PROFESSIONAL EDUCATION (COURSE – II)
SUPPLEMENTARY STUDY PAPER - 2009
[Covers amendments made by the Finance (No.2) Act, 2009 and Important Circulars/Notifications issued between 1st May 2008 and 30th April 2009] |
(Relevant for students appearing for May, 2010 examination)
BOARD OF STUDIES
THE
This supplementary study paper has been prepared by the faculty of the Board of Studies of the Institute of Chartered Accountants of India. Permission of the Council of the Institute is essential for reproduction of any portion of this paper. Views expressed herein are not necessarily the views of the Institute.
This Supplementary Study Paper has been prepared by the faculty of the Board of Studies of the Institute of Chartered Accountants of India with a view to assist the students in their education. While due care has been taken in preparing this Supplementary Study Paper, if any errors or omissions are noticed, the same may be brought to the attention of the Director of Studies. The Council of the Institute is not responsible in any way for the correctness or otherwise of the amendments published herein.
THE
Income-tax and Central Sales Tax is a very dynamic subject of the chartered accountancy course. For attaining thorough knowledge, the students have not only to be well conversant with the basic provisions of the relevant laws, but also have to constantly update their knowledge regarding statutory developments.
The Board of Studies brings out an annual Supplementary Study Paper to help the students to update their knowledge relating to recent statutory developments in the field of income-tax and central sales tax made by the Annual Finance Act, Notifications/Circulars etc.
I compliment the Board of Studies for the good work in bringing out this publication, which would help the students to update their knowledge regarding the latest statutory developments. I am sure that this publication will be of great use to the students in preparing for their examination.
INCOME-TAX AND CENTRAL SALES TAX
AMENDMENTS AT A GLANCE – FINANCE (No.2) ACT, 2009
S.No. | Particulars | | Section |
I | INCOME-TAX ACT, 1961 | | |
1. | A. Rates of tax | | |
| B. Basic Concepts | | |
2. | Scope of definition of charitable purpose expanded | | 2(15) |
3. | | 2(29BA) | |
4. | | 2(48) & 36(1)(iiia) | |
| | | |
5. | | 10(10C) & 89 | |
6. | | 10(23C) | |
7. | | 10(23D) | |
8. | | 10(44) | |
9. | | 10A & 10B | |
10. | | 10AA | |
11. | | 13B, 2(22AAA), 2(24), 80GGB & 80GGC | |
12. | | 115BBC | |
| | | |
13. | | 17(2) & 49(2AA) | |
| | | |
14. | | 32(1) | |
15. | Scope of benefit of weighted deduction of 150% for in-house research and development expanded | | 35(2AB) |
16. | Introduction of “investment-linked tax incentives” for specified businesses | | 35AD, 28, 43, 50B, 73A & 80-IA |
17. | Withdrawal of commodities transaction tax | | 36(1)(xvi) |
18. | Scope of deduction under section 36(1)(viii) expanded to include business of providing long-term finance for development of housing in | | 36(1)(viii) |
19. | | 40(b)(v) | |
20. | | 40A(3)/(3A) | |
21. | | 44AE | |
22. | | 44AD, 44AA, 44AB | |
23. | | 43(6) | |
| F. Capital Gains | | |
24. | Transfer of land and/or building through “power of attorney” to attract the provisions of section 50C | | 50C |
| | | |
25. | | 56(2)(vii), 2(24) & 49(4) | |
26. | | 56(2)(viii), 57 & 145A | |
| | | |
27. | | 80A | |
28. | Deduction in respect of contribution to NPS extended to self-employed individuals also | | 80CCD |
29. | Increase in deduction for a person with severe disability and for maintenance including medical treatment of a dependent with severe disability | | 80DD & 80U |
30. | Expansion of scope of section 80E to cover all fields of study after Class XII, including vocational study, for the purpose of interest deduction in respect of loan taken for pursuing such courses | | 80E |
31. | One-time approval for institutions and funds for the purpose of recognition under section 80G | | 80G |
32. | Extension of sunset clause for tax holiday under section 80-IA for power-sector undertakings and industrial parks | | 80-IA |
33. | Tax holiday under section 80-IA not available in respect of works contract | | 80-IA |
34. | Extension of time limit for refineries in the private sector to begin refining of mineral oil and expansion of scope of tax holiday under section 80-IB(9) | | 80-IB(9) |
35. | All blocks licensed under a single contract to be treated as a single “undertaking” | | 80-IB(9) |
36. | Further conditions to be satisfied by an undertaking developing and building housing projects for claiming benefit of deduction under section 80-IB(10) | | 80-IB(10) |
37. | Deduction under section 80-IB extended to an undertaking deriving profit from the business of processing, preservation and packaging of meat and meat products or poultry or marine or dairy products | | 80-IB(11A) |
| I. Tax Treatment for LLPs | | |
38. | Tax treatment for LLPs | | 2(23) & 140 |
| J. Income-tax Authorities | | |
39. | Power of Joint Director, Joint Commissioner, Additional Director & Additional Commissioner to issue warrant of authorization | | 132 & 132A |
| K. Assessment Procedure | | |
40. | Time limit extended for issue of notification for relaxation, modification or adaptation of any provision of law to facilitate centralized processing of returns | | 143(1B) |
41. | Provision for constitution of alternate dispute resolution mechanism | | 144C, 131, 246A & 253 |
42. | Assessing Officer empowered to assess or reassess income which comes to his notice subsequently though he has not recorded reasons for the same | | 147 |