Finance Act

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  1. Anubha Rathor

    Anubha Rathor New Member

    I want to.know that amendments in subject of Tax (IPCC) are in context of Finance Bill or Finance Act.

    Please explain the difference between them.

    And I will be giving my IPCC exam in Nov 16 , so I want to know
    which Finance Act or Bill is applicable for that.
    and from where I will get to know the amendments which are for Nov 16 exam.


    A quick reply will really help.

    Regards
     
  2. ZED

    ZED Well-Known Member

  3. Anubha Rathor

    Anubha Rathor New Member

    Since amendments only upto 30.04.2016 are apllicable and Finance Bill,2016 came in February but became an Act(Finance Act 2016) in month of May(i.e, after 30.04.2016). So,it will not be relevant for Nov 16 exam. Right,no?

    The introduction date of Finance Bill does not matter, No???
    It is the act which is relevant for amendments???
     
  4. ZED

    ZED Well-Known Member

    Hmm but did you read that pdf file I sent in the link?

    "Applicability of the Finance Act, Assessment Year etc. for November, 2016 examination The provisions of income-tax and indirect tax laws, as amended by the Finance Act, 2015, including circulars and notifications issued upto 30th April, 2016, are applicable for November, 2016 examination. The relevant assessment year for income-tax is A.Y. 2016-17."
     
  5. Anubha Rathor

    Anubha Rathor New Member

    Yes I read that.
    I was just confirming that Have I understood the correct thing from that or not
     
    Last edited: Jul 28, 2016
  6. Anubha Rathor

    Anubha Rathor New Member

    Please tell
     
  7. ZED

    ZED Well-Known Member

    For exam purpose , yes , you are right . But, for practical applications, the provisions are applied from the date specified in the Act or notified otherwise.

    For eg, lets see what S.(1)(2) of the Finance Act 2016 says,
    S.1(2) Save as otherwise provided in this Act, sections 2 to 112 shall be deemed to have come into force on the 1st day of April, 2016.



    Section 98 of the Finance (No.2) Act, 2004 provides that the securities transaction tax on sale of an option in securities where option is not exercised is 0.017 per cent of the option premium. It is proposed to increase the rate from 0.017 per cent.to 0.05 per cent.

    This amendment will take effect from 1st June, 2016
     
  8. Anubha Rathor

    Anubha Rathor New Member

    Thanx for response

    Iska mtlb to ye hua na ki Bill k wajah se koi amendment ni hota hai jab tak ki wo Act na ban jaaye?


    Par kya Finance Act 2016 ke aane ko Finance Act 2015 ka AMENDMENT kha jaayega kya??

    Pls dono ka answer dein
     
    ZED likes this.
  9. ZED

    ZED Well-Known Member

    Yes, but there are some exceptions.

    (I hope I am not confusing you, since you are a CA student I am taking the matter in a bit more detail to entice your intrigue. You have to come to CA Final and then to become CA . What I am telling might help you in long term. Sorry in advance if I am like *eating your brain* , but I will still do it :) )


    We have one Act titled "The Provisional Collection Of Taxes Act"

    S.3Power to make declarations under this Act. Where a Bill to be introduced in Parliament on behalf of Government provides for the imposition or increase of a duty of customs or excise, the Central Government may cause to be inserted in the Bill a declaration that it is expedient in the public interest that any provision of the Bill relating to such imposition or increase shall have immediate effect under this Act.[This Act means The Provisional Collection Of Taxes Act]

    See an eg from Finance BILL 2016
    upload_2016-7-28_21-11-43.png
    Due to The Provisional Collection Of Taxes Act, the above amendment took place before the Finance Act was passed.



    Finance Act makes amendments in various Acts , including the previous Finance Act.
    For eg Finance Act 2016, bought amendments in the following Finance Act;

    AMENDMENT TO THE FINANCE ACT, 2001
    AMENDMENT TO THE FINANCE (NO.2) ACT, 2004
    AMENDMENT TO THE FINANCE ACT, 2005
    AMENDMENT TO THE FINANCE ACT, 2010
    AMENDMENT TO THE FINANCE ACT, 2013
    AMENDMENT TO THE FINANCE ACT, 2015


    This was the amendment made by F.A 16 , in F.A 15

    upload_2016-7-28_21-7-31.png
     
  10. Anubha Rathor

    Anubha Rathor New Member

    You are not confusing me at all.Infact slowly slowly I am able to clear my doubts on this topic with your help.Thanx a lot



    FINANCE ACT MAKES AMENDMENT IN VARIOUS ACT- you said

    OMG And I was thinking after introduction of New Finance Act the previous Acts becomes ineffective as the New Act will contain all the things of previous one with new things.
     
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