Taxation Laws (Amendment) Act, 1975

Settlement Commission powers expanded to settle tax cases, reopen proceedings and grant immunity subject to full disclosure.

The Amending Act introduces broad reforms to exemptions, trust taxation and compliance: expands the definition of child; creates a new exemption category for national and notified charitable funds; revises section 11 to require application of 75 percent of income with extended time and options and authorises alternate application where original purposes cannot be met; prescribes specific investment modes for trust funds with phased applicability; mandates account-keeping for specified professionals and businesses; treats unexplained expenditures and non-bank hundi payments as assessable; empowers audit directions and best-judgment assessments for non-compliance; establishes a statutory Settlement Commission with power to admit, investigate, settle or reopen cases and, subject to conditions, grant immunity; and overhauls the penalty, PAN and reporting regimes to strengthen enforcement and administrative procedures.