Dear friends,
Please find below list of retrospective & prospective amendments proposed by Finance Bill, 2012.
| List of retrospective amendments proposed by Finance Bill, 2012 | ||
| Amendment proposed in Section | Description of the amendment | Effective date of amendment |
| Income tax Act, 1961 | ||
| 2(14) | Insertion of Explanation in the definition of the 'Capital asset' | 01-Apr-62 |
| 2(16) | Inclusion of 'Director' in the definition of 'Commissioner' | 01-Apr-88 |
| 2(47) | Insertion of Explanation in the definition of the 'Transfer' | 01-Apr-62 |
| 9(1)(i) | Insertion of Explanations in the provisions for 'Income deemed to accrue or arise in India' | 01-Apr-62 |
| 9(1)(vi) | Insertion of Explanations in the provisions for taxability of royalty income | 01-Jun-76 |
| 10(23C) | Insertion of a proviso to make applicable the provisions of Sec. 2(15) | 01-Apr-09 |
| 13(8) | New insertion to restrict benefit of Sec. 11 & 12 if provisions of Sec. 2(15) are attracted | 01-Apr-09 |
| 35AD(6A) | Allowability of deduction even if operation of the hotel business is transferred to another person while continuing to own the hotel | 01-Apr-11 |
| 44AD(6) | Exclusion of certain persons from the applicability of the presumptive taxation scheme | 01-Apr-11 |
| 49(1)(iii)(e) | Additions in the list for determination of cost with reference to certain modes of acquisition | 01-Apr-99 |
| 56(2)(vii), Explanation (e) | Insertion of HUF in the meaning of 'relative' | 01-Oct-09 |
| 90, Explanation 3 | Determination of meaning with reference to the notification | 01-Oct-09 |
| 90A -Explanation 3 | Determination of meaning used in treaty with reference to the notification | 01-Jun-06 |
| 92B | Change in the meaning of 'International transaction' | 01-Apr-02 |
| 92C(2), Explanation | Insertion of explanation for applicability of threshold limit of 3% | 01-Oct-09 |
| 92C(2A) | The option to take the benefit of first proviso of Section 92C(2) (as stood before amendment by Finance Act, 2009) is not available if price at which international transaction took place exceeds 5% | 01-Apr-02 |
| 92CA(2B) | If report under Sec. 92E is not furnished in respect of international transaction, such transaction shall be automatically referred to TPO | 01-Jun-02 |
| 111A(1) | Tax rates for taxability of short term capital gain from transfer of shares, on which STT has been paid, increased from '10%' to '15%' | 01-Apr-09 |
| 143(3), IIIrd Pro | Insertion of a proviso to make applicable the provisions of Sec. 2(15) | 01-Apr-09 |
| 144C(4) | In case of reference to DRP, the assessment shall be completed within the specified period and the period specified for assessment in case of search shall have an overriding effect | 01-Oct-09 |
| 144C(8), Explanation | Authorisation of DRP to increase the assessment | 01-Apr-09 |
| 144C(13) | In case of reference to DRP, the assessment shall be completed within the specified period and the period specified for assessment in case of search shall have an overriding effect | 01-Oct-09 |
| 195(1),Explanation s. 1 & 2 | The provisions of this section shall be applicable to a non-resident also | 01-Apr-62 |
| 201(3)(ii) | The specified period for deeming the payer as assessee in default is increased from 4 years to 6 years | 01-Apr-10 |
| 234D, Explanation 1,2 | Change in the provision for interest on excess refund | 01-Jun-03 |
| 246A(1)(ba) | Change in the provision of 'appealable orders before CIT(A) | 01-Oct-09 |
| 253(1)(d) | Change in the provisions for 'appeal to the Appellate Tribunal' | 01-Oct-09 |
| 292CC | New insertion - New provisions for 'Authorisation and assessment in case of search or requisition.' | 001-Apr-76 |
| Wealth tax Act, 1957 | ||
| 45(k) | Exemption to RBI from payment of wealth tax | 01-Apr-57 |
| List of prospective amendments proposed by Finance Bill, 2012 | ||
| Amendment proposed in Section | Description of the amendment | Effective date of amendment |
| Income tax Act, 1961 | ||
| 2(19AA) | Amendment in the conditions for demerger | 01-Apr-13 |
| 10(10D) | Amendment in provisions for claiming exemption in respect of sum received under life insurance policy | 01-Apr-13 |
| 10(23FB) | Change in definition of 'Venture Capital Undertaking' | 01-Apr-13 |
| 10(48) | New exemption for income arising from sale of crude oil to a foreign company | 01-Apr-12 |
| 32(1)(iia) | Additional depreciation to power generation undertakings | 01-Apr-13 |
| 35(2AB)(5) | Extension of sunset clause for deduction in respect of expenditure on scientific research till March 31, 2017 | 01-Apr-13 |
| 35AD(1A) | Deduction upto 150% of capital expenditure if incurred by assessee engaged in specified business | 01-Apr-13 |
| 35AD(5) | Additions in the list of specified businesses | 01-Apr-13 |
| 35AD(8)( c) (ix) | Additions in the list of specified businesses | 01-Apr-13 |
| 35CCC | Allowability of expenditure incurred on agriculture extension project | 01-Apr-13 |
| 35CCD | Allowability of expenditure incurred on skill development project | 01-Apr-13 |
| 40 | Allowability of expenditure if TDS is not deducted therefrom provided assessee is not deemed to be in default 01-Apr-13 | |
| 40A(2) | No disallowance if transaction is at ALP and change in the meaning of prescribed persons | 01-Apr-13 |
| 44AB(a) &(b) | Increase in threshold limit for Audit | 01-Apr-13 |
| 44AB,Explanation .(ii) | Change in the meaning of 'specified date' | 01-Apr-12 |
| 44AD, Explanation .(b)(ii) | Increase in threshold limit for applicability of the provisions | 01-Apr-13 |
| 47(vii)(a) | Amendment in the conditions for exemption available in case of amalgamation | 01-Apr-13 |
| 50D | New insertion - FMV deemed to be full value of consideration in certain cases | 01-Apr-13 |
| 54B | Deduction available to HUF also in case of rolling over the capital gain arising from transfer of agriculture land | 01-Apr-13 |
| 54GB | New insertion - Capital gain on transfer of residential property not to be charged in certain cases | 01-Apr-13 |
| 55A(a) | Amendment proposed in the condition for making a reference to Valuation officer | 01-Jul-12 |
| 56(2)(viib) | Taxability as gift if shares are issued at a price which exceeds the face value of the shares | 01-Apr-13 |
| 68 | When share application capital shall not be deemed to be unexplained money | 01-Apr-13 |
| 80A(6), Explanation (iii) | Insertion in explanation for the meaning of 'market value' | 01-Apr-13 |
| 80C(3),(3A) | Allowability of deduction if premium in respect of policies taken after April 1, 2012 does not exceed 10% of sum assured | 01-Apr-13 |
| 80D(1),(2),(2A),(2B),(4) | Allowability of deduction in respect of payment made for preventive health check-up and reduction of age of senior citizens to 60 years | 01-Apr-13 |
| 80DDB | Reduction of age of senior citizens to 60 years for deduction in respect of medical treatment | 01-Apr-13 |
| 80G (5D) | No deduction in respect of donation if it is paid in excess of Rs. 10,000 in cash | 01-Apr-13 |
| 80GGA(2A) | No deduction in respect of donation for scientific research or rural development if it is paid in excess of Rs. 10,000 in cash | 01-Apr-13 |
| 80-IA(4),(8),(10) | Extension of sunset clause for deduction under Sec. 80-IA by one year and insertion of meaning of 'market value' | 01-Apr-13 |
| 80TTA | New insertion - Deduction in respect of interest on deposits in savings account | 01-Apr-13 |
| 90(2A) | Treaty benefit not available if provisions of GAAR are invoked | 01-Apr-13 |
| 90(4) | TRC is mandatory to get treaty benefit | 01-Apr-13 |
| 90A(2A) | Treaty benefit not available if provisions of GAAR are invoked | 01-Apr-13 |
| 90A(4) | TRC is mandatory to get treaty benefit | 01-Apr-13 |
| 92(2), (2A) & (3) | Applicability of provisions for transfer pricing to specified domestic transactions | 01-Apr-13 |
| 92BA | New insertion - Meaning of 'specified domestic transaction' | 01-Apr-13 |
| 92C(2),IInd pro. | The threshold limit of 3% variation re-inserted | 01-Apr-13 |
| 92C(2B) | Restriction on power of Assessing officer to increase the taxable income if assessment completed before 1 October, 2009 | 01-Jul-12 |
| 92C,92D & 92E | Insertion of word 'specified domestic transaction' | 01-Apr-13 |
| 92CA(1),(2) & (3) | Insertion of word 'specified domestic transaction' | 01-Apr-13 |
| 92CA(2C) | Restriction on power of Assessing officer to increase the taxable income if assessment completed before 1 July, 2012 | 01-Jul-12 |
| 92CC & 92CD | New insertion - Introduction of 'Advance Pricing Agreement' | 01-Jul-12 |
| Ch.XA 95 to 102 | New insertion - Introduction of 'General Anti-Avoidance Rules' | 01-Apr-13 |
| 115A | New insertion - Taxability of interest income accruing from an Indian Company engaged in specified business | 01-Jul-12 |
| 115BBA | Taxability of non-resident entertainer under this provision and increase the taxability from '10%' to '20%' | 01-Apr-13 |
| 115BBD (1) | Dividend received from foreign company continues to be taxable at the rate of 15% | 01-Apr-13 |
| 115BBE | Taxability of income as referred in Sec. 68 to 69D at flat rate of 30% | 01-Apr-13 |
| 115JB (2) | Applicability of MAT in case of companies exempted from preparing financial statements in accordance with Schedule VI | 01-Apr-13 |
| 115JC | Applicability of AMT in case of every tax payer other than a company | 01-Apr-13 |
| 115JD(1) | Applicability of AMT in case of every tax payer other than a company | 01-Apr-13 |
| 115JE | Applicability of AMT in case of every tax payer other than a company | 01-Apr-13 |
| 115JEE | Immunity from AMT to an individual and HUF if adjusted total income is less than Rs. 25 lakhs | 01-Apr-13 |
| 115JF | Applicability of AMT in case of every tax payer other than a company | 01-Apr-13 |
| 115-O(1A)(i) | Reducing the cascading effect of dividend distribution tax | 01-Jul-12 |
| 115U | Change in the provision for taxability of income received from venture capital companies and funds | 01-Apr-13 |
| 115U, Explanation . 2 | Change in the provision for taxability of income received from venture capital companies and funds | 01-Jul-12 |
| 115VG(3), Table | Increase in the presumptive rate for daily tonnage income | 01-Apr-13 |
| 139(1) | The provision for mandatorily filing of return of income if assessee has any asset which is located outside India | 01-Apr-12 |
| 140A | Allowability of AMT tax credit in computing the self-assessment tax | 01-Apr-13 |
| 143(1D) | Processing of return is not necessary if notice for scrutiny assessment is issued under Sec. 143(2) | 01-Jul-12 |
| 144BA | New insertion - Reference to Commissioner in certain cases | 01-Apr-13 |
| 144C(14A) | New insertion - No reference can be made to DRP if assessment is completed with prior approval of CIT under Sec. 144BA | 01-Apr-13 |
| 147 | The limit of 4 years for re-opening of assessment is not applicable in relation to asset located outside India. Further, addition in the circumstances when an income is deemed to have escaped assessment | 01-Jul-12 |
| 149 | Increase in the time limit to 16 years when a notice can be issued for re-assessment in respect of asset located outside India | 01-Jul-12 |
| 153 | Increase in time limit for completion of assessment | 01-Jul-12 |
| 153, Explanation . 1 Cl.(ix) | The period to be excluded, in respect of the period specified for exchange of information, is increased from 'six months' to 'one year' | 01-Apr-13 |
| 153A | Insertion of a proviso to authorise the assessing officer so as not to issue the notice for re-assessing the income in certain cases | 01-Jul-12 |
| 153B(1) | Increase in time limit for completion of assessment in case of search | 01-Jul-12 |
| 153B(1),Explanation . Cl(ix) | Increase in time limit for completion of assessment in case of search | 01-Apr-13 |
| 153C | Insertion of a proviso to authorise the assessing officer so as not to issue the notice for re-assessing the income of a person, other than the person searched, in certain cases | 01-Jul-12 |
| 154 | Rectification of mistake identified in processing of statement of the TDS | 01-Jul-12 |
| 156, Proviso | The sum determined in the intimation issued at the time of processing of statement of TDS shall be deemed to be notice of demand | 01-Jul-12 |
| 193(v) | Increase in threshold limit to Rs. 5,000 for deduction of TDS from payment of interest on debentures | 01-Jul-12 |
| 194E | Any amount payable to an entertainer shall be subject to TDS and the rate of TDS is increased from '10%' to '20%' | 01-Jul-12 |
| 194J(1)(ba) | Any remuneration payable to a director shall be subject to TDS if no tax deducted under Sec. 192 from such payment | 01-Jul-12 |
| 194LA | The threshold limit for deduction of tax at source is increased from Rs. 1,00,000 to Rs. 2,00,000 | 01-Jul-12 |
| 194LAA | Tax deduction at source from payment for purchase of an immovable property | 01-Oct-12 |
| 194LC | New insertion - Deduction of tax from payment of interest by Indian Companies engaged in certain companies | 01-Jul-12 |
| 195(1) | Exclusion of interest as referred under Sec. 194LB and 194LC from the ambit | 01-Apr-12 |
| 195(7) | The Board may specify a class of person in respect of whom an application to be filed for determination of income from which tax to be deducted at source | 01-Jul-12 |
| 197A(1C) | The age limit to seek exemption from deduction of tax at source reduced from 65 years to 60 years | 01-Jul-12 |
| 201 | The payer is not deemed to be in default if payee declares the amount received from such payer in the return of income and pays the taxes due on such income. | 01-Jul-12 |
| 201, Explanation . | Insertion of explanation to provide the meaning of an 'accountant' | 01-Jul-12 |
| 204(iv) | Addition in the meaning of 'person responsible for paying' | 01-Jul-12 |
| 206C | Insertion of provision for collection of tax at source in case of sale of bullion, jewellery and specified minerals. Further, consequent changes in the provisions when an assessee is not deemed to be in default and change in meaning of buyer | 01-Jul-12 |
| 207(1) & (2) | An assessee, whose age is 60 years and above, shall not be liable to pay advance tax if he does not any business income | 01-Apr-12 |
| 209(1)(d), proviso | While computing the advance tax the amount of TDS or TCS shall not be deducted if it has not been deducted or collected by the person responsible therefore. | 01-Apr-12 |
| 234A(1)(vi) | In computing the interest the AMT credit shall be reduced. | 01-Apr-13 |
| 234B(1),Explanation . 1,Cl.(v) | In computing the interest the AMT credit shall be reduced. | 01-Apr-13 |
| 234C(1) | In computing the interest the AMT credit shall be reduced. | 01-Apr-13 |
| 234E | New insertion - Fees for default in furnishing statement of TDS/TCS | 01-Jul-12 |
| 245C(1) | Change in the provision for application for settlement of cases | 01-Jul-12 |
| 245Q(2) | Increase in the fees for advance ruling from Rs. 2,500 to Rs. 10,000 | 01-Jul-12 |
| 246A(1) | Change in the provision so that a deductor can appeal against the aggrieved order before CIT(A) | 01-Jul-12 |
| 246A(1) (a) | Change in the provision of 'appealable orders before CIT(A) | 01-Jul-12 |
| 246A(1)(a) | Change in the provision of 'appealable orders before CIT(A) | 01-Apr-13 |
| 246A(1)(b) | Change in the provision of 'appealable orders before CIT(A) | 01-Apr-13 |
| 246A(1)(ba) | Change in the provision of 'appealable orders before CIT(A) | 01-Apr-13 |
| 246A(1)(bb) | Change in the provision of 'appealable orders before CIT(A) | 01-Jul-12 |
| 246A(1)(c ) | Change in the provision of 'appealable orders before CIT(A) | 01-Apr-13 |
| 246A(1)(j)(b) | Change in the provision of 'appealable orders before CIT(A) | 01-Jul-12 |
| 253(1)(e) | Change in the provisions for 'appeal to the Appellate Tribunal' | 01-Apr-13 |
| 253(2A) | Change in the provisions for 'appeal to the Appellate Tribunal' | 01-Jul-12 |
| 253(3A) | Change in the provisions for 'appeal to the Appellate Tribunal' | 01-Jul-12 |
| 253(4) | Change in the provisions for 'appeal to the Appellate Tribunal' | 01-Jul-12 |
| 254(2A) | Change in the provisions for 'order of Appellate Tribunal' | 01-Jul-12 |
| 271, Explanation 7 | Insertion of expression 'specified domestic transaction' | 01-Apr-13 |
| 271AA | Substitution of new section - Penalty for failure to keep and maintain information and document, etc., in respect of certain transactions. | 01-Jul-12 |
| 271AA | Substitute 93 Insertion of expression 'specified domestic transaction' | 01-Apr-13 |
| 271AAA(1) | Amendment in provision for 'penalty where search has been initiated' | 01-Apr-12 |
| 271AAB | New inserting - Penalty where search has been initiated | 01-Jul-12 |
| 271G | Insertion of expression 'specified domestic transaction' | 01-Apr-13 |
| 271H | New insertion - Penalty for failure to furnish statements, etc. | 01-Jul-12 |
| 272A(2) | No penalty under this provision in case of failure to deliver the statement of TDS and TCS. | 01-Jul-12 |
| 273B | Insertion of 271H in the provisions when penalty shall not be imposed | 01-Jul-12 |
| 276C(1) | The threshold limit of amount sought to be evaded so as to prosecute the tax payer has been increased from Rs. 1,00,000 to Rs. 25,00,000. Further, change in the number of years of prosecution | 01-Jul-12 |
| 276CC | The threshold limit of amount sought to be evaded so as to prosecute the tax payer has been increased from Rs. 1,00,000 to Rs. 25,00,000. Further, change in the number of years of prosecution | 01-Jul-12 |
| 277 | The threshold limit of amount sought to be evaded so as to prosecute the tax payer has been increased from Rs. 1,00,000 to Rs. 25,00,000. Further, change in the number of years of prosecution | 01-Jul-12 |
| 277A | Change in the number of years of prosecution | 01-Jul-12 |
| 278 | The threshold limit of amount sought to be evaded so as to prosecute the tax payer has been increased from Rs. 1,00,000 to Rs. 25,00,000. Further, change in the number of years of prosecution | 01-Jul-12 |
| 280A,280B,280C & 280D | New insertion - New provisions for 'Special Courts for trial of offences' | 01-Jul-12 |
| 296 | Change in the provisions for 'Rules and certain notification to be placed before Parliament' | 01-Jul-12 |
| Wealth tax Act, 1957 | ||
| 2(ea)(i)(1) | A residential house, allotted by the company to its employee or director, is not subject to wealth tax if gross annual salary of such employee or director does not exceed Rs. 5,00,000. Such threshold limit is increased to Rs. 10,00,000 | 01-Apr-13 |
| 17(1),(1A) | The limit of 4 years for re-opening of assessment is not applicable in relation to asset located outside India. Further, Increase in the time limit to 16 years when a notice can be issued for re-assessment in respect of asset located outside India | 01-Jul-12 |
| 17A(1),(2) & (3) | Amendment in the provisions for 'time limit for completion of assessment or re-assessment' | 01-Jul-12 |
With regards,
Bipul Kumar
FEMA & Tax Advisory Services
Wisdom Management Consultancy Private Limited
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Reg. Office: B-94/9, Dharni Chamber, Joshi Colony, IP Extension, New Delhi-110092.
+91-9560084833 [Cell]
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This message and any attachment are confidential and may be privileged or otherwise protected from disclosure. If you are not the intended recipient, please telephone or email the sender and delete this message and any attachment from your system and permanently destroy any copies or printouts thereof. If you are not the intended recipient you must not copy this message or attachment or disclose the contents to any other person. Although this email and its attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and Wisdom Management Consultancy Private Limited does not accept any responsibility for any loss or damage arising in any manner whatsoever from its use.
Wisdom Management Consultancy Private Limited is a limited liability company incorporated in India under number U74900DL2011PTC219663. The company's registered office is at B-94/9, Dharni Chamber, Joshi Colony, IP Extension, New Delhi-110092.
Bipul Kumar
FEMA & Tax Advisory Services
Wisdom Management Consultancy Private Limited
------------------------------
Reg. Office: B-94/9, Dharni Chamber, Joshi Colony, IP Extension, New Delhi-110092.
+91-9560084833 [Cell]
------------------------------
This message and any attachment are confidential and may be privileged or otherwise protected from disclosure. If you are not the intended recipient, please telephone or email the sender and delete this message and any attachment from your system and permanently destroy any copies or printouts thereof. If you are not the intended recipient you must not copy this message or attachment or disclose the contents to any other person. Although this email and its attachments are believed to be free of any virus or other defect that might affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure that it is virus free and Wisdom Management Consultancy Private Limited does not accept any responsibility for any loss or damage arising in any manner whatsoever from its use.
Wisdom Management Consultancy Private Limited is a limited liability company incorporated in India under number U74900DL2011PTC219663. The company's registered office is at B-94/9, Dharni Chamber, Joshi Colony, IP Extension, New Delhi-110092.
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