LOK SABHA
THE FINANCE
BILL, 2013
[As introduced
in Lok .Sabha]
Notice of
Amendments
SHRI
P.CHIDAMBARAM:
1. Page 2, line
31 for”194LC”, substitute “194I LC, 194LD”.
2. Page 6,
after line 13, insert—
3A (New) –
Substitution of reference of certain expression by other expression
3A. In the Income-tax Act, for the expression “the Foreign Exchange Regulation
Act, 1973 (46 of 1973)”. wherever it occurs, the expression “the Foreign
Exchange Management Act, 1999 (42 of 1999)” shall be substituted.
3. Page 8,
after line 11, insert-
‘(VIA) in clause (48), for the words “sale of crude oil to any person”, the
words “sale of crude oil, any other goods or rendering of services, as may be
notified by the Central Government in this behalf, to any person” shall be
substituted with effect from the 1st day of April 2014.
4. Page 9,
after line 35, insert–
7A. (New) -Amendment
of section 43
’7A in section
43, of the Income-tax Act, in clause (5), with effect from the 1st
day of April, 2014,-
(I). in the
proviso,-
(A) in clause (d), after the words “a recognised stock exchange;”, the word
“or” shall be inserted;
(B) after clause (d), the following clause shall be inserted, namely:-
‘(e) an eligible transaction in respect of trading in commodity derivatives
carried out in a recognised association,”;
(II) the
Explanation shall be numbered as “Explanation I” thereof and in the Explanation
I as so renumbered, for the words “this clause”, the word, brackets and letter
“clause (d)” shall be substituted;
(III) after
Explanation -I as so renumbered, the following Explanation shall be inserted,
namely -
‘Explanation 2
–For the purposes of clause (e), the expressions
(i) “Commodity
derivative” shall have the meaning as assigned to it in Chapter VII of the
Finance Act, 2013;
(ii) “eligible
transaction” means any transaction,
(A) carried out electronically on screen-based systems
through member or an intermediary, registered under the bye-laws, rules and
regulations of the recognised association for trading in commodity derivative
in accordance with the provisions of the Forward Contracts (Regulation) 1952
(74 of 1952) and the rules, regulations or bye laws made or directions issued
under that Act on a recognised association; and
(B) which is supported by a time stamped contract notes issued by such member
or intermediary to every client indicating in the contract note, the unique
client identity number allotted under the Act, rules, regulations or bye-laws
referred to in sub clause (A), unique trade number and permanent account number
allotted under this Act;
(iii)
“recognised association” means a recognised association as referred to in
clause (j) of section 2 of the Forward Contracts (Regulation) Act, 1952 (74 of
1952) and which fulfills such conditions as may be prescribed and is notified
by the Central Government for this purpose:’.’
5. Page 12,
after line 27, insert
(ba) in sub-section (4), for the words “a certificate, containing such
particulars as may be prescribed, of his being a resident the words “a
certificate of his being a resident” shall be substituted;’.
6. Page 12, for
lines 30 to 32, substitute-
“(5) The assessee referred to in sub-section (4) shall also provide such other
documents and information, as may be prescribed.”.
7. Page 12,
after line 38, insert
“(ba) in sub-section (4), for the words “a certificate, containing such
particulars as may be prescribed, of his being a resident”, the words “a
certificate of this being a resident” shall be substituted;’.
8. Page 12, for
lines 41 to 43, substitute-
“(5) The assessee referred to in sub-section (4) shall also provide such other
documents and information, as may be prescribed.”
9. Page 16, for
lines 17 to 23, substitute-
Amendment of
Section 115A
25. In section
I I5A of the Income-tax Act, in sub-section (1) with effect from the 1st
day of April, 2014,-
(1) in clause
(a),-
(A) after
sub-clause (iiaa), the following sub-clause shall be inserted, namely:
“(iiab)
interest of the nature and extent referred to in section 194LD; or”;
(B) in item
(BA), after the words, brackets, figures and letters “sub-clause (iiaa)”. the
words, brackets, figures and letters “or sub-clause (iiab)” shall be inserted;
(C) in item (D),
for the words, brackets, figures and letters “sub-clause (iiaa)”, the words,
brackets, figures and letters “sub-clause (iiaa), sub-clause (flab)” shall be
substituted;
(II) in clause
(b). for sub-clauses (A), (AA), (B), and (BB), the following sub-clauses shall
be substituted, namely:
(A) the amount of income-tax calculated on the income by way of royalty. if
any, included in the total income, at the rate of twenty-five per cent.;
(B) the amount of income-tax calculated on the income by way of fees for technical
services, if any, included in the total income, at the rate of twenty-five per
cent.;
10. Page 16,
after Iine 23, insert-
25A.
(New)-Amendment of Section 115AD
25A. In section
115AD, in sub-section (1), in item (i), with effect from the 1st day
of April, 2014, the following provisio shall be inserted, namely:-
“Provided that
the amount of income-tax calculated on the income by way of interest referred
to in section 194 LD shall be at the rate of five per cent”.
11. Page 19,
after line 5, insert-
31A
(New)-Amendment of Section 138
’31A In section
138 of the Income-tax Act, in sub-section (I), in clause (a), in sub-clause
(i), for the words, figures, brackets and letter “section 2(d) of the Foreign
Exchange Regulation Act, 1947 (7 of 1947)” the words, brackets, letter and
figures “clause (n) of section 2 of the Foreign Exchange Management Act 1999
(42 of 1999)’ shall be substituted.’
12. Page 21 for
line 8, substitute-
37 In section
153 of the Income-tax Act,
(I) in sub-section (I), for the third proviso, the following proviso shall be
substituted and shall he deemed to have been substituted with effect from the 1st
day of July 2012, namely:
‘Provided also that in case the assessment year in which the income was first
assessable is the assessment year commencing on the 1st day of
April, 2009 or any subsequent assessment year and during the course of the
proceeding for the assessment of total income a reference under sub-section (I)
of section 92CA is made, the provisions of clause (a) shall, notwithstanding
anything contained in the first proviso, have effect as if for the words “two
years the words three years” had been substituted
(II) in sub section (2), for the fourth proviso, the following proviso shall be
substituted and shall be deemed to have been substituted with effect from the 1st
day of July 2012, namely:
‘Provided also that where the notice under section 148 was served on or after
the 1st day of April, 2010 and during the course of the proceeding
for the assessment or reassessment or recomputation of total income, a
reference under sub-section (1) of section 92CA is made. the provisions of this
sub-section shall notwithstanding anything contained in the second proviso,
have effect as if for the words “one year”, the words “two years” had been
substituted.’:
(Ill) In
sub-section (2A), for the fourth proviso, the following proviso shall be
substituted and shall be deemed to have been substituted with effect from the 1st
day of July, 2012, namely:-
‘Provided also that where the order under section 254 is received by the Chief
Commissioner or Commissioner or, as the case may be the order under section 263
or section 264 is passed by the Commissioner on or after the 1st day of April,
2010, and during the course of the proceeding for the fresh assessment of total
income a reference under sub-section (I) of section 92CA is made. the
provisions of this sub-section shall, notwithstanding anything contained in the
second proviso, have effect as it’ for the words “one year”. the words “two
years” had been substituted.’;
(1V) in
Explanation I-,
13. Page 21,
for line 3I, substitute
38. In section
153B of the income-tax Act, in sub-section (I)-
(a) for the
fourth proviso, the following proviso shall be substituted and shall be deemed to
have been substituted with effect from the 1st day of July, 2012,
namely:-.
‘Provided also that in case where the last of the authorizations for search
under section 132 or for requisition under section 132A was executed during the
financial year commencing on the 1st day of April, 2009 or any subsequent
financial year and during the course of the proceeding for the assessment or
reassessment of total income, a reference under sub-section (I) of section 92CA
is made, the provisions of clause (a) or clause (b) of this sub-section, shall
not withstanding anything contained in clause (i) of the second proviso, have
effect as if’ for the words “two years”, the words -three years” had been
substituted;
(b) for the
sixth proviso the following proviso shall be substituted and shall be deemed to
have been Substituted with effect from the 1st day of July, 2012,
namely:-
‘Provided also that in case where the last of the authorisations for search
under section 132 or for requisition under section 132A was execute financial
year commencing on the last day of April, 2009 or any subsequent financial year
and during the course of the proceeding for the assessment or reassessment of
total income. in case of other person referred to in section 153C, a reference
under sub-section (I) of section 92CA is made, the period of limitation for
making the assessment or reassessment in case of such other person shall,
notwithstanding anything contained in clause (ii) of the second proviso, be the
period of thirty-six months from the end of the financial year in which the
last of the authorisations for search under section 132 or for requisition
under section 132A was executed or twenty four months from the end of the
financial year in which books of account or documents or asset seized or
requisitioned are handed over under section 153C to the Assessing Officer
having jurisdiction over such other person, whichever is later.
(c) in the
Explanation,
14. Page 22
after line 22, insert-
“(3) The provisions of section 203A shall not apply to a person required to
deduct tax in accordance with the provisions of this Section”
15. Page 22,
for lines 28 to 42, substitute-
’43. After
section 194LC of the Income tax Act with effect from the 1st day of June, 2013,
the following section shall be inserted namely:-
Insertion of
new section 194ID- Income by way of interest on certain bonds and Government
Securities
“194LD. (I) Any person who is responsible for paying to a person being a
Foreign Institutional Investor or a Qualified Foreign Investor any income by
way of interest referred to in sub-section (2), shall, at the time of credit of
such income to the account of the payee or at the time of payment of such
income in cash or by the issue of a cheque or draft or by any other mode. whichever
is earlier deduct income-tax thereon at the rate of five per cent.
(2) The income
by way of interest referred to in sub section (1) shall be the interest payable
on or after the 1st day of June, 2013 but before the 1st day of
June, 2015 in respect of investment made by the payee in
(i) a rupee
denominated bond of an Indian company or
(ii) a
Government security:
Provided that
the rate of interest in respect of bond referred to in clause (i) shall not
exceed the rate as may be notified by the Central Government in this behalf’
Explanation-
For the purpose of this section-
(a) “Foreign
Institutional Investor” shall have the meaning assigned to it in clause (a) of
the Explanation to section 115AD:
(b) “Government
security” shall have the meaning assigned to it in clause (b) of section 2 of
the Securities Contracts (Regulation) Act, 1956(42 of 1956).
(c) “Qualified
Foreign Investor” shall have the meaning assigned to it in the Circular, No.
Cir/IMD/DF/14/2011, dated the 9th August, 2011, as amended from time to time,
issued by the Securities and Exchange Board of lndia, under section 11 of the
Securities and Exchange Board of India Act, 1992’ (15 of 1992)
16. Page 22,
after line 42 insert-
43A
(New)-Amendment of Section 195
“43A. In
section 195 of the Income-tax Act, in sub-section (I ), after the word, figures
and letters “section 194LC”, the words, figures and letters “or section 194LD”
shall be inserted with effect from the 1st day of June, 2013,
17. Page 22,
after line 42, insert-
43B
(New)-Amendment of Section 196D
43B. In section 196D of the income-tax Act, in sub-section (I ), for the words,
brackets, letters and figures “any income in respect of securities referred to
in clause (a) of sub-section (I ) of section 115AD is payable”, the words,
brackets, letters and figures “any income in respect of securities referred to
in clause (a) of sub-section (I) of section 115AD, not being income by way of
interest referred to in section 194LD is payable” shall be substituted with
effect from the ist day of June, 2013;
18. Page 22.
After line 42, insert-
43C
(New)-Amendment of Section 204
43C. In section
204,-
(A) In clause
(iia) for the words “authorised dealer”, the words “authorised person” shall be
substituted;
(B) In the
Explanation, for clause (b) the following clause shall be substituted namely.-
(b) “authorised person” shall have the meaning assigned to it in clause (c) of
section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999)
19. Page 22,
after line 42 insert-
43D
(New)-Amendment of Section 206AA
43D. In section
206AA of the income-tax Act. after sub-section ( 6), the following sub-section
shall be inserted with effect from the 1st day of June, 2013,
“(7) The provisions of this sect on shall not apply in respect of payment of
interest, on long-term infrastructure bonds, as referred to in section 194IC to
a non-resident, not being; a company. or to a foreign company “
20. Page 22,
after line 42,
43E (New)
Amendment of Section 206C
43E In
Sub-section (ID) of section 206C of the Income-tax Act, the brackets and words
“(excluding any coin or any other article weighing ten grants of less)” shall
be omitted with effect from the 1st day of June, 2013.
21. Page 23,
after line 35, insert-
46A
(New)-Amendment of Section 252
46A. In section
252 of the Income tax Act, for sub-section (3) the following sub-section shall
be substituted with effect from the 1st day of June 2013, namely:
“(3) The
Central Government shall appoint
(a) a person
who is a sitting or retired Judge of a High Court and who has completed not
less than seven years of service as a Judge in a High Court: or
(b) the Senior
Vice-President or one of the Vice-Presidents of the Appellate Tribunal to be
the President thereof:”.’
22. Page 32 for
lines 4 to 7, substitute-
Special provision
for taxable services provided by Indian railways
99. (1) Not
withstanding anything contained in Section 66 as it stood prior to the 1st day
of July 2012, or in section 66B, no service tax shall be levied or collected in
respect of taxable services provided by the Indian Railways during the period
prior to the 1st day of October, 2012.
(2) No refund
shall be made of service tax paid in respect of taxable services provided by
the Indian Railways during the said period prior to the 1st day of October. 2012.
23. Page 50,
after line 6, insert-
THE THIRD
SCHEDULE
‘(IA) in
Chapter 8,-
(a) In tariff item 0801 32 10, for the entry in column (4), the entry “70%”
shall be substituted;
(b) In tariff item 0801 32 20, for the entry in column (4), the entry “70°%”
shall be substituted;
(c) In tariff item 0801 32 90, for the entry in column (4), the entry “70%”
shall be substituted;
Analysis of Amendment to Finance Bill 2013
1.
Reference to FEMA, 1999 in the place of FERA, 1973/ FERA, 1947 under the Income-tax
Act, 1961
Even after
repeal of Foreign Exchange Regulation Act, 1973, the Income-tax Act, 1961
continued to make a reference to the said Act in many of its sections, for
example, section 10(4)(ii), 10(4B), etc. In order to correct this apparent
mistake, a new clause (3A) is proposed to be inserted in the Finance Bill, 2013
for substitution of the expression “Foreign Exchange Management Act, 1999” in
place of “Foreign Exchange Regulation Act, 1973” at all places in the
Income-tax Act, 1961.A specific amendment has also been made in section 138 to
substitute “Foreign Exchange Regulation Act, 1947” with “Foreign Exchange
Management Act, 1999”.
2.
“Authorised Person” under FEMA, 1999 to be the “person responsible for paying”
for the purpose of Chapter XVII and section 285
Section 204
provides for the meaning of the term “person responsible for paying” for the
purpose of Chapter XVII and section 285.
Clause (iia) of
section 204 provides that the authorized dealer shall be the person responsible
for remitting the amount of consideration to a non-resident for the transfer of
long term capital asset or crediting such sum to his Non-resident (External)
Account maintained in accordance with FERA, 1973.
Consequent to
the proposed substitution of the expression “FERA, 1973” with “FEMA 1999”,
reference to the term “Authorised dealer” under FERA, 1973 is also proposed to
be substituted with the term “Authorized person” under FEMA, 1999.
3.
Scope of exemption of income received in India in Indian currency by a foreign
company to be expanded
Section 10(48)
was inserted by the Finance Act, 2012 w.e.f. A.Y.2012-13 to exempt any income
received in India in Indian currency by a foreign company on account of sale of
crude oil to any person in India.
The scope of
section 10(48) is now proposed to be enlarged w.e.f. A.Y.2014-15 so as to also
provide exemption in respect of income received in India in Indian currency by
a foreign company from the sale of any other goods or rendering of services as
may be notified by the Central Government in this behalf to any person.
4.
Trading in commodity derivatives not to be considered as a speculative
transaction
The Commodities
transaction tax is proposed to be introduced in a limited way by insertion of
Chapter VII in the Finance Bill, 2013. The Finance Minister, in his budget
speech, had clarified that trading in commodity derivatives will not be
considered as a speculative transaction. However, no amendment was proposed to
this effect by the Finance Bill, 2013 in section 43(5) defining a speculative
transaction. Consequently, in the absence of specific exclusion provision in
section 43(5), characterisation of commodity derivative transactions (including
those which are subject to CTT) would be governed by the existing provisions
and they run the risk of being treated as speculative transactions, unless
established by the taxpayer to be for hedging purpose.
In order to
give effect to the clarification given by the Finance Minister in his budget
speech, section 43(5) is proposed to be amended by inserting sub-clause (e) in
its proviso to exclude an eligible transaction in respect of trading in
commodity derivatives carried out in a recognized stock exchange from the
definition of “speculative transaction”. Explanation 2 is proposed to be
inserted to define the term “eligible transaction” in relation to commodity
derivatives.
5.
Requirement of TRC to contain “prescribed particulars” to be dispensed with
Sub-section (4)
of 90 and 90A provides that treaty benefit will not be available to any Non
Resident unless he furnishes TRC from the Government of his country of
residence containing such particulars as may be prescribed. The Finance Bill,
2013 had proposed to insert sub-section (5) in sections 90 and 90A to provide
that TRC shall be a necessary but not a sufficient condition for claiming any
relief under a DTAA.
The Finance
Minister had subsequently clarified, by way of Press Release dated 1st March
2013, that the TRC issued by the Government of a foreign country would be
accepted as evidence of tax residency and the tax authorities cannot go behind
the TRC to question the residential status.
In order to
incorporate the said clarification in the statute, sub-section (4) of sections
90 and 90A is proposed to be amended to substitute the words “a certificate
containing such particulars as may be prescribed of his being a resident” with
the words “a certificate of his being a resident”. Therefore, a certificate
issued by the Government of a foreign country would constitute proof of tax
residency, without any further conditions regarding furnishing of prescribed
particulars therein.
Also,
sub-section (5) of sections 90 and 90A which provided that TRC shall be a
necessary but not a sufficient condition for claiming any relief under a DTAA
is proposed to be substituted to provide that the assessee referred to under
sub-section (4) of sections 90 and 90Ashall also provide such other documents
and information, as may be prescribed.
6.
New time limits for completion of assessment or reassessment under sections 153
and 153B in cases where reference is made to TPO to apply irrespective of the
date of reference to TPO or the date of passing of order under section 92CA(3)
Section 153
provides for the time limit for completion of assessments and reassessments.
With respect to income first assessable in the A.Y.2009-10 or any subsequent
assessment year, the Finance Act, 2012 had extended the time limit for
completion of assessment under section 143(3) or section 144 from 33 months to
3 years in case where, during the course of the assessment proceeding,
reference is made to the Transfer Pricing Officer (TPO) under section 92CA(1).
Further, where
notice under section 148 is served on or after 1.4.2010, the Finance Act, 2012
had extended the time limit for completion of assessment, reassessment or
recomputation under section 147 from 21 months to 2 years from the end of the financial
year in which notice under section 148 was served in a case where reference
under section 92CA(1) is made during the course of the assessment proceeding to
the TPO.
However, in
both the above cases, the extended time limit was applicable only if the
reference was made –
-
on or after 1st July, 2012 or
-
before 1st July, 2012 but the order of TPO has not been made upto that date.
The said
provisions are now proposed to be amended to provide that the extended time
limits of 3 years and 2 years, respectively, will be applicable irrespective of
the time of making reference to TPO and date of passing of order by the TPO.
Section 153B
which deals with the time limit for completion of assessment in case of search
or requisition, is also proposed to be amended on the similar lines.
7.
No requirement to obtain TAN by transferee deducting tax under section 194-IA
Section 194-IA
was proposed to be inserted by the Finance Bill, 2013 to provide for deduction
of tax at source@1% on consideration for transfer of immovable property, other
than agricultural land. However, no tax is to be deducted if the consideration
for transfer of immovable property is less than Rs.50 lakhs.
Since this
provision requires deduction of tax by the transferee, it presupposes that the
transferee should have a TAN. This may cause genuine hardship to those
transferees who do not possess a TAN. Further, it would be an additional burden
to require such persons to apply for and obtain TAN for a single transaction.
To address this
concern, sub-section (3) has now been inserted in section 194-IA to provide
that provisions of section 203A containing the requirement of obtaining TAN,
shall not apply to a person required to deduct tax in accordance with the
provisions of section 194-IA.
8.
Higher TDS under section 206AA not to be applicable in respect of tax
deductible under section 194LC
Section 194LC,
inserted by the Finance Act, 2012, provides for a concessional rate of
withholding tax @ 5% on payments to non-residents in a case where an Indian
Company borrows money in foreign currency from a source outside India either
under a loan agreement or by way of issue of long-term infrastructure bonds.
Though the
provision provides for concessional rate of tax @ 5%, in absence of PAN of the
Non Resident lender, section 206AA mandates withholding at higher rate of 20%.
This is perceived to be onerous considering that section 115A envisages
exemption from filing return for the Non Resident where tax is deducted by the
borrower and paid to the Government. Hence, obtaining PAN for the sole purpose
of avoiding adverse impact of section 206AA results in an empty formality.
To address this
concern, sub-section (7) is proposed to be inserted in section 206AA to provide
that the provisions of section 206AA shall not apply in respect of payment of
interest on long term infrastructure bonds, as referred to in section 194LC, to
a non-corporate nonresident or to a foreign company.
9. Introduction
of new section 194LD to provide concessional rate of TDS in respect of interest
income of a non-resident from rupee-denominated bonds or government securities
consequent to the amendment in section 206AA
The Finance
Act, 2012 had amended section 115A to provide that Interest payable by an Indian
company to a foreign company or a non-corporate non-resident in respect of
borrowing made in foreign currency from sources outside India between 1.7.2012
and 30.6.2015 would be subject to tax at a concessional rate of 5% on gross
interest (as against the rate of 20% of gross interest applicable in respect of
other interest received by a non-corporate non-resident or foreign company from
Government or an Indian concern on money borrowed or debt incurred by it in
foreign currency).
To avail this
concessional rate, the borrowing should be from a source outside India under a
loan agreement or by way of issue of long-term infrastructure bonds approved by
the Central Government. Such interest paid by an Indian company to a
non-corporate non-resident or a foreign company would be subject to TDS@5%
under section 194LC.
For enabling
subscription by a non-resident in the long term infrastructure bonds issued by
an Indian company in India (rupee denominated bond), a proviso was proposed to
be inserted in section 194LC(2) by the Finance Bill, 2013 to provide that where
a non-resident deposits foreign currency in a designated bank account and such
money as converted in rupees is utilized for subscription to a long-term
infrastructure bond issue of an Indian company, then, for the purpose of this
section, the borrowing by the company shall be deemed to be in foreign
currency.
Accordingly, as
per the above proposal, tax would be deducted at the lower rate of 5% in
respect of interest income arising to the non-resident from such rupee
denominated long-term infrastructure bonds provided the conditions specified in
the section are fulfilled.
In order to
exempt non-residents and foreign companies from the applicability of higher
rate of TDS on account of non-furnishing of PAN, it is now proposed that the
provisions of section 206AA would not be made applicable to TDS under section
194LC.
Therefore, for
providing a concessional rate of TDS in respect of interest income arising from
rupee denominated bonds or government securities, a separate section 194LD is
proposed to be inserted. This section provides for concessional rate of TDS in
respect of interest on such bonds and government securities payable to FIIs and
QFIs during the period from 1.6.2013 to 31.5.2015. It may be noted
that the provisions of section 206AA would be applicable in respect of TDS
under section 194LD.
Consequential
amendments are proposed to be made in section 115A providing for taxability of
certain income of, inter alia, foreign companies and section 195
providing for deduction of tax at source in respect of payments to, inter
alia, foreign companies.
Likewise,
consequential amendments are also proposed to be made in section 115AD
providing for taxability of certain income of FIIs and section 196D providing
for deduction of tax at source in respect of income payable to FIIs.
10. TCS
provisions under section 206C to also be attracted on sale of gold coins and
articles weighing 10 gms
The Finance Act,
2012 had inserted sub-section (1D) in section 206C to provide for collection of
tax at source on sale of bullion or jewellery, if the consideration exceeds
Rs.2 lakh and Rs.5 lakh, respectively.
A coin or
article weighing 10 gms or less was, however, excluded from the applicability
of the provisions of this section.
Since the
exclusion was giving an opportunity for misuse, the same is now proposed to be
withdrawn with effect from 1.6.2013. Consequently, the provisions for tax
collection at source under section 206C would be attracted even in respect of
sale of coins or articles weighing 10 gms or less, if the consideration exceeds
Rs. 2 lakh.
11. Sitting or
Retired Judge of High Court with at least 7 years of service eligible for
appointment as President of Appellate Tribunal
Section 252(3)
provides that the Central Government shall appoint the senior Vice-President or
one of the Vice-Presidents of the Appellate Tribunal to be the President
thereof.
Sub-section (3)
of section 252 is proposed to be substituted to provide that a person who is a
sitting or retired judge of a High Court and who has completed not less than 7
years of service as a judge in a High Court may also be appointed by the
Central Government as a President.
12. Land
classified as agricultural land in the records of the Government and used for
agricultural purposes not an asset chargeable to wealth-tax
Section 2(ea)
of the Wealth-tax Act, 1957 is proposed to be amended to clarify the real
intent of the law, i.e., the agricultural land in the records of the Government
and used for agricultural purposes shall not be considered as urban land even
if it falls within the specified urban limits. Consequently, such land would
not be chargeable to wealth-tax.
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