THE FINANCE BILL, 2018 - indiabudget.gov.in

1 bill No. 4 OF 2018 THE FINANCE bill , 2018(AS INTRODUCED IN LOK SABHA)THE FINANCE bill , 2018_____ARRANGEMENT OF CLAUSES_____CHAPTER title and IIRATES OF IIIDIRECT of section of section of section of section of section of section of section of section of section of section of new section of section of new section of section 44AE . of section of section of section of section of section of section of new section for of section of section of section of section of new section of section of new section of new section of section of section of section of section of section of section of section of Explanation ocuurring after section of section of section of section of section of section of new sections 145A and 145B for section of section of section of section of section of section of section of section of section IVINDIRECT of references to certain expressions by certain other of section of section of section of section of section of new sections 25A and of section of section of new section of section of section of section of section

2 Of new section of section of new section for section 28M.(ii) of section of section of section of section of section of section of section of new Chapter of section of section of section of section of section of section of Chapter of section of section of new Chapter of new section of section of section of section of section of section of new section of new section of new section for section of section of notification issued under sub-section (1) of section 25 of the Customs Act andsub-section (12) of section 3 of the Customs Tariff Act, of Customs Tariff Act, of First of Second provision for exemption from service tax in certain cases relating to life insurance services providedby Naval Group Insurance Fund to personnel of Coast Guard, provision for exemption from service tax in certain cases relating to services provided or agreed tobe provided by Goods and Services Tax Network, provision for retrospective exemption from service tax on Government s share of profit (iii)

3 CHAPTER VREPEAL AND SAVINGS OF CERTAIN and savings of certain and payment of arrears of VISOCIAL WELFARE Welfare Surcharge on imported VIIROAD AND INFRASTRUCTURE and Infrastructure Cess on imported and Infrastructure Cess on excisable VIIIMISCELLANEOUSPART IAMENDMENTS TO THE GOVERNMENT SAVINGS BANKS ACT, of this of long title to Act 5 of of short of words Authorised Officer for the word Secretary throughout of section of new sections 3, 3A and 3B for section of section of section of section of section of section of new section of section of section of section of new section of of section of section of section of new section and (iv)PART IIAMENDMENTS TO THE RESERVE BANK OF INDIA ACT, of section 17 of Act 2 of IIIAMENDMENTS TO THE PRESIDENT EMOLUMENTS AND PENSION ACT, of this of section of section of section IVAMENDMENTS TO THE SALARIES AND ALLOWANCES OF OFFICERS OF PARLIAMENT ACT, of section 3 of Act 20 of VAMENDMENTS TO THE SALARY, ALLOWANCES AND PENSION OF MEMBERS OF PARLIAMENT ACT, of this of section of section of section of section VIAMENDMENTS TO THE SECURITIES CONTRACTS (REGULATION) ACT, of this of section of section of section of section of section of new section of section of section of section of section of new section of section of section (v)

4 PART VIIAMENDMENTS TO THE CENTRAL BOARDS OF REVENUE ACT, of Act 54 of VIIIAMENDMENT TO THE GOVERNORS (EMOLUMENTS, ALLOWANCES AND PRIVILEGES) ACT, of section 3 of Act 43 of IXAMENDMENTS TO THE NATIONAL HOUSING BANK ACT, of this of section of section of section of section of section of section of section of section of section of section of section of section of section of section of section XAMENDMENTS TO THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, of this of section of section of section of new sections 15EA and of section of section of section of section of section of section of section of new section 28B.(vi)CLAUSESPART XIAMENDMENTS TO THE DEPOSITORIES ACT, of this of section of section of new section of section of section of section of section of new section of Chapter of section of section of XIIAMENDMENTS TO THE VICE-PRESIDENT S PENSION ACT, of section 2 of Act 30 of XIIIAMENDMENTS TO THE CENTRAL ROAD FUND ACT, of this of Act 54 of XIVAMENDMENTS TO THE PREVENTION OF MONEY-LAUNDERING ACT, of this of Act 15 of XVAMENDMENTS TO THE FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT ACT, of this of long of section of section of section of section of section of section 8.

5 (vii)CLAUSESPART XVIAMENDMENTS TO THE FINANCE (NO. 2) ACT, of Act 23 of XVIIAMENDMENTS TO THE FINANCE ACT, of Act 17 of XVIIIAMENDMENTS TO THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, of Act 22 of XIXAMENDMENT TO THE FINANCE ACT, of Act 28 of XXAMENDMENT TO THE CENTRAL GOODS AND SERVICES TAX ACT, of section 2 of Act 12 of FIRST SECOND THIRD FOURTH FIFTH SIXTH SCHEDULE.(viii) INTRODUCED IN LOK SABHAON 1ST FEBRUARY, 2018 bill No. 4 of 2018 THE FINANCE bill , 2018 ABILLto give effect to the financial proposals of the Central Government for the financial year it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows: CHAPTER IPRELIMINARY1. (1) This Act may be called the FINANCE Act, 2018.(2) Save as otherwise provided in this Act, sections 2 to 53 shall come into force on the 1st day ofApril, IIRATES OF INCOME-TAXS hort title (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing onthe 1st day of April, 2018, income-tax shall be charged at the rates specified in Part I of the First Scheduleand such tax shall be increased by a surcharge, for the purposes of the Union, calculated in each casein the manner provided therein.

6 (2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the assessee has,in the previous year, any net agricultural income exceeding five thousand rupees, in addition to totalincome, and the total income exceeds two lakh fifty thousand rupees, then, (a) the net agricultural income shall be taken into account, in the manner provided in clause (b)[that is to say, as if the net agricultural income were comprised in the total income after the first twolakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose ofcharging income-tax in respect of the total income; and(b) the income-tax chargeable shall be calculated as follows: (i) the total income and the net agricultural income shall be aggregated and the amount ofincome-tax shall be determined in respect of the aggregate income at the rates specified in thesaid Paragraph A, as if such aggregate income were the total income;(ii) the net agricultural income shall be increased by a sum of two lakh fifty thousand rupees, andthe amount of income-tax shall be determined in respect of the net agricultural income as soincreased at the rates specified in the said Paragraph A, as if the net agricultural income as soincreased were the total income.

7 (iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced bythe amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived atshall be the income-tax in respect of the total income:Provided that in the case of every individual, being a resident in India, who is of the age of sixtyyears or more but less than eighty years at any time during the previous year, referred to in item (II) ofParagraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if forthe words two lakh fifty thousand rupees , the words three lakh rupees had been substituted:Provided further that in the case of every individual, being a resident in India, who is of the age ofeighty years or more at any time during the previous year, referred to in item (III) of Paragraph A ofPart I of the First Schedule, the provisions of this sub-section shall have effect as if for the words twolakh fifty thousand rupees , the words five lakh rupees had been substituted.

8 (3) In cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 orsection 164A or section 167B of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax51015202530354043 of ) apply, the tax chargeable shall be determined as provided in that Chapter or that section, andwith reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter orsection, as the case may be:Provided that the amount of income-tax computed in accordance with the provisions of section 111 Aor section 112 of the Income-tax Act shall be increased by a surcharge, for the purposes of the Union, asprovided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule.

9 Provided further that in respect of any income chargeable to tax under section 115A, 115AB, 115AC,115 ACA, 115AD, 115B, 115BA, 115BB, 115 BBA, 115 BBC, 115 BBD, 115 BBDA, 115 BBF, 115 BBG,115E, 115JB or 115JC of the Income-tax Act, the amount of income-tax computed under thissub-section shall be increased by a surcharge, for the purposes of the Union, calculated, (a) in the case of every individual or Hindu undivided family or association of persons or body ofindividuals, whether incorporated or not, or every artificial juridical person referred to insub-clause (vii) of clause (31) of section 2 of the Income-tax Act, (i) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at therate of ten per cent. of such income-tax; and(ii) having a total income exceeding one crore rupees, at the rate of fifteen per cent.

10 Of suchincome-tax;(b) in the case of every co-operative society or firm or local authority, at the rate of twelve per such income-tax, where the total income exceeds one crore rupees;(c) in the case of every domestic company, (i) at the rate of seven per cent. of such income-tax, where the total income exceeds one crorerupees but does not exceed ten crore rupees;(ii) at the rate of twelve per cent. of such income-tax, where the total income exceeds ten crorerupees;(d) in the case of every company, other than a domestic company, (i) at the rate of two per cent. of such income-tax, where the total income exceeds one crorerupees but does not exceed ten crore rupees;(ii) at the rate of five per cent. of such income-tax, where the total income exceeds ten crorerupees:Provided also that in the case of persons mentioned in (a) above, having total income chargeableto tax under section 115JC of the Income-tax Act, and such income exceeds, (i) fifty lakh rupees but does not exceed one crore rupees, the total amount payable asincome-tax and surcharge thereon shall not exceed the total amount payable as income-tax on atotal income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees.