REDUNDANT SECTIONS OF INCOME TAX ACT, 1961 WHICH CAN BE OMITTED

The present Union Government under the leadership of PM Narendra Modi has time and again re-iterated the need to repeal old and obsolete provisions of laws and rules from the statute books.

I have prepared a list of section of the Income Tax Act, 1961 and rules and form (separate post) which have served their purpose and are now redundant and can be omitted from statutes with an appropriate savings clause. For the Direct Taxes in India, the last such exercise was carried out under ‘The Direct Tax Laws (Amendment) Act, 1987’.

Section Marginal Note Rationale
2(23B) Definitions Definition of Fringe Benefits.
Fringe Benefit Tax is not applicable from AY 2010-11 & onwards.
10(4)(i) Incomes not included in total income No security can be / has been notified after 1 June 2002.
10(4B) Incomes not included in total income No security can be / has been notified after 1 June 2002.
10(15)(iib) Incomes not included in total income No security can be / has been notified after 1 June 2002.
10(15)(iid) Incomes not included in total income No security can be / has been notified after 1 June 2002.
10(23BBF) Incomes not included in total income Exemption not available from AY 2010-11 & onwards.
10(23EB) Incomes not included in total income Exemption not available from AY 2007-08 & onwards.
10(23F) Incomes not included in total income Exemption not available from AY 2000-01 & onwards.
10(23FA) Incomes not included in total income Exemption not available from AY 2001-02 & onwards.
10(26A) Incomes not included in total income Exemption not available from AY 1989-90 & onwards.
10(33) Incomes not included in total income Transitional provision in respect of US-1964 Scheme of UTI. Not relevant after AY 2004-05.
10(36) Incomes not included in total income All transactions enumerated in Section 10(36) are covered under section 10(38).
10(41) Incomes not included in total income Exemption not available from AY 2007-08 & onwards.
10(49) Incomes not included in total income Exemption not available from AY 2014-15 & onwards.
10A Special provision in respect of newly established undertakings in free trade zone, etc. No deduction is available from AY 2012-13 & onwards.
See Fourth Proviso to sub-section (1) of section 10A.
10B Special provision in respect of newly established hundred per cent export-oriented undertakings. No deduction is available from AY 2012-13 & onwards.
See Third Proviso to sub-section (1) of section 10B.
10BA Special provision in respect of export of certain articles or things. No deduction is available from AY 2010-11 & onwards.
See Second Proviso to sub-section (1) of section 10BA.
10BB Meaning of computer programmes in certain cases. References to Section 10B which is to be omitted. (supra)
10C Special provision in respect of certain industrial undertakings in North-Eastern Region. No deduction is available from AY 2004-05 & onwards.
See Proviso to sub-section (6) of section 10C.
12AA(1A) Procedure for registration. Transitional provision for Transfer of cases form Chief Commissioner to Commissioner on 1 June 1999.
Proviso to 14A(3) Expenditure incurred in relation to income not included in total income. Transitional provision at the time of introduction of section 14A. All cases covered in the proviso are not time-barred (beyond limitation period).
32A Investment allowance Vide Notification No. SO 233(E) dated 19-3-1990, no Investment Allowance is allowed after 31 March 1990 i.e., AY 1991-92 & onwards.
32AB Investment deposit account. No deduction is available from AY 1991-92 & onwards.
See Second Proviso to sub-section (1) of section 32AB.
33 Development Rebate. Vide Notification No. SO 2167 dated 28-5-1971, no Development Rebate is allowed after 31-5-1974 i.e., AY 1976-77 & onwards.
33A Development Allowance. No deduction is available from AY 1991-92 & onwards. See Proviso to sub-section (1).
33AC Reserves for shipping business. No deduction is available from AY 2005-06 & onwards.
See Third Proviso to sub-section (1) of section 33AC.
33B Rehabilitation allowance. No deduction is available from AY 1985-86 & onwards.
See Proviso to sub-section (1) of section 33B.
34 Conditions for depreciation allowance and development rebate. Clause (a) & (b) of sub-section (3) refer to Section 33 Development Rebate which is proposed to be omitted (supra). No referent to depreciation allowance.
34A Restriction on unabsorbed depreciation and unabsorbed investment allowance for limited period in case of certain domestic companies. Relevant to AY 1992-93 only.
35(2A) Expenditure on scientific research. No deduction is available for payment on or after 1 March 1984 i.e., from AY 1985-86 & onwards.
35A Expenditure on acquisition of patent rights or copyrights. No deduction is available after 31 March 2011 i.e., AY 2012-13 & onwards.
35AB Expenditure on know-how. No deduction is available after 31 March 2011 i.e., AY 2012-13 & onwards.
35CCB Expenditure by way of payment to associations and institutions for carrying out programmes of conservation of natural resources. No deduction is available for payment on or after 1 April 2003.
36(1)(xi) Other deductions Deduction is for expenditure incurred between 1 April 1999 to 31 March 2000 – relevant AY 2000-01 – specifically for non Y2K compliant computer systems.
36(1)(xiii) Other deductions Banking Cash Transaction Tax has been withdrawn by the Finance Act, 2008 w.e.f 1 April 2009.
40(a)(ic) Amount not deductible. Fringe Benefit Tax is not applicable from AY 2010-11 & onwards.
44AF Special provision for computing profits and gains of retail business. Not Applicable to AY 2011-12 & onwards.
See sub-section (6) of section 44AF.
47 (viii) Transactions not regarded as transfer. Not applicable after 1 March, 1970 i.e., AY 1972-73 & onwards.
47 (xi) Transactions not regarded as transfer. Not applicable after 1 January 1999 i.e., AY 2000-01 & onwards.
54E Capital gain on transfer of capital assets not to be charged in certain cases. Not applicable in respect of a transfer after 1 April 1992 and hence redundant from AY 1993-94 & onwards.
54EA Capital gain on transfer of long term capital assets not to be charged in the case of investment in specified securities. Not applicable in respect of a transfer after 1 April 2000 and hence redundant from AY 2001-02 & onwards.
54EB Capital gain on transfer of long term capital assets not to be charged in certain cases Not applicable in respect of a transfer after 1 April 2000 and hence redundant from AY 2001-02 & onwards.
54ED Capital gains on transfer of certain listed securities or unit not to be charged in certain cases. Not applicable in respect of a transfer after 1 April 2006 and hence redunant from AY 2007-08 & onwards.
Proviso to 54H Extension of time for acquiring new asset or depositing or investing amount of capital gain. Transitional provision.
Relevant to AY 1991-92.
56(1)(v) Income from other sources Not applicable from 1 April 2006 i.e., AY 2007-08 & onwards.
56(1)(vi) Income from other sources Not applicable from 1 October 2009 i.e., AY 2010-11 & onwards.
Second proviso to Section 68 Cash Credits. Clause (23FB) of Section 10 is proposed to be omitted (supra).
71(4) Set off of loss from one head against income from another. Relevant to AY 1995-96 and 1996-97 only.
71A Transitional provision for set off of loss under the head “Income from house property”. Relevant to AY 1993-94 and AY 1994-95 only.
Proviso to Section 72(1) Carry forwards and set off of business loss. References to Section 33B which is to be omitted. (supra)
75 Losses of firms. Transitional provision relevant to AY 1993-94 till AY 2000-01.
80CCA Deduction in respect of deposits under National Savings Scheme or payment to a deferred annuity plan. No deduction on or after 1 April, 1992.
See second proviso to sub-section (1).
80CCB Deduction in respect of investment made under Equity Linked Saving Scheme. No deduction on or after 1 April, 1992.
See proviso to sub-section (1).
80CCF Deduction in respect of subscription to long-term infrastructure bonds. No deduction on or after 1 April 2013 i.e., AY 2014-15 & onwards.
80G(2)(iiia) Deduction in respect of certain funds, charitable institutions, etc. the Prime Minister’s Armenia Earthquake Relief Fund – set up for earthquake in 1988 should be dormant now.
80G(2)(iiihd) Deduction in respect of certain funds, charitable institutions, etc. the Andhra Pradesh Chief Minister’s Cyclone Relief Fund, 1996 should be dormant now.
80G(2)(d) Deduction in respect of certain funds, charitable institutions, etc. No deduction for payment after 30 September 2001, i.e., AY 2003-04 & onwards.
80G(5C) Deduction in respect of certain funds, charitable institutions, etc. Reference to Section 80G(2)(d) which is proposed to be omitted (supra).
80GGA(c) & 80GGA(cc) Deduction in respect of certain donations for scientific research or rural development. No deduction for payment after 31 March 2002 i.e., AY 2003-04 & onwards.
80HH Deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas. No deduction after AY 2000-01 & onwards. (i.e., to say 10 AY beginning from 1 April 1990).
80HHA Deduction in respect of profits and gains from newly established small scale industrial undertakings in certain areas. No deduction after AY 2000-01 & onwards. (i.e., to say 10 AY beginning from 1 April 1990).
80HHB Deduction in respect of profits and gains from projects outside India. No deduction is allowable after AY 2005-06 & onwards. See sub-section (1).
80HHBA Deduction in respect of profits and gains from housing projects in certain cases. No deduction is allowable after AY 2005-06 & onwards. See sub-section (1).
80HHC Deduction in respect of profits retained for export business. No deduction is allowable after AY 2005-06 & onwards. See sub-section (1B).
80HHD Deduction in respect of earnings in convertible foreign exchange. No deduction is allowable after AY 2005-06 & onwards. See sub-section (1).
80HHE Deduction in respect of profits from export of computer software, etc. No deduction is allowable after AY 2005-06 & onwards. See sub-section (1B).
80HHF Deduction in respect of profits from export or transfer of film software, etc. No deduction is allowable after AY 2005-06 & onwards. See sub-section (1).
80-I Deduction in respect of profits and gains from industrial undertakings after a certain date, etc. No deduction is allowable after AY 2001-02 & onwards (i.e, to say after 10 AY beginning from 1 April 1991).
80-O Deduction in respect of royalties, etc., from certain foreign enterprises. No deduction is allowable after AY 2005-06 & onwards. See sub-section (1).
80Q Deduction in respect of profits and gains from the business of publication of books. No deduction is allowable after AY 1997-98 & onwards. See sub-section (1).
80QQA Deduction in respect of professional income of authors of text books in Indian languages. No deduction is allowable after AY 1997-98 & onwards. See sub-section (1).
80R Deduction in respect of remuneration from certain foreign sources in the case of professors, teachers, etc. No deduction is allowable after AY 2005-06 & onwards. See sub-section (1).
80RR Deduction in respect of professional income from foreign sources in certain cases. No deduction is allowable after AY 2005-06 & onwards. See sub-section (1).
80RRA Deduction in respect of remuneration received for services rendered outside India. No deduction is allowable after AY 2005-06 & onwards. See sub-section (1).
87 Rebated to be allowed in computing income-tax. Omit references to Sections 88, 88A, 88B, 88C, 88D & 88E.
88 Rebate on life insurance premia, contribution to provident fund, etc. No rebate is allowable after AY 2006-07 & onwards.
88E Rebate in respect of securities transaction tax. No rebate is allowable after AY 2009-10 & onwards.
111A(3) Tax on short-term capital gains in certain cases. Omit sub-section (3) which references to Section 88, since proposed to be omitted (supra).
112(3) Tax on long-term capital gains. Omit sub-section (3) which references to Section 88, since proposed to be omitted (supra).
113 Tax in case of block assessment of search cases. Section 158BC referred in this section is not applicable for search, etc., made after 31-05-2003.
115B(2) Tax on profits and gains of life insurance business. Relevant to AY 1989-90 & AY 1990-91 only.
115BBB Tax on income from units of an open-ended equity oriented fund of the Unit Trust of India or of Mutual Funds. Not applicable from AY 2004-05 & onwards.
115J Special provisions relating to certain companies. Not applicable after AY 1991-92 & onwards.
115JA Deemed income relating to certain companies. Not applicable after AY 2001-02 & onwards.
115-O(6) Tax on distributed profits of domestic companies. Sub-section (6) ceases to have effect from 1 June 2011. See proviso to sub-section (6).
115R(1) Tax on distributed profits to unit holders. Sub-section (1) applies to income distributed before the 31 March 2002.
Chapter XII-H INCOME TAX ON FRINGE BENEFITS Not applicable after AY 2010-11 & onwards. See section 115WM.
139 Return of Income 1. First and second proviso to sub-section (1) are not applicable from AY 2006-07.
2. Proviso to sub-section (4) is a transitional provision and not applicable for AY 1988-89 & onwards.
3. Proviso to sub-section (5) is a transitional provision and not applicable for AY 1988-89 & onwards.
5. Clause (c) of sub-section (8) is a transitional provision and not applicable for AY 1988-89 & onwards.
139A Permanent account number 1. Clause (iv) of subsection (1) deals with Fringe Benefit Tax.
2. Proviso to sub-section (5A) deals with General Index Register Number in lieu of PAN since redundant.
3. Omit references to General Index Register Number in sub-section (8).
144(2) Best judgement assessment Sub-section (2) is a transitional provision not applicable from AY 1989-90 & onwards.
153 Time limit for completion of assessment or reassessments. 1. Clause (b) of sub-section (1) is a transitional provision not applicable from AY 1989-90 & onwards.
2. Omit First, Second and Third Provisos to sub-section (1).
3. Omit First, second, third and fourth provisos to sub-section (2).
4. Omit First, second, third and fourth provisos to sub-section (3).
153B Time limit for completion of assessment under section 153A. 1. Omit second, third, fourth, fifth and sixth proviso to sub-section (1).
155 Other amendments. 1. Sub-section (1) is not applicable for AY 1992-93& onwards.
2. Sub-section (7) refers to Section 104 which has been omitted w.e.f. AY 1988-89 & onwards.
3. Sub-section (12) refers to AY 1987-88 & prior.
158 Intimation of assessment of Firm Not applicable after AY 1992-93 & onwards.
Chapter XIV-B SPECIAL PROCEDURE FOR ASSESSMENT OF SEARCH CASES Not applicable for search, etc., made after 31-05-2003. See Section 158BI.
172(4A) Shipping business of non-residents. Proviso to Sub-section (4A) is a transitional provision not relevant after 31 December 2008.
189A Provisions applicable to past assessment of firms. Transitional Provision.
Not applicable for AY 1992-93 & onwards.
194D Insurance Commission Proviso deals with insurance commission credited or paid before 1 June 1973 and is irrelevant now.
194EE Payments in respect of deposits under National Savings Scheme, etc. Relevant to section 80CCA.
194F Payments on account of repurchase of units by Mutual Fund or Unit Trust of India. Relevant to section 80CCB.
194K Income in respect of units. Not Applicable after 1 April, 2003.
194L Payment of compensation on acquisition of capital asset. Not Applicable after 1 June, 2000.
206 Persons deducting tax to furnish prescribed returns. Not applicable after 1 April, 2005.
206C(5A) Profits and gains from business of trading in alcoholic liquor, forest produce, scrap, etc. Sub-section (5A) regarding annual returns is not applicable after 1 April, 2005.
206CA Tax collection account number Not applicable after 1 October, 2004.
See proviso to Section 206CA.
Clauses (a), (b) and (d) of 239(2) Form of claim for refund and limitation. Clause (a) & (b) is redundant after 31 March, 1972 and relate to AY 1968-69 & prior;
Clause (d) related to Fringe Benefit Tax and is redundant after 31 March, 2012.
236 Relief to company in respect of dividends paid out of past taxed profits. Provides relief to Companies in respect of dividend paid out of profits charged to tax for any AY 1959-60 or prior.
Appears to be transitional provision between IT Act, 1922 and IT Act, 1961.
243 Interest on delayed refunds. Not applicable after AY 1989-90 & onwards. See sub-section (3).
244 Interest on refund where no claim is needed. Not applicable after AY 1989-90 & onwards. See sub-section (3).
246 Appealable Orders. Not applicable after 1 June 2000.
249(2A) Form of appeal and limitation. Transitional provision, not applicable after 1 July 2000.
256 Statement of case to the High Court. Not applicable in respect of orders passed by the IT Appellate Tribunal on or after 1 October 1998.
Also omitted by the National Tax Tribunal Act, 2005 with effect from a date yet to be notified.
257 Statement of case to Supreme Court in certain cases.
258 Power of High Court or Supreme Court to require statement to be amended.
259 Case before High Court to be heard by not less than two judges.
260 Decisions of High Court or Supreme Court on the case stated.
Chapter XX-A ACQUISITION OF IMMOVABLE PROPERTIES IN CERTAIN CASES OF TRANSFER TO COUNTERACT EVASION OF TAX Inoperative after 30-09-1986.
Chapter XX-C PURCHASE BY CENTRAL GOVERNMENT OF IMMOVABLE PROPERTIES IN CERTAIN CASES OF TRANSFER Not applicable after 1 July 2002.
271BB Failure to subscribe to eligible issue of capital. Section 88A – principal section stands omitted w.r.e.f 1-4-1994.
272BBB Penalty for failure to comply with the provisions of section 206CA Not applicable after 1-Oct-2004.
276AB Failure to comply with the provisions of sections 269UC, 269UE and 269UL. Relevant to chapter XX-C, since inoperative after 1 July 2002 (supra).
276CCC Failure to furnish return of income in search cases. Relevant to Chapter XIV-B, Not applicable for search, etc., made after 31-05-2003.
294A Power to make exemption, etc., in relation to certain Union territories. Not exercisable after 1 April, 1967.
297 Repeal and savings. Repeals the Indian Income Tax Act, 1922.
Same has been completed and repeal of a repeal does not revive the repealed enactment.
298 Power to remove difficulties. Not applicable after 1 April 1962 in respect of the Income Tax Act, 1961 and after 1 April, 1988 in respect of the Direct Tax Laws (Amendment) Act, 1987.
The Fifth Schedule List of Articles and Things Section 33, the principal section is proposed to be omitted.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s