59

Finance Act, 1995

Amendments at a glance

Section/Schedule Particulars
Finance Act
2/Ist Rate structure 4-13
Schedule
Income-tax Act
10(14) Listing of exempt allowances under section 10(14) in the Income-tax Rules 14
10(15)(v) Enlarging scope of income-tax exemption on interest and deposits for benefit of victims of the Bhopal gas leak Disaster 15
10(23D) Removal of condition of specification for purposes of section 10(23D) in case of Mutual funds registered with SEBI 16
10(23AAA) Income-tax exemption to funds established for welfare of employees of which such employees are members 17
10(23F)/112 Income-tax exemption on income by way of dividends and long-term capital gains of venture capital funds and venture capital companies 18
10(25A) Income-tax exemption to Employees�� State Insurance Fund 19
10(26BB)/80G Tax relief for National Minorities Development and Finance Corporation and such other State level Corporations 20
10A Restricting five-year tax holiday under section 10A to units in FTZs exporting at least 75 per cent of their turnover 21
17(3)(ii) Removal of anomaly 22
32(1)(ii), first Withdrawal of deduction of full cost of minor items of
Proviso machinery or plant 23
33AC Limiting deduction to 50% only in respect of income derived from carrying on of shipping operations 24
35CCA/ Deduction for payments to National Urban Poverty Erad-
80GGA ication Fund 25
36(1))(viii) Deduction in respect of income from long-term finance for development of infrastructure facilities 26
40A(3) Disallowance of 20% of cash expenditure 27
43(3) Exclusion of plantations and livestock from the definition of plant 28
44AB/139/271B Furnishing of tax audit report 29
55(2)(aa) Simplified procedure for computation of capital gain on transfer of bonus shares 30
10(10D)/80DDA Income-tax relief to a guardian for providing for maintenance of handicapped persons on the guardian��s death 31
80G Hundred per cent deduction for donations to Zila Saksharta Samitis for primary and adult education 32
80HHE Making the deduction in respect of profits from export of computer software under section 80HHE open-ended 33
80-IA Five year tax holiday for infrastructure development 34
Continuance of fiscal incentive under section 80-IA for small scale industrial units commencing production after 1-4-1995 35
80L Incentive for savings 36
80U Relief to handicapped persons suffering from permanent physical disability, blindness or mental retardation 37
88 Rebate under section 88 on subscription to life insurance policy-removal of condition regarding premiums exceeding 10 per cent of sum assessed 38
113/132(5)/ Special procedure for assessment of search cases 39
Chapter XIV-B,
Consisting of
Sections158B
to 158BH/253
(1)/(3)
115K Raising the qualifying limits for the purposes of the sim­plified procedure for small businessmen 40
133 Power to call for information when no proceeding is pending 41
133A Authorisation for conducting survey 42
139A Enlargement of the scope of the provisions relating to permanent account numbers 43
145 Methods of accounting and accounting standards for computing income 44
194A(3) Deduction of tax at source from interest on time deposits with banks 46
194C Enlarging scope of provisions regarding deduction of tax at source from payments to contractors and sub-contractors 47
194-I Reduction of rate of deduction of tax at source from rent in certain cases 48
194J/198 to Deduction of tax at source from payments by way of fees
200/202 to 205 for professional services or fees for technical services 49
194K/196A/197/ Deduction of tax at source from income in respect of units
197A/198 to 200 of specified Mutual Funds or of the UTI 50
and 202 to 205
245C and 245D Settlement Commission 51
269UC and 269D Modifications of provisions for pre-emptive pur­chase of immovable properties under Chapter XX-C 52
293A Provision for modification of the status of persons engaged in business of prospecting, etc., of mineral oils 53
Compulsory Deposit Scheme
(Income-tax Payers) Act, 1974
Repealing of the Compulsory Deposit Scheme (Income-tax Payers) Act, 1974 54