Total income for rent deduction clarified: compute after other deductions to determine eligibility for rent relief.
Section 80GG grants a rent-related deduction subject to prescribed limits and conditions, including absence of House Rent Allowance and non-ownership of residential accommodation by the assessee or specified relatives. The Board clarifies that for computing the allowable deduction the term "total income" means the assessee's total income after allowing all other deductions except the deduction under section 80GG itself.

Valuation of plantation agricultural land prescribes income-capitalisation and market methods for wealth-tax valuation of specified plantations.
Guidelines classify plantation land into yielding, developing/non-yielding, and other virgin/unplanted categories. Yielding land is valued by the income capitalization method: average six years' gross income less average expenditures (with a 5% self-management allowance if applicable), specified expenditure items excluded, an ad hoc 25% deduction from net annual income, then capitalised using a multiplier of six. Developing land is valued as improvement cost plus market value of virgin land. Other lands are valued at market value, considering Board-recommended development-loan values.

Development allowance reserve calculation clarified: reserve must equal proportion of allowance actually permitted for tea plantation taxation.
The circular clarifies that the reserve required under section 33A must equal 75% of the development allowance actually allowed to the assessee; for tea companies the reserve is to be computed on the portion of the allowance that is permitted for tax purposes rather than on the gross calculated planting cost, and the reserve must be debited to profit and loss and credited to a reserve account for later utilisation in the business.

Investment allowance reserve: tea companies must calculate the reserve as 75% of the allowance actually allowed.
Investment allowance is subject to a reserve condition requiring 75 per cent of the amount actually allowed as investment allowance to be debited to profit and loss and credited to a reserve. For tea companies whose taxable income comprises only a proportion of total income, the reserve to be created should be calculated as 75 per cent of the amount of investment allowance actually allowed in assessment, reflecting the company's taxable-income proportion of the allowance.

Extra shift allowance entitlement: rotary machines like generators, motors and pumps qualify despite exclusion for stationary electrical plant.
The Appendix exclusion of extra shift allowance for listed electrical machinery must be read ejusdem generis to apply only to stationary, non-rotating electrical plant; generators, motors and centrifugal pumps are rotary machines and therefore qualify for extra shift allowance. Revenue Audit accepted this construction after technical consultation and instructed dropping outstanding objections.

PAN allotment requirement: tax authorities must assign PANs to registered assessees and new filers within prescribed time.
The instruction directs tax officers to invoke statutory discretion to allot PANs to all assessees on departmental registers whether or not they applied, completing allotment for those on the register as of 15-01-1982 by 28-02-1982, and to continue allotting PANs to new assessees within one month of first return filing or of enrollment on the registers.

Monitoring of taxpayer applications requires centralised monthly reconciliation, sample file checks, register verification, and follow-up for prompt processing.
Directives require the central receipt section to supply IACs with monthly, circle/district/ward-wise break-ups of specified application types; the IAC must reconcile those figures with pending-application reports, sample-check files to verify applications are placed on records, inspect ITO-maintained registers for proper entry by ministerial staff, and take follow-up action to ensure prompt processing and prevent loss or remissions.

Register maintenance for set-aside assessments required to ensure active follow-up and monitored disposal of pending cases.
Maintain a dedicated register for assessments set aside by appellate authorities; make an entry upon receipt of the set-aside order, record every such case in the Judicial section, monitor progress through physical verification and phased disposal programmes, and round off entries when the set-aside assessment is completed. IAC inspections must review the register and the CIT must oversee progress; lapses will be viewed seriously and field officers must be informed.

Penalty allocation per assessment year: assess section 271(4A) applicability separately, allow year wise waiver requests; board checks aggregate threshold.
Penalties under sections 271(1)(a) and 271(1)(b) are to be levied separately for each assessment year and the applicability of section 271(4A) must be considered separately with reference to the facts of each assessment year. Requests for reduction or waiver of penalty should not be rejected for all years simply because the section is inapplicable to a particular year, although for Board approval officials should consider whether aggregate penalties across years exceed the threshold for sanctioning relief.

Wealth tax exemption for Unit Trust units remains separate and additional to listed-investment limits and holding conditions.
The circular clarifies that the general wealth-tax exemption for listed investments is subject to a monetary limit and a minimum six-month holding requirement, whereas the Unit Trust of India statute grants a separate exemption for units held by resident individuals and Hindu undivided families up to a specified value; that Unit Trust exemption is independent of and additional to the general listed-investment wealth-tax exemption.

Section 80MM deduction basis clarified: apply gross income for earlier assessments; net-income rule applies prospectively.
Clarification instructs that the Sec.80MM deduction must be computed with reference to gross income for assessments up to and including the year before the effective date of the statutory net income rule inserted by Finance Act, 1980; the statutory net income computation under Sec.80AB applies only prospectively. Assessing officers are directed to inform staff and to rectify affected assessments under rectify u/s.154 and withdraw appeals or references based on the net-income computation for those earlier assessments.

Section 80MM deduction: Assessing officers must verify services actually rendered conform to board approved agreements before allowing benefits.
Income from provision of technical know how or related services under a board approved agreement may qualify for the Section 80MM deduction, but the assessing officer must, at assessment and before allowing the benefit, verify that the activities actually carried out and services actually rendered conform to the terms and the scope of the board approved agreement so that payments outside the statutory purview are not given unintended benefit.

Applicability of section 13(1)(d): trusts with previous year starting on or after 1 4 1981 face 80G renewal denial if non-compliant.
Where any previous year begins on or after 1-4-1981, the investment-deposit limitation will apply from the first assessment year relevant to that previous year and can cause loss of exemption if funds are held in modes other than those permitted; where the previous year begins before 1-4-1981, that limitation will not operate for assessment year 1982-83 and the trust will not lose exemption solely by reason of that provision. Commissioners may renew the recognition certificate where the limitation does not apply, but must not renew where the previous year begins on or after 1-4-1981 and the trust is non-compliant.

Return of LIP receipts: originals may be returned after a dated ITO endorsement verifying the section 80C claim.
Where an assessee requests return of original life insurance premium receipts submitted for a claim under section 80C, the assessing officer may return the originals after recording, under the I.T.O.'s signature with date, a note in the return against the column claiming the LIP rebate stating that the claim has been verified with reference to the original receipts.

Transfer of equitable interest between approved superannuation funds not treated as employee payment, so no tax deduction required.
The Board advised that a transfer of an equitable interest between approved superannuation funds on change of service cannot appropriately be treated as payment, direct or indirect, to the employee; accordingly, the obligation to deduct tax on contributions so transferred does not arise.

Taxation of association income: maximum marginal rate excluded for approved employee funds; unapproved funds taxed under existing rules.
Clarifies that the rule charging the maximum marginal rate on an association's total income where individual shares are indeterminate does not apply to income of trustees for recognised or approved employee benefit funds; income for unrecognised or unapproved employee funds remains taxable under the pre-existing charging provision; and associations or trusts whose members are not entitled to income are taxed at the ordinary rate, not the maximum marginal rate.

Deemed cooperative society status enables Regional Rural Banks to claim deductions available to co-operative societies under the Income-tax Act.
Regional Rural Banks are deemed to be Co-operative Societies for purposes of the Income-tax Act under the Regional Rural Banks Act, 1976; therefore deductions available to co-operative societies under the Income-tax Act, including the provision for deductions applicable to cooperatives, must be allowed when assessing the income of Regional Rural Banks.

Interest tax classification moved to a separate major accounting head, standardizing revenue presentation and recordkeeping.
Collections under the Interest Tax Act are to be accounted for under Major Head 024 - Interest Tax, with specified minor heads and sub heads opened for collection streams and receipts awaiting transfer; correction slips to the list of major and minor heads will be issued to implement this reclassification.

Non-disclosure of bond acquisition protects holders from inquiry, seizure and tax-accounting in assessment processes.
The Act grants bond-holders a statutory non-disclosure privilege under section 3(1)(a) and bars inquiries based on acquisition under section 3(1)(b), subject to section 3(2) exceptions. Section 4 provides that subscription or acquisition shall not be taken into account for Income-tax, Wealth-tax and Gift-tax proceedings; officers must ignore claims that concealed income was invested in Bonds, cannot inventory or seize Bonds during searches or surveys, and must not accept Bonds in satisfaction of tax arrears.