Income tax return forms for AY2008 09: eight tailored ITRs; e filing mandatory for corporates and audit liable firms.
Notification prescribes eight assessment year specific ITR forms, annexure less except one, mandates electronic filing for corporate taxpayers and those subject to tax audit with options for electronic transmission plus verification or digital signature, and structures forms and instructions to reflect statutory income heads, loss set off, Chapter VIA deductions, coded reporting of specified transactions, tax computation (including surcharge and education cess) and Tax Return Preparer provisions.

Gross Total Income determination: Chapter VI-A deductions disallowed if income is nil after set-off of brought forward losses.
Determination of gross total income requires first adjusting brought forward and current year business losses before considering deductions under Chapter VI-A; if gross total income after such loss set offs is nil, the taxpayer is not entitled to Chapter VI-A deductions.

Maximum deposit limits for the Monthly Income Scheme increased; tax exempt interest on certain small savings prevents broader limit hikes.
Maximum deposit limit for the Monthly Income Scheme was raised to specified single account and joint account ceilings effective 1 August 2007. Deposit caps apply only to Post Office Savings Accounts, Public Provident Fund and the Senior Citizens Savings Scheme; other small savings schemes have no upper limit. The Government declined to increase caps for Post Office Savings Accounts and Public Provident Fund because tax exempt interest on those accounts would cause additional revenue loss.

Territorial nexus governs taxability of cross border income; DTAA and apportionment limit domestic charging under Section 9.
Income from cross-border transactions must have a sufficient territorial nexus with India before being taxed under Section 9; where services or operations are performed outside India or are attributable to a foreign head office, the DTAA and apportionment principles determine taxability and relief.

Assessing officer satisfaction requirement clarified: assessment order deemed to constitute satisfaction for initiating penalty proceedings.
When an assessment or reassessment order makes additions or disallowances and directs initiation of penalty proceedings, that order shall be deemed to constitute the assessing officer's satisfaction for initiating penalty proceedings; the amendment is retrospective to protect revenue contentions, but the assessing officer must still record satisfaction before levying the penalty, and taxpayers retain the right to contest the levy on merits.