The current and proposed provisions in relation to schedule of advance tax payment are as follows:-

Consequential amendments are proposed in Section 234C to bring it in sync with the above amendments. Further, it is proposed to amend Section 234C to include that interest under Section 234C shall not be chargeable in case the assessee has income under the head “Profits and gains of business or profession” for the first time, subject to prescribed conditions.

The above amendments shall provide greater accuracy in collection of taxes and shall be a boost for small businesses and start-ups.

These amendments will take effect from 1st day of June, 2016.

It is proposed to amend the time limit for completion of assessments made under Section 153A or Section 153C cases as follows:-

The provisions of Section 153B, as they stood before the amendment by Finance Act, 2016, shall apply to and in relation to any order of assessment, reassessment or recomputation made before the 01.06.2016.

The amendment will take effect from 1st day of June, 2016.

In view of increased efficiency within the Department in handling assessments, the following changes in time limits for completion of assessment are proposed:

It is further proposed that where assessment proceedings are stayed by any court or where a reference for exchange of information has been made by the competent authority and consequent to this, where the time available to Transfer Pricing Officer is less than 60 days, it shall be extended to 60 days and consequential changes shall be made in time limit for completion of assessment or reassessment by the Assessing Officer

The provisions of Section 153, as they stood before amendments by Finance Act, 2016, shall apply to and in relation to any order of assessment, reassessment or recomputation made before the 01.06.2016.

The amendment will take effect from 1st day of June, 2016.

Under the existing provisions of the Act, processing of a return is not necessary if notice has to be issued to the assessee for scrutiny assessment.

Thus, it is proposed to amend the said provisions to provide that a return shall be processed and a summary assessment shall be done compulsorily before initiating a scrutiny assessment

This amendment would help in completing the scrutiny assessment at a much faster pace with reduced litigative issues. Refund orders under Section 143 (1) shall now be compulsorily issued prior to issuing notices for scrutiny. This is a huge relief for assessees claiming refunds especially high value refunds.

The amendment will take effect from the 1st day of April, 2017 and will, accordingly apply in relation to assessment year 2017-2018 and subsequent years.

As per Section 139 (1) of the Act, a person is required to file the return of income if its total income, before deductions, exceeds the basic exemption limit. Further, the Act contains the provisions in relation to time limit for filing belated returns and revised returns. Furthermore, there is a provision in the Act which provides that the return shall be considered as defective if it is filed with self assessment tax payable.

It is proposed to amend the time limit to file belated returns and widen the scope of revised returns. The time limit to file the belated return is amended to be, end of assessment year or before completion of assessment, whichever is earlier. Further, the provision of revised return is amended to include belated returns as well. Thus, even if the return is filed after the due date prescribed in Section 139 (1), the same can be revised within 1 year from the end of assessment year or completion of assessment, whichever is earlier.

It is further proposed that the return shall not be considered as defective if it is filed without making the payment of self assessment tax. Additionally, Section 139 (1) is amended to consider that if a person earns an income under Section 10 (38), which exceeds the basic exemption limit, he has to file the return of income within the due date specified under Section 139 (1), even though the said income is exempt from tax.

The above amendments shall streamline the filing of returns, including belated returns and further, it shall monitor the transaction dealings of assesses in capital gains transactions.

These amendments will take effect from 1st day of April, 2017 and will, accordingly apply in relation to assessment year 2017-2018 and subsequent years.

In order to encourage trading of rough diamonds in India, a Special Notified Zone has been created which would permit leading mining companies across the world to trade in India.

However, as per the existing provisions of Section 5 & Section 9, pursuant to trading, displaying of uncut diamonds by foreign companies creates Business Connection in India with potential tax exposure which discourages the foreign mining companies to have business dealings in India.

Thus, it is proposed to amend Section 9 to provide that in case foreign company is engaged in business of mining of diamonds, no income shall be deemed to accrue or arise in India through or from activities which are in relation to display of uncut and un-assorted diamonds in Special Zone notified by Central Government in this regard.

The amendment is effective retrospectively from 1st April 2016 (applicable for FY 15 -16).

Under the existing provision of Section 194I, TDS has to be deducted at the rate of 10% by the person making the payment of rent to the recipient if the total rent in the entire year exceeds Rs. 1,80,000.

There may be instances, where the total income of the recipient of rent, including the rental payments, shall be below the basic exemption limit, on which no tax is payable.

Thus, in order to reduce compliance burden in such cases, it is proposed to amend the provisions of Section 197A for allowing the recipients of rental payments to file self-declaration in Form No. 15G/15H for non-deduction of tax at source.

This is a huge step for property owners, especially senior citizens, who only rely on property income for survival.

This amendment will take effect from 1st June, 2016.

The provision of withholding requires every person who is responsible for payment of anyspecified sum to any person shall deduct tax at source at the prescribed rate and deposit it with the Central Government within specified time if the sum exceeds the prescribed amount.

In order to rationalise the rates and base for TDS provisions, the existing threshold limit for deduction of tax at source and the rates of deduction of tax at source are proposed to be revised as mentioned in following tables respectively

INCREASE IN THRESHOLD LIMIT OF DEDUCTION OF TAX AT SOURCE ON VARIOUS PAYMENTS MENTIONED IN THE RELEVANT SECTIONS OF THE ACT

REVISION IN RATES OF DEDUCTION OF TAX AT SOURCE ON VARIOUS PAYMENTS MENTIONED IN THE RELEVANT SECTIONS OF THE ACT:

CERTAIN NON-OPERATIONAL PROVISIONS TO BE OMITTED, WHICH ARE AS FOLLOWS:

These amendments will take effect from 1st June, 2016.

Currently under Section 10(34), any dividend, on which Dividend Distribution Tax is paid by the Company under Section 1150, are exempt in the hands of the recipient.

It is proposed to tax the dividends received from the domestic company by individual, HUF or Firm, who are resident in India. The dividends received by individual, HUF or Firm, who are resident in India from the domestic company, shall be taxed at the rate of 10% in excess of Rs. 10 lakhs.

However, it shall be noted that no deduction in respect of any expenditure or set off of any loss would be allowed in computing such dividends in the hands of recipients.

For example, if the total dividend received by a resident Individual is Rs 15 lakhs, tax shall be levied only on Rs 5 lakhs i.e. dividends in excess of Rs 10 lakhs

These amendments are proposed to be made effective from the 1st day of April, 2017 and shall accordingly apply in relation to assessment year 2017-18 and subsequent years.