News Update

First course on Sustainable Urban Planning launchedScience & technology to be harnessed for preservation of environment: Dr Harsh VardhanMilk production registers 20% growthSteel Industry seeks removal of Customs duty on raw materialsFake encounter - SC asks SIT to wrap up probe in 12 FIRs by Feb-endHaryana also bans release of ‘Padmavat’I-T - When doings of assessee are not found to be not above board, it does not deserve invocation of extraordinary jurisdiction of HC under Art 226: HCPublic art should be part of urban planning: PuriGSTN technical glitches to be reviewed by Sushil Modi-headed Committee tomorrowCX - Without canteen, factory would not be allowed to operate under Factories Act, 1948 - Outdoor catering services, not primarily for personal use or consumption of employee, is covered under definition of Input service: CESTATCENVAT - Services of merger has no relation with manufacture - Even if order goes beyond the SCN, same is not an error of a kind which can be rectified by a ROM application: CESTATSettle disputes of earlier regimeIndia-Israel talk - PM lists GST & transparent tax system as one of his Govt’s achievements; promises more reformsExports continue to grow; log 12.3% growth in Dec, 2017IT Minister launches gigabit link between India and LankaCustoms - CBEC classifies Antenna used at BTS under CTH 8517 62 90Nepal, B'desh, Bhutan & India about to close pax protocolDec, 2017 records 11.76 lakh foreign tourist arrivalsFATCA - CBDT issues fresh direction on US TIN for pre-existing accounts (See 'TII Brief')GSTIN, UIN/PAN suffices for KYC verification - Board simplifies normsTelecommunication Antenna used at Base Transceiver station/NodeB/eNodeB in a wireless telecommunication network is correctly classifiable under CTH 8517 6290I-T - A financial transaction within the family members is not covered by provisions of Sec 269SS: ITATe-Way Bill pilot to commence tomorrow; States to notify it for Intra-State before JuneST - Rule 6(3) of CCR, 2004 - Writing off of loans as non-performing assets, whether exempted service - Matter remanded: CESTATI-T - Benefit of exemption u/s 54F is not limited to investments made on claimants' name only: HC
Untitled Document

MINISTRY OF LAW AND JUSTICE
(Legislative Department)

Dated : October 31, 2005

THE TAXATION LAWS (AMENDMENT) ORDINANCE, 2005
No. 4 of 2005

Promulgated by the President in the Fifty-sixth Year of the Republic of India.

An Ordinance further to amend the Income-tax Act, 1961 and the Finance Act, 2005.

Whereas Parliament is not in session and the President is satisfied that circumstances exist which render it necessary for him to take immediate action;

NOW, THEREFORE, in exercise of the power conferred by clause (1) of article 123 of the Constitution the President is pleased to promulgate the following Ordinance :

CHAPTER I

PRELIMINARY

1. (1) This Ordinance may be called the Taxation Laws (Amendment) Ordinance, 2005.

 

Short title and commencement.
(2) It shall come into force at once.  

CHAPTER II

AMENDMENTS TO THE INCOME-TAX ACT, 1961

Amendment of section 10.

 

    
2. In section 10 of the Income-tax Act, 1961 (hereafter in this Chapter referred to as the Income-tax Act), with effect from the 1st day of April, 2006,

(a) in clause (6BB), for the words, figures and letters "or entered into after the 30th day of September 2005 and approved by the Central government in this behalf, the words, figures and letter "or entered into after the 31st day of March, 2006 and approved by the Central Government in this behalf" shall be substituted;

(b) in clause (15A) in the proviso, for the words, figures and letter "the 1st day of October, 2005", the words, figures and letter "the 1st day of April, 2006" shall be substituted;

(c) after clause (38), the following clauses shall be inserted, namely:-

'(39) any specified income arising, from any international sporting even held in India, to the person or persons notified by the Central Government in the Official Gazette, if such international sporting event -

(a) is approved by the international body regulating the international sport relating to such event;

(b) has participation by more than two countries;

(c) is notified by the Central Government in the Official Gazette for the purpose of this clause.

Explanation - For the purpose of this clause, "the specified income" means the income, of the nature and to the extent arising from the international sporting event, which the Central Government may notify in this behalf;

(40) any income of any subsidiary company by way of grant or otherwise received from an Indian company, being its holding company engaged in the business of generation, transmission of distribution of power if such receipt is for settlement of dues in connection with reconstruction or revival of an existing business of power generation:

Provided that the provisions of this clause shall apply is reconstruction or revival of any existing business of power generation is by way of transfer of such business to the India company notified under sub-clause (a) of clause (v) of sub-section (4) of section 80-IA;

(41) any income arising from transfer of a capital asset, being an asset of an undertaking engaged in the business of generation, transmission of distribution of power where such transfer is effected on or before the 31st day of March, 2006 to the Indian Company notified under sub-clause (a) of clause (v) of sub-section (4) of section 80-IA.'
43 of 1961.    
     
  
3. In section 80-IA of the Income-tax Act, in sub-section (4), after clause (iv), the following clause shall be inserted with effect from the 1st day of April, 2006, namely :

"(v) un undertaking owned by an India company and set up for reconstruction or revival of a power generating plant, if -

(a) such Indian company is formed before the 30th day of November, 2005, with majority equity participation by public sector companies for the purposes of enforcing the security interest of the landers to the company owning the power generating plant and such India company is notified before the 31st day of December, 2005 by the Central Government for the purpose of this clause;

(b) such undertaking begins to generate or transmit or distribute power before the 31st day of March, 2007.".

Amendment of section 80-IA. 
     
 

4. In section 115W of the Income-tax Act, in clause (a) with effect from the 1st day of April, 2006, -

(a) for sub-clause (iii), the following sub-clause shall be substituted, namely :

"(iii) an association of persons or a body of individuals, whether incorporated or not;";

(b) after sub-clause (v) the following proviso shall be inserted, namely : -

 

Amendment of section 115W.
43 of 1951.
Provided that any person eligible for exemption under clause (23C) of section 10 or registered under section 12AA or a political party registered under section 29A of the Representation of the People Act, 1951 shall not be deemed to be an employer for the purpose of this Chapter,"
 

CHAPTER III

AMENDMENT TO THE FINANCE ACT, 2005

18 of 2005

5. In Chapter VII of the Finance Act, 2005 (hereafter in this Chapter referred to as the Finance Act), in section 94, with effect from the 1st day of June, 2005,

(a) after clause (3), the following clause shall be inserted and shall be deemed to have been inserted, namely : -

Amendment of section 94.
     
10 of 1949.

'(3A) "banking company" means a company to which the Banking Regulation Act 1949 applies and includes any bank referred to in section 51 of that Act;';

(b) after clause (4), the following clause shall be inserted and shall be deemed to have been inserted, namely : -

 
     
10 of 1949.
'(4A) "co-operative bank" shall have the meaning assigned to it in Part V of the Banking Regulation Act, 1949;'.
 
     
Insertion of new section 112A.
6. In Chapter VII of the Finance Act, after section 112, the following section shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2005, namely :
 
     
This Chapter not to apply in certain cases.

"112A. The provisions of this Chapter shall not apply to, or in relation to, the taxable banking transactions entered into on or after the 1st day of June, 2005,-

(a) between a scheduled bank and a banking company or a co-operative bank; or

(b) between a scheduled bank and another scheduled bank.".

 

A.P.J. ABDUL KALAM,
President


 

T K VISWANATHAN,
Secy. To the Govt. of India.