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| CIRCULARS |
| Circular No. 4 Dated 18.05.2010 |
| Clarification regarding widening of existing road – definition of a new infrastructure facility |
| Section 80IA (4)(i) provides for a deduction to an undertaking engaged in developing, or operating and maintaining, or developing, operating and maintaining any infrastructure facility subject to satisfaction of the conditions laid down therein. The Explanation to section 80IA(4)(i) states that for the purpose of this clause, infrastructure facility means inter alia:- “(a) a road including toll road, a bridge or a rail system; (b) a highway project including housing or other activities being an integral part of the highway project;” A clarification has been given by the Board vide this circular to the effect that widening of an existing road by constructing additional lanes as a part of a highway project by an undertaking would be regarded as a new infrastructure facility for the purpose of Section 80IA (4)(i). However, simply relaying of an existing road would not be classifiable as a new infrastructure facility for this purpose. |
| The complete text of the said circular can be downloaded from the link below: |
| http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=CIR&schT=&csId=b5ecf6f8-c111-48ab-ac3b-69f737bd1296&sch=&title=Taxmann - Direct Tax Laws |
| NOTIFICATIONS |
| 1. Notification No. 37 & 38/2010 dated 21-05-2010 |
| Extension of sunset clause for tax holiday under section 80-IA for industrial parks |
| Section 80-IA(4)(iii) provides for deduction in respect of any undertaking which develops, develops and operates or maintains and operates an industrial park notified by the Central Government on or before 31.03.2009. The Finance (No. 2) Act, 2009 has extended the time limit by two years i.e. the deduction would now be available in respect of such industrial parks notified by the Central Government on or before 31.03.2011. The CBDT has, vide notification No. 38 dated 21.05.2010, amended sub-rule (1) of Rule 18C providing for eligibility of industrial parks for benefits under section 80-IA(4)(iii) . Accordingly, sub-rule (1) of Rule 18C now provides that the undertaking should begin to develop, develop and operate or maintain and operate an industrial park any time during the period from 1.04.2006 and 31.03.2011. Correspondingly, the CBDT has, vide notification No. 37 dated 21.05.2010, amended the Industrial Park Scheme 2008 to be called as Industrial Park (Amendment) Scheme, 2010 which shall come into force on the date of its publication in the Official Gazette. |
| The complete text of the said notifications can be downloaded from the link below: |
| http://law.incometaxindia.gov.in/DIT/Notifications.aspx |
| 2. Notification No. 41/2010 dated 31-05-2010 |
| New rules relating to TDS and TCS |
| In exercise of the powers conferred by section 295 of the Income-tax Act, 1961, the Central Board of Direct Taxes, has, through the Income-tax (6th Amendment) Rules, 2010 substituted Rules 30, 31, 31A and 31AA with new Rules 30, 31, 31A and 31AA. Further, Rule 37A has been omitted. Also, Rules 37CA and 37D have been substituted by new Rules 37CA and 37D relating to time and mode of payment of TCS and the certificate for collection of tax at source. Further, Form Nos. 16, 16A, 27D were also substituted and new Form No. 24G has been inserted. Theses amendments shall come into force on 1st April, 2010. The complete text of the said notification can be downloaded from the link below: |
| http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=NOTF&schT=&csId=35524106-1528-4ba1-b153-81ea0f165a41&NtN=&yr=ALL&sec=&sch=&title=Taxmann - Direct Tax Laws |
| PRESS RELEASE Dated 11.06.2010 Increase in exemption limit under section 10(10)(iii) in respect of Gratuity |
| The Central Board of Direct Taxes has approved notification of ten lakh rupees as the maximum amount of gratuity entitled to exemption under section 10(10)(iii) of the Income Tax Act 1961. The notification will be applicable to employees who retire, or become incapacitated before retirement, or expire, or whose services are terminated, on or after the 24th May 2010. The complete text of the said press release can be downloaded from the link below: http://www.incometaxindia.gov.in/archive/PressRelease_GratuityTaxExemption_06142010.pdf |