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Amendment of Section-10 (Budget 2014-2015)   relating to "INCOME NOT INCLUDED IN TOTAL INCOME".

(As per Finance (No. 2) Bill, 2014 and Last Minute Amendment also incorporated) (As passed by Lok Sabha)
 

Under the existing provisions contained in clause (23C) of the aforesaid section, exemption is provided in respect of income of university or other educational institutions, hospital or any other institution mentioned therein, if such university or other educational institution, hospital or any other institution are wholly or substantially financed by the Government.

 

It is proposed to amend the aforesaid clause so as to insert an Explanation to provide that any university or other educational institution, hospital or other institution referred therein, shall be considered as being substantially financed by the Government for any previous year, if the Government grant to such university or other educational institution, hospital or other institution exceeds such percentage of the total receipts including any voluntary contributions as may be prescribed, of such university or other educational institution, hospital or other institution, as the case may be, during the relevant previous year.

 

It is further proposed to amend the said clause to provide that where the fund or institution referred to in sub-clause (iv) or trust or institution referred to in sub-clause (v) or any university or other educational institution referred to in sub-clause (vi) or any hospital or other medical institution referred to in sub-clause (via), has been notified by the Central Government or approved by the prescribed authority and the notification or the approval is in force for any previous year, then nothing contained in any other provision of this section [other than clause (1) thereof] shall operate to exclude any income received on beba’ such fund or trust or institution or university or other educational institution or hospital or othe diÔai institution, as the case may be, from the total income of the person in receipt thereof for that previous year.

 

It is also proposed to provide that income for the purposes of application shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset, acquisition of which has been claimed as an application of income under clause (23C) of section 10 or section 11 in any previous year.

 

It is proposed to insert a new clause (23FC) in section 10 so as to provide that any income of a business trust by way of interest received or receivable from a special purpose vehicle would not be included in the total income of the trust. It is further proposed to define the term “special purpose vehicle” to mean an Indian company in which the business trust holds controlling interest and any specific percentage of shareholding or interest, as may be required by the regulations under which such trust is granted registration.

 

It is proposed to insert a new clause (23FD) in section 10 so as to provide that any distributed income, referred to in section 115UA, received by a unit holder from the business trust, not being that proportion of the income which is of the same nature as the income referred to in clause (23FC) of this section, shall not be included in the total income of such unit holder.

 

It is proposed to amend clause (38) of section 10 so as to provide that the provisions of the said clause shall also be applicable to units of a business trust as it is applicable to units of an equity oriented fund. It is also proposed to provide that the provisions of this clause shall not apply in respect of any income arising from transfer of any units of a business trust which were acquired in consideration of a transfer referred to in clause (xvii) of section 47.

 

These amendments will take effect from 1st April, 2015 and will, accordingly, apply in relation to the assessment year 2015-16 and subsequent years.
 
 
More Topics ...on TAX Amendment !
Insert a new Chapter XII-FA (Budget:2014-2015) in 'Special Provisions Relating to Business Trusts'
KEY FEATURES OF BUDGET-2014-2015 [ (As per Finance (No. 2) Bill, 2014 and Last Minute Amendment also incorporated) (As passed by Lok Sabha)
Amendment of Section-10 (Budget 2014-2015) relating to Income not Included in Total Income
Amendment of Section-10AA (Budget 2014-2015) relating to "SPECIAL PROVISION IN RESPECT OF NEWLY ESTABLISHED UNITS IN SPECIAL ECONOMIC ZONES"
Amendment of Section-11 (Budget 2014-2015) relating to " SPECIAL PROVISION IN RESPECT OF NEWLY ESTABLISHED UNITS IN SPECIAL ECONOMIC ZONES "
Amendment of Section-111A (Budget 2014-2015) relating to "TAX ON SHORT-TERM CAPITAL GAINS IN CERTAIN CASES"
Amendment of Section-112 (Budget 2014-2015) relating to "TAX ON LONG-TERM CAPITAL GAINS"
Amendment of Section-115-O (Budget 2014-2015) relating to "TAX ON DISTRIBUTED PROFITS OF DOMESTIC COMPANIES"
Amendment of Section-115-R (Budget 2014-2015) relating to "TAX ON DISTRIBUTED INCOME TO UNIT HOLDERS"
Amendment of Section-115-TA (Budget 2014-2015) relating to "TAX ON DISTRIBUTED INCOME TO INVESTORS "
Amendment of Section-115A (Budget 2014-2015) relating to "TAX ON DIVIDENDS, ROYALTY AND TECHNICAL SERVICE FEES IN THE CASE OF FOREIGN Amendment of Section-115A (Budget 2014-2015) relating to "TAX ON DIVIDENDS, ROYALTY AND TECHNICAL SERVICE FEES IN THE CASE OF FOREIGN Amendment of Section-115A (Budget 2014-2015) relating to "TAX ON DIVIDENDS, ROYALTY AND TECHNICAL SERVICE FEES IN THE CASE OF FOREIGN COMPANIES"
Amendment of Section-115BBC (Budget 2014-2015) relating to "ANONYMOUS DONATIONS TO BE TAXED IN CERTAIN CASES"
Amendment of Section-115BBD (Budget 2014-2015) relating to "TAX ON CERTAIN DIVIDENDS RECEIVED FROM FOREIGN COMPANIES"
Amendment of Section-115JC (Budget 2014-2015) relating to "THE PROVISIONS FOR PAYMENT OF TAX BY CERTAIN PERSONS OTHER THAN A COMPANY"
Amendment of Section-115JEE (Budget 2014-2015) relating to "APPLICATION OF THE CHAPTER XII-8A TO CERTAIN PERSONS"
Amendment of Section-116 (Budget 2014-2015) relating to "SUBSTITUTION OF NEW INCOME-TAX AUTHORITIES "
Amendment of Section-12A (Budget 2014-2015) relating to " CONDITIONS FOR APPLICABILITY OF SECTIONS-11 AND 12 "
Amendment of Section-12AA (Budget 2014-2015) relating to " PROCEDURE FOR REGISTRATION "
Amendment of Section-133A (Budget 2014-2015) relating to "POWER OF SURVEY"
Amendment of Section-133C (Budget 2014-2015) relating to "POWER TO CALL FOR INFORMATION BY PRESCRIBED INCOME-TAX AUTHORITY"
Amendment of Section-139 (Budget 2014-2015) relating to " RETURN OF INCOME"
Amendment of Section-140 (Budget 2014-2015) relating to " RETURN BY WHOM TO BE SIGNED"
Amendment of Section-142K (Budget 2014-2015) relating to " Estimate By Valuation Officer In Certain Cases"
Amendment of Section-145 (Budget 2014-2015) relating to " METHOD OF ACCOUNTING"
Amendment of Section-153 (Budget 2014-2015) relating to " TIME LIMIT FOR COMPLETION OF ASSESSMENTS AND REASSESSMENTS"
Amendment of Section-153-B (Budget 2014-2015) relating to " TIME LIMIT FOR COMPLETION OF ASSESSMENT UNDER SECTION -153A"
Amendment of Section-153-C (Budget 2014-2015) relating to " ASSESSMENT OF INCOME OF ANY OTHER PERSON"
Amendment of Section-194-DA (Budget 2014-2015) relating to " PAYMENT IN RESPECT OF LIFE INSURANCE POLICY"
Amendment of Section-194-LBA (Budget 2014-2015) relating to "CERTAIN INCOME FROM BUSINESS TRUST"
Amendment of Section-194-LC (Budget 2014-2015) relating to "INCOME BY WAY OF INTEREST FROM INDIAN COMPANY"
Amendment of Section-2(14) (Budget 2014-2015) relating to "CAPITAL ASSET "
Amendment of Section 2 relating to Definitions. [ (As per Finance (No. 2) Bill, 2014 and Last Minute Amendment also incorporated) (As passed by Lok Sabha)
Amendment of Section-200-A (Budget 2014-2015) relating to "PROCESSING OF STATEMENTS OF TAX DEDUCTED AT SOURCE"
Amendment of Section-200 (Budget 2014-2015) relating to "DUTY OF PERSON DEDUCTING TAX"
Amendment of Section-201 (Budget 2014-2015) relating to "CONSEQUENCES OF FAILURE TO DEDUCT OR PAY"
Amendment of Section-206-AA (Budget 2014-2015) relating to "REQUIREMENT TO FURNISH PERMANENT ACCOUNT NUMBER"
Amendment of Section-220 (Budget 2014-2015) relating to "WHEN TAX PAYABLE AND WHEN ASSESEE DEEMED IN DEFAULT"
Amendment of Section-24 (Budget 2014-2015) relating to " DEDUCTIONS FROM INCOME FROM HOUSE PROPERTY"
Amendment of Section-245-A (Budget 2014-2015) relating to " SETTLEMENT OF CASES-DEFINITION"
Amendment of Section-245-N (Budget 2014-2015) relating to " ADVANCE RULING-DEFINITIONS"
Amendment of Section-245-O (Budget 2014-2015) relating to " AUTHORITY FOR ADVANCE RULINGS "
Amendment of Section-269-T (Budget 2014-2015) relating to " MODE OF REPAYMENT OF CERTAIN LOANS AND DEPOSITS "
Amendment of Section-269-SS (Budget 2014-2015) relating to "MODE OF TAKING OR ACCEPTING CERTAIN LOANS AND DEPOSITS"
Amendment of Section-271-FA (Budget 2014-2015) relating to " PENALTY FOR FAILURE TO FURNISH ANNUAL INFORMATION RETURN "
Amendment of Section-271-FAA (Budget 2014-2015) relating to " PENALTY FOR FURNISHING INACCURATE STATEMENT OF FINANCIAL TRANSACTION OR REPORTABLE ACCOUNT"
Amendment of Section-271-G (Budget 2014-2015) relating to " LEVY OF PENALTY FOR FAILURE TO FURNISH INFORMATION OR DOCUMENT UNDER SECTION-92D OF THE ACT"
Amendment of Section-271-H (Budget 2014-2015) relating to " PENALTY FOR FAILURE TO FURNISH STATEMENTS, etc."
Amendment of Section-276-D (Budget 2014-2015) relating to " FAILURE TO PRODUCE ACCOUNTS AND DOCUMENTS"
Amendment of Section-281-B (Budget 2014-2015) relating to "PROVISIONAL ATTACHMENT TO PROTECT REVENUE IN CERTAIN CASES"
Amendment of Section-285-BA (Budget 2014-2015) relating to "OBLIGATION TO FURNISH ANNUAL INFORMATION RETURN WITH A NEW SECTION"
Amendment of Section-32AC (Budget 2014-2015) relating to " INVESTMENT IN NEW PLANT OR MACHINERY"
Amendment of Section-35AD (Budget 2014-2015) relating to " DEDUCTION IN RESPECT OF EXPENDITURE ON SPECIFIED BUSINESS"
Amendment of Section-37 (Budget 2014-2015) relating to " GENERAL EXPENDITURE"
Amendment of Section-40 (Budget 2014-2015) relating to "AMOUNTS NOT DEDUCTIBLE"
Amendment of Section-43 (Budget 2014-2015) relating to "DEFINITIONS OF CERTAIN TERMS RELEVANT TO INCOME FROM PROFITS AND GAINS OF BUSINESS OR PROFESSION"
Amendment of Section-44AE (Budget 2014-2015) relating to "SPECIAL PROVISION FOR COMPUTING PROFITS AND GAINS OF BUSINESS OF PLYING, HIRING OR LEASING GOODS CARRIAGES"
Amendment of Section-45 (Budget 2014-2015) relating to " CAPITAL GAINS"
Amendment of Section-47 (Budget 2014-2015) relating to "TRANSACTIONS NOT REGARDED AS TRANSFER"
Amendment of Section-48 (Budget 2014-2015) relating to "MODE OF COMPUTATION"
Amendment of Section-49 (Budget 2014-2015) relating to "COST WITH REFERENCE TO CERTAIN MODES OF ACQUISITION"
Amendment of Section-51 (Budget 2014-2015) relating to "ADVANCE MONEY RECEIVED"
Amendment of Section-54 (Budget 2014-2015) relating to "PROFIT ON SALE OF PROPERTY USED FOR RESIDENCE"
Amendment of Section-54EC (Budget 2014-2015) relating to " CAPITAL GAIN NOT TO BE CHARGED ON INVESTMENT IN CERTAIN BONDS"
Amendment of Section-54F (Budget 2014-2015) relating to " CAPITAL GAIN ON TRANSFER OF CERTAIN CAPITAL ASSETS NOT TO BE CHARGED IN CASE OF INVESTMENT IN RESIDENTIAL HOUSE"
Amendment of Section-56 (Budget 2014-2015) relating to " INCOME FROM OTHER SOURCES"
Amendment of Section-73 (Budget 2014-2015) relating to " LOSSES IN SPECULATION BUSINESS"
Amendment of Section-80-IA (Budget 2014-2015) relating to " DEDUCTIONS IN RESPECT OF PROFITS AND GAINS FROM INDUSTRIAL UNDERTAKINGS OR ENTERPRISES ENGAGED IN INFRASTRUCTURE DEVELOPMENT, etc."
Amendment of Section-80C (Budget 2014-2015) relating to " DEDUCTION IN RESPECT OF LIFE INSURANCE PREMIA, DEFERRED ANNUITY, CONTRIBUTIONS TO PROVIDENT FUND, SUBSCRIPTION TO CERTAIN EQUITY SHARES OR DEBENTURES, etc."
Amendment of Section-80CCD (Budget 2014-2015) relating to " DEDUCTION IN RESPECT OF CONTRIBUTION TO PENSION SCHEME OF CENTRAL GOVERNMENT ."
Amendment of Section-80CCE (Budget 2014-2015) relating to " LIMIT ON DEDUCTIONS UNDER SECTIONS BOC, 8OCCC AND BOCCD"
Amendment of Section-92-C (Budget 2014-2015) relating to "COMPUTATION OF ARM’S LENGTH PRICE "
Amendment of Section-92B (Budget 2014-2015) relating to " MEANING OF INTERNATIONAL TRANSACTION"
Amendment of Section-92CC (Budget 2014-2015) relating to "ADVANCE PRICING AGREEMENT"
 
 
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