DIRECT TAXES CODE BILL, 2009 (Draft)

Section Index

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