Explanatory Notes to the provisions of Finance Act 2018 [Read CBDT Circular]

Explanatory Notes to the provisions of Finance Act 2018 [Read CBDT Circular] CIRCULAR No.-8/2018 F. No. 370142/07/2018-TPL Government of Ind

CA Deepak Gupta

Dec 26, 2018

Last update on Dec 26, 2018

Explanatory Notes to the provisions of Finance Act 2018 [Read CBDT Circular]

CIRCULAR No.-8/2018

F. No. 370142/07/2018-TPL

Government of India

Ministry of Finance

Department of Revenue

(Central Board of Direct Taxes)

Dated, the 26th of December, 2018

EXPLANATORY NOTES TO THE PROVISIONS OF THE FINANCE ACT, 2018

CIRCULAR

INCOME TAX ACT

Finance Act, 2018 - Explanatory Notes to the Provisions of the Finance Act 2018

CIRCULAR NO. /2018, DATED THE 26th OF DECEMBER, 2018

AMENDMENTS AT A GLANCE

Section/Schedule	Particulars/ Paragraph number
	Finance Act, 2018
First Schedule	Rate Structure, 3.1-3.4
Chapter III	Income-tax Act, 1961
2	Widening of scope of Accumulated profits for the purposes of Dividend, *4.1-4.5;* Rationalisation of provision relating to conversion of stock-in-trade into Capital Asset, *14.1-14.4;* Taxability of compensation in connection to business or employment, *13.1-13.3;* New regime for taxation of long-term capital gains on sale of equity shares etc., *29.1-29.13*
9	Aligning the scope of "business connection" with modified PE Rule as per Multilateral Instrument (MLI), *5.1-5.5;* "Business connection'' to include "Significant Economic presence", *6.1-6.9*
10	Royalty and FTS payment by NTRO to a non-resident to be tax- exempt, *7.1-7.4;* Extending the benefit of tax-free withdrawal from NPS to non-employee subscribers, *8.1-8.3;* Tax deduction at source and manner of payment in respect of certain exempt entities, *11.1- 11.5;* New regime for taxation of long-term capital gains on sale of equity shares etc., 29.1-29.13; Exemption to specified income of class of body, authority, Board, Trust or Commission in certain cases, *9.1-9.4;* Exemption of income of Foreign Company from sale of leftover stock of crude oil on termination of agreement or arrangement, *10.1-10.4*
11	Tax deduction at source and manner of payment in respect of certain exempt entities, *11.1-11.5*
16	Standard deduction on salary income, *12.1-12.4*
17	Standard deduction on salary income, *12.1-12.4*
28	Taxability of compensation in connection to business or employment, *13.1-13.3;* Rationalisation of provision relating to conversion of stock-in-trade into Capital Asset, *14.1-14.4*

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