Deduction under section 80Q: publishers may claim a specified percentage allowance on book publishing profits for limited assessment years.
The Finance (No. 2) Act, 1991 introduced a temporary deduction for profits from printing and publication of books, effective from 1 April 1992; an allowance equal to a specified percentage of such profits is deductible subject to the section's other conditions. The concession applies for the five assessment years beginning with assessment year 1992-93 and is to be allowed only if statutory eligibility requirements are met.

Deduction under section 80RRA requires approval; applications must include signature, full address, PAN and employer certificate.
Tax deduction for foreign currency remuneration by technicians is contingent on prior administrative approval; approvals are delegated to the Joint Secretary (F.T. & T.R.) and multi year approvals are used for merchant navy personnel. Applications must be signed, filed in duplicate with the applicant's full postal address, state the income tax assessing authority and PAN (or PAN application evidence), include the employer's original signed certificate detailing total and foreign remuneration for relevant years, and, if filed through a representative, include a letter of authority.

Date of transfer for securities: broker's note or contract date governs holding period and FIFO applies to multiple lots.
Determination of the date of transfer for securities transacted through stock exchanges is the date of the broker's note for sellers and purchasers, provided delivery of shares and transfer deeds follow; for direct party sales, the declared contract date governs subject to actual delivery. Where purchases occurred in multiple lots and scrips cannot be correlated, the FIFO method determines holding periods, and indexation for long-term gains is applied accordingly.

Set off of unabsorbed partner losses allowed against firm income, permitting set off under sections 70 and 71.
Unabsorbed business losses apportioned to partners for earlier years shall be brought back to the firm for set off if the partner continues in the firm, and may be carried forward and set off under the statutory carry forward and set off provisions; the administration directs that set off under the provisions permitting inter head adjustments may be allowed in the hands of the firm for assessment year 1993-94.

Disability deduction: full statutory allowance when eligibility conditions and incurred dependent care expenses are satisfied.
Section 80DD grants a statutory deduction to resident individual and HUF assessees for expenditure on handicapped dependants where the dependant is a relative solely dependent on the assessee; suffers from a certified permanent physical disability or mental retardation reducing capacity for normal work; and the assessee has incurred expenditure on medical treatment, nursing, training or rehabilitation. The Board clarifies that when these conditions are met, the deduction provided by the section is allowable in full.

Compounding of offences: authority to compound now vested in senior tax administration; Commissioners no longer empowered.
The power to effect compounding of offences under the Act has been reallocated by amendments so that only higher tax administration officials - specifically the Chief Commissioner or the Director General - may compound offences; Commissioners of Income-tax no longer have that power. All compounding requests must follow the Board's guidelines and this position should be communicated to subordinate Commissioners.

Income tax rule amendment replaces the prescribed withholding form, altering Appendix II compliance requirements under the Rules.
Rulemaking under section 296 read with sub section (3) of section 269UC amends the Income tax Rules, 1962 by promulgating the Income tax (Twelfth Amendment) Rules, 1994, which substitute the existing Form No.37 I in Appendix II with a new prescribed form, thereby modifying the form based compliance requirements under those rules.

Taxability of allowances: employer granted allowances are taxable unless specific statutory exemptions apply for HRA, notified duty related and overseas allowances.
Allowances paid by an employer to an employee are taxable as income unless specifically exempt. Key exemptions include house rent allowance subject to prescribed limits and salary definition, government notified allowances to meet duty related or posting related expenses (such as travel, remote area, tribal area, education and uniform allowances) subject to notification conditions, deduction for entertainment allowance under salary provisions, and exemption for allowances paid outside India by the Government to citizens serving abroad.

Section 80-O deduction available when technical services are rendered from India and received abroad, even if used in India.
Where technical or professional services are rendered from India and received by a foreign government or enterprise outside India, and the income is in convertible foreign exchange, the deduction under section 80-O is available to the Indian provider even if the foreign recipient utilises those services in India; services rendered or agreed to be rendered outside India include services rendered from India but exclude services rendered in India.

Interest tax inclusion: interest on debentures now subject to interest-tax under the Act's widened definition by the revised Act
The present section 2(7) of the Interest-tax Act adopts a broader definition of interest and does not retain the former explicit exclusion for amounts chargeable under the Income-tax Act as 'Interest on Securities'; accordingly interest on debentures, bonds and securities is exigible to interest-tax and officers must apply this construction in their jurisdictions.

Exclusion from sample scrutiny where income rises substantially and tax is paid before filing, subject to income ceilings.
Exclusion from sample scrutiny applies where current year total income is at least thirty percent higher than the prior year, both years' incomes exceed the basic exemption limit, the prior year's total income does not exceed the prescribed upper limit, and taxes for the current year are fully paid before filing; the exclusion is inapplicable to cases in the compulsory scrutiny basket.

Maintenance of books of accounts: loose-sheet records that enable manipulation may attract penalty and prosecution under tax law.
Section 44AA requires proper maintenance of books of accounts; while computerized daily records may be kept in loose sheets and bound periodically, loose-sheet recordkeeping used solely to enable subsequent manipulation to evade tax is objectionable. During surveys and searches officials should scrutinise record form and, where loose records are deliberately maintained to facilitate tax evasion, initiate penalty proceedings and consider criminal prosecution as deterrent action.

Compounding authority under the Income Tax Act restricted; Commissioners cannot compound offences, only Chief Commissioners or Director Generals may.
Amendments to section 279(2) removed compounding power from Commissioners of Income-tax and concentrated it in the Chief Commissioner and the Director General; Commissioners therefore have no jurisdiction to compound offences under that provision. Chief Commissioners and Commissioners must observe this limitation when dealing with compounding requests and apply the Board's compounding guidelines dated 30/09/1994, with Chief Commissioners responsible for informing subordinate Commissioners of the correct allocation of authority.

Compounding of offences: only Chief Commissioner or Director General may compound, under Section 279(2), following Board guidelines.
Compounding of offences is confined to senior authorities: Commissioners no longer have power to compound; only the Chief Commissioner or the Director General may compound offences, and all compounding requests must follow the Board's procedural guidelines and be communicated to subordinate Commissioners by Chief Commissioners.

Deduction of tax at source on rent not required for government payees; exempt authorities need a certificate.
Deduction of tax at source on rent payments is not required where the payee is the Government. For statutory authorities and local authorities whose income is exempt, tax need not be withheld on rent if the payer is satisfied of their exempt status on the basis of a certificate issued by the authority.

Selective filing of appeals: limit departmental appeals, defer to CIT(A) factual findings unless perverse, and enforce review reporting.
Mandate selective filing of appeals: appeals to appellate tribunals must be filed only after careful scrutiny, complying with existing instructions on monetary limits and accepting CIT (Appeals) findings of fact unless perverse. CCITs/DGITs must perform monthly reviews of appeals on questions of fact and samples of others, submit consolidated statistical quarterly review results by the prescribed deadline, and thereafter furnish quarterly reports by the end of the following month.