Exclusion of GST from TDS base clarified - TDS applies to amounts excluding separately indicated GST components.
Where the component of GST on services is separately indicated in the agreement or invoice, TDS under Chapter XVII B shall be computed on the amount payable excluding that GST component; GST for this purpose includes IGST, CGST, SGST and UTGST. References to 'service tax' in contracts made prior to the tax regime change shall be treated as references to GST on services for the post-changeover period until the contract expires.

Tax effect computation revised to include adjustments for income under MAT and alternate minimum provisions in appeals.
Where income is computed under minimum alternative tax regimes, the tax effect for appellate monetary-limit purposes is to be calculated as the sum of: (A) the difference between total income assessed under general provisions and the hypothetical total income if disputed general-provision issues were eliminated; and (B) the difference between total income assessed under the alternative tax provisions and the hypothetical total income if disputed alternative-provision issues were eliminated. A disputed item treated under both sets of provisions must not be deducted twice in the alternative-provisions component.

Prohibition on collecting tax payments during searches requires officials to refuse on site cheques and direct bank deposit.
The Board directs a strict prohibition on collecting payment of taxes of any nature in any manner during searches or surveys; officials must limit actions to legally permitted steps and evidence collection, refuse cheques or cash offered on site, and advise taxpayers to deposit payments through banks. Authorization letters must state that no authority to collect tax is conferred, and authorized officers are accountable for compliance.

Selection criteria for income-tax scrutiny: mandatory case categories, transfer pricing and survey/search triggers, plus CASS selection.
Guidelines prescribe mandatory categories for manual scrutiny selection including recurring-assessment additions above prescribed thresholds, transfer pricing additions where appellate finality or confirmation exists, survey assessments except limited non-impounded disclosures, assessments from search and seizure and related provisions, returns responding to reassessment notices, claims of exemptions despite denial or cancellation of registration, and cases with verifiable information of tax evasion subject to prior administrative approval; CASS operates separately for limited and complete scrutiny.

Prohibition on large cash receipts: a loan instalment is treated as a single transaction and not aggregated.
The provision prohibits receipt of large cash payments except by account payee cheque, account payee bank draft, or electronic clearing, with a penalty equal to the amount received for contraventions. For NBFCs and HFCs receiving loan repayments, each instalment of repayment is a single transaction and instalments under a loan are not aggregated to determine applicability of the restriction.

Income-tax scrutiny notices will use revised formats and e-proceeding for electronic conduct of assessments nationwide.
All scrutiny notices under section 143(2) are to be issued only in the revised formats integrating the Department's E-Proceeding facility; the Systems Directorate will update the ITBA module to enable electronic service of communications and electronic receipt of assessees' responses via their e-Filing accounts, with provision for e-mail or manual proceedings where an e-Filing account is not yet created and specified exceptions for manual handling.

PAN data access authorised for national grid integration, requiring MoU-based transfer with confidentiality and data-weeding safeguards.
Order names the Principal Director General of Income-tax (Systems) as the specified authority to furnish bulk PAN-related information to NATGRID, listing PAN numbers, personal identifiers (name, father's name, gender, date of birth, photograph, signature/thumb impression) and all ITD-held contact and address details of PAN holders. The disclosure will be governed by a memorandum of understanding covering data transfer mode, confidentiality, secure preservation and post-usage weeding, with the furnishing timeline decided in consultation and a copy of the MoU filed for record.

Breach of confidentiality: directives require review of leaks of appraisal and investigation reports and strict remedial action.
Directive requires that appraisal and investigation reports remain confidential, be accessed only for official purposes, and that any leakage be identified by Directors General, investigated for procedural lapses, subjected to stern remedial action, and reported to the Board.

Non applicability of rent withholding on passenger service fees affirmed; tax department to stop pursuing appeals.
Payments characterized as Passenger Service Fee remitted by airlines to airport operators do not constitute "rent" for tax deduction at source purposes because incidental or ancillary use of land or buildings while providing services does not satisfy the primary requirement of payment for use of land or building; the revenue board has accepted this view and directed cessation or withdrawal of appeals on the issue.

Advance tax exclusion from seized-assets adjustment is prospective, so pre-amendment cases should not be appealed.
An amendment excluded advance tax from liabilities against which seized or requisitioned assets may be adjusted; courts have held that exclusion to be prospective, and the Department accepts that seized cash cannot be applied to advance tax for periods before the amendment, so appeals in pre-amendment cases should not be pursued and existing appeals withdrawn.

Trade advances not treated as deemed dividend where bona fide commercial transactions-department instructed to stop filing appeals.
Section 2(22)(e) treats certain payments by closely held companies as deemed dividends to the extent of accumulated profits. Judicial decisions have held that bona fide trade advances and commercial transactions-such as advances adjusted against job-work dues, advances for enabling contract performance, or security deposits in the ordinary course of business-do not constitute an "advance" under section 2(22)(e). Consequently, the tax department will cease filing appeals on this ground and may withdraw or not press existing appeals.

Statement of financial transactions filing deadline extended to ease compliance for persons required to file under section 285BA.
The Central Board of Direct Taxes, exercising executive power to extend administrative deadlines, has extended the last date for furnishing the statement of financial transactions under Rule 114E(5) read with sub section (1) of section 285BA for Assessment Year 2017-18 from 31st May to 30th June 2017. The extension is granted to remove inconvenience and to facilitate ease of compliance and applies to all persons throughout India who are liable to furnish the statement.

Tax deduction at source exemption clarified: listed Section 10 entities need no TDS where income is unconditionally exempt and non-filing applies.
No tax deduction at source is required on payments to entities whose income is unconditionally exempt under Section 10 of the Income-tax Act and who are not statutorily required to file returns; the Board issues a revised list adding eligible entities and removing those whose exemption or non-filing status no longer applies, and clarifies that the circular supersedes earlier guidance.

Compounding proceedings expanded in ITBA Prosecution Phase 2 enabling initiation, fee recording, intimations and issuance of compounding orders.
Phase 2 of the ITBA Prosecution Module adds electronic workflows to initiate, record and process Compounding Proceedings-including work-item creation, decision recording, fee and expense capture, payment intimations and issuance of compounding orders-and to initiate, decide upon, and withdraw Grant and Withdrawal of Immunity, together with MIS reporting, user authentication requirements, browser prerequisites and training and helpdesk support.

Committee to recommend measures for expeditious recovery of tax arrears; report to be submitted within a prescribed timeframe.
Constitution of a Committee of senior Income-tax Department officers to recommend measures for expeditious recovery and management of arrears of direct taxes, including classification of arrears, class-specific collection measures, review of age profile and older demands, analysis of Charges/Regions prone to persistent uncollected demands with prevention and recovery proposals, review of top dossier monitoring, assessment of the 'naming and shaming' policy and possible data-sharing, co-option of expert officers, and submission of a report to the Board within the prescribed timeframe.

ITBA Phase 4 adds Valuation Officer referrals and conversion from limited to complete scrutiny within assessment workflows.
Phase-4 of the ITBA Assessment Module adds two functions: referring cases to a Valuation Officer-enabling entry of VO and asset particulars, generation of reference letters, and capture/attachment of valuation reports-and converting cases from Limited to Complete Scrutiny-requiring entry of reasons, submission for PCIT/CIT/PDIT/DIT approval, Range recommendation pendency, and changing the Limited Scrutiny Flag to No upon approval. MIS screens display referred and converted case statuses; user access, authentication, browser requirements and training resources are specified.

Non-resident seafarer tax liability clarified to apply to seafarers on foreign-going ships regardless of ship flag.
Corrigendum replaces the phrase "foreign ship" with "foreign going ship (with Indian flag or foreign flag)" in Circular No.13/2017 clarifying liability to income tax in India for a non-resident seafarer receiving salary in an NRE account with an Indian bank.

Aadhaar data protection: immediate ban on publishing Aadhaar identifiers with sensitive personal information and removal of existing disclosures.
Prohibits publication or public display of Aadhaar number and associated demographic or other personal sensitive information in contravention of the Aadhaar Act, 2016 and the Information Technology Act, 2000, directs immediate removal of any such publicly accessible content, requires dissemination of instructions to concerned personnel, and mandates submission of a compliance report to the issuing division for onward transmission to the e Governance Group.

Business income treatment for lease rent in industrial parks/SEZs affirmed where park development and scheme compliance exist.
Income from lease rent for letting out buildings or developed space with amenities in an Industrial Park/SEZ established under notified government schemes is to be treated as business income where the undertaking develops, operates or maintains the park/SEZ and complies with the scheme conditions; the Board accepts judicial rulings to this effect and directs that the Department cease filing appeals and may withdraw those already filed.

Deadline extension for appeal pendency upload compels CIT(A)s to finalize disposals and remove duplicate appeals on ITBA.
Extension of the deadline to upload correct appeal pendency and disposals on the ITBA platform is granted to stabilize the CIT(A) module; CIT(A) offices must upload disposals for the relevant year and remove duplicate appeals immediately and by the extended deadline to ensure accurate case records.