CBDT issued Explanatory Notes to the Provisions of the Finance (No.2) Act, 2014

Just before a day, Government of India, Ministry of Finance, Department of Revenue (Central Board of Direct Taxes) has released "EXPLANATORY NOTES TO THE PROVISIONS OF THE FINANCE(No.2) ACT, 2014" vide F.No. 142/13/2014-TPL, Circular No. 01/2015 on 21st January, 2015.  This circular explain and introduce that The Finance (No.2) Act, 2014 (hereafter referred to as ‘the Act’) as passed by the Parliament, received the assent of the President on the 6th day of August, 2014 and has been enacted as Act No. 25 of 2014. This circular explains the substance of the provisions of the Act relating to direct taxes.

The changes made by the Act as under :

• Specified the rates of income-tax for the assessment year 2014-15 and the rates of income-tax on the basis of which tax has to be deducted at source and advance tax has to be paid during financial year 2014-15.
• Amended sections 2,10, 10AA, 11, 12A, 12AA, 24, 32AC, 35AD, 37, 40, 43, 44AE, 45, 47, 48, 49, 51, 54, 54EC, 54F, 56, 73, 80C, 80CCD, 80CCE, 80-IA, 92B, 92C, 92CC, 111A, 112, 115A, 115BBC, 115BBD, 115JC, 115JEE, 115-O, 115R, 115TA, 116, 119, 133A, 139, 140, 145 153, 153B, 153C, 194A, 194LC, 200, 200A, 201, 206AA, 220, 245A, 245N, 245-O, 269SS, 269T, 271FA, 271G, 271H, 276D and 281B of the Income-tax Act, 1961;
• Substituted new sections for sections 142A and 285BA;
• Inserted new sections 133C, 142A, 194DA, 194LBA and 271FAA in the Income-tax Act, 1961;
• Inserted Chapter XII-FA consisting of section 115UA in the Income-tax Act, 1961;
• Amended sections 22A of the Wealth-tax Act, 1957;
• Amended sections 97 and 98 of the Finance (No.2) Act, 2004;
• Amended section 13 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002.