Taxation Laws (Amendment) Act, 2019

Dec 17, 2019 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The Ministry of Law and Justice on December 12, 2019, has published the Taxation Laws (Amendment) Act, 2019, to further amend the Income-tax Act, 1961 and the Finance (No. 2) Act, 2019.

Amendments in the Income-tax Act, 1961 are as under:

i.Under Section 92BA which defines the meaning of specified domestic transaction, clause va has been inserted, namely:

“any business transacted between the persons referred to in sub-section (6) of section 115BAB”, which specifies Tax on income of certain new domestic manufacturing companies. 

ii.Section 115BA which specifies Tax on income of certain domestic manufacturing companies will be substituted and it will come into effect from April 01, 2020.

iii.Under section 115JAA which specifies the provisions for Tax credit in respect of tax paid on deemed income relating to certain companies, sub-section (8) will be inserted with effect from April 01, 2020, namely:

The provisions of this section shall not apply to a person who has exercised the option under section 115BAA

iv.Section 115JB which specifies special provision for payment of tax by certain companies, will be substituted with effect from April 01, 2020.

v.Under section 115QA (1) which specifies special provisions relating to tax on distributed income to shareholders, the following proviso will 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 recognised stock exchange), in respect of which public announcement has been made on or before July 05, 2019 in accordance with the provisions of the Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 made under the Securities and Exchange Board of India Act, 1992.

vi.Insertion of Sections which will come into effect from April 01, 2020:

a)Section 115BAA: Tax on income of certain domestic companies

b)Section 115BAB: Tax on income of new manufacturing domestic companies.

Amendment in FINANCE (NO. 2) ACT, 2019:

i.Section 2(9) which specifies rates on Income tax, will be substituted and it has come into force from April 01, 2019;

ii.Part II of the First Schedule will be substituted. 

Save as otherwise provided, it shall be deemed to have come into force on September 20, 2019 and the Taxation Laws (Amendment) Ordinance, 2019 is repealed.

[Act NO. 46 OF 2019]

 


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