Explanatory Notes to the provisions of the Finance Act, 2017-CBDT Circular No. 02/2018

Consolidation of plans within a scheme of mutual fund, ; Tax neutral conversion of preference shares to equity shares, ; Widening scope of Income from other sources,

Correct reference to FEMA instead of FERA, ; Tax exemption to partial withdrawal from National  Pension System (NPS), ; Exemption of income of Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund; Tax incentive for the development of capital of Andhra Pradesh,  Exemption of long term capital gains tax under section 10(38) of the Income-tax Act,  Exemption of income of Foreign Company from sale of leftover stock of crude oil from strategic reserves at the expiry of agreement or arrangement, Restriction on exemption in case of corpus donation by exempt entities to other exempt entities.

Rationalisation of provisions of Section 10AA

Restriction on exemption in case of corpus donation by exempt entities to other exempt entities

Clarity of procedure in respect of change or modifications of object and filing of return of income in case of entities exempt under sections 11 and 12

No notional income for house property held as stock-in-trade,

Disallowance  of  depreciation  under  section  32  and  capital expenditure under section 35AD on cash payment

Increase in deduction limit in respect of provision for bad and doubtful debts

Disallowance  of  depreciation  under  section  32  and  capital expenditure under section 35AD on cash payment

Increasing  the  threshold  limit  for  maintenance  of  books  of accounts in case of Individuals and Hindu undivided family

Exclusion  of  certain  specified  person  from  requirement  of audit of accounts under section 44AB

Measures  for  promoting  digital  payments  in  case  of  small unorganized businesses

Tax neutral conversion of preference shares to equity shares, Extension of capital gain exemption to  Rupee Denominated Bonds,

Extension of capital gain exemption to Rupee Denominated Bonds,  Shifting base year from 1981 to 2001 for computation of capital gains

Consolidation of plans within a scheme of mutual fund,  Tax incentive for the development of capital of Andhra Pradesh,  Special provisions for computation of capital gains in case of joint development agreement,  Tax neutral conversion of preference shares to equity shares, Cost of Acquisition of capital assets of entities in case of levy of tax on accreted income under section 115TD, Cost of acquisition in Tax neutral demerger of a foreign company, Widening scope of Income from other sources

Fair Market Value to be full value of consideration in certain cases

Expanding the scope of long term bonds under 54EC

Restriction on set-off of loss from house property

Carry forward and set off of loss in case of certain companies

Clarification with regard to interpretation of ‘terms’ used in an agreement entered into under section 90 and 90A,

Scope  of  section  92BA  of  the  Income-tax  Act  relating  to Specified Domestic Transactions,

Limitation of Interest deduction in certain cases,

Rationalisation of Provisions relating to tax credit for Minimum Alternate Tax and Alternate Minimum Tax

Rationalisation  of  provisions  of  section  115JB  in  line  with Indian Accounting Standards (Ind-AS)

Empowering Board to issue directions in respect of penalty for failure to deduct or collect tax at source

Reason to believe to conduct a search, etc. not to be disclosed, Power of provisional attachment and to make reference to Valuation Officer to authorised officer

Reason to believe to conduct a search, etc. not to be disclosed,

Rationalisation of the provisions in respect of power to call for information

Mandatory furnishing of return by certain exempt entities, Rationalisation of time limits for completion of assessment, reassessment and re-computation and  reducing the time for filing revised return,

Rationalisation of time limits for completion of assessment, reassessment and re-computation and reducing the time for filing revised return

Rationalisation of the provisions in respect of time limits for completion of search assessment,  Rationalisation of provisions of the Income Declaration Scheme, 2016 and consequential amendment to section 153A and 153C, 

Rationalisation of the provisions in respect of time limits for completion of search assessment,

Enabling claim of credit for foreign tax paid in cases of dispute,

Deduction of tax at source in the case of certain Individuals and Hindu undivided family

Non-deduction of tax in case of exempt compensation under RFCTLAAR Act, 2013

Rationalisation of provisions of the Income Declaration Scheme, 2016 and consequential amendment to section 153A and 153C,