ICWAI Amendments Finance Act (2) Applied Direct Taxation download

8/9/2019 ICWAI Amendments Finance Act (2) Applied Direct Taxation download

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1Amendments as per Finance Act(2),2009,:- Applied Direct Taxation

AMENDMENTS BROUGHTS IN THE FINANCE (No. 2) Act, 2009

Amendments made in Income-tax Act

RATES OF INCOME-TAX FOR ASSESSMENT YEAR 2010-11

1.RIm

(A) IIH m AOP/BO ( -)wI, J

I. mm m II IIIw mR. 1,50,000 R. 1,60,000. I , mmw:

UR.1,60,000 N

R.1,60,001R.3,00,000 10%

R.3,00,001R.5,00,000 20%

AR.5,00,000 30%

II. I,gwm I,wg-mg,mmmR.1,80,000R.1,90,000. m mw:

UR.1,90,000 N

R.1,90,001R.3,00,000 10%

K.3,00.001R.5,00,000 20%

AR.5,00,000 30%

III. I,gI,wg65mmg,mmmR.2,25,000R.2,40,000.mmw:

UR.2,40,000 N

R.2,40,001R.3,00,000 10%

R.3,00,001R.5,00,000 20%

AR.5,00,000 30%

Note : Ng I I . C@ 2%,SHgC(SHC)@1%Img.

(B)I-

(1) w m 10% m;R.10,000

(2) w Im R. 10,000 R.1,00020%mwR.20,000 mR.10,000

(3) w mR.20,000 R. 300030%mw mR.20,000.

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4 Amendments as per Finance Act(2),2009,:- Applied Direct Taxation

S80GGB80GGCIm-A,1961g m .

U293ACmA,1956m,w,mm,:()

;(),gggmwmm5%gmIw 349350gmmg.F,gmkg mg B ( ).

Wwmgmg,FAm80GGB80GGCIm-A,1961 g100% m m.

Consequential changes

() S2(24)()Im-Agmm.

() Aw 13B m wg :

() ,g29AR P A, 1951, g 95% ggg g gw , ,gw m,

() S w m g CGm.

() Mg : w (22AAA)2wmBwmmgCGm.

5. Taxation of Limited Liability Partnership (LLP) on the same lines us the taxation scheme

currently prevalent for general partnerships, I.e. taxation In the hands of the entity andexemption from tax In the hands of Its partners (Sections 2(23), 140,167C and 40(A)|[W.e.f. A.Y. 2010-11]

LmLPA,2008mII2009,LLPR(mgw)mw...1-4-2009.

F(N.2)A,2009mwgg/mmw...A.Y.2010-11mk m:

() S 2(23): S2(23) w :

() m mg g IPA, 1932, m LmLPA,2008;

() mggIPA,1932,

,() w,g m, m ;

() mLmLPA,2008;

() mgg IPA,1932,mLmLPA,2008.



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, m g w m m.

() Amm140gggm-:LLPAm g w g g.

Am140ggmLLP,,w,g g w g , g .

() I167C:Lk179wmm,167CwggLmLPA,2008,wmmm m mgwwm,,wwmm g , jm-gg,mm.

A LLP g g q ( )IA,mgmLLPwImIggmmII.I, 45.

() Rmmgm:UgIm-A,m,,mmm( m) wkg m w j gmm- ()() 40.gm:

(1) Img

() OR.1,00,000k- R.50,00090% k-,wm;

() OR.1,00,000k- A60%;

() Ok- A40%;

(2)Im

()OR.75,000k-, R.50,00090% k-,wm;

()OR.75,000k- A60%;

()Ok- A40%;

A mw g m m.F, m

m - m mm. m :

()OR.3,00,000k- R.1,50,00090% k-,wIm;

()Ok- A60%.



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6. Definition of the term manufacture [Section 2(29BA)] [W.e.f. A.Y. 2009-2010]

AmIm-Aggm g.Hw, m m .,jmjwm

.Imkmgwmg,Aw(29DA)2

m,w gmm, m g gjg:

() gmjgwjggm,;

() ggwjgwmm g .

7. Zero Coupon Bonds can also be issued by a Schedule Bank [Section 2(48), 36(1)(iiia) and194A(3)(x)[ [W.r.e.f. A.Y. 2009-10]

wggm g:

() Amm2(48):Ug2(48),m m mwzw z .

W w mw k gzk zgm,Am2(48) k g z.

() Amm36(1)():Cqmmm36(1)() kg w zk.

() Amm 194A(3)():S194A(3)()mDSwgmZCB.

Changes relating to incomes which do not form part of total income [Section 10]

8. Double benefit under section 10(1OC) and section 89 not allowed (Section 10(10C) andsection 89) [W.e.f. A.Y. 2010-11]

V,m.S,m(g)g w w w m .Iw,kgg.Wwmgg,89Im-Akww .

Umm,mm-mm.Sm .S10(10C)mR.5km.m

mgkgmm mm.Hw, m m 10(10C) 89. m. jgmC,wg gm g:

() I89:Wwgm, A 89 g mmm,wmmm



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m10(10C)(),m, m mm m10(10C) ,,m.

() I 10(10C):Cg,A10(10C)ww89mmmm,m10(10C)wm,,m.

9. Extension of time limit to 30th September for filing application for approval under section10(23C) for fund or trust or institution or any university or other educational institution orany hospital or other medical institution [Section 10(23C)] [For the financial year 2008-09 and subsequent years]

S 10(23C) m -(

m ) m m m .F IO(23C)(),(),()(),qkm,m,mgmgm.Ug, (g m ) mk kgmmgwmg.I, g wmq..

ImgAmmg30Smg.2008-09q.Iw,wg 2008-2009, m30Sm2009.

10. Amendment to section 10(23D) of the Income Tax Act, 1961- Incorporating Other PublicSector Banks under the expression Public Sector Bank (SectionIO(23D)[W.e.f.A.Y.2010-11]

Im m PSBk m 10(23D).k10(23D).RBk I gzw -g k.CGmm51%gIDBIBkLm,wgzkRBI.

S k, k10(23D),AmIm-A,1961.H,mmk m.

11. Tax benefits for New Pension System - extended also to self-employed, and tax treatment

of savings under this system as exempt-exempt-taxed (Section 10(44), 115-0,197Aand 80CCD] (W.r.e.f. A.Y. 2009-10)

NwPSm(NPS)m1-1-2004mwCGmm1-1-2004.Sm S Gm, m ( g gz).NPS-27-2-2008IA,1882mgNPS.



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Wwmgmwm-m-()mmg,AmNPSm-g., wg gmmm g,

1. Benefit allowable to NPS Trust:

wgg/mmm NPS:

() I10(44):S10(44)Im-A m NwPSm27-2-2008IA1882mmm.

() Amm115-O:A-()115-0(1A) NPSmmDD.

() SgNPS:AmCVIIF(N.2)A,2004qNPSwmmS.

() Amm197A:A-(I)197ANFSmw.

2. Amm 80CCD: 80CCD Im- A,1961w m.Hw, NPS w -m.,Am-(1)80CCD -m .

F, m CGm m, mm10%.W-m,m10%GIm.

A-(5)80CCDmmmgm.

12. Extension of sunset clause for units in free trade zone under section 10A and for exportoriented undertakings under section 10B by one year i.e., the deduction will be availableup to assessment year 2011-12 [Section 10Aand 10B]

Ug, 10A 10B ImAm2010-11.Am10A10B ..,wm2011-1210w.

13. Clarification regarding computation of exempted profits in the case of units in SpecialEconomic Zones (SEZs) Computed with reference to the total turnover of theundertaking instead of the business carried on by the assessee [Section 10AA][W.e.f.A.Y. 2010-11)

U 10AA(7) Im-A,m SZ mgmq :

mSZq

PassesseethebyoncarriedbusinesstheofturnoverTotal

unittheofturnoverExport

(Nwg kg)



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mmw m wwgmSZm(DA)--wwgSZ.Wwmm,Am

10AA(7)ImA10AAmw kg.

14. Special provisions relating to voluntary contributions received by electoral trust [Section13B] [W.e.f. A.Y. 2010-11]

See para 4 above.

Changes under the head Salaries

15. Fringe Benefit Tax abolished and the fringe benefits to be taxed as perquisites in thehands of the employees [Section 17(2)] [W.e.f. A.Y. 2010-11]

F A,2005 w , m,FgB (FB) g.g CXH-H

( 115W 115WL) Im A, 1961. A FBw...m2010-11.F,wggmg.

() Nw 115WM :A w 115WM g.

() R g q m:A mwgg:

() Am17(2)gmgq:S-()17(2) q wq,,m,mm,.

F , w q mkwq,m, w

m,m,.

mkwmmwmmB.

() S-()17(2)qm m , R.1,00,000.

() S- () 17(2) qgmm.

() S49(2AA)Nw-(2AA)mqSOPmgg:A(2AA)49w - (2AA) w g m wq17(2)(),qmkwk-..F-,

() m () 2 SC (Rg) A, 1956,wm kgm,m;

() wq mq mm



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gkw-wmkggg,wm;

() wq mk

wq,m,w m ,m;

() mkmm wmm;

() m gggm wq m.

Changes under the head Profits and gains of business or profession

16. Clause (vii) to section 28 inserted [W.e.f. A.Y. 2010-11]

See para 19 below.

17. Aligning the definition of block of asset [Explanation 3 to section 32(1)] [W.e.f. A.Y.2010-11]

mk2(11)332(1)Im-A.Hw,jm.Ag,32(1)mk.Cq,kwmgm2(11)3mgwkg.

18. Weighted deduction for in-house research and development to companies engaged in thebusiness of manufacture or production of an article or thing except those specified in theEleventh Schedule of the Income-tax Act (Section 35(2AB)) [W.e.f. A.Y. 2010-11]

UgIm-A,35(2AB),wg150%,wmgggm g, Pm, qm, m,mmqm,mgBw (g g) -m .

Wwmg m m, A wgmggmgSIm-A.

19. Investment-linked tax incentive for specified business - cold chain facilities, warehousingfacilities for storage of agricultural produce, and cross-country natural gas or crude or

petroleum oil pipeline network for distribution, including storage facilities [Section 35AD,28(vii) and 73A] [W.e.f. A.Y. 2010-11]

ImA m-km/.S,q,mgmm,, g mm m .F, gm m/.Hw, m-k m.



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W w g m m kg, A m-k gwz. 35AD, 28() 73A Im-Awg :

() Sgg ;

() Sg gwg gg ;

() Lgg-gmwk,ggg gwk.

I. S35AD:wgmm-k35AD wg:

() 100%,ww w ,w , gw.

Hw, ,w, w g w mm

,() mmm ;

() m z k mmm .

() qgwm.

() w

() I w gg gwk, mm 1-4-2007

() I,mm 1-4-2009.

() w wg ,

m:

() g,,;

() mm .Hw, 20% m .

() W g ()(), :

() w m m g ICmA,1956 m m CSA;

() PmNGRgB;

() m -

mm;

() m.

F g w,100%g,mgg1-4-2010,mg,



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() mmmggg1-4-2007g 31-3-2009;

() m w w .

A ,m

() w , , g m m mgm ;

() w,,g26%gwI ;

() wmBmmgg, mmm gg ;

() w g 110% wg .

() w CVIA;

() N wm w Im-A.

() Iw 80A(6) g I /80-A(7)g-(10)gw ,w w .

2. I()28:Am,Iww35AD,gm,, mg m Pg .

3. I73(1) :A m JIgg,, . mw

w g g m wgm .

4.C()80-IA(4):P-k80-IA gg-gwk()80-IA(4)w.

5.S50Bgmm:Wmgwmmgg,ww w w 35AD,kN.

6. 13 43: A13, w w w 35AD,,

() ;() q,

() wgw;

() q m;

() m(),(),(),(),(),()()47.



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20. Special deduction under section 36(1)(viii) allowed to National Housing Bank of an amountnot exceeding 20% of the profits subject to creation of a reserve [Section36(1)(viii)[W.e.f. A.Y. 2010-11]

S36(1)()kgm

mg20%j.

NHgBk(NHB)wwRBkIggmgg . I-g g,k,ARDB,RRB,.,mgI.Ikgmj,gj,gj WSLIGg,.NHB4ACmA.

Aw NHB 36(1)()gggg-mgI . mm m () 36(1)() gg g g-m(g-g) m g Iw g 36(1)().

21. Commodities Transaction Tax not operationalised (Section 36(1)(xvi)) [W.r.e.f. A.Y.2009-10]

CmmwCVIIFA,2008.Hw, .IwmmPmMmAC,w121ACVIIFA,2008CgCmm1-4-2009.

Amqmm()-(1)36Im-Amg ,wCww.

22. Remuneration to partners in a firm including limited liability partnership [Section 40(b)][W.e.f. A.V. 2010-11]

See para 5 above.

23. Enhancement of limit for disallowance of expenditure made otherwise than by an accountpayee cheque or account payee bank draft for plying, hiring or leasing goods carriages inthe case of transporters to Rs. 35,000 from the existing limit of Rs 20,000 (Section40A(3) and (3A)| (applicable to transactions effected on or after 1-10-2009)

U gIm-A,w,wmR.20,000mwq k, w .G m g g jg,gggg,A240A(3)(3A) m mwqkR35,000mgmR.20,000.

gmgmwmR20,000j

R6DDIm-R.

24. How to compute written down value where income of an assessee is derived in part fromagriculture and in part from business chargeable to income-tax under the head Profitsand gains of business or profession [Explanation 1 to Section 43(6)] [W.e.f. A.Y.2010-11]

S32(1)() wm gww(WDV)k.S-()(6)



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43WDVqmkgwmIm-A.

R7A,7B8ImR,1962,wmmm

wmmgmgImA,1961P&GB.mmm,.I,mwg mgmm.

HSmCC1.DmDIL222CR105(SC)wggm-()(6)43ggw,wmgg Im- A, 1961 P &G B, g m k mgWDV q.

F , 8 mmm .U,mmgwmmwmm,40%mmm.AC,m wg :

Rs.

S 2,000

L::

D-(10%R.2,000) (200)

O (600)

Cm m 1,200

ImjgIm-A,19618(40%1,200) 480

Imgm-(60%1,200) 720

Ag C, W.D.V. mmgkR.1,920(R.2,000mR.80g m) R. 1,800 (R. 2,000mR.200wmg mm). w w wmggmgmgW.D.V.gC g.

w g .WDV q mgmm.H, WDV mm g kR.900 960 SmC. mg mgw-()(6)43.

7 43(6) wm,mgmgm-Pg,mgwwq , m m m m Pg mmwA.



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25. Amendments In section 44AA relating to maintenance of account and in section 44ABrelating to audit of accounts (Sections 44AA and 44AB) (W.e.f. A.Y. 2011-12]

See para 26 below.

26. Special provision for computing profits and gains of a business other than business coveredunder section 44AE (Section 44AD, 44AA(2), 44AB and 44AF) (W.e.f. A.Y. 2011-12)

gImAImmI,Immgg .

S44ADmmggIIwmqggImgm.S44Am gg g, g gggwmmmm.S44AFmm,wm m m mq 5%.

m w gw

mmggw m.A gm wm-.I m m w m mmwwmgm.Am m m m w m m m.

Iw,Amg w 44AD. m m :

() m,HUFmgLmm.,mLLP,mAOP/BOI,. I w g 10A, 10AA,10B, 10BA C VIA

gC.-mm.

() m (g S.44A)wmmmg/g40k.

() mq8%g .m,mgmm g m g .

() Aw 3038mgw.Hw,wgm, m mm j m40().

() wwgmgm.w m.

() Agmmmm Im-

A.

(g) Agmmmmkq44AAIm-A.



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() AwwR40k,wwmwm,w, m m,qmk44AA(2)gmq44AB.

() g44AFwmmgg 1-4-2011.

Consequential changes due to insertion of section 44 Al)

1. I 44AA(2) m:W gmmg44ADmmwgmgmmmmmwgm-gkmk m m Ag O m m wA.

2. I () 44AB : g , g m m

g44ADmmwgmgmmmmm w g m- g m.

27. Presumptive income for truck owners [Section 44AE] [W.e.f. A.Y. 2011-12]

U g 44A, mm gg g,g gg g. m ,wwm 10gg mg.

U m,w , m m kR.3,500.m.wg,R.3,150.m. w g g.Ag m m mmgk m.

Ammw

() HgR.5,000.m.;

() OgR.4,500.m.

A - g mmgmmmg.

28. Presumptive income scheme for retail business merged with section 44AD [Section44AF] [W.e.f. A.Y. 2011-12]

S 26.

CHANGES UNDER THE HEAD CAPITAL GAINS

29. Cost of acquisition of assets in case of slump sale of business specified under section35AD [Section 50B] [W.e.f. A.Y. 2010-11]

S 19.

30. Cost of acquisition of sweat equity shares and the property acquired in a manner givenunder section 56(2)(vii) (Section 49(2AA) W.e.f. A.Y. 2010-11 and newly insertedsection 49(4)] [W.e.f. 1-10-2009]



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S15qwq.

S32wqqmg56(2)().

31. Provisions for deemed valuation of immovable properly in certain cases of Transfer [Section50C] (w.e.f. A.Y. 2010-11)

g 50Cwg,gg, SGm (m) mm,mgmgg.Hw,*,wgwm,ggm w.

W w g kg , A m 50C w g ,gg

SGmmm, m gmgg.

F,w250C(2)mgm .

Explanation 2.F , m w m w , wgg wmg,,wmm.

CHANGES UNDER THE HEAD INCOME FROM OTHER SOURCES

32. Taxation of property acquired without consideration or for an inadequate considerationus income from other sources (Section 56(2)(vii)) [W.e.f. 1-10-2009]

S56()mm(mR.50,000)w HUFw g m mm .

Hw,m()m()mg()w() m 56(2)()Im-A.

Sm,gwkgmw..w g.

Am56Im-Agw()56(2)w... 1-10-2009 w qw I m m .Sw:()mmgg,()

,()jw,()g()wg.()g,()()wk.

I w mm w mR.50.000,wmm.Immw m w wR.50,000(q), wmm .



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Immm,AgOm VO. I,g50C155(15)Im-A,m,mg.

I ,wm w gggmkR.50,000,wgggmkm.Im w gggmk wwR.50,000.wmkm .

I :

() mmkw m;

() Imm,m .

() Rmgg (56(2).

F,56(2)()mm-

() m;

() mg;

() ww;

() m,m;

() m(20)10;

() m m(23C)10;

(g) mg12AA.

Consequential amendments1. S2(24) g mm:.A ()

2(24) mm 56(2)()mm.

2. Cqqmg56(2)():IA-(4)49wgm,wjm-56(2)(),qmwk().

33. Interest received on delayed compensation or enhanced compensation shall be deemedto be income of the year in which it is received [Section 56(2)(viii), section 57(iv) andsection 145A] (W.e.f. A.Y. 2010-11]

gIm-AmgPg Imm , m wmmggm.F,HSmC,RmB.CI(1990)181IR400(SC)mm. .

W wmgg ,wggm g:



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(1) C()145A:Am145A m m mmw,mg w .

(2) Im m :C () -(2) 56 m wmm-()145Ammw.

(3) 50% wm :C () 57 m 56(2)(),mq50%mww .

Changes in the provisions relating to carry forward and set off of losses

34. Carry forward and set off of losses of a specified business (Newly inserted section 73A](W.e.f. A.Y. 2010-11)

S19

Changes in the provisions relating to deduction allowable under

Chapter VIA from gross total income

35. Amendment in Chapter VIA to prevent abuse of tax incentives [(Section 80A(4), (5) and(6) inserted]

k CVIAm.F, CVIA,,m,mmm.

Wwgm,Am80AIm-Am wgg:

(1) S-(4) 80A.() D g w

10A10AA101310BACVIA g C.-D m m, mm w mm;

() ggg (),gkgg,m.

(2) S-(5)80Awm:Wmkmm10A10AA10B10BACgC.D m,

wm.mmwkm1-4-2003,wg m 2003-04 q .

(3) I/kgmk:A (6) 80A g w kg gkg m mk g.



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F, mk m,

() g,m gwwkgg mk,j g, ;

() gq,m gwwqkggmmk,jg, .

mmw k m1-4-2009wg wgg .

(4) Ag80-IAgwk:Wwgm80-IAIm-A,Agmg-(4) w wk w(g CS Gm) kg 80-IA .

mmw k m1-4-2000w,g,

m2000-2001q .

36. Deduction, in respect of contribution to pension scheme of Central Government [Section80CCD] [W.r.e.f. A.Y. 2009-10]

S 11.

37. Deduction (or medical treatment of a dependent suffering from severe disability enhanced[Selection 80DD] [W.e.f. A.Y. 2010-11]

S80DDImA HUF,w I,wg:

() mm(gg),g,gw;

() Am LIC m m.

mR.50,000gmR.75,000 g m . A m R.1k.Hw,mgR.50,000.

38. Deduction in respect of Interest on loan taken for higher education [Section 80E][W.e.f.A.Y. 2010-11]

S80Im-A ,gI,mmwIkm gg.Ug,gmg-ggg,m,

mgmggmm.

Wjgmm,Ammggg80ImA (g)gSSmqm, gCGmSGmzCGmSGm.



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Mgg:Agg()- (3). A w , , mwmgg.

39. Onetime relaxation to donations to certain Funds, Charitable Institutions, etc. coveredunder advancement of any other object of general public utility for the previous yearbeginning on 1-4-2007 and ending on 31-3-2008 [Section 80G]

S80G Im-A, 1961 ,,.j,, .

Hw, - (15) 2 m jgg() , mm ; () g,mm,,mm.Cq mgz Im-A. Hw, g

2008-09gwkB. m w 80G.W w mg , A gm()-(5)80GIm-A w ()-580Ggg1-4-2007g31-3-2008,,wgg (15)2,m ,

() gg1-4-2008g31-3-2009;

() ()gg1-4-2008g31-3-2009.

mmwkm1-4-2009g,m

2009-10.

40. Section 80G approval granted and expiring on or after 1-10-2009 shall continue to bevalid in perpetuity (Section 80G(5)(vi)] |W.e.f. 1-10-2009]

A80G(5)() Im-A,1961, w mCmm Im- w11AAIm-R,1962.gm,gm,m .D mm , ggwmmm.m wg m m wg m.

, Am () - (5)80G

g . F, -CmmwwwwCmm g g wj .

mmw k m1-10-2009.Ag, gg1-10-2009mww.Hw,g1-10-2009,www , ww.



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41. Contributions to an Electoral Trust also eligible for deduction under section 80GGB and80GGC

S4.

42. Amendments in section 80-IA

(A) kgggmk[S80-IA(3)][W...A.Y.2009-10]

U g, kgw, m k, 80-IA mm31-3-2009.F(N.2)A,2009 mm31-3-200931-3-2011.

(B) 80-IAmmmgg,mwkg w Im wgg31-12-2005[S80-IA(4)]

Ug 80-IA(4)(),kgw I

mwggg10 wg:

() Smm30-11-2005wmjqmgmwgwgg;

() SIm CGm31-12-2005;

() kgg g mw 31-3-2008.

A m- () () - (4)80-IA m mmg g, m wkgm31-3-200831-3-2011.

mmwk m 1-4-2008 g, m2008-09q .

F,80-IA,()-(4)

gkg,

() wgw ggwmggg1-4-1993g31-3-2010;

() w m g wk w m m g gg 1-4-1999g31-3-2010;

() w k mz g wk mmggg1-4-2004g31-3-2010.

Am()-(4)80-IAm31-3-2011.

mmwkm1-4-2009gm 2009-10 q m.

F,80-IA(4)(),w...A.Y.2010-11.

43. Deduction in respect of profits and gains from undertakings engaged in commercialproduction of mineral oil and natural gas - I he new terminal dale would be (he same forboth the public and the private sector. All blocks licensed under a single contract shall hetreated as a single undertaking [Section 80-IB(9)]

S-(9)80-IBImA,1961I



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g m mm g m. -kgm g m

() Iwmmg;

() Iwgmg.

Hw,-kgwggm 1-4-2009kg wg,m:

() Iwwmmwmm-gg;

() ICGm 31-5-2008;

() Igg 31-3-2012.

U g , m mmgm31-3-2009.gm jwm .A ,wk m k.,Am-(9)wm..31-3-2012ggm . w mw m .

F,A()()80-1B(9)ImA.

C()-(9)80-IBImA,wwgmmmgm,gmkwVIII Rg w ( NLP-VIM)NwLgPGmIRN.O-19018/22/95-ONG.DO.VL, 10-2-1999g mm g1-4-2009.

C()wggmmgkIVRg w CBM k g mmg1-4-2009.

mkg -(9) ., m,mgm kg jm.gwwkgkgg w.Hw,wgg.Ag,Am-(9)gmg-(9), k g,w wNw LgP Gm I RN.O-19018/22/95-ONG.DO.VL,10F, 1999w w mg w C SGm

m, g kg. mm g m 1-4-2000w, g, m 2000-01q.kgw mg.

44. Amendments in section 80-IB

(A) Rg SO-IB(IO)g ggj-Nkgwgj



24/38


wk w (gC SGm)[S80-IB(10)]

S-(10)80-IBIm-A,1961100%kgmgggj,

j wg:

() j 31-3-2007.(Smmw).

() jgmmm.

() -1,000q..DMm(ggw25km.mm)1,500q...

() -mmmgj5%-gj2,000q..w.

() jmw4mwj.

j kg

m k .. .Hw,kg k .

W w g, A (10) 80-IB g - kgwgjwkw(gCSGm).

mmwk m 1-4-2001 g, m2001-02qm.

F,j gjgkwm m. mg z .Hw,gmggmmjg.Ag,Awz.()() 80-IB(10) kgw gjwmgj

m,g,w,gjwg:

() m;

() Hmwk;

() Ag,mHmwk.

mmwkm1-4-2010g,m2010-11 q .

F, F (N.2)A,2009 w j 31-3-200831-3-2007.

(B) D80-IBgkggg g, kgg g g

g,gg[S80-IB(11A)][W...A.Y.2010-11]

Ug80-IB(11A)kggg g,kgg gg g,g g.F(N.2)A, 2009 kgg m g,kggmm m.



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kggg g,kgg mmm g 1-4-2009.

44A. Quantum of deduction under section 80U increased in case of a person with severedisability [Section 80U] (W.e.f. A.Y. 2010-11)

U g80U, w:

R.50,000w.

R.75,000w.

AR.75,000R.1,00,000w. Hw, R.50,000 w mg.

CHANGES IN THE PROVISIONS RELATING TO REBATES AND RELIEF

45. No relief under section 89 where exemption has been claimed under section 10(10C)[Section 89] [W.e.f. A.Y. 2010-11]

S8.

Changes in the provisions relating to International Taxation

46. Empowering Central Government to enter into Tax Information Exchange agreement withspecified non-sovereign territories (any specified territory outside India in addition toentering into agreement with foreign countries) [Section 90] [W.e.f. 1-10-2009]

S90Im-AmwCGmDAAgm(DAA)wGmIgg- g mg.gmwwgDAAIA(ImgAgm)w-gj.

I gm gmw-g, A m mm 90 Im A,1961 g44AWAgm I.

47. Determination of arms length price in cases of international transactions -CBDT toformulate safe harbour rules i.e. to provide the circumstances in which the Income-taxauthorities shall accept the transfer price declared by the assessee -Resolving thecontroversy variation of 5% arms length price - Effective from 1-10-2009 and shallaccordingly apply in relation to all cases in which proceedings are pending before theTransfer Pricing Officer (TPO) on or after such date [Section 92C and newly inserted

section 92CB]

S92CIm-Ajm w q m g.A,gmgjjmgg . , A mw B to formulate safeharbour rules ..to provide the circumstances in which the Income-tax authorities shall acceptthe transfer price declared by the assessee. mmwkm1-4-2009.



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F,-(2)92Cwhere more than one price isdetermined by the most appropriate method, the arms length price shall be taken to be thearithmetical mean of such ,or, at the the assessee, a price which may varyfrom the arithmetical mean by an amount not exceeding 5% of such arithmetical mean.

jgImDm.wmmj5% m g.Hw, m wmmm5%mm,wmmqm.

Wwg,Am92Cw...1-10-2009wm mm m,mgkmm.Hw,mm,m,w5%,mgjmqm.

Changes in the provisions relating to Taxation of Charitable Institutions

48. Tax relief on anonymous donations for partly religious and partly charitable institutions,and wholly charitable institutions (Section 115BBC) [W.e.f. A.Y. 2010-11]

(A) U 115BBC,wg w m.P g ,m m m, wmmmw 30%.Iw, m30%.

Imgm,Agzmg m mg. mmw wg:

1. Amwgmmm.

2. I g , m wm@30%gggmgwg,m:

(A)5%,

(B)R.1,00,000.

3. I w,m@30%ggg m g wg,m

(B) 5% ,

(C) R.1,00,000.

(B) Mg m:S2.

CHANGES IN THE PROVISIONS RELATING TO MINIMUM ALTERNATIVE TAX

49. Minimum Alternate Tax - to increase the MAT rate to 15%, from the existing level of10%, and tax credit allowed to be carried forward and set off up to the tenth assessmentyear immediately succeeding the assessment year [Sections 115JAA and 115JB][W.e.f.A.Y. 2010-11]

() RMA15%.



27/38


Ug115JBImA,mqmmmk,m-m,mAm10%k.A m115JB(1)MA

15%,mg10%.() MA wm.

Ww,gm,wMmmA115JBmgg1-4-2006,Am115JAA(3A)mm115JAA(2A)ww m mm g m w mw-(1A) .

50. Minimum Alternate Tax - Clarification regarding add hack of provision for diminution inthe value of asset, while computing book profits. [W.r.e.f. A.Y. 2001-02]

S1I5JBIm-Ammm(MA)k m.A 1 - (2), k

mwwP-II P-III S VI CmA,1956 jm, .

Aw()1-(2)Im,wmk.

Smmmm115JAIm-Aww(g)-(2).

mm115JAmm1-4-1998w,g, m 1998-99q .

CHANGES IN THE PROVISIONS RELATING TO DIVIDEND DISTRIBUTION TAX

51. Dividend paid to the New Pension System Trust shall be exempt from Dividend DistributionTax [Section 115-O] [W.r.e.f. A.Y. 2009-10]

S11.

CHANGES IN THE PROVISIONS RELATING TO FRINGE BENEFIT TAX

52. Fringe Benefit Tax not applicable from assessment year 2010-11 [Section 115WM]

S15.

CHANGES IN THE PROVISIONS RELATING TO SEARCH AND SEIZURE

53. Clarificatory amendment in section 132 and section 132A to conduct search and seizureoperations [Section 132 and 132A] [W.r.e.f. 1-6-1994]

S132(1)Im-Amwm-m-z.mw z :

() DGCCmm;

() DCmm;

() SJDJCmmmwB.

JDJCmm,m(28C)



28/38


(28D)2Im-AADACmm.BgDm,ADACmm w w1-6-1994.Hw, C JD JCmm

132Im-AA.DACmm,w g.Ag, z g.

, Am mm 132 AD A Cmm w w w .

F,mg132JCmmJDw w z. mmw k m1-10-1998.

Sm,qmmm132AADACmmzO.mmwkm1-6-1994.

Rationalisation and simplification of administrative and compliance procedures

54. Signing of return of income of limited liability partnership [Section 140] [W.e.f. A.Y.2010-11)

See para 5 above.

55. Power under section 143(1B) extended by one year due to delay in Centralized Processingof Returns.

Im-m gCPgC(CPC)Bg g Im Fg .F Bmw,mwggj,m31-3-2009

H. S , wB .. 31-3-2010 ,m wgg .

56. Provision for constitution of alternate dispute resolution mechanism for order of theTransfer Pricing Officer, and foreign company (Section 144C) (W.e.f. 1-10-2009]

mmmmggmgwgSmC.Fwgmm g m. , A mIm-Amm,ww k.

mm:

1. AgO, w m (

)gmk,1-10-2009,mwj .

2. O,g,wm,

() F AgO;

() Fj,,w,



29/38


() DRP;

() AgO.

3. AgOmm,

() m AgO ;() Njw-(2)..30

g.

4. Ag O , wg g 153, m 144C(3)w m m m w,

() ;

() gj-(2).

5. DRP , w j -(2),,k,gAgO mmm.

6. DRP - (5), g wg, m:

() D;

() Oj ;

() ;

() R,,AgO,VOPgO;

() Rg ;

() ,,;(g)Rqm,m.

7. DRPm,g- (5),

() Mkq,k;

() Cqmm

m.8. DRPmm,

,w,- (5)qgm.

9. ImmDRP,gmjmm.

10. DR Pg AgO.

11. N- (5) g g AgOw j , .

12. N - (5) m m m w wg.

13. U - (5), AgO , mw,m,wgg 153,mwg g ,wmmmw.

14. Bmmk g DRP j , (2),g.

15. F ,



30/38


() DRPmgmmg3CmmImB;

() g m,

() A w - (1) qPgO- (3)92CA;

() g m. F, wg qmmm

() S131(1)DRPmwCCCP,1908;

() S246(1 )() m m.143(3)-m147 DRP .

() S 253(1) m () m 143(3) -m147 DR P .

A154gIA.

57. Assessing Officer empowered to touch upon any other issue for which no reasons havebeen recorded notwithstanding that the reasons for such issue have not been included inthe reasons recorded [Section 147] [W.r.e.f. assessment year 1989-90]

g147,,AgOmg m m ,m m g -g m.F,m mw mwmq g .

SC AgO m gwgm.H mw w . g .

Wwgg,A3147AgOmmwm q g ,wg 148(2).

RDCS

58. Rationalisation of provisions relating to tax deduction at source (TDS) [W.e.f. 1-10 2009]

mgGmmm.Im-Ag m, Gm . DS FA Im-A.

Dqmgm DS. I ,, mg.F, 40()(),m m, wwmg m.mgwDSgm, DS:



31/38


(A) Amendment in TDS rates and other provisions of section 194C

() RDS194Cz[W...1-10-2009]:Ug194CIm-A,DS2%m.Hw,-,DS1%.F,

m g,DS q 1%.

Igg,AmDSmw-.DSmmAmDS mg. m /-mwmgz/HUF,AwgDS:

() 1%wm/HUF

()2%wm.

wqPAN.IPANqw1%/HUF2%31.3.2010.

DSw20%,PANqw...1-4-2010.

() Pm[W...1-10-2009]:U194C,qmgg g, g ggg.Hw mwmwgg, . m g DS mmgmm .A -(6) 194C mm ( 44A)mwDS.Hw,wwPm ANm (PAN) .A 194(7),wmkmwgDS(

qPAN)wqmPANImDmm.

() C gg wk 194C [W... 1.10.2009]: gggwDS194Cgwg wk . g , A wk mg g g qm m g wm m m.ww,wmg(.g. ). A mgg g qm mgm mm,w wk.I 194C(3) DS g mmmm.

Wmmm,DSw.

g mR. 20,000R. 50,000w 194C. F, w m m HUF mmHUF,w 194C.



32/38


(B) Rate of TDS reduced in case of section 194-I [W.e.f. 1-10-2009]:Ug194-IIm-A,DSm

() 10%mqm,

() 15%gg,HUF,

() 20% HUF.

A DSm:

() 2%mqm,

() 10%gg.

Nature of Payment (19 4-I) - Rent Rate upto New rate *

30-9-2009 (w.e.f. 1-10-2009)

() R,mqm 10% 2%

() R,gHm 15% 10%

() R,gHm 20% 10%

DSw20%,PANqw...1-4-2010.

(C)RDSI10%.

RDSF(N.2)A,2009m20%10%wg:

() DS m m P1()PIISIF(N.2)A,2009gDS mw I m20%10%.

() Sm,DS mmP2()PIISIF(N.2)A,2009mmm20%10%.

(D)DS

ImDS,A mg&SHCmm . IDS gSHC. F(N.2)AmA.

()S197Am:S11.

(F)ImgmwqgPANgDSgm[S206AAJ[W...1-4-2010]

IgPANmm,AmmmImA w j .. ,mPANgwgwg :

() A;

() A..,mFA;

() A20%.



33/38


DSw-mw m15G I5H ( 197A) PAN.F,197wgAgOPAN.

wwDSmmm.kwPANmqgPANcorrespondence, gwm.

(G)Pg m(S200A w...1-4-2010)

C m m m.g m , , mzm.

Nw 200A gm mIDSmmm.IDSmm,A gm g Im-.

F,wgjmmgmzgm:

() Amm;

() Am,mmmm, m, w w A.

Amkgjm,[.g.201(1A)]w m wm.Amwmgmggmwmwm .Agmkzg .

(H) Providing time limits for passing of orders under section 201(1) holding a person to bean assessee in default

C, ImA mm g 201(1)g.Imm,wgkmm.

I g , A -(3) 201 mmAww201(1)w.

A201(1)1-4-2010,wqA,w w m w m .

Wm,mwmmg.

F, 1 153 gg (k jC)mmwmgmm.Smk153(3)()wmmqgg 250,254,260A,262,263264 C.mg,Ag



34/38


ggm1-4-2007m31-3-2011.

Hw,m-m201(1)w

() ,w

gm,() m w , 192(1A),

mw q

() -mmm-.

mmm1-4-2010.Agw1-4-2010.

(I) Filing of TDS and TCS statements (W.e.f. 1-10-2009)

S200(3)Im-AgwCXVIIB ,w m,q m g 30J, 30Sm, 31Dm 31M .Sm, gq (CS)

-(3)206CA.F206Agq m w.

I m g DS m,AmgwGm DSmgmm.

F,272A(2)()g-gqmDS/CSmw qgm.

AMENDMENT REGARDING PAYMENT OF ADVANCE TAX

59. Enhancement of the limit for payment of advance tax from the present Rs. 5,000 to Rs.10,000 for the financial year 2009-2010 and onwards (Section 208)

Ug208Im-A,m

g w m g R.5,000m.Wwgjm,AmmmR.5,000R.10,000.

mmwkm1-4-2009.Ag,-2009-2010w,R.10,000m.

AMENDMENT REGARDING APPEAL

59A. Amendment in section 246A(1) regarding appeal to Commissioner (Appeals) [Section246A(1)] (W.e.f. 1-10-2009)

Am246A(1)()gAgO 143(3) -m

147 DR P Cmm (A).

59B. Amendment in section 253(1) regarding appeals to ITAT [Section 253(1)] (W.e.f. 1-10-2009)



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A()253(1)g 143(3) -m 147AgO DRP 154IA.

AMENDMENTS REGARDING PENALTY

60. Rationalisation of provisions relating to penalty for concealment of income in the courseof search [Explanation 5A to section 271(1 )] [W.r.e.f. 1-6-2007]

U g 5A-(1) 271, w,1321-6-2007, w () m,, jw g( ) m qmzg(w)m;()mkmm k m m(w);w g m ,,wgmmm

,,m()-(1),mmm.

I5Awmmg , mm m 271.,A5A-(1)271w1321-6-2007, w

() Am,, jw g( ) m qmzg(w)m;

() Amkmmkmm(w),w,

() Where the return of income for such previous year has been furnished before the saiddate but such income has not been declared therein; or

() g m , , wg m m m,,m () - (1) ,deemed to have -the particulars his mfurnished inaccurate particularsof such income.

MISCELLANEOUS PROVISIONS

61. Rationalisation of provisions relating to provisional attachment of asset - Period duringwhich the proceedings for assessment or reassessment are stayed by an order or injunctionof any court (writ petitions in High Courts and Supreme Court) shall be excluded [Section281 B] [W.r.e.f. A.Y. 1988-89]

281BmwAgOmkm



36/38


g g m m. - (2) m m m m-(1).Hw,m

w.I(2)wm245C m, mmgm w mgww-(1)245Dmm-.

Im , w HgC SmC mg.O, m mgwm.,m-(2)28IB,gwg mm C, g .

62. Service of Notice [Section 28] [W.e.f. 1-10-2009]

Ug282qAm

mwmm. A m mmqmmmmgmgmCCP,1908mm;mCIVImgA,2000;mmmmB.

F,Bmmkg(gmmmg)wmmm.

63. Introduction of a computer based system of allotment and quoting of DocumentIdentification Number in each correspondence sent or received by any income-tax authority[Section 282B] [W.e.f. 1-10-2010]

I wwm .A mg m g m m. , w Im-Dmmg.,AmmmqgDmINm(DIN)kgmmmz g.

W w g , A w 282B mmgDmINm,,mm-mq.

F,w,,m-DmINm,,, m .

Sm,m, , m- , g qg mgDm INm.Wm, m- DmI Nm, m, m .



37/38


64. Power to withdraw approvals section 293C [W.e.f. 1-10-2009)

U g Im-A, qg CGmBm-g .WmIm-Aww

mgwww.

Iwww,Aw293C gg.. CGmBmw?wwm.Hw,wwmggwggww .

65. Taxation of investment income/loss of Non life insurance business [First Schedule][W.e.f. A.Y. 2011-12]

g- m44 wR 5FS. AR 5, g - k,wqIA, 1938, CI, j jm

k w 3043B.IA,1938wm1999IRgDmA(IRDA)w.I2001-02,IRDAIRDA(PFSmAR ICm)Rg, 2002". gmwgmGI.Aggm,-mz/m.wmm-m.

Iw,AmImAmk g m w g IRDAmmm.Sm,wmwmm m w g

IRDA.

66. Recognition to Provident funds - Extension of time limit for obtaining Exemption fromEPFO under section 17 of the Employees Provident Funds and Miscellaneous ProvisionsAct, 1952 from 31-3-2009 to 31-12-2010 (Fourth Schedule) [W.e.f. 1-4-2009]

R4PAFSIm-AwqPFgggIm- A.R3PA FS Cmm Cmm Im-m g w 4mB.

-(1)3,,wg31-3-2006,()431-3-2009,gww.Oqm()4m m 17 m PFMPA,1952(PF&MPA).

W w mmPFOgz(PFO)gkgm17PF&MPA,Ammmm31-3-200931-12-2010.



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67. Amendment in Part B of the Thirteenth Schedule to the Income Tax Act, 1961 to includepaper industry for which tax holiday cannot be availed by new units located in HimachalPradesh and Uttaranchal (W.e.f. A.Y. 2010-11)

P-BSIm-A,1961

g, m w m kgw80-ICkgHm P U.

DmIPPm(DIPP),MCmmIF.N.3(1)/2003-SPS27-6-2008gm w w HmPU.

Ig Im-A,1961w DIPPwS,AmPBSIm- A SI.N.19 P B Sg w27-6-2008DIPP.

68. Extension of income-tax exemption to Special Undertaking of Unit Trust of India (SUUTI

) (W.r.e.f. 1-4-2009)SUkgU I (SUUI)wU I( UkgR)A,2002.SUUI UI.mSUUIqgmwUI.

V13()RA,SUUImmm-m,g,m kg,mm,..1-2-2003.mwm31-1-2008mw31-3-2009.

Sm mSUUI g, m 13(1)m31-3-2014.

(B)AmmmW-A

69. Enhancement of the limit for payment of wealth tax from Rs. 15,00,000 to Rs. 30,00,000(Section 3) [W.e.f. A.Y. 2010-11]

Ug3W-A,wg w, , ,H m m@1%,mwwR.15,00.000.AmmwmR.15,00,000R.30,00,000w 31-3-2010q.


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