CA Final DT Amendments For Nov 2017

CA Final DT Amendments For Nov 2017, Download CA Final Direct Tax Amendment Applicable For Nov 2017, Chapter Wise Amendment of Income Tax


1. Rates of income-tax

2. Government grant or subsidy, for the purpose of the corpus of a trust or institution established by the Central Government or State Government not to be included in the definition of income” 2(24)

3. Set-off of losses not permissible against unexplained income, investments, money etc. chargeable under sections 68/69/69A/69B/69C/69D 115BBE

4. Increase in quantum of rebate 87A

5. No income deemed to accrue or arise in India to a foreign mining company through or from the activities which are confined to display of uncut and unassorted diamonds in a Special Notified Zone 9(1)(i) [Explanation 1]

6. Deferral of applicability of POEM based residence test and ncorporation of transition mechanism for a company incorporated outside India, which has not earlier been assessed to tax in India 6(3) & 115JH

7. Special Taxation Regime for offshore funds: Modification of certain conditions 9A

8. Exemption under section 10(34) not to apply to dividend chargeable to tax in accordance with section 115BBDA 10(34) & 115BBDA

9. Exemption of income accruing or arising to a foreign company on account of storage of crude oil in a facility in India and sale of crude oil therefrom to any person resident in India 10(48A)

10. Exemption of interest on deposit certificates issued under the Gold Monetization Scheme, 2015 10(15)(vi) & 2(14)

11. Payment from NPS Trust to an employee on closure of his account or on his opting out of the pension scheme exempt to the extent of 40% of such payment 10(12A)

D. Income from house property

12. Extension of period for completion of construction from 3 years to 5 years, for claiming higher deduction of upto Rs.2 lakh in respect of interest on capital borrowed for construction of self-occupied house property 24

13. Special provision for arrears of rent and unrealized rent received subsequently 25A

E. Profits and gains of business or profession

14. Non-compete fee received/receivable for not carrying on a profession chargeable under the head “Profits and gains of business or profession” 28(va) & 55

15. Assessees engaged in the business of transmission of power eligible for additional depreciation 32(1)(iia)

16. Deduction under section 32AC to be available in the year of installation in respect of actual cost of new plant and
machinery acquired in the P.Y.2015-16 and P.Y.2016-17, if the actual cost of such new plant and machinery acquired
in the relevant previous year exceeds Rs. 25 crores, even if the new plant and machinery has not been installed in
the relevant previous year but has been installed on or before 31.3.2017 32AC

17. Phasing out of incentives under the Income-tax Act, 1961 35/35AC/35AD/35CCC/35CCD

18. Tax treatment for spectrum fee 35ABA

19. Scope of section 35AD expanded to include the business of developing, maintaining and operating a new infrastructure facility 35AD & 80-IA

20. NBFCs eligible for claim of deduction for provision for bad and doubtful debts 36(1)(viia)

21. Sum payable to Indian Railways for use of railway assets allowable as deduction in the year in which the liability to pay such sum is incurred, only if payment is made on or before the due date of filing of return 43B

22. Increase in threshold limit of gross receipts/turnover under section 44AD of a business to be eligible for opting the presumptive taxation scheme 44AA, 44AB & 211

23. Presumptive Taxation Scheme for assessees engaged in eligible profession 44ADA & 44AB

F. Capital Gains

24. Period of holding of unlisted shares to qualify as a longterm capital asset to be reduced from “more than 36
months” to “more than 24 months” 2(42A)

25. Total value of assets of a private company or unlisted company not to exceed Rs.5 crore in any of the three
preceding previous years for exemption of transfer of capital asset or intangible asset on conversion of such
company into LLP 47(xiiib)

26. Transfer of units by unit holders on consolidation of plans within a mutual fund scheme not to be regarded as transfer 47(xix)

27. Redemption by an individual of sovereign gold bonds issued by RBI not to constitute transfer for the purpose of
levy of capital gains tax 47(viic) & 48

28. Cost of acquisition of asset, whose fair market value has been taken into account for the Income Declaration
Scheme, 2016 49(5)

29. Stamp duty value on the date of agreement may be adopted as full value of consideration of immovable property, being land or building or both, if whole or part of the consideration has been paid by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account, on or before the date of the
agreement for the transfer of such immovable property 50C

30. Exemption of long-term capital gains on investment in notified units of specified fund 54EE

31. Exemption of long-term capital gains on sale of residential property, where net consideration on sale is invested in shares of an eligible start-up 54GB

32. Long-term capital gains on shares of private companies to be subject to concessional rate of tax@10% in the hands of non-corporate non-residents and foreign companies 112(1)(c)

G. Income from Other Sources

33. Shares received by an individual or HUF as a consequence of demerger or amalgamation of a company or a business reorganisation of a co-operative bank not to be subject to tax by virtue of section 56(2)(vii) 56(2)(vii)

H. Set-off and Carry Forward and Set-off of losses

34. Filing of return of loss on or before the due date under section 139(1) mandatory for carry forward of loss from
specified business under section 73A 80 & 139(3)

I. Deductions from Gross Total Income

35. Additional deduction for interest on loan borrowed for acquisition of self-occupied house property by an individual 80EE

36. Monetary limit for deduction under section 80GG increased 80GG

37. Tax incentives for new start-ups 80-IAC

38. Deductions in respect of profits and gains from housing projects 80-IBA

39. Phasing out of profit-linked incentives 80-IA, 80-IAB, 80-IB, 35AD

40. Deduction in respect of employment of new employees 80JJAA

J. Assessment of various entities

41. Concessional Taxation Regime for royalty income in respect of patent developed and registered in India
115BBF & 115JB

42. Non-applicability of MAT in respect of certain foreign companies 115JB

43. Tax incentives to International Financial Services Centres 10(38), 111A, 115JB & 115-O

44. Dividend distributed by SPV to business trust exempt from levy of DDT 115-O, 10(23FC), 10(23FD), 115UA & 194LBA

45. Rationalisation of the definitions of “buyback” and “distributed income” for the purpose of levy of additional
income-tax on income distributed by a company on buyback of unlisted shares from a shareholder 115QA

46. New Taxation Regime for Securitisation Trusts 115TCA, 115TA, 115TC & 10(35A)

47. Tax on accreted income of certain trusts and institutions 115TD

K. Transfer Pricing and Other Provisions to check avoidance of tax

48. Extension of time limit available to TPO for making an order 92CA(3A)

49. Furnishing of report in respect of international group in line with BEPS action plan – Country-By-Country Report and Master file 286, 92D, 271AA, 271GB & 273B

L. Taxation of E-Commerce Transactions

50. Equalisation levy Chapter VIII of Finance Act, 2016, 10(50), 40(a)(ib)

M. Income-tax Authorities

51. Time limit for calling in question jurisdiction of Assessing Officer where notice is served under section 153A(1) or
153C(2) 124(3)

N. Assessment Procedure

52. Rationalisation of provisions relating to filing of return of income 139

53. Scope of permissible adjustments while processing a return expanded 143(1)(a)

54. Mandatory processing of return of income before issuance of assessment order 143(1D)

55. Time limits for completion of assessment, reassessment and recomputation revised 153

56. Time limit for completion of assessment under section 153A 153B

57. Deemed escapement of income on the basis information obtained by the Income-tax authorities 147 & 133C

O. Appeals and Revision

58. Removal of reference to “Senior Vice President” 252

59. Provision for filing of appeal by the Assessing Officer against the order of DRP done away with 253

60. Reduction in time limit for rectification of mistake apparent from the record by the Appellate Tribunal 254(2)

61. Raising the total income limit of the cases that may be decided by single member bench of Appellate Tribunal 255(3)

P. Penalties

62. Penalty leviable for under-reporting of income and misreporting of income 270A, 119, 253, 271, 271A, 271AA, 271AAB, 273A & 279

63. Immunity from imposition of penalty and prosecution 270AA & 249

64. Time limit for passing an order for waiver of interest and penalty 220(2A), 273A & 273AA

65. Levy of penalty at a flat rate of 60% on undisclosed income, in search cases where assessee does not admit
such income in the course of search nor discloses the same in the return of income for the specified previous year
filed on or before the specified date 271AAB(1)(c)

66. Penalty for failure to comply with notice under section 142(1) or 143(2) of failure to comply with a direction u/s 142(2A) 272A & 288

Q. Miscellaneous Provisions

67. Provision for bank guarantee in lieu of provisional attachment of property for protecting interests of the
revenue 281B

68. Provision of legal framework for automated processing and paperless assessment 282A, 143(2) & 2(23C)

R. Deduction, Collection & Recovery of Tax

69. Deduction of tax at source under section 194LBB at ‘rates in force’ on income distributed by an Investment Fund to its non-resident unit-holders and enabling provision for obtaining certificate of nil deduction or lower deduction of tax at source under section 197, 194LBB, 2(37) & 197

70. Increase in threshold limits and reduction of rates for deduction of tax at source in respect of certain payments
[Chapter XVII-B] 192A, 194BB, 194C, 194D, 194DA, 194EE, 194G, 194H, 194LA

71. Advance tax payment scheme to be the same for companies and other assessees 211 & 234C

72. Interest on refunds 244A

73. Expansion of scope of TCS 206C

74. Requirement to furnish PAN for avoiding higher tax deduction not to apply to non-corporate non-residents and
foreign companies subject to certain conditions 206AA

Note – In addition, significant notifications and circulars issued between the period 1.5.2015 and 30.4.2016 have been included under the respective chapters.

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