Direct Taxes Code Bill, 2009 (Draft)

Section Index

Section 
CHAPTER-I
PRELIMINARY
Section 1Short title, extent and commencement
PART-A
CHAPTER-II
BASIS OF CHARGE
Section 2Liability to pay income-tax
Section 3Scope of total income
Section 4Residence in India
Section 5Income deemed to accrue in India
Section 6Income deemed to be received in the financial year
Section 7Total income to include income of any other person
Section 8Total income to include income of spouse, minor child, etc.
Section 9Income not included in the total income
Section 10Persons not liable to income-tax
CHAPTER-III
COMPUTATION OF TOTAL INCOME
A.-General
Section 11Interpretation
Section 12Classification of sources of income
Section 13Computation of income from special sources
Section 14Computation of income from ordinary sources
Section 15Apportionment of income between spouses governed by Portuguese Civil Code
Section 16Avoidance of Double Taxation
Section 17Expenditure not to be allowed as deduction
Section 18Amount not deductable where tax is not deducted at source
B. Income from Employment
Section 19Income from employment
Section 20Computation of income from employment
Section 21Scope of gross salary
Section 22Deductions from gross salary
C. Income from house property
Section 23Income from house property
Section 24Computation of income from house property
Section 25Scope of gross rent
Section 26Deductions from gross rent
Section 27Special provision from advance rent received
D. Income from business
Section 28Income from business
Section 29Distinct and separate business
Section 30Computation of income from business
Section 31Gross earnings
Section 32Deductions for business expenditure
Section 33Deductions for operating expenditure
Section 34Deductions for permitted finance charges
Section 35Computation of capital allowances
Section 36Computation of depreciation
Section 37Deduction for initial depreciation
Section 38Deduction for terminal allowance
Section 39Deduction for scientific research and development allowance
Section 40Profit on transfer of a business capital asset
Section 41Special provisions relating to business reorganisations
Section 42Meaning of actual cost
Section 43Meaning of written down value, adjusted value of assets, etc.
E. Capital gains
Section 44Capital gains
Section 45Income from certain transfers not to be treated as capital gains
Section 46Financial year of taxability
Section 47Computation of income from the transfer of any investment asset
Section 48Full value of the consideration
Section 49Deductions for cost of acquisition, inflation-adjustment etc.
Section 50Indexed cost of acquisition
Section 51Cost of acquisition of an investment asset
Section 52Cost of improvement
Section 53Relief for rollover of investment asset
F. Income from residuary sources
Section 54Income from residuary sources
Section 55Computation of income from residuary sources
Section 56Gross residuary income
Section 57Deductions
G. Aggregation of income
Section 58Aggregate of income under the class 'Income from Ordinary Sources'
Section 59Aggregate of income under the class 'Income from Special Sources'
Section 60Determination of total income
Section 61Special provisions relating to business reorganisation
Section 62Aggregation of losses in case of change in constitution of unincorporated body
Section 63Aggregation of losses in case of certain companies
Section 64Aggregation of loss not to be allowed in the case of filing of return after due date
H. Tax incentives
Section 65Deductions to be made in computing total income
Section 66Deductions for savings
Section 67Deductions in respect of children education
Section 68Deduction in respect of interest on loan taken for higher education
Section 69Deduction in respect of health insurance premia
Section 70Deduction in respect of medical treatment, etc.
Section 71Deduction in respect of maintenance of disabled dependent
Section 72Deduction in respect of donations to certain funds, non-profit organisations, etc.
Section 73Deduction in respect of political contributions
Section 74Deduction in respect of interest income on bonds
Section 75Deduction in respect of income of Investor Protection Fund
Section 76Deduction in respect of certain income of trade unions
Section 77Deduction in respect of royalty income, etc., of author of certain books
Section 78Deduction in respect of royalty on patents
Section 79Deduction in case of a person with disability
Section 80Deduction in respect of income of co-operative society from banking activities
Section 81Deduction in respect of income of primary cooperative societies
Section 82Expenditure for promoting family planning and preventing HIV-aids
I. Maintenance of accounts and other related matters
Section 83Maintenance of accounts
Section 84Tax audit
Section 85Method of accounting
CHAPTER - IV
SPECIAL PROVISIONS RELATING TO COMPUTATION OF
TOTAL INCOME OF NON-PROFIT ORGANISATIONS
Section 86Applicability of this Chapter
Section 87Total income of a non-profit organisation
Section 88Computation of total income of a non-profit organisation
Section 89Gross receipts in the case of a non-profit organisation
Section 90Outgoings in the case of a non-profit organisation
Section 91Prohibited forms and modes of investment
Section 92Deemed use or application of funds or assets for the benefit of interested person
Section 93Registration of the non-profit organisation
Section 94Consequences of conversion of a non-profit organisation
Section 95Provisions of this Chapter not to apply in certain cases
Section 96Interpretations
CHAPTER - V
COMPUTATION OF THE VALUE OF GROSS ASSETS
Section 97Computation of the value of gross assets
Section 98Preparation of balance sheet for computing gross assets
PART-B
CHAPTER VI
SPECIAL PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME
Section 99Tax on dividends distributed
PART-C
CHAPTER-VII
CHARGE OF BRANCH PROFITS TAX
Section 100Tax on Branch Profits
PART-D
CHAPTER-VIII
WEALTH-TAX
Section 101Charge of wealth-tax
Section 102Computation of net wealth
Section 103Net wealth to include certain assets
PART-E
CHAPTER-IX
SPECIAL PROVISIONS TO PREVENT EVASION
Section 104Disallowance of expenditure having regard to fair market value
Section 105Computation of income from international transaction having regard to arm's length price
Section 106Computation of arm's length price
Section 107Advance pricing agreement
Section 108Avoidance of income-tax by transactions resulting in transfer of income to non-resident
Section 109Avoidance of tax by sale and buy-back transaction in security
Section 110Avoidance of tax by buy and sale-back transaction in security
Section 111Broken-period income accruing from debt instrument
Section 112General anti-avoidance rule
Section 113Interpretation
Section 114Presumption of purpose
PART-F
CHAPTER-X
TAX ADMINISTRATION AND PROCEDURE
A.-Tax administration
Section 115Establishment of institutions
Section 116Establishment of Central Board of Direct Taxes
Section 117Management of the Board
Section 118Delegation
Section 119Term of office and conditions of service of Chairman and Members of the Board
Section 120Meetings
Section 121Secretariat of the Board
Section 122Attached offices of the Board
Section 123Subordinate offices of the Board
Section 124Functions of the Board
Section 125Grants by the Central Government
Section 126Accounts and audit
Section 127Power of Central Government to issue directions
Section 128Returns and reports
Section 129Establishment of Income Tax Department
Section 130Income-tax Authorities
Section 131Appointment and control of Income-tax authorities
Section 132Power of higher authorities
Section 133Instructions by the Board
Section 134Jurisdiction of the Income-tax authorities
Section 135Jurisdiction of Assessing Officers
Section 136Power to transfer cases
Section 137Change of incumbent
Section 138Powers regarding discovery, production of evidence, etc.
Section 139Search and Seizure
Section 140Powers to requisition material taken into custody
Section 141Retention and release of books of accounts or documents seized or requisitioned
Section 142Delivery of material belonging to other persons
Section 143Retention and application of seized or requisitioned assets
Section 144Power to call for information
Section 145Power of survey
Section 146Power to disclose information in respect of assessee
Section 147Proceedings before tax authorities to be judicial proceedings
B.-Assessment procedure
Section 148Self reporting of tax bases
Section 149Reporting of international transaction
Section 150Tax Return Preparer
Section 151Issue of notice to stop-filer
Section 152Issue of notice to non-filer
Section 153Self-assessment tax
Section 154Acknowledgement of return
Section 155Processing of return
Section 156Selection of returns for scrutiny assessment
Section 157Notice for scrutiny assessment
Section 158Special audit
Section 159Determination of value of assets
Section 160Determination of arm's length price
Section 161Determination of impermissible avoidance arrangement and consequences thereof
Section 162Assessment
Section 163Best judgement assessment
Section 164Directions for assessment by Joint Commissioner
Section 165Directions for assessment by Dispute Resolution Panel
Section 166Reopening of assessment
Section 167Rectification of mistake
Section 168Notice of demand
Section 169Time limits for completion of assessment or reassessments
C.-Procedure for assessment in special cases
Section 170Representative assessee
Section 171Rights and obligations of a representative assessee
Section 172Direct assessment of recovery not barre
Section 173Remedy against property in case of representative assessee
Section 174Assessment upon business reorganisation
Section 175Assessment after partition of a Hindu undivided family
Section 176Assessment of non-resident in respect of the shipping business
Section 177Assessment of persons leaving India
Section 178Assessment of entity formed for a particular event or purpose
Section 179Assessment of persons likely to transfer property to avoid tax
Section 180Assessment of firm in case of change in its constitution
Section 181Assessment on the retirement or death of the participant
Section 182Assessment of a deductor or collector
D.-Appeals and revision
Section 183Appeal to Commissioner (Appeals)
Section 184Form of appeal and limitation
Section 185Procedure in appeal
Section 186Powers of the Commissioner (Appeals)
Section 187Appellate Tribunal
Section 188Appeals to the Appellate Tribunal
Section 189Stay of demand by the Appellate Tribunal
Section 190Orders of the Appellate Tribunal
Section 191Procedure of the Appellate Tribunal
Section 192Appeals to the National Tax Tribunal
Section 193Appeals to the Supreme Court
Section 194Revision of orders prejudicial to revenue
CHAPTER-XI
COLLECTION AND RECOVERY
A.-Deduction at source
Section 195Liability to deduct tax at source
Section 196Payment of income and deduction of tax
Section 197Certificate for no deduction of tax
Section 198Payment of tax deducted, certificate to deductee, etc.
Section 199Reporting of payments without deduction of tax
Section 200No deduction of tax in certain cases
Section 201Credit for tax deducted
B.-Collection at source
Section 202Tax collection at source
Section 203Certain definitions
C.-Advance tax
Section 204Liability to pay advance income-tax
D.-Tax credit for relief in respect of payments received in arrears or in advance
Section 205Tax relief for arrears or advance receipts
E.- Foreign tax credit
Section 206Foreign tax credit
F.- Payment of dividend distribution tax
Section 207Payment of dividend distribution tax
G. Payment of wealth-tax
Section 208Payment of wealth tax
H. Interest
Section 209Interest payable to the Central Government
Section 210Interest payable to the assessee
Section 211Manner of computation of interest and waiver thereof to be prescribed
I. Refund
Section 212Refunds
J. Recovery
Section 213Recovery by Assessing Officer
Section 214Recovery by Tax Recovery Officer
Section 215Modes of recovery
Section 216Tax Recovery Officer by whom recovery is to be effected
Section 217Recovery of tax arrear in respect of non-resident from his assets
Section 218Recovery in case of a company in liquidation
Section 219Liability of manager of a company
Section 220Joint and several liability of participants
Section 221Recovery of tax in pursuance of agreements with foreign countries
Section 222Tax clearance certificate in certain cases
Section 223Recovery by suit or under other law not effected
CHAPTER-XII
PENALTIES
Section 224Penalty for under reporting of tax base
Section 225Penalty where search has been initiated
Section 226Penalty for other defaults
Section 227Procedure
Section 228Bar of limitation for imposing penalty
CHAPTER-XIII
PROSECUTION
Section 229Chapter not in derogation of any other law or any other provision of this Code
Section 230Contravention of any restraint order
Section 231Failure to comply with the provisions of clause (d) of sub-section (2) of section 139
Section 232Removal, concealment, transfer or delivery of property to thwart tax recovery
Section 233Failure to comply with the provisions of sub-section (1) and (3) of section 218
Section 234Failure to pay the tax deducted or collected at source or to pay the dividend distribution tax
Section 235Willful attempt to evade tax, etc
Section 236Failure to furnish returns of tax bases
Section 237Failure to furnish other returns, statements, reports etc.
Section 238Failure to comply with direction under this Code
Section 239False statement in verification, etc.
Section 240Falsification of books of account or documents, etc.
Section 241Abetment of false return, etc
Section 242Offences by companies, etc.
Section 243Proof of entries in records or documents
Section 244Presumption as to assets, books of account, etc., in certain cases
Section 245Presumption as to culpable mental state
Section 246Prosecution to be at the instance of Chief Commissioner or Commissioner
Section 247Certain offences to be non-cognizable
Section 248Disclosure of information by public servants
CHAPTER-XIV
ADVANCE RULING
Section 249Definitions
Section 250Scope of Ruling
Section 251Authority for Advance Ruling
Section 252Procedure for advance ruling
Section 253Income-tax authority or Appellate Tribunal not to proceed in certain cases
Section 254Applicability of Advance Ruling
Section 255Advance ruling to be void in certain circumstances
Section 256Powers of the Authority
Section 257Procedure of Authority
PART-G
CHAPTER-XV
GENERAL
Section 258Agreement with foreign countries
Section 259Permanent account number
Section 260Tax account number
Section 261Document Identification Number
Section 262Certain transfers to be void
Section 263Provisional attachment to protect revenue in certain cases
Section 264Services of notice generally
Section 265Authentication of notices and other documents
Section 266Notice deemed to be valid in certain circumstances
Section 267Service of notice when family is disrupted or unincorporated body is dissolved
Section 268Publication of information respecting assessees in certain cases
Section 269Appearance by registered valuer in certain matters
Section 270Appearance by authorized representative
Section 271Rounding of tax bases, tax, etc
Section 272Indemnity
Section 273Power to tender immunity from prosecution
Section 274Cognizance of offences
Section 275Section 360 of the Code of Criminal Procedure, 1973 and the Probation of Offenders Act, 1958, not to apply
Section 276Return of tax base, etc., not be invalid on certain grounds
Section 277Presumption as to material found
Section 278Bar of suits in civil courts
Section 279Power to rescind
Section 280Power to make rules
Section 281Rules and certain notifications to be placed before Parliament
Section 282Repeals and savings
Section 283Power to remove difficulties
PART-H
DEFINITIONS
CHAPTER-XVI
Section 284Definitions
Section 285Interpretation
ARRANGEMENT OF SCHEDULES
The First ScheduleRates of Income-tax
The Second ScheduleRates of other taxes
The Third ScheduleRates for deduction of tax at source
The Fourth ScheduleRate for deduction of tax at source in case of non-resident deductee
The Fifth ScheduleProcedure for recovery of tax
The Sixth ScheduleIncome not included in the total income
The Seventh SchedulePersons exempt
The Eighth ScheduleComputation of profits of the insurance business
The Ninth ScheduleComputation of income from any other special source
The Tenth ScheduleComputation of profits of business of operating a qualifying ship
The Eleventh ScheduleComputation of profit of the business of mineral oil or natural gas
The Twelfth ScheduleComputation of profit of the business of developing a Special Economic Zone
The Thirteenth ScheduleComputation of profits of a Specified business
The Fourteenth ScheduleDetermination of income on a presumptive basis
The Fifteenth ScheduleDepreciation
The Sixteenth ScheduleDeduction for donation
The Seventeenth ScheduleDetermination of cost of acquisition in certain cases
The Eighteenth ScheduleMinerals and group of associated minerals