The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 |The LexSphere Library

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•1

•THE TAXATION AND OTHER LAWS (RELAXATION AND

•AMENDMENT OF CERTAIN PROVISIONS) BILL, 2020

•A

•BILL

•to provide for relaxation and amendment of provisions of certain Acts and for matters

•connected therewith or incidental thereto.

•BE it enacted by Parliament in the Seventy-first Y ear of the Republic of India as

•follows:—

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•clause (v) or sub-clause (vi) or sub-clause (via) shall make an

•application in the prescribed form and manner to the prescribed

•authority for the purpose of grant of the exemption, or

•continuance thereof, under sub-clause ( iv) or sub-clause ( v)

•or sub-clause (vi) or sub-clause (via

•) :

•42 of 1956.

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•Provided further that the prescribed authority, before

•approving any fund or trust or institution or any university or

•other educational institution or any hospital or other medical

•institution, under sub-clause ( iv) or sub-clause ( v) or sub-

SECTION Section 100

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•for "fulfillment of"

•read "fulfilment of".

SECTION Section 101

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•for "Explanation below"

•read "Explanation to".

SECTION Section 102

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•for "(iii) for"

•read "(iv) for".

P.T.O.

•-2-

SECTION Section 103

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•for "proviso shall"

•read "proviso as so inserted, shall".

SECTION Section 104

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•for "be an application"

•read "be applications".

SECTION Section 105

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•for "deemed to be"

•read "deemed to have been".

SECTION Section 106

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•for "deemed to be"

•read "deemed to have been".

SECTION Section 107

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•for "deemed to be"

•read "deemed to have been".

SECTION Section 108

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•for "2021, namely––"

•read "2021,––".

SECTION Section 109

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•for "substituted––"

•read "substituted, namely:––".

SECTION Section 11

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•clause (vi) or sub-clause (via), may call for such documents

•(including audited annual accounts) or information from the

•fund or trust or institution or any university or other

•educational institution or any hospital or other medical

•institution, as the case may be, as it thinks necessary in order

•to satisfy itself about the genuineness of the activities of

•such fund or trust or institution or any university or other

•educational institution or any hospital or other medical

•institution, as the case may be, and the compliance of such

•requirements under any other law for the time being in force

•by such fund or trust or institution or any university or other

•educational institution or any hospital or other medical

•institution, as the case may be, as are material for the purpose

•of achieving its objects and the prescribed authority, may

•also make such inquiries as it deems necessary in this behalf:";

(B)with effect from the 1st day of April, 2021, the following

•provisos shall be substituted, namely:—

•"Provided that the exemption to the fund or trust or

•institution or university or other educational institution or

•hospital or other medical institution referred to in sub-clause

•(iv) or sub-clause ( v) or sub-clause ( vi) or sub-clause ( via)

•under the respective sub-clauses shall not be available to it

•unless such fund or trust or institution or university or other

•educational institution or hospital or other medical institution

•makes an application in the prescribed form and manner to the

•Principal Commissioner or Commissioner, for grant of

•approval,—

(i)where such fund or trust or institution or

•university or other educational institution or hospital

•or other medical institution is approved under the second

•proviso [as it stood immediately before its amendment

•by the Taxation and Other Laws (Relaxation and

•Amendment of Certain provisions) Act, 2020], within

•three months from the 1st day of April, 2021;

•(ii) where such fund or trust or institution or

•university or other educational institution or hospital

•or other medical institution is approved and the period

•of such approval is due to expire, at least six months

•prior to expiry of the said period;

•(iii) where such fund or trust or institution or

•university or other educational institution or hospital

•or other medical institution has been provisionally

•approved, at least six months prior to expiry of the period

•of the provisional approval or within six months of

•commencement of its activities, whichever is earlier;

•(iv) in any other case, at least one month prior to

•the commencement of the previous year relevant to the

•assessment year from which the said approval is sought,

•and the said fund or trust or institution or university or other

•educational institution or hospital or other medical institution

•is approved under the second proviso:

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•Provided further that the Principal Commissioner or

•Commissioner, on receipt of an application made under the

•first proviso, shall,—

(i)where the application is made under clause (i)

•of the said proviso, pass an order in writing granting

•approval to it for a period of five years;

•(ii) where the application is made under clause (ii)

•or clause (iii) of the said proviso,—

(a)call for such documents or information

•from it or make such inquiries as he thinks

•necessary in order to satisfy himself about—

(A)the genuineness of activities of such fund or trust or institution

•or university or other educational institution or hospital or other medical

•institution; and

(B)the compliance of such requirements of any other law for the

•time being in force by it as are material for the purpose of achieving its

•objects; and

(b)after satisfying himself about the objects and the genuineness of its

•activities under item (A), and compliance of the requirements under item (B), of

•sub-clause (a),—

(A)pass an order in writing granting approval to it for a period of

•five years;

(B)if he is not so satisfied, pass an order in writing rejecting such

•application and also cancelling its approval after affording it a reasonable

•opportunity of being heard;

•(iii) where the application is made under clause ( iv) of the said

•proviso, pass an order in writing granting approval to it provisionally for

•a period of three years from the assessment year from which the registration

•is sought, and send a copy of such order to the fund or trust or institution

•or university or other educational institution or hospital or other medical

•institution:";

•(iii) for the eighth and ninth provisos,—

(A)with effect from the 1st day of June, 2020, the following provisos shall

•be substituted and shall be deemed to have been substituted, namely:—

•"Provided also that any notification issued by the Central

•Government under sub-clause (iv) or sub-clause ( v), before the date on

•which the Taxation Laws (Amendment) Bill, 2006 receives the assent of

•the President, shall, at any one time, have effect for such assessment year

•or years, not exceeding three assessment years (including an assessment

•year or years commencing before the date on which such notification is

•issued) as may be specified in the notification:

•Provided also that where an application under the first proviso is

•made on or after the date on which the Taxation Laws (Amendment) Bill,

•2006 receives the assent of the President, every notification under

•sub-clause (iv) or sub-clause ( v) shall be issued or approval under sub-

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•for "substituted figures and letters,"

•read "substituted,".

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SECTION Section 111

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•for "be an application"

•read "be applications".

SECTION Section 112

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•for "Explanation, for the words, brackets and figures,––"

•read "Explanation,––".

SECTION Section 113

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•for '(A) "to which'

•read '(A) for the words, brackets and figures "to which'.

SECTION Section 114

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•for '(B) "clause (ii)'

•read '(B) for the words, brackets and figures "clause (ii)'.

SECTION Section 115

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•for "sixth proviso"

•read "sixth provisos".

SECTION Section 116

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•for "(a) correction"

•read "a correction".

SECTION Section 117

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SECTION Section 118

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•for "shall be inserted"

•read "shall be substituted".

SECTION Section 119

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•omit "with effect from the 1st day of April, 2021"

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•clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) shall be

•granted or an order rejecting the application shall be passed within the

•period of twelve months from the end of the month in which such

•application was received:";

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(B)with effect from the 1st day of April, 2021, the following provisos shall

•be substituted, namely:—

•"Provided also that any approval granted under the second proviso

•shall apply in relation to the income of the fund or trust or institution or

•university or other educational institution or hospital or other medical

•institution,—

(i)where the application is made under clause (i) of the first

•proviso, from the assessment year from which approval was earlier

•granted to it;

•(ii) where the application is made under clause (iii) of the first

•proviso, from the first of the assessment years for which it was

•provisionally approved;

•(iii) in any other case, from the assessment year immediately

•following the financial year in which such application is made:

•Provided also that the order under clause (i), sub-clause

(b)of clause (ii) and clause (iii) of the second proviso shall be

•passed, in such form and manner as may be prescribed, before

•expiry of the period of three months, six months and one

•month, respectively, calculated from the end of the month in

•which the application was received:";

•(iv) in the twelfth proviso, for the word, figures and

•letters "section 12AA", the words, figures and letters "section

•12AA or section 12AB" shall be substituted with effect from

•the 1st day of April, 2021;

(v)after fifteenth proviso, with effect from the 1st day of

•June, 2020, the following proviso shall be inserted and shall

•be deemed to have been inserted, namely:—

•"Provided also that in case the fund or trust or institution

•or any university or other educational institution or any hospital

•or other medical institution referred to in the first proviso

•makes an application on or after the 1st day of June, 2006 for

•the purposes of grant of exemption or continuance thereof,

•such application shall be made on or before the 30th day of

•September of the relevant assessment year from which the

•exemption is sought :";

•(vi) with effect from the 1st day of April, 2021, the

•sixteenth proviso shall be omitted;

•(vii) for the eighteenth proviso,—

(A)with effect from the 1st day of June, 2020, the

•following proviso shall be substituted and shall be deemed to

•have been substituted, namely:—

•"Provided also that all pending applications, on

•which no notification has been issued under sub-clause

•(iv) or sub-clause (v) before the 1st day of June, 2007,

•shall stand transferred on that day to the prescribed

•authority and the prescribed authority may proceed with

•such applications under those sub-clauses from the

•stage at which they were on that day:";

(B)with effect from the 1st day of April, 2021, the

•following proviso shall be substituted, namely:—

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•"Provided also that all applications made under

•the first proviso [as it stood before its amendment by

•the Taxation and Other Laws (Relaxation and

•Amendment of Certain Provisions) Act, 2020] pending

•before the Principal Commissioner or Commissioner, on

•which no order has been passed before the 1st day of

•April, 2021, shall be deemed to be an application made

•under clause (iv) of the first proviso on that date:";

(c)after clause (23FBB), the following clause shall be inserted, with effect

•from the 1st day of April, 2021, namely:—

•"(23FBC) any income accruing or arising to or received by a unit

•holder from a specified fund or on transfer of units in a specified fund.

Explanation.—For the purposes of this clause, the expressions—

(a)"specified fund" shall have the same meaning as assigned

•to it in clause (c) of the Explanation to clause (4D);

(b)"unit" means beneficial interest of an investor in the fund

•and shall include shares or partnership interests.";

(d)in clause (23FE), in the Explanation, with effect from the 1st day of

•April, 2021;

(i)in clause ( a), in sub-clause ( ii), for the words "United Arab

•Emirates", the words "Abu Dhabi" shall be substituted";

•(ii) in clause (b), in sub-clause (vi), after the words "for this purpose",

•the words "and fulfils conditions specified in such notification" shall be

•inserted;

•(iii) in clause (c), in sub-clause (iv), for the words "for this purpose",

•the words "for this purpose and fulfils conditions specified in such

•notification" shall be substituted;

•(III) in section 11,—

(a)in sub-section (1), in Explanation 2, after the word, figures and letters

•"section 12AA", the words, figures and letters "or section 12AB, as the case

•may be" shall be inserted with effect from the 1st day of April, 2021;

(b)in sub-section (7),—

(i)for the words, figures and letters "under section 12AA or section

•12AB", the words, brackets, letters and figures "under clause (b) of sub-

•section (1) of section 12AA" shall be substituted and shall be deemed to

•have been substituted with effect from the 1st day of June, 2020;

•(ii) for the words, brackets, letters and figures "under clause (b) of

•sub-section (1) of section 12AA", the words, figures and letters "under

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•for "sub-section (1)"

•read "under sub-section (1)".

SECTION Section 121

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•for "Assessment Centers"

•read "Assessment Center".

SECTION Section 122

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•for "Assessment Centers"

•read "Assessment Center".

SECTION Section 123

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•for "acknowledgment of"

•read "acknowledgement of ".

SECTION Section 124

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•for "section shall"

•read "sections shall".

SECTION Section 125

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•for "compounding,"

•read "compounding of ,".

SECTION Section 126

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•for "before 31st day"

•read "before the 31st day".

SECTION Section 127

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•for "the words"

•read "the words, figures and letter".

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SECTION Section 128

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•for "Vivad se Visvas"

•read "Vivad se Vishvas".

•NEW DELHI;

•14 September, 2020______

•Bhadrapada 23, 1942 (Saka)

SECTION Section 13

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•section 12AA or section 12AB" shall be substituted with effect from the

•1st day of April, 2021;

•(iii) in the second proviso,—

(A)with effect from the 1st day of June, 2020 for the words, figures

•and letters " under section 12AB", the words, figures and letters "under

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•section 12AA" shall be substituted and shall be deemed to have been

•substituted;

(B)with effect from the 1st day of April, 2021, the words, figures and

•letters " under section 12AA" the words, figures and letters or section

•12AB" shall be inserted;

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•(IV) in section 12A,—

(a)in sub-section (1),—

(i)with effect from the 1st day of June, 2020, clause ( ac) shall be

•omitted and shall be deemed to have been omitted;

•(ii) with effect from the 1st day of April, 2021, after clause (ab), the

•following clause shall be inserted, namely:—

•"(ac) notwithstanding anything contained in clauses ( a) to

•(ab), the person in receipt of the income has made an application in

•the prescribed form and manner to the Principal Commissioner or

•Commissioner, for registration of the trust or institution,—

(i)where the trust or institution is registered under

SECTION Section 15

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•section 12A [as it stood immediately before its amendment by

•the Finance (No. 2) Act, 1996] or under section 12AA, [as it

•stood immediately before its amendment by the Taxation and

•Other Laws (Relaxation and Amendment of Certain Provisions)

•Act, 2020] within three months from the 1st day of April, 2021;

•(ii) where the trust or institution is registered under

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•section 12AB and the period of the said registration is due to

•expire, at least six months prior to expiry of the said period;

•(iii) where the trust or institution has been provisionally

•registered under section 12AB, at least six months prior to

•expiry of period of the provisional registration or within six

•months of commencement of its activities, whichever is earlier;

•(iv) where registration of the trust or institution has

•become inoperative due to the first proviso to sub-section (7)

•of section 11, at least six months prior to the commencement

•of the assessment year from which the said registration is

•sought to be made operative;

(v)where the trust or institution has adopted or

•undertaken modifications of the objects which do not conform

•to the conditions of registration, within a period of thirty days

•from the date of the said adoption or modification;

•(vi) in any other case, at least one month prior to the

•commencement of the previous year relevant to the

•assessment year from which the said registration is sought,

•and such trust or institution is registered under section 12AB;";

(b)in sub-section (2),—

(A)with effect from the 1st day of June, 2020,—

(i)the first proviso shall be omitted and shall be deemed to have

•been omitted,—

•(ii) in the second proviso, for the words, figures and letters "Provided

•further that where registration has been granted to the trust or institution

•under section 12AA or section 12AB" the words, figures and letters

•"Provided that where registration has been granted to the trust or institution

•under section 12AA", shall be substituted and shall be deemed to be

•substituted;

•(iii) in the third proviso, for the words "provided also" the words

•"provided further", shall be substituted and shall be deemed to be

•substituted;

•33 of 1996.

•12 of 2020.

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•(iv) in the fourth proviso, for the words, figures and letters "section

•12AA or section 12AB", the word, figures and letters 'section 12AA" shall

•be substituted and shall be deemed to be substituted;

(B)with effect from the 1st day of April, 2021, namely:—

(i)in the first proviso, for the words "Provided that where registration

•has been granted to the trust or institution under section 12AA", the

•following shall be substituted,—

•"Provided that the provisions of sections 11 and 12 shall apply

•to a trust or institution, where the application is made under—

(a)sub-clause (i) of clause (ac) of sub-section (1), from

•the assessment year from which such trust or institution was

•earlier granted registration;

(b)sub-clause ( iii) of clause ( ac) of sub-section ( 1),

•from the first of the assessment year for which it was

•provisionally registered:

•Provided further that where registration has been granted to

•the trust or institution under section 12AA or section 12AB";

•(ii) in the second proviso, for the words "Provided further", the

•words "Provided also" shall be substituted figures and letters;

•(iii) in the fourth proviso, for the word, figures and letters "section

•12AA" the words, figures and letters 'section 12AA or section 12AB"

•shall be substituted;

(V)In section 12AA,—

(a)sub-section ( 5) shall be omitted and shall be deemed to have been

•omitted with effect from the 1st day of June, 2020;

(b)after sub-section (4), the following sub-section shall be inserted with

•effect from the 1st day of April, 2021, namely:—

•"(5) Nothing contained in this section shall apply on or after the

•1st day of April, 2021.";

•(VI) section 12AB shall be omitted and shall be deemed to have been omitted

•with effect from the 1st day of June, 2020;

•(VII) after section 12AA, the following section shall be inserted with effect from

•the 1st day of April, 2021, namely:—

•"12AB. (1) The Principal Commissioner or Commissioner, on receipt of an

•application made under clause (ac) of sub-section (1) of section 12A, shall,—

(a)where the application is made under sub-clause ( i) of the said

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•clause, pass an order in writing registering the trust or institution for a

•period of five years;

(b)where the application is made under sub-clause (ii) or sub-clause

•(iii) or sub-clause (iv) or sub-clause (v) of the said clause,—

(i)call for such documents or information from the trust or

•institution or make such inquiries as he thinks necessary in order to

•satisfy himself about—

•Procedure for

•fresh

registration.

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(A)the genuineness of activities of the trust or

•institution; and

(B)the compliance of such requirements of any other

•law for the time being in force by the trust or institution as are

•material for the purpose of achieving its objects;

•(ii) after satisfying himself about the objects of the trust or

•institution and the genuineness of its activities under item (A) and

•compliance of the requirements under item (B), of sub-clause (i),—

•( A) pass an order in writing registering the trust or

•institution for a period of five years; or

(B)if he is not so satisfied, pass an order in writing

•rejecting such application and also cancelling its registration

•after affording a reasonable opportunity of being heard;

(c)where the application is made under sub-clause (vi) of the said

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•clause, pass an order in writing provisionally registering the trust or

•institution for a period of three years from the assessment year from which

•the registration is sought,

•and send a copy of such order to the trust or institution.

(2)All applications, pending before the Principal Commissioner or

•Commissioner on which no order has been passed under clause ( b) of sub-

•section (1) of section 12AA before the date on which this section has come into

•force, shall be deemed to be an application made under sub-clause (vi) of clause

•(ac) of sub-section (1) of section 12A on that date.

(3)The order under clause (a), sub-clause (ii) of clause (b) and clause (c),

•of sub-section (1) shall be passed, in such form and manner as may be prescribed,

•before expiry of the period of three months, six months and one month,

•respectively, calculated from the end of the month in which the application was

received.

(4)Where registration of a trust or an institution has been granted under

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•clause ( a) or clause ( b) of sub-section ( 1) and subsequently, the Principal

•Commissioner or Commissioner is satisfied that the activities of such trust or

•institution are not genuine or are not being carried out in accordance with the

•objects of the trust or institution, as the case may be, he shall pass an order in

•writing cancelling the registration of such trust or institution after affording a

•reasonable opportunity of being heard.

(5)Without prejudice to the provisions of sub-section ( 4), where

•registration of a trust or an institution has been granted under clause ( a) or

SECTION Section 2

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•CHAPTER I

•PRELIMINARY

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•clause (b) of sub-section (1) and subsequently, it is noticed that—

(a)the activities of the trust or the institution are being carried out in

•a manner that the provisions of sections 11 and 12 do not apply to exclude

•either whole or any part of the income of such trust or institution due to

•operation of sub-section (1) of section 13; or

(b)the trust or institution has not complied with the requirement of

•any other law, as referred to in item (B) of sub-clause (i) of clause (b) of

•sub-section (1), and the order, direction or decree, by whatever name

•called, holding that such non-compliance has occurred, has either not

•been disputed or has attained finality,

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•then, the Principal Commissioner or the Commissioner may, by an order in writing, after

•affording a reasonable opportunity of being heard, cancel the registration of such

•trust or institution.".

•(VIII) in section 13, in Explanation 1, after the figures and letter "12A", the

•figures and letters ", 12AA, 12AB" shall be inserted with effect from the 1st day

•of April, 2021;

•(IX) in section 35,—

(a)in sub-section (1),—

(i)with effect from the 1st day of June, 2020, in clause (iii), in the

•Explanation ,—

(A)for the words, brackets, figures and letter "to which

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•clause (ii) or clause (iii) or to a company to which clause (iia)", the

•words, brackets and figures "to which clause ( ii) or clause ( iii)"

•shall be substituted and shall be deemed to have been substituted;

(B)for the words, brackets, figures and letter "clause (ii) or

SECTION Section 22

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•clause (iii) or to a company referred to in clause ( iia)", the words,

•brackets and figures "clause (ii) or clause (iii)" shall be substituted

•and shall be deemed to have been substituted;

•(ii) with effect from the 1st day of April, 2021, in sub-clause (iii), in

•the Explanation, for the words, brackets and figures,—

(A)"to which clause (ii) or clause (iii)", the words, brackets,

•figures and letter "to which clause (ii) or clause (iii) or to a company

•to which clause ( iia)" shall be substituted;

(B)"clause ( ii) or clause ( iii)", the words, brackets, figures

•and letter "clause (ii) or clause (iii) or to a company referred to in

SECTION Section 23

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•clause (iia)" shall be substituted;

•(iii) the fifth and sixth proviso occurring after clause ( iv) shall be

•omitted and shall be deemed to have been omitted with effect from the

•1st day of June, 2020;

•(iv) after the fourth proviso occurring after clause (iv), the following

•provisos shall be inserted with effect from the 1st day of April, 2021,

•namely:—

•"Provided also that every notification under clause (

•ii) or

SECTION Section 24

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•clause (iii) in respect of the research association, university, college

•or other institution or under clause (iia) in respect of the company

•issued on or before the date on which this proviso has come into

•force, shall be deemed to have been withdrawn unless such research

•association, university, college or other institution referred to in

SECTION Section 25

Untitled Section

•clause (ii) or clause (iii) or the company referred to in clause ( iia)

•makes an intimation in such form and manner, as may be prescribed,

•to the prescribed income-tax authority within three months from the

•date on which this proviso has come into force, and subject to such

•intimation the notification shall be valid for a period of five

•consecutive assessment years beginning with the assessment year

•commencing on or after the 1st day of April, 2022:

•Provided also that any notification issued by the Central

•Government under clause (ii) or clause (iia) or clause (iii), after the

•date on which the Taxation and Other Laws (Relaxation and

•Amendment of Certain Provisions) Bill, 2020 receives the assent of

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•the President, shall, at any one time, have effect for such assessment

•year or years, not exceeding five assessment years as may be specified

•in the notification.";

(b)sub-section (1A) shall be omitted and shall be deemed to have been omitted

•with effect from the 1st day of June, 2020;

(c)after sub-section (1), the following sub-section shall be inserted with effect

•from the 1st day of April, 2021, namely:—

•"(1A) Notwithstanding anything contained in sub-section (1), the research

•association, university, college or other institution referred to in clause ( ii) or

SECTION Section 26

Untitled Section

•clause (iii) or the company referred to in clause (iia) of sub-section (1) shall not

•be entitled to deduction under the respective clauses of the said sub-section,

•unless such research association, university, college or other institution or

•company—

(i)prepares such statement for such period as may be prescribed

•and deliver or cause to be delivered to the said prescribed income-tax

•authority or the person authorised by such authority such statement in

•such form, verified in such manner, setting forth such particulars and

•within such time, as may be prescribed:

•Provided that such research association, university, college or other

•institution or the company may also deliver to the prescribed authority a

•correction statement for rectification of any mistake or to add, delete or

•update the information furnished in the statement delivered under this

•sub-section in such form and verified in such manner as may be prescribed;

•(ii) furnishes to the donor, a certificate specifying the amount of

•donation in such manner, containing such particulars and within such

•time from the date of receipt of sum, as may be prescribed.";

(X)in section 35AC, with effect from the 1st day of November, 2020,—

(i)in sub-section (4)—

(a)in clause (i), for the word "Committee", the words and brackets

•"the Principal Chief Commissioner of Income Tax (Exemption) or the Chief

•Commissioner of Income Tax (Exemption)" shall be substituted;

(b)in clause (ii), for the words " National Committee", the words and

•brackets "the Principal Chief Commissioner of Income Tax (Exemption) or

•the Chief Commissioner of Income Tax (Exemption)" shall be substituted;

(c)in the longline, for the words "National Committee", the words

•and brackets "the Principal Chief Commissioner of Income Tax (Exemption)

•or the Chief Commissioner of Income Tax (Exemption)" shall be substituted;

(d)in the proviso, for the words "National Committee", the words

•and brackets "the Principal Chief Commissioner of Income Tax (Exemption)

•or the Chief Commissioner of Income Tax (Exemption)" shall be substituted;

•(ii) in sub-section (5),—

(a)in clause (i), for the words "National Committee", the words and

•brackets "the Principal Chief Commissioner of Income Tax (Exemption) or

•the Chief Commissioner of Income Tax (Exemption)" shall be substituted;

(b)in the first proviso, for the words "National Committee", the

•words and brackets "the Principal Chief Commissioner of Income Tax

•(Exemption) or the Chief Commissioner of Income Tax (Exemption)" shall

•be substituted;

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•(iii) in sub-section (6), in clause (ii), after the words "National Committee",

•the words and brackets "or the Principal Chief Commissioner of Income Tax

•(Exemption) or the Chief Commissioner of Income Tax (Exemption), as the case

•may be," shall be inserted;

•(XI) in section 56, in sub-section (2),—

(a)with effect from the 1st day of June, 2020,—

(i)in clause (v), in the proviso, in clause (g), for the words, figures

•and letters "section 12AA or section 12AB", the word, figures and letters

•"section 12AA" shall be substituted and shall be deemed to have been

•substituted;

•(ii) in clause (vi), in the proviso, in clause (g), for the words, figures

•and letters "section 12AA or section 12AB", the word, figures and letters

•"section 12AA" shall be substituted and shall be deemed to have been

•substituted;

•(iii) in clause ( vii), in the second proviso, in clause ( g), for the

•words, figures and letters "section 12AA or section 12AB", the word,

•figures and letters "section 12AA" shall be substituted and shall be deemed

•to have been substituted;

(b)with effect from the 1st day of April, 2021,—

(i)in clause (v), in the proviso, in clause (g), for the word, figures

•and letters "section 12AA", the words, figures and letters "section 12AA

•or section 12AB" shall be substituted;

•(ii) in clause (vi), in the proviso, in clause (g), for the word, figures

•and letters "section 12AA", the words, figures and letters "section 12AA

•or section 12AB" shall be substituted;

•(iii) in clause (vii), in the second proviso, in clause (g), for the word,

•figures and letters "section 12AA", the words, figures and letters "section

•12AA or section 12AB" shall be substituted;

(c)in clause (x), in the proviso, in clause (VII),—

(i)for the words, figures and letters "section 12A or section 12AA or

SECTION Section 27

Untitled Section

•section 12AB", the words, figures and letters "section 12A or section

•12AA" shall be substituted and shall be deemed to have been substituted

•with effect from the 1st day of June, 2020;

•(ii) for the words, figures and letters "section 12A or section 12AA",

•the words, figures and letters "section 12A or section 12AA or

SECTION Section 28

Untitled Section

•section 12AB" shall be substituted with effect from the 1st day of April,

•2021;

•(XII) in section 80G ,—

(a)in sub-section ( 2), in clause ( a), in sub-clause ( iiia), after the word

•"Fund", the words and brackets "or the Prime Minister's Citizen Assistance and

•Relief in Emergency Situations Fund (PM CARES FUND)" shall be inserted and

•shall be deemed to have been inserted with effect from the 1st day of April, 2020;

(b)in sub-section (5),—

(i)with effect from the 1st day of June, 2020,—

(A)in clause ( vi), for the words "approved by the Principal

•Commissioner or Commissioner;" the words "approved by the

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•Commissioner in accordance with the rules made in this behalf;

•and" shall be substituted and shall be deemed to have been

•substituted;

(B)clauses (viii) and (ix) shall be omitted and shall be deemed

•to have been omitted;

•(ii) with effect from the 1st day of April, 2021,—

(A)in clause (vi), for the words "approved by the Commissioner

•in accordance with the rules made in this behalf; and", the words

•"approved by the Principal Commissioner or Commissioner;" shall

•be substituted;

(B)after clause (vii), the following clauses shall be inserted,

•namely:—

•"(viii) the institution or fund prepares such statement for such period

•as may be prescribed and deliver or cause to be delivered to the prescribed

•income-tax authority or the person authorised by such authority such

•statement in such form and verified in such manner and setting forth such

•particulars and within such time as may be prescribed;

•Provided that the institution or fund may also deliver to the said

•prescribed authority, (a) correction statement for rectification of any mistake

•or to add, delete or update the information furnished in the statement

•delivered under this sub-section in such form and verified in such manner

•as may be prescribed; and

•( ix) the institution or fund furnishes to the donor, a certificate

•specifying the amount of donation in such manner, containing such

•particulars and within such time from the date of receipt of donation, as

•may be prescribed:

•Provided that the institution or fund referred to in clause (vi) shall

•make an application in the prescribed form and manner to the Principal

•Commissioner or Commissioner, for grant of approval,—

(i)where the institution or fund is approved under clause (vi)

•(as it stood immediately before its amendment by the Taxation and

•Other Laws (Relaxation and Amendment of Certain Provisions) Act,

•2020), within three months from the 1st day of April, 2021;

•(ii) where the institution or fund is approved and the period of

•such approval is due to expire, at least six months prior to expiry of

•the said period;

•(iii) where the institution or fund has been provisionally

•approved, at least six months prior to expiry of the period of the

•provisional approval or within six months of commencement of its

•activities, whichever is earlier;

•(iv) in any other case, at least one month prior to

•commencement of the previous year relevant to the assessment

•year from which the said approval is sought:

•Provided further that the Principal Commissioner or

•Commissioner, on receipt of an application made under the first

•proviso, shall,—

(i)where the application is made under clause (i)

•of the said proviso, pass an order in writing granting it

•approval for a period of five years;

•(ii) where the application is made under clause

•(ii) or clause (iii) of the said proviso,—

•12 of 2020.

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(a)call for such documents or information from it

•or make such inquiries as he thinks necessary in order

•to satisfy himself about—

(A)the genuineness of

•activities of such institution or fund;

•and

(B)the fulfilment of all the

•conditions laid down in clauses (i) to

(v);

(b)after satisfying himself about the

•genuineness of activities under item ( A),

•and the fulfilment of all the conditions under

•item (B), of sub-clause (a),—

(A)pass an order in writing

•granting it approval for a period of

•five years; or

(B)if he is not so satisfied, pass

•an order in writing rejecting such

•application and also cancelling its

•approval after affording it a

•reasonable opportunity of being

•heard;

•(iii) where the application is made under

SECTION Section 29

Untitled Section

•clause (iv) of the said proviso, pass an order in

•writing granting it approval provisionally for a

•period of three years from the assessment year

•from which the registration is sought,

•and send a copy of such order to the institution or fund:

•Provided also that the order under clause (i), sub-

SECTION Section 3

Untitled Section

1.(1) This Act may be called the Taxation and Other Laws (Relaxation and Amendment

•of Certain Provisions) Act, 2020.

(2)Save as otherwise provided, it shall be deemed to have into come into force on the

•31st day of March, 2020.

SECTION Section 30

Untitled Section

•clause (b) of clause (ii) and clause (iii) of the first proviso

•shall be passed in such form and manner as may be

•prescribed, before expiry of the period of three months,

•six months and one month, respectively, calculated from

•the end of the month in which the application was

•received:

•Provided also that the approval granted under

•the second proviso shall apply to an institution or fund,

•where the application is made under—

(a)clause (i) of the first proviso, from the assessment year from which

•approval was earlier granted to such institution or fund;

(b)clause (iii) of the first proviso, from the first of the assessment years

•for which such institution or fund was provisionally approved;

(c)in any other case, from the assessment year immediately following the

•financial year in which such application is made.";

(c)sub-section (5E), shall be omitted and shall be deemed to have been omitted

•with effect from the 1st day of June, 2020;

(d)after sub-section (5D), the following sub-section shall be inserted with effect

•from the 1st day of April, 2021, namely:—

•"(5E) All applications, pending before the Commissioner on which no

•order has been passed under clause ( vi) of sub-section ( 5) before the date on

•which this sub-section has come into force, shall be deemed to be applications

•made under clause (iv) of the first proviso to sub-section (5) on that date.";

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(e)Explanation 2A shall be omitted and shall be deemed to have been omitted

•with effect from the 1st day of June, 2020;

(f)after Explanation 2, the following Explanation shall be inserted with effect

•from the 1st day of April, 2021, namely:—

•"Explanation 2A.—For the removal of doubts, it is hereby declared that

•claim of the assessee for a deduction in respect of any donation made to an

•institution or fund to which the provisions of sub-section (5) apply, in the return

•of income for any assessment year filed by him, shall be allowed on the basis of

•information relating to said donation furnished by the institution or fund to the

•prescribed income-tax authority or the person authorised by such authority,

•subject to verification in accordance with the risk management strategy formulated

•by the Board from time to time.";

•(XIII) in section 92CA, after sub-section (7), the following sub-sections shall be

•inserted with effect from the 1st day of November, 2020, namely:—

•"(8) The Central Government may make a scheme, by notification in the

•Official Gazette, for the purposes of determination of the arm's length price under

•sub-section (3), so as to impart greater efficiency, transparency and accountability

•by—

(a)eliminating the interface between the Transfer Pricing Officer

•and the assessee or any other person to the extent technologically feasible;

(b)optimising utilisation of the resources through economies of

•scale and functional specialisation;

(c)introducing a team-based determination of arm's length price

•with dynamic jurisdiction.

(9)The Central Government may, for the purpose of giving effect to the scheme

•made under sub-section (8), by notification in the Official Gazette, direct that any of

•the provisions of this Act shall not apply or shall apply with such exceptions,

•modifications and adaptations as may be specified in the notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

(10)Every notification issued under sub-section ( 8) and sub-section (9) shall,

•as soon as may be after the notification is issued, be laid before each House of

Parliament.";

•(XIV) in section 115AD, with effect from the 1st day of April, 2021,—

(a)in sub-section (1),—

(i)in the opening portion, for the words "Foreign Institutional

•Investor", the words "Specified Fund or Foreign Institutional Investor"

•shall be substituted;

•(ii) for clause (i), the following clause shall be substituted, namely:—

•" (i) the amount of income-tax calculated on the income in

•respect of securities referred to in clause (a), if any, included in the

•total income,—

(A)at the rate of twenty percent in case of Foreign Institutional

•Investor;

(B)at the rate of ten percent in case of specified fund;";

•(iii) in clause ( iv), for the words "Foreign Institutional Investor",

•the words "specified fund or Foreign Institutional Investor" shall be

•substituted;

(b)after sub-section ( 1), the following sub-section shall be inserted,

•namely:—

•"(1A) Notwithstanding anything contained in sub-section ( 1), in

•case of specified fund, the provision of this section shall apply only to the

•extent of income that is attributable to units held by non-resident (not

•being a permanent establishment of a non-resident in India) calculated in

•the prescribed manner.";

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(c)in sub-section ( 2), for the words "Foreign Institutional Investor", at

•both the places where they occur, the words "specified Fund or Foreign

•Institutional Investor" shall be substituted;

(d)in the Explanation, for clause (b), the following clauses shall be inserted

•with effect from the 1st day of April, 2021, namely:—

•'(b) the expression"permanent establishment" shall have the meaning

•assigned to it in clause (iiia) of section 92F;

(c)the expression "securities" shall have the meaning assigned to it

•in clause ( h) of section 2 of the Securities Contracts (Regulation)

•Act, 1956;

(d)the expression "specified fund" shall have the same meaning

•assigned to it in clause ( c) of the Explanation to clause ( 4D) of

SECTION Section 31

Untitled Section

•section 10.',

•(XV) In section 115BBDA, in the Explanation, in clause (b), in sub-clause (iii),—

(i)for the words, figures and letters, "under section 12A or section 12AA

•or section 12AB", the words, figures and letters "under section 12A or section

•12AA" shall be substituted and shall be deemed to have been substituted with

•effect from the 1st day of June, 2020;

•(ii) for the words, figures and letters, "under section 12A or section 12AA"

•the words, figures and letters "under section 12A or section 12AA or

SECTION Section 32

Untitled Section

•section 12AB" shall be substituted with effect from the 1st day of April, 2021;

•(XVI) in section 115JEE, after sub-section (2), the following sub-section

•shall be inserted with effect from the 1st day of April, 2021, namely:—

•"(2A) The provisions of this Chapter shall not apply to specified fund

•referred to in clause (c) of the Explanation to clause (4D) of section 10.";

•(XVII) in section 115TD,—

(i)for the words, figures and letters, "under section 12AA or

SECTION Section 33

Untitled Section

•section 12AB" wherever they occur, the words, figures and letters "under section

•12AA" shall be substituted and shall be deemed to have been substituted with

•effect from the 1st day of June, 2020;

•(ii) for the words, figures and letters, "under section 12AA" wherever

•they occur, the words, figures and letters "under section 12AA or section 12AB"

•shall be substituted with effect from the 1st day of April, 2021;

•(XVIII) after section 129, the following section shall be inserted with effect

•from the 1st day of November, 2020, namely:—

•"130. (1) The Central Government may make a scheme, by notification

•in the Official Gazette, for the purposes of—

(a)exercise of all or any of the powers and performance of all

•or any of the functions conferred on, or, as the case may be, assigned

•to income-tax authorities by or under this Act as referred to in

SECTION Section 34

Untitled Section

•section 120; or

(b)vesting the jurisdiction with the Assessing Officer as

•referred to in section 124; or

(c)exercise of power to transfer cases under section 127; or

(d)exercise of jurisdiction in case of change of incumbency as

•referred to in section 129,

•Faceless

•jurisdiction of

•income-tax

authorities.

•42 of 1956.

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•so as to impart greater efficiency, transparency and accountability by—

(i)eliminating the interface between the income-tax authority and

•the assessee or any other person, to the extent technologically feasible;

•(ii) optimising utilisation of the resources through economies of

•scale and functional specialisation;

•(iii) introducing a team-based exercise of powers and performance

•of functions by two or more income-tax authorities, concurrently, in respect

•of any area or persons or classes of persons or incomes or classes of

•income or cases or classes of cases, with dynamic jurisdiction.

(2)The Central Government may, for the purpose of giving effect to

•the scheme made under sub-section ( 1), by notification in the Official

•Gazette, direct that any of the provisions of this Act shall not apply or

•shall apply with such exceptions, modifications and adaptations as may

•be specified in the notification:

•Provided that no direction shall be issued after the 31st day of

•March, 2022.

(3)Every notification issued under sub-section ( 1) and sub-

•section (2) shall, as soon as may be after the notification is issued, be laid

•before each House of Parliament.";

•(XIX) in section 133A, with effect from the 1st day of November, 2020,—

(i)in sub-section ( 6), for the proviso, the following proviso shall be

•substituted, namely:—

•"Provided that no action under this section shall be taken by an

•income-tax authority without the approval of the Principal Director General

•or the Director General or the Principal Chief Commissioner or the Chief

•Commissioner";

•(ii) in the Explanation , for clause ( a), the following clause shall be

•substituted, namely:—

•'(a) "income-tax authority" means—

(i)a Principal Commissioner or Commissioner, a Principal

•Director or Director, a Joint Commissioner or Joint Director, an

•Assistant Director or a Deputy Director or an Assessing Officer, or

•a Tax Recovery Officer; and

•(ii) includes an Inspector of Income-tax, for the purposes of

SECTION Section 35

Untitled Section

•clause (i) of sub-section (1), clause (i) of sub-section (3) and sub-

•section (5),

•who is subordinate to the Principal Director General of Income-tax

•(Investigation) or the Director General of Income-tax (Investigation) or the

•Principal Chief Commissioner of Income-tax (TDS) or the Chief

•Commissioner of Income-tax (TDS), as the case may be;';

•(XX) in section 133C, with effect from the 1st day of November, 2020,—

(a)in sub-section (2), for the words "such information or document and

•make available the outcome of such processing to the Assessing Officer", the

•words, brackets, figures and letter "and utilise such information and document

•in accordance with the scheme notified under sub-section (3) or the provisions

•of section 135A" shall be substituted;

(b)after sub-section (3), the following sub-section shall be inserted,

•namely:—

•"(4) The scheme made under sub-section (3) shall cease to have

•effect from the date on which the scheme notified under section 135A in

•respect of this section comes into effect.";

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•(XXI) after section 135, the following section shall be inserted with effect from

•the 1st day of November, 2020, namely:—

•"135A. (1) The Central Government may make a scheme, by notification in

•the Official Gazette, for the purposes of calling for information under section 133,

•collecting certain information under section 133B, or calling for information by

•prescribed income-tax authority under section 133C, or exercise of power to

•inspect register of companies under section 134, or exercise of power of

•Assessing Officer under section 135 so as to impart greater efficiency,

•transparency and accountability by—

(a)eliminating the interface between the income-tax authority and

•the assessee or any other person to the extent technologically feasible;

(b)optimising utilisation of the resources through economies of

•scale and functional specialisation;

(c)introducing a team-based exercise of powers, including to call

•for, or collect, or process, or utilise, the information, with dynamic

jurisdiction.

(2)The Central Government may, for the purpose of giving effect to the scheme

•made under sub-section (1), by notification in the Official Gazette, direct that any of

•the provisions of this Act shall not apply or shall apply with such exceptions,

•modifications and adaptations as may be specified in the notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

(3)Every notification issued under sub-section (1) and sub-section (2) shall, as

•soon as may be after the notification is issued, be laid before each House of Parliament.";

•(XII) after section 142A, the following section shall be inserted with effect from

•the 1st day of November, 2020, namely:—

•"142B. (1) The Central Government may make a scheme, by notification in the

•Official Gazette, for the purposes of issuing notice under sub-section ( 1) or making

•inquiry before assessment under sub-section (2), or directing the assessee to get his

•accounts audited under sub-section ( 2A), of section 142, or estimating the value of

•any asset, property or investment by a V aluation Officer under section 142A, so as to

•impart greater efficiency, transparency and accountability by—

(a)eliminating the interface between the income-tax authority or Valuation

•Officer and the assessee or any person to the extent technologically feasible;

(b)optimising utilisation of the resources through economies of scale and

•functional specialisation;

(c)introducing a team-based issuance of notice or making of enquiries or

•issuance of directions or valuation with dynamic jurisdiction;

(2)The Central Government may, for the purpose of giving effect to the scheme

•made under sub-section (1), by notification in the Official Gazette, direct that any of

•the provisions of this Act shall not apply or shall apply with such exceptions,

•modifications and adaptations as may be specified in the notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

(3)Every notification issued under sub-section (1) and sub-section (2) shall, as

•soon as may be after the notification is issued, be laid before each House of Parliament";

•(XIII) in section 143, with effect from the 1st day of April, 2021,—

(i)in sub-section (3B), in the proviso, for the figures "2022", the figures

•"2021" shall be substituted;

•(ii) after sub-section ( 3C), the following sub-section shall be inserted,

•namely:—

•"(3D) Nothing contained in sub-section (

•3A) and sub-section (3B)

•Faceless

•inquiry or

Valuation.

•Faceless

•collection of

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•shall apply to the assessment made under sub-section ( 3) or under

SECTION Section 36

Untitled Section

•section 144, as the case may be, on or after the 1st day of April, 2021.";

•(XIV) after section 144A, the following section shall be inserted with effect from

•the 1st day of April, 2021, namely:—

•'144B. (1) Notwithstanding anything to the contrary contained in any

•other provisions of this Act, the assessment under sub-section (3) of section 143

•or under section 144, in the cases referred to in sub-section (2), shall be made in

•a faceless manner as per the following procedure, namely:—

(i)the National Faceless Assessment Centre shall serve a notice on

•the assessee under sub-section ( 2) of section 143;

•(ii) the assessee may, within fifteen days from the date of receipt of

•notice referred to in clause (i), file his response to the National Faceless

•Assessment Centre;

•(iii) where the assessee—

(a)has furnished his return of income under section 139 or in

•response to a notice issued under sub-section (1) of section 142 or

•sub-section (1) of section 148, and a notice under sub-section (2) of

SECTION Section 37

Untitled Section

•section 143 has been issued by the Assessing Officer or the

•prescribed income-tax authority, as the case may be; or

(b)has not furnished his return of income in response to a

•notice issued under sub-section (1) of section 142 by the Assessing

•Officer; or

(c)has not furnished his return of income under sub-section

(1)of section 148 and a notice under sub-section (1) of section 142

•has been issued by the Assessing Officer,

•the National Faceless Assessment Centre shall intimate the assessee that

•assessment in his case shall be completed in accordance with the procedure

•laid down under this section;

•(iv) the National Faceless Assessment Centre shall assign the case

•selected for the purposes of faceless assessment under this section to a

•specific assessment unit in any one Regional Faceless Assessment Centre

•through an automated allocation system;

(v)where a case is assigned to the assessment unit, it may make a

•request to the National Faceless Assessment Centre for—

(a)obtaining such further information, documents or evidence

•from the assessee or any other person, as it may specify;

(b)conducting of certain enquiry or verification by verification

•unit; and

(c)seeking technical assistance from the technical unit;

•(vi) where a request for obtaining further information, documents or

•evidence from the assessee or any other person has been made by the

•assessment unit, the National Faceless Assessment Centre shall issue

•appropriate notice or requisition to the assessee or any other person for

•obtaining the information, documents or evidence requisitioned by the

•assessment unit;

•(vii) the assessee or any other person, as the case may be, shall file

•his response to the notice referred to in clause (vi), within the time specified

•therein or such time as may be extended on the basis of an application in

•this regard, to the National Faceless Assessment Centre;

•Faceless

assessment.

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•(viii) where a request for conducting of certain enquiry or verification

•by the verification unit has been made by the assessment unit, the request

•shall be assigned by the National Faceless Assessment Centre to a

•verification unit in any one Regional Faceless Assessment Centres through

•an automated allocation system;

•(ix) where a request for seeking technical assistance from the

•technical unit has been made by the assessment unit, the request shall be

•assigned by the National Faceless Assessment Centre to a technical unit

•in any one Regional Faceless Assessment Centres through an automated

•allocation system;

(x)the National Faceless Assessment Centre shall send the report

•received from the verification unit or the technical unit, based on the request

•referred to in clause (viii) or clause (ix) to the concerned assessment unit;

•(xi) where the assessee fails to comply with the notice referred to in

SECTION Section 38

Untitled Section

•clause (vi) or notice issued under sub-section (1) of section 142 or with a

•direction issued under sub-section ( 2A) of section 142, the National

•Faceless Assessment Centre shall serve upon such assessee a notice

•under section 144 giving him an opportunity to show-cause, on a date and

•time to be specified in the notice, why the assessment in his case should

•not be completed to the best of its judgment;

•(xii) the assessee shall, within the time specified in the notice referred

•to in clause ( xi) or such time as may be extended on the basis of an

•application in this regard, file his response to the National Faceless

•Assessment Centre;

•(xiii) where the assessee fails to file response to the notice referred

•to in clause (xi) within the time specified therein or within the extended

•time, if any, the National Faceless Assessment Centre shall intimate such

•failure to the assessment unit;

•(xiv) the assessment unit shall, after taking into account all the

•relevant material available on the record make in writing, a draft assessment

•order or, in a case where intimation referred to in clause (xiii) is received

•from the National Faceless Assessment Centre, make in writing, a draft

•assessment order to the best of its judgment, either accepting the income

•or sum payable by, or sum refundable to, the assessee as per his return or

•making variation to the said income or sum, and send a copy of such order

•to the National Faceless Assessment Centre;

•(xv) the assessment unit shall, while making draft assessment order,

•provide details of the penalty proceedings to be initiated therein, if any;

•(xvi) the National Faceless Assessment Centre shall examine the

•draft assessment order in accordance with the risk management strategy

•specified by the Board, including by way of an automated examination

•tool, whereupon it may decide to—

(a)finalise the assessment, in case no variation prejudicial to

•the interest of assessee is proposed, as per the draft assessment

•order and serve a copy of such order and notice for initiating penalty

•proceedings, if any, to the assessee, along with the demand notice,

•specifying the sum payable by, or refund of any amount due to, the

•assessee on the basis of such assessment; or

(b)provide an opportunity to the assessee, in case any

•variation prejudicial to the interest of assessee is proposed, by

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•serving a notice calling upon him to show cause as to why the

•proposed variation should not be made; or

(c)assign the draft assessment order to a review unit in any one

•Regional Faceless Assessment Centre, through an automated allocation

•system, for conducting review of such order;

•(xvii) the review unit shall conduct review of the draft assessment order

•referred to it by the National Faceless Assessment Centre whereupon it may

•decide to—

(a)concur with the draft assessment order and intimate the National

•Faceless Assessment Centre about such concurrence; or

(b)suggest such variation, as it may deem fit, in the draft assessment

•order and send its suggestions to the National Faceless Assessment Centre;

•(xviii) the National Faceless Assessment Centre shall, upon receiving

•concurrence of the review unit, follow the procedure laid down in—

(a)sub-clause (a) of clause (xvi); or

(b)sub-clause (b) of clause (xvi);

•(xix) the National Faceless Assessment Centre shall, upon receiving

•suggestions for variation from the review unit, assign the case to an assessment

•unit, other than the assessment unit which has made the draft assessment order,

•through an automated allocation system;

•(xx) the assessment unit shall, after considering the variations suggested

•by the review unit, send the final draft assessment order to the National Faceless

•Assessment Centre;

•(xxi) the National Faceless Assessment Centre shall, upon receiving final

•draft assessment order follow the procedure laid down in—

(a)sub-clause (a) of clause (xvi); or

(b)sub-clause (b) of clause (xvi);

•(xxii) the assessee may, in a case where show-cause notice has been

•served upon him as per the procedure laid down in sub-clause (b) of clause (xvi),

•furnish his response to the National Faceless Assessment Centre on or before

•the date and time specified in the notice or within the extended time, if any;

•(xxiii) the National Faceless Assessment Centre shall,—

(a)where no response to the show-cause notice is received as per

SECTION Section 39

Untitled Section

•clause (xxii),—

(A)in a case where the draft assessment order or the final draft

•assessment order is in respect of an eligible assessee and proposes

•to make any variation which is prejudicial to the interest of said

•assessee, forward the draft assessment order or final draft assessment

•order to such assessee; or

(B)in any other case, finalise the assessment as per the draft

•assessment order or the final draft assessment order and serve a

•copy of such order and notice for initiating penalty proceedings, if

•any, to the assessee, alongwith the demand notice, specifying the

•sum payable by, or refund of any amount due to, the assessee on

•the basis of such assessment;

(b)in any other case, send the response received from the assessee

•to the assessment unit;

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•(xxiv) the assessment unit shall, after taking into account the response

•furnished by the assessee, make a revised draft assessment order and send it to

•the National Faceless Assessment Centre;

•(xxv) the National Faceless Assessment Centre shall, upon receiving the

•revised draft assessment order,—

(a)in case the variations proposed in the revised draft assessment

•order are not prejudicial to the interest of the assessee in comparison to

•the draft assessment order or the final draft assessment order, and—

(A)in case the revised draft assessment order is in respect of

•an eligible assessee and there is any variation prejudicial to the

•interest of the assessee proposed in draft assessment order or the

•final draft assessment order, forward the said revised draft

•assessment order to such assessee;

(B)in any other case, finalise the assessment as per the revised

•draft assessment order and serve a copy of such order and notice

•for initiating penalty proceedings, if any, to the assessee, alongwith

•the demand notice, specifying the sum payable by, or refund of any

•amount due to, the assessee on the basis of such assessment;

(b)in case the variations proposed in the revised draft assessment

•order are prejudicial to the interest of the assessee in comparison to the

•draft assessment order or the final draft assessment order, provide an

•opportunity to the assessee, by serving a notice calling upon him to

•show-cause as to why the proposed variation should not be made;

•(xxvi) the procedure laid down in clauses ( xxiii ), ( xxiv) and ( xxv)

•shall apply mutatis mutandis to the notice referred to in sub-clause ( b) of

SECTION Section 4

Untitled Section

2.(1) In this Act, unless the context otherwise requires,—

(a)"specified Act" means—

•Short title and

commencement.

Definitions.

•Bill No. 116 of 2020

•5

•10

•AS INTRODUCED IN LOK SABHA

•2

(i)the Wealth-tax Act, 1957;

•(ii) the Income-tax Act, 1961;

•(iii) the Prohibition of Benami Property Transactions Act, 1988;

•(iv) Chapter VII of the Finance (No. 2) Act, 2004;

(v)Chapter VII of the Finance Act, 2013;

•( vi) the Black Money (Undisclosed Foreign Income and Assets) and

•Imposition of Tax Act, 2015;

•(vii) Chapter VIII of the Finance Act, 2016; or

•(viii) the Direct Tax Vivad se Vishwas Act, 2020;

(b)"notification" means the notification published in the Official Gazette.

(2)The words and expressions used herein and not defined, but defined in the specified

•Act, the Central Excise Act,1944, the Customs Act, 1962, the Customs Tariff Act,1975 or the

•Finance Act,1994, as the case may be, shall have the meaning respectively assigned to them

•in that Act.

SECTION Section 40

Untitled Section

•clause (xxv);

•(xxvii) where the draft assessment order or final draft assessment order or

•revised draft assessment order is forwarded to the eligible assessee as per

•item (A) of sub-clause ( a) of clause ( xxiii) or item (A) of sub-clause ( a) of

SECTION Section 41

Untitled Section

•clause (xxv), such assessee shall, within the period specified in sub-section (2)

•of section 144C, file his acceptance of the variations to the National Faceless

•Assessment Centre;

•(xxviii) the National Faceless Assessment Centre shall,—

(a)upon receipt of acceptance as per clause (xxvii); or

(b)if no objections are received from the eligible assessee within the

•period specified in sub-section (2) of section 144C,

•finalise the assessment within the time allowed under sub-section ( 4) of

SECTION Section 42

Untitled Section

•section 144C and serve a copy of such order and notice for initiating penalty

•proceedings, if any, to the assessee, alongwith the demand notice, specifying

•the sum payable by, or refund of any amount due to, the assessee on the basis

•of such assessment;

•(xxix) where the eligible assessee files his objections with the Dispute

•Resolution Panel, the National Faceless Assessment Centre shall upon receipt

•of the directions issued by the Dispute Resolution Panel under sub-section (5)

•of section 144C, forward such directions to the concerned assessment unit;

•(xxx) the assessment unit shall in conformity of the directions issued by

•the Dispute Resolution panel under sub-section (5) of section 144C, prepare a

•draft assessment order in accordance with sub-section (13) of section 144C and

•send a copy of such order to the National Faceless Assessment Centre;

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•(xxxi) the National Faceless Assessment Centre shall, upon receipt of

•draft assessment order referred to in clause (xxx), finalise the assessment within

•the time allowed under sub-section ( 13) of section 144C and serve a copy of

•such order and notice for initiating penalty proceedings, if any, to the assessee,

•alongwith the demand notice, specifying the sum payable by, or refund of any

•amount due to, the assessee on the basis of such assessment;

•(xxxii) The National Faceless Assessment Centre shall, after completion

•of assessment, transfer all the electronic records of the case to the Assessing

•Officer having jurisdiction over the said case for such action as may be required

•under the Act.

(2)The faceless assessment under sub-section ( 1) shall be made in respect of

•such territorial area, or persons or class of persons, or incomes or class of incomes, or

•cases or class of cases, as may be specified by the Board.

(3)The Board may, for the purposes of faceless assessment, set up the following

•Centres and units and specify their respective jurisdiction, namely:—

(i)a National Faceless Assessment Centre to facilitate the conduct of

•faceless assessment proceedings in a centralised manner, which shall be vested

•with the jurisdiction to make faceless assessment;

•(ii) Regional Faceless Assessment Centres, as it may deem necessary, to

•facilitate the conduct of faceless assessment proceedings in the cadre controlling

•region of a Principal Chief Commissioner, which shall be vested with the

•jurisdiction to make faceless assessment;

•(iii) assessment units, as it may deem necessary to facilitate the conduct

•of faceless assessment, to perform the function of making assessment, which

•includes identification of points or issues material for the determination of any

•liability (including refund) under the Act, seeking information or clarification on

•points or issues so identified, analysis of the material furnished by the assessee

•or any other person, and such other functions as may be required for the purposes

•of making faceless assessment;

•(iv) verification units, as it may deem necessary to facilitate the conduct of

•faceless assessment, to perform the function of verification, which includes

•enquiry, cross verification, examination of books of accounts, examination of

•witnesses and recording of statements, and such other functions as may be

•required for the purposes of verification;

(v)technical units, as it may deem necessary to facilitate the conduct of

•faceless assessment, to perform the function of providing technical assistance

•which includes any assistance or advice on legal, accounting, forensic,

•information technology, valuation, transfer pricing, data analytics, management

•or any other technical matter which may be required in a particular case or a class

•of cases, under this section; and

•(vi) review units, as it may deem necessary to facilitate the conduct of

•faceless assessment, to perform the function of review of the draft assessment

•order, which includes checking whether the relevant and material evidence has

•been brought on record, whether the relevant points of fact and law have been

•duly incorporated in the draft order, whether the issues on which addition or

•disallowance should be made have been discussed in the draft order, whether

•the applicable judicial decisions have been considered and dealt with in the draft

•order, checking for arithmetical correctness of variations proposed, if any, and

•such other functions as may be required for the purposes of review.

(4)The assessment unit, verification unit, technical unit and the review unit

•shall have the following authorities, namely:—

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(a)Additional Commissioner or Additional Director or Joint Commissioner

•or Joint Director, as the case may be;

(b)Deputy Commissioner or Deputy Director or Assistant Commissioner

•or Assistant Director, or Income-tax Officer, as the case may be;

(c)such other income-tax authority, ministerial staff, executive or

•consultant, as considered necessary by the Board.

(5)All communication among the assessment unit, review unit, verification unit

•or technical unit or with the assessee or any other person with respect to the information

•or documents or evidence or any other details, as may be necessary for the purposes

•of making a faceless assessment shall be through the National Faceless Assessment

•Centre;

(6)All communications between the National Faceless Assessment Centre and

•the assessee, or his authorised representative, or any other person shall be exchanged

•exclusively by electronic mode; and all internal communications between the National

•Faceless Assessment Centre, Regional Faceless Assessment Centres and various

•units shall be exchanged exclusively by electronic mode:

•Provided that the provisions of this sub-section shall not apply to the enquiry or

•verification conducted by the verification unit in the circumstances referred to in

•sub-clause (g) of clause (xii) of sub-section (7);

(7)For the purposes of faceless assessment—

(i)an electronic record shall be authenticated by—

(a)the National Faceless Assessment Centre by affixing its digital

•signature;

(b)assessee or any other person, by affixing his digital signature if

•he is required to furnish his return of income under digital signature, and

•in any other case, by affixing his digital signature or under electronic

•verification code in the prescribed manner;

•(ii) every notice or order or any other electronic communication shall be

•delivered to the addressee, being the assessee, by way of—

(a)placing an authenticated copy thereof in the assessee's registered

•account; or

(b)sending an authenticated copy thereof to the registered email

•address of the assessee or his authorised representative; or

(c)uploading an authenticated copy on the assessee's Mobile App,

•and followed by a real time alert;

•(iii) every notice or order or any other electronic communication shall be

•delivered to the addressee, being any other person, by sending an authenticated

•copy thereof to the registered email address of such person, followed by a real

•time alert;

•(iv) the assessee shall file his response to any notice or order or any other

•electronic communication, through his registered account, and once an

•acknowledgement is sent by the National Faceless Assessment Centre containing

•the hash result generated upon successful submission of response, the response

•shall be deemed to be authenticated;

(v)the time and place of dispatch and receipt of electronic record shall be

•determined in accordance with the provisions of section 13 of the Information

•Technology Act, 2000;

•21 of 2000.

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•(vi) a person shall not be required to appear either personally or through

•authorised representative in connection with any proceedings before the income-

•tax authority at the National Faceless Assessment Centre or Regional Faceless

•Assessment Centre or any unit set up under this sub-section;

•(vii) in a case where a variation is proposed in the draft assessment order

•or final draft assessment order or revised draft assessment order, and an

•opportunity is provided to the assessee by serving a notice calling upon him to

•show cause as to why the assessment should not be completed as per the such

•draft or final draft or revised draft assessment order, the assessee or his authorised

•representative, as the case may be, may request for personal hearing so as to

•make his oral submissions or present his case before the income-tax authority in

•any unit;

•(viii) the Chief Commissioner or the Director General, in charge of the

•Regional Faceless Assessment Centre, under which the concerned unit is set

•up, may approve the request for personal hearing referred to in clause (vii) if he

•is of the opinion that the request is covered by the circumstances referred to in

•sub-clause (h) of clause (xii);

•(ix) where the request for personal hearing has been approved by the

•Chief Commissioner or the Director General, in charge of the Regional Faceless

•Assessment Centre, such hearing shall be conducted exclusively through video

•conferencing or video telephony, including use of any telecommunication

•application software which supports video conferencing or video telephony, in

•accordance with the procedure laid down by the Board;

(x)subject to the proviso to sub-section (6), any examination or recording

•of the statement of the assessee or any other person (other than statement

•recorded in the course of survey under section 133A of the Act) shall be

•conducted by an income-tax authority in any unit, exclusively through video

•conferencing or video telephony, including use of any telecommunication

•application software which supports video conferencing or video telephony in

•accordance with the procedure laid down by the Board;

•(xi) the Board shall establish suitable facilities for video conferencing or

•video telephony including telecommunication application software which

•supports video conferencing or video telephony at such locations as may be

•necessary, so as to ensure that the assessee, or his authorised representative, or

•any other person is not denied the benefit of faceless assessment merely on the

•consideration that such assessee or his authorised representative, or any other

•person does not have access to video conferencing or video telephony at his

•end;

•(xii) the Principal Chief Commissioner or the Principal Director General, in

•charge of the National Faceless Assessment Centre shall, with the prior approval

•of the Board, lay down the standards, procedures and processes for effective

•functioning of the National Faceless Assessment Centre, Regional Faceless

•Assessment Centres and the unit setup, in an automated and mechanised

•environment, including format, mode, procedure and processes in respect of the

•following, namely:—

(a)service of the notice, order or any other communication;

(b)receipt of any information or documents from the person in

•response to the notice, order or any other communication;

(c)issue of acknowledgment of the response furnished by the person;

(d)provision of "e-proceeding" facility including login account

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•facility, tracking status of assessment, display of relevant details, and

•facility of download;

(e)accessing, verification and authentication of information and

•response including documents submitted during the assessment

•proceedings;

(f)receipt, storage and retrieval of information or documents in a

•centralised manner;

(g)circumstances in which proviso to sub-section (6) shall apply;

(h)circumstances in which personal hearing referred to clause (viii)

•shall be approved;

(i)general administration and grievance redressal mechanism in the

•respective Centres and units.

(8)Notwithstanding anything contained in sub-section ( 1) or sub-section ( 2),

•the Principal Chief Commissioner or the Principal Director General in charge of National

•Faceless Assessment Centre may at any stage of the assessment, if considered

•necessary, transfer the case to the Assessing Officer having jurisdiction over such

•case, with the prior approval of the Board.

(9)Notwithstanding anything contained in any other provision of this Act,

•assessment made under sub-section ( 3) of section 143 or under section 144 in the

•cases referred to in sub-section (2) (other than the cases transferred under sub-section

(8), on or after the 1st day of April, 2021, shall be non-est if such assessment is not

•made in accordance with the procedure laid down under this section.

Explanation.—In this section, unless the context otherwise requires—

(a)"addressee" shall have the same meaning as assigned to it in

SECTION Section 43

Untitled Section

•clause ( b) of sub-section ( 1) of section 2 of the Information Technology

•Act, 2000;

(b)"authorised representative" shall have the same meaning as assigned

•to it in sub-section (2) of section 288;

(c)"automated allocation system" means an algorithm for randomised

•allocation of cases, by using suitable technological tools, including artificial

•intelligence and machine learning, with a view to optimise the use of resources;

(d)"automated examination tool" means an algorithm for standardised

•examination of draft orders, by using suitable technological tools, including

•artificial intelligence and machine learning, with a view to reduce the scope of

•discretion;

(e)"computer resource" shall have the same meaning as assigned to it in

SECTION Section 44

Untitled Section

•clause ( k) of sub-section ( 1) of section 2 of the Information Technology

•Act, 2000;

(f)"computer system" shall have the same meaning as assigned to it in

SECTION Section 45

Untitled Section

•clause ( l) of sub-section ( 1) of section 2 of the Information Technology

•Act, 2000;

(g)"computer resource of assessee" shall include assessee's registered

•account in designated portal of the Income-tax Department, the Mobile App

•linked to the registered mobile number of the assessee, or the registered email

•address of the assessee with his email service provider;

(h)"digital signature" shall have the same meaning as assigned to it in

SECTION Section 46

Untitled Section

•clause ( p) of sub-section ( 1

•) of section 2 of the Information Technology

•Act, 2000;

•21 of 2000.

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(i)"designated portal" means the web portal designated as such by the

•Principal Chief Commissioner or Principal Director General, in charge of the

•National Faceless Assessment Centre;

(j)"Dispute Resolution Panel" shall have the same meaning as assigned

•to it in clause (a) of sub-section (15) of section 144C;

(k)"faceless assessment" means the assessment proceedings conducted

•electronically in 'e-Proceeding' facility through assessee's registered account in

•designated portal;

(l)"electronic record" shall have the same meaning as assigned to it in

SECTION Section 47

Untitled Section

•clause ( t) of sub-section ( 1) of section 2 of the Information Technology

•Act, 2000;

(m)"eligible assessee" shall have the same meaning as assigned to in

SECTION Section 48

Untitled Section

•clause (b) of sub-section (15) of section 144C;

(n)"email" or "electronic mail" and "electronic mail message" means a

•message or information created or transmitted or received on a computer, computer

•system, computer resource or communication device including attachments in

•text, image, audio, video and any other electronic record, which may be transmitted

•with the message;

(o)"hash function" and "hash result" shall have the same meaning as

•assigned to them in the Explanation to sub-section ( 2) of section 3 of the

•Information Technology Act, 2000;

(p)"Mobile app" shall mean the application software of the Income-tax

•Department developed for mobile devices which is downloaded and installed on

•the registered mobile number of the assessee;

(q)"originator" shall have the same meaning as assigned to it in

SECTION Section 49

Untitled Section

•clause ( za) of sub-section ( 1) of section 2 of the Information Technology

•Act, 2000;

(r)"real time alert" means any communication sent to the assessee, by

•way of Short Messaging Service on his registered mobile number, or by way of

•update on his Mobile App, or by way of an email at his registered email address,

•so as to alert him regarding delivery of an electronic communication;

(s)"registered account" of the assessee means the electronic filing account

•registered by the assessee in designated portal;

(t)"registered e-mail address" means the e-mail address at which an

•electronic communication may be delivered or transmitted to the addressee,

•including—

(i)the email address available in the electronic filing account of the

•addressee registered in designated portal; or

•(ii) the e-mail address available in the last income-tax return furnished

•by the addressee; or

•(iii) the e-mail address available in the Permanent Account Number

•database relating to the addressee; or

•(iv) in the case of addressee being an individual who possesses the

•Aadhaar number, the e-mail address of addressee available in the database

•of Unique Identification Authority of India; or

(v)in the case of addressee being a company, the e-mail address of

•the company as available on the official website of Ministry of Corporate

•Affairs; or

•21 of 2000.

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•(vi) any e-mail address made available by the addressee to the

•income-tax authority or any person authorised by such authority.

(u)"registered mobile number" of the assessee means the mobile number

•of the assessee, or his authorised representative, appearing in the user profile of

•the electronic filing account registered by the assessee in designated portal;

(v)"video conferencing or video telephony" means the technological

•solutions for the reception and transmission of audio-video signals by users at

•different locations, for communication between people in real-time.

•(XXV) in section 144C, after sub-section (14A), the following sub-sections shall

•be inserted with effect from the 1st day of November, 2020, namely:—

•“(14B) The Central Government may make a scheme, by notification in the

•Official Gazette, for the purposes of issuance of directions by the dispute

•resolution panel, so as to impart greater efficiency, transparency and

•accountability by—

(a)eliminating the interface between the dispute resolution panel

•and the eligible assessee or any other person to the extent technologically

•feasible;

(b)optimising utilisation of the resources through economies of

•scale and functional specialisation;

(c)introducing a mechanism with dynamic jurisdiction for issuance

•of directions by dispute resolution panel.

•(14C) The Central Government may, for the purpose of giving effect to the

•scheme made under sub-section (14B), by notification in the Official Gazette,

•direct that any of the provisions of this Act shall not apply or shall apply with

•such exceptions, modifications and adaptations as may be specified in the

•notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

•(14D ) Every notification issued under sub-section ( 14B ) and

•sub-section (14C) shall, as soon as may be after the notification is issued, be

•laid before each House of Parliament.";

•(XXVI) after section 151, the following section shall be inserted with effect from

•the 1st day of November, 2020, namely:—

•“151A. (1) The Central Government may make a scheme, by notification in

•the Official Gazette, for the purposes of assessment, reassessment or

•re-computation under section 147 or issuance of notice under section 148 or

•sanction for issue of such notice under section 151, so as to impart greater

•efficiency, transparency and accountability by—

(a)eliminating the interface between the income-tax authority and

•the assessee or any other person to the extent technologically feasible;

(b)optimising utilisation of the resources through economies of

•scale and functional specialisation;

(c)introducing a team-based assessment, reassessment,

•re-computation or issuance or sanction of notice with dynamic jurisdiction.

(2)The Central Government may, for the purpose of giving effect to the scheme

•made under sub-section (1), by notification in the Official Gazette, direct that any of

•the provisions of this Act shall not apply or shall apply with such exceptions,

•modifications and adaptations as may be specified in the notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

•Faceless

•assessment of

•income

•escaping

assessment.

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(3)Every notification issued under sub-section (1) and sub-section (2) shall, as

•soon as may be after the notification is issued, be laid before each House of Parliament.";

•(XXVII) after section 157 , the following section shall be inserted with effect

•from the 1st day of November, 2020, namely:—

157A.(1) The Central Government may make a scheme, by notification in

•the Official Gazette, for the purposes of rectification of any mistake apparent

•from record under section 154 or other amendments under section 155 or issue of

•notice of demand under section 156, or intimation of loss under section 157, so

•as to impart greater efficiency, transparency and accountability by—

(a)eliminating the interface between the income-tax authority and the

•assessee or any other person to the extent technologically feasible;

(b)optimising utilisation of the resources through economies of scale

•and functional specialisation;

(c)introducing a team-based rectification of mistakes, amendment of

•orders, issuance of notice of demand or intimation of loss, with dynamic

jurisdiction.

(2)The Central Government may, for the purpose of giving effect to the scheme

•made under sub-section (1), by notification in the Official Gazette, direct that any of

•the provisions of this Act shall not apply or shall apply with such exceptions,

•modifications and adaptations as may be specified in the notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

(3)Every notification issued under sub-section (1) and sub-section (2) shall, as

•soon as may be after the notification is issued, be laid before each House of Parliament.";

•(XXVIII) in section 196D, after sub-section (1), the following sub-section

•shall be inserted with effect from the 1st day of November, 2020, namely:—

•"(1A) Where any income in respect of securities referred to in clause (a) of

•sub-section (1) of section 115AD, not being income by way of interest referred

•to in section 194LD, is payable to a specified fund [referred to in Clause (c) of the

•Explanation to clause (4D) of section 10], the person responsible for making the

•payment shall, at the time of credit of such income to the account of the payee,

•or at the time of payment thereof by any mode, whichever is earlier, deduct the

•income-tax thereon at the rate of ten per cent.:

•Provided that no deduction shall be made in respect of an income exempt

•under clause (4D) of section 10.";

•(XXIX) after section 197A, the following section shall be inserted and shall be

•deemed to have been inserted with effect from the 14th day of May, 2020, namely:—

•"197B. In case the provisions of sections 193, 194, 194A, 194C, 194D,

•194DA,194EE, 194F, 194G , 194H, 194-I,194-IA, 194-IB, 194-IC, 194J, 194K,194LA,

•sub-section (1) of section 194LBA, clause (i) of section 194LBB, sub-section (1)

•of section 194LBC, sections 194M and 194-O require deduction of tax at source

•during the period commencing from the 14th day of May, 2020 to the 31st day of

•March, 2021, then notwithstanding anything contained in these sections the

•deduction of tax shall be made at the rate being the three-fourth of the rate

•specified in these sections.";

•(XXX) in section 206C, after sub-section (10), the following sub-section

•shall be inserted and shall be deemed to have been inserted with effect from the

•14th day of May, 2020, namely:—

•"(10A) In case the provisions of sub-sections (1) [except the goods referred

•Faceless

•rectification,

•amendments

•and issuance

•of notice or

intimation.

•Lower

•deduction in

•certain cases

•for a limited

period.

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•at serial number (i) in the TABLE], (1C), (1F) or (1H) require collection of tax at

•source during the period commencing from the 14th day of May, 2020 to the 31st

•day of March, 2021, then notwithstanding anything contained in these

•sub-sections the collection of tax shall be made at the rate being the three-fourth

•of the rate specified in these sub-sections.";

•(XXXI) after section 230, the following section shall be inserted with effect

•from the 1st day of November, 2020, namely:—

•"231. (1) The Central Government may make a scheme, by notification in

•the Official Gazette, for the purposes of issuance of certificate for deduction of

•income-tax at any lower rates or no deduction of income-tax under section 197, or

•deeming a person to be an assessee in default under sub-section ( 1) of

SECTION Section 5

Untitled Section

•CHAPTER II

•R

•ELAXATION OF CERTAIN PROVISIONS OF SPECIFIED ACT

3.(1) Where, any time limit has been specified in, or prescribed or notified under, the

•specified Act which falls during the period from the 20th day of March, 2020 to the 31st day

•of December, 2020, or such other date after the 31st day of December, 2020, as the Central

•Government may, by notification, specify in this behalf, for the completion or compliance of

•such action as—

(a)completion of any proceeding or passing of any order or issuance of any

•notice, intimation, notification, sanction or approval, or such other action, by whatever

•name called, by any authority, commission or tribunal, by whatever name called, under

•the provisions of the specified Act; or

(b)filing of any appeal, reply or application or furnishing of any report, document,

•return or statement or such other record, by whatever name called, under the provisions

•of the specified Act; or

(c)in case where the specified Act is the Income-tax Act, 1961,—

(i)making of investment, deposit, payment, acquisition, purchase,

•construction or such other action, by whatever name called, for the purposes of

•claiming any deduction, exemption or allowance under the provisions contained

•in—

(I)sections 54 to 54GB, or under any provisions of Chapter VI-A

•under the heading "B.-Deductions in respect of certain payments" thereof;

•or

•(II) such other provisions of that Act, subject to fulfillment of such

•conditions, as the Central Government may, by notification, specify; or

•(ii) beginning of manufacture or production of articles or things or

•providing any services referred to in section 10AA of that Act, in a case where

•the letter of approval, required to be issued in accordance with the provisions of

•the Special Economic Zones Act, 2005, has been issued on or before the 31st day

•of March, 2020,

•Relaxation of

•certain

•provisions of

•specified Act.

•43 of 1961.

•27 of 1957.

•43 of 1961.

•45 of 1988.

•22 of 2004.

•17 of 2013.

•22 of 2015.

•28 of 2016.

•3 of 2020.

•28 of 2005.

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•1 of 1944.

•52 of 1962.

•51 of 1975.

•32 of 1994.

•3

•and where completion or compliance of such action has not been made within

•such time, then, the time limit for completion or compliance of such action shall,

•notwithstanding anything contained in the specified Act, stand extended to the

•31st day of March, 2021, or such other date after the 31st day of March, 2021, as

•the Central Government may, by notification, specify in this behalf:

•Provided that the Central Government may specify different dates for completion

•or compliance of different actions:

•Provided further that such action shall not include payment of any amount as is

•referred to in sub-section (2):

•Provided also that where the specified Act is the Income-tax Act, 1961 and the

•compliance relates to—

(i)furnishing of return under section 139 thereof, for the assessment year

•commencing on the—

(a)1st day of April, 2019, the provision of this sub-section shall have the

•effect as if for the figures, letters and words "31st day of March, 2021", the

•figures, letters and words "30th day of September, 2020" had been substituted;

(b)1st day of April, 2020, the provision of this sub-section shall have the

•effect as if for the figures, letters and words "31st day of March, 2021", the

•figures, letters and words "30th day of November, 2020" had been substituted;

•(ii) delivering of statement of deduction of tax at source under sub-section (2A)

•of section 200 of that Act or statement of collection of tax at source under sub-section

•(3A) of section 206C thereof for the month of February or March, 2020, or for the

•quarter ending on the 31st day of March, 2020, as the case may be, the provision of this

•sub-section shall have the effect as if for the figures, letters and words "31st day of

•March, 2021", the figures, letters and words "15th day of July, 2020" had been

•substituted;

•(iii) delivering of statement of deduction of tax at source under sub-section (3)

•of section 200 of that Act or statement of collection of tax at source under proviso to

•sub-section (3) of section 206C thereof for the month of February or March, 2020, or

•for the quarter ending on the 31st day of March, 2020, as the case may be, the provision

•of this sub-section shall have the effect as if for the figures, letters and words "31st

•day of March, 2021", the figures, letters and words "31st day of July, 2020" had been

•substituted;

•(iv) furnishing of certificate under section 203 of that Act in respect of deduction

•or payment of tax under section 192 thereof for the financial year commencing on the

•1st day of April, 2019, the provision of this sub-section shall have the effect as if for the

•figures, letters and words "31st day of March, 2021", the figures, letters and words

•"15th day of August, 2020" had been substituted;

(v)sections 54 to 54GB of that Act, referred to in item (I) of sub-clause ( i) of

SECTION Section 50

Untitled Section

•section 201 or sub-section (6A) of section 206C, issuance of certificate for lower

•collection of tax under sub-section ( 9) of section 206C or passing of order or

•amended order under sub-section (3) or sub-section (4) of section 210, or reduction

•or waiver of the amount of interest paid or payable by an assessee under

•sub-section (2A), or extending the time for payment or allowing payment by

•instalment under sub-section (3), or treating the assessee as not being in default

•under sub-section (6) or sub-section (7) of section 220, or levy of penalty under

SECTION Section 51

Untitled Section

•section 221, or drawing of certificate by the Tax Recovery Officer under

SECTION Section 52

Untitled Section

•section 222, or jurisdiction of Tax Recovery Officer under section 223, or stay of

•proceedings in pursuance of certificate and amendment or cancellation thereof

•by the Tax Recovery Officer under section 225, or other modes of recovery under

SECTION Section 53

Untitled Section

•section 226 or issuance of tax clearance certificate under section 230 so as to

•impart greater efficiency, transparency and accountability by—

(a)eliminating the interface between the income-tax authority and

•the assessee or any other person to the extent technologically feasible;

(b)optimising utilisation of the resources through economies of

•scale and functional specialisation;

(c)introducing a team-based issuance of certificate for deduction or

•collection of income-tax at lower rate, or for no deduction, or for deeming

•a person to be an assessee in default, or for passing of an order or amended

•order, or extending the time for payment,or allowing payment by instalment,

•or reduction or waiver of interest, or for treating the assessee as not being

•in default, or for levy of penalty or for drawing of certificate or stay of

•proceedings in pursuance of certificate and amendment or cancellation

•thereof, by, or jurisdiction of, Tax Recovery Officer or other modes of

•recovery or issuance of tax clearance certificate, with dynamic jurisdiction.

(2)The Central Government may, for the purpose of giving effect to the scheme

•made under sub-section (1), by notification in the Official Gazette, direct that any of

•the provisions of this Act shall not apply or shall apply with such exceptions,

•modifications and adaptations as may be specified in the notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

(3)Every notification issued under sub-section (1) and sub-section (2) shall, as

•soon as may be after the notification is issued, be laid before each House of Parliament.";

•(XXXII) in section 253,—

(a)in sub-section (1), in clause (c),—

(i)for the words, figures and letters "under section 12AA or section

•12AB", the words, figures and letters "under section 12AA" shall be

•substituted and shall be deemed to have been substituted with effect from

•the 1st day of June, 2020;

•Faceless

•collection and

•recovery of

tax.

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•(ii) for the words, figures and letters "under section 12AA" the

•words, figures and letters "under section 12AA or section 12AB" shall be

•substituted with effect from the 1st day of April, 2021;

(b)after sub-section (7), the following sub-sections shall be inserted with

•effect from the 1st day of November, 2020, namely:—

•"(8) The Central Government may make a scheme, by notification in

•the Official Gazette, for the purposes of appeal to the Appellate Tribunal

•under sub-section (2), so as to impart greater efficiency, transparency and

•accountability by—

(a)optimising utilisation of the resources through economies

•of scale and functional specialisation;

(b)introducing a team-based mechanism for appeal to the

•Appellate Tribunal, with dynamic jurisdiction .

(9)The Central Government may, for the purpose of giving effect to the scheme

•made under sub-section (8), by notification in the Official Gazette, direct that any of

•the provisions of this Act shall not apply or shall apply with such exceptions,

•modifications and adaptations as may be specified in the notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

(10)Every notification issued under sub-section ( 8) and sub-section (9) shall,

•as soon as may be after the notification is issued, be laid before each House of

Parliament.";

•(XXXIII) in section 263, in sub-section (1), in Explanation 1, in clause (b),

•and in Explanation 2, after the words "the Principal", the words "Chief

•Commissioner or Chief Commissioner or Principal" shall be inserted with effect

•from the 1st day of November, 2020;

•(XXXIV) in section 264, in sub-section (1), in sub-section (2), in proviso to

•sub-section (3), in sub-section (4), in Explanation 1 and in Explanation 2, after

•the words "the Principal", the words "Chief Commissioner or Chief Commissioner

•or Principal" shall be inserted with effect from the 1st day of November, 2020;

•(XXXV) after section 264, the following section shall be inserted with

•effect from the 1st day of November, 2020, namely:—

•"264A. (1) The Central Government may make a scheme, by notification in

•the Official Gazette, for the purposes of revision of orders under section 263 or

SECTION Section 54

Untitled Section

•section 264, so as to impart greater efficiency, transparency and accountability

•by—

(a)eliminating the interface between the income-tax authority and the

•assessee or any other person to the extent technologically feasible;

(b)optimising utilisation of the resources through economies of scale and

•functional specialisation;

(c)introducing a team-based revision of orders, with dynamic jurisdiction.

(2)The Central Government may, for the purpose of giving effect to the

•scheme made under sub-section (1), by notification in the Official Gazette, direct

•that any of the provisions of this Act shall not apply or shall apply with such

•exceptions, modifications and adaptations as may be specified in the notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

•Faceless

•revision of

orders.

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(3)Every notification issued under sub-section ( 1) and sub-section ( 2)

•shall, as soon as may be after the notification is issued, be laid before each

•House of Parliament.

264B.(1) The Central Government may make a scheme, by notification in

•the Official Gazette, for the purposes of giving effect to an order under section

•250, 254, 260, 262, 263 or 264, so as to impart greater efficiency, transparency and

•accountability by—

(a)eliminating the interface between the income-tax authority and the

•assessee or any other person to the extent technologically feasible;

(b)optimising utilisation of the resources through economies of scale and

•functional specialisation;

(c)introducing a team-based giving of effect to orders, with dynamic

jurisdiction.

(2)The Central Government may, for the purpose of giving effect to the

•scheme made under sub-section (1), by notification in the Official Gazette, direct

•that any of the provisions of this Act shall not apply or shall apply with such

•exceptions, modifications and adaptations as may be specified in the notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

(3)Every notification issued under sub-section ( 1) and sub-section ( 2)

•shall, as soon as may be after the notification is issued, be laid before each

•House of Parliament.";

•(XXXVI) section 271K shall be omitted and shall be deemed to have been

•omitted with effect from the 1st day of June, 2020;

•(XXXVII) after section 271J, the following section shall be inserted with

•effect from the 1st day of April, 2021, namely:—

•"271K. Without prejudice to the provisions of this Act, the Assessing

•Officer may direct that a sum not less than ten thousand rupees but which may

•extend to one lakh rupees shall be paid by way of penalty by—

(i)the research association, university, college or other institution

•referred to in clause ( ii) or clause ( iii) or the company referred to in

SECTION Section 55

Untitled Section

•clause (iia), of sub-section (1) of section 35, if it fails to deliver or cause to

•be delivered a statement within the time prescribed under clause ( i), or

•furnish a certificate prescribed under clause (ii) of sub-section (1A) of that

•section; or

•(ii) the institution or fund, if it fails to deliver or cause to be delivered

•a statement within the time prescribed under clause ( viii ) of

•sub-section (5) of section 80G, or furnish a certificate prescribed under

SECTION Section 56

Untitled Section

•clause (ix) of the said sub-section.";

•(XXXVIII) in section 274, in sub-section (2A), in clause (a), for the words

•"Assessing Officer and the assessee in the course of proceedings", the words

•"income-tax authority and the assessee or any other person" shall be substituted

•and shall be deemed to have been substituted with effect from the 1st day of

•April, 2020;

•(XXXIX) in section 279, after sub-section (3

•), the following sub-sections

•shall be inserted with effect from the 1st day of November, 2020, namely:—

•"(4) The Central Government may make a scheme, by notification in the

•Official Gazette, for the purposes of granting sanction under sub-section (1) or

•compounding under sub-section ( 2), so as to impart greater efficiency,

•transparency and accountability by—

(a)eliminating the interface between the income-tax authority and

•the assessee or any other person to the extent technologically feasible;

•Faceless

•effect of

orders.

•Penalty for

•failure to

•furnish

•statements,

etc.

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(b)optimising utilisation of the resources through economies of

•scale and functional specialisation;

(c)introducing a team-based sanction to proceed against, or for

•compounding, an offence, with dynamic jurisdiction.

(5)The Central Government may, for the purpose of giving effect to the scheme

•made under sub-section (4), by notification in the Official Gazette, direct that any of

•the provisions of this Act shall not apply or shall apply with such exceptions,

•modifications and adaptations as may be specified in the notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

(6)Every notification issued under sub-section (4) and sub-section (5) shall, as

•soon as may be after the notification is issued, be laid before each House of Parliament.";

•(XXXX) after section 293C of the Income-tax Act, the following section

•shall be inserted with effect from the 1st day of November, 2020, namely:—

•"293D. (1) The Central Government may make a scheme, by notification in

•the Official Gazette, for the purposes of granting approval or registration, as the

•case may be, by income-tax authority under any provision of the Act, so as to

•impart greater efficiency, transparency and accountability by—

(a)eliminating the interface between the income-tax authorities and

•the assessee or any other person to the extent technologically feasible;

(b)optimising utilisation of the resources through economies of

•scale and functional specialisation;

(c)introducing a team-based grant of approval or registration, with

•dynamic jurisdiction.

(2)The Central Government may, for the purpose of giving effect to the

•scheme made under sub-section (1), by notification in the Official Gazette, direct

•that any of the provisions of this Act shall not apply or shall apply with such

•exceptions, modifications and adaptations as may be specified in the notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

(3)Every notification issued under sub-section ( 1) and sub-section ( 2)

•shall, as soon as may be after the notification is issued, be laid before each

•House of Parliament.".

SECTION Section 57

Untitled Section

•CHAPTER IV

•A

•MENDMENTS TO THE DIRECT TAX VIVAD SE VISHWAS ACT

SECTION Section 58

Untitled Section

5.In section 3 of the Direct Tax Vivad Se Vishwas Act, 2020,—

(a)in the opening portion, for the words, "under the provisions of this Act on or

•before the last date" the words "under the provisions of this Act on or before such

•date as may be notified" shall be substituted and shall be deemed to have been

•substituted;

(b)in the Table,—

(i)in third column, in the heading, for the figures, letters and words

•"31st day of March, 2020", the figures, letters and words "31st day of

•December, 2020 or such later date as may be notified" shall be substituted and

•shall be deemed to have been substituted;

•(ii) in fourth column, in the heading, for the figures, letters and words

•"1st day of April, 2020", the figures, letters and words "1st day of January, 2021

•or such later date as may be notified" shall be substituted and shall be deemed

•to have been substituted;

•Faceless

•approval or

registration.

•Amendment

•of section 3

•of Act 3 of

SECTION Section 59

Untitled Section

2020.

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SECTION Section 6

Untitled Section

•clause (c), or sub-clause (ii) of the said clause, the provision of this sub-section shall

•have the effect as if—

(a)for the figures, letters and words "31st day of December, 2020", the

•figures, letters and words "29th day of September, 2020" had been substituted

•for the time limit for the completion or compliance; and

(b)for the figures, letters and words "31st day of March, 2021", the figures,

•letters and words "30th day of September, 2020" had been substituted for making

•such completion or compliance;

•(vi) any provisions of Chapter VI-A under the heading "B.- Deductions in respect

•of certain payments" of that Act, referred to in item (I) of sub-clause (i) of clause (c),

•the provision of this sub-section shall have the effect as if—

•43 of 1961.

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(a)for the figures, letters and words "31st day of December, 2020", the

•figures, letters and words "30th day of July, 2020" had been substituted for the

•time limit for the completion or compliance; and

(b)for the figures, letters and words "31st day of March, 2021", the figures,

•letters and words "31st day of July, 2020" had been substituted for making such

•completion or compliance;

•(vii) furnishing of report of audit under any provision thereof for the assessment

•year commencing on the 1st day of April, 2020, the provision of this sub-section shall

•have the effect as if for the figures, letters and words "31st day of March, 2021", the

•figures, letters and words "31st day of October, 2020" had been substituted:

•Provided also that the extension of the date as referred to in sub-clause (b) of clause (i)

•of the third proviso shall not apply to Explanation 1 to section 234A of the Income-tax Act,

•1961 in cases where the amount of tax on the total income as reduced by the amount as

•specified in clauses (i) to (vi) of sub-section (1) of the said section exceeds one lakh rupees:

•Provided also that for the purposes of the fourth proviso, in case of an individual

•resident in India referred to in sub-section (2) of section 207 of the Income-tax Act, 1961, the

•tax paid by him under section 140A of that Act within the due date (before extension)

•provided in that Act, shall be deemed to be the advance tax:

•Provided also that where the specified Act is the Direct Tax Vivad Se Vishwas Act,

•2020, the provision of this sub-section shall have the effect as if—

(a)for the figures, letters and words "31st day of December, 2020", the figures,

•letters and words "30th day of December, 2020" had been substituted for the time limit

•for the completion or compliance of the action; and

(b)for the figures, letters and words "31st day of March, 2021", the figures,

•letters and words "31st day of December, 2020" had been substituted for making such

•completion or compliance.

(2)Where any due date has been specified in, or prescribed or notified under, the

•specified Act for payment of any amount towards tax or levy, by whatever name called, which

•falls during the period from the 20th day of March, 2020 to the 29th day of June, 2020 or such

•other date after the 29th day of June, 2020 as the Central Government may, by notification,

•specify in this behalf, and if such amount has not been paid within such date, but has been

•paid on or before the 30th day of June, 2020, or such other date after the 30th day of June,

•2020 as the Central Government may, by notification, specify in this behalf, then,

•notwithstanding anything contained in the specified Act,—

(a)the rate of interest payable, if any, in respect of such amount for the period of

•delay shall not exceed three-fourth per cent. for every month or part thereof;

(b)no penalty shall be levied and no prosecution shall be sanctioned in respect

•of such amount for the period of delay.

Explanation.—For the purposes of this sub-section, "the period of delay" means the

•period between the due date and the date on which the amount has been paid.

SECTION Section 60

Untitled Section

•CHAPTER V

•RELAXATION OF TIME LIMIT UNDER CERTAIN INDIRECT TAX LAWS

SECTION Section 61

Untitled Section

6.Notwithstanding anything contained in the Central Excise Act, 1944, the Customs

•Act, 1962 (except sections 30, 30A, 41, 41A, 46 and 47), the Customs Tariff Act, 1975 or

SECTION Section 62

Untitled Section

•Chapter V of the Finance Act,1994, as it stood prior to its omission vide section 173 of the

•Central Goods and Service Tax Act, 2017 with effect from the 1st day of July, 2017, the time

•limit specified in, or prescribed or notified under, the said Acts which falls during the period

•from the 20th day of March, 2020 to the 29th day of September, 2020 or such other date after

•the 29th day of September, 2020 as the Central Government may, by notification, specify, for

•the completion or compliance of such action as—

(a)completion of any proceeding or issuance of any order, notice, intimation,

•notification or sanction or approval, by whatever name called, by any authority,

•commission, tribunal, by whatever name called; or

(b)filing of any appeal, reply or application or furnishing of any report, document,

•return or statement, by whatever name called,

•shall, notwithstanding that completion or compliance of such action has not been made

•within such time, stand extended to the 30th day of September, 2020 or such other date after

•30th day of September, 2020 as the Central Government may, by notification, specify in this

•behalf:

•Provided that the Central Government may specify different dates for completion or

•compliance of different actions under clause (a) or clause (b).

SECTION Section 63

Untitled Section

•CHAPTER VI

•A

•MENDMENT TO THE CENTRAL GOODS AND SERVICES TAX ACT, 2017

SECTION Section 64

Untitled Section

7.After section 168 of the Central Goods and Services Tax Act, 2017, the following

•section shall be inserted, namely:—

•'168A. (1) Notwithstanding anything contained in this Act, the Government

•may, on the recommendations of the Council, by notification, extend the time limit

•specified in, or prescribed or notified under, this Act in respect of actions which cannot

•be completed of complied with due to force majeure.

(2)The power to issue notification under sub-section (1) shall include the power

•to give retrospective effect to such notification from a date not earlier than the date of

•commencement of this Act.

Explanation.—For the purposes of this section, the expression "force majeure"

•means a case of war, epidemic, flood, drought, fire, cyclone, earthquake or any other

•calamity caused by nature or otherwise affecting the implementation of any of the

•provisions of this Act.'.

SECTION Section 65

Untitled Section

•CHAPTER VII

•A

•MENDMENT TO THE FINANCE (NO. 2) ACT, 2019

SECTION Section 66

Untitled Section

8.In section 127 of the Finance (No.2) Act, 2019,—

(i)in sub-section (1), for the words "within a period of sixty days from the date

•of receipt of the said declaration", the words, figures and letters "on or before 31st day

•of May, 2020" shall be substituted;

•(ii) in sub-section (2), for the words "within thirty days of the date of receipt of

•the declaration", the words, figures and letters "on or before the 1st day of May, 2020"

•shall be substituted;

•(iii) in sub-section (4), for the words "within a period of sixty days from the date

•Relaxation of

•time limit

•under Central

•Excise Act,

•1944,

•Customs Act,

•1962,

•Customs

•Tariff Act,

•1975 and

•Finance Act,

SECTION Section 67

Untitled Section

1994.

•Insertion of

•new section

•168A in Act

•12 of 2017.

•Amendment

•of section

•127 of Act 23

•of 2019.

•Power of

•Government

•to extend

•time limit in

•special

circumstances.

•1 of 1944.

•52 of 1962

•51 of 1975.

•32 of 1994.

•12 of 2017.

•5

•10

•15

•20

•25

•30

•35

•40

•45

•38

•of receipt of the declaration", the words, figures and letters "on or before the 31st day

•of May, 2020" shall be substituted;

•(iv) in sub-section (5), for the words "within a period of thirty days from the date

•of issue of such statement", the words, figures and letters "on or before the 30th day

•of June, 2020" shall be substituted.

SECTION Section 68

Untitled Section

•CHAPTER VIII

•A

•MENDMENT TO THE FINANCE ACT, 2020

SECTION Section 69

Untitled Section

9.In the Finance Act, 2020, in section 2, with effect from the 1st day of April, 2020,—

(i)in sub-section (6),—

(A)in clause ( a), for the words "being a non-resident", the words

•"being a non-resident, except in case of deduction on income by way of

•dividend under section 196D of the Income-tax Act" shall be substituted

•and shall be deemed to have been substituted;

(B)after clause (a), the following clause shall be inserted and shall

•be deemed to have been inserted, namely:—

•"(aa) in the case of every individual or Hindu undivided family

•or association of persons or body of individuals, whether

•incorporated or not, or every artificial juridical person referred to in

•sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,

•being a non-resident, in case of deduction on income by way of

•dividend under section 196D of that Act, calculated,—

(i)at the rate of ten per cent. of such tax, where the

•income or the aggregate of such incomes paid or likely to be

•paid and subject to the deduction exceeds fifty lakh rupees

•but does not exceed one crore rupees;

•(ii) at the rate of fifteen per cent. of such tax, where the

•income or the aggregate of such incomes paid or likely to be

•paid and subject to the deduction exceeds one crore rupees;";

•(ii) in sub-section (9), in the third proviso, in clause (aa),—

(A)in sub-clause ( iii), for the words "excluding the income", the

•words "excluding the income by way of dividend or income" shall be

•substituted and shall be deemed to have been substituted;

(B)in sub-clause ( iv), for the words "excluding the income", the

•words "excluding the income by way of dividend or income" shall be

•substituted and shall be deemed to have been substituted;

(C)in sub-clause ( v), for the words "including the income", the

•words "including the income by way of dividend or income" shall be

•substituted and shall be deemed to have been substituted;

(D)in the proviso, for the words "any income", the words "any

•income by way of dividend or income" shall be substituted and shall be

•deemed to have been substituted.

SECTION Section 7

Untitled Section

•CHAPTER III

•A

•MENDMENTS TO THE INCOME-TAX ACT, 1961

SECTION Section 70

Untitled Section

10.(1) If any difficulty arises in giving effect to the provisions of this Act, the Central

•Government may, by order, not inconsistent with the provisions of this Act, remove the

•difficulty:

•Provided that no such order shall be made after the expiry of a period of two years from

•the end of the month in which this Act has received the assent of the President.

•Amendment

•of Act 12 of

SECTION Section 71

Untitled Section

2020.

•Power to

•remove

difficulties.

•5

•10

•15

•20

•25

•30

•35

•40

•45

•39

(2)Every order made under this section shall be laid before each House of Parliament.

SECTION Section 72

Untitled Section

11.(1) The Taxation and Other Laws (Relaxation of Certain Provisions)

•Ordinance, 2020 is hereby repealed.

(2)Notwithstanding such repeal, anything done, any notification issued or any action

•taken under the said Ordinance, shall be deemed to have been done, issued or taken under

•the corresponding provisions of this Act.

•Repeal and

savings.Ord. 2 of

SECTION Section 73

Untitled Section

2020.

•5

•STATEMENT OF OBJECTS AND REASONS

•The outbreak of Novel Corona Virus (COVID-19) pandemic across many countries of

•the world, including India, has caused immense loss to lives of people and given rise to

•unprecedented humanitarian and economic crisis in the country. Due to vagaries of pandemic,

•a national lockdown was imposed which had to be further extended. Due to very rapid spread

•of pandemic, social distancing had to be ensured immediately to prevent society at large

•from its disastrous consequences. This necessitated ease of compliance under certain tax

•and other laws.

SECTION Section 74

Untitled Section

2.As Parliament was not in session and in view of the urgency, the Taxation and Other

•Laws (Relaxation of Certain Provisions) Ordinance, 2020 (Ord. 2 of 2020) was promulgated on

•the 31st day of March, 2020 which, inter alia, relaxed certain provisions of the specified Acts

•relating to direct taxes, indirect taxes and prohibition of Benami property transactions. Further,

•certain notifications were also issued under the said Ordinance.

SECTION Section 75

Untitled Section

3.In view of stakeholders' representations received after enactment of the Finance

•Act, 2020, and due to need for further rationalisation of some provisions of certain Acts,

•further amendments are considered necessary to be incorporated in the proposed Bill

•replacing the Ordinance.

SECTION Section 76

Untitled Section

4.The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions)

•Bill, 2020 which seeks to replace the said Ordinance, inter alia, provides for extension of

•various time limits for completion or compliance of actions under the specified Acts and

•reduction in interest, waiver of penalty and prosecution for delay in payment of certain taxes

•or levies during the specified period.

SECTION Section 77

Untitled Section

5.Further, the Bill proposes amendments to the Income-tax Act, 1961 which , inter

•alia, include providing of tax incentive for Category-III Alternative Investment Funds located

•in the International Financial Services Centre (IFSC) to encourage relocation of foreign

•funds to the IFSC, deferment of new procedure of registration and approval of certain entities

•introduced through the Finance Act, 2020, providing for deduction for donation made to the

•Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES

•FUND) and exemption to its income, incorporation of Faceless Assessment Scheme, 2019

•therein, empowering the Central Government to notify schemes for faceless processes under

•certain provisions by eliminating physical interface to the extent technologically feasible

•and to provide deduction or collection at source in respect of certain transactions at three-

•fourth's rate for the period from 14th May, 2020 to 31st March, 2021.

SECTION Section 78

Untitled Section

6.The Bill also proposes to amend the Direct Tax Vivad se Viswas Act, 2020 to extend

•the date for payment without additional amount to 31st December, 2020 and to empower the

•Central Government to notify certain dates relating to filing of declaration and making of

payment.

SECTION Section 79

Untitled Section

7.The Finance Act, 2020 is also proposed to be amended to clarify regarding capping

•of surcharge at 15 per cent. on dividend income of the Foreign Portfolio Investor.

SECTION Section 8

Untitled Section

4.In the Income-tax Act, 1961,—

(I)in section 6, with effect from the 1st day of April, 2021,—

(a)in clause (1), in Explanation 1, in clause (b), for the words "the citizen

•or person of Indian origin", the words "such person" shall be substituted;

•Amendment of

•Act 43 of

SECTION Section 80

Untitled Section

8.The Bill also proposes to empower the Central Government to remove any difficulty

•up to a period of two years and provide for repeal and savings of the Taxation and Other

•Laws (Relaxation of Certain Provisions) Ordinance, 2020.

SECTION Section 81

Untitled Section

9.The Bill seeks to achieve the aforesaid objectives.

•N

•EW DELHI; NIRMALA SITHARAMAN.

•The 11th September, 2020.

•40

•FINANCIAL MEMORANDUM

•This Bill seeks to replace the Taxation and Other Laws (Relaxation of Certain Provisions)

•Ordinance, 2020 and further to amend the Income-tax Act, 1961, the Central Goods and

•Services Tax Act, 2017, the Finance (No.2) Act, 2019, the Direct Tax Vivad se Vishwas Act,

•2020 and the Finance Act, 2020 which are administered by the Department of Revenue

•through two boards, namely, the Central Board of Direct Taxes and the Central Board of

•Indirect Taxes. Thus, no additional expenditure is contemplated on the enactment of the Bill.

•41

•MEMORANDUM REGARDING DELEGATED LEGISLA TION

SECTION Section 82

Untitled Section

•Clause 4 of the Bill seeks to amend certain provisions relating to Income-Tax Act, 1961.

•The proposed amendment to clause (4D) of section 10 provides for calculation of

•income of non-resident in the prescribed manner.

•The proposed amendment of the clause (23C) of section 10 empowers the Board

•to prescribed form and manner for application for approval to funds or trust or institution

•or any university or other educational institutions or any hospital or other medical

institutions.

•The proposed insertion of new section 12AB relating to procedure for fresh

•registration empowers the Board to provide by rules the form and the manner in which

•the order under the said sub-section shall be passed.

•The proposed amendment to section 35 seeks to insert new proviso to sub-

•section (1) which empowers the Board to provide by rules the form and manner of

•giving intimation by the research association, university, college or company, to the

•prescribed authority.

•The proposed amendment to sub-section (5) of section 80G empowers the Board

•to provide by rules the statement, time period, form and manner of verification, particulars

•and time for delivery of correction statement for rectification of any mistake in the

•information furnished in the said statement. It further proposes to empower the Board

•to make rules with regard to the manner, particulars and time for certificate of donation.

•The proposed insertion of sub-section (1A) in section 115AD provides for

•calculation of income that is attributable to units held by non-resident in the prescribed

manner.

•The matters in respect of which rules may be made are matters of procedure and

•administrative detail and it is not practicable to provide for them in the Bill itself. The

•delegatio of legislative power is, therefore, of a normal character.

•42

•ANNEXURE

•EXTRACTS FROM THE INCOME-TAX ACT, 1961

•(43 OF 1961)

•* * * * *

SECTION Section 83

Untitled Section

6.For the purposes of this Act,—

(1)An individual is said to be resident in India in any previous year, if he—

•* * * * *

(c)having within the four years preceding that year been in India for a period or

•periods amounting in all to three hundred and sixty-five days or more, is in India fora

•period or periods amounting in all to sixty days or more in that year.

•Explanation 1.—In the case of an individual,—

•* * * * *

(b)being a citizen of India, or a person of Indian origin within the meaning of

•Explanation to clause (e) of section 115C, who, being outside India, comes on a visit to

•India in any previous year, the provisions of sub-clause (c) shall apply in relation to

•that year as if for the words "sixty days", occurring therein, the words "one hundred

•and eighty-two days" had been substituted and in case of the citizen or person of

•Indian origin having total income, other than the income from foreign sources, exceeding

•fifteen lakh rupees during the previous year, for the words "sixty days" occurring

•therein, the words "one hundred and twenty days" had been substituted.

•* * * * *

•(1A) Notwithstanding anything contained in clause (1), an individual, being a citizen

•of India, having total income, other than the income from foreign sources, exceeding fifteen

•lakh rupees during the previous year shall be deemed to be resident in India in that previous

•year, if he is not liable to tax in any other country or territory by reason of his domicile or

•residence or any other criteria of similar nature.

•* * * * *

(6)A person is said to be "not ordinarily resident" in India in any previous year

•if such person is—

(a)an individual who has been a non-resident in India in nine out of the ten

•previous years preceding that year, or has during the seven previous years preceding

•that year been in India for a period of, or periods amounting in all to, seven hundred

•and twenty-nine days or less; or

(b)a Hindu undivided family whose manager has been a nonresident in India in

•nine out of the ten previous years preceding that year, or has during the seven previous

•years preceding that year been in India for a period of, or periods amounting in all to,

•seven hundred and twenty-nine days or less; or

(c)a citizen of India, or a person of Indian origin, having total income, other than

•the income from foreign sources, exceeding fifteen lakh rupees during the previous

•year, as referred to in clause (b) of Explanation 1 to clause (1), who has been in India

•for a period or periods amounting in all to one hundred and twenty days or more but

•less than one hundred and eighty-two days; or

(d)a citizen of India who is deemed to be resident in India under clause (1A).

Explanation.—For the purposes of this section, the expression "income from

•foreign sources" means income which accrues or arises outside India (except income

•derived from a business controlled in or a profession set up in India).

•* * * * *

•43

•Residence in

India.

SECTION Section 84

Untitled Section

10.In computing the total income of a previous year of any person, any income falling

•within any of the following clauses shall not be included—

•(4D) any income accrued or arisen to, or received by a specified fund as a result

•of transfer of capital asset referred to in clause (viiab) of section 47, on a recognised

•stock exchange located in any International Financial Services Centre and where the

•consideration for such transaction is paid or payable in convertible foreign exchange,

•to the extent such income accrued or arisen to, or is received in respect of units held by

•a non-resident.

Explanation.—For the purposes of this clause, the expression—

(a)"convertible foreign exchange" means foreign exchange which is for the time

•being treated by the Reserve Bank of India as convertible foreign exchange for the

•purposes of the Foreign Exchange Management Act, 1999 and the rules made

•thereunder;

(b)"manager" shall have the meaning assigned to it in clause ( q) of

•sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India

•(Alternative Investment Fund) Regulations, 2012, made under the Securities and

•Exchange Board of India Act, 1992;

•* * * * *

•(23C) any income received by any person on behalf of ,—

(i)the Prime Minister's National Relief Fund; or

•* * * * *

•(23FE) any income of a specified person in the nature of dividend, interest or long-

•term capital gains arising from an investment made by it in India, whether in the form of debt

•or share capital or unit, if the investment—

•* * * * *

Explanation.—For the purposes of this clause, "specified person" means—

(a)a wholly owned subsidiary of the Abu Dhabi Investment Authority which—

(i)is a resident of the United Arab Emirates; and

•(ii) makes investment, directly or indirectly, out of the fund owned by the

•Government of the United Arab Emirates;

(b)a sovereign wealth fund which satisfies the following conditions, namely:—

(i)it is wholly owned and controlled, directly or indirectly, by the

•Government of a foreign country;

•(ii) it is set up and regulated under the law of such foreign country;

•(iii) the earnings of the said fund are credited either to the account of the

•Government of that foreign country or to any other account designated by that

•Government so that no portion of the earnings inures any benefit to any private

•person;

•(iv) the asset of the said fund vests in the Government of such foreign

•country upon dissolution;

(v)it does not undertake any commercial activity whether within or outside

•India; and

•(vi) it is specified by the Central Government, by notification in the Official

•Gazette, for this purpose;

(c)a pension fund, which—

•44

•Incomes not

•included in

•total income.

•(42 of 1999)

•(15 of 1992)

•45

(i)is created or established under the law of a foreign country including

•the laws made by any of its political constituents being a province, State or local

•body, by whatever name called;

•(ii) is not liable to tax in such foreign country;

•(iii) satisfies such other conditions as may be prescribed; and

•(iv) is specified by the Central Government, by notification in the Official

•Gazette, for this purpose;

•* * * * *

SECTION Section 85

Untitled Section

13.(1) Nothing contained in section 11 or section 12 shall operate so as to exclude

•from the total income of the previous year of the person in receipt thereof—

•* * * * *

•Explanation 1.—For the purposes of sections 11, 12, 12A and this section, "trust"

•includes any other legal obligation and for the purposes of this section "relative", in relation

•to an individual, means—

•* * * * *

35AC.(1) * * * * *

(4)Where an association or institution is approved by the National Committee under

•sub-section (1), and subsequently—

(i)that Committee is satisfied that the project or the scheme is not being carried

•on in accordance with all or any of the conditions subject to which approval was

•granted; or

•(ii) such association or institution, to which approval has been granted, has not

•furnished to the National Committee, after the end of each financial year, a report in

•such form and setting forth such particulars and within such time as may be prescribed,

•the National Committee may, at any time, after giving a reasonable opportunity of showing

•cause against the proposed withdrawal to the concerned association or institution, withdraw

•the approval:

•Provided that a copy of the order withdrawing the approval shall be forwarded by the

•National Committee to the Assessing Officer having jurisdiction over the concerned

•association or institution.

(5)Where any project or scheme has been notified as an eligible project or scheme

•under clause (b) of the Explanation, and subsequently—

(i)the National Committee is satisfied that the project or the scheme is not being

•carried on in accordance with all or any of the conditions subject to which such project

•or scheme was notified; or

•(ii) a report in respect of such eligible project or scheme has not been furnished

•after the end of each financial year, in such form and setting forth such particulars and

•within such time as may be prescribed,

•such notification may be withdrawn in the same manner in which it was issued:

•Provided that a reasonable opportunity of showing cause against the proposed

•withdrawal shall be given by the National Committee to the concerned association, institution,

•public sector company or local authority, as the case may be:

•* * * * *

(6)Notwithstanding anything contained in any other provision of this Act, where—

(i)the approval of the National Committee, granted to an association or

•institution, is withdrawn under sub-section (4) or the notification in respect of eligible

SECTION Section 86

Untitled Section

•Section 11 not

•to apply in

•certain cases.

•Expenditure

•on eligible

•projects or

schemes.

•46

•project or scheme is withdrawn in the case of a public sector company or local authority

•or an association or institution under sub-section (5); or

•(ii) a company has claimed deduction under the proviso to sub-section (1) in

•respect of any expenditure incurred directly on the eligible project or scheme and the

•approval for such project or scheme is withdrawn by the National Committee under

•sub-section (5),

80G.(1) * * * * *

(2)The sums referred to in sub-section (1) shall be the following, namely:—

(a)any sums paid by the assessee in the previous year as donations to—

•* * * * *

•(iiia) the Prime Minister's National Relief Fund; or

115AD.(1) Where the total income of a Foreign Institutional Investor includes—

(a)income other than income by way of dividends referred to in section 115-O

•received in respect of securities (other than units referred to in section 115AB); or

(b)income by way of short-term or long-term capital gains arising from the

•transfer of such securities,

•the income-tax payable shall be the aggregate of—

(i)the amount of income-tax calculated on the income in respect of securities

•referred to in clause (a), if any, included in the total income, at the rate of twenty

•per cent:

•Provided that the amount of income-tax calculated on the income by way of interest

•referred to in section 194LD shall be at the rate of five per cent;

•(iv) the amount of income-tax with which the Foreign Institutional Investor

•would have been chargeable had its total income been reduced by the amount of

•income referred to in clause (a) and clause (b).

(2)Where the gross total income of the Foreign Institutional Investor—

(a)consists only of income in respect of securities referred to in clause (a) of

•sub-section (1), no deduction shall be allowed to it under sections 28 to 44C or clause

(i)or clause (iii) of section 57 or under Chapter VI-A;

(b)includes any income referred to in clause (a) or clause (b) of subsection (1),

•the gross total income shall be reduced by the amount of such income and the deduction

•under Chapter VI-A shall be allowed as if the gross total income as so reduced, were

•the gross total income of the Foreign Institutional Investor.

(3)Nothing contained in the first and second provisos to section 48 shall apply for the

•computation of capital gains arising out of the transfer of securities referred to in clause (b)

•of sub-section (1).

Explanation.—For the purposes of this section,—

(a)the expression "Foreign Institutional Investor" means such investor as the

•Central Government may, by notification in the Official Gazette, specify in this behalf;

(b)the expression "securities" shall have the meaning assigned to it in clause (h)

•of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).

•* * * * *

133A.(1) * * * * *

(6)If a person under this section is required to afford facility to the income-tax authority

•to inspect books of account or other documents or to check or verify any cash, stock or other

•Deduction in

•respect of

•donations to

•certain funds,

•charitable

•institutions,

etc.

•Tax on income

•of Foreign

•Institutional

•Investors from

•securities or

•capital gains

•arising from

•their transfer.

•Power of

survey.

•47

•valuable article or thing or to furnish any information or to have his statement recorded either

•refuses or evades to do so, the income-tax authority shall have all the powers under sub-

•section (1) of section 131 for enforcing compliance with the requirement made:

•Provided that—

(a)in a case where the information has been received from such authority, as

•may be prescribed, no action under sub-section ( 1) shall be taken by an Assistant

•Director or a Deputy Director or an Assessing Officer or a Tax Recovery Officer or an

•Inspector of Income-tax without obtaining the approval of the Joint Director or the

•Joint Commissioner, as the case may be;

(b)in any other case, no action under sub-section (1) shall be taken by a Joint

•Director or a Joint Commissioner or an Assistant Director or a Deputy Director or an

•Assessing Officer or a Tax Recovery Officer or an Inspector of Income-tax without

•obtaining the approval of the Director or the Commissioner, as the case may be.

Explanation.—In this section,—

(a)"income-tax authority" means a Principal Commissioner or Commissioner, a

•Joint Commissioner, a Principal Director or Director, a Joint Director, an Assistant

•Director or a Deputy Director or an Assessing Officer, or a Tax Recovery Officer, and

•for the purposes of clause ( i) of sub-section ( 1), clause ( i) of sub-section ( 3) and

•sub-section (5), includes an Inspector of Income-tax;

•* * * * *

133C.(1) * * * * *

(2)Where any information or document has been received in response to a notice

•issued under sub-section ( 1), the prescribed income-tax authority may process such

•information or document and make available the outcome of such processing to the Assessing

Officer.

(3)The Board may make a scheme for centralised issuance of notice and for processing

•of information or documents and making available the outcome of the processing to the

•Assessing Officer.

Explanation.—In this section, the term "proceeding" shall have the meaning assigned

•to it in clause (b) of the Explanation to section 133A.

•* * * * *

SECTION Section 87

Untitled Section

143.(1) * * * * *

•(3B) The Central Government may, for the purpose of giving effect to the scheme

•made under sub-section (3A), by notification in the Official Gazette, direct that any of the

•provisions of this Act relating to assessment of total income or loss shall not apply or shall

•apply with such exceptions, modifications and adaptations as may be specified in the

•notification:

•Provided that no direction shall be issued after the 31st day of March, 2022.

•(3C) Every notification issued under sub-section (3A) and sub-section (3B) shall, as

•soon as may be after the notification is issued, be laid before each House of Parliament.

•* * * * *

SECTION Section 88

Untitled Section

263.(1) The Principal Commissioner or Commissioner may call for and examine the

•record of any proceeding under this Act, and if he considers that any order passed therein by

•the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue,

•he may, after giving the assessee an opportunity of being heard and after making or causing

•to be made such inquiry as he deems necessary, pass such order thereon as the circumstances

•of the case justify, including an order enhancing or modifying the assessment, or cancelling

•the assessment and directing a fresh assessment.

•Power to call

•for

•information

•by prescribed

•income-tax

authority.

Assessment.

•Revision of

•orders

•prejudicial to

revenue.

•48

•Explanation 1.— For the removal of doubts, it is hereby declared that, for the purposes

•of this sub-section,—

•* * * * *

(b)"record" shall include and shall be deemed always to have included all

•records relating to any proceeding under this Act available at the time of examination

•by the Principal Commissioner or Commissioner;

•* * * * *

•Explanation 2.—For the purposes of this section, it is hereby declared that an order

•passed by the Assessing Officer shall be deemed to be erroneous in so far as it is prejudicial

•to the interests of the revenue, if, in the opinion of the Principal Commissioner or

•Commissioner,—

(a)the order is passed without making inquiries or verification which should

•have been made;

(b)the order is passed allowing any relief without inquiring into the claim;

(c)the order has not been made in accordance with any order, direction or

•instruction issued by the Board under section 119; or

(d)the order has not been passed in accordance with any decision which is

•prejudicial to the assessee, rendered by the jurisdictional High Court or Supreme Court

•in the case of the assessee or any other person.

•* * * * *

SECTION Section 89

Untitled Section

264.(1) In the case of any order other than an order to which section 263 applies

•passed by an authority subordinate to him, the Principal Commissioner or Commissioner

•may, either of his own motion or on an application by the assessee for revision, call for the

•record of any proceeding under this Act in which any such order has been passed and may

•make such inquiry or cause such inquiry to be made and, subject to the provisions of this

•Act, may pass such order thereon, not being an order prejudicial to the assessee, as he

•thinks fit.

(2)The Principal Commissioner or Commissioner shall not of his own motion revise

•any order under this section if the order has been made more than one year previously.

(3)In the case of an application for revision under this section by the assessee, the

•application must be made within one year from the date on which the order in question was

•communicated to him or the date on which he otherwise came to know of it, whichever is

•earlier:

•Provided that the Principal Commissioner or Commissioner may, if he is satisfied that

•the assessee was prevented by sufficient cause from making the application within that

•period, admit an application made after the expiry of that period.

(4)The Principal Commissioner or Commissioner shall not revise any order under this

•section in the following cases—

(a)where an appeal against the order lies to the Deputy Commissioner (Appeals)

•or to the Commissioner (Appeals) or to the Appellate Tribunal but has not been made

•and the time within which such appeal may be made has not expired, or, in the case of

•an appeal to the Commissioner (Appeals) or to the Appellate Tribunal, the assessee

•has not waived his right of appeal; or

(b)where the order is pending on an appeal before the Deputy Commissioner

•(Appeals); or

•Revision of

•other orders .

•49

(c)where the order has been made the subject of an appeal to the Commissioner

•(Appeals) or to the Appellate Tribunal.

(5)Every application by an assessee for revision under this section shall be

•accompanied by a fee of five hundred rupees.

(6)On every application by an assessee for revision under this sub-section, made on

•or after the 1st day of October, 1998, an order shall be passed within one year from the end of

•the financial year in which such application is made by the assessee for revision.

•Explanation .—In computing the period of limitation for the purposes of this

•sub-section, the time taken in giving an opportunity to the assessee to be re-heard under the

•proviso to section 129 and any period during which any proceeding under this section is

•stayed by an order or injunction of any court shall be excluded.

(7)Notwithstanding anything contained in sub-section (6), an order in revision under

•sub-section (6) may be passed at any time in consequence of or to give effect to any finding

•or direction contained in an order of the Appellate Tribunal, National Tax Tribunal, the High

•Court or the Supreme Court.

•Explanation 1.—An order by the Principal Commissioner or Commissioner declining

•to interfere shall, for the purposes of this section, be deemed not to be an order prejudicial to

•the assessee.

•Explanation 2.— For the purposes of this section, the Deputy Commissioner (Appeals)

•shall be deemed to be an authority subordinate to the Principal Commissioner or Commissioner.

•* * * * *

SECTION Section 9

Untitled Section

1961.

•43 of 1961.

•3 of 2020.

•5

•10

•15

•20

•25

•30

•35

•40

•45

•5

(b)in clause (1A), the following Explanation shall be inserted, namely:—

•"Explanation.—For the removal of doubts, it is hereby declared

•that this clause shall not apply in case of an individual who is said to be

•resident in India in the previous year under clause (1).";

(c)in clause (6), in the Explanation, the words "and which is not deemed

•to accrue or arise in India." shall be added at the end;

•(II) in section 10,

(a)in clause (4D), with effect from the 1st day of April, 2021,—

(i)for the words "convertible foreign exchange, to the extent such

•income accrued or arisen to, or is received in respect of units held by a

•non-resident", the words and brackets 'convertible foreign exchange or as

•a result of transfer of securities (other than shares in a company resident

•in India) or any income from securities issued by a non-resident (not being

•a permanent establishment of a non-resident in India) and where such

•income otherwise does not accrue or arise in India or any income from a

•securitisation trust which is chargeable under the head "profits and gains

•of business or profession", to the extent such income accrued or arisen to,

•or is received is attributable to units held by non-resident (not being the

•permanent establishment of a non-resident in India) computed in the

•prescribed manner' shall be substituted;

•(ii) in the Explanation, after clause (b), the following clauses shall

•be inserted, namely:—

•'(ba) "permanent establishment" shall have the meaning

•assigned to it in clause (iiia) of section 92F;

•(bb) "securities" shall have the same meaning as assigned to

•it in clause (h) of section 2 of the Securities Contracts (Regulation)

•Act, 1956 and shall also include such other securities or instruments

•as may be notified by the Central Government in the Official Gazette

•in this behalf;

•(bc) "securitisation trust" shall have the meaning assigned to

•it in clause (d) of the Explanation below section 115TCA;'

(b)in clause (23C),—

(i)in sub-clause (i), after the word "Fund", the words and brackets

•"or the Prime Minister's Citizen Assistance and Relief in Emergency

•Situations Fund (PM CARES FUND)" shall be inserted and shall be deemed

•to have been inserted with effect from the 1st day of April, 2020;

•(ii) for the first and second provisos,—

(A)with effect from the 1st day of June, 2020, the following

•provisos shall be substituted and shall be deemed to have been

•substituted, namely:—

•"Provided that the fund or trust or institution or any

•university or other educational institution or any hospital or

•other medical institution referred to in sub-clause (iv) or sub-

SECTION Section 90

Untitled Section

274.(1) * * * * *

•(2A) The Central Government may make a scheme, by notification in the Official Gazette,

•for the purposes of imposing penalty under this Chapter so as to impart greater efficiency,

•transparency and accountability by—

(a)eliminating the interface between the Assessing Officer and the assessee in

•the course of proceedings to the extent technologically feasible;

•* * * * *

•E

•XTRACT FROM THE DIRECT TAX VIVAD SE VISHWAS ACT, 2020

•(3 OF 2020)

•* * * * *

SECTION Section 91

Untitled Section

3.Subject to the provisions of this Act, where a declarant files under the provisions of

•this Act on or before thIssue of statement by designated committee.e last date, a declaration

•to the designated authority in accordance with the provisions of section 4 in respect of tax

•arrear, then, notwithstanding anything contained in the Income-tax Act or any other law for

•the time being in force, the amount payable by the declarant under this Act shall be as under,

•namely:—

Sl.No. Nature of tax arrear. Amount payable under Amount payable under

•this Act on or before the this Act on or 1st day of

•31st day of March, 2020. April, 2020 but on or

•before the last date.

•* * * * *

•E

•XTRACT FROM THE FINANCE (NO. 2) ACT, 2019

•(23 OF 2019)

SECTION Section 92

Untitled Section

127.(1) Where the amount estimated to be payable by the declarant, as estimated by

•the designated committee, equals the amount declared by the declarant, then, the designated

•committee shall issue in electronic form, a statement, indicating the amount payable by the

•declarant, within a period of sixty days from the date of receipt of the said declaration.

•Procedure

•Amount

•payable by

•Issue of

•statement by

•designated

committee.

•50

(2)Where the amount estimated to be payable by the declarant, as estimated by the

•designated committee, exceeds the amount declared by the declarant, then, the designated

•committee shall issue in electronic form, an estimate of the amount payable by the declarant

•within thirty days of the date of receipt of the declaration.

•* * * * *

(4)After hearing the declarant, a statement in electronic form indicating the amount

•payable by the declarant, shall be issued within a period of sixty days from the date of receipt

•of the declaration.

(5)The declarant shall pay electronically through internet banking, the amount payable

•as indicated in the statement issued by the designated committee, within a period of thirty

•days from the date of issue of such statement.

•* * * * *

•E

•XTRACTS FROM THE FINANCE ACT, 2020

•(12 OF 2020)

•* * * * *

SECTION Section 93

Untitled Section

2.(1) * * * * *

(6)In cases in which tax has to be deducted under sections 192A, 194, 194C, 194DA,

•194E, 194EE, 194F, 194G, 194H, 194-I, 194-IA, 194-IB, 194-IC, 194J, 194LA, 194LB, 194LBA,

•194LBB, 194L8C, 194LC, 194LD, 194K, 194M, 194N, 194-0, 196A, 196B, 196C and 196D of the

•Income-tax Act, the deductions shall be made at the rates specified in those sections and

•shall be increased by a surcharge, for the purposes of the Union,—

(a)in the case of every individual or Hindu undivided family or association of

•persons or body of individuals, whether incorporated or not, or every artificial juridical

•person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,

•being a non-resident, calculated,—

•* * * * *

(9)Subject to the provisions of sub-section (10), in cases in which income-tax has to

•be charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section

•174A or section 175 or sub-section (2) of section 176 of the Income-tax Act or deducted from,

•or paid on, income chargeable under the head "Salaries" under section 192 of the said Act or

•in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed

•at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be

•charged, deducted or computed at the rate or rates specified in Part III of the First Schedule

•and such tax shall be increased by a surcharge, for the purposes of the Union, calculated in

•such cases and in such manner as provided therein:

•* * * * *

•Provided also that in respect of any income chargeable to tax under section 115A,

•115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA,

•115BBF, 115BBG , 115E, 115JB or 115JC of the Income-tax Act, "advance tax" computed under

•the first proviso shall be increased by a surcharge, for the purposes of the Union,

•calculated,—

•* * * * *

•(aa) in the case of individual or every association of persons or body of

•individuals, whether incorporated or not, or every artificial juridical person referred to

•in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, having income

•under section 115AD of the Income-tax Act,—

•* * * * *

•Income-tax.

•51

•(iii) at the rate of twenty-five per cent. of such "advance tax", where the

•total income [excluding the income of the nature referred to in clause ( b) of

•sub-section (1) of section 115AD of the Income-tax Act] exceeds two crore

•rupees but does not exceed five crore rupees;

•(iv) at the rate of thirty-seven per cent. of such "advance tax", where the

•total income [excluding the income of the nature referred to in clause (b) of sub-

•section (1) of section 115AD of the Income-tax Act] exceeds five crore rupees;

(v)at the rate of fifteen per cent. of such "advance tax", where the total

•income [including the income of the nature referred to in clause (b) of

•sub-section (1) of section 115AD of the Income-tax Act] exceeds two crore

•rupees but is not covered in sub-clauses ( iii) and (iv):

•Provided that in case where the total income includes any income chargeable under

SECTION Section 94

Untitled Section

•clause (b) of sub-section (1) of section 115AD of the Income-tax Act, the rate of surcharge on

•the advance tax calculated on that part of income shall not exceed fifteen per cent.;

•* * * * *

SECTION Section 95

Untitled Section

9.In section 11 of the Income-tax Act,—

(I)in sub-section (1), in Explanation 2, for the words, figures and letters "to any other

•trust or institution registered under section 12AA, being contribution with a specific direction

•that they shall form part of the corpus of the trust or institution", the words, brackets, figures

•and letters "to any fund or trust or institution or any university or other educational institution

•or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or

•sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 or other trust or institution

•registered under section 12AA, being contribution with a specific direction that it shall form

•part of the corpus" shall be substituted;

•(II) in sub-section (7), with effect the 1st day of June, 2020—

(a)for the words, brackets, letters and figures "under clause (b) of

•sub-section (1) of section 12AA", the words, figures and letters "under section 12AA

•or section 12AB" shall be substituted;

(b)for the words, brackets, figures and letter "clause (1) and clause (23C)", the

•words, brackets, figures and letter "clause (1), clause (23C) and clause (46)" shall be

•substituted;

(c)the following provisos shall be inserted, namely:—

•"Provided that such registration shall become inoperative from the date

•on which the trust or institution is approved under clause (23C) of section 10 or

•is notified under clause (46) of the said section, as the case may be, or the date

•on which this proviso has come into force, whichever is later:

•Provided further that the trust or institution, whose registration has become

•inoperative under the first proviso, may apply to get its registration operative

•under section 12AB subject to the condition that on doing so, the approval

•under clause (23C) of section 10 or notification under clause ( 46) of the said

•section, as the case may be, to such trust or institution shall cease to have any

•effect from the date on which the said registration becomes operative and

•thereafter, it shall not be entitled to exemption under the respective clauses.".

•* * * * *

•Amendment

•of section 11.

•LOK SABHA

•————

•A

•BILL

•to provide for relaxation and amendment of provisions of certain Acts and for matters connected

•therewith or incidential thereto.

•————

•(Smt. Nirmala Sitharaman, Minister of Finance and Corporate Affairs.)

•MGIPMRND—438LS—(S3)—11.09.2020.

•LOK SABHA

•------

•CORRIGENDUM

•to

•THE TAXATION AND OTHER LAWS (RELAXATION AND AMENDMENT OF CERTAIN

•PROVISIONS) BILL, 2020

•[To be/As introduced in Lok Sabha]

SECTION Section 96

Untitled Section

1.Page 1, line 7,-

•for "have into come"

•read "have come".

SECTION Section 97

Untitled Section

2.Page 1, after line 9,-

•insert '(a) "notification" means the notification published in the

•Official Gazette'.

SECTION Section 98

Untitled Section

3.Page 1, line 10,-

•for (a) "specified Act"

•read (b) "specified Act".

SECTION Section 99

Untitled Section

4.Page 2, omit line 10,-