Taxation Laws (Amendment) Act, 2006 - CBDT Explains

By Vijay Kumar

The CBDT has issued a Circular explaining the salient features of the amendments, some of which are

1. Tax recovery officer to have powers of assessing officer.

2. Exemption to North Eastern Development Finance Corporation to be phased out in Assessment year 2010-11.

3. Sunset clause in Notifications removed. Exemptions given to charitable institutions by notification are valid only for three years. Now the restriction of the three years will be removed and the notification will be valid till withdrawn.

4. Trusts, Universities etc., to furnish audited accounts.

5. Deduction to donor if approval is withdrawn.

6. Gifts up to Rs. 25,000 is okay but if you get a total gift of more than Rs. 50,000, the entire amount is taxable.

7. Universities and Colleges mandatorily to file returns.

8. Round off to the nearest Ten Rupees. At present the Income Tax is rounded off to the nearest rupee; it will now be rounded off to the nearest Ten Rupees.

CBDT Circular No. 1/2007, Dated April 27, 2007