Amendment made by Finance Act: 2020 which are going to be applicable from AY 2021-22 are as under:
- Amendment to Section 6 i.e. definition of resident which includes new deemed residency rules and other amendment to not ordinary resident.
- Amendment to section 9 whereby It is also proposed to insert a new Explanation 3A so as to declare that the income attributable to operations carried out in India, as referred to in Explanation 1 of clause (i) of sub-section (1) of said section, shall include income from––
- (i)such advertisement which targets a customer who resides in India or a customer who accesses the
advertisement through internet protocol address located in India; - (ii) sale of data collected from a person who resides in India or from a person who uses internet protocol address located in India; and
- (iii)sale of goods and services using data collected from a person who resides in India or from a person who uses internet protocol address located in India.
- (i)such advertisement which targets a customer who resides in India or a customer who accesses the
- Amendment to section 17: Provisions of clause (2) of the said section so as to substitute sub-clause (vii) of the said clause to provide that the amount or the aggregate amounts of any contribution made by the employer in respect of the assessee, to the account of an assessee in a recognised provident fund; in the scheme referred to in subsection (1) of section 80CCD; and in an approved superannuation fund shall be treated as perquisite, to the extent it exceeds seven lakh and fifty thousand rupees in a previous year.
Thus, according to above amendment any contribution to the funds mentioned above by employer above Rs. 7.5 lakh would be considered as perquisite and hence taxable which was not the case till now. - Amendment to section 43CA: Where the value adopted or assessed or assessable by the authority for the purpose of payment of stamp duty does not exceed one hundred and ten per cent. of the consideration received or accruing as a result of the transfer the consideration so received or accruing as a result of transfer shall, for the purposes of computing profits and gains from transfer of such asset, be deemed to be the full value of the consideration received or accruing as a result of such transfer. Thus the difference between actual sale consideration and value adopted by stamp valuation authority could be 10% as compared to 5% before such amendment.
- Recently department has relaxed such variation to 20% for a specific time period and some special category of home buyers.
- Amendment to section 55: A proviso to clause (b) of sub-section (2) of the section 55 shall be inserted so as to provide that in case of a capital asset referred to in sub-clauses (i) and (ii), being land or building or both, the fair market value of such asset on the 1st day of April, 2001 for the purposes of the said sub-clauses shall not exceed the stamp duty value, wherever available, of such asset as on the 1st day of April, 2001. It is further proposed to define the expression “stamp duty value” for the purposes of the said proviso to mean the value adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property.
- Thus according to above amendment since the base year in case of immovable property has been shifted to 01.04.2001 and hence the deemed value of property as on 01.04.2001 for section 55 shall not exceed its stamp value as on 01.04.2001.
