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23. Amendment of section 115WC. |
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—In section 115WC of the Income-tax Act, in sub-section (1), with effect from the 1st day of April, 2009,—
(i) in clause (c), for the words, brackets and letters "clauses (A) to (K)", the words, brackets and letters "clauses (A) to (L)" shall be substituted;
(ii) in clause (d), for the words, brackets and letters "clauses (L) to (P)", the words, brackets and letters "clauses (M) to (P)" shall be substituted.
Clause 23 seeks to amend section 115WC of the Income-tax Act, which relates to value of fringe benefits.
Section 115WC provides for valuation of various fringe benefits specified in section 115WB. Under clause (c) of sub-section (1) of section 115WC, it is provided that the value of fringe benefit relating to expenditure referred to in clauses (A) to (K) of sub-section (2) of section 115WB shall be twenty per cent. of the expenses. Similarly, under clause (d) of the said sub-section, it is provided that the value of fringe benefit referred to in clauses (L) to (P) of sub-section (2) of section 115WB shall be fifty per cent. of the expenses. The fringe benefit for the purposes of expenses on festival celebrations mentioned in clause (L) of sub-section (2) of section 115WB, is accordingly valued at fifty per cent.
It is proposed to amend both clauses (c) and (d) of sub-section (1) of section 115WC so as to provide that only 20 per cent. of the expenditure on festival celebrations shall be deemed to be the value of fringe benefit and not 50 per cent. as under the existing provisions.
This amendment will take effect from 1st April, 2009 and will accordingly apply in relation to the assessment year 2009-10 and subsequent assessment years.
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