Supply of return forms: mail blank income-tax and wealth-tax return and challan forms to registered assessees, with compliance reporting.
Income-tax Officers must dispatch by ordinary post two copies of income-tax return forms with challan forms for self-assessment tax and two copies of advance tax statements to taxpayers on departmental registers; two copies of wealth-tax return forms must also be sent to registered wealth-tax assessees. Bulk mailing supplements counter and selected post office supply. Where returns are not received by the due date, notices for non-filing must be sent separately by registered post or notice servers. Commissioners must submit a compliance report by 31 May confirming distribution of forms.

Excise duty as manufacturing cost: require inclusion in inventory valuation and reassessment where omitted under tax law.
Excise duty and customs duty are to be treated as manufacturing expenses and included as an element of cost for inventory valuation. Where pending assessments have not included these duties in cost price, action under the proviso to the relevant income tax accounting provision should be taken; where assessments are completed, steps permitted by law may be taken to reopen them.

Deduction under Section 194C remains on gross contractor payments, including materials supplied by specified persons.
Deduction at source for payments to contractors and sub-contractors must be made on the gross payment, including the cost of materials supplied by the Government or any other specified person; the Supreme Court decision cited concerns income computation not the withholding provision, and paragraph 1(v) of the Board's circular is therefore affirmed without modification.

House Rent Allowance exemption applies when a special employer allowance meets actual rent for residential accommodation occupied by the employee.
Section 10(13A) exempts a special allowance granted by an employer to meet rent actually incurred for residential accommodation, subject to Rule 2A calculation and three conditions: employer granted special allowance, allowance specifically to meet actual rent, and occupation of the accommodation by the employee. An individual paying rent to an HUF of which he is a member may claim the exemption if he produces proof of payment (including a receipt signed as Karta); the rent will be assessable as income of the HUF.

Change of jurisdiction: ensure Tribunal is notified of address transfer so service and limitation run from the correct Commissioner.
The procedure mandates that when jurisdiction over a case is transferred, the transferring Income-tax Officer must notify the ITAT Registrar and record the notice in the transfer memo with evidence of service; the transferring Commissioner must return any Tribunal order served on him to the Registry and declare the transferee Commissioner's jurisdiction; the transferee Commissioner must file a reference under section 256(1) or invoke the proviso for additional time where necessary; service on the transferring Commissioner remains valid if the transfer occurred after the Tribunal order, and Departmental Representatives should inform the Tribunal of known address changes.

Holiday under Negotiable Instruments Act is not treated as a public holiday for AGM scheduling under company law.
When days are declared holidays under the Negotiable Instruments framework solely for half yearly bank or treasury account closings, those days shall not be treated as public holidays for the purpose of section 166, and therefore do not alter the timetable or permissibility of convening annual general meetings under the companies regime.

Statement of irrecoverable demand must be reported annually for consolidation and onward statistical reporting.
All Commissioners must submit an annual statement of remission or abandonment of claim to revenue compiled from the register of Irrecoverable demand maintained by each ITO to the Director of Inspection (Research, Statistics & Publication) by 30 June following the financial year; the Director will consolidate the data and forward a consolidated statistical return to the Board by 31 July, and accuracy must be ensured for parliamentary submission and receipt audit.

Approval of research programme allows contributors beyond original sponsors to claim weighted deduction subject to certificate and cost cap.
Approval of a scientific research programme operates at the programme level so any person may pay into an approved programme and claim the prescribed weighted deduction provided total contributions do not exceed the programme's approved cost; the assessing officer must obtain from the contributor a certificate from the research institution certifying the amount paid and that aggregate contributions do not exceed the approved cost.

Maintenance of official correspondence diary requires stenographers to record Board communications and submit weekly for commissioner review.
Stenographers must maintain an official diary recording all letters from the Board and directorates, submit it weekly to the Commissioner for scrutiny of specified columns to ensure prompt action or reports, and permit the Commissioner to round off serial numbers when final reports are sent. Communications requiring periodical reports must be entered in the calendar of returns and noted in the diary; receipt should be acknowledged and action intimated to the Board.

Exemption from income tax on freight earnings applies only to bilateral shipping; third-country cargo remains taxable.
Agreements provide a mutual exemption from income tax on freight earnings and turnover tax for vessels on bilateral voyages between contracting ports, including time chartered vessels, based on reciprocity. The exemption is limited to cargo between the two countries; freight earnings from cargos meant for third countries remain taxable.

Invitation of deposits requires prescribed statutory advertisement; non compliant announcements expose companies to penalties under deposit law.
Announcements that merely notify alterations in deposit terms, including changes in interest rates, are amendments to earlier statutory advertisements and do not amount to an invitation of deposits. If the announcement, however, indicates continued acceptance of deposits, higher rates for renewals or fresh deposits, or availability of application forms with the company or its agents, it constitutes an invitation of deposits and must be published in the statutory form prescribed by the Companies (Acceptance of Deposits) Rules; non compliance attracts statutory penalties.

Venue for annual general meeting: postal limits may authorise AGM location when wider than municipal limits.
An annual general meeting may be held at a location within the postal limits of the city where the registered office is situated; section 166(2) is to be read as encompassing both postal limits and local body limits, and where these differ the wider boundary determines the permissible AGM venue, permitting companies to choose a convenient place within the broader limits of the city of the registered office.

Reduction or waiver of interest permitted where voluntary disclosure and pre-detection tax payment show sufficient cause to waive interest.
The Board directs liberal invocation of the power to reduce or waive interest under Rule 40(5) where an assessee voluntarily discloses additional income and pays tax before detection; such voluntary disclosure and payment shall be deemed sufficient evidence of being prevented by sufficient cause from filing a timely return for the purposes of Rule 117A(v), justifying waiver of interest otherwise leviable under the tax interest provisions.

Summary of High Court decisions in income tax and listing of special leave petition refusals and non-grants.
Income tax administrative instruction 1383/CBDT (February 1981) summarises High Court decisions considered by the Board for the calendar year 1978, excluding matters already reviewed, and lists cases where Special Leave Petitions were refused by High Courts and accepted by the Board, as well as cases where the supreme court did not grant Special Leave Petitions.

Exemption for United Nations pensions extends tax-free treatment where pensions are included within 'salary' definition under tax law.
Pensions paid by the United Nations to former officials are exempt from income tax where the tax statute's definition of salary includes pension, the U.N. (Privileges & Immunities) Act exempts salaries and emoluments paid by the United Nations, and the tax administration has accepted the judicial view and instructed that pending appeals be conceded and references withdrawn.

Summary assessment exclusion of specified salary and property cases mandates full scrutiny and supervisory review procedures.
Instances producing unintended advantage after deletion of certain discretionary sub-clauses must be excluded from the summary assessment scheme and assessed after scrutiny; these include ineligible salary exemptions and allowances, non-inclusion of clubbed family income, failure to add back disallowed interest, duplicate standard deduction claims, improper gratuity treatment, incorrect perquisite exemptions, and excess property-income deductions. First-time or newly disclosed property income must also be taken out of summary assessment. Commissioners should initiate review or select sampled cases for post-facto scrutiny and circulate guidance to staff.

Fourth counterfoil of chalan forms must be attached to TDS statement/certificate, not to the return of income.
Chalan Forms Nos. 2 and 8 for TDS on non-salary payments are issued with four counterfoils: the bank retains the first two, the taxpayer keeps the third, and the fourth counterfoil must be attached to the statement/certificate of tax deducted at source in the prescribed forms (Forms 25, 26, 26A, 26B, 26BB, 26C, 26D and 27) rather than to the return of income; taxpayers who used prior three-counterfoil chalans need not attach a counterfoil for those payments, but future payments must use the revised four-counterfoil chalans.

Sample scrutiny selection tightened to expand random pre-assessment checks and stricter monitoring and reporting requirements.
Instruction revises sample scrutiny selection and monitoring: selection only in the first week of August; increased selection quotas by case categories; D&CR entries and sample scrutiny register to be maintained; monthly progress reports to reflect register entries; Commissioners and CsIT to report lists and aggregate figures; Inspection Division to verify compliance; detailed examination reports to be left on files; total wealth statements to be obtained and scrutinised; wrongful deductions trigger scrutiny of subsequent years; concealment to attract maximum penalty and possible prosecution.

Tax deduction adjustment: employers may offset excess TDS withheld for lower income employees against future salary TDS.
Employers may treat tax deducted earlier on employees whose estimated annual salary falls below the raised exemption as surplus payments and adjust those amounts against tax deductible from other employees' salaries in subsequent months of the same financial year. Employers must reduce monthly tax remittances and progressive figures by the surplus amount, notify the Accountant-General with duplicate lists of affected employees and refunded amounts, and indicate refunded excess in individual tax deduction certificates. Adjustments cannot be made after the financial year; otherwise employees must claim refunds from the Income-tax Officer. The procedure applies similarly to Central Government employees.

Writing off tax arrears for Bangladesh income limited where claims or ex-gratia payments exist; partial relief allowed.
Writing off tax arrears for income earned in Bangladesh where claims have been filed with the custodian of Enemy property or ex-gratia payments made should not be processed for write-off except where the total value of claims and other assets is less than 25% of the tax arrears, in which case partial write-off may be considered under existing instructions; officers should also seek to reduce demands by granting DIT relief on certified documents as done for other countries.