List of Amendments in Finance Bill as passed by Lok Sabha

(a) after the words “Chief Commissioner of Income-tax”. the words “or a Director General of Income-tax” shall be inserted;

(b) after the words “Principal Chief Commissioner of Income-tax”, the words “or a Principal Director General of Income-tax” shall be inserted’.’

“days or less; or

(c) a citizen of India, or a person of Indian origin, having total income, other than the income from foreign sources, exceeding fifteen lakh rupees during the previous year, as referred to in clause (b) of Explanation 1 to clause (1), who has been in India for a period or periods amounting in all to one hundred and twenty days or more but less than one hundred and eighty-two days; or

(d) a citizen of India who is deemed to be resident in India under clause (1A).

Explanation.-For the purposes of this section, the expression “income from foreign sources” means income which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India).”.

“Explanation.-For the removal of doubts, it is hereby clarified that for the purposes of this proviso, the income of the fund or trust or institution or any university or other educational institution or any hospital or other medical institution, shall not include income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of such fund or trust or institution or any university or other educational institution or any hospital or other medical institution:”;

(C) for the eighth and ninth provisos, the following provisos shall be substituted with effect from the 1st day of June, 2020, namely-’.

(F) with effect from the 1st day of June, 2020, -’.

“(i) is made on or after the 1st day of April, 2020 but on or before the 31st day of March, 2024;”.

(a) a business trust referred to in sub-clause (i) of clause (13A) of section 2; or

(b) a company or enterprise or an entity carrying on the business of developing, or operating and maintaining, or developing, operating and maintaining any infrastructure facility as defined in the Explanation to clause (i) of sub-section (4) of section 80-IA or such other business as the Central Government may, by notification in the Official Gazette, specify in this behalf; or

(c) a Category I or Category-II Alternative Investment Fund regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992, (15 of 1992) having hundred per cent investment in one or more of the company or enterprise or entity referred to in item (b):

Provided that if any difficulty arises regarding interpretation or implementation of the provisions of this clause, the Board may, with the approval of the Central Government. issue guidelines for the purpose of removing the difficulty:

Provided further that every guideline issued under the first proviso, shall be laid before each House of Parliament and shall be binding on the income-tax authority and the specified person:

Provided also that where any income has not been included in the total income of the specified person due to the provisions of this clause, and subsequently during any previous year the specified person fails to satisfy any of the conditions of this clause so that the said income would not have been eligible for such non-inclusion. such income shall be chargeable to income-tax as the income of the specified person of that previous year.”.

(i) is created or established under the law of a foreign country Including the laws made by any of Its political constituents bong a province. state or local body, by whatever name called;

(ii) is not liable to tax in such foreign country;

(iii) satisfies such other conditions as may be prescribed; and

(iv) is specified by the Central Government, by notification in the Official Gazette, for this purpose;”

(I) in sub-section (1), in Explanation 2, for the words, figures and letters “to any other trust or institution registered under section 12AA, being contribution with a specific direction that they shall form part of die corpus of the trust or institution”, the words, brackets, figures and letters “to any fund or mast or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (23C) of section 10 or other trust or institution registered under section 12AA, being contribution with a specific direction that it shall form part of the corpus” shall be substituted;

(II) in sub-section (7), with effect from the 1st day of June, 2020-’.

(I) for sub-section (1), the following sub-section shall be substituted, namely:-”.

(i) the words, figures and letter “other than dividends referred to in section 115-O” at both the places where they occur, shall be omitted;

(ii) in the long line, for clause (BA), the following clause shall be substituted, namely:-

“(BA) the amount of income-tax calculated on the amount of income by way of interest referred to in,-

(i) sub-clause (iia), if any, included in the total income, at the rate of five per cent.;

(ii) sub-clause (iiaa) or sub-clause (iiab) or sub-clause (iiac), if any, included in the total income, at the rate provided in the respective sections referred to in the said sub-clauses;”,’-

(ii) having income other than the income referred to in clause (i), alongwith the return of income to be furnished under sub-section (1) of section 139 for a previous year relevant to the assessment year”

“Provided that no notification under this sub-clause shall be issued on or after the 1st day of April, 2020.”.’.

‘(III) after sub-section (4), the following sub-section shall be inserted namely:-

“(5) The Central Government may, by notification in the Official Gazette, provide that the deduction of tax shall not be made or shall be made at such lower rate, from such payment to such person or class of persons, as may be specified in the said notification.”.’.

(i) where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year by the person responsible for making the payment to the account of, or to, the  payee does not exceed five thousand rupees; or

(ii) if the income is of the nature of capital gains.”.

“(2A) Nothing contained in sub-sections (1) and (2) shall apply in respect of income of the nature referred to in sub-clause (b) of clause (23FC) of section, 10, if the special purpose vehicle referred to in the said clause has not exercised the option under section 15BAA.”.’.

(i) a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act);

(ii) a co-operative society engaged’ in carrying on the business of banking; or

(iii) a post office,

who is responsible for paying any sum, being the amount or the aggregate of amounts, as the case may be, in cash exceeding one crore rupees during the previous year, to any person (herein referred to as the recipient) from one or more accounts maintained by the recipient with it shall, at the time of payment of such sum, deduct an amount equal to two per cent. of such sum, as income-tax:

Provided that in case of a recipient who has not filed the returns of income for all of the three assessment years relevant to the three previous years, for which the time limit tb file return of income under sub-section (1) of section 139 has expired, immediately preceding the previous year in which the payment of the sum is made to him, the provision of this section shall apply with the modification that-

(i) the sum shall be the amount or the aggregate of amounts, as the case may be, in cash exceeding twenty lakh rupees during the previous year, and

(ii) the deduction shall be-

(a) an amount equal to two per cent. of the sum where the amount or aggregate of amounts, as the case may be, being paid in cash exceeds twenty lakh rupees during the previous year but does not exceed one crore rupees; or

(b) an amount equal to five per cent of the sum where the amount or aggregate of amounts, as the case may be, being paid in cash exceeds one crore rupees during the previous year:

Provided further that the Central Government may specify in consultation with the Reserve Bank of India, by notification in the Official Gazette, the recipient in whose case the first proviso shall not apply or apply at reduced rate, if such recipient satisfies the conditions specified in such notification:

Provided also that nothing contained in this section shall apply to any payment made to-

(i) the Government;

(ii) any banking company or co-operative society engaged in carrying on the business of banking or a post office;

(iii) any business correspondent of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the guidelines issued in this regard by the Reserve Bank of India under the Reserve Bank of India Act, 1934; (2 of 1934.)

(iv) any white label automated teller machine operator of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007: (51 of 2007)

Provided also that the Central Government may specify in consultation with the Reserve Bank of by notification in the Official Gazette, recipient in whose ease the provision of this section shall not apply or apply at reduced rate, if such recipient satisfies die conditions specified in such notification.

(5) Every guideline issued by the Board under sub-section (4) shall be laid before each House oi Parliament, and shall be binding on the income-tax authorities and on the e-commerce operator.

(6) For the purposes of this section, e-commerce operator shall be deemed to be the person responsible for paying to e-commerce participant.”.

“(IF) Notwithstanding anything contained in this Chapter, no deduction of tax shall be made, or deduction of tax shall be made at such lower rate, from such payment to such person or class of persons, including institution, association or body or class of institutions associations or bodies, as may be notified by the Central Government in the Official Gazette, in this behalf.”.’.

Provided further that the sum to be collected by an authorised dealer from the buyer shall be equal to five per cent. of the amount or aggregate of the amounts in excess of seven lakh rupees remitted by the buyer in a financial year, where the amount being remitted is for a purpose other than purchase of overseas tour program package:

Provided also that the authorised dealer shall collect a sum equal to one half per cent. of the amount or aggregate of the amounts in excess of seven lakh rupees remitted by the buyer in a financial year, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education:

Provided also that the authorised dealer shall not collect the sum on an amount in respect of which the sum has been collected by the seller:

Provided also that”

(IJ) Every guideline issued by the Board under sub-section (I-I) shall be laid before each House of Parliament, and shall be binding on the income-tax authorities and on the person liable to collect the sum.”.

AMENDMENT TO THE FINANCE ACT, 2002

(a) against Item No. 1, for the entry in column (3), the entry “₹ 18 per litre” shall be substituted;

(b) against Item No. 2, for the entry in column (3), the entry “₹ 12 per litre” shall be substituted.’.

AMENDMENT TO THE FINANCE ACT, 2016

(A) after clause (c), the following clause shall be inserted, namely:-

‘(ea) “e-commerce operator” means a non-resident who owns, operates or manages digital or electronic facility or platform for online sale of goods or online provision of services or both;

(cb) “e-commerce supply or services” means-

(i) online sale of goods owned by the e-commerce operator; or

(ii) online provision of services provided by the e-commerce operator; or

(iii) online sale of goods or provision of services or both, facilitated by the e-commerce operator; or

(iv) any combination of activities listed in clause (i), (ii) or (iii)’;

(B) in clause (d), after the words “specified service”, the words “or e-commerce supply or services” shall be inserted;

“Charge of equalisation levy on specified services”;

(i) to a person resident in India; or

(ii) to a non-resident in the specified circumstances as referred to in sub-section (3); or

(iii) to a person who buys such goods or services or both using internet protocol address located in India

(i) where the e-commerce operator making or providing or facilitating e-commerce supply or services has a permanent establishment in India and Such e-commerce supply or services is effectively connected with such permanent establishment;

(ii) where the equalisation levy is leviable under section 165; or

(iii) sales, turnover or gross receipts, as the case may be, of the e-commerce operator from the e-commerce supply or made or provided or facilitated as referred to in sub-section (1) is less than two crore rupees during the previous year.

(3) For the purposes of this section, “specified circumstances” mean-

(i) sale of which targets a customer, who is resident in India or a customer who accesses the advertisement though internet protocol address located in India; and

(ii) sale of data, collected from a person Who is resident in India or from a person who uses internet protocol address located in India.’ ;

“Collection and recovery of equalisation levy on specified services.”;

(A) in sub-section (1),-

(a) for the word “assessee”, the words “assessee or e-commerce operator” shall be substituted;

(b) for the words “specified services”, the words “specified services or e-commerce supply or services, as the case may be,” shall be substituted;

(B) in sub-section (2),-

(a) for the word “assessee”, the words “assessee or e-commerce operator” shall be substituted;

(b) for the words “specified services was provided”, the words “specified services was provided or e-commerce supply or services was made or provided or facilitated” shall be substituted;

(C) in sub-section (3), for the words “assessee” at both the places where it occurs, the words “assessee or e-commerce operator” shall be substituted;

(i) in sub-section (1),-

(A) for the word “assessee” wherever it occurs, the words “assessee or e-commerce operator” shall be substituted;

(B) in clause (b), for the words “sum deductible”, the words “sum deductible or payable, as the case may be,” shall be substituted;

(C) in clause (c), for the word and figures “section 166”, the words, figures and letter “section 166 or section 166A” shall be substituted;

(D) in the proviso, for the word “statement”, the words “statement or revised statement” shall be substituted;

(ii) in sub-section for the word “assessee”, the words “assessee or e-commerce operator” shall be substituted.

(i) in sub-section (2), for the word “assessee”, the words “assessee or e-commerce operator” shall be substituted;

(ii) in sub-section (3), for the word “assessee” wherever it occurs, the words “assessee or e-commerce operator” shall substituted;

(iii) in sub-section (4), for the word “assessee”, the words “assessee or e-commerce operator” shall be substituted;

(A) the word “assessee”, the words “assessee or e-commerce operator” shall be substituted,

(B) for the word and figures “section 166”, the words, figures and letter “section 166 or section 166A” be substituted;

(i) for the word “assessee”, the words “assessee or e-commerce operator” shall be substituted;

(ii) after clause (a), the following clause shall be inserted, namely:-

“(aa) fails to pay the whole or any part of the equalisation levy as required under section 166A; or”;

(iii) in clause (b),-

(i) for the words “equalization levy”, the words, brackets and figures “equalisation levy referred to in sub-section (1) of section 165” shall be substituted, namely:-

“deduct;

(ia) in the case referred to in clause (aa), in addition to the levy in accordance with the provisions of that section, or interest, if any, in accordance with the provisions of section 170, a penalty equal to the amount of equalization levy that be falied to pay; and”;

(i) in sub-section (1) for the word “assegsee”, the words “assessee e-commerce operator” shall be substituted:

(ii) in sub-section (2), for the word “assessee”, the words “assessee or e-commerce operator” shall be substituted;

(i) in sub-section (1), for the word “assessee”, the words “assessee or e-commerce operator” shall be substituted;

(ii) in for the word “assessee”, the words “assessee or e-commerce operator” shall be substituted;

AMENDMENT TO THE FINANCE ACT, 2018