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SUMMARY OF FINANCE BILL 2020

 I NC E NT IV E S TO I N D IV ID U AL A ND H UF :
Fr o m a ss es s men t ye ar 2 02 1 - 2 2 onw ar ds an indi vid ual o r H U F s hall ha ve t h e
opt i on t o p a y t ax at t h e follow in g ra t es s ubj ect t o sat is fact i on o f cert ain
con dit ion s :

In co m e Ta x Ra te
Upt o 2 ,5 0 ,00 0 NI L
Fr o m 2 ,5 0 ,00 1 t o 5 ,00 ,00 0 5 %
Fr o m 5 ,0 0 ,00 1 t o 7 ,50 ,00 0 10 %
Fr o m 7 ,5 0 ,00 1 t o 10 ,0 0 ,0 00 15 %
Fr o m 1 0 ,00 ,0 01 t o 1 2 ,50 ,00 0 20 %
Fr o m 1 2 ,50 ,0 01 t o 1 5 ,00 ,00 0 25 %
Ab o v e 1 5 ,0 0 ,00 0 30 %

Con dit io ns f or c on ce s s ion al R at e o f Ta x a s ab o v e :

A. An i ndi vi d ual o r H U F sh al l n ot b e en t it led t o cl aim f oll ow ing ex empt i on s/

ded u ct ion s –

(1 ) Le av e t ra vel c on c e s si on u / s . 1 0 (5 ), H o u s e r ent all ow an ce u/ s . 1 0 (1 3 A) , S om e

of t he al l ow an ce u /s . 1 0 (1 4 )

(2 ) Al l ow an c e f or i n c om e of mi n o r u / s . 10 (3 2 );

(3 ) E xem p t i on f or SE Z u n i t con t ain ed in se ct i o n 1 0 AA;

(4 ) St and ard d ed u ct i o n , de d uct ion fo r ent ert ainm ent allow anc e and
empl o y men t / p r of e ssi on al t ax a s c ont a ined i n sect i on 16 u nder t he hea d
“Sal ar y I n c om e ” ;

(5 ) I nt erest un de r s ect i on 2 4 i n re sp ect of self - o cc upie d o r v acant pr ope rt y

ref er re d t o i n se ct i on 23 (2 ) (L o s s un der t h e hea d inc o me fr om ho u se p r ope rt y
fo r re n t ed h o us e sh al l n ot b e all ow ed t o b e set of f un de r an y o t her hea d and
w ou ld b e al l ow ed t o b e car rie d f orw ar d as per e xt ant law );

(6 ) Ad d it io n al dep rec at i on u n d er s ect ion 3 2 (1 )(iia );

(7 ) Ded u ct i on s un de r se ct i on 32 AD , 3 3 AB , 3 3 AB A;

(8 ) V ario u s d ed uct i on f or d on at ion f o r or exp endit ur e on s cie nt ific re sea rch

cont ai n ed i n s u b - cl au se (i i ) or s ub - cla u se (iia ) or s ub - cla u se (iii ) of s ub -
sect i on (1 ) or s ub - se ct i on (2 A A) o f se ct io n 3 5 ;

(9 ) Ded u ct i on un d er s ec t i on 35 AD or s ect io n 35 C C C ;

(1 0 ) Ded u ct i on fr o m fa mi l y p en si on u / s . 5 7 (iia );

(1 1 ) An y de d uct i o n un d er ch ap t er V I A e xc ept de d uct i on u /s 8 0 C CD (2 ) f o r N PS

cont rib ut i on

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B . Wit ho ut set o ff o f -

(i ) any l os s car ri e d f orw ard

or

dep reci at i on fr o m a n y ea rl i e r a s se ss me n t ye ar , if s u ch l o ss o r d epr eciat i on i s

at t ribut ab l e t o an y o f t h e de d uct i ons r ef e rre d t o in (A) a b ov e ; o r

(i i ) un der t h e h ea d h o u s e p r o p ert y w it h a n y ot he r h ead of inc om e

C . Al l ow ed t o cl ai m t h e d ep r eci at i on , if a ny , und er s ect i on 3 2 , ex cept addit i onal

dep reci at i on un d er sect i on 3 2 (1 ) (iia ), det er min ed in s uch mann er a s ma y be
pre scri be d ; an d

D . W it ho ut an y exe mp t i on o r de d uct i on f or allow anc e s or p erq u isit e , b y w hat ev er

name cal l ed , p r ovi d ed un de r a n y ot he r l aw f or t h e t im e b ein g in f orc e .

E . Wher e dep reci at i on (i n cl udi n g a ddit io nal d ep re ciat ion if an y ) is n ot claim ed o n

a bl ock of as s et u p t o AY 20 20 - 21 , t he sa me w ill b e d ee med t o ha ve be en
claim ed an d al l ow e d an d t h e op enin g WDV as on 01 - 04- 20 21 shall b e d ee med
to be r ed u ce d by s uc h un cl aim ed dep reci at ion . Th e s ame w ill al s o be
applic abl e t o a s set s p urch as ed and p ut t o u se f ro m FY 20 2 0 - 2 1 i .e . fr o m AY
20 21- 22 an d s u b s eq u en t yea r s .

F . Ded u ct ion un de r s ec t i on 8 0L A shal l be a v ailable t o s u ch Unit in t he I nt ernat ional

Finan cial Se rvi c e s C en t re , s ub ject t o f ul film ent o f t he c ondi t ions co nt aine d in
t he s aid s ect i o n .

G . E xem pt ion f or fr ee f o od v o uche r exe rcis ed b y an e mpl o ye e shall n ot be

allow abl e i n t h e n ew c on ce s si onal t ax re gime .

H . The opt i on f o r av a i l i n g b en efit of n e w conc es si onal t ax regi me shall be

exe rci se d (b y t h e a s se s se e h avin g bu sin es s in c om e ) on or b ef or e t he d ue dat e
spe cifi ed u n d er s ub - sect i on (1 ) of s ect io n 13 9 .

While in ca s e o f ot h er a ss e ss es (n ot ha v ing b usin e ss in c om e ) ha ve t o ex er cis e

t he opt ion al on g w i t h t h e ret urn of i nc om e t o be f u rni she d un der s ect i on 13 9 (1 ).

Th u s , an a ss e ss ee h a vi n g b u si n e s s inc om e ma y o pt fo r co nc es si onal t ax r egi me

bef or e d u e d at e of r et ur n an d fil e r et u rn bef o re c o mplet i on of as s es sm ent ye ar
un der new r egi me . How e ve r , i n ca se o f ot he r a ss e ss e s t he y hav e t o file ret ur n
bef or e d ue dat e t o avai l t h e sai d opt i on .

I. t he opt i on f or c on c es si on al rat e c an b e w it hdraw n onl y o nce w he re it w a s

exe rci se d b y t h e i n d i vi d ual or H UF h avin g b usin e ss in co me f or a pre vi o u s yea r
ot he r t han t h e ye ar i n w h i ch i t w as ex er cise d an d t her ea ft er , t h e indi vid u al o r
HU F shall n e ver b e e l i gi b l e t o e xe rci se t h e s aid opt i on un de r t his sect i on , e xcept
w here s uc h i n di vi d u al or H UF ce as e s t o h ave an y b usi ne ss inc om e in w hich ca se ,
opt i on un de r p a ra (v i ) (a ) ab o ve s hall b e availa ble .

J . Pr ovi si on s of AM T s h al l n ot b e applic a ble t o s uch a s se s se s ha v ing b u sin es s

inco me . Si mi l arl y , p r ovi si on s o f ca rr y f or w ard of AM T cr edit shall al s o n ot b e
applicabl e t o a s se s s es h a vi n g b usi ne ss in co me .

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K . F oll ow ing al l ow an ce s sh al l b e all ow ed t o be clai med b y t h e a ss e ss ee und er t he

new c onc es si on al t a x r egi me .

- Tra ns p o rt Al l ow an ce gran t e d t o a di v ya n g e mpl o ye e t o me et exp endit ur e f o r

t he p urp o se of c om m ut i n g b et w een pla ce o f r e side nce an d place of d ut y

- C on ve ya n ce Al l ow a n ce gra nt ed t o me et t he exp endit ur e on con ve y anc e in

per fo rm an c e of d ut i es o f an o ffic e ;

- An y Al l ow a n ce gr an t ed t o me et t he co st of t ra vel o n t o u r o r o n t ran sf er ;

- Dail y Al l ow an c e t o meet t h e or dina r y d aily cha rg es inc u rr ed b y an e mpl o ye e

on acc o un t o f a b s en ce fr om hi s n o rmal pl ace o f d ut y .
N o cha ng e i n T a x Sl abs of o th er as s es s a ble p er s o ns ( e xc ep t Ind i vid ual a n d H UF)
is pr op os ed .

 I NC ID E NC E R EL AT E D T O T A X R AT ES
Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
4 3C A / Pr es en t l y a ddi t i on i s N ow a ddit io n i s m a de in It w oul d r ed uc e t he
5 0C / mad e i n t h e h an d s t he han ds of p urch ase r lit igat ion in ca se s w her e
56 of p u rch as er an d and s elle r of t he t he t ransact i on va l u e o f
sel l er of the i mm ov able p ro pe rt y if t he pr op ert y is act uall y
imm ov ab l e p r op ert y t he t ransa ct ion val ue i s les s t han t he St amp dut y
if t h e t ran sact i on l es s t han 10 % t han st amp val ue on acc o unt of
val ue i s l e s s t h an 5 % dut y v al ue t hen St amp vari o u s gen uin e fact or s .
t h an st amp d ut y dut y val u e is c on sid ere d
val ue , t h en St a mp as t he de e med
dut y v al ue is con sid er at ion .
con si d er ed as t h e
(w .e .f . A. Y . 2 02 1- 2 2 )
dee me d
con si d er at i on
115ABA C on c e ssi on al rat e I nclusi on of c om p anie s In orde r to p r o vide
of t ax on i n c om e o f enga ge d in b u sine s s of incent iv e of
man uf act uri n g gen erat i on of elect r icit y con ce ssi o nal t ax @ 22 % ,
do me st i c by c on sid erin g t he s ame s ubj ect to c e rt ain
co mp an i es as man u fact urin g con dit ion s , it is pr op o se d
to incl ude do m est ic
(w .e .f . A. Y . 2 02 1- 2 2 )
co mpani es eng ag e d in
bu sin es s of g ene rat i on of
elect ri cit y in t h e said
sect i on .
1 1 5 B AD -- 22 % c on ce ss io nal r at e o f The co nce s si onal r at e o f
t axat ion t o c o - op er at ive 22 % appli cabl e to
s ociet ie s re sid ent in co mpani es f r om AY 2 02 0 -
I ndia. 21 ha s b een e xt end ed t o
co- op erat i ve so ci et ies
(w .e . f . A. Y . 2 02 1- 2 2 )
re sid ent in I ndia fro m AY
20 21 - 22 .
The sam e i s s ub jec t t o
cert ain c on dit ion s as
applicabl e to
co mpani es .

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Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
1 9 4C Pr es en t l y , an I t is prop o se d t o ch ange Sinc e t h e t u rn ov er limit
I n di vi d ual , H U F , AO P t he r eq uir em ent fr om fo r get t ing ac c o unt s
or B OI are l i ab l e f or ‘a udit un de r cla u s e (a ) au dit ed ha s been
au di t of ac co u n t s or (b ) of S ect i on 4 4 AB’ incre as ed t o R s . 5 c ro re s
un der cl a u se (a ) or t o ‘ha s t ot al sale s , gr os s fr om exi st ing R s . 1 cr or es ,
(b ) o f S ect i on 4 4 AB rec eipt s or t u rn ov er fr om rele vant am end me nt is
in i m me di at e bu sin es s or p r of e ssi on mad e t o s aid cla u s e t o
p rec edi n g y ear ar e carri ed on by him co ve r indi vid u al an d HU F
req ui r ed t o d ed uct exc ee ding one cr ore fo r de d uct i on o f t ax u/ s .
t ax un d er t h e sai d ru pe es in ca s e of 19 4 C w he re t urn o ve r is in
p ro vi si on s , w h er e bu sin es s or fift y lakh exc es s o f R s . 1 cr or e .
ap p l i cab l e . ru pe es in ca s e of
pro fe s si on ’
(w .e .f . A. Y . 2 02 1- 2 2 )
Defi n i t i on o f ‘W ork ’ Defi nit ion o f ‘ W ork ’ in The plannin g of
in s ect i on 19 4 C sect i on 1 94 C t o inc lud e s uppl yin g t he mat e ri al t o
do e s n ot i n cl ud e man uf act urin g or t he c on t ract
man uf act uri n g or s uppl yin g a pr o du ct man uf act ure r (j ob
s up p l yi n g a p r od uct acc or ding to t he w ork er ) t hr o ugh an
acc or di n g to the req uir em ent or as s ociat e co nce rn and
req ui r em en t or spe cific at ion of a t hereb y av oi ding t he
sp e ci fi c at i on of a cu st o me r by u sing re sp on sibilit y t o d e du ct
cu st o me r b y usi n g mat eri al p urch as e fr om t ax at so u rce hav e been
mat eri al p u rch a se d a pe rs on , relat e d t o t he t rappe d and now
fr om a p e rs on , ot h er cu st o me r in acc o rd ance co ve red w it hin d efin it ion
t h an s u ch c u st o me r . w it h provi si on of of ‘w ork ’ .
40 A(2 ) (b ).
(w .e .f . A. Y . 2 02 1- 2 2 )
1 9 4J Fe es f or p r o fe s si o n al Fe es f or p ro fe s si onal The re ha d b een hu ge
an d t ech n i cal shall be ar T D S @ 10% lit igat ion in int er - ch ange
se rvi c e s b e ar s sam e w hile fee s f or t ech nical of p r ovi si on s of se ct ion
rat e o f TD S i .e . 10 % . se rvic e s shall b ear T DS @ 19 4 C an d 19 4J (F ee s f o r
2% t echnical se rvi ce s ), bot h
being simil ar in n at ur e
(w .e .f . A. Y . 2 02 1- 2 2 )
but be arin g dif f ere nt
rat e of TD S . T he s ame
have b ee n align e d at
co mm on rat e of 2 % .
Fe es for pr o fe s si onal
shall st ill b ea r 1 0 % rat e
of TD S .
1 1 5- O Di vi d en d di st ri b ut i on I n orde r t o rem o ve t he Divid end fr o m t he
t ax : Pr e sen t l y bu rd en of t ax on do me st ic c o mpan y o r
co mp an i es an d co mpani es a nd m ut ual inco me fr o m unit s of a
m ut ual f un d s b ar e fu nd s and sim ult an e o u sl y m ut ual f un d shall be
t h e sam e on t h e t ax divid end in t he t axable i n t he han ds o f
di st ri b ut i on of hand s of reci p ient , sha reh ol der s or u ni t
di vi d en d to the pro vi si on of DD T have hol der s at t he
sh a reh ol der s or un i t been re m ov ed fr om applicabl e rat e and t he
h ol der s an d the se ve ral s ect io ns of t he do me st ic c o mpan y o r
reci p i en t of the Ac t . Si m ult ane o u sl y , m ut ual f und s shall n ot be
di vi d en d al so h av e pro vi si ons o f s ect io n 57 req uir ed to pa y any
t o p a y t ax @1 0 % i n has be en am end e d t o dist rib ut i on t a x .

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Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
exc es s of R s . 1 0 l ac s re st rict t he ded u ct io n on
di vi d en d f ro m acc o unt of int ere st
do me st i c c o mp an y . exp ens e s f r om di vi den d
Th e p r ovi si on s ar e i nco me @ 2 0 % .
h en c e , c o n si de re d ,
(w .e .f . A. Y . 2 02 1- 2 2 )
i n i q ui t o u s an d
reg re s si v e .

 CH A N GE S R EL AT E D T O O T HE R T A X PR OV I SI ON S
Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
80- I AC Th e exi st i n g I t is pr ovi de d t hat M or e st a rt up s w o ul d get
p ro vi si on s of sect i on t he be ne fit s on ac c o unt
- t he de d uct io n und er
80- I AC of t h e Act of inc rea s e in t u rn ov er .
t he s aid s ect i o n 8 0 -
p ro vi d e for a
I AC sh all b e a vaila b le
ded u ct i on of an
t o an eligi ble st art - up
am o un t eq ual to
fo r a p eri o d o f t hr ee
10 0% o f t h e p r o fi t s
con se c ut ive
an d gai n s de ri v ed
as se s sm ent y ear s o ut
fr om an el i gi b l e
of t en y ea rs b eginn i ng
b u si n es s by an
fr om t he y ear i n w hi ch
el i gi b l e st art - up f or
it is in co rp or at ed
t h ree c on sec ut i ve
as se s sm en t y ear s - t he de d uct io n und er
o ut of se ven ye ar s , t he sai d s ect i on sh all
at t h e op t i o n of t h e be a vailabl e t o an
as se s see , s ub ject t o eligibl e st art - up , i f t he
t h e c on di t i on t h at t ot al t urn ov er of i t s
t h e el i gi b l e st art - up bu sin es s d oe s n ot
is i n c orp o rat ed on exc ee d o ne h un dr ed
or aft er cr ore r up ee s i n an y of
1 s t Ap ri l , 20 16 b ut t he pre vi o us y ea rs
b ef or e 1st Ap ri l , beginni ng fr o m t he
20 21 an d t h e t ot al y ear in w hich it is
t urn o ver of its inco rp orat ed
b u si n es s d o es n ot
(w .e .f . A. Y . 2 02 1- 2 2 )
exc ee d 2 5 C r .
80- I B A Th e exi st i n g The p eri od of appr ov al I t w ould gi ve r elax at ion
/ 80E E A p ro vi si on s of sect i on of t he pr oj ect by t he & pr om ot i on to t he
80- I B A o f t h e Act co mpet e nt aut h orit y is aff o rdabl e h o u sing
p ro vi d e t h at w h ere pro p os ed to be pro ject s .
the gr o s s t ot al ext end ed t o 3 1st M arch ,
in co me of an 20 21 fr om 31 st M arch ,
as se s se e i n cl u de s 20 20 .
an y p r ofi t s and
gai n s d eri ve d f r om C on se q uent l y ,
the b usi n e ss of amen dm ent is als o mad e
dev el op i n g an d i n Sec . 80E E A ext en ding
b ui l di n g a ff o rda b l e t he peri o d of
h o u si n g p r o ject s , sanct i onin g of
t h ere sh al l , b e l oan b y t he fina ncial
al l ow e d a i nst it ut i on t o 3 1st M arch ,
ded u ct i on of an 20 21
am o un t eq ual to (w .e .f . A. Y . 2 02 1- 2 2 )

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Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
10 0% o f t h e p r o fi t s
an d gai n s de ri v ed
fr om s uch b u si n es s
p ro vi d ed t h at t h e
p ro ject i s ap p r ov ed
b y t h e c o mp et e n t
aut h ori t y d ur i n g t h e
p eri od fr o m 1 st
Ju n e , 20 16 t o 3 1 st
M arch , 2 02 0 .

Th e exi st i n g
p ro vi si on s of sect i on
80E E A of t h e Act
p ro vi d e for a
ded u ct i on in
re sp e ct o f i n t er e st
on l oa n t ake n f r om
any fi n a n ci al
in st i t ut i on f or
acq ui si t i on of an
aff o rdab l e
re si d en t i al h o u se
p ro p e rt y d uri n g t h e
p eri od fr o m 1 st
Ap r i l , 20 19 t o 3 1 st
M arch , 2 02 0
19 4 C Pa ym en t s ma de t o I t is prop o se d t o a men d The pla nning of
con t r act o rs : t he defi nit ion of “ w ork ” s uppl yin g t he mat eri al t o
I n t h e sai d sect i on un der se ct ion 19 4 C t o t he con t ract
the de fi n i t i o n of pro vid e t hat in a man uf act ure r (j ob
“w ork ” i n cl u de s cont r act man u fact u ring , w ork er ) t hr o u gh an
man uf act uri n g or t he raw mat erial as s ociat e c onc er n and
s up p l yi n g a p r od u ct pro vid ed b y t he a ss e ss ee t hereb y av oidi ng t he
acc or di n g t o t h e or it s as s ociat e shall fall re sp on sibilit y t o d e du ct
req ui r em en t or w it hin t he pu rvi ew o f t he t ax at so ur ce ha ve been
sp e ci fi c at i on o f a ‘w or k’ u nd er se ct ion t rappe d and now
cu st o me r b y us i n g 19 4 C . co ve red w it hin d efi n it ion
mat eri al p u rch a s ed of ‘w ork ’ .
fr om s u ch c ust om er As s o ciat e i s p r op os e d t o
within the be de fine d t o me an a
defi n i t i on . per s on w h o i s plac e d
How e ve r , it simil arl y in r elat i on t o t he
excl u de s cu st o me r as is t he
man uf act uri n g or per s on plac ed in rel at ion
s up p l yi n g a p r od u ct t o t he as s es se e u nder
acc or di n g t o t h e t he pr ovi si on s c ont a ined
req ui r em en t or i n se ct ion 4 0 A (2 ) (b)o f
sp e ci fi c at i on of a t he Act .
cu st o me r b y us i n g (w .e .f . A. Y . 2 02 0- 2 1 )
mat eri al p u rch a s ed
fr om a p er s on ,
ot h e r t h an s uch
cu st o me r .

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Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
55 F or c om p ut at i on of I t is pr op o se d in ca s e of The re w ill be m o re in flow
cap i t al gai n s , an a capit al as s et , b eing of t ax a s capit al gain
as se s see sh al l b e l and or b uildi ng or bot h , w ou ld re d uc e and
al l ow e d d ed uct i on t he fair mar ket val u e o f sim ult an e o usl y t ax
fo r c o st of s uch an a s s et on 1st lit igat ion s w o uld re d uc e .
acq ui si t i on of t h e Ap r il , 2 00 1 sh all not
as set an d al s o c o st exc ee d t he st amp dut y
of i mp ro ve me n t , i f val ue of s uch a s set as on
an y . H ow ev er , f or 1st April , 2 00 1 w her e
co mp ut i n g cap i t al s uch st am p d ut y v al ue is
gai n s i n r esp ect of availa ble
an a s set a cq ui r ed (w .e .f . A. Y . 2 02 1- 2 2 )
b ef or e 1st Ap ri l ,
20 01 , t h e a ss es s ee
h as b e en al l ow ed
an op t i o n of ei t h er
to t ake the f ai r
mark et val u e o f t h e
as set a s o n 1 st Ap ri l ,
20 01 o r t h e act ual
co st o f t h e a ss et as
co st of acq ui si t i on
44 AB / Pr es en t l y , ev er y It is pr op os ed to I t w ould b ring ea s e of
13 9 (1 ) / p er s on car r yi n g on i ncre as e t he t hr e s hol d doi ng b u sine s s , r ed u cing
19 4 A / b u si n es s / l imit f or a p er so n t ax co mplianc e s and
19 4 C / p ro fe s si on is carr yi ng on bu si nes s bo o st ing di git al
19 4H / req ui r ed t o get h i s fr om on e cr or e r up e es t o pay me nt s in M SM E
19 4I / acc o un t s a udi t e d , i f fiv e cr or e r up ee s in sect or .
19 4J / his t ot al sal e s , cas es w her e
20 6 C t urn o ver or g r os s
rec ei p t s , i n b u si n es s - aggr eg at e of all
exc ee d or e xce ed s am o unt s r ecei v ed
on e cr o re r up ee s i n inclu ding am o unt
an y p r evi o u s y ea r / rec eiv ed f or sal es ,
gr os s r ecei p t in t urn o ver or g r o ss
p ro fe s si on ex ce ed s , rec eipt s d urin g t he
fi ft y l akh r up ee s i n pre vi o us ye ar , in c a sh ,
an y p r evi o u s y ea r . du ring t he pr evi o u s
y ear , d o es n ot exc e ed
Pr es en t l y , al s o , t h e fiv e pe r ce nt o f s u ch
du e dat e a w ork i n g am o unt ; a nd
p art n er o f a fi rm - aggr eg at e of all
w h os e acc o un t s a re pay me nt s ma de
req ui r ed to be inclu ding am o unt
au di t ed un d er t h i s incu rr ed fo r
Ac t o r u n d er an y exp endit ur e , i n c a sh ,
ot h e r l aw f o r t h e du ring t he pr evi o u s
t i me b ei n g i n f orc e , y ear d o es n ot exc e ed
t h e 30t h da y of fiv e pe r c ent of s aid
Se p t emb er of t h e pay me nt .
as se s sm en t yea r ;
I t is als o p r op os e d t o
ext end t he d u e dat e f o r
filing ret urn o f inc om e
un der 1 39 (1 ) to 31 st
Oct o be r of t he

7
SNK

Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
as se s sm ent yea r as
again st 3 0t h Se pt e mbe r
w hich is t h e d u e d at e of
filling Tax Au dit Rep ort in
or de r t o enabl e pr e -
filling o f R et u rn s in cas e
of P er s on s ha ving
i nco me f r om b usi ne ss or
pro fe s si on

I t is prop o s ed t o r e mo ve
t he dist inct i on b et w een
a w orkin g an d a non -
w orkin g part n er o f a firm
s o a s t o enabl e b ot h t o
file t hei r Ret urn s of
I ncome w it hin t he du e
dat e i .e ., 30t h
Se pt emb er .

F urt he r , it i s p r op o se d t o
amen d TDS/TCS
pro vi si ons un de r s ec t ions
19 4 A, 1 94 C , 1 94 H , 19 4I ,
19 4J an d 2 06 C s o t hat
ref er enc e to t he
mo net ar y limit is
s ub st it ut ed w it h ru pee s
on e cr or e in case of t he
bu sin es s o r r u pe es fift y
l akh in ca se of t he
pro fe s si on , a s t he cas e
ma y be e ven in t he cas e
w here t hr es ho ld limit is 5
Cr . as dis c us se d in
af or es aid para .
(w .e .f . A. Y . 2 02 0- 2 1 )
25 0 Pr es en t l y , E- I n ord er t o en s ur e t hat E - appeal sch em e w o uld
As s e ss men t sc h e me t he ref o rm s init iat e d by bring maxi m um
h as b e en t he De part m ent t o go ve rnan ce w it h
in t rod u ce d i n o rd er eliminat e hu man minim u m g ov ern ment
t o i mp a rt gre at er i nt erfa ce f r om t he and eli minat e h u man
eff i ci en c y , s yst e m r each t h e next int erfa ce .
t ran sp are n c y and l ev el , an e - ap peal
acc o un t ab i l i t y to sch em e w ill be la un ched
the ass e ss me n t on the lin es of e-
p ro ce s s . as se s sm ent sche me by
C ent ral G o ve rnm ent .
(w .e .f . A. Y . 2 02 0- 2 1 )
10 (2 3 C ) Pr es en t l y , Ch arit able T ru st s I t w ould mak e
12 A / Ch ari t ab l e Tr u st s appr ov ed , r egi st e re d & eas e t he pr oc es s of
80 G / ap p r ov ed , not ifi ed u /s . 10 (2 3 C ), claimin g d ed uct i on f or
80 G G A regi st er ed & 12 AA, 35 & 8 0 G s ha ll be don at ion & al s o ,
n ot i fi ed u/s. req uir ed t o appl y fo r simpli f y t h e c o mpli ance
10 (2 3 C ) , 1 2 AA, 3 5 & appr ov al or Re gist r at ion fo r t he new and exi st ing
80 G ar e n ot w hich shall b e v alid fo r a cha rit abl e in st it ut i on s .

8
 SNK

Se ct io n Pr es e nt pr o vis i on
req ui r ed t o r en ew
t h ei r regi st rat i on
an d al s o ,
t h e p r oce s s o f t h e
regi st rat i on w as
co mp l et el y m an ual
an d scat t er ed al l
ov er t h e c o un t r y
Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
peri od n ot e xce edi ng 5
y ear s fr o m 01 .04 .2 02 0 . Tax Dep art m ent w ill
have a t rack o f t he
80 G / 8 0 G G A ex em pt ion Don ee s .
hol der t o s ub mit an nual
st at em ent of D on at ion
rec eiv ed
(w .e .f . 01 .0 6 .20 20 )

25 4 Pr es en t l y , I T AT w h i l e I T AT ma y n ow , g rant st ay It is pro ce du ral

gran t i n g st a y d oe s s ubj ect t o t he con d it ion amen dm ent t o r e mo ve
n ot man dat e t h e t hat t he as se s se dep o sit s st a y n orm s w hich w ere
as se s se t o d ep os i t not l es s t han 2 0 % o f t he diff er ent at I T AT st ag e .
20 % o f t h e am o u n t am o unt o f t ax , i nt e re st ,
of t ax , i n t e re st , fe e , fee , pe nalt y , or any F urt he r a t ax pa ye r w ho
p en al t y , or an y ot he r s um pa ya ble u nder u se d t o get f ul l st a y
ot h e r s um p a ya b l e t he pr ovi si on s o f t hi s Ac t , bef or e I T AT w o ul d now
un der t h e p r o vi si on s or f urni sh se c urit y of have t o pa y at lea s t 20 % .
of this Act , or eq ual a mo u nt in re s pect
fu rn i sh se c uri t y of t here o f
eq ual a m o un t in (w .e .f . A. Y . 2 02 0- 2 1 )
re sp e ct t h er e of
17 Pr es en t l y , the N ow , it is pr op o se d t o Pr es ent l y , t he re i s no
con t ri b ut i on b y t h e pro vid e a co mb ined co mbin ed uppe r limi t for
emp l o y er to the upp er li mit of 7 .5 la cs in t he pu rp os e of
acc o un t of an re spe ct of e mpl o y er 's ded u ct ion on t he
emp l o y ee in a cont rib ut i on i n a ye ar t o am o unt o f c ont ri b ut io n
rec og n i z ed N PS , s upe rann u at ion mad e b y t he empl o ye r
p ro vi d en t fund fu nd , r ec og nise d fo r N PS , s upe rann u at ion
exc ee di n g 1 2 % of pro vid ent f und and an y fu nd , r ec og nise d
sal a r y i s t ax ab l e . exc es s c ont ri b ut io n is pro vid ent f und and an y
pro p os ed t o be t axa ble . exc es s c ont rib ut io n .
F urt h e r , t h e am o u n t (w .e .f . A. Y . 20 21- 22 )
of an y c on t ri b ut i on N ow , it w ill b e c o mb ined
to an ap p r ov ed upp er li mit of 7 .5 la cs in
s up e ran n u at i on re spe ct of e mpl o y er 's
fu n d by the cont rib ut i on in a ye ar t o
emp l o y er N PS , s upe rann u at ion
exc ee di n g Rs. fu nd , r ec og nise d
1 ,5 0 ,00 0 i s t re at ed pro vid ent f und and a n y
as p erq ui si t e i n t h e exc es s c ont rib ut io n .
h an d s o f t h e
emp l o y ee .

Si mi l arl y , the
as se s see i s al l ow ed
a de d uct i o n un d er
Nat i on al Pen si on
Sch em e (N P S ) f or
the 14 % of the
sal a r y c on t ri b ut ed
by the C en t ral
G ov ern me n t an d
t en p e r c en t of t h e
sal a r y c on t ri b ut ed
by an y ot h er

9
SNK

Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
emp l o y er .

How e ve r , t h er e i s
n o c omb i n ed up p er
li mi t f or t h e p u rp o se
of d ed uct i on on t h e
am o un t of
con t ri b ut i on ma de
b y t h e emp l o y er .
17 (2 ) C ur re n t l y E S OP s a re Pa ym ent o f t ax on E S OP s The said am end me n t w ill
t axed a s p er q ui si t e s t o em pl o ye es o f eli gible eas e t he b ur den of
un der sect i on 17 (2 ) st art - ups is d ef er red fr om pay me nt of t ax es b y t he
of t h e Act rea d w i t h t he dat e of exe rci s e of empl o y ee s of t he
R ul e 3 (8 ) (i i i ) o f t h e opt i on t o t h e ea rlie st o f eligibl e st art - ups .
R ul e s . t he f oll ow ing ;
Th e t axat i on of (i ) expi r y of 48 m ont hs
E S OP s i s sp l i t i n t o fr om t h e e nd o f t h e
t w o c omp on en t s : rele vant AY ; or
i. T ax on p erq ui si t e (ii ) f r om t he dat e of t he
as i n c o me f r om sale of s uc h
sal a r y at t h e t i me of spe cifi ed s ec ur it y o r
exe rci se . sw eat e q uit y sh ar e ;
or
ii . Tax on i n c o me
fr om c ap i t al gai n at (iii ) f r o m t he dat e of
t h e t i me of sal e . w hich t he as s es s e e
cea se s t o be the
Th e t ax on
empl o y ee of the
p erq ui si t e is
st art - up ;
req ui r ed t o b e p ai d
at the t i me of The p erq ui sit e inc om e
exe rci si n g of op t i on fr om E S OP s shall
w h i ch ma y l ea d t o cont in u e t o b e t ax e d o n
cash fl ow p r ob l em t he ba sis o f t he r at es
as t h i s b en efi t of applicabl e in t he y e ar o f
E S OP i s i n ki n d . allot m ent of s aid sh a re s
(w .e .f . A. Y . 2 02 0- 2 1 )

 CHANGES IN PROVISIONS RELATED TO NON- RESIDENT, INTERNATIONAL

TAXATION AND TRANSFER PRICING :

Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
6( 1) in di vi d ual sh al l be Pe rio d of st a y in I nd ia I ndian cit izen or p er s on
and I n di an re si d en t i n a is re d uce d t o 1 20 da y s of I ndi an ori gin , w ho
6( 1 A) y ear , i f h e ,- fr om p re sent 1 82 d a y s are act uall y ca rr y ing
(i ) h a s b een i n I n di a fo r fo r I ndian cit ize n or o ut s ub st an t ial
an o ve ral l p eri o d of 36 5 per s on of I ndi an ec on omic act ivi t ies
da ys or m o re w i t h i n f o ur ori gin . fr om I ndia , w ere
y ear s p rec edi n g t h at (w .e .f . A. Y . 2 02 1- 2 2 ) mana g i n g t hei r per iod
y ear , an d of st a y in I ndia , s o a s t o
(ii ) i s i n I n di a fo r an rem ain a no n - re si d ent
ov er al l p eri o d of 60 in pe rpet uit y an d not
da ys or m or e i n t h at be r eq uir ed t o de cl are

10
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Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
y ear . t heir gl obal inc o me in
Cl a u s e (b ) of I ndia.
E xp l an at i on 1 of s ai d T o c urb t hi s d o u ble
s ub - sect i on p r ovi de s non - t ax at ion o f st at e -
t h at an I n di an ci t i ze n or les s per s on s , st a y in
a p er s on of I n di an I ndia is red u ce d t o 12 0
ori gi n sh al l b e I n di an da ys , s uc h t hat an
re si d en t i f h e i s i n I n di a I ndian cit iz en w h o is
fo r 18 2 da y s i n st ea d of not liabl e t o t ax in any
60 da y s i n t h at ye ar . ot he r c o unt r y or
t errit o r y by r ea s on of
his d o micil e or
re sid ence o r an y ot her
crit eria of si mila r nat ur e
shall be de em ed t o be
re sid ent in I ndia .
6( 6) A p e rs on , being Sai d crit er ia is r ela x ed Cr it eria i s rela xe d so
I n di vi d ual o r H U F s h al l and n ow o nl y one t e st t hat a non - re sid ent is
be " n ot o rdi n ari l y t hat a pe rs on , b ei ng not s ud denl y f a ced
re si d en t " h e h a s b ee n a I ndivid ual or H U F sh all w it h t he complia nce
non - re si d en t i n I n di a i n be "n ot or dinari ly req uir em ent of a
9 o ut of 1 0 p rec ed i n g re sid ent " he ha s b e en re sid ent , m er el y
y ear s , or h a s d ur i n g a n on - r esi dent in I nd ia beca u se he sp e nds
t h e 7 p rec edi n g y ear s in 7 o ut of 10 mo re t han s peci f ied
been i n I n di a f or a prec edin g y ear s , nu mbe r o f da y s in I ndia
peri od of 72 9 d a ys or (w .e .f . A. Y . 2 02 1- 2 2 ) du ring a part i c ula r
les s y ear .
1 9 4L C C on c e ssi on al rat e of Pe rio d of Thi s ma y h elp in
TD S at 5 % i s ap p l i ca b l e con ce ssi o nal rat e of at t ract ing fr esh
on i n t ere st p ai d t o n on - TD S o f 5 % i s ext en d ed inve st me nt in f o re ign
re si d en t s on t h e ce rt ai n t o 0 1 - 0 7- 2 02 3 f r om 0 1 - cu rr enc y .
fo rm s of b o rr ow i n gs 07- 20 20 .
(a p p r o ved by the
Rat e of TD S shall be
C en t ral Go ve rn m en t )
4% on t he int e re st
mad e b e f or e 0 1 - 07-
pay able t o a n o n -
20 20 b y a s p eci f i ed
re sid ent , in r e spect of
co mp an y or a b u si n es s
mo nie s b or r ow ed in
t ru st i n f o rei gn c u rre n cy
fo rei gn c u rr enc y fr o m
fr om s o ur ce s o ut s i de
a s o ur ce o ut si de
I n di a
I ndia, b y w a y of is s ue
of an y l on g t er m b o nd
or RDB on or aft e r 0 1 -
04- 20 20 b ut bef or e 0 1 -
07- 20 23 an d w hich is
list ed o nl y on a
rec og nis ed st o ck
exch ang e l ocat e d in
any I F S C
(w .e .f . A. Y . 2 02 0- 2 1 )
94B Ded u ct i b l e i n t e re st or Pr ovi si on s o f int e re st Thin c apit aliz at ion r ul es
simi l ar exp e n se s ded u ct ion li mit at ion rela xed in re fe ren ce t o
exc ee di n g on e cr or e w ou ld n ot apply t o PE of a no n - re si d ent
ru p e es of an I n di an int ere st paid in enga ge d in t he
co mp an y o r a PE o f a re spe ct of a d e bt banking b usi ne ss in
fo rei gn c o mp an y , p ai d iss u ed b y a len d er
11
SNK

Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
to the as s oci a t ed w hich is a PE o f a I ndia.
en t erp ri s e s ( AE ) sh al l b e non - re sid ent ,
re st ri ct ed t o 30 p er enga ge d in t he
cen t . o f i t s ear n i n gs bu sin es s of ban kin g , in
bef or e i n t er est , t a xe s , I ndia.
dep reci at i on an d
(w .e .f . A. Y . 2 02 1- 2 2 )
am ort i s at i on (E B I TD A) o r
in t ere st p ai d or
pay ab l e to AE ,
w h i ch ev er i s l e s s .
115A N on - r e si d en t s w ere I f TD S on r o yalt y or F T S E arlie r n on - r esi d ent s
req ui r ed t o fi l e of r et ur n has be en d ed uct ed at w ere r eq uir ed t o file
of i n c o me if t ot al t he rat e s w hich a re R OI if inc o me c on sis t ed
in co me c on si st s of t h e not l ow er t han t he of divi den d o r int e re st
in co me by w ay of pre scri be d rat e s u /s inco me and o n w hich
ro y al t y or Fe es fo r 11 5 A(1 ) t han t he n o n - TD S at applicabl e r at es
t ech n i cal s er vi ce s (F T S ) re sid ent s shall n ot be w as d ed uct e d . S aid
req uir ed t o file ret u rn bene fit is ext en de d t o
of inc o me inco me o f t he nat u r e of
ro y alt y or F TS , w hich
(w .e .f . A. Y . 2 02 0- 2 1 )
w ou ld ea se c om plia nce
bu rd en of n on -
re sid ent s .
9 2C B Ben e fi t of Sa fe Har b o ur Det er minat i on of M or e lit igat ion s can be
and R ul e s (S H R ) an d at t ribut i on of p r ofi t s red u ced w it h t he help
9 2C C Ad v an ce Pri c i n g t o PE is pr op o se d t o of SH R and AP A.
Ag r e em en t ( AP A) are be co ve re d w it hin the
not av ai l ab l e to sc op e o f SH R a nd
at t ri b ut i on of p r o fi t s t o AP A.
t h e PE o f a n o n - re si d en t
(w .e .f . A. Y . 2 02 0- 2 1 )
un der cl a u se (i ) o f s ub -
sect i on (1 ) of s ect i o n 9
of the Act an d in
acc or dan c e w i t h R ul e
10 o f t h e R ul e s .
9 0- 9 0 A -- The C ent r al I ndia has si gne d t he
G ov ern me nt m ay M ult ilat er al C on vent ion
en t er int o an t o I mplem ent Ta x Tr e at y
agr ee ment w it h the Rel at ed M ea s u re s to
G ov ern me nt of a ny Pr ev ent Bas e E r o s ion
co unt r y o ut s ide I nd ia and Pr ofit Shi ft ing
or sp eci fie d t er rit o ry (c o mm onl y r ef er re d t o
o ut si de I ndia f or t he as M LI ) al ong w it h
av oida nce of d o ub le repr e sent at iv es of
t axat ion of in c o me man y c o u nt rie s .
un der t he Act a nd
The M LI is an o ut c o me
un der t he
of the G2 0 - OE CD
co rre sp on ding l aw in
pro ject t o t ackl e B ase
fo rc e in t hat c o u nt ry
E ro si on and P r ofit
or s peci fie d t e rrit or y ,
Shi ft ing (t he BEPS
as t he c as e ma y b e ,
Pr oj ect ), i .e . t ax
w it hout c reat i ng
p l a n n i n g st ra t egi e s t h a t
opp o rt unit ie s f or n o n -
expl oit g ap s and
t axat ion o r r ed u c ed
mis mat che s in t ax r ul es
t axat ion t h ro u gh t ax

12
 SNK

Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
eva si on or a v oid an ce t o art ificiall y shift pr ofit s
(in cl udin g t hr o u gh to low or n o - t ax
t reat y- sh oppi ng locat i on s w he re t her e i s
arran ge me nt s ai m ed lit t le or n o ec on o mic
at obt ainin g r elie fs act ivit y , r es ult in g in
pro vid ed in t his lit t le or no o ve rall
agr ee ment f or t he co rp orat e t ax be ing
indir ect ben efit of paid .
re sid ent s o f an y ot h er
co unt r y or t e rrit or y ).
(w .e .f . A. Y . 2 02 1- 2 2 )

 CHANGES IN GST RELATED PROVISIONS :

Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
Provisions in GST Act
10 C ur re n t l y a s p e r t h e N ow t he re gist e red The a men dm ent is
p ro vi si on of se ct i on 10 , per s on w o uld be pro p os ed t o h arm o nize
t h e regi st e re d p er s o n i s eligibl e onl y t o o pt fo r t he con dit ion s fo r
el i gi b l e to opt fo r co mp osit i on le v y if h e i s eligibilit y f or opt ing t o
co mp osi t i on l e v y o n l y i f not eng age d in mak ing pay t ax un der
he i s n ot en g age d i n any s uppl y of go o d s or co mp osit i on
maki n g an y s up p l y o f s er vi ce w hich i s not .
go o ds w h i ch is n ot levia ble t o t ax , he is
levi a b l e t o t ax , h e i s not eng age d in mak ing
not en gag ed i n mak i n g any int er - St at e o ut w ard
an y i n t er - St at e o ut w ard s uppli es o f g o od s or
s up p l i es o f g oo d s an d s er vi ce and he i s not
he i s n ot en g age d i n enga ge d in maki ng any
maki n g an y s up p l y o f s uppl y of g o od s or
go o ds t h r o ug h an s er vi ce t hr o ug h an
el ect r on i c c o mm e rce elect r oni c c o mm e rce
op erat or who is op erat or w ho is
req ui r ed t o co l l ect t ax req uir ed t o c olle ct t ax
at s o urc e un der s ect i on at s o urc e
52
16 C ur re n t l y fo r N ow t he t im e limit f or The a men dm ent is
asc ert ai n i n g t h e t i me availin g t he c redit in pro p os ed t o d elink t he
limi t f or a vai l i n g cr edi t cas e o f d ebit not e is dat e of is s uan ce o f
in case of d eb i t n ot e i s linked w it h t he i s s ua nce debit n ot e fr om t he
lin k w i t h t h e i n v o i ce of s u ch debit not e dat e of i s s uanc e of t he
dat e fo r w h i ch s uch un derl y ing in voi ce fo r
deb i t n ot e i s i s s u ed . pu rp os e s of avai ling
input t ax cr edi t . I T C in
re spe ct o f d ebit n ot e s
co ul d be a va iled
be y ond t h e t im e limi t of
availin g t he I T C on t he
un derl y ing inv oic e .
29 C ur re n t l y t h e p ro vi s i on N ow t he p er s on t ak ing
fo r can c el at i on of vol u nt ar y r egi st rat ion
regi st rat i on d o es n ot als o can canc el t he
al l ow the p er s on regi st rat i on if he w ant

13
SNK

Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
maki n g v ol u n t ar y t o opt o ut .
regi st rat i on t o can cel
it s regi st rat i on e ve n i f
he i s n o l on g er l i ab l e t o
regi st er ed un d er S ec .
22 (c r os si n g the
t h resh ol d l i mi t ) o r S ec .
24 (C o m p ul s or y
regi st rat i on )
122 C ur re n t l y t h e t axa b l e N ow t he per s on w ho The a men dm ent w o uld
p er s on ret ain s t he bene fit and t hus al s o m ake t he
at w hose in st anc e s uch bene ficia r y of s uch
- who supplies
t ransa ct ion is t ransa ct ion s at w h o se
w i t h out issue of
con d uct ed sh all als o inst anc e s uch
i n v oi ce ,
be lia ble t o p ena lt y o f t ransa ct ion s are
- I ss ue i n v oi c e an am o unt e q uival ent con d uct ed li able fo r
w i t h out s up p l y t o t ax e vad ed o r I TC penalt y .
avail ed o r p as se d on .
- Tak es o r ut i l i t i es I T C
w i t h out act ual
rec ei p t of go o d s or
se rvi c e
- Tak es o r di st ri b ut e
the ITC in
con t r av e n t i on of
Se c . 2 0 (p r ovi si on
I SD)
are only liable to
p en al t y of 1 0 ,0 0 0 or
am o un t of t ax ev ad ed
or i n p ut t ax cr e di t
avai l ed o r p as se d on .
132 C ur re n t l y the p er s on N ow it t he pers on w ho The a men dm ent is
w h o co mmi t s o ff e n c e i s co mmit s or ca u se s t o pro p os ed s o a s t o m ake
on l y l i ab l e to co mmit an d ret ain t he t he o ff ence of
p un i sh men t bene fit ari sin g o ut o f it fra u d ulent a vail men t of
w ou ld als o be liabl e t o input t ax cr edit w it ho ut
puni sh ment . Al s o now inv oice or bill
t he pe rs o n w ho co gniz able an d non -
fra u d ulent l y a vail s in put bailable and to make
t ax cre dit w it ho ut any any p er s on w ho ret ains
inv oice or bill w o uld t he bene fit o f ce r t ain
a ls o be liabl e to t ransa ct ion s and at
puni sh ment . w hos e in st anc e s uch
t ransa ct ion s are
con d uct ed li able fo r
puni sh ment .
Provisions in Income Tax Act
271AAD C ur re n t l y t h e a ddi t i on N ow s epa rat e p en alt y
fo r f ake i n v oi c e is aggr eg at ing t o am o unt
mad e un de r se ct i on 6 9 of fal s e e nt r y w o ul d be
an d p e n al t y i s l e v i ed levi ed .
un der Sec . 27 0 A
Fal se ent r y incl u de s
fo rg ed or f alsi f ied

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Se ct io n Pr es e nt pr o vis i on Pr op os e d am en dm en t Im pa ct / Re mar ks /
Obs er v ati on
do c um ent s s uch as a
fals e i nv oic e or, in
gen eral , a f als e pi ece
of d oc u ment ar y
evid enc e , in v oic e in
re spe ct of s uppl y or
rec eipt o f g o o ds or
se rvic e s or b ot h is s ue d
by t he pe r so n o r any
ot he r per s on w it ho ut
act ual s up pl y or rec eipt
of s u ch g o o ds or
se rvic e s or bot h or
inv oice in r esp ect of
s uppl y o r r ecei pt o f
go o ds o r s er vic es or
bot h t o o r fr o m a
per s on w ho d o es not
exi st

15
SNK

T AB L E F O R P R O P O S E D T . D . S . / T . C. S . R AT E S F O R A. Y . 2 0 2 1 - 2 2
Se ct io n Na tur e o f in co m e Whe n to d ed uc t / C o lle ct Rat e o f T DS
19 2 Pe rq ui si t es (E SO P ) Ded u ct Wit hin 1 4 da ys : On t he av er age ra t es
(i ) aft er t he expi r y of 48 applicabl e in t he y ear
mo nt hs fr o m t he en d o f t he of all ot m ent /t ra ns fer
rele vant a ss es s ment yea r ; on t he b asi s o f per
or rat es f o r in divi d ual s .
(ii ) fr o m t he dat e of t he
sale of s uch sp ecifi ed
sec u rit y o r s w eat eq uit y
sha re b y t he as se s s ee ; or
(iii ) fr o m t he dat e o f w hich
t he as se s se e c ea se s t o be
t he empl o y ee of t he
per s on ,
Whiche ve r i s ea rlier
19 4 Di vi d en d s Bef or e makin g p a y ment t o 10 %
sha reh ol der , w hen am o unt
exc ee ds Rs. 5 ,0 0 0/ - if
pay me nt is ma de b y cash
19 4 A I n t erest ot h e r t h an At t he t im e of cr edit or 10 %
(N o t e 1 ) “I n t erest on pay me nt , w hiche v er is
sec u ri t i e s” , earli er ,
C o- op erat i v e (a ) t u rn ov er of co
S oci et y op erat iv e e xce edi ng 50
cr ore in im me diat el y
prec ee ding t h e F Y and
(b ) i nt er est i s cr edi t ed o r
paid , or is lik el y t o be
cre dit ed o r pai d , d u ring FY
exc ee ds R s . 5 0 ,00 0/ - in
cas e o f a s eni or cit izen
and Rs . 4 0 ,00 0 / - i n an y
ot he r ca s e .
19 4J Pr of e ssi on al se rvi c e , At t he t im e of cr edit or 10 %
(N o t e Fe es , o r r o y al t y o r pay me nt , w hiche v er is
1) n on - c o mp et e fe es , earli er , w hen t h e am o unt
Di re ct or s exc ee ds Rs . 30 ,0 00 / -
rem u n er at i on w h i ch
is n ot i n t h e n at u re
of s al ar y
Cal l 2%
C en t re s /T ech n i cal
Se rvi ce s
19 4K I n come i n re sp ect At t he t im e of cr edit or 10 %
of : pay me nt , w hiche v er is
(a ) un i t s of a M ut ual earli er , w hen t h e am o unt
F un d s p eci fi e d exc ee ds Rs . 5 ,0 0 0/ -
un der cl a u s e (2 3D )
of s ect i on 10 ; or
(b ) un i t s f ro m t h e
Ad m i n i st rat or o f t h e
sp e ci fi ed
un dert ak i n g ; or
(c ) un i t s f r om t h e
sp e ci fi ed c omp an y ,

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Se ct io n Na tur e o f in co m e Whe n to d ed uc t / C o lle ct Rat e o f T DS

19 4 LB A I n t erest f r om SPV t o At t he t im e of cr edit or 5% - N on Re sid ent
un i t h ol de r b y a pay me nt w hichev er is
b u si n es s t r u st earli er
Di vi d en d r ef er red i n 10 % - N on R esi dent
11 5O di st ri b ut e d t o
un i t h ol de r b y a
b u si n es s t r u st
19 4 L C Pa ym en t s a s 4%
ref er re d a s ab ov e
b or r ow ed aft er 01 -
04- 20 20 b ut b e f or e
01- 07- 20 23 an d
w h i ch i s l i st e d on l y
on a rec o gn i s ed
st oc k e xch a n g e
l ocat ed i n
an y I F S C
19 4L D Pa ym en t of i n t e re st At t he t im e of cr edit or 5%
on b on d o r pay me nt w hichev er is
G ov ern me n t earli er
sec u ri t y or
M un i ci p al Deb t
Se c uri t i e s t o F or ei gn
I n vest or
20 6 C Au t h ori se d D eal er At t he t im e o f D ebit o r 5 %
maki n g r emi t t an c e Re ceipt , (1 0 % if N o P AN or
o ut si de I n di a un der w hichev er i s earli er if t he Aa d har Ca rd )
t h e L R S of R B I remit t an c e i s in ex ces s o f
R s . 7 La cs
Sel l er of an o ve rs ea s At t he t im e o f D ebit o r 5 %
t ou r p r og ram Re ceipt , (1 0 % if N o P AN or
p acka ge w h o w hichev er is ea rlie r Aa d har Ca rd )
rec ei v es an y
am o un t f r om an y
b u y er
20 6 C Sal e of G o od s b y a At t he t im e o f D ebit o r 0 .1 %
(N o t e p er s on h avi n g Re ceipt , (1 % if N o P AN or
3) t urn o ver e xce edi n g w hichev er i s earli er if t he Aa d har Ca rd )
R s . 10 c ro re i n a con sid er at ion r e ceiv ed
i mm edi at el y fr om a b u y er in ex ces s o f
p rec edi n g fi n an ci al R s . 50 Lac s
y ear

17
SNK

GRAPH SHOWING SOURCES & APPLICATION OF RUPEE

18