AMENDMENTS PROPOSED BY FINANCE BILL, 2008 AT A GLANCE

Section	Effective date of proposed amendment	Nature of proposed amendment	Effect of proposed amendment
1	2	3	4
INCOME-TAX ACT
2(1A)	1-4-2009	Explanation 3 proposed to be inserted	A new Explanation after Explanation 2 in clause (1A) of section 2, which defines agricultural income is proposed to be inserted, so as to provide that any income derived from saplings or seedlings grown in a nursery shall be deemed to be agricultural income.
2(15)	1-4-2009	Proposed to be substituted	Clause (15) of section 2 defines "charitable purpose" to include relief of the poor, education, medical relief, and the advancement of any other object of general public utility. It is proposed to be amended the said clause by inserting a proviso thereto so as to exclude from "advancement of any other object of general public utility"– (i) any activity in the nature of trade, commerce or business, or (ii) any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from any such activity.
10(26AAA)	1-4-1990	Proposed to be inserted	New clause (26AAA) in section 10 is proposed to be inserted so as to provide that any income, which accrues or arises to a “Sikkimese” individual from any source in the State of Sikkim or by way of dividend or interest on securities, shall not be included in the total income of such individual. The term ‘Sikkimese’ has been specified in the said clause in pursuance to the Sikkim Subjects Regulation, 1961, rules made thereunder and relevant Government orders issued in this regard.
10(29A)	1-4-2009	Sub-clause (h) proposed to be inserted	Clause (29A) of the section 10 provides for exemption of any income of certain commodity boards and export development authorities specified in sub-clauses (a) to (g) of the said clause. It is proposed to insert a new sub-clause to provide exemption in respect of any income accruing or arising also to the Coir Board established under the Coir Industry Act, 1953.
10(43)	1-4-2008	Proposed to be inserted	New clause (43) in section 10 is proposed to be inserted so as to provide that any amount received by an individual as a loan, either in lump sum or instalment, in a transaction of reverse mortgage referred to in clause (xvi) of section 47 will also not be included in total income.
35(1)(iia)	1-4-2009	Proposed to be inserted	Clause (ii) of sub-section (1) of the section 35 allows deduction of an amount equal to one and one-fourth times of any sum paid to a scientific research association which has as its object the undertaking of scientific research or to a university, college or other institution to be used by it for scientific research. The provision also requires such scientific research association, university, college or other institution to be approved and notified for the purposes of said clause. Clause (iia) in sub-section (1) of section 35 is proposed to be inserted to allow deduction of an amount equal to one and one-fourth times of any sum paid to a company for scientific research, provided such company– (A) is registered in India; (B) has as its main object the scientific research and development; (C) is, for the purposes of this clause, for the time being approved by the prescribed authority in the prescribed manner; and (D) fulfils such other conditions as may be prescribed.
35(2AB)(6)	1-4-2009	Proposed to be inserted	Sub-section (2AB) of section 35 allows deduction of an amount equal to one and one-half times of the expenditure incurred on scientific research, not being expenditure in the nature of cost of any land or building, on approved in-house research and development facility. This deduction is available to a company engaged in the specified business. Clause (6) in sub-section (2AB) of section 35 is proposed to be inserted to provide that no deduction shall be allowed to a company approved under sub-clause (C) of clause (iia) of sub-section (1) of the said section in respect of the expenditure referred to in clause (1) of sub-section (2AB) which is incurred after 31st March, 2008.
35D	1-4-2009	Certain words proposed to be substituted	Section 35D relating to amortisation of certain preliminary expenses is proposed to be amended. Under the existing provisions of the said section, deduction for certain specified preliminary expenses in computing business income is allowed. The deduction is allowed at an amount equal to 1/5th of such expenditure for five successive previous years. The preliminary expenses relate either to the period before the commencement of business or after. However, if preliminary expenses relate to a period after the commencement of business, such expenses are only allowed if they are in relation to the extension of an industrial undertaking or the setting up of a new industrial unit. Section 35D, the words "industrial undertaking" with the word "undertaking" and the words "industrial unit" with the word "unit", wherever they occur in the said section are proposed to be substituted. This is intended to provide benefit of amortisation of specified post commencement preliminary expenses to all sectors for the extention of an undertaking or the setting up of a new unit.
36(1)(xv)	1-4-2009	Proposed to be inserted	Section 36, relating to other deductions for the purposes of computation of business income is proposed to be amended. Clause (xv) in sub-section (1) of section 36 is proposed to be inserted so as to provide that any amount of securities transaction tax paid by the assessee during the previous year in respect of taxable securities transactions entered into in the course of his business during the previous year shall be allowed as a deduction, if the income arising from such taxable securities transactions is included in the income computed under the head "Profits and gains of business or profession". It is also proposed to insert an Explanation to provide that for the purposes of this clause, the expressions "securities transaction tax" and "taxable securities transaction" shall have the meanings respectively assigned to them under Chapter VII of the Finance (No. 2) Act, 2004.
36(1)(xvi)	1-4-2009	Proposed to be inserted	Clause (xvi) in sub-section (1) section 36 is proposed to be inserted so as to provide that any amount of commodities transaction tax paid by the assessee during the previous year in respect of taxable commodities transactions entered into in the course of his business during the previous year shall be allowed as a deduction, if the income arising from such taxable commodities transactions is included in the income computed under the head ‘Profits and gains of business or profession’. It is also proposed to insert an Explanation to provide that for the purposes of this clause, the expressions "commodities transaction tax" and "taxable commodities transaction" shall have the meanings respectively assigned to them under Chapter VII of the Finance Act, 2008.
40(a)(ib)	1-4-2009	Proposed to be omitted	Sub-clause (ib) of clause (a) of section 40 which provides that any sum paid on account of securities transaction tax shall not be allowed as a deduction in the computation of “profits and gains of business or profession” is proposed to be omitted.
40A	1-4-2009	Sub-section (3) proposed to be substituted by sub-sections (3) and (3A)	Section 40A, relating to expenses or payments not deductible in certain circumstances is proposed to be amended. Under the existing provisions contained in clause (a) of sub-section (3) of the said section any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000/- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft is not allowed as a deduction. Clause (b) of sub-section (3) of section 40A also provides for deeming a payment as profits and gains of business or profession if the payment is made in any subsequent year in a sum exceeding Rs. 20,000/- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft. The sub-section (3) is proposed to be substituted by sub-sections (3) and (3A). The proposed sub-section (3) provides that where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure. The proposed sub-section (3A) provides that where an allowance has been made in the assessment for any year in respect of any liability incurred by the assessee for any expenditure and subsequently during any previous year (hereinafter referred to as subsequent year) the assessee makes payment in respect thereof, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, the payment so made shall be deemed to be the profits and gains of business or profession and accordingly chargeable to income-tax as income of the subsequent year if the payment or aggregate of payments made to a person in a day, exceeds twenty thousand rupees. It is also proposed to provide that no disallowance shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-sections (3) and (3A) where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, in such cases and under such circumstances as may-be prescribed, having regard to the nature and extent of banking facilities available, considerations of business expediency and other relevant factors.
43(6), Explanation 6	1-4-2003	Proposed to be inserted	Section 43, relating to definition of certain terms relevant to income from profits and gains of business or profession is proposed to be amended. Sub-clause (b) of clause (6) of the said section provides that written down value in the case of assets acquired before the previous year means the actual cost to the assessee less all depreciation actually allowed to him under this Act, or under the Indian Income-tax Act, 1922, or any Act repealed by that Act, or under any executive orders issued when the Indian Income-tax Act, 1886, was in force. It is proposed to insert Explanation 6 in the said clause (6) to provide that where an assessee was not required to compute his total income for the purposes of Income-tax Act for any previous year or years preceding the previous year relevant to the assessment year under consideration,- (a) the actual cost of an asset shall be adjusted by the amount attributable to the revaluation of such asset, if any, in the books of account; (b) the total amount of depreciation on such asset provided in the books of account of the assessee in respect of such previous year or years preceding the previous year relevant to the assessment year under consideration shall be deemed to be the depreciation actually allowed under the Income-tax Act for purposes of clause (6) of the said section; (c) the depreciation actually allowed as above shall be adjusted by the amount of depreciation attributable to such revaluation.
47(xa)/(xvi)	1-4-2008	Proposed to be inserted	Section 47 which lists transactions not regarded as transfer is proposed to be amended. New clause (xa) is proposed to be inserted in section 47 so as to provide that any transfer by way of conversion of bonds referred to in clause (a) of sub-section (1) of section 115AC into shares or debentures of any company shall not be considered as transfer. Further, a new clause (xvi) is also proposed to be inserted in the said section so as to add to the list, any transfer of a capital asset in a transaction of reverse mortgage under a scheme made and notified by the Central Government.
49(2A)	1-4-2008	Proposed to be substituted	Section 49, relating to cost with reference to certain modes of acquisition is proposed to be amended. Sub-section (2A) of the said section provides that where the capital asset, being a share or debenture in a company, became the property of the assessee in consideration of a transfer referred to in clause (x) of section 47, the cost of acquisition of the asset to the assessee shall be deemed to be that part of the cost of debenture, debenture-stock or deposit certificates in relation to which such asset is acquired by the assessee. The said sub-section is proposed to be substituted so as to provide that where the capital asset, being a share or debenture of a company, became the property of the assessee in consideration of a transfer referred to in clause (x) or clause (xa) of section 47, the cost of acquisition of the asset to the assessee shall be deemed to be that part of the cost of debenture, debenture-stock, bond or deposit certificates in relation to which such asset is acquired by the assessee.
80C(2)(xxiii)/(xxiv), 80C(6A)	1-4-2008	Proposed to be inserted	Section 80C relating to deduction in respect of life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. is proposed to be amended. This section provides for a deduction of upto rupees one lakh to an individual or a Hindu undivided family for making investment in certain saving instruments or for incurring expenditure on tuition fee and repayment of housing loan. New clauses (xxiii) and (xxiv) in sub-section (2) of said section are proposed to be inserted to enlarge the scope of eligible savings instruments, so as to provide that any sum paid or deposited in the previous year by the assessee in an account under the Senior Citizens Savings Scheme Rules, 2004 or as five year time deposit in an account under the Post Office Time Deposit Rules, 1981 shall also be eligible for tax benefits. Further, a new sub-section (6A) is also proposed to be inserted so as to provide that where any amount, including the interest accrued thereon, is withdrawn by the assessee from such accounts before the expiry of the period of five years from the date of its deposit, the amount so withdrawn shall be deemed to be the income of the assessee of the previous year in which the amount is withdrawn and shall be liable to tax in the assessment year relevant to such previous year. However, if such amount is received by the nominee or legal heir of the assessee on the death of such assessee, the amount so received by such nominee or legal heir, as the case may be, shall not be liable to tax. However, the interest including in such amount which has not been included in the total income of the assessee in any of the earlier year, shall be liable to tax. Further, if the interest included in such amount has been taken into consideration for computing the total income of the assessee for the previous year or years preceding the previous year in which the amount is withdrawn, such interest shall not be liable to tax again.
80D	1-4-2009	Proposed to be substituted	Section 80D, relating to deduction in respect of medical insurance premia is proposed to be substituted. The said section provides for deduction of up to fifteen thousand rupees to an assessee, being an individual or a Hindu undivided family, who makes payment of the specified sum by any mode, other than cash, to effect or keep in force an insurance on,— (a) the health of the assessee or on the health of the wife or husband, dependant parents or dependant children of the assessee where the assessee is an individual; (b) the health of any member of the family where the assesseee is a Hindu undivided family. The said section also provides that in case any of the insured persons is a senior citizen, the deduction would be available up to twenty thousand rupees. With a view to encourage individual assessees to supplement their parents’ efforts to get themselves insured, it is proposed to substitute the said section so as to provide for an additional deduction of up to fifteen thousand rupees to an individual assessee who makes payment of the specified sum, by any mode, other than cash, to effect or keep in force an insurance on the health of his parent or parents. The existing condition of the parents being dependant on the assessee is proposed to be dispensed with. This deduction shall be in addition to the existing deduction of up to fifteen thousand rupees available to the individual assessee on an insurance for himself, his spouse and dependant children. It is also proposed that if either of the individual assessee’s parents is a senior citizen, and who has been insured, the deduction available would be up to twenty thousand rupees.
80-IB(9), third proviso, 80-IB(11C)	1-4-2009	Proposed to be inserted	Section 80-IB, relating to deduction in respect of profits and gains from certain industrial undertakings other than infrastructure development undertakings is proposed to be amended. Sub-section (9) of the said section provides for deduction in respect of profits and gains derived from commercial production or refining of mineral oil. The term “mineral oil” does not include petroleum and natural gas, unlike other sections of the Act. The deduction under this sub-section is available to an undertaking for a period of seven consecutive assessment years including the initial assessment year – (i) in which the commercial production under a production sharing contract has first started; or (ii) in which the refining of mineral oil has begun. New proviso in sub-section (9) of section 80-IB is proposed to be inserted so as to provide that no deduction under this subsection shall be allowed to an undertaking engaged in refining of mineral oil, if it begins refining on or after 1st April, 2009. Further, a new sub-section (11C) is proposed to be inserted in the said section so as to extend a five year tax holiday to hospitals located anywhere in India, except seven urban agglomerations of Greater Mumbai, Delhi, Kolkata, Chennai, Hyderabad, Bangalore and Ahmedabad and the districts of Faridabad, Gurgaon, Ghaziabad, Gautam Budh Nagar and Gandhinagar and the city of Secunderabad. The area comprising an urban agglomeration shall be the area included in such urban agglomeration on the basis of the 2001 census. The said tax benefit will be available to a hospital which is constructed and has started or starts functioning at any time during the period beginning on 1st April, 2008 and ending on 31st March, 2013. Initial assessment is defined as the assessment year relevant to the previous year in which the business of the hospital starts functioning.
80-ID	1-4-2009	Clause (iii) proposed to be inserted in sub-section (2); clause (e) proposed to be inserted in sub-section (6)	Section 80-ID, relating to deduction in respect of profits and gains from business of hotels and convention centres in specified areas is proposed to be amended. Section 80-ID provides for hundred percentage of tax deduction for a period of five years to new hotels of two, three and four star categories and convention centres which are constructed and started or start functioning at any time during the period beginning on 1st April, 2007 and ending on 31st March, 2010. For availing the above benefit the hotel or convention centre should be located in the specified area, which has been defined as the National Capital Territory of Delhi and the districts of Faridabad, Gurgaon, Gautam Buddha Nagar and Ghaziabad. It is proposed to extend the scope of tax benefit available in this section also to new two-star, three-star or four-star hotel, located in specified district having World Heritage Site, if such hotel is constructed and has started or starts functioning at any time during the period beginning on the 1st day of April, 2008 and ending on the 31st day of March, 2013. Specified districts having World Heritage Site are proposed to be the districts of Agra, Jalgoan, Aurangabad, Kancheepuram, Puri, Bharatpur, Chhatarpur, Thanjavur, Bellary, South 24 Parganas (excluding areas failing within Kolkata Urban agglomeration on the basis of the 2001 census), Chamoli, Raisen, Gaya, Bhopal, Panchmahal, Kamrup, Goalpara, Nagaon North Goa, South Goa, Darjeeling and Nilgiri.
88E(3)	1-4-2008	Proposed to be inserted	Section 88E relating to rebate in respect to securities transaction tax is proposed to be amended so as to provide that no deduction of Income-tax under this section shall be allowed in, or after, the assessment year beginning on the 1st April, 2009.
111A(1), 115AD(1)	1-4-2009	Certain words proposed to be substituted	Sections 111A and 115AD relating to tax on short-term capital gains in certain cases are proposed to be amended. Under the existing provisions of section 111A and 115AD, a special rate of tax of ten per cent. is provided on short-term capital gain arising from the transfer of a short-term capital asset, being an equity share in a company or a unit of an equity oriented fund, where such transaction is chargeable to securities transaction tax. It is proposed to increase the rate of tax on such short-term capital gain to fifteen per cent.
115JB	1-4-2001	Explanation proposed to be renumbered as Explanation 1 after sub-section (2); clause (h) proposed to be inserted in Explanation 1; Explanation 2 proposed to be inserted	Section 115JB, relating to special provision for payment of tax by certain companies is proposed to be amended. The said section provides that in case of a company, if the tax payable on the total income, as computed under the Income-tax Act in respect of any previous year is less than seven and-a-half per cent. of its book profit (ten per cent. for previous year relevant to assessment year 2007-08 and onwards), such book profit shall be deemed to be the total income of the assessee and the tax payable for the relevant previous year shall be seven and-a-half per cent. (ten per cent. for previous year relevant to assessment year 2007-08 and onwards) of such book profit. Subsection (2) deals with the preparation of profit and loss account. As per the Explanation after sub-section (2), the expression "book profit" means the net profit as shown in the profit and loss account prepared in accordance with the provisions of Parts II and III of Schedule VI to the Companies Act, 1956 as increased or reduced by certain adjustments, as specified in that section. Clause (a) of the aforesaid Explanation, inter alia, provides that the book profit shall be increased by the amount of income-tax paid or payable and the provision therefor, if debited to profit and loss account. It is proposed to be renumbered the Explanation of section 115JB as Explanation 1 and insert a new clause after clause (g) of the Explanation 1 so as to provide that the book profit shall be increased by the amount of deferred tax and the provision therefor, if debited to profit and loss account. Further it is proposed to insert a new Explanation after Explanation 1 so as to provide that for the purposes of clause (a) of the Explanation 1 the amount of income-tax shall include,— (i) tax on distributed profits or on distributed income under section 115-O or section 115R, respectively; (ii) any interest charged under this Act; (iii) surcharge, if any, as levied by the Central Acts from time to time; (iv) Education Cess on income-tax, if any, levied by the Central Acts from time to time; and (v) Secondary and Higher Education Cess on income-tax, if any, levied by the Central Acts from time to time.
115-O(1A)	1-4-2008	Proposed to be inserted	Section 115-0 relating to tax on distributed income of domestic companies is proposed to be amended. Sub-section (1) of the said section provides, inter alia, that any amount declared, distributed or paid by such company, by way of dividends, shall be charged to additional income-tax or tax on distributed profits at the rate of fifteen per cent. New sub-section (1A) of the said section is proposed to be inserted so as to provide that the amount of dividends referred to in sub-section (1) shall be reduced by the amount of dividend, if any, received by the domestic company during the financial year, if— (a) such amount of dividend is received from its subsidiary; (b) the subsidiary has paid tax under this section on such dividend; and (c) the domestic company is not a subsidiary of any other company. The new sub-section also provides that the same amount of dividend shall not be reduced more than once. For this purpose, a company shall be a subsidiary of another company, if such other company holds more than half in the nominal value of the equity share capital of the company.
115WB	1-4-2008/ 1-4-2009	Certain words proposed to be substituted in clause (i) of Explanation to clause (d) of sub-section (1); sub-clause (iii) proposed to be inserted in clause (B) of sub-section (2); Explanation to clause (E) of sub-section (2) proposed to be substituted; clause (k) of sub-section (2) proposed to omitted	Section 115WB relating to fringe benefits is proposed to be amended. In the said section, the expression “specified security” has been defined, which, inter alia, includes employees’ stock option. It is proposed to amend this definition so as to include securities offered under an employees’ stock option plan or scheme, where the employees’ stock option has been granted. Sub-section (2) of the said section provides that the fringe benefits shall be deemed to have been provided by the employer to his employees, if the employer has in the course of his business or profession (including any activity whether or not such activity is carried on with the object of deriving income, profits or gains), incurred any expense on or made any payment for the specified purposes such as entertainment, hospitality, conference, sales promotion (including publicity), etc. Sub-clauses (i) and (ii) of clause (B) of the said sub-section exclude certain expenditure from the hospitality expenditure for calculation of fringe benefit tax. It is proposed to amend clause (B) to further provide that any expenditure on or payment through non-transferable pre-paid electronic meal card usable only at eating joints or outlets and which fulfils such other conditions as may be prescribed, shall also be excluded from the hospitality expenditure for calculation of fringe benefit tax. Further, the Explanation to clause (E) of the said sub-section excludes certain expenses from the employees’ welfare expenses for calculation of fringe benefit tax. It is proposed to enlarge the scope of the exclusion in this Explanation by providing that the expenditure incurred or payment made to— (i) provide crèche facility for the children of the employee; or (ii) sponsor a sportsman, being an employee; or (iii) organise sports events for employees, shall also be not considered as expenditure on employees’ welfare for calculation of fringe benefit tax. Further, clause (K) of the said sub-section provides for expenditure on maintenance of any accommodation in the nature of guest house, other than accommodation used for training purposes, as fringe benefit. It is proposed to omit this clause so as not to subject this expenditure to fringe benefit tax.
115WC(1)	1-4-2009	Certain words proposed to be substituted in clauses (c) and (d)	Section 115WC relating to value of fringe benefits is proposed to be amended. Section 115WC provides for valuation of various fringe benefits specified in section 115WB. Under clause (c) of subsection (1) of section 115WC, it is provided that the value of fringe benefit relating to expenditure referred to in clauses (A) to (K) of sub-section (2) of section 115WB shall be twenty per cent of the expenses. Similarly, under clause (d) of the said sub-section, it is provided that the value of fringe benefit referred to in clauses (L) to (P) of sub-section (2) of section 115WB shall be fifty per cent of the expenses. The fringe benefit for the purposes of expenses on festival celebrations mentioned in clause (L) of sub-section (2) of section 115WB, is accordingly valued at fifty per cent. Both clauses (c) and (d) of sub-section (1) of section 115WC are proposed to be amended so as to provide that only 20 per cent. of the expenditure on festival celebrations shall be deemed to be the value of fringe benefit and not 50 per cent as under the existing provisions.
115WD(1), Explanation (a)	1-4-2008	Certain words proposed to be substituted	Section 115WD relating to return of fringe benefits is proposed to be amended. Clause (a) of the Explanation to sub-section (1) of the said section provides for the due date for filing of return of fringe benefits by the categories of assessees specified thereunder. Under the said provisions of the Act, the due date for filing return of fringe benefits in the case of a company or a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force, is 31st October of the assessment year. It is proposed to amend the said clause (a) so as to provide that the due date for filing return of fringe benefits shall be 30th September of the assessment year.
115WE	1-4-2008	Sub-section (1) proposed to be substituted by sub-sections (1), (1A), (1B) and (1C)	Section 115WE relating to assessment of fringe benefits is proposed to be amended. Sub-section (1) to the said section is proposed to be substituted so as to provide that where a return has been made under section 115WD, such return shall be processed in the following manner, namely:- (a) the value of fringe benefits shall be computed after making the following adjustments, namely:– (i) any arithmetical error in the return; or (ii) an incorrect claim, if such incorrect claim is apparent from any information in the return; (b) the tax and interest, if any, shall be computed on the basis of the value of fringe benefits computed under clause (a); (c) the sum payable by, or the amount of refund due to, the assessee shall be determined after adjustment of the tax and interest, if any, computed under clause (b) by any advance tax paid, any tax paid on self-assessment and any amount paid otherwise by way of tax or interest; (d) an intimation shall be prepared or generated and sent to the assessee specifying the sum determined to be payable by, or the amount of refund due to, the assessee under clause (c); and (e) the amount of refund due to the assessee in pursuance of the determination under clause (c) shall be granted to the assessee: It is further proposed to provide that no intimation under this sub-section shall be sent after the expiry of one year from the end of the financial year in which the return is made. Further, the expression "an incorrect claim apparent from any information in the return" in the said sub-section has been defined. It is also clarified that the acknowledgment of the return shall be deemed to be the intimation in a case where no sum is payable by, or refundable to, the assessee under clause (c), and where no adjustment has been made under clause (a). It is also proposed to insert new sub-sections (1A), (1B) and (1C) to the said section. Sub-section (1A) provides that for the purpose of processing of returns under sub-section (1), the Board may make a Scheme for centralised processing of returns with a view to expeditiously determining the tax payable by, or refund due to, the assessee as required under that sub-section. Subsection (1B) proposes that for the purpose of giving effect to the Scheme made under sub-section (1A), the Central Government may, by notification in the Official Gazette, direct that any of the provisions of the Act relating to processing of returns shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in that notification so, however, that no direction shall be issued after 31st March, 2009. Subsection (1C) provides that every notification issued under subsection (1B) along with the Scheme, shall, as soon as may be after the notification is issued, be laid before each House of Parliament.
115WKB	1-4-2008	Proposed to be inserted	Section 115WKB relating to deemed payment of tax by the employee is proposed to be inserted. Sub-section (1) of the proposed section provides that where an employer has paid any fringe benefit tax with respect to allotment or transfer of specified security or sweat equity shares, referred to in clause (d) of sub-section (1) of section 115WB, and has recovered such tax subsequently from the employee, it shall be deemed that the fringe benefit tax so recovered is the tax paid by such employee in relation to the value of the fringe benefit provided to him only to the extent to which the amount thereof relates to the value of the fringe benefits provided to such employee, as determined under clause (ba) of sub-section (1) of section 115WC. Sub-section (2) of the new section provides that notwithstanding anything contained in any other provision of this Act, where the fringe benefit tax recovered from the employee is deemed to be the tax paid by such employee under sub-section (1), such employee shall not be entitled, under this Act, to claim any refund out of such payment of tax or any credit of such payment of tax against tax liability on other income or against any other tax liability.
139	1-4-2008	Certain words proposed to be substituted in Explanation 2(a) of sub-section (1); Certain words proposed to be omitted in Explanation (c)(i) to sub-section (9)	Section 139 relating to return of income is proposed to be amended. Clause (a) of Explanation 2 to sub-section (1) of the said section provides for the due date for filing of return of income by the categories of assessees specified thereunder. Under the said provisions of the Act, the due date for filing return of income in the case of a company or a person (other than a company) whose accounts are required to be audited under this Act or under any other law for the time being in force, or a working partner of a firm whose accounts are required to be audited under this Act or under any other law for the time being in force, is 31st October of the assessment year. Said clause is proposed to be amended so as to provide that the due date for filing such return of income shall be 30th September of the assessment year. The Explanation to sub-section (9) of the said section provides for conditions required to be fulfilled so that a return of income is not regarded as defective. Sub-clause (i) of clause (c) of the said Explanation provides that a return shall be regarded as a defective return if it is not accompanied by proof of the tax claimed to have been deducted or collected at source before 1st April, 2008.