Voluntary disclosure scope limited to specified assessment years; income from later years must be assessed normally and remediation required.
Declarations under section 3(1) on Form A required year wise details or the relevant block of assessment years; the Voluntary Disclosure scheme covered income only up to the scheme's terminal assessment year, and income relating to later assessment years falls outside the scheme and must be assessed normally. Commissioners should verify whether later year entries were inadvertent, obtain affidavits correcting assessment years where necessary, take remedial assessment action without delay for income outside the scheme, and report particulars to inspection authorities.

Arrear demand verification requirement: ITOs must test-check transferred entries and certify carryover and reconciliation compliance.
ITOs must carry forward arrear demand entries to new Demand & Collection Registers or Arrear Ledger Accounts, verify and reconcile those entries, and send certificates to respective IACs confirming that the arrears have been carried over and reconciled; CsITs must forward similar certification to the Board. ITOs are also required to test-check a sample of transferred arrear entries to ensure correctness of the carryover and reconciliation.

Application of section 144B to assessments and reassessments requires draft orders and timely IAC reference to avoid limitation.
Reassessments reopened under the reassessment provision fall within the scope of the draft-order mechanism; the assessing officer must forward a draft order to the assessee and, where necessary, to the IAC when proposed variations exceed the Board's monetary threshold, and timely reference to the IAC is required so assessments or reassessments are completed within the ordinary limitation period without excluding the excluded period.

Convertible foreign exchange: remittances from outside Nepal and Bhutan qualify if backed by authorised dealer certificates.
Remittances from countries outside Nepal and Bhutan are treated as convertible foreign exchange for tax deduction eligibility if remitted through normal banking channels and supported by an authorised dealer's certificate confirming receipt in an approved manner under exchange control regulations; such a certificate is adequate evidence of convertible currency receipt.

Provident fund recognition: verify status and notify assessing officers before allowing employer contribution deductions to ensure compliance.
ITO must verify provident fund recognition before allowing employer contribution deductions: confirm whether recognition was granted (with date) and whether it remains in force or has been withdrawn, and keep a file record. If recognition is withdrawn, send the withdrawal order to ITOs having jurisdiction over the employer, the fund and the employees so deductions/exemptions can be dealt with on the correct factual basis.

Settlement commission admission preserves limitation; recovery certificates issued to save limitation and no recovery steps be taken.
The Board directs issuance of recovery certificates to Tax Recovery Officers where limitation to commence recovery is imminent, expressly stating the certificate is issued to save limitation and that no further steps to recover the certified arrears should be taken while proceedings before the Settlement Commission are pending; this preserves limitation pending a final administrative decision on whether prior demands remain enforceable after admission by the Settlement Commission.

Finality of Settlement Commission orders precludes income-tax officer from altering specified instalments or interest payment terms.
Where a Settlement Commission order expressly specifies instalments and interest, those provisions are final and binding; an assessing officer may not grant extensions, additional instalments, or alter interest terms inconsistent with the Commission's specified payment schedule.

Interpretation of capital employed: rule excludes borrowed funds challenged, administration preserves departmental view while recovery paused.
Interpretation of Capital employed under Section 80J focuses on whether Rule 19A(3) lawfully excludes borrowed money from capital employed for new undertakings; several High Courts found the exclusion ultra vires and the Department has appealed. Pending authoritative resolution, tax officers are instructed to continue the Departmental view in assessments to preserve appeals, while not enforcing recovery of tax where High Court decisions bar collection, and to record expressly when recovery is suspended on that basis.

Special messenger arrangements to ensure direct tax collections are transmitted daily so credits reflect in the same financial year.
Require authorised public sector banks to run daily special messenger services to collect and transmit scrolls and challans from link branches to focal point branches on the day of receipt so that direct tax collections of the late March period are credited to the Government account in the same financial year; tax units must check scrolls daily, pursue delays beyond two days with focal branch managers, and escalate unresolved issues to CCA for action with RBI or bank head offices.

Advance tax revision required where assessments increase liability; authorities must issue revised demand notices promptly.
Revision of advance tax demands is required where assessments or other developments increase liability; assessing officers must urgently revise demands upward and serve revised notices so that advance tax notices issued because of non-filing of estimates or timing of instalments are adjusted to reflect completed assessments or updated information.

Recovery certificates require Aid Sheets and verification before issuance; TROs must await ITO confirmation of arrears.
Issuance of recovery certificates before 31-3-79 must follow safeguards: send Aid Sheets to assessees and consider objections; verify prepaid taxes and effect appellate or rectification outcomes; where challans are delayed flag claimed but unverified payments and instruct TROs to withhold recovery until the assessing officer confirms the arrear; assessing officers must verify and cancel, modify, or confirm such certificates by 30th April 1979.

Tax Deducted at Source enforcement urged to ensure proper withholding, prevent defaults, and improve tax collections.
Instruction directing intensified enforcement of Tax Deducted at Source to maximize revenue, requiring proper deduction and prompt action on defaults. ITOs assigned for TDS from salaries are to be utilised to check TDS returns and statements on other payments; ITOs with jurisdiction over payors must ensure receipt of statutory statements and regular payment by deductors. Maintain control statistics to monitor progress and report actions taken to the Board using the prescribed proforma.

Tax collection where foreign income cannot be repatriated: average-rate method applied to Indian income; prior concession withdrawn.
Tax collection from Indian residents with income arising in Pakistan must follow the statutory method: apply the average rate of tax computed on the assessee's total income (as finally determined) to the Indian income for recovery under section 220(7). The CBDT withdraws the earlier administrative concession that treated Indian income as the total income for recovery purposes and directs review of existing stayed cases.

Valuation forms alignment: Wealth Tax valuation forms now apply to estate duty valuers, harmonising valuation procedures.
Approved valuers under the estate duty framework are to use the Wealth Tax valuation forms O-1 to O-10 for asset valuation; this aligns procedural documentation and form fields, replacing previously used estate duty form templates while leaving appointment rules intact.

Charitable purpose interpretation: administrative suspension of assessments that would deny exemption pending legislative review and avoid tax demands.
The Supreme Court's restrictive interpretation of "any other object of public utility not involving the carrying on of any activity for profit" has placed charitable trusts undertaking commercial activities at risk of losing tax exemption; pending governmental consideration of a recommendation to delete the restrictive wording, authorities are directed not to make assessments that would deny exemption and create income-tax demands, subject to limitation safeguards.

Concurrent jurisdiction in tax administration does not divest the assessing officer; allocation and draft order safeguards apply.
Conferral of concurrent jurisdiction on a higher tax officer does not automatically divest the assessing officer of his powers; the assessing officer retains primary jurisdiction until a subsequent order withdraws powers. The higher officer may, by order, withdraw or reassign all or some powers or particular cases to allocate work. When the assessing officer makes assessments, applicable procedural safeguards require that proposed variations beyond the prescribed threshold be forwarded as a draft to the taxpayer, and related procedural provisions apply.

Timing of tax deduction credit: credit is allowed in the assessee's assessment year corresponding to the relevant previous year-end.
The instruction states that credit for tax deducted at source must be given in the assessee's assessment year that immediately follows the assessee's relevant previous year-end. Because TDS is deemed income for computing the assessee's total income, the assessment year for credit is determined with reference to the relevant previous year of the assessee, not merely the financial year in which deduction occurred.

Official liquidator liability: failure of tax officer to notify precludes personal liability, prompting procedural safeguards.
Where the tax officer fails to give the statutory intimation after the official liquidator has given notice of appointment, the liquidator cannot be regarded as having failed under the relevant provision and it is difficult to fix personal liability on him; tax officers should promptly ascertain and intimate tax and estimated capital gains liabilities, bring outstanding taxes to the court's notice in pending liquidation and may refer the liquidator's conduct for company law action, while recoveries through the liquidator do not preclude action against directors.

Crossed cheque requirement clarified for payments above threshold when bank clearing operations are suspended.
Circular No. 250 clarifies the application of the income tax rule requiring payments above the cashiering threshold to be made by crossed cheques or crossed bank drafts, and explains how that requirement operates when banks have suspended clearing operations, providing procedural guidance for compliance during interruptions to clearing facilities.

Suspension of cheque clearing qualifies as an exception to crossed cheque payment rules when evidence of genuine payment is supplied.
Section 40A(3)'s disallowance for payments not made by crossed cheque or draft is inapplicable where the assessing officer is satisfied that payment could not be made by crossed cheque/draft due to exceptional or unavoidable circumstances. Suspension or hold up of bank cheque clearing operations constitutes such circumstances. Payments made during that period will not be disallowed provided the assessee furnishes satisfactory evidence of the genuineness of the payment and the identity of the payee to the Income tax Officer.