The Taxation Laws (Amendment) Bill, 2016 has been passed by the Loksabha on Wednesday. The bill seeks to provide income tax reliefs to employees of textile sector on additional employment. Earlier, a special package for textile and apparel sector for next three years has been passed by the Union Cabinet with an object to promote exports and employment generation.
The Bill suggests some necessary changes in the Income Tax Act, 1961 and Customs Tariff Act, 1975.
The Bill enhances the scope of section 80JJAA of the Income Tax Act, 1961 by including six incentives for the benefit of the employees of textile sector. Earlier, section 80JJA was amended in 2016 Finance Act so as to allow certain categories of assessees to deduct a specific amount from their business income. The deduction should be allowed for an amount equal to 30 percent of the additional employee cost incurred in the course of such business in the previous year for a specific period. This is, however, subject to certain conditions. One of the conditions is that the employee should be employed for a period not less than 240 days in a year. The period is expected to be reduced by considering the seasonal nature of the said business.
The Bill further seeks to exempt land banks of erstwhile public sector undertakings from levy of capital gains tax when it is acquired by the government by amending the Income Tax Act, 1961.
The Bill further proposes to amend the rate of customs duty of marbles and granite to 40 percent from 10 percent. This is with an object to protect domestic industry from imports.
Read the full text of the Bill below.
