NORMALLY the Finance Bill which we usually call the Budget comes into effect on it receiving the assent of the President. But it is not all that simple. Now with every Budget having its usual quota of retrospective amendments, many provisions of the Budget come into effect many many years before the Budget is presented. Can you imagine an Additional Commissioner being given the power to search with effect from 1.6.1994? – Yes, a full 15 years before the budget was presented.
We have been getting calls from Netizens about the effective dates of various provisions. In the Income Tax side, most of the provisions of the Finance Bill will come into force with effect from 01.04.2010; here is a list of some important provisions and their effective dates.
INCOME TAX
Sl. No.
With effect from
Subject
1.
01.04.2011
Amendment to Section 44AA – Maintenance of Accounts
2.
01.04.2011
Amendment to Section 44AB – Audit of Accounts
3.
01.04.2011
Section 44AD Substituted – Presumptive Income
4.
01.04.2011
Amendment to Section 44AE – Income from goods Transport.
5.
01.10.2009
Amendment to Section 50C – Value of Capital asset transferred
6.
01.10.2009
Amendment to Section 56 – Transactions without consideration of more than Rs. 50,000/-
7.
01.04.2003
Amendment to Section 80A – Deductions
8.
01.10.2009
Amendment to Section 80G – Charitable Institutions
9.
01.04.2008
Amendment to Section 80IA – Power Generation
10.
01.04.2000
Section 80IB – Tax Holiday
11.
01.10.2009
Section 90 Substituted – DTAA – See Cobweb
12.
01.10.2009
Amendment to Section 92C – Transfer Pricing – Arm's Length Price
13.
01.04.1998
Amendment to Section 115JA – Deemed Income
14.
01.04.2001
Amendment to Section 115JB
15.
01.10.2009
Amendment to Section 131 – Discovery, Inspection etc – "Dispute Resolution Panel" included
16.
01.06.1994
Amendment to Section 132 – Search and Seizure – Additional Commissioner Empowered
17.
01.10.2009
Amendment to Section 139A – PAN – "Quarterly" removed
18.
01.04.1989
Amendment to Section 147 – Reassessment – Scope enhanced
19.
01.10.2009
Section 194C Substituted – TDS – Payment to Contractors
20.
01.10.2009
Amendment to Section 194I – TDS – Rent
21.
01.10.2009
Amendment to Section 200 – Quarterly Returns gone – Periodicity to be prescribed
22.
01.10.2009
Amendment to Section 201 – TDS failure
23.
01.10.2009
Amendment to Section 203A – Quarterly Statement is no more quarterly
24.
01.10.2009
Amendment to Section 206A & 206C – Quarterly to unspecified period
25.
01.10.2009
Amendment to Section 246A – Dispute Resolution Panel
26.
01.10.2009
Amendment to Section 253 – Appeal to ITAT – Dispute Resolution Panel
27.
01.06.2007
Amendment to Section 271 – Concealment of Income
28.
01.04.1988
Amendment to Section 271B – Provisional Attachment
29.
01.10.2009
Substitution of Section 282 – Service of Notice – Courier and Email recognized
30.
01.10.2010
New Section 282B – Allotment of Document Identification Number
31.
01.10.2009
New Section 293C – Power to Withdraw approval
CUSTOMS
Sl. No.
With effect from
Subject
1.
01.07.2003
Amendmentto Section 130 – High Court's Power to condone delay
2.
01.07.1999
Amendment to Section 130A - High Court's Power to condone delay
3.
Date of enactment of Finance Bill 2009
Insertion of Section 26A – Refund of import duty in certain cases
4.
A date to be notified
Amendment to Section 28F – Merger of AAR for Customs, Excise & Service Tax with AAR for Direct taxes
5.
Date of enactment of Finance Bill 2009
Amendment to Sections 137 & 156 – Amendment to provisions related to compounding of offences
6.
09.05.2000
Investing Officers of DGCEI with powers of Officers of Customs
7.
01.05.2006; 19.02.2009 etc for various provisions in the proposed amendments to the notification
Exemption for imports against DFIA – Retrospective amendments to Notification 40/2006- Cus dated May 1, 2006
8.
Date of enactment of Finance Bill 2009
Amendment to Section 3 of Customs Tariff Act, 1975 – Assessment of CVD based on tariff value for certain goods
9.
14.05.1997
Amendment to Section 8B of Customs Tariff Act, 1975 – Applicability of provisions of Customs Act for the purpose of determination of duty rate, assessment, refund, interest etc for Safe guard Duty
10.
11.05.2002
Amendment to Section 8C of Customs Tariff Act, 1975 – Applicability of provisions of Customs Act for the purpose of determination of duty rate, assessment, refund, interest etc for Specific Safe guard Duty
11.
01.01.1995
Amendment to Section 9 of Customs Tariff Act, 1975 – Applicability of provisions of Customs Act for the purpose of determination of duty rate, assessment, refund, interest etc for Countervailing Duty on subsidized articles
12.
01.01.1995
Amendment to Section 9A of Customs Tariff Act, 1975 – Provisions related to Antidumping duty
13.
Date of enactment of Finance Bill 2009
Amendment to Section Note 2 of Section XI of Customs Tariff Act, 1975 – Classification of textile articles containing mixture of two or more materials
Central Excise
Sl. No.
With effect from
Subject
1.
01.07.2003
Amendment to Section 35G – High Court's Power to condone delay
2.
01.07.1999
Amendment to Section 35H - High Court's Power to condone delay
3.
Date of enactment of Finance Bill 2009
Amendment to Section 9A & 37 of Central Excise Act, 1944– Amendment to provisions related to compounding of offences
4.
Date of enactment of Finance Bill 2009
Amendments to Sections 14A & 14AA – Amendments related to Special Audit provisions
5.
A date to be notified
Amendment to Section 23A - Merger of AAR for Customs, Excise & Service Tax with AAR for Direct taxes
6.
01.08.1997 & 10.03.1998
Amendment to provisions related to Compounded levy scheme for Steel induction furnaces
7.
Immediate Effect
Amendment to Chapter Notes 8 and 21 of Central Excise Tariff Act, 1985
Service Tax
Sl. No.
With effect from
Subject
1.
Date of enactment of Finance Bill 2009
The Intaxication – beer effect – amendment to Section 65(19)
2.
16.05.2008
providing instead of Acquiring - amendment to clause zzzze – Information Technology
3.
A date to be notified
New services
4
01.01.2005
Exemption to services provided to GTAs
5.
Date of enactment of Finance Bill 2009
Amendment to Section 84 of Finance Act, 1994 – Appeals to Commissioner (Appeals) and deletion of Review provisions
6.
Date of enactment of Finance Bill 2009
Amendment to Section 94 – Power to make rules for determination of rate of tax and place of taxable services
7.
Date of enactment of Finance Bill 2009
Amendment to Section 95 – Power to remove difficulties – Removal of difficulties in classification and assessment of taxable services
8.
A date to be notified
Amendment to Section 96A - Merger of AAR for Customs, Excise & Service Tax with AAR for Direct taxes
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