Sl. No.

Name of the Member and text of Amendments

Clause

SHRI P. CHIDAMBARAM:

15.

Page 3 after line 54, insert–

            ‘Provided that in the case of every woman, resident in India and below the age of sixty-five years at any time during the previous year, referred to in item (II) of paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words “one lakh rupees”, the words “one lakh thirty-five thousand rupees” had been substituted:

            Provided further that in the case of every individual, being a resident in India, who is of the age of sixty-five years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words “one lakh rupees”, the words “one lakh eighty-five thousand rupees” had been substituted:”.

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16.

Page 3, line 55, for “Provided”, substitute “Provided also”.

2

17.

Page 5, for lines 11 to 13, substitute—

“Provided that no deduction under this section shall be allowed to an assessee who does not furnish a return of his income on or before the due date specified under sub-section (1) of section 139.”.

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18.

Page 8, line 3, omit “out of his income chargeable to tax”.

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19.

Page 13, omit lines 43 to 45.

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20.

Page 14, line 1, for “(ii)”, substitute “(i)”.

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21.

Page 14, line 2, for “(iii)”, substitute “(ii)”.

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22.

Page 14, for line 3, substitute –

            “(iii) an association of persons or a body of individuals, whether incorporated or not, but excluding any fund or trust or institution eligible for exemption under clause (23C) of section 10 or registered under section 12AA;”.

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23.

Page 14, line 4, for “(v)”, substitute “(iv)”

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24.

Page 14, line 5, for “(vi)” substitute “(v)”

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25.

Page 14, for lines 16 to 48, substitute—

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‘Fringe benefits.

115WB. (1) For the purposes of this Chapter, “fringe benefits” means any consideration for employment provided by way of—

(a) any privilege, service facility or amenity, directly or indirectly, provided by an employer, whether by way of reimbursement or otherwise, to his employees (including former employee or employees);

(b) any free or concessional ticket provided by the employer for private journeys of his employees or their family members; and

(c) any contribution by the employer to an approved superannuation fund for employees.

(2) 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 following purposes, namely:—

(A) entertainment;

(B) provision of hospitality of every kind by the employer to any person, whether by way of provision of food or beverages or in any other manner whatsoever and whether or not such provision is made by reason of any express or implied contract or custom or usage of trade but does not include—

(i) any expenditure on, or payment for, food or beverages provided by the employer to his employees in office or factory;

(ii) any expenditure on or payment through paid vouchers which are not transferable any usable only at eating joints or outlets;

(C) conference (other than fee for participation by the employees in any conference).

Explanation.- for the purposes of this clause, any expenditure on conveyance, tour and travel (including foreign travel). on hotel, or boarding and lodging in connection with any conference shall be deemed to be expenditure incurred for the purposes of conference:

(1) sales promotion including publicity:

Provided that any expenditure on advertisement

(i) being the expenditure (including rental) on advertisement of any form in any print (including journals, catalogues or price lists) or electronic media or transport system;

(ii) being the expenditure on the holding of, or the participation in, any press conference or business convention, fair or exhibition;

(iii) being the expenditure on sponsorship of any sports event or any other event organized by any Government agency or trade association or body;

(iv) being the expenditure on the publication in any print or electronic media of any notice required to be published by or under any law or by an order of a court of tribunal;

(v) being the expenditure of advertisement by way of signs, art work, painting, banners, awnings, direct mail, electric spectaculars, kiosks, hoardings, bill boards or by way of such other medium of advertisement; and

(vi) being the expenditure by way of payment to any advertising agency for the purposes of clauses (i) to (v) above,

shall not be considered as expenditure on sales promotion including publicity;

(E) employees’ welfare,

Explanation.- For the purposes of this clause, any expenditure incurred or payment made to fulfil any statutory obligation or mitigate occupational hazards or provide first aid facilities in the hospital or dispensary run by the employer shall not be considered as expenditure for employees’ welfare;

(F) conveyance, tour and travel (including foreign travel);

(G) use of hotel, boarding and lodging facilities;

(H) repair, running (including fuel), maintenance of motorcars and the amount of depreciation thereon;

(I) repair, running (including fuel) and maintenance of aircrafts and the amount of depreciation thereon;

(J) use of telephone (including mobile phone) other than expenditure on leased telephone lines;

(K) maintenance of any accommodation in the nature of guest house other than accommodation used for training purposes;

(L) festival celebrations;

(M) use of health club and similar facilities;

(N) use of any other club facilities;

(O) gifts; and

(P) scholarships.’.

26. 

Page 15, for lines 1 to 5, substitute—

“(3) For the purposes of sub-section (1), the privilege, service, facility or amenity does not include perquisites in respect of which tax is paid or payable by the employee.”.

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27.

Page 15, for lines 6 to 42, substitute -

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‘Value of fringe benefits.

115WC. (1) For the purpose of this Chapter, the value of fringe benefits shall be the aggregate of the following, namely:—

(a) cost at which the benefits referred to in clause(b) of sub-section (1) of section 115WB, is provided by the employer to the general public as reduced by the amount, if any, paid by, or recovered from, his employee or employees:

Provided that in a case where the expenses of the nature referred to in clause (b) of sub-section (1) of section 115WB are included in any other clause of sub-section (2) of the said section, the total expenses included under such other clause shall be reduced by the amount of expenditure referred to in the said clause (b) for computing the value of fringe benefits;

(b) actual amount of contribution referred to in clause (c) of sub-section (1) of section 115WB;

(c) twenty per cent. of the expenses referred to in clauses (A) to (K) of sub-section (2) of section 115WB;

(d) fifty per cent. of the expenses referred to in clauses (L) to (P) of sub-section (2) of section 115WB. 

(2) Notwithstanding anything contained in sub-section (1), -

(a) in the case of an employer engaged in the business of hotel, the value of fringe benefits for the purposes referred to in clause (B) of sub-section (2) of section 115WB shall be “five per cent.” instead of “twenty per cent.” referred to in clause (c) of sub-section (1); 

(b) in the case of an employer engaged in the business of construction, the value of fringe benefits for the purposes referred to in clause (F) of sub-section (2) of section 115WB shall be “five per cent.” instead of “twenty per cent.” referred to in clause (c) of subsection (1);

(c) in the case of an employer engaged in the business of manufacture or production of pharmaceuticals, the value of fringe benefits for the purposes referred to in clauses (F) and (G) of sub-section (2) of section 115WB shall be “five per cent.” instead of “twenty per cent.” referred to in clause (c) of sub-section (1);

(d) in the case of an employer engaged in the business of manufacture or production of computer software, the value of fringe benefits for the purposes referred to in clauses (F) and (G) of subsection (2) of section 115WB shall be “five per cent.” instead of “twenty per cent.” referred to in clause (c) of sub-section (1);

(e) in the case of an employer engaged in the business of carriage of passengers or goods by motor car, the value of fringe benefits for the purposes referred to in clause (H) of sub-section (2) of section 115WB shall be “five per cent.” instead of “twenty per cent.” referred to in clause (c) of sub-section (1);

(f) in the case of an employer engaged in the business of carriage of passengers or goods by aircraft, the value of fringe benefits for the purposes referred to in clause (I) of sub-section (2) of section 115WB shall be taken as Nil.’. 

28.

Page 18, line 8, for “115W-I”, substitute “115WI”.

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29.

Page 19, for lines 18 to 23, substitute -

(iii) in the first proviso,-

(A) for the words “at any time during the previous year”, the words “during the previous year incurs an expenditure of fifty thousand rupees or more towards consumption of electricity or at any time during, the previous year” shall be substituted;

(B) clause (iii) shall be omitted;’. 

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30.

Page 20, for lines 34 and 35, substitute -

‘(c) in sub-section (3), for the words, brackets and figures “sub-sections (1) and (2)”, the words, brackets, figures and letters “sub-sections (1), (1A), (1B) and (2)” shall be substituted;

(d) in the proviso to Explanation 1, for the words, brackets, figures and letter “in sub-sections (1), (2) and (2A)”, the words, brackets, figures and letters “in sub-sections (1), (1A), (1B), (2) and (2A)” shall be substituted.’. 

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31.

Page 21, line 22, for “fund or company”, substitute “company or fund”.

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32.

33.

34.

35.

Page 24, for line 25, substitute-

‘ “(e) determination of origin of the goods in terms of the rules notified under the Customs Tariff Act, 1975(51 of 1975) and matters relating thereto.” ‘;

for lines 34 and 35, substitute—

‘In section 128 A of the Customs Act, in sub-section (5), for the words “and the Commissioner of Customs”, the words “, the Chief Commissioner of Customs and the Commissioner of Customs” shall be substituted.’.

for lines 38 and 39, substitute-

‘ “ (1B) (i) The Board may, by notification in the Official Gazette, constitute such Committees as may be necessary for the purposes of this Act.

(ii) Every Committee constituted under clause (i) shall consist of two Chief Commissioners of Customs or two Commissioners of Customs, as the case may be.”‘;

Page 24,—

in line 42, omit “Chief”.

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36.

37.

38.

Page 27,—

for lines 32 and 33, substitute—

‘78. In section 35 A of the Central Excise Act, in sub-section (5), for the words “and the Commissioner of Central Excise”, the words “the Chief Commissioner of Central Excise and the Commissioner of Central Excise” shall be substituted.’.

Page27, for lines 36 to 38, substitute—

‘ “(1B) (i) The Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963(54 of 1963) may by notification in the in the Official Gazette, constitute such Committees as may be necessary for the purposes of this Act.

Every Committee constituted under clause (i) shall consist of two Chief Commissioner; of Central Excise or two Commissioners of Central Excise as the case may be.”‘;

Page 27, in line 41, omit “Chief”.

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39.

Page 38, for lines 1 to 8, substitute—

“(a) a transaction, being withdrawal of cash (by whatever mode) on any single day from an account (other than a savings bank account) maintained with any scheduled bank, exceeding. -

(i) twenty-five thousand rupees, in case such withdrawal is from the account maintained by any individual or Hindu undivided family; (ii) one lakh rupees, in case such withdrawal is from the account maintained by a person other than any individual or Hindu undivided family; or 

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(b) a transaction, being receipt of cash from any scheduled bank on any single day on encashment of one or more term deposits, whether on maturity or otherwise, from that bank, exceeding,-

(i) twenty-five thousand rupees, in case such term deposit or deposits are in the name of any individual or Hindu undivided family;

(ii) one lakh rupees, in case such term deposit or deposits are by any person other than any individual or Hindu undivided family;”.

40. 

Page 38, for lines 13 to 29, substitute -

95

95. “Charge of banking cash transaction tax (1) On and from the commencement of this Chapter, there shall be charged a banking cash transaction tax, in respect of every taxable banking transaction entered into on or after the 1st day of June, 2005, at the rate of 0.1 per cent. of the value of every such taxable banking transaction.

(2) The banking cash transaction tax referred to in sub-section (1) shall be payable,— 

(i) in respect of taxable banking transaction referred to in sub-clause (a) of clause (8) of section 94, by the individual or Hindu undivided family referred to in sub-clause (i) or a person referred to in sub-clause (ii) of said clause (a), from whose account the cash is withdrawn from any scheduled bank;

(ii) in respect of taxable banking transaction referred to in sub-clause (b) of clause (8) of section 94, by the person who receiver the cash on encashment of term deposit or deposits:

Provided that no banking cash transaction tax shall be payable if the amount of the term deposit or deposits is credited to any account with the bank.”.

41.

Page 38, for lines 30 to 36, substitute -

96

96. Value of taxable banking transaction The value of taxable banking transaction shall be,—

(i) in respect of taxable banking transaction referred to in sub-clause (a) of clause (8) of section 94, the amount of cash withdrawn;

(ii) in respect of taxable banking transaction referred to in sub-clause (b) of clause (8) of section 94, the amount of cash received on encashment of term deposit or deposits.”.

42.

Page 38, line 38. omit “or clause (iii)”.

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43.

Page 40, line 11, omit “withdrawal”.

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44.

Page 49, for lines 42 to 49, substitute -

.

 The First Schedule

“Rates of income-tax

(1) where the total income does not exceed Rs. 1,35,000 

Nil;

10 per cent. of the amount by which the total income exceeds Rs. 1,35,000;

(2) where the total income exceeds Rs. 1,35,000

but does not exceed Rs. 1,50,000

(3) where the total income exceeds Rs. 1,50,000

but does not exceed Rs. 2,50,000

Rs. 1,500 plus 20 per cent. of the amount by which the total income exceeds Rs. 1,50,000; 

(4) where the total income exceeds Rs. 2,50,000

Rs. 21,500 plus 30 per cent. of the amount by which the total income exceeds Rs. 2,50,000.”. 

45.

Page 50, for lines 3 to 8, substitute-

The First Schedule.

“Rates of income-tax

(1) where the total income does not exceed Rs. 1,85,000

(2) where the total income exceeds Rs. 1,85,000

but does not exceed Rs. 2,50,000

(3) where the total income exceeds Rs. 2,50,000

Nil;

20 per cent. of the amount by which the total income exceeds Rs. 1,85,000;

Rs. 13,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 2,50,000.”. 

46.

Page 77, after line 15, insert—

‘30A 3004       (i) Patent or proprietary medicaments, other than those medicaments which are exclusively Ayurvedic, Unani, Siddha, Homoeopathic or Bio-chemic;

(ii) Medicaments (other than patent or proprietary) other than those which are exclusively used in Ayurvedic, Unani, Siddha, Homoeopathic or Bio-chemic systems.

‘Explanation - For the purpose of this heading. “Patent or proprietary medicaments” means any drug or medicinal preparation, in whatever form, for use in the internal or external treatment of, or for the prevention of ailments in human beings or animals, which bears either on itself or on its container or both, a name which is not specified in a monograph, in a Pharmacopoeia, Formulary or other publications, namely:-

(a) the Indian Pharmacopoeia;

(b) the International Pharmacopoeia;

(c) the National Formulary of India;

(d) the British Pharmacopoeia;

(e) the British Pharmaceutical Codex;

(f) the British Veterinary Codex;

(g) the United States Pharmacopoeia;

(h) the National Formulary of the U.S.A.;

(i) the Dental Formulary of