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
    Comparative Analysis of Tax Recovery and Default Provisions : Clause 411 of the Income Tax Bill, 202...
    Streamlining Advance Tax Credit in Indian Tax Legislation : Clause 410 of the Income Tax Bill, 2025 ...
    Analyzing the Deeming Provisions for Advance Tax Default : Clause 409 of the Income Tax Bill, 2025 v...
    Evolution and Implications of Advance Tax Instalment Provisions : Clause 408 of the Income Tax Bill,...
    Assessing Officer's Powers and Taxpayer Rights in Advance Tax : Clause 407 of the Income Tax Bill, 2...
    Reforming Advance Tax Obligations : Clause 406 of the Income Tax Bill, 2025 Vs. Section 210 of the I...
    Comparative Legal Analysis of Advance Tax Computation: Clause 405 of the Income Tax Bill, 2025 vs. S...
    Understanding Advance Tax Thresholds : Clause 404 of the Income Tax Bill, 2025 Vs. Section 208 of th...
    Significant provision governing the liability for the payment of advance tax in India : Clause 403 o...
    Legal and Practical Implications of PAN Non-Compliance : Clause 397(2) of the Income Tax Bill, 2025 ...
    Centralized Processing of Tax Deduction and Collection Statements : Clause 399 of Income Tax Bill, 2...
    Evolution of Tax Deduction and Collection Account Number : Clause 397(1) of the Income Tax Bill, 202...
    Evolution and Implications of TDS/TCS Default Provisions : Clause 398 of the Income Tax Bill, 2025 V...
    Innovations in TDS/TCS Reporting and Compliance : Clause 397(3) of Income Tax Bill, 2025 vs. Section...
    Legislative framework of collection of tax at source (TCS) and issuance of certificates in India : C...
    Navigating the New Landscape of Tax Collection at Source : Clause 394 of the Income Tax Bill, 2025 V...
    Reforming PAN Compliance : Clause 397(2) of the Income Tax Bill, 2025 vs. Section 206AA of the Incom...
    Transforming Tax Reporting and Compliance in India : Clause 397(3) of Income Tax Bill, 2025 Vs. Sect...
    Safeguarding Taxpayers from Double Taxation : Clause 401 of the Income Tax Bill, 2025 Vs. Section 20...
    Correct identification of the "person responsible for payment" : Clause 402(27) of the Income Tax Bi...
❯❯
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 RulesBills
    Show AI Summary
    Tax default and recovery: rules on payment timelines, interest adjustment, waiver procedures, and deferment during appeals.
    Clause 411 sets the conditions for payment of tax on a notice of demand, the deemed default trigger for coercive recovery, and AO powers to shorten payment periods, extend time or allow instalments. It prescribes interest on unpaid demands with adjustment where liabilities change, prevents overlapping interest charges, allows time bound waiver or reduction of interest for hardship with a hearing requirement, permits deferment of default treatment during appeals on conditions, and protects remittance restricted foreign income from being treated as default.
    Act RulesBills
    Show AI Summary
    Advance tax credit ensures payments are applied to the relevant tax year and credited in regular assessment.
    Sums paid or recovered as advance tax, excluding penalty and interest, shall be treated as payment of tax for the income of the tax year in which payable, and credit for such advance tax must be given to the assessee in the regular assessment; the clause covers voluntary payments and recoveries and ties credit to the relevant tax year, while procedural mechanisms, definition of tax year, and treatment on reassessment are left to subordinate rules.
    Act RulesBills
    Show AI Summary
    Advance tax default: three independent triggers establish deemed default and activate statutory consequences for noncompliance.
    Clause 409 deems a taxpayer in default for advance tax where the taxpayer fails to: pay an instalment specified by an Assessing Officer by the due date; send an intimation of revised liability to the Assessing Officer by the date an unpaid instalment becomes due; or pay advance tax based on the taxpayer's own estimate of current income. The clause frames these three independent triggers as grounds for deeming default, thereby activating statutory consequences such as interest, penalties, and recovery measures.
    Act RulesBills
    Show AI Summary
    Advance tax instalment schedule: staged payments and a single-instalment rule for presumptive taxpayers streamline compliance and revenue flow.
    Clause 408 requires assessees to pay advance tax in staged instalments during the tax year, with progressive minimum thresholds and specified due dates, and treats amounts paid on or before the last day of the tax year as advance tax. It provides a single-instalment exception for presumptive taxpayers and cross-references the statutory computation provision for determining current income, while updating terminology and certain cross-references that will require harmonisation with other provisions.
    Act RulesBills
    Show AI Summary
    Advance tax orders: AO may require payment based on the higher of assessed or returned income, with taxpayer estimation rights.
    Clause 407 authorises the Assessing Officer to order advance tax from persons already assessed, specifying a specified sum-the higher of the latest assessed income or subsequently returned income-and an instalment schedule, with such orders and any amendments requiring accompanying notices of demand and adherence to prescribed timing and procedural safeguards.
    Act RulesBills
    Show AI Summary
    Advance tax self assessment: Bill emphasizes taxpayer initiated instalments and mid year revision, shifting reliance onto voluntary compliance.
    Clause 406 requires every person liable to pay advance tax to self assess and remit instalments based on the specified sum, defined as the assessee's estimate of current income, calculated by the cross referenced methodology and paid by statutory due dates; taxpayers may increase or reduce subsequent instalments to accord with revised estimates, while the clause itself does not set out administrative order powers.
    Act RulesBills
    Show AI Summary
    Advance tax computation: formula-based method clarifies net tax after TDS/TCS credits and tightens credit conditions.
    Clause 405 adopts a formulaic computation of advance tax: A = B - C, where B is tax on the "specified sum" and C is TDS/TCS deductible only if the income is included in the specified sum and the deductor/collector has actually credited/paid or received/debited the income post deduction/collection. Net agricultural income is included by reference to assessing officer orders or the assessee's estimate as applicable. The clause modernises drafting and omits the prior HUF specific provision, raising potential gaps.
    Act RulesBills
    Show AI Summary
    Advance tax liability retained; payable during the tax year when computed tax meets the statutory threshold, preserving continuity.
    Clause 404 requires payment of advance tax during the tax year when the amount of tax "as computed under this Part" for that year reaches the statutory threshold, linking liability to the year of income accrual, incorporating deductions, exemptions and set offs in computation, and using the threshold to exclude small liabilities from procedural advance payments.
    Act RulesBills
    Show AI Summary
    Advance tax liability clarified: pay tax on current income during the tax year, with a narrow senior citizen exemption.
    Clause 403 requires payment of advance tax during the tax year on an assessee's current income, defined as the total income chargeable to tax for that tax year, and exempts resident individuals aged sixty or above who have no income under "Profits and gains of business or profession." The provision replaces earlier temporal terms with "tax year" and references mechanisms within "this Part," indicating structural reorganization and necessitating clear definitions and transitional guidance.
    Act RulesBills
    Show AI Summary
    PAN non compliance increases withholding and collection rates and invalidates declarations, expanding PAN obligations to both TDS and TCS.
    Clause 397(2) mandates furnishing and quoting of PAN by deductees and collectees, invalidates certain declarations and applications where PAN is absent, and requires deductors/collectors to apply prescribed higher rates of TDS and TCS in the absence of PAN. The clause covers both TDS and TCS, provides exemptions for specified non resident scenarios and specified payments, caps TDS on certain rent payments at the last month's rent, and emphasizes comprehensive documentation and reporting obligations to enhance traceability and enforcement.
    Act RulesBills
    Show AI Summary
    Centralized processing of withholding statements enables automated determination and intimation of amounts payable or refundable.
    Centralized processing creates an automated, unified mechanism for TDS and TCS statements, including correction statements, requiring rectification of arithmetical errors and apparent incorrect claims, computation of interest and fees on adjusted amounts, adjustment against prior payments, issuance of an intimation within one year from the end of the tax year, and grant of refunds; the Board may establish a centralized processing scheme and must address interpretive gaps such as the undefined scope of "incorrect claim apparent" and the tax year/financial year distinction.
    Act RulesBills
    Show AI Summary
    Tax Deduction and Collection Account Number mandated for deductors and collectors to enhance tracking and reporting under the new bill
    Clause 397(1) requires every person responsible for deducting or collecting tax to apply for and, when allotted, quote a Tax Deduction and Collection Account Number (TDCAN) in all prescribed TDS/TCS documents; it prevents duplication, allows prescribed timelines and forms, and provides targeted exemptions including notified persons and categories cross referenced to other provisions.
    Act RulesBills
    Show AI Summary
    Deemed assessee in default: consolidated TDS/TCS consequences including interest, asset charge, and conditional relief.
    Clause 398 deems persons required to deduct or collect tax who fail to deduct, collect, or remit to be assessee in default, subject to interest, recovery and a statutory charge on assets. A conditional exception applies where the payee has reported and paid the income tax and an accountant's certificate in the prescribed form is furnished; interest is bifurcated between pre-collection and post-collection periods and must be paid before filing the relevant statement. The clause sets a limitation period for default orders and requires satisfaction of good and sufficient reasons before penalties are imposed.
    Act RulesBills
    Show AI Summary
    TDS/TCS reporting modernization: unified mandates for remittance, verified statements, non-resident reporting and six-year corrections.
    Clause 397(3) mandates that every person responsible for deduction or collection, including employers and designated government officers, remit deducted or collected tax to the Central Government within prescribed timelines and furnish verified statements in prescribed forms; it requires the prescribed authority to issue statements to buyers/licensors/lessees, mandates reporting of payments to non-residents irrespective of taxability, recognises a six-year correction window for statement amendments, compels specified financial institutions to file statements for certain payments, and preserves liability where tax collection fails.
    Act RulesBills
    Show AI Summary
    Lower TCS certificates permit reduced collection when taxpayer income justifies it, with mandatory certified issuance and electronic processes.
    Clause 395(3) permits buyers, licensees or lessees to apply to the Assessing Officer for collection of tax at a lower rate where the AO is satisfied that the applicant's total income justifies lower collection; the AO issues a certificate specifying the reduced rate and validity, subject to rules and to cancellation after hearing. Clause 395(4) requires every person deducting or collecting tax to issue a certificate to the deductee or collectee specifying the amount, rate and other prescribed particulars within prescribed timelines, with electronic issuance anticipated.
    Act RulesBills
    Show AI Summary
    Tax collection at source: consolidated TCS framework aligns rates, preserves declaration exemptions and prevents double collection.
    Clause 394 consolidates TCS rules into a table specifying liable collectors, receipt categories, tiered rates and timing (earlier of debit or payment), retains a declaration based exemption for residents using goods for manufacturing/processing/production or power generation with prescribed duplicate filings and reporting, incorporates anti overlap safeguards preventing double collection on remittance and tour package transactions, and adopts existing definitions for forest produce while omitting certain granular definitions and the lower/nil TCS certificate mechanism pending further rulemaking.
    Act RulesBills
    Show AI Summary
    PAN furnishing requirement: higher withholding rates apply where PAN is not provided, with specified carve-outs for non-residents.
    Clause 397(2) requires recipients and payers of amounts subject to TDS/TCS to furnish and quote a valid PAN; failure to do so triggers withholding or collection at enhanced statutory rates, invalidates declarations or applications for lower or nil deduction absent PAN, and mandates PAN disclosure in all transactional documents, while providing specified exemptions for certain non-residents and a cap on TDS for rent in defined cases.
    Act RulesBills
    Show AI Summary
    TDS/TCS reporting obligations expanded: mandatory electronic payment, verified statements, correction window and liability for non-collection.
    Clause 397(3) requires prompt payment of tax deducted or collected to the Central Government and the furnishing of verified statements in prescribed forms and manner. It expands reporting to include payments to non-residents, special procedures for government remittances without challans, and interest payments below thresholds by specified entities. The clause permits correction statements within six years and imposes liability to pay where tax is not collected, while delegating operational details to prescribed authorities and mandating electronic filing and verification.
    Act RulesBills
    Show AI Summary
    Bar against direct demand protects assessees from paying tax already deducted at source, placing recovery obligations on the deductor.
    A statutory bar prevents authorities from calling an assessee to pay tax to the extent tax has been deducted at source: Clause 401 of the 2025 Bill mirrors Section 205 of the 1961 Act by protecting the assessee where tax was actually deducted, limiting liability "to the extent" of deduction and leaving recovery, penalties, and prosecution against the deductor for any non deposit.
    Act RulesBills
    Show AI Summary
    Person responsible for paying: allocation of TDS/TCS duties to payers, principal officers, authorised remitters and government payors.
    Clause 402(27) designates the person responsible for paying for TDS/TCS according to payment type and payer status: employers (and company principal officers) for salaries; payers (and company principal officers) for interest and other chargeable sums; authorised persons for remittances to NRIs; payers for reporting payments to non-residents irrespective of chargeability; and drawing and disbursing officers (or the actual payor) for government payments, with cross-references to FEMA and updated agent definitions.

    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 242 "Jurisdiction of Assessing Officers." 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 242 Jurisdiction of Assessing Officers.

      Income-tax Act, 2025

      At a Glance

      The materials are two versions of Clause/Section 242 dealing with the jurisdiction of Assessing Officers: the "Income Tax Bill, 2025 - Old Version" (Document 2) and the enacted "Income-tax Act, 2025" provision (Document 1). The documents largely mirror each other but contain a few drafting and substantive differences affecting (i) the references to other provisions that trigger limitation for questioning jurisdiction and (ii) the scope clause preserving Assessing Officer powers. The provision affects taxpayers and the income-tax department (Assessing Officers, specified income-tax authorities, the Board). Effective date or commencement is Not stated in the document.

      Background & Scope

      Statutory hook: Clause/Section 242 titled "Jurisdiction of Assessing Officers" within the Income Tax Bill/Act, 2025, under the heading Authorities, jurisdiction and functions. The provision addresses (a) when an Assessing Officer, vested with jurisdiction over an area by directions or orders u/s 241(1)/(2)/(3), has jurisdiction in respect of persons carrying on business/profession or other residents within that area; (b) mechanisms for resolving jurisdictional disputes between Assessing Officers and specified income-tax authorities; (c) time-bars and procedural limits for assessees to call into question an Assessing Officer's jurisdiction; and (d) the preservatory clause on the powers of the Assessing Officer in respect of income within the vested area. Definitions and broader legislative context beyond explicit cross-references to sections 241, 263, 268, 270, 271, 247, 248, 294 and (in the Bill) 153C(2) are Not stated in the document.

      Statutory Provision Mode

      Text & Scope

      Coverage and ingredients in the enacted provision (Document 1):

      • Sub-section (1): Where an Assessing Officer is vested with jurisdiction over an area by virtue of directions/orders u/s 241(1)/(2)/(3), he shall have jurisdiction within that area: (a) over persons carrying on business or profession if their place of business/profession (or principal place, where multiple places) is situated within the area; and (b) over any other person residing within the area.
      • Sub-section (2): Questions as to whether an Assessing Officer has jurisdiction to assess any person shall be determined by the specified income-tax authority.
      • Sub-section (3): Where the question relates to areas within jurisdictions of different specified income-tax authorities, determination shall be either (a) by the specified income-tax authorities concerned; or (b) by the Board or such specified income-tax authority as the Board may, by notification, specify in this behalf, if they are not in agreement.
      • Sub-section (4): Bars assessees from calling into question Assessing Officer jurisdiction after specified timelines: (a) if a return is made u/s 263(1), after one month from service of notice u/s 268(1) or 270(8) or after completion of assessment, whichever earlier; (b) where no such return, after expiry of time allowed by notice u/s 268(1) or 280(2) for making the return or by notice u/s 271(2) to show cause why assessment should not be completed to the best of AO's judgment, whichever earlier; (c) where action taken u/s 247 or 248, after one month from service of notice u/s 294(1)(a) or after completion of assessment, whichever earlier.
      • Sub-section (5): Subject to subsection (4), if an assessee challenges jurisdiction and the AO is not satisfied with the claim, the AO shall refer the matter for determination under subsections (2) or (3) before making the assessment.
      • Sub-section (6): Regardless of anything in this section or in directions/orders u/s 241, every Assessing Officer shall have all powers conferred on an Assessing Officer under this Act in respect of income accruing/arising/received within the area over which he has been vested with jurisdiction by virtue of directions/orders u/s 241(1)/(2)/(3).

      Interpretation

      The text seeks to define territorial/person-based jurisdiction of Assessing Officers where jurisdiction is conferred by administrative directions/orders u/s 241. It aligns jurisdiction with the location of business/principal place of business for businesses and with residence for other persons. The mechanism for resolving disputes prioritises intra-departmental resolution by specified income-tax authorities and, if disagreement arises, escalation to the Board or a Board-designated authority. The procedural bars in sub-section (4) function as transactional limitation points to prevent late jurisdictional objections. Sub-section (6) is a preservatory clause ensuring AOs retain all powers under the Act with respect to income within their vested area irrespective of other clauses.

      Exceptions/Provisos

      No explicit provisos beyond the time-based bars in sub-section (4). The provision does not state exceptions for specific classes of assessments, types of income, or emergency/extraordinary circumstances. Not stated in the document: any express savings clause as to assessments initiated prior to enactment, transitional arrangements, or judicial review constraints beyond the departmental determination mechanism.

      Illustrations

      • Example 1: A taxpayer carries on business at three offices; the principal place of business is within the area vested with AO-X. AO-X therefore has jurisdiction to assess that taxpayer in terms of sub-section (1)(a).
      • Example 2: A resident individual lives within the vested area; AO-X has jurisdiction under sub-section (1)(b) irrespective of where income arises. (Factual specifics of residence definition are Not stated in the document.)
      • Example 3: Two specified income-tax authorities dispute which has jurisdiction over a taxpayer whose business spans both their areas; under sub-section (3), they must determine the question between them, or-if they disagree-the Board or a Board-specified authority will decide.

      Interplay

      The provision cross-references multiple other provisions (sections 241, 247, 248, 263, 268, 270, 271, 280, 294). The Bill version additionally referenced section 153C(2) of the Income-tax Act, 1961 in the time-bar sub-clause (4)(c); the enacted version omits that reference. The enacted provision also omits an explicit mention of directions/orders u/s 241(4) in sub-section (6) that appeared in the Bill version. Any interaction with rules, notifications or circulars beyond the Board's power to notify a specified income-tax authority is Not stated in the document.

      Practical Implications

      • Compliance and risk areas: Taxpayers must be vigilant about the procedural timelines in sub-section (4) when seeking to challenge an AO's territorial/person-based jurisdiction. Failure to raise jurisdictional objections within these specified windows will likely bar such challenges under the provision.
      • Departmental administration: The provision formalises an intra-departmental mechanism for resolving jurisdictional disputes, reducing immediate recourse to courts and concentrating determinations within specified income-tax authorities or the Board.
      • Scope of AO powers: Sub-section (6) conserves an AO's statutory powers over income within the vested area. However, the omission in the enacted text of a reference to section 241(4) (present in the Bill) may narrow the stated trigger for vesting in some circumstances; the practical effect depends on the content and scope of section 241(4), which is Not stated in the document.
      • Record-keeping/evidence: The text implies that taxpayers should retain documentary evidence of principal place of business and residence to substantiate or contest territorial assertions. Timely responses to notices under the listed sections (268, 271, 280, 294, 270) will be critical to preserve the right to challenge jurisdiction.

      Key Takeaways

      • Section 242 sets out territorial and person-based jurisdiction rules for Assessing Officers when jurisdiction is vested by directions/orders u/s 241(1)-(3).
      • Disputes over jurisdiction are to be determined within the taxation administration-first by specified income-tax authorities and, if disagreement persists, by the Board or a Board-designated authority.
      • There are strict temporal bars on an assessee's ability to question AO jurisdiction tied to notices under other specified sections; taxpayers must act within those windows.
      • Sub-section (6) preserves Assessing Officer powers to exercise all powers under the Act in relation to income connected to the vested area.
      • Material differences between the Bill and enacted text: (i) removal in the enacted text of reference to section 153C(2) in the time-bar clause; and (ii) omission of an explicit reference to section 241(4) in the preservatory clause-both could affect scope and application.
      • Where the Bill text contains drafting errors/duplication (e.g., "concerned specified income-tax authority concerned"), the enacted text appears to have corrected or rephrased those passages.
      • Several contextual and operational details (definitions, commencement date, precise effect vis-`a-vis section 241(4), and procedural mechanisms for determinations) are Not stated in the document.

      Differences Identified and Practical Impact (Concise)

      TopicBill (Old Version)Act (Enacted Section 242)
      Reference in sub-section (3)(a)Typographical duplication: "by the concerned specified income-tax authority concerned."Cleaned up to "the specified income-tax authorities concerned." (clarity improved)
      Escalation in sub-section (3)(b)"if they are not in agreement, by the Board or by such specified income-tax authority as the Board may, by notification, specify."Reordered: "by the Board or by such specified income-tax authority as the Board may, by notification, specify in this behalf, if they are not in agreement." (substantive alignment; minor drafting change)
      Time-bar in sub-section (4)(c)Refers to notice u/s 153C(2) of the Income-tax Act, 1961 or section 294(1)(a).Omits reference to section 153C(2); refers only to section 294(1)(a).
      Preservatory clause (sub-section (6))Includes directions/orders u/s 241(1)/(2)/(3) or (4).Refers only to directions/orders u/s 241(1)/(2)/(3) (omits explicit mention of section 241(4)).

      Practical impact: omission of cross-references present in the Bill may narrow the textual triggers that give rise to AO jurisdiction and the time-bars for challenging that jurisdiction; the full practical import depends on the contents and role of the omitted cross-referenced provisions (sections 153C(2) and 241(4)), which are Not stated in the document.


      Full Text:

      Section 242 Jurisdiction of Assessing Officers.

      Topics

      ActsIncome Tax