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    Act Rules Bills
    Penalty Provisions for Under-Reporting and Misreporting of Income under Income-tax Law : Clause 439 ...
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Act Rules Bills
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Penalty for under-reporting: preserves formula-based computation and differential rates for misreporting, and procedural safeguards.
Clause 439 establishes a formula-based penalty framework empowering a defined Competent Authority to impose penalties for seven specified scenarios of under-reporting, prescribes quantified computation methods for first assessments, reassessments and deemed income, preserves exceptions for bona fide explanations and documented transfer pricing adjustments, requires written orders and bars double penalisation, and differentiates penalties by imposing a higher sanction for misreporting defined by a specified list of misrepresentation and suppression acts.
Act Rules Bills
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Mode of payment restrictions for property linked receipts expanded to include any monetary receipt related to proposed transfers.
Clause 189 of the Income Tax Bill, 2025 defines "banking company", certain rural finance institutions, "specified sum", and "specified advance" to frame non cash payment rules for receipts and repayments linked to immovable property. It mirrors the Explanation to Section 269T in several respects-notably the definition of "specified advance"-but adds an explicit "specified sum" to capture any monetary receipt related to a proposed property transfer whether or not the transfer occurs, thereby potentially broadening regulatory coverage and creating interpretative issues where payments overlap the two terms.
Act Rules Bills
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Mode of repayment restrictions: non cash repayment mandated for covered loans and advances to ensure traceability and compliance.
Clause 188 mandates non cash repayment of loans, deposits and specified advances by account payee cheque, bank draft, electronic clearing or other prescribed electronic modes when the amount or the aggregate held by the person equals or exceeds twenty thousand rupees, with a higher threshold of two lakh rupees for primary agricultural credit societies and related rural banks. It exempts repayments to Government and regulated banking or notified entities, allows intra branch crediting by banks, broadly defines "loan or deposit," covers advances related to immovable property, and emphasizes aggregation to prevent splitting transactions.
Act Rules Bills
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Digital payment mandate requires businesses to provide prescribed electronic modes, promoting traceability and reducing cash transactions.
Clause 187 mandates that every person carrying on business whose sales, turnover, or gross receipts exceed the prescribed monetary threshold in the immediately preceding tax year shall provide facilities for accepting payment through prescribed electronic modes, in addition to any other electronic modes offered; rule-making will specify the required modes, and compliance carries operational, record-keeping and penal implications while raising interpretive issues around prescription, group aggregation, and regulatory harmonization.
Act Rules Bills
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Restriction on high value cash transactions: mandatory use of prescribed banking or electronic modes to enhance traceability and compliance.
Clause 186 prohibits receipt of cash at or above the specified monetary threshold except through account payee cheque, bank draft, electronic clearing, or other prescribed electronic modes, applying the ban to aggregated daily receipts from the same person, single transactions, and transactions linked to a single event or occasion; exemptions include government and specified banking entities and further classes as notified by the Central Government, while interpretive ambiguities and delegated rulemaking on permissible modes may require administrative clarification.
Act Rules Bills
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Cash transaction restriction: acceptance of loans, deposits and advances must be made only through traceable banking or electronic modes.
Clause 185 prohibits accepting loans, deposits or specified sums in cash when the current transaction, the unpaid balance of prior transactions with the same person, or their aggregate reaches the prescribed threshold, and permits receipt only by account-payee cheque, account-payee bank draft, electronic clearing through a bank account or other prescribed electronic modes; exceptions cover the Government, specified banking and statutory entities, notified bodies, a rural higher threshold for primary agricultural credit societies and a narrow agricultural income exception.
Act Rules Bills
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Definition of High Court clarifies appellate forum for States and Union Territories in tax law, reducing jurisdictional ambiguity.
Clause 374 of the Income Tax Bill, 2025, provides a comprehensive, enumerated definition of "High Court" by designating the specific High Court applicable to each State and Union Territory, updating nomenclature, reflecting post reorganization realities (including Jammu & Kashmir and Ladakh), and replacing reliance on piecemeal adaptation orders; this consolidation reduces jurisdictional uncertainty, aids administrative and judicial efficiency, and highlights the need for legislative updates or transitional provisions if future territorial changes occur.
Act Rules Bills
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Monetary limits on tax appeals: Board may set filing thresholds; non filing does not amount to departmental acquiescence.
Clause 373 authorises the Board to fix monetary limits and other criteria for filing appeals by income tax authorities, permits the Board to revise those limits, and provides that non filing of an appeal in one case does not preclude filing in other years or against other assessees. The clause bars assessees from claiming departmental acquiescence due to non filing and directs tribunals and courts to have regard to the Board's instructions and the circumstances of filing or non filing while leaving the weight of those instructions to judicial discretion.
Act Rules Bills
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Exclusion of time to obtain copy suspends limitation for appeals and applications when copy not provided, subject to diligence.
Clause 372 excludes the day of service and, where a copy was not provided with the notice, the time required to obtain that copy from computation of limitation for appeals and applications; the exclusion is subject to the assessee's reasonable diligence and requires documentary proof of application and receipt, with electronic service and portal access raising specific interpretive issues.
Act Rules Bills
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Consequential amendment of member assessments: appellate modification must trigger authorised adjustments to individual tax liabilities.
Clause 371 requires that when appellate proceedings alter or direct a new assessment of a body of individuals or association of persons, the appellate authority must authorise the Assessing Officer to amend or make a fresh assessment of any member; the authorisation is mandatory, and the Assessing Officer may act only pursuant to that order. The clause modernises appellate references and retains the two-step mechanism while raising interpretive issues concerning the scope of "any member", timelines for action, and the definition of "fresh assessment".
Act Rules Bills
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Execution of Supreme Court cost orders: High Courts may transmit awards for local enforcement under established execution rules.
The High Court, on petition, may transmit an order of the Supreme Court awarding costs to any court subordinate to the High Court for execution; the provision is limited to cost-related orders, is discretionary in application, requires adherence to execution rules and the Code of Civil Procedure, and mirrors the predecessor provision, leaving unresolved questions about the scope of "costs," appropriate subordinate fora, and special procedures where a government entity is the judgment debtor.
Act Rules Bills
Show AI Summary
No automatic stay on tax recovery: assessed tax remains payable during appellate pendency unless a specific judicial stay is granted.
Clause 369 requires that tax determined by an assessment order is payable despite the filing of an appeal to the High Court or Supreme Court, reflecting the No Automatic Stay principle that assessment orders remain enforceable unless a competent forum grants a specific stay; it narrows scope to appeals at the highest judicial levels, streamlines language compared with Section 265, and places onus on taxpayers to obtain interim relief if they seek to defer payment while preserving courts' discretion to grant stays subject to conditions.
Act Rules Bills
Show AI Summary
Faceless tax administration expanded: scheme-making power permits executive modification of tax law subject to parliamentary laying.
Clause 532 grants the Central Government power to notify schemes for any purpose of the Income Tax Act, 2025 to eliminate taxpayer interface and optimize resources, and to direct that Act provisions may be excluded or modified for scheme implementation; notifications must be laid before both Houses of Parliament and existing faceless schemes under the 1961 Act may be amended to ensure continuity.
Act Rules Bills
Show AI Summary
Power to frame schemes expands executive authority to implement faceless, centralized tax administration with parliamentary oversight.
Clause 532 authorizes the Central Government to notify schemes for any purpose under the Income Tax Act, permit notification based exceptions or adaptations of statutory provisions to implement those schemes, amend or continue existing schemes, and requires that such notifications be laid before both Houses of Parliament, thereby enabling faceless, centralized, and technology driven administration while raising concerns about the breadth of delegated legislative power and the indeterminate standard of technological feasibility.
Act Rules Bills
Show AI Summary
Revisionary jurisdiction prevents orders prejudicial to the assessee while ensuring timely administrative review and minimum processing time.
Clause 378 empowers senior tax officials as the Competent Authority to revise subordinate orders suo motu or on application, provided any revision is not prejudicial to the assessee. It prescribes one year limitation periods for initiation, allows condonation for sufficient cause, requires a nominal application fee, mandates disposal within a year from the end of the financial year of filing with specified exclusions for rehearings and judicial stays, and introduces a minimum sixty day residual period after exclusions for completion of revision.
Act Rules Bills
Show AI Summary
Revisionary power: Competent Authority can revise orders prejudicial to revenue after hearing and within limitation.
Clause 377 empowers a defined Competent Authority to call for and examine the record of proceedings and, after giving the assessee an opportunity of being heard and making necessary inquiry, to revise orders that are erroneous and prejudicial to the revenue by enhancing, modifying, cancelling or directing fresh assessments, including specified transfer pricing orders; it sets a two year limitation subject to exceptions to give effect to appellate directions and excludes certain periods from the limitation computation.
Act Rules Bills
Show AI Summary
Appeals to Supreme Court: new bill mirrors CPC procedure but omits a saving proviso, raising interpretive risk.
Clause 368 adopts the Code of Civil Procedure procedures for appeals to the Supreme Court "so far as may be", vests the Court with discretion on costs, and mandates that where a High Court judgment is varied or reversed, effect be given to the Supreme Court's order through the Bill's prescribed execution mechanism. The saving phrase and the absence of an express proviso preserving other reference and stay provisions are central interpretive and practical concerns.
Act Rules Bills
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Certification for Supreme Court appeal restricts access to cases presenting substantial legal questions, streamlining appellate tax litigation.
Clause 367 confines appeals to the Supreme Court from High Court judgments to cases which the High Court certifies as fit for appeal and reframes the source of such appeals to judgments delivered on appeals under section 363, streamlining the previous reference/appeal bifurcation and maintaining a high certification threshold to limit review to substantial questions of law or issues of public importance.
Act Rules Bills
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Multi-judge bench requirement ensures collective resolution of contested legal points in tax appeals under the new bill.
Clause 366 mandates a multi-judge bench requirement for specified tax appeals, directing that matters be heard by not less than two judges and decided according to the majority opinion; if no majority arises, judges must state the precise point of law in dispute, the point is reheard by additional judges, and the final decision on that point is determined by the majority of all judges who have heard the case.
Act Rules Bills
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Substantial question of law: High Court appeals limited to legal issues, streamlining tax appellate review and implementation.
Clause 365 permits appeals to the High Court from Appellate Tribunal orders only when the High Court is satisfied a substantial question of law arises; it prescribes eligible appellants, a time-limited memorandum-based filing, condonation for sufficient cause, High Court formulation and limitation of the question(s) heard (with power to add questions for recorded reasons), reasoned judgments with costs, authority to decide issues not determined or wrongly decided by the Tribunal, application of Civil Procedure rules, and an express duty on the Assessing Officer to give effect to the High Court's judgment.

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Review of Customs duty Exemptions - Review of conditional exemption rates of BCD

24 July, 2024

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

(i) The BCD exemption for the goods covered under following serial numbers of the notification are being extended upto 31st March, 2026 unless specified otherwise.

S. No.

S N of 50/17-Cus

Brief Description

1.

17

Specified Planting materials, namely, oilseeds, seeds of vegetables, tubers, etc.

2.

80A

Algal oil for manufacturing of aquatic feed

3.

90

Lactose for use in manufacture of homeopathic medicines

4.

104

Specified goods used in processing of sea-food

5.

133

Gold ores and concentrates

6.

139

Bunker Fuels namely: (i). IFO 180 CST; (ii). IFO 380 CST; (iii). VLSFO (CTH 27)

7.

150

Naphtha for manufacture of Fertilisers (scope of exemption is being reduced only to Naphtha)

8.

155

Liquefied petroleum gases (LPG) received from unit in SEZ and returned by the DTA unit to the SEZ unit

9.

164

Electrical energy supplied from SEZ unit to DTA

10.

165

Electrical energy supplied from SEZ to DTA

11.

172

Specified goods used in manufacture of silicon wafers or solar wafers, for manufacture of solar cell or module

12.

183

Medical use fission Molybdenum-99 (Mo-99) for use in manufacture of radio pharmaceuticals

13.

184

Pharmaceutical Reference Standard

14.

188

Goods for manufacture of ELISA Kits

15.

191

Maltol for manufacture of deferiprone

16.

204

Anthraquinone or 2-Ethyl Anthraquinone for use in manufacture of Hydrogen peroxide

17.

237

Specified material for manufacture of EVA (Ethylene Vinyl Acetate) sheets or backsheet, which are used in the manufacture of solar photovoltaic cells or modules (Scope of materials which can be imported is being increased)

18.

253

Specified Goods for manufacture of Brushless Direct Current (BLDC) motors

19.

257

Tags, labels, stickers, belts, buttons, hangers or printed bags, imported by bonafide exporters

20.

257A

Specified goods used in manufacture of handicraft items for export when imported by bonafide exporter

21.

257B

Specified goods used in manufacture of textile or leather garments for export when imported by bonafide exporter

22.

257C

Specified goods used in manufacture of leather or synthetic footwear or other leather products for export when imported by bonafide exporter

23.

258

Security fibre, threads, Paper based Taggant, M-feature for use in manufacture of security paper by Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt Ltd, Mysore.

24.

259

Raw materials for manufacture of security fibre and security thread for supply to Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt. Ltd, Mysore for use in manufacture of security paper

25.

260

Goods for the manufacture of specified orthopedic implants (902110)

26.

261

Raw material for manufacture of Copper-T Contraceptive

(i) Alatheon

(ii) Copper Wire

27.

265

Capacitor grades polypropylene granules for manufacture of Capacitor grade plastic

28.

269

Super absorbent polymer for manufacture of adult diapers and specified goods

29.

271

Polytetrametylene ether glycol, (PT MEG) for use in manufacture of spandex yarn

30.

276

Ethylene- propylene- non-conjugated diene rubber (EPDM) for manufacture of insulated wire and cables

31.

279

New or retreated Pneumatic tyres of rubber for use in servicing, repair of maintenance of aircrafts used for operating scheduled air transport service or scheduled air cargo service etc

32.

280

New or retreated Pneumatic tyres of rubber for use in servicing, repair or maintenance of aircraft imported or procured by Aero Club of India/ for flying training purpose/ operating non-scheduled (passenger or charter) services/ AAI for flight calibration purpose

33.

290

Wood pulp for manufacture of newsprint, paper or paperboard

34.

292

Goods imported for manufacture of paper, paper boards, newsprint

35.

293A

Newsprint and uncoated paper imported for printing of newsprint

36.

296A

Lightweight coated paper imported by actual users for printing of magazines

37.

326

Hydrophilic /Hydrophobic Non- Woven, imported for use in the manufacture of Adult Diapers

38.

329

Pile fabrics for the manufacture of toys

39.

333

Moulds, tools and dies, for the manufacture of parts of electronic components or electronic equipment

40.

334

(i) Graphite Felt or Graphite pack for growing silicon ingots (ii) Thin Steel wire used in wire saw for slicing of silicon wafers

41.

345A

Simply Sawn Diamonds

42.

364A

Spent catalyst or ash containing precious metals

43.

368

Ferrous Scrap

44.

374

Magnesium Oxide (MgO) coated cold rolled steel coils for use in manufacture of cold rolled grain oriented (CRGO) steel

45.

375

Specified items for manufacture of cold rolled grain-oriented steel (CRGO) steel

46.

378

Metal parts for manufacture of electrical insulators falling under heading 8546

47.

379

Pipes and tubes for use in manufacture of boilers

48.

380

Forged steel rings for manufacture of special bearings for use in wind operated electricity generators

49.

381

Flat copper wire for use in the manufacture of photo voltaic ribbon for manufacture of solar photovoltaic cell or modules

50.

392

Dies for drawing metal, where imported after repairs from abroad

51.

403

Parts and raw materials for offshore oil exploration

52.

404

Specified items including capital goods and raw materials for off shore oil exploration

53.

415

Parts for manufacture of catalytic convertors

54.

415A

Platinum or Palladium for manufacture of Noble Metal Compounds & Noble Metal Solutions

55.

416

Ceria zirconia compounds for use in the manufacture of washcoat for catalytic converters

56.

417

Cerium compounds for use in the manufacture of washcoat for catalytic converters

57.

418

Zeolite for use in the manufacture of washcoat for catalytic converters

58.

422

Machinery, electrical equipment for use in semiconductor wafer and LCD

59.

423

Machinery, electrical equipment for use in marking and packaging of semiconductor chips

60.

426

Specified goods for the manufacture of semiconductor devices, memory card, IC, solar cell

61.

435

Capital goods for printing industry

62.

442

Bushings made of Platinum and Rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India

63.

446

Parts and components for manufacture of tunnel boring machines

64.

451

Evacuated tubes with three layers of solar selective coating for use in manufacture of solar water heater

65.

462

Ball screws for use in the manufacture of CNC Lathes

66.

463

Linear Motion Guides for use in the manufacture of CNC Lathes

67.

464

CNC Systems for use in the manufacture of CNC Lathes

68.

464A

Goods for manufacture of plastic processing machineries

69.

467

Parts and components of cash dispenser or automatic bank note dispenser

70.

468

Parts for manufacture of Micro ATM, Fingerprint reader/scanner, Iris scanner, Miniaturised POS (Scope of exemption is being limited to import of raw materials only)

71.

471

All parts for use in the manufacture of LED lights

72.

472

All inputs for use in the manufacture of LED driver or MCPCB for LED lights

73.

476

Television equipment, cameras etc for taking films, imported by a foreign film unit or television team

74.

477

Filming equipment of foreign origin if imported into India after having been exported therefrom.

75.

480

Goods imported for being tested in specified test centers

76.

489B

Goods for manufacturing of Microphones

77.

504

Parts and Components of Digital Still Image Video Cameras

78.

509

Parts, components and accessories for manufacture of Digital Video Recorder

79.

510

 Parts, components and accessories for use in manufacture of reception apparatus for television

80.

511

Parts, components and accessories for manufacture of CCTV Camera

81.

512

Specified Parts, components and for use in manufacture of Lithium-ion battery and battery pack

82.

512A

Inputs, parts or sub-parts for use in the manufacturing of Printed Circuit Board Assembly

83.

515A

Open Cell for manufacture of TV Panel

84.

516

The following goods for use in the manufacture of Liquid Crystal Display (LCD) /LED TV Panel

85.

517

Magnetrons for manufacture of domestic microwave ovens

86.

519

Raw materials or parts for use in manufacture of e-Readers

87.

523A

Parts, sub-parts, inputs or raw material for use in manufacture of Lithium-ion cells

88.

527

Lithium-ion cell use in manufacture of battery or battery pack

89.

527A

Lithium-Ion Cell for use in manufacture of battery or battery pack of cellular mobile

90.

527B

Lithium-Ion Cell manufacture of battery or battery pack of EV

91.

534

Parts of gliders or simulators of aircrafts (excluding rubber tyres and tubes of gliders)

92.

535

Raw materials for manufacture of aircraft and parts of aircraft

93.

535A

Parts of aircraft for manufacture of aircraft or for manufacture of parts of aircraft by PSU under Min of Defence

94.

536

Parts, testing equipment, tools and tool-kits for maintenance, repair, and overhauling of aircraft, components or parts of aircrafts

95.

537

All goods of Heading 8802 (except 88026000-spacecraft)

96.

538

Components or parts, including engines, of aircraft of heading 8802

97.

539

(a) Satellites and payloads; (b) Ground equipment brought for testing of (a)

98.

539A

Scientific and technical instruments etc for launch vehicles and satellites

99.

540

Specified goods imported by scheduled air transporter

100.

542

Specified goods imported by Aero Club, Flying Training Institutes

101.

543

Specified goods imported by non-scheduled air transporter

102.

544

Parts (other than rubber tubes), of aircraft of heading 8802

103.

546

Parts (other than rubber tubes), of aircraft of heading 8802

104.

548

Barges or pontoons imported along with ships

105.

551

Cruise ships, Excursion ships

106.

553

Fishing vessels, Tugs and Pusher crafts, light vessels excluding vessels and floating structure imported for break up

107.

555

Vessels like warships, lifeboats excluding vessels and floating structure imported for break up

108.

567

Stainless steel tube and wire, for manufacture of Coronary stents /artificial valve

109.

569

Parts required for manufacture of Ostomy products

110.

570

Medical and surgical instruments, apparatus and appliances including spare parts and accessories thereof

111.

575

Specified Hospital Equipment for use in specified hospitals

112.

578A

Raw materials, for the manufacture of Cochlear Implants

113.

580

X-Ray Baggage Inspection Systems and parts thereof

114.

581

Portable X-ray machine / system

115.

583

Parts and cases of braille watches, for the manufacture of Braille watches

116.

591

Parts of electronic toys

117.

593

Parts of video games for the manufacture of video games

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

(ii) The BCD exemption for the goods covered under following serial numbers of the notification no 50/2017-Customs is being extended upto 31st March 2029.

S. No.

S. No. of 50/2017Cus

Brief Description

1.

212A

Medicines/drugs/vaccines supplied free by United  Nations International Children's Emergency Fund (UNICEF), Red Cross etc

2.

213

Drugs and materials

3.

428

Specified goods imported by accredited press cameraman

4.

429

Specified goods, imported by accredited journalist

5.

549

Capital goods, raw materials and spares for repairs of ocean-going vessels

6.

550

Spare parts and consumables for repairs of ocean going vessels registered in India.

7.

577

Lifesaving medical equipment for personal use

8.

607

Life Saving drugs like Keytruda etc

9.

607A

Lifesaving drugs/medicines for personal use

10.

611

Archaeological artefacts for exhibition in a museum

11.

612

Specified raw material for sports goods

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

Acts Income Tax