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Untitled Document
MINISTRY
OF LAW AND JUSTICE
(Legislative Department)
Dated
: October 31, 2005
THE
TAXATION LAWS (AMENDMENT) ORDINANCE, 2005
No.
4 of 2005
Promulgated by
the President in the Fifty-sixth Year of the Republic of India.
An Ordinance further
to amend the Income-tax Act, 1961 and the Finance Act, 2005.
Whereas Parliament
is not in session and the President is satisfied that circumstances exist which
render it necessary for him to take immediate action;
NOW, THEREFORE,
in exercise of the power conferred by clause (1) of article 123 of the Constitution
the President is pleased to promulgate the following Ordinance :
CHAPTER
I
PRELIMINARY
1. (1)
This Ordinance may be called the Taxation Laws (Amendment) Ordinance,
2005.
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Short
title and commencement. |
| (2) It shall
come into force at once. |
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CHAPTER
II
AMENDMENTS
TO THE INCOME-TAX ACT, 1961
| Amendment
of section 10.
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2.
In section 10 of the Income-tax Act, 1961 (hereafter in this Chapter referred
to as the Income-tax Act), with effect from the 1st day of April, 2006,
(a)
in clause (6BB), for the words, figures and letters "or entered into
after the 30th day of September 2005 and approved by the Central government
in this behalf, the words, figures and letter "or entered into after
the 31st day of March, 2006 and approved by the Central Government in
this behalf" shall be substituted;
(b)
in clause (15A) in the proviso, for the words, figures and letter "the
1st day of October, 2005", the words, figures and letter "the
1st day of April, 2006" shall be substituted;
(c)
after clause (38), the following clauses shall be inserted, namely:-
'(39)
any specified income arising, from any international sporting even held
in India, to the person or persons notified by the Central Government
in the Official Gazette, if such international sporting event -
(a)
is approved by the international body regulating the international sport
relating to such event;
(b)
has participation by more than two countries;
(c)
is notified by the Central Government in the Official Gazette for the
purpose of this clause.
Explanation
- For the purpose of this clause, "the specified income" means
the income, of the nature and to the extent arising from the international
sporting event, which the Central Government may notify in this behalf;
(40)
any income of any subsidiary company by way of grant or otherwise received
from an Indian company, being its holding company engaged in the business
of generation, transmission of distribution of power if such receipt is
for settlement of dues in connection with reconstruction or revival of
an existing business of power generation:
Provided
that the provisions of this clause shall apply is reconstruction or revival
of any existing business of power generation is by way of transfer of
such business to the India company notified under sub-clause (a) of clause
(v) of sub-section (4) of section 80-IA;
(41)
any income arising from transfer of a capital asset, being an asset of
an undertaking engaged in the business of generation, transmission of
distribution of power where such transfer is effected on or before the
31st day of March, 2006 to the Indian Company notified under sub-clause
(a) of clause (v) of sub-section (4) of section 80-IA.' |
43
of 1961. |
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3.
In section 80-IA of the Income-tax Act, in sub-section (4), after clause
(iv), the following clause shall be inserted with effect from the 1st
day of April, 2006, namely :
"(v)
un undertaking owned by an India company and set up for reconstruction
or revival of a power generating plant, if -
(a)
such Indian company is formed before the 30th day of November, 2005, with
majority equity participation by public sector companies for the purposes
of enforcing the security interest of the landers to the company owning
the power generating plant and such India company is notified before the
31st day of December, 2005 by the Central Government for the purpose of
this clause;
(b)
such undertaking begins to generate or transmit or distribute power before
the 31st day of March, 2007.". |
Amendment of section 80-IA. |
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4.
In section 115W of the Income-tax Act, in clause (a) with effect from
the 1st day of April, 2006, -
(a)
for sub-clause (iii), the following sub-clause shall be substituted, namely
:
"(iii)
an association of persons or a body of individuals, whether incorporated
or not;";
(b)
after sub-clause (v) the following proviso shall be inserted, namely :
-
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Amendment
of section 115W. |
| 43
of 1951. |
Provided
that any person eligible for exemption under clause (23C) of section 10
or registered under section 12AA or a political party registered under
section 29A of the Representation of the People Act, 1951 shall not be
deemed to be an employer for the purpose of this Chapter," |
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CHAPTER
III
AMENDMENT
TO THE FINANCE ACT, 2005
| 18
of 2005 |
5.
In Chapter VII of the Finance Act, 2005 (hereafter in this Chapter referred
to as the Finance Act), in section 94, with effect from the 1st day of
June, 2005,
(a)
after clause (3), the following clause shall be inserted and shall be
deemed to have been inserted, namely : - |
Amendment
of section 94. |
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| 10
of 1949. |
'(3A)
"banking company" means a company to which the Banking Regulation
Act 1949 applies and includes any bank referred to in section 51 of that
Act;';
(b)
after clause (4), the following clause shall be inserted and shall be
deemed to have been inserted, namely : - |
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| 10
of 1949. |
'(4A)
"co-operative bank" shall have the meaning assigned to it in
Part V of the Banking Regulation Act, 1949;'. |
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| Insertion
of new section 112A. |
6.
In Chapter VII of the Finance Act, after section 112, the following section
shall be inserted and shall be deemed to have been inserted with effect
from the 1st day of June, 2005, namely : |
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| This
Chapter not to apply in certain cases. |
"112A.
The provisions of this Chapter shall not apply to, or in relation to,
the taxable banking transactions entered into on or after the 1st day
of June, 2005,-
(a)
between a scheduled bank and a banking company or a co-operative bank;
or
(b)
between a scheduled bank and another scheduled bank.". |
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A.P.J.
ABDUL KALAM,
President
T
K VISWANATHAN,
Secy. To the Govt. of India.
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