Clause by Clause Synopsis of Finance Bill 2020

clause-by-clause-synopsis-of-finance-bill-2020

Union Budget 2020 followed by the Finance Bill, 2020 has come up with various amendments relating to direct taxes.


The Finance Bill, 2020 contains 104 clauses to amend the Income Tax Act, 1961. Certain amendments are substantive provisions while some are procedural in nature. Some of the clauses of amendments are consequential in nature which means amendments in other provisions are made due to changes in one provision. The prominent example is the abolishment of Dividend Distribution Tax or DDT. When section 115-O is abolished it has a series of consequences in other sections which referred to 'dividend income referred to in section 115-O'.

The strange clauses of amendments of Finance Bill, 2020 are Clause 14 and Clause 29(A) which has amended section 32AB and section 56(2)(v)/(vi)/(vii) respectively. Section 32AB and section 56(2)(v)/(vi)/(vii) are dead sections when the Finance Bill, 2020 is presented. It is beyond the reasonable thinking that a legislation proposes to amend those provisions which are not in existence.

Chapter-III of the Finance Bill, 2020 contains the clauses which propose to amend the Income Tax Act, 1961. It begins with clause no. 3 and ends with clause no. 104. A Clause by Clause synopsis of all the clauses of the Finance Bill, 2020 is given in the table mentioned below.

Besides, many provisions have been made applicable from AY 2020-21 itself. One of the prominent amendment related to AY 2020-21 is related to section 115BAA and section 115BAB.  These sections were introduced in September 2019 by an Ordinance to provide an option to a domestic company to opt for lower or concessional corporate tax rates if they forego the prescribed conditions. One of the restricted deduction was related to Part-C of Chapter VI-A. However, the Finance Bill,2020 has modified the said restricted deduction. As per the proposed amendment, a domestic company is not entitled to claim any deduction under Chapter VI-A which was earlier restricted to Part-C only. This has been made effective from AY 2020-21. However, the deduction under section 80JJA is allowed. The Finance Bill, 2020 has added one more deduction under Chapter VI-A and it is section 80M. The amendment allows the deduction under section 80M from AY 2020-21 whereas section 80M is proposed to be re-introduced from AY 2021-22. [Refer clause 40, clause 51 and clause 52.]


Update:
Parliament has passed the Finance Bill, 2020 with amendments in certain clauses and introduced certain clauses. Read the Finance Bill, 2020 as passed by the Lok Sabha here.

Comprehensive list of Clause wise Amendments in the Income Tax Act, 1961 by Finance Bill, 2020


Clause
Nature
Topic
Effective from
3(i)
Amendment of section 2(13A) 
Definition of Business Trust amended for unlisted business trusts 
AY 2021-22
3(ii)
Amendment of section 2(42A) 
Period of holding for units of a segregated portfolios shall be counted from the date of holding of original units 
AY 2021-22
4(a)
Amendment of section 6(1) 
Period of stay in India for a non-resident Indian citizen or PIO coming to India on a visit is reduced to 120 days from 182 days 
AY 2021-22
4(b)
Amendment of section 6 (1A) - New clause inserted 
An Indian citizen shall be deemed to be resident in India if he is not liable to tax in any other country 
AY 2021-22
4(c)
Amendment of section 6(6) 
Condition for NOR changed and prescribed an Individual or a HUF shall be a NOR if he is a non-resident for 7 out of last 10 years. Other conditions deleted. 
AY 2021-22
5(a)(i)
Amendment of section 9(1)(i)- 
Explanation 1(a) 
Provision related to income accruing or arising under mentioned circumstances are deemed to accrue or arise in India having significant economic presence is deferred from section 9(1)(I) till 31.03.2021. 
AY 2022-23
5(a)(ii)
Amendment of section 9(1)(i)- 
Explanation 2A 
A new explanation is substituted to define ‘significant economic presence’ of a non-resident in India 
AY 2022-23
5(a)(iii)
Amendment of section 9(1)(i)- 
Explanation 3A, new Explanation inserted 
Income attributable to the operations carried out in India is defined to include advertisement income targeting Indian audience, sale of data collected from a resident, and sale of goods or services using data collected from a resident 
AY 2021-22
5(a)(iv)
Amendment of section 9(1)(i)-New proviso to Explanation 3A inserted 
A proviso is inserted in Explanation 3A to provide that the provisions contained in Explanation 3A shall also apply to transactions or activities referred to in Explanation 2A 
AY 2022-23
5(a)(v)(i)
Amendment of section 9(1)(i)-Second proviso to Explanation 5 
Second proviso to Expln. 5 refers to Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2014. These regulations were repealed in Nov 2019 and hence ‘prior to their repeal’ is inserted. 
AY 2020-21
5(a)(v)(ii)
Amendment of section 9(1)(i)- New Third proviso to Explanation 5 
A third  proviso in inserted to exclude income from shares of a Company which derives its value from business in India and is held by a non-resident in Category-I FPI under Securities and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 
AY 2020-21
5(b)
Amendment of section 9(1)(vi)- 
Explanation 2 
‘Royalty’ to include consideration for the sale, distribution or exhibition of cinematographic films 
AY 2021-22
6(a)
Amendment of section 9A(3)(c)-New proviso inserted 
A new proviso is added to exclude any contribution made by the eligible fund manager in the given circumstances. 
AY 2020-21
6(b)
Amendment of section 9A(3)(j)- First proviso amended 
The period of ‘six months’ extended to twelve months in case of an offshore fund. The second condition for computing the period from the end of the previous year is omitted. 
AY 2020-21
7(I)(A)
Amendment of section 10(23C)
Provisions for a fund, trust or institution, university or other educational institution, hospital or other medical institution rationalized
01.06.2020
7(I)(B)
Amendment of section 10(23C)
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
01.06.2020
7(I)(C)
Amendment of section 10(23C)
Provisions for a fund, trust or institution, university or other educational institution, hospital or other medical institution rationalized
01.06.2020
7(II)(a)
Amendment of section 10(23D)
Consequential amendment subsequent to abolishment of DDT
AY 2021-22
7(II)(b)
Amendment of section 10(2FC)
Consequential amendment subsequent to abolishment of DDT
AY 2021-22
7(II)(c)
Amendment of section 10(23FD)
Consequential amendment subsequent to abolishment of DDT
AY 2021-22
7(II)(d)
Amendment of section 10(23FE)-New clause inserted
Exemption provided to a wholly owned subsidiary of ADIA and Sovereign Wealth Fund
AY 2021-22
7(II)(e)
Amendment of section 10(34)
Consequential amendment subsequent to abolishment of DDT-Exemption withdrawn
AY 2021-22
7(II)(f)
Amendment of section 10(35)
Consequential amendment subsequent to abolishment of DDT-Exemption withdrawn
AY 2021-22
7(II)(g)
Amendment of section 10(45)
Exemption of  allowances or perquisites to UPSC Chairman withdrawn
AY 2021-22
7(III)
Amendment of section 10(48C)-New clause inserted
Exemption provided to Indian Strategic Petroleum Reserves Limited
AY 2020-21
8(i) & (ii)
Amendment of section 10A 
Report in Form 56F cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
9(a)
Amendment of section 11(7) 
Registration of a Trust u/s 12AB is included 
01.06.2020
9(b)
Amendment of section 11(7) 
A trust under section 10(23C)(1) is covered, now section 10(46) is also included. 
01.06.2020
9(c)
Amendment of section 11(7)-New provisos inserted 
First proviso: Registration of a Trust to become inoperative if approved under section 10(23C) or notified under section 10(46). 

Second Proviso: Such a Trust can apply for registration u/s 12AB subject to specified conditions 
01.06.2020
10(I)(A)
Amendment of section 12A 
Provisions related to revalidation and renewal of registration introduced and shifting to section 12AB
01.06.2020
10(I)(B)
Amendment of section 12A 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB
01.06.2020
10(II)
Amendment of section 12A 
Provisions for a trust or institution rationalized
01.06.2020
11
Amendment of section 12AA 
New sub-section (5) inserted to provide that Section 12AA shall be inapplicable from 01.06.2020 
01.06.2020
12
Insertion of new section 12AB 
Contains the procedure of new or fresh Registration of a Charitable Trust or a Religious Trust 
01.06.2020
13
Amendment of section 17(2)(vii) 
Employer’s contribution to RPF, NPS and a approved superannuation   fund in excess of Rs. 7.50 lakh in a year and interest thereon shall be taxable as Income from salary
AY 2021-22
14
Amendment of section 32AB(5) 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 

Note: Section 32AB is omitted from the statute in 1991. 
AY 2020-21
15
Amendment of section 33AB(2) 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
16
Amendment of section 33ABA(2) 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
17(i)(a)
(A) & (B)
Amendment of section 35(1) 
The Explanation after clause (iii) shall now to include a company referred to in clause(iia) in additions to institutions covered under clause (ii) and clause (iii) 
01.06.2020
17(i)(b)
Amendment of section 35(1) 
Two new provisos have been inserted-namely fifth proviso and sixth proviso. 

Fifth proviso: An existing institution notified under section 35(1)(ii)/(iia)/(iii) shall be required to intimate about the notification in the prescribed form and manner within 31.08.2020 else their notification will be withdrawn. It is further provided that once intimated the notification shall remain valid for 5 years from AY 2021-22. 

Sixth proviso: Henceforth, any notification issued under clause (ii)/(iia)/(iii) shall remain valid for 5 years. 
01.06.2020
17(ii)
Amendment of section 35(1A)-New sub-section inserted 
Provides for filing of statement of contributions received and furnishing certificate to the donor 
01.06.2020
18(i)
Amendment of section 35AD(1) 
An option has been given to an assessee to claim the capital expenditure as business expenditure under this section in full or to capitalize the expenditure to claim depreciation 
AY 2020-21
18(ii)
Amendment of section 35AD(4) 
Consequent amendment for sub-section(1) to restrict the deduction if   the assessee opted and claimed deduction under this section 
AY 2020-21
19
Amendment of section 35D 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
20
Amendment of section 35E 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
21(a)
Amendment of section 43 
The section has substituted the term ‘recognised association’ with ‘recognised stock exchange’. 
AY 2020-21
21(b)
Amendment of section 43 – clause (iii) to Explanation 3 
The term ‘recognised association’ is substituted with ‘recognised stock exchange’ and defined therein 
AY 2020-21
22
Amendment of section 43CA 
Variation of actual sales consideration with stamp duty value upto 10 percent is allowed 
AY 2021-22
23(A)
Amendment of section 44AB 
New provision inserted to increase the Tax Audit turnover limit to Rs. 5 crore if the specified conditions are satisfied 
AY 2020-21
23(B)
Amendment of section 44AB- clause (ii) to Explanation 
The ‘specified date’ is redefined to mean one month prior to the due date of furnishing the return of income u/s 139(1) 
AY 2020-21
24
Amendment of section 44DA(2) 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
25
Amendment of section 49 
Cost of Acquisition for main portfolio and segregated portfolio provided. Sub-sections (2AG) and (2AH) inserted 
AY 2020-21
26
Amendment of section 50B(3) 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
27
Amendment of section 50C 
Variation of actual sales consideration with stamp duty value upto 10 percent is allowed 
AY 2021-22
28
Amendment of section 55(2)(b)-New proviso inserted 
The fair market value of the property as on 01.04.2001 is limited to the stamp duty valuation as on 01.04.2001, if available 
AY 2021-22
29(A)
(i)/(ii)/(iii)
Amendment of section 56(2) 
Amendments in clause (v)/(vi)/(vii) [clause(g) to proviso to these clauses] - To provide for any sum of money received from any trust or institution registered under section 12AA shall not be considered as income. Now section 12AB inserted. 

Note: None of the clauses (v)/(vi)/(vii) is applicable for AY 2020-21. 
01.06.2020
29(B)(i)
Amendment of section 56(2)(x) 
Clause(b)(B)(ii): Variation of actual sales consideration with stamp duty value upto 10 percent is allowed 
AY 2021-22
29(B)(ii)
Amendment of section 56(2)(x) 
Clause (VII) of the first proviso to clause(x) - Provides for any sum of money received from any trust or institution registered under section 12AA shall not be considered as income. Now section 12AB inserted. 
01.06.2020
30(a)
Amendment of section 57 
Consequential abolishment of DDT, clause (I) to exclude the dividends referred to in section 115-O.
AY 2021-22
30(b)
Amendment of section 57 
A new proviso is inserted in Clause(i) to disallow any deduction for dividend income and income from mutual fund units except interest expenses which shall be limited to 20% pf gross dividend income or income from mutual fund units 
AY 2021-22
31
Amendment of section 7AA-Substituted with new provision 
New provisions relating to carry forward and set-off of accumulated loss and unabsorbed depreciation allowance in scheme of amalgamation in certain cases substituted 
AY 2020-21
32
Amendment of section 80EEA(3)(I) 
The sunset clause for Deduction in respect of interest on loan taken for affordable house property is extended by one year to 31.03.2021 
AY 2021-22
33(i)(a)
Amendment of section 80G(5) 
Power to approve institution or fund u/s 80G(5)(vi) widened to cover Principal Commissioner also. 
01.06.2020
33(i)(b)
Amendment of section 80G(5) (viii) and (ix)-New sub-clauses inserted 
Provides for filing of statement of contributions received and furnishing certificate to the donor 

It is further provided for renewal of existing approval of an institution or   fund u/s 80G(5)(vi) within 31.08.2020. The procedure for fresh and renewal, as well as provisional approval, is prescribed. 
01.06.2020
33(ii)
Amendment of section 80G(5D)-New Explanation 2A inserted 
Deduction for donation to an institution or fund approved u/s 80G(5) will be available to a donor only on the basis of online information. 
01.06.2020
33(iii)
Amendment of section 80G(5E)-New sub-section inserted 
Any pending application for registration shall be deemed to be an application made under the new rules. 
01.06.2020
34(i)
Amendment of section 80GGA(2A) 
Cash limit of donation limited to Rs. 2,000 
01.06.2020
34(ii)
Amendment of section 80GGA-Explanation to sub-section (4) inserted 
Deduction for donation u/s 80GGA will be available to a donor only on the basis of online information. 
01.06.2020
35
Amendment of section 80-IA(7) 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
36(i)
Amendment of section 80-IAC(2) 
Period of claiming deduction extended from out of 7 assessment years to 10 assessment years 
AY 2021-22
36(ii)
Amendment of section 80-IAC 
Amendment in the Explanation, in clause (ii), in sub-clause (b): Scope of eligible start-up widened to raise the turnover limit of the business from Rs. 25 crore to Rs. 100 crore 
AY 2021-22
37
(a)/(b)/
(c)/(d)
Amendment of section 80-IB 
Amendment in sub-section (7A),sub-section (7B),sub-section (11B),and sub-section (11C): 

Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
38
Amendment of section 80-IBA 
The sunset clause for approval of the project is extended to 31.03.2021 
AY 2021-22
39
Amendment of section 80JJAA 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
40
Insertion of new section 80M 
Deduction in respect of certain inter-corporate dividends 
AY 2021-22
41
Amendment of section 90(1)(b) 
Entering into agreement with a foreign country for avoidance of double taxation through treaty shopping, etc 
AY 2021-22
42
Amendment of section 90A(1)(b) 
Entering into agreement with a foreign country for avoidance of double taxation through treaty shopping, etc 
AY 2021-22
43
Amendment of section 92CB(1) 
Safe harbour rules have been made applicable to income referred to in section 9(1)(i)  
AY 2020-21
44(a)
Amendment of section 92CC(1)/(2)/(3) 
Advance Pricing Agreement (APA) have been made applicable to income referred to in section 9(1)(i) 
AY 2020-21
44(b)
Amendment of section 92CC(9A) 
The conditions, procedure and manner for Advance Pricing Agreement (APA) have been made applicable to income referred to in section 9(1)(i)
AY 2020-21
45
Amendment of section 92F(iv) 
‘Specified date’ for furnishing Tax Audit Report redefined to mean the date one month prior to the due date for furnishing the return of income under section 139(1)  
AY 2020-21
46
Amendment of section 94B(1A)-New sub-section inserted 
The restriction on deductibility of interest paid to a non-resident lender shall apply to a non-resident banking company having a permanent establishment in India. 
AY 2021-22
47(I)
Amendment of section 115A(1) 
Consequent to abolishment of DDT, the dividend income shall not include Dividend referred to in section 115-O 
AY 2021-22
47(II)
Amendment of section 115A(5) 
Section 115A(5) precludes a non-resident person from filing of return of income if it has only income as specified in section 115A(1)(a) and tax is deducted as per Chapter XVII-B. The scope is now expanded to cover income as specified in section 115A(1)(b) as well and that tax has been deducted as per section   115A(1)(a) and section 115A(1)(b). 
AY 2020-21
48
Amendment of section 115AC 
Consequent to abolishment of DDT, the dividend income shall not include Dividend referred to in section 115-O 
AY 2021-22
49
Amendment of section 115ACA 
Consequent to abolishment of DDT, the dividend income shall not include Dividend referred to in section 115-O 
AY 2021-22
50
Amendment of section 115AD 
Consequent to abolishment of DDT, the dividend income shall not include Dividend referred to in section 115-O 
AY 2021-22
51
Amendment of section 115BAA(2) 
To avail the lower corporate tax rate, the restriction on deduction under chapter VI-A modified to restrict all the deductions under chapter VI-A except section 80JJAA and section 80M 
AY 2020-21
52
Amendment of section 115BAB(2) 
To avail the lower corporate tax rate, the restriction on deduction under chapter VI-A modified to restrict all the deductions under chapter VI-A except section 80JJAA and section 80M 

Further, electricity generation companies are also eligible to avail the benefits of section 115BAB 
AY 2020-21
53
Insertion of new sections 115BAC and 115BAD. 
Section 115BAC: New optional tax scheme for Individuals and HUF 

Section 115BAD: New optional tax scheme for resident co-operative societies 
AY 2021-22
54(a)
Amendment of section 115BBDA 
Consequent to abolishment of DDT, the dividend income shall not be liable to tax under this section from 01.04.2020.  
AY 2021-22
54(b)
Amendment of section 115BBDA 
This section does not apply inter alia to a trust or institution registered under section 12A or section 12AA. Now a trust or institution registered under section 12AB is also covered. [in the Explanation, in clause (b), in sub-clause (iii)] 
01.06.2020
55
Amendment of section 115C 
Consequent to abolishment of DDT, the investment income shall include Dividend income. 
AY 2021-22
56
Amendment of section 115JB 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
57(i)
Amendment of section 115JC(3) 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
57(ii)
Amendment of section 115JC(5)-New sub-section inserted 
Section 115JC shall not apply to a person who has exercised the option under section 115BAC and section 115BAD 
AY 2021-22
58
Amendment of section 115JD(7)-New sub-section inserted 
Section 115JD – credit of AMT paid - shall not apply to a person who has exercised the option under section 115BAC and section 115BAD 
AY 2021-22
59
Amendment of section 115-O 
The provisions of DDT on dividend income by a domestic company shall be applicable till 31.03.2020. 
AY 2021-22
60
Amendment of section 115R 
The provisions of DDT on income distributed by a Mutual Fund shall be applicable till 31.03.2020. 
AY 2021-22
61
Amendment of section 115TD 
Now a trust or institution registered under section 12AB is also covered. 
01.06.2020
62
Amendment of section 115UA 
Consequent to abolishment of DDT, the dividend income shall be taxable in the hands of a business trust 
AY 2021-22
63
Amendment of section 115VW 
Audit Report cannot be filed along with return of income and shall be filed before the specified date referred to in section 44AB 
AY 2020-21
64
Insertion of new section 119A 
Taxpayer’s  Charter shall be enshrined into the law 
01.04.2020
65
Amendment of section 133A 
Approval of the Joint Director or the Joint Commissioner and the Director or the Commissioner in appropriate cases is required to conduct Survey u/s 133A 
01.04.2020
66
Amendment of section 139 
All the partners, whether working or not, of a firm are at par now. 
The due date of 30th September is extended to 31st October 
AY 2020-21
67
Amendment of section 140 
In case of a company and an LLP, certain other prescribed persons are also eligible to verify the return of income. 
01.04.2020
68
Amendment of section 140A 
Credit for tax paid u/s 191(2) shall be given before making self-assessment tax 
AY 2020-21
69
Amendment of section 143(3A)/(3B) 
The scope of e-assessment scheme extended to assessment u/s 144. 

Power to issue directions on e-assessment extended till 31.03.2022. 
AY 2020-21
70
Amendment of section 144C 
Draft order is necessary for any variation and not limited to income or loss returned which are prejudicial to the interest of the assessee. [sub-section(1)] 

Now any non-resident can file objection before the DRP. 
AY 2020-21
71
Amendment of section 156 
Deferred tax payment on ESOP and sweat equity shares for an eligible start-up referred to in section 80-IAC prescribed 
AY 2021-22
72
Amendment of section 191 
Deferred tax payment on ESOP and sweat equity shares for an eligible start-up referred to in section 80-IAC prescribed 
AY 2021-22
73
Amendment of section 192 
Deferred TDS on ESOP and sweat equity shares for an eligible start-up referred to in section 80-IAC prescribed 
01.04.2020
74
Amendment of section 194 
Consequent to abolishment of DDT, TDS on dividend prescribed 
01.04.2020
75(I)
Amendment of section 194A 
Turnover limit for Individuals and HUFs delinked with section 44AB and set in the section itself 
01.04.2020
75(II)
Amendment of section 194A 
Certain large co-operative societies are now required to deduct tax 
01.04.2020
76
Amendment of section 194C 
Turnover limit for Individuals and HUFs delinked with section 44AB and set in the section itself 
Definition of ‘work’ modified 
01.04.2020
77
Amendment of section 194H 
Turnover limit for Individuals and HUFs delinked with section 44AB and set in the section itself 
01.04.2020
78
Amendment of section 194-I 
Turnover limit for Individuals and HUFs delinked with section 44AB and set in the section itself 
01.04.2020
79(a)
Amendment of section 194J 
TDS rate of 2% prescribed for FTS 
01.04.2020
79(b)
Amendment of section 194J 
Turnover limit for Individuals and HUFs delinked with section 44AB and set in the section itself 
01.04.2020
80
Insertion of new section 194K 
TDS on income from mutual funds prescribed 
01.04.2020
81
Amendment of section 194LBA 
Consequent to abolishment of DDT, TDS on dividend income is prescribed at 10% 
01.04.2020
82
Amendment of section 194LC 
The time limit to raise money from abroad extended to July 2023. 

A new lower rate of TDS of 4% is prescribed for interest paid to a non-resident on money borrowed outside India or RDB and is listed on any IFSC based recognized stock exchange under newly inserted clause(ib)  
01.04.2020
83
Amendment of section 194LD 
Interest on Municipal Debt Securities brought within the purview of this section. 
The time limit ending on July 2020 extended till July 2023. 
01.04.2020
84
Insertion of new 
section 194-O 
TDS on e-commerce participant  by e-commerce operator prescribed
01.04.2020
85
Amendment of section 195 
Consequent to abolishment of DDT, TDS on dividend is made applicable 
01.04.2020
86
Amendment of section 196A 
Meaning of UTI expanded. 
Payment mode expanded to cover any mode. 
TDS under this section made operational. 
01.04.2020
87
Amendment of section 196C 
Payment mode expanded to cover any mode. 
TDS under this section made operational. 
01.04.2020
88
Amendment of section 196D 
Payment mode expanded to cover any mode. 
TDS under this section made operational. 
01.04.2020
89
Amendment of section 197 
Scope of lower or Nil TDS certificate extended for section 194-O 
01.04.2020
90
Amendment of section 203AA 
Form 26AS withdrawn 
01.06.2020
91
Amendment of section 204 
‘person responsible for paying’ income defined for a person not resident in India 
AY 2020-21
92
Amendment of section 206AA 
Higher rate of TDS for non-PAN or non-Aadhaar case modified for section 194-O 
AY 2020-21
93
Amendment of section 206C 
New TCS provisions introduced on  
>foreign remittance under LRS 
> overseas tour program package 
>Sale of goods 
Under the prescribed conditions 
01.04.2020
94
Insertion of new section 234G 
Late Fees prescribed for late filing of statement prescribed under section 35 and 80G and issue of certificates there under
01.04.2020
95
Amendment of section 250 
Provisions for Faceless e-Appeal introduced 
01.04.2020
96
Amendment of section 253 
A trust or institution registered under section 12AB is now covered. 
01.06.2020
97
Amendment of section 254 
Pre-deposit of 20% of demand mandatory before filing of appeal to ITAT and that ITAT cannot grant stay beyond 365 days 
01.04.2020
98
Insertion of new section 271AAD 
Penalty for Fake Invoice, False entries and Omitted entries in books of accounts 
01.04.2020
99
Insertion of new section 271J 
Penalty prescribed for late filing of statement prescribed under section 35 and 80G and issue of certificates there under 
01.06.2020
100
Amendment of section 274(2A)/(2B)/(C)-New sub-section inserted 
Provisions for Faceless e-Penalty introduced 
01.04.2020
101
Insertion of new section 285BB 
Provisions for Annual information statement introduced (Scope of erstwhile Form 26AS widened) 
01.06.2020
102
Amendment of section 288 
Any prescribed person may appear as authorised representative 
AY 2020-21
103(a)
Amendment of section 295(2)(iia)-New sub-clause inserted 
The Board has been given the power to make rules for computing the income of a non-resident from operations carried out in India 
AY 2021-22
103(b)
Amendment of section 295 (2)(iib)-New sub-clause inserted 
The Board has been given the power to make rules for computing the income of a non-resident from transactions or activities 
AY 2022-23
104
Amendment of First Schedule 
Deduction under section 43B shall be allowed on payment basis if disallowed in earlier years while computing the profits and gains of any business of insurance other than life insurance business 
AY 2020-21

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