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REGISTERED NO. DL—(N)04/0007/2003—24
The Gazette of India
CG-DL-E-16082024-256436
EXTRAORDINARY
PART II — Section 1
PUBLISHED BY AUTHORITY
No. 18]
NEW DELHI, FRIDAY, AUGUST 16, 2024/SRAVANA 25, 1946 (Saka)
Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 16th August, 2024/Sravana 25, 1946 (Saka)
The following Act of Parliament received the assent of the President on the
16th August, 2024 and is hereby published for general information:—
THE FINANCE (No. 2) ACT, 2024
No. 15 of 2024
[16th August, 2024.]
An Act to give effect to the financial proposals of the Central Government
for the financial year 2024-25.
BE it enacted by Parliament in the Seventy-fifth Year of the Republic of India
as follows:––
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Finance (No. 2) Act, 2024.
(2) Save as otherwise provided in this Act,––
(a) sections 2 to 87 shall be deemed to have come into force on the 1st
day of April, 2024;
(b) sections 114 to 157 shall come into force on such date as the Central
Government may, by notification in the Official Gazette, appoint.
CHAPTER II
RATES OF INCOME-TAX
2. (1) Subject to the provisions of sub-sections (2) and (3), for the assessment
year commencing on the 1st day of April, 2024, income-tax shall be charged at the
rates specified in Part I of the First Schedule and such tax shall be increased by a
surcharge, for 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, or
in the cases where income is chargeable to tax under sub-section (1A) of
section 115BAC of the Income-tax Act, 1961 (hereinafter referred to as the
Income-tax Act) and, 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 computed 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 or
sub-section (1A) of section 115BAC, 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 or sub-section (1A) of
section 115BAC, 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:
Provided also that in the cases where income is chargeable to tax under
sub-section (1A) of section 115BAC of the Income-tax Act, 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.
43 of 1961.
(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 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 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 I of the First Schedule, except
in case of a domestic company whose income is chargeable to tax under
section 115BAA or section 115BAB of the Income-tax Act or in case of an
individual or Hindu undivided family or association of persons, or body of
individuals, whether incorporated or not, or an artificial juridical person referred to
in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act whose income
is chargeable to tax under sub-section (1A) of section 115BAC of the Income-tax
Act, or in case of co-operative society resident in India, whose income is chargeable
to tax under section 115BAD or under section 115BAE of the Income-tax Act:
Provided further that in respect of any income chargeable to tax under
sections 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA,
115BBC, 115BBF, 115BBG, 115BBH, 115BBI, 115BBJ, 115E, 115JB or 115JC 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,—
(a) in the case of every individual or Hindu undivided family or
association of persons except in a case of an association of persons consisting
of only companies as its members, or body of individuals, whether
incorporated or not, or every artificial juridical person referred to in
sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not having
any income under section 115AD of the Income-tax Act, and not having any
income chargeable to tax under sub-section (1A) of section 115BAC 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;
(ii) having a total income exceeding one crore rupees, but not
exceeding two crore rupees, at the rate of fifteen per cent. of such
income-tax;
(iii) having a total income exceeding two crore rupees, but not
exceeding five crore rupees, at the rate of twenty-five per cent. of such
income-tax; and
(iv) having a total income exceeding five crore rupees, at the rate
of thirty-seven per cent. of such income-tax;
(b) in the case of every individual or association of persons, except in a
case of an association of persons consisting of only companies as its members
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, having income under section 115AD of the Income-tax Act,
and not having any income chargeable to tax under sub-section (1A) of
section 115BAC 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;
(ii) having a total income exceeding one crore rupees, but not
exceeding two crore rupees, at the rate of fifteen per cent. of such
income-tax;
(iii) having a total income [excluding the income by way of dividend
or income of the nature referred to in clause (b) of sub-section (1) of
section 115AD of the Income-tax Act] exceeding two crore rupees but
not exceeding five crore rupees, at the rate of twenty-five per cent. of
such income-tax;
(iv) having a total income [excluding the income by way of dividend
or income of the nature referred to in clause (b) of sub-section (1) of
section 115AD of the Income-tax Act] exceeding five crore rupees, at
the rate of thirty-seven per cent. of such income-tax; and
(v) having a total income [including the income by way of dividend
or income of the nature referred to in clause (b) of sub-section (1) of
section 115AD of the Income-tax Act] exceeding two crore rupees, but
is not covered in sub-clauses (iii) and (iv), at the rate of fifteen per cent.
of such income-tax:
Provided that in case where the total income includes any income by
way of dividend or income chargeable under clause (b) of sub-section (1) of
section 115AD of the Income-tax Act, the rate of surcharge on the income-tax
calculated on that part of income shall not exceed fifteen per cent.:
Provided further that where the total income of a person, being a
specified fund referred to in clause (c) of the Explanation to clause (4D) of
section 10 of the Income-tax Act, includes any income under clause (a) of
sub-section (1) of section 115AD of the Income-tax Act, the income-tax
calculated on that part of income shall not be increased by any surcharge;
(c) in the case of an association of persons consisting of only companies
as its members,—
(i) at the rate of ten per cent. of such income-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 income-tax, where the
total income exceeds one crore rupees;
(d) in the case of every co-operative society except a co-operative
society whose income is chargeable to tax under section 115BAD or
section 115BAE of the Income-tax Act,—
(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;
(e) in the case of every firm or local authority, at the rate of twelve
per cent. of such income-tax, where the total income exceeds one crore rupees;
(f) in the case of every domestic company except such domestic
company whose income is chargeable to tax under section 115BAA or
section 115BAB of the Income-tax Act,—
(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;
(g) 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) and (b) 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 but does not exceed two 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;
(iii) two crore rupees but does not exceed five 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 two crore rupees by more than the amount of income that
exceeds two crore rupees;
(iv) five 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 five crore rupees by more
than the amount of income that exceeds five crore rupees:
Provided also that in the case of association of persons mentioned in (c)
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 a co-operative society mentioned in (d)
above, having total income chargeable to tax under section 115JC of the
Income-tax Act, and such income exceeds,—
(i) one crore rupees but does not exceed ten 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
one crore rupees by more than the amount of income that exceeds
one crore rupees;
(ii) ten 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 ten crore rupees by more
than the amount of income that exceeds ten crore rupees:
Provided also that in the case of persons mentioned in (e) 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 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:
Provided also that in case of every domestic company whose income is
chargeable to tax under section 115BAA or section 115BAB of the
Income-tax Act, the income-tax computed under this sub-section shall be
increased by a surcharge, for the purposes of the Union, calculated at the rate
of ten per cent. of such income-tax:
Provided also that in respect of income chargeable to tax under
sub-section (1A) of section 115BAC of the Income-tax Act, the income-tax
computed under this sub-section shall be increased by a surcharge, for the
purposes of the Union, calculated, in the case of an 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 (including the income by way of dividend or
income under the provisions of section 111A, section 112
and section 112A of the Income-tax Act) exceeding fifty lakh rupees
but not exceeding one crore rupees, at the rate of ten per cent. of such
income-tax;
(ii) having a total income (including the income by way of dividend
or income under the provisions of section 111A, section 112
and section 112A of the Income-tax Act) exceeding one crore rupees but
not exceeding two crore rupees, at the rate of fifteen per cent. of such
income-tax;
(iii) having a total income (excluding the income by way of
dividend or income under the provisions of section 111A, section 112
and section 112A of the Income-tax Act) exceeding two crore rupees, at
the rate of twenty-five per cent. of such income-tax; and
(iv) having a total income (including the income by way of
dividend or income under the provisions of section 111A, section 112
and section 112A of the Income-tax Act) exceeding two crore rupees,
but is not covered under clause (iii) above, at the rate of fifteen per cent.
of such income-tax:
Provided also that in case where the provisions of sub-section (1A) of
section 115BAC are applicable and the total income includes any income by
way of dividend or income chargeable under section 111A, section 112 and
section 112A of the Income-tax Act, the rate of surcharge on the income-tax
in respect of that part of income shall not exceed fifteen per cent.:
Provided also that in the case of a specified fund, referred to in
clause (c) of the Explanation to clause (4D) of section 10 of the Income-tax
Act, whose income is chargeable to tax under sub-section (1A) of
section 115BAC and where such income includes any income under clause (a)
of sub-section (1) of section 115AD of the Income-tax Act, the income-tax
computed on that part of income shall not be increased by any surcharge:
Provided also that in case of an association of persons consisting of only
companies as its members, and having its income chargeable to tax under
sub-section (1A) of section 115BAC, the rate of surcharge on the income-tax
shall not exceed fifteen per cent.:
Provided also that in 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, having total income chargeable to tax under
sub-section (1A) of section 115BAC 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 on such income 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 but does not exceed two 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 income of one crore rupees by more than the amount of income
that exceeds one crore rupees;
(iii) two 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 income of two crore
rupees by more than the amount of income that exceeds two crore
rupees:
Provided also that in case of every co-operative society resident in India,
whose income is chargeable to tax under section 115BAD or section 115BAE
of the Income-tax Act, the income-tax computed under this sub-section shall
be increased by a surcharge, for the purposes of the Union, calculated at the
rate of ten per cent. of such income-tax.
(4) In cases in which tax has to be charged and paid under sub-section (2A) of
section 92CE or section 115QA 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, 194A, 194B,
194BA, 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, 194, 194C,
194DA, 194E, 194EE, 194F, 194G, 194H, 194-I, 194-IA, 194-IB, 194-IC, 194J,
194LA, 194LB, 194LBA, 194LBB, 194LBC, 194LC, 194LD, 194K, 194M, 194N,
194-O, 194Q, 194R, 194S, 196A, 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, except in case of an association of persons consisting
of only companies as its members, 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 except in
case of deduction on income by way of dividend under section 196D of the
Income-tax Act, 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 but does not exceed two crore
rupees;
(iii) at the rate of twenty-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 two crore rupees but does not exceed
five crore rupees;
(iv) at the rate of thirty-seven 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 five crore rupees:
Provided that where the income of such person is chargeable to tax under
sub-section (1A) of section 115BAC of the Income-tax Act, the rate of
surcharge shall not exceed twenty-five per cent.;
(b) in the case of every individual or Hindu undivided family or
association of persons except in case of association of persons consisting of
only companies as its members, 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, in case
of deduction on income by way of dividend under section 196D of the Act,
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;
(c) in the case of an association of persons being a non-resident, and
consisting of only companies as its members, 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;
(d) in the case of every co-operative society, being a non-resident,
calculated,––
(i) at the rate of seven 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 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 ten crore rupees;
(e) in the case of every 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;
(f) in the case of every company, other than a domestic company,
calculated,—
(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 amount 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.
(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, except in case of an association of persons consisting
of only companies as its members, 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 or likely to be 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 or likely to be collected and
subject to the collection exceeds one crore rupees;
(iii) at the rate of twenty-five per cent. of such tax, where the
amount or the aggregate of such amounts collected or likely to be
collected and subject to the collection exceeds two crore rupees but does
not exceed five crore rupees;
(iv) at the rate of thirty-seven per cent. of such tax, where the
amount or the aggregate of such amounts collected or likely to be
collected and subject to the collection exceeds five crore rupees:
Provided that where the income of such person is chargeable to tax under
sub-section (1A) of section 115BAC of the Income-tax Act, the rate of
surcharge shall not exceed twenty-five per cent.;
(b) in the case of an association of persons, being a non-resident, and
consisting of only companies as its members, calculated,—
(i) at the rate of ten per cent. of such tax, where the amount or the
aggregate of such amounts collected or likely to be 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 or likely to be collected and
subject to the collection exceeds one crore rupees;
(c) in the case of every co-operative society, being a non-resident,
calculated,––
(i) at the rate of seven per cent. of such tax, where the amount or
the aggregate of such amounts collected or likely to be collected and
subject to the collection exceeds one crore rupees but does not exceed
ten crore rupees;
(ii) at the rate of twelve per cent. of such tax, where the amount or
the aggregate of such amounts collected or likely to be collected and
subject to the collection exceeds ten crore rupees;
(d) in the case of every 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 or likely to be collected and subject to the collection
exceeds one crore rupees;
(e) in the case of every company, other than a domestic company,
calculated,—
(i) at the rate of two per cent. of such tax, where the amount or the
aggregate of such amounts collected or likely to be 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 or likely to be 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 deducted under section 194P 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 sections 112 or 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
except in case of a domestic company whose income is chargeable to tax under
section 115BAA or section 115BAB of the Income-tax Act or in case of an
individual or Hindu undivided family or association of persons, or body of
individuals, whether incorporated or not, or an artificial juridical person referred to
in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act whose income
is chargeable to tax under sub-section (1A) of section 115BAC of the Income-tax
Act, or in case of a co-operative society resident in India whose income is chargeable
to tax under section 115BAD or under section 115BAE of the Income-tax Act:
Provided also that in respect of any income chargeable to tax under
sections 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA,
115BBC, 115BBF, 115BBG, 115BBH, 115BBI, 115BBJ, 115E, 115JB or 115JC of
the Income-tax Act, “advance tax” computed in accordance with 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, except in a case of an association of persons consisting
of only companies as its members, or body of individuals, whether incorporated
or not, or every artificial juridical person referred to in sub-clause (vii) of
clause (31) of section 2 of the Income-tax Act, not having any income under
section 115AD of the Income-tax Act, and not having any income chargeable
to tax under sub-section (1A) of section 115BAC of the Income-tax Act,—
(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 but does not exceed two crore
rupees;
(iii) at the rate of twenty-five per cent. of such “advance tax”,
where the total income exceeds two crore rupees but does not exceed
five crore rupees;
(iv) at the rate of thirty-seven per cent. of such “advance tax”,
where the total income exceeds five crore rupees;
(b) in the case of every individual or association of persons, except in case
of an association of persons consisting of only companies as its members, 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, having income under section 115AD of the Income-tax Act,
and not having any income chargeable to tax under sub-section (1A) of
section 115BAC of the Income-tax Act,—
(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 but does not exceed two crore
rupees;
(iii) at the rate of twenty-five per cent. of such “advance tax”, where
the total income [excluding the income by way of dividend and income
of the nature referred to in clause (b) of sub-section (1) of section 115AD
of the Income-tax Act] exceeds two crore rupees but does not exceed
five crore rupees;
(iv) at the rate of thirty-seven per cent. of such “advance tax”, where
the total income [excluding the income by way of dividend or income of
the nature referred to in clause (b) of sub-section (1) of section 115AD
of the Income-tax Act] exceeds five crore rupees; and
(v) at the rate of fifteen per cent. of such “advance tax”, where the
total income [including the income by way of dividend or income of the
nature referred to in clause (b) of sub-section (1) of section 115AD of
the Income-tax Act] exceeds two crore rupees but is not covered in
sub-clauses (iii) and (iv):
Provided that in case where the total income includes any income by
way of dividend or income chargeable under clause (b) of sub-section (1) of
section 115AD of the Income-tax Act, the rate of surcharge on the advance
tax computed on that part of income shall not exceed fifteen per cent.;
(c) in the case of an association of persons consisting of only companies
as its members,––
(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;
(d) in the case of every co-operative society except such co-operative society
whose income is chargeable to tax under section 115BAD or section 115BAE of
the Income-tax Act,––
(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;
(e) in the case of every firm or local authority at the rate of twelve per
cent. of such “advance tax”, where the total income exceeds one crore rupees;
(f) in the case of every domestic company except such domestic company
whose income is chargeable to tax under section 115BAA or section 115BAB
of the Income-tax Act,—
(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;
(g) 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) and (b) 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 “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;
(ii) one crore rupees but does not exceed two 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 one crore rupees by more than the amount of income
that exceeds one crore rupees;
(iii) two crore rupees but does not exceed five 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 two crore rupees by more than the amount
of income that exceeds two crore rupees;
(iv) five 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 five crore
rupees by more than the amount of income that exceeds five crore rupees:
Provided also that in the case of association of persons mentioned in (c)
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 “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;
(ii) 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” 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 a co-operative society mentioned in (d)
above, having total income chargeable to tax under section 115JC of the
Income-tax Act, and such income exceeds,––
(i) 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;
(ii) 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 the case of persons mentioned in (e) 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 in accordance with 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”:
Provided also that in case of every domestic company whose income is
chargeable to tax under section 115BAA or section 115BAB of the
Income-tax Act, the “advance tax” computed in accordance with the first
proviso shall be increased by a surcharge, for the purposes of the Union,
calculated at the rate of ten per cent. of such “advance tax”:
Provided also that in respect of income chargeable to tax under
sub-section (1A) of section 115BAC of the Income-tax Act, the “advance tax”
computed in accordance with the first proviso shall be increased by a surcharge,
for the purposes of the Union, calculated, in the case of an 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 (including the income by way of dividend or
income under the provisions of section 111A, section 112 and section 112A
of the Income-tax Act) exceeding fifty lakh rupees but not exceeding one
crore rupees, at the rate of ten per cent. of such “advance-tax”;
(ii) having a total income (including the income by way of dividend
or income under the provisions of section 111A, section 112 and
section 112A of the Income-tax Act) exceeding one crore rupees but not
exceeding two crore rupees, at the rate of fifteen per cent. of such
“advance-tax”;
(iii) having a total income (excluding the income by way of
dividend or income under the provisions of section 111A, section 112
and section 112A of the Income-tax Act) exceeding two crore rupees, at
the rate of twenty-five per cent. of such “advance-tax”; and
(iv) having a total income (including the income by way of
dividend or income under the provisions of section 111A, section 112
and section 112A of the Income-tax Act) exceeding two crore rupees,
but is not covered under clause (iii) above, at the rate of fifteen per cent.
of such “advance-tax”:
Provided also that in case where the provisions of sub-section (1A) of
section 115BAC are applicable and the total income includes any income by
way of dividend or income chargeable under section 111A, section 112 and
section 112A of the Income-tax Act, the rate of surcharge on the “advance-tax”
in respect of that part of income shall not exceed fifteen per cent.:
Provided also that in case an association of persons consisting of only
companies as its members, and having its income chargeable to tax under
sub-section (1A) of section 115BAC, the rate of surcharge on the “advance
tax” shall not exceed fifteen per cent.:
Provided also that in 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, whose income is chargeable to tax under
sub-section (1A) of section 115BAC of the Income-tax Act having total
income exceeding,—
(i) 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;
(ii) one crore rupees but does not exceed two 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 one crore rupees by more than the amount of income
that exceeds one crore rupees;
(iii) two 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 two crore
rupees by more than the amount of income that exceeds two crore
rupees:
Provided also that in case of every co-operative society resident in India
whose income is chargeable to tax under section 115BAD or section 115BAE
of the Income-tax Act, the “advance tax” computed in accordance with the
first proviso shall be increased by a surcharge, for the purposes of the Union,
calculated at the rate of ten per cent. of such “advance tax”:
Provided also that in the case of a specified fund, referred to in
clause (c) of the Explanation to clause (4D) of section 10 of the Income-tax
Act, whose income includes any income under clause (a) of sub-section (1) of
section 115AD of the Income-tax Act, the “advance tax” computed on that
part of income shall not be increased by any surcharge.
(10) In cases to which Paragraph A of Part III of the First Schedule applies, or
in cases where income is chargeable to tax under sub-section (1A) of
section 115BAC of the Income-tax Act, where the assessee has, in the previous year
or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged
in respect of the income of a period other than the previous year, in such other
period, any net agricultural income exceeding five thousand rupees, in addition to
total income and the total income exceeds 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, or sub-section (1A) of section 115BAC, 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, or
sub-section (1A) of section 115BAC, 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 in the cases where income is chargeable to tax under
sub-section (1A) of section 115BAC of the Income-tax Act, 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 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 in this section.
(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 “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.
(12) 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:
Provided further that nothing contained in this sub-section shall apply in respect
of income-tax as specified in sub-section (9), calculated on income, referred to in clause (a)
of sub-section (1) of section 115AD of the Income-tax Act, of specified fund referred to
in clause (c) of the Explanation to clause (4D) of section 10 of the Income-tax Act.
(13) For the purposes of this section and the First Schedule,—
(a) “domestic company” means an Indian company or any other company
which, in respect of its income liable to income-tax under the Income-tax Act, for
the assessment year commencing on the 1st day of April, 2024, has made the
prescribed arrangements for the declaration and payment within India of the
dividends (including dividends on preference shares) payable out of such income;
(b) “insurance commission” means any remuneration or reward, whether
by way of commission or otherwise, for soliciting or procuring insurance
business (including business relating to the continuance, renewal or revival of
policies of insurance);
(c) “net agricultural income” in relation to a person, means the total amount
of agricultural income, from whatever source derived, of that person computed in
accordance with the rules contained in Part IV of the First Schedule;
(d) all other words and expressions used in this section and the First
Schedule but not defined in this sub-section and defined in the Income-tax Act
shall have the meanings, respectively, assigned to them in that Act.
CHAPTER III
DIRECT TAXES
Income-tax
3. In section 2 of the Income-tax Act,––
(a) in clause (22), with effect from the 1st day of October, 2024,––
(I) after sub-clause (e) and before the long line, the following
sub-clause shall be inserted, namely:––
“(f) any payment by a company on purchase of its own shares
from a shareholder in accordance with the provisions of section 68
of the Companies Act, 2013;”;
(II) in the long line, clause (iv) shall be omitted;
(b) in clause (42A), with effect from the 23rd day of July, 2024,––
(i) in the opening portion, for the words “thirty-six months”, the
words “twenty-four months” shall be substituted and shall be deemed to
have been substituted;
(ii) in the first proviso,––
(A) the brackets and words “(other than a unit)” shall be
omitted and shall be deemed to have been omitted;
(B) for the words “thirty-six months”, the words “twenty-four
months” shall be substituted and shall be deemed to have been
substituted;
(iii) in the second proviso, after the words “had been substituted”,
the words, brackets, letters and figures “as it stood immediately prior to
the commencement of the Finance (No.2) Act, 2024” shall be inserted
and shall be deemed to have been inserted;
(iv) the third proviso shall be omitted and shall be deemed to have
been omitted.
4. In section 10 of the Income-tax Act,––
(a) with effect from the 1st day of April, 2025,––
(i) in clause (4D), in the Explanation, in clause (c), in
sub-clause (i), item (I) shall be renumbered as item (I)(a) and after
sub-item (a) as so renumbered, the following sub-item shall be inserted,
namely:––
“(b) which has been granted a certificate as a retail scheme
or an Exchange Traded Fund, and is regulated under the
International Financial Services Centres Authority (Fund
Management) Regulations, 2022, made under the International
Financial Services Centres Authority Act, 2019 and satisfies such
conditions, as may be prescribed;”;
(ii) after clause (15A), the following clause shall be inserted,
namely:––
‘(15B) any income of a foreign company from lease rentals,
by whatever name called, of cruise ships, received from a specified
company which operates such ship or ships in India, where such
foreign company and the specified company are subsidiaries of the
same holding company, and such income is received or accrues or
arises in India for any relevant assessment year beginning on or
before the 1st day of April, 2030.
Explanation.––For the purposes of this clause,—
(a) “specified company” means any company, other
than a domestic company which operates cruise ships in
India and opts to pay tax in accordance with the provisions
of section 44BBC;
(b) “holding company”, in relation to a foreign
company or a specified company, means a company of which
such companies are subsidiary companies;
(c) “subsidiary company” or “subsidiary”, in relation
to a holding company, means a company in which the
holding company exercises or controls more than one-half of
the total share capital either at its own or together with one
or more of its subsidiary companies.’;
(b) in clause (23C), with effect from the 1st day of October, 2024,––
(i) in the first proviso, after the words “makes an application”, the
words, figures and letters “before the 1st day of October, 2024,” shall be
inserted;
(ii) in the second proviso, after the words “first proviso”, the
words, figures and letters “before the 1st day of October, 2024,” shall be
inserted;
(iii) after the twenty-third proviso, the following proviso shall be
inserted, namely:––
“Provided also that no approval under the second proviso
shall be granted in relation to any application made on or after the
1st day of October, 2024.”;
(c) with effect from the 1st day of April, 2025,––
(i) in clause (23EE), in the Explanation,––
(A) in clause (i), after the words, brackets and figures “the
Securities Contracts (Regulation) Act, 1956”, the following shall
be inserted, namely:––
“or clause (n) of sub-regulation (1) of regulation 2 of
the International Financial Services Centres Authority
(Market Infrastructure Institutions) Regulations, 2021 made
under the International Financial Services Centres Authority
Act, 2019”;
(B) in clause (ii), after the words, brackets and figures “the
Securities Contracts (Regulation) Act, 1956”, the following shall
be inserted, namely:––
“or the International Financial Services Centres
Authority (Market Infrastructure Institutions) Regulations,
2021 made under the International Financial Services
Centres Authority Act, 2019”;
(ii) in clause (23FB), in the Explanation, in clause (b), in
sub-clause (A), in item (II),––
(A) in the opening portion, after the words “under the
Alternative Investment Funds Regulations”, the words, brackets
and figures “or as referred to in sub-regulation (2) of regulation 18
of the International Financial Services Centres Authority (Fund
Management) Regulations, 2022 made under the International
Financial Services Centres Authority Act, 2019,” shall be inserted;
(B) in sub-item (ii), the word “and” shall be omitted;
(C) in sub-item (iii), for the word “or”, the word “and” shall
be substituted;
(D) after sub-item (iii), the following sub-item shall be
inserted, namely:––
“(iv) any other condition as may be prescribed; or”;
(d) in clause (34A), the following proviso shall be inserted with effect
from the 1st day of October, 2024, namely:––
“Provided that this clause shall not apply with respect to any buy
back of shares by a company on or after the 1st day of October, 2024.”;
(e) in clause (50), for the portion beginning with the words “any income
arising from” and ending with the words “under that Chapter.”, the following
shall be substituted and shall be deemed to have been substituted with effect
from the 1st day of August, 2024, namely:––
“any income arising from any––
(i) specified service provided on or after the date on which
the provisions of Chapter VIII of the Finance Act, 2016 comes into
force; or
(ii) e-commerce supply or services made or provided or
facilitated on or after the 1st day of April, 2020 but before the 1st
day of August, 2024,
and chargeable to equalisation levy under that Chapter.”.
5. In section 11 of the Income-tax Act, in sub-section (7), with effect from the
1st day of April, 2025,––
(a) for the words, brackets, figures and letters “other than clause (1),
clause (23C), clause (23EC), clause (46) and clause (46A) thereof”, the words,
brackets, figures and letters “other than clause (1), clause (23C),
clause (23EA), clause (23EC), clause (23ED), clause (46), clause (46A) and
clause (46B) thereof” shall be substituted;
(b) in the first proviso,––
(i) for the portion beginning with the words “is notified under” and
ending with the word, brackets and figures “clause (46)”, the words,
brackets, figures and letters “is notified under clause (23EA) or
clause (23EC) or clause (23ED) or clause (46)” shall be substituted;
(ii) after the words “whichever is later”, the words, figures, letters
and brackets “, or, the 1st day of April of the previous year relevant to
the assessment year for which the exemption is claimed under
clause (46B) of the said section” shall be inserted;
(c) in the second proviso,—
(i) after the words “notification under”, the words, brackets,
figures and letters “clause (23EA) or” shall be inserted;
(ii) after the words, brackets, figures and letters “clause (23EC)
or”, the words, brackets, figures and letters “clause (23ED) or” shall be
inserted.
6. In section 12A of the Income-tax Act, in sub-section (1), in clause (ac) with
effect from the 1st day of October, 2024,––
(a) in sub-clause (ii),––
(i) after the words, figures and letters “under section 12AB”, the
words, brackets, figures and letters “or approved under sub-clause (iv)
or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of
section 10” shall be inserted;
(ii) after the words “the period of the said registration”, the words
“or approval, as the case may be,” shall be inserted;
(b) in sub-clause (iii),––
(i) after the words, figures and letters “under section 12AB”, the
words, brackets, figures and letters “or provisionally approved under
sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of
clause (23C) of section 10” shall be inserted;
(ii) after the words “period of the provisional registration”, the
words “or provisional approval, as the case may be,” shall be inserted;
(c) after sub-clause (vi), the following proviso shall be inserted,
namely:—
“Provided that where the application is filed beyond the time
allowed in sub-clauses (i) to (vi), the Principal Commissioner or
Commissioner may, if he considers that there is a reasonable cause for
delay in filing the application, condone such delay and such application
shall be deemed to have been filed within time;”.
7. In section 12AB of the Income-tax Act, for sub-section (3), the following
sub-section shall be substituted with effect from the 1st day of October, 2024,
namely:––
“(3) The order under sub-section (1) shall be passed, in such form and
manner as may be prescribed, within a period of,––
(i) three months calculated from the end of the month in which the
application was received in case of clause (a);
(ii) six months calculated from the end of the quarter in which the
application was received in case of sub-clause (ii) of clause (b); and
(iii) one month calculated from the end of the month in which the
application was received in case of clause (c).”.
8. After section 12AB of the Income-tax Act, the following section shall be
inserted with effect from the 1st day of April, 2025, namely:––
“12AC. Where any trust or institution registered under section 12AB
or approved under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or
sub-clause (via) of clause (23C) of section 10, as the case may be, merges
with another trust or institution, the provisions of Chapter XII-EB shall not
apply if––
(a) the other trust or institution has same or similar objects;
(b) the other trust or institution is registered under section 12AA
or section 12AB or approved under sub-clause (iv) or sub-clause (v) or
sub-clause (vi) or sub-clause (via) of clause (23C) of section 10, as the
case may be; and
(c) the said merger fulfils such conditions as may be prescribed.”.
9. In section 13 of the Income-tax Act, in sub-section (1), in clause (d), in the
proviso, after clause (iii), the following clause shall be inserted with effect from the
1st day of October, 2024, namely:––
“(iv) any asset referred to in sub-clauses (i), (ia) and (ii) of clause (b) of
the third proviso to clause (23C) of section 10 or any accretion to the shares,
forming part of the corpus mentioned in the said sub-clauses (i) and (ia)
and voluntary contributions referred to in sub-clause (iv) of clause (b) of the
said proviso.”.
10. In section 16 of the Income-tax Act, in clause (ia), the following proviso
shall be inserted with effect from the 1st day of April, 2025, namely:––
‘Provided that in a case where income-tax is computed under clause (ii)
of sub-section (1A) of section 115BAC, the provisions of this clause shall have
effect as if for the words “fifty thousand rupees”, the words “seventy-five
thousand rupees” had been substituted;’.
11. In section 28 of the Income-tax Act, after Explanation 2, the following
Explanation shall be inserted with effect from the 1st day of April, 2025, namely:––
‘Explanation 3.––It is hereby clarified that any income from letting out
of a residential house or a part of the house by the owner shall not be
chargeable under the head “Profits and gains of business or profession” and
shall be chargeable under the head “Income from house property”.’.
12. In section 36 of the Income-tax Act, in sub-section (1), in clause (iva), for
the words “ten per cent.”, the words “fourteen per cent.” shall be substituted with
effect from the 1st day of April, 2025.
13. In section 37 of the Income-tax Act, in sub-section (1), in Explanation 3,
in clause (iii), for the words “outside India.”, the following shall be substituted with
effect from the 1st day of April, 2025, namely:––
“outside India; or
(iv) to settle proceedings initiated in relation to contravention
under such law as may be notified by the Central Government in the
Official Gazette in this behalf.”.
14. In section 40 of the Income-tax Act, in clause (b), in sub-clause (v), in
item (a), with effect from the 1st day of April, 2025,—
(a) for the letters and figures “Rs. 3,00,000”, the letters and figures
“Rs. 6,00,000” shall be substituted;
(b) for the letters and figures “Rs. 1,50,000”, the letters and figures
“Rs. 3,00,000” shall be substituted.
15. In section 43D of the Income-tax Act, with effect from the 1st day of
April, 2025,—
(i) in the marginal heading, the words “public companies,” shall be
omitted;
(ii) clause (b) shall be omitted;
(iii) in the long line, the words “or the public company” shall be omitted;
(iv) in the Explanation, clauses (a) and (b) shall be omitted.
16. In section 44B of the Income-tax Act, with effect from the 1st day of
April, 2025,––
(a) for the marginal heading, the following marginal heading shall be
substituted, namely:––
“Special provision for computing profits and gains of shipping
business other than cruise shipping in case of non-residents.”;
(b) in sub-section (1), after the words “business of operation of ships,”,
the words, figures and letters “other than cruise ships referred to in
section 44BBC,” shall be inserted.
17. After section 44BBB of the Income-tax Act, the following section shall be
inserted with effect from the 1st day of April, 2025, namely:––
‘44BBC. (1) Notwithstanding anything to the contrary contained in
sections 28 to 43A, in the case of an assessee, being a non-resident, engaged
in the business of operation of cruise ships subject to such conditions as may
be prescribed, a sum equal to twenty per cent. of the aggregate of the amounts
specified in sub-section (2) shall be deemed to be the profits and gains of such
business chargeable to tax under the head “Profits and gains of business or
profession.”.
(2) The amounts referred to in sub-section (1) shall be the following,
namely:—
(a) the amount paid or payable to the assessee or to any person on
his behalf on account of the carriage of passengers; and
(b) the amount received or deemed to be received by or on behalf
of the assessee on account of the carriage of passengers.’.
18. In section 46A of the Income-tax Act, the following proviso shall be
inserted before the Explanation, with effect from the 1st day of October, 2024,
namely:––
“Provided that where the shareholder receives any consideration of the
nature referred to in sub-clause (f) of clause (22) of section 2 from any
company, in respect of any buy-back of shares, that takes place on or after the
1st day of October, 2024, then for the purposes of this section, the value of
consideration received by the shareholder shall be deemed to be nil.”.
19. In section 47 of the Income-tax Act, for clause (iii), the following clause
shall be substituted with effect from the 1st day of April, 2025, namely:––
“(iii) any transfer of a capital asset by an individual or a Hindu undivided
family, under a gift or will or an irrevocable trust;”.
20. In section 48 of the Income-tax Act, in the second proviso, after the words
“where long-term capital gain arises from the transfer”, the brackets, words, figures
and letters “(which takes place before the 23rd day of July, 2024)” shall be inserted
and shall be deemed to have been inserted with effect from the 23rd day of
July, 2024.
21. In section 50AA of the Income-tax Act,––
(a) for the portion beginning with the words “Notwithstanding anything
contained in” and ending with the words “short-term capital asset:”, the
following shall be substituted and shall be deemed to have been substituted
with effect from the 23rd day of July, 2024, namely:––
“Notwithstanding anything contained in clause (42A) of section 2
or section 48, where the capital asset—
(a) is a unit of a Specified Mutual Fund acquired on or after
the 1st day of April, 2023 or a Market Linked Debenture; or
(b) is an unlisted bond or an unlisted debenture which is
transferred or redeemed or matures on or after the 23rd day of
July, 2024,
the full value of consideration received or accruing as a result of the
transfer or redemption or maturity of such debenture or unit or bond as
reduced by—
(i) the cost of acquisition of the debenture or unit or bond; and
(ii) the expenditure incurred wholly and exclusively in
connection with such transfer or redemption or maturity,
shall be deemed to be the capital gains arising from the transfer of a
short-term capital asset:”;
(b) in the Explanation, for clause (ii), the following clause shall be
substituted with effect from the 1st day of April, 2026, namely:––
‘(ii) “Specified Mutual Fund” means,––
(a) a Mutual Fund by whatever name called, which invests
more than sixty-five per cent. of its total proceeds in debt and
money market instruments; or
(b) a fund which invests sixty-five per cent. or more of its
total proceeds in units of a fund referred to in sub-clause (a):
Provided that the percentage of investment in debt and money market
instruments or in units of a fund, as the case may be, in respect of the Specified
Mutual Fund, shall be computed with reference to the annual average of the
daily closing figures:
Provided further that for the purposes of this clause, “debt and money
market instruments” shall include any securities, by whatever name called,
classified or regulated as debt and money market instruments by the Securities
and Exchange Board of India.’.
22. In section 55 of the Income-tax Act, in sub-section (2), in clause (ac), in
the Explanation, in clause (a), in sub-clause (iii), after item (A), the following item
shall be inserted and shall be deemed to have been inserted with effect from the 1st
day of April, 2018, namely:––
“(AA) not listed on a recognised stock exchange as on the 31st day of
January, 2018, or 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,
as the case may be, but listed on such exchange subsequent to the date of
transfer (where such transfer is in respect of sale of unlisted equity shares
under an offer for sale to the public included in an initial public offer);”.
23. In section 56 of the Income-tax Act, in sub-section (2), in clause (viib),
after the second proviso, the following proviso shall be inserted with effect from the
1st day of April, 2025, namely:––
“Provided also that the provisions of this clause shall not apply on or
after the 1st day of April, 2025.”.
24. In section 57 of the Income-tax Act,––
(a) in clause (i), after the words “in the case of dividends,”, the words,
brackets, letter and figures “other than that referred in sub-clause (f) of
clause (22) of section 2” shall be inserted with effect from the 1st day of
October, 2024;
(b) in clause (iia), before the Explanation, the following proviso shall be
inserted with effect from the 1st day of April, 2025, namely:––
‘Provided that in a case where income-tax is computed under
clause (ii) of sub-section (1A) of section 115BAC, the provisions of this
clause shall have effect as if for the words “fifteen thousand rupees”,
the words “twenty-five thousand rupees” had been substituted;’;
(c) after the proviso, the following proviso shall be inserted with effect
from the 1st day of October, 2024, namely:––
“Provided further that no deduction shall be allowed in case of
dividend income of the nature referred to in sub-clause (f) of clause (22)
of section 2.”.
25. In section 80CCD of the Income-tax Act, in sub-section (2), the following
proviso shall be inserted with effect from the 1st day of April, 2025, namely:––
‘Provided that where the total income of the assessee is chargeable
to tax under sub-section (1A) of section 115BAC, the provisions of
sub-section (2) shall have effect as if for the words “ten per cent.”
referred to in clause (b), the words “fourteen per cent.” had been
substituted.’.
26. In section 80G of the Income-tax Act,––
(a) in sub-section (2), in clause (a), in sub-clause (iiihg), for the words
“the National Sports Fund to be set up”, the words “the National Sports
Development Fund set up” shall be substituted with effect from the 1st day of
April, 2025;
(b) in sub-section (5), with effect from the 1st day of October, 2024,––
(I) in the first proviso,––
(i) in clause (iii), for the words “whichever is earlier;”, the
words “whichever is earlier; or” shall be substituted;
(ii) in clause (iv),––
(a) the words “in any other case,” shall be omitted;
(b) in sub-clause (B), the portion beginning with the
words “and where no income or part” and ending with the
words “such application,” shall be omitted;
(II) in the second proviso, in clause (ii), in sub-clause (b), for
item (B), the following item shall be substituted, namely:––
“(B) if he is not so satisfied, pass an order in writing,
rejecting such application and cancelling its approval, if any, after
affording it a reasonable opportunity of being heard;”;
(III) for the third proviso, the following proviso shall be substituted,
namely:––
“Provided also that the order under clause (i) and
clause (iii) of the second proviso shall be passed in such form
and manner as may be prescribed, before expiry of the period
of three months and one month, as the case may be, calculated
from the end of the month in which the application was
received:”;
(IV) after the third proviso, the following proviso shall be inserted,
namely:––
“Provided also that the order under sub-clause (b) of
clause (ii) of the second proviso shall be passed in such form and
manner as may be prescribed, before expiry of the period of six
months from the end of the quarter in which the application was
received:”.
27. In section 92CA of the Income-tax Act, with effect from the 1st day of
April, 2025,––
(a) in sub-section (2A),––
(i) for the words and bracket “any other international transaction
[other than an international transaction”, the words and bracket “any
other international transaction or specified domestic transaction [other
than an international transaction or a specified domestic transaction”
shall be substituted;
(ii) for the words “if such other international transaction is an
international transaction”, the words “if such other international
transaction or a specified domestic transaction is an international
transaction or a specified domestic transaction” shall be substituted;
(b) in sub-section (2B),––
(i) after the words “Where in respect of an international
transaction”, the words “or a specified domestic transaction” shall be
inserted;
(ii) for the words “such transaction is an international transaction”,
the words “such transaction is an international transaction or a specified
domestic transaction” shall be substituted.
28. In section 94B of the Income-tax Act, with effect from the 1st day of
April, 2025,––
(a) in sub-section (3), after the words “banking or insurance”, the words
“or a Finance Company located in any International Financial Services
Centre,” shall be inserted;
(b) in sub-section (5), after clause (iii), the following clauses shall be
inserted, namely:––
‘(iv) “Finance Company” means a finance company as defined in clause (e)
of sub-regulation (1) of regulation 2 of the International Financial Services
Centres Authority (Finance Company) Regulations, 2021 made under the
International Financial Services Centres Authority Act, 2019 and which
satisfies such conditions and carries on such activities, as may be prescribed;
(v)“International Financial Services Centre” shall have themeaning
as assigned to it in clause (q) of section 2 of the Special
Economic Zones Act, 2005.’.
29. In section 111A of the Income-tax Act, in sub-section (1), with effect from
the 23rd day of July, 2024,––
(a) for the long line occurring before the first proviso, the following shall
be substituted and shall be deemed to have been substituted with effect from
the 23rd day of July, 2024, namely:––
“the tax payable by the assessee on the total income shall be the
aggregate of—
(i) the amount of income-tax calculated on such short-term
capital gains––
(a) at the rate of fifteen per cent. for any transfer which
takes place before the 23rd day of July, 2024; and
(b) at the rate of twenty per cent. for any transfer which
takes place on or after the 23rd day of July, 2024;
(ii) the amount of income-tax payable on the balance amount
of the total income as if such balance amount were the total income
of the assessee:”;
(b) in the first proviso, for the words “rate of fifteen per cent.”, the words,
brackets and figure “rate as applicable in clause (i)” shall be substituted and
shall be deemed to have been substituted.
30. In section 112 of the Income-tax Act, in sub-section (1), for the
clauses (a), (b), (c), (d) and the first proviso, the following shall be substituted and shall
be deemed to have been substituted with effect from the 23rd day of July, 2024,
namely:—
“(a) in the case of an individual or a Hindu undivided family, being a
resident,—
(i) the amount of income-tax payable on the total income as
reduced by the amount of such long-term capital gains, had the total
income as so reduced been his total income; and
(ii) the amount of income-tax calculated on such long-term capital
gains,––
(A) at the rate of twenty per cent. for any transfer which takes
place before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer
which takes place on or after the 23rd day of July, 2024:
Provided that 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, such long-term capital gains 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 and the tax on the balance of such long-term
capital gains shall be computed at the rate as applicable in sub-clause (ii):
Provided further that in the case of transfer of a long-term capital asset,
being land or building or both, which is acquired before the 23rd day of
July, 2024, where the income-tax computed under item (B) exceeds the
income-tax computed in accordance with the provisions of this Act, as they
stood immediately before their amendment by the Finance (No. 2) Act,
2024, such excess shall be ignored;
(b) in the case of a domestic company,—
(i) the amount of income-tax payable on the total income as
reduced by the amount of such long-term capital gains, had the total
income as so reduced been its total income; and
(ii) the amount of income-tax calculated on such long-term capital
gains,––
(A) at the rate of twenty per cent. for any transfer which takes
place before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer
which takes place on or after the 23rd day of July, 2024;
(c) in the case of a non-resident (not being a company) or a foreign
company,—
(i) the amount of income-tax payable on the total income as
reduced by the amount of such long-term capital gains, had the total
income as so reduced been its total income; and
(ii) the amount of income-tax calculated on long-term capital gains
[except where such gain arises from transfer of capital asset referred to
in sub-clause (iii)],––
(A) at the rate of twenty per cent. for any transfer which takes
place before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer
which takes place on or after the 23rd day of July, 2024; and
(iii) the amount of income-tax on long-term capital gains arising
from the transfer of a capital asset, being unlisted securities or shares of
a company not being a company in which the public are substantially
interested, as computed without giving effect to the first and second
provisos to section 48, calculated on such long-term capital gains,––
(A) at the rate of ten per cent. for any transfer which takes
place before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer
which takes place on or after the 23rd day of July, 2024;
(d) in any other case of a resident,—
(i) the amount of income-tax payable on the total income as
reduced by the amount of long-term capital gains, had the total income
as so reduced been its total income; and
(ii) the amount of income-tax calculated on such long-term capital
gains,––
(A) at the rate of twenty per cent. for any transfer which takes
place before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer
which takes place on or after the 23rd day of July, 2024:
Provided that where the tax payable in respect of any income arising
from the transfer of a long-term capital asset which takes place before the 23rd
day of July, 2024, being listed securities (other than a unit) or zero coupon
bond, exceeds ten per cent. of the amount of capital gains before giving effect
to the provisions of the second proviso to section 48, then, such excess shall
be ignored for the purpose of computing the tax payable by the assessee:”.
31. In section 112A of the Income-tax Act, in sub-section (2), for clause (i),
the following shall be substituted and shall be deemed to have been substituted with
effect from the 23rd day of July, 2024, namely:––
“(i) the amount of income-tax calculated on such long-term capital gains
exceeding one lakh twenty-five thousand rupees––
(a) on long-term capital gains at the rate of ten per cent. for any
transfer which takes place before the 23rd day of July, 2024; and
(b) on long-term capital gains, at the rate of twelve and one-half
per cent. for any transfer which takes place on or after the 23rd day of
July, 2024:
Provided that the limit of one lakh twenty-five thousand rupees shall apply
on aggregate of the long-term capital gains under sub-clauses (a) and (b);”.
32. In section 113 of the Income-tax Act, with effect from the 1st day of
September, 2024,––
(a) the word “undisclosed” shall be omitted;
(b) in the proviso, the words, figures and letters beginning with “and
applicable” and ending with “under section 132A” shall be omitted.
33. In section 115AB of the Income-tax Act, in sub-section (1), in the
long line, for clause (ii), the following clause shall be substituted and shall
be deemed to have been substituted with effect from the 23rd day of July,
2024, namely:––
“(ii) the amount of income-tax calculated on the income by way of
long-term capital gains referred to in clause (b), if any, included in the total
income,––
(A) at the rate of ten per cent. for any transfer which takes place
before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer
which takes place on or after the 23rd day of July, 2024; and”.
34. In section 115AC of the Income-tax Act, in sub-section (1), in the long
line, for clause (ii), the following clause shall be substituted and shall be deemed to
have been substituted with effect from the 23rd day of July, 2024, namely:––
“(ii) the amount of income-tax calculated on the income by way of
long-term capital gains referred to in clause (c), if any, included in the total
income,—
(A) at the rate of ten per cent. for any transfer which takes place
before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer
which takes place on or after the 23rd day of July, 2024; and”.
35. In section 115ACA of the Income-tax Act, in sub-section (1), in the
long line, for clause (ii), the following clause shall be substituted and shall be
deemed to have been substituted with effect from the 23rd day of July, 2024,
namely:––
“(ii) the amount of income-tax calculated on the income by way of
long-term capital gains referred to in clause (b), if any, included in the total
income,––
(A) at the rate of ten per cent. for any transfer which takes place
before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer
which takes place on or after the 23rd day of July, 2024; and”.
36. In section 115AD of the Income-tax Act, in sub-section (1), with effect
from the 23rd day of July, 2024,––
(a) in the long line, in clause (ii), for the proviso, the following proviso
shall be substituted and shall be deemed to have been substituted, namely:––
“Provided that the amount of income-tax calculated on the income
by way of short-term capital gains referred to in section 111A shall be at
the rate of––
(A) fifteen per cent. for any transfer which takes place before
the 23rd day of July, 2024; and
(B) twenty per cent. for any transfer which takes place on or
after the 23rd day of July, 2024;”;
(b) in clause (iii), for the proviso, the following provisos shall be
substituted and shall be deemed to have been substituted, namely:––
“Provided that in case of income arising from the transfer of a
long-term capital asset referred to in section 112A which exceeds one
lakh and twenty-five thousand rupees, income-tax shall be calculated at
the rate of––
(A) ten per cent. where transfer of such asset takes place
before the 23rd day of July, 2024; and
(B) twelve and one-half per cent. where transfer of such asset
takes place on or after the 23rd day of July, 2024:
Provided further that the limit of one lakh twenty-five thousand
rupees mentioned in the first proviso shall apply on aggregate of the
long-term capital gains referred to in clauses (A) and (B); and”.
37. In section 115BAC of the Income-tax Act, for sub-section (1A), the
following sub-section shall be substituted with effect from the 1st day of
April, 2025, namely:––
“(1A) Notwithstanding anything contained in this Act but subject to the
provisions of this Chapter, the income-tax payable in respect of the total
income of a person, being an individual or Hindu undivided family or
association of persons (other than a co-operative society), or body of
individuals, whether incorporated or not, or an artificial juridical person
referred to in sub-clause (vii) of clause (31) of section 2, other than a person
who has exercised an option under sub-section (6),––
(i) for any previous year relevant to the assessment year beginning
on the 1st day of April, 2024, shall be computed at the rate of tax given
in the following Table, namely:—
TABLE
+-------+-------------------------+-------------+
| Sl. No. | Total income | Rate of tax |
+-------+-------------------------+-------------+
| (1) | (2) | (3) |
+-------+-------------------------+-------------+
| 1. | Upto Rs. 3,00,000 | Nil |
| 2. | From Rs. 3,00,001 to Rs. 6,00,000 | 5 per cent. |
| 3. | From Rs. 6,00,001 to Rs. 9,00,000 | 10 per cent. |
| 4. | From Rs. 9,00,001 to Rs. 12,00,000| 15 per cent. |
| 5. | From Rs. 12,00,001 to Rs. 15,00,000| 20 per cent. |
| 6. | Above Rs. 15,00,000 | 30 per cent.; |
+-------+-------------------------+-------------+
(ii) for any previous year relevant to the assessment year beginning
on or after the 1st day of April, 2025, shall be computed at the rate of
tax given in the following Table, namely:—
TABLE
+-------+-------------------------+-------------+
| Sl. No. | Total income | Rate of tax |
+-------+-------------------------+-------------+
| (1) | (2) | (3) |
+-------+-------------------------+-------------+
| 1. | Upto Rs. 3,00,000 | Nil |
| 2. | From Rs. 3,00,001 to Rs. 7,00,000 | 5 per cent. |
| 3. | From Rs. 7,00,001 to Rs. 10,00,000| 10 per cent. |
| 4. | From Rs. 10,00,001 to Rs. 12,00,000| 15 per cent. |
| 5. | From Rs. 12,00,001 to Rs. 15,00,000| 20 per cent. |
| 6. | Above Rs. 15,00,000 | 30 per cent.”. |
+-------+-------------------------+-------------+
38. In section 115E of the Income-tax Act, in the long line, for clause (ii), the
following clause shall be substituted and shall be deemed to have been substituted with
effect from the 23rd day of July, 2024, namely:––
“(ii) the amount of income-tax calculated on the income by way of
long-term capital gains referred to in clause (b), if any, included in the total
income,––
(A) at the rate of ten per cent. for any transfer which takes place
before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer
which takes place on or after the 23rd day of July, 2024; and”.
39. In section 115QA of the Income-tax Act, in sub-section (1), after the
proviso and before the Explanation, the following proviso shall be inserted with
effect from the 1st day of October, 2024, namely:––
“Provided further that the provisions of this sub-section shall not apply
in respect of any buy-back of shares, that takes place on or after the 1st day of
October, 2024.”.
40. In section 132B of the Income-tax Act, in sub-section (1), in clause (i), for
the words and figures “and the Interest-tax Act, 1974”, the words, brackets and
figures “the Interest-tax Act, 1974 and the Black Money (Undisclosed Foreign
Income and Assets) and Imposition of Tax Act, 2015” shall be substituted with
effect from the 1st day of October, 2024.
41. In section 139 of the Income-tax Act, after sub-section (9) and the proviso
to the Explanation thereof, the following sub-section shall be inserted with effect
from the 1st day of October, 2024, namely:––
“(9A) Where any return of income is furnished in pursuance of an order
under clause (b) of sub-section (2) of section 119, the provisions of thissection
shall apply.”.
42. In section 139AA of the Income-tax Act, with effect from the 1st day of
October, 2024,––
(a) in sub-section (1), after the proviso, the following proviso shall be
inserted, namely:––
“Provided further that nothing in the first proviso shall apply in
respect of any application form for allotment of permanent account
number or return of income furnished on or after the 1st day of October,
2024.”;
(b) after sub-section (2), the following sub-section shall be inserted,
namely:––
“(2A) Every person who has been allotted permanent account
number on the basis of Enrolment ID of Aadhaar application form filed
prior to the 1st day of October, 2024, shall intimate his Aadhaar number
to such authority in such form and manner, as may be prescribed, on or
before a date to be notified by the Central Government in the Official
Gazette.”.
43. In section 144C of the Income-tax Act with effect from the 1st day of
September, 2024,––
(i) in sub-section (15), in clause (b), the following proviso shall be
inserted, namely:––
“Provided that such eligible assessee shall not include person
referred to in sub-section (1) of section 158BA or other person referred
to in section 158BD.”;
(ii) after sub-section (15), the following sub-section shall be inserted,
namely:––
“(16) The provisions of this section shall not apply to any
proceedings under Chapter XIV-B.”.
44. For sections 148 and 148A of the Income-tax Act, the following sections
shall be substituted with effect from the 1st day of September, 2024, namely:––
‘148. (1) Before making the assessment, reassessment or recomputation
under section 147, the Assessing Officer shall, subject to the provisions of
section 148A, issue a notice to the assessee, along with a copy of the order
passed under sub-section (3) of section 148A, requiring him to furnish, within
such period as may be specified in the notice, not exceeding three months from
the end of the month in which such notice is issued, a return of his income or
income of any other person in respect of whom he is assessable under this Act
during the previous year corresponding to the relevant assessment year:
Provided that no notice under this section shall be issued unless there is
information with the Assessing Officer which suggests that the income
chargeable to tax has escaped assessment in the case of the assessee for the
relevant assessment year:
Provided further that where the Assessing Officer has received
information under the scheme notified under section 135A, no notice under
this section shall be issued without prior approval of the specified authority.
(2) The return of income required under sub-section (1) shall be
furnished in such form and verified in such manner and setting forth such other
particulars, as may be prescribed, and the provisions of this Act shall, apply
accordingly as if such return were a return required to be furnished under
section 139:
Provided that any return of income required under sub-section (1),
furnished after the expiry of the period specified in the notice under the said
sub-section, shall not be deemed to be a return under section 139.
(3) For the purposes of this section and section 148A, the information
with the Assessing Officer which suggests that the income chargeable to tax
has escaped assessment means,—
(i) any information in the case of the assessee for the relevant
assessment year in accordance with the risk management strategy
formulated by the Board from time to time; or
(ii) any audit objection to the effect that the assessment in the case
of the assessee for the relevant assessment year has not been made in
accordance with the provisions of this Act; or
(iii) any information received under an agreement referred to in
section 90 or section 90A of the Act; or
(iv) any information made available to the Assessing Officer under
the scheme notified under section 135A; or
(v) any information which requires action in consequence of the
order of a Tribunal or a Court; or
(vi) any information in the case of the assessee emanating from
survey conducted under section 133A, other than under sub-section (2A)
of the said section, on or after the 1st day of September, 2024.
148A. (1) Where the Assessing Officer has information which suggests
that income chargeable to tax has escaped assessment in the case of an
assessee for the relevant assessment year, he shall, before issuing any notice
under section 148 provide an opportunity of being heard to such assessee by
serving upon him a notice to show cause as to why a notice under section 148
should not be issued in his case and such notice to show cause shall be
accompanied by the information which suggests that income chargeable to tax
has escaped assessment in his case for the relevant assessment year.
(2) On receipt of the notice under sub-section (1), the assessee may
furnish his reply within such period, as may be specified in the notice.
(3) The Assessing Officer shall, on the basis of material available on
record and taking into account the reply of the assessee furnished under
sub-section (2), if any, pass an order with the prior approval of the specified
authority determining whether or not it is a fit case to issue notice
under section 148.
(4) The provisions of this section shall not apply to income chargeable
to tax escaping assessment for any assessment year in the case of an assessee
where the Assessing Officer has received information under the scheme
notified under section 135A.
Explanation.—For the purposes of this section and section 148,
“specified authority” means the specified authority referred to in section 151.’.
45. For section 149 of the Income-tax Act, the following section shall be
substituted with effect from the 1st day of September, 2024, namely:––
“149. (1) No notice under section 148 shall be issued for the relevant
assessment year,—
(a) if three years and three months have elapsed from the end of
the relevant assessment year, unless the case falls under clause (b);
(b) if three years and three months, but not more than five years and
three months, have elapsed from the end of the relevant assessment year
unless the Assessing Officer has in his possession books of account or other
documents or evidence related to any asset or expenditure or transaction or
entries which show that the income chargeable to tax, which has escaped
assessment, amounts to or is likely to amount to fifty lakh rupees or more.
(2) No notice to show cause under section 148A shall be issued for the
relevant assessment year,—
(a) if three years have elapsed from the end of the relevant
assessment year, unless the case falls under clause (b);
(b) if three years, but not more than five years, have elapsed from the
end of the relevant assessment year unless the income chargeable to tax
which has escaped assessment, as per the information with the Assessing
Officer, amounts to or is likely to amount to fifty lakh rupees or more.
46. For section 151 of the Income-tax Act, the following section shall be
substituted with effect from the 1st day of September, 2024, namely:––
“151. Specified authority for the purposes of sections 148 and 148A
shall be the Additional Commissioner or the Additional Director or the Joint
Commissioner or the Joint Director, as the case may be.”.
47. In section 152 of the Income-tax Act, after sub-section (2), the following
sub-sections shall be inserted with effect from the 1st day of September, 2024, namely:––
“(3) Where a search has been initiated under section 132 or requisition
is made under section 132A, or a survey is conducted under section 133A
[other than under sub-section (2A) of the said section], on or after the 1st day
of April, 2021 but before the 1st day of September, 2024, the provisions of
sections 147 to 151 shall apply as they stood immediately before the
commencement of the Finance (No. 2) Act, 2024.
(4) Where, in a case other than that covered under sub-section (3),
a notice under section 148 has been issued or an order under clause (d) of
section 148A has been passed, prior to the 1st day of September, 2024, the
assessment, reassessment or recomputation in such case shall be governed as
per the provisions of sections 147 to 151, as they stood immediately before
the commencement of the Finance (No. 2) Act, 2024.”.
48. In section 153 of the Income-tax Act, with effect from the 1st day of
October, 2024,––
(I) after sub-section (1A), the following sub-section shall be inserted,
namely:––
“(1B) Notwithstanding anything in sub-section (1), where a return is
furnished in consequence of an order under clause (b) of sub-section (2)
of section 119, an order of assessment under section 143 or section 144
may be made at any time before the expiry of twelve months from the end
of the financial year in which such return was furnished.”;
(II) in sub-section (3), for the words and figures “order under
section 254” wherever they occur, the words and figures “order
under section 250 or section 254” shall be substituted;
(III) in sub-section (8),––
(i) for the word, figures and letter “section 153B” at both the places
where they occur, the words, figures and letters “section 153B or
section 158BE” shall be substituted;
(ii) for the words, brackets, figures and letter “revived under
sub-section (2) of section 153A”, the words, brackets, figures and letters
“revived under sub-section (2) of section 153A or sub-section (5) of
section 158BA” shall be substituted;
(IV) in Explanation 1, after the fifth proviso, the following proviso shall
be inserted, namely:––
“Provided also that where after exclusion of the period referred to in
clause (xii), the period of limitation for making an order of assessment,
reassessment or recomputation, as the case may be, ends before the end of
the month, such period shall be extended to the end of such month.”.
49. For Chapter XIV-B of the Income-tax Act, the following Chapter shall be
substituted with effect from the 1st day of September, 2024, namely:—
‘CHAPTER XIV-B
SPECIAL PROCEDURE FOR ASSESSMENT OF SEARCH CASES
158B. In this Chapter, unless the context otherwise requires,—
(a) “block period” means the period comprising previous years
relevant to six assessment years preceding the previous year in which the
search was initiated under section 132 or any requisition was made under
section 132A and also includesthe period starting from the 1st day of April
of the previous year in which search was initiated or requisition was made
and ending on the date of the execution of the last of the authorisations for
such search or such requisition;
(b) “undisclosed income” includes any money, bullion, jewellery
or other valuable article or thing or any expenditure or any income based
on any entry in the books of account or other documents or transactions,
where such money, bullion, jewellery, valuable article, thing, entry in
the books of account or other document or transaction represents wholly
or partly income or property which has not been or would not have been
disclosed for the purposes of this Act, or any expense, exemption,
deduction or allowance claimed under this Act which is found to be
incorrect, in respect of the block period.
Explanation.—For the purposes of this Chapter, the last of the authorisations
shall be deemed to have been executed,—
(a) in the case of search, on the conclusion of search as recorded
in the last panchnama drawn in relation to any person in whose case the
warrant of authorisation has been issued;
(b) in the case of requisition under section 132A, on the actual
receipt of the books of account or other documents or assets by the
Authorised Officer.
158BA. (1) Notwithstanding anything in any other provisions of this Act,
where on or after the 1st day of September, 2024, a search is initiated under
section 132, or books of account, other documents or any assets are requisitioned
under section 132A, in the case of any person, then, the Assessing Officer shall
proceed to assess or reassess the total income of the block period in accordance
with the provisions of this Chapter.
(2) The assessment or reassessment or recomputation under the
provisions of this Act (other than this Chapter), if any, pertaining to any
assessment year falling in the block period, pending on the date of initiation
of the search under section 132, or making of requisition under section 132A,
as the case may be, shall abate and shall be deemed to have abated on the
date of initiation of search or making of requisition.
(3) Where during the course of any pending proceeding for the assessment
or reassessment or recomputation under the provisions of this Act (other than this
Chapter), a reference under sub-section (1) of section 92CA has been made, or an
order under sub-section (3) of section 92CA has been passed, such assessment or
reassessment or recomputation, along with such reference made or order passed,
as the case may be, shall also abate and shall be deemed to have abated on the date
of initiation of search or making of requisition.
(4) Where any assessment under the provisions of this Chapter is
pending in the case of an assessee in whose case a subsequent search is
initiated, or a requisition is made, such assessment shall be duly completed,
and thereafter, the assessment in respect of such subsequent search or
requisition shall be made under the provisions of this Chapter:
Provided that in a case where the period of completing the assessment in
respect of subsequent search is less than three months such period shall be
extended to three months from the end of the month in which the assessment
in respect of the earlier search was completed.
(5) If any proceeding initiated under this Chapter or any order of assessment
or reassessment made under clause (c) of sub-section (1) of section 158BC has
been annulled in appeal or any other legal proceeding, then, notwithstanding
anything in this Chapter or section 153, the assessment or reassessment relating to
any assessment year which has abated under sub-section (2) or sub-section (3),
shall revive with effect from the date of receipt of the order of such annulment by
the Principal Commissioner or Commissioner:
Provided that such revival shall cease to have effect, if such order of
annulment is set aside.
(6) The total income (other than undisclosed income) of the assessment
year relevant to the previous year in which the last of the authorisations for a
search is executed or a requisition is made, shall be assessed separately in
accordance with the other provisions of this Act.
(7) The total income relating to the block period shall be charged to tax,
at the rate specified in section 113, as income of the block period irrespective
of the previous year or years to which such income relates.
158BB. (1) The total income referred to in sub-section (1) of
section 158BA of the block period shall be the aggregate of the following,
namely:––
(i)total income disclosed in the return furnished under section 158BC;
(ii) total income assessed under sub-section (3) of section 143 or
section 144 or section 147 or section 153A or section 153C prior to the date
of initiation of the search or the date of requisition, as the case may be;
(iii) total income declared in the return of income filed under
section 139 or in response to a notice under sub-section (1) of
section 142 or section 148 and not covered under clause (i) or clause (ii);
(iv) total income determined where the previous year has not
ended, on the basis of entries relating to such income or transactions as
recorded in the books of account and other documents maintained in the
normal course on or before the date of last of the authorisations for the
search or requisition relating to such previous year;
(v) undisclosed income determined by the Assessing Officer under
sub-section (2).
(2) The undisclosed income falling within the block period, forming
part of the total income referred to in sub-section (1) of section 158BA,
shall be computed in accordance with the provisions of this Act, on the
basis of evidence found as a result of search or survey or requisition of
books of account or other documents and any other material or information
as are either available with the Assessing Officer or come to his notice
during the course of proceedings under this Chapter.
(3) Where any evidence found as a result of search or requisition of
books of account or other documents and any other material or information as
are either available with the Assessing Officer or come to his notice during the
course of proceedings under this Chapter, or determined on the basis of entries
relating to such income or transactions as recorded in books of account
and other documents maintained in the normal course on or before the date of the
search or requisition, relates to any international transaction or specified domestic
transaction referred to in section 92CA, pertaining to the period beginning from
the 1st day of April of the previous year in which last of the authorisations was
executed and ending with the date on which last of the authorisations was
executed, such evidence shall not be considered for the purposes of determining
the total income of the block period and such income shall be considered in the
assessment made under the other provisions of this Act.
(4) For the purposes of determination of undisclosed income,––
(a) of a firm, such income assessed for each of the previous years
falling within the block period shall be the income determined before
allowing deduction of salary, interest, commission, bonus or
remuneration by whatever name called to any partner not being a
working partner;
(b) the provisions of sections 68, 69, 69A, 69B and 69C shall, so
far as may be, apply and references to “financial year” in those sections
shall be construed as references to the relevant previous year falling in
the block period;
(c) the provisions of section 92CA shall, so far as may be, apply
and references to “previous year” in that section shall be construed as
reference to the relevant previous year falling in the block period
excluding the period referred to in sub-section (3).
(5) The tax referred to in sub-section (7) of section 158BA shall be
charged on the total income determined in the manner specified in
sub-section (1) as reduced by the total income referred to in clause (ii),
clause (iii) and clause (iv) of sub-section (1).
(6) For the purposes of sub-section (1) and sub-section (5), if the
disclosed income under clause (i) of sub-section (1) or where the income
disclosed in respect of any previous year comprising the block period, or the
returned income or assessed income under clause (ii) or clause (iii) of
sub-section (1) or where the income as determined under clause (iv), is a loss,
it shall be ignored.
(7) For the purposes of assessment under this Chapter, losses brought
forward from the previous year (prior to the first previous year comprising the
block period) under Chapter VI or unabsorbed depreciation under sub-section (2)
of section 32 shall not be set off against the undisclosed income determined in the
block assessment under this Chapter but may be carried forward for being set off
in the previous year subsequent to the assessment year in which the block period
ends, for the remaining period, taking into account the block period and such
assessment year, and in accordance with the provisions of this Act.
158BC. (1) Where any search has been initiated under section 132 or
books of account, other documents or assets are requisitioned under
section 132A, in the case of any person, then,—
(a) the Assessing Officer shall, in respect of search initiated, or
books of account or other documents or any assets requisitioned, on or
after the 1st day of September, 2024, issue a notice to such person,
requiring him to furnish within such period, not exceeding a period of
sixty days, as may be specified in the notice, a return in the form and
verified in the manner, as may be prescribed, setting forth his total
income, including the undisclosed income, for the block period:
Provided that such return shall be considered as if it was a
return furnished under the provisions of section 139 and notice under
sub-section (2) of section 143 shall thereafter be issued:
Provided further that any return of income, required to be
furnished by an assessee under this section and furnished beyond the
period allowed in the notice shall not be deemed to be a return under
section 139:
Provided also that no notice under section 148 is required to be
issued for the purpose of proceeding under this Chapter:
Provided also that a person who has furnished a return under this
clause shall not be entitled to furnish a revised return;
(b) the Assessing Officer shall proceed to determine the total
income including the undisclosed income of the block period in the
manner laid down in section 158BB and the provisions of section 142,
sub-sections (2) and (3) of section 143, section 144, section 145,
section 145A and section 145B shall, so far as may be, apply;
(c) the Assessing Officer, on determination of the total income of
the block period in accordance with this Chapter, shall pass an order of
assessment or reassessment and determine the tax payable by him on the
basis of such assessment or reassessment:
Provided that nothing in the provisions of section 144C shall
apply in respect of such order:
Provided further that where the order of assessment or
reassessment is made in pursuance of section 158BD, the block period
for such assessment or reassessment shall be the same as that
determined in respect of the person in whose case search was made
under section 132, or whose books of account or other documents or
any assets were requisitioned under section 132A, and proceedings
under section 158BD were initiated due to such search or
requisition, as the case may be;
(d) the assets seized under section 132 or requisitioned under
section 132A shall be dealt with in accordance with the provisions of
section 132B.
(2) The provisions of sub-section (1) of section 143 shall not apply to
the return furnished under this section.
(3) The Assessing Officer, before issuance of notice under clause (a) of
sub-section (1), shall take prior approval of the Additional Commissioner or
the Additional Director or the Joint Commissioner or the Joint Director, as the
case may be.
158BD. Where the Assessing Officer is satisfied that any undisclosed
income belongs to or pertains to or relates to any person, other than the person
with respect to whom search was made under section 132 or whose books of
account or other documents or any assets were requisitioned under
section 132A, then, any money, bullion, jewellery or other valuable article or
thing, or assets, or expenditure, or books of account, other documents, or any
information contained therein, seized or requisitioned shall be handed over to
the Assessing Officer having jurisdiction over such other person and that
Assessing Officer shall proceed under section 158BC against such other
person and the provisions of this Chapter shall apply accordingly.
158BE. (1) Notwithstanding the provisions of section 153, the order
under section 158BC shall be passed within twelve months from the end of
the month in which the last of the authorisations for search under section 132,
or requisition under section 132A, was executed or made, as the case may be:
Provided that in a case where search under section 132 was initiated, or
requisition under section 132A was made, and during the course of the
proceedings for the assessment or reassessment of the total income of the
relevant block period, any reference under sub-section (1) of section 92CA is
made, the period available for making an order of assessment or reassessment
in respect of the block period shall be extended by twelve months.
(2) In computing the period of limitation under sub-section (1), the
period (not exceeding one hundred and eighty days) commencing from the
date on which a search is initiated under section 132 or a requisition is made
under section 132A and ending on the date on which the books of account, or
other documents or money or bullion or jewellery or other valuable article or
thing seized under section 132 or requisitioned under section 132A, as the case
may be, are handed over to the Assessing Officer having jurisdiction over the
assessee, in whose case such search is initiated under section 132 or such
requisition is made under section 132A, as the case may be, shall be excluded:
Provided that where after exclusion of the period referred to in this
sub-section, the period of limitation for making an order of assessment or
reassessment, as the case may be, expires before the end of a month, such
period shall be extended to the end of such month.
(3) The period of limitation for completion of assessment or
reassessment for the block period in the case of the other person referred to in
section 158BD shall be twelve months from the end of the month in which the
notice under section 158BC in pursuance of section 158BD, was issued to such
other person:
Provided that in case where during the course of the proceedings for the
assessment of undisclosed income of the block period in case of other person
referred to in section 158BD, a reference under sub-section (1) of
section 92CA is made, the period available for making an order of assessment
in respect of the block period in case of such other person shall be extended
by twelve months.
(4) In computing the period of limitation under this section, the
following period shall be excluded,—
(i) the period during which the assessment proceeding is stayed by
an order or injunction of any court; or
(ii) the period commencing from the date on which a reference or
first of the references for exchange of information is made by an
authority competent under an agreement referred to in section 90 or
section 90A and ending with the date on which the information requested
is last received by the Principal Commissioner or Commissioner or a
period of one year, whichever is less; or
(iii) the time taken in reopening the whole or any part of the
proceeding or giving an opportunity to the assessee to be re-heard under
the proviso to section 129; or
(iv) the period commencing from the date on which the Assessing
Officer directs the assessee to get his accounts audited or inventory
valued under sub-section (2A) of section 142 and—
(a) ending with the last date on which the assessee is required
to furnish a report of such audit or inventory valuation under that
sub-section; or
(b) where such direction is challenged before a court, ending
with the date on which the order setting aside such direction is
received by the Principal Commissioner or Commissioner; or
(v) the period commencing from the date on which the Assessing
Officer makes a reference to the Valuation Officer under sub-section (1)
of section 142A and ending with the date on which the report of the
Valuation Officer is received by the Assessing Officer; or
(vi) the period commencing from the date on which the Assessing
Officer intimates the Central Government or the prescribed authority,
the contravention of the provisions of clause (21) or clause (22B) or
clause (23A) or clause (23B) of section 10, under sub-clause (i) of the
first proviso to sub-section (3) of section 143 and ending with the date
on which the copy of the order withdrawing the approval or rescinding
the notification, as the case may be, under those clauses is received by
the Assessing Officer; or
(vii) the period commencing from the date on which the Assessing
Officer makes a reference to the Principal Commissioner or Commissioner
under the second proviso to sub-section (3) of section 143 and ending with
the date on which the copy of the order under clause (ii) or clause (iii) of the
fifteenth proviso to clause (23C) of section 10 or clause (ii) or clause (iii) of
sub-section (4) of section 12AB, as the case may be, is received by the
Assessing Officer; or
(viii) the period commencing from the date on which a reference for
declaration of an arrangement to be an impermissible avoidance
arrangement is received by the Principal Commissioner or Commissioner
under sub-section (1) of section 144BA and ending on the date on which a
direction under sub-section (3) or sub-section (6) or an order under
sub-section (5) of the said section is received by the Assessing Officer; or
(ix) the period commencing from the date on which an application is
made before the Authority for Advance Rulings or before the Board for
Advance Rulings under sub-section (1) of section 245Q and ending with the
date on which the order rejecting the application is received by the Principal
Commissioner or Commissioner under sub-section (3) of section 245R; or
(x) the period commencing from the date on which an application is
made before the Authority for Advance Rulings or before the Board for
Advance Rulings under sub-section (1) of section 245Q and ending with the
date on which the advance ruling pronounced by it is received by the Principal
Commissioner or Commissioner under sub-section (7) of section 245R:
Provided that where immediately after the exclusion of the aforesaid period, the
period of limitation referred to in sub-section (1) or sub-section (3) available to the
Assessing Officer for making an order under clause (c) of sub-section (1) of
section 158BC is less than sixty days, such remaining period shall be extended to sixty
days and the aforesaid period of limitation shall be deemed to be extended accordingly:
Provided further that where after extension of the period referred to in the
first proviso, the period of limitation for making an order of assessment or
reassessment, as the case may be, expires before the end of a month, such period
shall be extended to the end of such month.
158BF. No interest under section 234A, 234B or 234C or penalty under
section 270A shall be levied or imposed upon the assessee in respect of the
undisclosed income assessed or reassessed for the block period.
158BFA. (1) Where the return of total income including undisclosed income
for the block period, in respect of search initiated under section 132, or books of
account, other documents or any assets requisitioned under section 132A, on or
after the 1st day of September, 2024, as required by a notice under clause (a) of
sub-section (1) of section 158BC, is not furnished within the time specified in such
notice, or is not furnished, the assessee shall be liable to pay simple interest at the
rate of one and one-half per cent. of the tax on undisclosed income determined
under clause (c) of sub-section (1) of section 158BC, for every month or part of a
month comprised in the period commencing on the day immediately following
the expiry of the time specified in the notice, and ending on the date of completion
of assessment under clause (c) of sub-section (1) of section 158BC.
(2) The Assessing Officer or the Commissioner (Appeals) in the course
of any proceedings under this Chapter, may direct that the person shall pay
by way of penalty a sum which shall be equal to fifty per cent. of tax so
leviable in respect of the undisclosed income determined by the Assessing
Officer under clause (c) of sub-section (1) of section 158BC:
Provided that no order imposing penalty under this section or
sub-section (1) of section 271AAD or section 271D or section 271DA or
section 271E shall be made for the block period in respect of a person if—
(i) such person has furnished a return under clause (a) of
sub-section (1) of section 158BC;
(ii) the tax payable on the basis of such return has been paid or, if
the assets seized consist of money, the assessee offers the money so
seized to be adjusted against the tax payable;
(iii) evidence of tax paid is furnished along with the return; and
(iv) an appeal is not filed against the assessment of that part of
income which is shown in the return:
Provided further that the provisions of the first proviso shall not apply
where the undisclosed income determined by the Assessing Officer is in
excess of the income shown in the return and in such cases the penalty shall
be imposed on that portion of undisclosed income determined which is in
excess of the amount of income shown in the return.
(3) No order imposing a penalty under sub-section (2) shall be made,—
(a) unless an assessee has been given a reasonable opportunity of
being heard;
(b) by the Deputy Commissioner or Assistant Commissioner or the
Deputy Director or Assistant Director, as the case may be, where the
amount of penalty exceeds two lakh rupees except with the previous
approval of the Additional Commissioner or the Additional Director or
the Joint Commissioner or the Joint Director, as the case may be;
(c) in a case where the assessment is the subject-matter of an
appeal to the Commissioner (Appeals) under section 246A or an appeal
to the Appellate Tribunal under section 253, after the expiry of the
financial year in which the proceedings, in the course of which action
for the imposition of penalty has been initiated, are completed, or six
months from the end of the financial year in which the order of the
Commissioner (Appeals) or, as the case may be, the Appellate Tribunal
is received by the Principal Commissioner or Commissioner, whichever
period expires later;
(d) in a case where the assessment is the subject-matter of revision
under section 263, after the expiry of six months from the end of the
financial year in which such order of revision is passed;
(e) in any case other than those mentioned in clause (c) and clause (d),
after the expiry of the financial year in which the proceedings, in the course
of which notice for the imposition of penalty has been issued, are completed,
or six months from the end of the financial year in which notice for
imposition of penalty is issued, whichever period expires later.
(4) In computing the period of limitation under this section, the
following period shall be excluded––
(i) the time taken in giving an opportunity to the assessee to be
reheard under the proviso to section 129; or
(ii) the period during which the proceedings under sub-section (2) are
stayed by an order or injunction of any court:
Provided that where immediately after the exclusion of the aforesaid
period, the period of limitation referred to in sub-section (3) available to the
Assessing Officer for making an order under sub-section (2) of this section is
less than sixty days, such remaining period shall be extended to sixty days and
the aforesaid period of limitation shall be deemed to be extended accordingly:
Provided further that where after exclusion of the period referred to in
the first proviso, the period of limitation for making of an order for imposition
of penalty expires before the end of a month, such period shall be extended to
the end of such month.
(5) An income-tax authority on making an order under sub-section (2)
imposing a penalty, unless he is himself an Assessing Officer, shall forthwith
send a copy of such order to the Assessing Officer.
158BG. The order of assessment for the block period shall be passed by
an Assessing Officer not below the rank of a Deputy Commissioner or an
Assistant Commissioner or a Deputy Director or an Assistant Director, as the
case may be:
Provided that no such order shall be passed without the previous
approval of the Additional Commissioner or the Additional Director or the
Joint Commissioner or the Joint Director, as the case may be, in respect of
search initiated under section 132, or books of account, other documents or
any assets requisitioned under section 132A, on or after the 1st day of
September, 2024.
158BH. Save as otherwise provided in this Chapter, all other provisions
of this Act shall apply to assessment made under this Chapter.
158BI. The provisions of this Chapter shall not apply where a search was
initiated under section 132, or books of account, other documents or any assets
were requisitioned under section 132A, before the 1st day of September, 2024,
and proceedings in relation to such search or requisition, as the case may be,
shall be governed by the other provisions of this Act.’.
50. In section 192 of the Income-tax Act, with effect from the 1st day of
October, 2024,—
(I) in sub-section (1C), for the words, brackets and figures “clause (vi)
of sub-section (2)”, the words, brackets and figures “sub-clause (vi) of
clause (2)” shall be substituted;
(II) in sub-section (2A), the words, brackets and figure “sub-section (1)
of” shall be omitted;
(III) for sub-section (2B), the following sub-section shall be substituted,
namely:––
‘(2B) Where an assessee who receives any income chargeable
under the head “Salaries” has, in addition,—
(i) any income chargeable under any other head of income
(not being a loss under any such head other than the loss under the
head “Income from house property”); or
(ii) any tax deducted or collected under the provisions of
Part B or Part BB of this Chapter, as the case may be,
for the same financial year, he may send to the person responsible for
making the payment referred to in sub-section (1), the particulars of—
(a) such other income;
(b) any tax deducted or collected under any other provision
of Part B or Part BB of this Chapter, as the case may be; and
(c) the loss, if any, under the head “Income from house
property”,
in such form and verified in such manner as may be prescribed, and
thereupon the person responsible as aforesaid shall take into account
the particulars referred to in clauses (a), (b) and (c) for the purposes
of making the deduction under sub-section (1):
Provided that this sub-section shall not in any case have the
effect of reducing the tax deductible from income under the head
“Salaries”, except where the loss under the head “Income from house
property” and the tax deducted in accordance with other provisions of
Part B and tax collected in accordance with the provisions of Part BB,
of this Chapter, has been taken into account.
51. In section 193 of the Income-tax Act, in the proviso, in clause (iv), for the
proviso, the following proviso shall be substituted with effect from the 1st day of
October, 2024, namely:––
“Provided that nothing in this clause shall apply to the interest exceeding
ten thousand rupees payable during the financial year on 8% Savings
(Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 or Floating
Rate Savings Bonds, 2020 (Taxable) or any other security of the Central
Government or State Government as the Central Government may, by
notification in the Official Gazette, specify in this behalf;”.
52. In section 194 of the Income-tax Act, after the word, brackets and letter
“sub-clause (e)”, the words, brackets and letter “or sub-clause (f)” shall be inserted
with effect from the 1st day of October, 2024.
53. In section 194C of the Income-tax Act, in the Explanation, in clause (iv),
for the long line, the following long line shall be substituted with effect from the
1st day of October, 2024, namely:—
“but does not include—
(A) manufacturing or supplying a product according to the
requirement or specification of a customer by using material purchased
from a person, other than such customer or associate of such customer; or
(B) any sum referred to in sub-section (1) of section 194J.”.
54. In section 194DA of the Income-tax Act, for the words “five per cent.”,
the words “two per cent.” shall be substituted with effect from the 1st day of
October, 2024.
55. Section 194F of the Income-tax Act shall be omitted with effect from the
1st day of October, 2024.
56. In section 194G of the Income-tax Act, for the words “five per cent.”, the
words “two per cent.” shall be substituted with effect from the 1st day of October, 2024.
57. In section 194H of the Income-tax Act, for the words “five per cent.”, the
words “two per cent.” shall be substituted with effect from the 1st day of October, 2024.
58. In section 194-IA of the Income-tax Act, in sub-section (2), the following
proviso shall be inserted with effect from the 1st day of October, 2024, namely:—
“Provided that where there is more than one transferor or transferee in
respect of any immovable property, then the consideration shall be the
aggregate of the amounts paid or payable by all the transferees to the transferor
or all the transferors for transfer of such immovable property.”.
59. In section 194-IB of the Income-tax Act, in sub-section (1), for the words
“five per cent.”, the words “two per cent.” shall be substituted with effect from the
1st day of October, 2024.
60. In section 194M of the Income-tax Act, in sub-section (1), for the words
“five per cent.”, the words “two per cent.” shall be substituted with effect from the
1st day of October, 2024.
61. In section 194-O of the Income-tax Act, in sub-section (1), for the words
“one per cent.”, the figures and word “0.1 per cent.” shall be substituted with effect
from the 1st day of October, 2024.
62. After section 194S of the Income-tax Act, the following section shall be
inserted with effect from the 1st day of April, 2025, namely:––
“194T. (1) Any person, being a firm, responsible for paying any sum in
the nature of salary, remuneration, commission, bonus or interest to a partner
of the firm, shall, at the time of credit of such sum to the account of the partner
(including the capital account) or at the time of payment thereof, whichever is
earlier shall, deduct income-tax thereon at the rate of ten per cent.
(2) No deduction shall be made under sub-section (1) where such sum or the
aggregate of such sums credited or paid or likely to be credited or paid to the partner
of the firm does not exceed twenty thousand rupees during the financial year.”.
63. In section 196B of the Income-tax Act, for the words “at the rate of ten
per cent.”, the following shall be substituted and shall be deemed to have been
substituted with effect from the 23rd day of July, 2024, namely:—
“at the rate of––
(a) ten per cent. in respect of income from units referred to in clause (i)
of sub-section (1) of section 115AB;
(b) ten per cent. in respect of long-term capital gains arising from
transfer of units referred to in section 115AB, which takes place before
the 23rd day of July, 2024;
(c) twelve and one-half per cent. in respect of long-term capital
gains arising from transfer of units referred to in section 115AB, which
takes place on or after the 23rd day of July, 2024.”.
64. In section 196C of the Income-tax Act, for the words “at the rate of ten
per cent.”, the following shall be substituted and shall be deemed to have been
substituted with effect from the 23rd day of July, 2024, namely:––
“at the rate of––
(a) ten per cent. in respect of income by way of interest or
dividends in respect of bonds or Global Depository Receipts referred to
in section 115AC;
(b) ten per cent. in respect of long-term capital gains arising from
transfer of such bond or Global Depository Receipts referred to in
section 115AC which takes place before the 23rd day of July, 2024;
(c) twelve and one-half per cent. in respect of long-term capital
gains arising from transfer of such bond or Global Depository Receipts
referred to in section 115AC which takes place on or after the 23rd day
of July, 2024.”.
65. In section 197 of the Income-tax Act, in sub-section (1), for the figures
and letter “194-O”, the figures and letters “194-O, 194Q” shall be substituted with
effect from the 1st day of October, 2024.
66. In section 198 of the Income-tax Act, after the words “this Chapter”, the
words “and income-tax paid outside India, by way of deduction, in respect of which
an assessee is allowed a credit against the tax payable under this Act,” shall be
inserted with effect from the 1st day of April, 2025.
67. In section 200 of the Income-tax Act, in sub-section (3), after the proviso, the
following proviso shall be inserted with effect from the 1st day of April, 2025, namely:—
“Provided further that no correction statement shall be delivered after
the expiry of six years from the end of the financial year in which the statement
referred to in sub-section (3) is required to be delivered.”.
68. In section 200A of the Income-tax Act, with effect from the 1st day of
April, 2025,—
(a) in the marginal heading, for the word “source”, the words “source
and other statements” shall be substituted;
(b) after sub-section (2), the following sub-section shall be inserted,
namely:—
“(3) The Board may make a scheme for processing of statements
made by any other person, not being a deductor.”.
69. In section 201 of the Income-tax Act, in sub-section (3), with effect from
the 1st day of April, 2025,—
(i) for the words “a person resident in India, at any time after the expiry
of seven years”, the words “any person, at any time after the expiry of six
years” shall be substituted;
(ii) for the words “under the proviso”, the words “under the first proviso”
shall be substituted.
70. In section 206C of the Income-tax Act,––
(a) for sub-section (1F), the following sub-section shall be substituted
with effect from the 1st day of January, 2025, namely:––
“(1F) Every person, being a seller, who receives any amount as
consideration for sale of—
(i) a motor vehicle; or
(ii) any other goods, as may be specified by the Central
Government by notification in the Official Gazette,
of the value exceeding ten lakh rupees, shall, at the time of receipt of
such amount, collect from the buyer, a sum equal to one per cent. of the
sale consideration as income-tax.”;
(b) in sub-section (3B), the following proviso shall be inserted with
effect from the 1st day of April, 2025, namely:––
“Provided that no correction statement shall be delivered after the
expiry of six years from the end of the financial year in which the
statement referred to in the proviso to sub-section (3) is required to be
delivered.”;
(c) in sub-section (4), after the words “such person”, the words “or any
other person eligible for credit” shall be inserted with effect from the 1st day
of January, 2025;
(d) with effect from the 1st day of April, 2025,––
(i) in sub-section (7), for the words “interest at the rate of one
per cent. per month or part thereof on the amount of such tax from the
date on which such tax was collectible to the date on which the tax was
actually paid and such interest shall be paid”, the following shall be
substituted, namely:––
“interest—
(a) at the rate of one per cent. for every month or part
thereof on the amount of such tax from the date on which
such tax was collectible to the date on which such tax is
collected; and
(b) at the rate of one and one-half per cent. for every
month or part thereof on the amount of such tax from the date
on which such tax was collected to the date on which such
tax is actually paid,
and such interest shall be paid”;
(ii) after sub-section (7), the following sub-section shall be inserted,
namely:—
“(7A) No order shall be made under sub-section (6A) deeming
a person to be an assessee in default for failure to collect the whole
or any part of the tax from any person, at any time after the expiry
of six years from the end of the financial year in which tax was
collectible or two years from the end of the financial year in which
the correction statement is delivered under sub-section (3B),
whichever is later.”;
(e) with effect from the 1st day of October, 2024,––
(i) in sub-section (9), for the words, brackets, figures and letter
“sub-section (1) or sub-section (1C)”, at both the places where they
occur, the words, brackets, figures and letters “sub-section (1),
sub-section (1C) or sub-section (1H)” shall be substituted;
(ii) after sub-section (11), the following sub-section shall be
inserted, namely:––
“(12) Notwithstanding anything contained in this section, no
collection of tax shall be made or collection of tax shall be made at
such lower rate in respect of specified transaction, from such person
or class of persons, including institution, association or body or class
of institutions, associations or bodies, as the Central Government
may, by notification in the Official Gazette specify in this behalf.”.
71. In section 230 of the Income-tax Act, in sub-section (1A), in the proviso, in the
long line, after the words and figures “the Expenditure-tax Act, 1987,”, the words,
brackets and figures “or the Black Money (Undisclosed Foreign Income and Assets)
and Imposition of Tax Act, 2015,” shall be inserted with effect from the 1st day of
October, 2024.
72. In section 244A of the Income-tax Act, in sub-section (1A), in the proviso, for
the words “with the date on which such assessment or reassessment is made”, the words
“with the date up to which such refund is withheld” shall be substituted with effect from
the 1st day of October, 2024.
73. In section 245 of the Income-tax Act, in sub-section (2), with effect from
the 1st day of October, 2024,––
(a) the words “is of the opinion that the grant of refund is likely to
adversely affect the revenue,” shall be omitted;
(b) after the words “withhold the refund up to”, the words “sixty days
from” shall be inserted.
74. In section 245Q of the Income-tax Act, in sub-section (4), the following
proviso shall be inserted with effect from the 1st day of October, 2024,
namely:—
“Provided that the applicant may, on or before the 31st day of October, 2024,
request the Board for Advance Rulings in writing that the application so transferred
may not be proceeded with, if up to the date of such request, the Board for Advance
Rulings has not passed an order under sub-section (2) of section 245R.”.
75. In section 245R of the Income-tax Act, in sub-section (2), after the third
proviso, the following proviso shall be inserted with effect from the 1st day of
October, 2024, namely:—
“Provided also that on receipt of an application under the proviso to
sub-section (4) of section 245Q, the Board for Advance Rulings may, by an
order, reject the application referred to in sub-section (1) thereof as withdrawn
on or before the 31st day of December, 2024.”.
76. In section 246A of the Income-tax Act, in sub-section (1), after clause (k),
the following clause shall be inserted, with effect from the 1st day of
September, 2024, namely:––
“(ka) an order of assessment made by an Assessing Officer under
clause (c) of sub-section (1) of section 158BC, in respect of search initiated
under section 132, or books of account, other documents or any assets
requisitioned under section 132A, on or after the 1st day of September, 2024;”.
77. In section 251 of the Income-tax Act, in sub-section (1), in clause (a), the
following proviso shall be inserted with effect from the 1st day of October, 2024,
namely:––
“Provided that where such appeal is against an order of assessment made
under section 144, he may set aside the assessment and refer the case back to
the Assessing Officer for making a fresh assessment;”.
78. In section 253 of the Income-tax Act, with effect from the 1st day of
October, 2024,––
(a) in sub-section (1), in clause (a), after the word and figures
“section 154,”, the word, figures and letters “section 158BFA,” shall be
inserted;
(b) in sub-section (3), for the words “sixty days of the date on”, the
words “two months from the end of the month in” shall be substituted.
79. In section 271FAA of the Income-tax Act, for sub-section (1), the
following sub-section shall be substituted with effect from the 1st day of
October, 2024, namely:—
“(1) If a person referred to in sub-section (1) of section 285BA, who is
required to furnish a statement under that section,––
(a) provides inaccurate information in the statement or fails to
furnish correct information within the period specified under
sub-section (6) of the said section; or
(b) fails to comply with the due diligence requirement prescribed
under sub-section (7) of the said section,
then, the prescribed income-tax authority referred to in sub-section (1) thereof
may direct that such person shall pay, by way of penalty, a sum of fifty
thousand rupees.”.
80. After section 271GB of the Income-tax Act, the following section shall be
inserted with effect from the 1st day of April, 2025, namely:––
“271GC. If any person who is required to furnish statement undersection 285,
fails to do so within the period prescribed under that section, the Assessing Officer
may direct that such person shall pay, by way of penalty, a sum of––
(a) one thousand rupees for every day for which the failure
continues, if the period of failure does not exceed three months; or
(b) one lakh rupees in any other case.”.
81. In section 271H of the Income-tax Act, in sub-section (3), for the words
“one year”, the words “one month” shall be substituted with effect from the 1st day
of April, 2025.
82. In section 273B of the Income-tax Act,––
(a) after the word, figures and letters “section 271FA,”, the word, figures
and letters “section 271FAA,” shall be inserted with effect from the 1st day of
October, 2024;
(b) after the word, figures and letters “section 271GB,”, the words,
figures and letters “section 271GC,” shall be inserted with effect from the
1st day of April, 2025.
83. In section 275 of the Income-tax Act, with effect from the 1st day of
October, 2024,––
(a) in sub-section (1), in clause (a), the words “Principal Chief Commissioner
or Chief Commissioner or” at both the places where they occur shall be omitted;
(b) in sub-section (1A), the words “Principal Chief Commissioner or Chief
Commissioner or the” at both the places where they occur shall be omitted.
84. In section 276B of the Income-tax Act, the following proviso shall be
inserted with effect from the 1st day of October, 2024, namely:––
“Provided that the provisions of this section shall not apply if the
payment referred to in clause (a) has been made to the credit of the Central
Government at any time on or before the time prescribed for filing the
statement for such payment under sub-section (3) of section 200.”.
85. In section 276CCC of the Income-tax Act, after the words, brackets and
letter “clause (a) of”, the words, brackets and figure “sub-section (1) of” shall be
inserted with effect from the 1st day of September, 2024.
86. In section 285 of the Income-tax Act, for the words “sixty days from the
end of such financial year, a statement”, the words “such period, a statement” shall
be substituted with effect from the 1st day of April, 2025.
87. In the First Schedule to the Income-tax Act, in rule 2, the following proviso
shall be inserted with effect from the 1st day of April, 2025, namely:––
“Provided that any expenditure which is not admissible under section 37
in computing the profits and gains of a business, shall be included to the profits
and gains of life insurance business.”.
CHAPTER IV
THE DIRECT TAX VIVAD SE VISHWAS SCHEME, 2024
88. (1) This Scheme may be called the Direct Tax Vivad Se Vishwas
Scheme, 2024.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
89. (1) In this Scheme, unless the context otherwise requires,—
(a) “appellant” means—
(i) a person in whose case an appeal or a writ petition or special
leave petition has been filed either by him or by the income-tax authority
or by both, before an appellate forum and such appeal or petition is
pending as on the specified date; or
(ii) a person who has filed his objections before the Dispute
Resolution Panel under section 144C of the Income-tax Act and the
Dispute Resolution Panel has not issued any direction on or before the
specified date; or
(iii) a person in whose case the Dispute Resolution Panel has
issued direction under sub-section (5) of section 144C of the
Income-tax Act and the Assessing Officer has not completed the
assessment under sub-section (13) of that section on or before the
specified date; or
(iv) a person who has filed an application for revision under
section 264 of the Income-tax Act and such application is pending as on
the specified date;
(b) “appellate forum” means the Supreme Court or the High Court or the
Income Tax Appellate Tribunal or the Commissioner (Appeals) or Joint
Commissioner (Appeals), as the case may be;
(c) “declarant” means a person who files declaration under section 91;
(d) “declaration” means the declaration filed under section 91;
(e) “designated authority” means an officer not below the rank of a
Commissioner of Income-tax notified by the Principal Chief Commissioner
for the purposes of this Scheme;
(f) “disputed fee” means the fee determined under the provisions of the
Income-tax Act in respect of which appeal has been filed by the appellant;
(g) “disputed income” in relation to an assessment year, means the whole
or so much of the total income as is relatable to the disputed tax;
(h) “disputed interest” means the interest determined in any case under
the provisions of the Income-tax Act, where—
(i) such interest is not charged or chargeable on disputed tax;
(ii) an appeal has been filed by the appellant in respect of such
interest;
(i) “disputed penalty” means the penalty determined in any case under
the provisions of the Income-tax Act, where—
(i) such penalty is not levied or leviable in respect of disputed
income or disputed tax, as the case may be;
(ii) an appeal has been filed by the appellant in respect of such penalty;
(j) “disputed tax”, in relation to an assessment year or financial year, as
the case may be, means the income-tax including surcharge and cess (hereafter
in this Chapter referred to as the amount of tax) payable by the appellant under
the provisions of the Income-tax Act, as computed hereunder:—
(A) in a case where any appeal, writ petition or special leave
petition is pending before the appellate forum as on the specified date,
the amount of tax that is payable by the appellant if such appeal or writ
petition or special leave petition was to be decided against him;
(B) in a case where objection filed by the appellant is pending
before the Dispute Resolution Panel under section 144C of the
Income-tax Act, as on the specified date, the amount of tax payable by
the appellant if the Dispute Resolution Panel was to confirm the
variation proposed in the draft order;
(C) in a case where Dispute Resolution Panel has issued any direction
under sub-section (5) of section 144C of the Income-tax Act, and the
Assessing Officer has not completed the assessment under sub-section (13)
of that section on or before the specified date, the amount of tax payable by
the appellant as per the assessment order to be passed by the Assessing
Officer in pursuance of the said assessment under sub-section (13) thereof;
(D) in a case where an application for revision under section 264 of the
Income-tax Act, is pending as on the specified date, the amount of tax payable
by the appellant if such application for revision was not to be accepted:
Provided that in a case where the dispute in relation to an assessment year
relates to reduction of tax credit under section 115JAA or section 115JD of the
Income-tax Act, or any loss or depreciation computed thereunder, the appellant
shall have an option either to include the amount of tax related to such tax credit
or loss or depreciation in the amount of disputed tax, or to carry forward the
reduced tax credit or loss or depreciation, in such manner as may be prescribed;
(k) “Income-tax Act” means the Income-tax Act, 1961;
(l) “last date” means such date as may be notified by the Central
Government in the Official Gazette;
(m) “prescribed” means prescribed by rules made under this Act;
(n) “specified date” means the 22nd day of July, 2024;
(o) “tax arrear” means—
(i) the aggregate amount of disputed tax, interest chargeable or
charged on such disputed tax, and penalty leviable or levied on such
disputed tax; or
(ii) disputed interest; or
(iii) disputed penalty; or
(iv) disputed fee.
(2) The words and expressions used herein and not defined but defined in the
Income-tax Act shall have the meanings respectively assigned to them in that Act.
90. Subject to the provisions of this Scheme, where a declarant files under the
provisions of this Scheme on or before the last date, a declaration to the designated
authority in accordance with the provisions of section 91 in respect of tax arrear,
then, notwithstanding anything contained in the Income-tax Act or any other law for
the time being in force, the amount payable by the declarant under this Scheme shall
be as mentioned in the Table below, namely:—
TABLE
+-------+-------------------------------------------------+---------------------------+---------------------------+
| Sl. No. | Nature of tax arrear. | Amount payable | Amount payable |
| | | under this Scheme | under this Scheme on |
| | | on or before the | or after the 1st day of |
| | | 31st day of | January, 2025 but on |
| | | December, 2024. | or before the last |
| | | | date. |
+=======+=================================================+===========================+===========================+
| (1) | (2) | (3) | (4) |
+-------+-------------------------------------------------+---------------------------+---------------------------+
| (a) | Where the tax arrear is the | Amount of the | The aggregate of the |
| | aggregate amount of disputed tax, | disputed tax. | amount of disputed |
| | interest chargeable or charged on | | tax and ten per cent. |
| | such disputed tax and penalty | | Of disputed tax. |
| | leviable or levied on such | | |
| | disputed tax in a case where the | | |
| | declarant is an appellant after the | | |
| | 31st day of January, 2020 but on | | |
| | or before the specified date. | | |
| (b) | Where the tax arrear is the | The aggregate of | The aggregate of the |
| | aggregate amount of disputed tax, | the amount of | amount of disputed |
| | interest chargeable or charged on | disputed tax and | tax and twenty per |
| | such disputed tax and penalty | ten per cent. of | cent. of disputed tax. |
| | leviable or levied on such | disputed tax. | |
| | disputed tax in a case where the | | |
| | declarant is an appellant on or | | |
| | before the 31st day of January, | | |
| | 2020 at the same appellate forum | | |
| | in respect of the such tax arrear. | | |
| (c) | Where the tax arrear relates to | Twenty-five per | Thirty per cent. Of |
| | disputed interest or disputed | cent. of disputed | disputed interest or |
| | penalty or disputed fee where the | interest or disputed | disputed penalty or |
| | declarant is an appellant after the | penalty or disputed | disputed fee. |
| | 31st day of January, 2020 but on | fee. | |
| | or before the specified date. | | |
| (d) | Where the tax arrear relates to | Thirty per cent. | Thirty-five per cent. |
| | disputed interest or disputed | Of disputed interest | Of disputed interest |
| | penalty or disputed fee where the | or disputed penalty | or disputed penalty |
| | declarant is an appellant on or | or disputed fee. | or disputed fee: |
| | before the 31st day of January, | | |
| | 2020 at the same appellate forum | | |
| | in respect of the such tax arrear. | | |
+-------+-------------------------------------------------+---------------------------+---------------------------+
Provided that in a case where an appeal or writ petition or special leave
petition is filed by the income-tax authority on any disputed issue before the
appellate forum, the amount payable shall be one-half of the amount in the Table
above calculated on such issue, in such manner, as may be prescribed:
Provided further that in a case where an appeal is filed before the
Commissioner (Appeals) or Joint Commissioner (Appeals) or objections is filed
before the Dispute Resolution Panel by the appellant on any issue on which
he has already got a decision in his favour from the Income Tax Appellate
Tribunal (where the decision on such issue is not reversed by the High Court or
the Supreme Court) or the High Court (where the decision on such issue is not
reversed by the Supreme Court), the amount payable shall be one-half of the
amount in the Table above calculated on such issue, in such manner, as may be
prescribed:
Provided also that in a case where an appeal is filed by the appellant on any
issue before the Income Tax Appellate Tribunal on which he has already got a
decision in his favour from the High Court (where the decision on such issue is not
reversed by the Supreme Court), the amount payable shall be one-half of the amount
in the Table above calculated on such issue, in such manner as may be prescribed.
91. (1) The declaration referred to in section 90 shall be filed by the declarant
before the designated authority in such form and verified in such manner, as may be
prescribed.
(2) Upon filing the declaration, any appeal pending before the Income Tax
Appellate Tribunal or Commissioner (Appeals) or Joint Commissioner (Appeals),
in respect of the disputed income or disputed interest or disputed penalty or disputed
fee and tax arrear, shall be deemed to have been withdrawn from the date on which
certificate under sub-section (1) of section 92 is issued by the designated authority.
(3) Where the declarant has filed any appeal before the appellate forum or any
writ petition before the High Court or the Supreme Court against any order in respect
of tax arrear, he shall withdraw such appeal or writ petition with the leave of the
Court wherever required after issuance of certificate under sub-section (1) of
section 92 and furnish proof of such withdrawal along with the intimation of
payment to the designated authority under sub-section (2) of that section.
(4) Without prejudice to the provisions of sub-section (2) and sub-section (3),
the declarant shall furnish an undertaking waiving his right, whether direct or
indirect, to seek or pursue any remedy or any claim in relation to the tax arrear which
may otherwise be available to him under any law for the time being in force and the
undertaking shall be made in such form and manner, as may be prescribed.
(5) The declaration under sub-section (1) shall be deemed not to have been
made if,––
(a) any material particular furnished in the declaration is found to be
false at any stage; or
(b) the declarant violates any of the conditions referred to in this Scheme; or
(c) the declarant acts in any manner which is not in accordance with the
undertaking given by him under sub-section (4),
and in such cases, all the proceedings and claims which were withdrawn under this
section and all the consequences under the Income-tax Act against the declarant
shall be deemed to have been revived.
(6) No appellate forum shall proceed to decide any issue relating to the tax
arrear mentioned in the declaration in respect of which an order has been made under
sub-section (1) of section 92 by the designated authority or in respect of payment of
sum determined under that section.
92. (1) The designated authority shall, within a period of fifteen days from the
date of receipt of the declaration, by order, determine the amount payable by the
declarant in accordance with the provisions of this Scheme and grant a certificate to
the declarant containing particulars of the tax arrear and the amount payable after
such determination, in such form as may be prescribed.
(2) The declarant shall pay the amount determined under sub-section (1) within a
period of fifteen days of the date of receipt of the certificate and intimate the details of
such payment to the designated authority in the prescribed form and thereupon the
designated authority shall pass an order stating that the declarant has paid the amount.
(3) Every order passed under sub-section (1), determining the amount payable
under this Scheme, shall be conclusive as to the matters stated therein and no matter
covered by such order shall be reopened in any other proceeding under the
Income-tax Act or under any other law for the time being in force.
(4) Making a declaration under this Scheme shall not amount to conceding the
tax position and it shall not be lawful for the income-tax authority or the declarant
being a party in appeal or writ petition or special leave petition to contend that the
declarant or the income-tax authority, as the case may be, has acquiesced in the
decision on the disputed issue by settling the dispute.
93. Subject to the provisions of section 92, the designated authority shall not
institute any proceeding in respect of an offence; or impose or levy any penalty; or
charge any interest under the Income-tax Act in respect of tax arrear.
94. (1) Any amount paid in pursuance of a declaration made under section 91
shall not be refundable under any circumstances.
(2) Where the declarant had, before filing the declaration under sub-section (1)
of section 91, paid any amount under the Income-tax Act in respect of his tax arrear
which exceeds the amount payable under section 90, he shall be entitled to a refund
of such excess amount, but shall not be entitled to interest on such excess amount
under section 244A of the Income-tax Act.
95. Save as otherwise expressly provided in sub-section (3) of section 92 or
section 93, nothing contained in this Scheme shall be construed as conferring any
benefit, concession or immunity on the declarant in any proceedings other than those
in relation to which the declaration has been made.
96. The provisions of this Scheme shall not apply—
(a) in respect of tax arrear,—
(i) relating to an assessment year in respect of which an assessment has
been made under sub-section (3) of section 143 or section 144 or section 147
or section 153A or section 153C of the Income-tax Act on the basis of search
initiated under section 132 or section 132A of the Income-tax Act;
(ii) relating to an assessment year in respect of which prosecution
has been instituted on or before the date of filing of declaration;
(iii) relating to any undisclosed income from a source located
outside India or undisclosed asset located outside India;
(iv) relating to an assessment or reassessment made on the basis
of information received under an agreement referred to in section 90 or
section 90A of the Income-tax Act, if it relates to any tax arrear;
(b) to any person in respect of whom an order of detention has been made
under the provisions of the Conservation of Foreign Exchange and Prevention of
Smuggling Activities Act, 1974 on or before the date of filing of declaration:
Provided that—
(i) such order of detention, being an order to which the provisions
of section 9 or section 12A of the said Act do not apply, has not been
revoked on the report of the Advisory Board under section 8 of the said
Act or before the receipt of the report of the Advisory Board; or
(ii) such order of detention, being an order to which the provisions
of section 9 of the said Act apply, has not been revoked before the expiry
of the time for, or on the basis of, the review under sub-section (3) of
section 9, or on the report of the Advisory Board under section 8, read
with sub-section (2) of section 9, of the said Act; or
(iii) such order of detention, being an order to which the provisions of
section 12A of the said Act apply, has not been revoked before the expiry
of the time for, or on the basis of, the first review under sub-section (3) of
that section, or on the basis of the report of the Advisory Board under
section 8 read with sub-section (6) of section 12A, of the said Act; or
(iv) such order of detention has not been set aside by a court of
competent jurisdiction;
(c) to any person in respect of whom prosecution for any offence
punishable under the provisions of the Unlawful Activities (Prevention) Act, 1967,
the Narcotic Drugs and Psychotropic Substances Act, 1985, the Prohibition of
Benami Property Transactions Act, 1988, the Prevention of Corruption
Act, 1988, the Prevention of Money-laundering Act, 2002, has been instituted
on or before the filing of the declaration or such person has been convicted of
any such offence punishable under any of those Acts;
(d) to any person in respect of whom prosecution has been initiated by
an income-tax authority for any offence punishable under the provisions of the
Bharatiya Nyaya Sanhita, 2023 or for the purpose of enforcement of any civil
liability under any law for the time being in force, on or before the filing of
the declaration or such person has been convicted of any such offence
consequent to the prosecution initiated by an income-tax authority;
(e) to any person notified under section 3 of the Special Court (Trial of
Offences Relating to Transactions in Securities) Act, 1992 on or before the
date of filing of declaration.
97. (1) The Central Board of Direct Taxes may, from time to time, issue such
directions or orders to the income-tax authorities, as it may deem fit:
Provided that no direction or order shall be issued so as to require any
designated authority to dispose of a particular case in a particular manner.
(2) Without prejudice to the generality of the foregoing power, the said Board
may, if it considers necessary or expedient so to do, for the purpose of this Scheme,
including collection of revenue, issue from time to time, general or special orders in
respect of any class of cases, setting forth directions or instructions as to the
guidelines, principles or procedures to be followed by the authorities in any work
relating to this Act, including collection of revenue and issue such order, by way of
relaxation of any provision of this Chapter or otherwise, if the Board is of the
opinion that it is necessary in the public interest so to do.
98. (1) If any difficulty arises in giving effect to the provisions of this Scheme,
the Central Government may, by order, not inconsistent with the provisions of this
Scheme, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of two
years from the date on which the provisions of this Scheme come into force.
(2) Every order made under sub-section (1) shall, as soon as may be after it is
made, be laid before each House of Parliament.
99. (1) The Central Government may, by notification in the Official Gazette,
make rules for carrying out the provisions of this Scheme.
(2) Without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:—
(a) determination of disputed tax including the manner of set-off in
respect of brought forward or carry forward of tax credit under
section 115JAA or section 115JD of the Income-tax Act or set-off in respect
of brought forward or carry forward of loss or allowance of depreciation under
the provisions of the Income-tax Act;
(b) the manner of calculating one-half of the amount in the Table under
the first, second and third provisos to section 90;
(c) the form in which a declaration may be made, and the manner of its
verification under section 91;
(d) the form and manner in which declarant shall furnish undertaking
under sub-section (4) of section 91;
(e) the form in which certificate shall be granted under sub-section (1)
of section 92;
(f) the form in which payment shall be intimated under sub-section (2)
of section 92;
(g) the manner of calculating the amount payable under this Scheme;
(h) any other matter which is to be, or may be, prescribed, or in respect
of which provision is to be made, by rules.
(3) Every rule made by the Central Government under this Scheme shall be
laid, as soon as may be after it is made, before each House of Parliament, while it is
in session, for a total period of thirty days, which may be comprised in one session
or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses
agree in making any modification in the rule or both Houses agree that the rule
should not be made, the rule shall thereafter have effect only in such modified form
or be of no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done
under that rule.
CHAPTER V
INDIRECT TAXES
Customs
100. In the Customs Act, 1962 (hereinafter referred to as the Customs Act), in
section 28DA,—
(a) in sub-section (2) and clauses (ii), (iii) and (iv) of sub-section (10),
for the word “certificate”, the word “proof” shall be substituted;
(b) in Chapter V-AA, in the Explanation,––
(i) for clause (a), the following clause shall be substituted,
namely:––
‘(a) “proof of origin” means a certificate or declaration
issued in accordance with a trade agreement certifying or
declaring, as the case may be, that the goods fulfil the country of
origin criteria and other requirements specified in the said
agreement;’;
(ii) for clause (c), the following clause shall be substituted,
namely:––
‘(c) “Issuing Authority” means an authority or person
designated for the purposes of issuing proof of origin under a trade
agreement;’.
101. In section 65 of the Customs Act, in sub-section (1), the following proviso
shall be inserted, namely:––
“Provided that the Central Government may, if satisfied that it is
necessary in the public interest so to do, by notification in the Official Gazette,
specify the manufacturing processes and other operations in relation to a class
of goods that shall not be permitted in a warehouse.”.
102. In the Customs Act, in section 143AA, after the words “importers or
exporters”, the words “or any other persons,” shall be inserted.
103. In the Customs Act, in section 157, in sub-section (2), in clause (m), after
the words “importers or exporters”, the words “or any other persons,” shall be
inserted.
104. The notification of the Government of India in the Ministry of Finance
(Department of Revenue) number G.S.R. 394(E), dated the 12th July, 2024 issued
by the Central Government, in exercise of the powers conferred by sub-section (1)
of section 25 of the Customs Act, 1962 read with 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.
105. (1) Subject to the provisions of sub-section (2), the notification of the
Government of India in the Ministry of Finance (Department of Revenue) number
G.S.R. 356(E), dated the 10th May, 2023, issued by the Central Government, on being
satisfied that it is necessary in the public interest so to do, under sub-section (1) of
section 25 of the Customs Act read with section 124 of the Finance Act, 2021
(hereinafter referred to as the Finance Act), shall be deemed to have, and always to
have, for all purposes, come into force with effect from the 1st day of April, 2023,
and remain in force during the period from the 1st day of April, 2023 and ending
with the 30th day of June, 2023 (both days inclusive).
(2) The notification of the Government of India in the Ministry of Finance
(Department of Revenue) number G.S.R. 356(E), dated the 10th May, 2023, issued
by the Central Government, on being satisfied that it is necessary in the public
interest so to do, under sub-section (1) of section 25 of the Customs Act read with
section 124 of the Finance Act shall stand amended in the manner specified in
column (2) of the Second Schedule and shall be deemed to have been amended
retrospectively on and from and up to the corresponding date specified in column
(3) of that Schedule against the notification number to be amended as specified in
column (1) of that Schedule.
(3) For the purposes of sub-section (2), the Central Government shall have and
shall be deemed to have the power to amend the notification referred to in the said
sub-section with retrospective effect as if the Central Government had the power to
amend the said notification under sub-section (1) of section 25 of the Customs Act
read with section 124 of the Finance Act at all material times.
(4) Refund shall be made of the whole of duty and cess, which has been
collected, but which would not have been so collected, had the notification referred
to in sub-section (1) been in force in the manner and to the extent specified in
sub-sections (1) and (2), in accordance with the provisions of sub-section (2) of
section 27 of the Customs Act:
Provided that the person claiming the refund of such duty and cess makes an
application in this behalf to the jurisdictional Assistant Commissioner of Customs
or Deputy Commissioner of Customs, as the case may be, on or before the 31st day
of March, 2025.
Customs Tariff
106. In section 3 of the Customs Tariff Act, 1975 (hereinafter referred to as
the Customs Tariff Act, for sub-section (12), the following sub-section shall be
substituted, namely:—
“(12) The provisions of the Customs Act, 1962 and all rules and
regulations made thereunder, including but not limited to those relating to the
date for determination of rate of duty, assessment, non-levy, short-levy,
refunds, exemptions, interest, recovery, appeals, offences and penalties shall,
as far as may be, apply to the duty or tax or cess, as the case may be, chargeable
under this section as they apply in relation to duties leviable under that Act
or all rules or regulations made thereunder, as the case may be.”.
107. In the Customs Tariff Act, section 6 shall be omitted.
108. In section 8B of the Customs Tariff Act, for sub-section (9), the
following sub-section shall be substituted, namely:—
“(9) The provisions of the Customs Act, 1962 and all rules and
regulations made thereunder, including but not limited to those relating to
the date for determination of rate of duty, assessment, non-levy, short-levy,
refunds, exemptions, interest, recovery, appeals, offences and penalties
shall, as far as may be, apply to the duty chargeable under this section as
they apply in relation to duties leviable under that Act or all rules or
regulations made thereunder, as the case may be.”.
109. In section 9 of the Customs Tariff Act, for sub-section (7A), the
following sub-section shall be substituted, namely:—
“(7A) The provisions of the Customs Act, 1962 and all rules and
regulations made thereunder, including but not limited to those relating to
the date for determination of rate of duty, assessment, non-levy, short-levy,
refunds, exemptions, interest, recovery, appeals, offences and penalties
shall, as far as may be, apply to the duty chargeable under this section as
they apply in relation to duties leviable under that Act or all rules or
regulations made thereunder, as the case maybe.”.
110. In section 9A of the Customs Tariff Act, for sub-section (8), the
following sub-section shall be substituted, namely:—
“(8) The provisions of the Customs Act, 1962 and all rules and
regulations made thereunder, including but not limited to those relating to
the date for determination of rate of duty, assessment, non-levy, short-levy,
refunds, exemptions, interest, recovery, appeals, offences and penalties
shall, as far as may be, apply to the duty chargeable under this section as
they apply in relation to duties leviable under that Act or all rules or
regulations made thereunder, as the case may be.”.
111. In the Customs Tariff Act, the First Schedule shall,––
(a) be amended in the manner specified in the Third Schedule;
(b) be also amended in the manner specified in the Fourth Schedule,
with effect from the 1st day of October, 2024.
Excise
112. (1) Notwithstanding the supersession of the notification of the
Government of India in the Ministry of Finance (Department of Revenue) number
G.S.R 163 (E), dated the 17th March, 2012, issued under sub-section (1) of
section 5A of the Central Excise Act, 1944, the said notification shall stand
amended and shall be deemed to have been amended retrospectively, in the
manner specified in column (2) of the Fifth Schedule, on and from the
corresponding date specified in column (3) of that Schedule, against the said
notification specified in column (1) of that Schedule.
(2) For the purposes of sub-section (1), the Central Government shall have
and shall be deemed to have the power to amend the said notification with
retrospective effect as if the Central Government had the power to amend the said
notification under sub-section (1) of section 5A of the Central Excise Act, 1944,
retrospectively, at all material times.
Explanation.—For the removal of doubts, it is hereby declared that no
act or omission on the part of any person shall be punishable as an offence
which would not have been so punishable had this section not come into force.
113. (1) The notification of the Government of India in the Ministry of
Finance (Department of Revenue) number G.S.R.794(E), dated the 30th June,
2017 issued under sub-section (1) of section 5A of the Central Excise
Act, 1944 shall stand amended in the manner specified in column (3) of the
Sixth Schedule and shall be deemed to have been amended retrospectively on and
from the corresponding date specified in column (4) of that Schedule against
the notification number to be amended as specified in column (2) of that
Schedule.
(2) Notwithstanding anything contained in any judgment, decree or order of
any court, tribunal or other authority, any action taken or anything done or
purported to have been taken or done, at any time during the period
commencing on and from the 1st day of July, 2017, relating to the provisions as
amended by sub-section (1), shall be deemed to be, and deemed always to have
been, for all purposes, as validly and effectively taken or done as if the
amendment made by sub-section (1) had been in force at all material times.
(3) Notwithstanding the repeal of the Chapter VII of the Finance Act, 2010
as amended by the Finance Act, 2016, for the purposes of sub-section (1), the
Central Government shall have and shall be deemed to have the power to
amend the notification referred to in sub-section (1) with retrospective effect as if
the Central Government had the power to amend the said notification under
section 5A of the Central Excise Act, 1944, retrospectively, at all material
times.
Explanation.—For the removal of doubts, it is hereby declared that no act
or omission on the part of any person shall be punishable as an offence which
would not have been so punishable had this section not come into force.
Central Goods and Services Tax
114. In the Central Goods and Services Tax Act, 2017 (hereinafter
referred to as the Central Goods and Services Tax Act), in section 9, in
sub-section (1), after the words “alcoholic liquor for human consumption”, the
words “and un-denatured extra neutral alcohol or rectified spirit used for
manufacture of alcoholic liquor, for human consumption” shall be inserted.
115. In section 10 of the Central Goods and Services Tax Act, in
sub-section (5), after the words and figures “section 73 or section 74”, the
words, figures and letter “or section 74A” shall be inserted.
116. After section 11 of the Central Goods and Services Tax Act, the
following section shall be inserted, namely:––
“11A. Notwithstanding anything contained in this Act, if the
Government is satisfied that—
(a) a practice was, or is, generally prevalent regarding levy of
central tax (including non-levy thereof) on any supply of goods or
services or both; and
(b) such supplies were, or are, liable to,—
(i) central tax, in cases where according to the said
practice, central tax was not, or is not being, levied, or
(ii) a higher amount of central tax than what was, or is
being, levied, in accordance with the said practice,
the Government may, on the recommendation of the Council, by
notification in the Official Gazette, direct that the whole of the central tax
payable on such supplies, or, as the case may be, the central tax in excess
of that payable on such supplies, but for the said practice, shall not be
required to be paid in respect of the supplies on which the central tax was
not, or is not being levied, or was, or is being, short-levied, in accordance
with the said practice.”.
117. In section 13 of the Central Goods and Services Tax Act, in
sub-section (3),––
(i) in clause (b), for the words “by the supplier:”, the words “by the
supplier, in cases where invoice is required to be issued by the supplier;
or” shall be substituted;
(ii) after clause (b), the following clause shall be inserted, namely:—
“(c) the date of issue of invoice by the recipient, in cases where
invoice is to be issued by the recipient:”;
(iii) in the first proviso, after the words, brackets and letter “or
clause (b)”, the words, brackets and letter “or clause (c)” shall be inserted.
118. In section 16 of the Central Goods and Services Tax Act, with effect
from the 1st day of July, 2017, after sub-section (4), the following sub-sections
shall be inserted, namely:––
“(5) Notwithstanding anything contained in sub-section (4), in
respect of an invoice or debit note for supply of goods or services or both
pertaining to the Financial Years 2017-18, 2018-19, 2019-20 and 2020-21,
the registered person shall be entitled to take input tax credit in any return
under section 39 which is filed up to the thirtieth day of November, 2021.
(6) Where registration of a registered person is cancelled under
section 29 and subsequently the cancellation of registration is revoked by
any order, either under section 30 or pursuant to any order made by the
Appellate Authority or the Appellate Tribunal or court and where
availment of input tax credit in respect of an invoice or debit note was not
restricted under sub-section (4) on the date of order of cancellation of
registration, the said person shall be entitled to take the input tax credit in
respect of such invoice or debit note for supply of goods or services or
both, in a return under section 39,––
(i) filed up to thirtieth day of November following the financial
year to which such invoice or debit note pertains or furnishing of the
relevant annual return, whichever is earlier; or
(ii) for the period from the date of cancellation of registration
or the effective date of cancellation of registration, as the case may
be, till the date of order of revocation of cancellation of registration,
where such return is filed within thirty days from the date of order of
revocation of cancellation of registration,
whichever is later.”.
119. In section 17 of the Central Goods and Services Tax Act, in sub-section (5),
in clause (i), for the words and figures “sections 74, 129 and 130”, the words and
figures “section 74 in respect of any period up to Financial Year 2023-24” shall be
substituted.
120. In section 21 of the Central Goods and Services Tax Act, after the words
and figures “section 73 or section 74”, the words, figures and letter “or section 74A”
shall be inserted.
121. In section 30 of the Central Goods and Services Tax Act, in sub-section (2),
after the proviso, the following proviso shall be inserted, namely:––
“Provided further that such revocation of cancellation of registration
shall be subject to such conditions and restrictions, as may be prescribed.”.
122. In section 31 of the Central Goods and Services Tax Act,––
(a) in sub-section (3), in clause (f), after the words and figure “of
section 9 shall”, the words “, within the period as may be prescribed,” shall be
inserted;
(b) after clause (g), the following Explanation shall be inserted,
namely:––
‘Explanation.––For the purposes of clause (f), the expression
“supplier who is not registered” shall include the supplier who is
registered solely for the purpose of deduction of tax under section 51.’.
123. In section 35 of the Central Goods and Services Tax Act, in
sub-section (6), after the words and figures “section 73 or section 74”, the words,
figures and letter “or section 74A” shall be inserted.
124. In section 39 of the Central Goods and Services Tax Act, for
sub-section (3), the following sub-section shall be substituted, namely:––
“(3) Every registered person required to deduct tax at source under
section 51 shall electronically furnish a return for every calendar month of the
deductions made during the month in such form and manner and within such
time as may be prescribed:
Provided that the said registered person shall furnish a return for every
calendar month whether or not any deductions have been made during the said
month.”.
125. In section 49 of the Central Goods and Services Tax Act, in
sub-section (8), in clause (c), after the words and figures “section 73 or section 74”,
the words, figures and letter “or section 74A” shall be inserted.
126. In section 50 of the Central Goods and Services Tax Act, in
sub-section (1), in the proviso, after the words and figures “section 73 or
section 74”, the words, figures and letter “or section 74A” shall be inserted.
127. In section 51 of the Central Goods and Services Tax Act, in
sub-section (7), after the words and figures “section 73 or section 74”, the words,
figures and letter “or section 74A” shall be inserted.
128. In section 54 of the Central Goods and Services Tax Act,––
(a) in sub-section (3), the second proviso shall be omitted;
(b) after sub-section (14) and before the Explanation, the following
sub-section shall be inserted, namely:––
“(15) Notwithstanding anything contained in this section, no
refund of unutilised input tax credit on account of zero rated supply of
goods or of integrated tax paid on account of zero rated supply of goods
shall be allowed where such zero rated supply of goods is subjected to
export duty.”.
129. In section 61 of the Central Goods and Services Tax Act, in
sub-section (3), after the words and figures “section 73 or section 74”, the words,
figures and letter “or section 74A” shall be inserted.
130. In section 62 of the Central Goods and Services Tax Act, in
sub-section (1), after the words and figures “section 73 or section 74”, the words,
figures and letter “or section 74A” shall be inserted.
131. In section 63 of the Central Goods and Services Tax Act, after the words
and figures “section 73 or section 74”, the words, figures and letter “or section 74A”
shall be inserted.
132. In section 64 of the Central Goods and Services Tax Act, in
sub-section (2), after the words and figures “section 73 or section 74”, the words,
figures and letter “or section 74A” shall be inserted.
133. In section 65 of the Central Goods and Services Tax Act, in
sub-section (7), after the words and figures “section 73 or section 74”, the words,
figures and letter “or section 74A” shall be inserted.
134. In section 66 of the Central Goods and Services Tax Act, in
sub-section (6), after the words and figures “section 73 or section 74”, the words,
figures and letter “or section 74A” shall be inserted.
135. In section 70 of the Central Goods and Services Tax Act, after
sub-section (1), the following sub-section shall be inserted, namely:––
“(1A) All persons summoned under sub-section (1) shall be bound to attend,
either in person or by an authorised representative, as such officer may direct, and
the person so appearing shall state the truth during examination or make
statements or produce such documents and other things as may be required.”.
136. In section 73 of the Central Goods and Services Tax Act,––
(i) in the marginal heading, after the words “Determination of tax”, the
words and figures “, pertaining to the period up to Financial Year 2023-24,”
shall be inserted;
(ii) after sub-section (11), the following sub-section shall be inserted,
namely:––
“(12) The provisions of this section shall be applicable for
determination of tax pertaining to the period up to Financial Year
2023-24.”.
137. In section 74 of the Central Goods and Services Tax Act,—
(i) in the marginal heading, after the words “Determination of tax”, the
words and figures “, pertaining to the period up to Financial Year 2023-24,”
shall be inserted;
(ii) after sub-section (11) and before Explanation 1, the following sub-section
shall be inserted, namely:––
“(12) The provisions of this section shall be applicable for
determination of tax pertaining to the period up to Financial Year 2023-24.”;
(iii) the Explanation 2 shall be omitted.
138. After section 74 of the Central Goods and Services Tax Act, the following
section shall be inserted, namely:––
“74A. (1) Where it appears to the proper officer that any tax has not been
paid or short paid or erroneously refunded, or where input tax credit has been
wrongly availed or utilised, he shall serve notice on the person chargeable with
tax which has not been so paid or which has been so short paid or to whom the
refund has erroneously been made, or who has wrongly availed or utilised input
tax credit, requiring him to show cause as to why he should not pay the amount
specified in the notice along with interest payable thereon under section 50 and a
penalty leviable under the provisions of this Act or the rules made thereunder:
Provided that no notice shall be issued, if the tax which has not been paid
or short paid or erroneously refunded or where input tax credit has been
wrongly availed or utilised in a financial year is less than one thousand rupees.
(2) The proper officer shall issue the notice under sub-section (1) within
forty-two months from the due date for furnishing of annual return for the
financial year to which the tax not paid or short paid or input tax credit wrongly
availed or utilised relates to or within forty-two months from the date of
erroneous refund.
(3) Where a notice has been issued for any period under sub-section (1),
the proper officer may serve a statement, containing the details of tax not paid
or short paid or erroneously refunded or input tax credit wrongly availed or
utilised for such periods other than those covered under sub-section (1), on the
person chargeable with tax.
(4) The service of such statement shall be deemed to be service of notice on
such person under sub-section (1), subject to the condition that the grounds relied
upon for such tax periods other than those covered under sub-section (1) are the
same as are mentioned in the earlier notice.
(5) The penalty in case where any tax which has not been paid or short
paid or erroneously refunded, or where input tax credit has been wrongly
availed or utilised,––
(i) for any reason, other than the reason of fraud or any
wilful-misstatement or suppression of facts to evade tax, shall be
equivalent to ten per cent. of tax due from such person or ten thousand
rupees, whichever is higher;
(ii) for the reason of fraud or any wilful-misstatement or
suppression of facts to evade tax shall be equivalent to the tax due from
such person.
(6) The proper officer shall, after considering the representation, if any,
made by the person chargeable with tax, determine the amount of tax, interest
and penalty due from such person and issue an order.
(7) The proper officer shall issue the order under sub-section (6)
within twelve months from the date of issuance of notice specified in
sub-section (2):
Provided that where the proper officer is not able to issue the order
within the specified period, the Commissioner, or an officer authorised by the
Commissioner senior in rank to the proper officer but not below the rank of
Joint Commissioner of Central Tax, may, having regard to the reasons for
delay in issuance of the order under sub-section (6), to be recorded in writing,
before the expiry of the specified period, extend the said period further by a
maximum of six months.
(8) The person chargeable with tax where any tax has not been paid or
short paid or erroneously refunded, or where input tax credit has been wrongly
availed or utilised for any reason, other than the reason of fraud or any
wilful-misstatement or suppression of facts to evade tax, may,––
(i) before service of notice under sub-section (1), pay the amount
of tax along with interest payable under section 50 of such tax on the
basis of his own ascertainment of such tax or the tax as ascertained by
the proper officer and inform the proper officer in writing of such
payment, and the proper officer, on receipt of such information shall not
serve any notice under sub-section (1) or the statement under
sub-section (3), as the case may be, in respect of the tax so paid or any
penalty payable under the provisions of this Act or the rules made
thereunder;
(ii) pay the said tax along with interest payable under section 50
within sixty days of issue of show cause notice, and on doing so, no
penalty shall be payable and all proceedings in respect of the said notice
shall be deemed to be concluded.
(9) The person chargeable with tax, where any tax has not been paid or
short paid or erroneously refunded or where input tax credit has been wrongly
availed or utilised by reason of fraud, or any wilful-misstatement or
suppression of facts to evade tax, may,––
(i) before service of notice under sub-section (1), pay the amount
of tax along with interest payable under section 50 and a penalty
equivalent to fifteen per cent. of such tax on the basis of his own
ascertainment of such tax or the tax as ascertained by the proper officer
and inform the proper officer in writing of such payment, and the proper
officer, on receipt of such information, shall not serve any notice under
sub-section (1), in respect of the tax so paid or any penalty payable under
the provisions of this Act or the rules made thereunder;
(ii) pay the said tax along with interest payable under section 50
and a penalty equivalent to twenty-five per cent. of such tax within sixty
days of issue of the notice, and on doing so, all proceedings in respect of
the said notice shall be deemed to be concluded;
(iii) pay the tax along with interest payable thereon under section 50
and a penalty equivalent to fifty per cent. of such tax within sixty days of
communication of the order, and on doing so, all proceedings in respect
of the said notice shall be deemed to be concluded.
(10) Where the proper officer is of the opinion that the amount paid
under clause (i) of sub-section (8) or clause (i) of sub-section (9) falls short of
the amount actually payable, he shall proceed to issue the notice as provided
for in sub-section (1) in respect of such amount which falls short of the amount
actually payable.
(11) Notwithstanding anything contained in clause (i) or clause (ii) of
sub-section (8), penalty under clause (i) of sub-section (5) shall be payable
where any amount of self-assessed tax or any amount collected as tax has not
been paid within a period of thirty days from the due date of payment of such
tax.
(12) The provisions of this section shall be applicable for determination
of tax pertaining to the Financial Year 2024-25 onwards.
Explanation 1.––For the purposes of this section,––
(i) the expression “all proceedings in respect of the said notice”
shall not include proceedings under section 132;
(ii) where the notice under the same proceedings is issued to the
main person liable to pay tax and some other persons, and such
proceedings against the main person have been concluded under this
section, the proceedings against all the persons liable to pay penalty
under sections 122 and 125 are deemed to be concluded.
Explanation 2.––For the purposes of this Act, the expression “suppression”
shall mean non-declaration of facts or information which a taxable person is
required to declare in the return, statement, report or any other document furnished
under this Act or the rules made thereunder, or failure to furnish any information
on being asked for, in writing, by the proper officer.
139. In section 75 of the Central Goods and Services Tax Act,––
(a) in sub-section (1), after the word and figures “section 74”, the words,
brackets, figures and letter “or sub-sections (2) and (7) of section 74A” shall
be inserted;
(b) after sub-section (2), the following sub-section shall be inserted,
namely:––
“(2A) Where any Appellate Authority or Appellate Tribunal or
court concludes that the penalty under clause (ii) of sub-section (5) of
section 74A is not sustainable for the reason that the charges of fraud or
any wilful-misstatement or suppression of facts to evade tax has not been
established against the person to whom the notice was issued, the penalty
shall be payable by such person, under clause (i) of sub-section (5) of
section 74A.”;
(c) for sub-section (10), the following sub-section shall be substituted,
namely:––
“(10) The adjudication proceedings shall be deemed to be concluded,
if the order is not issued within the period specified in sub-section (10) of
section 73 or in sub-section (10) of section 74 or in sub-section (7) of
section 74A.”;
(d) in sub-section (11), after the word and figures “section 74”, the
words, brackets, figures and letter “or sub-section (7) of section 74A” shall be
inserted;
(e) in sub-section (12), after the words and figures “section 73 or
section 74”, the words, figures and letter “or section 74A” shall be inserted;
(f) in sub-section (13), after the words and figures “section 73 or
section 74”, the words, figures and letter “or section 74A” shall be inserted.
140. In section 104 of the Central Goods and Services Tax Act, in sub-section (1),
in the Explanation, after the word and figures “section 74”, the words, brackets,
figures and letter “or sub-sections (2) and (7) of section 74A” shall be inserted.
141. In section 107 of the Central Goods and Services Tax Act,––
(a) in sub-section (6), in clause (b), for the word “twenty-five”, the word
“twenty” shall be substituted;
(b) in sub-section (11), in the second proviso, after the words and figures
“section 73 or section 74”, the words, figures and letter “or section 74A” shall be
inserted.
142. In section 109 of the Central Goods and Services Tax Act,––
(a) in sub-section (1), after the words “Revisional Authority”, the words
“, or for conducting an examination or adjudicating the cases referred to in
sub-section (2) of section 171, if so notified under the said section” shall be
inserted;
(b) in sub-section (5), after the proviso, the following provisos shall be
inserted, namely:––
“Provided further that the matters referred to in sub-section (2) of
section 171 shall be examined or adjudicated only by the Principal
Bench:
Provided also that the Government may, on the recommendations
of the Council, notify other cases or class of cases which shall be heard
only by the Principal Bench.”;
(c) in sub-section (6), for the words “The President”, the words, brackets
and figure “Subject to the provisions of sub-section (5), the President” shall
be substituted.
143. In section 112 of the Central Goods and Services Tax Act,––
(a) with effect from the 1st day of August, 2024, in sub-section (1), after
the words “from the date on which the order sought to be appealed against is
communicated to the person preferring the appeal”, the words “; or the date,
as may be notified by the Government, on the recommendations of the
Council, for filing appeal before the Appellate Tribunal under this Act,
whichever is later.” shall be inserted;
(b) with effect from the 1st day of August, 2024, in sub-section (3), after
the words “from the date on which the said order has been passed”, the words
“; or the date, as may be notified by the Government, on the recommendations
of the Council, for the purpose of filing application before the Appellate
Tribunal under this Act, whichever is later,” shall be inserted;
(c) in sub-section (6), after the words, brackets and figure “after the
expiry of the period referred to in sub-section (1)”, the words, brackets and
figure “or permit the filing of an application within three months after the
expiry of the period referred to in sub-section (3)” shall be inserted;
(d) in sub-section (8), in clause (b),––
(i) for the words “twenty per cent.”, the words “ten per cent.” shall
be substituted;
(ii) for the words “fifty crore rupees”, the words “twenty crore
rupees” shall be substituted.
144. In section 122 of the Central Goods and Services Tax Act, with effect
from the 1st day of October, 2023, in sub-section (1B), for the words “Any electronic
commerce operator who”, the words and figures “Any electronic commerce
operator, who is liable to collect tax at source under section 52,” shall be substituted.
145. In section 127 of the Central Goods and Services Tax Act, after the words
and figures “section 73 or section 74”, the words, figures and letter “or section 74A”
shall be inserted.
146. After section 128 of the Central Goods and Services Tax Act, the
following section shall be inserted, namely:––
“128A. (1) Notwithstanding anything to the contrary contained in this
Act, where any amount of tax is payable by a person chargeable with tax in
accordance with,––
(a) a notice issued under sub-section (1) of section 73 or a
statement issued under sub-section (3) of section 73, and where no order
under sub-section (9) of section 73 has been issued; or
(b) an order passed under sub-section (9) of section 73, and where
no order under sub-section (11) of section 107 or sub-section (1) of
section 108 has been passed; or
(c) an order passed under sub-section (11) of section 107 or
sub-section (1) of section 108, and where no order under sub-section (1)
of section 113 has been passed,
pertaining to the period from 1st July, 2017 to 31st March, 2020, or
a part thereof, and the said person pays the full amount of tax
payable as per the notice or statement or the order referred to in
clause (a), clause (b) or clause (c), as the case may be, on or before
the date, as may be notified by the Government on the
recommendations of the Council, no interest under section 50 and
penalty under this Act, shall be payable and all the proceedings in
respect of the said notice or order or statement, as the case may be,
shall be deemed to be concluded, subject to such conditions as may
be prescribed:
Provided that where a notice has been issued under sub-section (1)
of section 74, and an order is passed or required to be passed by the
proper officer in pursuance of the direction of the Appellate
Authority or Appellate Tribunal or a court in accordance with the
provisions of sub-section (2) of section 75, the said notice or order
shall be considered to be a notice or order, as the case may be,
referred to in clause (a) or clause (b) of this sub-section:
Provided further that the conclusion of the proceedings under
this sub-section, in cases where an application is filed under
sub-section (3) of section 107 or under sub-section (3) of section 112
or an appeal is filed by an officer of central tax under
sub-section (1) of section 117 or under sub-section (1) of
section 118 or where any proceedings are initiated under
sub-section (1) of section 108, against an order referred to in clause (b)
or clause (c) or against the directions of the Appellate Authority or
the Appellate Tribunal or the court referred to in the first proviso,
shall be subject to the condition that the said person pays the
additional amount of tax payable, if any, in accordance with the
order of the Appellate Authority or the Appellate Tribunal or the
court or the Revisional Authority, as the case may be, within three
months from the date of the said order:
Provided also that where such interest and penalty has already
been paid, no refund of the same shall be available.
(2) Nothing contained in sub-section (1) shall be applicable in
respect of any amount payable by the person on account of
erroneous refund.
(3) Nothing contained in sub-section (1) shall be applicable in
respect of cases where an appeal or writ petition filed by the said
person is pending before Appellate Authority or Appellate Tribunal
or a court, as the case may be, and has not been withdrawn by the
said person on or before the date notified under sub-section (1).
(4) Notwithstanding anything contained in this Act, where any
amount specified under sub-section (1) has been paid and the
proceedings are deemed to be concluded under the said sub-section,
no appeal under sub-section (1) of section 107 or sub-section (1) of
section 112 shall lie against an order referred to in clause (b) or
clause (c) of sub-section (1), as the case may be.”.
147. In section 140 of the Central Goods and Services Tax Act, with
effect from the 1st day of July, 2017, in sub-section (7), for the words “even
if the invoices relating to such services are received on or after the appointed
day”, the words “whether the invoices relating to such services are received
prior to, on or after, the appointed day” shall be substituted.
148. In section 171 of the Central Goods and Services Tax Act,––
(a) in sub-section (2), the following proviso and Explanation shall be
inserted, namely:––
‘Provided that the Government may by notification, on the
recommendations of the Council, specify the date from which the said
Authority shall not accept any request for examination as to whether
input tax credits availed by any registered person or the reduction in the
tax rate have actually resulted in a commensurate reduction in the price
of the goods or services or both supplied by him.
Explanation.––For the purposes of this sub-section, “request for
examination” shall mean the written application filed by an applicant
requesting for examination as to whether input tax credits availed by any
registered person or the reduction in the tax rate have actually resulted in a
commensurate reduction in the price of the goods or services or both supplied
by him.’;
(b) the Explanation shall be renumbered as Explanation 1 thereof, and
after Explanation 1 as so renumbered, the Explanation shall be inserted,
namely:––
‘Explanation 2.––For the purposes of this section, the expression
“Authority” shall include the “Appellate Tribunal”.’.
149. In Schedule III to the Central Goods and Services Tax Act, after
paragraph 8 and before Explanation 1, the following paragraphs shall be inserted,
namely:––
“9. Activity of apportionment of co-insurance premium by the lead
insurer to the co-insurer for the insurance services jointly supplied by the lead
insurer and the co-insurer to the insured in co-insurance agreements, subject
to the condition that the lead insurer pays the central tax, the State tax, the
Union territory tax and the integrated tax on the entire amount of premium
paid by the insured.
10. Services by insurer to the reinsurer for which ceding commission or
the reinsurance commission is deducted from reinsurance premium paid by
the insurer to the reinsurer, subject to the condition that the central tax, the
State tax, the Union territory tax and the integrated tax is paid by the reinsurer
on the gross reinsurance premium payable by the insurer to the reinsurer,
inclusive of the said ceding commission or the reinsurance commission.”.
150. No refund shall be made of all the tax paid or the input tax credit reversed,
which would not have been so paid, or not reversed, had section 118 been in force
at all material times.
Integrated Goods and Services Tax
151. In the Integrated Goods and Services Tax Act, 2017 (hereinafter referred
to as the Integrated Goods and Services Tax Act), in section 5, in sub-section (1),
after the words “alcoholic liquor for human consumption”, the words “and
un-denatured extra neutral alcohol or rectified spirit used for manufacture of
alcoholic liquor, for human consumption” shall be inserted.
152. After section 6 of the Integrated Goods and Services Tax Act, the
following section shall be inserted, namely:––
“6A. Notwithstanding anything contained in this Act, if the Government
is satisfied that––
(a) a practice was, or is, generally prevalent regarding levy of
integrated tax (including non-levy thereof) on any supply of goods or
services or both; and
(b) such supplies were, or are, liable to––
(i) integrated tax, in cases where according to the said
practice, integrated tax was not, or is not being, levied; or
(ii) a higher amount of integrated tax than what was, or is
being, levied, in accordance with the said practice,
the Government may, on the recommendation of the Council, by
notification in the Official Gazette, direct that the whole of the integrated
tax payable on such supplies, or, as the case may be, the integrated tax
in excess of that payable on such supplies, but for the said practice, shall
not be required to be paid in respect of the supplies on which the
integrated tax was not, or is not being, levied, or was, or is being,
short-levied, in accordance with the said practice.”.
153. In section 16 of the Integrated Goods and Services Tax Act,––
(a) in sub-section (4),––
(i) in clause (i), after the words “claim refund of the tax so paid”,
the words and figures “in accordance with the provisions of section 54
of the Central Goods and Services Tax Act or the rules made thereunder”
shall be inserted;
(ii) in clause (ii), for the words “which may be exported on
payment of integrated tax and the supplier of such goods or services may
claim the refund of tax so paid”, the words and figure “or both, on zero
rated supply of which, the supplier may pay integrated tax and claim the
refund of tax so paid, in accordance with the provisions of section 54 of
the Central Goods and Services Tax Act or the rules made thereunder”
shall be substituted;
(b) after sub-section (4), the following sub-section shall be inserted,
namely:––
“(5) Notwithstanding anything contained in sub-sections (3) and (4),
no refund of unutilised input tax credit on account of zero rated supply
of goods or of integrated tax paid on account of zero rated supply of
goods shall be allowed where such zero rated supply of goods are
subjected to export duty.”.
154. In section 20 of the Integrated Goods and Services Tax Act, for the fifth
proviso, the following proviso shall be substituted, namely:––
“Provided also that a maximum amount of forty crore rupees shall be
payable for each appeal to be filed before the Appellate Authority or the
Appellate Tribunal.”.
Union Territory Goods and Services Tax
155. In the Union Territory Goods and Services Tax Act, 2017 (hereinafter
referred as the Union Territory Goods and Services Tax Act), in section 7, in
sub-section (1), after the words “alcoholic liquor for human consumption”, the
words “and un-denatured extra neutral alcohol or rectified spirit which is used for
manufacture of alcoholic liquor, for human consumption” shall be inserted.
156. After section 8 of the Union Territory Goods and Services Tax Act, the
following section shall be inserted, namely:––
“8A. Notwithstanding anything contained in this Act, if the Government
is satisfied that––
(a) a practice was, or is, generally prevalent regarding levy of
Union territory tax (including non-levy thereof) on any supply of goods
or services or both; and
(b) such supplies were, or are, liable to––
(i) Union territory tax, in cases where according to the said
practice, Union territory tax was not, or is not being, levied; or
(ii) a higher amount of Union territory tax than what was, or
is being, levied, in accordance with the said practice,
the Government may, on the recommendation of the Council, by
notification in the Official Gazette, direct that the whole of the Union
territory tax payable on such supplies, or, as the case may be, the Union
territory tax in excess of that payable on such supplies, but for the said
practice, shall not be required to be paid in respect of the supplies on
which the Union territory tax was not, or is not being, levied, or was, or
is being, short-levied, in accordance with the said practice.”.
Goods and Services Tax
(Compensation to States)
157. In the Goods and Services Tax (Compensation to States) Act, 2017, after
section 8, the following section shall be inserted, namely:––
“8A. Notwithstanding anything contained in this Act, if the Government
is satisfied that––
(a) a practice was, or is, generally prevalent regarding levy of cess
(including non-levy thereof) on any supply of goods or services or
both; and
(b) such supplies were, or are, liable to,—
(i) cess, in cases where according to the said practice, cess
was not, or is not being, levied; or
(ii) a higher amount of cess than what was, or is being, levied,
in accordance with the said practice,
the Government may, on the recommendation of the Council, by
notification in the Official Gazette, direct that the whole of the cess
payable on such supplies, or, as the case may be, the cess in excess of
that payable on such supplies, but for the said practice, shall not be
required to be paid in respect of the supplies on which the cess was not,
or is not being, levied, or was, or is being, short-levied, in accordance
with the said practice.”.
CHAPTER VI
MISCELLANEOUS
PART I
AMENDMENTS TO THE PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT,1988
158. In the Prohibition of Benami Property Transactions Act, 1988, with effect
from the 1st day of October, 2024,––
(a) in section 24,––
(i) after sub-section (2), the following sub-section shall be inserted,
namely:––
“(2A) The benamidar, to whom a notice has been issued
under sub-section (1), or the beneficial owner to whom a copy of
such notice has been issued under sub-section (2), shall furnish the
explanation or submissions, if any, within the period specified in
the said notice or such period as may be extended by the Initiating
Officer, not exceeding three months from the end of the month in
which the said notice is issued.”;
(ii) in sub-section (3), for the words “ninety days”, the words “four
months” shall be substituted;
(iii) in sub-section (4), for the words “ninety days”, the words “four
months” shall be substituted;
(iv) in sub-section (5), for the words “fifteen days from the date of
the attachment”, the words “one month from the end of the month in
which the said order has been passed” shall be substituted;
(b) after section 55, the following section shall be inserted, namely:––
“55A. (1) The Initiating Officer may, with a view to obtaining the
evidence of the benamidar or any other person as referred to in section 53,
other than the beneficial owner, tender immunity from prosecution for any
offence under the said section to the benamidar or such other person, with the
previous sanction of the competent authority as referred to in section 55, on
the condition that the benamidar or such other person makes a full and true
disclosure of the whole circumstances relating to the benami transaction.
(2) The tender of immunity made to, and accepted by, the benamidar
or such other person, shall, to the extent to which the immunity extends,
render him immune from prosecution for the offence in respect of which the
tender was made and from the imposition of any penalty under section 53.
(3) If it appears to the Initiating Officer that any person to whom
immunity has been tendered under this section has not complied with the
conditions subject to which the tender was made, or is wilfully concealing
anything, or is giving false evidence, the Initiating Officer may record a
finding to that effect, and with the previous sanction of the competent
authority as referred to in section 55, withdraw the immunity tendered.
(4) Any person against whom the immunity tendered is withdrawn
in accordance with sub-section (3), may be tried for the offence in
respect of which the tender of immunity was made or for any other
offence of which he appears to have committed in connection with the
same transaction and shall also be liable to any penalty under this Act to
which he would otherwise have been liable.”.
PART II
AMENDMENT TO THE FINANCE ACT, 2001
159. In section 136 of the Finance Act, 2001, for sub-section (3), the following
sub-section shall be substituted, namely:—
“(3) The provisions of the Central Excise Act, 1944 and all rules and
regulations made thereunder, including but not limited to those relating to the
date for determination of rate of duty, assessment, non-levy, short-levy,
refunds, exemptions, interest, recovery, appeals, offences and penalties shall,
as far as may be, apply in relation to the levy and collection of the National
Calamity duty leviable under this section in respect of the goods specified in
the Seventh Schedule as they apply in relation to the levy and collection of
duties of excise on such goods under that Act or all rules or regulations
made thereunder, as the case may be.”.
PART III
AMENDMENT TO THE FINANCE ACT, 2002
160. In section 147 of the Finance Act, 2002, for sub-section (3), the following
sub-section shall be substituted, namely:—
“(3) The provisions of the Central Excise Act, 1944 and all rules and
regulations made thereunder, including but not limited to those relating to the
date for determination of rate of duty, assessment, non-levy, short-levy,
refunds, exemptions, interest, recovery, appeals, offences and penalties shall,
as far as may be, apply in relation to the levy and collection of the Special
Additional Excise Duty leviable under this section in respect of the goods
specified in the Eighth Schedule, as they apply in relation to the levy and
collection of duties of excise on such goods under that Act or all rules
or regulations made thereunder, as the case may be.”.
PART IV
AMENDMENT TO THE FINANCE ACT, 2003
161. In section 134 of the Finance Act, 2003, for sub-section (4), the following
sub-section shall be substituted, namely:—
“(4) The provisions of the Customs Act, 1962 and all rules and
regulations made thereunder, including but not limited to those relating to the
date for determination of rate of duty, assessment, non-levy, short-levy,
refunds, exemptions, interest, recovery, appeals, offences and penalties shall,
as far as may be, apply in relation to the levy and collection of the National
Calamity Duty of Customs leviable under this section in respect of the goods
specified in the Seventh Schedule to the Finance Act, 2001, as amended by
the Thirteenth Schedule, as they apply in relation to the levy and collection of
duties of customs on such goods under that Act or all rules or regulations made
thereunder, as the case may be.”.
PART V
AMENDMENT TO THE FINANCE (NO. 2) ACT, 2004
162. In the Finance (No.2) Act, 2004, in Chapter VII, in section 98, in the
Table, in serial number 4, in column (3), with effect from the 1st day of
October, 2024,––
(i) against entry (a) relating to sale of an option in securities, for the figures and
word “0.0625 per cent.”, the figures and word “0.1 per cent.” shall be substituted; and
(ii) against entry (c) relating to sale of a futures in securities, for the figures and
word “0.0125 per cent.”, the figures and word “0.02 per cent.” shall be substituted.
PART VI
AMENDMENT TO THE FINANCE ACT, 2005
163. In section 85 of the Finance Act, 2005, for sub-section (3), the following
sub-section shall be substituted, namely:—
“(3) The provisions of the Central Excise Act, 1944 and all rules and
regulations made thereunder, including but not limited to those relating to the
date for determination of rate of duty, assessment, non-levy, short-levy,
refunds, exemptions, interest, recovery, appeals, offences and penalties shall,
as far as may be, apply in relation to the levy and collection of the additional
duty of excise leviable under this section in respect of the goods specified in
the Seventh Schedule as they apply in relation to the levy and collection of
duties of excise on such goods under that Act or all rules or regulations made
thereunder, as the case may be.”.
PART VII
AMENDMENTS TO THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS)
AND IMPOSITION OF TAX ACT, 2015
164. In the Black Money (Undisclosed Foreign Income and Assets) and
Imposition of Tax Act, 2015, with effect from the 1st day of October, 2024,––
(a) in section 42, for the proviso, the following proviso shall be
substituted, namely:––
“Provided that this section shall not apply in respect of an asset or
assets (other than immovable property) where the aggregate value
of such asset or assets does not exceed twenty lakh rupees.”;
(b) in section 43, for the proviso, the following proviso shall be
substituted, namely:––
“Provided that this section shall not apply in respect of an asset or
assets (other than immovable property), where the aggregate value of
such asset or assets does not exceed twenty lakh rupees.”.
PART VIII
AMENDMENTS TO THE FINANCE ACT, 2016
165. In the Finance Act, 2016,––
(a) in section 163, for sub-section (3), the following sub-section shall be
substituted and shall be deemed to have been substituted with effect from the
1st day of August, 2024, namely:––
“(3) It shall apply to consideration received or receivable for––
(a) specified services provided on or after the commencement
of this Chapter; and
(b) e-commerce supply or services made or provided or
facilitated on or after the 1st day of April, 2020 but before the
1st day of August, 2024:”;
(b) in section 165A, after sub-section (3), the following sub-section shall
be inserted and shall be deemed to have been inserted with effect from 1st day
of August, 2024, namely:––
“(4) The provisions of this section shall not apply to any
consideration received or receivable by an e-commerce operator from
e-commerce supply or services made or provided or facilitated by it on
or after the 1st day of August, 2024.”.
PART IX
AMENDMENTS TO THE FINANCE ACT, 2018
166. In the Finance Act, 2018,—
(a) in section 110, for sub-section (5), the following sub-section shall be
substituted, namely:—
“(5) The provisions of the Customs Act, 1962 and all rules and
regulations made thereunder, including but not limited to those relating to
the date for determination of rate of duty, assessment, non-levy, short-levy,
refunds, exemptions, interest, recovery, 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 that Act or all
rules or regulations made thereunder, as the case may be.”;
(b) in section 111, for sub-section (3), the following sub-section shall be
substituted, namely:—
“(3) The provisions of the Customs Act, 1962 and all rules and
regulations made thereunder, including but not limited to those relating
to the date for determination of rate of duty, assessment, non-levy,
short-levy, refunds, exemptions, interest, recovery, 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 duties of customs on scheduled goods under that Act or
all rules or regulations made thereunder, as the case may be.”;
(c) in section 112, for sub-section (3), the following sub-section shall be
substituted, namely:—
“(3) The provisions of the Central Excise Act, 1944 and all rules and
regulations made thereunder, including but not limited to those relating to
the date for determination of rate of duty, assessment, non-levy,
short-levy, refunds, exemptions, interest, recovery, 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 duties of excise on such
goods under that Act or all rules or regulations made thereunder, as
the case may be.”.
PART X
AMENDMENT TO THE FINANCE ACT, 2020
167. In section 141 of the Finance Act, 2020, for sub-section (5), the following
sub-section shall be substituted, namely:—
“(5) The provisions of the Customs Act and all rules and regulations
made thereunder, including but not limited to those relating to the date for
determination of rate of duty, assessment, non-levy, short-levy, refunds,
exemptions, interest, recovery, appeals, offences and penalties shall, as far as
may be, apply in relation to the levy and collection of the Health Cess leviable
under this Chapter in respect of the goods specified in the Fourth Schedule, as
they apply in relation to the levy and collection of duties of customs on such
goods under that Act or all rules or regulations made thereunder, as the case
may be.”.
PART XI
AMENDMENTS TO THE FINANCE ACT, 2021
168. In the Finance Act, 2021,—
(a) in section 124, for sub-section (5), the following sub-section shall be
substituted, namely:—
“(5) The provisions of the Customs Act, 1962 and all rules and
regulations made thereunder, including but not limited to those relating
to the date for determination of rate of duty, assessment, non-levy,
short-levy, refunds, exemptions, interest, recovery, appeals, offences
and penalties shall, as far as may be, apply in relation to the levy and
collection of the Agriculture Infrastructure and Development Cess on
imported goods as they apply in relation to the levy and collection of
duties of customs on such goods under that Act or all rules or regulations
made thereunder, as the case may be.”;
(b) in section 125, for sub-section (4), the following sub-section shall be
substituted, namely:—
“(4) The provisions of the Central Excise Act, 1944 and all rules
and regulations made thereunder, including but not limited to those
relating to the date for determination of rate of duty, assessment,
non-levy, short-levy, refunds, exemptions, interest, recovery, 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
duties of excise on such goods under that Act or all rules or regulations
made thereunder, as the case may be.”.
THE FIRST SCHEDULE
(See section 2)
PART I
INCOME-TAX
Paragraph A
(I) In the case of every individual other than the individual referred to in
items (II) and (III) of this Paragraph or Hindu undivided family or association of
persons or body of individuals, whether incorporated or not, or every artificial
juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the
Income-tax Act, not being a case to which any other Paragraph of this Part
applies,—
Rates of income-tax
(1) where the total income does Nil;
not exceed Rs. 2,50,000
(2) where the total income 5 per cent. of the amount by which the
exceeds Rs. 2,50,000 but does not total income exceeds Rs. 2,50,000;
exceed Rs. 5,00,000
(3) where the total income Rs.12,500 plus 20 per cent. of the
exceeds Rs. 5,00,000 but does not amount by which the total income
exceed Rs. 10,00,000 exceeds Rs. 5,00,000;
(4) where the total income Rs. 1,12,500 plus 30 per cent. of the
exceeds Rs. 10,00,000 amount by which the total income
exceeds Rs.10,00,000.
(II) 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,—
Rates of income-tax
(1) where the total income does Nil;
not exceed Rs. 3,00,000
(2) where the total income 5 per cent. of the amount by which the
exceeds Rs. 3,00,000 but does not total income exceeds Rs. 3,00,000;
exceed Rs. 5,00,000
(3) where the total income Rs.10,000 plus 20 per cent. of the
exceeds Rs. 5,00,000 but does not amount by which the total income
exceed Rs. 10,00,000 exceeds Rs. 5,00,000;
(4) where the total income Rs. 1,10,000 plus 30 per cent. of the
exceeds Rs. 10,00,000 amount by which the total income
exceeds Rs.10,00,000.
(III) 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,—
Rates of income-tax
(1) where the total income does Nil;
not exceed Rs. 5,00,000
(2) where the total income 20 per cent. of the amount by which
exceeds Rs. 5,00,000 but does not the total income exceeds Rs. 5,00,000;
exceed Rs. 10,00,000
(3) where
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