 the indian diaspora  and education infrastructure (brain drain cess) bill, 2017 byshri rabindra kumar jena, mp——————arrangement of clauses——————clauses chapter i preliminary1 short title, extent and commencement 2 definitions chapter ii basis of charge3 charge of cess 4 identification of non-resident citizens 5 voluntary contribution to the funds 6 income received in the previous year 7 registration 8 deductions for contributions to research and charity9 calculation of cess10 exemption for tax relief beneficiaries 11 tax relief upon re-entry chapter iii tax management12 tax authorities 13 rectification of mistake 14 notice of demand 15 recovery of taxes 16 advance payment of taxes 17 differences in tax brackets 18 revision of tax brackets and tax rates(ii)clauses chapter iv cooperation with destination countries19 agreements with host countries 20 disambiguation of authority 21 freedom of emigration 22 tax liability for transfer from resident to an assessee chapter v indian national scholarship and research fund23 collection and distribution authorities 24 corpus fund 25 need based scholarship distribution 26 reservation 27 eligible universities in india 28 scholarship abroad 29 eligible universities abroad 30 eligible fields of study 31 scope of expansion of eligible fields of study 32 service obligation requirement 33 research fund 34 selection criteria 35 compliance and penalties chapter vi provisions regarding capital creation36 distribution of funds to the fund of funds for startups chapter vii penalties and prosecutions37 notification in passport 38 additional penalty 39 exceptions for special circumstances 40 disclosure of income and taxes 41 application of act no 22 of 2015 chapter viii general provisions42 service of notice generally 43 authentication of tax authority 44 rounding off of income, value of asset and tax 45 return of income not to be deemed invalid (iii) clauses46 cognizance of offence 47 condone delays in approval 48 income tax papers to be available for the purposes of this act 49 amendment of income tax act, 1961 50 power to remove difficulties 51 power to make rules bill no 206 of  2017 the indian diaspora and education infrastructure (brain drain cess) bill, 2017 by shri rabindra kumar jena, mp a billto provide for the imposition of a temporary cess to be levied on the foreign country income tax payments of ordinarily non-resident indian citizens; the procedure for dealing with the collection of such cess, and to provide for the establishment of a scholarship and research fund subject to service obligation and for matters connected therewith or incidental theretobe  it enacted by parliament in the sixty-eighth year of the republic of india as follows:— chapter i preliminary(3) it shall come into force on such date as the central government may, by notification in the official gazette, appointdefinitions2 (1) in this act, unless the context otherwise requires,—(a) "assessee" means—5(i) all non-resident indian citizens residing or intend to reside in other countries, states and territories, notwithstanding of the meaning as defined under clause (6) of section 6 of the income tax act, 1961; or43 of 1961(ii) non-resident indian citizens holding a valid work permit, if applicable;or(iii) non-resident indian citizens holding a valid immigrant visa, if applicable; or10(iv) non-resident indian citizens working as part of a contract with foreign governments, entities, and organizations, if applicable; or(v) every person who is deemed to be an assessee under any provision of this act; or15(vi) every person who is deemed to be an assessee in default under any provision of this act; (b) "assessment year" means the period of twelve months beginning on the1st day of april every year, unless otherwise specified by the central government in this behalf;20(c) "board" means the indian national scholarship and research board established under section 22;(d) "host country" means the country of residence for the assessee in question;43 of 1961(e) "income" as defined under clause (24) of the income tax act, 1961 and shall apply to all assessees;2543 of 1961(f) "income-tax officer" means a person appointed to be an income-tax officer under section 117 of the income tax act, 1961;30(g) "india" means the territory of india as referred to in article 1 of the constitution, its territorial waters, sea-bed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the territorial waters, continental shelf, exclusive economic zone and other maritime zones act, 1976 and the air space above its territory and territorial waters;43 of 1961(h) "resident" means a person defined as resident under clause (42) of section 2of the income tax act, 1961;43 of 1961(i) "non-resident citizens" means all indian citizens who not defined as "nonresident" under clause (30) of section 2 of the income tax act, 1961;35(j) "person" includes individuals; and (k) "legal immigrant status" refers to, by the assessee, the obtaining of, inter alia, the following:—(i) work permit; (ii) immigrant visa;40(iii) optional period of training (opt) certificate; (iv) government contract; (v) private entity contract; (vi) private or non-profit organization contract;(vii) international organization contract; (viii) any other visa that allows for full employment; and (ix) any other document issued in relation to legal employment in hostcountry543 of 1961 22 of 2015(2) the words and expressions used and not defined in this act but defined in the income tax act, 1961 and the undisclosed foreign income and assets (imposition of tax) act, 2015 shall have the meanings, respectively assigned to them in those acts chapter ii basis of charge10charge of cess3 (1) there shall be charged  on every assessee for every assessment year or untilthe year as provided in this act, after the commencement of this act, subject to the provisions of this act, a cess in respect of his total foreign income tax liability of the previous year at the rate as provided under section 915(2) the resulting revenue from the levy of the cess as mentioned under sub-section(1) and as collected by tax authorities under section 12 shall only be used for the purposes and in the manner as prescribed under section 24 and section 364 (1) every assessee who is non-resident citizen and is subject to the provisions of this act shall be identified as:identification of non-resident citizens20(a) an assessee who migrate from india to another country, by obtaining legalimmigrant status in the host country, through an official document issued by the host country, on a temporary or permanent basis, after the commencement of this act, for upto five years since the date of migration;43 of 196125(b) an assessees income of whom is subject to taxation, notwithstanding section6 and 7 of the income tax act, 1961, including any income accrued or is likely to be accrued within or outside the territory of india;(2) every assessee identified under sub-section (1) shall be contacted by the ministry of external affairs for the execution of the provisions of this act which shall maintain a register of non-resident citizens as per provisions of section 7:30provided that the employees of state governments and union territories as per the requirements of their job, who leave the territory of india for work related activities and overseas citizens of india (oci) shall be excluded from being subject to the provisions of this act:35provided further that the central government shall, by notification in the official gazette, update or amend the list of persons to be excluded from the provision of this act at any time after the commencement of this actvoluntary contribution to the funds5 every citizen, including ordinarily non-resident citizen, notwithstanding their status as an assessee, may voluntarily contribute to the funds listed under section 24 or the funds or trusts listed under section 8406 in the absence of notarized income tax returns filed by the assessee as persection 7, the following incomes shall be deemed to be received in the previous year :—income received in previous year43 of 1961(i) the annual accretion in the previous year to the balance at the credit of anemployee participating in a recognised provident fund, to the extent provided in rule 6 of part a of the fourth schedule to the income tax act, 1961 and the corresponding law in the host country;4543 of 1961(ii) the transferred balance in a recognised provident fund, to the extent providedin sub-rule (4) of rule 11 of part a of the fourth schedule to the income tax act, 1961 and the corresponding law in the host country;(iii) the official figure cited in the filing of income tax returns made by the assessee, as obtained from the tax collection agency of the host country, as per the provision of section 24registration57 every assessee, upon obtaining legal immigrant status, as  mentioned under section4 shall,—(a) register with the ministry of external affairs, as per provisions of section 4; (b) upon receiving income tax returns from the host country shall report to the ministry of external affairs a notarized copy of the income tax returns, along with the payment of cess, if applicable in such manner as may be prescribed108 (1) in computing the total liability of an assessee through his notarized copy of his income tax returns as per provisions of section 7, there shall be deducted, in accordance with and subject to the provisions of this section, the sums specified in sub-section (2)deductions for contributions to research and charity(2) the sums referred to in sub-section (1) shall be the following, namely:—15(a) any sum paid by the assessee in the previous year to a research association within the territory of india, which has as its object the undertaking of research in social sciences or stastical research or scientific research or to a university, college or other institution within the territory of india to be used for scientific research:2043 of 1961provided that such association, university, college or institution is for the time being approved for the purposes of clause (ii) of sub-section (1) of section 35 of the income tax act, 1961;43 of 1961(b) any sum paid by the assessee in the previous year after furnishing the certificate referred to in sub-section (2) or sub-section (2a) of section 35cca of income tax act, 1961 from such association or institution within the territory of india—25(i) which has as its object the undertaking of any programme of rural development, to be used for carrying out any programme of rural development in india; or(ii) which has as its object the training of persons forimplementing programmes of rural development;3043 of 196135(c) any sum paid by the assessee in any previous year ending on or before the31st day of march, 2002 to an association or institution, which has as its object the undertaking of any programme of conservation of natural resources or of afforestation, to be used for carrying out any programme of conservation of natural resources or of afforestation approved first time for the purposes of section 35ccb of the income tax act, 1961;43 of 1961(d) any sum paid by the assessee in any previous year ending on or before the31st day of march, 2002 to such fund for afforestation as is notified by the central government under clause (b) of sub-section (1) of section 35ccb of the income tax act, 1961;4043 of 1961(e) any sum paid by the assessee in the previous year to a rural development fund set up and notified by the central government for the purposes of clause (c) of sub-section (1) of  section 35cca of the income tax act, 1961;4543 of 1961(f) any sum paid by the assessee in the previous year to the national urban poverty eradication fund set up and notified by the central government for the purposes of clause (d) of sub-section (1) of section 35cca of the income tax  act, 1961;(g) any sums paid by the assessee in the previous year as donations to—(i) the national defence fund set up by the central government; or(ii) the jawaharlal nehru memorial fund referred to in the deed of declaration of trust adopted by the national committee at its meeting held on the 17th day of august, 1964; or(iii) the prime minister's drought relief fund; or5(iv) the prime minister's national relief fund; or (v) the national children's fund; or10(vi) any zila saksharta samiti constituted in any district under thechairperson of the collector of that district for the purposes of improvement of primary education in villages and towns in such district and for literacy and post-literacy activities; or(vii) the national blood transfusion council or to any state bloodtransfusion council which has its sole object the control, supervision, regulation or encouragement in india of the services related to operation and requirements of blood banks; or15(viii) any fund set up by a state government to provide medical relief tothe poor; or20(ix) the army central welfare fund or the indian naval benevolent fundor the air force central welfare fund established by the armed forces of the union for the welfare of the past and present members of such forces or their dependants; or(x) the andhra pradesh chief minister's cyclone relief fund, 1996; or (xi) the national illness assistance fund; or (xii) the chief minister's relief fund or the lieutenant governor's relieffund in respect of any state or union territory, as the case may be;25(xiii) the national sports fund to be set up by the central government; or (xiv) the national cultural fund set up by the central government; or (xv) the fund for technology development and application set up by thecentral government; or3044 of 1999(xvi) the national trust for welfare of persons with autism, cerebral palsy,mental retardation and multiple disabilities constituted under sub-section (1) of section 3 of the national trust for welfare of persons with autism, cerebral palsy, mental retardation and multiple disabilities act, 1999; or(xvii) the eastern assam social habitat welfare and relief set up by thecentral government; or3518 of 2013(xviii) the swachh bharat kosh, set up by the central government, other than the sum spent by the assessee in pursuance of corporate social responsibility under sub-section (5) of section 135 of the companies act, 2013; or4018 of 2013(xix ) the clean ganga fund, set up by the central government, wheresuch assessee is a resident and such sum is other than the sum spent by the assessee in pursuance of corporate social responsibility under sub-section (5) of section 135 of the companies act, 2013; or61 of 1985(xx) the national fund for control of drug abuse constituted under section7a of the narcotic drugs and psychotropic substances act, 1985; or45(xxi) any other fund or any institution to which this section applies; or(xxii) the government or any local authority, to be utilized for any charitable purpose; or5(xxiii) an authority constituted in india by or under any law enacted either for the purpose of dealing with and satisfying the need for housing, accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both; or(xxiv) the government or to any such local authority, institution or association as may be approved in this behalf by the central government, to be utilized for the purpose of promoting family planning10(3) no deduction shall be allowed under this section in respect of any sum exceeding the total cess liability of the assessee15(4) where a deduction under this section is claimed and allowed for any assessment year in respect of any payments of the nature specified in sub-section (2), deduction shall not be allowed in respect of such payments under any other provision of this act for the same or any other assessment yearcalculation of cess209 (1) if the central government provides that the cess specified under section 3 shall be charged for any assessment year at any rate or rates, cess at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions (including provisions for the levy of additional cess) of this act in respect of the total income tax payments of the previous year of every assessee, whereas upon the commencement of this act, the cess rates as specified under the schedule to this act shall apply:provided that where by virtue of any provision of this act, cess is to be charged in respect of the income tax payments for a period other than the previous year, cess shall be charged accordingly25(2) in respect of income chargeable under sub-section (1), income-tax shall be deducted at the source or paid in advance, where it is so deductible or payable under any provision of section 24(3) the tax authorities specified under section 11 shall receive all necessary information from the ministry of external affairs under the provisions of section 7 about the assessee for the execution of the provisions of this act30(4) tax authorities specified under section 11 shall present an annual report, including the recommendations for cess rates, to the central government, which shall include:—(a) comparative inflation between india and major host countries, as provided under section 18;35(b) foreign exchange rates, and the purchasing power parity between india andmajor host countries, as provided under section 18;(c) revision of tax brackets for the imposition of cess, according to the change in income distribution of assesees; and (5) the central government shall, by notification, amend the cess rates at any time40exemption for tax relief beneficiaries10 every assessee obtaining tax-relief from host countries for taxes paid in indiashall be exempted from the provisions of section 3, if the tax authorities, as specified under section 11, receives and verifies information as obtained under section 7tax relief upon re-entry4543 of 196111 (1) every assessee returning to reside in india, within a period of ten yearsfrom the date of migration, on a permanent basis, shall receive the benefits of twenty per cent rebate on the total cess paid by the assessee, if he files tax returns under the provisions of income tax act, 1961,—(a) an employee of the central government, a public or private company registered under the indian companies act, 2013, organization, local or state government, or non-profit  entity, and any similar entity or organization within the territory  of india; or(b) self-employed person within the territory of india;43 of 19615(c) business owner or investor within the territory of india,  as defined by theincome tax act, 1961(2) the central government shall, by notification, change the rebate on the total cess under the provisions of sub-section (1) in such manner as may be prescribed chapter iii tax management10tax authorities12 (1) the income-tax authorities specified in section 116 of the income tax act shall be the tax authorities for the purposes of this act(2) every income-tax authority shall in cooperation with the corresponding host country tax authority, exercise the powers and perform the functions of a tax authority under this act in respect of any person within his jurisdiction, and subject to the provisions of sub-section (6)15(3) subject to the provisions of sub-section (4) and (6), the jurisdiction of a tax authorityunder this act, in addition to the jurisdiction granted under the income-tax act, 1961 by virtue of orders or directions issued under section 120 of that act (including orders or directions assigning the concurrent jurisdiction), will also include the jurisdiction over nonresident indian citizens, subject to provisions of section 1920(4) the tax authority having jurisdiction in relation to an assessee who has no incomeassessable to income-tax under the income tax act shall be the tax authority having jurisdiction in respect of the area in which the assessee resides or carries on its business or has its principal place of business43 of 196125(5) section 118 of the income-tax act, 1961 and any notification issued thereundershall apply in relation to the control of tax authorities as they apply in relation to the control of the corresponding income-tax authorities, except to the extent to which said authorities may, by notification in the official gazette, otherwise direct in respect of any tax authority30(6) the tax authorities shall coordinate with the respective host country tax authorities either unilaterally or through the ministry of external affairs in the execution of the provisions of this act(7) the central government, shall, by notification, make rules to update the jurisdiction of tax authorities, or establish a body exclusively for the purposes of executing the provisions of this actrectification of mistake3513 (1) the tax authority may amend any order passed by it under this act so as to rectify any mistake apparent from the record(2) no amendment under this section shall be made after a period of four years from the end of the assessment year in which the order sought to be amended was passed40(3) the tax authority shall not make any amendment, which has the effect of enhancing the cess liability owed under the provisions of section 3 or reducing a refund or otherwise increasing, the liability of the assessee under the provisions of section 3 of this act, unless the authority concerned has given to the assessee adequate opportunity for appeal(4) the tax authority concerned may make an amendment under this section—(a) on its own motion; or45(b) on the application made to it by the assessee or, as the case may be, by the assessing officer (5) any application received by the tax authority for amendment of an order shall be decided within a period of six months from the end of the month in which such application is received by it(6) in case where the order has been made in an appeal or revision, the power of the tax authority to amend the order shall be restricted to matters other than those decided in appeal or revisionnotice of demand514 any sum payable in consequence of any order made under this act shall bedemanded by a tax authority by serving upon the assessee a notice of demand in such form and manner as provided under section 19 and section 42recovery of taxes15 the tax authorities shall execute the provisions of this act in relation to therecovery of cess liability from assessees as per the central acts passed in accordance the provisions of section 1810advance payment of taxes16 the tax authorities shall, in coordination with the ministry of external affairs,provide for advance payment of cess liability for assessees subject to the provisions of sections 3, 7, and 8, through a collection mechanism determined by the tax authorities under section 17differencies in tax brackets17 the tax authorities shall, by notification make rules in addition to the provisions ofsection 12, 13, 14, 15, 16, 17, 18, 19 and 21 of this act15revision of tax brackets and tax rates18  (1) the tax authorities, as identified under the provisions of section 12 shall makerecommendations to the central government on the revision of cess rates and tax brackets for the purpose of executing the provisions sub-sections (3) and (4) of section 920(2) the central government shall, by notification, make rules according to therecommendations sent by the tax authorities, for the purpose of executing the provisions of this act chapter iv cooperation with destination countries25 19 (1) the central government may enter into an agreement with the government ofany other country for—agreements with host countries(a) recovery of tax under this act and under the corresponding law in force inthat country:30(b) setting up mechanism for the cooperation between the tax authority underthe provisions of section 12 and the corresponding tax collection authority in the hostcountry:(c) granting of relief in respect of —(i) income on which tax has been paid both under this act and under the corresponding law in force in that country: or(ii) cess chargeable under this act:35(d) avoidance of double taxation of same income under this act and under thecorresponding law in force in that country;(e) exchange of information for the execution of the provisions of this act;(f) exchange of information for the prevention of evasion or avoidance of tax on foreign income chargeable under this act or under the corresponding law in force in that country, or investigation of cases of such evasion or avoidance:40(g) carrying out any other purpose of this act not expressly covered under clauses(a) to (d) or the corresponding law in force in that country (2) the central government may enter into an agreement with the government of any specified territory outside india for the purposes specified under sub-section (1)(3) the central government may, by notification, make such provisions as may be necessary for implementing the agreements referred to in sub-sections (1) and (2)5(4) any specified association in india may enter into an agreement with any specified association in the specified territory outside india for the purposes of sub-section (1) and the central government may by notification make such provisions as may be necessary for adopting and implementing such agreementdisambiguation of authority1020 any term used but not defined in this act or in the agreement referred to in subsections (1), (2) or sub-section (4) of section 24 shall, unless the context otherwise requires, and is not inconsistent with the provisions of this act or the agreement, have the meaning assigned to it in the notification issued by the central government and such meaning shall be deemed to have effect from the date on which the said agreement came into forcefreedom of emigration1545 of 186021 none of the provisions of this act, or any other rules made thereunder shall deny any citizen of india, the freedom to emigrate from the country, subject to reasonable restrictions, including the provisions of section 37 and the provisions under the indian penal code, 1860 22 (1) where on transfer of assets by virtue or in consequence whereof, either alone or in conjunction with associated operations, any income is payable to an assessee, the following provisions shall apply—tax liability for transfer from resident to an assessee20 25(a) where any resident has, by means of any such transfer, either alone or in conjunction with associated operations, acquire any rights by virtue of which he has, within the meaning of this section, power to enjoy, whether forthwith or in the future, any income of an assessee which, if it were income of the first- mentioned person, may be chargeable to income-tax, that income shall, whether it may or may not have been chargeable to income- tax apart from the provisions of section 93 of the income tax act, be deemed to be income of the first-mentioned person for all the purposes of this act;3043 of 1961(b) where, whether before or after any such transfer, any such resident receives or is entitled to receive any capital sum the payment whereof is in any way connected with the transfer or any associated operations, then any income which, by virtue or in consequence of the transfer, either alone or in conjunction with associated operations, has become the income of an assessee shall, whether it may or may not have been chargeable to income-tax apart from the provisions of section 93 of the income tax act, be deemed to be the income of the first-mentioned person for all the purposes of this act35(2) where any person has been charged to cess on any income deemed to be his underthe provisions of this section and that income is subsequently received by him, whether as income or in any other form, it shall not again be deemed to form part of his income for the purposes of this act40(3) the provisions of this section shall not apply if the resident in sub-section (1)shows to the satisfaction of the assessing officer that—(a) neither the transfer nor any associated operation had for its purpose or for one of its purposes the avoidance of liability to taxation; or(b) the transfer and all associated operations were bona fide commercial transactions and were not designed for the purpose of avoiding liability to taxation chapter v indian national scholarship and research fund23 (1) with effect from such date as the central government may, by the notification in the official gazette, specify in this behalf, there shall be established a board to be called as the indian national  scholarship and research boardcollection and distribution authorities5(2) the board shall consist of,—(a) union minister of human resource development, chairperson, ex-officio;10(b) the secretary, union ministry of human resource development; member, ex-officio;(c) the chairperson, university grants commission, member, ex-officio;(d) three persons one to represent the union ministry concerned with technical education, another to represent the union ministry of finance and the third to represent any other union ministry to be nominated by the central government in such manner as may be prescribed, members;15(e) three members of parliament, of whom two shall be elected by the house of the people from among its members and one by the council of states from its members, members;20(f) two members to be nominated by the state governments, on a rotational basis, member;(g) three other members having expertise in the field to be nominated by the ministry of human resource development on a yearly basis, member:provided that at least four members of the board shall be women:25provided further that one of the person nominated under clause (d) shall act as the member-secretary of the board(3) the board shall meet at least once a month to discuss the progress of the implementation of the provisions of this chapter, and the minutes of the meeting shall be made available to the public on the website of ministry of human resource development within one week of the meeting30(4) the board shall, with its power by order, make rules in addition to the provisions of sections 24, 25 26, 27, 28, 29 and 34 of this actconstitution of funds3524 (1) the central government shall, by notification in the official gazette, constitute the following funds, with an initial corpus of  not less than fifty per cent of the tax revenue generated from the cess imposed under section 3 and any additional funds where the central government may allocate from time to time:—(a) national scholarship fund of india; (b) international scholarship fund of india; (c) national research grant fund of india;40(2) the corpus fund in the national scholarship fund of india constituted under sub-section (1) shall be allocated by the board towards need-based merit scholarships, as per the provisions of section 25 and section 26 in universities within the territory of india as per the provisions of section 27 to eligible indian citizens, if,—(a) the student enrolls in a field of study prescribed under section 30 in one of the universities listed under section 27 of this act;(b) the student signs an agreement with the board, to be administered by the ministry of human resource development, to complete a service obligation, as provided under section 32 within the territory of india, immediately upon completion of the field of study mentioned under clause (a)5(3) the corpus fund in the international scholarship fund of india constituted under sub-section (1) shall be allocated by the board towards international education scholarships, as per the provisions of section 25 and 26 in universities outside the territory of india as per the provisions of section 28 to eligible indian citizens, if,—10(a) the student enrolls in a field of study prescribed under section 30 in one of the scholarship programs in the universities listed under section 28 of this act;15(b) the student signs an agreement with the indian national scholarship and research board, to be administered by the ministry of human resource development, to complete a service obligation, as provided under section 32 within the territory of india, immediately upon completion of the field of study mentioned in clause (a) (4) the corpus fund in the national research grant fund of india shall be allocated by the board in a manner prescribed under section 33need based scholarship distribution2025 (1) the board shall determine the recipients of the need-based scholarship, established under the sub-section (2) of section 24 in a manner that considers, inter-alia , the following criteria, only with  adequate material evidence, as determined by rules created by the board after the commencement of this act:—(a) financial ability (or inability) to pay the tuition, room and board fees of the university;25(b) the academic rank obtained in the corresponding entrance exam or higher secondary school examination results;(c) the field of study undertaken under section 30(2) the board shall, by notification, add any other criteria under sub-section (1) which it claims fit30(3) the financial ability (or inability) mentioned in clause (a) of sub-section (1) shall be determined by the board considering, among others, the annual income of the family, movable assets and number of dependents in the family in relation to the total cost of attendance of the university or institute mentioned under section 27 and 29reservation3526 the board shall, within its powers, in coordination with the  administration of the universities listed under section 27, provide for reservations of seats in universities, in fields of study prescribed under section 30, separately for the beneficiaries of the national scholarship fund of indiaeligible universities in india59 of 1961405 of 200729 of 2007 3 of 195627 the provisions of sub-section (2) of section 23 shall apply to the following universities in india, subject to change by the central government, by order, at any time after the commencement of this act, notwithstanding the provisions in institutions of technology act, 1961, the central educational institutions (reservation in admission)act, 2006, the university grants commission act, 1956 national institutes of technology act, 2007, and any such acts that may arise from the changes to this section made by the board:(1) indian institute of technology, madras;45(2) indian institute of technology, delhi; (3) indian institute of technology, kharagpur; (4) indian institute of technology, bombay;(5) indian institute of technology, kanpur; (6) indian institute of technology, roorkee; (7) birla institute of technology and science; (8) indian institute of technology, guwahati;5(9) national institute of technology, tiruchirappalli; (10) national institute of technology, warangal; (11) indian institute of science, bangalore; (12) jawaharlal nehru university, new delhi; (13) university of delhi; (14) indian institute of management, bangalore;10(15) indian institute of management, ahmedabad; (16) indian institute of management, calcutta; (17) national law school of india university, bangalore; (18) nalsar university of law, hyderabad; (19) national law university, jodhpur;15(20) west bengal national university of juridial sciences, kolkatascholarship abroad2028 the board shall, within its power, in accordance with the universities listed under section 29, set up undergraduate and postgraduate private scholarship funds to a specified number students studying abroad according to the rules prescribed by the board, in the respective universities, in fields of study specified under section 30 according to the administration of the university and not in contradiction of this act or any other act, to indian citizens in accordance with the provisions of section 24eligible universities abroad2529 the provisions of section 28 of chapter v shall apply to the following universitiesoutside india, subject to the change made by the central government, by order, at any time after the commencement of this  act, notwithstanding any such acts that may arise from the changes to this section made by the central government:(1) harvard university, united states of america;(2) yale university, united states of america; (3) columbia university, united states of america;30(4) stanford university, united states of america;(5) princeton university, united states of america; (6) eth zurich swiss federal institute of technology zurich, switzerland; (7) massachusetts institute of technology, united states of america;(8) university of oxford, united kingdom;35(9) university of cambridge, united kingdom; (10) london school of economics, united kingdom; (11) university of chicago, united states of america; (12) california institute of technology, united states of america; (13) university of california, berkeley, united states of america;(14) university of pennsylvania, united states of america;(15) university of california, los angeles, united states of america; (16) university college london, united kingdom; (17) johns hopkins university, united states of america;(18) duke university, united states of america;5(19) cornell university, united states of america;(20) northwestern university, united states of america;(21) university of michigan, united states of america; (22) university of toronto, canada; (23) carnegie mellon university, united states of america;10(24) national university of singapore, singapore; (25) university of edinburgh, united kingdom; (26) peking university, people's republic of china; (27) lmu munich, germany; (28) new york university, united states of america;15(29) georgia institute of technology, united states; (30) university of hong kong, hong kongeligible fields of study20 30 the board shall determine the eligible fields of study, subject to a of  yearly review by the board under the provision of section 31, for the executions of provisions of this chapter, which shall include inter-alia, undergraduate, post-graduate and research degrees in these broad disciplines:(1) science, technology, mathematics and engineering (stem); (2) law, government, public policy and politics; (3) research in social sciences; (4) medical sciences, health administration, and biotechnology25 31 the board shall have the power to add or remove fields of study including thebroad disciplines listed under section 30scope of expansion of eligible fields of study service obligation requirement32 the recipients of the scholarship fund as provided under sub-section (2) and (3) of section 23, shall meet the following service requirement obligation requirement for a minimum of five years, subject to revision by the board:30(a) the recipient must reside within the territory of india; (b) the recipient shall, if applicable, be employed in a multinational corporation,only if the income accrued from the employment is within the territory of india;35(c) the recipient shall, if applicable, be employed in the central government ofindia in public sector undertakings, or in any company registered under the companies act, 2013;(d) the recipient shall, if applicable, be self-employed, in a partnership, soleproprietor, partial or full owner of a company within the territory of india;(e) any economic or non-economic activity within the territory of india as deemedeligible by the board:provided that the following exceptions shall apply to the service obligation requirement, if after the,—5(a) the recipient has obtained a short-term research and development fellowship,or any work-related project, on-site visit, assignment or a similar position, in a reputed international university, organization, or entity, for a period of not less than two years;(b) the recipient has been admitted into a post-graduate program or researchdegree program in a reputed international university, the duration of said program shall not be longer than six yearsresearch fund1033 the board shall, within its powers, constitute a fund to be known as researchgrant fund of india to allocate the funds in the research projects taking place in universities, public and private institutions within the territory of india through a public competitive selection process, subject to revision by the board, as per the selection criteria listed under section 34selection criteria1534 the board shall consider, among other factors as determined by the board, the followingcriteria in the selection of research projects under the provision of sections 24 and 33:—(a) importance to scientific advancement; (b) importance to poverty alleviation; (c) importance to national defencecompliance and penalties2035 the board shall make rules by order, in order to provide for the  expansion of thefund, to revise and update the eligible institutions, individuals and recipients, to provide for strict compliance policies with penalties and other amendments to this sections that the board shall deem necessary, only through a unanimous decision by the members of the board chapter vi25 provisions regarding capital creationdistribution of funds to the fund of funds for startups3036 (1) the fund for startups, as established by the start up india action plan bythe central government, shall receive, a predetermined proportion by the centralgovernment, but not less than forty per cent of the tax revenue generated from the cess imposed under section 3 and any additional funds which the central governmentmay allocate, from time to time(2) the central government shall, by notification, make rules in addition to subsection (1) to specifically distribute the funds to startups functioning in the fields prescribed in section 30 chapter vii penalties and prosecutions35notification in passport4037 if an assessee has failed to comply with the provision of sections notification in12, 14, 15, 19, 24, and 33, after reasonable effort has been made to inform passport, the assessee of his failure to comply through the central government of india or the respective government of the host country and a grace period of six months has lapsed, a notification on his passport shall be issued by the ministry of external affairs, which shall prevent him from extending his visa status in any foreign country, as per provisions under section 19, and prevent him from leaving the territory of india, if applicable:provided that the notification may if removed within a period of twenty-four hours if—45(1) the central board of direct taxes, after review of the online- appeal form,as set up under section 45, dismisses the notification; or(2) payment of tax plus penalty under section 38 is made;(3) medical emergency as specified under section 39; (4) the provisions of the act, as mentioned under this section, are fulfilled, andan application for removal has been processed by the indian national scholarship and research board5additional penalty38 the assessing officer may, direct that, in a case where tax has been computedunder sections 12 and 19, in respect of foreign income and tax payments, and the assessee has failed to pay his obligation, if any, as identified by the authorities under section 12, he shall pay by way of penalty, in addition to tax—10(1) twenty-five per cent, tax penalty on the failed tax payment if paid within sixmonths of non-payment of tax payment;(2) seventy five per cent, tax penalty, on the failed tax payment if paid within oneyear of non-payment of tax payment;(3) three times the failed tax payment, or a surcharge of $10,000, whichever ishigher, upon reentry into the country15 39 no penalties provided under sections 37, 38, and 41 of this act shall applyof,—exceptions for special circumstances20(a) a medical emergency for the assessee or an immediate family member, asascertained by medical professionals, or if the assessee produces a verifiable medical certificate proving requirement of travel either to and from the country, then a temporary removal of the notification under section 37 shall apply for thirty calendar days and upon the cessation of said period thirty days the notification will automatically be reapplied; or25(b) a medical emergency requires immediate significant medical expenses, andthe assessee produces (i) medical certificate proving requirement of travel (ii) medical certificate showing significant expenses the a temporary removal of the notification, allowing international travel, shall apply for thirty calendar days and upon the cessation of said period of thirty days the notification will automatically be reapplied43 of 1961disclosure of income and taxes3043 of 196140 notwithstanding clause (6) of section 6 of the income-tax act, an assessee isrequired to furnish a return of his income for any previous year, notwithstanding sub-section(1) of section 139 of the income-tax act or by the provisions to that sub-section, and who at any time during such previous year(i) held any asset (including financial interest in any entity) located outsideindia as a beneficial owner or otherwise; or35(ii) was a beneficiary of any asset (including financial interest in any entity)located outside india; or(iii) had any income from a source located outside india, and fans to furnishsuch return before the end of the relevant assessment year, the assessing officer may direct that such person shall pay, by way of penalty, a sum of ten per cent of the value of such asset:40provided that this section shall not apply in respect of an asset, being one or morebank accounts having an aggregate balance which does not exceed a value equivalent to five hundred thousand rupees at any time during the previous year41 the provisions of sections 44,1 45, 46, 47, 52, 53, 54, and 55 the back money(undisclosed foreign income and assets) and imposition of  tax act, 2015application of act no 22 of 2015 chapter viii general provisionsservice of notice generally542 (1) the service of any notice, summons, requisition, order or anyother communication under this act (herein referred to in this section as generally communication") may be made by delivering or transmitting a copy thereof, to the person named therein,—(a) by post or by such courier service as may be approved by the assigned taxauthorities, as mentioned under section 12;5 of 190810(b) in such manner as provided under the code of civil procedure, 1908 for thepurposes of service of summons;(c)  in the form of any electronic record as provided in chapter iv of the informationtechnology act, 2000; or2 of 2000(d) by any other means of transmission of documents, including fax message orelectronic mail message, as may be prescribed15(2) the tax authorities mentioned in section 12 of this act may make rules providing forthe addresses including the address for electronic mail or electronic mail message to which the communication referred to in sub-section (1) may be delivered or transmitted to the person named therein201 of 2000(3) in this section, the expressions "electronic mail" and "electronic mail message", shall have the same meanings as assigned to them in the explanation to section 66a of the information technology act, 200043  (1 ) a notice or any other document required to be issued, served or given for thepurposes of this act by any tax authority shall be authenticated by that authorityauthentication of tax authority25(2) every notice or other document to be issued, served or given for the purposes ofthis act by any tax authority shall be deemed to be authenticated, if the name and office of a designated tax authority is printed, stamped or otherwise written thereon(3) in this section, a designated tax authority shall mean any tax authority authorized by the central board of direct taxes to issue, serve or give such notice or other document after authentication in the manner as provided in sub-section (2)3044 (1) the amount of cess liability computed in accordance with section 3 of this actshall be rounded off to the nearest multiple of one hundred rupeesrounding off of income, value of asset and tax(2) any amount payable or receivable by the assessee under this act shall be roundedoff to the nearest multiple of ten rupees35(3)the method of rounding off under sub-section (1) or under sub-section (2), shall be such as may be prescribedreturn of income not to be deemed invalid4045 no return of income, assessment, notice, summons or other proceeding, furnishedor made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of income, assessment, notice, summons or other proceeding if such return of income, assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this actcognizance of offence46 no court inferior to that of a presidency magistrate or a magistrate of the first classshall try any offence under this actcondone delays in approval47 where, under any provision of this act, the approval of the central government or the tax authority as defined under section 11 of this act, is required to be obtained before a specified date, it shall be open to the central government or, as the case may be, the authority to condone, for sufficient cause, any delay in obtaining such approval43 of 19615income tax papers to be available for the purpose of this act48 notwithstanding anything contained in the income tax act, 1961, all informationcontained in any statement or return made or furnished under the provisions of that act or obtained or collected for the purposes of said act may be used for the purposes of this act1043 of 1961amendment of income tax act, 196149 the central government shall, upon the commencement of this act, pass necessaryamendments to sections 5 and 6 of the income tax act, 1961, if any such amendments are required, for the purpose of executing the provisions of this actpower to remove difficulties50 (1) if any difficulty arises in giving effect to the provisions of this act, the central government may by order, not inconsistent with the provisions of this act, remove the difficulty:15provided that no such order shall be made after the expiry of a period of two years fromthe date on which the provisions of this act come into force(2) every order made under this section shall be laid before each house of parliamentpower to make rules2051 (1) the central board of' direct taxes, in compliance with section 11, section 12and section 18 of this act may, subject to the approval of the central government, by notification in the official gazette, make rules for carrying out the provisions of this act(2) in particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters:—25(a) the manner of determination of the value of cess liability referred to insection 3;(b) the tax authority to be prescribed for any of the purposes of this act; (c) the form and manner of service of a notice of demand under section 51 ad 54;(d) the form in which any appeal, revision or cross-objection may be filed underthis act, the manner in which they may be verified and the fee payable in respect thereof;30(e) the form in which the assessing officer may draw up the statement of taxarrears under all sections under chapter iii of this act;(f) the manner in which the sum is to be paid to the credit of central governmentunder the provisions of this act;(g) the formation, rules and regulations for an online appeal form35(3) the power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date of commencement of this act and no retrospective effect shall be given to any rule so as to prejudicially affect the interest of assessees(4) the central government shall cause every rule made under this act to be laid assoon as may be after it is made before each house of parliament while it is in session for asuccessive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule5 statement of objects and reasonsthe issue of growing emigration of high-skilled labourers from india to highly developed countries has increased manifold in recent times, most of the times, such non-resident fails to file return of income tax the bill also directs the central government to use the revenue generated from the said cess in the creation of a scholarship and research fund and an addition of funds to the fund for funds for startups (ffs) set up by the central governmenthigh-skilled labourers in science, technology, engineering and mathematics (stem)industries possess a higher degree of mobility as compared to every other worker, and therefore are able to easily relocate to countries that offer them the highest salaries while as indian citizens they are entitled to the freedom of movement, and as guaranteed by the un declaration of human rights, they have the right to emigrate from their own country, highskilled emigrants create a pressing public policy crisis in indiafirst, by moving out of the country, the high-skilled emigrants deprive india of innovation, research and industrial development that gets created in the developed destination countries second, they create a massive loss in tax revenue that is essential to provide to measures of poverty alleviation, and for the development of the country therefore, in order to justifiably impose the responsibility that the emigrants bear to contribute to the growth of the country, but at the same time respect their right to emigrate, a globally-levied domestic development cess is required, the need, is, therfore to introduce a brain drain cess on such non-resident indian citizenthe brain drain cess is justified on following: (i) non-resident indians (nris) have the rights extended to every citizen of indiaincluding, the right to vote in local, state and national elections however, under the income tax act, these residents do not pay taxes to the indian government if they live outside india for more than 180 days per year this has led to a situation of "representation without taxation", meaning they enjoy the benefits of an indian citizenship without the obligations that come with it(ii) the indian government subsidizes science and technology education through institutions like the indian institute of technology, indian institute of management, and other public universities in order to cultivate domestic technological innovation and research however, as argued above, the engineers and scientists that graduate from these universities access their right to emigrate to better opportunities and move out of the country, rendering the public investment without fruit this could address the particular problem by instituting a service obligation requirement for recipients of scholarships and research funds, which requires them to reside within the territory of india for a specified period of time this is done only to recipients of scholarships, similar to a policy in singapore, because a large-scale imposition of such a service obligation would be unconstitutional(iii) high-skilled emigration creates a large distributional issue in taxation within the country the nri population, who typically fall in the top 1% of the income distribution in the country, fail to pay their fair share of taxes, leaving more of the tax burden on the poorer parts of the country by including a cess that is applied to non-resident indians, poorer indians can be provided with a tax relief, thereby making our tax policy more justthe revenue arising from the cess, estimated to be in the vicinity of ten thousand crore rupees, can then be used to address serious issues within our country that contributes to the reasons high-skill labourers have when choosing to leave the country, such as, inter-alia, lack of high-paying engineering and technology jobs and lack of research and development funding and infrastructurehence this billnew delhi;rabindra kumar jenajuly 3, 2017 ———— president's recommendation under articles 117 (1) and 274 (1) of the constitution————[copy of letter no 370152/51/2017-tpl dated 13 november, 2017 from shri arun jaitley, minister of finance and corporate affairs to the secretary-general, lok sabha] the president, having been informed of the subject matter of the indian diaspora and education infrastructure (brain drain cess) bill, 2017 by shri rabindra kumar jena, member of parliament, recommends under articles 117(1) and 274(1) of the constitution, the introduction of the bill in lok sabha financial memorandumclause 23 of the bill seeks to provide for establishment of indian national scholarship and research board it also provides for appointment of members to the board the bill therefore, if enacted, would involve expenditure from the consolidated fund of india it is estimated that a sum of rupees twenty crore would be involved as recurring expenditure per annuma non-recurring expenditure of rupees ten crore is also likely to be involved memorandum of delegated legislationsub-section (3) of section 6 empowers the ministry of external affairs to make rules for carrying out the provisions of that section and make rules in addition to the provisions of that sectionsub-section (2) of section 10 empowers the central government to change the rebate on the total cess under the provisions of sub-section (1) of section 10 and add rules in addition to section 10sub-section (7) of section 11 empowers the central government to make rules in addition to section 11, to update the jurisdiction of tax authorities, or establish a body exclusively for the purposes of executing the provisions of this actsection 16 empowers the tax authorities to make rules in addition to the provisions of section 11, section 12, section 13, section 14, section 15, section 16, section 17, section 18 and section 20 of this actsub-section (2) of section 17 empowers the central  government to make rules according to the recommendations sent by the tax authorities, for the purpose of executing the provisions of this actsub-section (5) of section 22 empowers the indian national scholarship and research board to make rules in addition to the provisions of section 23, section 24, section 25, section 26, section 27, section 28 of this act, as provided under section 34 of this actsection 34 empowers the indian national scholarship and research board to make rules in addition to all sections of chapter v of this act  in order to provide for the expansion of the fund, to revise and update the eligible institutions, individuals and recipients, to provide for strict compliance policies with penalties and other amendments to this sections that the board shall deem necessary, only through a unanimous decision by the members of the boardsub-section (2) of section 35 empowers the central government to, by notification, make rules in addition to section 35(1) to specifically distribute the funds to start-ups functioning in the fields prescribed in section 29 of this act sub-section (2) of section 41 empowers the tax authorities mentioned in section 11 of this act to make rules providing for the addresses including the address for electronic mail or electronic mail message to which the communication referred to in sub-section (1) may be delivered or transmitted to the person named thereinsub-section (1) of section 44 empowers the central board of direct taxes, in compliance with section 11, section 12 and section 18 of this act, subject to the approval of the central government, by notification in the official gazette, to make rules for carrying out the provisions of this actas the matter in respect of which rules may be made are generally matters of procedure and administrative details and it is not practicable to provide for them in the bill itself, the delegation of legislative power is, therefore, of a normal character the schedule[see section 9(1)] supplementary  notes 1 calculation of tax revenue:the number of non-resident citizens of india is estimated to be close to 10 million people, the vast majority of whom live in the united states, united kingdom,  australia and the middle east particularly, the high-skilled emigrants that pertain to the scope of this bill reside in developed countries in north atlantic, predominantly employed in the high-tech service and financial service industries according to our calculations, in the last five years alone, 320,000 people have emigrated to the united states on a temporary work visa and permanent residency, and a further 130,000 citizens are studying and conducting research in universities in the united states the minimum salary condition for a temporary work visa in the united states is $65000, which serves as an indicator of the distribution of income of high-skilled non-resident indian citizenssince we have placed a limit of five years since emigration, and a minimum salary requirement, the total number of non-resident citizens, living in all countries outside india, that would be impacted by the passage of this bill is estimated to be around 19 million citizens the average tax revenue from the salient tax brackets introduced in the bill is detailed below given that the income is normally distributed across the income brackets, with a skew towards the high-end, the estimated generation of revenue is $15 billion per year, or approximately 10,000 crore rupees per year 2 brain drain cess rates, as per income brackets:| income in usd       | marginal brain     | approximate   | value in indian         ||---------------------|--------------------|---------------|-------------------------|| (equivalent         | drain cess         | liability to  | rupee                   || value)              | (on tax liability, | government of | (inr)                   || approximated        | india (in usd)     |               |                         || from 2017           |                    |               |                         || us tax code)        |                    |               |                         || $0-$65000           | 0%                 | 0             | 0                       || $65,000 - $100,000  | 3%                 | $167-$310     | rs 10800-rs 20100     || $100,000 - $200,000 | 5%                 | $510-$2325    | rs 33150-rs 151000    || $200,000 +          | 7%                 | $2325 +       | rs 151000-rs 151000 + |———— a billto provide for the imposition of a temporary cess to be levied on the foreign country income tax payments of ordinarily non-resident indian citizens; the procedure for dealing with the collection of such cess, and to provide for the establishment of a scholarship and research fund subject to service obligation and for matters connected therewith or incidental thereto————(shri rabindra kumar jena, mp)