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    Act RulesIncome Tax
    Comparison of section 242 "Jurisdiction of Assessing Officers." between the Income-Tax Act, 2025 (as...
    Act RulesIncome Tax
    Comparison of section 240 "Taxpayer's Charter." between the Income-Tax Act, 2025 (as passed) and the...
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    Act RulesIncome Tax
    Show AI Summary
    Assessing Officer jurisdiction defined by place of business or residence; intra departmental determination and strict time bars follow.
    Section 242 defines Assessing Officer jurisdiction vested by directions/orders under section 241(1)-(3): jurisdiction for businesses attaches to the place of business or principal place, and for others to residence. Jurisdictional disputes are to be determined by specified income tax authorities or, where those authorities disagree, by the Board or a Board designated authority. The section bars late challenges to jurisdiction by reference to specified notice periods and assessment completion events, requires AOs to refer unresolved timely challenges for departmental determination before assessing, and preserves AO powers over income within the vested area; the enacted text omits certain cross references present in the originating bill.
    Act RulesIncome Tax
    Show AI Summary
    Taxpayer's Charter: Board empowered to adopt and direct administration, granting wide administrative discretion over implementation.
    Section 240 obligates the Board to adopt and declare a Taxpayer's Charter and to issue orders, instructions, directions or guidelines to other income-tax authorities for its administration; the Board is not defined here and the phrase "as it considers fit" grants wide administrative discretion. The provision is enabling and administrative in character, lacks Charter content, enforcement mechanisms, timelines and definitions of affected authorities, and the practical effect depends on subsequent instruments implementing the Charter.
    Act RulesIncome Tax
    Show AI Summary
    Board power to issue binding administrative instructions, limited to avoid directing case outcomes and protecting appellate discretion.
    The Board is empowered to issue binding orders, instructions and directions to subordinate income tax authorities for uniform administration while being expressly prohibited from directing a specific outcome in any particular case or interfering with appellate officers' discretion. The Board may issue general or special orders to set procedural guidelines, publish them for public guidance, authorise non appellate authorities to admit time barred claims to alleviate genuine hardship, and relax specified procedural requirements where non compliance was beyond the assessee's control, subject to reasons and parliamentary laying of such relaxation orders.
    Act RulesIncome Tax
    Show AI Summary
    Appointment powers: Central Government may appoint and delegate tax authority appointments, subject to service rules and orders.
    Section 237 vests plenary appointment power for income-tax authorities in the Central Government, allows delegation to the Board and specified senior tax officers to appoint officers below the rank of Deputy Commissioner or Assistant Commissioner, and permits Board authorised income-tax authorities to appoint necessary executive and ministerial staff; both delegation and staffing powers are expressly qualified "subject to the rules and its orders regulating the conditions of service of persons in public services and posts."
    Act RulesIncome Tax
    Show AI Summary
    Tonnage tax reserve requirement ties tax benefits to reinvestment and training; non compliance ends tonnage tax option.
    Section 232 requires tonnage tax companies to credit a mandated proportion of book profit from qualifying shipping activities to a Tonnage Tax Reserve Account annually, permitting use of the reserve within a fixed period for acquisition of qualifying new ships or for operating qualifying ships while prohibiting distributions or offshore asset creation; misuse or non utilisation causes apportionment and taxation of the relevant shipping income, and repeated failures in reserve creation or in meeting training and charter in limits lead to cessation of the tonnage tax option. Reporting, separate books and prescribed certificates are required, and several operational details are left to delegated rules.
    Act RulesIncome Tax
    Show AI Summary
    Tonnage tax election: structured application, limited renewal and extended re entry bar on opting into the regime.
    Tonnage tax election requires a qualifying company to apply to the Joint Commissioner in the prescribed form and manner within the statutory initial window; the Commissioner may request documents, must afford a reasonable opportunity to be heard before refusing, and must issue a written order within a fixed decision period. Approval makes the scheme applicable from the tax year of election and keeps the option in force for a defined multi year term; cessation events and a restricted renewal window are specified, and a prolonged bar prevents re entry after voluntary opt out, default, or exclusion.
    Act RulesIncome Tax
    Show AI Summary
    Exclusion of deductions and losses: tonnage tax confines shipping losses within the tonnage regime, barring cross set off.
    The tonnage tax regime confines tax treatment of qualifying shipping operations by treating general loss and deduction provisions as having been applied within each relevant tonnage tax year, prohibiting carry forward or set off of specified losses relating to qualifying ships while under the scheme, and requiring depreciation and pre option loss treatment to reflect deductions as if claimed and allowed; any apportionment of pre option losses must be made on a reasonable basis.
    Act RulesIncome Tax
    Show AI Summary
    Depreciation allocation for tonnage tax assets: apportioned WDV creates separate qualifying blocks and governs capital gains treatment.
    Clause 229 requires first-year depreciation for the tonnage tax scheme to be computed on the tax written down value apportioned between qualifying and non-qualifying ships using book WDV proportions; the apportioned qualifying amount forms a separate block for depreciation, transfers between blocks follow prescribed proportional formulas on change of use, and disposals of qualifying assets are taxed as capital gains with section 74 applied to the qualifying block's WDV.
    Act RulesIncome Tax
    Show AI Summary
    Relevant shipping income exclusion from book profit narrowed to a specific book profit computation, clarifying tonnage tax scope and compliance.
    Relevant shipping income comprises profits from enumerated core ship operations and prescribed incidental activities for a tonnage tax company; incidental receipts above the prescribed threshold are excluded from the tonnage measure and taxed generally. Transfers between tonnage and non tonnage businesses are to be tested at market value or, where impracticable, computed on a reasonable basis by the Assessing Officer. Common costs and depreciation must be reasonably allocated, losses in relevant shipping income are ignored for tonnage computation, and the book profit or loss from relevant shipping activities is excluded from the company's book profit for the specified computation under section 206.
    Act RulesIncome Tax
    Show AI Summary
    Tonnage tax scheme requires separate business treatment and distinct computation for qualifying shipping operations upon exercise of option.
    An elective tonnage tax scheme treats qualifying shipping operations as a separate business requiring separate computation of profits; operation includes owned, chartered and partial charter arrangements. Tonnage income is computed under the Part's computation provision and deemed to be profits of business, with relevant shipping income not chargeable where the scheme applies. The regime is available only if the company exercises the statutory option; absent the option, general provisions apply.
    Act RulesIncome Tax
    Show AI Summary
    Tonnage tax option for ship operators permits elective computation and deems such income as business income.
    The provision allows companies operating qualifying ships to elect a special tonnage computation and deems the resulting amount to be profits and gains of business or profession, while the enacted text limits the clause's non-application by preserving the operation of certain specified provisions.
    Act RulesIncome Tax
    Show AI Summary
    Deeming rule: distributions retain trust character, requiring payer reporting and trust taxation at maximum marginal rate.
    Clause 223 deems distributions by a business trust to retain the same character and proportion in the hands of unit holders, charges the trust's total income at the maximum marginal rate subject to qualifying statutory mechanisms, treats specified scheduled items as unit holder income in the year of receipt, excludes certain sums from the deeming rule, and requires payers to furnish prescribed statements detailing the nature of distributed amounts.
    Act RulesIncome Tax
    Show AI Summary
    Tax on investment income: enacted wording omits explicit treatment of long term capital gains on non specified assets, creating rate uncertainty.
    Special tax rates apply to certain income categories of a non-resident Indian: a specified rate on income from investment, a separate concessional rate on long-term capital gains from a "specified asset," and general rates for residual total income; the enacted text omits an explicit allocation of long-term capital gains on non-specified assets into the investment-income category, creating uncertainty whether such gains attract the special investment rate or fall to residual rates.
    Act RulesIncome Tax
    Show AI Summary
    Foreign exchange asset classification determines tax treatment of income from assets acquired in convertible foreign exchange.
    Definitions for sections 213-218 tie asset status to acquisition in convertible foreign exchange: a foreign exchange asset is any specified asset acquired with convertible foreign exchange; investment income is any income from such an asset; long-term capital gains are capital gains on a foreign exchange asset that is not short-term; non-resident Indian is a person not resident who is either an Indian citizen or of Indian origin; specified asset lists shares, certain debentures, certain deposits and Central Government securities, with a government notification power and a changed statutory cross-reference for government securities between Bill and Act.
    Act RulesIncome Tax
    Show AI Summary
    Taxation of foreign institutional investors' securities income: fixed-category rates apply and residual income taxed under general rates.
    The provision creates a category-based tax regime for Foreign Institutional Investors and specified funds, requiring segregation of securities income and capital gains into prescribed heads and applying fixed tax rates to each head, with residual income taxed at general rates. Specified funds are taxed only on amounts attributable to units held by non-residents (attribution to be prescribed). Where gross total income is solely securities income, routine deductions are disallowed; where mixed, specified incomes are excluded for deduction computations. A specified loss-set-off mechanism is excluded for the listed capital gains.
    Act RulesIncome Tax
    Show AI Summary
    Tax on foreign currency bonds and GDRs: clarified computation and fixed-source tax treatment for non resident incomes.
    Non residents are subject to special tax treatment on interest from specified bonds and dividends on GDRs acquired in foreign currency through an approved intermediary, and on long term capital gains from transfer of those assets; the enacted section prescribes separate tax treatment for each income head, clarifies computation by requiring income tax be computed at the specified rate applied to the corresponding income, and conditions applicability on foreign currency acquisition, intermediary approval, specified deduction exclusions, return filing exceptions and transitional/amalgamation treatment.
    Act RulesIncome Tax
    Show AI Summary
    Preferential tax regime for offshore fund income from foreign currency purchased units, segregating specified incomes and limiting deductions.
    Section 208 creates a separate tax regime for overseas financial organisations investing in specified Indian units: income from units purchased in foreign currency and long term capital gains on transfer of such units are taxed at fixed rates while remaining income is taxed ordinarily. The provision restricts deductions when gross total income consists solely of those specified incomes and requires segregation of specified incomes so Chapter VIII deductions apply only to the residual income. Eligibility depends on arrangements with specified Indian entities and SEBI approval.
    Act RulesIncome Tax
    Show AI Summary
    Head specific tax rates for cross border dividends, royalties and technical fees, with restricted deductions and targeted concessions.
    A head specific source taxation regime imposes fixed tax rates on dividends, specified interest, distributed income, unit income, royalties and fees for technical services for non residents and foreign companies, aggregates tax as the sum of prescribed head rates plus tax on residual income, prescribes targeted preferential rates for certain investment vehicles, and restricts deductions in specified scenarios while relying on cross references to other provisions for definitions and exclusions.
    Act RulesIncome Tax
    Show AI Summary
    Minimum tax regime deeming book profit/adjusted income taxable when regular tax is below prescribed minimum, imposing MAT/AMT.
    Section 206 creates a minimum tax regime whereby, if tax under general provisions is less than a prescribed percentage of book profit (for companies) or adjusted total income (for others), that book profit/adjusted total income is deemed total income and taxed at the prescribed rate. The provision prescribes formulaic add backs and reductions to compute book profit, addresses IND AS transition adjustments, specifies exclusions and carve outs, mandates an accountant's certificate in prescribed form, and provides carry forward and credit rules for excess MAT/AMT paid.
    Act RulesIncome Tax
    Show AI Summary
    Concessional tax computation limited by eligibility rules, asset provenance constraints, and AO power to recharacterise excess profits.
    Clause 205 sets that, for specified concessional provisions, total income must be computed without certain listed deductions or exemptions, conditions eligibility on the origin and nature of the business and on limits for previously used plant, and empowers the Board (with Central Government approval) to issue guidelines subject to parliamentary laying. The Assessing Officer may determine and attribute profits reasonably deemed in excess of ordinary profits where arrangements inflate returns, applying the arm's length principle for specified domestic transactions.

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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

      ActsIncome Tax