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
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
    Act RulesIncome Tax
    Comparison of Section 41 "Written down value of depreciable asset" between the Income-Tax Act, 2025 ...
    Act RulesIncome Tax
    Comparison of Section 40 "Special provision for computation of cost of acquisition of certain assets...
    Act RulesIncome Tax
    Comparison of Section 39 "Computation of actual cost" between the Income-Tax Act, 2025 (as passed) a...
    Act RulesIncome Tax
    Comparison of Section 38 "Certain sums deemed as profits and gains of business or profession" betwee...
    Act RulesIncome Tax
    Comparison of Section 37 "Certain deductions allowed on actual payment basis only" between the Incom...
    Act RulesIncome Tax
    Comparison of Section 36 "Expenses or payments not deductible in certain circumstances" between the ...
    Act RulesIncome Tax
    Comparison of Section 35 "Amounts not deductible in certain circumstances" between the Income-Tax Ac...
    Act RulesIncome Tax
    Comparison of Section 33 "Deduction for depreciation" between the Income-Tax Act, 2025 (as passed) a...
    Act RulesIncome Tax
    Comparison of Section 32 "Other deductions" between the Income-Tax Act, 2025 (as passed) and the Inc...
    Act RulesIncome Tax
    Comparison of Section 31 "Deduction for bad debt and provision for bad and doubtful debt" between th...
    Act RulesIncome Tax
    Comparison of Section 29 "Deductions related to employee welfare" between the Income-Tax Act, 2025 (...
    Act RulesIncome Tax
    Comparison of Section 28 "Rent, rates, taxes, repairs and insurance" between the Income-Tax Act, 202...
    Act RulesIncome Tax
    Comparison of Section 26 "Income under head Profits and gains of business or profession" between the...
    Act RulesIncome Tax
    Comparison of Section 25 "Interpretation" between the Income-Tax Act, 2025 (as passed) and the Incom...
    Act RulesIncome Tax
    Comparison of Section 23 "Arrears of rent and unrealised rent received subsequently" between the Inc...
    Act RulesIncome Tax
    Comparison of Section 22 "Deductions from income from house property" between the Income-Tax Act, 20...
    Act RulesIncome Tax
    Comparison of Section 21 "Determination of annual value" between the Income-Tax Act, 2025 (as passed...
    Act RulesIncome Tax
    Comparison of Section 19 "Deductions from salaries" between the Income-Tax Act, 2025 (as passed) and...
    Act RulesIncome Tax
    Comparison of Section 17 "Perquisite" between the Income-Tax Act, 2025 (as passed) and the Income-Ta...
    Act RulesIncome Tax
    Comparison of Section 11 "Incomes not included in total income" between the Income-Tax Act, 2025 (as...
❯❯
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
    Act RulesIncome Tax
    Show AI Summary
    Written down value rules: formulaic WDV computation and continuity across specified corporate transfers ensure consistent depreciation treatment.
    Computation of written down value uses three treatments: actual cost for assets acquired in the year; actual cost less depreciation actually allowed for assets acquired earlier; and block computation by [(A - D) + B - C] - E with statutory caps. The provision maps WDV/actual-cost continuity across specified corporate transfers (holding/subsidiary, amalgamation, demerger, LLP conversion, corporatisation), deems carried-forward depreciation to be depreciation actually allowed, and requires revaluation/book-depreciation adjustments where earlier years lacked tax computation.
    Act RulesIncome Tax
    Show AI Summary
    Cost of acquisition continuity: transferee inherits transferor's cost plus improvements and transfer expenses for stock-in-trade sales.
    When an asset received on amalgamation, by gift, will, irrevocable trust, or HUF partition is sold as stock-in-trade, the transferee's cost of acquisition is the sum of the transferor's original cost, any cost of improvement, and any expenditure incurred by the transferor or amalgamating company wholly and exclusively in connection with the transfer; certain assets are excluded by separate statutory provision and no alternative valuation or evidentiary rules are provided.
    Act RulesIncome Tax
    Show AI Summary
    Computation of actual cost: adjustments for third party funding and input tax credits limit depreciable base.
    Section 39 defines actual cost for assets used in business or profession as the assessee's cost reduced by amounts borne by another person, GST/input tax credits where claimed and allowed, excise/additional customs duty credits where claimed and allowed, and any subsidy, grant or reimbursement relatable to acquisition; it excludes payments made outside prescribed banking/online modes beyond the daily threshold and prescribes a formula to apportion non asset specific subsidies across assets.
    Act RulesIncome Tax
    Show AI Summary
    Recapture of previously claimed deductions: reversals, recoveries and asset disposals treated as business income under tax law.
    Certain receipts are deemed profits and gains where they reverse or offset earlier deductions or allowances: remission or cessation of trading liabilities; gains on disposal of tangible assets where proceeds plus scrap value exceed written down value; sale of research capital assets sold without other use where proceeds plus prior deductions exceed capital expenditure; recoveries of bad debts previously deducted; and withdrawals from special reserves previously deducted. Applicability requires that the earlier allowance was made in assessment, assets were used for business or profession with depreciation claimed and allowed, and research assets were not used for other purposes; successors in business are within scope.
    Act RulesIncome Tax
    Show AI Summary
    Actual-payment rule: deductions are taxable only when actually paid, with narrow early-payment carve-outs and contractual limits.
    Section 37 makes specified business deductions allowable only in the tax year in which they are actually paid, regardless of accounting method or when liability arose. Enumerated categories include statutory levies, employer fund contributions, leave-in-lieu payments, amounts referred to section 32(a), interest on loans/advances/borrowings from specified financial entities, payments to Indian Railways, and late payments to micro and small enterprises; limited exceptions permit earlier-year deduction if paid by the return filing due date (excluding MSME payments), and conversion of interest into deferred instruments is not treated as payment.
    Act RulesIncome Tax
    Show AI Summary
    Restrictions on deductions for related party payments require arm's length pricing and specified electronic payment modes for eligibility.
    Section 36 empowers the Assessing Officer to disallow payments to specified persons that are excessive or unreasonable relative to fair market value, legitimate business needs, or benefit to the assessee; defines specified persons and a 20% substantial interest test; prohibits deductibility of aggregate cash payments in a day above prescribed thresholds unless made through specified banking/online modes (with a higher threshold for carriage services); treats subsequent cash payments as business income where deduction had been earlier allowed; and adds an exclusion for marked to market or expected losses except as expressly allowable.
    Act RulesIncome Tax
    Show AI Summary
    Non-deductibility for unpaid withholding taxes: deductions denied until the required tax or equalisation levy is paid.
    Section 35 conditions deduction of business or professional expenses on compliance with withholding and levy obligations: where tax or equalisation levy required to be deducted or paid is not timely deducted/paid, a specified portion of the payment is disallowed in the year of non-compliance and is allowed only in the year when the tax or levy is actually deducted and paid; parallel deeming rules and provisos address later deduction/payment and certain default scenarios, while partnership and association rules restrict deduction for unauthorised or excessive partner/member remuneration and interest.
    Act RulesIncome Tax
    Show AI Summary
    Deduction for depreciation: statutory framework limits and special incentives for qualifying business assets under the tax code.
    Section 33 provides for deduction for depreciation on tangible and specified intangible assets used wholly and exclusively for business or profession, excluding goodwill; it prescribes computation by blocks and prescribed rates, applies special rules for power undertakings and leasehold improvements, imposes a 50% restriction for assets first used less than 180 days, allows an additional first-year deduction for qualifying new plant and machinery subject to strict conditions, and prescribes pro rata allocation and ceilings on claims in succession, amalgamation or demerger with carry-forward rules for unallowed depreciation.
    Act RulesIncome Tax
    Show AI Summary
    Other deductions for business income clarified: special reserve caps, temporal interest disallowance, and prescribed mark to market rules apply.
    Clause 32 lists allowable other deductions for business income, including employee bonuses, interest on borrowings subject to temporal disallowance until asset is first put to use, contributions to notified guarantee funds, prescribed pro rata discount on zero coupon bonds, a capped special reserve for specified entities tied to eligible business profits and capital/reserve limits, notified non-capital expenditures by statutory corporations, co-operative sugar purchase support, marked-to-market or expected losses computed under prescribed standards, phased deductions for family planning capital expenditure, loss on animals, and payment of transaction taxes where business income arises.
    Act RulesIncome Tax
    Show AI Summary
    Provision for bad debts limits deductions for financial entities and ties write-off claims to provision account debits.
    Section 31 separates a capped, percentage-based deduction for provisions for bad and doubtful debts available to specified financial assessees from separate deductibility of actual irrecoverable debts. Written-off debts are deductible only if previously taken into account for income computation or advanced in the ordinary course of business; for those claiming the percentage provision the deduction is limited to amounts exceeding the provision account credit and is permitted only where the relevant bad debt or part thereof has been debited to the single provision account in the tax year.
    Act RulesIncome Tax
    Show AI Summary
    Deductibility of gratuity provisions clarified: certain gratuity provisions deductible despite a general prohibition, with anti double deduction rule.
    Section 29 permits employer deductions for specified employee welfare payments: recognised provident and approved superannuation contributions subject to prescribed limits and Board conditions; pension scheme contributions subject to a statutory ceiling with a defined salary concept; contributions to approved gratuity funds held in irrevocable trust; provisions for contributions to such gratuity funds or for payment of gratuity that has become payable during the tax year; and employee contributions credited by the prescribed due date. The As Passed text clarifies that the allowance for certain gratuity provisions operates notwithstanding the general disallowance on provisions, and prevents a second deduction on actual payments where a provision deduction was already claimed.
    Act RulesIncome Tax
    Show AI Summary
    Deductions for business asset expenses broadened where used for business, subject to apportionment and capital expenditure classification.
    Allowable deductions for business or professional profits include insurance premiums, land revenue/local rates/municipal taxes, rent for premises occupied as a tenant, current repairs to premises when not a tenant, and cost of repairs where a tenant has undertaken to bear repair costs. Expenditure in the nature of capital expenditure is excluded. Where assets are partly used for business, deduction is restricted to a fair proportionate part as determined by the Assessing Officer. The Passed Act broadens use-based entitlement and expressly permits repairs to machinery, plant and furniture.
    Act RulesIncome Tax
    Show AI Summary
    Business income inclusion expanded to capture specified receipts and broadened recapture for assets with previously allowed capital allowances.
    Section 26 charges income under the head Profits and gains of business or profession by an inclusive list that captures receipts such as compensation for termination or modification of management/agency/contract, profits on sale of import licences and export incentives, partner remuneration, sums for non competition or withholding of know how, Keyman insurance proceeds, fair market value on inventory treated as capital asset, and recapture receipts where whole expenditure was previously allowed as a deduction under specified statutory provisions.
    Act RulesIncome Tax
    Show AI Summary
    Owner definition expanded to include transfers without adequate consideration and long-term rights, widening house-property tax reach.
    For the purposes of sections 20-24 (income from house property), the provision inclusively defines owner to cover persons who transfer property without adequate consideration to specified relatives (subject to an agreement to live apart exception), holders of impartible estates (deemed individual owners for all properties in the estate), cooperative society allottees or lessees under house-building schemes, persons in possession under section 53A part-performance arrangements, and persons acquiring long-term or enabling rights in property; leases of month-to-month or not exceeding one year are excluded from clause (e).
    Act RulesIncome Tax
    Show AI Summary
    Taxation of arrears of rent: treat receipts as house property income in year of receipt with a standard deduction.
    Arrears of rent and unrealised rent realised subsequently are deemed income from house property in the year of receipt or realisation, included in total income irrespective of the recipient's ownership status in that year, with a prescribed deduction equal to 30% of the amount received.
    Act RulesIncome Tax
    Show AI Summary
    Deduction from house property: 30% standard deduction and spreadable pre acquisition interest with capped interest relief.
    Deductions for Income from House Property allow a 30% standard deduction on annual value (as determined under section 21) and interest on borrowed capital for acquisition/construction; pre acquisition interest is spread in five equal instalments beginning in the year of acquisition/construction, spread amounts must be reduced by interest already allowed under other provisions, and capped aggregate interest deductions apply with certificate and completion conditions, while interest payable outside India is disallowed unless appropriate tax withholding or agent arrangements exist.
    Act RulesIncome Tax
    Show AI Summary
    Determination of annual value: higher of expected or actual rent, with narrowed vacancy test and specific exemptions.
    Annual value is the higher of expected rent or actual rent received/receivable where let; the enacted text narrows vacancy relief by requiring that vacancy-related reduction make actual rent lower than the notional expected rent before annual value is fixed at actual receipts. Local taxes actually paid reduce annual value, unrealised rent is excluded subject to rules, stock-in-trade newly completed and not let enjoys two years nil annual value upon completion certificate, and owner-occupation yields nil annual value for up to two specified houses unless let or other benefits are derived.
    Act RulesIncome Tax
    Show AI Summary
    Deductions from salaries: defined categories, formulaic computation and aggregation limits govern tax relief eligibility.
    Section 19 itemises fourteen categories of salary related receipts that are deductible or exempt and prescribes formulas, ceilings and conditions for each. Relief for gratuity, leave encashment, pension commutation, retrenchment and voluntary retirement is computed by statutory formulas or by reference to notified limits and other enactments; an aggregation rule limits cumulative exemption where multiple receipts occur. The provision depends on cross references to other statutes and notifications, requiring classification, documentary evidence and tracing of prior exemptions to determine allowable deductions.
    Act RulesIncome Tax
    Show AI Summary
    Perquisite taxation: employer-provided benefits and securities treated as taxable salary components, with limited exclusions and prescribed valuation.
    Section 17 defines perquisite for salary taxation by listing employer-provided benefits treated as perquisites-including accommodation, employer-paid obligations, securities and sweat equity allotted or transferred at concessional rates, employer-paid insurance premiums and excess retirement contributions-while excluding certain employer-funded medical treatment, approved insurance arrangements, commuting vehicle expenditure and conditional foreign medical/travel payments; valuation methods and thresholds are delegated to subordinate rules and cross-references link perquisite treatment to existing constructs for gross total income and approved fund schemes.
    Act RulesIncome Tax
    Show AI Summary
    Conditional exclusion from total income: schedule-based incomes and persons excluded if conditions met; otherwise included in tax base.
    A conditional exclusion regime provides that incomes in Schedules II-VI and persons in Schedule VII are excluded from total income only if schedule conditions are satisfied; failure to satisfy conditions results in inclusion of such income in total income and taxation for the relevant tax year, and the Central Government is empowered to make rules or notifications to operationalise those schedules.

    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