GLIMPSE INTO AMENDMENTS BY THE FINANCE ACT, 2015 TO INCOME TAX ACT, 1961 Amendments w.e.f 1.4.2015 SN Section Provision 1 4(1) {r/w Sec. 2(4) of the Finance Act, 2015} {Surcharge} In cases in which tax has to be charged and paid under section 115-O or section 115QA or section 115R(2) or section 115TA of the Income-tax Act, the tax shall be charged and paid at the rates as specified in those sections and shall be increased by a surcharge, for purposes of the Union, calculated at the rate of twelve per cent. of such tax. It means that for the purpose of above mentioned four sections surcharge has been increased from 10% to 12%, applicable from 1.4.2015 vide section 1(2) of the Finance Act, 2015, which is applicable during the FY 2015-16 relevant for AY 2016-17 2 4(1) / (2) {r/w Sec. 2(5) & (6) of the Finance Act, 2015} {Surcharge} Surcharge on TDS in following cases has been increased w.e.f 1.4.2015, which is applicable for FY 2015-16 relevant for AY 2016-17:. (1) 12% in case of non resident, other than a company, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction (>) exceeds one crore rupees. (2) 2% in case of every company, other than a domestic company, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction (>) exceeds one crore rupees but does not (<) exceed ten crore rupees; (3) 5% in case of every company, other than a domestic company, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction (>) exceeds ten crore rupees. 3 4(1) / (2) {r/w Sec. 2(7) & (8) of the Finance Act, 2015} {Surcharge} Surcharge on TCS in following cases has been increased w.e.f 1.4.2015, which is applicable for FY 2015-16 relevant for AY 2016-17: (1) 12% in case of non resident, other than a company, where the amount or the aggregate of such amounts collected and subject to the collection (>) exceeds one crore rupees; (2) 2% in case of every company, other than a domestic company, where the amount or the aggregate of such amounts collected and subject to the collection exceeds (>) one crore rupees but does not exceed (<) ten crore rupees; (3) 5% in case of every company, other than a domestic company, where the amount or the aggregate of such amounts collected and subject to the collection (>) exceeds ten crore rupees.
4 4(1) / (2) {r/w Sec. 2(10) of the Finance Act, 2015} {Surcharge} Surcharge on Advance Tax and TDS on salaries u/s 192 in following cases has been increased w.e.f 1.4.2015, which is payable during FY 2015-16 relevant for AY 2016-17: (1) 12% in case of resident, other than a company, where total income (>) exceeds one crore rupees; (2) 7% in case of domestic company, where the total income (>) exceeds one crore rupees but does not (<) exceed ten crore rupees; (3) 12% in case of domestic company, where total income (>) exceeds ten crore rupees; (4) 2% in case of every company, other than a domestic company, where the total income (>) exceeds one crore rupees but does not (<) exceed ten crore rupees; (5) 5% in case of every company, other than a domestic company, where total income (>) exceeds ten crore rupees; 5 4(1) {r/w Sec. 2(10) of the Finance Act, 2015} {Surcharge} Surcharge on Advance Tax in relation to Minimum Alternate Tax (MAT) & Alternate Minimum Tax (AMT) in following cases has been increased w.e.f 1.4.2015, which is payable during FY 2015-16 relevant for AY 2016-17: (1) 12% in case of resident, other than a company, where total income (>) exceeds one crore rupees; {AMT} (2) 7% in case of domestic company, where the total income (>) exceeds one crore rupees but does not (<) exceed ten crore rupees; (3) 12% in case of domestic company, where total income (>) exceeds ten crore rupees; {MAT} (4) 2% in case of every company, other than a domestic company, where the total income (>) exceeds one crore rupees but does not (<) exceed ten crore rupees; {MAT} (5) 5% in case of every company, other than a domestic company, where total income (>) exceeds ten crore rupees; {MAT} 6 10(11A) {Exemption} Exemption for any payment from an account opened in accordance with the Sukanya Samridhi Account Rules, 2014. Applicable for AY 2015-16 7 10(23C)(iii)(aa) {Exemption} Exemption for income received by any person on behalf of the Swachh Bharat Kosh, set up by the Central Government. Applicable for AY 2015-16
8 10(23C)(iii)(aaa) {Exemption} Exemption for income received by any person on behalf of the Clean Ganga Fund, set up by the Central Government. Applicable for AY 2015-16 9 80C(2)(viii) r/w 80C(4)(ba) {Deduction for subscription} Clause (viii) provides that any sum paid or deposited by the assessee as subscription to any security of the Central Government or any such deposit scheme {Sukanya Samridhi Account vide Notification No. 9/2015 dated 21.1.2015} as the Central Government may notify shall be allowed as deduction u/s 80C(1) up to Rs. 150000/-. Now, this investment can be made in the name of any person specified u/s 80C(4)(ba) viz., in the case of an individual or any girl child of that individual, or any girl child for whom such person is legal guardian, if the scheme so specifies. Applicable for AY 2015-16 10 80G(1)(i) 80G(2)(a)((iiihk) {Donation} 100% Deduction for any sum paid by an assessee into Swachha Bharat Kosh other than the sum spent in pursuance of Corporate Social Responsibility (CSR) u/s 135(5) of the Companies Act, 2013. Applicable for AY 2015-16 11 80G(1)(i) 80G(2)(a)((iiihl) {Donation} 100% Deduction for any sum paid by a resident assessee into Clean Ganga Fund other than the sum spent in pursuance of Corporate Social Responsibility (CSR) u/s 135(5) of the Companies Act, 2013. Applicable for AY 2015-16 Amendment w.e.f 1.6.2015 (Applicable for FY 2015-16 relevant for AY 2016-17) SN Section Provision 1 132B(1)(i) {Application of seized or requisitioned assets} The assets seize u/s 132 or requisitioned u/s 132A may also be used for recovery of the amount of liability arising on an application made before the Settlement Commission u/s 245C(1) of the Act. 2 151(1) {Sanction for issue of notice u/s 148} No notice u/s 148 shall be issued by an Assessing Officer, after the expiry of a period of four years from the end of the relevant assessment year, unless the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner is satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such notice.
3 151(2) {Sanction for issue of notice u/s 148} In a case other than a case falling under sub-section (1), no notice u/s 148 shall be issued by an Assessing Officer, who is below the rank of Joint Commissioner, unless the Joint Commissioner is satisfied, on the reasons recorded by such Assessing Officer, that it is a fit case for the issue of such notice. 4 151(3) {Sanction for issue of notice u/s 148} For the purposes of sub-section (1) and sub-section (2), the Principal Chief Commissioner or Chief Commissioner or the Principal Commissioner or Commissioner or the Joint Commissioner, as the case may be, being satisfied on the reasons recorded by the Assessing Officer about fitness of a case for the issue of notice u/s 148, need not issue such notice himself. 5 153C(1)(b) {Assessment of income of any other person in case of search u/s 132 or requisition u/s 132A} For any books of account or documents, seized or requisitioned, the words belongs or belong have been substituted by the words pertains or pertain to, and the expression or any information contained therein, relates to, has been inserted before a person other than the person referred to in section 153A, then, the books of account or documents or assets, seized or requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person. 6 154(1)(d) Intimation of processing of TCS Statement u/s 206CB)(1) can be rectified. {Rectification of mistake} 7 154(2)(b) {Application Rectification of mistake} The Collector of TCS may make an application u/s 154(1)(d) for rectification of an intimation of processing of TCS Statement u/s 206CB)(1). 8 154(3) {Application Rectification of mistake} 9 154(5) {Application Rectification of mistake} Opportunity to the Collector of TCS before rectification of an intimation of processing of TCS Statement u/s 206CB)(1). Refund of TCS on rectification of an intimation of processing of TCS Statement u/s 206CB)(1).
10 154(6) {Application Rectification of mistake} Service of notice of demand on the Collector of TCS in case of enhancement of TCS on rectification of an intimation of processing of TCS Statement u/s 206CB)(1). 11 154(8) {Application Rectification of mistake} AO is obliged to pass order within 6 months on an application of the Collector of TCS for rectification of an intimation of processing of TCS Statement u/s 206CB)(1). 12 156 Proviso {Notice of demand} Intimation of processing of TCS Statement u/s 206CB)(1) shall be deemed to be a notice u/s 156. 13 158AA {Procedure when in an appeal by revenue an identical question of law is pending before Supreme Court} Deferment of filing of appeal before ITAT where identical question of law is pending in Supreme Court in the case of the assessee for another assessment year. 14 192(2D) {TDS on salary} The person responsible for making the payment referred to in sub-section (1) shall, for the purposes of estimating income of the assessee or computing tax deductible under sub-section (1), obtain from the assessee the evidence or proof or particulars of prescribed claims (including claim for set-off of loss) under the provisions of the Act in such form and manner as may be prescribed. Prescribed means, as per section 2(33), as prescribed in Rules. It means for this purpose relevant rules shall by framed by the CBDT 15 192A {Payment of accumulated balance due to an employee} TDS @ 10% {with valid PAN of employs} on payment out of accumulated balance due to employees participating in a recognised provident fund which is includible in his total income owing to the provisions of rule 8 of Part A of the Fourth Schedule not being applicable, at the time of payment of the accumulated balance due to the employee where such payment is ( ) Rs. 30000/-.
16 194A(3)(i) 2 nd Proviso {Exemption from TDS on term deposits under core banking solutions} A proviso (2 nd proviso) has been inserted to the effect that the amount referred to in the first proviso shall be computed with reference to the income credited or paid by the banking company or the co-operative society or the public company, as the case may be, where such banking company or the co-operative society or the public company has adopted core banking solutions. Accordingly where core banking solutions have been adopted, TDS is to be made accordingly and not branch wise. 17 194A(3)(v) {Exemption from TDS by co-operative banks} Exemption provided from TDS from payment of interest by co-operative banks to its members u/s 194A(3)(v) shall not be available. Explanation. For the purposes of this clause, co-operative bank shall have the same as meaning assigned to it in Part V of the Banking Regulation Act, 1949. 18 194A(3)(ix) {Exemption from TDS on interest motor accident claim} No TDS is to be made on interest on the compensation amount awarded by the Motor Accidents Claims Tribunal at the time of credit keeping in view the provisions of section 56(2)(viii) r/w section 145(b). 19 194A(3)(ixa) {Exemption from TDS on interest on motor accident claim} TDS is to be made on interest on the compensation amount awarded by the Motor Accidents Claims Tribunal when it is paid. However no TDS is to be made where the aggregate of the amounts of such interest income paid during the financial year does not exceed Rs. 50000/-. It means that TDS is to be made when such interest or the aggregate exceeds (>) Rs. 50000/-. 20 194A(3) Explanation 1 {TDS on interest on Recurring Deposits} The definition of time deposits has been amended so as to include recurring deposits within its scope for the purposes of deduction of tax under section 194A. Therefore, TDS is to be made on the interest credited or paid on recurring deposits. However, the existing threshold limit of Rs 10,000 for non-deduction of tax shall also be applicable in case of interest payment on recurring deposits to safeguard interests of small depositors. 21 194C(6) {TDS on payments Relaxation u/s 195(6) of TDS shall now be applicable to the payment in the nature of transport charges (whether paid by a person engaged in the business of transport or otherwise) made to an contractor who is engaged in
to contracts - exemption to small transport contractors} the business of transport i.e. plying, hiring or leasing goods carriage only when such contractor is eligible to compute income as per the provisions of section 44AE of the Act (i.e a person who is not owning more than 10 goods carriage at any time during the previous year) and who has also furnished a declaration to this effect along with his PAN. 22 194-I 3 rd Proviso {TDS on Rent to business trust} A proviso (3 rd proviso) has been inserted to the effect no TDS is to be made under this section where the income by way of rent is credited or paid to a business trust, being a real estate investment trust, in respect of any real estate asset, referred to in clause (23FCA) of section 10, owned directly by such business trust. 23 194LBA(1) {TDS on certain income from units of a business trust} TDS is to be made @ 10% from any distributable income referred to in section 115UA, being of the nature referred to in section 10(23FCA), payable by a business trust to its unit holder being a resident. 24 194LBA(2) {TDS on certain income from units of a business trust} TDS is to be made @ 5% from any distributable income referred to in section 115UA, being of the nature referred to in section 10(23FC), payable by a business trust to its unit holder being a non-resident (not being a company) or a foreign company. 25 194LBA(3) {TDS on certain income from units of a business trust} TDS is to be made at the rates in force {See section 2(37A} from any distributed income referred to in section 115UA, being of the nature referred to in section 10(23FCA), payable by a business trust to its unit holder, being a non-resident (not being a company), or a foreign company. 26 194LBB {TDS on income in respect of units of investment fund} TDS is to be made @ 10 % from any income, other than that proportion of income which is of the same nature as income referred to in Section 10(23FBB), payable to a unit holder in respect of units (as defined u/s 115UB(c)Explanation-1) of an investment fund specified in Section 115UB(a) Explanation 1. 27 194LD(2) {TDS on income The provision of this section shall apply to interest referred to in section 194LD(1) is payable from 1.6.2013 to 1.7.2017.
by way of interest on certain bonds and Government securities} 28 195(6) {Furnishing of information relating to foreign remittance} Subsection (6) has been substituted to the effect that the person responsible for paying to a non-resident, (not being a company), or to a foreign company, any sum, whether or not chargeable under the provisions of this Act, shall furnish the information relating to payment of such sum, in such form and manner, as may be prescribed. Comments (1) prescribed is defined u/s 2(33), according to which it means prescribed by rules made under this Act. Power to make rules is provided u/s 295 of the Act. (2) So far under rule 37BB form Nos. 15CA and 15CB are prescribed. (3) The Board may amend the said rule and the said forms for proper compliance of the above mentioned amended provisions as the existing rule 37BB is applicable in relation to remittance of such sums which are chargeable under the provisions of the Act, whereas the new provision is applicable whether or not such sum chargeable under the provisions of the Act. 29 197A(1A) {No deduction to be made in certain cases} 30 197A(1C) {No deduction to be made in certain cases} 31 200(2A) {Duty of person deducting tax} Declaration for non deduction of tax by a person, other than a company or a firm, under Rule 29C(1) in Form 15G may now also be made for payments covered u/s 192A and 194DA. Declaration for non deduction of tax by an individual resident in India who is of the age of 60 years or more under Rule 29C(1A) in Form 15H may now also be made for payments covered u/s 192A and 194DA. In case of an office of the Government, where the TDS made under Chapter XVII-B or tax referred to in sub-section (1À) of section 192 has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person, by whatever name called, who is responsible for crediting such sum or tax to the credit of the Central Government, shall deliver or cause to be delivered to the prescribed incometax authority, or to the person authorised by such authority, a statement in such form, verified in such manner, setting forth such particulars and within such time as may be prescribed.
32 200(A)(1)(c) {Processing of statements of TDS} The regular or correction statement of TDS shall be processed to compute the fee, if any u/s 234E. 33 200(A)(1)(d) {Processing of statements of TDS} The regular or correction statement of TDS shall be processed to determine the sum payable by, or the amount of refund due to, the deductor after adjustment of the amount computed under clause (b) and clause (c) against any amount paid under section 200 or section 201 or section 234E and any amount paid otherwise by way of tax or interest or fee; 34 200(A)(1)(e) {Processing of statements of TDS} After processing the regular or correction statement of TDS an intimation shall be prepared or generated and sent to the deductor specifying the sum determined to be payable by, or the amount of refund due to, him under clause (d). 35 200(A)(1)(f) {Processing of statements of TDS} After processing the regular or correction statement of TDS the amount of refund due to the deductor in pursuance of the determination under clause (d) shall be granted to the deductor. 36 203A(3) {TDS & TCS Number} The provisions of this section shall not apply to such person, as may be notified by the Central Government in this behalf. 37 206C(3A) {TCS under Chapter XVII-BB} In case of an office of the Government, where the amount collected under sub-section (1) or sub-section (1C) or sub-section (1D) has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person, by whatever name called, who is responsible for crediting such tax to the credit of the Central Government, shall deliver or cause to be delivered to the prescribed income-tax authority, or to the person authorised by such authority, a statement in such form, verified in such manner, setting forth such particulars and within such time as may be prescribed.
38 206C(3B) {TCS under Chapter XVII-BB} The person referred to in the proviso to sub-section (3) may also deliver to the prescribed authority under the said proviso, a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under the said proviso in such form and verified in such manner, as may be specified by the authority. 39 206CB Provisions for processing of regular and correction statement of TCS. {Processing of statement of TCS} 40 220(2C) {When tax payable and when assessee deemed in default} Notwithstanding anything contained in section 220(2), where interest is charged u/s 206C(7) on the amount of tax specified in the intimation issued u/s 206CB(1) for any period, then, no interest shall be charged u/s 220(2) on the same amount for the same period. 41 234B(2A)(a) {Interest for default in payment of advance tax} Where an application u/s 245C(1) for any assessment year has been made, the assessee shall be liable to pay simple interest at the rate of 1% for every month or part of a month comprised in the period commencing on the 1st day of April of such assessment year and ending on the date of making such application, on the additional amount of income-tax referred to in that subsection. 42 234B(2A)(b) {Interest for default in payment of advance tax} Where as a result of an order of the Settlement Commission u/s 245D(4) for any assessment year, the amount of total income disclosed in the application u/s 245C(1) is increased, the assessee shall be liable to pay simple interest at the rate of 1% for every month or part of a month comprised in the period commencing on the 1st day of April of such assessment year and ending on the date of such order, on the amount by which the tax on the total income determined on the basis of such order exceeds the tax on the total income disclosed in the application filed u/s 245C(1). 43 234B(3) {Interest for default in payment of advance tax} Where, as a result of an order of reassessment or recomputation under section 147 or section 153A, the amount on which interest was payable in respect of shortfall in payment of advance tax for any financial year under sub-section (1) is increased, the assessee shall be liable to pay simple interest at the rate of 1% for every month or part of a month comprised in the period commencing on the 1st day of April next following such financial year and ending on the date of the reassessment or recomputation under section 147 or section 153A, on the amount by which the tax on the total income determined on the basis of the reassessment or recomputation exceeds the tax on the total income
determined u/s 143(1) or on the basis of the regular assessment as referred to in subsection (1), as the case may be. 44 234B(4) Order of the Settlement Commission u/s 245D(4) has been omitted. {Interest for default in payment of advance tax} 45 246A(1) Any Collector of TCS can also file an appeal u/s 246A(1). {Appealable orders before CIT(Appeals)} 46 246A(1)(a) {Appealable orders before CIT(Appeals)} Intimation of processing of TCS Statement u/s 206CB(1) has now been made an appealable order. 47 253(1)(f) {Appeal to the Appellate Tribunal} An order passed by the prescribed authority u/s 10(23C)(vi) or u/s 10(23C)(via) has now been made an appealable order. 48 255(3) {Procedure of Appellate Tribunal} Threshold limit for hearing of appeal by Single Member Bench of ITAT has been increased from total income computed by AO from Rs. 500000/- to Rs. 1500000/-. 49 263(1) Explanation 2 {Revision of orders prejudicial to revenue} In order to provide clarity on the expression erroneous in so far as it is prejudicial to the interests of the revenue, following Explanation has been inserted :- For the purposes of this section, it is hereby declared that an order passed by the Assessing Officer shall be deemed to be erroneous in so far as it is prejudicial to the interests of the revenue, if, in the opinion of the Principal Commissioner or Commissioner,
(a) the order is passed without making inquiries or verification which should have been made; (b) the order is passed allowing any relief without inquiring into the claim; (c) the order has not been made in accordance with any order, direction or instruction issued by the Board under section 119; or (d) the order has not been passed in accordance with any decision which is prejudicial to the assessee, rendered by the jurisdictional High Court or Supreme Court in the case of the assessee or any other person. 50 269SS {Mode of taking or accepting certain loans, deposits and specified sum} In order to curb generation of black money by way of dealings in cash in immovable property transactions, section 269SS has been substituted to provide that no person shall accept from any person any loan or deposit or any sum of money, whether as advance or otherwise, in relation to transfer of an immovable property otherwise than by an account payee cheque or account payee bank draft or by electronic clearing system through a bank account, if the amount of such loan or deposit or such specified sum is Rs. 20000/- or more. 51 269T {Mode of taking or accepting certain loans, deposits and specified sum} In order to curb generation of black money by way of dealings in cash in immovable property transactions, section 269T has been amended to provide that no person shall repay any loan or deposit made with it or any specified advance received by it, otherwise than by an account payee cheque or account payee bank draft or by electronic clearing system through a bank account, if the amount or aggregate amount of loans or deposits or specified advances is Rs 20000/- or more. The specified advance shall mean any sum of money in the nature of an advance, by whatever name called, in relation to transfer of an immovable property whether or not the transfer takes place. 52 271D {Penalty for failure to comply Sec. 269SS} Section 271D has been amended to provide that the penalty shall also be imposed in relation to the specified sum. 53 271E {Penalty for failure to comply Sec. 269T} Section 271E has been amended to provide that the penalty shall also be imposed in relation to the specified advance.
54 271-I {Penalty for failure to furnish information or furnishing inaccurate information u/s 195} If a person, who is required to furnish information under sub-section (6) of section 195, fails to furnish such information; or furnishes inaccurate information, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of Rs. 100000/-. 55 271A(2)(m) {Penalty for failure file TDS / TCS statements by Govt. Deductors} Penalty of Rs. 100/- per day may be imposed for failure to deliver or cause to be delivered a statement within the time as may be prescribed under sub-section (2A) of section 200 or sub-section (3A) of section 206C. 56 271A(2) 1 st Proviso {Penalty for failure to answer questions etc.} The 1 st proviso has been amended to the effect that the amount of penalty in relation to statements required to be furnished u/s 200(2A) and 206C(3A) shall not exceed the amount of tax deductible or collectible, as the case may be. 57 288(2) Explanation {Accountant - defined} In this section, accountant means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 who holds a valid certificate of practice under sub-section (1) of section 6 of that Act, but does not include [except for the purposes of representing the assessee under sub-section (1)] (a) in case of an assessee, being a company, the person who is not eligible for appointment as an auditor of the said company in accordance with the provisions of sub-section (3) of section 141 of the Companies Act, 2013; or (b) in any other case, (i) the assessee himself or in case of the assessee, being a firm or association of persons or Hindu undivided family, any partner of the firm, or member of the association or the family; (ii) in case of the assessee, being a trust or institution, any person referred to in clauses (a), (b), (c) and (cc) of sub-section (3) of section 13;
(iii) in case of any person other than persons referred to in subclauses (i) and (ii), the person who is competent to verify the return under section 139 in accordance with the provisions of section 140; (iv) any relative of any of the persons referred to in sub-clauses (i), (ii) and (iii); (v) (vi) an officer or employee of the assessee; an individual who is a partner, or who is in the employment, of an officer or employee of the assessee; (vii) an individual who, or his relative or partner (I) is holding any security of, or interest in, the assessee: Provided that the relative may hold security or interest in the assessee of the face value not exceeding one hundred thousand rupees; (II) is indebted to the assessee: Provided that the relative may be indebted to the assessee for an amount not exceeding one hundred thousand rupees; (III) has given a guarantee or provided any security in connection with the indebtedness of any third person to the assessee: Provided that the relative may give guarantee or provide any security in connection with the indebtedness of any third person to the assessee for an amount not exceeding one hundred thousand rupees; (viii) a person who, whether directly or indirectly, has business relationship with the assessee of such nature as may be prescribed; (ix) a person who has been convicted by a court of an offence involving fraud and a period of ten years has not elapsed from the date of such conviction. Comments (1) business is defined u/s 2(13), according to which it includes trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture.
It may be noted that the above definition does not include profession, which is otherwise defined u/s 2(36) to include vocation. (2) prescribed is defined u/s 2(33), according to which it means prescribed by rules made under this Act. Power to make rules s provided u/s 295 of the Act. It means that the Board shall frame rules in specifying the nature of business relationships for the purpose of above mentioned sub-clause (viii). 58 288(4) {Disqualifications for representing an assessee in terms of section 288(1)} Sub-section (4) has been amended to the effect that a person (c) who has become an insolvent or (d) who has been convicted by a court for an offence involving fraud, shall be qualified to represent an assessee under subsection (1), for the period during which the insolvency continues in the case of a person referred to in clause (c), and for a period of ten years from the date of conviction in the case of person referred to in clause (d). 59 288(7) Explanation {Relative for the purpose on this section} Explanation. For the purposes of this section, relative in relation to an individual, means (a) spouse of the individual; (b) brother or sister of the individual; (c) brother or sister of the spouse of the individual; (d) any lineal ascendant or descendant of the individual; (e) any lineal ascendant or descendant of the spouse of the individual; (f) spouse of a person referred to in clause (b), clause (c), clause (d) or clause (e); (g) any lineal descendant of a brother or sister of either the individual or of the spouse of the individual. Comments (1) The above definition of relative is operative only for the purpose of section 288. (2) The above definition of relative is different from the definition of relative provided for the purpose of different clauses u/s 56(2) of the Act (3) The above definition of relative is also different from the definition of relative provided for the purpose of the Act clauses u/s 2(41) of the Act. *****************
Disclaimer This document has been prepared for academic use only, to have quick look of the amendments and to know the scope of the amendment by just having a glimpse into it and to share the same with the fellow professionals and all concerned. Though every effort has been made to avoid errors or omissions in this document yet any error or omission may creep in. Therefore, it is notified that I shall not be responsible for any damage or loss of action to any one, of any kind, in any manner there from. I shall also not be liable or responsible for any loss or damage to any one in any matter due to difference of opinion or interpretation in respect of the text. On the contrary it is suggested that to avoid any doubt the user should cross check the correct law and the contents with the published / notified / Gazetted materials including the referred Finance Act, 2015 and the Income Tax Act, 1961 (as amended from time to time). Dated : 1.6.2015 Conceived and prepared by CA. Rajiv Kumar Jain 5269, Ajit Mansion, Shradhanand Marg, Delhi-110006 : 23214596 Mobile : 9810288997 E mail ID : rajivkjain0608@gmail.com E mail ID : rajivkjain0608@rediffmail.com