(Section 1 to 2)|(Section 3 to 30)|(Section 31 to 60)|(Section 61 to 90)|(Section 91 to 150)|(Section 151 to 170)|(Section 171 to 189)
Amendment of section 71.
31. In section 71 of the Income-tax Act, after sub-section (3), the following sub-section shall be inserted with effect from the 1st day of April, 2018, namely:—
‘(3A) Notwithstanding anything contained in sub-section (1) or sub-section (2), where in respect of any assessment year, the net result of the computation under the head “Income from house property” is a loss and the assessee has income assessable under any other head of income, the assessee shall not be entitled to set off such loss, to the extent the amount of the loss exceeds two lakh rupees, against income under the other head.’.
Substitution of new section for section 79.
32 . For section 79 of the Income-tax Act, the following section shall be substituted with effect from the 1st day of April, 2018, namely:—
“79. Carry forward and set off of losses in case of certain companies.—Notwithstanding anything contained in this Chapter, where a change in shareholding has taken place in a previous year,—
(a)in the case of a company not being a company in which the public are substantially interested and other than a company referred to in clause (b), no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year, unless on the last day of the previous year, the shares of the company carrying not less than fifty-one per cent of the voting power were beneficially held by persons who beneficially held shares of the company carrying not less than fifty-one per cent of the voting power on the last day of the year or years in which the loss was incurred;
(b)in the case of a company, not being a company in which the public are substantially interested but being an eligible start-up as referred to in section 80-IAC, the loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year, if, all the shareholders of such company who held shares carrying voting power on the last day of the year or years in which the loss was incurred,—
(i)continue to hold those shares on the last day of such previous year; and
(ii)such loss has been incurred during the period of seven years beginning from the year in which such company is incorporated:
Provided that nothing contained in this section shall apply to a case where a change in the said voting power and shareholding takes place in a previous year consequent upon the death of a shareholder or on account of transfer of shares by way of gift to any relative of the shareholder making such gift:
Provided further that nothing contained in this section shall apply to any change in the shareholding of an Indian company which is a subsidiary of a foreign company as a result of amalgamation or demerger of a foreign company subject to the condition that fifty-one per cent shareholders of the amalgamating or demerged foreign company continue to be the shareholders of the amalgamated or the resulting foreign company.”.
Amendment of section 80CCD.
33. In section 80CCD of the Income-tax Act, in sub-section (1), in clause (b), for the words “ten per cent”, the words “twenty per cent” shall be substituted with effect from the 1st day of April, 2018.
Amendment of section 80CCG.
34. In section 80CCG of the Income-tax Act, after sub-section (4), the following sub-section shall be inserted with effect from the 1st day of April, 2018, namely:—
“(5) Notwithstanding anything contained in sub-sections (1) to (4), no deduction under this section shall be allowed in respect of any assessment year commencing on or after the 1st day of April, 2018:
Provided that an assessee, who has acquired listed equity shares or listed units of an equity oriented fund in accordance with the scheme referred to in sub-section (1) and claimed deduction under this section for any assessment year commencing on or before the 1st day of April, 2017, shall be allowed deduction under this section till the assessment year commencing on the 1st day of April, 2019, if he is otherwise eligible to claim the deduction in accordance with the other provisions of this section.”.
Amendment of section 80G.
35. In section 80G of the Income-tax Act, in sub-section (5D), for the words “ten thousand rupees”, the words “two thousand rupees” shall be substituted with effect from the 1st day of April, 2018.
Amendment of section 80-IAC.
36. In section 80-IAC of the Income-tax Act [as inserted by section 42 of the Finance Act, 2016 (28 of 2016)], in sub-section (2), for the words “five years”, the words “seven years” shall be substituted with effect from the 1st day of April, 2018.
Amendment of section 80-IBA.
37. In section 80-IBA of the Income-tax Act [as inserted by section 44 of the Finance Act, 2016 (28 of 2016)], with effect from the 1st day of April, 2018,—
(a)in sub-section (2),—
(i)in clause (b), for the words “three years”, the words “five years” shall be substituted;
(ii)in clauses (c) and (f), for the expression “built-up area” wherever they occur, the words “carpet area” shall be substituted;
(iii)the words “or within the distance, measured aerially, of twenty-five kilometres from the municipal limits of these cities” wherever they occur shall be omitted;
(b)in sub-section (6), for clause (a), the following clause shall be substituted, namely:—
‘(a)”carpet area” shall have the same meaning as assigned to it in clause (k) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016).’.
Amendment of section 87A.
38. In section 87A of the Income-tax Act, with effect from the 1st day of April, 2018,—
(a)for the words “five hundred thousand rupees”, the words “three hundred fifty thousand rupees” shall be substituted;
(b)for the words “five thousand rupees” [as substituted by section 46 of the Finance Act, 2016 (28 of 2016)], the words “two thousand five hundred rupees” shall be substituted.
Amendment of section 90.
39. In section 90 of the Income-tax Act, after Explanation 3, the following Explanation shall be inserted with effect from the 1st day of April, 2018, namely:—
“Explanation 4.—For the removal of doubts, it is hereby declared that where any term used in an agreement entered into under sub-section (1) is defined under the said agreement, the said term shall have the same meaning as assigned to it in the agreement; and where the term is not defined in the said agreement, but defined in the Act, it shall have the same meaning as assigned to it in the Act and explanation, if any, given to it by the Central Government.”.
Amendment of section 90A.
40. In section 90A of the Income-tax Act, after Explanation 3, the following Explanation shall be inserted with effect from the 1st day of April, 2018, namely:—
“Explanation 4.—For the removal of doubts, it is hereby declared that where any term used in an agreement entered into under sub-section (1) is defined under the said agreement, the said term shall have the same meaning as assigned to it in the agreement; and where the term is not defined in the said agreement, but defined in the Act, it shall have the same meaning as assigned to it in the Act and explanation, if any, given to it by the Central Government.”.
Amendment of section 92BA.
41. In section 92BA of the Income-tax Act, clause (i) shall be omitted.
Insertion of new section 92CE.
42. After section 92CD of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2018, namely:—
’92CE. Secondary adjustment in certain cases.—(1) Where a primary adjustment to transfer price,—
(i)has been made suo motu by the assessee in his return of income;
(ii)made by the Assessing Officer has been accepted by the assessee;
(iii)is determined by an advance pricing agreement entered into by the assessee under section 92CC;
(iv)is made as per the safe harbour rules framed under section 92CB; or
(v)is arising as a result of resolution of an assessment by way of the mutual agreement procedure under an agreement entered into under section 90 or section 90A for avoidance of double taxation,
the assessee shall make a secondary adjustment:
Provided that nothing contained in this section shall apply, if,—
(i)the amount of primary adjustment made in any previous year does not exceed one crore rupees; and
(ii)the primary adjustment is made in respect of an assessment year commencing on or before the 1st day of April, 2016.
(2) Where, as a result of primary adjustment to the transfer price, there is an increase in the total income or reduction in the loss, as the case may be, of the assessee, the excess money which is available with its associated enterprise, if not repatriated to India within the time as may be prescribed, shall be deemed to be an advance made by the assessee to such associated enterprise and the interest on such advance, shall be computed in such manner as may be prescribed.
(3) For the purposes of this section,—
(i)”associated enterprise” shall have the meaning assigned to it in sub-section (1) and sub-section (2) of section 92A;
(ii)”arm’s length price” shall have the meaning assigned to it in clause (ii) of section 92F;
(iii)”excess money” means the difference between the arm’s length price determined in primary adjustment and the price at which the international transaction has actually been undertaken;
(iv)”primary adjustment” to a transfer price means the determination of transfer price in accordance with the arm’s length principle resulting in an increase in the total income or reduction in the loss, as the case may be, of the assessee;
(v)”secondary adjustment” means an adjustment in the books of account of the assessee and its associated enterprise to reflect that the actual allocation of profits between the assessee and its associated enterprise are consistent with the transfer price determined as a result of primary adjustment, thereby removing the imbalance between cash account and actual profit of the assessee.’.
Insertion of new section 94B.
43. After section 94A of the Income-tax Act, the following section shall be inserted with effect from the 1st day of April, 2018, namely:—
’94B. Limitation on interest deduction in certain cases.—(1) Notwithstanding anything contained in this Act, where an Indian company, or a permanent establishment of a foreign company in India, being the borrower, incurs any expenditure by way of interest or of similar nature exceeding one crore rupees which is deductible in computing income chargeable under the head “Profits and gains of business or profession” in respect of any debt issued by a non-resident, being an associated enterprise of such borrower, the interest shall not be deductible in computation of income under the said head to the extent that it arises from excess interest, as specified in sub-section (2):
Provided that where the debt is issued by a lender which is not associated but an associated enterprise either provides an implicit or explicit guarantee to such lender or deposits a corresponding and matching amount of funds with the lender, such debt shall be deemed to have been issued by an associated enterprise.
(2) For the purposes of sub-section (1), the excess interest shall mean an amount of total interest paid or payable in excess of thirty per cent of earnings before interest, taxes, depreciation and amortisation of the borrower in the previous year or interest paid or payable to associated enterprises for that previous year, whichever is less.
(3) Nothing contained in sub-section (1) shall apply to an Indian company or a permanent establishment of a foreign company which is engaged in the business of banking or insurance.
(4) Where for any assessment year, the interest expenditure is not wholly deducted against income under the head “Profits and gains of business or profession”, so much of the interest expenditure as has not been so deducted, shall be carried forward to the following assessment year or assessment years, and it shall be allowed as a deduction against the profits and gains, if any, of any business or profession carried on by it and assessable for that assessment year to the extent of maximum allowable interest expenditure in accordance with sub-section (2):
Provided that no interest expenditure shall be carried forward under this sub-section for more than eight assessment years immediately succeeding the assessment year for which the excess interest expenditure was first computed.
(5) For the purposes of this section, the expressions—
(i)”associated enterprise” shall have the meaning assigned to it in sub-section (1) and sub-section (2) of section 92A;
(ii)”debt” means any loan, financial instrument, finance lease, financial derivative, or any arrangement that gives rise to interest, discounts or other finance charges that are deductible in the computation of income chargeable under the head “Profits and gains of business or profession”;
(iii)”permanent establishment” includes a fixed place of business through which the business of the enterprise is wholly or partly carried on.’.
Amendment of section 115BBDA.
44. In section 115BBDA of the Income-tax Act [as inserted by section 52 of the Finance Act, 2016 (28 of 2016)], with effect from the 1st day of April, 2018,—
(i)in sub-section (1), for the words “an assessee, being an individual, a Hindu undivided family or a firm”, the words “a specified assessee” shall be substituted;
(ii)for sub-section (3), the following Explanation shall be substituted, namely:—
‘Explanation.—For the purposes of this section,—
(a)”dividend” shall have the meaning assigned to it in clause (22) of section 2 but shall not include sub-clause (e) thereof;
(b)”specified assessee” means a person other than,—
(i)a domestic company; or
(ii)a fund or institution or trust 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
(iii)a trust or institution registered under section 12A or section 12AA.’.
Insertion of new section 115BBG.
45. After section 115BBF of the Income-tax Act [as inserted by section 54 of the Finance Act, 2016 (28 of 2016)], the following section shall be inserted with effect from the 1st day of April, 2018, namely:—
‘115BBG. Tax on income from transfer of carbon credits.—(1) Where the total income of an assessee includes any income by way of transfer of carbon credits, the income-tax payable shall be the aggregate of—
(a)the amount of income-tax calculated on the income by way of transfer of carbon credits, at the rate of ten per cent; and
(b)the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the amount of income referred to in clause (a).
(2) Notwithstanding anything contained in this Act, no deduction in respect of any expenditure or allowance shall be allowed to the assessee under any provision of this Act in computing his income referred to in clause (a) of sub-section (1).
Explanation.—For the purposes of this section “carbon credit” in respect of one unit shall mean reduction of one tonne of carbon dioxide emissions or emissions of its equivalent gases which is validated by the United Nations Framework on Climate Change and which can be traded in market at its prevailing market price.’.
Amendment of section 115JAA.
46. In section 115JAA of the Income-tax Act, with effect from the 1st day of April, 2018,—
(a)in sub-section (2A), after the proviso, the following proviso shall be inserted, namely:—
“Provided further that where the amount of tax credit in respect of any income-tax paid in any country or specified territory outside India, under section 90 or section 90A or section 91, allowed against the tax payable under the provisions of sub-section (1) of section 115JB exceeds the amount of such tax credit admissible against the tax payable by the assessee on its income in accordance with the other provisions of this Act, then, while computing the amount of credit under this sub-section, such excess amount shall be ignored.”;
(b)in sub-section (3A), for the words “tenth assessment year”, the words “fifteenth assessment year” shall be substituted.
Amendment of section 115JB.
47. In section 115JB of the Income-tax Act,—
(i)in sub-section (2),—
(a)for the words “profit and loss account” wherever they occur, the words “statement of profit and loss” shall be substituted;
(b)for the words and figures “the Companies Act, 1956 (1 of 1956)” wherever they occur, the words and figures “the Companies Act, 2013 (18 of 2013)” shall be substituted;
(c)in clause (a), for the words and figures “Part II of Schedule VI”, the word and figures “Schedule III” shall be substituted;
(d)in clause (b), for the words, brackets and figures “proviso to sub-section (2) of section 211”, the words, brackets and figures “second proviso to sub-section (1) of section 129” shall be substituted;
(e)in the first proviso, for the word and figures “section 210”, the word and figures “section 129” shall be substituted;
(ii)after sub-section (2), the following sub-sections shall be inserted, namely:—
‘(2A) For a company whose financial statements are drawn up in compliance to the Indian Accounting Standards specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015, the book profit as computed in accordance with Explanation 1 to sub-section (2) shall be further—
(a)increased by all amounts credited to other comprehensive income in the statement of profit and loss under the head “Items that will not be re-classified to profit or loss”;
(b)decreased by all amounts debited to other comprehensive income in the statement of profit and loss under the head “Items that will not be re-classified to profit or loss”;
(c)increased by amounts or aggregate of the amounts debited to the statement of profit and loss on distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Indian Accounting Standards 10;
(d)decreased by all amounts or aggregate of the amounts credited to the statement of profit and loss on distribution of non-cash assets to shareholders in a demerger in accordance with Appendix A of the Indian Accounting Standards 10:
Provided that nothing contained in clause (a) or clause (b) shall apply to the amount credited or debited to other comprehensive income under the head “Items that will not be re-classified to profit or loss” in respect of—
(i)revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian Accounting Standards 38; or
(ii)gains or losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with the Indian Accounting Standards 109:
Provided further that the book profit of the previous year in which the asset or investment referred to in the first proviso is retired, disposed, realised or otherwise transferred shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the first proviso for the previous year or any of the preceding previous years and relatable to such asset or investment.
(2B) In the case of a resulting company, where the property and the liabilities of the undertaking or undertakings being received by it are recorded at values different from values appearing in the books of account of the demerged company immediately before the demerger, any change in such value shall be ignored for the purpose of computation of book profit of the resulting company under this section.
(2C) For a company referred to in sub-section (2A), the book profit of the year of convergence and each of the following four previous years, shall be further increased or decreased, as the case may be, by one-fifth of the transition amount:
Provided that the book profit of the previous year in which the asset or investment referred to in sub-clauses (B) to (E) of clause (iii) of the Explanation is retired, disposed, realised or otherwise transferred, shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-clause relatable to such asset or investment:
Provided further that the book profit of the previous year in which the foreign operation referred to in sub-clause (F) of clause (iii) of the Explanation is disposed or otherwise transferred, shall be increased or decreased, as the case may be, by the amount or the aggregate of the amounts referred to in the said sub-clause relatable to such foreign operations.
Explanation.—For the purposes of this sub-section, the expression—
(i)”year of convergence” means the previous year within which the convergence date falls;
(ii)”convergence date” means the first day of the first Indian Accounting Standards reporting period as defined in the Indian Accounting Standards 101;
(iii)”transition amount” means the amount or the aggregate of the amounts adjusted in the other equity (excluding capital reserve, and securities premium reserve) on the convergence date but not including the following,—
(A)amount or aggregate of the amounts adjusted in the other comprehensive income on the convergence date which shall be subsequently re-classified to the profit or loss;
(B)revaluation surplus for assets in accordance with the Indian Accounting Standards 16 and Indian Accounting Standards 38 adjusted on the convergence date;
(C)gains or losses from investments in equity instruments designated at fair value through other comprehensive income in accordance with the Indian Accounting Standards 109 adjusted on the convergence date;
(D)adjustments relating to items of property, plant and equipment and intangible assets recorded at fair value as deemed cost in accordance with paragraphs D5 and D7 of the Indian Accounting Standards 101 on the convergence date;
(E)adjustments relating to investments in subsidiaries, joint ventures and associates recorded at fair value as deemed cost in accordance with paragraph D15 of the Indian Accounting Standards 101 on the convergence date; and
(F)adjustments relating to cumulative translation differences of a foreign operation in accordance with paragraph D13 of the Indian Accounting Standards 101 on the convergence date.’;
(iii)in Explanation 1,—
(a)for the words “net profit”, the word “profit” shall be substituted;
(b)for the words “profit and loss account” wherever they occur, the words “statement of profit and loss” shall be substituted;
(c)in clause (k) for the words “profit or loss account”, the words “statement of profit and loss” shall be substituted;
(iv)in Explanation 3,—
(a)for the words, brackets and figures “proviso to sub-section (2) of section 211 of the Companies Act, 1956 (1 of 1956)”, the words, brackets and figures “second proviso to sub-section (1) of section 129 of the Companies Act, 2013 (18 of 2013)” shall be substituted;
(b)for the words “profit and loss account”, the words “statement of profit and loss” shall be substituted;
(c)for the words and figures “Part II and Part III of Schedule VI to the Companies Act, 1956 (1 of 1956)”, the words and figures “Schedule III to the Companies Act, 2013 (18 of 2013)” shall be substituted.
Amendment of section 115JD.
48. In section 115JD of the Income-tax Act, with effect from the 1st day of April, 2018,—
(a)in sub-section (2), the following proviso shall be inserted, namely:—
“Provided that where the amount of tax credit in respect of any income-tax paid in any country or specified territory outside India, under section 90 or section 90A or section 91, allowed against the alternate minimum tax payable exceeds the amount of the tax credit admissible against the regular income-tax payable by the assessee, then, while computing the amount of credit under this sub-section, such excess amount shall be ignored.”;
(b)in sub-section (4), for the words “tenth assessment year”, the words “fifteenth assessment year” shall be substituted.
Amendment of section 119.
49. In section 119 of the Income-tax Act, in sub-section (2), in clause (a), after the figures “271”, the figures and letters “, 271C, 271CA” shall be inserted.
Amendment of section 132.
50. In section 132 of the Income-tax Act,—
(i)in sub-section (1), after the fourth proviso, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1962, namely:—
“Explanation.—For the removal of doubts, it is hereby declared that the reason to believe, as recorded by the income-tax authority under this sub-section, shall not be disclosed to any person or any authority or the Appellate Tribunal.”;
(ii)in sub-section (1A), the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, 1975, namely:—
“Explanation.—For the removal of doubts, it is hereby declared that the reason to suspect, as recorded by the income-tax authority under this sub-section, shall not be disclosed to any person or any authority or the Appellate Tribunal.”;
(iii)after sub-section (9A), the following sub-sections shall be inserted, namely:—
“(9B) Where, during the course of the search or seizure or within a period of sixty days from the date on which the last of the authorisations for search was executed, the authorised officer, for reasons to be recorded in writing, is satisfied that for the purpose of protecting the interest of revenue, it is necessary so to do, he may with the previous approval of the Principal Director General or Director General or the Principal Director or Director, by order in writing, attach provisionally any property belonging to the assessee, and for the said purpose the provisions of the Second Schedule shall, mutatis mutandis, apply.
(9C) Every provisional attachment made under sub-section (9B) shall cease to have effect after the expiry of a period of six months from the date of the order referred to in sub-section (9B).
(9D) The authorised officer may, during the course of the search or seizure or within a period of sixty days from the date on which the last of the authorisations for search was executed, make a reference to a Valuation Officer referred to in section 142A, who shall estimate the fair market value of the property in the manner provided under that section and submit a report of the estimate to the said officer within a period of sixty days from the date of receipt of such reference.”;
(iv)for Explanation 1, the following Explanation shall be substituted, namely:—
‘Explanation 1.—For the purposes of sub-sections (9A), (9B) and (9D), with respect to “execution of an authorisation for search”, the provisions of sub-section (2) of section 153B shall apply.’.
Amendment of section 132A.
51. In section 132A of the Income-tax Act, in sub-section (1), the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of October, 1975, namely:—
“Explanation.—For the removal of doubts, it is hereby declared that the reason to believe, as recorded by the income-tax authority under this sub-section, shall not be disclosed to any person or any authority or the Appellate Tribunal.”.
Amendment of section 133.
52. In section 133 of the Income-tax Act,—
(i)in the first proviso, for the words “and the Principal Commissioner or Commissioner”, the words “or the Principal Commissioner or Commissioner or the Joint Director or Deputy Director or Assistant Director” shall be substituted;
(ii)in the second proviso, after the words “Director or Principal Commissioner or Commissioner”, the words “, other than the Joint Director or Deputy Director or Assistant Director,” shall be inserted.
Amendment of section 133A.
53. In section 133A of the Income-tax Act, in sub-section (1),—
(i)in the long line, for the portion beginning with “at which a business or profession” and ending with “such business or profession—”, the following shall be substituted, namely:—
“at which a business or profession or an activity for charitable purpose is carried on, whether such place be the principal place or not of such business or profession or of such activity for charitable purpose, and require any proprietor, trustee, employee or any other person who may at that time and place be attending in any manner to, or helping in, the carrying on of such business or profession or such activity for charitable purpose—”;
(ii)in the Explanation, after the words “business or profession” wherever they occur, the words “or activity for charitable purpose” shall be inserted.
Amendment of section 133C.
54. In section 133C of the Income-tax Act, after sub-section (2) and before the Explanation, the following sub-section shall be inserted, namely:—
“(3) The Board may make a scheme for centralised issuance of notice and for processing of information or documents and making available the outcome of the processing to the Assessing Officer.”.
Amendment of section 139.
55. In section 139 of the Income-tax Act, with effect from the 1st day of April, 2018,—
(i)in sub-section (4C),—
(I)after clause (c), the following clause shall be inserted, namely:—
“(ca)person referred to in clause (23AAA) of section 10;”;
(II)after clause (eb), the following clauses shall be inserted, namely:—
“(eba)Investor Protection Fund referred to in clause (23EC) or clause (23ED) of section 10;
(ebb)Core Settlement Guarantee Fund referred to in clause (23EE) of section 10;”;
(III)after clause (f), the following clause shall be inserted, namely:—
“(fa)Board or Authority referred to in clause (29A) of section 10;”;
(IV)in the long line occurring after clause (h), after the words “association or institution,”, the words “person or” shall be inserted;
(ii)in sub-section (5) [as substituted by section 67 of the Finance Act, 2016 (28 of 2016)], the words “the expiry of one year from” shall be omitted.
Insertion of new section 139AA.
56. After section 139A of the Income-tax Act, the following section shall be inserted, namely:—
‘139AA. Quoting of Aadhaar number.—(1) Every person who is eligible to obtain Aadhaar number shall, on or after the 1st day of July, 2017, quote Aadhaar number—
(i)in the application form for allotment of permanent account number;
(ii)in the return of income:
Provided that where the person does not possess the Aadhaar Number, the Enrolment ID of Aadhaar application form issued to him at the time of enrolment shall be quoted in the application for permanent account number or, as the case may be, in the return of income furnished by him.
(2) Every person who has been allotted permanent account number as on the 1st day of July, 2017, and who is eligible to obtain Aadhaar number, shall intimate his Aadhaar number to such authority in such form and manner as may be prescribed, on or before a date to be notified by the Central Government in the Official Gazette:
Provided that in case of failure to intimate the Aadhaar number, the permanent account number allotted to the person shall be deemed to be invalid and the other provisions of this Act shall apply, as if the person had not applied for allotment of permanent account number.
(3) The provisions of this section shall not apply to such person or class or classes of persons or any State or part of any State, as may be notified by the Central Government in this behalf, in the Official Gazette.
Explanation.—For the purposes of this section, the expressions—
(i)”Aadhaar number”, “Enrolment” and “resident” shall have the same meanings respectively assigned to them in clauses (a), (m) and (v) of section 2 of the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016 (18 of 2016);
(ii)”Enrolment ID” means a 28 digit Enrolment Identification Number issued to a resident at the time of enrolment.’.
Amendment of section 140A.
57. In section 140A of the Income-tax Act, with effect from the 1st day of April, 2018,—
(i)in sub-section (1),—
(a)in the long line,—
(A)after the words “together with interest”, the words “and fee” shall be inserted;
(B)for the words “and interest”, the words, “, interest and fee” shall be substituted;
(b)in the Explanation, for the words “and interest as aforesaid, the amount so paid shall first be adjusted towards”, the words “, interest and fee as aforesaid, the amount so paid shall first be adjusted towards the fee payable and thereafter towards” shall be substituted;
(ii)in sub-section (3), for the words “or interest or both” at both the places where they occur, the words “, interest or fee” shall be substituted.
Amendment of section 143.
58. In section 143 of the Income-tax Act,—
(a)in sub-section (1), with effect from the 1st day of April, 2018,—
(i)in clause (b), for the words “and interest”, the words “, interest and fee” shall be substituted;
(ii)in clause (c),—
(A)for the words “and interest”, the words “, interest and fee” shall be substituted;
(B)for the words “or interest”, the words “, interest or fee” shall be substituted;
(iii)in the first proviso, for the words “or interest”, the words “, interest or fee” shall be substituted;
(b)for sub-section (1D) [as substituted by section 68 of the Finance Act, 2016 (28 of 2016)], the following shall be substituted, namely:—
“(1D) Notwithstanding anything contained in sub-section (1), the processing of a return shall not be necessary, where a notice has been issued to the assessee under sub-section (2):
Provided that the provisions of this sub-section shall not apply to any return furnished for the assessment year commencing on or after the 1st day of April, 2017.”.
(c)in sub-section (3), for the portion beginning with the words “On the day specified in the notice” and ending with the words, brackets and letters “issued under clause (ii) of”, the words “On the day specified in the notice issued under” shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2016.
Amendment of section 153.
59. In section 153 of the Income-tax Act,—
(i)in sub-section (1), the following provisos shall be inserted, namely:—
‘Provided that in respect of an order of assessment relating to the assessment year commencing on the 1st day of April, 2018, the provisions of this sub-section shall have effect, as if for the words “twenty-one months”, the words “eighteen months” had been substituted:
Provided further that in respect of an order of assessment relating to the assessment year commencing on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words “twenty-one months”, the words “twelve months” had been substituted.’;
(ii)in sub-section (2), the following proviso shall be inserted, namely:—
‘Provided that where the notice under section 148 is served on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words “nine months”, the words “twelve months” had been substituted.’;
(iii)in sub-section (3), the following proviso shall be inserted, namely:—
‘Provided that where the order under section 254 is received by the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner or, as the case may be, the order under section 263 or section 264 is passed by the Principal Commissioner or Commissioner on or after the 1st day of April, 2019, the provisions of this sub-section shall have effect, as if for the words “nine months”, the words “twelve months” had been substituted.’;
(iv)in sub-section (5), after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:—
“Provided further that where an order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264 requires verification of any issue by way of submission of any document by the assessee or any other person or where an opportunity of being heard is to be provided to the assessee, the order giving effect to the said order under section 250 or section 254 or section 260 or section 262 or section 263 or section 264 shall be made within the time specified in sub-section (3).”;
(v)in sub-section (9), the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:—
“Provided that where a notice under sub-section (1) of section 142 or sub-section (2) of section 143 or section 148 has been issued prior to the 1st day of June, 2016 and the assessment or reassessment has not been completed by such date due to exclusion of time referred to in Explanation 1, such assessment or reassessment shall be completed in accordance with the provisions of this section as it stood immediately before its substitution by the Finance Act, 2016 (28 of 2016).”;
(vi)in Explanation 1, in the third proviso, the figures and letter “153B,” shall be omitted.
Amendment of section 153A.
60. In section 153A of the Income-tax Act, in sub-section (1),—
(i)in clause (a), first proviso and the second proviso, after the words “six assessment years” wherever they occur, the words “and for the relevant assessment year or years” shall be inserted;
(ii)in clause (b), after the words “requisition is made”, the words “and of the relevant assessment year or years” shall be inserted;
(iii)in the third proviso, after the words “requisition is made”, the words “and for the relevant assessment year or years” shall be inserted;
(iv)after the third proviso, the following shall be inserted, namely:—
‘Provided also that no notice for assessment or reassessment shall be issued by the Assessing Officer for the relevant assessment year or years unless—
(a)the Assessing Officer has in his possession books of account or other documents or evidence which reveal that the income, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more in the relevant assessment year or in aggregate in the relevant assessment years;
(b)the income referred to in clause (a) or part thereof has escaped assessment for such year or years; and
(c)the search under section 132 is initiated or requisition under section 132A is made on or after the 1st day of April, 2017.
Explanation 1.—For the purposes of this sub-section, the expression “relevant assessment year” shall mean an assessment year preceding the assessment year relevant to the previous year in which search is conducted or requisition is made which falls beyond six assessment years but not later than ten assessment years from the end of the assessment year relevant to the previous year in which search is conducted or requisition is made.
Explanation 2.—For the purposes of the fourth proviso, “asset” shall include immovable property being land or building or both, shares and securities, loans and advances, deposits in bank account.’.
