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    The Transformation of Information-Gathering Powers : Clause 259 of the Income Tax Bill, 2025 Vs. Sec...
    Statutory Powers to Collect Information in Tax Administration : Clause 254 of the Income Tax Bill, 2...
    Transformation of Income-tax Survey Provisions in India : Clause 253 of the Income Tax Bill, 2025 Vs...
    Powers to Call for Information under the Income Tax Law : Clause 252 of the Income Tax Bill, 2025 Vs...
    Balancing Revenue Recovery and Taxpayer Rights : Clause 250 of the Income Tax Bill, 2025 Vs. Section...
    Balancing Tax Enforcement and Procedural Fairness in the Search and Seizure : Clause 249 of the Inco...
    Evolution and Implications of Requisition Powers in Indian Income Tax Law : Clause 248 of the Income...
    Procedural Safeguards and Retention of Seized Materials during search and seizure operations : Claus...
    Non-Disclosure of Reasons in Income Tax Search and Seizure : Clause 249 of the Income Tax Bill, 2025...
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    Quasi-Judicial Powers of Income-tax Authorities : Clause 246 of the Income Tax Bill, 2025 Vs. Sectio...
    Transformation of Tax Jurisdiction : Clause 245 of the Income Tax Bill, 2025, and Section 130 of the...
    Legal Safeguards and Procedural Continuity under Indian Income Tax Law : Clause 244 of Income Tax Bi...
    Modernizing the Statutory Framework for Jurisdictional Transfers and Natural Justice : Clause 243 of...
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    Act RulesBills
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    Power to call for information: targeted verification notices enable centralized processing while raising data privacy and procedural safeguard concerns.
    Clause 259 empowers a prescribed income tax authority to issue notices to any person to furnish information useful for or relevant to verifying information already in the authority's possession, requiring specification of form, manner and time. Sub clause (2) permits processing and utilisation of received information under a scheme to be notified under section 260, indicating standardized, centralized data handling while leaving procedural safeguards, definition of "proceeding," and privacy protections to the forthcoming scheme.
    Act RulesBills
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    Power to collect information: authorised tax officers may require prescribed business records during business hours with non-removal safeguards.
    Clause 254 empowers designated income-tax officers to enter premises where a business or profession is carried on during business hours and require proprietors, employees or other persons to furnish prescribed information, while expressly prohibiting removal of books, documents, cash, stock or valuable articles. The power is linked to subordinate rules that prescribe the form and content of information, limits activity to collection (not search or seizure), and includes specified ranks and authorised inspectors subject to delegation and procedural safeguards.
    Act RulesBills
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    Survey powers modernisation expands access to digital records while preserving timing limits and prior approval safeguards.
    Clause 253 expands survey powers to include computer systems, electronic media and virtual digital space, permits entry to any place where business is carried on or where records are kept, and obliges persons present to provide access and technical assistance. It limits entry hours, restricts removal of assets, authorises marking, extracts, oath-recorded statements, time limited impounding with recorded reasons and inventories, mandates prior senior approval for surveys and allows enforcement measures for non-cooperation.
    Act RulesBills
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    Power to call for information enables tax authorities to require verified data from wide categories to support tax enquiries.
    Clause 252 confers an expansive authority on specified income-tax officers to require verified information, accounts, and returns from a wide range of persons and intermediaries - including banks, firms, HUFs, trustees, assessees in relation to specified payments, and dealers/brokers/exchanges - to support enquiries, assessments, investigations and international information-exchange, while prescribing approval safeguards where no proceedings are pending and authorising prescribed forms and verification.
    Act RulesBills
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    Application of seized assets: statute permits AO to appropriate assets for tax recovery while preserving release safeguards.
    Clause 250 authorises the Assessing Officer to apply assets seized or requisitioned towards tax, penalty and interest liabilities (excluding advance tax), covering liabilities under the new Act, the Income tax Act and the Black Money Act. It preserves application of money first, permits appropriation and sale of non monetary assets as prescribed, and allows other recovery modes. Assets may be released on application within thirty days subject to AO satisfaction and senior officer approval and must be released within 120 days; excess assets must be returned and interest is payable on prolonged retention under a specified formula.
    Act RulesBills
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    Non-disclosure of reason to believe or suspect limits appellate access while preserving investigative secrecy in tax searches.
    Clause 249 bars disclosure of the reason to believe or reason to suspect recorded by income-tax authorities under sections 247 and 248 to any person, authority, or the Appellate Tribunal, thereby insulating the subjective satisfaction that authorises search, seizure, or requisition from appellate scrutiny while leaving constitutional courts able to review reasons in appropriate proceedings.
    Act RulesBills
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    Requisition powers enable tax authorities to obtain material held by other agencies for tax proceedings.
    Clause 248 authorises a senior approving authority, on forming a reason to believe that summoned books, documents, electronic records or assets are in another authority's custody or will not be produced, to empower specified officers to requisition such material; on delivery the material is treated as if seized, invoking seizure related procedural safeguards while allowing the original authority to retain material until it is no longer necessary for its own proceedings.
    Act RulesBills
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    Retention limits on seized materials ensure time-bound return and supervised copying rights under the proposed income tax clause.
    Clause 251 governs copying, extraction, retention and release of seized books, documents and electronic records, requiring transfer to the jurisdictional Assessing Officer where necessary, preserving a supervised right to make copies or extracts on application, and imposing a default retention period with extensions only on recorded reasons and higher approval; an absolute cap prohibits retention beyond thirty days after completion of all proceedings, and affected persons may object to continued retention before the Board which must hear them.
    Act RulesBills
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    Non-disclosure of reasons protects search and seizure confidentiality while limiting appellate access and focusing review on procedural defects.
    Clause 249 creates an absolute statutory bar on disclosure of the "reason to believe" or "reason to suspect" recorded for authorising searches and seizures, preventing disclosure to any person, authority, or the Appellate Tribunal. It preserves the requirement to record reasons and follow procedures but confines challenges to procedural defects, manifest arbitrariness, or jurisdictional absence; constitutional courts may still examine reasons in camera in exceptional cases of mala fides or lack of jurisdiction.
    Act RulesBills
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    Search and seizure powers modernized to encompass electronic records, provisional attachment, and expanded evidentiary presumptions.
    Clause 247 modernises search and seizure for income tax enforcement by explicitly covering electronic records and undisclosed foreign assets, authorising entry, search, extraction, seizure or prohibitory orders, requisitioning technical assistance, and provisional attachment subject to prior approval and recorded reasons, while retaining the reason to believe standard and rebuttable statutory presumptions regarding ownership and authenticity of seized material.
    Act RulesBills
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    Quasi judicial powers enable tax authorities to compel discovery, attendance, and document production with procedural safeguards.
    Clause 246 vests specified income tax authorities with civil court-equivalent powers for discovery, inspection, compulsory attendance, production of books and documents, examination on oath, and issuance of commissions; permits exercise of those powers in the absence of pending proceedings where there is a reason to suspect or by Board notification; authorises impounding of produced documents subject to recorded reasons, a limited retention period excluding holidays, and sanctioned extensions.
    Act RulesBills
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    Faceless jurisdiction transforms tax administration by institutionalizing remote assessment and team-based dynamic jurisdiction.
    Clause 245 creates a statutory Scheme for faceless jurisdiction, authorising the Central Government to operate specified income-tax powers and functions remotely, including vesting jurisdiction in assessing officers, transferring cases, and ensuring continuity on change of incumbency; it permits notifications to modify Act provisions to implement the Scheme and requires such notifications to be laid before Parliament, balancing administrative flexibility with concerns about the scope of delegated legislation and safeguards for procedural fairness.
    Act RulesBills
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    Change of incumbent of an office: successor may continue proceedings but assessee can demand reopening or rehearing.
    Clause 244 provides that when an income-tax authority ceases to exercise jurisdiction and is succeeded by another, the successor may continue the proceeding from the stage left by the predecessor, and before such continuation the assessee may demand that the previous proceeding or any part thereof be reopened or that the assessee be reheard before any assessment order is passed.
    Act RulesBills
    Show AI Summary
    Power to transfer cases: modernised transfer framework preserves opportunity to be heard while enabling cross jurisdictional transfers.
    Clause 243 empowers designated senior income tax authorities to transfer any "case"-defined to include pending, completed and future proceedings-among Assessing Officers within or across jurisdictions; transfers between different authorities require agreement or, failing that, Board intervention. The clause mandates, where practicable, a reasonable opportunity of being heard and recording of reasons, exempts intra city/locality transfers from prior hearing, permits transfers at any stage without re issuing notices, and consolidates authority designations under the term "specified income tax authority."
    Act RulesBills
    Show AI Summary
    Assessing Officer jurisdiction clarified: territorial nexus, strict time bars and internal administrative resolution govern assessment authority.
    The clause anchors AO jurisdiction to the taxpayer's principal place of business, profession, or residence and empowers a specified income-tax authority to determine jurisdictional questions, with escalation to the Board where multiple authorities are involved. It mandates strict time limits for raising jurisdictional objections linked to notice service or assessment stages, requires AO referral of unresolved objections before completing assessment, and preserves AO powers over income arising within their area despite jurisdictional disputes.
    Act RulesBills
    Show AI Summary
    Centralized jurisdiction and delegation: Board directions reallocate tax authorities' powers, shaping jurisdictional clarity and administrative flexibility.
    Clause 241 vests income-tax authorities with powers exercisable in accordance with directions issued by the Board, permits higher authorities to exercise functions of lower authorities, authorizes delegated written orders for subordinates, and sets jurisdictional criteria including territorial area, persons, classes of income and cases. It enables the Board to issue general or special orders empowering specified senior officers to perform others' functions, contains deeming provisions treating references to the Assessing Officer as references to substituted officers and removes certain approval requirements, and expands notification powers to prescribe the manner of returns and designate responsible authorities.
    Act RulesBills
    Show AI Summary
    Taxpayer's Charter mandated: statutory duty to adopt a charter, but enforceability and remedies remain undefined.
    Clause 240 of the Income Tax Bill, 2025 and Section 119A of the Income-tax Act require the Central Board of Direct Taxes to adopt and declare a Taxpayer's Charter and empower the Board to issue orders, instructions, directions or guidelines for its administration. Both provisions mandate adoption while leaving substantive content, enforceability, remedies, review, and stakeholder consultation to the Board's discretion, creating interpretive issues concerning legal status, variability of protections, and mechanisms for accountability.
    Act RulesBills
    Show AI Summary
    Administrative instruction power guides tax authorities, subject to non interference in individual cases and parliamentary oversight.
    Clause 239 grants the Board a broad administrative instruction power to issue binding orders and directions to income tax authorities for uniform administration, subject to safeguards: it cannot direct outcomes in individual cases or interfere with appellate discretion. The clause permits targeted interventions-general or special orders for assessment and collection, condonation of belated claims by non appellate authorities, and relaxation of deduction requirements where default is beyond the assessee's control and compliance occurs before completion of assessment-and requires reasons and parliamentary laying of certain relaxation orders.
    Act RulesBills
    Show AI Summary
    Control of tax authorities: Board may notify subordination of income-tax authorities, affecting jurisdiction and publication standards.
    Clause 238 and Section 118 empower the Board to issue notifications directing that specified income-tax authorities be subordinate to other specified authorities; this confers broad administrative control over hierarchies and supervision while remaining subject to administrative-law limits. A key textual difference is Clause 238's omission of an explicit requirement for publication in the Official Gazette, raising questions about the formal mode of notification, transparency, and enforceability that subordinate rules or judicial interpretation should address.
    Act RulesBills
    Show AI Summary
    Appointment of income-tax authorities: Central Government retains primary power with controlled delegation and service-rule safeguards.
    Clause 237 vests primary appointment authority for income-tax authorities in the Central Government while authorising delegation to the Board and specified senior officers for appointments below Deputy/Assistant Commissioner, and permits authorised income-tax authorities to appoint executive or ministerial staff, all subject to rules and orders regulating conditions of service and Board authorisation.

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      CUSTOMS DUTY EXEMPTIONS / CONCESSIONS BEING ALLOWED TO LAPSE

      24 July, 2024

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      Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

      Certain BCD exemptions entries under S No. 50/2017-Customs dated 30.6.2017 and other notifications are being allowed to lapse with effect from 30.9.2024.

      (a) The following entries of notification no. 50/2017-Customs dated 30.6.2017 are being allowed to lapse with effect from 30.9.2024:

      S. No.

      S N of 50/2017 Customs

      Description

      1.

      478

      Wireless apparatus, accessories and parts as specified in List 29 imported by a licensed amateur radio operator

      2.

      353

      Foreign currency coins when imported into India by a Scheduled Bank

      3.

      387

       Zinc metal recovered by toll smelting or toll processing from zinc concentrates exported from India for such processes

      4.

      441

      Spinnerettes made inter alia of Gold, Platinum and Rhodium or any one or more of these metals, when imported in exchange of worn-out or damaged spinnerettes exported out of India

      5.

      238

      Organic/inorganic Coating material for manufacture of electrical steel

      6.

      254

      Catalyst for manufacture of cast components of Wind Operated Electricity Generator

      7.

      255

      Resin for manufacture of cast components of Wind Operated Electricity Generator

      8.

      277A

      Calendared plastic sheet for manufacturing of Smart Card under chapter heading 8523

      9.

      339

      Concessional rate on import of Toughened glass with low iron content and transmissivity of minimum 91% and above, for use in manufacture of solar thermal collectors or heaters

      10.

      421

      Specified goods required for basic telephone service, cellular mobile telephone service, internet service or closed users’ group 64 KBPS domestic data network via INSAT satellite system service and parts, for manufacture of the goods

      11.

      479

      Mono or Bi polar Membrane electrolysers and parts thereof including secondary brine purification components, jumper switches, filtering elements for hydrogen filters for caustic soda or potash units; Membrane and parts thereof or other parts for caustic soda or potash units;

      12.

      475

      Specified goods including scramblers, descramblers, encoders, decoders, jammers, network firewalls, network sniffers, scanners and monitoring systems, probes for data monitoring and SMS/MMS monitoring systems

      13.

      482

      Newspaper page transmission and reception facsimile system or equipment; and Telephoto transmission and reception system or equipment

      14.

      495

      Batteries for electrically operated vehicles, including two and three wheeled electric motor vehicles.

      15.

      497

      Active Energy Controller (AEC) for use in manufacture of Renewable Power System (RPS) inverters

      16.

      579

      Survey (DGPS) instruments, 3D modeling software for ore body simulation cum mine planning and exploration (geophysics and geochemistry) equipment required for surveying and prospecting of minerals

      17.

      419

      Aluminium Oxide for manufacture of washcoat of catalytic converter

      18.

      420

      Clay 2 powder for use in ceramic substrate for catalytic convertor

      19.

      340

      Solar tempered glass or solar tempered (anti-reflective coated) glass for use in manufacture of solar cells/panels/modules

      20.

      565

      Specified goods for use in the manufacture of Flexible Medical Video Endoscope [heading 9018]

      21.

      566

       Specific input goods for manufacture of syringes, needles, catheters and cannulae

      22.

      568

      Parts and components for manufacture of blood pressure monitors and blood glucose monitoring system (Glucometers)

      Note: Description of entries is indicative. Notification may be referred to for complete description.

      (b) The following notifications are being allowed to lapse with effect from 30.9.2024:

      S. No

      Notification No.

      Description

      1.

      97/99-Customs dated 21 July 1999

      Exempts BCD and additional duty under Sections 3(1), 3(3) and 3(5) on standard gold bars imported by a RBI authorised bank

      2.

      30/2004-Customs dated 28 January 2004

      Provides full exemption from BCD to second-hand computers/accessories and peripherals received as donation by schools, charitable institutions.

      3.

      102/2007-Customs dated 14 September 2017

      Provides exemption from Special Additional Duty (SAD) levied vide section 3(5) of CTA on to all goods imported for subsequent sale when IGST, CGST, SGST or UTGST paid by importer.

      4.

      45/2005-Customs dated 16 May 2005

      Provides exemption from Special Additional Duty levied under Section 3(5) of CTA on goods cleared from SEZ to DTA.

      5.

      151/94-Customs dated 13 July 1994

      Provides exemption to imports of duty-paid fuel and lubricating oil on aircrafts taken during the outward flight; goods imports by United Arab Airlines; aircraft engines, spares imported by Indian Airlines and Air India International. Re-import entries will operate from re-import notification 45/2017-Cus

      6.

      26-Customs dated 19th February 1962

      Provides exemption from import duty under the Sea Customs Act on catering cabin equipment, food and drink on re-importation by aircrafts of the Indian Airlines Corporation from foreign flights

      Note: Description of entries is indicative. Notification may be referred to for complete description.


      Full Text:

      Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

      Topics

      ActsIncome Tax