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RAIL YATRA VRITANT” COMPETITION-2013

With a view to improve the working system of Railway and to encourage the interest towards use of Hindi a scheme of Rail Yatra Vritant by Ministry of railways is in vogue on all India level in which all Indian nationals can participate. Following cash awards are given every year for the three best Rail Yatra Vritants written in Hindi under this scheme:-
First PrizeRs. 4,000/-
Second PrizeRs. 3,000/-
Third PrizeRs. 2,000/-
 
Yatra Vritant should be typed on one side of the paper in double space, leaving a margin of at least an inch around. Rail Yatra Vritant should be of atleast 3,000 words. A full sheet of paper should be attached in the beginning of the Rail Yatra Vritant indicating the following information in capital letters:-
 
1. Heading:Rail Yatra Vritant
2. Sub Heading:Heading of Rail Yatra Vritant to be given by the writer.
3. Name:
4. Designation:
5. Age:
6. Address:Office
Residence
7. Mother Tongue:
8. Phone/Mobile No.:
 
Last date of submission of Rail Yatra Vritant will be 30 June- 2013.
 
Each competitor will submit only one Rail Yatra Vritant in duplicate. Rail Yatra Vritant shall be one’s original work in Hindi language. The Rail Yatra Vritant which has once been awarded under any of the schemes of the Govt. of India or a State Govt. or Administration of Union Territory shall not be included in this Scheme. For this, the writer will have to furnish a certificate to the effect that his Rail Yatra Vritant has not been awarded in any of the schemes earlier. No correspondence will be entertained regarding procedure of selection of Rail Yatra Vritant or awarding of prizes. The prizes are given every year and in case suitable Vritants are not received, the prizes will not be given for that year. These awards will be given on the occasion of All Railways Rajbhasha Week celebrations or at any other suitable function.
 
Entry may be sent to the following address:-
Director, Official Language, Room No. 544,
Ministry of Railways (Railway Board),
Rail Bhavan, Raisina Road, New Dlehi-110001.
 
For more details please contact on the above address or phone No. 011-23303783

रेलवे में नौकरी के नाम पर ठगी

रेलवे में नौकरी के नाम पर ठगी
Wednesday, 20 Mar 2013 1:32:19 hrs IST
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जयपुर। सावधान! अगर आपको रेलवे भर्ती बोर्ड कोलकाता के नाम पर कोई पांच लाख रूपए में इंजीनियर, टीटीई और खलासी बनाने का दावा करता है तो तय है कि आपके साथ ठगी हो रही है। 18 मार्च को रेलवे भर्ती बोर्ड कोलकाता की हूबहू फर्जी वेबसाइट आरआरबीकोलकाताएमआर क्वाटाजीओवी डॉट इन पर परिणाम जारी कर नौकरी दिलाने के नाम पर फर्जीवाड़े का खुलासा हुआ है। रेलवे भर्ती बोर्ड असली वेबसाइट ड्ब्ल्यूड्ब्ल्यूड्ब्ल्यूडॉटआरआरबीकोलकाताडॉटओआरजी है। यही वेबसाइट रेलवे बोर्ड में भी दर्ज है। प्रदेश में इस वेबसाइट के माध्यम से तीन दर्जन से अघिक व्यक्ति ठगी की चपेट में हैं, राजधानी में भी कई लोग शिकार हो चुके हैं। इससे पहले गिरोह से ठगे गए लोगों का आंकड़ा हजारों में है। ठगों ने साइट पर देशभर से 258 लोगों का परिणाम जारी किया और सभी से 1-1 लाख रू. ले चुके हैं। परिणाम के बाद ठग फोन करके मेडिकल, ट्रेनिंग, पोस्टिंग के नाम पर 4-4 लाख रूपए मांग रहे हैं।
खिलाड़ी कोटे के नाम पर भर्ती का फर्जी खेल
खिलाड़ी कोटे के नाम पर रेलवे भर्ती फर्जीवाड़े का खेल उत्तर से पूर्वोत्तर और पश्चिम से लेकर मध्य तक फैला हुआ है। ठगों का यह गिरोह खिलाड़ी कोटे के नाम पर बिना किसी लिखित परीक्षा व साक्षात्कार के सीधी नौकरी दिलाने का झांसा देता है। राजस्थान, मध्यप्रदेश, छत्तीसगढ़, हरियाणा, उत्तर प्रदेश, उत्तराखंड, झारखंड और पश्चिम बंगाल सहित अन्य प्रदेशों तक फैले इस जाल में फसें व्यक्तियों को यह बताया जाता है कि कोटे में भर्ती के लिए कोई विज्ञापन नहीं निकाला जाता है, इसकी सीधी भर्ती की जाती है।
रिश्तेदार ही फंसाते हैं रिश्तेदार को
रैकेट का सरगना डीके सिंह है। वह नौकरी पाने पहुंचे लोगों को लुभावना पैकेज देता है कि वे जितने आदमी लेकर आएंगे, उतने लाख रूपए कम हो जाएंगे। ऎसे में लोग रिश्तेदारों को ही नौकरी के लिए लुभाते हैं। ऎसे ही इनका रैकेट बढ़ता चला गया।
शेखावाटी में ज्यादा
राजस्थान में शेखावाटी के जिले इसकी चपेट में ज्यादा हैं। दरअसल, यहां अरब देशों से पैसा आया लेकिन शिक्षा कम है।
गिरफ्तारी की धौंस
कोई व्यक्ति नौकरी मिलेगी या नहीं इसकी पूछताछ शुरू करता है तो गिरोह की ओर से उसे नौकरी न देने और रिश्वत देने के आरोप में गिरफ्तार कराने की धौंस दी जाती हैं। ऎसे में वह पुलिस में रिपोर्ट दर्ज कराने से बचता है।
सही भर्ती का तरीका
रेलवे अघिकरियों के मुताबिक किसी भर्ती प्रक्रिया में पहले विज्ञापन निकालते हैं। फिर आवेदन आते हैं। जिसके बाद परीक्षा और फिर परिणाम जारी किए जाते हैं। इसके बाद इंटरव्यू और मेडिकल होने के बाद ही नौकरी दी जाती है। 
वेबसाइट पूरी तरह फर्जी है। कोई भी विषयवस्तु रेलवे वोर्ड की साइट के माध्यम से जाकर देखें। इस मामले को आगे की कार्रवाई के लिए प्रस्तुत करेंगे।
अनिल सक्सेना, प्रवक्ता, रेल मंत्रालय व बोर्ड
हम इस मामले में कार्रवाई करेंगे। वैसे अभ्यर्थियों को पूरी पड़ताल करनी चाहिए। यदि कोई ऎसा कर रहा है तो उसकी शिकायत संबंघित मंडल कार्यालय और रेलवे भर्ती बोर्ड में करें।
आर. राजागोपाल, चेयरमैन, रेलवे भर्ती बोर्ड कोलकाता
1 मुलाकात
बेरोजगार युवक को एजेंट अपने झांसे में लेकर कोलकाता पहुंचता है। अक्सर रात में शहर के सोनागाछी इलाके के बड़े होटलों और बीयर बारों में युवक की मुलाकात मुख्य एजेंट से कराई जाती है।
2 परीक्षा
मुख्य एजेंट से मिलवाने के बाद युवक की बकायदा परीक्षा कराई जाती है और इसके लिए उससे एक लाख रूपए बतौर पेशगी भी ली जाती है।
3 परिणाम
वेबसाइट पर जारी किया जाता है परिणाम और शुरू होती है अतिरिक्त बचे 4 लाख की मांग। पैसा पहुंचते ही बंद हो जाती है नौकरी की यह फर्जी दुकान।
लगा जैसे सबकुछ असली हो
ठगी के शिकार श्योभगवान नेहरा ने बताया कि वह लक्ष्मणगढ़ के एजेंट के माध्यम से कोलकाता भेजा गया। वहां फार्म भरा और एजेंट ने दो लाख रूपए लिए। कागजात प्रमाणित कराने को राजस्थान भेजा। दोबारा कोलकाता पहुंचे तो मेडिकल कराया और दो लाख रू. ले लिए। उसके बाद नेहाटी स्टेशन के पास रेलवे क्वार्टर में ट्रेनिंग कराई। उस समय दो लाख मांगे पर व्यवस्था होने पर एक लाख दिए। शक हुआ और पूछताछ की तो आधी रात हथियारबंद लोगों ने मारपीट की।
विज्ञापन, वेबसाइट का ले रहे सहारा
पहले ठग एजेंटों के माध्यम से बेरोजगारों को फंसाते थे, लेकिन अब विज्ञापन और वेबसाइट का सहारा लिया जा रहा है। ऑनलाइन रिजल्ट के बाद उत्तीर्ण होने वाले व्यक्ति से चार-चार लाख रूपए मांगे जा रहे हैं। जैसे ही पैसा जमा होता है, सब चंपत हो जाते हैं।
आनंदमणि त्रिपाठी/ हीरेन जोशी

होली स्पेशल

East Central Railways / Indian Railways Portal
Holi Special Train -2013
Holi Special Train -2013

1-  xkM+h la- 04021@04022 fnYyh&iVuk&fnYyh Lis’ky Vsªu%&
xkM+h la- 04022 fnYyh&iVuk Lis’ky Vsªu 21] 24 ,oa 28 ekpZ] 2013 dks fnYYkh ls iVuk ds fy, 13-20 cts [kqysxhvkSj xkft;kckn] eqjknkckn] cjsyh] y[kuÅ] lqYrkuiqj] okjk.klh ds jkLrs vxys fnu eqxyljk; ¼07-20½] cDlj ¼08-55½] vkjk ¼09-45½ vkSj nkukiqj ¼10-35½ cts :drss gq;s 11-15 cts iVuk igqapsxh A
okilh esa] xkM+h la- 04021 iVuk&fnYyh Lis’ky Vsªu 22] 25 ,oa 31 ekpZ] 2013dks iVuk ls fnYyh ds fy, 14-10 cts [kqydj nkukiqj ¼14-28½] vkjk ¼15-22½] cDlj ¼16-25½ ,oa eqxyljk; ¼18-15½ cts :drs gq;s okjk.klh] lqYrkuiqj] y[kuÅ] cjsyh] eqjknkckn] xkft;kckn ds jkLrs vxys fnu 10-40 cts fnYyh igqapsxh A
bl Lis’ky Vsªu esa 'k;u;ku Js.kh ds 10] lk/kkj.k Js.kh 06 ,oa ,l,yvkj ds 02 fMCcs lfgr dqy 18 fMCcs gksaxs A bl xkM+h dk fdjk;k ,Dlizsl Vsªu ds lerqY; gksxk A 
2-  xkM+h la- 04023@04024 fnYyh ljk; jksfgYyk&njHkaxk&fnYyh ljk; jksfgYyk Lis’ky  Vsªu%&
xkM+h la- 04024 fnYyh ljk; jksfgYyk&njHkaxk Lis’ky Vsªu 18] 22] 25 ,oa 29 ekpZ] 2013 dks fnYYkh ljk; jksfgYyk ls njHkaxk ds fy, 10-30 cts [kqysxh vkSj ubZ fnYyh] xkft;kckn] eqjknkckn] cjsyh] 'kkgtgkuiqj] lhrkiqj dSaV] xksaMk] cLrh] xksj[kiqj] nsofj;k lnj] floku ds jkLrs vxys fnu Nijk ¼05-25½] lksuiqj ¼06-45½] gkthiqj ¼07-05½] eqt¶Qjiqj       ¼08-40½ vkSj leLrhiqj ¼10-35½ cts :drss gq;s 12-05 cts njHkaxk igqapsxh A
okilh esa] xkM+h la- 04023 njHkaxk&fnYyh ljk; jksfgYyk Lis’ky Vsªu19] 23] 26 ,oa 31 ekpZ] 2013 dks njHkaxk ls fnYYkh ljk; jksfgYyk ds fy, 15-00 cts [kqysxh vkSj leLrhiqj ¼16-00½] eqt¶Qjiqj¼18-05½] gkthiqj ¼20-00½] lksuiqj ¼20-15½ ,oa Nijk ¼21-20½ cts :drs gq;s floku] nsofj;k lnj] xksj[kiqj] cLrh] xkasMk] lhrkiqj dSaV] 'kkgtgkuiqj] cjsyh] eqjknkckn] xkft;kckn ,oa ubZ fnYyh gksrs gq;s vxys fnu 16-50 cts fnYyh ljk; jksfgYyk igqapsxh- 
bl Lis’ky Vsªu esa 'k;u;ku Js.kh ds 10] lk/kkj.k Js.kh 06 ,oa ,l,yvkj ds 02 fMCcs lfgr dqy 18 fMCcs gksaxs A bl xkM+h dk fdjk;k ,Dlizsl Vsªu ds lerqY; gksxk A 
3-  xkM+h la- 04313@04314 cjsyh&njHkaxk&cjsyh Lis’ky Vsªu%&
20 ,oa 27 ekpZ] 2013 dks xkM+h la- 04314 cjsyh&njHkaxk Lis’ky Vsªu cjsyh ls njHkaxk ds fy, 07-05 cts [kqysxh vkSj y[kuÅ] xksaMk] xksj[kiqj] floku ds jkLrs Nijk ¼21-50½] lksuiqj ¼23-10½] gkthiqj ¼23-33½] eqt¶Qjiqj ¼00-30½ vkSj leLrhiqj ¼02-10½ :drss gq;s          03-55 cts njHkaxk igqapsxh A
okilh esa] 21 ,oa 28 ekpZ] 2013 dks xkM+h la- 04313 njHkaxk&cjsyh Lis’ky Vsªu njHkaxk ls cjsyh ds fy, 10-30 cts [kqysxh vkSj leLrhiqj ¼11-45½] eqt¶Qjiqj ¼12-55½] gkthiqj  ¼13-50½] lksuiqj ¼14-05½ ,oa Nijk ¼16-28½ cts :drs gq;s floku] xksj[kiqj] xkasMk] y[kuÅ gksrs gq;s vxys fnu 05-50 cts cjsyh igqapsxh A
bl Lis’ky Vsªu esa okrkuqdwfyr f}rh; Js.kh ds 01]  okrkuqdwfyr r`rh; Js.kh ds 02]    'k;u;ku Js.kh ds 10] lk/kkj.k Js.kh ds 03 ,oa ,l,yvkj ds 02 fMCcs lfgr dqy 18 fMCcs gksaxs A bl xkM+h dk fdjk;k ,Dlizsl Vsªu ds lerqY; gksxk A 
4-  xkM+h la- 04601@04602 ve`rlj&cjkSuh&ve`rlj ¼iw.kZr% vukjf{kr½ Lis’ky Vsªu%&
24 ,oa 31 ekpZ] 2013 dks ve`rlj ls cjkSuh ds fy, xkM+h la- 04602 ve`rlj&cjkSuh ¼iw.kZr% vukjf{kr½ Lis’ky Vsªudk ifjpkyu fd;k tk;sxk A xkM+h la- 04602 ve`rlj ls cjkSuh ds fy, 12-35 cts [kqydj tkya/kj flVh] yqf/k;kuk] ljfgUn] jktiqjk] vEckyk dSaV] lgkjuiqj] eqjknkckn] cjsyh] 'kkgtgkuiqj] lhrkiqj dSaV] cq<+oy] xksaMk] eudkiqj] cLrh] [kyhykckn] xksj[kiqj] nsofj;k lnj] floku ds jkLrs vxys fnu Nijk ¼12-00½] lksuiqj     ¼13-16½] gkthiqj ¼13-31½] eqt¶Qjiqj ¼15-10½ vkSj leLrhiqj ¼16-30½ :drss gq;s 17-50 cts cjkSuh igqapsxh A
okilh esa] 25 ekpZ ,oa 01 vizSy] 2013 dks cjkSuh ls ve`rlj ds fy, xkM+h la- 04601 cjkSuh&ve`rlj ¼iw.kZr% vukjf{kr½ Lis’ky Vsªu dk ifjpkyu fd;k tk;sxk A ;g Vsªu cjkSuh ls 19-15 cts [kqydj leLrhiqj ¼20-15½] eqt¶Qjiqj ¼21-07½] gkthiqj ¼22-10½] lksuiqj       ¼22-25½ ,oa Nijk ¼23-40½ cts :drs gq;s floku] nsofj;k lnj] xksj[kiqj] [kyhykckn] cLrh] eudkiqj] xkasMk] cq<+oy] lhrkiqj dSaV] 'kkgtgkuiqj] cjsyh] eqjknkckn] lgkjuiqj] vEckyk dSaV] jktiqjk] ljfgUn] yqf/k;kuk ,oa tkya/kj flVh gksrs gq;s rhljs fnu 02-55 cts ve`rlj igqapsxh A
bl Lis’ky Vsªu esa lk/kkj.k Js.kh ds 14 ,oa ,l,yvkj ds 02 fMCcs lfgr dqy 16 fMCcs  gksaxs A bl xkM+h dk fdjk;k ,Dlizsl Vsªu ds lerqY; gksxk A 
¼vferkHk izHkkdj½
                       eq[; tulEidZ vf/kdkjh


(CPRO)
CPRO

50 Interesting Facts on Indian Railways - Top 10 Lists India | Boydom.com

50 Interesting Facts on Indian Railways - Top 10 Lists India | Boydom.com

1-5

New Delhi-Bhopal Shatabdi Express-Interesting Facts on Indian Railways
1. Fastest train in India: New Delhi-Bhopal Shatabdi Express is the fastest train in India. The all air-conditioned superfast train clocks a maximum speed of 150km/h on the Faridabad-Agra section. It also has the highest commercial speed – 89.87 km/h- and covers the 704 km New Delhi – Bhopal stretch in 7 hours 50 minutes.
2. Slowest train in India: Metupalayam Ooty Nilgiri Passenger which runs at a speed of 10kmph, 15 times slower than fastest running train. Since this train runs in hilly region there are speed limits to comply. The one that comes close is Pratapnagar-Jambusar passenger, with a maximum speed of 12km/h and an average speed of 11km/h. It takes 4 hrs for a journey of 44 km.
3. Longest run by a train: Vivek Express from Dibrugarh to Kanyakumari travels a distance of 4273 km, making it the longest run in terms of total time and distance in Indian Railways.
4. Shortest run by a train: Scheduled services between Nagpur and Ajni stations situated just 3km from each other – primarily meant for crew to travel from Nagpur station to the workshop at Ajni.
5. Longest non-stop travel: Trivandrum – H. Nizamuddin Rajdhani Express travels the 528km stretch between Vadodara and Kota non-stop. In second place is the Mumbai Rajdhani Express that travels nonstop between New Delhi and Kota.

 

6-10

Venkatanarasimharajuvaripeta-Interesting Facts on Indian Railways
6. Longest station name: Venkatanarasimharajuvaripeta on the Arakkonam-Renigunta section near Chennai.
7. Shortest station name: Ib, near Jharsuguda in Odisha and Od, near Anand in Gujarat.
8. Trains with most stops: The record for maximum number of stops by an Express/Mail train is held by Howrah – Amritsar Express 115 halts, followed by Delhi – Howrah Janata Express 109 halts and Jammu Tawi – Sealdah Express 99 halts.
9. Least punctual train: Guwahati-Trivandrum Express is said to be the most unreliable long-distance train in the country. The charted journey time is 65 hours and 5 minutes, but the average delay on a trip is about 10-12 hours.
10. Two stations at same location: Srirampur and Belapur are two different stations in Ahmednagar district of Maharashtra which are both at the same location on the railway route but on opposite sides of the track.

 

11-15

Electric locomotive WAG-9-Interesting Facts on Indian Railways
11. Most powerful locomotive: Electric locomotive WAG-9 used for hauling heavy freight rakes is the most powerful locomotive in Indian Railways’ fleet. The 6,350 horsepower beast is homed at Gomoh, Ajni, Lallaguda, Tughlakabad and Bhilai. Modified version of WAG-9 named WAP 7 is IR’s workhouse for high speed passenger service. It is capable of hauling 24 coach trains at speeds ranging between 140 and 160 km per hour. WAP-7 has similar horsepower as that of WAG-9 but comes with modified gear ratios for faster acceleration.
12. Last stations in North-South-East-West direction: Northernmost railway station is Baramulla in Jammu and Kashmir. Westernmost is Naliya near Bhuj in Gujarat. Southernmost railway station is Kanyakumari, while the last station on the east of India is Ledo on branch line from Tinsukia.
13. Junction with most number of routes originating from it: Mathura junction with 7 routes- Broad Gauge (BG) line to Agra Cantt, BG line to Bharatpur, BG line to Alwar, BG line to Delhi, Metre Gauge (MG) line to Achnera, MG line to Vrindavan and MG line to Hathras, Kasganj. Six route junction – Bhatinda. Five route junctions – Lucknow, Guntakal, Katni, Varanasi, Kanpur Central, Villupuram, Dabhoi, and Nagpur.
14. Most number of parallel tracks/ Three gauges at one station: Seven parallel tracks between Bandra Terminus and Andheri – 10km. Siliguri station on NFR holds the distinction of having three different gauges present.
15. Busiest station: Lucknow, with 64 trains per day.

 

16-20

Kharagpur Railway Station-Interesting Facts on Indian Railways
16. Longest Platform: Indian Railways owns the longest railway platform in the world at Kharagpur (West Bengal) with a length of 2,733 ft (1072.5 m) in length.
17. Oldest Working Locomotive: Indian Railways still has the oldest preserved locomotive in working order, the Fairy Queen which was made way back in 1855. It is the oldest functioning steam engine in the world, which finds a place in the Guinness Book of World Records and got Heritage Award at the International Tourist Bureau, Berlin in March 2000.
18. First Railroad: The first railroad was constructed by two Indians (Jamsetjee Jeejeebhoy and Jaganath Shunkerseth) and not the British.
19. Labor Force: Indian Railways is the world’s ninth largest commercial or utility employer, by number of employees, with over 1.4 million employees. It is also the India’s largest employer.
20. Railway Network: Though it is commonly believed, India doesn’t have the largest railway network in the World. India comes fourth with approx. 64,000 km of railroad after US, Russia, and China. If the tracks were to be laid out from one point to another around the equator, it would circle it one-and-a-half times.

 

21-25

Steam Locomotives-Interesting Facts on Indian Railways
21. Steam Locomotives: The manufacture of steam locomotives in the country was stopped in 1972.
22. Distance Covered: The total distance covered by the 14,300 trains daily on the Indian Railways daily equals three & half times the distance to moon.
23. Lavatory: Toilets on trains were first introduced in 1891 in 1st class and in 1907 in lower classes.
24. Air Cooling: Air Cooling was first introduced in 1st class coaches in 1874 in Great Indian Peninsular Railway
25. Longest Tunnel: The country’s longest tunnel is Pir Panjal Railway Tunnel 11.215 km that was completed in December 2012 in Jammu and Kashmir. The tunnel is yet to become functional railway route. Karbude on Konkan Railways, which is 6.5 km in length previously held the title for the longest tunnel in India.



 

26-30

Calcutta Metro-Interesting Facts on Indian Railways
26. Underground Railway: First Underground Railway that was opened for public use was Calcutta Metro.
27. Computerized Reservations: First Reservation through the computer System commenced in New Delhi in the year 1986.
28. Electric Trains: First Electric coach ran on the 3rd February 1925 between Bombay VT and Kurla stations
29. Palace on Wheels: Indians were not allowed to board the Palace on Wheels luxury train for quite a while when it was launched on Republic Day of 1982.
30. Worst Rail Disaster: In the Bihar train disaster on June 6, 1981, a passenger train carrying 800 or more passengers between Mansi and Saharsa, derailed and plunged into the river Bagmati while it was crossing a bridge. After five days, more than 200 bodies were recovered, with hundreds more missing that were feared washed away by the river. Estimates of total deaths range from 500 to 800 or more. It was the worst Indian rail disaster.

 

31-35

Indian Railway Passengers-Interesting Facts on Indian Railways
31. Passenger Load: The Indian Railways (IR) carries over 25 million passengers daily which is perhaps more than the entire population of Australia, New Zealand and Tasmania put together. Annually Indian Railways ferries 7.2 billion passengers (nearly 6x India’s current population).
32. Total Number of Trains: Indian Railways runs as many as 19,000 trains every day. Some 12,000 trains are for passengers and 7,000 for freight.
33. Number of Stations: The whole network has 7,083 stations
34. Age: Indian Railways has had an operation span of nearly 170 years.
35. Fares: Even after recent hike, fares on long distance journeys on the IR can be considered cheapest in the world. For instance, 1,500 km journey on Delhi-Kolkata route by Kalka Mail costs around Rs 250. A similar journey would cost 10x more on any budget train in Europe which boasts of strong rail transport.

 

36-40

Mumbai local trains-Interesting Facts on Indian Railways
36. Transit Trains: Mumbai’s local trains are amongst the world’s few to have 15 coaches. Shanghai’s local trains come close with 12 coaches.
37. Chhatrapati Shivaji Terminus: CST in Mumbai caters to 33 million passengers annually and is the only terminus in the world to be listed as a monument of global heritage by UNESCO.
38. Oldest Operational Track: Ever since its origin in 1853, the rail service in India never turned back making it one of the oldest track in the world.
39. Revenue: Indian Railways collected Rs.581 Crore in fines+charges on ticketless travel in during the financial year 2011-12.
40. Rail Museum: The National Rail Museum in Delhi set up in 1977 is a one of the unique museums in Asia. Sprawled over an area of 11 acres the museum has collections like antique steam engines, locomotives, models, carriages, photographs among other things. There are live exhibits as well as working and non-working models. The added attraction is the toy train which runs across the museum.

 

41-45

Vembanad Rail Bridge-Interesting Facts on Indian Railways
41. Longest Bridge: Vembanad Rail Bridge 4.62 km in length in the state of Kerala connects connecting Edappally and Vallarpadam in Kochi. It is the longest rail bridge in India and it is dedicated solely for freight.
42. Sea Bridge: India’s first sea bridge, the Pamban Bridge is a cantilever bridge on the Palk Strait. It connects Rameswaram on Pamban Island (Tamil Nadu) to mainland India.
43. Rail-cum-Road Bridge: Saraighat Bridge (1,492 m) is the first rail-cum-road bridge constructed over the Brahmaputra River in Guwahati, Assam. It was opened to passenger traffic in June 1963.
44. Dapoorie Viaduct (1854) on the Mumbai-Thane route is the first railway bridge in India.
45. Pre-Independence: About 42 Railway companies operated in the country before Independence.

 

45-50

Chenab Bridge-Interesting Facts on Indian Railways
46. Highest Bridge: The world’s highest rail bridge being constructed over Chenab river in Jammu & Kashmir’s Reasi district (Chenab Bridge) will be ready by December, 2015. Coming up at Kauri, it will be 359 meters (1,180 feet) above the riverbed (five times the height of Qutub Minar and 35 metres taller than Eiffel Tower). Also Anjikhad Railway Bridge to be completed in 2015 in Katra, Jammu-Kashmir is going to be the 4th highest in the world at 186 meters (610 feet). Stretching across a length of 424 metres, the bridge on the Panval River in Ratnagiri district, Maharashtra is currently the tallest bridge in India.
47. First Rail Tunnel: Parsik Tunnel (1865) is India’s first rail tunnel.
48. World Record: Delhi station entered Guinness book of world records for having the world’s largest route relay interlocking system.
49. Property: Indian Railways have approximately 10.65 lakh acre of land. About 90 per cent of this land is under Railway’s operational and allied usages. The total vacant land, at present is about 1.13 lakh acre.
50. Dining Car: The Mumbai–Pune Deccan Queen has the oldest running dining car in Indian Railways.

Granting 3rd financial upgradation under MACP Scheme - Clarification regarding.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(Railway Baord)

No.PC-V/2009/ACP/20/CLW
New Delhi, dated 05.03.2013
The General Manager (P)
Chittranjan Locomotive Works
CHITTARANJAN

Sub:- Granting 3rd financial upgradation under MACP Scheme - Clarification regarding.

Ref:- CLW’s letter No.CMA/Ruling/453, dated 19-02-2013.

With reference to CLW’s above cited letter, it is stated that Board’s letter dt. 13-12-2012 has been issued as a sequel to the instructions contained in para-8 of Annexure to Board’s policy instruction on MACPS dt 10-06-09 (RBE No.101/2009) and therefore has to be viewed in context thereof only. Further, while implementing MACP Scheme these instructions i.e. para-8 of Annexure to Board’s instruction dt. 10-06-09 and Board’s letter dt. 13-12-2012 has to be seen in light of the cadre structure/hierarchy of progression that has emerged as a result of implementation of 6th  pay structure.

As regards example No.I (a), it is stated that a Technical Supervisor, who has joined in GP-4200 on direct recruitment basis and have earned promotion to next post in Grade Pay of Rs.4600 is entitled to be considered for grant of 2 and 3rd financial upgradations to GP Rs.4800 and GP-5400 of PB-2 respectively under MACPS subject to fulfilment of terms & conditions relating to the Scheme.

As regards example No.I (b), it is stated that a directly recruited SSE in GP of Rs.4600 is entitled to be considered for grant of 1st, 2nd and 3rd financial upgradations to the GP-4800 / PB-2, GP-5400 / PB-2 and GP-5400 / PB-3 respectively under MACPS subject to fulfilment of terms & conditions relating to the Scheme. 

As regards example No.I (c), the point on which clarification has been sought is not clear.

As regards example No.II (a), it is stated that the next promotional post for chief Matron’s post is Assistant Nursing Officer (ANO) in same Grade Pay of Rs.5400/PB-3, therefore, (Chief Matron entitled to be considered for 3rd financial upgradation to the same Grade Pay of Rs.5400 in PB-3 in terms of Board’s letter dated 13-12-2012 (RBE No.142/20I2). 

As regards example No.II (b), a Staff Nurse directly recruited in GP-4600 is entitled to be considered for 3rd financial upgradation under MACPS to the Grade Pay of Rs.5400 in PB-3 in terms of the provisions contained in para-8.1 of Annexure to Board’s letter dt.10-06-09 (RBE No.101/2009).

sd/-
(N.P.Síngh)
Dy.Director, Pay Commission - V
Railway Board

Source: AIRF

Train Travel Concession for Disabled Persons

Train Travel Concession for Disabled Persons 

Indian Railways grant concession to four categories of disabled persons in extreme cases i.e. (i) Orthopedically Handicapped/Paraplegic persons who cannot travel without escort (ii) Mentally Retarded persons who cannot travel without escort (iii) Completely Blind persons travelling alone or with escort and (iv) Totally Deaf and Dumb persons (both afflictions together in the same person) travelling alone or with escort. One escort is also granted same concession. Concessions are granted at stations on surrendering the copy of prescribed disability certificate. 


No age limit has been prescribed for eligibility of concession in the case of disabled persons. Indian Railways grant concessions to disabled persons on production of prescribed disability certificate irrespective of age. 

This information was given by the Minister of State for Railways Shri Adhir Ranjan Chowdhury in written reply to a question in Lok Sabha today. 
PIB

Proposal to Amend Railway Protection Force Act

Proposal to Amend Railway Protection Force Act 

A proposal to amend the Railway Protection Force (RPF) Act, 1957, has been approved by the Ministry of Railways. The proposal seeks to achieve the objective of replacing the presently prevailing three tier security system of RPF, Government Railway Police (GRP) and District Police with a two tier security system of RPF and District Police over Railways. The Ministries of Home Affairs and Law & Justice have already approved the above proposal. Matter has been forwarded to the States for soliciting their opinion on the above proposal.

Security has been identified as one of the priority areas by Railways for strengthening and up-gradation. Efforts made to strengthen railway security in recent past include installation of an integrated Security System, procurement of modern security related equipment, setting up of All India Security Help Line, networking of RPF Posts and Security Control Rooms and strengthening of manpower etc. 

This information was given by the Minister of State for Railways Shri Adhir Ranjan Chowdhury in written reply to a question in Lok Sabha today. 

PIB

An inspiring expo on Indian Railways - The Hindu

An inspiring expo on Indian Railways - The Hindu
A girl looking at the models at the Railway Exhibition at Rail Mahal in Guntur on Friday. Photo: T. Vijaya KumarModel of mini electromagnetic train greets the visitors
A model of a mini electromagnetic railway engine greets the visitors as they step into the Railway Hall in Arundelpet where an exhibition tracing the evolution of Indian Railways from the days of British Raj to the modern times was inaugurated on Friday. Fascinating pictures of locos chugging away in some of the most picturesque settings of the country are on display. The electromagnetic train is the future train running on the principle of linear induction, says engineer Naga Raju. A model of first steam locomotive, Fairy Queen is also displayed. The visitors are then offered a peak into the evolution of Indian Railways through a photo exhibition. Several interesting pictures are on the display. The iconic Churchgate railway station in Mumbai was captured in a lithe black and white photo in 1956 and so are the pictures of the first air conditioned coach. A picture of big blocks of ice being taken inside a compartment is amusing. Can anyone imagine that there were times when bulls were used to pull railway engine? It would be interesting to note that the first diesel loco chugged off in 1807. In 1931, the first electrical locomotive was run and it was interesting to note that the first electrical locomotive between Vijayawada and Chennai was run in 1981.
Philately show
In addition to the pictures, a philatelic exhibition by superintendent of the Electrical Department and also secretary of Guntur District Philatelist and Numismatics society M.V.S. Prasad too was appealing. A rare collection of coins, currency and stamps associated with Railways all over the world are put on display by Mr. Prasad, which included a special commemorative stamp marking the 150 years of Indian Railways. A Rs.100 special stamp on Mahatma Gandhi showing him spinning Khadi is also on display along with many other interesting stamps. Divisional Railway Manager, Guntur, N.K Prasad inaugurated the exhibition. Reena Prasad, president of Guntur branch of South Central Railway Women’s Welfare Organisation, was present.

The railway children of India | GulfNews.com

Online facilities for Railway employees

Railway Administration should start online facilities for his employees  like, Online reservation on Passes, booking in Holiday Homes, online user Id for his service record, transfer, promotion, payment , loans, duties, requests, grievances etc. It will facilitate over 1.4 million employees.
 
For this Railway administration already have Infrastructure except the will. 


Please Share this request among all until it reaches at his proper place. 

other than employees so many project are running in railway but unlike Corporate here employees are miles away from these facilities.
 
General:-
(a) (a) C&IS is a nodal Directorate for implementation of all projects on Indian Railways, which are charged to planhead Computerisation.  
(b) (b)  Development of norms, standards, maintenance manuals in the area of computerization.
 (c) Preparation of IT plan for Indian Railways.
 (d) Coordinating training effort in IT areas.  
Project Based Administration:- 
(a) C&IS Dte. handles all project related issues such as:-  
(i) Formulation of proposals and estimates for Works Programme.
(ii) Co-ordination with Zonal Railways and various Directorates of Railway Board for inclusion of works in Final Works Programme.
(iii) Preparation and monitoring of budget.
(iv) Monitoring of progress of works.
(v) Planning and sanction of expansion.
(vi) Software improvements.  
(b) Name of projects handled by C&IS Dte. are:-  
(i) Passenger Reservation System (PRS) including web enabling.
(ii) Freight Operations Information System (FOIS) including web enabling.
(iii) Unreserved Ticketing System (UTS).
(iv) National Train Enquiry System (NTES) including web enabling.
(v) Coaching Refund Computerisation.
(vi)  Season & Mobil Ticketing System Computerisation.
(vii)  Parcel Offices Computerisation.
(viii) Data Warehousing for PRS.
(ix)  Claims Office Computerisation.
(x)  Workshop Computerisation.
(xi)  Store Computerisation.
(xii) Hospital Management System.
(xiii) Other than Traffic Deptt. specific software development projects.
(xiv) Any Project sanctioned from time to time by Rly. Board.  
3. Policy Formulation Areas:-  
(a) Formulation of PRS policy.
(b) Formulation of policy on IT matters for Zonal Railways and other units.
(c) Delegation of powers on IT matters and their review when necessary.
(d) Standardising IT project procedures.
(e) Technical assessment of IT platforms.  
4. Operation of Railway Board Computer Center (RBCC):- 
(a) Running the Computer Center including monitoring and working of Input/Output Cell, Data Entry Section, TP Section and the console Section.  
(b) Monitoring, receipt and processing of interchange wagon data and generation of relevant reports that includes:  
(i) Maintenance of BG and MG Wagon Masters and Coaching Masters.
(ii) Conducting of BG and MG Wagons Censuse/Coaching Censuse, compilation of Census data and their results.
(iii) Pay Roll System and issuance of computerized Pay Slips to officers and staff of Railway Board.
(iv) Other misc. and statistical reports.  
5. Maintenance of Computers in Railway Board:-
(a) Maintenance/Upgradation of all computer equipments installed in Railway Board except for Railnet equipment.
(b) Procurement of all computer equipments for Railway Board except for Railnet equipment.
(c)  Software development for various Directorates in Railway Board.
(d) Maintenance of Railway Web site.
(e)Preparation of specifications of Railway Board hardware.
(f)  Technical scrutiny and vetting of proposals received from Railway Board as well as field offices (viz. PUs, Zonal Railways etc.).  
6. Procurement of computers peripherals, and other related equip ments excluding consumables like printer ribbon, catridges, etc.  
7. PSU/Societies under C&IS Pte.:-

All issues pertaining to Centre for Railway Information System (CRIS) including personal, financial, Budget, reviewing performance of CRIS, changes in Memorandum of Understanding, changes in Memorandum of Association, tabling of yearly Audit and Account reports on the table of both Houses of Parliament etc.
Miscellaneous Works:-
(a)      Parliament Questions.
(b)      CA-iii references.

12 की बजाए 8 घंटे होगी ड्यूटी

12 की बजाए 8 घंटे होगी ड्यूटी
Tuesday, 12 Mar 2013 10:53:51 hrs IST
http://www.rajasthanpatrika.com/news/Ajmer/3122013/city-news/436828
अजमेर। रेलवे स्टेशन पर तैनात खलासी अब 12 की जगह 8 घंटे ड्यूटी करेंगे। लगभग पांच साल तक विभागीय स्तर पर एवं कानूनी लड़ाई के बाद आखिर श्रम मंत्रालय ने खलासियों को राहत देते हुए उनके कार्य घंटों में कमी करने के आदेश जारी किए हैं। इस फैसले से देशभर में कार्यरत ग्रुप डी सहित लाखों अन्य कर्मचारियों के लिए भी रास्ता खुला है।
स्टेशन पर सहायक स्टेशन मास्टर खलासी एवं ट्रेन क्लर्क खलासी से रोजाना 12 घंटे कार्य कराया जाता है। नॉर्थ वेस्टर्न रेलवे एम्प्लॉइज यूनियन ने पांच साल पूर्व नियमों का हवाला देते हुए इनके कार्यघंटे कम करके 8 घंटे करने की मांग उठाई थी।
यह हैं नियम
नियमों के तहत 12 घंटे की ड्यूटी कर रहा कर्मचारी अगर इस दौरान 6 घंटे तक मानसिक अथवा शारीरिक कार्य में व्यस्त है तो उसकी पारी 8 घंटे निर्घारित की जाती है।
दो बार हुआ कार्य विश्लेष्ाण
खलासियों के कार्यघंटे निर्घारित करने के लिए रेल प्रशासन ने 20 अगस्त 09 से 23 अगस्त 09 तक इनका कार्य विश्लेष्ाण कराया। इसमें प्रभावी कार्य समय 6 घंटे से अघिक पाया गया। रेल मुख्यालय ने इसे अस्वीकार कर 10 मइ्रü 11 से 13 मइ्रü11 तक दुबारा कार्य विश्लेष्ाण कराया। लेकिन इस बार प्रभावी कार्य 6 घंटे से कम पाया गया। यूनियन ने आरोप लगाया कि प्रशासन ने ष्ाड्यंत्र के तहत कार्य विश्लेष्ाण में गड़बड़ी कर प्रभावी कार्य कम दर्ज किया है।
अजमेर से श्रम मंत्रालय तक पहुंचा मामला
कार्य घण्टों का मुद्दा सबसे पहले अजमेर में उठा। यहां यूनियन ने रेल प्रशासन के साथ आयोजित नियमित बैठक (पीएनएम) में मार्च 2008 में इस मुद्दे को उठाया। कार्य विश्लेष्ाण पर विवाद के बाद यूनियन ने मई 2011 में क्षेत्रीय श्रम आयुक्त अजमेर के यहां अपील की। श्रम आयुक्त ने कर्मचारियों के पक्ष में फैसला दिया। रेलवे मुख्यालय ने इस फैसले को दिसम्बर 12 में केन्द्रीय श्रम मंत्रालय में चुनौती दी। श्रम मंत्रालय ही अपील अघिकारी है। सभी पक्षों को सुनने के बाद मंत्रालय के सह सचिव एवं अपील अघिकारी चन्द्र प्रकाश ने रेलवे मुख्यालय की अपील खारिज कर दी।
लाखों कर्मचारियों से 12 घंटे काम
रेलवे के लाखों कर्मचारियों से 12 घंटे काम लिया जा रहा है। अनेक छोटे स्टेशनों पर तो स्टेशन मास्टर भी 12 घंटे से अघिक कार्य कर रहे हैं। श्रम मंत्रालय के आदेश का हवाला देकर अब वे भी अपने हक के लिए अपील कर सकेंगे। हालांकि अंतिम फैसला होने से पहले उनको भी कार्य विश्लेष्ाण की प्रक्रिया से गुजरना होगा।
ओवर टाइम भी मिलेगा
चार साल तक विभिन्न स्तर पर यूनियन ने लड़ाई लड़ी। अब कर्मचारियों को न्याय मिला है। श्रम मंत्रालय के फैसले के बाद कर्मचारियों के कार्य घंटे कम होंगे। साथ ही अब तक किए अतिरिक्त कार्य के लिए ओवरटाइम भी मिलेगा। रेलवे में 25 प्रतिशत कर्मचारी अब भी 12 घंटे नौकरी कर रहे हैं।
मोहन चेलानी, मंडल अध्यक्ष, नॉर्थ वेस्टर्न रेलवे एम्प्लॉइज यूनियन

new status of subscribers of National Pension Scheme as on March, 2013

PFRDA publishes new status of subscribers of National Pension Scheme as on March, 2013

Pension Fund Regulatory and Development Authority (PFRDA) has published a latest status of NPS subscribers as on 2nd March 2013 on its portal. As per the status, Central Government have 11,25,871 subscribers and 22 State Government have implemented the scheme to its employees.


National Pension System Status – March 2013

A. Sector wise NPS status as on March 2, 2013 
Sl. No.Employer/Sector Number of subscribers Corpus under NPS (In crore)
1. Central Government 11,25,871 17,047
2. State Government 15,85,3499,780
3. Private Sector2,02,679 1,254
4. NPS-Lite 15,79,690 412
Total44,93,58928,493

Till date 9506 Tier II accounts have been activated.

B. Status of Implementation of NPS by various States

Status of Implementation of NPS by various States Number of States
Total Number of States 28
Number of States joined NPS 22
States notified joining NPS but have not taken any further steps (Maharashtra, Tamilnadu, Arunachal Pradesh)3
States not joined NPS (West Bengal, Kerala*, Tripura)3

* Kerala has indicated in-principle approval for joining NPS w.e.f. 01.04.2013

Grant of Financial upgradation under MACPS to the employees holding feeder post in a cadre where promotional post is in same Grade Pay.

GOVERNMENT OF INDIA 
MINISTRY OF RAILWAYS 
(Railway Board)

No PC-V/2011/M/4/NFIR
New Delhi, dated 05.03.2013
The General Secretary NFIR
3, Chelmsford Road,
New Delhi-110055

Sir,
Sub :- Grant of Financial upgradation under MACPS to the employees holding feeder post in a cadre where promotional post is in same Grade Pay.

The undersigned is directed to refer to NFIR’s letter No. IV/MACPS/09/Pt-6, dated 31/01/2013 and to state that the provisions contained in Para-1 of Annexure to Board’s letter dt.10-06-09 may be read alongwith the provision contained in Para-8 of Annexure to said letter dated 10-06-09 which stipulates that promotions earned in the Post carrying same Grade Pay in the promotional hierarchy as per Recruitment Rules shall be counted for the purpose of MACP Scheme.


It is further stated that on receipt of references from Zonal Railways seeking clarification as to what Grade Pay would be admissible under MACPS to an employee holding feeder post in a cadre where promotional post is in the same Grade pay, a reference was made to DoP&T seeking their clarification. Based on the clarifications given by DOP&T, Board’s letter dated 13-12-2012 has been issued Since DoP&T is nodal department, of Govt. on the subject of MACPS, this Ministry is not in position to deviate from the instructions/clarifications issued by them.

In view of the above, Federations is requested may please appreciate the position.


Yours faithfuly, 
sd/- 
for Secretarty/Railway Board

Source : NFIR

Income Tax provisions in Union Budget 2013-14

Income Tax provisions in Union Budget 2013-14
 
Income Tax provisions in Union Budget 2013-14

FINANCE BILL, 2013
PROVISIONS RELATING TO DIRECT TAXES

Introduction
The provisions of the Finance Bill, 2013 relating to direct taxes seek to amend the Income-tax Act, Wealth-tax Act and Finance (No.2) Act, 2004, inter alia, in order to provide for –
A. Tax rates
B. Additional Resource Mobilisation
C. Measures to Promote Socio-economic Growth
D. Relief and Welfare Measures
E. Widening of Tax Base and Anti Tax Avoidance Measures
F. Rationalisation  Measures

2. The Finance Bill, 2013 seeks to prescribe the rates of income-tax on income liable to tax for the  assessment year 2013-14; the rates at which tax will be deductible at source during the financial year 2013-14 from interest (including interest on securities), winnings from lotteries or crossword puzzles, winnings from horse races, card games and other categories of income liable to deduction or collection of tax at source under the Income-tax Act; rates for computation of “advance tax”, deduction of income-tax from, or payment of tax on ‘Salaries’ and charging of income-tax on current incomes in certain cases for the financial year 2013-14.


3. The substance of the main provisions of the Bill relating to direct taxes is explained in the following paragraphs:-

DIRECT TAXES
A. RATES OF INCOME-TAX

I. Rates of income-tax in respect of income liable to tax for the assessment year 2013-14.
In respect of income of all categories of assessees liable to tax for the assessment year 2013-14, the rates of income-tax have been specified in Part I of the First Schedule to the Bill. These are the same as those laid down in Part III of the First Schedule to the Finance Act, 2012, for the purposes of computation of “advance tax”, deduction of tax at source from “Salaries” and charging of tax payable in certain cases.

(1) Surcharge on income-tax -
Surcharge shall be levied in respect of income liable to tax for the assessment year 2013-14, in the following cases:-
(a) in the case of a domestic company having total income exceeding one crore rupees, the amount of income-tax computed shall be increased by a surcharge for the purposes of the Union calculated at the rate of five per cent. of such income tax.

(b) in the case of a company, other than a domestic company, having total income exceeding one crore rupees, the amount of income-tax computed shall be increased by a surcharge for the purposes of the Union calculated at the rate of two per cent. of such income tax.

However, marginal relief shall be allowed in all these cases to ensure that the additional amount of income-tax payable, including surcharge, on the excess of income over one crore rupees is limited to the amount by which the income is more than one crore rupees.

Also, in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, 1961 (hereinafter referred to as ‘Income-tax Act’) and where such income exceeds one crore rupees, surcharge at the rates mentioned above shall be levied and marginal relief shall also be provided.

(2)  Education Cess -
For assessment year 2013-14, additional surcharge called the “Education Cess on income-tax” and “Secondary and Higher Education Cess on income-tax” shall continue to be levied at the rate of two per cent. and one per cent., respectively, on the amount of tax computed, inclusive of surcharge, in all cases. No marginal relief shall be available in respect of such Cess.

II. Rates for deduction of income-tax at source during the financial year 2013-14 from certain incomes other than “Salaries”.

The rates for deduction of income-tax at source during the financial year 2013-14 from certain incomes other than “Salaries” have been specified in Part II of the First Schedule to the Bill. The rates for all the categories of persons will remain the same as those specified in Part II of the First Schedule to the Finance Act, 2012, for the purposes of deduction of income-tax at source during the financial year 2012-13, except that in case of certain payments made to a non-resident (other than a company ) or a foreign company, in the nature of income by way of royalty or fees for technical services, the rate shall be twenty-five percent of such income.

(1) Surcharge -
The amount of tax so deducted, in the case of a   non-resident person (other than a company), shall be increased by a surcharge at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees . The amount of tax so deducted, in the case of a company other than a domestic company, shall be increased by a surcharge at the rate of two per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees and it shall be increased by a surcharge at the rate of five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees.

No surcharge will be levied on deductions in other cases.

(2)  Education Cess -
“Education Cess on income-tax” and “Secondary and Higher Education Cess on income-tax” shall continue to be levied at the rate of two per cent. and one per cent. respectively, of income tax including surcharge wherever applicable, in the cases of persons not resident in India including companies other than domestic company.

III. Rates for deduction of income-tax at source from “Salaries”, computation of “advance tax” and charging of income- tax in special cases during the financial year 2013-14.

The rates for deduction of income-tax at source from “Salaries” during the financial year 2013-14 and also for computation of “advance tax” payable during the said year in the case of all categories of assessees have been specified in Part III of the First Schedule to the Bill. These rates are also applicable for charging income-tax during the financial year 2013-14 on current incomes in cases where accelerated assessments have to be made , for instance, provisional assessment of shipping profits arising in India to non-residents, assessment of persons leaving India for good during the financial year, assessment of persons who are likely to transfer property to avoid tax, assessment of bodies formed for a short duration, etc.

The salient features of the rates specified in the said Part III are indicated in the following paragraphs-

A. Individual, Hindu undivided family, association of persons, body of individuals, artificial juridical person.

Paragraph A of Part-III of First Schedule to the Bill provides following rates of income-tax:-

(i) The rates of income-tax in the case of every individual (other than those mentioned in (ii) and (iii) below) or Hindu undivided family or every association of persons or body of individuals , whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act (not being a case to which any other Paragraph of Part III applies) are as under :-
Upto Rs. 2,00,000 Nil.
Rs. 2,00,001 to Rs. 5,00,000 10 per cent.
Rs. 5,00,001 to Rs. 10,00,000 20 per cent.
Above Rs. 10,00,000 30 per cent.

(ii)  In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,-
Upto Rs. 2,50,000 Nil.
Rs. 2,50,001 to Rs. 5,00,000 10 per cent.
Rs. 5,00,001 to Rs.10,00,000 20 per cent.
Above Rs. 10,00,000 30 per cent.

(iii) in the case of every individual, being a resident in India, who is of the age of eighty years or more at anytime during the previous year,-
Upto Rs. 5,00,000 Nil.
Rs. 5,00,001 to Rs. 10,00,000 20 per cent.
Above Rs. 10,00,000 30 per cent.

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge at the rate of ten percent. of such income-tax in case of a person having a total income exceeding one crore rupees .

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

B. Co-operative Societies
In the case of co-operative societies, the rates of income-tax have been specified in Paragraph B of Part III of the First Schedule to the Bill. These rates will continue to be the same as those specified for financial year 2012-13.

The amount of income-tax shall be increased by a surcharge at the rate of ten percent. of such income-tax in case of a co-operative society having a total income exceeding one crore rupees .

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

C. Firms
In the case of firms, the rate of income-tax has been specified in Paragraph C of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for financial year 2012-13.

The amount of income-tax shall be increased by a surcharge at the rate of ten percent. of such income-tax in case of a firm having a total income exceeding one crore rupees .

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

D. Local authorities
The rate of income-tax in the case of every local authority is specified in Paragraph D of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for the financial year 2012-13.

The amount of income-tax shall be increased by a surcharge at the rate of ten percent. of such income-tax in case of a local authority having a total income exceeding one crore rupees .

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

E. Companies
The rates of income-tax in the case of companies are specified in Paragraph E of Part III of the First Schedule to the Bill. These rates are the same as those specified for the financial year 2012-13.

The existing surcharge of five per cent in case of a domestic company shall continue to be levied if the total income of the domestic company exceeds one crore rupees but does not exceed ten crore rupees. The surcharge at the rate of ten percent shall be levied if the total income of the domestic company exceeds ten crore rupees. In case of companies other than domestic companies, the existing surcharge of two per cent. shall continue to be levied if the total income exceeds one crore rupees but does not exceed ten crore rupees. The surcharge at the rate of five percent shall be levied if the total income of the company other than domestic company exceeds ten crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees but not exceeding ten crore rupees, shall not exceed the total amount payable as income-tax on a total income of one crore rupees, by more than the amount of income that exceeds one crore rupees. The total amount payable as income-tax and surcharge on total income exceeding ten crore rupees, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees, by more than the amount of income that exceeds ten crore rupees.

In other cases (including sections 115-O, 115QA, 115R or 115TA ) the surcharge shall be levied at the rate of ten percent.

For financial year 2013-14, additional surcharge called the “Education Cess on income-tax” and “Secondary and Higher Education Cess on income-tax” shall continue to be levied at the rate of two per cent. and one per cent. respectively, on the amount of tax computed, inclusive of surcharge (wherever applicable), in all cases. No marginal relief shall be available in respect of such Cess.
[Clause 2 & First Schedule]

B. ADDITIONAL RESOURCE MOBILISATION

Commodities Transaction Tax
A new tax called Commodities Transaction Tax (CTT) is proposed to be levied on taxable commodities transactions entered into in a recognised association.

It is proposed to define ‘taxable commodities transaction’ to mean a transaction of sale of commodity derivatives in respect of commodities, other than agricultural commodities, traded in recognised associations.

The tax is proposed to be levied at the rate, given in the Table below, on taxable commodities transactions undertaken by the seller as indicated hereunder:-

TABLE
S.No.
Taxable commodities transaction
Rate
Payable by
1
2
3
4
1
Sale of commodity derivative
0.01
per cent Seller

The provisions with regard to collection and recovery of CTT, furnishing of returns, assessment  procedure, power of assessing officer, chargeability of interest, levy of penalty, institution of prosecution,  filing  of appeal, power to the Central Government, etc. have also been provided.

This tax is proposed to be levied from the date on which Chapter VII of the Finance Bill, 2013 comes into force by way of notification in the Official Gazette by the Central Government.

Further, it is proposed to amend section 36 of the Income-tax Act to provide that an amount equal to the commodities transaction tax paid by the assessee in respect of the taxable commodities transactions entered into in the course of his business during the previous year shall be allowable as deduction, if the income arising from such taxable commodities transactions is included in the income computed under the head “Profits and gains of business or profession”.

It is also proposed to insert an Explanation to provide that for the purposes of this clause, the expressions “commodities transaction tax” and “taxable commodities transaction” shall have the meanings respectively assigned to them under Chapter VII of the Finance Act, 2013.

This amendment in section 36 of the Income-tax Act will take effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.
[Clauses 6, 105 to 124]

Taxation of Income by way of Royalty or Fees for Technical Services

Section 115A of the Income-tax Act provides for determination of tax in case of a non-resident taxpayer where the total income includes any income by way of Royalty and Fees for technical services (FTS) received under an  agreement entered after 31.03.1976 and which are not effectively connected with permanent establishment, if any, of the non-resident in India. The tax is payable on the gross amount of income at the rate of
(i)  30% if income by way of royalty or FTS is received in pursuance of an agreement entered on or before 31.05.1997;

(ii) 20% if income by way of royalty or FTS is received in pursuance of an agreement entered after 31.05.1997 but before 01.06.2005; and

(iii) 10% if income by way of royalty or FTS is received in pursuance of an agreement entered on or after 01.06.2005.

India has tax treaties with 84 countries, majority of tax treaties allow India to levy tax on gross amount of royalty at rates ranging from 10% to 25%, whereas the tax rate as per section 115A is 10%. In some cases, this has resulted in taxation at a lower rate of 10% even if the treaty allows the income to be taxed at a higher rate.

In order to correct this anomaly, the tax rate in case of non-resident taxpayer, in respect of income by way of royalty and fees for technical services as provided under section 115A, is proposed to be increased from 10% to 25%. This rate of 25% shall be applicable to any income by way of royalty and fees for technical services received by a non-resident, under an agreement entered after 31.03.1976, which is taxable under section 115A.

This  amendment will take effect from 1st   April,  2014 and will, accordingly, apply in relation to the  assessment year 2014-15  and subsequent assessment years.
[Clause 25]

C. MEASURES TO PROMOTE SOCIO-ECONOMIC GROWTH

Incentive for acquisition and installation of new plant or machinery by manufacturing company

In order to encourage substantial investment in plant or machinery, it is proposed to insert a new section 32AC in the Income- tax Act to provide that where an assessee, being a company,—

(a)  is engaged in the business of manufacture of an article or thing; and

(b) invests a sum of more than Rs.100 crore in new assets (plant or machinery) during the period  beginning from 1st  April, 2013 and ending on 31st  March, 2015,

then, the assessee shall be allowed—

(i)   for assessment year 2014-15, a deduction of 15% of aggregate amount of actual cost of new assets acquired and installed during the financial year 2013-14, if the cost of such assets exceeds Rs.100 crore;
(ii)  for assessment year 2015-16, a deduction of 15% of aggregate amount of actual cost of new assets, acquired and installed during the period beginning on 1st  April, 2013 and ending on 31st  March, 2015, as reduced by the deduction allowed, if any, for assessment year 2014-15.

The phrase “new asset” has been defined as new plant or machinery but does not include—

(i)   any plant or machinery which before its installation by the assessee was used either within or outside India by any other person;

(ii)  any plant or machinery installed in any office premises or any residential accommodation, including accommodation in the nature of a guest house;

(iii)  any office appliances including computers or computer software;

(iv)  any vehicle;

(v)   ship or aircraft; or

(vi)  any plant or machinery, the whole of the actual cost of which is allowed as deduction (whether by way of depreciation or otherwise) in computing the income chargeable under the head “Profits and gains of business or profession” of any previous year.

It is further proposed to provide suitable safeguards so as to restrict the transfer of the plant or machinery for a period of 5 years.  However, this restriction shall not apply in a case of amalgamation or demerger but shall continue to apply to the amalgamated company or resulting company, as the case may be.

This  amendment will take effect from 1st   April,  2014 and will, accordingly, apply in relation to the  assessment year 2014-15  and subsequent assessment years.
[Clause    5]

Extension of the sunset date under section 80IA for the power sector
Under the existing provisions contained in the clause (iv) of subsection (4) of section 80IA, a deduction of profits and gains is allowed to an undertaking which, –

(a)          is set up in any part of India for the generation or generation and distribution of power if it begins to generate power at any time during the period beginning on 1st  April, 1993 and ending on 31st  March, 2013;

(b)          starts transmission or distribution by laying a network of new transmission or distribution lines at any time during the period beginning on 1st  April, 1999 and ending on 31st  March, 2013;

(c)           undertakes substantial renovation and modernisation of the existing network of transmission or distribution lines at any time during the period beginning on 1st    April, 2004 and ending on 31st    March, 2013.

With a view to provide further time to the undertakings to commence the eligible activity to avail the tax incentive, it is proposed to amend the above provisions so as to extend the terminal date by a further period of one year i.e. up to 31st  March, 2014.

These amendments will take effect from 1st  April, 2014 and will, accordingly, apply in relation to the  assessment year 2014-15  and subsequent assessment years.
[Clause 17]

D. RELIEF AND WELFARE MEASURES

Rebate of Rs 2000 for individuals having total income up to Rs 5 lakh
With a view to provide tax relief to the individual tax payers who are in lower income bracket, it is proposed to provide rebate from the tax payable by an assessee, being an individual resident in India, whose total income does not exceed five lakh rupees. The rebate shall be equal to the amount of income-tax payable on the total income for any assessment year or an amount of two thousand rupees, whichever is less. Consequently any individual having income up to Rs 2,20,000 will not be required to pay any tax and every individual having total income above Rs. 2,20,000/- but not exceeding Rs. 5,00,000/- shall get a tax relief of Rs. 2000/-.

Section 87 has also been consequentially amended.

These amendments will take effect from 1st  April, 2014 and will, accordingly, apply in relation to the  assessment year 2014-15  and subsequent assessment years.
[Clauses 19 & 20]

Deduction in respect of interest on loan sanctioned during financial year 2013-14 for acquiring residential house property
Under the existing provisions of section 24 of the Income-tax Act, income chargeable under the head ‘Income from House Property’ is computed after making the deductions specified therein. The deductions specified under the aforesaid section are as under:-

i.  A sum equal to thirty per cent of the annual value;

ii. Where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital.

It has also been provided that where the property consists of a house or part of a house which is in the occupation of the owner for the purposes of his own residence or cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him, then the amount of deduction as mentioned above shall not exceed one lakh fifty thousand rupees subject to the conditions provided in the said section.

Keeping in view the need for affordable housing, an additional benefit for first-home buyers is proposed to be provided by inserting a new section 80EE in the Income-tax Act relating to deduction in respect of interest on loan taken for residential house property.

The proposed new section 80EE seeks to provide that in computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential house property.

It is further provided that the deduction under the proposed section shall not exceed one lakh rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on 1st April, 2014 and in a case where the interest payable for the previous year relevant to the said assessment year is less than one lakh rupees, the balance amount shall be allowed in the assessment year beginning on 1st  April, 2015.

It is also provided that the deduction shall be subject to the following conditions:-

(i) the loan is sanctioned by the financial institution during the period beginning on 1st April, 2013 and ending on 31st  March, 2014;
(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;
(iii) the value of the residential house property does not exceed forty lakh rupees; (iv) the assessee does not own any residential house property on the date of sanction of the loan.

It is also provided that where a deduction under this section is allowed for any assessment year, in respect of interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provisions of the Income-tax Act for the same or any other assessment year.

It is also proposed to define the term “financial institution”.

This amendment will take effect from 1st  April, 2014 and accordingly apply in relation to the assessment year 2014-15 and subsequent  assessment  year.
[Clause 13]

Raising the limit of percentage of eligible premium for life insurance policies of persons with disability or disease
Under the existing provisions contained in clause (10D) of section 10, any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, is exempt, subject to the condition that the premium paid for such policy does not exceed ten per cent of the ‘actual capital sum assured’. Similarly as per the existing provisions contained in sub- section (3A) of section 80C, the deduction under the said section is available in respect of any premium or other payment made on an insurance policy of up to ten per cent of the ‘actual capital sum assured’.

The above limit of ten per cent was introduced through the Finance Act, 2012 and applies to policies issued on or after 1st April, 2012.  Some insurance policies for persons with disability or suffering from specified diseases provide for an annual premium of more than ten per cent of the actual capital sum assured. Due to the limit of ten per cent, these policies are ineligible for exemption under clause (10D) of section 10. Moreover, the deduction under section 80C is eligible only to an extent of the premium paid up to 10 % of the ‘actual capital sum assured’.

It is proposed to provide that any sum including the sum allocated by way of bonus received under an insurance policy issued on or after 01.04.2013 for the insurance on the life of any person who is

(i)   a person with disability or a person with severe disability as referred to in section 80U, or

(ii)  suffering from disease or ailment as specified in the rules made under section 80DDB, shall be exempt under clause (10D) of section 10 if the premium payable for any of the years during the term of the policy does not exceed 15% of the actual capital sum assured.

It is also proposed to amend sub-section (3A) of section 80C so as to provide that the deduction under the said section on account of premium paid in respect of a policy issued on or after 01.04.2013 for insurance on the life of a person referred to above shall be allowed to the extent the premium paid does not exceed 15% of the actual capital sum assured.

This amendment will take effect from 1st   April,  2014 and will, accordingly, apply in relation to the  assessment year 2014-15  and subsequent assessment years.
[Clauses 4 & 10]

Deduction for contribution to Health Schemes similar to CGHS

The existing provisions of section 80D, inter alia, provide that the whole of the amount paid in the previous year out of the income chargeable to tax of the assessee, being an individual, to effect or to keep in force an insurance on his health or the health of the family or any contribution made towards the Central Government Health Scheme (CGHS) or any payment made on account of preventive health check-up of the assessee or his family, as does not exceed in the aggregate fifteen thousand rupees, is allowed to be deducted in computing the total income of the assessee.

It has been noticed that there are other health schemes of the Central and State Governments, which are similar to the CGHS but no deduction for such schemes is available to the subscribers of such schemes. In order to bring such schemes at par with the CGHS, it is proposed to amend section 80D,  so as to allow the benefit of deduction under this section within the said limit, in respect of any payment or contribution made by the assessee to such other health scheme as may be notified by the Central Government.

This  amendment will take effect from 1st   April,  2014 and will, accordingly, apply in relation to the  assessment year 2014-15  and subsequent assessment  years.
[Clause 12]
Expanding the scope of deduction and its eligibility under section 80CCG

The existing provisions of section 80CCG, inter-alia, provide that a resident individual who has acquired listed equity shares in accordance with the scheme notified by the Central Government, shall be allowed a deduction of fifty per cent of the amount invested in such equity shares to the extent that the said deduction does not exceed  twenty five thousand rupees.  The deduction is a one-time deduction and is available only in one assessment year in respect of the amount so invested. The deduction is available to a new retail investor whose gross total income does not exceed ten lakh rupees. Rajiv Gandhi Equity Savings Scheme has been notified under section 80CCG.

With a view to liberalize the incentive available for investment in capital markets by the new retail investors, it is proposed to amend the provisions of section 80CCG so as to provide that investment in listed units of an equity oriented fund shall also be eligible for deduction in accordance with the provisions of section 80CCG. It is proposed to provide that “equity oriented fund” shall have the meaning assigned to it in clause (38) of section 10.

It is further proposed to provide that the deduction under this section shall be allowed for three consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed equity shares or listed units were first acquired by the new retail investor whose gross total income for the relevant assessment year does not exceed twelve lakh rupees.

This  amendment will take effect from 1st   April,  2014 and will, accordingly, apply in relation to the  assessment year 2014-15  and subsequent assessment years.
[Clause 11]

Exemption to income of Investor Protection Fund of depositories

Under the provisions of SEBI (Depositories and Participants) Regulations, 1996, as amended in 2012, the depositories are mandatorily required to set up an Investor Protection Fund.

Under the existing provisions, section 10(23EA) provides that income by way of contributions from a recognised stock exchange received by a Investor Protection Fund set up by the recognised stock exchange shall be exempt from taxation .

On similar lines, it is proposed that income, by way of contribution from a depository, of the Investor Protection Fund set up by the depository in accordance with the regulations prescribed by SEBI will not be included while computing the total income subject to same conditions as are applicable in respect of exemption to an Investor Protection Fund set up by recognised stock exchanges.

However, where any amount standing to the credit of the fund and not charged to income-tax during any previous year is shared wholly or partly with a depository, the amount so shared shall be deemed to be the income of the previous year in which such amount is shared.

This amendment will take effect from 1st April, 2014 and will, accordingly, apply in relation to assessment year 2014-15 and subsequent  assessment  years.
[Clause 4]

One hundred per cent deduction for donation to National Children’s Fund

Under the existing provisions of section 80G an assessee is allowed a deduction from his total income  in respect of donations made by him to certain funds and institutions.  The deduction is allowed at the rate of fifty per cent of the amount of donations made except in the case of donations made to certain funds and institutions specified in clause (i) of sub-section (1) of section 80G, where deduction is allowed at the rate of one hundred per cent.  In the case of donations made to the National Children’s Fund, deduction is allowed at the rate of fifty per cent of the amount so donated.

Donations to Funds which are of national importance have been generally provided a deduction of one hundred per cent of the amount donated. Since the National Children’s Fund is also a Fund of national importance, it is proposed to allow hundred per cent deduction in respect of any sum paid to the Fund in computing the total income of an assessee.

This amendment will take effect from 1st April, 2014 and will, accordingly, apply in relation to assessment year 2014-15 and subsequent  assessment  years.
[Clause 14]

Exemption to National Financial Holdings Company Limited

The Specified Undertaking of Unit Trust of India (SUUTI) was created vide the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 as the successor of Unit Trust of India (UTI). Exemption from Income-tax was available to SUUTI in respect of its income up to 31st March, 2014.

SUUTI has been wound up and is succeeded by a new company wholly owned by the Central Government. It has been incorporated on 7th     June, 2012 as National Financial Holdings Company Limited (NFHCL).

In order to provide the exemption on the lines of SUUTI to NFHCL, it is proposed to amend section 10 to grant exemption to National Financial Holdings Company Limited in respect of its income accruing, arising or received on or before 31.03.2014.

This amendment will take effect retrospectively from 1st April, 2013 and will, accordingly, apply in relation to the assessment year 2013-14 and assessment year 2014-15.
[Clause 4]

Lower rate of tax on dividends received from foreign companies

Section 115BBD of Income-tax Act provides for taxation of gross dividends received by an Indian company from a specified foreign company (in which it has shareholding of 26% or more) at the rate of 15% if such dividend is included in the total income for the Financial Year 2012-13 i.e. Assessment Year 2013-14.

The  above provision was introduced as an incentive for attracting repatriation of income earned by  residents from investments made abroad subject to certain conditions.

In order to continue the tax incentive for one more year, it is proposed to amend section 115BBD to extend the applicability of this section in respect of income by way of dividends received from a specified foreign company in Financial Year 2013-14 also, subject to the same conditions.

This  amendment will take effect from 1st   April,  2014 and will, accordingly, apply in relation to the  assessment year 2014-15.
[Clause 26]

Removal of the cascading effect of Dividend Distribution Tax (DDT)

Section 115-O of the Income-tax Act provides for taxation of distributed profits of a domestic company. It provides that any amount declared, distributed or paid by way of dividends, whether out of current or accumulated profits, shall be liable to be taxed at the rate of 15%. The tax is known as Dividend Distribution Tax (DDT). Such distributed dividend is exempt in the hands of recipients.

Section 115BBD of Income Tax Act provides for taxation of gross dividends received by an Indian company from a specified foreign company (in which it has shareholding of 26% or more) at the rate of 15%.

Section 115-O provides that the tax base for DDT (i.e. the dividend payable in case of a company) is to be reduced by an amount of dividend received from its subsidiary if such subsidiary has paid the DDT which is payable on such dividend . This ensured removal of cascading effect of DDT in a multi-tier structure where dividend received by a domestic company from its subsidiary (which is also a domestic company) is distributed to its shareholders.

It is proposed to amend section 115-O in order to remove the cascading effect in respect of dividends received by a domestic company from a similarly  placed foreign subsidiary ( ie the foreign company in which domestic company holds more than fifty percent of equity share capital).  It is proposed that where the tax on dividends received from the foreign subsidiary is payable under section 115BBD by the holding  domestic company then, any dividend distributed by the holding company in the same year, to the extent of such dividends, shall not be subject to Dividend Distribution Tax under section 115-O of the Income-tax Act.

This amendment will take effect from 1st  June, 2013.
[Clause 27]

Concessional rate of withholding tax on interest in case of certain rupee denominated long-term infrastructure bonds
The existing provisions of section 194LC provide that if an Indian company borrows money in foreign currency from a source outside India either under a loan agreement or by way of issue of long-term infrastructure bonds, as approved by the Central Government, then the interest payment to a non-resident person would be subject to a concessional rate of tax @ 5%.

In order to facilitate subscription by a non-resident in the long term infrastructure bonds issued by an Indian company in India (rupee denominated bond ), it is proposed to amend section 194LC of the Income-tax Act so as to provide that where a non-resident deposits foreign currency in a designated bank account and such money as converted in rupees is utilised for subscription to a long-term infrastructure bond issue of an Indian company, then, for the purpose of this section, the borrowing by the company shall be deemed to be in foreign currency. The benefit of reduced rate of tax would, therefore, be available to such non-resident in respect of the interest income arising on such subscription subject to other conditions provided in the section.

The designated bank account should be solely for the purpose of deposit of money in foreign currency and such money is to be used, after conversion, for subscription to a rupee denominated long-term infrastructure bond issue of an Indian company.

This amendment will take effect from 1st  June, 2013.
[Clause 43]

Taxation of Securitisation Trusts
Section 161 of the Income-tax Act provides that in case of a trust if its income consists of or includes profits and gains of business then income of such trust shall be taxed at the maximum marginal rate in the hands of trust.

The special purpose entities set up in the form of trust to undertake securitisation activities were facing problem due to lack of special dispensation in respect of taxation under the Income-tax Act. The taxation at the level of trust due to existing provisions was considered to be restrictive particularly where the investors in the trust are persons which are exempt from taxation under the provisions of the Income-tax Act like Mutual Funds.

In order to facilitate the securitisation process, it is proposed to provide a special taxation regime in respect of taxation of income of securitisation entities, set up as a trust, from the activity of securitisation. It is proposed to amend section 10 and also insert a new Chapter XII-EA for providing a special tax regime.  The salient features of the special regime are :-

(i)   In case of securitisation vehicles which are set up as a trust and the activities of which are regulated by either SEBI or RBI, the income from the activity of securitisation of such trusts will be exempt from taxation.

(ii)  The securitisation trust will be liable to pay additional income-tax on income distributed to its investors on the line of distribution tax levied in the case of mutual funds. The additional income-tax shall be levied @ 25% in case of distribution being made to investors who are individual and HUF and @ 30% in other cases. No additional income- tax shall be payable if the income distributed by the securitisation trust is received by a person who is exempt from tax under the Act.

(iii)  Consequent to the levy of distribution tax, the distributed income received by the investor will be exempt from tax.

(iv)  The securitisation trust will be liable to pay interest at the rate of one percent. for every month or part of the month on the amount of additional income-tax not paid within the specified time .

(v)   The person responsible for payment of income or the securitisation trust will be deemed to be an assessee in default in respect of amount of tax payable by him or it in case the additional income-tax is not paid to the credit of Central Government.

This amendment will take effect from 1st  June, 2013.
[Clauses 4 & 30]

Securities Transaction Tax (STT)
Securities Transaction Tax (STT) on transactions in specified securities was introduced vide Finance (No.2) Act, 2004.

It is proposed to amend section 98 of the Finance (No.2) Act, 2004 to reduce STT rates in the taxable securities transactions as indicated hereunder:-

TABLE
Sl.No. Nature of taxable securities transaction Payable by "Existing Rates (in per cent)" "Proposed Rates (in per cent)"
1 2 3 4 5
1 "Delivery based purchase of units of an equity oriented fund entered into in a recognised stock exchange" Purchaser 0.1 Nil
2 "Delivery based sale of Seller 0.1 0.001 units of an equity oriented fund entered into in a recognised stock exchange" Seller 0.1 0.001
3 Sale of a futures in securities Seller 0.017 0.01
4 Sale of a unit of an equity Seller 0.25 0.001 Seller 0.25 0.001
The proposed amendments in the rates of securities transaction tax will be effective from 1st June, 2013 and will accordingly apply to any transaction made on or after that date.
[Clause 125]

Pass through Status to certain Alternative Investment Funds
Existing provisions of section 10(23FB) of the Income-tax Act provide that any income of a Venture Capital Company (VCC) or Venture Capital Fund (VCF) from investment in a Venture Capital Undertaking (VCU) shall be exempt from taxation. Section 115U of the Income-tax Act provides that income accruing or arising or received by a person out of investment made in a VCC or VCF shall be taxable in the same manner as if the person had made direct investment in the VCU.

These sections provide a tax pass through status (i.e. income is taxable in the hands of investors instead of VCF/VCC) only to the funds which satisfy the investment and other conditions as are provided in SEBI (Venture Capital Fund) Regulations, 1996. Further the pass through status is available only in respect of income which arises to the fund from investment in VCU, being a company which satisfies the conditions provided in SEBI (Venture Capital Fund) Regulations, 1996.

The SEBI(Alternative Investment Funds) Regulations, 2012 (AIF regulations) have replaced the SEBI (Venture Capital Fund) Regulations, 1996 (VCF regulations) from 21st  May, 2012.

In order to provide benefit of pass through to similar venture capital funds as are registered under new regulations and subject to same conditions of investment restrictions in the context of investment in a venture capital undertaking, it is proposed to amend section 10(23FB) to provide that–

(i)   The existing VCFs and VCCs (i.e. which have been registered before 21/05/2012) and are regulated  by the VCF regulations, as they stood before repeal by AIF regulations, would continue to avail pass through status as currently available.

(ii)   In the context of AIF regulations, the Venture Capital Company shall be defined as a company and  Venture capital fund shall be defined as a  fund set up as a trust, which  has been granted  a certificate of registration as  Venture Capital Fund being a sub-category of  Category I Alternative Investment Fund and satisfies the following conditions:-

(a)          That at least two-thirds of its  investible funds are invested in unlisted equity shares or equity linked instruments of venture capital undertaking.

(b)          No investment has been made by such AIFs in a VCU which is an associate company.

(c)           Units of a trust set up as AIF or shares of a company set up as AIF, are not listed on a recognised stock exchange.

(iii)  In the context of AIF regulations, the Venture Capital Undertaking shall be defined as it is defined in the Alternative Investment  Funds Regulations.

This amendment will take effect retrospectively from 1st April, 2013 and will accordingly apply in relation to assessment year 2013-14  and subsequent assessment years.
[Clause 4]

E. WIDENING OF TAX BASE AND ANTI TAX AVOIDANCE MEASURES
Tax Deduction at Source (TDS) on transfer of certain immovable properties (other than agricultural land)

There is a statutory requirement under section 139A of the Income-tax Act read with rule 114B of the Income-tax Rules, 1962 to quote Permanent Account Number (PAN) in documents pertaining to purchase or sale of immovable property for value of Rs.5 lakh or more.  However, the information furnished to the department in Annual Information Returns by the Registrar or Sub- Registrar indicate that a majority of the purchasers or sellers of immovable properties, valued at Rs.30 lakh or more, during the financial year 2011-12 did not quote or quoted invalid PAN in the documents relating to transfer of the property.

Under the existing provisions of the Income-tax Act, tax is required to be deducted at source on certain specified payments made to residents by way of salary, interest, commission, brokerage, professional services, etc.  On transfer of immovable property by a non-resident, tax is required to be deducted at source by the transferee. However, there is no such requirement on transfer of immovable property by a resident except in the case of compulsory acquisition of certain immovable properties. In order to have a reporting mechanism of transactions in the real estate sector and also to collect tax at the earliest point of time, it is proposed to insert a new section 194-IA to provide that every transferee, at the time of making payment or crediting of any sum as consideration for transfer of immovable property (other than agricultural land) to a resident transferor, shall deduct tax, at the rate of 1% of such sum.

In order to reduce the compliance burden on the small taxpayers, it is further proposed that no deduction of tax under this provision shall be made where the total amount of consideration for the transfer of an immovable property is less than fifty lakh rupees.

This amendment will take effect from 1st  June, 2013.
[Clause 42]

Additional Income-tax on distributed income by company for buy-back of unlisted shares
Existing provisions of Section 2(22)(e) provide the definition of dividends for the purposes of the Income-tax Act. Section 115- O provides for levy of Dividend Distribution Tax(DDT) on the company at the time when company distributes , declares or pays any dividend to its shareholders. Consequent to the levy of DDT the amount of dividend received by the shareholders is not included in the total income of the shareholder.

The consideration received by a shareholder on buy-back of shares by the company is not treated as dividend but is taxable as capital gains under section 46A of the Act.

A company, having distributable reserves, has two options to distribute the same to its shareholders either by declaration and payment of dividends to the shareholders, or by way of purchase of its own shares (i.e. buy back of shares) at a consideration fixed by it. In the first case, the payment by company is subject to DDT and income in the hands of shareholders is exempt. In the second case the income is taxed in the hands of shareholder as capital gains.

Unlisted Companies, as part of tax avoidance scheme, are resorting to buy back of shares instead of payment of dividends in order to avoid payment of tax by way of DDT particularly where the capital gains arising to the shareholders are either not chargeable to tax or are taxable at a lower rate.

In order to curb such practice it is proposed to amend the Act, by insertion of new Chapter XII-DA, to provide that the consideration paid by the company for purchase of its own unlisted shares which is in excess of the sum received by the company at the time of issue of such shares (distributed income) will be charged to tax and the company would be liable to pay additional income-tax @ 20% of the distributed income paid to the shareholder. The additional income-tax payable by the company shall be the final tax on similar lines as dividend distribution tax. The income arising to the shareholders in respect of such buy back by the company would be exempt where the company is liable to pay the additional income-tax on the buy-back of shares.

These amendments will take effect from 1st June, 2013.
[Clauses 4 & 28]

Computation of income under the head “Profits and gains of business or profession” for transfer of immovable property in certain cases
Currently, when a capital asset, being immovable property, is transferred for a consideration which is less than the value adopted, assessed or assessable by any authority of a State Government for the purpose of payment of stamp duty in respect of such transfer, then such value (stamp duty value) is taken as full value of consideration under section 50C of the Income-tax Act.  These provisions do not apply to transfer of immovable property, held by the transferor as stock-in-trade.

It is proposed to provide by inserting a new section 43CA that where the consideration for the transfer of an asset (other than capital asset), being land or building or both, is less than the stamp duty value, the value so adopted or assessed or assessable shall be deemed to be the full value of the consideration for the purposes of computing income under the head “Profits and gains of business of profession”.

It is also proposed to provide that where the date of an agreement fixing the value of consideration for the transfer of the asset and the date of registration of the transfer of the asset are not same, the stamp duty value may be taken as on the date of the agreement for transfer and not as on the date of registration for such transfer.  However, this exception shall apply only in those cases where amount of consideration or a part thereof for the transfer has been received by any mode other than cash on or before the date of the agreement.

These amendments will take effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15  and subsequent assessment years.
[Clause   8]

Taxability of immovable property received for inadequate consideration
The existing provisions of sub clause (b) of clause (vii) of sub-section (2) of section 56 of the Income-tax Act, inter alia, provide that where any immovable property is received by an individual or HUF without consideration, the stamp duty value of which exceeds fifty thousand rupees, the stamp duty value of such property would be charged to tax in the hands of the individual or HUF as income from other sources.

The existing provision does not cover a situation where the immovable property has been received by an individual or HUF for inadequate consideration. It is proposed to amend the provisions of clause (vii) of sub-section (2) of section 56 so as to provide that where any immovable property is received for a consideration which is less than the stamp duty value of the property by an amount exceeding fifty thousand rupees, the stamp duty value  of such property as exceeds such consideration, shall be chargeable to tax in the hands of the individual or HUF as income from other sources.

Considering the fact that there may be a time gap between the date of agreement and the date of registration, it is proposed to provide that where the date of the agreement fixing the amount of consideration for the transfer of the immovable property and the date of registration are not the same, the stamp duty value may be taken as on the date of the agreement, instead of that on the date of registration. This exception shall, however, apply only in a case where the amount of consideration, or a part thereof, has been paid by any mode other than cash on or before the date of the agreement fixing the amount of consideration for the transfer of such immovable property.

This  amendment will take effect from 1st   April,  2014 and will, accordingly, apply in relation to the  assessment year 2014-15  and subsequent assessment years.
[Clause 9]

F. RATIONALISATION MEASURES

GENERALANTI-AVOIDANCERULE(GAAR)
The General Anti Avoidance Rule (GAAR) was introduced in the Income-tax Act by the Finance Act, 2012. The substantive provisions relating to GAAR are contained in Chapter X-A (consisting of sections 95 to 102) of the Income-tax Act. The procedural provisions relating to mechanism for invocation of GAAR and passing of the assessment order in consequence thereof are contained in section 144BA. The provisions of Chapter X-A as well as section 144BA would have come into force with effect from 1st  April, 2014.

A number of representations were received against the provisions relating to GAAR. An Expert Committee was constituted by the Government with broad terms of reference including consultation with stakeholders and finalising the GAAR guidelines and  a  road  map  for  implementation.  The Expert Committee’s recommendations included suggestions for legislative amendments, formulation of rules and prescribing guidelines for implementation of GAAR.  The major recommendations of the Expert Committee have been accepted by the Government, with some modifications. Some of the recommendations accepted by the Government require amendment in the provisions of Chapter X-A and section 144BA .

In order to give effect to the recommendations the following amendments have been made in GAAR provisions currently provided in the Act:-

(A)  The provisions of Chapter X-A and section 144BA will come into force with effect from April 1, 2016 as against the current date of April 1, 2014. The provisions shall apply from the assessment year  2016-17 instead of assessment year 2014-15.

(B)  An arrangement, the main purpose of which is to obtain a tax benefit, would be considered as an  impermissible avoidance arrangement. The current provision of section 96 providing that it should be “the main purpose or one of the main purposes” has been proposed to be amended accordingly.

(C)  The factors like, period or time for which the arrangement had existed; the fact of payment of taxes by the assessee; and the fact that an exit route was provided by the arrangement, would be relevant but not sufficient to determine whether the arrangement is an impermissible avoidance arrangement. The current provisions of section 97 which provided that these factors would not be relevant has been proposed to be amended accordingly.

(D)  An arrangement shall also be deemed to be lacking commercial substance, if it does not have a significant effect upon the business risks, or net cash flows of any party to the arrangement apart from any effect attributable to the tax benefit that would be obtained but for the application of Chapter X-A. The current provisions as contained in section 97 are proposed to be amended to provide that an arrangement shall also be deemed to lack commercial substance if the condition provided above is satisfied.

(E)  The Approving Panel shall consist of a Chairperson who is or has been a Judge of a High Court; one Member of the Indian Revenue Service not below the rank of Chief Commissioner of Income-tax; and one Member who shall be an academic or scholar having special knowledge of matters such as direct taxes, business accounts and international trade practices. The current provision  of section 144BA ,that the Approving Panel shall consist of not less than three members being income-tax authorities and an  officer of the Indian Legal Service  has been  proposed to be amended accordingly.

(F)  The directions issued by the Approving Panel shall be binding on the assessee as well as the income-tax authorities and no appeal against such directions can be made under the provisions of the Act. The current provisions of section 144BA providing that the direction of the Approving Panel will be binding only on the Assessing Officer have been proposed to be amended accordingly.

(G)  The Central Government may constitute one or more Approving Panels as may be necessary and the term of the Approving Panel shall be ordinarily for one year and may be extended from time to time up to a period of three years. The provisions of section 144BA have been proposed to be amended accordingly.

(H)  The two separate definitions in the current provisions of section 102, namely, “associated person” and “connected person” will be combined and there will be only one inclusive provision defining a ‘connected person’. The provisions of section 102 have been proposed to be amended accordingly.

Consequential amendments in other sections relating to procedural matters are also proposed.

These amendments will take effect from 1st  April, 2016 and will, accordingly, apply in relation to the  assessment year 2016-17  and subsequent assessment  years.
[Clauses 21, 22,23, 24,34,35,36,37,38,39,44,45,46,47 & 49]

Rationalisation of tax on distributed income by the Mutual Funds
Under the existing provisions of section 115R any amount of income distributed by the specified company or a Mutual Fund to its unit holders is chargeable to additional income-tax. In case of any distribution made by a fund other than equity oriented fund to a person who is not an individual and HUF, the rate of tax is 30% whereas in case of distribution to an individual or an HUF it is 12.5% or 25% depending on the nature of the fund.

In order to provide uniform taxation for all types of funds, other than equity oriented fund, it is proposed to increase the rate of tax on distributed income from 12.5% to 25% in all cases where distribution is made to an individual or a HUF.

Further in case of an Infrastructure debt fund (IDF) set up as a Non-Banking Finance Company (NBFC) the interest payment made by the fund to a non-resident investor is taxable at a concessional rate of 5%. However in case of distribution of income by an IDF set up as a Mutual Fund the distribution tax is levied at the rates described above in the case of a Mutual Fund.

In order to bring parity in taxation of income from investment made by a non-resident Investor in an IDF whether set up as a IDF-NBFC or IDF-MF, it is proposed to amend section 115R to provide that tax @ 5% on income distributed shall be payable in respect of income distributed by a Mutual Fund under an IDF scheme to a non-resident Investor.

This amendment will take effect from 1st  June, 2013.
[Clause 29]

Enabling provisions for facilitating electronic filing of annexure-less return of net wealth
Section 14 of the Wealth-tax Act provides for furnishing of return of net wealth as on the valuation date in the prescribed form and verified in the prescribed manner setting forth particulars of the net wealth and such other particulars as may be prescribed. Currently, certain documents, reports are required to be furnished along with the return of net wealth under the provisions of Wealth-tax Act read with the provisions of Wealth-tax Rules.

Sections 139C and 139D of the Income-tax Act contain provisions for facilitating filing of annexure-less return of income in electronic form by certain class of income-tax assessees. In order to facilitate electronic filing of annexure-less return of net wealth, it is proposed to insert new sections 14A and 14B in the Wealth-tax Act on similar lines.

Consequently, it is also proposed to amend provisions of section 46 of the Wealth-tax Act which provides for rule making powers of the Board.

These amendments will take effect from 1st  June, 2013.
[Clauses 52 & 53]

Disallowance of certain fee, charge, etc. in the case of State Government Undertakings
The existing provisions of section 40 specifies the amounts which shall not be deducted in computing the income chargeable under the head “Profits and gains of business or profession”. The non-deductible expense under the said section also includes statutory dues like fringe benefit tax, income-tax, wealth-tax, etc.

Disputes have arisen in respect of income-tax assessment of some State Government undertakings as to whether any sum paid by way of privilege fee, license fee, royalty, etc. levied or charged by the State Government exclusively on its undertakings are deductible or not for the purposes of computation of income of such undertakings. In some cases, orders have been issued to the effect that surplus arising to such undertakings shall vest with the State Government. As a result it has been claimed that such income by way of surplus is not subject to tax.  It is a settled law that State Government undertakings are separate legal entities than the State and are liable to income-tax.

In order to protect the tax base of State Government undertakings vis-à-vis exclusive levy of fee, charge, etc. or appropriation of amount by the State Governments from its undertakings, it is proposed to amend section 40 of the Income-tax Act to provide that any amount paid by way of fee, charge, etc., which is levied exclusively on, or any amount appropriated, directly or indirectly, from a State Government undertaking,   by the State Government,  shall not be allowed as deduction for the purposes of computation of income of such undertakings under the head “Profits and gains of business or profession”. It is also proposed to define the expression “State Government Undertaking” for this purpose.

This  amendment will take effect from 1st   April,  2014 and will, accordingly, apply in relation to the  assessment year 2014-15  and subsequent assessment years.
[Clause 7]

Amendment in the definition of Capital Asset
The existing provisions contained in clause (14) of section 2 of the Income-tax Act define the term “capital asset” as property of any kind held by an assessee, whether or not connected with his business or profession. Certain categories of properties including agricultural land have been excluded from this definition. Sub-clause (iii) of clause (14) of section 2 provides that (a) agricultural land situated in any area within the jurisdiction of a municipality or cantonment board having population of not less than ten thousand according to last preceding census, or (b) agricultural land situated in any area within such distance not exceeding eight kilometers from the local limits of any municipality or cantonment board, as notified by the Central Government having regard to the extent and scope of urbanization and other relevant factors, forms part of capital asset.

It is proposed to amend item (b) of sub-clause (iii) of clause (14) of section 2 so as to provide that the land situated in any area within the distance, measured aerially (shortest aerial distance), (I) not being more than two kilometers, from the local limits of any municipality or cantonment board referred to in item (a)  and which has a population of more than ten thousand but not exceeding one lakh; or (II) not being more than six kilometers, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than one lakh but not exceeding ten lakh; or (III) not being more than eight kilometers, from the local limits of any municipality or cantonment board referred to in item (a) and which has a population of more than ten lakh, shall form part of capital asset.

It is also proposed to define the expression “population” to mean population according to the last preceding census of which the relevant figures have been published before the first day of the previous year.

Similar amendments are also proposed in clause (1A) of section 2 of the Income-tax Act, 1961 relating to the definition of “agricultural income” and in respect of the definition of “urban land” in the Wealth-tax Act, 1957.

These amendments will take effect from 1st  April, 2014 and will, accordingly, apply in relation to assessment year 2014-15 and  subsequent  assessment  years.
[Clauses 3 & 51]

Keyman insurance policy
The existing provisions of clause (10D) of section 10, inter alia, exempt any sum received under a life insurance policy other than a keyman insurance policy. Explanation 1 to the said clause (10D) defines  a keyman insurance policy to  mean a life insurance policy taken by a person on the life of another person who is or was the employee of the first-mentioned person or is or was connected in any manner whatsoever with the business of the first-mentioned person.

It has been noticed that the policies taken as keyman insurance policy are being assigned to the keyman before its maturity. The keyman pays the remaining premium on the policy and claims the sum received under the policy as exempt on the ground that the policy is no longer a keyman insurance policy. Thus, the exemption under section 10(10D) is being claimed for policies which were originally keyman insurance policies but during the term these were assigned to some other person.  The Courts have also noticed this loophole in law.

With a view to plug the loophole and check such practices to avoid payment of taxes, it is proposed to amend the provisions of clause (10D) of section 10 to provide that a keyman insurance policy which has been assigned to any person during its term, with or without consideration, shall continue to be treated as a keyman insurance policy.

The above amendment will take effect from 1st  April, 2014 and will, accordingly, apply in relation to  assessment year 2014-15  and subsequent assessments years.
[Clause 4]

Contribution not to be in cash for deduction under section 80GGB & section 80GGC
Under the existing provisions of section 80GGB, any sum contributed by an Indian company to any political party or an electoral trust in the previous year, is allowed as deduction in computing the total income of such Indian company.  A similar deduction is available to an assessee, being any person other than local authority and artificial juridical person under section 80GGC. There is no specific mode provided for making such contribution.

With a view to discourage cash payments by the contributors, it is proposed to amend the provisions of aforesaid sections, so as to provide that no deduction shall be allowed under section 80GGB and 80GGC in respect of any sum contributed by way of cash.

This  amendment will take effect from 1st   April,  2014 and will, accordingly, apply in relation to the  assessment year 2014-15  and subsequent assessment years.
[Clauses 15 & 16]

Clarification of the phrase “tax due” for the purposes of recovery in certain cases
Section 179 of the Income-tax Act provides that where the tax due from a private company cannot be recovered from such company, then the director (who was the director of such company during the previous year to which non-recovery relates) shall be jointly and severally liable for payment of such tax unless he proves that the non-recovery of tax cannot be attributed to any gross neglect, misfeasance or breach of duty on his part. This provision is intended to recover outstanding demand under the Act of a private company from the directors of such company in certain cases. However, some courts have interpreted the phrase ‘tax due’ used in section 179 to hold that it does not include penalty, interest and other sum payable under the Act.

In view of the above, it is proposed to clarify that for the purposes of this section, the expression “tax due” includes penalty, interest or any other sum payable under the Act. Amendments on the similar lines for clarifying the expression ‘tax due’ is proposed to be made to the provisions of section 167C.

These amendments will take effect from 1st  June, 2013.
[Clauses   40 & 41]

Deduction for additional wages in certain cases
The existing provisions contained in section 80JJAA of the Income-tax Act provide for a deduction of an amount equal to thirty per cent of additional wages paid to the new regular workmen employed in any previous year by an Indian company in its industrial undertaking engaged in manufacture or production of article or thing. The deduction is available for three assessment years including the assessment year relevant to the previous year in which such employment is provided.

No deduction under this section is allowed if the industrial undertaking is formed by splitting up or reconstruction of an existing undertaking or amalgamation with another industrial undertaking.

The tax incentive under section 80JJAA was intended for employment of blue collared employees in the manufacturing sector whereas in practice, it is being claimed for other employees in other sectors also. It is, therefore, proposed to amend the provisions of section 80JJAA so as to provide that the deduction shall be available to an Indian Company deriving profits from manufacture of goods in its factory.  The deduction shall be of an amount equal to thirty per cent of additional wages paid to the new regular workmen employed by the assessee in such factory, in the previous year, for three assessment years including the assessment year relevant to the previous year in which such employment is provided.

It is also proposed to provide that the deduction under this section shall not be available if the factory is hived off or transferred from another existing entity or acquired by the assessee company as a result of amalgamation with another company.

This amendment will take effect from 1st April, 2014 and will, accordingly, apply in relation to assessment year 2014-15 and subsequent  assessment  years.
[Clause 18]

Tax Residency Certificate
Section 90 of the Income Tax Act empowers the Central Government to enter into an agreement with the Government of any foreign country or specified territory outside India for the purpose of –

(i) granting relief in respect of avoidance of double taxation,

(ii) exchange of information and

(iii) recovery of taxes.

Further section 90A of the Income-tax Act empowers the Central Government to adopt any agreement between specified associations for above mentioned purposes.

In exercise of this power, the Central Government has entered into various Double Taxation Avoidance Agreements (DTAAs) with different countries and has adopted agreements between specified associations for relief of double taxation. The scheme of interplay between DTAA and domestic legislation ensures that a taxpayer, who is resident of one of the contracting country to the DTAA, is entitled to claim applicability of beneficial provisions either of DTAA or of the domestic law.  Sub-section (4) of sections 90 and  90A of the Income-tax Act inserted by Finance Act, 2012  makes  submission of Tax Residency Certificate containing prescribed particulars, as a condition for availing benefits of the agreements referred to in these sections.

It is proposed to amend sections 90 and 90A in order to provide that submission of a tax residency certificate is a necessary but not a sufficient condition for claiming benefits under the agreements referred to in sections 90 and 90A.  This position was earlier mentioned in the memorandum explaining the provisions in Finance Bill, 2012, in the context of insertion of sub-section (4) in sections 90 & 90A.

These  amendments will take effect retrospectively from 1st   April,  2013 and will, accordingly, apply in  relation to the assessment year 2013-14 and subsequent assessment years.
[Clauses 21 & 22]

Application of seized assets under section 132B
The existing provisions contained in section 132B of the Income-tax Act, inter alia, provide that seized assets may be adjusted against any existing liability under the Income-tax Act, Wealth-tax Act, the Expenditure-tax Act, the Gift-tax Act and the Interest-tax Act and the amount of liability determined on completion of assessments pursuant to search, including penalty levied or interest payable and in respect of which such person is in default or deemed to be in default.

Various courts have taken a view that the term “existing liability” includes advance tax liability of the assessee, which is not in consonance with the intention of the legislature. The legislative intent behind this provision is  to  ensure the recovery of outstanding tax/interest/penalty and also to provide for recovery of taxes/interest/penalty, which may arise subsequent to the assessment pursuant to search.

Accordingly, it is proposed to amend the aforesaid section so as to clarify that the existing liability does not include advance tax payable in accordance with the provisions of Part C of Chapter XVII of the Act.

This amendment will take effect from 1st  June, 2013.
[Clause 31]

Return of Income filed without payment of self- assessment tax to be treated as defective return
The existing provisions contained in sub-section (9) of section 139 provide that where the Assessing Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days. If the defect is not rectified within the time allowed by the Assessing Officer, the return is treated as an invalid return. The conditions, the non-fulfillment of which renders the return defective, have been provided in the Explanation to the aforesaid sub-section.

Section 140A provides that where any tax is payable on the basis of any return, after taking into account the prepaid taxes, the assessee shall be liable to pay such tax together with interest payable under any provision of this Act for any delay in furnishing the return or any default or delay in payment of advance tax, before furnishing the return.

It  has  been  noticed  that  a  large  number  of  assessees  are  filing  their  returns  of  income  without  payment  of self-assessment  tax.

It is, therefore, proposed to amend the aforesaid Explanation so as to provide that the return of income shall be regarded as defective unless the tax together with interest, if any, payable in accordance with the provisions of section 140A has been paid on or before the date of furnishing of the return.

This amendment will take effect from 1st  June, 2013.
[Clause 32]

Direction for special audit under sub-section (2A) of section 142
The existing provisions contained in sub-section (2A) of section 142 of the Income-tax Act, inter alia, provide that if at any stage of the proceeding, the Assessing Officer having regard to the nature and complexity of the accounts of the assessee and the interests of the revenue, is of the opinion that it is necessary so to do, he may, with the approval of the Chief Commissioner or Commissioner, direct the assessee to get his accounts audited by an accountant and to furnish a report of such audit.

The expression “nature and complexity of the accounts” has been interpreted in a very restrictive manner by various courts. It is, therefore, proposed to amend the aforesaid sub-section so as to provide that if at any stage of the proceedings before him, the Assessing Officer, having regard to the nature and complexity of the accounts, volume of the accounts, doubts about the correctness of the accounts, multiplicity of transactions in the accounts or specialized nature of business activity of the assessee, and the interests of the revenue, is of the opinion that it is necessary so to do, he may, with the previous approval of the Chief Commissioner or the Commissioner, direct the assessee to get his accounts audited by an accountant and to furnish a report of such audit.

This amendment will take effect from 1st  June, 2013.
[Clause 33]

Exclusion of time in computing the period of limitation for completion of assessments and reassessments
The existing provisions of section 153, inter alia, provide the time limit for completion of assessment and reassessment of income by the Assessing Officer.

Explanation to section 153 provides that certain periods specified therein shall be excluded while computing the period of limitation for the purposes of the said section.

Under the existing provisions of clause (iii) of Explanation 1 to section 153, the period commencing from the date on which the Assessing Officer directs the assessee to get his accounts audited under sub-section (2A) of section 142 and ending with the last date on which the assesee is required to furnish a report of such audit, is excluded in computing the period of limitation for the purposes of assessment or reassessment.

However, the existing provision does not provide for exclusion of time in case the direction of the Assessing Officer is set aside by the court.

It is proposed to amend clause (iii) of Explanation 1 to section 153 so as to provide that the period commencing from the date on which the Assessing Officer directs the assessee to get his accounts audited under sub-section (2A) of section 142 and ending with the last date on which the assessee is required to furnish a report of such audit under that sub-section; or where such direction is challenged before a court, ending with the date on which the order setting aside such direction is received by the Commissioner, shall be excluded in computing the period of limitation for the purposes of section 153.

Similarly, the existing provisions contained in clause (viii) of Explanation I to section 153 provide for exclusion of the period commencing from the date on which a reference for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A and ending with the date on which the information so requested is received by the Commissioner or a period of one year, whichever  is less, in computing the period of limitation for the purposes of section 153.

At times more than one reference for exchange of information is made in one case and the replies from the foreign Competent Authorities are also received in parts. In such cases, there will always be a dispute for counting the period of exclusion i.e. whether it should be from the date of first reference for exchange of information made or from the date of last reference. Similar dispute may also arise with regard to the date on which the information so requested is received.

With a view to clarify the above situation, it is proposed to amend the aforesaid clause (viii) so as to provide that the period commencing from the date on which a reference or first of the references for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A and ending with the date on which the information requested is last received by  the Commissioner or a period of one year, whichever is less, shall be excluded in computing the period of limitation for the purposes of section 153.

Similar amendments are also proposed in the Explanation to section 153B of the Income-tax Act relating to time limit for completion of search assessment.

These amendments will take effect from 1st  June, 2013.
[Clauses 37 & 38]

Penalty under section 271FA for non-filing of Annual Information Return
Section  285BA  mandates  furnishing  of  annual  information  return  by  the  specified  persons  in  respect  of  specified transactions within the time prescribed under sub-section (2) thereof. Sub-section (5) of the section empowers the Assessing Officer to issue notice if the annual information return has not been furnished by the due date.

The existing provisions contained in section 271FA of the Income-tax Act provide that if a person who is required to furnish an annual information return, as required under sub-section (1) of section 285BA, fails to furnish such return within the time prescribed under that sub-section, the income-tax authority prescribed under the said sub-section may direct that such person shall pay, by way of penalty, a sum of one hundred rupees for every day during which the failure continues.

It is proposed to amend the aforesaid section so as to provide that if a person who is required to furnish an annual information return, as required under sub-section (1) of section 285BA, fails to furnish such return  within the time prescribed under sub-section (2) thereof, the income-tax authority prescribed under sub-section (1) of the said section may direct that such person shall pay, by way of penalty, a sum of one hundred rupees for every day during which the failure continues.

It is further proposed to provide that where such person fails to furnish the return within the period specified in the notice under sub-section (5) of section 285BA, he shall pay, by way of penalty, a sum of five hundred rupees for every day during which the failure continues, beginning from the day immediately following the day on which the time specified in such notice for furnishing the return expires.

This amendment will take effect from 1st  April, 2014.
[Clause 48]

Extension of time for approval in Part A of the Fourth Schedule to the Income-tax Act, 1961
Rule 4 in Part A of the Fourth Schedule to the Income-tax Act provides for conditions which are required to be satisfied by a Provident Fund for receiving or retaining recognition under the Income-tax Act. One of the requirements of rule 4 as contained in clause (ea) is that the establishment has to be notified by the Central Provident Fund Commissioner under section 1(4) of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 [EPF & MP Act] and has obtained exemption under section 17 of the said Act.

Rule 3 in Part A of the Fourth Schedule provides that the Chief Commissioner or the Commissioner of Income-tax may accord recognition to any provident fund which, in his opinion, satisfies the conditions specified under the said rule 4 and the conditions which the Board may specify by rules.

The first proviso to sub-rule (1) of rule 3, inter alia, specifies that in a case where recognition under the Income-tax Act has been accorded to any provident fund on or before 31st March, 2006, but such provident fund does not satisfy the conditions set out in clause (ea) of rule 4 on or before 31st  March 2013, the recognition to such fund shall be withdrawn.

It has been noticed that a number of applications are yet to be processed by the Employees’ Provident Fund Organization (EPFO) for grant of exemption under section 17 of EPF & MP Act. With a view to provide further time to the EPFO to decide on the pending applications seeking exemption under section 17 of the EPF & MP Act, it is proposed to amend the first proviso, so as to extend the time limit from 31st  March, 2013 to 31st   March, 2014.

This amendment will take effect retrospectively from 1st  April, 2013.
[Clause 50]

Clarification for amount to be eligible for deduction as bad debts in case of banks
Under the existing provisions of section 36(1)(viia) of the Income-tax Act, in computing the business income of certain banks and financial institutions, deduction is allowable in respect of any provision for bad and doubtful debts made by such entities subject to certain limits specified therein. The limit specified under section 36(1)(viia)(a) of the Act restrict the claim of deduction for provision for bad and doubtful debts for certain banks (not incorporated outside India) and certain cooperative banks to 7.5% of gross total income (before deduction under this clause) of such banks and 10% of the aggregate average advance made by the rural branches of such banks.  This limit is 5% of gross total income (before deduction under this clause) under sections
36(1)(viia)(b) and 36(1)(viia)(c) for a bank incorporated outside India and certain financial institutions.

Provisions of clause (vii) of section 36(1) of the Act provides for deduction for bad debt actually written off as irrecoverable in the books of account of the assessee. The proviso to this clause provides that for an assessee, to which section 36(1)(viia) of the Act applies, deduction under said clause (vii) shall be limited to the amount by which the bad debt written off exceeds the credit balance in the provision for bad and doubtful debts account made under  section 36(1) (viia) of the Act.

The provisions of section 36(1)(vii) of the Act are subject to the provisions of section 36(2) of the Act. The clause (v) of section 36(2) of the Act provides that the assessee, to which section 36(1)(viia) of the Act applies, should debit the amount of bad debt written off to the provision for bad and doubtful debts account made under section 36(1) (viia) of the Act.

Therefore, the banks or financial institutions are entitled to claim deduction for bad debt actually written off under section 36(1)(vii) of the Act only to the extent it is in excess of the credit balance in the provision for bad and doubtful debts account made under section 36(1)(viia) of the Act.   However, certain judicial pronouncements have created  doubts about the scope and applicability of proviso to section 36(1)(vii) and held that the proviso to section 36(1)(vii) applies only to provision made for bad and doubtful debts relating to rural advances.

Section 36(1)(viia) of the Act contains three sub-clauses, i.e. sub-clause (a), sub-clause (b) and sub-clause (c) and only one of the sub-clauses i.e. sub-clause (a) refers to rural advances whereas other sub-clauses do not refer to the rural advances. In fact, foreign banks generally do not have rural branches.  Therefore, the provision for bad and doubtful debts account made under clause (viia) of section 36(1) and referred to in proviso to clause (vii) of section 36(1) and section 36(2)(v) applies to all types of advances, whether rural or other advances.

It has also been interpreted that there are separate accounts in respect of provision for bad and doubtful debt under clause (viia) for rural advances and urban advances and if the actual write off of debt relates to urban advances, then, it should not be set off against provision for bad and doubtful debts made for rural advances.  There is no such distinction made in clause (viia) of section 36(1).

In order to clarify the scope and applicability of provision of clause (vii), (viia) of sub-section (1) and sub-section (2), it is proposed to insert an Explanation in clause (vii) of section 36(1) stating that for the purposes of the proviso to section 36(1)(vii) and section 36(2)(v), only one account as referred to therein is made in respect of provision for bad and doubtful debts under section 36(1)(viia) and such account relates to all types of advances, including advances made by rural branches.  Therefore, for an assessee to which clause (viia) of section 36(1) applies, the amount of deduction in respect of the bad debts actually written off under section 36(1)(vii) shall be limited to the amount by which such bad debts exceeds the credit balance in the provision for bad and doubtful debts account made under section 36(1)(viia) without any distinction between rural advances and other advances.

This  amendment will take effect from 1st   April,  2014 and will, accordingly, apply in relation to the  assessment year 2014-15  and subsequent assessment  years.
[Clause   6]