Penalty under section 271(1)(c): not imposed when tax under normal provisions is lower than MAT for pre operative cases.
Where tax computed under ordinary provisions is less than tax payable under the deeming provisions for Minimum Alternate Tax, penalty for concealment under section 271(1)(c) cannot be imposed with reference to additions or disallowances made under normal provisions for periods prior to the prospective operative date of the substituted Explanation; if MAT income is adjusted for those periods, penalty applicability depends on the nature of the adjustment, the position extends to analogous MAT provisions, and authorities are directed not to institute or to withdraw appeals on this ground.

Recording of a satisfaction note is required before transmitting search records; noncompliant appeals should be withdrawn.
Recording of a satisfaction note is a mandatory precondition for invoking provisions permitting assessment of persons other than the searched person; it must be prepared by the assessing officer dealing with the searched person before transmitting records and may be recorded at initiation, during, or immediately after assessment proceedings. The requirement applies even when the same officer handles both persons, and analogous provisions for other persons are to be treated similarly. Litigation not meeting these criteria should be withdrawn or not pressed.

Limited scrutiny procedures require issue specific questionnaires and notice of selection, with conversion to full scrutiny if broader evasions emerge.
Instruction limits applicability to CASS 2014 cases selected solely on AIR/CIB/26AS parameters; AOs must confine enquiries and questionnaires to those specific data issues and notify assessees of reasons for selection. Under CASS 2015, cases are designated as Limited or Complete Scrutiny: Limited Scrutiny requires immediate communication of reasons, restricted questionnaires under section 142(1), and expedited hearings, but may be converted to Complete Scrutiny upon written approval by a senior tax officer if additional significant escapement requiring broader verification is found. Proposed additions/disallowances require a show cause notice and an opportunity to be heard consistent with natural justice.

Issuing Questionnaire in scrutiny cases: initial notice must specify required documents and evidence for effective taxpayer compliance.
Assessing Officers must, when issuing the first scrutiny notice under section 143(2), also issue a notice under section 142(1) accompanied by a questionnaire specifying the particular documents, accounts, information and evidences required to be furnished by the taxpayer in the scrutiny assessment proceeding, to ensure clear communication of compliance requirements and avoid unnecessary hardship and time wastage.

TDS on court-directed fixed deposit interest suspended until court determines beneficiary; TDS applies thereafter to recipient.
Interest on fixed deposits made in the name of the Registrar General of the Court or by a depositor on court directions is not subject to TDS under section 194A while court proceedings to determine the beneficiary are pending because the recipient, amount and year of receipt are unascertainable. After the court determines ownership, section 194A applies and TDS must be deducted to the credit of the recipient; the Board has accepted this position and advises withdrawal or non-prosecution of contested appeals.

Place of Effective Management determines company residency based on where key management and commercial decisions are made.
POEM determines company residency: it is where key management and commercial decisions for the business as a whole are, in substance, made. Companies meeting the "active business outside India" test (objective thresholds for passive income, assets, employees and payroll) are presumed to have POEM outside India if a majority of board meetings occur outside India unless real decision-making is exercised in India. For other companies POEM requires (1) identifying who actually makes key decisions and (2) locating where those decisions are made, with emphasis on board location, delegation, head office and senior management, and substance over form.

Minimum Alternate Tax inapplicability clarified for foreign companies without permanent establishment, directing reassessment and statutory amendment.
Section 115JB shall not apply to a foreign company (including FIIs/FPIs) if: (i) it is resident of a country with which India has a Double Taxation Avoidance Agreement and does not have a permanent establishment in India under that agreement; or (ii) it is resident of a country without a DTAA and is not required to seek registration under the Companies Act registration provisions. Field authorities are directed to complete pending assessments in accordance with this position and an amendment through the Finance Bill, 2016 was proposed.

Designation of income-tax authority for declarations under the Black Money Act appoints an officer to receive overseas asset disclosures.
The Central Board of Direct Taxes, exercising powers under the Income-tax Act and the Black Money Act, designates Shri Rahul Navin, CIT (TP)-1, New Delhi, as the designated income-tax authority for receiving and handling declarations of undisclosed foreign income and assets under the Act, effective from 18th December, 2015 until further orders.

Employer contributions to employee welfare funds deductible if deposited by the return-filing due date, limiting disallowances.
Employer contributions to provident, superannuation, gratuity or other employee welfare funds are deductible if deposited on or before the due date for furnishing the return of income; the judicially recognized retrospective application of the payment-basis regime treats such contributions like tax or cess payments for this purpose, and departmental officers are directed not to disallow or to withdraw appeals based solely on post-due deposit. This circular excludes employee contributions governed by a separate deduction provision.

Electronic contact requirement: notices must include officer email and phone to facilitate taxpayer interface information.
All notices, letters and communications issued by officers of the Department of Revenue, including CBDT, its directorates and field formations, must include the officer's e-mail address and office telephone numbers to facilitate electronic interface with taxpayers and the public. The requirement applies to every officer signing communications and supersedes the earlier letter dated 02.12.2015; offices are directed to strictly comply with this administrative instruction.

Extension of advance tax due date for certain assessees in Tamil Nadu and Puducherry to a later December deadline.
The Central Board of Direct Taxes extends the last date for payment of the December instalment of advance tax for the relevant financial year for all corporate and non-corporate assessees in the State of Tamil Nadu and the Union territory of Puducherry, exercising powers under Section 119(2)(a) of the Income-tax Act, 1961, thereby moving the mid-December deadline to a later date in December for those jurisdictions.

Pre-filling of TDS data enables easier online rectification, reducing errors and easing taxpayer compliance on the e filing portal.
A new facility enables pre-filling of TDS schedule on the Income-tax Department's e filing portal to support online rectification of incorrect TDS details, supplying existing TDS data into the rectification interface so taxpayers can correct or update particulars without retyping entire schedules and thereby reduce errors and processing delays.

Defective return notices to FIIs/FPIs clarified: not defective if SEBI registration, no PE in India, required information provided.
Clarification provides that returns of FIIs/FPIs will not be treated as defective under section 139(9) where the FII/FPI is registered with SEBI, has no Permanent Establishment/place of business in India, and has furnished the basic information required under section 139(9)(f) if there is business income; processing for returns with SEBI registration numbers is being undertaken at CPC Bengaluru, and FIIs/FPIs for earlier years may supply such details via the Income-tax Department e-filing portal in response to prior notices.

Collegium review of appeals enables withdrawal of prosecutable-deficient High Court tax appeals to curb frivolous litigation.
Extension of the collegium mechanism requires regional collegia, including the jurisdictional CCIT and nominated senior officers, to review all appeals pending before High Courts and identify those that are not prosecutable for withdrawal or to be marked as not pressed. Pr. CCITs must prepare an accurate list of pending appeals in consultation with High Court registries and standing counsels, present cases for review, and submit an action-taken report and monthly statements in the prescribed annexed format detailing appeals reviewed and appeals withdrawn or not pressed.

Monetary limits for departmental appeals revised; appeals now only when tax effect exceeds prescribed thresholds, with defined exceptions.
Appeals in income-tax matters should be filed only when the tax effect of disputed issues exceeds prescribed monetary thresholds; tax effect means the difference between tax on assessed total income and tax that would have been chargeable had disputed income been excluded, excluding interest except where interest is in dispute. Assessing Officers must compute tax effect separately for each assessment year; appeals may be lodged only for years where the tax effect exceeds limits, with composite-order and multiple-assessee rules requiring consolidated treatment. Commissioners must record non-filing due solely to monetary limits, and specified categories of adverse decisions must be contested irrespective of tax effect. The instruction applies retrospectively to pending appeals before High Courts and Tribunals.

Impersonation risk: verify caller credentials, obtain a callable number and senior approval before sharing sensitive information with external agencies.
Recipients of unsolicited requests must not disclose information without first verifying caller credentials by obtaining a callable number, independently verifying that number, and sharing information only after approval from an appropriate senior official; heads of Ministries, Departments, PSUs and sensitive organisations must sensitize staff and institute verification-and-approval controls to protect sensitive installations from impersonation and forged-document attempts.

Extension of TDS/TCS deposit deadline: due date for November withholdings and collections extended for specified state deductors.
The due date for deposit of tax deducted at source and tax collected at source in respect of deductions or collections made during November 2015 by deductors located in the State of Tamil Nadu is extended from the original statutory due date to a later specified date; the extension is issued under the Central authority's statutory power and applies only to the stated month and territorial scope.

Small-value refunds in non-CASS cases to be expedited for assessment years, directing officers to process and issue them promptly.
Directs expedited processing and issuance of income tax refunds in non-CASS cases where the claim falls below the prescribed small-value threshold for the relevant assessment years; assessing officers are instructed to prioritise determination and disbursement of these refunds, noting that many returns remain pending and some have been forwarded by CPC to Assessing Officers for resolution.

Income tax deduction from salaries: employers must deduct TDS for 2015 16 using prescribed rates, perquisite valuation and reporting rules.
Income-tax for FY 2015-16 must be deducted from salaries under Section 192 using Finance Act, 2015 slab rates, surcharge and education cesses; employers must estimate annual salary including perquisites, deduct tax each payment in equal instalments, adjust within year for errors, and may opt to pay tax on perquisites at the employee's average rate. Mandatory PAN/TAN quoting, issuance of Form 16 (Part A via TRACES, Part B manually), e-filing of Form 24Q and Form 24G for book-entry deposits, prescribed valuation of perquisites (Rule 3/Form 12BA), conditions for Chapter VI-A deductions, and interest, penalties and prosecution for defaults are detailed along with procedures for deposit and correction of TDS statements.

Adviser on Tax Reforms appointed to advise the revenue department, evaluate reform proposals and assist Income Tax Act redrafting.
The Government appointed Smt. Anita Kapur as Adviser on Tax Reforms on a short-term contract to advise the Revenue Department on referred matters, evaluate reform suggestions using empirical data, assist the committee re drafting sections of the Income Tax Act, and present suo moto views on direct taxation policy; concurrently, the Chairperson's duties are to be performed by a designated CBDT member in addition to his own duties until further orders.