Registration under sections 184 and 185 denied where firm violates liquor licence conditions; examine local excise rules before registration.
The Punjab & Haryana High Court concluded that entitlement to registration under sections 184 and 185 depends on compliance with excise statutes and licence conditions; where a firm conducted liquor sales in breach of the Punjab Excise Act and the Punjab Liquor Licence Rules, 1956-specifically by involving persons whose names were not endorsed on the licence in contravention of Rule 37 sub rule 26-it could not be treated as entitled to registration. Officers are directed to examine local liquor licence rules and endorsement requirements before granting partnership registration.

High Court decisions summary prompts listing of special leave petitions and circulation to tax officers for review.
Directive to prepare and circulate summaries of High Court decisions on income tax for the specified period, excluding cases already considered by the Board, and to provide two annexures: one listing cases where High Courts refused leave to appeal but the Board accepted review, and another listing matters where special leave petitions were not granted by the Supreme Court; copies to be circulated promptly to officers and authorised representatives.

Gift-tax exemption for non-monetary gifts clarified to cover movable and immovable property under the statute.
Exemption under Section 5(1)(v) of the Gift-tax Act is not confined to cash donations and applies to all types of property, movable or immovable; the Board has withdrawn prior guidance limiting the exemption to monetary gifts and instructs Commissioners to apply the exemption to non-monetary transfers in administration.

Self-assessment tax verification: use Part II of returns to detect non-payment and short payment of tax promptly.
Instruction directs Income Tax officers to use Part II of the return, which shows total tax payable and pre-assessment taxes including self-assessment tax, to detect non-payment or short payment of self-assessment tax in company returns meeting the prescribed threshold and in non-company returns earmarked for scrutiny; recipients must acknowledge receipt.

Hearing schedule compliance requires recording hearing dates and advance notice of adjournments to taxpayers, plus display of cancellations on noticeboards.
ITOs must include a column for the date of hearings in assessment orders to enable supervisory monitoring, and where hearings are cancelled or adjourned the assessee must be informed in advance by letter or telephone where possible; cancellations or adjournments must also be displayed on the ITO's office notice-board and on the department's general notice-board, and necessary instructions issued to subordinate officers to ensure compliance.

Deduction of tax at source from lottery winnings requires specified withholding rates, procedural certificates, and timely remittance.
Deduction at source under Section 194B requires withholding income-tax from lottery and crossword puzzle winnings above the exempt threshold at rates specified for natural persons and companies; tax is calculated on aggregate cash and cash-equivalent prizes, withheld on actual payment (including instalments), rounded to the nearest rupee, remitted to Government within prescribed timeframes, and accompanied by prescribed certificates and quarterly statements, with provision for a recipient to obtain a certificate authorising lower or nil deduction.

Write-off procedure for tax arrears requires composite proposals and interest-inclusive totals before zonal committee review.
Submission of a single composite proposal is required where an assessee has arrears under income-tax and other direct taxes, to be sent on the prescribed proforma with complete assessment records; every proposal must state the total arrears inclusive of interest chargeable for late payment calculated up to the end of the month preceding zonal committee consideration.

Location of gifted property determines gift-tax: receipt abroad avoids tax, direct delivery in India attracts tax.
Taxability of gifts in foreign exchange from non-resident donors depends on the location of the property when gifted: receipt by or on behalf of the donee outside India avoids gift-tax; delivery to the donee in India by the donor attracts gift-tax because the delivering agency is the donor's agent; but where the donor sends the instrument at the donee's request the bank/post is treated as agent of the donee and no gift-tax arises.

Printed memorandum requirement bars acceptance of photocopies for company registration, preserving statutory formality and filing standards.
The memorandum and articles of association must be in a printed form under the applicable Act; because the statute expressly requires printing, xerox or photocopies should not be accepted for the purposes of company registration, and filing officers must insist on the prescribed printed form.

Tax deduction at source on horse race winnings requires prescribed rates and timely deposit using designated challans.
The circular prescribes withholding arrangements for winnings from horse races for 1981-82: apply the specified flat withholding rates or, if higher, the tax and surcharge computed as if such winnings were the total income. Tax deducted must be remitted to the Central Government within one week of the month end into authorized banks using the appropriate challan (No. 2 red band for companies; No. 8 blue band for non companies). Failure without reasonable cause to deduct or to pay deducted tax attracts penal consequences, and taxpayers should consult the Income tax Act, the Finance Act, or local tax officers for guidance.

Tax deduction at source on insurance commission: payer must withhold, remit, and comply with prescribed forms and challans
Deduction of tax at source applies to income by way of insurance commission and must be made at the time of credit or payment, with remittance to the Central Government within prescribed periods or within an extended interval when commission is credited as at the payer's accounts-closing date. Payers must use specified coloured challans for companies and non-companies, show surcharge separately, round the tax to the nearest rupee, cannot adjust for prior excess commission debits, issue deduction certificates to payees, and file quarterly and annual statements and returns in the prescribed forms; recipients (other than companies) may seek a certificate authorising lower or no deduction.

Tax deduction at source on interest on government securities: prescribed deduction rates under the Finance Bill require immediate implementation.
The circular transmits draft rates prescribed in the Finance Bill for deduction of income-tax and surcharge from interest on government securities and directs immediate issuance of the circular to all Treasury Officers and Sub Treasury Officers so that those prescribed rates are applied to such interest.

Residential house exemption: determine deceased's share first, then allow proportionate exemption under estate duty rules.
The Board advised that the deceased's share in the principal value of joint family property should be determined first and then the proportionate residential house exemption under Sec.33(1)(n) allowed from that share, because the statutory valuation provision is to be invoked only for the limited purpose of estimating principal value and only provisions bearing on that estimation should apply.

Tax deduction at source from salaries: employers must include perquisites and apply statutory deductions before withholding tax.
Employers must deduct tax at source from salaries only when estimated salary income exceeds the exemption threshold and must include perquisites and other specified receipts in estimating salary. Taxable salary is computed after allowing the standard deduction (subject to ceilings and special limits where employer provided motor vehicles are used personally). Statutory deductions for approved savings and provident contributions are permitted within the prescribed monetary and percentage limits, exemptions for house rent allowance and special allowances require documentary proof, and prescribed rounding, challan usage and penalty provisions apply.

Change in interest rate linked to bank rate: such revisions fall within the circular's scope; otherwise statutory charge filing required.
A change in the rate of interest is within the circular's scope only where the rate was fixed as a specified percentage above the bank rate and the variation results from a notified change in the bank rate; otherwise the statutory charge provisions apply and the required filing must be made unless the change directly follows a notified bank rate variation.

Supply of return forms limited to assessees above the applicable taxable limit and those claiming refunds.
Postal supply of return and challan forms is restricted to assessees whose latest return or assessment shows income above the applicable taxable threshold for the assessment year and to assessees claiming refunds; Commissioners must instruct officers immediately to implement this change.

Summary assessment scheme must be strictly enforced to prevent arbitrary issuance of notices under section 143(2) and harassment.
The directive requires strict enforcement of the summary assessment scheme: inspecting authorities must ensure cases fit for summary disposal are not subjected to unjustified scrutiny and ITOs do not mechanically issue notices under section 143(2). Officers are to dispose of such matters expeditiously and, where appropriate, generously. Complaints of unnecessary notices continue; inspecting authorities must monitor ITO actions and initiate supervisory or disciplinary measures against officials who cause unwarranted taxpayer harassment.

Tax recovery certificates preserve limitation while coercive action is stayed; undisputed amounts may be enforced during settlement proceedings.
Recovery certificates should be issued to preserve limitation while coercive action is held in abeyance; suspension of coercive action excludes issuance of statutory notices under the second schedule and attachment of property as protective measures but includes sale and arrest. Commissioners must report undisputed tax amounts in admitted settlement cases so the commission can permit recovery of those amounts, and assessees should be permitted and encouraged to pay taxes or offered amounts during pendency. Normal recovery continues for years not admitted or not yet admitted, and commissioners must expedite reports to the commission.

Income-tax Clearance Certificate: revised mandatory form requires contractor income, partners and recent contract payment disclosures before contract award.
The Income-tax Clearance Certificate proforma for contractors has been amended to require disclosure of income returned, details of partners and contract payments in the last five years; certificates B(i) and B(ii) are omitted, and the revised form is mandated as the sole acceptable application format from the effective date, with all Ministries, subordinate offices, Public Sector Undertakings and procurement agencies instructed to insist on the amended certificate before awarding contracts or orders.

Wealth tax valuation disputes over property appurtenances require prompt case review and compliance reporting under binding legal guidance.
Wealth-tax arrears stem from valuation disputes, notably where palace lands and appurtenances of former rulers are assessed at market value. Administrative guidance treats a building under section 5(i)(iii) as including outhouses, garages, guest houses and land appurtenant when within the same compound or immediate vicinity, and specifies lists of exempted places. The Ministry of Law's opinion is binding under the Rules of Business; officers must review and, if appropriate, modify cases and submit a compliance report within one month detailing reviews and tax effects.