TDS and Finance Act,2009

Finance Bill (No 2) 2009 was passed by Lok Sabha on July 27,2009 with certain amendments. The Action points and analysis of provisions related to TDS is attempted in this article. Changes effective from passing of Finance Bill. Simplification of TDS Rates Currently the rates of TDS prescribed under the Act or First Schedule are subject to surcharge and cess. Surcharge is not applicable only in certain cases whereas cess is applicable in all cases. Surcharge is not applicable on all payments made to residents ,domestic companies and non-residents non-corporate payees Surcharge is applicable to foreign companies only if total payment is above Rs. 1 Crore Education Cess and SHEC is applicable for TDS on salaries , foreign companies and nonresident non-corporate payees Change in TDS Rate TDS Rate for interest payments under section 194A were different for companies and other than companies. Finance Bill has now prescribed uniform rate of 10%. Similarly many other rates have been changed. TDS Rate chart on the next page gives the amended rates. Changes effective from 01-10-2009 Change in TDS Rate for payments / credit from 01-10-2009 Currently payment to contractors under section 194C prescribes different rates for payment to contractors, sub- contractors and advertising contractors. Finance Bill 2009 has now prescribed rates based on the status of deductee. For Payment to Individual / HUF it is 1% for others it is 2%. There is no distinction for contract and sub contract. TDS Rate for payment of rent towards land, building is reduced from 20%/15% to 10% TDS Rate for payment of rent towards plant , machinery and equipment is reduced from 10% to 2% Periodicity of eTDS Statements Existing provisions provide for quarterly filing of eTDS statements. Amended provisions provide flexibility to CBDT to prescribe any period for filing of eTDS statements. No TDS for transport contractors Currently payment to individual sub contractors owning not more than 2 trucks can be made without TDS deduction. For this deductee has to furnish declaration in Form 15-I to the payer. Finance Bill 2009 has exempted all transport contracts from the purview of TDS, provided payee furnishes PAN to the payer. Payer will have to furnish details of such PAN to the department in a manner yet to be prescribed. Clarification of Outsourcing Contracts Outsourcing contracts have been clarified to include only those contracts involving manufacturing or supplying a product according to the requirement or specification of a customer by using raw material purchased from such customer It is further clarified that TDS will not be deducted on material amount if it is separately mentioned in the invoice. Changes effective from 01-04-2010 Penal TDS Rate if PAN not furnished Finance Bill prescribes a higher rate of 20% of TDS if deductee does not furnish PAN. However if the prescribed rate is higher than 20%, then such higher rate will be applicable. Processing of eTDS Statements The new section 200A provides for computerized processing of eTDS Statements. CBDT will make a scheme for centralized processing of eTDS Statements. The processing will involve rectifying arithmetical and apparent errors and calculation of interest. Based on such processing the deductor will be either given a refund or a demand notice will be raised on him. Time limit for penal proceedings for no / short deduction of TDS At present there is no time limit provided for passing order to hold a person as assesse in default . This has given rise to litigation and intervention of courts. The Finance Bill provides for a time limit for such proceedings . The order must be passed within 2 years from the end of financial year in which the eTDS statement is filed. If no such statement is filed then the time limit is 4 years.

ICAI Criteria for allocation of Statutory Auditors of RRBs - (10-08-2009)

Criteria for allocation of Statutory Auditors of RRBs - (10-08-2009) I    New firms to be empanelled from the list of audit firms whose Chartered Accountants should have Diploma in Information and System Accounting (DISA) qualification. II    Selection for new audit firms to be made only from category III and from category IV SP upto 20% of the total requirement in respect of vacancies. III    Re-appointment of on-going existing audit firms as SCA and SBA if they are in the list of ICAI. IV    Partnership firms having a minimum of two Chartered Accountants as partners, of whom at least one should be a full time partner, and the firm or at least one of the partners having a minimum of 5 years experience of bank audit. V    Audit firms that have served as SCA in one RRB consecutively for 3 years to be rested for two years. VI    Audit firms that have served as SBA (Statutory Branch Auditor) in one RRB consecutively for 4 years to be rested for two years. VII    Audit firms having experience of bank audit not less than 5 years to be considered. VIII    A panel of 2 firms as stand-by for SCA and 2 firms as stand-by for SBA of each of the RRBs is being prepared and provided to RRBs after GOI approval. IX    Sole proprietorship firms to be considered as SBA , to the extent of 20% of the total requirement.

Extension of due date for completion of 100 Hours IT training

Removing difficulties being faced by the students for successfully completing 100 Hours Information Technology Training before the commencement of November, 2009 Professional Competence Examination/ Integrated Professional Competence Examination It has been brought to the notice of Board of Studies that some of the students who have to appear for the Professional Competence Examination/ Integrated Professional Competence Examination to be held in November, 2009, are facing difficulties in successfully completing 100 Hrs Information Technology Training by 31st October, 2009 due to capacity constraints in certain Information Technology Labs. In order to remove the difficulties being faced by such students, it has been decided that they may successfully complete their 100 Hours Information Technology Training before the date of declaration of the Professional Competence Examination/ Integrated Professional Competence Examination result for November 2009 Examination. Such students should submit proof of their successful completion of the 100 Hours Information Technology Training to the Examination Section before the date of declaration of the result. Successful completion of 100 hours IT Training means Completion of 100 Hours IT Training. Passing two module tests by securing at least 50 per cent marks in individual tests. Submission of project report. Pass on-line examination and secure 60 (sixty) per cent marks in the aggregate. Students should carefully note that if they do not successfully complete the 100 Hours IT training before the date of declaration of the result of November, 2009 Professional Competence Examination/ Integrated Professional Competence Examination and submit proof of successful completion to the Examination Section, ICAI Bhawan,C-1, Sector 1, Noida-201301 before that date their results are liable to be cancelled. Therefore, they are advised to successfully complete the 100 Hours IT training well before the date of declaration of the result (tentatively 15th January, 2010). In case they experience any difficulty in getting the admission for 100 Hours IT training they should immediately contact Mrs. Indu Arora, Additional Director of Studies, Phone No. 0120-3045927 and email indu@icai.org. CA. R. Devarajan Director, BOS

स्वतंत्रता दिवस की शुभ कामनाए.

सारे जहाँ से अच्छा हिन्दुस्तान हमारा. *********.--,_ ********['****'\. *********\*******`'' ******************,] **********`._******]. *****************\ **********_/*******-'\ *********,'**********,' *******_/'**********\*********************,....__ **--''**************'-;_********\*****/******.,' ***\**********************`--.__,'_*'----*****,-' ***`\*************** '15th August 1947'********\`-'\__****, ,--;/ ********************************************* / \__****** [*******'****/**/* **./**_-,*********************************_*** **\__/*/************************,/********" *****************************_/ ***************************,/ *******\*******************/ **********************/.-' *********\***********_/ *******************/ ******************* ******.************ ******;*****\*******/ ******'*********** *************\****_ **************\_,/ जय हिंद

Extension of Time Limit for Filing ITR V Form

Thursday, August 13, 2009   Ministry of Finance     EXTENSION OF TIME LIMIT FOR FILING ITR-V FORM     20:48 IST       The Central Board of Direct Taxes had, vide circular No.3/2009 dated 21.05.2009, allowed assessees who file their income tax returns in electronic form without digital signature to submit their verified ITR-V form, within a period of 30 days, thereafter. The ITR-V form was required to be sent to Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka-560100, by ordinary post. It has now been decided to extend the time limit for filing the ITR-V form by relaxing the stipulations in the circular dated 21.05.2009. The ITR-V form relating to returns which have been filed electronically (without digital signature) on or after 1st April, 2009 can now be filed on or before the 30th September, 2009 or within a period of 60 days of uploading of the electronic return data, whichever is later. The ITR-V should continue to be sent by ordinary post to Post Bag No.1, Electronic City Post Office, Bengaluru, and Karnataka-560100. HZ/AS

DO NOT DISTURB (DND) by ICAI

The ICAI has started registration for Don Not Disturb (DND) directory. So that you will not get unsolicited calls. If you want to register, follow this link and register yourself:   http://www.icai.org/dnd.html

Certificate of Good Standing

Certificate of Good Standing M&C-MSS SECTION Guidelines for issue of Certificate of Good Standing to the members to pursue further education abroad. The Institute is receiving a large number of requests from members for issue of Certificate of Good Standing. The appropriate Committee of the Council has framed guidelines for issue of certificate of good standing to the members who would like to pursue further education abroad. The same are as under :- The member is required to submit a request for issue of certificate of good standing, stating the purpose for which certificate of good standing is required and submit the communication of the concerned body/institution requiring the same. However, request of member for issue of certificate of good standing will also be considered if the requirement of body/institution specified on website, in application form or prospectus is produced. The request could be either a signed written request or an e-mail in the personal e-mail id of the member. The certificate of good standing will be issued to concerned body/institution in respect of any member if the request is directly received by the Institute from the concerned body/institution. The name of the member is active in the records of the Institute. The member has paid annual membership/certificate of practice fees (if holds certificate of practice) for the current year within specified time. The members desirous of obtaining the certificate of good standing are requested to comply with the above requirements and send their request at the following address :- Joint Secretary (M&SS) The Institute of Chartered Accountants of India Post Box No. 7100, I P Marg, New Delhi - 110 002 Telefax : 011-30110588 E-mail : mss@icai.in, goodstanding@icai.in EXPEDITIOUS ISSUANCE OF CERTIFICATE OF GOOD STANDING (Announcement) Members of the Institute are required to submit Certificate of Good Standing for the purpose of education and employment abroad and also for visa and immigration purposes. In order to help the Institute to provide the certificate expeditiously kindly note the following for compliance : Members are required to submit a request for issue of certificate of good standing. The member may send a signed written request or request on e-mail in his personal e-mail id. and the member is required to specify the purpose for which the certificate of good standing is required and submit the communication of the concerned body/institution requiring the same. However at times it is subject of a condition regulated in application forms, prospectus, instructions sheet, such as for immigration, employment overseas and visa purposes. In such cases no need of a separate letter from University, Visa authorities. A copy of relevant para of application or of instructions sheet or the letter of the said authority be enclosed. In the certificate it would be mentioned that the certificate is required for submission to visa or an immigration authorities. In cases where it is required to be sent directly to the authorities concerned it would be sent only to those and not to the members. Such authorities have raised certain objections when copy of good standing certificate issued by the Institute has been forwarded by the member concerned. The requirement for issuing certificate of good standing is available in the Website of the Institute www.icai.org

Shailesh : Supplementary Deed

DUE TO MEW AMENDMENT AS PER THE  BUDGET AND DUE TO CHANGE IN PARTNER REMUNERATION WHETHER SUPPLEMENTARY DEED IS REQUIRE TO PREPARE?

Rachita: FBT

I need some clarification on Income tax- in view of the ammendments by the Budget 2009-10. FBT has been abolished from the FY 2009-10. It is also proposed to restore the fringe benefit as perquisite in the hands of the employee( e.g. ESOP, contribution to approved superannuation fund, to the extent it exceeds Rs. 100,000, any other which is specified) In this context, what will be the treatment of salary components in the nature of reimbursements( e.g. fuel charges, travel, telephone etc.). Earlier all these were treated as fringe benefit. In view of the recent changes, should all such reimbursements be treated as perquisite or will it be tax free till further notification? Will the earlier provisons apply?

Mayur Gosar:Nature of Income Intra Day Trading

Last year I have started share trading. I have done Intra-day trading and also sold shares after 15 days or 1 Month (i.e. Short term). Will my whole income come under Business income or a part of income will be capital gain and part business Income. My intension at the time of buying was never to  do business and not invest Also please let me know Is basic exemption limit of Rs 1,50,000 available agst speculative income

Jahnvi: Certificate of Good Standing

I want to get Goodstanding certificate from ICAI. I have already emailed ICAI but havent heard anything yet. On what email address should I forward the application?

Minoti: Can father Gift?

Pl help in resolving the following query: 1) Can a father gift to his son an amount more than Rs.20,000 in cash in one day? Does it come  under the tax provision of no cash payments more than Rs 20,000 per person per day.??

Sachin Somani: Mediclaim u/s 80D error in utility

As per amended section 80 D we can take benefit of mediclaim premium paid up to 40,000.00. But if you file return using excel files provided by department it will show suggested deduction as 20,000.00 only. In this case how to file return.

keshav jetsey: New Foreign Remmitances Procedure

Are the new foreign remittance procedures , also applicable for payment for raw materials, foreign exhibitions,fairs, etc.?

MVAT return filling date extended upto 03/08/2009

MVAT return filling date extended upto 03/08/2009 for Returns in which payment is made upto 31/07/09 /Nill reuturns/Refund.   MVAT Help desks are open on Sunday 2nd August 2009   www.mahavat.gov.in

Security tips filing to be followed while filing online tax returns...Useful..

Security tips filing taxes online…   It's that time of the year again when you need to file your end of year income tax return, but is the plethora of paperwork bogging you down? The Indian government has just made things easier by launching the facility of filing your income tax returns online.   The advantages of filing your income tax returns online are plentiful. For instance, you can file your returns anytime, anywhere, away from the prying eyes of others and within the confines of your own home.   However, you do need to ensure you protect your personal information online. It is no coincidence that identity theft rate related to tax return filing rises in keeping with the increasing popularity of online tax filing. With thousands of Indian taxpayers heading online to file their returns in time for the Tax Day deadline, VeriSign, Inc., the trusted provider of Internet infrastructure services for the networked world, is offering five easy-to-follow tips for Indian tax payers to protect themselves. 1. Be skeptical of emails that feature Web links. Those links can be part of a phishing scam that takes you to look-alike Web pages designed to steal your sensitive personal information, from PAN numbers to credit card account information. If you need to log in, do so independently and through the log-in Web page – not by clicking on a link.   2. When you go to file your taxes, make sure you've reached the correct site. One easy way is to look for a green address bar that indicates that the Web site is authentic.   3. Make sure you're entering your personal information in a secured session by looking for https:// A Web address beginning with "https" means that that there is an encrypted connection between your browser and the Web site's server, indicating that your communications are secure and cannot be intercepted.   4. When you finish your taxes, be sure you've logged out of your session. If you don't log out, fraudsters can potentially log in to your session after you leave the site. 5. Do not respond to any tax issues or requests using fax. You might receive a email scam requesting for a fax with personal information to be sent back to "The Income Tax Department." The Income Tax Department will never request personal information via fax.   With these simple precautions, you can file your taxes online with confidence.

Amendments to Finance (No.2) Bill,2009

Tax Management India .Com

Amendments to Finance (No.2) Bill, 2009

Fiance Minister's reply to the debate on Finance (No.2) Bill,2009 in lok Sabha List No. 3 LOK SABHA FINANCE (No. 2), BILL, 2009 (As Introduced in Lok Sabha) Notice of Amendments Sl. No. Name of Member and text of Amendment Clause No SHRI PRANAB MUKHERJEE 11. Page 4, for lines 61 and 62 substitute - '(d) in clause (24), - (i) in sub-clause (iia), after the word and figures 'section 10", the words "or by an electoral trust" shall be inserted with effect from the 1st day of April, 2020; (ii) after sub-clause (xiv), the following sub-clause shall be inserted with effect from the 1st day of October, 2009, namely : - "(xv) any sum of money or value of property referred to in clause (vii) of sub-section 2 of section 56;";. 3 12. Page 5, for lines 51 and 52 substitute, - Amendment of section 17. '9. In section 17 of the Income-tax Act, in clause (2), with effect from the 1st day of April, 2010,- (a) in sub-clause (v), for the words "annuity; and", the word "annuity;" shall be substituted, (b) for sub-clause (vi), the following sub-clauses shall be substituted, namely : - 9 13. Page 6, in line 19, for "one lakh rupees;", substitute "one lakh rupees; and" 9 14. Page 6, after line 39 insert, - "Provided that the expenditure incurred, wholly and exclusively, for the purposes of any specified business, shall be allowed as deduction during the previous year in which he commences operations of his specified business, if - (a) the expenditure in incurred prior to the commencement of its operation; and (b) the amount is capitalised in the books of account of the assessee on the date of commencement of its operations,". 13 15. Page 10, for lines 5 to 10, substitute - Amendment of section 49. - '23. In section 49 of the Income-tax Act, - (a) for sub-section (2AA), the following sub-Section shall be substituted with effect from the 1st day of April, 2010, namely : - "(2AA) Where the capital gain arises from the transfer of specified security or sweat equity shares referred to in sub-clause (vi) of clause (2) of section 17, the cost of acquisition of such security or shares shall be the fair market value which has been taken into account for the purposes of the said sub-clause.;" (b) after sub-section (3), the following sub-section shall be inserted with effect from the 1st day of October, 2009, namely : - "(4) Where the capital gain arises from the transfer of a property, the value of which has been subject to income tax under clause (vii) of sub-section (2) of section 56, the cost of acquisition of such property shall be deemed to be the value which has been taken into account for the purposes of the said clause (vii)."'. 23 16. Page 10, for lines 11 and 12, substitute - Amendment of section 50B - "24. In section 50B of the Income-tax Act, in Explanation 2 with effect from the 1st day of April, 2010,- (i) in clause (a), the words "and" occurring at the end shall be omitted; (ii) for clause (b), the following clauses shall be substituted, namely : -". 24 17. Page 10, in line 51, for "that section", substitute "those section". 26 18. Page 11, for line 30, substitute - "referred to in clause (b) of section 145A.". 26 19. Page 12, for lines 37 to 40, substitute - '(a) in sub-section (I) (i) in the opening portion, after the words, figures and letters "Where an assessee, being an individual employed by the Central Government or any other employer on or after the 1st day of January, 2004,", the words "or any other assessee, being an individual" shall be inserted; (ii) for the words "as does not exceed ten per cent. of his salary in the previous year", the following words shall be substituted, namely : - "as does not exceed, - (a) in the case of an employee, ten per cent, of his salary in the previous year; and (b) in any other case, ten per cent, of this gross total income in the previous year:,;   30" 20. Page 12, for lines 48 and 49, substitute- Amendment of section 80E. 32. In section 80E of the Income tax Act, in sub-section (3), with effect from the 1st day of April, 2010,- (i) for clause (C), the following cause shall be substituted, namely:- 32 21. Page 12, after line 53, insert- (ii) for clause (e) the following clause shall be substituted namely:- (e) "relative", in relation to an individual, means the spouse and children of the individual or the student for whom the individual is the legal guardian.' 32 22. Page 13, in line 8, for "in sub-section (i)" substitute" in sub-section (2)". 36 23. Page 13, for line 12, substitute- '(c) in sub-section (4) - (A) in clause (iii), in the second proviso, for the words, figures and letters "the 31st day of March, 2009" the words, figures and letterers "the 31st day of March, 2011" shall be substituted'. 36 24. Page 13, line 13, for "(A)" substitute "(B)" 36 25. Page 13, line line 15, for "(B)" substitute "(C)" 36 26. age 13, line 18, for "(C)" substitute "(D)" 36 27 Page 13, line 46, for "following clause, " substitute " following clauses" 37 28. Page 13, after line, 52, insert- "(V) is engaged in commercial production of natural gas in blocks licensed under the IV Round of bidding for award of exploration contracts for Coal Bed Methane blocks and begins commercial production of natural gas on or after the 1st day of April, 2009, 37 29 Page 13, for lines 53 to 55, substitute - '(c) in sub-section (10),- (i) in the opening portion, for the figures, letters and words "31st day of March, 2007" the figures, letters and words "31st day of March, 2008" shall be substituted; (ii) in clause (c), for the words "any other place; and", the words "any other place;" shall be substituted with effect from the 1st day of April, 2010; (iii) after clause (d), the following clauses shall be inserted with effect from the 1st day of April, 2010, namely:-' 37 30. Page 13, for line 60, substitute - "(i) the individual or the spouse or the minor children of such individual,". 37 31. Page 13, in line 64, for "(ii)", substitute "(iv)". 37 32. Page 13, after line 68, insert - '(d) in sub-section (11A), with effect from the 1st day of April, 2010,- (i) after the words "vegetables or", the following words shall be inserted, namely:- "meat and meat products or poultry or marine or dairy products or"; (ii) the following proviso shall be inserted, namely:- "Provided that the provisions of this section shall not apply to an undertaking engaged in the business of processing, preservation and packaging of meat or meat products or poultry or marine or dairy products if it begins to operate such business before the 1st day of April, 2009.".'. 37 33. Page 13, after line 68, insert- Amendment of section 80-U. 37A. In section 80 U of the Income-tax Act, in subsection (l), after the proviso, the following proviso shall be inserted with effect from the 1st day of April, 2010, namely:- "Provided further that for the assessment years beginning on or after the 1st day of April, 2010, the provisions of the first proviso shall have effect as if for the words "seventy-five thousand rupees", the words "one lakh rupees: had been substituted.".'. New clause 37 A 34. Page 15, for lines 4 to 9, substitute - '(i) the amount of income-tax calculated at the rate of thirty per cent on the aggregate of anonymous donation received in excess of the higher of the following, namely:- (A) five per cent of the total donations received by the assessee, or (B) one lakh rupees; and"; (b) for clause (ii) the following clause shall be substituted, namely:- "(ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations received.".'. 42 35. Page 22, for line 37 to 40, substitute- Amendment of section 246A. "71. In section (I), with effect from the 1st day of October, 2009,- (i) in clause (a), for the words brackets and figures "under sub-section (3) of section 143", the words, brackets and figures "under sub. section (3) of section 143 except an order passed in pursuance of directions of the Dispute Resolution Panel" shall be substituted. (ii) in clause (b) after the words and figures "under section 147", the words "except an order passed in pursuance of directions of the Dispute Resolution Panel" shall be inserted.". 71 36. Page 22, for line 41 substitute- Amendment of section 253. '72. In section 253 of the income-tax Act, in sub-section (I) with effect from the 1st day of October, 2009,- (a) in clause (c) for the words, figures and letter "Director under section 272A.", the words, figures and letter "Director under section 272A; or" shall be substituted; (b) after clause (c), the following clause shall be inserted, namely.-' 72 37. Page 23, omit line 1. 72 38. Page 23, for line 2, substitute - "(d) an order passed by an Assessing Officer under sub-section (3) of section 143 or section 147 in pursuance". 72 39. Page 24, for lines 17 and 18, substitute- Power to withdraw approval. "293C. Where the Central Government or the Board or an income-tax authority, who has been conferred upon the power under any provision of this Act to grant any approval to any assessee, the Central Government or the Board or such authority may; notwithstanding," 78 40. Page 24, line 21, for "income-tax authority", substitute "Central Government or Board or income-tax authority.". 78 P.D.T. ACHARY Secretary-General Dated : July 24, 2009Srawana 2, 1931 (Saka) List No 4 LOK SABHA FINANCE (NO.2) BILL, 2009 (As introduced in Lok Sabha) Notice of Motion under Rule 388 SHRI PRANAB MUKHERJEE: Sl. No Name of Member and Text of Motion Clause No   41. "That this House do suspend clause (i) of rule 80 of Rules of Procedure and conduct of Business in Lok Sabha in so far as it requires that an amendment shall be within the scope of the Bill and relevant to the subject matter of the clause to which it relates, in its application to the Government amendment No. 33 to the Finance (No.2) Bill, 2009 and that this amendment may be allowed to be moved." 37A (New) Vide Amendment list No. 3 circulated on 24.7.2009. New Delhi; Dated : July 24, 2009 P D T Achary, Secretary-General.

Amendments to Finance (No.2) Bill, 2009 Fiance Minister's reply to the debate on Finance (No.2) Bill,2009 in lok Sabha List No. 3 LOK SABHA FINANCE (No. 2), BILL, 2009 (As Introduced in Lok Sabha) Notice of Amendments Sl. No. Name of Member and text of Amendment Clause No SHRI PRANAB MUKHERJEE 11. Page 4, for lines 61 and 62 substitute - '(d) in clause (24), - (i) in sub-clause (iia), after the word and figures 'section 10", the words "or by an electoral trust" shall be inserted with effect from the 1st day of April, 2020; (ii) after sub-clause (xiv), the following sub-clause shall be inserted with effect from the 1st day of October, 2009, namely : - "(xv) any sum of money or value of property referred to in clause (vii) of sub-section 2 of section 56;";. 3 12. Page 5, for lines 51 and 52 substitute, - Amendment of section 17. '9. In section 17 of the Income-tax Act, in clause (2), with effect from the 1st day of April, 2010,- (a) in sub-clause (v), for the words "annuity; and", the word "annuity;" shall be substituted, (b) for sub-clause (vi), the following sub-clauses shall be substituted, namely : - 9 13. Page 6, in line 19, for "one lakh rupees;", substitute "one lakh rupees; and" 9 14. Page 6, after line 39 insert, - "Provided that the expenditure incurred, wholly and exclusively, for the purposes of any specified business, shall be allowed as deduction during the previous year in which he commences operations of his specified business, if - (a) the expenditure in incurred prior to the commencement of its operation; and (b) the amount is capitalised in the books of account of the assessee on the date of commencement of its operations,". 13 15. Page 10, for lines 5 to 10, substitute - Amendment of section 49. - '23. In section 49 of the Income-tax Act, - (a) for sub-section (2AA), the following sub-Section shall be substituted with effect from the 1st day of April, 2010, namely : - "(2AA) Where the capital gain arises from the transfer of specified security or sweat equity shares referred to in sub-clause (vi) of clause (2) of section 17, the cost of acquisition of such security or shares shall be the fair market value which has been taken into account for the purposes of the said sub-clause.;" (b) after sub-section (3), the following sub-section shall be inserted with effect from the 1st day of October, 2009, namely : - "(4) Where the capital gain arises from the transfer of a property, the value of which has been subject to income tax under clause (vii) of sub-section (2) of section 56, the cost of acquisition of such property shall be deemed to be the value which has been taken into account for the purposes of the said clause (vii)."'. 23 16. Page 10, for lines 11 and 12, substitute - Amendment of section 50B - "24. In section 50B of the Income-tax Act, in Explanation 2 with effect from the 1st day of April, 2010,- (i) in clause (a), the words "and" occurring at the end shall be omitted; (ii) for clause (b), the following clauses shall be substituted, namely : -". 24 17. Page 10, in line 51, for "that section", substitute "those section". 26 18. Page 11, for line 30, substitute - "referred to in clause (b) of section 145A.". 26 19. Page 12, for lines 37 to 40, substitute - '(a) in sub-section (I) (i) in the opening portion, after the words, figures and letters "Where an assessee, being an individual employed by the Central Government or any other employer on or after the 1st day of January, 2004,", the words "or any other assessee, being an individual" shall be inserted; (ii) for the words "as does not exceed ten per cent. of his salary in the previous year", the following words shall be substituted, namely : - "as does not exceed, - (a) in the case of an employee, ten per cent, of his salary in the previous year; and (b) in any other case, ten per cent, of this gross total income in the previous year:,;   30" 20. Page 12, for lines 48 and 49, substitute- Amendment of section 80E. 32. In section 80E of the Income tax Act, in sub-section (3), with effect from the 1st day of April, 2010,- (i) for clause (C), the following cause shall be substituted, namely:- 32 21. Page 12, after line 53, insert- (ii) for clause (e) the following clause shall be substituted namely:- (e) "relative", in relation to an individual, means the spouse and children of the individual or the student for whom the individual is the legal guardian.' 32 22. Page 13, in line 8, for "in sub-section (i)" substitute" in sub-section (2)". 36 23. Page 13, for line 12, substitute- '(c) in sub-section (4) - (A) in clause (iii), in the second proviso, for the words, figures and letters "the 31st day of March, 2009" the words, figures and letterers "the 31st day of March, 2011" shall be substituted'. 36 24. Page 13, line 13, for "(A)" substitute "(B)" 36 25. Page 13, line line 15, for "(B)" substitute "(C)" 36 26. age 13, line 18, for "(C)" substitute "(D)" 36 27 Page 13, line 46, for "following clause, " substitute " following clauses" 37 28. Page 13, after line, 52, insert- "(V) is engaged in commercial production of natural gas in blocks licensed under the IV Round of bidding for award of exploration contracts for Coal Bed Methane blocks and begins commercial production of natural gas on or after the 1st day of April, 2009, 37 29 Page 13, for lines 53 to 55, substitute - '(c) in sub-section (10),- (i) in the opening portion, for the figures, letters and words "31st day of March, 2007" the figures, letters and words "31st day of March, 2008" shall be substituted; (ii) in clause (c), for the words "any other place; and", the words "any other place;" shall be substituted with effect from the 1st day of April, 2010; (iii) after clause (d), the following clauses shall be inserted with effect from the 1st day of April, 2010, namely:-' 37 30. Page 13, for line 60, substitute - "(i) the individual or the spouse or the minor children of such individual,". 37 31. Page 13, in line 64, for "(ii)", substitute "(iv)". 37 32. Page 13, after line 68, insert - '(d) in sub-section (11A), with effect from the 1st day of April, 2010,- (i) after the words "vegetables or", the following words shall be inserted, namely:- "meat and meat products or poultry or marine or dairy products or"; (ii) the following proviso shall be inserted, namely:- "Provided that the provisions of this section shall not apply to an undertaking engaged in the business of processing, preservation and packaging of meat or meat products or poultry or marine or dairy products if it begins to operate such business before the 1st day of April, 2009.".'. 37 33. Page 13, after line 68, insert- Amendment of section 80-U. 37A. In section 80 U of the Income-tax Act, in subsection (l), after the proviso, the following proviso shall be inserted with effect from the 1st day of April, 2010, namely:- "Provided further that for the assessment years beginning on or after the 1st day of April, 2010, the provisions of the first proviso shall have effect as if for the words "seventy-five thousand rupees", the words "one lakh rupees: had been substituted.".'. New clause 37 A 34. Page 15, for lines 4 to 9, substitute - '(i) the amount of income-tax calculated at the rate of thirty per cent on the aggregate of anonymous donation received in excess of the higher of the following, namely:- (A) five per cent of the total donations received by the assessee, or (B) one lakh rupees; and"; (b) for clause (ii) the following clause shall be substituted, namely:- "(ii) the amount of income-tax with which the assessee would have been chargeable had his total income been reduced by the aggregate of anonymous donations received.".'. 42 35. Page 22, for line 37 to 40, substitute- Amendment of section 246A. "71. In section (I), with effect from the 1st day of October, 2009,- (i) in clause (a), for the words brackets and figures "under sub-section (3) of section 143", the words, brackets and figures "under sub. section (3) of section 143 except an order passed in pursuance of directions of the Dispute Resolution Panel" shall be substituted. (ii) in clause (b) after the words and figures "under section 147", the words "except an order passed in pursuance of directions of the Dispute Resolution Panel" shall be inserted.". 71 36. Page 22, for line 41 substitute- Amendment of section 253. '72. In section 253 of the income-tax Act, in sub-section (I) with effect from the 1st day of October, 2009,- (a) in clause (c) for the words, figures and letter "Director under section 272A.", the words, figures and letter "Director under section 272A; or" shall be substituted; (b) after clause (c), the following clause shall be inserted, namely.-' 72 37. Page 23, omit line 1. 72 38. Page 23, for line 2, substitute - "(d) an order passed by an Assessing Officer under sub-section (3) of section 143 or section 147 in pursuance". 72 39. Page 24, for lines 17 and 18, substitute- Power to withdraw approval. "293C. Where the Central Government or the Board or an income-tax authority, who has been conferred upon the power under any provision of this Act to grant any approval to any assessee, the Central Government or the Board or such authority may; notwithstanding," 78 40. Page 24, line 21, for "income-tax authority", substitute "Central Government or Board or income-tax authority.". 78 P.D.T. ACHARY Secretary-General Dated : July 24, 2009Srawana 2, 1931 (Saka) List No 4 LOK SABHA FINANCE (NO.2) BILL, 2009 (As introduced in Lok Sabha) Notice of Motion under Rule 388 SHRI PRANAB MUKHERJEE: Sl. No Name of Member and Text of Motion Clause No   41. "That this House do suspend clause (i) of rule 80 of Rules of Procedure and conduct of Business in Lok Sabha in so far as it requires that an amendment shall be within the scope of the Bill and relevant to the subject matter of the clause to which it relates, in its application to the Government amendment No. 33 to the Finance (No.2) Bill, 2009 and that this amendment may be allowed to be moved." 37A (New) Vide Amendment list No. 3 circulated on 24.7.2009. New Delhi; Dated : July 24, 2009 P D T Achary, Secretary-General.

CPE Credit Requirements for Members of the Institute

We would like to inform the members, the CPE Credit Requirements for the rolling period of three years starting from the calendar year 2008 as given below:

CPE Credit Requirements for members of the Institute

• All the members who are holding Certificate of Practice (except those members who are residing abroad), unless exempted, are required to:
1. Complete at least 90 CPE credit hours in each rolling three-year period of which 60 CPE credit hours should be of structured learning.
2. Complete minimum 20 CPE credit hours of structured learning in each year.

• All the members who are not holding Certificate of Practice or are residing abroad (whether holding Certificate of Practice or not), unless exempted, are required to:
1. Complete at least 45 CPE credit hours of structured/unstructured learning in each rolling three-year period
2. Complete minimum 10 CPE credit hours of structured/unstructured learning in each year.

Dear Member,

To facilitate the members to submit the Self Declaration form for Unstructured learning hours for calendar years 2011-13, in the link given below, the format of the same is available at

http://www.cpeicai.org/Advisory-Unstructured%20Learning%20Activities.pdf

Important Announcement for Members attaining the age of 60 years or are at present of the age of 60 years and above - 26-05-2008

The Council of the Institute, at its 278th meeting held on May 13-15, 2008, has decided to make the CPE hours requirements mandatory, w.e.f. 15th May 2008, also for the members of the Institute, who are attaining the age of 60 years during a particular calendar year within 2008-2010 or are at present of the age of 60 years and above. Such members could, however, complete their CPE requirements either by structured or unstructured CPE learning activities.     Accordingly, Clause 6.2 (a) of the Statement on Continuing Professional Education, 2003 (as amended in August, 2006), which says that the requirements of this Statement shall not apply to a member who attains the age of 60 years during a particular calendar year, stands deleted.     In view of the fact that the CPE requirements for the members attaining the age of 60 years during a particular calendar year within 2008-2010 or are at present of the age of 60 years and above, are being made mandatory after passing of 4 ½ months in the three-years rolling period starting from the calendar year 2008, the Council has decided to proportionately reduce the CPE requirements for these members for the rolling period of 2008-2010. Hence, the CPE Credit Hours Requirements are as under:   All the members attaining the age of 60 years during a particular calendar year within 2008-2010 or are at present of the age of 60 years and above and holding Certificate of Practice (except those members who are residing abroad), unless exempted, are required to: ·         Complete at least 70 CPE credit hours in each rolling three-year period either through structured or unstructured learning. ·         Complete minimum 10 CPE Credit hours in the year 2008 and minimum 20 CPE Credit hours in 2009 and 2010. All the members attaining the age of 60 years during a particular calendar year within 2008-2010 or are at present of the age of 60 years and above and not holding Certificate of Practice or are residing abroad, unless exempted, are required to: ·         Complete at least 35 CPE credit hours in each rolling three-year period either through structured or unstructured learning. ·         Complete minimum 5 CPE Credit hours in the year 2008 and minimum 10 CPE Credit hours in 2009 and 2010. The Council has also approved a new CPE Advisory on Unstructured CPE Learning Activities. This Advisory is meant as guidance and direction to the members who want to avail CPE Credits through Unstructured Learning Activities. The advisory includes the details about the unstructured learning activities and the ways in which these can be undertaken. The members are required to submit a Self-Declaration Form to the Institute once in a year to avail the CPE Hours Credit.

Collage