Arrangement to lack commercial substance - (New) Section 180(1)(d) / (Old) Section 97(1)(d)

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....t significantly affect: • business risks • net cash flows except for tax benefit. The term "benefit" has also been defined under section 184  "Tax benefit" includes,- • (a) a reduction or avoidance or deferral of tax or other amount payable under this Act; or • (b) an increase in a refund of tax or othe....

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....n may qualify even if not specifically listed. • (a) Reduction, avoidance or deferral of tax payable • This covers three situations: • Reduction - Paying less tax than would otherwise be payable. • Avoidance - Eliminating tax liability altogether. • Deferral - Paying tax at a later date rather than immediately. ....

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....t tax year or any other tax year" • This is important because the benefit need not arise immediately. Under Section 97(1)(c) of the Income Tax Act, 1961 [ Upto 31.03.2026 ] No Significant Change in Business Risk or Cash Flow Another alternate condition of an impermissible avoidance arrangement is that the arrangement lacks commercial or is deemed to l....

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....amount under this Act; or • (c) a reduction or avoidance or deferral of • tax or • other amount that would be payable under this Act, as a result of a tax treaty; or • (d) an increase in a refund of • tax or other amount under this Act as a result of a tax treaty; or • (e) a reduct....