Finance Act, 2013 17 of 2013 [10 May 2013] CONTENTS CHAPTER 1 :- PRELIMINARY 1. Short Title And Commencement CHAPTER 2 :- RATES OF INCOME-TAX 2. Income-Tax CHAPTER 3 :- DIRECT TAXES 3. Amendment Of Section 2 3A. Substitution Of Reference Of Certain Expression By Other Expression 4. Amendment Of Section 10 5. Insertion Of New Section 32Ac 6. Amendment Of Section 36 7. Amendment Of Section 40 7A. Amendment Of Section 43 8. Insertion Of New Section 43Ca 9. Amendment Of Section 56 10. Amendment Of Section 80C 11. Amendment Of Section 80Ccg 12. Amendment Of Section 80D 13. Insertion Of New Section 80Ee 14. Amendment Of Section 80G 15. Amendment Of Section 80Ggb 16. Amendment Of Section 80Ggc 17. Amendment Of Section 80-Ia 18. Amendment Of Section 80Jjaa 19. Amendment Of Section 87 20. Insertion Of New Section 87A 21. Amendment Of Section 90 22. Amendment Of Section 90A 23. Omission Of Chapter X-A Relating To General Anti-Avoidance Rule 24. Insertion Of New Chapter X-A 25. Amendment Of Section 115A 25A. Amendment Of Section 115Ad 26. Amendment Of Section 115Bbd 27. Amendment Of Section 115-O 28. Insertion Of New Chapter Xii-Da 29. Amendment Of Section 115R 30. Insertion Of New Chapter Xii-Ea 31. Amendment Of Section 132B 31A. Amendment Of Section 138 32. Amendment Of Section 139 33. Amendment Of Section 142 34. Omission Of Section 144Ba 35. Insertion Of New Section 144Ba 36. Amendment Of Section 144C 37. Amendment Of Section 153 38. Amendment Of Section 153B 39. Amendment Of Section 153D 40. Amendment Of Section 167C 41. Amendment Of Section 179 42. Insertion Of New Section 194-Ia 43. Insertion Of New Section 194Ld 43A. Amendment Of Section 195 43B. Amendment Of Section 196D 43C. Amendment Of Section 204 43D. Amendment Of Section 206Aa 43E. Amendment Of Section 206C 44. Amendment Of Section 245N 45. Amendment Of Section 245R 46. Amendment Of Section 246A 46A. Amendment Of Section 252 47. Amendment Of Section 253 48. Substitution Of New Section For Section 271Fa 49. Amendment Of Section 295 50. Amendment Of Fourth Schedule 51. Amendment Of Section 2 52. Insertion Of New Sections 14A And 14B 53. Amendment Of Section 46 CHAPTER 4 :- INDIRECT TAXES 54. Amendment Of Section 11 55. Amendment Of Section 27 56. Amendment Of Section 28 57. Amendment Of Section 28Ba 58. Amendment Of Section 28E 59. Amendment Of Section 29 60. Amendment Of Section 30 61. Amendment Of Section 41 62. Amendment Of Section 47 63. Amendment Of Section 49 64. Amendment Of Section 69 65. Amendment Of Section 104 66. Amendment Of Section 129B 67. Amendment Of Section 129C 68. Amendment Of Section 135 69. Amendment Of Section 142 70. Omission Of Section 143A 71. Amendment Of Section 144 72. Substitution Of New Section For Section 146 73. Amendment Of Section 146A 74. Amendment Of Section 147 75. Amendment Of Notification Issued Under Sub-Section (1) Of Section 25 Of Customs Act Retrospectively 76. Amendment Of First Schedule 77. Amendment Of Second Schedule 78. Amendment Of Section 9 79. Amendment Of Section 9A 80. Amendment Of Section 11 81. Amendment Of Section 11A 82. Amendment Of Section 11Dda 83. Amendment Of Section 20 84. Amendment Of Section 21 85. Amendment Of Section 23A 86. Amendment Of Section 23C 87. Amendment Of Section 23F 88. Amendment Of Section 35C 89. Amendment Of Section 35D 90. Amendment Of Section 37C 91. Amendment Of Third Schedule 92. Amendment Of First Schedule CHAPTER 5 :- SERVICE TAX 93. Amendment Of Act 32 Of 1994 CHAPTER 6 :- SERVICE TAX VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME, 2013 94. Short Title 95. Definitions 96. Person Who May Make Declaration Of Tax Dues 97. Procedure For Making Declaration And Payment Of Tax Dues 98. Immunity From Penalty, Interest And Other Proceeding 99. No Refund Of Amount Paid Under The Scheme 100. Tax Dues Declared But Not Paid 101. Failure To Make True Declaration 102. Removal Of Doubts 103. Power To Remove Difficulties 104. Power To Make Rules CHAPTER 7 :- COMMODITIES TRANSACTION TAX 105. Extent, Commencement And Application 106. Definitions 107. Charge Of Commodities Transaction Tax 108. Value Of Taxable Commodities Transaction 109. Collection And Recovery Of Commodities Transaction Tax 110. Furnishing Of Return 111. Assessment 112. Rectification Of Mistake 113. Interest On Delayed Payment Of Commodities Transaction Tax 114. Penalty For Failure To Collect Or Pay Commodities Transaction Tax 115. Penalty For Failure To Furnish Return 116. Penalty For Failure To Comply With Notice 117. Penalty Not To Be Imposed In Certain Cases 118. Application Of Certain Provisions Of Income-Tax Act 119. Appeal To Commissioner Of Income-Tax (Appeals) 120. Appeal To Appellate Tribunal 121. Punishment For False Statement 122. Institution Of Prosecution 123. Power To Make Rules 124. Power To Remove Difficulties CHAPTER 8 :- MISCELLANEOUS 125. Amendment Of Act 23 Of 2004 SCHEDULE 1 :- THE FIRST SCHEDULE PART 1 :- PART I PART 2 :- PART II PART 3 :- PART III PART 4 :- PART IV SCHEDULE 2 :- THE SECOND SCHEDULE SCHEDULE 3 :- THE THIRD SCHEDULE SCHEDULE 4 :- THE FOURTH SCHEDULE SCHEDULE 5 :- THE FIFTH SCHEDULE SCHEDULE 6 :- THE SIXTH SCHEDULE Finance Act, 2013 17 of 2013 [10 May 2013] A Act to give effect to the financial proposals of the Central Government for the financial year 2013-2014.Be it enacted by Parliament in the Sixty-fourth Year of the Republic of India as follows:-- CHAPTER 1 PRELIMINARY 1. Short Title And Commencement :- (1) This Act may be called the Finance Act, 2013. (2) Save as otherwise provided in this Act, sections 2 to 53 shall be deemed to have come into force on the 1st day of April, 2013. CHAPTER 2 RATES OF INCOME-TAX 2. Income-Tax :- (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2013, income-tax shall be charged at the rates specified in Part I of the First Schedule and such tax shall be increased by a surcharge, for purposes of the Union, calculated in each case in the manner provided therein. (2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds two lakh rupees, then,-- (a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh rupees of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and (b) the income-tax chargeable shall be calculated as follows:-- (i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income; (ii) the net agricultural income shall be increased by a sum of two lakh rupees, and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income as so increased were the total income; (iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income: Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words "two lakh rupees", the words "two lakh fifty thousand rupees" had been substituted: Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words "two lakh rupees", the words "five lakh rupees" had been substituted. (3) In cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be: Provided that the amount of income-tax computed in accordance with the provisions of section 111A or section 112 shall be increased by a surcharge, for purposes of the Union, as provided in Paragraph E of Part I of the First Schedule: Provided further that in respect of any income chargeable to tax under sections 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115BBD, 115BBE or 115JB of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for purposes of the Union, calculated,-- (a) in the case of a domestic company, at the rate of five per cent. of such income-tax where the total income exceeds one crore rupees; (b) in the case of every company, other than a domestic company, at the rate of two per cent. of such income-tax where the total income exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees, the total amount payable as income-tax and surcharge on such income-tax shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees. (4) In cases in which tax has to be charged and paid under section 115-O or section 115QA or sub-section (2) of section 115R or section 115TA of the Income-tax Act, the tax shall be charged and paid at the rates as specified in those sections and shall be increased by a surcharge, for purposes of the Union, calculated at the rate of ten per cent. of such tax. (5) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D and 195 of the Income-tax Act, at the rates in force, the deductions shall be made at the rates specified in Part II of the First Schedule and shall be increased by a surcharge, for purposes of the Union, calculated in cases wherever prescribed, in the manner provided therein. (6) In cases in which tax has to be deducted under sections 194C, 194E, 194EE, 194F, 194G, 194H, 194-I, 194-IA, 194J, 194LA, 194LB, 194LC, 194LD, 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 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, or co-operative society or firm, being a non-resident, calculated 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 one crore rupees; (b) in the case of every company, other than a domestic company, calculated,-- (i) at the rate of two 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 but does not exceed ten crore rupees; (ii) at the rate of five 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 ten crore rupees. (7) In cases in which tax has to be collected under the proviso to section 194B of the Income-tax Act, the collection shall be made at the rates specified in Part II of the First Schedule, and shall be increased by a surcharge, for purposes of the Union, calculated, in cases wherever prescribed, in the manner provided therein. (8) In cases in which tax has to be collected under section 206C of the Income-tax Act, the collection shall be made at the rates specified in that section and shall be increased by a surcharge, for 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, or co-operative society or firm, being a non-resident, calculated at the rate of ten per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees; (b) in the case of every company, other than a domestic company, calculated-- (i) at the rate of two per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crore rupees. (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 so 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 purposes of the Union, calculated in such cases and in such manner as provided therein: Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be: Provided further that the amount of "advance tax" computed in accordance with the provisions of section 111A or section 112 of the Income-tax Act shall be increased by a surcharge, for purposes of the Union, as provided in Paragraph A, B, C, D or E of Part III of the First Schedule: Provided also that in respect of any income chargeable to tax under sections 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115BBD, 115BBE, 115E, 115JB and 115JC of the Income-tax Act, "advance tax" computed under the first proviso shall be increased by a surcharge, for purposes of the Union, calculated,-- (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, or co-operative society or firm or local authority, calculated at the rate of ten per cent. of such "advance tax", where the total income exceeds one crore rupees; (b) in the case of every domestic company, calculated-- (i) at the rate of five per cent. of such "advance tax", where the total income exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of ten per cent. of such "advance tax", where the total income exceeds ten crore rupees; (c) in the case of every company, other than a domestic company, calculated-- (i) at the rate of two per cent. of such "advance tax", where the total income exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of five per cent. of such "advance tax", where the total income exceeds ten crore rupees: Provided also that in the case of persons mentioned in (a) above, having total income chargeable to tax under section 115JC of the Income-tax Act and such income exceeds one crore rupees, the total amount payable as "advance tax" on such income and surcharge thereon shall not exceed the total amount payable as "advance tax" on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as "advance tax" on such income and surcharge thereon, shall not exceed the total amount payable as "advance tax" on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as "advance tax" on such income and surcharge thereon, shall not exceed the total amount payable as "advance tax" and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees. (10) In cases to which Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income exceeding five thousand rupees, in addition to total income and the total income exceeds two lakh rupees, then, in charging income-tax under sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the said Act or in computing the "advance tax" payable under Chapter XVII-C of the said Act, at the rate or rates in force,-- (a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh rupees of the total income but without being liable to tax], only for the purpose of charging or computing such income-tax or, as the case may be, "advance tax" in respect of the total income; and (b) such income-tax or, as the case may be, "advance tax" shall be so charged or computed as follows:-- (i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or "advance tax" shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income; (ii) the net agricultural income shall be increased by a sum of two lakh rupees, and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income were the total income; (iii) the amount of income-tax or "advance tax" determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, "advance tax" determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total income: Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words "two lakh rupees", the words "two lakh fifty thousand rupees" had been substituted: Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words "two lakh rupees", the words "five lakh rupees" had been substituted: Provided also that the amount of income-tax or "advance tax" so arrived at, shall be increased by a surcharge for purposes of the Union calculated in each case, in the manner provided therein. (11) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the applicable surcharge, for purposes of the Union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for purposes of the Union, to be called the "Education Cess on income-tax", calculated at the rate of two per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance universalised quality basic education: Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India. (12) The amount of income-tax as specified in sub-sections (1) to (10) and as increased by the applicable surcharge, for purposes of the Union, calculated in the manner provided therein, shall also be increased by an additional surcharge, for purposes of the Union, to be called the "Secondary and Higher Education Cess on income-tax", calculated at the rate of one per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance secondary and higher education: Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India. (13) For the purposes of this section and the First Schedule,-- (a) "domestic company" means an Indian company or any other company which, in respect of its income liable to income-tax under the Income-tax Act, for the assessment year commencing on the 1st day of April, 2013, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income; (b) "insurance commission" means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance); (c) "net agricultural income", in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule; (d) all other words and expressions used in this section and the First Schedule but not defined in this sub-section and defined in the Income-tax Act shall have the meanings, respectively, assigned to them in that Act. CHAPTER 3 DIRECT TAXES 3. Amendment Of Section 2 :- In section 2 of the Income-tax Act, with effect from the 1st day of April, 2014,-- (a) in clause (1A),-- (1) in sub-clause (c), in the proviso, in clause (ii),-- (i) in item (A), the words "according to the last preceding census of which the relevant figures have been published before the first day of the previous year" shall be omitted; (ii) for item (B), the following item shall be substituted, namely:-- "(B) in any area within the distance, measured aerially,-- (I) not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in item (A) and which has a population of more than ten thousand but not exceeding one lakh; or (II) not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in item (A) and which has a population of more than one lakh but not exceeding ten lakh; or (III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (A) and which has a population of more than ten lakh.; (2) after Explanation 3, the following Explanation shall be inserted, namely:-- Explanation 4.--For the purposes of clause (ii) of the proviso to sub-clause (c), "population" means the population according to the last preceding census of which the relevant figures have been published before the first day of the previous year;; (b) in clause (14), in sub-clause (iii),-- (i) in item (a), the words "according to the last preceding census of which the relevant figures have been published before the first day of the previous year" shall be omitted; (ii) for item (b), the following shall be substituted, namely:-- (b) in any area within the distance, measured aerially,-- (I) not being more than two kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten thousand but not exceeding one lakh; or (II) not being more than six kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than one lakh but not exceeding ten lakh; or (III) not being more than eight kilometres, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten lakh. Explanation.--For the purposes of this sub-clause, "population" means the population according to the last preceding census of which the relevant figures have been published before the first day of the previous year;. 3A. Substitution Of Reference Of Certain Expression By Other Expression :- In the Income-tax Act, for the expression "the Foreign Exchange Regulation Act, 1973" (46 of 1973), wherever it occurs, the expression "the Foreign Exchange Management Act, 1999 (42 of 1999)" shall be substituted.. 4. Amendment Of Section 10 :- In section 10 of the Income-tax Act,-- (I) in clause (10D), with effect from the 1st day of April, 2014,-- (i) in sub-clause (d), after the second proviso, the following proviso shall be inserted, namely:-- Provided also that where the policy, issued on or after the 1st day of April, 2013, is for insurance on life of any person, who is-- (i) a person with disability or a person with severe disability as referred to in section 80U; or (ii) suffering from disease or ailment as specified in the rules made under section 80DDB, the provisions of this sub-clause shall have effect as if for the words "ten per cent.", the words "fifteen per cent." had been substituted.; (ii) in Explanation 1, after the words "business of the first-mentioned person" occurring at the end, the words "and includes such policy which has been assigned to a person, at any time during the term of the policy, with or without any consideration" shall be inserted; (II) after clause (23D), the following clause shall be inserted with effect from the 1st day of April, 2014, namely:-- (23DA) any income of a securitisation trust from the activity of securitisation. Explanation.--For the purposes of this clause,-- (a) "securitisation" shall have the same meaning as assigned to it,-- (i) in clause (r) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Public Offer and Listing of Securitised Debt Instruments) Regulations, 2008 made under the Securities and Exchange Board of India Act, 1992(15 of 1992) and the Securities Contracts (Regulation) Act, 1956(42 of 1956); or (ii) under the guidelines on securitisation of standard assets issued by the Reserve Bank of India; (b) "securitisation trust" shall have the meaning assigned to it in the Explanation below section 115TC;; (III) after clause (23EC), the following clause shall be inserted with effect from the 1st day of April, 2014, namely:-- (23ED) any income, by way of contributions received from a depository, of such Investor Protection Fund set up in accordance with the regulations by a depository as the Central Government may, by notification in the Official Gazette, specify in this behalf: Provided that where any amount standing to the credit of the Fund and not charged to income-tax during any previous year is shared, either wholly or in part with a depository, the whole of the amount so shared shall be deemed to be the income of the previous year in which such amount is so shared and shall, accordingly, be chargeable to income-tax. Explanation.--For the purposes of this clause,-- (i) "depository" shall have the same meaning as assigned to it in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996(22 of 1996); (ii) "regulations" means the regulations made under the Securities and Exchange Board of India Act, 1992(15 of 1992) and the Depositories Act, 1996(22 of 1996);; (IV) in clause (23FB), for Explanation 1, the following Explanation shall be substituted, namely:-- Explanation.--For the purposes of this clause,-- (a) "venture capital company" means a company which-- (A) has been granted a certificate of registration, before the 21st day of May, 2012, as a Venture Capital Fund and is regulated under the Securities and Exchange Board of India (Venture Capital Funds) Regulations, 1996 (hereinafter referred to as the Venture Capital Funds Regulations) made under the Securities and Exchange Board of India Act, 1992(15 of 1992); or (B) has been granted a certificate of registration as Venture Capital Fund as a sub-category of Category I Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (hereinafter referred to as the Alternative Investment Funds Regulations) made under the Securities and Exchange Board of India Act, 1992(15 of 1992), and which fulfils the following conditions, namely:-- (i) it is not listed on a recognised stock exchange; (ii) it has invested not less than two-thirds of its investible funds in unlisted equity shares or equity linked instruments of venture capital undertaking; and (iii) it has not invested in any venture capital undertaking in which its director or a substantial shareholder (being a beneficial owner of equity shares exceeding ten per cent. of its equity share capital) holds, either individually or collectively, equity shares in excess of fifteen per cent. of the paid-up equity share capital of such venture capital undertaking; (b) "venture capital fund" means a fund-- (A) operating under a trust deed registered under the provisions of the Registration Act, 1908(16 of 1908), which-- (I) has been granted a certificate of registration, before the 21st day of May, 2012, as a Venture Capital Fund and is regulated under the Venture Capital Funds Regulations; or (II) has been granted a certificate of registration as Venture Capital Fund as a sub-category of Category I Alternative Investment Fund under the Alternative Investment Funds Regulations and which fulfils the following conditions, namely:-- (i) it has invested not less than two-thirds of its investible funds in unlisted equity shares or equity linked instruments of venture capital undertaking; (ii) it has not invested in any venture capital undertaking in which its trustee or the settler holds, either individually or collectively, equity shares in excess of fifteen per cent. of the paid-up equity share capital of such venture capital undertaking; and (iii) the units, if any, issued by it are not listed in any recognised stock exchange; or (B) operating as a venture capital scheme made by the Unit Trust of India established under the Unit Trust of India Act, 1963(52 of 1963); (c) "venture capital undertaking" means-- (i) a venture capital undertaking as defined in clause (n) of regulation 2 of the Venture Capital Funds Regulations; or (ii) a venture capital undertaking as defined in clause (aa) of sub-regulation (1) of regulation 2 of the Alternative Investment Funds Regulations;; (V) after clause (34), the following clause shall be inserted with effect from the 1st day of April, 2014, namely:-- "(34A) any income arising to an assessee, being a shareholder, on account of buy back of shares (not being listed on a recognised stock exchange) by the company as referred to in section 115QA;"; (VI) after clause (35), the following clause shall be inserted with effect from the 1st day of April, 2014, namely:-- (35A) any income by way of distributed income referred to in section 115TA received from a securitisation trust by any person being an investor of the said trust. Explanation.--For the purposes of this clause, the expressions "investor" and "securitisation trust" shall have the meanings respectively assigned to them in the Explanation below section 115TC;; (VIA) in clause (48), for the words "sale of crude oil to any person", the words "sale of crude oil, any other goods or rendering of services, as may be notified by the Central Government in this behalf, to any person" shall be substituted with effect from the 1st day of April, 2014; (VII) after clause (48), the following clause shall be inserted, namely:-- "(49) any income of the National Financial Holdings Company Limited, being a company set up by the Central Government, of any previous year relevant to any assessment year commencing on or before the 1st day of April, 2014.". For full Amendment download LawSuit Application on your Android device now.... Download your Android App from here.. https://play.google/store/apps/details?id=com.fipl.Lawsuit
Posted on: Mon, 12 Aug 2013 16:04:12 +0000