MEMORANDUM REGARDING DELEGATED LEGISLATION
1. Clause 6 of the Bill provides that the following income shall be deemed to be received in the financial year—
(a) any contribution made by any employer, in the financial year, to the account of an employee under a pension fund ;
(b) any contribution made by any employer, in the financial year, to the account of an employee in any other fund ;
(c) the annual accretion, in the financial year, to the balance at the credit of any employee in a fund referred to in clause (b) to the extent it exceeds the limit as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make the rules in this regard for the purposes of this clause.
2. Clause 9 of the Bill provides that the total income of any individual shall include, besides other income, all income which accrues, directly or indirectly from assets transferred, directly or indirectly, to the spouse by the individual, otherwise than for adequate consideration, or in connection with an agreement to live apart ; and from assets transferred, directly or indirectly, to the son’s wife by the individual, otherwise than for adequate consideration. It has been further provided that the Board may prescribe the method for determining the income referred to above.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
3. Clause 18 of the Bill provides that in computing the total income of a person for any financial year, any expenditure attributable to income which is not included in the total income under the Sixth Schedule, and determined in accordance with such method as may be prescribed, shall not be allowed as a deduction.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
4. Clause 23 of the Bill provides for the deductions from the gross salary for computation of income from employment. These deductions include - any allowance or benefit granted by an employer for journey by an employee between his residence and office or any other place of work, to such extent as may be prescribed ; any allowance or benefit granted by an employer to an employee to meet expenses wholly, necessarily and exclusively in the performance of the duties of an office or employment of profit, as may be prescribed, to the extent such expenses are actually incurred for that purpose, and to meet personal expenses, considering the place of posting or nature of duties or place of residence, subject to such conditions and limits as may be prescribed ; any amount of interest credited, in the financial year, on the balance to the credit of an employee in an approved fund to the extent it does not exceed the amount of interest payable at the rate notified by the Central Government ; any allowance provided by an employer to meet the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the employee, to such extent as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make the rules and notify the "rate of interest" in this regard for the purposes of this clause.
5. Clause 33 of the Bill provides that the gross earnings referred to in clause 32 shall also include any payment or aggregate of payments made to a person in a day, in respect of an expenditure incurred during the financial year or in respect of a liability incurred and allowed as a deduction in any preceding financial year, which has been made otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft ; exceeds a sum of thirty-five thousand rupees if the payment is made to transporter for carriage of goods by road, or a sum of twenty thousand rupees in any other case ; and has not been made in such cases and in such circumstances as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make the rules in this regard for the purposes of this clause.
6. Clause 35 of the Bill specifies the operating expenditure with respect to business expenditure and includes remuneration to any working participant to the extent prescribed which is in accordance with the agreement of the unincorporated body or the Limited Liability Partnership, as the case may be, association and relates to the period falling after the date of such agreement ; contribution by a person, being an employer, to an approved fund subject to such limits and conditions, as may be prescribed and to the extent the amount is actually paid ;
7. Clause 35 further specifies the deductions for the purpose of determination of operating expenditure, which include contribution by the person, being an employer, to an approved fund subject to such limits and conditions, as may be prescribed and to the extent the amount is actually paid ; as well as, any amount credited to the provision for bad and doubtful debts account, not exceeding one per cent. of the aggregate average advances computed in the prescribed manner if the person is a financial institution or a non-banking finance company as may be notified.
Accordingly, it is proposed to empower the Central Government to make rules and issue notifications in this regard for the purposes of this clause.
8. Clause 36 of the Bill specifies the finance charges with respect to business expenditure and includes the amount of interest paid to any participant to the extent prescribed which is in accordance with the agreement of formation of unincorporated body and relates to the period falling after the date of such agreement ; the proportionate amount of discount or premium payable on any bond or debenture issued by the person, calculated in the manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
9. Clause 37 of the Bill provides deduction of an amount in accordance with such deposit scheme in respect of the person carrying on business of growing and manufacturing tea or coffee or rubber in India, as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make the rules in this regard.
10. Clause 41 of the Bill provides that a company shall be allowed a deduction equal to two hundred per cent. of the expenditure (not being expenditure in the nature of cost of any land or building) incurred on creating and maintaining an in-house facility for scientific research and development ; and carrying out scientific research and development in the in-house facility, if—
(a) the company creates and maintains an in-house facility for carrying out scientific research and development ;
(b) the research facility is approved by the Central Government on the basis of recommendation of the prescribed authority ; and
(c) the company enters into an agreement with the prescribed authority for co-operation in the research and development facility and for audit of the accounts maintained for such facility.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
11. Clause 41 of the Bill further provides that for the purposes of granting approval to a research facility for claiming deduction for scientific research and development allowance, the Board may prescribe the nature of business, conditions and manner as may be considered necessary for grant of such approval.
12. Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
13. Clause 44 of the Bill provides that the Board may, for the purposes of determining the actual cost of a business Capital asset, prescribe— (a) any other cost which may be included in determining the actual cost ; and (b) the method of determining the actual cost in the circumstances which are not provided for in this section.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
14. Clause 45 of the Bill provides that the Board may prescribe—(a) the method of determining the allocation of the written down value or the adjusted written down value of the assets between the different businesses carried on by the person ; and (b) the method of determining the written down value or the adjusted written down value of the block of assets in the circumstances which are not provided for in this section.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
15. Clause 47 of the Bill provides that the income from the transfer of any work of art, archeological, scientific or art collection, book, manuscript, drawing, painting, photograph or print, to the Government or a University or any public museum or institution of national importance or of renown throughout any State or States and notified by the Central Government, shall not be included in the computation of income under the head "Capital gains".
Accordingly, it is proposed to empower the Central Government to issue notification(s) in this regard for the purposes of this clause.
16. Clause 47 further provides that the transfer of any investment asset in a transaction of reverse mortgage under a scheme notified by the Central Government shall not be included in the computation of income under the head "Capital gains".
Accordingly, it is proposed to empower the Central Government to frame the scheme in this regard for the purposes of this clause.
17. Clause 58 of the Bill provides that the gross residuary income shall inter alia include any payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, if it has not been incurred in such cases and under such circumstances, as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
18. Clause 59 of the Bill provides that for the purposes of computation of income from residuary sources, any payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, if it has not been incurred in such cases and under such circumstances, as may be prescribed, shall not be allowed as a deduction.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
19. Clause 69 of the Bill provides that a person, being an individual, shall be allowed a deduction for savings in respect of the aggregate of the sums specified in the said clause as does not exceed to the extent of one lakh rupees paid or deposited by the person in a financial year. The specified sums include any sum as a contribution to any provident fund set up and notified by the Central Government where such contribution is to an account of the individual, spouse or any child of such individual ; any sum to effect or keep in force a contract for any annuity plan of any insurer as approved by the Board in accordance with the prescribed guidelines ; any sum as a contribution to a pension scheme, approved and notified by the Board in accordance with the prescribed guidelines.
Accordingly, it is proposed to empower the Board to issue notification in this regard for the purposes of this clause.
20. Clause 75 of the Bill provides that a person, being an individual, shall be allowed a deduction in respect of any amount paid by him in the financial year by way of interest on loan taken by him from any financial institution for the purpose of—(a) pursuing his higher education ; or (b) higher education of his relatives. For the purposes of this clause, "financial institution" means a banking company or any other financial institution which the Central Government may, by notification, specify in this behalf.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
21. Clause 76 of the Bill provides that a person, being resident individual of Hindu undivided family, shall be allowed a deduction in respect of any amount paid during the financial year for medical treatment of the prescribed disease or ailment of any specified person. This deduction shall not be allowed unless the person obtains a certificate in the prescribed form from a prescribed specialist working in a Government hospital.
According, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
22. Clause 77 of the Bill provides that a person, being resident individual, shall be allowed a deduction of one lakh rupees, if he is a person with severe disability ; and of fifty thousand rupees, if he is a person with disability. This deduction shall be allowed if the person obtains a certificate from a medical authority in the prescribed form and manner and the certificate remains valid during the relevant financial year or part thereof.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
23. Clause 78 of the Bill provides that the deduction under this clause shall be allowed if the person, claiming a deduction under this section, obtains a certificate from a medical authority in such form and manner as may be prescribed and the certificate remains valid during the relevant financial year or part thereof.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
24. Clause 79 of the Bill provides that the donation to any person specified in Part IV of the Sixteenth Schedule shall be eligible for deduction under sub-clause (1), if the donee obtains the approval of the prescribed authority in accordance with the procedure and subject to such conditions, as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
25. Clause 80 of the Bill provides that a person, being an individual and not in receipt of any house rent allowance, shall be allowed a deduction of any expenditure incurred by him in excess of ten per cent. of his gross total income from ordinary sources towards payment of rent in respect of any furnished or unfurnished accommodation occupied by him for his own residence. This deduction shall be allowed up to a maximum of two thousand rupees per month and shall be subject to such other conditions as may be prescribed having regard to the area or place in which the accommodation is situated.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
26. Clause 82 of the Bill provides for a deduction of income of Investor Protection Fund, if the Fund is notified by the Central Government.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
27. Clause 87 of the Bill provides that every person who has entered into an international transaction shall keep and maintain such information and document in respect thereof, as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
28. Clause 87 of the Bill further provides that any person carrying on legal, medical, engineering, architectural profession or profession of accountancy, technical consultancy, interior decoration or any other profession as is notified by the Board, shall keep and maintain such books of account and other documents as may enable the Assessing Officer to compute his total income in accordance with the provisions of the Code.
Accordingly, it is proposed to empower the Board to issue notifications in this regard for the purposes of this clause.
29. Clause 87 of the Bill further provides that in respect of the maintenance of accounts, the bills or receipts issued to any person shall contain the name, address and such other particulars as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
30. Clause 87 of the Bill further provides that the Board may, having regard to the nature of the business carried on by any class of persons, prescribe—(a) any other books of account and documents to be kept and maintained ; (b) the particulars to be contained in the books of account and documents ; and (c) the form and the manner in, and the place at, which the books of account and other documents shall be kept and maintained. The Board may, also prescribe the period for which the books of account and other documents required to be kept and maintained under this section shall be retained.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
31. Clause 88 of the Bill provides that every person, who is required to keep and maintain books of account under clause 87 shall get his accounts for the financial year audited. The report of this audit shall be obtained in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed. A person shall be deemed to have complied with the provisions of this clause if the person gets the accounts of his business audited as required by, or under, any other law for the time being in force, before the due date ; and obtains by the due date the report of the audit as required under such other law and a further report by an accountant in the form prescribed under this clause. Further, a person who has entered into an international transaction shall furnish a report of the international transaction entered into during the financial year to the Transfer Pricing Officer on or before the due date. This report shall be obtained from an accountant in the prescribed form duly signed and verified in the prescribed manner by such accountant.
Accordingly, it is proposed to empower the Central Government to make rules and forms in this regard for the purposes of this clause.
32. Clause 89 of the Bill provides that the income chargeable under the head "Income from business" or "Income from residuary sources" shall, except as otherwise provided in this section, be computed in accordance with either cash or mercantile system of accounting regularly employed by the person. The Central Government may from time to time notify accounting standards to be followed by any class of persons or in respect of any class of income.
Accordingly, it is proposed to empower the Central Government to make rules and issue notifications in this regard for the purposes of this clause.
33. Clause 89 of the Bill further specifies that for the purposes of this clause, "bad or doubtful debts" shall be such debts as may be prescribed, having regard to the guidelines issued by the Reserve Bank of India or the National Housing Bank, as the case may be, in relation to such debts.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
34. Clause 90 of the Bill provides that the Central Government may, subject to such conditions as may be considered necessary, notify a person as a non-profit organisation of public importance for the purpose of the Seventh Schedule.
Accordingly, it is proposed to empower the Central Government to issue notifications in this regard for the purposes of this clause.
35. Clause 94 of the Bill provides that the amount of outgoings during the financial year for the purpose of computation of the total income shall include any amount applied outside India, if—(i) the amount is applied for an activity which tends to promote international welfare in which India is interested ; and (ii) the non-profit organisation is notified by the Central Government in this behalf.
Accordingly, it is proposed to empower the Central Government to issue notifications in this regard for the purposes of this clause.
36. Clause 94 of the Bill further provides that the amount of outgoings during the financial year for the purpose of computation of the total income shall be the aggregate of the amounts specified therein. These amounts include any amount accumulated or set apart for carrying on any charitable activity—(i) to the extent of fifteen per cent. of the total income (before giving effect to the provisions of this clause) or ten per cent. of the gross receipts, whichever is less ; and (ii) invested or deposited in the modes specified in clause 95, for a period not exceeding three years from the end of the financial year. The modes of investing or depositing the money in such activity include any other mode of investment or deposit as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of clause 95.
37. Clause 98 of the Bill provides that a non-profit organisation shall make an application for its registration in the prescribed form and manner to the Commissioner. These provisions shall not apply to any non-profit organisation which has been granted approval or registration under the Income-tax Act, 1961 before the commencement of the Code, if the organisation fulfils such conditions as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules and forms in this regard for the purposes of this clause.
38. Clause 99 of the Bill provides that the non-profit organisation shall keep and maintain such books of account, in the manner as may be prescribed. Further, the non-profit organisation shall obtain a report of audit in the prescribed form from an accountant before the due date of filing of the return of tax bases, if the gross receipts referred to in clause 93 in any financial year exceed five lakh rupees.
Accordingly, it is proposed to empower the Central Government to make rules and forms in this regard for the purposes of this clause.
39. Clause 100 of the Bill defines "anonymous donation for the purpose of the said clause to mean any voluntary contribution, where a person receiving such contribution does not maintain a record of the identity indicating the name and address of the person making such contribution and such other particulars as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
40. Clause 101 of the Bill provides that a non-profit organisation shall be liable to income-tax at the rate of thirty per cent. in respect of its net worth subject to the conditions specified in the said clause. "Net worth" of the non-profit organisation has been defined to mean the aggregate value of the total assets of the non-profit organisation as reduced by the liabilities of such organisation computed in accordance with such rules of valuation as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
41. Clause 104 of the Bill provides that every company to which this clause in respect of computation of book profit applies, shall obtain a report in such form as may be prescribed from an accountant certifying that the book profit has been computed in accordance with the provisions of this clause.
Accordingly, it is proposed to empower the Central Government to make rules and issue forms in this regard for the purposes of this clause.
42. Clause 108 of the Bill provides that the venture capital company, the venture capital fund or the person responsible for making payment of the income on behalf of such company or fund shall furnish, within such time as may be prescribed, to the person receiving such income and to the prescribed income-tax authority, a statement in the prescribed form and manner, giving details of the nature of the income paid during the financial year and such other relevant details as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
43. Clause 110 of the Bill provides that every life insurer shall be liable to pay tax on any amount of income, computed in the manner prescribed, distributed or paid to the policy holders of an approved equity oriented life insurance scheme.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
44. Clause 110 of the Bill further provides that in this clause "approved equity oriented life insurance scheme" means—
(i) a life insurance scheme where more than sixty-five per cent. of the total premia received under such scheme are invested by way of equity shares in domestic companies ; and
(ii) such scheme is approved by the Board in accordance with such guidelines as may be prescribed.
Accordingly, it is proposed to empower the Board to frame the guidelines in this regard for the purposes of this clause.
45. Clause 113 of the Bill provide that in relation to computation of net wealth for the purposes of chargeability of wealth-tax, the value of any specified asset, other than cash, referred to in the said clause, shall be determined in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
46. Clause 117 of the Bill provides that the arm’s length price in relation to an international transaction shall be determined in accordance with any of the methods as may be prescribed, being the most appropriate method ; the most appropriate method shall be determined having regard to the nature of transaction, class of transaction, class of associated enterprises or functions performed by such enterprises or such other relevant factors as may be prescribed ; and the most appropriate method determined as above shall be applied for determination of arm’s length price in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
47. Clause 116 of the Bill further provides that the determination of arm’s length price shall be subject to safe harbour rules, as may be prescribed in this behalf.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
48. Clause 118 of the Bill provides that the Board may, by notification, frame a Scheme for advance pricing agreement in respect of an international transaction.
Accordingly, it is proposed to empower the Board to frame the scheme in this regard for the purposes of this clause.
49. Clause 123 of the Bill provides that the provisions in respect of general anti-avoidance rule shall apply in accordance with such guidelines as may be prescribed.
Accordingly, it is proposed to empower the Central Government to frame the guidelines in this regard for the purposes of this clause.
50. Clause 124 of the Bill provides that for the purposes of the Chapter on "Special provisions relating to avoidance of tax", two enterprises shall be deemed to be associated enterprises at any time during the financial year, if they are associated with each other by virtue of the conditions specified in the said clause. These conditions include – "any specific or distinct location of either of the enterprises as may be prescribed" ; "any other relationship of mutual interest, existing between the two enterprises, as may be prescribed".
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
51. Clause 127 of the Bill further provides that the Board may, by notification, direct that any income-tax authority or authorities specified in the notification shall be subordinate to such other income-tax authority or authorities as may be specified in such notification.
Accordingly, it is proposed to empower the Board to issue notification in this regard for the purposes of this clause.
52. Clause 139 of the Bill provides in relation to retention and application of seized assets, the Assessing Officer shall release, within the time and subject to such conditions as may be prescribed, to the person from whose custody the assets were seized, any asset or proceeds thereof, which remains after the liabilities referred to in the said clause are discharged.
Accordingly, it proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
53. Clause 135 of the Bill provides that in relation to search and seizure, the Board may make rules—
(a) to provide for the procedure to be followed by the Authorised Officer—
(i) for obtaining ingress into any building, place, vessel, vehicle or aircraft to be searched where free ingress thereto is not available ; and
(ii) for ensuring safe custody of any material seized ; and
(b) any other matter in relation to search and seizure under this clause.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
54. Clause 140 of the Bill provides that for the purposes of the Direct Taxes Code, the Board may, notwithstanding anything contained in any other law for the time being in force, require —
(a) any prescribed person to furnish such information within such time and in such form and manner as may be prescribed ; and
(b) any prescribed income-tax authority to call for such information in such form and manner as may be prescribed.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
55. Clause 142 of the Bill provides that the Chief Commissioner or the Commissioner may furnish, or cause to be furnished, to any person any information relating to any assessee received or obtained by any income-tax authority in the performance of his functions under this Code, if the person makes an application to the Chief Commissioner or the Commissioner in the prescribed form ; and the Chief Commissioner or the Commissioner is satisfied that it is in the public interest so to do.
Accordingly, it is proposed to empower the Central Government to issue the form in this regard for the purposes of this clause.
56. Clause 142 of the Bill further provides that the Board, or any person specified by it by an order in this behalf, may furnish, or cause to be furnished, any information in respect of an assessee to any other person performing any functions under any other law as the Central Government may, if in its opinion it is necessary so to do in the public interest specify by notification in this behalf.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
57. Clause 144 of the Bill provides that every person shall furnish a return of tax bases on or before the due date to the Assessing Officer or such other authority or agency as may be prescribed.
Accordingly, is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
58. Clause 144 of the Bill further provides that the person required to furnish a return of tax bases in relation to income shall also include ; besides those enumerated in the said clause, any class or classes of persons as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules/issue notification in this regard for the purposes of this clause.
59. Clause 144 of the Bill further provides that the return of tax bases shall be furnished in such form, verified in the manner and setting forth such particulars, as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
60. Clause 145 of the Bill provides that the Board may, without prejudice to the provisions of clause 144 frame a Tax Return Preparer Scheme so as to allow a Tax Return Preparer to prepare and furnish the return of tax bases of any specified class of persons, in accordance with the Scheme.
Accordingly, it is proposed to empower the Board to frame the Tax Return Preparer Scheme in this regard for the purposes of this clause.
61. Clause 149 of the Bill provides that the Board may make a scheme for centralised processing of returns for expeditious determination of the tax payable by, or the refund due to, the assessee.
Accordingly, it is proposed to empower the Board to frame the scheme in this regard for the purposes of this clause.
62. Clause 151 of the Bill provides that the Assessing Officer may direct the assessee to get his accounts audited by an accountant, if, at any stage of the proceeding, he is of the opinion that, having regard to the nature and complexity of the accounts of the assessee and the interests of Revenue, it is necessary to do so. The accountant shall furnish the report of the audit in such form, duly signed and verified by him, and setting forth such particulars as may be prescribed and such other particulars as the Assessing Officer may require.
Accordingly it is proposed to empower the Central Government to make rules/forms in this regard for the purposes of this clause.
63. Clause 157 of the Bill further provides that the remuneration of the accountant and other expenses of the special audit shall be determined and paid by the Chief Commissioner or Commissioner in accordance with such guidelines as may be prescribed.
Accordingly, it is proposed to empower the Central Government to frame the rules in this regard for the purposes of this clause.
64. Clause 155 of the Bill provides that for the purpose of assessment, "eligible assessee" includes any class or classes of persons as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
65. Clause 159 of the Bill provides that for reopening a case, the Assessing Officers shall serve on the assessee a notice requiring him to furnish, within a period of thirty days, a return of tax bases for any financial year, in such form, verified in the manner and setting forth such other particulars as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules/forms in this regard for the purposes of this clause.
66. Clause 162 of the Bill provides that any sum payable in consequence of any order made, or intimation issued, under this Code shall be demanded by an income-tax authority by serving upon the assessee a notice of demand in such form and manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules/forms in this regard for the purposes of this clause.
67. Clause 179 of the Bill provides that every appeal under clause 178 to Commissioner (Appeals) shall be in such form and verified in such manner and accompanied by a fee as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules/forms in this regard for the purposes of this clause.
68. Clause 183 of the Bill provides that an appeal or the memorandum of cross-objection to the Appellate Tribunal shall be in such form and be verified in such manner as may be prescribed. The appeal by an assessee shall be accompanied by such fees as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules/forms in this regard for the purposes of this clause.
69. Clause 184 of the Bill provides that an assessee may make an application to the Appellate Tribunal for stay of demand in relating to the appeal preferred by him under clause 183 and such application shall be accompanied by such fees as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
70. Clause 192 of the Bill provides that every application by an assessee for revision of any order passed by an authority subordinate to the Commissioner, other than an order to which section 190 applies, shall be accompanied by such fees as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
71. Clause 196 of the Bill provides that for the purposes of the liability to deduct tax at source, the specified payment shall be deemed to have been made, if the payment has been made in cash ; by issue of a cheque or draft ; by credit to any account, whether called "suspense account" or by any other name ; or by any other mode as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
72. Clause 196 of the Bill further provides that for the purposes of making any deduction of tax from the payment liable to be taxed under the head "Income from employment", the deductor shall take into account the specified particulars, if any, furnished by the deductee in such form and manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules/forms in this regard for the purposes of this clause.
73. Clause 197 of the Bill provides that the deductee may make an application, in such form and manner, as may be prescribed, to the Assessing Officer seeking a certificate for deduction of income-tax at a lower rate or, as the case may be, no deduction of income-tax from payments to be received by him. Further, the deductor may make an application, in such form and manner as may be prescribed, to the Assessing Officer seeking a certificate for deduction of income-tax at a lower rate or, as the case may be, no deduction of income-tax from payments to be made by him to a non-resident deductee.
Accordingly, it is proposed to empower the Central Government to make rules/forms in this regard for the purposes of this clause.
74. Clause 197 of the Bill further provides that the Board may prescribe the circumstances and the cases in which an application may be made for the grant of the certificate for lower or no deduction of tax and the conditions subject to which such certificate may be granted and provide for all other matters connected therewith.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
75. Clause 198 of the Bill provides that every deductor shall pay the sum deducted to the credit of the Central Government within such time and manner as may be prescribed. Further, every deductor shall furnish to the deductee a certificate to the effect that tax has been deducted within such time and containing such particulars as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
76. Clause 199 of the Bill provides that the Central Government may, by notification in the official Gazette, require any deductor to deliver, or cause to be delivered, a return in respect of any payment without deduction of tax.
Accordingly, it is proposed to empower the Central Government to issue notifications in this regard for the purposes of this clause.
77. Clause 199 of the Bill further provides that the Board shall, in respect of the return of tax-deduction and the return under this clause, prescribe the following :
(a) the period in respect of which the return is to be furnished ;
(b) the form of the return and the particulars therein ;
(c) the manner of verification of the return ;
(d) the time by, and the medium in, which the return is to be delivered ;
(e) the income-tax authority, or any other person, authorised to receive the return ; and
(f) any other matters connected therewith.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
78. Clause 200 of the Bill provides that no tax shall be deducted at source, where the payee is a resident, from any interest payable to any institution, association or body, or class of institutions, associations or bodies, which the Central Government may, for reasons to be recorded in writing, notify in this behalf. Further, the same shall also apply for any interest payable in respect of deposits under any scheme framed by the Central Government and notified by it in this behalf.
Accordingly, it is proposed to empower the Central Government to issue notifications and make scheme in this regard for the purposes of this clause.
79. Clause 201 of the Bill provides that for the purposes of giving credit in respect of tax deducted, the Board may prescribe—
(a) the procedure for giving credit to the deductee, or any other person ;
(b) the financial year for which such credit may be given ; and
(c) any other matter connected therewith.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
80. Clause 202 of the Bill provides that for the purposes of tax collection at source, the collection of an amount shall be deemed to have been made, if the amount has been received in cash ; by way of a cheque or draft ; by debit to any account, whether called "suspense account" or by any other mode as may be prescribed, whichever is earlier.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
81. Clause 202 of the Bill further provides that any person collecting any amount in the form of tax collected at source shall pay the sum so collected to the credit of the Central Government within such time and manner as may be prescribed. Also, every person responsible for collecting any amount the form of tax collected at source shall furnish to the buyer, lessee or licensee a certificate of tax collection within such time as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
82. Clause 202 of the Bill further provides that the Board shall prescribe the following in respect of the return of tax collection :—
(a) the period in respect of which the return is to be furnished ;
(b) the form of the return and the particulars therein ;
(c) the manner of verification of the return ;
(d) the time by, and the medium in, which the return is to be delivered ;
(e) the income-tax authority, or any other person, authorised to receive the return ; and
(f) any other matter connected therewith.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
83. Clause 203 of the Bill provides that for the purpose of giving credit in respect of tax collected, the Board may prescribe—
(a) the procedure for giving credit to the collectee, or any other person ;
(b) the financial year for which such credit may be given ; and
(c) any other matter connected therewith.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
84. Clause 204 of the Bill provides that for the purposes of the Chapter on "Collection at Source", "professional or technical services" means services rendered by a person in the course of carrying on legal, medical, engineering, architectural or accountancy profession, technical consultancy, interior decoration or any other profession as notified by the Board.
Accordingly, it is proposed to empower the Board to make rules/issue notifications in this regard for the purposes of this clause.
85. Clause 205 of the Bill provides that where in the opinion of the Assessing Officer may, any person is liable to pay advance income-tax, he may by an order in writing require such person to pay advance income-tax calculated in such manner as may be prescribed ; and issue to such person a notice of demand under section 168 specifying the instalments in which such tax is to be paid. Further, the person, who has been served with such an order, may file an estimation, in such form as may be prescribed, to the Assessing Officer, if in his estimation, the advance tax payable by him is lower than the amount specified in the said order, and pay the advance tax in accordance with his estimation on or before the due dates specified in this section.
Accordingly, it is proposed to empower the Central Government to make rules and forms in this regard for the purposes of this clause.
86. Clause 206 of the Bill provides that the Assessing Officer shall, on an application made to him by any person, grant such relief as may be prescribed, if the person is in receipt in any financial year of any arrears, or advance, of salary or family pension relating to any other financial year.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
87. Clause 207 of the Bill provides that the Central Government may, for the relief or avoidance of double taxation, prescribe,—
(a) the method for computing the amount of credit ;
(b) the manner of claiming credit ; and
(c) such other particulars as may be considered necessary.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
88. Clause 210 of the Bill provides that in relation to interest for default in furnishing return of tax bases, the Assessing Officer shall serve on the assessee a notice of demand, in such form as may be prescribed, specifying the sum payable on account of increase in the interest payable as a result of modification in the assessed income on account of any rectification, revision or appellate order under the Code, and such notice shall be deemed to be a notice under section 168.
Accordingly, it is proposed to empower the Central Government to issue the forms in this regard for the purposes of this clause.
89. Clause 210 of the Bill provides that in relation to interest for defaults in payment of advance income-tax, the Assessing Officer shall serve on the assessee a notice of demand in such form as may be prescribed specifying the sum payable on account of increase in the interest on account of any rectification, revision or appellate order under the Code and such notice shall be deemed to be a notice under section 168 and the provisions of this Code shall apply accordingly.
Accordingly, it is proposed to empower the Central Government to issue the forms in this regard for the purposes of this clause.
90. Clause 215 of the Bill provides that an assessee shall be entitled to a refund of the excess of any amount paid by him or on his behalf, or treated as paid by him or on his behalf, for any financial year over the amount with which he is liable under the Code, and every claim for refund shall be made within such time and such form and manner, as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
91. Clause 216 of the Bill provides that in relation to interest on refunds, the Assessing Officer shall serve on the assessee a notice of demand in such form as may be prescribed specifying the amount of excess interest paid to him where interest is reduced in accordance with the variation in the amount on which the interest was payable as a result of any rectification, revision or appellate order under the Code, and such notice shall be deemed to be a notice under section 161.
Accordingly, it is proposed to empower the Central Government to issue the forms in this regard for the purposes of this clause.
92. Clause 218 of the Bill provides that any amount specified as payable in a notice of demand, otherwise than by way of advance tax, shall be paid within thirty days of the service of the notice, to the credit of the Central Government in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
93. Clause 219 of the Bill provides that the Tax Recovery Officer may draw up under his signature a statement of tax arrears of an assessee in default referred to in sub-section (3) or sub-section (4) of section 213, in the prescribed form.
Accordingly, it is proposed to empower the Central Government to issue the forms in this regard for the purposes of this clause.
94. Clause 220 of the Bill provides that the Assessing Officer or the Tax Recovery Officer may require the employer of the assessee to deduct from any payment to the assessee such amount as is sufficient to meet the tax arrear from the assessee. Upon such requisition, the employer shall comply with the requisition and shall pay the sum so deducted to the credit of the Central Government in the prescribed manner.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
95. Clause 220 of the Bill further provides that the Assessing Officer or the Tax Recovery Officer may, by notice in writing, require any debtor of the assessee to pay such amount, not exceeding the amount of debt, as is sufficient to meet the tax arrear of the assessee. Upon receipt of such notice, the debtor shall comply with the requisition and shall pay the sum to the credit of the Central Government in such manner as may be prescribed within the time (not being before the debt becomes due to the assessee) specified in the notice.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
96. Clause 221 of the Bill provides that the Tax Recovery Officer, may send a certificate, in such manner as may be prescribed, specifying the tax arrear to be recovered, to another Tax Recovery Officer within whose jurisdiction the assessee resides or has property, if the first-mentioned Tax Recovery Officer is not able to recover the entire amount by sale of the property, movable or immovable, within his jurisdiction ; or is of the opinion that, for the purpose of expediting, or securing, the recovery of the whole, or any part, of the amount under this chapter, it is necessary so to do.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
97. Clause 228 of the Bill provides that every person, who is domiciled in India at the time of his departure from India, shall furnish to the notified authority such particulars as may be prescribed ; and obtain a certificate from the notified authority that he has no liability, if in the opinion of the Assessing Officer it is necessary for such person to obtain such certificate.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
98. Clause 228 of the Bill further provides that no person shall leave the territory of India unless he furnishes to such authority, as may be notified, an undertaking to the effect that he has made satisfactory arrangement for discharging his tax liability, if any, in respect of any income or wealth liable to tax in India.
Accordingly, it is proposed to empower the Central Government to notify the authority in this regard for the purposes of this clause.
99. Clause 228 of the Bill further provides that Board may having regard to the interesting revenue may prescribe—
(a) the circumstances
(b) the form and manner in which the undertaking is to be furnished ; and
(c) any other manner connected therewith, accordingly it is proposed to empower the Board to make rules and issue forms in this regard for purposes of this clause.
100. Clause 252 of the Bill provides that the Chief Commissioner may compound, either before or after the institution of proceedings, any offence under Chapter XV, under the circumstances and for the amount, as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
101. Clause 256 of the Bill provides that an applicant or appellant, being any class of residents as notified by the Central Government in the Official Gazette in this behalf, may seek a ruling or, as the case may be, a resolution of dispute on matters concerning a determination in respect of an issue relating to computation of tax bases is pending before any income-tax authority, or the Appellate Tribunal, and such determination shall include the determination of any question of law or of fact relating to such computation of tax bases specified in the application.
Accordingly, it is proposed to empower the Central Government to make rules and issue notifications in this regard for the purposes of this clause.
102. Clause 257 of the Bill provides that in respect of the Authority for Advanced Rulings and Dispute Resolution, the salaries and allowances payable to, and the terms and conditions of service of, the Members shall be such as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
103. Clause 258 of the Bill provides that in respect of the procedure for advance ruling, the application shall be made in such form and manner as may be prescribed, and be accompanied by such fees as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
104. Clause 258 of the Bill further provides that in respect of the procedure for advance ruling, a copy of the advance ruling pronounced by the Authority, duly signed by the Members and certified in such manner as may be prescribed shall be sent to the applicant and to the Commissioner, as soon as may be, after such pronouncement.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
105. Clause 262 of the Bill provides that in respect of the procedure for dispute resolution, the appeal, or the memorandum of cross objections, shall be in such form and manner and be verified in such manner as may be prescribed. Further, the appeal by the public sector company shall be accompanied by such fees as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
106. Clause 263 of the Bill provides that a public sector company may make an application to the Authority for Advanced Rulings and Dispute Resolution for stay of demand relating to the appeal preferred by it under section 256 and such application shall be accompanied by such fees as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
107. Clause 269 of the Bill provides that the Principal Bench and the Additional Benches of the Settlement Commission shall ordinarily sit at such places as the Central Government may, by notification in the Official Gazette, specify.
Accordingly, it is proposed to empower the Central Government to issue notifications in this regard for the purposes of this clause.
108. Clause 270 of the Bill provides that in respect of the Settlement Commission, the Vice-Chairperson or, as the case may be, one of the Vice-Chairperson as the Central Government may, by notification in the Official Gazette, authorise in this behalf, shall act as the Chairperson.
Accordingly, it is proposed to empower the Central Government to issue notifications in this regard for the purposes of this clause.
109. Clause 273 of the Bill provides that an assessee may, at any stage of a case relating to him, make an application to the Settlement Commission in such form and manner as may be prescribed, to have the case settled. Such application shall contain, besides the specified particulars, such other particulars as may be prescribed.
It has also been provided that every application made to the Settlement Commission shall be accompanied by such fees as may be prescribed. Further, the assessee shall, on the date on which he makes such an application to the Settlement Commission, also intimate the Assessing Officer in such manner as may be prescribed, of having made such application to the Settlement Commission.
Accordingly, it is proposed to empower the Central Government to make rules and forms in this regard for the purposes of this clause.
110. Clause 282 of the Bill provides that no person shall be entitled to inspect, or obtain copies of, any reports made by any income-tax authority to the Settlement Commission ; but the Settlement Commission may, in its discretion, furnish copies thereof to any such person on an application made to it in this behalf and on payment of such fee as may be prescribed. Further, for the purpose of enabling any person whose case is under consideration to rebut any evidence brought on record against him in any such report, the Settlement Commission shall, on an application made in this behalf, and on the payment of such fee as may be prescribed, furnish such person with a certified copy of any such report or part thereof relevant for the purpose.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
111. Clause 291 of the Bill provides that in respect of any agreement with foreign countries or specified territory, the Central Government may, by notification in the Official Gazette, make such provisions as may be necessary for implementing the agreements.
Accordingly, it is proposed to empower the Central Government to issue notifications in this regard for the purposes of this clause.
112. Clause 291 of the Bill further provides that in respect of any agreement with foreign countries or specified territory, a person shall not be entitled to claim relief under the provisions of the agreement unless a certificate of his being a resident in the other country or specified territory is obtained by him from the tax authority of that country or specified territory, in the prescribed form.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
113. Clause 292 of the Bill provides that every person who fulfils such conditions and requirements as may be prescribed shall make an application for the allotment of a permanent account number and the applicant shall be allotted a permanent account number. Further, a permanent account number may, having regard to the nature of transactions as may be prescribed, be allotted to any other person, whether or not an application is made by him. Also, any person who has been allotted a permanent account number shall quote the number in the transactions, or documents, as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
114. Clause 292 of the Bill further provides that the Board shall prescribe the following in respect of the permanent account number :
(a) the form and the manner in which an application may be made for the allotment of a permanent account number and the particulars which such application shall contain ;
(b) the income-tax authority, or any other person, authorised to receive the application or allot the permanent account number ;
(c) the categories of transactions in relation to which permanent account numbers shall be quoted by every person in the documents pertaining to such transactions ;
(d) the categories of documents in which such numbers shall be quoted by every person ;
(e) class, or classes, of persons to whom the provisions of this section shall not apply ;
(f) the form and the manner in which the person who has not been allotted a permanent account number shall make his declaration ;
(g) the manner in which the permanent account number shall be quoted in respect of the categories of transactions referred to in clause (c) ; and any other matters connected therewith.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
115. Clause 293 of the Bill provides that any person who has been allotted a tax account number shall quote the number in the transactions, or documents, as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
116. Clause 294 of the Bill provides that no person shall accept from, or repay to, any other person any loan or deposit otherwise than by an account payee cheque or bank draft, if the aggregate amount of such loan or deposit in a financial year exceeds fifty thousand rupees. However, these provisions shall not apply to any loan or deposit taken or accepted from, or by such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify.
Accordingly, it is proposed to empower the Central Government to issue notifications in this regard for the purposes of this clause.
117. Clause 295 of the Bill provides that every person responsible for registering or maintaining books of account or other documents containing a record of any specified financial transaction, under any law for the time being in force, shall furnish an annual information return, in respect of such specified financial transaction. Such person will also include a designated person in the case of an office of the Government.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
118. Clause 295 of the Bill further provides that the annual information return in respect of the specified financial transactions shall be furnished to such authority, in such form and manner (including on a floppy, diskette, magnetic cartridge tape, CD-ROM or any computer readable media) and within such time as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
119. Clause 295 of the Bill further provides that for the purposes of furnishing the annual information return, "specified financial transaction" shall include any other transaction as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
120. Clause 295 of the Bill further provides that the annual information return in respect of the financial transactions shall be furnished if the aggregate value of each such transaction in any financial year exceeds the amount as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
121. Clause 295 of the Bill further provides that the prescribed income-tax authority may, if he considers that the annual information return furnished is defective, intimate the defect to the person who has furnished such return and give him an opportunity of rectifying the defect within a period of one month from the service of such intimation. Further, the prescribed income-tax authority shall treat the annual information return as invalid if such defect is not removed within the time allowed, and the provisions of the Code shall apply as if such person had failed to furnish the annual information return.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
122. Clause 295 of the Bill further provides that if a person who is required to furnish an annual information return under the said clause has not furnished the same within the prescribed time, the prescribed income-tax authority may serve upon such person a notice requiring him to furnish such return within a period not exceeding sixty days from the date of service of the notice and such person shall furnish the annual information return within the time specified in the notice.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
123. Clause 304 of the Bill provides that any assessee who is entitled, or required, to attend before any income-tax authority, or the Appellate Tribunal, in connection with any proceeding under this Code, may attend through an authorised representative. An "authorised representative" means a person authorised by the assessee in writing to appear on his behalf, including any person who has acquired such educational qualifications as may be prescribed for this purpose.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
124. Clause 304 of the Bill further provides that a person, not being a legal practitioner or an accountant, who is found guilty of misconduct in connection with any income-tax proceedings by the prescribed authority, shall not be qualified to represent an assessee as his authorised representative.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
125. Clause 305 of the Bill provides that the method of rounding off of the amount of tax bases to the nearest multiple of hundred rupees, and any amount payable, or receivable, by the assessee, to the nearest multiple of ten rupees under the provisions of the Code shall be such as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
126. Sub-clause (18) of clause 314 of the Bill defines "approved fund" to also mean a provident fund, superannuation fund, gratuity fund, pension fund, or any other fund, as approved by the Board in accordance with the scheme framed and prescribed by the Central Government in this behalf ;
Accordingly, it is proposed to empower the Central Government to frame the scheme in this regard for the purposes of this clause.
127. Sub-clause (31) of clause 314 of the Bill defines "backward classes" to mean such classes of citizens, other than the Scheduled Castes and the Scheduled Tribes, as may be notified, from time to time, by the Central Government or any State Government.
Accordingly, it is proposed to empower the Central Government and the State Governments to issue notifications in this regard for the purposes of this clause.
128. Sub-clause (34) of clause 314 of the Bill defines "Board" to mean the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963 and notified by the Central Government for the purposes of this Code.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
129. Sub-clause (36) of clause 314 of the Bill defines "broken-period income" to mean the income for the period commencing from the date on which the debt instrument is acquired by the person or the beginning of the financial year, whichever is later, and ending on the date on which the security is sold, and calculated in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
130. Sub-clause (55) of clause 314 of the Bill defines "Competent Investigating Authority" to mean any income-tax authority not below the rank of Joint Commissioner prescribed as such.
Accordingly, it is proposed to empower the Central Government to notify/make rules in this regard for the purposes of this clause.
131. Sub-clause (57) of clause 314 of the Bill defines "computer software" to mean any computer programme recorded on any disc, tape, perforated media or other information storage device ; or any customised electronic data or any product or service of similar nature, as may be notified by the Board.
Accordingly, it is proposed to empower the Board to issue notification in this regard for the purposes of this clause.
132. Sub-clause (63) of clause 314 of the Bill defines "Cost Inflation Index" in relation to a financial year as the index as the Central Government may specify by Notification, having regard to seventy-five per cent. of the average rise in the consumer price index for non-urban manual employees for the immediately preceding financial year.
Accordingly, it is proposed to empower the Central Government to notify the "index" in this regard for the purposes of this clause.
133. Sub-clause (74) of clause 314 of the Bill provides that the transfer, in relation to "demerger", shall be in accordance with such other conditions as may be notified by the Central Government having regard to the necessity to ensure that the transfer is for genuine business purposes. It is further provided that the splitting up or the reconstruction of any authority or a body constituted or established under a Central, State or Provincial Act, or a local authority or a public sector company to form a resulting company, shall be in accordance with the conditions as may be notified by the Central Government.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
134. Sub-clause (86) of clause 314 of the Bill defines "due date" in relation to any other return, other than the return of tax bases, to mean such date as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
135. Sub-clause (87) of clause 314 of the Bill defines "electoral trust" to mean a trust so approved by the Board in accordance with the scheme made in this regard by the Central Government.
Accordingly, it is proposed to empower the Central Government to make the scheme in this regard for the purposes of this clause.
136. Sub-clause (93) of clause 314 of the Bill defines "fair market value", in relation to an asset, to mean the price determined in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
137. Sub-clause (112) of clause 314 of the Bill defines "head office expenditure" to mean executive and general administration expenditure incurred by the assessee outside India, including expenditure incurred in respect of, in addition to the matters specified therein, such other matters connected with administration as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
138. Sub-clause (159) of clause 314 of the Bill defines "medical authority" as — (i) the medical authority referred to in clause (p) of section 2 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 ; or (ii) such other medical authority as may be notified by the Central Government for this purpose.
Accordingly, it is proposed to empower the Central Government to notify the "medical authority" in this regard for the purposes of this clause.
139. Sub-clause (166) of clause 314 of the Bill defines "net worth" in relation to an undertaking or division transferred under slump sale, to mean the value determined in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
140. Sub-clause (191) of clause 314 of the Bill provides that the value of the perquisites defined therein shall be computed in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in respect of the manner of computation of the value of perquisites for the purposes of this clause.
141. Sub-clause (211) of clause 314 of the Bill defines "recognised stock exchange" to mean a recognised stock exchange as referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 and which fulfils such conditions as may be prescribed and notified by the Central Government for this purpose.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
142. Sub-clause (213) of clause 314 of the Bill defines "registered valuer" to mean a person registered as such by the Board for determining the value of any asset in accordance with the procedure as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
143. Sub-clause (239) of clause 314 of the Bill defines "specified association" to mean any institution, association or body, whether incorporated or not, functioning under any law for the time being in force in India or the laws of the specified territory outside India and notified as such by the Central Government.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
144. Sub-clause (241) of clause 314 of the Bill defines "specified knowledge-based industry or service" to mean any other industry or service, other than those specified therein, as may be notified by the Central Government.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
145. Sub-clause (242) of clause 314 of the Bill defines "specified territory" to mean any area outside India and notified as such by the Central Government.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
146. Sub-clause (250) of clause 314 of the Bill defines "State Pooled Finance Entity" to mean such entity which is set up in accordance with the guidelines for the Pooled Finance Development Scheme notified by the Central Government.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
147. Sub-clause (259) of clause 314 of the Bill defines "Tax Recovery Officer" to mean any Income-tax Officer who may be authorised by the Chief Commissioner or the Commissioner, by general or special order in writing to exercise the powers of a Tax Recovery Officer to exercise or perform such powers and functions which are conferred on, or assigned to, an Assessing Officer as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
148. Sub-clause (260) of clause 314 of the Bill provides that "test of continuity of business" stands satisfied, in case of a successor, if he, in addition to fulfilling the conditions specified therein, fulfils such other conditions as may be prescribed to ensure the revival of the business of the predecessor or to ensure that the business reorganisation is for genuine business purpose.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
149. Sub-clause (284) of clause 314 of the Bill defines "urban area" as an area within such distance from the local limits of any municipality or cantonment board referred to in item (a), as the Central Government may having regard to the extent of, and scope for, urbanisation of that area and other relevant considerations, specify in this behalf by notification.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
150. Sub-clause (289) of clause 314 of the Bill provides that "value of sweat equity shares" shall be the value of the sweat equity shares on the date on which the option is exercised by the assessee, determined in accordance with the method as may be prescribed, as reduced by the amount actually paid by, or recovered from, the assessee in respect of such shares.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
151. Sub-clause (290) of clause 314 of the Bill defines "venture capital company" to mean a company,—
(a) which has been granted a certificate of registration as a venture capital company under the Securities and Exchange Board of India Act, 1992 ; and
(b) which fulfils all other conditions as may be prescribed in this behalf.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
152. Sub-clause (291) of clause 314 of the Bill defines "venture capital fund" to mean a fund,—
(a) which has been granted a certificate of registration as a venture capital fund under the Securities and Exchange Board of India Act, 1992 ; and
(b) which fulfils all other conditions as may be prescribed in this behalf.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
153. Sub-clause (292) of clause 314 of the Bill defines "venture capital undertaking" to mean such domestic company whose shares are not listed in a recognised stock exchange in India and which is engaged in the business of—
(a) nanotechnology ;
(b) information technology relating to hardware and software development ;
(c) seed research and development ;
(d) bio-technology ;
(e) research and development of new chemical entities in the pharmaceutical sector ;
(f) production of bio-fuels ;
(g) dairy or poultry ;
(h) building and operating composite hotel-cum-convention centre with seating capacity of more than three thousand ;
(i) development of infrastructure facility ; or
(j) any other business as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
154. Sub-clause (297) of clause 314 of the Bill defines "zero coupon bond" to mean a bond issued by any company, fund or scheduled bank in accordance with a scheme notified by the Central Government ; in respect of which no payment and benefit is received or receivable before maturity or redemption from the company, fund or scheduled bank ; and which the Central Government may, by notification, specify in this behalf.
Accordingly, it is proposed to empower the Central Government to frame and notify the scheme in this regard for the purposes of this clause.
155. Clause 316 of the Bill provides that the Board may, subject to the control of the Central Government, make rules for the whole or any part of India for carrying out the purposes of this Code. It has been further provided that in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters namely :—
(a) the ascertainment and determination of any class of income ;
(b) the manner in which and the procedure by which the income shall be arrived at, in the case of—
(i) agriculture income ;
(ii) a person residing outside India ;
(iii) a person whose total income includes income referred to in section 8 ;
(c) the determination of the amount of expenditure allowable under this Code in such manner, to such extent, and on such basis and conditions, as appears to the Board to be proper and reasonable ;
(d) the methods by which an estimate of any income liable to tax, or expenditure liable to deduction, may be made, if such income or expenditure cannot be definitely ascertained, or can be ascertained only with an amount of trouble and expense to the assessee which in the opinion of the Board is unreasonable ;
(e) the form and manner in which any document, application, claim, return or information may be made or furnished and the fees that may be levied in respect of any document, application or claim ;
(f) the class or classes of persons who shall be required to furnish any document, application, claim, return or information in electronic form ;
(g) the form and manner in which a document, application, claim, return or information may be furnished electronically ;
(h) the document, statement, receipt, certificate or report which, regardless of anything to the contrary contained in this Code, may not be furnished along with the return but shall be produced before the Assessing Officer on demand ;
(i) the computer resource or the electronic record to which a document, application, claim, return or information may be transmitted electronically ;
(j) the manner in which any document, application, claim, return or information required to be filed under this Code may be verified ;
(k) the authority, agency or organisation who may receive any application, claim, return or information on behalf of the Board or the Department ;
(l) the procedure to be followed in calculating interest payable by assessees or interest payable by Government to assessees under any provision of this Code, including the rounding off of the period for which such interest is to be calculated in cases where such period includes a fraction of a month, and specifying the circumstances in which and the extent to which petty amounts of interest payable by assessees may be ignored ;
(m) the form and manner in which any appeal or cross-objection may be filed under this Code and the manner in which intimation of any such order as is referred to in clause (d) of sub-section (3) of section 184 may be served ;
(n) the circumstances in which, the conditions subject to which and the manner in which, the Commissioner (Appeals) may permit an appellant to produce evidence which he did not produce or which he was not allowed to produce before the Assessing Officer ;
(o) the fee payable in respect of any appeal, application, reference or ruling ;
(p) the maintenance of a register of persons referred to in section 270, other than legal practitioners or accountants, practicing before income-tax authorities and for the constitution of and the procedure to be followed by the authority referred to in sub-section (4) of that section ;
(q) the issue of certificate verifying the payment of tax by assessees ;
(r) the authority to be prescribed for any of the purposes of this Code ;
(s) the procedure for giving effect to the terms of any agreement for the granting of relief in respect of double taxation or for the avoidance of double taxation which may be entered into by the Central Government under this Code ; and
(t) any other matter which by this Code is to be, or may be, prescribed.
The aforesaid clause also provides that any order made, proceeding initiated or conducted, or liability or obligation discharged, in accordance with the Rules framed under this section shall be deemed to be duly made, initiated, conducted or discharged, in accordance with the provisions of the Code. It has also been provided that the power to make rules conferred by this clause shall include the power to give retrospective effect, from a date not earlier than the date of commencement of the Code, to the rules or any of them and, unless the contrary is permitted, no retrospective effect shall be given to any rule so as to prejudicially affect the interests of assessees.
Accordingly, it is proposed to empower the Board to make rules and notifications in this regard for the purposes of this clause.
156. Paragraph 93 of the Fifth Schedule of the Bill provides that the Board may prescribe the form to be used for any order, notice, warrant or certificate to be issued under the Fifth Schedule.
Accordingly, it is proposed to empower the Board to prescribe forms in this regard for the purposes of this clause.
157. Paragraph 4 of the Sixth Schedule of the Bill provides that the amount of family pension received by the widow or children or nominated heirs, as the case may be, of a member of the armed forces (including para-military forces) of the Union, if the death of such member has occurred in the course of operational duties, in such circumstances and subject to such conditions, as may be prescribed.
Accordingly, it is proposed to empower the Central Government to frame the scheme and make rules in this regard for the purposes of this clause.
158. Paragraph 5 of the Sixth Schedule of the Bill provides that income not included any income arising to a foreign company, as the Central Government may, by notification, specify in this behalf, by way of royalty or fees for technical services received in pursuance of an agreement entered into with the Government for providing services in or outside India in projects connected with security of India.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
159. Paragraph 6 of the Sixth Schedule of the Bill provides that income not included in the total income shall also comprise any income of the European Economic Community (established by the Treaty of Rome of 25th March, 1957), derived in India by way of interest, dividends or capital gains from investments made out of its funds under such scheme as the Central Government may, specify in this behalf.
Accordingly, it is proposed to empower the Central Government to frame the scheme and issue notification in this regard for the purposes of this clause.
160. Paragraph 10 of the Sixth Schedule of the Bill provides that income not included in the total income shall also comprise any income, the nature and extent, accruing to a body or authority which is notified by the Central Government in this behalf if such body or authority—
(a) has been established or constituted or appointed under—
(i) a treaty or an agreement entered into by the Central Government with two or more countries ; or
(ii) a convention signed by the Central Government ; and
(b) is not established, constituted or appointed for the purposes of profit.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
161. Paragraph 12 of the Sixth Schedule of the Bill provides that income not included in the total income shall also comprise any payment from a provident fund to which the Provident Funds Act, 1925, applies or from any other provident fund set up by the Central Government and notified by it in this behalf.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
162. Paragraph 27 item (a) of the Sixth Schedule of the Bill provides that income not included in the total income shall also comprise any amount received by way of pension by an individual, who had been in the service of the Central Government or State Government and has been awarded "Param Vir Chakra" or "Maha Vir Chakra" or "Vir Chakra" or such other gallantry award as the Central Government may, by notification, specify in this behalf.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
163. Paragraph 31 of the Sixth Schedule of the Bill provides that income not included in the total income shall also comprise any amount of interest on bonds issued by a local authority or by a State Pooled Finance Entity as a public sector company and specified by the Central Government by notification.
Accordingly, it is proposed to empower the Central Government to make rules and issue notification in this regard for the purposes of this clause.
164. Paragraph 34 of the Sixth Schedule of the Bill provides that income not included in the total income shall also comprise any income and amount thereof notified by the Central Government accruing to any person from any international sporting event held in India, if such event is approved by the international body regulating the international sport relating to such event ; has participation of more than two countries ; and is notified by the Central Government for the purposes of this paragraph.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
165. Paragraph 41 of the Sixth Schedule of the Bill provides that income not included in the total income shall also comprise any payment received by any employee, from one or more employers, as the cash equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement, to the extent the aggregate of such amount does not exceed the limit as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
166. Paragraph 42 of the Sixth Schedule of the Bill provides that income not included in the total income shall also comprise any payment received by any employee, from one or more employers, by way of gratuity on his retirement, or on his becoming incapacitated prior to such retirement, or on termination of his employment ; or any gratuity received by the family on the death of the employee, to the extent the aggregate of such amount does not exceed the limit as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
167. Paragraph 43 of the Sixth Schedule of the Bill provides that income not included in the total income shall also comprise any amount received by any employee, from one or more employers, in connection with his voluntary retirement or termination of his service or voluntary separation under any scheme framed for this purpose in accordance with such rules as may be prescribed, to the extent the aggregate of such amount does not exceed the limit as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
168. Paragraph 47 of the Sixth Schedule of the Bill provides that income not included in the total income shall also comprise income of a co-operative society from such activities and to such extent as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
169. Paragraph 22 of the Seventh Schedule of the Bill provides that any electoral trust so approved by the Board in accordance with the scheme made in this regard by the Central Government, shall not be liable to income-tax, if ninety five per cent. of the aggregate of all voluntary contributions received by it during the financial year and the surplus, if any, brought forward from any preceding financial year is distributed to political parties.
Accordingly, it is proposed to empower the Central Government to frame the scheme in this regard for the purposes of this clause.
170. Paragraph 24 of the Seventh Schedule of the Bill provides that any corporation established by the Central or State Government for promoting the interests of the members of a minority community notified as such by the Central Government, shall not be liable to income-tax.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
171. Paragraphs 3 and 4 of the Eighth Schedule of the Bill provides that the profits of the business of insurance other than life insurance shall be the profits disclosed in the annual accounts, copies of which are required to be furnished under the Insurance Act, 1938, to the Controller of Insurance. Such profits shall also be decreased by such amount carried over to a reserve for unexpired risks as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
Paragraph 11 of the Eighth Schedule of the Bill provides that the amount of common costs (including depreciation) attributable to the business of insurance shall be determined in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
172. Paragraph 6 of the Ninth Schedule of the Bill provides that the amount of common costs (including depreciation) attributable to the special source and presumed to have been allowed under paragraph 4 thereof shall be determined in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
173. Paragraph 7 of the Tenth Schedule of the Bill provides that the amount of common costs (including depreciation) attributable to the business of operating a qualifying ship and any other business shall be determined in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
174. Paragraph 14 of the Tenth Schedule of the Bill provides that the Board may make rules for the purposes of computation of income from the business of operating a qualifying ship in respect of the following :—
(a) method and time for opting into the tonnage income scheme and the period for, and circumstances under, which the option shall remain in force ;
(b) circumstances under which a company may be excluded from the tonnage income scheme ;
(c) such other conditions for applicability of tonnage income scheme having regard to the need for generating internal accruals for acquiring new ships and training of crews ;
(d) limits for charters of tonnage ;
(e) prevention of abuse of the tonnage income scheme, having regard to the need to ensure that no transaction or arrangement results, or but for the rules prescribed hereunder, would have resulted in a tax advantage being obtained for—
(i) a person other than a qualifying shipping company ; or
(ii) a qualifying shipping company in respect of its activities other than its business of operating a qualifying ship ;
(f) valuation of goods or services where these are transferred between the business of operating a qualifying ship and any other business carried on by a qualifying shipping company ;
(g) determination of arm’s length price of the business transactions if the arrangement of transactions results in abuse of the tonnage income scheme.
It is proposed to empower the Board to make rules in this regard for the purposes of this clause.
176. Paragraph 14 of the Tenth Schedule of the Bill further provides that the ‘deemed tonnage’ in a case where an arrangement has been entered into by the qualifying company for purchase of slots, slot charter or sharing of a qualifying ship, calculated in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
177. Paragraph 3 of the Eleventh Schedule of the Bill provides that for the purpose of computing the profits of the business of mineral oil or natural gas, the amount of business expenditure shall be the aggregate of the amounts specified therein, payment to Site Restoration Account maintained in State Bank of India in accordance with the Scheme as may be prescribed.
Accordingly, it is proposed to empower the Central Government to frame the scheme in this regard for the purposes of this clause.
178. Paragraph 6 of the Eleventh Schedule of the Bill provides that the amount of common costs including depreciation attributable to the business of mineral oil or natural gas and any other business shall be determined in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
179. Paragraph 7 of the Twelfth Schedule of the Bill provides that the amount of common costs (including depreciation) attributable to the specified business referred to that Schedule shall be determined in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
180. Paragraph 1 of the Thirteenth Schedule of the Bill provides that the provisions of that Schedule shall apply to the specified businesses enumerated therein which fulfil the prescribed conditions and are notified by the Central Government in the Official Gazette.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
181. Paragraphs 1, item (j) of the Thirteenth Schedule of the Bill further provides that ‘specified business’ for the purposes of that Schedule shall, inter alia, include the business of developing and building a housing project under a scheme for slum redevelopment or rehabilitation framed by the Central Government or a State Government, as the case may be, and notified by the Board in this behalf in accordance with the guidelines as may be prescribed.
Accordingly, it is proposed to empower the Central Government and the State Governments to make the scheme and guidelines and the Board to issue notifications and prescribe rules in this regard for the purposes of this clause.
182. Paragraph 8 of the Thirteenth Schedule of the Bill provides that the amount of common costs including depreciation attributable to the specified business and any other business referred to in that Schedule shall be determined in such manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
183. Paragraph 9 of the Thirteenth Schedule of the Bill provides that the provisions of that Schedule shall apply to the business referred to in paragraph (1) therein, which fulfils the conditions specified therein along with any other condition as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
184. Item (ii) and (iii) of paragraph 9 of the Thirteenth Schedule of the Bill provides that the provisions of that Schedule shall apply to the specified business of laying and operating a cross country natural gas or crude or petroleum oil pipeline network for distribution, including storage facilities being an integral part of the network, which fulfils the condition that it has been approved by the Petroleum and Natural Gas Regulatory Board established under sub-clause (1) of clause 3 of the Petroleum and Natural Gas Regulatory Board Act, 2006 and notified by the Central Government in the Official Gazette in this behalf.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
185. Paragraph 5 of the Fourteenth Schedule of the Bill provides that the amount of common costs (including depreciation) attributable to the business specified in column 2 of the Table in paragraph 1 and presumed to have been allowed under paragraph 3 shall be determined in the prescribed manner.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
186. Part I of the Sixteenth Schedule of the Bill specifies the contributions or donations eligible for one hundred seventy-five per cent. deduction. This includes any research association or National Laboratory or university, college or other institution if it is engaged in carrying on scientific research and development ; and such association, university, college or other institution is approved in this behalf subject to conditions and in accordance with such guidelines and manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
187. Part II of the Sixteenth Schedule of the Bill specifies the contributions or donations eligible for one hundred twenty-five per cent. deduction. This includes any research association or a university, college or other institution if it is engaged in carrying on statistical research or research in social science; and such association, university, college or other institution is approved in this behalf subject to conditions and in accordance with such guidelines and as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
188. Part III of the Sixteenth Schedule of the Bill specifies the contributions or donations eligible for one hundred per cent. deduction. This includes any University or educational institution of national eminence as may be approved by the prescribed authority in this behalf; the Government or any such local authority, institution or association as may be approved in this behalf by the Central Government, to be utilised for the purpose of promoting family planning; the Indian Olympic Association or to any other association or institution established in India, as the Central Government may, having regard to the prescribed guidelines, by notification, specify in this behalf for— (a) the development of infrastructure for sports and games; or (b) the sponsorship of sports and games, in India and where the sum is paid by an assessee, being a company; a rural development fund set up and notified by the Central Government; the National Urban Poverty Eradication Fund set up and notified by the Central Government.
Accordingly, it is proposed to empower the Central Government to make rules and issue notifications in this regard for the purposes of this clause.
189. Part D of the Sixteenth Schedule of the Bill specifies the contributions or donations eligible for fifty per cent. deduction. This includes a temple, mosque, gurdwara, church or any other place as is notified by the Central Government to be of historic, archaeological or artistic importance or to be a place of public worship of renown throughout a State or States, to be utilised for the renovation or repair of such temple, mosque, gurdwara, church or other place.
Accordingly, it is proposed to empower the Central Government to issue notification in this regard for the purposes of this clause.
190. Paragraph 3 of Part-I of the Nineteenth Schedule of the Bill provides that in order that a provident fund may receive and retain approval, it shall, subject to the provisions of Paragraph 5, satisfy the conditions set out thereunder and any other conditions which the Board may, by rules, specify. It further provides that the Board may by rules specify the conditions and restrictions in respect of portion of balance to the credit of employees payable to him.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
191. Paragraph 4 of Part-I of the Nineteenth Schedule of the Bill further provides that where approval is accorded to a provident fund with existing balances, an account shall be made of the fund up to the day immediately preceding the day on which the approval takes effect, showing the balance to the credit of each employee on such day, and containing such further particulars as the Board may prescribe.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
192. Paragraph 6 of Part-I of the Nineteenth Schedule of the Bill provides that that portion of the annual accretion in any financial year to the balance at the credit of an employee participating in an approved provident fund as consists of – (a) contributions made by the employer in excess of twelve percent of the salary of the employee or one lakh rupees, whichever is less; and (b) interest credited on the balance to the credit of the employee in so far as it is allowed at a rate exceeding such rate as may be fixed by the Central Government in this behalf by notification, shall be deemed to have been received by the employee in that financial year and shall be included in total income for that financial year, and shall be liable to income-tax.
Accordingly, it is proposed to empower the Central Government to fix the rate and issue notification in this regard for the purposes of this clause.
193. Paragraph 11 of Part-I of the Nineteenth Schedule of the Bill provides that the accounts of an approved provident fund shall be maintained by the trustees of the fund and shall be in such form and for such periods, and shall contain such particulars, as the Board may prescribe. It is further provided that the accounts shall be open to inspection at all reasonable times by income-tax authorities, and the trustees shall furnish to the Assessing Officer such abstracts thereof as the Board may prescribe.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
194. Paragraph 13 of Part-I of the Nineteenth Schedule of the Bill provides that an employer objecting to an order of the Commissioner refusing to approve or an order withdrawing approval from a provident fund, may appeal, within sixty days of such order, to the Board. The Appeal shall be in such form and shall be verified in such manner and shall be subject to the payment of such fee as the Board may prescribe.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
195. Paragraph 15 of Part-I of the Nineteenth Schedule of the Bill provides that in addition to any power conferred by that Part, the Board may make rules—
(a) prescribing the statements and other information to be submitted along with an application for approval;
(b) limiting the contributions to an approved provident fund by employees of a company who are shareholders in the company;
(c) regulating the investment or deposit or the moneys of an approved provident fund;
(d) providing for the assessment by way of penalty of any consideration received by an employee for an assignment of, or creation of a charge upon, his beneficial interest in an approved provident fund;
(e) determining the extend to and the manner in which exemption from payment of tax may be granted in respect of contributions and interest credited to the individual accounts of employees in a provident fund from which approval has been withdrawn; and
(f) generally, to carry out the purposes of this part and to secure such further control over the approval of provident funds and the administration of approved provident funds as it may deem requisite.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
196. Paragraph 3 of Part-II of the Nineteenth Schedule of the Bill provides that in order that a superannuation fund may receive and retain approval, it shall satisfy the conditions set out therein and any other conditions which the Board may, by rules, prescribe.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
197. Paragraph 6 of Part-II of the Nineteenth Schedule of the Bill provides that where any contributions made by an employer, including interest on contributions, if any, are paid to any employee during his lifetime, in circumstances other than those referred to in paragraph (13 of the Sixth Schedule, tax on the amounts so paid shall be deducted at the average rate of tax at which the employee was liable to tax during the preceding three years or during the period, if less than three years, when he was a member of the fund, and shall be paid by the trustees to the credit of the central government within the prescribed time and in such manner as the Board may direct.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
197. Paragraph 8 of Part-II of the Nineteenth Schedule of the Bill provides that an employer objecting to an order of the Commissioner refusing to accord approval to a superannuation fund of an order withdrawing such approval may appeal, within sixty days of such order, to the Board. The appeal shall be in such form and shall be verified in such manner and shall be subject to the payment of such fee as may be prescribed.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
199. Paragraph 10 of Part-II of the Nineteenth Schedule of the Bill provides that in addition to any power conferred by that Part, the Board may make rules—
(a) prescribing the statements and other information to be submitted along with an application for approval ;
(b) prescribing the returns, statements, particulars, or information which the Assessing Officer may require from the trustees of an approved superannuation fund or from the employer ;
(c) limiting the ordinary annual contribution and any other contributions to an approved superannuation fund by an employer ;
(d) regulating the investment or deposit of the moneys of an approved superannuation fund ;
(e) providing for the assessment by way of penalty of any consideration received by an employee for any assignment of, or creation of a charge upon, his beneficial interest in an approved superannuation fund ;
(f) determining the extent to , and the manner in , which exemption from payment of tax may be granted in respect of any payment made from a superannuation fund from which approval has been withdrawn ;
(g) providing for the withdrawal for approval in the case of a fund which ceases to satisfy the requirements of this Part or of the rules made thereunder ; and
(h) generally, to carry out the purposes of this Part and to secure such further control over the approval of superannuation funds and the administration of approved superannuation funds as it may deem requisite.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
200. Paragraph 7 of Part-III of the Nineteenth Schedule of the Bill, inter alia, provides that in order that a gratuity fund may receive and retain approval, it shall satisfy the conditions set out below and any other conditions which the Board may, by rules, prescribe—
(a) the fund shall be a fund established under an irrevocable trust in connection with a trade or undertaking carried on in India, and not less than ninety per cent. of the employees shall be employed in India ;
(b) the fund shall have for its sole purpose the provision of gratuity to employees in the trade or undertaking on their retirement at or after a specified age or on their becoming incapacitated prior to such retirement or on termination of their employment after a minimum period of service specified in the rules of the fund on to the widows, children or dependants of such employees on their death ;
(c) the employer in the trade or undertaking shall be a contributor to the fund ; and
(d) all benefits granted by the fund shall be payable only in India.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
201. Paragraph 9 of Part-III of the Nineteenth Schedule of the Bill provides that an employer objecting to an order of the Commissioner refusing to accord approval to a gratuity fund or an order withdrawing such approval may appeal, within sixty days of such order, to the Board. The appeal shall be in such form and shall be verified in such manner and shall be subject to the payment of such fee as may be prescribed.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
202. Paragraph 9 of Part-III of the Nineteenth Schedule of the Bill provides that in addition to any power conferred by that Part, the Board may make rules—
(a) prescribing the statements and other information to be submitted along with an application for approval ;
(b) limiting the ordinary annual and other contributions of an employer to the fund ;
(c) regulating the investment or deposit of the moneys of an approved gratuity fund ;
(d) providing for the assessment by way of penalty of any consideration received by an employee for any assignment of, or creation of a charge upon, his beneficial interest in an approved gratuity fund ;
(e) providing for the withdrawal for approval in the case of a fund which ceases to satisfy the requirements of this part or of the rules made thereunder ;
(f) generally, to carry out the purposes of this Part and to secure such further control over the approval of gratuity funds and the administration of gratuity funds as it may deem requisite.
Accordingly, it is proposed to empower the Board to make rules in this regard for the purposes of this clause.
203. Paragraph 7 of the Twentieth Schedule of the Bill provides that a resident assessee shall furnish the details of its investment and interest in any entity outside India in such form and manner as may be prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
204. Paragraph 22 of the Twentieth Schedule of the Bill provides that an order under the Tenth Schedule in relation to a qualifying shipping company’s application for opting for tonnage tax scheme, passed by an authority as may be prescribed, shall be an appealable order before Commissioner (Appeals).
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
205. Paragraph 3 of the Twenty-Second Schedule, inter alia, provides that the deferred revenue expenditure allowance shall be allowable for ten consecutive financial years, the first such financial year of allowability being the year in which such amount is actually paid, in case of expenditure incurred by a person resident in India wholly and exclusively on any operations relating to prospecting for any mineral or the development of a mine or other natural deposit of any mineral, to the extent prescribed.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
206. Paragraph 3 of the Twenty Second Schedule further provides that in the case of expenditure incurred by a person resident in India wholly and exclusively on any operations relating to prospecting for any mineral or the development of a mine or other natural deposit of any mineral, to the extent as may be prescribed, the deferred revenue expenditure allowance shall be allowable for ten consecutive financial years, the first such financial year of allowability being the year in which such amount is actually paid. Further, the deferred revenue expenditure allowance shall be allowable for six consecutive financial years, the first such financial year of allowability being the year of commencement of the business or extension of the business or setting up of new business, as the case may be, in case of any preliminary expenditure incurred—
(a) before the commencement of the business; or
(b) in connection with the extension of the business; or
(c) in connection with the setting up of new business, which shall be such as may be prescribed having regard to capital employed in the business and cost of the project.
Accordingly, it is proposed to empower the Central Government to make rules in this regard for the purposes of this clause.
207. The rules and scheme made and notification issued under the proposed legislation shall be required to be laid before the Parliament.
208. The matters in respect of which rules or scheme may be made or notifications issue are matters of procedure and administrative detail and it is not practicable to provide for them in the Bill itself. The delegation of legislative power is, therefore, of a normal character.
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