Perquisite: employer paid pilot licence insurance premiums are taxable as employment benefits; compensation for licence loss also taxable.
Where an employer pays or reimburses insurance premia for loss of a pilot's licence, that payment is a perquisite and taxable in the pilot's hands; compensation received for loss of licence is also taxable. Completed assessments need not be reopened to tax such perquisites, and earlier contrary guidance is modified.

Royalty characterisation determines taxation of cross border engineering payments; assessors must establish correct head for tax treatment.
Engineering fees to non resident collaborators must be characterised as either royalty or fees for technical or engineering services, because the characterisation determines source and allocation for tax. The Board instructs tax officers to examine the basic nature of such receipts in pending appeals and make representations to ensure assessment under the correct head. Where collaboration agreements pre date amendments and were government approved, officers must determine whether the fees are in the nature of royalty and raise the issue before appellate authorities if no finding exists.

Deduction of tax at source from insurance commission: revised rates and compliance obligations, including payment, challan use, and reporting.
Tax must be deducted at source on insurance commission for financial year 1980-81 at revised rates for payments after 18 June 1980; section 194D applies to residents and section 195 covers non residents and certain foreign companies. Deduction occurs on credit or payment, remittance to the Government follows specified deadlines with designated challans, surcharge shown separately and tax rounded to the nearest rupee. No adjustment for prior debits is allowed; payees (other than companies) may seek certificates authorising reduced or nil deduction, and payers must issue payee certificates and file prescribed quarterly and annual statements.

Change in previous year may alter wealth tax valuation, so potential revenue impact must be checked before approval.
An ITO's approval to change an assessee's previous year from the financial year to the calendar year extended the previous year and removed the valuation date for the subsequent assessment year, producing substantial loss of wealth tax revenue; the Board directs that officers must consider potential wealth tax revenue loss before allowing any change in the previous year and circulate this guidance to subordinate officers.

Tax deduction at source on lottery winnings: specified rates and procedural reporting obligations apply to payments after the effective date.
Deduction of income-tax at source under Section 194B applies to winnings from lotteries and crossword puzzles exceeding the threshold; withholding must be made at the specified rates on payments from the effective date, with no adjustment for prior payments. Tax is deductible on the aggregate value of cash and in-kind prizes (except where prize is only in kind), deducted at payment (including instalments), rounded to the nearest rupee, and paid to the Central Government within prescribed timeframes. Payers must issue certificates to recipients and file quarterly statements; recipients may obtain certificates to authorize lower or nil deduction.

Tax Deduction at Source on government securities interest: apply prescribed Finance Bill rates and instruct treasury officers accordingly.
Rates for deduction of tax at source on Interest on Government Securities are to follow the rates proposed in the Finance (No. 2) Bill and corresponding schedule, and treasury and sub treasury officers must deduct tax at those prescribed rates from such interest receipts; administrative officers are to issue immediate instructions to subordinate treasury officers to implement those withholding rates.

Form ITNS 224 not mandatory - income-tax returns must be accepted at counters even when the form is not filled.
Filing of Form ITNS 224 was an administrative aid to segregate returns for summary or scrutiny assessment, but it is not compulsory; failure to furnish the form does not render a return incomplete, and Income-tax officers must accept returns presented at counters even if the form is not filled.

Interest on belated firm returns must be computed as if the firm were unregistered, affecting interest liability calculation.
Interest under section 139(8) for firms filing belated returns must be computed as if the firm were unregistered; registration affects only tax payable, not the computation of taxable income for interest purposes. Firms assessed under special firm provisions and registered firms filing belated returns fall within Explanation 2 and must have interest calculated on the tax that would be payable if unregistered. Decisions to the contrary by appellate authorities should be contested.

Filing deadlines extend when statutory due date falls on a public holiday, allowing submission on the next working day.
When the last day of a prescribed period for filing an estimate or statement under the advance tax framework expires on a day the income tax office is closed, the estimate filed on the next day the office reopens is valid, because the income tax office qualifies as an office under the general clauses enactment and the provision prescribes a period ending before the final instalment rather than a single fixed day.

Maintenance of order sheets ensures contemporaneous evidentiary records and strict procedural compliance in tax assessment proceedings.
A procedural directive emphasises strict maintenance of order sheets as contemporaneous evidentiary records: entries must be chronological and datewise, bear consecutive serial numbers, and avoid overwritings and interpolations; every order affecting proceedings must be dated, entered, and complied with promptly, with the instructions applying mutatis mutandis to other direct tax proceedings and subject to verification by inspecting authorities.

Accumulation applications under section 11(2) authorised to be condoned by Commissioners, streamlining belated Form No.10 admissions.
The Board authorised Commissioners of Income-tax by order under section 119(2)(b) to admit belated applications for accumulation of income under section 11(2) read with rule 17 and Form No.10, delegating to Commissioners the power to condone delay and dispose of such applications where conditions for entitlement and prior Board practice are satisfied.

Interest under section 220(2) treated as current demand; strict reconciliation and finalisation rules for quarterly tax-arrears statements.
Interest under section 220(2) must be treated as a current demand in the year raised. Quarterly tax-in-arrears statements for the March quarter are to be marked provisional until full checking and reconciliation are completed; final statements, with a confirming footnote, are to be submitted only after reconciliation. Commissioners must submit chargewise quarterly statements separately. Challans for the preceding financial year should be posted promptly in the DCR/D&CR, with late-arriving preceeding-year challans recorded in a distinct portion of the prior year's DCR and treated as reductions of arrear demand in the current year while appearing in collection statements for the preceding year.

Disability deduction entitlement allows employers to reduce salary tax deduction when certificate produced by tax officer.
An employer may allow the disability deduction against salary for TDS purposes where an eligible resident produces a certificate issued by the Income-tax Officer authorising such deduction; the certificate is issued to the employer on the employee's request after assessment and remains effective until withdrawn or until the employee leaves that employer.

Carrying on business in India arises if a foreign collaborator renders paid services; technicians may qualify for section 10(6)(viia) exemption.
A foreign collaborator that renders services in India to an Indian company and receives fees may be regarded as carrying on business in India; technicians employed in that business may qualify for exemption under section 10(6)(viia) if statutory conditions are met. If the foreign collaborator only lends technicians' services without rendering services in India, it may not be carrying on business in India.

Deduction of tax at source on insurance commission continues at prior rates under Section 194D for the current financial year.
Deduction of tax at source on insurance commission under Section 194D shall continue to be made at the same rates as in force previously; insurance companies must apply the rates set out in Part II of the First Schedule to the Finance Act, 1979 and communicate these instructions to all concerned.

Tax deduction at source on lottery winnings remains unchanged; existing deduction rates should continue to be applied.
Deduction of tax at source applies to winnings from lottery or crossword puzzle and the Finance Act, 1980 preserves the existing withholding rates; State Governments are instructed to ensure continued deduction of tax at source on such winnings at the same rates as specified in Part II of the First Schedule to the Finance Act, 1979.

Deposit reserve requirement must be maintained for repayment of maturing public deposits despite imminent repayments.
Rule 3A mandates that a company must deposit or invest an amount equal to ten per cent of deposits maturing during the year within one month after year end, and that this amount may be used only for repayment of those deposits; the requirement remains even if some deposits will be repaid in the following month, with specific fact based queries referred to the department.

Public deposit scope clarified: joint deposits with non directors and loans from firms lacking director partners excluded from the rule.
Amounts received in a company's joint names of a director and a non director, or a private company's joint names of a shareholder and a non shareholder, are excluded from the purview of Rule 2(b)(ix) of the Companies (Acceptance of Deposits) Rules, 1975. Deposits from lending firms are likewise excluded when not all partners of the firm are directors on the borrowing company's board.

Recovery of charges: TROs must draw on contingencies and credit recovered costs to government accounts, not use personal funds.
TROs must draw from contingencies or their imprest to meet recovery-related expenses, and amounts recovered from defaulters for such charges must be credited to the government account under the appropriate major/minor detailed head; increases in imprest require proposals with past expenditure data, and no out-of-pocket expenditure or appropriation of sale proceeds is permitted without accounting.

Exemption for agricultural produce: tea leaves qualify as exempt produce, not the value of whole tea bushes.
The provision exempts growing crops and fruits on trees; the Board instructs that the exemption covers the produce only-specifically tea leaves-so tea foliage is exempt under section 5(1)(viiia) while the value of the tea bush or plant itself is not.