Comparison of section 351 "Specified violation." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....issioner and Assessing Officers), and the broader charitable sector. Effective/commencement dates: Not stated in the document. Background & Scope Statutory hooks: Clause/Section 351 appears in Part IV (Violations) of the Income Tax Bill, 2025 / Income-tax Act, 2025. The provision addresses "specified violation" by a registered non-profit organisation and grants the Principal Commissioner or Commissioner power to inquire, call for documents, and pass orders including cancellation of registration. Definitions or extended explanations of terms used (e.g., "registered non-profit organisation", "objects", "commercial activity", or cross-referenced sections 332, 345, 346, 270(13)) are Not stated in the document. Statutory Provision Mode Text ....

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....alculated from end of quarter in which first notice was issued calling for documents/inquiry. Interpretation Legislative intent indicated by text: the provision aims to create a statutory mechanism to protect the tax base by identifying specified breaches by non-profit organisations and providing a structured administrative route for cancellation of registration, incorporating procedural safeguards (opportunity of being heard, timelines). The text signals an intent to link tax-registration consequences to both internal misapplication of funds and external non-compliance with other laws. Exceptions/Provisos Carve-outs or conditions in the text include: * Cancellation is to be preceded by giving a reasonable opportunity of being heard. ....

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....etween the two provisions and practical impact * Reference to section 345/346 (commercial activity): Old Bill (Document 2) lists contravention only of section 345; the enacted Section 351 (Document 1) lists contravention of the provisions of section 345 or 346. * Practical impact: expansion of trigger-more commercial-activity-related conduct (covered in section 346) can now constitute a specified violation, increasing exposure to cancellation for NGOs engaged in commercial activities that fall within section 346. * Wording on timing/temporal scope of cancellation: Old Bill states cancellation may be "for such tax year during which such specified violation took place and all subsequent tax years." Enacted Section omits the phrase "for ....

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....private religious application must not ensure public benefit). Substance unaffected except removal of typographical error. * Minor drafting/formatting differences: Enacted provision adds subparagraph labeling and slightly reorders phrasing (e.g., subsection (2)(a) temporal phrase "Where,--" vs Bill's "Where during any tax year,--"). * Practical impact: no substantive change except possible differences in interpretive emphasis on temporal locus of detection; enacted text's condition list in (2) is substantively the same but more tightly cross-referenced in some places. Practical Implications * Compliance and risk areas grounded in the text: strict internal compliance with objects and permitted uses of income; careful structuri....