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EXTRAORDINARY
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PART II -- Section 1
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PUBLISHED BY AUTHORITY
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No. 57] NEW DELHI, THURSDAY, DECEMBER 15, 2016/AGRAHAYANA 24, 1938 (SAKA)
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Separate paging is given to this Part in order that it may be filed as a separate compilation.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, Thursday, 15th December, 2016/Agrahayana 24, 1938 (Saka)
The following Act of Parliament received the assent of the President on the
15th December, 2016, and is hereby published for general information:--
THE TAXATION LAWS (SECOND AMENDMENT) ACT, 2016
(NO. 48 OF 2016)
[15th December, 2016.]
An Act further to amend the Income-tax Act, 1961 and the Finance Act, 2016.
BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as
follows:--
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Taxation Laws (Second Amendment) Act, 2016. Short title and
commencement.
(2) Save as otherwise provided in this Act, it shall come into force at once.
CHAPTER II
INCOME-TAX
43 of 1961. 2. In the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act), in Amendment of
section 115BBE, for sub-section (1), the following sub-section shall be substituted with section 115BBE.
effect from the 1st day of April, 2017, namely:--
"(1) Where the total income of an assessee,--
(a) includes any income referred to in section 68, section 69, section 69A,
section 69B, section 69C or section 69D and reflected in the return of income
furnished under section 139; or
2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II--
(b) determined by the Assessing Officer includes any income referred to
in section 68, section 69, section 69A, section 69B, section 69C or section 69D,
if such income is not covered under clause (a),
the income-tax payable shall be the aggregate of--
(i) the amount of income-tax calculated on the income referred to in
clause (a) and clause (b), at the rate of sixty per cent.; and
(ii) the amount of income-tax with which the assessee would have
been chargeable had his total income been reduced by the amount of
income referred to in clause (i).".
Amendment 3. In the Income-tax Act, in section 271AAB,--
of section
271AAB. (I) in sub-section (1), after the words, figures and letters "the 1st day of July,
2012", the words, brackets and figures "but before the date on which the Taxation
Laws (Second Amendment) Bill, 2016 receives the assent of the President" shall be
inserted;
(II) after sub-section (1), the following sub-section shall be inserted, namely:--
"(1A) The Assessing Officer may, notwithstanding anything contained in
any other provisions of this Act, direct that, in a case where search has been
initiated under section 132 on or after the date on which the Taxation Laws
(Second Amendment) Bill, 2016 receives the assent of the President, the assessee
shall pay by way of penalty, in addition to tax, if any, payable by him,--
(a) a sum computed at the rate of thirty per cent. of the undisclosed
income of the specified previous year, if the assessee--
( i ) in the course of the search, in a statement under
sub-section (4) of section 132, admits the undisclosed income and
specifies the manner in which such income has been derived;
(ii) substantiates the manner in which the undisclosed income
was derived; and
(iii) on or before the specified date--
(A) pays the tax, together with interest, if any, in respect
of the undisclosed income; and
(B) furnishes the return of income for the specified
previous year declaring such undisclosed income therein;
(b) a sum computed at the rate of sixty per cent. of the undisclosed
income of the specified previous year, if it is not covered under the
provisions of clause (a).";
(III) in sub-section (2), after the words, brackets and figure "in sub-section
(1)", the words, brackets, figure and letter "or sub-section (1A)" shall be inserted.
Insertion of 4. In the Income-tax Act, after section 271AAB, the following section shall be inserted
new section with effect from the 1st day of April, 2017, namely:--
271AAC.
Penalty in "271AAC. (1) The Assessing Officer may, notwithstanding anything contained
respect of in this Act other than the provisions of section 271AAB, direct that, in a case where
certain income.
the income determined includes any income referred to in section 68, section 69,
section 69A, section 69B, section 69C or section 69D for any previous year, the
assessee shall pay by way of penalty, in addition to tax payable under section 115BBE,
a sum computed at the rate of ten per cent. of the tax payable under clause (i) of
sub-section (1) of section 115BBE:
Provided that no penalty shall be levied in respect of income referred to in
section 68, section 69, section 69A, section 69B, section 69C or section 69D to the
extent such income has been included by the assessee in the return of income
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3
furnished under section 139 and the tax in accordance with the provisions of clause
(i) of sub-section (1) of section 115BBE has been paid on or before the end of the
relevant previous year.
(2) No penalty under the provisions of section 270A shall be imposed upon the
assessee in respect of the income referred to in sub-section (1).
(3) The provisions of sections 274 and 275 shall, as far as may be, apply in
relation to the penalty referred to in this section.".
CHAPTER III
FINANCE ACT
28 of 2016. 5. In the Finance Act, 2016,-- Amendment
of section 2.
(a) in Chapter II, in section 2, in sub-section (9),--
(i) in the third proviso, the figures and letters "115BBE," shall be omitted;
(ii) after the sixth proviso, the following proviso shall be inserted,
namely:--
`Provided also that in respect of any income chargeable to tax under
clause (i) of sub-section (1) of section 115BBE of the Income-tax Act, the
"advance tax" computed under the first proviso shall be increased by a surcharge,
for the purposes of the Union, calculated at the rate of twenty-five per cent. of
such advance tax.';
(b) after Chapter IX, the following Chapter shall be inserted, namely:-- Insertion of
new Chapter
`CHAPTER IXA IX A.
TAXATION AND INVESTMENT REGIME FOR PRADHAN MANTRI GARIB KALYAN YOJANA, 2016
199A. (1) This Scheme may be called the Taxation and Investment Regime for Short title and
Pradhan Mantri Garib Kalyan Yojana, 2016. commencement.
(2) It shall come into force on such date as the Central Government may, by
notification, in the Official Gazette, appoint.
199B. In this Scheme, unless the context otherwise requires,-- Definitions.
(a) "declarant" means a person making the declaration under sub-section (1)
of section 199C;
43 of 1961. (b) "Income-tax Act" means the Income-tax Act, 1961;
(c) "Pradhan Mantri Garib Kalyan Deposit Scheme, 2016" (hereinafter in
this Chapter referred to as "the Deposit Scheme") means a scheme notified by
the Central Government in consultation with the Reserve Bank of India in the
Official Gazette; and
(d) all other words and expressions used in this Scheme but not defined
and defined in the Income-tax Act shall have the meanings respectively assigned
to them in that Act.
199C. (1) Subject to the provisions of this Scheme, any person may make, on or Declaration of
after the date of commencement of this Scheme but on or before a date to be notified undisclosed
income.
by the Central Government in the Official Gazette, a declaration in respect of any
income, in the form of cash or deposit in an account maintained by the person with a
specified entity, chargeable to tax under the Income-tax Act for any assessment year
commencing on or before the 1st day of April, 2017.
(2) No deduction in respect of any expenditure or allowance or set-off of any
loss shall be allowed against the income in respect of which a declaration under
sub-section (1) is made.
4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II--
Explanation.-- For the purposes of this section, "specified entity" shall mean--
(i) the Reserve Bank of India;
( ii ) any banking company or co-operative bank, to which the
Banking Regulation Act, 1949 applies (including any bank or banking institution 10 of 1949.
referred to in section 51 of that Act);
(iii) any Head Post Office or Sub-Post Office; and
(iv) any other entity as may be notified by the Central Government in the
Official Gazette in this behalf.
Charge of tax 199D. (1) Notwithstanding anything contained in the Income-tax Act or in any
and surcharge. Finance Act, the undisclosed income declared under sub-section (1) of section 199C
within the time specified therein shall be chargeable to tax at the rate of thirty per cent.
of the undisclosed income.
(2) The amount of tax chargeable under sub-section (1) shall be increased by a
surcharge, for the purposes of the Union, to be called the Pradhan Mantri Garib
Kalyan Cess calculated at the rate of thirty-three per cent. of such tax so as to fulfil the
commitment of the Government for the welfare of the economically weaker sections
of the society.
Penalty. 199E. Notwithstanding anything contained in the Income-tax Act or in any
Finance Act, the person making a declaration under sub-section (1) of section 199C
shall, in addition to tax and surcharge charged under section 199D, be liable to pay
penalty at the rate of ten per cent. of the undisclosed income.
Deposit of 199F. (1) Notwithstanding anything contained in the Income-tax Act or in any
undisclosed other law for the time being in force, the person making a declaration under
income.
sub-section (1) of section 199C, shall deposit an amount which shall not be less than
twenty-five per cent. of the undisclosed income in the Pradhan Mantri Garib Kalyan
Deposit Scheme, 2016.
(2) The deposit shall bear no interest and the amount deposited shall be allowed
to be withdrawn after four years from the date of deposit and shall also fulfil such
other conditions as may be specified in the Pradhan Mantri Garib Kalyan Deposit
Scheme, 2016.
Manner of 199G. A declaration under sub-section (1) of section 199C shall be made by a
declaration. person competent to verify the return of income under section 140 of the Income-tax
Act, to the Principal Commissioner or the Commissioner notified in the Official Gazette
for this purpose and shall be in such form and verified in such manner, as may be
prescribed.
Time for 199H. (1) The tax and surcharge payable under section 199D and penalty payable
payment of under section 199E in respect of the undisclosed income, shall be paid before filing of
tax, penalty,
surcharge and
declaration under sub-section (1) of section 199C.
deposit. (2) The amount referred to in sub-section (1) of section 199F shall be deposited
before the filing of declaration under sub-section (1) of section 199C.
(3) The declaration under sub-section (1) of section 199C shall be accompanied
by the proof of deposit referred to in sub-section (1) of section 199F, payment of tax,
surcharge and penalty under section 199D and section 199E, respectively.
Undisclosed 199-I. The amount of undisclosed income declared in accordance with
income sub-section (1) of section 199C shall not be included in the total income of the declarant
declared not to
be included in
for any assessment year under the Income-tax Act.
total income.
Undisclosed 199J. A declarant under this Scheme shall not be entitled, in respect of undisclosed
income income referred to in section 199C or any amount of tax and surcharge paid thereon,
declared not to
affect finality
to re-open any assessment or reassessment made under the Income-tax Act or the
of completed Wealth-tax Act, 1957, or to claim any set-off or relief in any appeal, reference or other 27 of 1957.
assessments. proceeding in relation to any such assessment or reassessment.
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5
199K. Any amount of tax and surcharge paid under section 199D or penalty paid Tax, etc., not
under section 199E shall not be refundable. refundable.
199L. Nothwithstanding anything contained in any other law for the time being Declaration not
in force, nothing contained in any declaration made under sub-section (1) of section admissible in
evidence against
199C shall be admissible in evidence against the declarant for the purpose of any declarant.
proceeding under any Act other than the Acts mentioned in section 199-O.
199M. Notwithstanding anything contained in this Scheme, where a declaration Declaration by
has been made by misrepresentation or suppression of facts or without payment of tax misrepresentation
of facts to be
and surcharge under section 199D or penalty under section 199E or without depositing void.
the amount in the Deposit Scheme as per the provisions of section 199F, such declaration
shall be void and shall be deemed never to have been made under this Scheme.
199N. The provisions of Chapter XV of the Income-tax Act relating to liability in Applicability
of certain
special cases and of section 119, section 138 and section 189 of that Act shall, so far as provisions of
may be, apply in relation to proceedings under this Scheme as they apply in relation to Income-tax
proceedings under the Income-tax Act. Act.
199-O. The provisions of this Scheme shall not apply-- Scheme not to
apply to certain
(a) in relation to any person in respect of whom an order of detention has persons.
been made under the Conservation of Foreign Exchange and Prevention of
52 of 1974. Smuggling Activities Act, 1974:
Provided that--
(i) such order of detention, being an order to which the provisions
of section 9 or section 12A of the said Act do not apply, has not been
revoked on the report of the Advisory Board under section 8 of the said
Act or before the receipt of the report of the Advisory Board; or
(ii) such order of detention, being an order to which the provisions
of section 9 of the said Act apply, has not been revoked before the expiry
of the time for, or on the basis of, the review under sub-section (3) of
section 9, or on the report of the Advisory Board under section 8, read
with sub-section (2) of section 9, of the said Act; or
( iii ) such order of detention, being an order to which the
provisions of section 12A of the said Act apply, has not been revoked
before the expiry of the time for, or on the basis of, the first review under
sub-section (3) of that section, or on the basis of the report of the Advisory
Board under section 8, read with sub-section (6) of section 12A, of the
said Act; or
(iv) such order of detention has not been set aside by a court of
competent jurisdiction;
( b ) in relation to prosecution for any offence punishable under
45 of 1860. Chapter IX or Chapter XVII of the Indian Penal Code, the Narcotic Drugs
61 of 1985. and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention)
37 of 1967.
49 of 1988. Act, 1967, the Prevention of Corruption Act, 1988, the Prohibition of Benami
45 of 1988. Property Transactions Act, 1988 and the Prevention of Money-Laundering
15 of 2003.
Act, 2002;
27 of 1992. (c) to any person notified under section 3 of the Special Court (Trial of
Offences Relating to Transactions in Securities) Act, 1992;
(d) in relation to any undisclosed foreign income and asset which is
22 of 2015. chargeable to tax under the Black Money (Undisclosed Foreign Income and
Assets) and Imposition of Tax Act, 2015.
6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II-- SEC. 1]
Removal of 199P. For the removal of doubts, it is hereby declared that save as otherwise
doubts. expressely provided in sub-section (1) of section 199C, nothing contained in this
Scheme shall be construed as conferring any benefit, concession or immunity on any
person other than the person making the declaration under this Scheme.
Power to 199Q. (1) If any difficulty arises in giving effect to the provisions of this Scheme,
remove the Central Government may, by order, not inconsistent with the provisions of this
difficulties.
Scheme, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of two
years from the date on which the provisions of this Scheme come into force.
(2) Every order made under this section shall be laid before each House of
Parliament.
Power to make 199R. (1) The Board may, subject to the control of the Central Government, by
rules. notification in the Official Gazette, make rules for carrying out the provisions of this
Scheme.
(2) Without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:--
(a) the form and manner of declaration and verification to be made under
section 199G; and
(b) any other matter which is to be, or may be, prescribed, or in respect of
which provision is to be made, by rules.
(3) Every rule made under this Scheme shall be laid, as soon as may be after it is
made before each House of Parliament while it is in session for a total period of thirty
days which may be comprised in one session or in two or more successive sessions
and if, before the expiry of the session immediately following the session or the
successive sessions aforesaid, both Houses agree in making any modification in the
rule or both Houses agree that the rule should not be made, the rule shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.'.
--------
DR. G. NARAYANA RAJU,
Secretary to the Govt. of India.
PRINTED BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI--2016.
GMGIPMRND--3952GI(S3)--15-12-2016.
RAM Digitally signed
by RAM DAYAL
DAYAL 21:09:01 +05'30'
Date: 2016.12.15
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