E-commerce transactions: ECOs must withhold 1% TDS on gross transaction value, including linked fees when applicable.
Section 194-O mandates 1% withholding by the e-commerce operator on the gross amount of sales or services at the time of credit, payment or deemed payment. The operator who makes the final payment or deemed payment to the seller must deduct, deposit tax, file Form 26Q and issue Form 16A. Gross amount includes transaction-linked fees (shipping, packaging, convenience, commissions) and platform fees where linked; GST or state levies separately indicated may be excluded if deduction is on credit. Purchase-return adjustments and treatment of seller versus ECO discounts are specified.

Relaxation of time limits allows processing of electronically filed returns with refund claims beyond the prescribed period with administrative approval.
Relaxation under section 119 permits processing of electronically filed income-tax returns with refund claims beyond the statutory timeframe where intimation under subsection (1) of section 143 lapsed for reasons not attributable to the taxpayer; such processing requires prior administrative approval by the Principal Chief Commissioner/Chief Commissioner, DOlT (Systems) enablement for Assessing Officers, monitoring by the Pr.CIT/CIT, and excludes scrutiny-selected returns, those showing or likely to produce demand, and those delayed for reasons attributable to the assessee.

Withholding of income tax refunds: revised timelines, monetary limits and ITBA workflow for recording reasons.
The Instruction revises timelines and monetary limits and sets a mandatory ITBA/CPC 2.0 workflow for Assessing Officers recording reasons before withholding refunds under section 245(2): login to CPC 2.0, go to Refund Management Refund Release select 245(2), enter PAN/AY or use bulk view, view pending refund details, select a record, choose Release or Withhold, upload required attachments and complete mandatory fields so the system records user identity, timestamps, and the reason; system confirms successful action.

Withholding of refunds under section 245(2) requires written reasons, JAO approval, and strict timelines for FAO and JAO.
Withholding of income tax refunds under section 245(2) applies where the refund meets a revised monetary threshold and requires a structured workflow: FAO notifies the JAO of likely demand; the JAO records non cursory written reasons analyzing the factual matrix (including financial condition, past demands and appeals), seeks approval from the Principal Commissioner, and communicates the final withholding or release decision to CPC within prescribed timelines.

Role of Pr. CCIT (NaFAC) in faceless assessment clarified, covering implementation, guidelines, technical support and advisory functions.
The Pr. CCIT (NaFAC) is responsible for overall implementation of Board policy on faceless assessment; formulating Guidelines and SOPs for Assessment, Verification, Review and Technical Units with prior Board approval; ensuring Technical Units provide considered legal views and technical support to Assessment Units; and advising the Board on measures to improve efficiency and effectiveness of faceless assessment processes. The order takes immediate effect.

Condonation of delay in filing Form No.10-IC allows companies opting for the optional corporate tax regime to regularise compliance by deadline.
Condonation of delay is granted for late filing of Form No. 10-IC for the previous year relevant to A.Y. 2021-22 under section 119(2)(b), provided: the return of income was filed on or before the due date under section 139(1); the company opted for the optional corporate tax regime in the Filing Status of ITR-6; and Form No. 10-IC is filed electronically by the extended deadline specified in the Circular.

Extension of accountant report filing deadline to 31 December for assessment year 2023-24 to relieve filing hardship.
The Central Board of Direct Taxes, invoking its power under section 119(2)(b), extends the due date for filing the report of the accountant required under clause (8) of section 10AA read with clause (5) of section 10A for assessment year 2023-24 to 31st December, 2023, in view of difficulties arising from the notification of the relevant form on 19 October 2023.

Processing of refund claims extended for electronically filed returns, permitting time-barred refunds to be processed under prior conditions.
The Board has directed that validly filed electronic returns with refund claims that had become time-barred under the second proviso to subsection (1) of Section 143 should be processed despite the prescribed limitation, subject to the previously specified conditions and exceptions; this partial modification retains all other conditions of the earlier orders unchanged.

Substantial contribution reporting clarified: include contributors exceeding threshold for audit reports and related persons if available.
For assessment year 2023-24, audit reports in Form No. 10B and Form No. 10BB should list persons qualifying as making a substantial contribution where their total contribution during the previous year exceeds fifty thousand rupees; additionally, details of relatives of such contributors and of concerns in which they have substantial interest may be provided, if available.

Extension of filing deadlines for Form 10B/10BB and ITR 7: audit report due 31 Oct; ITR 7 due 30 Nov 2023.
The CBDT administratively extends the due date for furnishing audit reports in Form 10B/Form 10BB for the previous year 2022-23 from 30 September 2023 to 31 October 2023, and separately extends the due date for filing Form ITR 7 for assessment year 2023-24 from 31 October 2023 to 30 November 2023, providing relief to affected trusts, funds, institutions and exempt entities.

Reopening of completed assessments permitted only through statutory reopening framework, subject to incriminating material and procedural conditions.
Where incriminating material is found in a search or requisition, the AO may assess or reassess total income using that material and other records; where no incriminating material is found, additions cannot be made in completed/unabated assessments based solely on other material. Completed assessments may, however, be reopened under the statutory reopening framework subject to its conditions, procedural safeguards, sanction requirements, and applicable time limits. AOs must classify cases as abated or unabated, revive annulled proceedings where applicable, apply prescribed administrative timelines, and take appellate or remedial steps where later decisions conflict with the Apex Court's ratio.

Inventory valuation must be reported by a nominated Cost Accountant in the prescribed Form 6C under the amended procedure.
Amendment requires an assessee to furnish an inventory valuation report prepared and signed by a Cost Accountant nominated by the supervisory commissioner when the Assessing Officer, with prior approval, considers such valuation necessary; draft Form No. 6C prescribes the format, inventory categories, valuation methods (including application of ICDS II where applicable), product wise quantitative and valuation schedules, reconciliations with Form 3CD/audited accounts, workings for cost of production and net realisable value, and explanations for variances and method changes.

Life insurance exemption limits: premium aggregation rules restrict income-tax exemption for certain non-ULIP policies issued after amendment.
Amendments provide that consideration (including bonus) from non-ULIP life insurance policies issued on or after 01.04.2023 is not exempt under Clause (10D) where the annual premium payable in any previous year during the policy term exceeds the prescribed threshold; for multiple such policies exemption is available only for policies whose aggregate annual premium does not exceed that threshold. Sums received on death are excluded from these provisos. Excess consideration over aggregate unclaimed premiums is taxable under "Income from other sources." Premiums are to be measured exclusive of GST and term insurance policies are exempt from these provisos.

Compulsory scrutiny: returns with reassessment notices after search or survey must be transferred to central charges for scrutiny.
Returns with reassessment notices issued after search and seizure or survey on or after 1 April 2021 must be compulsorily selected for complete scrutiny with prior administrative approval, and if lying outside Central Charges shall be transferred to Central Charges under the statutory transfer provision within 15 days of service of the notice calling for information. Peripheral non-search third party cases uncovered during searches are excepted from mandatory transfer unless covered by the Board's 2014 guidance.

Recomputation of income for sugar co operatives enables allowance of sugarcane purchase deductions when prices match government fixed rates.
Recomputation permits a co-operative society in sugar manufacture to apply for recomputation where deductions for sugarcane purchase were disallowed for years on or before 1 April 2014; the Jurisdictional Assessing Officer shall allow the deduction to the extent the expenditure was incurred at prices equal to or less than government-fixed or government-approved prices, apply rectification provisions analogous to the rectification procedure, and issue an order within six months of the month in which the application is received, with recomputations permissible only until 31 March 2027.

Treaty Qualified Retirement Fund classification clarified for CRS reporting, distinguishing FATCA and non US reportable account treatment.
Clarification explains that a Treaty Qualified Retirement Fund, while non-reporting under FATCA, is not non-reporting under the CRS and therefore must not be treated as non-reporting for non U.S. reportable accounts; a non-public fund of the armed forces is an active non-financial entity under the CRS and not a financial institution for non U.S. reportable accounts; and gratuity funds may be passive NFEs or reporting financial institutions depending on management, with certain accounts qualifying as excluded accounts if they meet retirement or conditional withdrawal conditions and monetary limits.

Condonation of delay for deduction claims where statutory audit delays caused late filing, subject to verification and hearing.
The Board delegates to Chief Commissioners/Directors General authority to admit and decide applications for condonation of delay in filing returns claiming deduction for cooperative societies where delay resulted from circumstances beyond the assessee's control, including delays in obtaining statutory audits under State law; decision-makers must verify documentary evidence of audit delay vis-a -vis the return due date, check for signs of tax avoidance or evasion requiring further action, and afford the applicant an opportunity to be heard, preferably disposing applications within a three-month target.

Taxability of non-resident offshore investment income clarified: special regime applies only to Category I/II AIFs under securities or IFSC regulation.
The circular updates the investment fund definition in the special tax provisions to include funds regulated under IFSC fund management regulations, making the special tax regime applicable only to Category I and Category II Alternative Investment Funds regulated under securities law or IFSC fund-management regulations.

Clause designation in section 206C corrected to clause (a)/(b), amending circular references to the withholding provisions.
Corrigendum replaces references in Circular No. 10 so that the words "clause (i) of sub section (1G) of section 206C" in paragraph 4(i) and paragraph 5 shall be read as "clause (a) of sub section (1G) of section 206C", and the words "clause (ii) of sub section (1G) of section 206C" in paragraph 4(i) shall be read as "clause (b) of sub section (1G) of section 206C".

Tax Collection at Source threshold restored for LRS; increased TCS rates deferred and credit card LRS inclusion postponed.
The circular restores the Rs 7 lakh per individual per financial year threshold for applicability of TCS on all LRS remittances across modes and purposes; increases in TCS rates effected by the Finance Act, 2023 are deferred to take effect from 1 October 2023, with earlier rates applying until 30 September 2023. Classification of international credit card transactions as LRS is postponed; international credit card expenditures abroad are not subject to TCS until further order. The threshold is aggregated at the remitter level (not per purpose or dealer), authorised dealers may rely on remitter undertakings for prior remittances, and LRS purpose codes determine concessional rates for education and medical remittances. The threshold for LRS and the separate threshold for overseas tour program package operate independently, and an overseas tour package requires at least two specified elements to qualify.