Page 90 - DHC Budget Book 2021-22 Final
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Hitherto, Sec.10(23C)(iiiad) & (iiiae) provides for exemption of income received by any person on behalf of university/ educational institution and hospital/ institution, subject to the condition that the annual receipts of such institutions do not exceed H 1 Crs. (as per Rule 2BC of the Income Tax Rules,1962).
In order to provide benefit to small trusts and institutions, it has been proposed that the exemption shall be available, if the annual receipts of the person claiming exemption from institutions specified in Sec.10(23C) (iiiad) or (iiiae) does not exceed H 5 Crs., in aggregate.
Comments
This amendment seeks to bring clarity on the principle as to whether exemption limit of H 1 Cr. is for each institution. Hon’ble Karnataka HC in CIT –vs.- Children’s Education Society [2013]
34 taxmann.com 285 (Kar) had held that where assessee-society runs several educational institutions, in terms of section 10(23C)(iiiad), income from each educational institution in respect of which aggregate annual receipt does not exceed H 1 Cr. received by assessee, is
not liable to be included while computing total income.
INDIA BUDGET 2021-22
7.19
Increase in prescribed limit for exemption to Hospitals and Educational Institutions [Sec. 10(23C)(iiiad) & (iiiae)] [w.e.f. AY 2022-23]
7.20 Increase in safe harbour limit to 20% in case of sale of certain residential units during specified period [Sec. 43CA & 56(2)(x)] [w.r.e.f. AY 2021-22]
Sec. 43CA r.w. first proviso provides that where the stamp duty value determined does not exceed 110% of sale consideration received or accruing as a result of transfer of real estate inventory by real estate developers, then such consideration shall be considered as full value of consideration for the purpose of computing profits and gains from such transfer.
Similar safe harbour limit of 10% has been provided in Sec. 56(2)(x)(b) in respect of buyers.
of Finance increased the safe harbour limit to 20% in case of sale of residential unit provided sale is made as part of first time allotment to any person during the period 12-11-2020 to 30-06- 2021 and consideration does not exceed H 2 Crs. Consequential modification is also proposed in Sec. 56(2)(x) to provide relief to the buyers.
Now, the aforesaid relief provided in the Press release has been proposed to be enacted by inserting second proviso to Sec. 43CA and amending Sec. 56(2)(x)(b) by increasing the safe harbour limit to 20%
Vide Press Release dated 13-11-2020, Ministry
7.21 Notified Infrastructure debt funds eligible to issue Zero Coupon Bonds [Sec. 2(48) & Sec.
194A] [w.e.f. AY 2022-23]
Sec. 2(48) defines Zero Coupon Bond as the bonds issued on or after 01-06-2005 which
are notified by CG and in respect of which no payment or benefit is received or receivable before maturity or redemption. Hitherto, definition was restricted to bonds issued by any Infrastructure capital company or Infrastructure capital fund or Public sector company or Scheduled bank.
It has been proposed to amend the definition so as to include Zero Coupon Bonds issued by Infrastructure debt funds notified by the CG u/s 10(47) of the Act.
Sec.194A(3)(x) is proposed to be amended to exclude income on Zero Coupon Bonds by such Infrastructure debt funds from the purview of deduction of tax at source.
Comments
Hitherto, Infrastructure Debt Fund raise resources through issue of either Rupee or Dollar denominated bonds or by issuing units of Mutual Fund. The above amendment shall enable Infrastructure Debt Funds to raise funds by issuing Zero Coupon Bonds as well which shall be used to refinance existing debt of infrastructure companies.
88 Building a Resilient and Confident India
