twelfth proviso [as inserted by section 6 of

the Finance Act, 2017], the following proviso shall be inserted, namely:—

‘Provided also that for the purposes of determining the amount of

application under item (a) of the third proviso, the provisions of

sub-clause (ia) of clause (a) of section 40 and sub-sections (3) and (3A) 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”:’;

(iii) in clause (38), 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 of an equity oriented fund or a unit of

a business trust, made on or after the 1st day of April, 2018.”;

both the places where they occur, the words “, or a class thereof” shall be inserted;

(d) in clause (48B) [as inserted by section 6 of the Finance Act, 2017], after the

word, brackets, figures and letter “clause (48A)”, the words “or on termination of the

said agreement or the arrangement, in accordance with the terms mentioned therein, as

the case may be,” shall be inserted with effect from the 1st day of April, 2019.

6. In section 11 of the Income-tax Act, in sub-section (1), after Explanation 2 [as

inserted by section 11 of the Finance Act, 2017], the following Explanation shall be inserted

with effect from the 1st day of April, 2019, namely:––

‘Explanation 3.—For the purposes of determining the amount of application

under clause (a) or clause (b), the provisions of sub-clause (ia) of clause (a) of

section 40 and sub-sections (3) and (3A) 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 16 of the Income-tax Act, after clause (i) [as omitted by section 6 of the

Finance Act, 2005], the following clause shall be inserted with effect from the 1st day of

April, 2019, namely:––

“(ia) a deduction of forty thousand rupees or the amount of the salary, whichever

is less;”.

8. In section 17 of the Income-tax Act, in clause (2), in the proviso occurring after

sub-clause (viii), clause (v) shall be omitted with effect from the 1st day of April, 2019.

9. In section 28 of the Income-tax Act, with effect from the 1st day of April, 2019,––

(I) 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 contract

relating to his business;”;

(II) after clause (vi), 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, a capital asset determined in the prescribed manner;”.

10. In section 36 of the Income-tax Act, in sub-section (1), after clause (xvii), the

following clause shall be inserted and shall be deemed to have been inserted with effect from

the 1st day of April, 2017, namely:—

“(xviii) marked to market loss or other expected loss as computed in accordance

with the income computation and disclosure standards notified under sub-section (2)

of section 145.”.

7 of 2017.

Amendment

of section 11.

Amendment

of section 16.

Amendment

of section 17.

Amendment

of section 28.

Amendment

of section 36.

18 of 2005.

July 11, 2018]

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11. In section 40A of the Income-tax Act, after sub-section (12) [as omitted by

section 17 of the Finance Act, 1992], the following sub-section shall be inserted and shall be

deemed to have been inserted with effect from the 1st day of April, 2017, namely:—

“(13) No deduction or allowance shall be allowed in respect of any marked to

market loss or other expected loss, except as allowable under clause (xviii) of

sub-section (1) of section 36.”.

12. In section 43 of Income-tax Act, with effect from the 1st day of April, 2019,—

(i) in clause (1), after Explanation 1, the following Explanation shall be inserted,

namely:—

"Explanation 1A.—Where a capital asset referred to in clause (via) of

section 28 is used for the purposes of business 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 of the said clause.";

(ii) in clause (5), after the proviso and before Explanation 1, the following

proviso shall be inserted, namely:—

“Provided further that for the purposes of clause (e) of the first proviso, in respect

of trading in agricultural commodity derivatives, the requirement of chargeability of

commodity transaction tax under Chapter VII of the Finance Act, 2013 shall not apply.”.

13. After section 43A of the Income-tax Act, the following section shall be inserted and

shall be deemed to have been inserted with effect from the 1st day of April, 2017, namely:—

“43AA. (1) Subject to the provisions of section 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) of section 145.

(2) For the purposes of sub-section (1), gain or loss arising on account of the

effects of change in foreign exchange rates shall be in respect of all foreign currency

transactions, including those relating to—

(i) monetary items and non-monetary items;

(ii) translation of financial statements of foreign operations;

(iii) forward exchange contracts;

(iv) foreign currency translation reserves.”.

14. In section 43CA of the Income-tax Act, with effect from the 1st day of April, 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 of payment of stamp 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 of the transfer

shall, for the purposes of computing profits and gains from transfer of such

asset, be deemed to be the full value of the consideration.”;

(b) in sub-section (4), for the words “by any mode other than cash”, the words

“by 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 of the Income-tax Act, the following section shall be inserted and

shall be deemed to have been inserted with effect from the 1st day of April, 2017, namely:—

“43CB. (1) The profits and gains arising from a construction contract 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) of section 145:

Amendment

of section

40A.

Amendment

of section 43.

Insertion of

new section

43AA.

Taxation of

foreign

exchange

fluctuation.

Amendment

of section

43CA.

Insertion of

new section

43CB.

Computation of

income from

construction and

service contracts.

18 of 1992.

17 of 2013.

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Provided that profits and gains arising from a contract for providing services,—

(i) with duration of not more than ninety days shall be determined on the

basis of project completion method;

(ii) involving indeterminate number of acts over a specific period of time

shall be determined on the basis of straight line method.

(2) For the purposes of percentage of completion method, project completion

method or straight line method referred to in sub-section (1)—

(i) the contract revenue shall include retention money;

(ii) the contract costs shall not be reduced by any incidental income in the

nature of interest, dividends or capital gains.”.

16. In section 44AE of the Income-tax Act, with effect from the 1st day of April, 2019,—

(a) for sub-section (2), the following sub-section shall be substituted, namely:—

“(2) For the purposes of sub-section (1), the profits and gains from each

goods carriage,—

(i) being a heavy goods vehicle, shall be an amount equal to 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 earned from such vehicle, whichever

is higher;

(ii) other than heavy goods vehicle, shall be an amount equal to

seven thousand five hundred rupees for every month or part of a month

during which the goods carriage is owned by the assessee in the previous

year or an amount claimed to have been actually earned from such goods

carriage, whichever is higher.”;

(b) in the Explanation, for clause (a), the following clauses shall be substituted,

namely:––

‘(a) the expressions “goods carriage”, “gross vehicle weight” and “unladen

weight” shall have the respective meanings assigned to them in section 2 of the

Motor Vehicles Act, 1988;

(aa) the expression “heavy goods vehicle” means any goods carriage,

the gross vehicle weight of which exceeds 12000 kilograms;’.

17. In section 47 of the Income-tax Act, after clause (viiaa) [as inserted by section 23

of the Finance Act, 2017], the following clause shall be inserted with effect from the 1st day

of April, 2019, namely:—

‘(viiab) any transfer of a capital asset, being—

(a) bond or Global Depository Receipt referred to in sub-section (1) of

section 115AC; or

(b) rupee denominated bond of an Indian company; or

made by a non-resident on a recognised stock exchange located in any International Financial

Services Centre and where the consideration for such transaction is paid or payable in

foreign currency.

Explanation.— For the purposes of this clause,—

(a) “International Financial Services Centre” shall have the meaning

assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005;

(b) “recognised stock exchange” shall have the meaning assigned to it in

clause (ii) of Explanation 1 to clause (5) of section 43;

Amendment of

section 44AE.

Amendment

of section 47.

59 of 1988.

7 of 2017.

28 of 2005.

July 11, 2018]

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section 2 of the Securities Contracts (Regulation) Act, 1956.’.

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

shall be inserted, namely:—

"Provided also that nothing contained in the first and second provisos shall

apply to the capital gains arising from the transfer of a long-term capital asset being an

equity share in a company or a unit of an equity oriented fund or a unit of a business

trust referred to in section 112A:".

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

sub-section shall be inserted with effect from the 1st day of April, 2019, namely:––

“(9) Where the capital gain arises from the transfer of a capital asset referred to

in clause (via) of section 28, the cost of acquisition of such asset shall be deemed to

be the fair market value which has been taken into account for the purposes of the said

clause.”.

20. In section 50C of the Income-tax Act, in sub-section (1), after the second proviso,

the following proviso shall be inserted with effect from the 1st day of April, 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

consideration received or accruing as a result of the transfer, the consideration so

received or accruing as a result of the transfer shall, for the purposes of section 48, be

deemed to be the full value of the consideration.”.

21. In section 54EC of the Income-tax Act, with effect from the 1st day of April, 2019,—

(a) in sub-section (1), after the words “long-term capital asset”, the words

“, being land or building or both,” shall be inserted;

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

inserted, namely:—

‘Provided that in case of long-term specified asset referred to in sub-

clause (ii) of clause (ba) of the Explanation occurring after sub-section (3),

this sub-section shall have effect as if for the words "three years", the words

"five years" had been substituted.’;

following clause shall be substituted, namely:––

‘(ba) “long-term specified asset” for making any investment under this

section,––

(i) on or after the 1st day of April, 2007 but before the 1st day of

April, 2018, means any bond, redeemable after three years and issued on

or after the 1st day of April, 2007 but before the 1st day of April, 2018;

(ii) on or after the 1st day of April, 2018, means any bond, redeemable

after five years and issued on or after the 1st day of April, 2018,

by the National Highways Authority of India constituted under section 3 of the 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 (ab), the

following clause shall be inserted, namely:—

'(ac) subject to the provisions of sub-clauses (i) and (ii) of clause (b), in relation

to a long-term capital asset, being an equity share in a company or a unit of an equity

oriented fund or a unit of a business trust referred to in section 112A, acquired before

the 1st day of February, 2018, shall be higher of—

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

Amendment

of section 48.

Amendment

of setion 50C.

Amendment

of section 49.

Amendment

of section 55.

42 of 1956.

Amendment

of section

54EC.

68 of 1988.

1 of 1956.

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(ii) lower of—

(A) the fair market value of such asset; and

(B) the full value of consideration received or accruing as a result of

the transfer of the capital asset.

Explanation.—For the purposes of this clause,—

(a) "fair market value" means,—

(i) in a case where the capital asset is listed on any recognised stock

exchange as on the 31st day of January, 2018, the highest price of the

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 31st day of January, 2018, the highest price of such asset

on such exchange on a date immediately preceding the 31st day of January,

2018 when such asset was traded on such exchange shall be the fair

market value;

(ii) in a case where the capital asset is a unit which is not listed on a

recognised stock exchange as on the 31st day of January, 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—

(A) not listed on a recognised stock exchange as on the

31st day of January, 2018 but listed on such exchange on the date of

transfer;

(B) listed on a recognised stock exchange on the date of transfer

and which became the property of the assessee in consideration of

share which is not listed on such exchange as on the 31st day of

January, 2018 by way of transaction not regarded as transfer under

section 47,

an amount which bears to the cost of acquisition the same proportion as

Cost Inflation Index for the financial year 2017-2018 bears to the Cost

Inflation Index for the first year in which the asset was held by the assessee

or for the year beginning on the first day of April, 2001, whichever is later;

(b) "Cost Inflation Index" shall have the meaning assigned to it in clause

(v) of the Explanation to section 48;

clause (ii) of Explanation 1 to clause (5) of section 43.’.

23. In section 56 of the Income-tax Act, in sub-section (2),––

(A) in clause (x),––

(I) in sub-clause (b), for item (B), the following item shall be substituted

with effect from the 1st day of April, 2019, namely:––

“(B) for a consideration, the stamp duty value of such property as

exceeds such consideration, if the amount of such excess is more than the

higher of the following amounts, namely:––

(i) the amount of fifty thousand rupees; and

(ii) the amount equal to five per cent. of the consideration:”;

(II) in the fourth proviso, in clause (IX), after the words, brackets and

figure “clause (i) or”, the words, brackets and figures “clause (iv) or clause (v)

or” shall be inserted;

(B) after clause (x), the following clause shall be inserted with effect from the

1st day of April, 2019, namely:—

“(xi) any compensation or other payment, due to or received by any person,

by whatever name called, in connection with the termination of his employment

or the modification of the terms and conditions relating thereto.”.

Amendment

of section 56.

July 11, 2018]

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24. In section 79 of the Income-tax Act [as substituted by section 32 of the Finance

Act, 2017], after the second proviso, the following proviso shall be inserted, namely:––

“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 Insolvency and Bankruptcy Code, 2016, after

affording a reasonable opportunity of being heard to the jurisdictional Principal

Commissioner or Commissioner.”.

25. For section 80AC of the Income-tax Act, the following section shall be substituted,

namely:––

‘80AC. Where in computing the total income of an assessee of any previous

year relevant to the assessment year commencing on or after––

(i) the 1st day of April, 2006 but before the 1st day of April, 2018, any

deduction is admissible under section 80-IA or section 80-IAB or section 80-IB

or section 80-IC or section 80-ID or section 80-IE;

(ii) the 1st day of April, 2018, any deduction is admissible under any

provision of this Chapter under the heading “C.—Deductions in respect of

certain incomes”,

no such deduction shall be allowed to him unless he furnishes a return of his income for

such assessment year on or before the due date specified under sub-section (1) of

section 139.’.

26. In section 80D of the Income-tax Act, with effect from the 1st day of April, 2019,—

(A) in sub-section (2),—

(i) for the words “thirty thousand rupees” wherever they occur, the words

“fifty thousand rupees” shall be substituted;

(ii) in the first proviso occurring after clause (d), the word “very” shall be

omitted;

(B) in sub-section (3),—

(i) for the words “thirty thousand rupees” at both the places where they

occur, the words “fifty thousand rupees” shall be substituted;

(ii) the word “very” shall be omitted;

(i) 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:––

‘(4A) Where the amount specified in clause (a) or clause (b) of

sub-section (2) or clause (a) of sub-section (3) 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 of the relevant previous year, a deduction

equal to the appropriate fraction of the amount.

Explanation.—For the purposes of this sub-section,—

(i) “appropriate fraction” means the fraction, the numerator of which

is one and the denominator of which is the total number of relevant previous

years;

(ii) “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 effect or be

in force.’;

Substitution of

new section for

section 80AC.

Deduction not

to be allowed

unless return

furnished.

Amendment

of section 79.

7 of 2017.

31 of 2016.

Amendment of

section 80D.

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(E) in the Explanation occurring after sub-section (5), clause (ii) shall be omitted.

27. In section 80DDB of the Income-tax Act, with effect from the 1st day of

April, 2019,—

(a) in the third proviso, for the words “sixty thousand rupees”, the words “one

hundred thousand rupees” shall be substituted;

(b) the fourth proviso shall be omitted;

28. In section 80-IAC of the Income-tax Act, in the Explanation below sub-section (4),––

(a) for clause (i), the following clause shall be substituted, namely:––

‘(i) “eligible business” means a business carried out by an eligible start up

engaged in innovation, development or improvement of products or processes

or services or a scalable business model with a high potential of employment

generation or wealth creation;’;

(b) in clause (ii),––

(i) in sub-clause (a), for the figures “2019”, the figures “2021” shall be

substituted;

(ii) in sub-clause (b), for the words, figures and letters “in any of the

previous years beginning on or after the 1st day of April, 2016 and ending on the

31st 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. In section 80JJAA of the Income-tax Act, in the Explanation occurring after

sub-section (2), in clause (ii), with effect from the 1st day of April, 2019,––

(a) in the proviso, after the words “manufacturing of apparel”, the words “or

footwear or leather products” shall be inserted;

(b) after the 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 two 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 of this section shall apply accordingly;”.

30. After section 80P of the Income-tax Act, the following section shall be inserted with

effect from the 1st day of April, 2019, namely:—

‘80PA. (1) Where the gross total income of an assessee, being a Producer

Company having a total turnover of less than one hundred crore rupees in any previous

year, includes any profits and gains derived from eligible business, there shall, in

accordance with and subject to the provisions of this 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

relevant to an assessment year commencing on or after the 1st day of April, 2019, but

before the 1st day of April, 2025.

(2) In a case where the assessee is entitled also to deduction under any other

provision of this Chapter, the deduction under this section shall be allowed with

reference to the income, if any, as referred to in this section included in the gross total

income as reduced by the deductions under such other provision of this Chapter.

Explanation.—For the purposes of this section,—

(i) “eligible business” means—

(a) the marketing of agricultural produce grown by the members; or

Insertion of

new section

80PA.

Amendment

of section

80DDB.

Amendment

of section

80-IAC.

Amendment

of section

80JJAA.

Deduction in

respect of

certain income

of Producer

Companies.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

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(b) the purchase of agricultural implements, seeds, livestock or other

articles intended for agriculture for the purpose of supplying them to the

members; or

(ii) “member” shall have the meaning assigned to it in clause (d) of

section 581A of the Companies Act, 1956;

(iii) “Producer Company” shall have the meaning assigned to it in

clause (l) of section 581A of the Companies Act, 1956.’.

31. In section 80TTA of the Income-tax Act, in sub-section (1), in the opening portion,

after the word “assessee”, the brackets, words, figures and letters “(other than the assessee

referred to in section 80TTB)” shall be inserted with effect from the 1st day of April, 2019.

32. After section 80TTA of the Income-tax Act, the following section shall be inserted

with effect from the 1st day of April, 2019, namely:—

‘80TTB. (1) Where the gross total income of an assessee, being a senior citizen,

includes any income by way of interest on deposits with—

(a) a banking company to which the Banking Regulation Act, 1949, applies

(including any bank or banking institution referred to in section 51 of that Act);

(b) a co-operative society engaged in carrying on the business of banking

(including a co-operative land mortgage bank or a co-operative land development

bank); or

Office Act, 1898,

there shall, in accordance with and subject to the provisions of this section, be allowed,

in computing the total income of the assessee, a deduction—

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

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

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

(2) Where the income referred to in sub-section (1) is derived from any deposit

held by, or on behalf of, a firm, an association of persons or a body of individuals, no

deduction shall be allowed under this section in respect of such income in computing

the total income of any partner of the firm or any member of the association or any

individual of the body.

Explanation.—For the purposes of this section, “senior citizen” means an

individual resident in India who is of the age of sixty years or more at any time during

the relevant previous year.’.

33. After section 112 of the Income-tax Act, the following section shall be inserted with

effect from the 1st day of April, 2019, namely:—

‘112A. (1) Notwithstanding anything contained in section 112, the tax payable

by an assessee on his total income shall be determined in accordance with the provisions

of sub-section (2), if—

(i) the total income includes any income chargeable under the head “Capital

gains”;

(ii) the capital gains arise from the transfer of a long-term capital asset

being an equity share in a company or a unit of an equity oriented fund or a unit

of a business trust;

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

Act, 2004 has,—

(a) in a case where the long-term capital asset is in the nature of an

equity share in a company, been paid on acquisition and transfer of such

capital asset; or

Tax on long-

term capital

gains in

certain cases.

23 of 2004.

Insertion of

new section

112A.

6 of 1898.

10 of 1949.

Amendment

of section

80TTA.

Insertion of

new section

80TTB.

1 of 1956.

Deduction in

respect of

interest on

deposits in

case of senior

citizens.

1 of 1956.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

298

(b) in a case where the long-term capital asset is in the nature of a

unit of an equity oriented fund or a unit of a business trust, been paid on

transfer of such capital asset.

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

sub-section (1) shall be the aggregate of—

(i) the amount of income-tax calculated on such long-term capital gains

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

(ii) the amount of income-tax payable on the total income as reduced by

the amount of long-term capital gains referred to in sub-section (1) as if the total

income so reduced were the total income of the assessee:

Provided that in the case of an 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 of clause (i), shall be reduced by the amount by which the total

income as so reduced falls short of the maximum amount which is not chargeable to

income-tax.

(3) The condition specified in clause (iii) of sub-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.

(4) The Central Government may, by notification in the Official Gazette, specify

the nature of acquisition in respect of which the provisions of sub-clause (a) of

clause (iii) of sub-section (1) shall not apply.

(5) Where the gross total income of an assessee includes any long-term capital

gains referred to in sub-section (1), 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 capital gains

referred to in sub-section (1), 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.

Explanation.—For the purposes of this section,—

(a) “equity oriented fund” means a fund set up under a scheme of a mutual

fund specified under clause (23D) of section 10 and,—

(i) in a case where the fund invests in the units of another fund

which is traded on a recognised stock exchange,—

(A) a minimum of ninety per cent. of the total proceeds of such

fund is invested in the units of such other fund; and

(B) such other fund also invests a minimum of ninety per cent.

of its total proceeds in the equity shares of domestic companies

listed on a recognised stock exchange; and

(ii) in any other case, a minimum of sixty-five per cent. of the total

proceeds of such fund is invested in the equity shares of domestic

companies listed on a recognised stock exchange:

Provided that the percentage of equity shareholding or unit held in respect

of the 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) “International Financial Services Centre” shall have the meaning assigned

to it in clause (q) of section 2 of the Special Economic Zones Act, 2005;

clause (ii) of Explanation 1 to clause (5) of section 43.’.

28 of 2005.

July 11, 2018]

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34. In section 115AD of the Income-tax Act, in sub-section (1), with effect from the

1st day of April, 2019,—

(a) in clause (iii), the word “and” occurring at the end shall be omitted;

(b) after clause (iii), the following proviso shall be inserted, namely:—

“Provided that in case of income arising from the transfer of a long-term

capital asset referred to in section 112A, income-tax at the rate of ten per cent.

shall be calculated on such income exceeding one lakh rupees; and”.

35. In section 115BA of the Income-tax Act, in sub-section (1), for the words, figures

and letter “provisions of section 111A and section 112”, the words “other provisions of this

Chapter” shall be substituted and shall be deemed to have been substituted with effect from

the 1st day of April, 2017.

36. In section 115BBE of the Income-tax Act, in sub-section (2), after the word, brackets

and letter “clause (a)”, the words, brackets and letter “and clause (b)” shall be inserted and

shall be deemed to have been inserted with effect from the 1st day of April, 2017.

37. In section 115JB of the Income-tax Act,—

(a) in Explanation 1,—

(A) after clause (iig), the following clause shall be inserted, namely:––

‘(iih) the aggregate 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

Adjudicating Authority under section 7 or section 9 or section 10 of the

Insolvency and Bankruptcy Code, 2016.

Explanation.––For the purposes of this clause, the expression

“Adjudicating Authority” shall have the meaning assigned to it in

clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016 and

the loss shall not include depreciation; or’;

(B) in clause (iii), after the words “books of account”, the words, brackets,

figures and letter “in case of a company other than the company referred to in

clause (iih)” shall be inserted;

(b) after Explanation 4, the following Explanation shall be inserted and shall be

deemed to have been inserted with effect from the 1st day of April, 2001, namely:––

“Explanation 4A.—For the removal of doubts, it is hereby clarified that

the provisions of this section shall not be applicable and shall be deemed never

to 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 44B 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. In section 115JC of the Income-tax Act, after sub-section (3), the following

sub-section shall be inserted with effect from the 1st day of April, 2019, namely:––

‘(4) Notwithstanding anything contained in sub-section (1), where the person

referred to therein, is a unit located in an International 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-half per cent.”,

the words “nine per cent.” had been substituted.’.

39. In section 115JF of the Income-tax Act, with effect from the 1st day of

April, 2019,—

(i) for clause (b), the following clause shall be substituted, namely:––

‘(b) “alternate minimum tax” means the amount of tax computed on adjusted

total income,––

Amendment

of section

115AD.

Amendment

of section

115BA.

Amendment

of section

115BBE.

Amendment

of section

115JB.

31 of 2016.

Amendment of

section 115JC.

Amendment of

section 115JF.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

300

(i) in case of an assessee being a unit referred to in sub-section (4)

of section 115JC, at a rate of nine per cent.;

(ii) in any other case, at a rate of eighteen and one-half per cent.;’;

(ii) after clause (b), the following clauses shall be inserted, namely:––

‘(ba) “convertible foreign exchange” means a foreign exchange which is

for the time being treated by the Reserve Bank of India as convertible foreign

exchange for the purpose of the Foreign Exchange Management Act, 1999 and

the rules made thereunder;

(bb) “International Financial Services Centre” shall have the meaning

assigned to it in clause (q) of section 2 of the Special Economic Zones

Act, 2005;’;

(iii) after clause (d), the following clause shall be inserted, namely:––

‘(e) “unit” means a unit established in an International Financial Services

Centre.’.

40. In section 115-O of the Income-tax Act,––

(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 “thirty per cent.” had been substituted;’;

(b) in sub-section (1B), the following proviso shall be inserted, namely:––

“Provided that this sub-section shall not apply in respect of dividend

referred to in sub-clause (e) of clause (22) of section 2.”.

41. After section 115Q of the Income-tax Act, the Explanation shall be omitted.

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

(A) for clause (i) to clause (iii), the following clauses shall be substituted,

namely:—

“(i) twenty-five per cent. on income distributed to any person being an

individual or a Hindu undivided family by a money market mutual fund or a liquid

fund;

(ii) thirty per cent. on income distributed to any other person by a money

market mutual fund or a liquid fund;

(iii) ten per cent. on income distributed to any person by an equity oriented

fund;

(iv) twenty-five per cent. on income distributed to any person being an

individual or a Hindu undivided family by a fund other than a money market

mutual fund or a liquid fund or an equity oriented fund; and

(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 equity oriented

fund:”;

(B) in the second proviso, clause (b) shall be omitted.

43. In the Explanation occurring after section 115T of the Income-tax Act, for

clause (b), the following clause shall be substituted, namely:––

‘(b) “equity oriented fund” means a fund referred to in clause (a) of the

Explanation to section 112A and the Unit Scheme, 1964 made by the Unit Trust of

India;’.

Amendment

of section

115-O.

Omission of

Explanation

occurring after

section 115Q.

Amendment

of section

115R.

42 of 1999.

28 of 2005.

Amendment

of section

115T.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

301

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

(A) in sub-section (1),—

(a) in clause (iv), the word “or” shall be inserted at the end;

(b) after clause (iv), the following clauses shall be inserted, namely:––

“(v) being a resident, other than an individual, which enters into a

financial transaction of an amount aggregating to two lakh fifty thousand

rupees or more in a financial year; or

(vi) who is the managing director, director, partner, trustee, author,

founder, karta, chief executive officer, principal officer or office bearer of

the person referred to in clause (v) or any person competent to act on

behalf of the person referred to in clause (v),”;

(B) in the Explanation occurring after sub-section (8), in clause (c), the words

"and issued in the form of a laminated card" shall be omitted.

45. In section 140 of the Income-tax Act, in clause (c), in the second proviso,––

(A) in clause (b), after the words “principal officer thereof;” occurring at the

end, the word “or” shall be inserted;

(B) after clause (b), the following shall be inserted, namely:––

‘(c) where in respect of a company, an application for corporate insolvency

resolution process has been admitted by the Adjudicating Authority under

section 7 or section 9 or section 10 of the Insolvency and Bankruptcy

Code, 2016, the return shall be verified by the insolvency professional appointed

by such Adjudicating Authority.

Explanation.––For the purposes of this clause the expressions

“insolvency professional” and “Adjudicating Authority” shall have the

respective meanings assigned to them in clause (18) of section 3 and clause (1)

of section 5 of the Insolvency and Bankruptcy Code, 2016;’.

46. In section 143 of the Income-tax Act,––

(a) in sub-section (1), in clause (a), after the second proviso, the following

proviso shall be inserted, namely:—

“Provided also that no adjustment shall be made under sub-clause (vi) in

relation to a return furnished for the assessment year commencing on or after

the 1st day of April, 2018;”;

(b) after sub-section (3), the following sub-sections shall be inserted, namely:—

“(3A) The Central Government may make a scheme, by notification in the

Official Gazette, for the purposes of making assessment of total income or loss

of the assessee under sub-section (3) so as to impart greater efficiency,

transparency and accountability by––

(a) eliminating the interface between the Assessing Officer and the

assessee in the course of proceedings to the extent technologically

feasible;

(b) optimising utilisation of the resources through economies of

scale and functional specialisation;

(3B) The Central Government may, for the purpose of giving effect to the

scheme made under sub-section (3A), by notification in the Official Gazette,

direct that any of the provisions of this Act relating to assessment of total

income or loss shall not apply or shall apply with such exceptions, modifications

and adaptations as may be specified in the notification:

Provided that no direction shall be issued after the 31st day of March, 2020.

Amendment of

section 139A.

Amendment of

section 140.

Amendment of

section 143.

31 of 2016.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

302

(3C) Every notification issued under sub-section (3A) and sub-section (3B)

shall, as soon as may be after the notification is issued, be laid before each

House of Parliament.”.

47. For section 145A of the Income-tax Act, the following sections shall be substituted

and shall be deemed to have been substituted with effect from the 1st day of April, 2017,

namely:—

‘145A. For the purpose of determining the income chargeable under the head

“Profits and gains of business or profession”,––

(i) the valuation of inventory shall be made at lower of actual cost or net

realisable value computed in accordance with the income computation and

disclosure standards notified under sub-section (2) of section 145;

(ii) the valuation of purchase and sale of goods or services and of inventory

shall be adjusted to include the amount of any tax, duty, cess or fee (by whatever

name called) actually paid or incurred by the assessee to bring the goods or

services to the place of its location and condition as on the date of valuation;

(iii) the inventory being securities not listed on a recognised stock

exchange, or listed but not quoted on a recognised stock exchange with regularity

from 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) of section 145;

(iv) the inventory being securities other than those referred to in

clause (iii), shall be valued at lower of actual cost or net realisable value in

accordance with the income computation and disclosure standards notified under

sub-section (2) of section 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 taking into account the extant guidelines issued by the Reserve

Bank of India in this regard:

Provided further that the comparison of actual cost and net realisable

value of securities shall be made category-wise.

Explanation 1.—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 of the Companies Act, 2013;

(b) "recognised stock exchange" shall have the meaning assigned

to it in clause (ii) of Explanation 1 to clause (5) of section 43;

clause (ii) of the Explanation to clause (viia) of sub-section (1) of section 36.

145B. (1) Notwithstanding anything to the contrary contained in section 145,

the interest received by an assessee on any compensation or on enhanced

compensation, as the case may be, shall be deemed to be the income of the previous

year in which it is received.

(2) Any claim for escalation of price in a contract or export incentives shall be

deemed to be the income of the previous year in which reasonable certainty of its

realisation is achieved.

Substitution of

new sections

145A and

145B for

section 145A.

Method of

accounting in

certain cases.

Taxability of

certain

income.

18 of 2013.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

303

(3) The income referred to in sub-clause (xviii) of clause (24) of section 2 shall

be deemed to be the income of the previous year in which it is received, if not charged

to income-tax in any earlier previous year.’.

48. In section 193 of the Income-tax Act, in the proviso, in clause (iv), in the proviso,

after the figures, words and brackets “8% Savings (Taxable) Bonds, 2003”, the words, figures

and brackets “or 7.75% Savings (Taxable) Bonds, 2018” shall be inserted.

49. In section 194A of the Income-tax Act, in sub-section (3), in clause (i), after the

second proviso, the following shall be inserted, namely:—

‘Provided also that in case of payee being a senior citizen, the provisions of

sub-clause (a), sub-clause (b), and sub-clause (c) shall have effect as if for the words

“ten thousand rupees”, the words “fifty thousand rupees” had been substituted.

Explanation.—For the purposes of this clause, “senior citizen” means an

individual resident in India who is of the age of sixty years or more at any time during

the relevant previous year;’.

50. In section 245-O of the Income-tax Act,—

(i) in sub-section (1), the following proviso shall be inserted, namely:—

“Provided that the Authority shall cease to act as an Authority for Advance

Rulings for the purposes of Chapter V of the Customs Act, 1962 on and from the

date of appointment of the Customs Authority for Advance Rulings under

section 28EA of that Act.”;

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

“(1A) On and from the date of appointment of the Customs Authority for

Advance Rulings referred to in the proviso to sub-section (1), the Authority

shall act as an Appellate Authority, for the purpose of Chapter V of the Customs

Act, 1962:

Provided that the Authority shall not admit any appeal against any ruling

or order passed earlier by it in the capacity of the Authority for Advance Rulings

in relation to any matter under Chapter V of the Customs Act, 1962 after the date

of such appointment of the Customs Authority for Advance Rulings.”;

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

“Provided that where the Authority is dealing with an application seeking

advance ruling in any matter relating to this Act, the revenue Member of the

Bench shall be such Member as referred to in sub-clause (i) of clause (c) of

sub-section (3).”.

51. In section 245Q of the Income-tax Act, in sub-section (1), the words, letter and

figures “or under Chapter V of the Customs Act, 1962” shall be omitted with effect from the

date of appointment of the Customs Authority for Advance Rulings under section 28EA of

the Customs Act, 1962.

52. In section 253 of the Income-tax Act, in sub-section (1), in clause (a), after the

word, figures and letter “section 271A”, the word, figures and letter “, section 271J” shall be

inserted.

53. In section 271FA of the Income-tax Act,—

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

be substituted;

(b) for the words “five hundred rupees”, the words “one thousand rupees” shall

be substituted.

54. In section 276CC of the Income-tax Act, in the proviso, in clause (ii), in sub-clause (b),

for the words “tax payable by him”, the words “tax payable by such person, not being a

company,” shall be substituted.

Amendment

of section

193.

Amendment

of section

245-O.

Amendment

of section

194A.

Amendment

of section

245Q.

52 of 1962.

Amendment

of section

271FA.

Amendment

of section

276CC.

Amendment

of section

253.

52 of 1962.

TAMIL NADU GOVERNMENT GAZETTE

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55. In section 286 of the Income-tax Act,––

(a) in sub-section (2), for the words, brackets and figures “on or before the due

date specified under sub-section (1) of section 139, for furnishing the return of income

for the relevant accounting year”, the words “within a period of twelve months from

the end of the said reporting accounting year” shall be substituted and shall be deemed

to have been substituted with effect from the 1st day of April, 2017;

(b) in sub-section (3), after the word, brackets and figure “sub-section (2)”, the

words, brackets and figure “and sub-section (4)” shall be inserted and shall be deemed

to have been inserted with effect from the 1st day of April, 2017;

(i) after the words “reporting accounting year”, the words “within the

period as may be prescribed” shall be inserted and shall be deemed to have been

inserted with effect from the 1st day of April, 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 inserted with effect from the 1st day of April, 2017, namely:—

“(a) where the parent entity is not obligated to file the report of the

nature referred to in sub-section (2);”;

(d) in sub-section (5),––

(i) 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 effect from the 1st day of April, 2017;

(ii) in clause (e), for the word “entities”, the word “entity” shall be

substituted and shall be deemed to have been substituted with effect from the

1st day of April, 2017;

(e) in sub-section (9),––

(A) for clause (b), the following clause shall be substituted and shall be

deemed to have been substituted with effect from the 1st day of April, 2017,

namely:––

‘(b) “agreement” means a combination of all of the following

agreements, namely:––

(i) an agreement entered into under sub-section (1) of section 90

or sub-section (1) of section 90A; and

(ii) an agreement for exchange of the report referred to in

sub-section (2) and notified by the Central 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 (i) or

sub-clause (ii)” shall be substituted and shall be deemed to have been

substituted with effect from the 1st day of April, 2017;

“clause (i) or clause (ii)”, the words, brackets and figures “sub-clause (i) or

sub-clause (ii)” shall be substituted and shall be deemed to have been

substituted with effect from the 1st day of April, 2017;

(D) in clause (j), 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 1st day of

April, 2017.

Amendment

of section

286.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

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Substitution of

references to

certain

expressions by

certain other

expressions.

Amendment

of section 11.

Amendment of

section 1.

Amendment of

section 2.

52 of 1962.

51 of 1975.

CHAPTER IV

INDIRECT TAXES

Customs

56. Throughout the Customs Act, 1962 (hereinafter referred to as the Customs Act),

for the words “import manifest” and “export manifest”, wherever they occur, the words

“arrival manifest or import manifest” and “departure manifest or export manifest” shall,

respectively, be substituted, and such other consequential amendments as the rules of

grammar may require shall also be made.

57. In the Customs Act, in section 1, in sub-section (2), after the word “India”, the

words “and, save as otherwise provided in this Act, it applies also to any offence or

contravention thereunder committed outside India by any person” shall be inserted.

58. In the Customs Act, in section 2,—

(i) for clause (2), the following clause shall be substituted, namely:—

‘(2) “assessment” means determination of the dutiability of any goods

and the amount of duty, tax, cess or any other sum so payable, if any, under this

Act or under the Customs Tariff Act, 1975 (hereinafter referred to as the Customs

Tariff Act) or under any other law for the time being in force, with reference to—

(a) the tariff classification of such goods as determined in accordance

with the provisions of the Customs Tariff Act;

(b) the value of such goods as determined in accordance with the

provisions of this Act and the Customs Tariff Act;

consequent upon any notification issued therefor under this Act or under

the Customs Tariff Act or under any other law for the time being in force;

(d) the quantity, weight, volume, measurement or other specifics

where such duty, tax, cess or any other sum is leviable on the basis of the

quantity, weight, volume, measurement or other specifics of such goods;

(e) the origin of such goods determined in accordance with the

provisions of the Customs Tariff Act or the rules made thereunder, if the

amount of duty, tax, cess or any other sum is affected by the origin of such

goods;

(f) any other specific factor which affects the duty, tax, cess or any

other sum payable on such goods,

and includes provisional assessment, self-assessment, re-assessment and any

assessment in which the duty assessed is nil;’;

(ii) in clause (6), for the words “Central Board of Excise and Customs”, the words

“Central Board of Indirect Taxes and Customs” shall be substituted;

(iii) in clause (28), for the words and figure “contiguous zone of India under

section 5”, the words and figure “Exclusive Economic Zone under section 7” shall be

substituted;

(iv) after clause (30A), the following clause shall be inserted, namely:—

‘(30AA) “notification” means notification published in the Official Gazette

and the expression “notify” with its cognate meaning and grammatical variation

shall be construed accordingly;’.

59. In the Customs Act, in section 11, after sub-section (2), the following sub-section

shall be inserted with effect from such date as the Central Government may, by notification

in the Official Gazette, appoint, namely:—

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“(3) Any prohibition or restriction or obligation relating to import or export of any

goods or class of goods or clearance thereof provided in any other law for the time being

in force, or any rule or regulation made or any order or notification issued thereunder,

shall be executed under the provisions of that Act only if such prohibition or restriction

or obligation is notified under the provisions of this Act, subject to such exceptions,

modifications or adaptations as the Central Government deems fit.”.

60. In the Customs Act, in section 17,—

(i) in sub-section (2),—

(a) for the words “the self-assessment of such goods”, the words, figures

and brackets “the entries made under section 46 or section 50 and the self-

assessment of goods referred to in sub-section (1)” shall be substituted;

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

“Provided that the selection of cases for verification shall primarily

be on the basis of risk evaluation through appropriate selection criteria.”;

(ii) in sub-section (3), for the words “verification of self-assessment”, the words

“the purposes of verification” shall be substituted;

(iii) in sub-section (5), the words “regarding valuation of goods, classification,

exemption or concessions of duty availed consequent to any notification issued therefor

under this Act” shall be omitted;

(iv) sub-section (6) shall be omitted.

61. In the Customs Act, in section 18,—

(i) in sub-section (1), in the opening portion, after the word and figures

“section 46”, the words and figures “and section 50” shall be inserted;

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

“(1A) Where, pursuant to the provisional assessment under

sub-section (1), if any document or information is required by the proper officer

for final assessment, the importer or exporter, as the case may be, shall submit

such document or information within such time, and the proper officer shall

finalise the provisional assessment within such time and in such manner, as may

be prescribed.’’;

(iii) in sub-section (3), for the figures and letters “28AB”, the figures and letters

“28AA” shall be substituted and shall be deemed to have been substituted

retrospectively with effect from the 8th day of April, 2011.

62. In the Customs Act, after section 25, the following sections shall be inserted,

namely:—

“25A. Where the Central Government is satisfied that it is necessary in the

public interest so to do, it may, by notification, exempt such of the goods which are

imported for the purposes of repair, further processing or manufacture, as may be

specified therein, from the whole or any part of duty of customs leviable thereon,

subject to the following conditions, namely:—

(a) the goods shall be re-exported after such repair, further processing or

manufacture, as the case may be, within a period of one year from the date on

which the order for clearance of the imported goods is made;

(b) the imported goods are identifiable in the export goods; and

Amendment

of section 17.

Amendment of

section 18.

Insertion of

new sections

25A and 25B.

Inward

processing of

goods.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

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25B. Notwithstanding anything contained in section 20, where the Central

Government is satisfied that it is necessary in the public interest so to do, it may, by

notification, exempt such of the goods which are re-imported after being exported for

the purposes of repair, further processing or manufacture, as may be specified therein,

from the whole or any part of duty of customs leviable thereon, subject to the following

conditions, namely:—

(a) the goods shall be re-imported into India after such repair, further

processing or manufacture, as the case may be, within a period of one year from

the date on which the order permitting clearance for export is made;

(b) the exported goods are identifiable in the re-imported goods; and

63. In the Customs Act, in section 28,—

(i) in sub-section (1), in clause (a), the following proviso shall be inserted,

namely:—

“Provided that before issuing notice, the proper officer shall hold pre-

notice consultation with the person chargeable with duty or interest in such

manner as may be prescribed;”;

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

“(7A) Save as otherwise provided in clause (a) of sub-section (1) or in

sub-section (4), the proper officer may issue a supplementary notice under such

circumstances and in such manner as may be prescribed, and the provisions of

this section shall apply to such supplementary notice as if it was issued under

the said sub-section (1) or sub-section (4).”;

(iii) in sub-section (9),—

(a) the words “where it is possible to do so”, at both the places where

they occur, shall be omitted;

(b) the following provisos shall be inserted, namely:—

“Provided that where the proper officer fails to so determine within

the specified period, any officer senior in rank to the proper officer may,

having regard to the circumstances under which the proper officer was

prevented from determining the amount of duty or interest under

sub-section (8), extend the period specified in clause (a) to a further period

of six months and the period specified in clause (b) to a further period of

one year:

Provided further that where the proper officer fails to determine

within such extended period, such proceeding shall be deemed to have

concluded as if no notice had been issued.”;

(iv) after sub-section (9), the following sub-section shall be inserted, namely:—

“(9A) Notwithstanding anything contained in sub-section (9), where the

proper officer is unable to determine the amount of duty or interest under

sub-section (8) for the reason that—

(a) an appeal in a similar matter of the same person or any other

person is pending before the Appellate Tribunal or the High Court or the

Supreme Court; or

(b) an interim order of stay has been issued by the Appellate Tribunal

or the High Court or the Supreme Court; or

Outward

processing of

goods.

Amendment of

section 28.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

308

order to keep such matter pending; or

(d) the Settlement Commission has admitted an application made by

the person concerned,

the proper officer shall inform the person concerned the reason for non-

determination of the amount of duty or interest under sub-section (8) and in

such case, the time specified in sub-section (9) shall apply not from the date of

notice, but from the date when such reason ceases to exist.”;

(v) after sub-section (10), the following sub-sections shall be inserted, namely:—

“(10A) Notwithstanding anything contained in this Act, where an order

for refund under sub-section (2) of section 27 is modified in any appeal and the

amount of refund so determined is less than the amount refunded under said

sub-section, the excess amount so refunded shall be recovered along with interest

thereon at the rate fixed by the Central Government under section 28AA, from

the date of refund up to the date of recovery, as a sum due to the Government.

(10B) A notice issued under sub-section (4) shall be deemed to have been

issued under sub-section (1), if such notice demanding duty is held not sustainable

in any proceeding under this Act, including at any stage of appeal, for the

reason that the charges of collusion or any wilful mis-statement or suppression

of facts to evade duty has not been established against the person to whom

such notice was issued and the amount of duty and the interest thereon shall be

computed accordingly.”;

(vi) after Explanation 3, the following Explanation shall be inserted, namely:—

“Explanation 4.—For the removal of doubts, it is hereby declared that

in cases where notice has been issued for non-levy, not paid, short-levy or

short-paid or erroneous refund after the 14th day of May, 2015, but before the

date on which the Finance Bill, 2018 receives the assent of the President, they

shall continue to be governed by the provisions of section 28 as it stood

immediately before the date on which such assent is received.”.

64. In the Customs Act, in section 28E,—

(i) clause (a) shall be omitted;

(ii) for clause (b), the following clause shall be substituted, namely:—

‘(b) “advance ruling” means a written decision on any of the questions

referred to in section 28H raised by the applicant in his application in respect of

any goods prior to its importation or exportation;’;

(iii) after clause (b), the following clause shall be inserted, namely:—

‘(ba) “Appellate Authority” means the Authority for Advance Rulings

constituted under section 245-O of the Income-tax Act, 1961;’;

(iv) for clause (c), the following clause shall be substituted, namely:—

‘(c) “applicant” means any person,—

(i) holding a valid Importer-exporter Code Number granted under

section 7 of the Foreign Trade (Development and Regulation) Act, 1992; or

(ii) exporting any goods to India; or

(iii) with a justifiable cause to the satisfaction of the Authority,

who makes an application for advance ruling under section 28H;’;

(v) for clause (e), the following clause shall be substituted, namely:—

‘(e) “Authority” means the Customs Authority for Advance Rulings

appointed under section 28EA;’;

43 of 1961.

22 of 1992.

Amendment of

section 28E.

July 11, 2018]

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(vi) in clause (f), for the word “Authority”, the words “Appellate Authority”

shall be substituted;

(vii) in clause (g), for the word “Authority”, the words “Appellate Authority”

shall be substituted.

65. In the Customs Act, after section 28E, the following section shall be inserted,

namely:—

‘‘28EA. (1) The Board may, for the purposes of giving advance rulings under

this Act, by notification, appoint an officer of the rank of Principal Commissioner of

Customs or Commissioner of Customs to function as a Customs Authority for Advance

Rulings:

Provided that till the date of appointment of the Customs Authority for Advance

Rulings, the existing Authority for Advance Rulings constituted under section 245-O

of the Income-tax Act, 1961 shall continue to be the Authority for giving advance

rulings for the purposes of this Act.

(2) The offices of the Authority may be established in New Delhi and at such

other places, as the Board may deem fit.

(3) Subject to the provisions of this Act, the Authority shall exercise the powers

and authority conferred on it by or under this Act.’’.

66. In the Customs Act, in section 28F,—

(i) in sub-section (1),—

(a) in the opening paragraph, for the words “the Authority for giving

advance rulings for the purposes of this Act and the said Authority”, the words

“the Appellate Authority for deciding appeal under this Chapter and the said

Appellate Authority” shall be substituted;

(b) in the proviso, for the word “Authority”, the words “Appellate

Authority” shall be substituted;

(ii) after sub-section (2), the following sub-section shall be inserted, namely:—

“(3) On and from the date of appointment of the Customs Authority for

Advance Rulings, every application and proceeding pending before the erstwhile

Authority for Advance Rulings shall stand transferred to the Authority from the

stage at which such application or proceeding stood as on the date of such

appointment.”.

67. In the Customs Act, in section 28H,—

(i) in sub-section (2),—

(a) for clause (d), the following clause shall be substituted, namely:—

“(d) applicability of notifications issued in respect of tax or duties

under this Act or the Customs Tariff Act, 1975 or any tax or duty chargeable

under any other law for the time being in force in the same manner as duty

of customs leviable under this Act or the Customs Tariff Act;”;

(b) after clause (e), the following clause shall be inserted, namely:—

“(f) any other matter as the Central Government may, by notification,

specify.”;

(ii) after sub-section (4), the following sub-section shall be inserted, namely:—

‘(5) The applicant may be represented by any person resident in India

who is authorised in this behalf.

43 of 1961.

51 of 1975.

Insertion of

new section

28EA.

Customs

Authority for

Advance

Rulings.

Amendment of

section 28F.

Amendment of

section 28H.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

310

Explanation.—For the purposes of this sub-section “resident” shall have

the same meaning as assigned to it in clause (42) of section 2 of the Income-tax

Act, 1961.’.

68. In the Customs Act, in section 28-I, in sub-section (6), for the words “six months”,

the words “three months” shall be substituted.

69. In the Customs Act, in section 28K, in sub-section (1),—

(i) the brackets and words “(after excluding the period beginning with the date of

such advance ruling and ending with the date of order under this sub-section)” shall

be omitted;

(ii) the following proviso shall be inserted, namely:—

“Provided that in computing the period of two years referred to in clause (a)

of sub-section (1) of section 28, or five years referred to in sub-section (4)

thereof, for service of notice for recovery of any duty not levied, short-levied,

not paid or short-paid on account of the advance ruling, the period beginning

with the date of such advance ruling and ending with the date of the order under

this sub-section shall be excluded.”.

70. In the Customs Act, after section 28K, the following section shall be inserted with

effect from such date as the Central Government may, by notification, appoint, namely:—

“28KA. (1) Any officer authorised by the Board, by notification, or the applicant

may file an appeal to the Appellate Authority against any ruling or order passed by the

Authority, within sixty days from the date of the communication of such ruling or order,

in such form and manner as may be prescribed:

Provided that where the Appellate Authority is satisfied that the appellant was

prevented by sufficient cause from presenting the appeal within the period so specified,

it may allow a further period of thirty days for filing such appeal.

(2) The provisions of sections 28-I and 28J shall, mutatis mutandis, apply to the

appeal under this section.’’.

71. In the Customs Act, in section 28L, for the word “Authority” wherever it occurs,

the words “Authority or Appellate Authority” shall be substituted.

72. In the Customs Act, for section 28M, the following section shall be substituted,

namely:—

“28M. (1) The Authority shall follow such procedure as may be prescribed.

(2) The Appellate Authority shall, subject to the provisions of this Chapter, have

power to regulate its own procedure in all matters arising out of the exercise of its powers

and authority under this Act.”.

73. In the Customs Act, in section 30, in sub-section (1),—

(i) after the words “imported goods”, the words “or export goods” shall be

inserted;

(ii) for the words “the prescribed form”, the words “such form and manner as

may be prescribed” shall be substituted.

74. In the Customs Act, in section 41, in sub-section (1),—

(i) after the words “export goods”, the words “or imported goods” shall be

inserted;

(ii) for the words “the prescribed form”, the following shall be substituted,

namely:—

“such form and manner as may be prescribed and in case, the person-in-

charge fails to deliver the departure manifest or export manifest or the export

Amendment

of section 30.

Amendment of

section 28-I.

Appeal.

Amendment

of section 28L.

Amendment

of section 41.

Substitution of

new section for

section 28M.

Amendment of

section 28K.

Insertion of

new section

28KA.

Procedure for

Authority and

Appellate

Authority.

43 of 1961.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

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report or any part thereof within such time, and the proper officer is satisfied

that there is no sufficient cause for such delay, such person-in-charge shall be

liable to pay penalty not exceeding fifty thousand rupees”.

75. In the Customs Act, in section 45, in sub-section (2), in clause (b), after the words

“proper officer”, the words “or in such manner as may be prescribed” shall be inserted.

76. In the Customs Act, in section 46,—

(i) in sub-section (1),—

(a) after the word “electronically”, at both the places where it occurs, the

words “on the customs automated system” shall be inserted;

(b) for the words “in the prescribed form”, the words “in such form and

manner as may be prescribed” shall be substituted;

(ii) in sub-section (3), in the first proviso, for the words “within thirty days of”,

the words “at any time not exceeding thirty days prior to” shall be substituted;

(iii) in sub-section (4), for the words “relating to the imported goods”, the

words “and such other documents relating to the imported goods as may be

prescribed” shall be substituted;

(iv) after sub-section (4), the following sub-section shall be inserted, namely:—

“(4A) The importer who presents a bill of entry shall ensure the following,

namely:—

(a) the accuracy and completeness of the information given

therein;

(b) the authenticity and validity of any document supporting it; and

the goods under this Act or under any other law for the time being in

force.”.

77. In the Customs Act, in section 47, in sub-section (1), in the proviso, for the words

“Provided that”, the following shall be substituted, namely:—

“Provided that such order may also be made electronically through the customs

automated system on the basis of risk evaluation through appropriate selection

criteria:

Provided further that”.

78. In the Customs Act, in section 50,—

(i) in sub-section (1),—

(a) after the word “electronically”, at both the places where it occurs, the

words “on the customs automated system” shall be inserted;

(b) for the words “in the prescribed form”, the words “in such form and

manner as may be prescribed” shall be substituted;

(ii) after sub-section (2), the following sub-section shall be inserted, namely:—

“(3) The exporter who presents a shipping bill or bill of export under this

section shall ensure the following, namely:—

(a) the accuracy and completeness of the information given

therein;

(b) the authenticity and validity of any document supporting it; and

Amendment

of section 45.

Amendment

of section 46.

Amendment of

section 47.

Amendment of

section 50.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

312

the goods under this Act or under any other law for the time being in

force.”.

79. In the Customs Act, in section 51, in sub-section (1), in the proviso, for the words

“Provided that”, the following shall be substituted, namely:—

“Provided that such order may also be made electronically through the customs

automated system on the basis of risk evaluation through appropriate selection criteria:

Provided further that”.

80. In the Customs Act, after Chapter VII, the following Chapter shall be inserted with

effect from such date as the Central Government may, by notification in the Official Gazette,

appoint, namely:—

“CHAPTER VIIA

PAYMENTS THROUGH ELECTRONIC CASH LEDGER

51A. (1) Every deposit made towards duty, interest, penalty, fee or any other

sum payable by a person under the provisions of this Act or under the Customs Tariff

Act, 1975 or under any other law for the time being in force or the rules and regulations

made thereunder, using authorised mode of payment shall, subject to such conditions

and restrictions, be credited to the electronic cash ledger of such person, to be

maintained in such manner, as may be prescribed.

(2) The amount available in the electronic cash ledger may be used for making

any payment towards duty, interest, penalty, fees or any other sum payable under the

provisions of this Act or under the Customs Tariff Act, 1975 or under any other law for

the time being in force or the rules and regulations made thereunder in such manner

and subject to such conditions and within such time as may be prescribed.

(3) The balance in the electronic cash ledger, after payment of duty, interest,

penalty, fee or any other amount payable, may be refunded in such manner as may be

prescribed.

(4) Notwithstanding anything contained in this section, if the Board is satisfied

that it is necessary or expedient so to do, it may, by notification, exempt the deposits

made by such class of persons or with respect to such categories of goods, as may be

specified in the notification, from all or any of the provisions of this section.”.

81. In the Customs Act, in section 54, in sub-section (1),—

(i) for the words “the prescribed form”, the words “such form and manner as

may be prescribed” shall be substituted;

(ii) in the proviso, for the words “the prescribed form”, the words “such form

and manner as may be prescribed” shall be substituted.

82. In the Customs Act, in section 60, in sub-section (1), the following proviso shall

be inserted, namely:—

“Provided that such order may also be made electronically through the customs

automated system on the basis of risk evaluation through appropriate selection

criteria.”.

83. In the Customs Act, in section 68,—

(a) in the first proviso, for the words “Provided that”, the following shall be

substituted, namely:—

“Provided that the order referred to in clause (c) may also be made

electronically through the customs automated system on the basis of risk

evaluation through appropriate selection criteria:

Provided further that”;

Amendment

of section 51.

Insertion of

new Chapter

VIIA.

Payment of

duty, interest,

penalty, etc.

51 of 1975.

Amendment

of section 54.

Amendment

of section 60.

Amendment

of section 68.

July 11, 2018]

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(b) in the second proviso, for the words “Provided further that”, the words

“Provided also that” shall be substituted.

84. In the Customs Act, in section 69, in sub-section (1), the following proviso shall

be inserted, namely:—

“Provided that the order referred to in clause (c) may also be made electronically

through the customs automated system on the basis of risk evaluation through

appropriate selection criteria.”.

85. In the Customs Act, in section 74, in sub-section (1), in clause (iii), for the word

and figures “section 82”, the words, brackets, letter and figures “clause (a) of section 84”

shall be substituted.

86. In the Customs Act, in section 75, in sub-section (1), for the word and figures

“section 82”, the words, brackets, letter and figures “clause (a) of section 84” shall be

substituted.

87. In the Customs Act, in Chapter XI, in the heading, for the word “POST”, the

words “POST, COURIER” shall be substituted.

88. In the Customs Act, in section 83,—

(a) for the word “post”, wherever it occurs, the words “post or courier” shall be

substituted;

(b) for the words “postal authorities” at both the places where they occur, the

words “postal authorities or the authorised courier” shall be substituted.

89. In the Customs Act, in section 84, for the word “post”, wherever it occurs, the

words “post or courier” shall be substituted.

90. In the Customs Act, after Chapter XII, the following Chapter shall be inserted,

namely:—

‘CHAPTER XIIA

AUDIT

99A. The proper officer may carry out the audit of assessment of imported

goods or export goods or of an auditee under this Act either in his office or in the

premises of the auditee in such manner as may be prescribed.

Explanation.—For the purposes of this section, “auditee” means a person

who is subject to an audit under this section and includes an importer or exporter or

custodian approved under section 45 or licensee of a warehouse and any other

person concerned directly or indirectly in clearing, forwarding, stocking, carrying,

selling or purchasing of imported goods or export goods or dutiable goods.’.

91. In the Customs Act, after section 109, the following section shall be inserted,

namely:—

‘109A. Notwithstanding anything contained in this Act, the proper officer or

any other officer authorised by him in this behalf, may undertake controlled delivery

of any consignment of such goods and in such manner as may be prescribed, to—

(a) any destination in India; or

(b) a foreign country, in consultation with the competent authority of

such country to which such consignment is destined.

Explanation.—For the purposes of this section “controlled delivery”

means the procedure of allowing consignment of such goods to pass out of, or

into, the territory of India with the knowledge and under the supervision of

proper officer for identifying the persons involved in the commission of an

offence or contravention under this Act.’.

Amendment

of Chapter

heading.

Audit.

Insertion of

new section

109A.

Power to

undertake

controlled

delivery.

Amendment

of section 69.

Amendment

of section 74.

Amendment

of section 75.

Amendment

of section 83.

Amendment

of section 84.

Insertion of

new Chapter

XIIA.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

314

92. In the Customs Act, in section 110, in sub-section (2), for the proviso, the following

provisos shall be substituted, namely:—

“Provided that the Principal Commissioner of Customs or Commissioner of

Customs may, for reasons to be recorded in writing, extend such period to a further

period not exceeding six months and inform the person from whom such goods were

seized before the expiry of the period so specified:

Provided further that where any order for provisional release of the seized

goods has been passed under section 110A, the specified period of six months shall

not apply.”.

93. In the Customs Act, in section 122, for clauses (b) and (c), the following clause

shall be substituted, namely:—

“(b) up to such limit, by such officers, as the Board may, by notification, specify.”.

94. In the Customs Act, in section 124, after the proviso, the following proviso shall

be inserted, namely:—

“Provided further that notwithstanding issue of notice under this section, the

proper officer may issue a supplementary notice under such circumstances and in

such manner as may be prescribed.”.

95. In the Customs Act, in section 125,—

(i) in sub-section (1), in the proviso, for the words “Provided that”, the following

shall be substituted, namely:—

“Provided that where the proceedings are deemed to be concluded

under the proviso to sub-section (2) of section 28 or under clause (i) of

sub-section (6) of that section in respect of the goods which are not prohibited

or restricted, the provisions of this section shall not apply:

Provided further that”;

(ii) after sub-section (2), the following shall be inserted, namely:—

“(3) Where the fine imposed under sub-section (1) is not paid within a

period of one hundred and twenty days from the date of option given thereunder,

such option shall become void, unless an appeal against such order is pending.

Explanation.—For removal of doubts, it is hereby declared that in cases

where an order under sub-section (1) has been passed before the date on which

the Finance Bill, 2018 receives the assent of the President and no appeal is

pending against such order as on that date, the option under said sub-section

may be exercised within a period of one hundred and twenty days from the date

on which such assent is received.”.

96. In the Customs Act, in section 128A, in sub-section (3), for the words “just and

proper, confirming, modifying or annulling the decision or order appealed against”, the

following shall be substituted, namely:—

“just and proper,—

(a) confirming, modifying or annulling the decision or order appealed

against; or

(b) referring the matter back to the adjudicating authority with directions

for fresh adjudication or decision, as the case may be, in the following cases,

namely:—

(i) where an order or decision has been passed without following

the principles of natural justice; or

Amendment of

section 110.

Amendment of

section 122.

Amendment of

section 124.

Amendment of

section 125.

Amendment of

section 128A.

July 11, 2018]

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(ii) where no order or decision has been passed after re-assessment

under section 17; or

(iii) where an order of refund under section 27 has been issued by

crediting the amount to Fund without recording any finding on the

evidence produced by the applicant.”.

97. In the Customs Act, after section 143, the following section shall be inserted,

namely:—

“143AA. Notwithstanding anything contained in any other provision of this

Act, the Board may, for the purposes of facilitation of trade, take such measures or

prescribe separate procedure or documentation for a class of importers or exporters

or for categories of goods or on the basis of the modes of transport of goods, in order

to,—

(a) maintain transparency in the import and export documentation; or

(b) expedite clearance or release of goods entered for import or export; or

goods; or

(d) maintain balance between customs control and facilitation of legitimate

trade.”.

98. In the Customs Act, after section 151A, the following section shall be inserted,

namely:—

‘151B. (1) The Central Government may enter into an agreement or any other

arrangement with the Government of any country outside India or with such competent

authorities of that country, as it deems fit, for facilitation of trade, enforcing the

provisions of this Act and exchange of information for trade facilitation, effective risk

analysis, verification of compliance and prevention, combating and investigation of

offences under the provisions of this Act or under the corresponding laws in force in

that country.

(2) The Central Government may, by notification, direct that the provisions of

this section shall apply to the contracting State with which reciprocal agreement or

arrangements have been made, subject to such conditions, exceptions or qualifications

as may be specified in that notification.

(3) Subject to the provisions of sub-section (2), the information received under

sub-section (1) may also be used as evidence in investigations and proceedings

under this Act.

(4) Where the Central Government has entered into a multilateral agreement for

exchange of information or documents for the purpose of verification of compliance

in identified cases, the Board shall specify the procedure for such exchange, the

conditions subject to which such exchange shall be made and designation of the

person through whom such information shall be exchanged.

(5) Notwithstanding anything contained in sub-section (1) or sub-section (2)

or sub-section (3), anything done or any action taken or purported to have been

done or taken, in pursuance to any agreement entered into or any other arrangement

made by the Central Government prior to the date on which the Finance Bill, 2018

receives the assent of the President, shall be deemed to have been done or taken

under the provisions of this section.

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

(i) “contracting State” means any country outside India in respect of

which agreement or arrangements have been made by the Central Government

Insertion of

new section

143AA.

Power to

simplify or

provide

different

procedure, etc.,

to facilitate

trade.

Insertion of

new section

151B.

Reciprocal

arrangement

for exchange

information

facilitating

trade.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

316

with the Government or authority of such country through an agreement or

otherwise;

(ii) “corresponding law” means any law in force in the contracting State

corresponding to any of the provisions of this Act or dealing with offences in

that country corresponding to any of the offences under this Act.’.

99. In the Customs Act, for section 153, the following section shall be substituted,

namely:—

“153. (1) An order, decision, summons, notice or any other communication under

this Act or the rules made thereunder may be served in any of the following modes,

namely:—

(a) by giving or tendering it directly to the addressee or importer or exporter

or his customs broker or his authorised representative including employee,

advocate or any other person or to any adult member of his family residing with

him;

(b) by a registered post or speed post or courier with acknowledgement

due, delivered to the person for whom it is issued or to his authorised

representative, if any, at his last known place of business or residence;

it is issued, or to the e-mail address available in any official correspondence of

such person;

(d) by publishing it in a newspaper widely circulated in the locality in

which the person to whom it is issued is last known to have resided or carried

on business; or

(e) by affixing it in some conspicuous place at the last known place of

business or residence of the person to whom it is issued and if such mode is not

practicable for any reason, then, by affixing a copy thereof on the notice board

of the office or uploading on the official website, if any.

(2) Every order, decision, summons, notice or any communication shall be deemed

to have been served on the date on which it is tendered or published or a copy thereof

is affixed or uploaded in the manner provided in sub-section (1).

(3) When such order, decision, summons, notice or any communication is sent

by registered post or speed post, it shall be deemed to have been received by the

addressee at the expiry of the period normally taken by such post in transit unless the

contrary is proved.”.

100. In the Customs Act, in section 157, in sub-section (2),—

(i) in clause (a), after the word “form”, the words “and manner to deliver or

present” shall be inserted;

(ii) for clause (d), the following clauses shall be substituted, namely:—

“(d) the time and manner of finalisation of provisional assessment;

(e) the manner of conducting pre-notice consultation;

(f) the circumstances under which, and the manner in which, supplementary

notice may be issued;

(g) the form and manner in which an application for advance ruling or

appeal shall be made, and the procedure for the Authority, under Chapter VB;

(h) the manner of clearance or removal of imported or export goods;

(i) the documents to be furnished in relation to imported goods;

Substitution of

new section for

section 153.

Modes for

service of notice,

order, etc.

Amendment

of section

157.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

317

(j) the conditions, restrictions and the manner of making deposits in

electronic cash ledger, the utilisation and refund therefrom and the manner of

maintaining such ledger;

(k) the manner of conducting audit;

(l) the goods for controlled delivery and the manner thereof;

(m) the measures and separate procedure or documentation for a class of

importers or exporters or categories of goods or on the basis of the modes of

transport of goods.”.

101. (1) The notification of the Government of India in the Ministry of Finance

(Department of Revenue) number G.S.R. 850 (E), dated the 8th July, 2017, amending the

notification number G.S.R. 785 (E), dated the 30th June, 2017 which was issued in exercise of

the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 and sub-

section (12) of section 3 of the Customs Tariff Act, 1975, shall be deemed to have, and

always to have, for all purposes, come into force on and from the 1st day of July, 2017.

(2) Refund shall be made of all such integrated tax which has been collected, but

which would not have been so collected, had the amendement made vide the notification

referred to in sub-section (1) been in force at all material times:

Provided that an application for claim of integrated tax shall be made within a period

of six months from the date on which the Finance Bill, 2018 receives the assent of the President.

Customs Tariff

102. In the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff

Act), in section 3,—

(i) in sub-section (7), after the word, brackets and figure “sub-section (8)”, the

words, brackets, figure and letter “or sub-section (8A), as the case may be” shall be

inserted;

(ii) after sub-section (8), the following sub-section shall be inserted, namely:—

‘(8A) Where the goods deposited in a warehouse under the provisions

of the Customs Act, 1962 are sold to any person before clearance for home

consumption or export under the said Act, the value of such goods for the

purpose of calculating the integrated tax under sub-section (7) shall be,—

(a) where the whole of the goods are sold, the value determined

under sub-section (8) or the transaction value of such goods, whichever

is higher; or

(b) where any part of the goods is sold, the proportionate value of

such goods as determined under sub-section (8) or the transaction value

of such goods, whichever is higher:

Provided that where the whole of the warehoused goods or any

part thereof are sold more than once before such clearance for home

consumption or export, the transaction value of the last such transaction

shall be the transaction value for the purposes of clause (a)

or clause (b):

Provided further that in respect of warehoused goods which remain

unsold, the value or the proportionate value, as the case may be, of

such goods shall be determined in accordance with the provisions of

sub-section (8).

Explanation.— For the purposes of this sub-section, the expression

“transaction value”, in relation to warehoused goods, means the amount

paid or payable as consideration for the sale of such goods.’;

Amendment of

notification issued

under sub-section (1)

of section 25 of

Customs Act and sub-

section (12) of section

3 of

Customs Tariff Act,

retrospectively.

52 of 1962.

51 of 1975.

Amendment

of Customs

Tariff Act,

1975.

51 of 1975.

52 of 1962.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

318

(iii) in sub-section (9), after the word, brackets and figures “sub-section (10)”,

the words, brackets, figures and letter “or sub-section (10A), as the case may be”

shall be inserted;

(iv) after sub-section (10), the following sub-section shall be inserted, namely:—

‘(10A) Where the goods deposited in a warehouse under the provisions

of the Customs Act, 1962 are sold to any person before clearance for home

consumption or export under the said Act, the value of such goods for the

purpose of calculating the goods and services tax compensation cess under

sub-section (9) shall be,—

(a) where the whole of the goods are sold, the value determined

under sub-section (10) or the transaction value of such goods, whichever

is higher; or

(b) where any part of the goods is sold, the proportionate value of

such goods as determined under sub-section (10) or the transaction

value of such goods, whichever is higher:

Provided that where the whole of the warehoused goods or any

part thereof are sold more than once before such clearance for home

consumption or export, the transaction value of the last of such transaction

shall be the transaction value for the purposes of clause (a) or clause (b):

Provided further that in respect of warehoused goods which

remain unsold, the value or the proportionate value, as the case may be,

of such goods shall be determined in accordance with the provisions of

sub-section (10).

Explanation.—For the purposes of this sub-section, the expression

“transaction value”, in relation to warehoused goods, means the amount

paid or payable as consideration for the sale of such goods.’.

103. In the Customs Tariff Act, the First Schedule,—

(a) shall be amended in the manner specified in the Second Schedule;

(b) shall also be amended in the manner specified in the Third Schedule.

104. In the Customs Tariff Act,—

(a) in the Second Schedule, after Note 3, the following Note shall be inserted,

namely:—

“4. In respect of all other goods which are not covered under column (2)

of this Schedule, the rate of duty shall be ‘Nil’.”;

(b) the Second Schedule shall be amended in the manner specified in the Fourth

Schedule.

Service tax

105. (1) Notwithstanding anything contained in section 66, as it stood prior to the

1st day of July, 2012, or in section 66B, as it stood prior to the 1st day of July, 2017, of

Chapter V of the Finance Act, 1994, as it stood prior to its omission vide section 173 of the

Central Goods and Services Tax Act, 2017 (hereinafter referred to as the said Chapter), no

service tax shall be levied or collected in respect of taxable services provided or agreed to be

provided by the Naval Group Insurance Fund by way of life insurance to personnel of

Coast Guard under the Group Insurance Schemes of the Central Government, during the

period commencing from the 10th day of September, 2004 and ending with the 30th day of

June, 2017 (both days inclusive).

Special provision

for exemption

from service tax in

certain cases

relating to life

insurance

services provided

by Naval Group

Insurance Fund

to personnel of

Coast Guard,

retrospectively.

Amendment

of First

Schedule.

Amendment

of Second

Schedule.

32 of 1994.

12 of 2017.

52 of 1962.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

319

(2) Refund shall be made of all such service tax which has been collected, but which

would not have been so collected, had sub-section (1) been in force at all material times:

Provided that an application for the claim of refund of service tax shall be made within

a period of six months from the date on which the Finance Bill, 2018 receives the assent of

the President.

(3) Notwithstanding the omission of the said Chapter, the provisions of the said

Chapter shall apply for refund under this section retrospectively as if the said Chapter had

been in force at all material times.

106. (1) Notwithstanding anything contained in section 66B of Chapter V of the

Finance Act, 1994, as it stood prior to its omission vide section 173 of the Central Goods and

Services Tax Act, 2017 (hereinafter referred to as the said Chapter), no service tax shall be

levied or collected in respect of taxable services provided or agreed to be provided by the

Goods and Services Tax Network to the Central Government or the State Government or the

Union territory Administration, during the period commencing from the 28th day of March,

2013 and ending with the 30th day of June, 2017 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected, but which

would not have been so collected, had sub-section (1) been in force at all material times:

Provided that an application for the claim of refund of service tax shall be made within

a period of six months from the date on which the Finance Bill, 2018 receives the assent of

the President.

(3) Notwithstanding the omission of the said Chapter, the provisions of the said

Chapter shall apply for refund under this section retrospectively as if the said Chapter had

been in force at all material times.

107. (1) Notwithstanding anything contained in section 66B of Chapter V of the

Finance Act, 1994, as it stood prior to its omission vide section 173 of the Central Goods and

Services Tax Act, 2017 (hereinafter referred to as the said Chapter), no service tax, leviable

on the consideration paid to the Government in the form of Government’s share of profit

petroleum, as defined in the contract entered into by the Government in this behalf, shall be

levied or collected in respect of taxable services provided or agreed to be provided by the

Government by way of grant of license or lease to explore or mine petroleum crude or natural

gas or both, during the period commencing from the 1st day of April, 2016 and ending with

the 30th day of June, 2017 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected, but which

would not have been so collected, had sub-section (1) been in force at all material times:

Provided that an application for the claim of refund of service tax shall be made within

a period of six months from the date on which the Finance Bill, 2018 receives the assent of

the President.

(3) Notwithstanding the omission of the said Chapter, the provisions of the said

Chapter shall apply for refund under this section retrospectively as if the said Chapter had

been in force at all material times.

CHAPTER V

REPEAL AND SAVINGS OF CERTAIN ENACTMENTS

108. (1) The enactments specified in the third column of the Fifth Schedule are hereby

repealed to the extent specified in the fourth column thereof.

(2) Notwithstanding the repeal under sub-section (1), such repeal shall not—

(a) affect any other law in which the repealed enactment has been applied,

incorporated or referred to;

Special provision

for exemption from

service tax in certain

cases relating to

services provided or

agreed to be

provided by Goods

and Services Tax

Network,

retrospectively.

Special

provision for

retrospective

exemption from

service tax on

Government’s

share of profit

petroleum.

32 of 1994.

12 of 2017.

32 of 1994.

12 of 2017.

Repeal and

savings of

certain

enactments.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

320

(b) affect the validity, invalidity, effect or consequences of anything already

done or suffered or any right, title, obligation or liability already acquired, accrued or

incurred or any remedy or proceeding in respect thereof, or any release or discharge

of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity

already granted, or the proof of any past act or thing under the repealed enactment;

of pleading, practice or procedure, or existing usage, custom, privilege, restriction,

exemption, office or appointment, notwithstanding that the same respectively may

have been in any manner affirmed or recognised or derived by, in or from any enactment

hereby repealed;

(d) revive or restore any jurisdiction, office, custom, liability, right, title, privilege,

restriction, exemption, usage, practice, procedure or other matter or thing not now

existing or in force.

(3) The mention of particular matters in sub-section (1) shall not be held to prejudice

or affect the general application of section 6 of the General Clauses Act, 1897, with regard to

the effect of repeals.

109. Notwithstanding the repeal of the enactments specified in the Fifth Schedule,

the proceeds of duties levied under the said enactments immediately preceding the date on

which the Finance Bill, 2018 receives the assent of the President, shall,—

(i) if collected by the collecting agencies but not paid into the Reserve Bank of

India; or

(ii) if not collected by the collecting agencies,

be paid, or collected and paid, as the case may be, into the Reserve Bank of India for being

credited to the Consolidated Fund of India.

CHAPTER VI

SOCIAL WELFARE SURCHARGE

110. (1) There shall be levied and collected, in accordance with the provisions of this

Chapter, for the purposes of the Union, a duty of Customs, to be called a Social Welfare

Surcharge, on the goods specified in the First Schedule to the Customs Tariff Act, 1975

(hereinafter referred to as the Customs Tariff Act), being the goods imported into India, to

fulfil the commitment of the Government to provide and finance education, health and social

security.

(2) The Central Government may, after due appropriation made by Parliament by law in

this behalf, utilise such sums of money of the Social Welfare Surcharge levied under this

Chapter for the purposes specified in sub-section (1), as it may consider necessary.

(3) The Social Welfare Surcharge levied under sub-section (1), shall be calculated at

the rate of ten per cent. on the aggregate of duties, taxes and cesses which are levied and

collected by the Central Government in the Ministry of Finance (Department of Revenue)

under section 12 of the Customs Act, 1962 and any sum chargeable on the goods specified

in sub-section (1) under any other law for the time being in force, as an addition to, and in

the same manner as, a duty of customs, but not including—

(a) the safeguard duty referred to in sections 8B and 8C of the Customs Tariff Act;

(b) the countervailing duty referred to in section 9 of the Customs Tariff Act;

(d) the Social Welfare Surcharge on imported goods levied under sub-section (1).

(4) The Social Welfare Surcharge on imported goods shall be in addition to any other

duties of customs or tax or cess chargeable on such goods, under the Customs Act, 1962 or

any other law for the time being in force.

Collection

and payment

of arrears of

duties.

Social Welfare

Surcharge on

imported

goods.

10 of 1897.

51 of 1975.

52 of 1962.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

321

(5) The provisions of the Customs Act, 1962 and the rules and regulations made

thereunder, including those relating to assessment, non-levy, short-levy, refunds,

exemptions, interest, appeals, offences and penalties shall, as far as may be, apply in

relation to the levy and collection of the Social Welfare Surcharge on imported goods as

they apply in relation to the levy and collection of duties of customs on such goods under

the Customs Act, 1962 or the rules or the regulations, as the case may be.

CHAPTER VII

ROAD AND INFRASTRUCTURE CESS

111. (1) There shall be levied and collected, in accordance with the provisions of this

Chapter, for the purposes of the Union, an additional duty of customs, to be called the Road

and Infrastructure Cess, on the goods specified in the Sixth Schedule (hereinafter referred

to as scheduled goods), being the goods imported into India at the rates specified in the

said Schedule for the purpose of financing infrastructure projects.

(2) The additional duty of the customs referred to in sub-section (1) shall be in

addition to any other duties of customs chargeable on scheduled goods under the Customs

Act, 1962 or any other law for the time being in force.

(3) The provisions of the Customs Act, 1962 and the rules and regulations made

thereunder, including those relating to assessment, non-levy, short-levy, refunds,

exemptions, interest, appeals, offences and penalties shall, as far as may be, apply in

relation to the levy and collection of the additional duty of customs leviable under this

section in respect of scheduled goods as they apply in relation to the levy and collection of

the duties of customs on scheduled goods under the said Act or the rules and regulations,

as the case may be.

112. (1) There shall be levied and collected, in accordance with the provisions of this

Chapter, for the purposes of the Union, an additional duty of excise, to be called the Road

and Infrastructure Cess, on the goods specified in the Sixth Schedule (hereinafter referred

to as scheduled goods), being the goods manufactured or produced, at the rates specified

in the said Schedule for the purpose of financing infrastructure projects.

(2) The cess leviable under sub-section (1), chargeable on the scheduled goods shall

be in addition to any other duties of excise chargeable on such goods under the Central

Excise Act, 1944 or any other law for the time being in force.

(3) The provisions of the Central Excise Act, 1944 and the rules made thereunder,

including those relating to assessment, non-levy, short-levy, refunds, exemptions, interest,

appeals, offences and penalties shall, as far as may be, apply in relation to the levy and

collection of the cess leviable under this section in respect of scheduled goods as they

apply in relation to the levy and collection of the duties of excise on scheduled goods

under the said Act or the rules, as the case may be.

CHAPTER VIII

MISCELLANEOUS

PART I

AMENDMENTS TO THE GOVERNMENT SAVINGS BANKS ACT, 1873

113. The provisions of this Part shall come into force on such date as the Central

Government may, by notification in the Official Gazette, appoint.

114. In the Government Savings Banks Act, 1873 (hereafter in this Part referred to as

the principal Act), for the long title, the following shall be substituted, namely:—

“An Act to regulate and channelise the savings from general public into

Government Savings Schemes.”.

Road and

Infrastructure

Cess on

imported

goods.

52 of 1962.

Commencement

of this Part.

Substitution of

long title to

Act 5 of 1873.

Road and

Infrastructure

Cess on

excisable

goods.

52 of 1962.

1 of 1944.

52 of 1962.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

322

115. In the principal Act, in section 1, in the short title, for the word “Banks”, the word

“Promotion” shall be substituted.

116. In the principal Act, for the word “Secretary”, wherever it occurs, the words

“Authorised Officer” shall be substituted.

117. Section 2 of the principal Act shall be omitted.

118. For section 3 of the principal Act, the following sections shall be substituted,

namely:—

‘3. In this Act, unless the context otherwise requires,—

(a) “account” means an account opened under any of the Savings

Schemes;

(b) “administrator” means an administrator as defined in clause (a) of

section 2 of the Indian Succession Act, 1925;

(i) in the case of a Post Office Savings Bank, an officer authorised

by the Director General Posts; and

(ii) in the case of State Bank of India or a banking company or any

other company or institution, an officer so authorised by State Bank of

India or that banking company or that other company or that institution,

as the case may be;

(d) “banking company” means a banking company as defined in clause

(e) ‘‘depositor” means an individual by whom, or on whose behalf money

has been deposited in a Government Savings Bank and “deposit” means the

money so deposited;

(f) “executor” means an executor as defined in clause (c) of section 2 of

the Indian Succession Act, 1925;

(g) “Government Savings Bank” means—

(i) a Post Office Savings Bank; or

(ii) State Bank of India or a banking company, or any other company

or institution, as the Central Government may, by notification in the Official

Gazette, specify for the purposes of this Act;

(h) “guardian”, in relation to a minor or a person of unsound mind means—

(i) either of the parents;

(ii) where neither parent is alive or where neither or the only living

parent is incapable of acting as such, a person entitled under the law for

the time being in force to have the care of the property of a minor or a

person of unsound mind, as the case may be;

(iii) legal guardian appointed by a court;

(i) “minor” means a person who has not attained the age of majority

under the Indian Majority Act, 1875;

(j) “prescribed” means prescribed by rules made under this Act;

Amendment

of short title.

Substitution

of words

‘‘Authorised

Officer’’ for

the word

‘‘Secretary’’

throughout Act.

Omission of

section 2.

Substitution of

new sections 3,

3A and 3B for

section 3.

Definitions.

10 of 1949.

39 of 1925.

9 of 1875.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

323

(k) “Savings Schemes” means the Government Savings Schemes,

including Savings Certificates and Public Provident Fund Scheme, listed in the

Schedule;

(l) “Schedule” means the Schedule annexed to this Act.

3A. (1) The Central Government may, by notification in the Official Gazette,

frame new Savings Schemes or amend or discontinue existing Savings Schemes to

promote household savings in the country.

(2) The Central Government may, by notification in the Official Gazette, include

or omit or amend Savings Schemes in the Schedule.

(3) The notification referred to in sub-section (1) may include any or all of the

following provisions, depending on the design of such Scheme, namely:—

(a) the persons who shall be eligible to make deposit in a Savings Scheme;

(b) the terms and conditions subject to which deposit may be made;

payable on the deposit;

(d) the maximum and minimum limits of deposit;

(e) premature closure, withdrawal of deposit, grant of loans against

deposit and transfer of deposit;

(f) any other provision depending on the purpose and design of the

Savings Scheme.

3B. (1) A minor who has attained the age of ten years may open and operate an

account in the Government Savings Bank, if so permitted under a Savings Scheme.

(2) Subject to the provisions of sub-section (1), the guardian of a minor may

open and operate an account on behalf of the minor, till he becomes a major.’.

119. In section 4 of the principal Act,—

(a) for sub-section (1), the following sub-section shall be substituted, namely:—

“(1) The depositors shall designate one or more individuals, as nominee

or nominees, who shall be entitled, in the event of the death of the depositor of

a single account, or all the depositors of a joint account, as the case may be, to

receive the sum due, as an owner or a trustee, and to the extent, as may be

specified by the depositor at the time of making nomination:

Provided that if the depositor is a minor or a person of unsound mind, the

nominee shall be designated by the guardian.”;

(b) after sub-section (3), the following sub-section shall be inserted, namely:—

“(4) The transfer of deposit, if permitted under a Savings Scheme, shall

automatically cancel a nomination previously made.”.

120. In section 4A of the principal Act,—

(a) after sub-section (3), the following sub-section shall be inserted, namely:—

“(3A) Where the deposit belongs to a minor or to a person of unsound

mind who dies and there is no nominee immediately before the date of

commencement of Part I of Chapter VIII of the Finance Act, 2018, the deposit

shall be paid to the guardian.”;

(b) in sub-section (4),—

(i) in clause (a), for the words “deceased; and”, the words “deceased in

accordance with such procedure as may be prescribed.” shall be substituted;

(ii) clause (b) shall be omitted;

Framing of

Savings

Schemes.

Deposit by

minor.

Amendment

of section 4.

Amendment

of section 4A.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

324

121. In section 5 of the principal Act,—

(i) for the words “But nothing”, the word “Nothing” shall be substituted;

(ii) for the words “And any creditor”, the words “Every creditor” shall be

substituted;

(iii) for the words “if the latter had obtained”, the words “if that person had

obtained” shall be substituted.

122. In section 6 of the principal Act, for the words, brackets, figures and letter “any

such Bank or any officer empowered under sub-section (4) of section 4A”, the words “a

Government Savings Bank” shall be substituted.

123. In section 7 of the principal Act, for the words, brackets, figures and letter “any

such Bank or any officer empowered under sub-section (4) of section 4A”, the words “a

Government Savings Bank” shall be substituted.

124. After section 7 of the principal Act, the following section shall be inserted,

namely:—

“7A. The Central Government through any designated authority, may call for

such information, documents and evidence as it may deem necessary, in relation to

any account, for carrying out the purposes of this Act.”.

125. In section 8 of the principal Act, for the words “three thousand rupees”, the

words “the prescribed limit” shall be substituted.

126. In section 10 of the principal Act,—

(i) for the words “or on behalf of, any minor”, the words “or on behalf of, a

minor” shall be substituted;

(ii) for the words “for his use”, the words “for the use of such minor” shall be

substituted;

(iii) for the words “receipt of any minor”, the words “receipt of the minor” shall

be substituted.

127. In section 12 of the principal Act,—

(i) for the word “Bank”, the words “Government Savings Bank” shall be

substituted;

(ii) for the words “any proper person”, the word “guardian” shall be substituted;

(iii) for the words “such person”, the words “such guardian” shall be

substituted;

(iv) for the words “nothing in this section authorises payments to any person

other than”, the words “payments shall be made to” shall be substituted.

128. After section 12 of the principal Act, the following section shall be inserted,

namely:—

“12A. Any depositor who suffers from physical infirmity, including blindness

may operate and make a deposit through any literate individual whom he authorises.”.

129. After section 12A of the principal Act as so inserted, the heading shall be omitted.

130. Section 13 of the principal Act shall be omitted.

Amendment

of section 5.

Amendment

of section 6.

Amendment

of section 7.

Insertion of

new section 7A.

Power to

call for

information.

Amendment

of section 8.

Amendment

of section 10.

Amendment

of section 12.

Insertion of

new section

12A.

Operation of

account by

differently

abled persons.

Omission of

heading.

Omission of

section 13.

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131. In section 14 of the principal Act, for the word “Government”, the words

“Central Government” shall be substituted.

132. After section 14 of the principal Act, the following section shall be inserted,

namely:—

“14A. The amount standing to the credit of any depositor in the Public Provident

Fund Scheme shall not be liable to attachment under any decree or order of any court

in respect of any debt or liability incurred by the depositor.”.

133. In section 15 of the principal Act, in sub-section (2),—

(i) clause (a) shall be omitted;

(ii) for clause (b), the following clause shall be substituted, namely:—

‘‘(b) the conditions as to interest or discount relating to deposits generally,

or any class of deposits in particular;”;

(iii) for clause (g), the following clause shall be substituted, namely:—

“(g) the fees that may be levied for discharge of any services under this

Act;”;

(iv) for clause (i), the following clauses shall be substituted, namely:—

“(i) the limit and procedure under clause (a) of sub-section (4) of

section 4A;

(j) the mode of making deposits, such as physical, electronic or through

use of any other tools of communication and information technology;

(k) benchmark for interest rates on deposits with a view to ensure financial

sustainability of Savings Schemes;

(l) amount to be excluded in computing the court fee chargeable under

the Court-fees Act, 1870 for the purpose of section 8 of the Act;

(m) mechanism for redressal of grievances and settlement of disputes;

(n) any other matter which is required to be or may be, prescribed.”.

134. After section 15 of the principal Act, the following shall be inserted, namely:—

“16. (1) The Government Savings Certificates Act, 1959 and the Public

Provident Fund Act, 1968 are hereby repealed.

(2) Notwithstanding such repeal and without prejudice to the provisions

contained in the General Clauses Act, 1897, with respect to repeals—

(a) anything done or any action taken or purported to have been done or

taken, including any rule, notification, order or notice made or issued or any

direction given under the repealed enactments shall be deemed to have been

done or taken under the corresponding provisions of this Act;

(b) subject to the provisions of clause (a), any instrument executed or

certificate issued, or anything done under or in pursuance of any repealed

enactment shall, if is in force at the commencement of Part I of Chapter VIII of

the Finance Act, 2018, continue to be in force in so far as it could have been

executed, or issued or done under or in pursuance of such Part, shall have

effect as if the same has been executed, issued or done under or in pursuance

of the provisions contained in the aforesaid Part;

enactments shall be deemed to be deposits or holdings in the Savings Scheme

made under the corresponding provisions of this Act; and

(d) any proceeding under the repealed enactments pending immediately

before the commencement of Part I of Chapter VIII of the Finance Act, 2018

before any court shall, subject to the provisions of this Act, continue to be

heard and disposed of by the said court.

Insertion of new

section 14A.

Protection

against

attachment.

Amendment

of section 15.

Insertion of

new section

and Schedule.

46 of 1959.

23 of 1968.

10 of 1897.

7 of 1870.

Repeal and

savings.

Amendment

of section 14.

July 11, 2018]

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18. 10-Year National Plan Savings Certificates

19. 10-Year Treasury Savings Deposits Certificates

20. 12-Year National Plan Savings Certificates

21. 15-Year Annuity Certificates (II series)

22. 10-Year Defence Deposit Certificates

23. 12-Year National Defence Certificates

24. 10-Year National Savings Certificates (I-Issue)

25. 7-Year National Savings Certificates (II-Issue)

26. 7-Year National Savings Certificates (III-Issue)

27. 7-Year National Savings Certificates (IV-Issue)

28. 7-Year National Savings Certificates (V-Issue)

29. 12-Year National Savings Annuity Certificates

30. 5-Year National Development Bonds

31. 6-Year National Savings Certificates (VI-Issue)

32. 6-Year National Savings Certificates (VII-Issue)

33. 10-Year Social Security Certificates

34. Indira Vikas Patras

35. 10-Year National Savings Certificates (IX-Issue).’’.

PART II

AMENDMENT TO THE RESERVE BANK OF INDIA ACT, 1934

135. In the Reserve Bank of India Act, 1934, in section 17, after clause (1), the following

clause shall be inserted, namely:—

“(1A) The accepting of money as deposits, repayable with interest, from banks

or any other person under the Standing Deposit Facility Scheme, as approved by the

Central Board, from time to time, for the purposes of liquidity management;”.

PART III

AMENDMENTS TO THE PRESIDENT’S EMOLUMENTS AND PENSION ACT, 1951

136. Save as otherwise provided, the provisions of this Part shall come into force on

the 1st day of April, 2018.

137. In section 1A of the President’s Emoluments and Pension Act, 1951 (hereafter

referred to as the principal Act in this Part), for the words “one lakh fifty thousand rupees”,

the words “five lakh rupees” shall be substituted and shall be deemed to have been

substituted with effect from the 1st day of January, 2016.

138. In section 2 of the principal Act, in sub-section (2), in clause (b), for the words

“sixty thousand rupees”, the words “one lakh rupees” shall be substituted.

139. In section 3A of the principal Act, in clause (b), in sub-clause (ii), for the words

“twelve thousand rupees”, the words “twenty thousand rupees” shall be substituted.

PART IV

AMENDMENT TO THE SALARIES AND ALLOWANCES OF OFFICERS OF PARLIAMENT ACT, 1953

140. In the Salaries and Allowances of Officers of Parliament Act, 1953, in section 3,

in sub-section (1), for the words “one lakh twenty-five thousand rupees”, the words “four

lakh rupees” shall be substituted and shall be deemed to have been substituted with effect

from 1st January, 2016.

Amendment

of section 17

of Act 2 of

1934.

Amendment

of section 1A.

30 of 1951.

Amendment

of section 2.

Amendment

of section 3A.

Amendment

of section 3 of

Act 20 of

1953.

Commencement of

this Part.

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PART V

AMENDMENTS TO THE SALARY,ALLOWANCES AND PENSION OFMEMBERS OF PARLIAMENT ACT, 1954

141. Save as otherwise provided, the provisions of this Part shall come into force

from the 1st day of April, 2018.

142. In the Salary, Allowances and Pension of Members of Parliament Act, 1954

(hereafter referred to as the principal Act in this Part), section 3 shall be numbered as

sub-section (1) thereof,—

(i) in sub-section (1) as so renumbered, for the words “fifty thousand rupees”,

the words “one lakh rupees” shall be substituted;

(ii) after sub-section (1) as so renumbered, the following sub-section shall be

inserted, namely:—

“(2) The salary and daily allowance of members shall be increased after

every five years commencing from 1st April, 2023 on the basis of Cost Inflation

Index provided under clause (v) of Explanation to section 48 of the Income-tax

Act, 1961.”.

143. In the principal Act, in section 4, in sub-section (1),—

(i) clause (a) shall be omitted;

(ii) in clause (b), the words “and one-fourth of the” shall be omitted;

(iii) in clause (c), in sub-clause (i), the words “and three-fifth of the’’ shall be

omitted.

144. In the principal Act, in section 8A, in sub-section (1),—

(a) for the words “twenty thousand rupees”, the words “twenty-five thousand

rupees” shall be substituted;

(b) in the proviso, for the words “fifteen hundred rupees”, the words “two

thousand rupees” shall be substituted;

“(1A) The pension and additional pension to every person shall be

increased after every five years commencing from 1st April, 2023 on the basis of

Cost Inflation Index provided under clause (v) of Explanation to section 48 of

the Income-tax Act, 1961.”.

145. In the principal Act, in section 8AC, in sub-section (2), the words, brackets and

figures “before the commencement of the Salary, Allowances and Pension of Members of

Parliament (Amendment) Act, 2006” shall be omitted and shall be deemed to have been

omitted with effect from the 15th day of September, 2006.

PART VI

AMENDMENTS TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956

146. The provisions of this Part shall come into force on such date as the Central

Government may, by notification in the Official Gazette, appoint.

147. In the Securities Contracts (Regulation) Act, 1956 (hereafter in this Part referred

to as the principal Act), section 12A shall be numbered as sub-section (1) thereof and after

sub-section (1) as so numbered, the following sub-section shall be inserted, namely:—

“(2) Without prejudice to the provisions of sub-section (1) and section 23-I, the

Securities and Exchange Board of India may, by an order, for reasons to be recorded in

writing, levy penalty under sections 23A, 23B, 23C, 23D, 23E, 23F, 23G, 23GA and 23H

after holding an inquiry in the prescribed manner.”.

Amendment

of section 3.

Amendment

of section 4.

Amendment

of section

8A.

Amendment

of section

8AC.

Commencement

of this Part.

Amendment

of section

12A.

Commencement

of this Part.

30 of 1954.

43 of 1961.

40 of 2006.

42 of 1956.

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148. In section 23 of the principal Act, in sub-section (1), in the long line, after the

words “Adjudicating officer”, the words “or the Securities and Exchange Board of India”

shall be inserted.

149. In section 23A of the principal Act, in sub-clause (a), after the words “bye-laws

of the recognised stock exchange”, the words “or who furnishes false, incorrect or incomplete

information, document, books, return or report” shall be inserted.

150. In section 23E of the principal Act, after the words “mutual fund”, the words “or

real estate investment trust or infrastructure investment trust or alternative investment

fund”, shall be inserted.

151. In section 23G of the principal Act, after the words “periodical returns”, the

words “or furnishes false, incorrect or incomplete periodical returns” shall be inserted.

152. After section 23G of the principal Act, the following section shall be inserted,

namely:—

“23GA. Where a stock exchange or a clearing corporation fails to conduct its

business with its members or any issuer or its agent or any person associated with

the securities markets in accordance with the rules or regulations made by the

Securities and Exchange Board of India and the directions issued by it under this Act,

the stock exchange or the clearing corporations, as the case may be, shall be liable to

penalty which shall not be less than five crore rupees but which may extend to

twenty-five crore rupees or three times the amount of gains made out of such failure,

whichever is higher.”.

153. In section 23-I of the principal Act, in sub-section (1), for the word ‘‘shall’’, the

word ‘‘may’’ shall be substituted.

154. In section 23J of the principal Act,—

(i) for the marginal heading, the following marginal heading shall be substituted,

namely:—

“Factors to be taken into account while adjudging quantum of penalty.”;

(ii) for the word, figures and letter “section 23-I” the words, figures and letters

“section 12A or section 23-I” shall be substituted.

(iii) for the words “the adjudicating officer”, the words “the Securities and

Exchange Board of India or the adjudicating officer” shall be substituted.

155. In section 23JA of the principal Act, after sub-section (4), the following

sub-section shall be inserted, namely:—

“(5) All settlement amounts, excluding the disgorgement amount and legal

costs, realised under this Act shall be credited to the Consolidated Fund of India.”.

156. In section 23JB of the principal Act, in sub-section (1), for the words “by the

adjudicating officer”, the words “under this Act” shall be substituted.

157. After section 23JB of the principal Act, the following section shall be inserted,

namely:—

‘23JC. (1) Where a person dies, his legal representative shall be liable to pay

any sum which the deceased would have been liable to pay, if he had not died, in the

like manner and to the same extent as the deceased:

Provided that, in case of any penalty payable under this Act, a legal

representative shall be liable only in case the penalty has been imposed before the

death of the deceased person.

Amendment of

section 23.

Amendment of

section 23A.

Amendment of

section 23E.

Amendment of

section 23G.

Insertion of

new section

23GA.

Penalty for

failure to

conduct

business in

accordance

with rules, etc.

Amendment

of section 23J.

Amendment of

section 23JA.

Amendment of

section 23JB.

Insertion of

new section

23JC.

Continuance of

proceedings.

Amendment of

section 23-I.

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330

(2) For the purposes of sub-section (1),—

(a) any proceeding for disgorgement, refund or an action for recovery

before the Recovery Officer under this Act, except a proceeding for levy of

penalty, initiated against the deceased before his death shall be deemed to have

been initiated against the legal representative, and may be continued against

the legal representative from the stage at which it stood on the date of the death

of the deceased and all the provisions of this Act shall apply accordingly;

(b) any proceeding for disgorgement, refund or an action for recovery

before the Recovery Officer under this Act, except a proceeding for levy of

penalty, which could have been initiated against the deceased if he had survived,

may be initiated against the legal representative and all the provisions of this

Act shall apply accordingly.

(3) Every legal representative shall be personally liable for any sum payable by

him in his capacity as legal representative if, while his liability for such sum remains

undischarged, he creates a charge on or disposes of or parts with any assets of the

estate of the deceased, which are in, or may come into, his possession, but such

liability shall be limited to the value of the asset so charged, disposed of or parted

with.

(4) The liability of a legal representative under this section shall, be limited to

the extent to which the estate of the deceased is capable of meeting the liability.

Explanation.—For the purposes of this section ‘‘Legal representative” means

a person who in law represents the estate of a deceased person, and includes any

person who intermeddles with the estate of the deceased and where a party sues or is

sued in a representative character, the person on whom the estate devolves on the

death of the party so suing or sued.’.

158. In section 23M of the principal Act,—

(i) after the words “adjudicating officer” at both the places where they occur,

the words “or the Securities and Exchange Board of India” shall be inserted;

(ii) in sub-section (2), for the words, “any of his direction or orders” the words

“the direction or order” shall be substituted.

159. In section 24 of the principal Act,—

(i) for the marginal heading, the following marginal heading shall be

substituted:—

“Contravention by companies;’’;

(ii) in sub-section (1), for the words “an offence”, the words “a contravention

of any of the provisions of this Act or any rule, regulation, direction or order made

thereunder” shall be substituted;

(iii) in sub-section (2), for the words ‘‘an offence under this Act’’, the words ‘‘a

contravention of any of the provisions of this Act or any rule, regulation, direction or

order made thereunder’’ shall be substituted;

(iv) for the word “offence”, wherever it occurs, the word “contravention” shall

be substituted.

PART VII

AMENDMENT TO THE CENTRAL BOARDS OF REVENUE ACT, 1963

160. In the Central Boards of Revenue Act, 1963, with effect from the date on which

the Finance Bill, 2018 receives the assent of the President,—

(a) “the Central Board of Excise and Customs” shall be renamed as “the Central

Board of Indirect Taxes and Customs”;

Amendment

of section

23M.

Amendment

of section 24.

Amendment

of Act 54 of

1963.

July 11, 2018]

TAMIL NADU GOVERNMENT GAZETTE

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(b) throughout the Act, for the words “Excise and Customs”, wherever they

occur, the words “Indirect Taxes and Customs” shall be substituted, and such other

consequential amendments as the rules of grammar may require shall also be made.

PART VIII

AMENDMENT TO THE GOVERNORS (EMOLUMENTS, ALLOWANCES AND PRIVILEGES) ACT, 1982

161. In section 3 of the Governors (Emoluments, Allowances and Privileges) Act,

1982, for the words “one lakh ten thousand” the words “three lakh fifty thousand” shall be

substituted and shall be deemed to have been substituted with effect from the 1st day of

January, 2016.

PART IX

AMENDMENTS TO THE NATIONAL HOUSING BANK ACT, 1987

162. The provisions of this Part shall come into force on such date as the Central

Government may, by notification in the Official Gazette, appoint.

163. In the National Housing Bank Act, 1987 (hereafter in this Part referred to as the

principal Act), in section 3,—

(a) in sub-section (3), for the words “Bombay or at such other place as the

Reserve Bank”, the words “New Delhi or at such other place as the Central

Government” shall be substituted;

(b) in sub-section (4), for the words “the Reserve Bank”, the words “the Central

Government” shall be substituted.

164. In section 4 of the principal Act,—

(a) in sub-section (1), for the proviso, the following proviso shall be substituted,

namely:—

“Provided that the Central Government may, by notification, increase the

authorised capital up to two thousand crore rupees or such other amount as

may be determined by it from time to time.”;

(b) in sub-section (2), the words “the Reserve Bank,” occurring at both the

places shall be omitted;

“(3) The subscribed capital of one thousand four hundred and fifty crore

rupees of the National Housing Bank, which has been subscribed to by the

Reserve Bank, shall stand transferred to, and vested in the Central Government

upon payment of the face value of the subscribed capital, to the Reserve Bank

from such date as may be notified by the Central Government.”.

165. In section 5 of the principal Act, in sub-section (5), the words “, in consultation

with the Reserve Bank, or the Reserve Bank,” shall be omitted.

166. In section 6 of the principal Act,—

(a) in sub-section (1),—

(i) in clause (ca), the words “the Reserve Bank,” shall be omitted;

(ii) in clause (d), for the words “two directors”, the words “one director”

shall be substituted;

(b) in sub-section (2), for the words “in consultation with the Reserve Bank

and directors’’, the words ‘‘the director” shall be substituted.

Amendment of

section 3 of Act

43 of 1982.

Commencement

of this Part.

Amendment

of section 3.

Amendment

of section 4.

53 of 1987.

Amendment

of section 5.

Amendment

of section 6.

Commencement

of this Part.

TAMIL NADU GOVERNMENT GAZETTE

[Part IV—Sec. 4

332

167. In section 7 of the principal Act, in sub-sections (1), (3) and (4), the words

“, in consultation with the Reserve Bank,” shall be omitted.

168. In section 16 of the principal Act, in sub-section (1), for the words and figures

“the Foreign Exchange Regulation Act, 1973”, the words and figures “the Foreign Exchange

Management Act, 1999” shall be substituted.

169. In section 29A of the principal Act, in the Explanation, in clause (II), for the

words and figures “Companies Act, 1956”, the words and figures “Companies Act, 2013”

shall be substituted.

170. In section 33 of the principal Act, in sub-section (2), for the words, brackets and

figures “sub-section (2) of section 227 of the Companies Act, 1956”, the words, brackets

and figures “sub-section (2) of section 143 of the Companies Act, 2013” shall be substituted.

171. In section 33B of the principal Act, in sub-sections (1) and (4), for the words and

figures “Companies Act, 1956”, the words and figures “Companies Act, 2013” shall be

substituted.

172. In section 37 of the principal Act, in sub-sections (1) and (2), for the words “the

Reserve Bank” at both the places where they occur, the words “the Central Government”

shall be substituted.

173. In section 39 of the principal Act, in clause (ii), for the words “the Reserve Bank”,

the words “the Central Government” shall be substituted.

174. In section 40 of the principal Act, in sub-section (1), for the words, brackets and

figures “sub-section (1) of section 226 of the Companies Act, 1956”, the words, brackets

and figures “sub-section (1) of section 141 of the Companies Act, 2013” shall be substituted.

175. In section 43 of the principal Act, in sub-section (5), the words, figures and

letters “, without prejudice to the provisions of section 54AA of the Reserve Bank of India

Act, 1934,” shall be omitted.

176. In section 45A of the principal Act, in sub-section (1), for the words and figures

“Companies Act, 1956”, the words and figures “Companies Act, 2013” shall be substituted.

177. In section 55 of the principal Act,—

(i) in sub-section (1), the words “the Reserve Bank and in consultation with”

shall be omitted;

(ii) in sub-section (3), the words “by the Reserve Bank,” shall be omitted.

PART X

AMENDMENTS TO THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

178. The provisions of this Part shall come into force on such date as the Central

Government may, by notification in the Official Gazette, appoint.

179. In the Securities And Exchange Board of India Act, 1992 (hereafter in this Part

referred to as the principal Act), in section 11,—

(i) after sub-section (4), the following sub-section shall be inserted, namely:—

“(4A) Without prejudice to the provisions contained in sub-sections (1),

(2), (2A), (3) and (4), section 11B and section 15-I, the Board may, by an order,

for reasons to be recorded in writing, levy penalty under sections 15A, 15B,

15C, 15D, 15E, 15EA, 15EB, 15F, 15G, 15H, 15HA and 15HB after holding an

inquiry in the prescribed manner.”;

(ii) in sub-section (5), after the words and figures “the Depositories Act, 1996”,

the words, figures, letters and brackets shall be inserted, namely:—

“or under a settlement made under section 15JB or section 23JA of the

Securities Contracts (Regulation) Act, 1956 or section 19-IA of the Depositories

Act, 1996,”.

Amendment

of section 7.

Amendment

of section 16.

Amendment of

section 29A.

Amendment

of section 33.

Amendment of

section 33B.

Amendment

of section 37.

Amendment

of section 39.

Amendment

of section 40.

Amendment

of section 43.

Amendment of

section 45A.

Amendment

of section 55.

Commencement

of this Part.

Amendment

of section 11.

46 of 1973.

42 of 1999.

1 of 1956.

18 of 2013.

1 of 1956.

18 of 2013.

1 of 1956.

18 of 2013.

1 of 1956.

18 of 2013.

2 of 1934.

1 of 1956.

18 of 2013.

22 of 1996.

15 of 1992.

42 of 1956.

22 of 1996.

July 11, 2018]

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180. In section 11B, of the principal Act,—

(a) in the marginal heading, after the word ‘‘directions’’, the words ‘‘and levy

penalty’’ shall be inserted;

(b) section 11B shall be numbered as sub-section (1) thereof and after sub-

section (1) as so renumbered, the following sub-section shall be inserted, namely:—

“(2) Without prejudice to the provisions contained in sub-section (1),

sub-section (4A) of section 11 and section 15-I, the Board may, by an order, for

reasons to be recorded in writing, levy penalty under sections 15A, 15B, 15C,

15D, 15E, 15EA, 15EB, 15F, 15G, 15H, 15HA and 15HB after holding an inquiry in

the prescribed manner.’’.

181. In the principal Act, in section 15A,—

(i) in clause (a), after the words “fails to furnish the same”, the words “or who

furnishes or files false, incorrect or incomplete information, return, report, books or