Harmonisation/Arrangement of Provisions Contained in Finance Bill/Act

Latish Alwani , 28 March 2023
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(Considering Finance Bill, 2020)

Chapter I: Preliminary

A bill to give effect to the Financial Proposals of C.G. for the F.Y.2020-21
Section 1(2) of Finance Act: Save as otherwise provided in this act :

(a) Section - 2 to 104 shall come into force on 1st day of April, 2020

(b) Section - 116 to 129 & 132 shall come into force on such date as C.G. may appoint by notification.

Chapter II: Rates of Income Tax

Applicable for the A.Y.2020-21 (Same as Rates of Income Tax Prescribed for Advance Tax in F.Y.2019-20 in Previous Finance Bill / Act under First Schedule - Part-III)

Harmonisation/Arrangement of Provisions Contained in Finance Bill/Act

Chapter III: Direct Tax / Income Tax Amendments

Chapter IV: Indirect Tax Amendments

Custom / CGST / IGST / UTGST

Chapter V: Health Cess

Chapter VI: Miscellaneous Amendments

The Indian Stamp Act, 1899
The Prohibition of Benami Property Transactions Act, 1988
Finance Acts of Earlier Years
Other Amendments in the Acts Which Were Not The Part of Finance Bill, 2020

The Securities Contracts (Regulation) Act, 1956 (
The Central Sales Tax Act, 1956
ETC

Schedules:

Schedules

Particulars

First

Parts	Particulars
I	Rates of Income Tax (Including Surcharge) for the A.Y.2020-21.
II	TDS Rates for the P.Y.2020-21
III	Rates of Income Tax for the P.Y.2020-21 for Advance Tax & TDS on Salaries.
IV	Rules for Computation of Net Agricultural Income

Second

Amendment of First Schedule of Custom Tariffs

Third

Amendment of First Schedule of Custom Tariffs

Fourth

Amendment of First Schedule of Custom Tariffs

Fifth

Amendment of Second Schedule of Custom Tariffs

First Schedule:

Part-I: Rates of Income Tax along with Surcharge (Subject to Marginal Relief) for the A.Y.2020-21 (i.e. P.Y.2019-20).

Sr. No.	Rates of Income Tax along with Surcharge (Subject to Marginal Relief) in respect of Following Assessee's
Paragraph A Item No.I	Individual Non-Resident Resident Whose Age is Less Than 60 Years Hindu Undivided Family (HUF) Association of Persons (AOP), Whether Incorporated or Not Body of Individuals (BOI) Whether Incorporated or Not Every Artificial Juridical Person referred u/s-2(31)(vii)
Paragraph A Item No.II	Individual Resident Whose Age is 60 Years or More But Less Than 80 Years
Paragraph A Item No.III	Individual Resident Whose Age is 80 Years or More
Paragraph B	Co-operative Society
Paragraph C	Firm
Paragraph D	Local Authority
Paragraph E Item No.I	Domestic Company
Paragraph E Item No.II	Company Other Than Domestic Company

Note:

Marginal Relief is calculated at the following level:
- Income Tax
- Surcharge
- Aggregate of Income Tax & Surcharge
Then Education Cess may be applied on Marginal Relief to arrive at Total Marginal Relief

Part-II: TDS Rates in Certain Cases for the P.Y.2020-21

Particulars / Sr. No.	Description
Applicable Provisions	Section 193: Interest on Securities 194A: Interest Other Than Interest on Securities 194B: Winnings from Lottery or Crossword Puzzle 194BA (w.e.f. 01/07/23): Winnings from Online Games 194BB: Winnings from Horse Race 194D: Insurance Commission 194LBA: Certain Income from Units of a Business Trust 194LBB: Income in respect of Units of Investment Fund 194LBC: Income in respect of Investment in Securitisation Trust 195: Other Sums Payee: Non-Resident (Not Being a Company) Foreign Company Nature of Payment: Any Payment Other Than Salaries Interest u/s-194LB Interest u/s-194LC Where Tax is to be Deducted at the Rates in Force
1	In Case of a Person Other Than a Company: Where the Person is Resident in India Where the Person is Non-Resident in India In Case of a Non-Resident Indian (Non-Resident Indian Means: Non-Resident & Citizen of India?) In Case of Any Other Person
2	In the Case of a Company Where Company is a Domestic Company Where Company is not a Domestic Company

Part-III: Rates of Income Tax along with Surcharge for the P.Y.2020-21 (i.e.A.Y.2021-22) for Advance Tax & TDS on Salaries.

A. Rates of Income Tax Where Tax is Charged and ITR needs to be furnished in Previous Year Itself

Sr. No.

Section

Particulars

172(4)

Shipping Business of Non-Resident

174(2)

Assessment of Persons Leaving India

174A

Assessment of AOP / BOI / Artificial Juridical Person formed for particular event or purpose

175

Assessment of Persons Likely to Transfer Property to Avoid Tax

176(2)

Discontinued Business

TDS on Income Chargeable under the Head Salaries or
Payment of Tax by Assessee pertaining to Income Chargeable under the Head Salaries

192

Salary

C. Rates / Rates in Force of Income Tax for Computation of Advance Tax Payable under Chapter XVII-C

Advance Tax Needs to Computed in Respect of Income Chargeable to Tax Under Following Chapters / Sections at the Rates Specified in Respective Chapters / Sections instead of Rates Specified in Sr. No.3:
Chapter / Section	Particulars
Chapter XII	Determination of Tax in Certain Special Cases From Section-110 To Section-115BBI Examples: STCG u/s-111A LTCG u/s-112A Tax u/s-115BAC etc
Chapter XII-A	Special Provisions Relating to Certain Incomes of Non-Residents: From Section-115C To Section-115-I
Section-115JB	MAT
Section-115JC	AMT
Chapter XII-FA	Section-115UA: Tax on Income of Unit Holder and Business Trust
Chapter XII-FB	Section-115UB: Tax on Income of Investment Fund and its Unit Holders
Section-161(1A)	Liability of Representative Assessee
Section-164	Charge of Tax Where Share of Beneficiaries Unknown
Section-164A	Charge of Tax in case of Oral Trust
Section-167B	Charge of Tax where Shares of Members in Association of Persons or Body of Individuals Unknown etc

Advance Tax Needs to Computed in Respect of Income Chargeable to Tax Under Following Sections at the Rates Specified in Respective Sections instead of Rates Specified in Sr. No.3:
Sections	Particulars
115A	Tax on Dividends, Royalty and FTS in case of Foreign Companies
115AB	Tax on income from units purchased in foreign currency or capital gains arising from their transfer
115AC	Tax on income from bonds or Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer
115ACA	Tax on income from Global Depository Receipts purchased in foreign currency or capital gains arising from their transfer
115AD	Tax on income of Foreign Institutional Investors from securities or capital gains arising from their transfer
115B	Tax on profits and gains of life insurance business
115BA	Tax on income of certain manufacturing domestic companies
115BAA	Tax on income of certain domestic companies
115BAB	Tax on income of new manufacturing domestic companies
115BAC	Tax on income of individuals and Hindu undivided family (w.e.f. A.Y.21-22)
115BAD	Tax on income of certain resident co-operative societies
115BB	Tax on winnings from lotteries, crossword puzzles etc
115BBA	Tax on non-resident sportsmen or sports associations
115BBC	Anonymous donations to be taxed in certain cases
115BBD	Tax on certain dividends received from foreign companies (Not Applicable from A.Y.23-24)
115BBDA	Tax on certain dividends received from domestic companies (Not Applicable for Dividend Income after 01/04/2020)
115BBE	Tax on income referred to in section 68 or section 69 or section 69A or section 69B or section 69C or section 69D
115BBF	Tax on income from patent
115BBG	Tax on income from transfer of carbon credits
115BBH	Tax on income from virtual digital assets (w.e.f.A.Y.23-24)
115BBI	Specified income of certain institutions (w.e.f A.Y.23-24)
115BBJ	Tax on Winnings from Online Games (w.e.f. A.Y.24-25)
115E	Tax on investment income and long-term capital gains
115JB	MAT
115JC	AMT

Advance Tax Needs to be Computed in Respect of Income Chargeable to Tax at Rates in Force (Along With Surcharge) Specified in Finance Bill / Act in case of following Assessee's:

Sr. No.	Particulars
Paragraph A Item No.I	Individual Non-Resident Resident Whose Age is Less Than 60 Years Hindu Undivided Family (HUF) Association of Persons (AOP), Whether Incorporated or Not Body of Individuals (BOI) Whether Incorporated or Not Every Artificial Juridical Person referred u/s-2(31)(vii)
Paragraph A Item No.II	Individual Resident Whose Age is 60 Years or More But Less Than 80 Years
Paragraph A Item No.III	Individual Resident Whose Age is 80 Years or More
Paragraph B	Co-operative Society
Paragraph C	Firm
Paragraph D	Local Authority
Paragraph E Item No.I	Domestic Company
Paragraph E Item No.II	Company Other Than Domestic Compan

Harmonisation / Arrangements of Chapter-II:

Rates of Income Tax

(Considering Finance Bill, 2023)

Clause / Section – 2:

Sub-Clause / Section

Summarised / Heading

Detailed

Income Tax Rates for the A.Y.2023-24 Contained in Part-I of the First Schedule.

Income Tax for the A.Y. 2023-24 shall be charged at the Rates Specified in Part-I of the First Schedule.
Such Tax shall be increased by a Surcharge
Subject to Provisions of Sub-Clause (2) & (3)

Rates of Income Tax are same as Advance Tax Rates prescribed for P.Y.2022-23 in Part-III of First Schedule of Previous Finance Act, 2022

Computation of Tax where Income includes Agricultural Income exceeding Rs.5,000/-
Applicability:

Assessee to whom Paragraph A of Part-I of First Schedule Applies whose Total Income Exceeds Rs.2,50,000/-

Computation Mechanism:

Sr. No. / Formula	Particulars	Amount
Computation of Income
1	Total Income (Actual)	√√√√
2	Agricultural Income	√√√√
3 = (1+2)	Total Income for Tax Computation	√√√√
Computation of Tax Payable
4	Tax Payable on Sr. No.3 Before Reduction	√√√√
5	Reduction As Per Sr. No.15	√√√√
6 = (4-5)	Tax Payable After Reduction	√√√√
7	Rebate u/s-87A (Considering Actual Total Income Specified under Sr. No.1)	√√√√
8 = (6-7)	Tax Payable After Rebate	√√√√
9	Surcharge	√√√√
10	Cess	√√√√
11= (8+9+10)	Aggregate Tax Liability	√√√√
Computation of Reduction
12	Agricultural Income	√√√√
13	Rs.2,50,000/- or Rs.3,00,000/- or Rs.5,00,000/-, as the case may be	√√√√
14 = (12+13)	Income for the Purpose of Reduction	√√√√
15	Tax on Sr. No.14	√√√√

Charge of Income Tax in Certain Cases at the Rates Specified in Given Chapters / Sections

Income Tax Chargeable under following provisions:

Chapter / Section	Particular
Chapter XII	Determination of Tax in Certain Special Cases From Section-110 To Section-115BBI Examples: STCG u/s-111A LTCG u/s-112A Tax u/s-115BAC etc
Chapter XII-A	Special Provisions Relating to Certain Incomes of Non-Residents: From Section-115C To Section-115-I
Section-115JB	MAT
Section-115JC	AMT
Chapter XII-FA	Section-115UA: Tax on Income of Unit Holder and Business Trust
Chapter XII-FB	Section-115UB: Tax on Income of Investment Fund and its Unit Holders
Section-161(1A)	Liability of Representative Assessee
Section-164	Charge of Tax Where Share of Beneficiaries Unknown
Section-164A	Charge of Tax in case of Oral Trust
Section-167B	Charge of Tax where Shares of Members in Association of Persons or Body of Individuals Unknown etc

Shall be determined as
Provided in that Chapter or that Section
- With Reference to Rates imposed u/s-2(1)

- Rates Specified in that
  - Chapter or
  - Section

3 Proviso-1

Surcharge on Income Tax Computed under Sections:

111A
112
112A

Income Tax Computed under Sections:
- 111A
- 112
- 112A
Shall be increased by Surcharge:
As Provided in
- Paragraph A
- Paragraph B
- Paragraph C
- Paragraph D
- Paragraph E
- As the Case May Be
- Of Part-I of First Schedule
Except in Case of
- Domestic Company whose Income is Chargeable to Tax under Section:
  - 115BAA or
  - 115BAB
- Co-operative Society whose Income is Chargeable to Tax under Section:
  - 115BAD

Proviso-2

Surcharge on Income Tax Computed under Sections:

115A
115AB
115AC
115ACA
115AD
115B
115BA
115BB
115BBA
115BBC
115BBF
115BBG
115BBH
115BBI
115E
115JB
115JC

Income Tax Computed on Income Chargeable to Tax under Following Sections:
- 115A
- 115AB
- 115AC
- 115ACA
- 115AD
- 115B
- 115BA
- 115BB
- 115BBA
- 115BBC
- 115BBF
- 115BBG
- 115BBH
- 115BBI
- 115E
- 115JB
- 115JC
Shall be Increased by Surcharge
As Provided here in respect of following Assessee's with certain criteria's:

Sub- Clause	Particulars
(a)	Assessee's: Individual HUF AOP Except AOP: Consisting of Only Companies as its Members BOI Whether Incorporated or Not Artificial Juridical Person Condition: Assessee Not having Income u/s-115AD
(b)	Assessee's: Individual AOP Except AOP: Consisting of Only Companies as its Members BOI Whether Incorporated or Not Artificial Juridical Person Condition: Assessee having Income u/s-115AD
(c)	Assessee's: AOP Consisting of Only Companies as its Members
(d)	Assessee's: Co-operative Society Except whose Income Chargeable to Tax u/s-115BAD
(e)	Assessee's: Firm Local Authority
(f)	Assessee's: Domestic Company: Except whose Income Chargeable under Sections: 115BAA 115BAB
(g)	Assessee's: Company Other Than Domestic Company

Marginal Relief Provisions:

Proviso	Marginal Relief Provisions
(i)	In Case of Persons mentioned in Sub-Clause (a) & (b) above Having Total Income Chargeable to Tax u/s-115JC
(ii)	In Case of AOP mentioned in Sub-Clause (c) above Having Total Income Chargeable to Tax u/s-115JC
(iii)	In Case of Co-operative Society mentioned in Sub-Clause (d) above Having Total Income Chargeable to Tax u/s-115JC
(iv)	In Case of Persons mentioned in Sub-Clause (e) above Having Total Income Chargeable to Tax u/s-115JC
(v)	In Case of Every Company Having Total Income Chargeable to Tax u/s-115JB Income Exceeds Rs.1 Crore Does Not Exceed Rs.10 Crore
(vi)	In Case of Every Company Having Total Income Chargeable to Tax u/s-115JB Income Exceeds Rs.10 Crore

Income Tax Computed on Income Chargeable to Tax under Following Sections:
- 115BBE
- 115BAA
- 115BAB
- 115BAC
- 115BAD

Shall be Increased by Surcharge
As Provided here in respect of following Assessee's with certain criteria's:

Proviso	Particulars
(vii)	Assessee: Any Person Income Chargeable to Tax u/s-115BBE(1)(i)
(viii)	Assessee: Domestic Company Income Chargeable to Tax under Section: 115BAA 115BAB
(ix)	Assessee: Individual or HUF Income Chargeable to Tax u/s-115BAC
(x)	Assessee: Resident Co-operative Society Income Chargeable to Tax u/s-115BAD

Pending:

Check whether Marginal Relief Provisions are applicable
- in respect of Assesse's covered under Proviso (i) to (vi) and who are
- Liable to pay tax under Normal Provisions of the Income Tax Act
- And not liable to pay tax under Section-115JC & Section-115JB

Surcharge on Income Tax Computed under Sections:

92CE(2A)
115QA
115TD

Income Tax Charged and Paid Under Section:

Sections	Particulars
92CE	Transfer Pricing: Secondary Adjustment in Certain Cases
115QA	Buy-Back of Shares: Tax on Distributed Income to Shareholders
115TD	Trusts and Institutions: Tax on Accreted Income

Shall Be Increased By a Surcharge
As Provided here

Surcharge on TDS Specified in Part-II of First Schedule

TDS needs to be Deducted, at Rates in Force, under Following Sections:
- 193
- 194A
- 194B
- 194BA
- 194BB
- 194D
- 194LBA
- 194LBB
- 194LBC
- 195
Shall be Increased By a Surcharge
As Provided in Part-II of First Schedule

Surcharge on TDS Rates Specified in Income Tax Act in Case of Non-Resident Deductor

TDS needs to be Deducted, at Rates, Specified in Following Sections:

Sections	Particulars
192A	Payment of Accumulated Balance Due to An Employee
194	Dividends
194C	Payments to Contractors
194DA	Payment in respect of Life Insurance Policy
194E	Payments to Non-Resident Sportsmen or Sports Associations
194EE	Payments in respect of Deposits under NSC etc
194F	Payments on Account of Repurchase of Units by Mutual Fund or UTI
194G	Commission etc on Sale of Lottery Tickets
194H	Commission or Brokerage
194-I	Rent
194-IA	Payment on Transfer of Certain Immovable Property Other Than Agricultural Land
194-IB	Payment of Rent by Certain Individuals or HUF
194-IC	Payment under Specified Agreement
194J	Fees for professional or technical services
194LA	Payment of compensation on acquisition of certain immovable property
194LB	Income by way of interest from infrastructure debt fund
194LBA	Certain income from units of a business trust
194LBB	Income in respect of units of investment fund
194LBC	Income in respect of investment in securitization trust
194LC	Income by way of interest from Indian company
194LD	Income by way of interest on certain bonds and Government securities
194K	Income in respect of units
194M	Payment of certain sums by certain individuals or Hindu undivided family
194N	Payment of certain amounts in cash
194-O	Payment of certain sums by e-commerce operator to e-commerce participant
194Q	Deduction of tax at source on payment of certain sum for purchase of goods
194R	Deduction of tax on benifit or perquisite in respect of business or profession
194S	Payment on transfer of virtual digital asset
196A	Income in respect of units of non-residents
196B	Income from units
196C	Income from foreign currency bonds or shares of Indian company
196D	Income of Foreign Institutional Investors from securities

Shall be increased by a Surcharge
As Provided here

Sub- Clause	Particulars
(a)	Individual HUF AOP Except AOP: Consisting of Only Companies as its Members BOI Whether Incorporated or Not Artificial Juridical Person Exceptions: Surcharge Not Applicable on TDS in case of Income by Way of Dividend u/s-196D
(b)	Individual HUF AOP Except AOP: Consisting of Only Companies as its Members BOI Whether Incorporated or Not Artificial Juridical Person Conditions: TDS needs to be Deducted u/s-196D in case of Income by Way of Dividend
(c)	AOP Consisting of Only Companies as its Members
(d)	Co-operative Society
(e)	Firm
(f)	Company Other Than a Domestic Company

Surcharge on TDS Recovery u/s-194B 1st Proviso

In Case Tax has to be collect / Recovered
Under 1st Proviso to Section-194B
Collection / Recovery shall be made at the Rates Specified in Part-II of First Schedule
And shall be increased by a Surcharge provided
- In Part-II of First Schedule

Surcharge on TCS u/s-206C from Non-Resident Collectee's

TCS u/s-206C shall be made at the Rates specified in that Section
And Shall be Increased by Surcharge
In respect of Non-Resident Collectee's
As Provided here
With Certain Criteria's:

Sub- Clause	Particulars
(a)	Non-Resident Collectee's: Individual HUF AOP Except AOP: Consisting of Only Companies as its Members BOI Whether Incorporated or Not Artificial Juridical Person
(b)	Non-Resident Collectee's: AOP Except AOP: Consisting of Only Companies as its Members
(c)	Non-Resident Collectee's: Co-operative Society
(d)	Non-Resident Collectee's: Firm
(e)	Non-Resident Collectee's: Every Company: Other Than Domestic Company

Charge of Advance Tax and Surcharge Thereon (Summarised)

Summarised:

A. Charge of Advance Tax & Surcharge:

Subject to Provisions of Section-2(10) of Finance Bill / Act:
- Rates of Income Tax Where Tax is Charged and ITR needs to be furnished in Previous Year Itself
  - 172(4)
  - 174(2)
  - 174A
  - 175
  - 176(2)
- TDS on Income Chargeable under the Head Salaries u/s-192 or TDS u/s-194P or
- Payment of Tax by Assessee pertaining to Income Chargeable under the Head Salaries
- Rates / Rates in Force of Income Tax for Computation of Advance Tax Payable under Chapter XVII-C

Income Tax / Advance Tax / TDS,
as the case may be,
- shall be charged, deducted or computed at
  - Rates Specified in given Sections or
  - Rates in Force Specified in
    - Part-III
    - Of the First Schedule
And Such Tax shall be Increased by a Surcharge

Provisions contained under Section-2(1) and 2(3) shall Mutatis Mutandis Apply to

- Charge of Advance Tax
- Charge of TDS, If any
- Applicable Surcharge Thereon

Charge of Advance Tax and Surcharge Thereon (Detailed)

Detailed

Provisions Covered for Charge of Income Tax:

Subject to the Provisions of Section-2(10)
In Cases, in which income-tax has to be charged under following Sections:
- 172(4)
- 174(2)
- 174A
- 175
- 176(2)

Income Tax Deducted from or Paid on
- Income Chargeable under the head "Salaries" u/s-192

Income Tax Deducted u/s-194P

Advance Tax Payable under Chapter XVII-C

Charge of Advance Tax:

Such
- Income Tax OR
- Advance Tax,
- as the case may be
Shall be
- Charged,
- Deducted or
- Computed
At
- Rates or
- Rates in Force
- Specified in
  - Part-III of
  - First Schedule
Shall be Increased By
- A Surcharge
- In Such Cases
- In Such Manner
- As Provided Therein

9 Proviso-1

Charge of Advance Tax in Certain Cases at the Rates Specified in Given Chapters / Sections

Advance Tax Chargeable under following provisions:

Chapter / Section	Particular
Chapter XII	Determination of Tax in Certain Special Cases From Section-110 To Section-115BBI Examples: STCG u/s-111A LTCG u/s-112A Tax u/s-115BAC etc
Chapter XII-A	Special Provisions Relating to Certain Incomes of Non-Residents: From Section-115C To Section-115-I
Section-115JB	MAT
Section-115JC	AMT
Chapter XII-FA	Section-115UA: Tax on Income of Unit Holder and Business Trust
Chapter XII-FB	Section-115UB: Tax on Income of Investment Fund and its Unit Holders
Section-161(1A)	Liability of Representative Assessee
Section-164	Charge of Tax Where Share of Beneficiaries Unknown
Section-164A	Charge of Tax in case of Oral Trust
Section-167B	Charge of Tax where Shares of Members in Association of Persons or Body of Individuals Unknown etc

Shall be computed as
- Specified in that Chapter or that Section

- With Reference to Rates imposed u/s-2(9)

9 Proviso-2

Surcharge on Advance Tax Computed under Sections:

111A
112
112A

Advance Tax Computed under Sections:
- 111A
- 112
- 112A
Shall be increased by Surcharge:
As Provided in
- Paragraph A
- Paragraph B
- Paragraph C
- Paragraph D
- Paragraph E
- As the Case May Be
- Of Part-III of First Schedule
Except in Case of
- Domestic Company whose Income is Chargeable to Tax under Section:
  - 115BAA or
  - 115BAB
- Resident Co-operative Society whose Income is Chargeable to Tax under Section:
  - 115BAD or
  - 115BAE

An Individual or
HUF or
AOP or
BOI
- Whether Incorporated or Not
An Arificial Juridical Person

Whose Income is Chargeable to under Section:

115BAC(1A)

9 Proviso-3

Surcharge on Advance Tax Computed under Sections:

115A
115AB
115AC
115ACA
115AD
115B
115BA
115BB
115BBA
115BBC
115BBF
115BBG
115BBH
115BBI
115BBJ
115E
115JB
115JC

Advance Tax Computed
In Accordance with First Proviso
on Income Chargeable to Tax
under Followings Sections:
- 115A
- 115AB
- 115AC
- 115ACA
- 115AD
- 115B
- 115BA
- 115BB
- 115BBA
- 115BBC
- 115BBF
- 115BBG
- 115BBH
- 115BBI
- 115BBJ
- 115E
- 115JB
- 115JC
Shall be Increased by Surcharge
As Provided here in respect of following Assessee's with certain criteria's:

Sub- Clause	Particulars
(a)	Assessee's: Individual HUF AOP Except AOP: Consisting of Only Companies as its Members BOI Whether Incorporated or Not Artificial Juridical Person Conditions: Assessee Not having Income u/s-115AD or Not having Any Income Chargeable to Tax u/s-115BAC(1A)
(b)	Assessee's: Individual AOP Except AOP: Consisting of Only Companies as its Members BOI Whether Incorporated or Not Artificial Juridical Person Conditions: Assessee having Income u/s-115AD Assessee not having any Income chargeable to Tax u/s-115BAC(1A)
(c)	Assessee's: AOP Consisting of Only Companies as its Members
(d)	Assessee's: Co-operative Society Except whose Income Chargeable to Tax u/s- 115BAD 115BAE
(e)	Assessee's: Firm Local Authority
(f)	Assessee's: Domestic Company: Except whose Income Chargeable under Sections: 115BAA 115BAB
(g)	Assessee's: Company Other Than Domestic Company

Marginal Relief Provisions:

Proviso	Marginal Relief Provisions
(i)	In Case of Persons mentioned in Sub-Clause (a) & (b) above Having Total Income Chargeable to Tax u/s-115JC
(ii)	In Case of AOP mentioned in Sub-Clause (c) above Having Total Income Chargeable to Tax u/s-115JC
(iii)	In Case of Co-operative Society mentioned in Sub-Clause (d) above Having Total Income Chargeable to Tax u/s-115JC
(iv)	In Case of Persons mentioned in Sub-Clause (e) above Having Total Income Chargeable to Tax u/s-115JC
(v)	In Case of Every Company Having Total Income Chargeable to Tax u/s-115JB Income Exceeds Rs.1 Crore Does Not Exceed Rs.10 Crore
(vi)	In Case of Every Company Having Total Income Chargeable to Tax u/s-115JB Income Exceeds Rs.10 Crore

Advance Tax Computed
In Accordance with First Proviso
on Income Chargeable to Tax
under Following Sections:
- 115BBE
- 115BAA
- 115BAB
- 115BAC
- 115BAD
- 115BAE

Shall be Increased by Surcharge
As Provided here in respect of following Assessee's with certain criteria's:

Proviso

Particulars

(vii)

Assessee: Any Person
Income Chargeable to Tax u/s-115BBE(1)(i)

(viii)

Assessee: Domestic Company
Income Chargeable to Tax under Section:
- 115BAA
- 115BAB

(ix)

Assessee:
- Individual or
- HUF
- AOP
- BOI
  - Whether Incorporated or Not
- Artificial Juridical Person

Income Chargeable to Tax u/s-115BAC

Restriction on Surcharge based on
- Nature of Income or
- Category of Persons,
- as the case may be:

Proviso

Particulars

(i)

Income:

Dividend
u/s-111A
u/s-112
u/s-112A

(ii)

Category of Persons:

AOP
- Consisting of Only Companies as it Members

Marginal Relief Provisions under following circumstances:

Proviso	Particulars
(iii)	Assessee's: Individual HUF AOP BOI Whether Incorporated or Not Artificial Juridical Person Income Chargeable to Tax u/s-115BAC

(x)

Assessee:
- Resident
- Co-operative Society
Whose Income Chargeable to Tax u/s-
- 115BAD or
- 115BAE

Pending:

Check whether Marginal Relief Provisions are applicable
- in respect of Assesse's covered under Proviso (i) to (vi) and who are
- Liable to pay tax under Normal Provisions of the Income Tax Act
- And not liable to pay tax under Section-115JC & Section-115JB

Computation of Tax where Income includes Agricultural Income exceeding Rs.5,000/-

Applicability:

(i) Assessee to whom Paragraph A of Part-III of First Schedule Applies whose Total Income Exceeds Rs.2,50,000/-

(ii) Resident Assessee whose Income Chargeable to Tax u/s-115BAC (A)

(iii) Where Income Tax / Advance Tax needs to Charged and ITR needs to be furnished in P.Y. Itself:

174(2)
174A
175
176(2)

Computation Mechanism:

Sr. No. / Formula	Particulars	Amount
Computation of Income
1	Total Income (Actual)	√√√√
2	Agricultural Income	√√√√
3 = (1+2)	Total Income for Tax Computation	√√√√
Computation of Tax Payable
4	Tax Payable on Sr. No.3 Before Reduction	√√√√
5	Reduction As Per Sr. No.15	√√√√
6 = (4-5)	Tax Payable After Reduction	√√√√
7	Rebate u/s-87A (Considering Actual Total Income Specified under Sr. No.1)	√√√√
8 = (6-7)	Tax Payable After Rebate	√√√√
9	Surcharge	√√√√
10	Cess	√√√√
11= (8+9+10)	Aggregate Tax Liability	√√√√
Computation of Reduction
12	Agricultural Income	√√√√
13	Rs.2,50,000/- or Rs.3,00,000/- or Rs.5,00,000/-, as the case may be	√√√√
14 = (12+13)	Income for the Purpose of Reduction	√√√√
15	Tax on Sr. No.14	√√√√

Note:

In Sr. No.13, Rs.3,00,000/- shall be substituted
in case of Resident Assessee's
Whose Income Chargeable to Tax u/s-115BAC.

Additional Surcharge Namely "Health and Education Cess on Income Tax Specified u/s-2(1) to 2(3)

Computation Mechanism of Health and Education Cess on Income Tax:

Sr. No.	Particulars	Amount
A.	Income Tax and Surcharge Specified u/s-2(1) to 2(3)	√√√√
B=A*4%	Additional Surcharge Namely "Health and Education Cess"	√√√√

Reason:
- To Provide and Finance Quality Health Services and
- Universalised Quality
  - Basic Education and
  - Secondary and Higher Education

Additional Surcharge Namely "Health and Education Cess on Income Tax Specified u/s-2(4) to 2(10)

Computation Mechanism of Health and Education Cess on Income Tax:

Sr. No.	Particulars	Amount
A.	Income Tax and Surcharge Specified u/s-2(4) to 2(10)	√√√√
B=A*4%	Additional Surcharge Namely "Health and Education Cess"	√√√√

Reason:
- To Provide and Finance Quality Health Services and
- Universalised Quality
  - Basic Education and
  - Secondary and Higher Education

Proviso / Non-Applicability:
- Provided that nothing contained in this sub-section
- shall apply to cases in which tax is to be
  - deducted or
  - collected
- under the sections of the Income-tax Act mentioned in Section:
  - 2(5),
  - 2(6),
  - 2(7) and
  - 2(8),
- if the income subjected to
  - deduction of tax at source or
  - collection of tax at source
- is paid to
  - a domestic company and
  - any other person who is resident in India

Definitions / Meanings:

Domestic Company
Insurance Commission
Net Agricultural Income
Same Definitions / Meanings as per IT Act

(a) "Domestic Company" means

an Indian company or any other company which,
in respect of its income liable to income-tax
under the Income-tax Act,
for the assessment year commencing on the 1st day of April, 2023,
has made the prescribed arrangements for the declaration and
payment within India of the dividends
(including dividends on preference shares)
payable out of such income;

(b) "Insurance Commission" means

any remuneration or reward,
whether by way of commission or otherwise,
for soliciting or procuring
insurance business
(including business relating to
- the continuance,
- renewal or
- revival of policies
of insurance);

in relation to a person,
means the total amount of agricultural income,
from whatever source derived,
of that person computed
in accordance with the rules contained in
Part IV of the First Schedule;

(d)

all other words and expressions
used in this section and the First Schedule
but not defined in this sub-section and
defined in the Income-tax Act
shall have the meanings, respectively,
assigned to them in that Act.

Disclaimer: The aforesaid article presents the view of an independent writer who is an expert of Income Tax / GST Related Matters. The article is informative in nature and writer of the article shall not be responsible for any direct / indirect loss or liability incurred by the user / reader for taking any decisions based on the contents and information given in article. Please consult your tax consultant / tax advisor before making any decision.

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Attached File : 60532_49402_arrangement_of_finance_bill_or_act.pdf