Faceless jurisdiction: automated allocation of tax functions enables faceless assessments, appeals, penalties, and electronic dispute resolution.
Faceless exercise of powers and performance of functions under the Income-tax Act shall be conducted through automated allocation, applying faceless procedures to assessments, appeals, penalties, electronic information collection and inspection powers, settlement of pending applications, and electronic advance rulings for eligible persons, with automated allocation defined to include algorithmic tools such as artificial intelligence and machine learning to randomise and optimise case allocation.

Scientific Research approval recognizes Sri Shankara Cancer Foundation as eligible institution for tax deduction applicability across specified assessment years.
The Central Government has approved Sri Shankara Cancer Foundation, Bangalore as a 'University, College or other institution' for scientific research under clause (ii) of sub section (1) of section 35 read with the Income tax Rules, with retrospective effect from the previous year 2021 22 and applicability for assessment years 2022 23 to 2026 27, and an explanatory memorandum certifies no person is adversely affected by the retrospective application.

Notification correction clarifies gazette citation, updating the official notification designation to ensure accurate administrative reference.
The corrigendum directs that the earlier notification cited as Notification No.11/2022 in the Gazette entry S.O.357(E) shall be read as Notification No.12/2022, effecting an administrative correction to the published designation without changing substantive tax provisions.

Tax exemption for electricity regulatory commission notified subject to conditions on commercial activity and filing obligations.
Notification under section 10(46) designates West Bengal Electricity Regulatory Commission as a notified Commission for exemption of specified income comprising income from the statutorily maintained fund and fees collected under state rules, subject to conditions prohibiting commercial activity, requiring unchanged activities and income character, and mandating filing of return under clause (g) of sub section (4C) of section 139 of the Income tax Act.

Sovereign Wealth Fund exemption clarified with strict non inurement, anti borrowing, vesting and mandatory audit disclosure requirements.
The amendment requires that a Sovereign Wealth Fund's earnings be credited to a government-designated account so no benefit inures to private persons (except certain creditor or depositor payments), prohibits loans or borrowings to finance investments in India, provides that assets vest in the foreign government on dissolution subject to limited exceptions, and bars day-to-day participation in investees while allowing monitoring and director appointment rights. It replaces the Annexure with a mandatory audited report and detailed disclosure schedule certifying compliance, listing investments, early sales, ownership and control, intimation compliance, borrowings, and maintenance of segregated accounts.

Notification under section 10(46): specified income streams of National Skill Development Corporation recognised with filing and non commerciality conditions.
Central Government notifies National Skill Development Corporation for purposes of clause (46) of section 10 of the Income-tax Act, 1961, specifying receipts that arise to the Corporation: government and other skill development grants; capital gains from investments in skill development organisations; dividends and royalties from supported skill ventures; accreditation, registration and training fees and cost recovery; administrative and mobilisation fees; income from foreign skilling institutions; interest on loans to institutions; miscellaneous receipts such as sale of scrap and profit on sale of assets; and interest earned on these receipts. The notification is subject to conditions limiting commercial activity, preserving the nature of activities and income, and requiring specified income-tax return filing.

Securities Transaction Tax compliance: managing directors now responsible for collection and electronic filing obligations.
The amendment designates the managing director or a whole-time director of an insurance company, duly authorised by its Board, as the person responsible for collection and payment of securities transaction tax; mandates payment via authorised banks with prescribed challan; inserts Form No. 2A as the return for insurance companies; requires electronic filing of Forms 1, 2 and 2A under digital signature or electronic verification code; and assigns the Principal Director-General/Director-General of Income tax (Systems) responsibility for specifying secure procedures, formats, standards and archival policies for electronic return submission.

Computation of capital gains for specified ULIPs: taxable gain equals amount received (including bonus) minus premiums paid, adjusted for prior taxation.
New Rule 8AD prescribes that capital gains on amounts received under a specified unit linked insurance policy are computed on first receipt as the amount received including bonuses less aggregate premiums paid to that date; for subsequent receipts, taxable gain is the amount received excluding portions already taxed less aggregate premiums paid to date reduced by premiums previously considered. These computed gains are deemed to be gains from transfer of units of an equity oriented fund under an insurance company scheme.

E-advance rulings enable electronic processing and randomized allocation of advance ruling applications with hearings via video conferencing.
The Scheme establishes an electronic framework for advance rulings where the Board for Advance Rulings pronounces e-advance rulings, applications are randomly allocated via an automated allocation system, communications and filings occur through a designated portal and registered e-mail addresses, requisitions for records are made to relevant tax authorities or Joint Secretary (Foreign Tax and Tax Research), hearings may be conducted by video conferencing, and the Board and its Secretary exercise specified procedural, record and civil-court powers.

Computation of exempt income clarified for offshore banking unit investment divisions; electronic annual filing and audited accounts required.
Rules prescribe computation of income of a specified fund attributable to an offshore banking unit's investment division for exemption under clause (4D) and taxation under sub-section (1B) of section 115AD by aggregating defined categories of capital gains, securities income and securitisation trust receipts. Expenditure incurred to earn those items is expressly disallowed as a deduction from other activities. The eligible investment division must maintain separate audited accounts, specified documentation and electronically file Form No. 10-IK and auditor verification in Form No. 10-IL within prescribed timelines, with systems standards set by the Director-General of Income-tax (Systems).

Tax exemption for regulatory commission: specified income exempt subject to non commerciality, unchanged activities and filing conditions.
The Assam Electricity Regulatory Commission is notified as entitled to exemption for specified income consisting of government grants, license fees, petition fees and fines, and interest on those amounts when kept as deposits or fixed deposits with banks, subject to conditions that it shall not engage in commercial activity, that activities and the nature of the specified income remain unchanged, and that it files its return of income in accordance with the referenced filing provision.

Terminology correction: notification wording amended to replace 'Assessment' with 'Financial', with retrospective effect certified harmless.
Corrigendum to Notification No.142/2021 amends the Gazette text: in paragraph 3 of Subsection (ii), Section 3, Part II, replace "Assessment" with "Financial"; the corrigendum states retrospective effect is given and certifies no person is adversely affected.

Tax exemption for IFSC Authority: specified public receipts exempted subject to non commercial and return filing conditions.
Notification designates the International Financial Services Centres Authority, Gandhinagar, as exempt under section 10(46) for specified incomes: grant-in-aid from the Central Government; fees and charges under the Authority Act; other sums as decided by the Central Government; and interest on those receipts. The exemption is conditional on the Authority not engaging in commercial activity, maintaining unchanged activities and specified income composition during the stated financial years, and filing its return of income under the relevant income-tax provision.

Digital signature requirement for Commissioner of Income tax (Appeals) to authenticate specified appeal orders under listed sub paragraphs.
The corrigendum clarifies that the Commissioner of Income-tax (Appeals) shall authenticate orders passed under the specified sub paragraphs of paragraphs 5-7 by affixing a digital signature, amending clause (i) of paragraph 10 of the earlier notification.

Tax exemption for Regional Air Connectivity Fund Trust: specified grants, levies and related interest notified as exempt subject to conditions.
Notification under section 10(46) designates Regional Air Connectivity Fund Trust (PAN AADTR1130P) as exempt in respect of specified income comprising government grants, levies from airlines, forfeited bank guarantees from airlines' non-fulfilment, and interest on those receipts, subject to conditions: no commercial activity, unchanged activities and income nature across financial years, and filing returns under section 139(4C)(g); the notification states its applicable financial years and includes an explanatory memorandum certifying no adverse effect from retrospective application.