Union Finance Minister Shri Pranab Mukherjee held a meeting with Trade Unions’ Group to get their inputs for General Budget 2011-12, here today. This was the third meeting in the series of pre-Budget consultations held by Finance Minister with the st

The existing provisions contained in subsection 3 of Section 203 states that there is no requirement to issue a certificate by the deductor to the deductee if TDS has been deducted and paid as per the provisions of chapter XVII B. Similarly the first proviso to subsection 5 of Section 206C of the Act prescribes that there is no requirement of TCS certificate to be issued in case the tax has been collected and paid as per Section 206C.

As per existing provision, in case of TDS deducted as per Chapter XVII-B but the payment of the same not deposited with the Government within due date of section 139(1) for the last month of the previous year and within the last day of the financial year for the first eleven months, results in the disallowance of such expenses, the same not being an amount deductible as an expense.

Section 10AA was inserted in the Income-tax Act, 1961 (“the Act”) by the Special Economic Zones Act, 2005 (“the SEZ Act”) with effect from 10-2-2006. The section was enacted specially with respect to provide tax exemption to the newly established units in the Special Economic Zone (“the SEZ”).

Last week, Finance Act, 2010 came into effect. A few days earlier, Finance Minister Pranab Mukherjee had spelt out his response to several representations regarding his Budget proposals. Apparently, there were hardly any representation about the changes that will create tax liability for taxpayers with retrospective effect, or he decided not to yield to the representations.

The Union finance minister had introduced the Finance Bill, 2010 in the Lok Sabha on February 26, 2010 and proposed to tax 8 new services. On May 8, 2010, the President gave her consent to the Finance Bill and thus the Finance Act, 1994 (14 of 2010) has come into effect from that date. SERVICE TAX IS BEING IMPOSED ON THE FOLLOWING SPECIFIED SERVICES:

“The Finance Bill, 2010 was earlier passed by the Lok Sabha followed by its passage by the Rajya Sabha. The Finance Bill, 2010 has been assented to by the Hon’ble President on 8-5-2010 as Act No. 14 of 2010. With this, the Budgetary exercise is over for the F.Y. 2010-2011.”

The Finance Bill, 2010 (the Bill) was presented by the Finance Minister (FM) before the Lok Sabha ( The lower house of Parliament of India ) with certain amendments. This Flash News gives a snapshot of the key amendments to the Bill as passed by the Lok Sabha. The Bill including these amendments will become law only after they are passed by the Rajya Sabha (The upper house of Parliament of India ) and thereafter receive the assent of the President of India.

Pursuant to the annual budget, the Government of India (Government) had introduced the Finance Bill 2010 (Finance Bill) in the Parliament on 26 February 2010. The Government has now proposed certain amendments to the Finance Bill (As a reply to the debate on the Finance Bill in the lower house of the Parliament) as initially presented before the Parliament. This Tax Alert summarizes the amendments proposed by the Finance Bill to the Direct Tax Law (DTL) and the Indirect Tax law (ITL).

Direct Taxes (Income Tax) – Relaxation announced by the Finance Minister in the Lok Sabha while replying to the debate on Finance Bill, 2010 onApril 29, 2010. While introducing the Finance Bill, 2010 in respect of Direct Taxes, emphasis has been on relief to individual taxpayers, encouraging research and development in the country, providing some relief measures in view of the recessionary impact and rationalization of procedure and steps to mitigate compliance cost.