Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ----
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    ManualsIncome Tax
    Whether the recognition of retention money, receipt of which is contingent on the satisfaction of ce...
    ManualsIncome Tax
    Is it correct that even service providers are now required to record inventory?
    ManualsIncome Tax
    Does ICDS II apply to the trader or dealer of livestock, agriculture and forest products mineral oil...
    ManualsIncome Tax
    Does provisions of ICDS II apply to shares of a company in which public are not substantially intere...
    ManualsIncome Tax
    Does the provisions of ICDS II apply on derivatives.
    ManualsIncome Tax
    ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific discl...
    ManualsIncome Tax
    As per ICDS-I the Marked to Market loss or an expected loss shall not he recognized unless the recog...
    ManualsIncome Tax
    Since ICDS is not applicable for the purposes of maintenance of books of account, then what is the p...
    ManualsIncome Tax
    Where a term has not been defined under ICDS, nor under the Act, but has different interpretations g...
    ManualsIncome Tax
    Does ICDS apply to computation of Minimum Alternate Tax (MAT) u/s 115JB of the Act or Alternate Mini...
    ManualsIncome Tax
    In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governi...
    ManualsIncome Tax
    Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents...
    ManualsIncome Tax
    Does ICDS apply for the purposes of computing exemption u/s 11 to 13.
    ManualsIncome Tax
    Does ICDS apply to the applicability aspect of the TDS.
    ManualsIncome Tax
    How will ICDS apply to companies which adopted Ind-AS. (Indian accounting standards)
    ManualsIncome Tax
    Whether the provisions of ICDS shall apply to Banks, Non-banking financial institutions, Insurance ...
    ManualsIncome Tax
    Whether ICDS is applicable to Non-Residents whose income is liable to be taxed at a flat rate of tax...
    ManualsIncome Tax
    Can a assessee opt to change his method of accounting from mercantile to cash basis.
    ManualsIncome Tax
    Can ICDS would apply to other categories of taxpayers whose income is taxed under presumptive tax sc...
    ManualsIncome Tax
    Can a assessee can follow different methods of accounting for different sources of income under the ...
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    ManualsIncome Tax
    Show AI Summary
    Retention money recognition as revenue requires reasonable certainty of ultimate collection under ICDS on construction contracts.
    Retention money, as part of overall contract revenue under the ICDS on construction contracts, shall be recognised as revenue only when the contingency tied to performance is satisfied or there is reasonable certainty of its ultimate collection.
    ManualsIncome Tax
    Show AI Summary
    Inventory recording requirement under ICDS II now mandates service providers to maintain inventories and disclose valuation for tax purposes.
    Service providers are required to maintain records of inventories under the ICDS II standard on valuation of inventories, extending mandatory inventory recognition, valuation and disclosure obligations to entities providing services for purposes of income computation.
    ManualsIncome Tax
    Show AI Summary
    Valuation of Inventories: ICDS II applies to traders and dealers of primary commodities while excluding producers.
    ICDS II governs valuation of inventories for income computation and disclosure. The standard is excluded for a producer of primary goods like livestock, agricultural and forest products, mineral oils, ores and gases, but it applies to persons who trade or deal in those commodities; therefore the producer/dealer distinction determines whether ICDS II applies.
    ManualsIncome Tax
    Show AI Summary
    ICDS II valuation excluded for closely held company shares when ICDS VIII classifies them as securities outside its scope.
    Shares of a company in which the public are not substantially interested are excluded from ICDS II valuation even if held as inventory, because ICDS VIII's definition of securities expressly includes such shares, placing them outside ICDS II's scope.
    ManualsIncome Tax
    Show AI Summary
    ICDS II applicability to derivatives: derivatives held as inventory fall under ICDS II because securities exclusion applies.
    Where an assessee holds derivatives as part of inventory, the valuation and related provisions of ICDS II apply because the definition of securities in ICDS VIII expressly excludes derivatives, so such instruments are governed by the inventory valuation standard rather than the securities disclosure regime.
    ManualsIncome Tax
    Show AI Summary
    Disclosure of accounting policies: ICDS requires taxpayers to disclose net ICDS effect in returns and tax audit report.
    ICDS I mandates disclosure of significant accounting policies and requires the net effect on taxable income from application of ICDS to be disclosed in the Return of Income; ICDS disclosures are to be made in the tax audit report in Form 3CD, with no separate disclosure requirement for persons not liable to tax audit.
    ManualsIncome Tax
    Show AI Summary
    Marked-to-market gain recognition: ICDS I's non-recognition rule for MTM loss applies equally to gains.
    Recognition of marked-to-market losses or expected loss is disallowed under ICDS I unless permitted by other ICDS provisions; the same conditional rule applies mutatis mutandis to recognition of marked-to-market gains or expected profit, so gains or anticipated income may not be recognised for income computation unless another ICDS expressly authorises recognition.
    ManualsIncome Tax
    Show AI Summary
    Accounting Policies: treat ICDS I as computation policies affecting taxable income computation, not books of account.
    ICDS I should be read as prescribing computation policies for taxable income so that accrual, going concern, consistency, substance over form and non recognition of mark to market losses apply to income computation under business or other sources, and the disclosure requirement concerns the policies used in computing income rather than the policies used for maintaining books of account.
    ManualsIncome Tax
    Show AI Summary
    Interpretation of undefined tax terms: ICDS provisions generally govern unless declared ultra vires by a competent authority.
    Where a term in the ICDS coincides with terminology in Accounting Standards, the AS interpretation generally applies; where no AS analogue exists, judicial tax-law interpretations ordinarily govern. If a current ICDS provision conflicts with earlier AS or judicial interpretations, the ICDS provision will prevail for tax computation and disclosure unless declared ultra vires by a competent court or authority.
    ManualsIncome Tax
    Show AI Summary
    ICDS applicability: ICDS do not apply to MAT on book profit but apply to AMT on adjusted total income.
    ICDS do not apply to MAT because MAT is computed on book profit as per the Profit and Loss Account under company law, with specific statutory adjustments; ICDS are not incorporated into that book profit basis. ICDS apply to AMT because AMT is calculated on adjusted total income derived from total income determined under the regular tax provisions, and ICDS affect that regular computation.
    ManualsIncome Tax
    Show AI Summary
    Income Computation standards: specific tax-rule provisions prevail over general ICDS when the two provisions conflict.
    ICDS are subordinate general principles for computing income and do not override specific provisions of the Income-tax Rules; where a specific rule governs a particular circumstance, that rule prevails over any inconsistent ICDS guidance.
    ManualsIncome Tax
    Show AI Summary
    ICDS applicability may govern specified transactional tax issues, raising whether prior judicial precedents remain operative.
    The ICDS, notified under section 145(2), are intended to standardise computation of business and other income for the transactional issues they address and apply to assessment years following notification. They were framed after reviewing judicial views to supply authoritative guidance where earlier judicial decisions arose without statutory standards; nevertheless, some ICDS provisions may conflict with those precedents, posing a question about which authority should prevail.
    ManualsIncome Tax
    Show AI Summary
    ICDS application: accounting standards govern business income computation for exempt trusts, triggering ICDS when commercial books are maintained.
    ICDS do not apply to the standalone computation of exemption for charitable entities based on the commercial concept of income; however, when income is taxed under the regular heads, ICDS apply to income classified under Profits and Gains of Business or Profession and Income from Other Sources if books are kept on the mercantile system. If a trust carries on incidental business with separate books, business income must be computed on a commercial basis and ICDS apply to that business income despite entitlement to charitable exemption.
    ManualsIncome Tax
    Show AI Summary
    Applicability of ICDS may indirectly determine whether TDS provisions apply by altering gross receipts/turnover calculations.
    ICDS influence the computation of gross receipts/turnover used to determine whether statutory TDS provisions apply; while ICDS govern income computation and not TDS rules, their application to receipts can indirectly change whether individuals, HUFs or presumptive taxpayers cross the turnover benchmarks that attract TDS obligations.
    ManualsIncome Tax
    Show AI Summary
    ICDS applicability: applies to taxable income computation under business or other income irrespective of Ind AS adoption.
    For computing taxable income under the heads Profits and Gains of Business or Profession and Income from Other Sources, ICDS provisions govern determination of income irrespective of whether an entity follows erstwhile Accounting Standards or Ind AS for financial reporting; companies adopting Ind AS must apply ICDS adjustments when computing taxable income under those heads.
    ManualsIncome Tax
    Show AI Summary
    ICDS applicability clarified: sector-specific provisions and statutory overrides determine application to banks, insurers and financial firms.
    ICDS apply generally for income computation unless an ICDS contains sector-specific provisions or the substantive law provides a special regime; ICDS VIII addresses banks and certain financial institutions, while statutory and regulatory accounting requirements for insurance business prevail over general ICDS provisions.
    ManualsIncome Tax
    Show AI Summary
    ICDS applicability to non-residents ensures income is determined under ICDS before flat-rate tax treatment on passive receipts.
    ICDS applies to non-resident income taxed at a flat rate-such as interest, royalty and fees for technical services-because the flat tax is applied after determination of income, so Income Computation and Disclosure Standards govern measurement and recognition for computing taxable income.
    ManualsIncome Tax
    Show AI Summary
    Change of accounting method: an assessee may adopt cash basis if the change is bona fide and consistently applied thereafter.
    An assessee may change the method of accounting from mercantile to cash basis if the change is bona fide and is followed regularly thereafter; such a change is distinct from a change in accounting policy and must be consistently applied to support proper income computation and disclosure.
    ManualsIncome Tax
    Show AI Summary
    ICDS revenue recognition applies to presumptive tax schemes computing income from gross receipts or turnover.
    ICDS on revenue recognition applies to taxpayers under presumptive tax schemes when such schemes compute income by reference to gross receipts, turnover or similar revenue measures; absent an express exclusion, ICDS principles govern the computation of those receipts or turnover for income-tax computation and disclosure.
    ManualsIncome Tax
    Show AI Summary
    Accounting method application: ICDS governs sources using the mercantile system but not sources accounted on a cash basis.
    ICDS applies at the source level: it governs only those sources where the assessee follows the mercantile (accrual) system of accounting and does not apply to sources maintained on the cash system, a distinction intended to prevent escapement of income caused by heterogeneous accounting across an assessee's activities.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters

      Comparison of section 237 "Appointment of income-tax authorities." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      6 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Section 237 Appointment of income-tax authorities.

      Income-tax Act, 2025

      At a Glance

      The documents are two textual records of provision 237 governing the appointment of income-tax authorities: one presented as Section 237 of the Income-tax Act, 2025, and the other as Clause 237 of the Income Tax Bill, 2025 (Old Version). Both set out the Central Government's power to appoint income-tax authorities, delegate appointment powers downward, and permit authorised income-tax authorities to engage executive or ministerial staff. The provisions primarily affect the Central Government, the Board (presumably the Board of Direct Taxes), senior tax officers and subordinate officers, and taxpayers indirectly (through administrative organisation). Effective dates or decision dates: Not stated in the document.

      Background & Scope

      Statutory hooks: the provision is presented as part of the Income-tax Act, 2025 (Document 1) and as Clause 237 in the Income Tax Bill, 2025 - Old Version (Document 2). Context: the clause/section falls under the heading "Authorities, jurisdiction and functions" and has the short title "Appointment of income-tax authorities." Coverage: appointment powers of the Central Government; delegation of appointment authority to various organisational tiers (the Board, Principal Director General/Director General, Principal Chief Commissioner/Chief Commissioner, Principal Director/Director, Principal Commissioner/Commissioner) to appoint officers below Deputy Commissioner/ Assistant Commissioner; and power for authorised income-tax authorities to appoint executive or ministerial staff necessary to assist in functions. Definitions or explanatory provisions: Not stated in the document.

      Statutory Provision Mode

      Text & Scope

      The textual ingredients in both documents are substantively identical. The provision comprises three sub-sections:

      • Sub-section (1): "The Central Government may appoint such persons as it thinks fit to be income-tax authorities." This is a plenary appointing power vested in the Central Government, without expressed limitation in the text on whom or on what criteria the Government may appoint.
      • Sub-section (2): The Central Government may, "subject to the rules and its orders regulating the conditions of service of persons in public services and posts," authorise the Board or specified senior authorities (Principal Director General/Director General; Principal Chief Commissioner/Chief Commissioner; Principal Director/Director; Principal Commissioner/Commissioner) to appoint income-tax authorities below the rank of Deputy Commissioner or Assistant Commissioner. The clause delineates delegation of appointment power for subordinate ranks, but places express qualification by "rules and ... orders" regulating conditions of service.
      • Sub-section (3): Subject to the same qualification (rules and orders of the Central Government regulating the conditions of service of persons in public services and posts), an income-tax authority authorised by the Board may appoint such executive or ministerial staff as may be necessary to assist it in the execution of its functions. This permits internal staffing for administrative support, again subject to overarching service rules and orders.

      Interpretation

      The text indicates a legislature intent to centralise the ultimate appointing power while enabling hierarchical delegation for practical administration. By using broad language - "may appoint such persons as it thinks fit" and "may ... authorise" - the provision confers discretionary authority rather than mandatory duties. The repeated qualifying phrase "subject to the rules and its orders regulating the conditions of service of persons in public services and posts" signals that appointments and delegations must conform to procedural and substantive service regulations made by the Central Government (or existing civil service rules). The reference to the Board and to named classes of senior officers suggests an administrative structure wherein appointment authority is transferred internally to promote operational efficiency, while maintaining ultimate control with the Central Government.

      Exceptions/Provisos

      No express exceptions or provisos other than the qualifications noted in the text. Specific carve-outs, thresholds, minimum qualifications, selection procedures, tenure, confirmation, probation, or pay scales are not stated in the document. The text only restricts delegated appointments to ranks "below the rank of a Deputy Commissioner or Assistant Commissioner." Any other exceptions: Not stated in the document.

      Illustrations

      • Example 1: The Central Government appoints a Commissioner of Income-tax to head a regional charge - consistent with sub-section (1). (This is a straightforward reading of the power; the document provides the enabling text but no example.)
      • Example 2: The Central Government authorises the Principal Commissioner to appoint an Income-tax Officer at a level below Deputy Commissioner to manage a local assessment unit, subject to applicable service rules. (The document authorises this practice; procedural specifics are not provided.)
      • Example 3: A Board-authorised income-tax authority appoints clerical staff to support assessment functions, within the constraints of Central Government service orders. (The provision permits such staff appointments; details like appointment mode and grade are not stated.)

      Interplay

      Interaction with other provisions, Rules, Notifications or Circulars: The provision explicitly defers to "the rules and its orders regulating the conditions of service of persons in public services and posts." However, the document does not identify or reproduce any particular Rules, orders, or subordinate legislation by name or citation. Where such Rules exist, they will determine conditions of service, procedures for delegation, and possibly the cadre structure; however, the text here does not specify those instruments. Any cross-references to appointment procedures in other statutory provisions or to the composition and powers of the Board: Not stated in the document.

      Practical Implications

      • Compliance and risk areas: The obligation to follow "rules and ... orders regulating the conditions of service" will make adherence to service rules central in any appointment or delegation process. Risk of challenge may arise if appointments or delegations are made in breach of relevant service rules or orders. The text itself does not enumerate procedural safeguards, selection criteria, or appeal remedies - absence of these details may lead to administrative disputes. Specific timelines or appeal mechanisms: Not stated in the document.
      • Record-keeping/evidence points: Given the delegation mechanism, keeping formal records of (i) the Central Government's authorisations to the Board or specified officers; (ii) orders by the Board authorising subordinate officers; and (iii) the service rules/orders relied upon would be necessary to demonstrate compliance with the statutory proviso. The statutory text refers to "authorise" and "subject to the rules and its orders" - documentary proof of those authorisations and conformity with rules would be relevant in any judicial or administrative review. Detailed record formats or retention periods: Not stated in the document.

      Key Takeaways

      • The provision vests plenary appointment power in the Central Government to appoint income-tax authorities.
      • The Central Government may delegate appointment powers to the Board and specified senior tax officers for appointments below Deputy Commissioner/Assistant Commissioner, subject to service rules and orders.
      • Authorised income-tax authorities can appoint executive and ministerial staff necessary for carrying out functions, again subject to service rules and orders.
      • The text emphasises conformity with "rules and ... orders regulating the conditions of service," but does not specify those rules or the procedural modalities for appointment or delegation.
      • Documentary proof of authorisations and compliance with service rules will be pivotal to defend appointments against challenge; however, procedural safeguards, appeal routes, qualifications, and effective dates are not specified.

      Differences Between the Two Documents and Practical Impact

      Substantively, the textual provisions in Document 1 (Section 237 of the Income-tax Act, 2025) and Document 2 (Clause 237 of the Income Tax Bill, 2025 (Old Version)) are identical in wording across the three sub-sections. The only material divergence is that Document 2 includes an explanatory sentence following the clause text: "Clause 237 of the Bill seeks to provide for the appointment of income-tax authorities by the Central Government by framing rules and orders for regulating conditions of service and to authorise the Board or subordinate authorities, to appoint income-tax authorities below the rank of a Deputy or Assistant Commissioner and also other executive or ministerial staff." This is a descriptive summary and does not alter the operative statutory wording.

      Practical impact of this difference:

      • The inclusion of the explanatory sentence in Document 2 has only interpretive utility; it summarises the legislative purpose but does not change the legal effect. When the clause becomes an enacted section (as in Document 1), the statutory language governs. The summary in Document 2 may aid readers in understanding legislative intent but is not a source of substantive law.
      • Because the operative statutory text is identical, there is no change in legal authority, delegation mechanics or the limits on delegated appointments between the Old Version and the enacted form as presented - both require adherence to the relevant "rules and ... orders." Any procedural changes would therefore arise from those subordinate rules/orders, which are not included in either document.
      • Where administrative action or litigation turns on legislative intent, the summary in the Bill text (Document 2) might be cited for purposive interpretation, but courts and administrators will primarily rely on the enacted text (Document 1) and the applicable service rules or orders when adjudicating disputes.

      Other specifics such as effective date, transitional arrangements for incumbents, specified qualifications for appointment, criteria for delegation, or disciplinary and appeal procedures are Not stated in the document.


      Full Text:

      Section 237 Appointment of income-tax authorities.

      Topics

      ActsIncome Tax