Circular No.03/2014, F. No. 142/24/2013-TPL, dated
24.01.2014
Explanatory Notes to the provisions of the Finance Act,
2013
Amendments at a Glance:
Section/Schedule
|
Particulars/Paragraph number
|
|
Finance Act, 2013
|
||
First
Schedule
|
Rate
Structure, 3.1 - 3.4
|
|
Income-Tax Act, 1961
|
||
2
|
Change
in the definition of capital asset, 4.1-4.5
|
|
10
|
·
Change
in the definition of keyman insurance policy, 5.1 – 5.5;
·
exemption
to income of investor Protection Fund of depositors, 6.1-6.3 ;
·
pass
through status to certain Alternative Investment Funds, 7.1 – 7.4;
·
exemption
of income received in India in Indian currency by a foreign company, 8.1
– 8.4;
·
Exemption
to National Financial Holdings Company Limited, 9.1 – 9.3.
|
|
Insertion
of new section 32AC
|
Incentive
for acquisition and installation of new plant or machinery by manufacturing
company, 10.1-10.4.
|
|
36
|
Clarification
for amount to be eligible for deduction as bad debts in case of banks, 11.1
- 11.8.
|
|
40
|
Disallowance
of certain fee, charge, etc. in case of State Government Undertakings, 12.1
- 12.3.
|
|
Insertion
of new section 43CA
|
Computation
of income under the head “profits and gains of business or profession” for
transfer of immovable property in certain cases, 13.1 – 13.4.
|
|
56
|
Taxability
of immovable property received for inadequate consideration, 14.1 –
14.4.
|
|
80C
|
Raising
of limit of percentage of eligible premium for life insurance policies of
persons with disability or disease, 15.1 – 15.6.
|
|
80CCG
|
Expanding
the scope and deduction and its eligibility under the section, 16.1 -
16.5.
|
|
80D
|
Deduction
for contribution to Health Schemes similar to Central Government Health
Scheme (CGHS), 17.1 -17.3.
|
|
Insertion
of new section 80EE
|
Deduction
in respect of interest on loan sanctioned during financial year 2013-14 for
acquiring residential house property, 18.1 – 18.4.
|
|
80G
|
One
hundred per cent deduction for donation to National Children‘s Fund, 19.1-
19.4.
|
|
80GGB
&
80GGC
|
Contribution
not to be in cash for deduction under section 80GGB & 80GGC, 20.1 –
20.3.
|
|
80-IA
|
Extension
of the sunset date under the section for the power sector, 21.1 – 21.3.
|
|
80JJAA
|
Deduction
for additional wages in certain cases, 22.1
– 22.6.
|
|
87
and Insertion of new section 87A
|
Rebate
of 2000 for individuals having total income up to Rs. 5 lakh, 23.1 –
23.4.
|
|
90
and 90A
|
Tax
Residency Certificate, 24.1-24.5.
|
|
Omission
of Chapter X-A relating to general Anti Avoidance Rule and Insertion of new
Chapter X-A, omission of section 144BA and insertion of new section 144BA,
amendment of sections 144C, 153D, 245N, 245R, 246A, 253 and 295
|
General
Anti Avoidance Rule (GAAR), 25.1-25.5.
|
|
115A
|
Taxation
of income by way of Royalty or fees for technical services, 26.1 -
26.4.
|
|
115BBD
|
Lower
rate of tax on dividends received from foreign companies, 27.1 – 27.3.
|
|
115-O
|
Removal
of the cascading effect of Dividend Distribution Tax (DDT), 28.1 –
28.5.
|
|
Insertion
of new Chapter XII-DA
|
Additional
income-tax on distributed income by company for buy-back of unlisted shares, 29.1
– 29.4.
|
|
115R
|
Rationalisation
of tax on distributed income by the Mutual Funds, 30.1 – 30.5.
|
|
Insertion
of new Chapter XII-EA
|
Taxation
of securitisation trusts, 31.1 - 31.4.
|
|
132B
|
Application
of seized assets, 32.1 – 32.3.
|
|
138
|
Replacement
of terms “Foreign Exchange Regulation Act, 1947” and “Foreign Exchange
Regulation Act, 1973” with “Foreign Exchange Management Act, 1999”, 33.1
– 33.4.
|
|
139
|
Return
of income filed without payment of self-assessment tax to be treated as
defective return, 34.1- 34.3.
|
|
142
|
Direction
of special audit under sub-section (2A) of the section, 35.1 – 35.3.
|
|
153
and 153B
|
·
Exclusion
of time I computing the period of limitation for completion of assessments
and reassessments, 36.1 – 36.6;
·
Time
limit for completion of assessment or reassessment where reference is made to
the transfer pricing officer, 37.1 – 37.6.
|
|
167C
and 179
|
Clarification
of the phrase “tax due” for the purposes of recovery in certain cases, 38.1
– 38.3.
|
|
Insertion
of new section 194-IA
|
Tax
Deduction at Source (TDS) on transfer of certain immovable properties (other
than agricultural land), 39.1-39.6.
|
|
Insertion
of new section 194LD, amendment of sections 115AD, 195 and 196D
|
Income
by way of interest on certain bonds and Government securities, 40.1 –
40.2.
|
|
204
|
Meaning
of person “responsible for paying” under Chapter XVII, 41.1 – 41.4.
|
|
206AA
|
Exemption
from requirement of furnishing PAN under section 206AA to certain
non-resident bond holder, 42.1 -42.3.
|
|
206C
|
Removal
of exemption from levy of Tax Collection at Source (TCS) to cash sale of any
coin or any other article weighing 10 grams or less, 43.1 – 43.2.
|
|
252
|
Appointment
of President of the Appellate Tribunal, 44.1
– 44.4.
|
|
Substitution
of new section for section 271FA
|
Penalty
under section 271FA for non-filing of Annual Information Return, 45.1 –
45.5.
|
|
Fourth
Schedule
|
Extension
of time for approval, 46.1 – 46.5.
|
|
Wealth-tax Act, 1957
|
||
2
|
Change
in the definition of capital asset; exemption from wealth tax to agricultural
land situated in urban area, 47.1 – 47.3.
|
|
Insertions
of new sections 14A and 14B and amendment of section 46
|
Enabling
provisions for facilitating electronic filing of annexure-less return of net
wealth, 48.1 - 48.4.
|
|
Finance (No.2) Act, 2004
|
||
Section
98 of the Finance (No.2) Act, 2004
|
Rationalisation
of securities transaction tax rates, 49.1 – 49.3.
|
|
Chapter VII, Finance Act, 2013
|
||
Chapter
VII of the Finance Act, 2013 and amendment in sections 36 and 43 of the
Income-tax Act, 1961
|
Commodities
Transaction Tax, 50.1 – 50.6.2.
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