1. Bank Term Deposit Scheme, 2006 – Section 80C

Bank Term Deposit Scheme, 2006 has been notified. Investment in term deposit with any Scheduled Bank for a period of five years will be eligible for deduction u/s. 80C(2)(xxi) subject to compliance of other conditions. Interest on these term deposits shall be liable to deduction of tax at source.

[Notification No. 203/2006 dated July 28, 2006 (284 ITR (St.) 73) (154 Taxman (St.) 184) (204 CTR (St.) 18)]

2. No Income-tax on Government compensation to Mumbai blast victims

The Government has taken a decision that the victims of recent Mumbai bomb blasts will not be subjected to income-tax on the compensation received from the Central or State Government.

The Government has decided that the amounts received or receivable by an individual or by the spouse or legal heirs of an individual by way of compensation on account of any disaster, from the Central Government or any State Government or any Local authority shall not be subjected to tax. Disaster will have the same meaning assigned to it under the Disaster Management Act, 2005. Necessary amendments to the Income-tax Act, 1961, will be made at the appropriate time.

[PIB Press Release, New Delhi, dated 4th August, 2006 (284 ITR (St.) 78)]

3. Audit Report u/s. 10(23C) – Rule 16CC

Newly inserted Rule 16CC provides that Audit report u/s. 10(23C) in the case of any fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in Ss. 10(23C)(iv), 10(23C)(v), 10(23C)(vi), 10(23C)(via), shall be in Form No. 10BB.

Accordingly, Form No. 10BB has been prescribed.

[Notification No. 1176 (E) dated 25th July, 2006 (154 Taxman (St) 179) (284 ITR (St.) 67)]

4. Audit Report u/s. 44AB

Form Nos. 3CD has been amended.

[Notification No. 208/2006 dated 10th August, 2006 (204 CTR (St) 33) (155 Taxman (St.) 3)]

5. Infrastructure facility – Rule 6ABAA

The CBDT has notified the following public facility as infrastructure facility for the purpose of clause (d) of the Explanation to section 36(1)(viii):

1. Inland Container Depot and Container Freight Station notified under the Customs Act, 1962.
    

2. Mass Rapid Transit System.
    

3. Light Rail Transit System.
    

4. Expressways.
    

5. Intra-urban or semi-urban roads like ring roads of urban by-passes or flyovers
    

6. Bus and truck terminals.
    

7. Subways.
    

8. Road dividers.
    

9. Bulk Handling terminals which are developed or maintained or operated for development of rail system.
    

10. Multilevel Computerised Car Parking.

[Notification No. 188/2006 dated 20th July, 2006 (154 Taxman (St.) 183} (284 ITR (St.) 61)]

6. Filing of return through Post office

The Government has designated 2000 post offices to accept return of income. To file through a post office, one will have to file return in duplicate and submit one copy in an unsealed envelope of size 10*12 without folding the Return. On the envelope, (i) PAN (ii) Name of the tax-payer (iii) Address of the tax-payer (iv) Assessment year (v) Ward/Circle where assessed to be written. Post office will give a duly stamped acknowledgment in the second copy.

[Press release, New Delhi dated 24-7-2006 (154 Taxman (St) 131)}(284 ITR (St.) 63) (154 Taxman (St.) 131)]

7. DTAA with Japan

Amendments to the Double Tax Avoidance Agreement with Japan have been notified.

[Notification No. 186/2006 dated July 19, 2006 (284 ITR (St.) 64) (154 Taxman (St.) 176) (203 CTR (St.) 73)]

8. Notified Officer for the purpose of Banking Cash Transaction Tax

The assessing officer, for the purpose of Chapter VII of the Finance Act, 2005, shall be the same who is having jurisdiction in respect of the assessee for the purposes of the Income- tax Act, 1961.

[Notification No. 185/2006 dated 18th July, 2006 (154 Taxman (St) 176) (284 ITR (St.) 61) (154 Taxman (St.) 176)]