Union Budget 2020 followed by the Finance Bill, 2020 has come up with various amendments relating to direct taxes.
The Finance Bill, 2020 contains 104 clauses to amend the Income Tax Act, 1961. Certain amendments are substantive provisions while some are procedural in nature. Some of the clauses of amendments are consequential in nature which means amendments in other provisions are made due to changes in one provision. The prominent example is the abolishment of Dividend Distribution Tax or DDT. When section 115-O is abolished it has a series of consequences in other sections which referred to 'dividend income referred to in section 115-O'.
The strange clauses of amendments of Finance Bill, 2020 are Clause 14 and Clause 29(A) which has amended section 32AB and section 56(2)(v)/(vi)/(vii) respectively. Section 32AB and section 56(2)(v)/(vi)/(vii) are dead sections when the Finance Bill, 2020 is presented. It is beyond reasonable thinking that legislation proposes to amend those provisions which are not in existence.
Chapter-III of the Finance Bill, 2020 contains the clauses which propose to amend the Income Tax Act, 1961. It begins with clause no. 3 and ends with clause no. 104. A Clause by Clause synopsis of all the clauses of the Finance Bill, 2020 is given in the table mentioned below.
Besides, many provisions have been made applicable from AY 2020-21 itself. One of the prominent amendment related to AY 2020-21 is related to section 115BAA and section 115BAB. These sections were introduced in September 2019 by an Ordinance to provide an option to a domestic company to opt for lower or concessional corporate tax rates if they forego the prescribed conditions. One of the restricted deduction was related to Part-C of Chapter VI-A. However, the Finance Bill,2020 has modified the said restricted deduction. As per the proposed amendment, a domestic company is not entitled to claim any deduction under Chapter VI-A which was earlier restricted to Part-C only. This has been made effective from AY 2020-21. However, the deduction under section 80JJA is allowed. The Finance Bill, 2020 has added one more deduction under Chapter VI-A and it is section 80M. The amendment allows the deduction under section 80M from AY 2020-21 whereas section 80M is proposed to be re-introduced from AY 2021-22. [Refer clause 40, clause 51 and clause 52.]
Besides, many provisions have been made applicable from AY 2020-21 itself. One of the prominent amendment related to AY 2020-21 is related to section 115BAA and section 115BAB. These sections were introduced in September 2019 by an Ordinance to provide an option to a domestic company to opt for lower or concessional corporate tax rates if they forego the prescribed conditions. One of the restricted deduction was related to Part-C of Chapter VI-A. However, the Finance Bill,2020 has modified the said restricted deduction. As per the proposed amendment, a domestic company is not entitled to claim any deduction under Chapter VI-A which was earlier restricted to Part-C only. This has been made effective from AY 2020-21. However, the deduction under section 80JJA is allowed. The Finance Bill, 2020 has added one more deduction under Chapter VI-A and it is section 80M. The amendment allows the deduction under section 80M from AY 2020-21 whereas section 80M is proposed to be re-introduced from AY 2021-22. [Refer clause 40, clause 51 and clause 52.]
Update:
Parliament has
passed the Finance Bill, 2020 with amendments in certain clauses and introduced
certain clauses. Read the Finance Bill, 2020 as passed by the Lok Sabha here.
Comprehensive list of Clause wise Amendments in the Income Tax Act, 1961 by Finance Bill, 2020
Clause
|
Nature
|
Topic
|
Effective from
|
3(i)
|
Amendment of section 2(13A)
|
Definition of Business Trust
amended for unlisted business trusts
|
AY 2021-22
|
3(ii)
|
Amendment of section 2(42A)
|
Period of holding for units of
a segregated portfolios shall be counted from the date of holding
of original units
|
AY 2021-22
|
4(a)
|
Amendment of section 6(1)
|
Period of stay in India
for a non-resident Indian citizen or PIO coming to India on a visit is
reduced to 120 days from 182 days
|
AY 2021-22
|
4(b)
|
Amendment of section 6 (1A)
- New clause inserted
|
An Indian citizen shall be
deemed to be resident in India if he is not liable to tax in any other
country
|
AY 2021-22
|
4(c)
|
Amendment of section 6(6)
|
Condition for NOR changed and
prescribed an Individual or a HUF shall be a NOR if he is a non-resident for
7 out of last 10 years. Other conditions deleted.
|
AY 2021-22
|
5(a)(i)
|
Amendment of section 9(1)(i)-
Explanation 1(a)
|
Provision related to income
accruing or arising under mentioned circumstances are deemed to accrue or
arise in India having significant economic presence is deferred
from section 9(1)(I) till 31.03.2021.
|
AY 2022-23
|
5(a)(ii)
|
Amendment of section 9(1)(i)-
Explanation 2A
|
A new explanation is
substituted to define ‘significant economic presence’ of a non-resident in
India
|
AY 2022-23
|
5(a)(iii)
|
Amendment of section 9(1)(i)-
Explanation 3A, new Explanation inserted
|
Income attributable to the
operations carried out in India is defined to include advertisement income
targeting Indian audience, sale of data collected from a resident, and sale
of goods or services using data collected from a resident
|
AY 2021-22
|
5(a)(iv)
|
Amendment of section 9(1)(i)-New proviso to
Explanation 3A inserted
|
A proviso is inserted in
Explanation 3A to provide that the provisions contained in Explanation 3A
shall also apply to transactions or activities referred to in Explanation
2A
|
AY 2022-23
|
5(a)(v)(i)
|
Amendment of section
9(1)(i)-Second proviso to Explanation 5
|
Second proviso to Expln. 5
refers to Securities and Exchange Board of India (Foreign Portfolio
Investors) Regulations, 2014. These regulations were repealed in Nov 2019 and
hence ‘prior to their repeal’ is inserted.
|
AY 2020-21
|
5(a)(v)(ii)
|
Amendment of section 9(1)(i)- New Third proviso
to Explanation 5
|
A third
proviso in inserted to exclude income from shares of a Company which
derives its value from business in India and is held by a non-resident in
Category-I FPI under Securities and Exchange Board of India (Foreign
Portfolio Investors) Regulations, 2019
|
AY 2020-21
|
5(b)
|
Amendment of section 9(1)(vi)-
Explanation 2
|
‘Royalty’ to include
consideration for the sale, distribution or exhibition of cinematographic
films
|
AY 2021-22
|
6(a)
|
Amendment of section 9A(3)(c)-New proviso
inserted
|
A new proviso is added to
exclude any contribution made by the eligible fund manager in the given
circumstances.
|
AY 2020-21
|
6(b)
|
Amendment of section 9A(3)(j)- First
proviso amended
|
The period of ‘six months’
extended to twelve months in case of an offshore fund. The second condition
for computing the period from the end of the previous year is omitted.
|
AY 2020-21
|
7(I)(A)
|
Amendment of section 10(23C)
|
Provisions for a fund, trust or
institution, university or other educational institution, hospital or other
medical institution rationalized
|
01.06.2020
|
7(I)(B)
|
Amendment of section 10(23C)
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
01.06.2020
|
7(I)(C)
|
Amendment of section 10(23C)
|
Provisions for a fund, trust or
institution, university or other educational institution, hospital or other
medical institution rationalized
|
01.06.2020
|
7(II)(a)
|
Amendment of section 10(23D)
|
Consequential amendment
subsequent to abolishment of DDT
|
AY 2021-22
|
7(II)(b)
|
Amendment of section 10(2FC)
|
Consequential amendment
subsequent to abolishment of DDT
|
AY 2021-22
|
7(II)(c)
|
Amendment of section 10(23FD)
|
Consequential amendment
subsequent to abolishment of DDT
|
AY 2021-22
|
7(II)(d)
|
Amendment of section 10(23FE)-New clause inserted
|
Exemption provided to a wholly
owned subsidiary of ADIA and Sovereign Wealth Fund
|
AY 2021-22
|
7(II)(e)
|
Amendment of section 10(34)
|
Consequential amendment
subsequent to abolishment of DDT-Exemption withdrawn
|
AY 2021-22
|
7(II)(f)
|
Amendment of section 10(35)
|
Consequential amendment
subsequent to abolishment of DDT-Exemption withdrawn
|
AY 2021-22
|
7(II)(g)
|
Amendment of section 10(45)
|
Exemption
of allowances or perquisites to UPSC Chairman withdrawn
|
AY 2021-22
|
7(III)
|
Amendment of section 10(48C)-New clause inserted
|
Exemption provided to Indian
Strategic Petroleum Reserves Limited
|
AY 2020-21
|
8(i) & (ii)
|
Amendment of section 10A
|
Report in Form 56F cannot be
filed along with return of income and shall be filed before the specified
date referred to in section 44AB
|
AY 2020-21
|
9(a)
|
Amendment of section 11(7)
|
Registration of a Trust u/s
12AB is included
|
01.06.2020
|
9(b)
|
Amendment of section 11(7)
|
A trust under section
10(23C)(1) is covered, now section 10(46) is also included.
|
01.06.2020
|
9(c)
|
Amendment of section 11(7)-New provisos
inserted
|
First proviso: Registration of
a Trust to become inoperative if approved under section 10(23C) or notified
under section 10(46).
Second Proviso: Such a Trust
can apply for registration u/s 12AB subject to specified conditions
|
01.06.2020
|
10(I)(A)
|
Amendment of section 12A
|
Provisions related to revalidation
and renewal of registration introduced and shifting to section 12AB
|
01.06.2020
|
10(I)(B)
|
Amendment of section 12A
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
01.06.2020
|
10(II)
|
Amendment of section 12A
|
Provisions for a trust or
institution rationalized
|
01.06.2020
|
11
|
Amendment of section 12AA
|
New sub-section
(5) inserted to provide that Section 12AA shall be inapplicable
from 01.06.2020
|
01.06.2020
|
12
|
Insertion of new section 12AB
|
Contains the procedure of new
or fresh Registration of a Charitable Trust or a Religious Trust
|
01.06.2020
|
13
|
Amendment of section 17(2)(vii)
|
Employer’s contribution
to RPF, NPS and a approved superannuation fund
in excess of Rs. 7.50 lakh in a year and interest thereon shall be taxable as
Income from salary
|
AY 2021-22
|
14
|
Amendment of section 32AB(5)
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
Note: Section 32AB is omitted
from the statute in 1991.
|
AY 2020-21
|
15
|
Amendment of section 33AB(2)
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
16
|
Amendment of section 33ABA(2)
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
17(i)(a)
(A) & (B)
|
Amendment of section 35(1)
|
The Explanation after clause
(iii) shall now to include a company referred to in clause(iia) in additions
to institutions covered under clause (ii) and clause (iii)
|
01.06.2020
|
17(i)(b)
|
Amendment of section 35(1)
|
Two new provisos have been
inserted-namely fifth proviso and sixth proviso.
Fifth proviso: An existing
institution notified under section 35(1)(ii)/(iia)/(iii) shall be required to
intimate about the notification in the prescribed form and manner within
31.08.2020 else their notification will be withdrawn. It is further provided
that once intimated the notification shall remain valid for 5 years from AY
2021-22.
Sixth proviso: Henceforth, any
notification issued under clause (ii)/(iia)/(iii) shall remain valid for 5
years.
|
01.06.2020
|
17(ii)
|
Amendment of section 35(1A)-New sub-section
inserted
|
Provides for filing of
statement of contributions received and furnishing certificate to the
donor
|
01.06.2020
|
18(i)
|
Amendment of section 35AD(1)
|
An option has been given to
an assessee to claim the capital expenditure as business
expenditure under this section in full or to capitalize the expenditure to
claim depreciation
|
AY 2020-21
|
18(ii)
|
Amendment of section 35AD(4)
|
Consequent amendment for
sub-section(1) to restrict the deduction if
the assessee opted and claimed deduction under this
section
|
AY 2020-21
|
19
|
Amendment of section 35D
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
20
|
Amendment of section 35E
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
21(a)
|
Amendment of section 43
|
The section has substituted the
term ‘recognised association’ with ‘recognised stock
exchange’.
|
AY 2020-21
|
21(b)
|
Amendment of section 43 – clause (iii) to
Explanation 3
|
The term
‘recognised association’ is substituted with ‘recognised stock
exchange’ and defined therein
|
AY 2020-21
|
22
|
Amendment of section 43CA
|
Variation of actual sales
consideration with stamp duty value upto 10 percent is
allowed
|
AY 2021-22
|
23(A)
|
Amendment of section 44AB
|
New provision inserted to
increase the Tax Audit turnover limit to Rs. 5 crore if the
specified conditions are satisfied
|
AY 2020-21
|
23(B)
|
Amendment of section 44AB- clause (ii) to
Explanation
|
The ‘specified date’
is redefined to mean one month prior to the due date of furnishing
the return of income u/s 139(1)
|
AY 2020-21
|
24
|
Amendment of section 44DA(2)
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
25
|
Amendment of section 49
|
Cost of Acquisition for main
portfolio and segregated portfolio provided. Sub-sections (2AG) and (2AH)
inserted
|
AY 2020-21
|
26
|
Amendment of section 50B(3)
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
27
|
Amendment of section 50C
|
Variation of actual sales
consideration with stamp duty value upto 10 percent is
allowed
|
AY 2021-22
|
28
|
Amendment of section 55(2)(b)-New proviso
inserted
|
The fair market value of the
property as on 01.04.2001 is limited to the stamp duty valuation as on
01.04.2001, if available
|
AY 2021-22
|
29(A)
(i)/(ii)/(iii)
|
Amendment of section 56(2)
|
Amendments in clause
(v)/(vi)/(vii) [clause(g) to proviso to these clauses] - To provide
for any sum of money received from any trust or institution registered under
section 12AA shall not be considered as income. Now section 12AB inserted.
Note: None of the clauses
(v)/(vi)/(vii) is applicable for AY 2020-21.
|
01.06.2020
|
29(B)(i)
|
Amendment of section 56(2)(x)
|
Clause(b)(B)(ii): Variation of
actual sales consideration with stamp duty value upto 10 percent is
allowed
|
AY 2021-22
|
29(B)(ii)
|
Amendment of section 56(2)(x)
|
Clause (VII) of the first
proviso to clause(x) - Provides for any sum of money received from any trust
or institution registered under section 12AA shall not be considered as
income. Now section 12AB inserted.
|
01.06.2020
|
30(a)
|
Amendment of section 57
|
Consequential abolishment of
DDT, clause (I) to exclude the dividends referred to in section 115-O.
|
AY 2021-22
|
30(b)
|
Amendment of section 57
|
A new proviso is inserted in
Clause(i) to disallow any deduction for dividend income and income from
mutual fund units except interest expenses which shall be limited to 20% pf
gross dividend income or income from mutual fund units
|
AY 2021-22
|
31
|
Amendment of section 7AA-Substituted
with new provision
|
New provisions relating to
carry forward and set-off of accumulated loss and unabsorbed depreciation
allowance in scheme of amalgamation in certain cases
substituted
|
AY 2020-21
|
32
|
Amendment of section 80EEA(3)(I)
|
The sunset clause for Deduction
in respect of interest on loan taken for affordable house property is
extended by one year to 31.03.2021
|
AY 2021-22
|
33(i)(a)
|
Amendment of section 80G(5)
|
Power to approve institution or
fund u/s 80G(5)(vi) widened to cover Principal Commissioner also.
|
01.06.2020
|
33(i)(b)
|
Amendment of section 80G(5) (viii) and (ix)-New
sub-clauses inserted
|
Provides for filing of
statement of contributions received and furnishing certificate to the
donor
It is further provided for
renewal of existing approval of an institution or fund u/s
80G(5)(vi) within 31.08.2020. The procedure for fresh and renewal, as well as
provisional approval, is prescribed.
|
01.06.2020
|
33(ii)
|
Amendment of section 80G(5D)-New Explanation 2A
inserted
|
Deduction for donation to an
institution or fund approved u/s 80G(5) will be available to a donor only on
the basis of online information.
|
01.06.2020
|
33(iii)
|
Amendment of section 80G(5E)-New sub-section
inserted
|
Any pending application for
registration shall be deemed to be an application made under the new
rules.
|
01.06.2020
|
34(i)
|
Amendment of section 80GGA(2A)
|
Cash limit
of donation limited to Rs. 2,000
|
01.06.2020
|
34(ii)
|
Amendment of section 80GGA-Explanation to
sub-section (4) inserted
|
Deduction for donation u/s
80GGA will be available to a donor only on the basis of online
information.
|
01.06.2020
|
35
|
Amendment of section 80-IA(7)
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
36(i)
|
Amendment of section 80-IAC(2)
|
Period of claiming deduction
extended from out of 7 assessment years to 10 assessment years
|
AY 2021-22
|
36(ii)
|
Amendment of section 80-IAC
|
Amendment in the Explanation,
in clause (ii), in sub-clause (b): Scope of eligible start-up widened to
raise the turnover limit of the business from Rs. 25 crore to Rs.
100 crore
|
AY 2021-22
|
37
(a)/(b)/
(c)/(d)
|
Amendment of section 80-IB
|
Amendment in sub-section
(7A),sub-section (7B),sub-section (11B),and sub-section (11C):
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
38
|
Amendment of section 80-IBA
|
The sunset clause for approval
of the project is extended to 31.03.2021
|
AY 2021-22
|
39
|
Amendment of section 80JJAA
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
40
|
Insertion of new section 80M
|
Deduction in respect of certain
inter-corporate dividends
|
AY 2021-22
|
41
|
Amendment of section 90(1)(b)
|
Entering into agreement with a
foreign country for avoidance of double taxation through treaty
shopping, etc
|
AY 2021-22
|
42
|
Amendment of section 90A(1)(b)
|
Entering into agreement with a
foreign country for avoidance of double taxation through treaty
shopping, etc
|
AY 2021-22
|
43
|
Amendment of section 92CB(1)
|
Safe harbour rules
have been made applicable to income referred to in section
9(1)(i)
|
AY 2020-21
|
44(a)
|
Amendment of section 92CC(1)/(2)/(3)
|
Advance Pricing Agreement (APA)
have been made applicable to income referred to in section 9(1)(i)
|
AY 2020-21
|
44(b)
|
Amendment of section 92CC(9A)
|
The conditions, procedure and
manner for Advance Pricing Agreement (APA) have been made applicable to
income referred to in section 9(1)(i)
|
AY 2020-21
|
45
|
Amendment of section 92F(iv)
|
‘Specified date’ for furnishing
Tax Audit Report redefined to mean the date one month prior to the due date
for furnishing the return of income under section 139(1)
|
AY 2020-21
|
46
|
Amendment of section 94B(1A)-New sub-section
inserted
|
The restriction on
deductibility of interest paid to a non-resident lender shall apply to a
non-resident banking company having a permanent establishment in India.
|
AY 2021-22
|
47(I)
|
Amendment of section 115A(1)
|
Consequent to abolishment of
DDT, the dividend income shall not include Dividend referred to in section
115-O
|
AY 2021-22
|
47(II)
|
Amendment of section 115A(5)
|
Section 115A(5) precludes a
non-resident person from filing of return of income if it has only income as
specified in section 115A(1)(a) and tax is deducted as per Chapter XVII-B.
The scope is now expanded to cover income as specified in section 115A(1)(b)
as well and that tax has been deducted as per section 115A(1)(a)
and section 115A(1)(b).
|
AY 2020-21
|
48
|
Amendment of section 115AC
|
Consequent to abolishment of
DDT, the dividend income shall not include Dividend referred to in section
115-O
|
AY 2021-22
|
49
|
Amendment of section 115ACA
|
Consequent to abolishment of
DDT, the dividend income shall not include Dividend referred to in section
115-O
|
AY 2021-22
|
50
|
Amendment of section 115AD
|
Consequent to abolishment of
DDT, the dividend income shall not include Dividend referred to in section
115-O
|
AY 2021-22
|
51
|
Amendment of section 115BAA(2)
|
To avail the lower corporate
tax rate, the restriction on deduction under chapter VI-A modified to
restrict all the deductions under chapter VI-A except section 80JJAA and
section 80M
|
AY 2020-21
|
52
|
Amendment of section 115BAB(2)
|
To avail the lower corporate
tax rate, the restriction on deduction under chapter VI-A modified to
restrict all the deductions under chapter VI-A except section 80JJAA and
section 80M
Further, electricity generation
companies are also eligible to avail the benefits of section 115BAB
|
AY 2020-21
|
53
|
Insertion of new sections 115BAC and
115BAD.
|
Section 115BAC: New optional
tax scheme for Individuals and HUF
Section 115BAD: New optional
tax scheme for resident co-operative societies
|
AY 2021-22
|
54(a)
|
Amendment of section 115BBDA
|
Consequent to abolishment of
DDT, the dividend income shall not be liable to tax under this section from
01.04.2020.
|
AY 2021-22
|
54(b)
|
Amendment of section 115BBDA
|
This section does not apply
inter alia to a trust or institution registered under section 12A or section
12AA. Now a trust or institution registered under section 12AB is also
covered. [in the Explanation, in clause (b), in sub-clause (iii)]
|
01.06.2020
|
55
|
Amendment of section 115C
|
Consequent to abolishment of
DDT, the investment income shall include Dividend income.
|
AY 2021-22
|
56
|
Amendment of section 115JB
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
57(i)
|
Amendment of section 115JC(3)
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
57(ii)
|
Amendment of section 115JC(5)-New sub-section
inserted
|
Section 115JC shall not apply
to a person who has exercised the option under section 115BAC and section
115BAD
|
AY 2021-22
|
58
|
Amendment of section 115JD(7)-New sub-section
inserted
|
Section 115JD – credit of AMT
paid - shall not apply to a person who has exercised the option
under section 115BAC and section 115BAD
|
AY 2021-22
|
59
|
Amendment of section 115-O
|
The provisions of DDT on
dividend income by a domestic company shall be applicable till
31.03.2020.
|
AY 2021-22
|
60
|
Amendment of section 115R
|
The provisions of DDT on income
distributed by a Mutual Fund shall be applicable till 31.03.2020.
|
AY 2021-22
|
61
|
Amendment of section 115TD
|
Now a trust or institution
registered under section 12AB is also covered.
|
01.06.2020
|
62
|
Amendment of section 115UA
|
Consequent to abolishment of
DDT, the dividend income shall be taxable in the hands of a business
trust
|
AY 2021-22
|
63
|
Amendment of section 115VW
|
Audit Report cannot be filed
along with return of income and shall be filed before the specified date
referred to in section 44AB
|
AY 2020-21
|
64
|
Insertion of new section 119A
|
Taxpayer’s
Charter shall be enshrined into the law
|
01.04.2020
|
65
|
Amendment of section 133A
|
Approval of the Joint Director
or the Joint Commissioner and the Director or the Commissioner in appropriate
cases is required to conduct Survey u/s 133A
|
01.04.2020
|
66
|
Amendment of section 139
|
All the partners, whether
working or not, of a firm are at par now.
The due date of 30th September
is extended to 31st October
|
AY 2020-21
|
67
|
Amendment of section 140
|
In case of a company and an
LLP, certain other prescribed persons are also eligible to
verify the return of income.
|
01.04.2020
|
68
|
Amendment of section 140A
|
Credit for tax paid u/s 191(2)
shall be given before making self-assessment tax
|
AY 2020-21
|
69
|
Amendment of section 143(3A)/(3B)
|
The scope of e-assessment
scheme extended to assessment u/s 144.
Power to issue directions on
e-assessment extended till 31.03.2022.
|
AY 2020-21
|
70
|
Amendment of section 144C
|
Draft order is necessary for
any variation and not limited to income or loss returned which are
prejudicial to the interest of the assessee. [sub-section(1)]
Now any non-resident can file
objection before the DRP.
|
AY 2020-21
|
71
|
Amendment of section 156
|
Deferred tax payment on ESOP
and sweat equity shares for an eligible start-up referred to in section
80-IAC prescribed
|
AY 2021-22
|
72
|
Amendment of section 191
|
Deferred tax payment on ESOP
and sweat equity shares for an eligible start-up referred to in section
80-IAC prescribed
|
AY 2021-22
|
73
|
Amendment of section 192
|
Deferred TDS on ESOP and sweat
equity shares for an eligible start-up referred to in section 80-IAC
prescribed
|
01.04.2020
|
74
|
Amendment of section 194
|
Consequent
to abolishment of DDT, TDS on dividend prescribed
|
01.04.2020
|
75(I)
|
Amendment of section 194A
|
Turnover limit for Individuals
and HUFs delinked with section 44AB and set in the section itself
|
01.04.2020
|
75(II)
|
Amendment of section 194A
|
Certain large co-operative
societies are now required to deduct tax
|
01.04.2020
|
76
|
Amendment of section 194C
|
Turnover limit for Individuals
and HUFs delinked with section 44AB and set in the section itself
Definition of ‘work’
modified
|
01.04.2020
|
77
|
Amendment of section 194H
|
Turnover limit for Individuals
and HUFs delinked with section 44AB and set in the section itself
|
01.04.2020
|
78
|
Amendment of section 194-I
|
Turnover limit for Individuals
and HUFs delinked with section 44AB and set in the section itself
|
01.04.2020
|
79(a)
|
Amendment of section 194J
|
TDS rate of 2% prescribed for
FTS
|
01.04.2020
|
79(b)
|
Amendment of section 194J
|
Turnover limit for Individuals
and HUFs delinked with section 44AB and set in the section itself
|
01.04.2020
|
80
|
Insertion of new section 194K
|
TDS on income from mutual funds
prescribed
|
01.04.2020
|
81
|
Amendment of section 194LBA
|
Consequent to abolishment of
DDT, TDS on dividend income is prescribed at 10%
|
01.04.2020
|
82
|
Amendment of section 194LC
|
The time limit to raise money
from abroad extended to July 2023.
A new lower rate of TDS of 4%
is prescribed for interest paid to a non-resident on money borrowed outside
India or RDB and is listed on any IFSC based recognized stock
exchange under newly inserted clause(ib)
|
01.04.2020
|
83
|
Amendment of section 194LD
|
Interest on Municipal Debt
Securities brought within the purview of this section.
The time limit ending on July
2020 extended till July 2023.
|
01.04.2020
|
84
|
Insertion of new
section 194-O
|
TDS on e-commerce participant by e-commerce operator
|
01.04.2020
|
85
|
Amendment of section 195
|
Consequent to abolishment of
DDT, TDS on dividend is made applicable
|
01.04.2020
|
86
|
Amendment of section 196A
|
Meaning of UTI expanded.
Payment mode expanded to cover
any mode.
TDS under this section made
operational.
|
01.04.2020
|
87
|
Amendment of section 196C
|
Payment mode expanded to cover
any mode.
TDS under this section made
operational.
|
01.04.2020
|
88
|
Amendment of section 196D
|
Payment mode expanded to cover
any mode.
TDS under this section made
operational.
|
01.04.2020
|
89
|
Amendment of section 197
|
Scope of lower or Nil
TDS certificate extended for section 194-O
|
01.04.2020
|
90
|
Amendment of section 203AA
|
Form 26AS withdrawn
|
01.06.2020
|
91
|
Amendment of section 204
|
‘person responsible for paying’
income defined for a person not resident in India
|
AY 2020-21
|
92
|
Amendment of section 206AA
|
Higher rate of TDS
for non-PAN or non-Aadhaar case modified for section 194-O
|
AY 2020-21
|
93
|
Amendment of section 206C
|
New TCS provisions introduced
on
>foreign remittance under
LRS
> overseas tour program
package
>Sale of goods
Under the prescribed
conditions
|
01.04.2020
|
94
|
Insertion of new section 234G
|
Late Fees prescribed for late
filing of statement prescribed under section 35 and 80G and issue of
certificates there under
|
01.04.2020
|
95
|
Amendment of section 250
|
Provisions for Faceless
e-Appeal introduced
|
01.04.2020
|
96
|
Amendment of section 253
|
A trust or institution
registered under section 12AB is now covered.
|
01.06.2020
|
97
|
Amendment of section 254
|
Pre-deposit of 20% of demand
mandatory before filing of appeal to ITAT and that ITAT cannot grant stay
beyond 365 days
|
01.04.2020
|
98
|
Insertion of new section 271AAD
|
Penalty for Fake Invoice, False
entries and Omitted entries in books of accounts
|
01.04.2020
|
99
|
Insertion of new section 271J
|
Penalty prescribed for late
filing of statement prescribed under section 35 and 80G and issue of
certificates there under
|
01.06.2020
|
100
|
Amendment of section 274(2A)/(2B)/(C)-New
sub-section inserted
|
Provisions for Faceless
e-Penalty introduced
|
01.04.2020
|
101
|
Insertion of new section 285BB
|
Provisions
for Annual information statement introduced (Scope of erstwhile
Form 26AS widened)
|
01.06.2020
|
102
|
Amendment of section 288
|
Any prescribed person may
appear as authorised representative
|
AY 2020-21
|
103(a)
|
Amendment of section 295(2)(iia)-New sub-clause
inserted
|
The Board has been given the
power to make rules for computing the income of a non-resident
from operations carried out in India
|
AY 2021-22
|
103(b)
|
Amendment of section 295 (2)(iib)-New sub-clause
inserted
|
The Board has been given the
power to make rules for computing the income of a non-resident from
transactions or activities
|
AY 2022-23
|
104
|
Amendment of First Schedule
|
Deduction under section 43B
shall be allowed on payment basis if disallowed in earlier years
while computing the profits and gains of any business of insurance other
than life insurance business
|
AY 2020-21
|
Get all latest content delivered straight to your inbox
0 Comments