Depreciation on tourist hire vehicles permitted: foreign cars allowed and higher rates apply to buses lorries and vans.
Foreign motor cars owned and used by tour operators or travel agents in the business of running them on hire for tourists qualify for depreciation, including where transport is provided as part of a package tour, because the car is regarded as taken on hire by the tourist. Motor buses, motor lorries, motor taxis and motor vans used by tour operators or travel agents to provide transport services to tourists qualify for a higher rate of depreciation under the Income-tax Rules when run on hire.

Valuation of coffee plantations: national application of prescribed Wealth-tax valuation procedure extending previous regional guidance.
The procedural guidelines in Circular No. 357 for valuing land comprised in coffee plantations under the Wealth-tax Act, 1957, previously limited to one regional charge, are extended for application to coffee plantations nationwide, directing use of the same valuation method throughout the country.

Monitoring of search investigations to ensure prompt appraisal, transfer, and completion of assessments with supervisory oversight.
A scheme requires prompt monitoring of search investigations: the DIT(Inv.) must notify Chief Commissioners within a week and forward Appraisal Reports and seized materials to Assessing Officers within specified short timeframes while maintaining case files and submitting monthly reports to DGIT(Inv.). CCITs/CITs must transfer jurisdiction and records within a month, and DCITs must ensure assessment and penalty orders are properly framed with prior DCIT approval; departures from Appraisal Report findings must be recorded and penalty or prosecution pursued where material supports it.

Linking of tax returns to assessment records only after processing under section 143(1)(a), to be done expeditiously.
Returns must be linked with assessment records only after processing under section 143(1)(a); the earlier procedure remains unchanged and the linkage must be performed invariably and expeditiously for the reasons set out in the latest circular and instructions.

Valuation cell procedures ensure timely referrals, enforce document compliance, and require defence of valuations on appeal.
Valuation Cells must receive all liable case referrals with a maintained register and use enforcement powers to secure documents and levy penalties; work must be prioritised by revenue potential and processed within prescribed time limits. Appellate orders affecting valuation must be supplied to Valuation Cells, whose comments must be incorporated into scrutiny reports and whose officers must defend valuations at appellate hearings. Chief Commissioners and Chief Engineers must ensure timely forwarding, spread of references across the year, adherence to processing timelines, and monthly reporting of delays, while circulating guidance on common valuation errors.

Acceptance of old Form 16 permits its use instead of Form 16B for prescribed TDS categories temporarily.
Assessing Officers may accept TDS certificates issued in the old Form No.16 in lieu of Form No.16B for the categories of tax deduction for which Form No.16B has been prescribed; both forms remain valid and tax deductors may use either form, and field officers may sell existing stocks of the old Form No.16.

Survey under section 133B: systematic, publicised surveys using Form 45D to identify new taxpayers and prompt Assessing Officer action.
Section 133B permits authorised income-tax officers to survey business premises and collect information on Form No. 45D to identify new taxpayers. Surveys must be planned, publicised, and executed systematically with written authorisation for teams, end-to-end coverage, and maintenance of a Street/Area Directory recording municipal numbers, occupier details, nature of business and recommended action. Forms requiring follow-up are to be forwarded monthly to range Deputy Commissioners, who will send them to Assessing Officers for initiation of proceedings and register entry, while senior officers perform random checks.

Surcharge computation: calculate surcharge on income-tax after deducting Chapter VIII tax rebates for applicable returns.
Surcharge is to be computed on the amount of income-tax as reduced by the tax rebate calculated under Chapter VIII (life insurance premia, provident fund contributions, specified investments); first compute income-tax, deduct Chapter VIII rebates, then apply surcharge to the reduced tax.

Linking records with returns ensures conformity and proper processing under section 143(1)(a) and facilitates prompt rectifications.
Link records with returns when processing income-tax returns under section 143(1)(a); past records must be linked to the current return before making return-based prima facie adjustments, and processed returns must be placed in the relevant files immediately so rectification applications and follow-up actions are attended to promptly.

Return filing extension for trusts claiming exemption under section eleven, with waiver of delay interest until the extended due date.
Persons receiving income from trust property used wholly or partly for charitable or religious purposes and claiming exemption under section 11, whose returns are required under the Explanation to section 139(1), have their filing due dates extended to a later single date. Interest under section 234A for delay in furnishing such returns is waived for the period from the original post-deadline commencement until the earlier of the return filing date or the extended due date.

TDS certificate acceptance: unified Form 16 permitted as Form 16B for specified source deductions during transitional period.
The Board permits TDS certificates issued in the unified Form No.16 after 28-2-1991 to be accepted by Assessing Officers in lieu of Form No.16B for the assessment year 1991-92 where tax was deducted at source under the provisions governing specified source deductions during the financial year 1990-91.

Exemption under section 10(4)(ii) extended for Kuwait-returned NRIs allowing continued maintenance of NRE/FCNR accounts.
Exemption for income from NRE/FCNR accounts is available to Indian nationals normally resident in Kuwait who returned to India after 2 August 1990, in respect of accounts maintained in banks in India or foreign currency accounts and assets abroad up to 30 June 1991, following Reserve Bank permission to continue such accounts and an extension of the earlier concession that had applied through 31 March 1991.

Provisional attachment under Section 281B preserves revenue by allowing temporary attachment during assessment, subject to prior commissioner approval.
Section 281B permits an Assessing Officer, with prior approval of the Chief Commissioner/Commissioner, to issue a written order for provisional attachment of an assessee's property during pendency of assessment or reassessment proceedings to protect revenue. Attachments are valid for six months and may be extended by the Chief Commissioner/Commissioner for up to two years; the procedure follows the Second Schedule. The Board directs Assessing Officers to use this measure in suitable cases and to notify officers in their regions.

Interest under section 220(2) accrues immediately and must be calculated annually with prompt demand issued.
Assessing Officers must calculate interest under section 220(2) at each financial year end for unpaid tax and issue demand notices by April 30; if tax is paid before year end interest is calculated up to payment and charged within one week. Interest up to the date of drawing up a recovery statement must be shown in the statement and thereafter collected by the Tax Recovery Officer with the outstanding demand. Supervisory officers must carry out half yearly reviews to ensure compliance.

Valuation of medical perquisites: specified employer-paid or reimbursed medical benefits are excluded from taxable salary under defined conditions.
Exemptions from taxable salary under Section 17 are specified for employer-paid or reimbursed medical treatment and provision of medical facilities where treatment is received in employer-maintained institutions, government or approved hospitals, or where expenditure is on medical insurance premiums. Reimbursement for treatment from outside practitioners is exempt up to a prescribed aggregate annual ceiling. Expenditure for treatment abroad, including travel and stay for the patient and one attendant, is exempt to the extent permitted by the foreign exchange regulator, subject to an income-linked exclusion for travel components. The circular supersedes prior instructions and attaches a list of approved hospitals.

Extension of filing deadline for gift-tax returns; interest and penalty waived if revised returns or disclosures filed by specified deadline.
The Board extended the filing date for returns of gifts for assessment year 1990-91 for assessees who made gifts during 20 March 1990 to 31 March 1990 and waived interest for late filing up to 30 June 1991. Assessees who previously filed returns omitting such gifts may avoid penalty by filing revised returns disclosing all gifts by 30 June 1991, or where assessment is completed, by furnishing written particulars to the Assessing Officer by 30 June 1991.

Exclusion from deemed concealment allows disclosure during search and payment of tax plus interest to avoid penalty under specified conditions.
Exclusion from deemed concealment is available where, on search, assets are found that are not recorded in the assessee's books and the assessee makes a statement under section 132(4) that such assets were acquired out of income for a year for which the return filing period has not yet expired, specifies the manner of derivation of that income, and pays the tax together with interest; alternatively exclusion also applies where the income is already recorded in books or disclosed to the Chief Commissioner/Commissioner before the search.

Prima facie adjustment evidence: deductions under tax law require payment proof with return; accountant or institution certificates accepted.
Prima facie adjustments under section 143(1)(a) disallow deductions under section 43B when evidence of actual payment is not filed with the return. Payment proof ordinarily takes the form of challans for taxes and duties; where such proof cannot be enclosed, a certificate from an accountant (as defined in the Explanation to section 288) is acceptable. For certain payments an accountant's certificate is required, and for interest to financial institutions either the institution's certificate or an accountant's certificate will suffice. These certificates are adequate for prima facie adjustment purposes, subject to further evidence if selected for scrutiny.

Deduction under section 80HHC applies after allocation of composite profits under rule 8, reducing taxable export income.
The circular directs that the deduction under section 80HHC for tea growers and manufacturers is to be allowed only after the composite profit is allocated under rule 8 to determine the income chargeable to tax under "Profits and gains of business and profession"; the deduction is then computed with reference to that taxable business portion and apportioned in relation to export turnover.

Cottage industry classification clarified under income-tax rules: use of power, workforce size, and ownership guide eligibility determinations.
Clarification directs that for section 80P(2)(a)(ii) an industry not required to be registered under the Factory Act may be treated as a cottage industry; the use of power and number of workers are limited tests and ownership by the worker or a cooperative group is an additional criterion. Authorities should apply these broad guidelines flexibly in each case when assessing eligibility.