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    Judicial and Legislative Perspectives on Mens Rea in Income Tax Prosecutions :Clause 490 of the Inco...
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    Karta and Member Liability for Tax Offences : Clause 488 of the Income Tax Bill, 2025 Vs. Section 27...
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    Evolution of Statutory Offences Against Tax Recovery in India : Clause 475 of the Income Tax Bill, 2...
    Penal Provisions for Non-Compliance during Tax Inspections : Clause 474 of the Income Tax Bill, 2025...
    Penal Consequences for Non-Compliance with Tax Authority Orders : Clause 473 of the Income Tax Bill,...
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    Act RulesBills
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    Presumption of culpable mental state shifts evidentiary burden to accused to disprove intent beyond reasonable doubt.
    Clause 490 mandates that once the prosecution establishes the actus reus, the court shall presume the existence of a culpable mental state-broadly defined to include intention, motive, knowledge, belief and reason to believe-and permits the accused to rebut that presumption only by proving absence of such mental state beyond reasonable doubt.
    Act RulesBills
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    Presumption regarding assets and documents found in searches shifts evidentiary burden, now including virtual digital assets.
    Clause 489 creates a rebuttable presumption that assets (including virtual digital assets) and books or documents found in a person's possession during an authorised search, or received via requisition, are presumed to belong to that person and that documents' contents are true when tendered in prosecution, applied "so far as may be" by reference to the Bill's presumption provision and extending to other persons identified by the Bill's connected-person provision.
    Act RulesBills
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    Presumption of karta guilt shifts evidential burden, requiring demonstration of due diligence to avoid prosecution.
    Clause 488 places primary criminal responsibility on the karta of a Hindu Undivided Family by deeming the karta guilty of an offence by the HUF, subject to statutory defences of lack of knowledge or proof of having exercised all due diligence. It further deems any member guilty where the offence is proved to have been committed with that member's consent or connivance or is attributable to their neglect, creating independent member liability while preserving the karta's available exculpatory defences.
    Act RulesBills
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    Corporate officer liability: deeming provision shifts initial burden to accused, with due diligence defence for tax offences.
    Where a company commits an income-tax offence, the company and every person who was in charge of, and responsible to, the company for the conduct of the business at the time are statutorily deemed guilty and liable to prosecution, subject to a defence that the individual lacked knowledge or exercised all due diligence to prevent the offence; separate liability arises where the offence occurred with the consent, connivance, or neglect of officers, companies are punishable by fine while individuals may face full penal consequences, and definitions explicitly include firms and associations of persons.
    Act RulesBills
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    Reasonable cause defence limits criminal liability for certain tax compliance failures, protecting bona fide taxpayers from prosecution.
    Clause 486 creates a non obstante statutory reasonable cause defence prohibiting punishment for failures under the specified sections of the Income Tax Bill, 2025 when the accused proves reasonable cause. The provision places the burden of proof on the accused, preserves judicial fact specific assessment of reasonable cause, and operates to limit prosecutions for bona fide or uncontrollable lapses while directing enforcement attention to willful or egregious defaults.
    Act RulesBills
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    Enhanced penalties for repeat tax offences impose mandatory imprisonment and fine upon subsequent convictions under specified tax provisions.
    A prior judicial conviction under any specified income tax offence triggers enhanced punishment: a person again convicted under any of those listed offences is subject to mandatory rigorous imprisonment and a mandatory fine, regardless of whether the subsequent conviction is for the same or a different listed offence; judicial discretion governs the precise sentence within the prescribed range, and the provision applies only after a prior conviction, not mere charge or prosecution.
    Act RulesBills
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    Abetment of false returns: broadened criminal exposure for facilitators with mandatory imprisonment and fines for culpable conduct.
    Clause 484 criminalises abetment or inducement in making or delivering false tax-related statements, requiring that the abettor know the falsity or not believe the statement to be true. Punishment is tiered by the quantum sought to be evaded, with mandatory minimum imprisonment terms and fines, while procedural details and definitions such as "induce" are not specified, raising interpretive and evidentiary challenges. The clause mirrors prior law's structure but broad wording could implicate advisors and intermediaries absent judicial or legislative clarification.
    Act RulesBills
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    Falsification of accounting records: criminal liability for wilful false entries intended to enable another person to evade tax.
    Clause 483 makes it an offence to wilfully make or cause false entries in books of account or other documents with intent to enable another person to evade tax, interest, or penalty; it requires proof of wilful conduct and intent but not proof that the beneficiary actually evaded liability, covers physical and electronic records relevant to tax proceedings, and prescribes rigorous imprisonment and a fine.
    Act RulesBills
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    False verification offences: criminal liability requires proved knowledge or recklessness, with graded imprisonment and mandatory fines.
    The provision criminalises making false statements in any statutory verification or delivering false accounts where the person knows or believes the statement to be false or does not believe it to be true. Prosecution must prove this mental element beyond reasonable doubt. A graded penalty applies according to the financial impact of the falsity: substantial evasion attracts a higher term of rigorous imprisonment while other cases attract a lower term, and a fine is mandatorily imposed in addition to imprisonment.
    Act RulesBills
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    Willful failure to produce accounts triggers criminal liability including imprisonment and mandatory fine under the new tax provision.
    Clause 481 establishes a penal offence for willful failure to produce accounts and documents called for by a notice under section 268(1), or willful non compliance with a direction under section 268(5), punishable by rigorous imprisonment for up to one year and liability to fine, with criminal prosecution requiring proof of willfulness beyond reasonable doubt and adherence to procedural safeguards; the clause mirrors prior law while leaving the fine quantum unspecified and raising interpretative issues regarding the threshold for willfulness and potential overlap with other provisions.
    Act RulesBills
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    Wilful failure to furnish return in search cases creates criminal liability, exposing taxpayers to imprisonment and fines.
    Clause 480 penalises a person who, following a search and pursuant to a notice under section 294(1)(a), wilfully fails to furnish a return of income within the prescribed time. The provision requires proof of deliberate non compliance, treats the offence as criminal, and prescribes imprisonment along with a court levied fine, while prosecutions remain subject to ordinary criminal procedure and due process safeguards.
    Act RulesBills
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    Willful failure to file returns attracts graded criminal penalties including imprisonment and fine; an extended cure period limits prosecutions.
    Clause 479 criminalizes the willful failure to furnish returns of income, applying to statutory filing obligations and notice-triggered duties, and establishes a graded criminal penalty regime tied to the tax that would have been evaded. It preserves a mens rea requirement, mandates imprisonment and fine across tiers, and provides exemptions including a one-year cure period to avoid prosecution and a de minimis exception for non-corporate taxpayers, while raising interpretative issues on the definition of wilfulness and calculation of evaded tax.
    Act RulesBills
    Show AI Summary
    Wilful tax evasion criminalisation: updated offence framework tightens penalties and preserves additional monetary sanctions for deliberate under-reporting.
    Clause 478 establishes an offence of wilful attempt to evade tax, penalty, or interest, including under-reporting, distinguishing evasion of liability from evasion of payment. It prescribes graded sentences with discretionary fines and makes offenders liable to any other penalties under the Act. The provision's inclusive definition-false entries, false statements, wilful omissions, and other enabling circumstances-broadens prosecutorial scope while retaining the requirement to prove mens rea and preserving procedural safeguards for prosecution.
    Act RulesBills
    Show AI Summary
    Failure to remit tax collected at source: criminal liability retained with a filing linked safe harbour to encourage timely compliance.
    Clause 477 criminalizes failure to remit tax collected at source, adopting a strict liability approach that imposes custodial sentence and fine while offering a statutory safe harbour where TCS is deposited on or before the time prescribed for filing the TCS statement, thereby aligning penal consequences and procedural exemption with the existing framework.
    Act RulesBills
    Show AI Summary
    Criminal liability for failure to remit TDS expands enforcement and broadens managerial responsibility, with strict penalties.
    Clause 476 criminalizes failure to deposit taxes deducted or collected at source under Chapter XIX-B, extending liability to those who "pay or ensure payment" and prescribing rigorous imprisonment and fine. A proviso bars prosecution if the tax is credited to the Central Government on or before the time prescribed for filing the relevant TDS statement, while cross references to notes and tables expand the catalogue of covered transactions and may complicate interpretation.
    Act RulesBills
    Show AI Summary
    Fraudulent asset dissipation criminalized: intent-based offence bars transfers aimed at defeating prescribed tax recovery proceedings.
    Clause 475 penalizes the fraudulent removal, concealment, transfer, or delivery of any property or interest with the intent to prevent it from being taken in execution of a prescribed recovery certificate, requiring proof of deceitful intent and applying to tangible and intangible interests; it retains the punitive framework of rigorous imprisonment and fine while replacing an explicit Second Schedule reference with a flexible "as prescribed" linkage to recovery procedures.
    Act RulesBills
    Show AI Summary
    Failure to provide inspection facilities criminalises obstruction during tax inspections, attracting imprisonment and fine under the new bill.
    Clause 474 of the Income Tax Bill, 2025, makes it an offence to fail to afford an authorised officer the necessary facility to inspect books of account or other documents under section 247(1)(b)(ii), punishable with rigorous imprisonment for up to two years and a fine. The clause largely mirrors Section 275B of the 1961 Act, raises interpretive issues about the definition of "necessary facility" and mens rea, and creates potential overlaps with other penal provisions, while preserving continuity in enforcement policy.
    Act RulesBills
    Show AI Summary
    Contravention of tax authority orders may attract imprisonment and fine under the new income tax framework.
    Clause 473 establishes an offence for contravening orders under section 247(1)(viii) or (4), penalising such contraventions with rigorous imprisonment up to the statutory maximum and a fine. The clause focuses on breaches concerning custody, retention, or handling of assets or records during investigative processes. It does not specify mens rea or procedural attributes such as cognizability or bailability, so application and defences will be shaped by judicial interpretation and the Bill's broader procedural framework.
    Act RulesBills
    Show AI Summary
    Limitation period for tax penalties: quarter based uniform timeline aligns penalty orders with assessment and appellate outcomes.
    Clause 472 standardises the limitation for imposing tax penalties by prescribing a uniform six month period measured from the end of the quarter tied to the completion of proceedings, appellate or revisional orders, or issuance of a penalty notice; it permits revision of penalty orders to reflect subsequent assessment modifications, mandates a reasonable opportunity to be heard before adverse penalty action, and excludes rehearing and judicial stay periods from limitation computation.
    Act RulesBills
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    Natural justice in tax penalties: hearing rights and hierarchical approval govern imposition and administrative oversight under new bill.
    Clause 471 requires that no penalty be imposed without the assessee being heard or given a reasonable opportunity, mandates prior Joint Commissioner approval for penalties exceeding specified officer thresholds, and requires that penalty orders passed by authorities other than the Assessing Officer be sent to the Assessing Officer. It mirrors core safeguards of the existing law but omits scheme enabling provisions for faceless, technology driven procedures and transitional rules, creating potential uncertainties over thresholds, definition of reasonable opportunity, procedural delays, and modernization.

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

      24 July, 2024

      Contents
      Notifications
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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