Taxation Laws (Amendment) Ordinance, 2019

Sep 23, 2019 | by Avantis RegTech Legal Research Team


The Central Board of Direct Taxes (CBDT) on September 20, 2019, has published the Taxation Laws (Amendment) Ordinance, 2019 to further amend the Income Tax Act, 1961 and the Finance Act, 2019.

Ø  Some of the major amendments in the Income Tax Act, 1961 are as under:

1.       Amendments in Section 115BA which will be effective from April 01, 2020:

(i)                  The marginal heading “Tax on income of certain domestic companies” has been substituted with “Tax on income of certain domestic manufacturing companies”.

(ii)                Under sub-section (4), after the proviso, the following proviso shall be inserted, namely:

Provided further that where the person exercises option under section 115BAB, the option under this section may be withdrawn.

2.       Amendment in Section 115JB which specifies the special provision for payment of tax by certain companies, will be effective from April 01, 2020:

Under sub-section (1), the following proviso shall be inserted, namely:

Provided that for the previous year relevant to the assessment year commencing on or after the April 01, 2020, the provisions of this sub-section shall have effect as if for the words “eighteen and one-half per cent.”, occurring at both the places, the words “fifteen per cent.”.

3.       Insertion of new Sections, namely:

(i)               Section 115BAA: Tax on income of certain domestic Companies. This section shall be inserted from April 01, 2020.

(ii)             Section 115BAB: Tax on income of certain new domestic manufacturing companies. This section shall be inserted from April 01, 2020.

4.       Amendments in Section 115QA which specifies the provisions for tax on distributed income to shareholders:

Under sub-section (1), the following proviso shall be inserted and shall be deemed to have been inserted with effect from July 05, 2019, namely:

Provided that the provisions of this sub-section shall not apply to such buy-back of shares (being the shares listed on a recognized stock exchange), in respect of which public announcement has been made before July 05, 2019 in accordance with the provisions of the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 made under the Securities and Exchange Board of India Act, 1992 as amended from time to time.

Ø  Amendments in the Finance (No. 2) Act, 2019:

(1)    Amendments in Section2(9) which specifies the rates of income tax, with effect from April 01, 2019;

(2)    Amendments in First Schedule with effect from April 01, 2019.

Save as otherwise provided, this Ordinance shall come into force at once.             

[Ordinance No. 15 of 2019]

 


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