Comparison of Section 164 "Meaning of specified domestic transaction." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....ed in covered transactions and the tax administration. Effective date or decision date: Not stated in the document. Background & Scope Statutory hooks: Clause 164 operates as the definition provision within the Chapter titled "SPECIAL PROVISIONS RELATING TO AVOIDANCE OF TAX" in the Income Tax Bill, 2025. The clause defines the term "specified domestic transaction" for the Chapter. The clause enumerates categories (a)-(f) of transactions that qualify, expressly excluding international transactions. The clause also imposes an aggregate threshold: the aggregate of such transactions entered into by the assessee in a tax year must exceed twenty crore rupees. The Bill text does not include further definitions or explanatory notes within the cla....

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.... or specified dealings. The clause relies on cross-references for content of certain categories; the Bill does not provide standalone substantive definitions for those cross-referenced items within Clause 164 itself. Exceptions/Provisos Carve-outs, thresholds, conditions: * Exclusion: Transactions that are international transactions are excluded from the definition ("not being an international transaction"). * Threshold: Aggregate of such transactions must exceed Rs. 20 crore in a tax year to qualify as "specified domestic transaction". * Prescriptive power: Clause (f) contemplates that other transactions may be prescribed to be included. Other specific exceptions or provisos are Not stated in the document. Illustrations * Examp....

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....tion 164 expands that to read: "any transaction, referred to in any other section under Chapter VIII or section 144, to which provisions of section 140(9) or (13) of this Act or section 80-IA(8) or (10) of the Income-tax Act, 1961 are applicable;". * Practical impact: The enacted text explicitly adds cross-reference to section 80-IA(8) or (10) of the Income-tax Act, 1961 and clarifies that section 140(9) or (13) references are to provisions "of this Act". This appears to broaden or at least clarify the net of transactions captured by clause (d) by linking in provisions of the 1961 Act. Practically, taxpayers and advisers must consider the interplay with section 80-IA(8)/(10) of the 1961 Act when determining whether a transaction is a....

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.... trigger; taxpayers with aggregate covered transactions above this limit will come within the Chapter's special provisions. The clause's reliance on prescribed categories (clause (f)) means additional transaction types may be added later, creating rule-making risk. * Record-keeping/evidence points: Not stated in the document. However, by definitional design, taxpayers will need to maintain transaction records and aggregation calculations to demonstrate whether the Rs. 20 crore threshold is met or not. The Bill does not specify the nature or period of records to be retained. Key Takeaways * Clause 164 provides an enumerated definition of "specified domestic transaction" for the Chapter on avoidance of tax, excluding internationa....