At the end of February the Finance Minister presented in the Parliament the Union Budget for the financial year 2008-09. A lot has been written and spoken about the provisions of this Budget but almost all of it is spelling out the changes relating to taxation – direct and indirect and debt waiver for farmers. All that is no doubt important and relevant but we also need to look at in some depth on the effect of the Budget on the Consumer.

Consumers any where have two main expectations, and quite understandably so. They want their Income to go up and their Expenditure to go down. The Finance Minister obviously knows this very well and has done a reasonable job of doing that.

Let us first deal with Income. Consumer’s Income goes up mainly by two ways and both have been tackled well in the Budget. The first one is fairly easy to understand viz., reduction in Direct Taxes. To achieve this, the Finance Minister has increased the threshold level and the slabs have been readjusted. The second one is a little complex one. Income goes up with growth but real income goes up only to the extent that it exceeds inflation.

India’s performance on the growth front has been commendable in the recent past. The average GDP growth during the past five years is over 8%. As a result, the per capita income went up from Rs.22000 in 2002 to Rs.37,000 in 2007 and is now about Rs.40,000. This looks impressive. But growth requires investment. Investment requires money. Money supply causes inflation. Inflation reduces real income. So, we need more growth. And the cycle goes on.

There is a lot of confusion about what is the correct level of inflation in India. Government uses Wholesale Price Index which is usually a little lower than the Consumer Price Index. Although it is the latter which concerns the Consumer, since Government and Media use the former let us stay with that. This inflation number has been variously quoted as between 4 and 6 (and lately 7). That leaves a margin of real income growth of 3% to 5% which is not bad. The problem is that the inflation number depends upon how it is computed and the ‘basket’ of items it covers and the weightage given to each item. The problem is further aggravated by the difference in alignment of the basket used by the Government and the ‘basket’ of the consumers’ household expenditure. To simplify the matter, Government assumes, whilst working the inflation number that 15% of the household expenditure would be spent on food. In many Indian households, depending on poverty level, that number could be even 50%. So a 20% increase in price of foodstuff can affect the former 3% and later 10%. Hence the political sensitivity to inflation in food articles. One obvious way to tackle this is to increase the supply which may bring the prices down.

Agriculture in India has suffered from neglect over the past many decades. The Budget contains several provisions to address this. The farmers’ debt relief is a part of this plan. Total expenditure planned is very large and the aim is to improve the growth of agriculture sector from about 2% at the moment to 4% as quickly as possible. If that happens it would be a miracle. It will reduce the common man’s inflation quite a bit and thus improve his real income.

Coming to Consumer’s expenditure the Finance Minister has proposed reduction in both the Customs and Excise duties quite significantly. This will reduce prices of most manufactured goods used by the Consumer. It will also increase the demand for those goods which in turn will increase jobs ----- and demand ----- and jobs ------ and general prosperity.

So much for Income and Expenditure! For sustaining growth and prosperity, we need to have superior physical and social infrastructure i.e. more and better roads, bridges etc. as also better education and public health facilities. All these are primarily in the ‘State List’. Still the Union Budget has allocated substantial funds for each one of these areas. Unfortunately it has not received the publicity that it deserves.

In the field of Physical Infrastructure the proposals include:

1. Allocation of Rs.7000 crores to the Jawaharlal Nehru Urban Renewal Mission.
2. Allocation of Rs.4000 crores for Rural Infrastructure Fund.
3. Support to Secondary School Education at a cost of Rs.2500 crores and a Model School Programme to establish high quality schools.
4. Ten thousand means-cum-merit scholarships to be given to deserving students.
5. Upgradation of three hundred ITIs to build up more skilled workforce.
6. Each state will have a Central University.
7. Three new IITs will be started.
8. Some Universities will be honoured as Centres of Excellence. For this year, Mahatma Krishi Vidyalaya in Maharashtra, Mysore University and Delhi University have been chosen and they will receive a grant Rs.100 crores each.
9. Introduction of a Scheme of Innovation in Science and giving of special scholarships for students who want to pursue career in science.
10. Establishment of National Knowledge Network and Skill Development Corporation.
    
               In the field of Public Health the proposals include:

1. Continuation of National Rural Health Mission at a cost of Rs.12000 crores.
2. Integrated Child Development Centres at a cost of Rs.1000 crores
3. Establishment of two National Institutes for the Ageing.
4. Each State will have a Department of Geriatric Medical Care in one Medical College.
5. Substantial increase in remuneration of Anganwadi workers and helpers.

To summarise, the Union Budget has the potential of improving the plight of the Consumer by increasing his net earnings (by reduction in direct taxes) coupled with sustained growth and reducing his expenditure by decrease in indirect taxes. In addition the Consumer will benefit by improvement in Quality of Life because of better physical and social infrastructure. All this makes exciting reading. It is an impressive roadmap.

The million dollar question is; will it happen? Reduction in taxes is simple and will, therefore, happen. When it comes to sustained growth through implementation of various schemes and reforms, our track record has been somewhat disappointing. If the Government agrees to publish a periodical progress report on each one of the ‘budget promises’ and thus make itself accountable to the public, it would go a long way in helping the situation. We would then have a good chance of achieving higher growth, prosperity and employment, which after all is the purpose of the Budget exercise.

UNION BUDGET AND INDIAN CONSUMER

Annual Budget of Government of India is treated as a major annual event in the country whereby Finance Minister gives an account of Governments outlay and also makes allocation of funds for ensuing Financial Year for development and education, health care, defense and other major purposes. CFBP annually analysis the budget proposals effecting the consumer. For this purpose budget meeting was held at IMC Hall on March 5, 2008.

Dr. P. R. Joshi, President, Mumbai Grahak Panchayat analysed the effects of the budget on consumer and Mr. Anil Harish who is an eminent Income Tax Lawyer and Partner of D. M. Harish & Co. gave a indepth analysis of revised sections with its effect on consumer and business which is summarised below:

Dr. P. R. Joshi stated that the current phase of the Indian economy can be described as the challenging one as, on one hand, there has been truly impressive growth and, on the other, it is characterized by increasing income inequality. The common consumer would feel the impact of such inequality and the budget has to be examined from that standpoint.

SUPPLY OF GOODS:
By and large, Indian consumer is reasonably happy about the supply of manufactured goods. Union Budget has provided relief by means of across – the board cut in excise duties from 16% to 14%. This should provide comfort to the consumers.
The main cause of concern, however, is as regards the supply of foodgrains and agro products. Shortages have been evident in 2007 and the situation may not improve over the next three years or so. While the Budget promises supply-side management, it does not spell out the details in that regard. A well-defined export/import policy of foodgrains could have been spelt out in the Budget.

SUPPLY OF SERVICES:
A typical consumer also needs various services namely banking | insurance, housing finance, power supply, telephones/internet and investment planning.

The last few years have witnessed major improvements as regards supply of various services. However, major bottlenecks persist as far as the power situation is concerned. Union Budget makes a few references on the subject but fails to offer an effective remedy.

PRICE SITUATION IN INDIA:
India has experienced moderate inflation during the last few years, going by the trends in wholesale price index. However, cost of living index, especially the prices of foodgrains and agro-products, has increased considerably of late.

The disturbing food-price situation has not been only the Indian phenomenon, as worldwide, prices of wheat, rice and maize have gone up sharply. Moreover the outlook in that regard continues to be grim, and the commentators describe this as ‘Agflation’. Income tax relief provided in the budget would partially offset the consumers.

Inflationary pressures would remain a major cause of concern for consumers in India. Supply side management would become a major thrust area and action is called for improving the agricultural production and productivity by means of green revolution.

QUALITY OF SERVICE:
Over the past decade and a half, the quality of market service has improved perceptibly. Consumers presently enjoy ease of transactions of various sorts in view of computer applications / availability. With internet and broadband services, communications have become smooth and swift. With ECS facilities, banking services have improved for payments | receipts both. In view of thrust on E-governance, government machinery too has become faster and transparent. In view of improved financial literacy, investment planning by the investors has been rendered convenient. Successive budget have shown proactive attitude in that regard.
Taking an overall view of the Union Budget 2008-2009, consumers in India should be reasonably happy on account of improvement in the levels of income and lifestyles. While certain imbalances and distortions persist, organisations like MGP and CFBP could take initiative and make a contribution by tackling the same, to some extent.

Presentation of Mr. Anil Harish, Leading Income Tax Lawyer

1. Income-tax Basic exemption and rate of tax – Individuals and HUFs.
   Basic exemption to be increased from Rs.1,10,000/- to Rs.1,50,000/-.
   Rate of Tax from Rs.1,50,001/- to Rs. 3,00,000 @ 10%,
   Rs.3,00,001/- to Rs. 5,00,000/- @ 20%.
   Above Rs. 5,00,000/- @ 30%.
   Surcharge will be applicable for income over Rs. 10 lakhs.
   Maximum rate of tax will continue to be 33.99%.
   At present the Income-tax on a person having income of Rs. 5,00,000/- is Rs. 99,000/-. After the New Budget is passed. It will stand reduced to Rs. 55,000/-.
   For Women assessees below the age of 65, basic exemption is to be increased from 1,65,000/- to Rs.1,80,000/-.
   For Senior citizens’ basic exemption increased from 1,80,000/- to Rs.2,25,000/-.
   
2. Due date for filing Return.
   Under section 139, a Company or firm or other assessee who is now required to file the Income-tax Return by 31st October will hereafter have to file Return by 30th September. This will be applicable for assessment year 2008-09.
   
3. Income from a Nursery to be deemed to be agricultural income.
   Sec.2(1A) New Explanation 3. Income derived from saplings or seedlings grown in a Nursery shall be deemed to be agricultural income.
   
4. Business carried on by a Trust.
   Sec.2(15). The existing clause is being substituted to say that if a Trust is carrying on any business or rendering any services for an object of General Public Utility then the income of the Trust will be taxed irrespective of the nature or use or application or retention of the income from such activity. However, if a Trust is carrying on a commercial activity for relief of the poor, education or medical relief, income from a business will not be taxable.
   
5. Reverse Mortgage.
   A new clause (43) in section 2 is to be introduced with retrospective effect from Asst.Year 2008-09. to say that an amount, received by an individual, as a loan either by lumpsum or instalments in a transaction of reverse mortgage under a scheme made and notified by the Central Government will not be treated as a transfer and will not be taxed.
   A new clause (xa) is to be inserted into Section 47 to provide that a reverse mortgage with an approved Institution will not be a transfer.
   
6. Scientific Research.
   Sec.35(iia). A deduction now will be available of 125% of any sum paid to a Company to be used for scientific research provided that such a Company is registered in India ,has as its main object scientific research and development, is approved by the prescribed authority and fulfills such other conditions as may be prescribed.

   Another clause (6) is to be inserted in sec.35(2AB) which refers to Companies engaged in the business of bio-technology etc. which will provide that an entity which is so approved by the prescribed authority will not be allowed to claim 150% deduction in respect of expenditure incurred after 31.3.2008.
   

7. Amortisation.
   Sec.35D provides for amortisation of preliminary expenditure over a period of 5 years. This relates to expenses incurred before commencement of business and is allowed to every assessee. It also relates to expenditure incurred after commencement of business but only in the case of Industrial Undertakings. This is now being amended to provide that it will be available even for non-industrial undertakings.
   
8. Deduction for Securities Transaction Tax and Commodities Transaction Tax.
   Section 36.
   If an assessee carrying on business of securities pays STT, this is presently allowed as a rebate u/s.88E, and not as a deduction u/s.40(a)(ib). However, this provision is being omitted and STT will be allowed as a deduction u/s.36.
   A new Commodities Transaction Tax is being introduced and this will also be allowed as a deduction to an assessee carrying on business in commodity trading.
   
9. Cash payments.
   Sec.40(A)(3). A new sub-section is being substituted which will state that payments in cash made to a person exceeding Rs. 20,000/- in one day shall not be allowed as a deduction except having regard to the banking facilities available, business expediency and other relevant factors.
   This is being brought in to clarify that if several payments, even though each less than Rs.20,000/- are made in a day to a single person, then these will be aggregated.
   
10. Depreciation.
    A new explanation is being inserted in sec.43 to provide that where an assessee was not required to compute his total income for any earlier years, the actual cost shall be computed by removing the effect of any revaluation and if depreciation was provided in the books of account for earlier years, such depreciation provided in the books in earlier years shall be deemed to be depreciation actually allowed.
    
11. Conversion of Bonds into Shares or Debentures.
    Sec.47. New clause (xa) Any transfer by way of conversion of Foreign Currency Bonds referred to in Sec.115AC(1)(a) into shares or debentures shall not be deemed to be a transfer.
    In the case of conversion of a Bond into shares or debentures, the cost of acquisition of the share or debenture shall be deemed to be that part of the cost of the Bond in relation to which such new asset was acquired by the assessee.
    
12. Sec.80C – Saving Schemes.
    An investment in Senior Citizens Savings Schemes and a 5 year time deposit in any account of the Post Office shall be included in the list of permissible investments, provided however that if there is a withdrawal of either principal or interest within 5 years, the amount so withdrawn will be subject to tax.
    
13. Insurance - Sec.80D.
    The deduction presently available is Rs. 15,000/-. This is now being increased and will be available upto Rs. 15,000/- for the assessee, spouse and dependent children and another Rs. 15,000/- for parent or parents, but if the parent is a senior citizen then Rs. 20,000/- will be allowed. Accordingly, the maximum now will be Rs. 30,000/- or Rs. 35,000/-.
    
14. Deduction for Income from new hospital.
    Sec.801B(11C). If a new hospital is constructed and starts functioning on or after 1st April 2008 and before 31st March 2013 and has at least 100 beds and is constructed in accordance with the regulations or byelaws of the Legal Authorities and if the assessee furnishes an Audit Report it shall be entitled for 100% deduction of profits for 5 years. The date on which Completion Certificate is issued by the local Authority shall be the date of construction. This includes hospitals in Mumbai, Delhi, Kolkatta, Chennai, Hyderabad, Rajasthan, Ahmedabad, Faridabad, Gurgaon, Gautam Budh Nagar, Ghaziabad, Gandhinagar, Secunderabad.
    
15. Deduction for Hotels.
    Section 801D. If a 2 star, 3 star or 4 star hotel or convocation centre is constructed and starts functioning between 1st April 2008 and 31st March 2013, in a specified district having a World Heritage Site then the assessee will be entitled to 100% deduction of the profit for 5 years. These are areas such as Agra, Bharatpur, Puri etc.
    
16. Short-term Capital Gain on listed securities.
    Sec.111A and 115AD are being amended to provide that the rate of tax shall be increased to 15% ++ for all assesses including FIIs.
    
17. MAT.
    Section 115JB presently provides that the figure of Book profit of a Company as per the P&L a/c. is subject to certain adjustments, and MAT will be 10% of the adjusted book profit.
    One amendment now proposes that the book profit of a Company shall be increased by the amount of the deferred tax and the provision therefore in the P&L a/c.
    Another amendment is that the figure of Income-tax shall include:
    
    (i) any tax on distributed profits u/s.115O or distributed or sec.115R.
    (ii) Any interest charged under this Act.
    (iii) Surcharge.
    (iv) Education Cess.
    (v) Secondary and Higher Education Cess.
    
18. Dividend Distribution Tax.
    Section 115-O is to be amended. If a Company declares a dividend to its holding company and pays DDT (Dividend Distribution Tax) on that amount then if the holding company does declare a dividend it will not have to pay further DDT on the amount of dividend which it received from its subsidiary. However, if the holding company itself is a subsidiary of another company, then this exemption will not be available. For example, if Company C pays dividend to its Holding Company B and also pays DDT, then when B declares dividend to its shareholders it does not have to pay DDT to the extent it has received dividend from C.
    However, if B itself is a subsidiary of A, then B will have to pay DDT.
    Accordingly this exemption will be available only to a distribution by the uppermost company in a chain of subsidiaries, when it pays to its own shareholders and provided the dividend so distributed is in the same year in which the dividend was received by it.
    
19. Fringe Benefit Tax.
    A number of changes are being made to sec.115WB, 115WC, 115WD, 115WE and a new sec.115WKA is being introduced. The effect of these changes is as under:

    There will be no FBT on a Guest House.
    The FBT on expenditure on Festive celebrations shall be on 20% of such expenditure and not 50%.
    An FBT Return will have to be filed by 30th September of every year w.e.f. Asst.Year 2008-09.
    Section 115 WE is to be amended to provide that the Return shall be processed by making adjustments for arithmetical errors and incorrect claims and an intimation shall be prepared or generated and sent within one year from the end of the Financial year in which the Return is made. An acknowledgement of return shall be deemed to be intimation in a case where no sum is payable by or refundable to the assessee and where no adjustment has been made under clause (a).

    The CBDT may make a Scheme for Centralised processing of Returns with a view to expeditiously determining the tax payable by or refund due to the assessee.
    
    FBT on Sweat Equity.
    New sec.115WKB will state that where an employer is paying any FBT for allocation or transfer of specified equity or Sweat Equity Shares or has recovered such tax from an employee, then it shall be deemed that the FBT is treated as a tax paid by such employee only to the extent to which the amount thereof relates to the value of the Fringe Benefit provided to such employee. The employee shall not be entitled to claim any refund out of such payment of tax or get any credit for such payment under the Income-tax Act. This will apply from Asst.Year 2008-09. the effect of this is that a person who is assessed to Income-tax in another country may claim rebate or credit there..
    

20. Sec.142.
    An Income-tax Authority has the right to direct that an assessee’s accounts shall be audited, and has the right to extend the time for completion of the Audit, if application is made. Now, he may extend the time suo motu even without an application.. This will take effect from Asst.Year 2008-09.
    
21. Assessment Proceedings sec.143.
    For some time in the past there was a system of issuing intimations rather than assessment orders after correcting any arithmetical error and incorrect claims etc. This has been discontinued for sometime but the system is now being revived. Accordingly when a Return is filed, adjustments will be made for arithmetical errors or incorrect claims and an Intimation shall be prepared and sent to the assessee within one year from the end of the financial year in which the Return is made. Even if a loss declared in the Return is reduced but no taxable interest is payable, the intimation shall still be sent.
    It is also now proposed that the CBDT may make a scheme for Centralised processing of Returns or may make other Notification before 31st March 2009 for simplifying the assessment system.
    In case where no sum is payable by or refundable by the assessee, an acknowledgement shall be deemed to be an intimation. In the event that the A.O. wishes to take up the case for specific assessment, then a notice will have to be sent within 6 months from the end of the Financial year in which the Return is furnished.
    
22. Section 147.
    Re-assessment.
    A provision is to be added to sec.147 w.e.f. Asst. Year 2008-09 to state that the A.O. may assess or re-assess income other than income involving matters which are the subject matter of any appeal, reference or revision.
    
23. Sanction for issue of a notice.
    Section 151 is to be amended with retrospective effect from 1.10.1998 by the insertion of an explanation which will state that if the Joint Commissioner, Commissioner or the Chief Commissioner is satisfied on the reasons recorded by the A.O. about the fitness of a case for issue of notice on re-opening then such Jt. Commissioner etc. need not issue such notice himself. This amendment will be with retrospective effect from 1.10.1998.
    
24. Time limit for completing assessment.
    Section 153 is to be amended with retrospective effect from 1.6.2003 to provide that an order of assessment or re-assessment relating to any assessment year which stands revived. The order u/s. Sec.153A(2) shall be made within one year from the end of the month of such revival or within the period specified u/s.153B whichever is later.
    Another amendment is to be made by inserting another proviso w.e.f. 1st June 2007 to state that if proceedings before the Settlement Commission have abated u/s.245HA, the period of limitation available to the A.O. for making an order shall be at least one year after exclusion of the period for which the matter was pending before the Settlement Commission.
    
25. Assessment in case of search or requisition.
    Sec.153A is to be amended with retrospective effect from 1.6.2003 to state that if any order of assessment or re-assessment has been annulled in appeal or other legal proceedings, assessment or re-assessment shall stand revived w.e.f. the date of receipt of the order of such amendment.
    
26. Time-limit for completion of assessment u/s.153A.
    Sec.153B is to be amended with retrospective effect from 1.6.2003 to state that the period commencing from the date of amendment till the date of the order setting aside the assessment shall be excluded in determining the time limit.
    
27. Assessment of income of any other person.
    Sec.153C is to be amended with retrospective effect from 1.6.2003. this will make a reference to sec.153A.
    
28. Prior approval for assessment in cases of search or requisition.
    Sec.153D will be amended with retrospective effect from 1.6.2003 to include reference to sec.153A(1).
    
29. Notice of demand proviso to be added.
    Sec.156 to state that an intimation shall be deemed to be a notice of demand.
    
30. TDS.
    Sec.191 is to be amended with retrospective effect from 1.6.2003. This would provide that if a payer who was required to deduct does not pay the tax and where the payee has also failed to pay such tax then the payer will be deemed to be an assessee in default.
    
31. TDS on interest on securities.
    Sec.193 is to be amended with effect from 1.6.2008 to provide that any interest payable on any security which is in a dematerialised form and is listed, shall not be subject to TDS.
    
32. TDS on payments to Contractors.
    Sec.194C is to be amended with effect from 1.6.2008 to provide that even an AOP will be required to deduct tax at source on such payments.
    
33. TDS on payments to Non Residents.
    Sec.195 and sec.295 are to be amended to provide that a person who pays to Non Residents shall not only be required to deduct but shall furnish such information regarding payment of such sum in such form and manner as may be prescribed by the Board. It appears that the manner and form will be an electronic mode.
    
34. Credit for TDS.
    A new section is to be substituted. This is much shorter than the earlier section and covers certain situations and states that the CBDT may make such Rules as may be necessary for other situations.
    
35. Consequence of failure to deduct or pay.
    Sec.201 is to be amended with effect from 1.6.2002 to provide that a person who does not deduct or does not pay or fails to pay then such person shall be deemed to be an assessee in default but no penalty shall be charged u/s.221 unless the A.O. is satisfied that such person without good and sufficient reasons has failed to deduct and pay such taxes.
    
36. Certificate for tax deduction.
    Sec.203 has been earlier amended to provide for a system whereby a payer would not be required to issue a TDS Certificate from Asst.Year 2009-10. The Government wishes to make this an online and integrated system. However, this is now postponed to Asst.Year 2010-2011.
    Accordingly TDS Certificates will have to be issued to the payers upto 31.3.2009.
    
37. Collection of tax at source.
    Sec.206C is to provide that any amount collected and paid to the credit of the Central Government shall be deemed to be payment of tax on behalf of the payee. In this case also the Certificates were not to be issued to the payee from Asst.year 2008-09. This has now been postponed to Asst.year 2010-2011.
    
38. Tribunal Orders.
    Sec.254 is to be amended with retrospective effect from 1.10.2008 to provide that a Stay Order passed by the Tribunal shall be valid only for 365 days and thereafter shall stand vacated even if the delay in disposing off the appeal is not attributable to the assessee.
    
39. New Section.
    Filing of appeal or application by Income-tax Department. Now sec.268A will state that the Board will issue Orders fixing monetary limits for filing appeals etc. Accordingly, even if an appeal is not filed by the Department for one year because the quantum is small, it may be filed for other years even on the same issue.
    
40. Penalty Proceedings.
    Sec.271 is to be amended with retrospective effect from Asst.year 1989-90. The Delhi High Court in the case of CIT v. Ram Commercial Enterprises Ltd. 246 ITR 568 (Del) has held that the mere statement in an Assessment order that Penalty Proceedings were being initiated was not enough. The Allahabad High Court in Nainoomal Hotchand v. CIT 294 ITR 185 (All) and the Kolkatta Bench of the Tribunal in Deen Bandhu Pal v. ITO 293 ITR (AT) 199 (Kol) had held that a mere statement in the Assessment Order was sufficient for initiation of penalty proceedings, as the issue in any case would be examined in greater detail at the stage of the penalty proceedings. A new sub-section (1B) is to be inserted into section 271 to provide that a bare initiation in the Asst. Order is sufficient.
    
41. Immunity from penalty.
    A new sec.273AA is to be introduced whereby a person may make an application to the Commissioner for granting immunity from penalty if he has made an application for settlement u/s. 245C and the proceedings for settlement have abated and if penalty proceedings have been initiated under this Act. However, the application shall not be made after the imposition of penalty. The assessee, after abatement should have co-operated with the Income-tax Authorities and have made a full and true disclosure of income. Conditions may be imposed.
    
42. Immunity from prosecution.
    New sec.278AB is to be introduced. A similar Immunity from prosecution will be available in the event an application for settlement had been filed and proceedings had abated.
    
43. Authentication of notice and other documents.
    New sec.282A. If an authority has signed a notice in manuscript, then even if the notice delivered to the assessee does not bear the signature but has the name and office of the designated Income-tax Authority printed, stamped or otherwise written thereon, this shall be valid.
    
44. Notice to be deemed to be valid in certain circumstances.
    A new section 292BB will be inserted to provide that where an assessee has appeared in any proceeding or co-operated in any enquiry it shall be deemed that any notice under any provision of the Act required to be served on him has been served on him in time and the assessee shall be precluded from taking action against him on the ground that the notice was not served on him, was not served in time or was served in an improper manner.
    
45. Presumption as to assets, books of account etc.
    Sec.292C refers to a search and states that if assets or books of account are found, they will be presumed to belong to the persons being searched. This is to be amended to extend its presumption to survey actions.

    New sub-sec.2 will state that where any books of account or documents or assets have been delivered to the Requisioning Officer u/s.132A then the provisions of sub-sec.1 shall apply as if such books etc. have been found in the office or control of that person.
    
    WEALTH TAX

46. Wealth-tax.
    Sec.17 is to be amended to provide that the A.O. may assess or re-assess such net worth which is chargeable to tax and has escaped assessment, other than that which is the subject matter of any appeal.
    An explanation shall also be inserted with retrospective effect from 1.10.1990 to state that a J.CIT, CIT or CCIT on being satisfied on the reasons recorded by the A.O. about fitness of a case for issue of notice, need not issue such notice himself.

47. Wealth-tax Settlement Commission.
    Sec.17A to be amended to provide that where a proceeding before a Settlement Commission abates u/s.22AA the period of limitation shall be not less than one year for an A.O. to make an order of assessment or re-assessment.

48. Penalty.
    A direction for initiating penalty proceedings shall be deemed to constitute satisfaction of the A.O.

49. Immunity from Penalty.
    A new sec.18BA similar to the amendment in sec.271 of the Income-tax Act is being introduced.
    
50. Immunity from Prosecution.
    A new sec.35GA similar to the amendment under the Income-tax Act is being introduced.
    
51. Notice deemed to be valid.
    A new sec. 42 similar to similar to the amendment under the Income-tax Act is being introduced.
    
52. Requisition of tax on Books of Account.
    A new sec.42d(2) to be inserted with retrospective from 1975 similar to the amendment under the Income-tax Act is being introduced.

SERVICE TAX.

This will no longer apply from 1st April, 2009/

VIII. Duties of Consumers 1. Insist on receipts or bill without fail, on all the purchases made 2. Read information carefully on the packets before purchase 3. Do not feel tempted on misleading advertisements 4. Buy standardized products only i.e. of ISI. AGMARK BRANDS 5. File consumer complaints against default in goods deficiency in services, or     unfair trade practice.

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