Download Finance (No. 2) Bill, 2019 as passed by Lok Sabha

Lob Sabha has passed Union Budget 2019 i.e. The Finance (No. 2) Bill, 2019  on 18th July 2019 with Various amendment in some of the sections and also inserted few new provisions. Full text of the same is as follows:-

AS PASSED BY LOK SABHA ON 18.7.2019

Bill No. 55-C of 2019

THE FINANCE (NO. 2) BILL, 2019
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ARRANGEMENT OF CLAUSES
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CHAPTER I
PRELIMINARY

CLAUSES

1. Short title and commencement.

CHAPTER II
RATES OF INCOME-TAX

2. Income-tax.

CHAPTER III
DIRECT TAXES
Income-tax

3. Amendment of section 2.

4. Amendment of section 9.

5. Amendment of section 9A.

6. Amendment of section 10.

7. Amendment of section 12AA.

8. Amendment of section 13A.

9. Amendment of section 35AD.

10. Amendment of section 40.

11. Amendment of section 40A.

12. Amendment of section 43.

13. Amendment of section 43B.

14. Amendment of section 43CA.

15. Amendment of section 43D.

16. Amendment of section 44AD.

17. Amendment of section 47.

18. Amendment of section 50C.

19. Amendment of section 50CA.

20. Amendment of section 54GB.

21. Amendment of section 56.

22. Substitution of section 79.

23. Amendment of section 80C.

24. Amendment of section 80CCD.

25. Insertion of new sections 80EEA and 80EEB.

26. Amendment of section 80-IBA.

27. Amendment of section 80JJAA.

28. Amendment of section 80LA.

29. Amendment of section 92CD.

30. Amendment of section 92CE.

31. Substitution of section 92D.

32. Amendment of section 111A.

33. Amendment of section 115A.

34. Amendment of section 115JB.

35. Amendment of section 115-O.

36. Amendment of section 115QA.

37. Amendment of section 115R.

38. Amendment of section 115UB.

39. Amendment of section 139.

40. Amendment of section 139A.

41. Amendment of section 139AA.

42. Amendment of section 140A.

43. Amendment of section 143.

44. Amendment of section 194DA.

45. Amendment of section 194-IA.

46. Insertion of new sections 194M and 194N.

47. Amendment of section 195.

48. Amendment of section 197.

49. Amendment of section 198.

50. Amendment of section 201.

51. Substitution of section 206A.

52. Amendment of section 228A.

53. Amendment of section 234A.

54. Amendment of section 234B.

55. Amendment of section 234C.

56. Amendment of section 239.

57. Amendment of section 246A.

58. Amendment of section 269SS.

59. Amendment of section 269ST.

60. Insertion of new section 269SU.

61. Amendment of section 269T.

62. Amendment of section 270A.

63. Insertion of new section 271DB.

64. Amendment of section 271FAA.

65. Amendment of section 272B.

66. Amendment of section 276CC.

67. Amendment of section 285BA.

68. Amendment of section 286.

69. Amendment of rule 68B of Second Schedule.

CHAPTER IV
INDIRECT TAXES
Customs

70. Amendment of section 41.

71. Insertion of New Chapter XIIB.

72. Amendment of section 103.

73. Amendment of section 104.

74. Amendment of section 110.

75. Amendment of section 110A.

76. Insertion of new section 114AB.

77. Amendment of section 117.

78. Amendment of section 125.

79. Amendment of section 135.

80. Amendment of section 149.

81. Amendment of section 157.

82. Amendment of section 158.

83. Amendment of notifications issued under sub-section (1) of section 25 of Customs Act, retrospectively.

84. Amendment of notification issued under sub-section (1) of section 25 of Customs Act and sub-section (12) of section 3 of Customs Tariff Act, retrospectively.

85. Retrospective effect of notification issued under sub-section (1) of section 25 of Customs Act and sub-section (12) of section 3 of Customs Tariff Act.

Customs Tariff

86. Amendment of section 9.

87. Amendment of section 9C.

88. Amendment of First Schedule.

89. Validation of modification in classification of certain goods leviable to anit-dumbing duty with retrospective effect.

90. Validation of modification in description of goods with retrospective effect.

Central Excise

91. Amendment of Fourth Schedule.

Central Goods and Services tax

92. Amendment of section 2.

93. Amendment of section 10.

94. Amendment of section 22.

95. Amendment of section 25.

96. Insertion of new section 31A.

97. Amendment of section 39.

98. Amendment of section 44.

99. Amendment of section 49.

100. Amendment of section 50.

101. Amendment of section 52.

102. Insertion of new section 53A.

103. Amendment of section 54.

104. Amendment of section 95.

105. Insertion of new sections 101A, 101B and 101C.

106. Amendment of section 102.

107. Amendment of section 103.

108. Amendment of section104.

109. Amendment of section105.

110. Amendment of section 106.

111. Amendment of section 168.

112. Amendment of section 171.

113. Amendment of notification number G.S.R. 674(E) issued under sub-section (1) of section 11 of Central Goods and Services Tax Act, retrospectively.

Integrated Goods and Services tax

114. Insertion of new section 17A.

115. Amendment of notification number G.S.R. 667(E) issued under sub-section (1) of section 6 of Integrated Goods and Services Tax Act, retrospectively.

Union Territory Goods and Services tax

116. Amendment of notification number G.S.R. 711(E) issued under sub-section (1) of section 8 of Union Territory Goods and Services Tax Act, retrospectively.

Service tax

117. Special provision for retrospective exemption from service tax on service by way of grant of liquor licence.

118. Special provision for retrospective exemption from service tax in certain cases relating to services provided by Indian Institutes of Management to students.

119. Special provision for retrospective exemption from service tax in certain cases relating to long term lease of plots for development of infrastructure for financial business.

CHAPTER V
SABKA VISHWAS LEGACY DISPUTE RESOLUTION SCHEME, 2019

120. Short title and commencement.

121. Definitions.

122. Application of Scheme to indirect tax enactments.

123. Tax dues.

124. Relief available under Scheme.

125. Declaration under Scheme.

126. Verification of declaration by designated committee.

127. Issue of statement by designated committee.

128. Rectification of errors.

129. Issue of discharge certificate to be conclusive of matter and time period.

130. Restriction of Scheme.

131. Removal of doubts.

132. Power to make rules.

133. Power to issue orders, instructions, etc.

134. Removal of difficulties.

135. Protection to officers.

CHAPTER VI
MISCELLANEOUS

PART I
AMENDMENT TO THE RESERVE BANK OF INDIA ACT, 1934

136. Commencement of this Part.

137. Amendment of section 45-IA.

138. Insertion of new sections 45-ID and 45-IE.

139. Insertion of new section 45MAA.

140. Insertion of new section 45MBA.

141. Insertion of new section 45NAA.

142. Amendment of section 58B.

143. Amendment of section 58G.

PART II
AMENDMENT TO THE INSURANCE ACT, 1938

144. Amendment of Act 4 of 1938.

PART III
AMENDMENT TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956

145. Commencement of this Part.

146. Amendment of Act 42 of 1956.

PART IV
AMENDMENT TO THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF
UNDERTAKINGS) ACT, 1970

147. Commencement of this Part.

148. Amendment of Act 5 of 1970.

PART V
AMENDMENT TO THE GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT, 1972

149. Amendment of Act 57 of 1972.

PART VI
AMENDMENT TO THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1980

150. Commencement of this Part.

151. Amendment of Act 40 of 1980.

PART VII
AMENDMENTS TO THE NATIONAL HOUSING BANK ACT, 1987

152. Commencement of this Part.

153. Substitution of heading of Chapter V.

154. Amendment of section 29A.

155. Amendment of section 29B.

156. Amendment of section 29C.

157. Substitution of section 30.

158. Substitution of section 30A.

159. Substitution of section 31.

160. Substitution of section 32.

161. Amendment of section 33.

162. Substitution of section 33A.

163. Amendment of section 33B.

164. Amendment of section 34.

165. Amendment of section 35.

166. Amendment of section 35A.

167. Substitution of section 35B.

168. Amendment of section 44.

169. Amendment of section 46.

170. Amendment of section 49.

171. Amendment of section 51.

172. Substitution of section 52A.

PART VIII
AMENDMENTS TO THE PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988

173. Amendment of section 23.

174. Amendment of section 24.

175. Amendment of section 26.

176. Amendment of section 30.

177. Amendment of section 46.

178. Amendment of section 47.

179. Insertion of new sections 54A and 54B.

180. Amendment of section 55.

PART IX
AMENDMENTS TO THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

181. Commencement of this Part.

182. Amendment of section 14.

183. Amendment of section 15C.

184. Amendment of section 15F.

185. Insertion of new section 15HAA.

PART X
AMENDMENTS TO THE CENTRAL ROAD AND INFRASTRUCTURE FUND ACT, 2000

186. Amendment of section 10.

187. Amendment of section 11.

188. Amendment of section 12.

PART XI
AMENDMENT TO THE FINANCE ACT, 2002

189. Amendment of Act 20 of 2002.

PART XII
AMENDMENT TO THE UNIT TRUST OF INDIA (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 2002

190. Amendment of Act 58 of 2002.

PART XIII
AMENDMENTS TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

191. Commencement of this Part.

192. Amendment of section 2.

193. Amendment of section 3.

194. Amendment of section 12A.

195. Insertion of new section 12AA.

196. Amendment of section 15.

197. Amendment of section 17.

198. Amendment of section 18.

199. Amendment of section 44.

200. Amendment of section 45.

201. Insertion of new section 72A.

202. Amendment of section 73.

PART XIV
AMENDMENT TO THE FINANCE (NO.2) ACT, 2004

203. Amendment of Act 23 of 2004.

PART XV
AMENDMENT TO THE PAYMENT AND SETTLEMENT SYSTEMS ACT, 2007

204. Amendment of Act 51 of 2007.

PART XVI
AMENDMENTS TO THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015

205. Amendment of section 2.

206. Amendment of section 10.

207. Amendment of section 17.

208. Amendment of section 84.

PART XVII
AMENDMENTS TO THE FINANCE ACT, 2016

209. Amendment of section 187.

210. Amendment of section 191.

PART XVIII
AMENDMENT TO THE FINANCE ACT, 2018

211. Amendment of Act 13 of 2018.

212. Repeal.

THE FIRST SCHEDULE.

THE SECOND SCHEDULE.

THE THIRD SCHEDULE.

THE FOURTH SCHEDULE.

THE FIFTH SCHEDULE.

Bill No. 55-C of 2019

THE FINANCE (NO. 2) BILL, 2019

A

BILL

to give effect to the financial proposals of the Central Government for the financial year 2019-2020.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

CHAPTER I
PRELIMINARY

1. Short title and commencement.

(1) This Act may be called the Finance (No. 2) Act, 2019.

(2) Save as otherwise provided in this Act,—

(a) sections 2 to 69 shall be deemed to have come into force on the 1st day of April, 2019;

(b) sections 92 to 112 and section 114 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

CHAPTER II
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, 2019, 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 the 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 fifty thousand 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 fifty thousand 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 fifty thousand 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 fifty thousand rupees”, the words “three lakh 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 fifty thousand 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 Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act, 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 or section 112A of the Income-tax Act shall be increased by a surcharge, for the purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule:

Provided further 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, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for the 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,—

(i) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax; and

(ii) having a total income exceeding one crore rupees, at the rate of fifteen per cent. of such income-tax;

(b) in the case of every co-operative society or firm or local authority, at the rate of twelve per cent. of such income-tax, where the total income exceeds one crore rupees;

(c) in the case of every domestic company,—

(i) at the rate of seven per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of twelve per cent. of such income-tax, where the total income exceeds ten crore rupees;

(d) in the case of every company, other than a domestic company,—

(i) at the rate of two per cent. of such income-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 income-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,—

(i) fifty lakh rupees but does not exceed one crore rupees, the total amount payable as income-tax and surcharge thereon shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(ii) one crore rupees, the total amount payable as income-tax and surcharge thereon shall not exceed the total amount payable as income tax and surcharge 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 persons mentioned in (b) 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 income-tax on such income and surcharge thereon 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:

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 income-tax on such income and surcharge thereon, 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:

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 income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees:

Provided also that in respect of any income chargeable to tax under clause (i) of sub-section (1) of section 115BBE of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for the purposes of the Union, calculated at the rate of twenty-five per cent. of such income-tax.

(4) In cases in which tax has to be charged and paid under sub-section (2A) of section 92CE or section 115-O or section 115QA or sub-section (2) of section 115R or section 115TA or section 115TD 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 the purposes of the Union, calculated at the rate of twelve per cent. of such tax.

(5) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D, 194LBA, 194LBB, 194LBC 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 the 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 192A, 194C, 194DA, 194E, 194EE, 194F, 194G, 194H, 194-I, 194-IA, 194-IB, 194-IC, 194J, 194LA, 194LB, 194LBA, 194LBB, 194LBC, 194LC, 194LD, 194M, 194N, 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,—

(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 but does not exceed two crore rupees;

(iii) at the rate of twenty-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 two crore rupees but does not exceed five crore rupees;

(iv) at the rate of thirty-seven 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 five crore rupees;

(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve 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;

Download Full Text of Finance (No. 2) Bill, 2019 as passed by Lok Sabha