Page 53 - Union Budget_2019
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Union Budget 2019
10.16 Rationalisation of the provisions of Section 276CC
The existing provisions of Section 276CC, which talks about prosecution proceedings on account of non-
filing of return of income, provides that prosecution proceedings shall not be proceeded if tax payable by
any person on total income on regular assessment, apart from company, does not exceeds Rs. 3,000.
It is proposed to amend the section to include self-assessment tax along with advance tax paid before the
expiry of assessment year and TDS & tax collected at source ("TCS") for the purpose of determining tax
liability.
Further the threshold of Rs. 3,000 mentioned above is proposed to be increased to Rs.10,000.
These amendments will take effect from 1st April, 2020 and will, accordingly, apply in relation to
assessment year 2020-21 and subsequent assessment years.
The proposed amendment has clarified the legislative intent which has always been similar from
inception. Further the threshold limit for deduction has been enhanced considering materiality.
10.17 Rationalisation of provision relating recovery of tax in pursuance of agreements with foreign
countries
The existing provisions of Section 228A (1) provides that
• Where Agreement for recovery of income-tax has been entered between the two countries, one
being India and another country
• Government of that country or any specified authority sends to CBDT a certificate for the recovery
of tax due from a person having any property in India
• CBDT shall forward the certificate to Tax Recovery Officer ("TRO") having jurisdiction over such
person for recovery of dues
To assist in recovery of tax as per treaty obligation, the scope of above-mentioned section has been widened
to include person resident in India irrespective of the fact whether the person has property in India or not.
Similarly, as per Section 228A (2), when the assessee, who is an assessee in default, has property in other
country, TRO shall forward the tax recovery certificate to CBDT and CBDT shall take appropriate steps for
recovery as per relevant agreement between two countries.
It is hereby proposed to amend the said sub-section so to include person resident outside India irrespective
of the fact that whether the person has property in India or not.
These amendments will take effect from 1st September, 2019.
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