MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 1st August, 2019/Shravana 10, 1941 (Saka) The following Act of Parliament received the assent of the President on the
1st August, 2019, and is hereby published for general information:—
THE FINANCE (NO. 2) ACT,2019
NO. 23 OF 2019
[1st August, 2019.]
AnActtogiveeffecttothefinancialproposalsoftheCentralGovernmentforthe financial year2019-2020.
BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:— CHAPTER I
PRELIMINARY
1.(1)ThisActmaybecalledtheFinance(No.2)Act,2019.
(2) Save as otherwise provided in thisAct,—
(a) sections 2 to 69 shall be deemed to have come into force on the 1st day of April,2019;
(b) sections 92 to 112 and section 114 shall come into force on such date as the CentralGovernmentmay,bynotificationintheOfficialGazette,appoint.
Short title and commencement.
Income-tax.
CHAPTER II RATES OF INCOME-TAX
2. (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencingonthe1stdayofApril,2019,income-taxshallbechargedattheratesspecified inPartIoftheFirstScheduleandsuchtaxshallbeincreasedbyasurcharge,forthepurposes of the Union, calculated in each case in the manner provided therein.
(2) InthecasestowhichParagraphAofPartIoftheFirstScheduleapplies,wherethe assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds two lakh fifty thousand rupees,then,—
(a) thenetagriculturalincomeshallbetakenintoaccount,inthemannerprovided inclause(b)[thatistosay,asifthenetagriculturalincomewerecomprisedinthetotal income after the first two lakh fifty thousand rupees of the total income but without beingliabletotax],onlyforthepurposeofchargingincome-taxinrespectofthetotal income; and
(b) theincome-taxchargeableshallbecalculatedasfollows:—
(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the totalincome;
(ii) thenetagriculturalincomeshallbeincreasedbyasumoftwolakhfifty thousandrupees,andtheamountofincome-taxshallbedeterminedinrespectof the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income as so increased were the total income;
(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause(ii)andthesumsoarrivedatshallbetheincome-taxinrespectofthe totalincome:
Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words“twolakhfiftythousandrupees”,thewords“threelakhrupees”hadbeen substituted:
Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part I of the First Schedule, the provisionsofthissub-sectionshallhaveeffectasifforthewords“twolakhfifty thousandrupees”,thewords“fivelakhrupees”hadbeensubstituted.
(3) IncasestowhichtheprovisionsofChapterXIIorChapterXII-Aorsection115JB orsection115JCorChapterXII-FAorChapterXII-FBorsub-section(1A)ofsection161or section164orsection164Aorsection167BoftheIncome-taxAct,1961(hereinafterreferred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case maybe:
Provided that the amount of income-tax computed in accordance with the provisions of section 111A or section 112 or section 112A of the Income-tax Act shall be increased by a surcharge,forthepurposesoftheUnion,asprovidedinParagraphA,B,C,DorE,asthecase
43 of 1961.
may be, of Part I of the First Schedule:
Provided further that in respect of any income chargeable to tax under section 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA,
115BBF, 115BBG, 115E, 115JB or 115JC of the Income-tax Act, the amount of income-tax computed under this sub-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 personsorbodyofindividuals,whetherincorporatedornot,oreveryartificialjuridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—
(i) havingatotalincomeexceedingfiftylakhrupeesbutnotexceedingone crore rupees, at the rate of ten per cent. of such income-tax;and
(ii) havingatotalincomeexceedingonecrorerupees,attherateoffifteen per cent. of suchincome-tax;
(b)inthecaseofeveryco-operativesocietyorfirmorlocalauthority,attherate of twelve per cent. of such income-tax, where the total income exceeds one crore rupees;
(c) in the case of every domesticcompany,—
(i) attherateofsevenpercent.ofsuchincome-tax,wherethetotalincome exceedsonecrorerupeesbutdoesnotexceedtencrorerupees;
(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 domesticcompany,—
(i) at the rate of two per cent. of such income-tax, where the total income exceedsonecrorerupeesbutdoesnotexceedtencrorerupees;
(ii) attherateoffivepercent.ofsuchincome-tax,wherethetotalincome exceeds ten crorerupees:
Provided also that in the case of persons mentioned in (a) above, having total income chargeable to 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 as income-tax and surcharge thereon shall not exceed the totalamountpayableasincome-taxonatotalincomeoffiftylakhrupeesby more than the amount of income that exceeds fifty lakhrupees;
(ii) one crore rupees, the total amount payable as income-tax and surcharge thereon shall not exceed the total amount payable as income- tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crorerupees:
Provided also that in the case of persons mentioned in (b) above, havingtotalincomechargeabletotaxundersection115JCoftheIncome- tax Act, and such income exceeds one crore rupees, the total amount payable as income-tax on such income and surcharge thereon shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:
Providedalsothatinthecaseofeverycompanyhavingtotalincome chargeabletotaxundersection115JBoftheIncome-taxAct,andsuch
income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon,shallnotexceedthetotalamountpayableasincome-taxonatotal incomeofonecrorerupeesbymorethantheamountofincomethatexceeds one crorerupees:
Providedalsothatinthecaseofeverycompanyhavingtotalincome chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payableasincome-taxandsurchargeonatotalincomeoftencrorerupees by more than the amount of income that exceeds ten crorerupees:
Provided also that in respect of any income chargeable to tax under clause (i) of sub-section (1) of section 115BBE of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for the purposes of the Union, calculated at the rateoftwenty-fivepercent.ofsuchincome-tax.
(4) In cases in which tax has to be charged and paid under sub-section (2A) of section 92CE or section 115-O or section 115QA or sub-section (2) of section 115R or section 115TA or section 115TD of the Income-tax Act, the tax shall be charged and paid at the rates as specified in those sections and shall be increased by a surcharge, for the purposesoftheUnion,calculatedattherateoftwelvepercent.ofsuchtax.
(5) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB,194D,194LBA,194LBB,194LBCand195oftheIncome-taxAct,attheratesinforce, thedeductionsshallbemadeattheratesspecifiedinPartIIoftheFirstScheduleandshallbe increased by a surcharge, for the purposes of the Union, calculated in cases wherever prescribed, in the manner providedtherein.
(6) In cases in which tax has to be deducted under sections 192A, 194C, 194DA, 194E, 194EE,194F,194G,194H,194-I,194-IA,194-IB,194-IC,194J,194LA,194LB,194LBA,194LBB, 194LBC,194LC,194LD,194M,194N,196B,196Cand196DoftheIncome-taxAct,thedeductions shall be made at the rates specified in those sections and shall be increased by a surcharge, for the purposes of theUnion,—
(a) in the case of every individual or Hindu undivided family or association of personsorbodyofindividuals,whetherincorporatedornot,oreveryartificialjuridical personreferredtoinsub-clause(vii)ofclause(31)ofsection2oftheIncome-taxAct, being a non-resident,calculated,—
(i) attherateoftenpercent.ofsuchtax,wheretheincomeortheaggregate of such incomes paid or likely to be paid and subject to the deduction exceeds fifty lakh rupees but does not exceed one crorerupees;
(ii) at the rate of fifteen per cent. of such tax, where the income or the aggregateofsuchincomespaidorlikelytobepaidandsubjecttothededuction exceedsonecrorerupeesbutdoesnotexceedtwocrorerupees;
(iii) attherateoftwenty-fivepercent.ofsuchtax,wheretheincomeorthe aggregateofsuchincomespaidorlikelytobepaidandsubjecttothededuction exceeds two crore rupees but does not exceed five crorerupees;
(iv)attherateofthirty-sevenpercent.ofsuchtax,wheretheincomeorthe aggregateofsuchincomespaidorlikelytobepaidandsubjecttothededuction exceeds five crorerupees;
(b) in the case of every co-operative society or firm, being a non-resident, calculatedattherateoftwelvepercent.ofsuchtax,wheretheincomeortheaggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crorerupees;
(c) inthecaseofeverycompany,otherthanadomestic company, calculated,—
(i) attherateoftwopercent.ofsuchtax,wheretheincomeortheaggregate of such incomes paid or likely to be paid and subject to the deduction exceeds onecrorerupeesbutdoesnotexceedtencrorerupees;
(ii) attherateoffivepercent.ofsuchtax,wheretheincomeortheaggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crorerupees.
(7) In cases in which tax has to be collected under the proviso to section 194B of the Income-tax Act, the collection shall be made at the rates specified in Part II of the First Schedule, and shall be increased by a surcharge, for the purposes of the Union, calculated, in cases wherever prescribed, in the manner providedtherein.
(8) Incasesinwhichtaxhastobecollectedundersection206CoftheIncome-taxAct, the collection shall be made at the rates specified in that section and shall be increased by a surcharge, for the purposes of theUnion,—
(a) in the case of every individual or Hindu undivided family or association of personsorbodyofindividuals,whetherincorporatedornot,oreveryartificialjuridical personreferredtoinsub-clause(vii)ofclause(31)ofsection2oftheIncome-taxAct, being a non-resident,calculated,—
(i) attherateoftenpercent.ofsuchtax,wheretheamountortheaggregate ofsuchamountscollectedandsubjecttothecollectionexceedsfiftylakhrupees but does not exceed one crorerupees;
(ii) at the rate of fifteen per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed two crorerupees;
(iii) attherateoftwenty-fivepercent.ofsuchtax,wheretheincomeorthe aggregateofsuchincomespaidorlikelytobepaidandsubjecttothecollection exceeds two crore rupees but does not exceed five crorerupees;
(iv)attherateofthirty-sevenpercent.ofsuchtax,wheretheincomeorthe aggregateofsuchincomespaidorlikelytobepaidandsubjecttothededuction exceeds five crorerupees;
(b) in the case of every co-operative society or firm, being a non-resident, calculatedattherateoftwelvepercent.ofsuchtax,wheretheamountortheaggregate ofsuchamountscollectedandsubjecttothecollectionexceedsonecrorerupees;
(c) inthecaseofeverycompany,otherthanadomestic company, calculated,—
(i) attherateoftwopercent.ofsuchtax,wheretheamountortheaggregate ofsuchamountscollectedandsubjecttothecollectionexceedsonecrorerupees but does not exceed ten crorerupees;
(ii) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crorerupees.
(9) Subject to the provisions of sub-section (10), in cases in which income-tax has to be charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 174Aorsection175orsub-section(2)ofsection176oftheIncome-taxActordeductedfrom, orpaidon,incomechargeableunderthehead“Salaries”undersection192ofthesaidActor inwhichthe“advancetax”payableunderChapterXVII-CofthesaidActhastobecomputed at the rate or rates in force, such income-tax or, as the case may be, “advance tax” shall be charged, deducted or computed at the rate or rates specified in Part III of the First Schedule andsuchtaxshallbeincreasedbyasurcharge,forthepurposesoftheUnion,calculatedin
such cases and in such manner as provided therein:
Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or section115JBorsection 115JC orChapterXII-FAorChapterXII-FBorsub-section(1A)of section 161 or section 164 or section 164A or section 167B of the Income-tax Act apply, “advance tax” shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case maybe:
Provided further that the amount of “advance tax” computed in accordance with the provisions of section 111A or section 112 or section 112A of the Income-tax Act shall be increasedbyasurcharge,forthepurposesoftheUnion,asprovidedinParagraphA,B,C,D orE,asthecasemaybe,ofPartIIIoftheFirstSchedule:
Provided also that in respect of any income chargeable to tax under section 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA,
115BBF,115BBG, 115E,115JBor115JCoftheIncome-taxAct,“advancetax”computedunder the first proviso 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 personsorbodyofindividuals,whetherincorporatedornot,oreveryartificialjuridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—
(i) attherateoftenpercent.ofsuch“advancetax”,wherethetotalincome exceeds fifty lakh rupees but does not exceed one crorerupees;
(ii) at the rate of fifteen per cent. of such “advance tax”, where the total incomeexceedsonecrorerupeesbutdoesnotexceedtwocrorerupees;
(iii) at the rate of twenty-five per cent. of such “advance tax”, where the totalincomeexceedstwocrorerupeesbutdoesnotexceedfivecrorerupees;
(iv) at the rate of thirty-seven per cent. of such “advance tax”, where the total income exceeds five crorerupees;
(b)inthecaseofeveryco-operativesocietyorfirmorlocalauthorityattherate of twelve per cent. of such “advance tax”, where the total income exceeds one crore rupees;
(c) in the case of every domesticcompany,—
(i) at the rate of seven per cent. of such “advance tax”, where the total incomeexceedsonecrorerupeesbutdoesnotexceedtencrorerupees;
(ii) at the rate of twelve per cent. of such “advance tax”, where the total income exceeds ten crorerupees;
(d) in the case of every company, other than a domesticcompany,—
(i) at the rate of two per cent. of such “advance tax”, where the total incomeexceedsonecrorerupeesbutdoesnotexceedtencrorerupees;
(ii) at the rate of five per cent. of such “advance tax”, where the total income exceeds ten crorerupees:
Provided also that in the case of persons mentioned in (a) above, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds,—
(a) fifty lakh rupees but does not exceed one crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon shall not exceed the total amount payable as “advance tax” on a total incomeoffiftylakhrupeesbymorethantheamountofincomethatexceeds fifty lakhrupees;
(b)one crore rupees but does not exceed two crore rupees, the total amount payable as “advance tax” on such income and surcharge thereon shall not exceed the total amount payable as “advance tax” on a total incomeofonecrorerupeesbymorethantheamountofincomethatexceeds one crorerupees;