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
    NewsBills
    Section 194-IB - Payment of rent by certain individuals or HUF (Rationalisation and Simplification o...
    NewsBills
    Section 194M - Payment of certain sums by certain individuals or Hindu undivided family (Rationalisa...
    NewsBills
    Section 194-O - Payment of certain sums by e-commerce operator to e-commerce participant (Rationalis...
    NewsBills
    Section 194F - TDS on payments on repurchase of units by mutual fund or UTI (Rationalisation and Sim...
    NewsBills
    Ease in claiming credit for TCS collected/TDS deducted by salaried employees
    NewsBills
    Alignment of interest rates for late payment to Government account of TCS
    NewsBills
    Increase in limit of remuneration to working partners of a firm allowed as deduction
    NewsBills
    Claiming credit for TCS of minor in the hands of parent
    NewsBills
    Tax on distributed income of domestic company for buy-back of shares (WIDENING AND DEEPENING OF TAX ...
    NewsBills
    Revision of rates of securities transaction tax by amendment to the Finance (No.2) Act, 2004 (WIDENI...
    NewsBills
    Reporting of income from letting out of house property under ‘Income from House Property’ (WIDEN...
    NewsBills
    Amendment of section 47 (WIDENING AND DEEPENING OF TAX BASE AND ANTI-AVOIDANCE)
    NewsBills
    TDS on payment of salary, remuneration, interest, bonus or commission by partnership firm to partner...
    NewsBills
    TCS under sub-section (1F) of section 206C on notified goods (WIDENING AND DEEPENING OF TAX BASE AND...
    NewsBills
    Amendment of provisions of TDS on sale of immovable property (WIDENING AND DEEPENING OF TAX BASE AND...
    NewsBills
    Tax Deduction at source on Floating Rate Savings (Taxable) Bonds (FRSB) 2020 (WIDENING AND DEEPENING...
    NewsBills
    Preventing misuse of deductions of expenses claimed by life insurance business (WIDENING AND DEEPENI...
    NewsBills
    Inclusion of taxes withheld outside India for purposes of calculating total income (WIDENING AND DEE...
    NewsBills
    Excluding sums paid under section 194J from section 194C (Payments to Contractors) (WIDENING AND DEE...
    NewsBills
    Disallowance of settlement amounts being paid to settle contraventions (WIDENING AND DEEPENING OF TA...
❯❯
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
    NewsBills
    Show AI Summary
    TDS on rent reduced for individuals and HUFs, lowering withholding obligations for specified high-value rent payments.
    Section 194-IB presently obliges individuals and Hindu undivided families (except those excluded by the second proviso to section 194-I) paying rent above the monthly threshold to deduct tax at source; the Finance Bill amends the provision to reduce the TDS rate from five percent to two percent, with the amendment operative from 1 October 2024.
    NewsBills
    Show AI Summary
    TDS on payments for work, commission and professional fees reduced to a lower withholding rate, effective from October.
    Section 194M requires individuals and Hindu undivided families (except those already required to deduct under related contractor, commission or professional service provisions) to deduct tax at the earlier of credit or payment on sums for carrying out work (including supply of labour), commission or brokerage (excluding insurance commission), and fees for professional services. The Finance Bill proposes to reduce the prescribed withholding rate under Section 194M, with the amendment effective from 1 October 2024 as Clause 60.
    NewsBills
    Show AI Summary
    TDS on e-commerce transactions reduced to align with offline parity under the Finance Bill amendment.
    Section 194-O obliges an e-commerce operator to deduct tax at source on the gross amount of sales or services when that amount is credited to an e-commerce participant's account or paid, whichever is earlier. The Finance Bill proposes reducing the operator's TDS rate to achieve parity with lower rates applicable to comparable offline provisions, with an effective date specified in the Bill.
    NewsBills
    Show AI Summary
    TDS on mutual fund unit repurchase proposed to be omitted under section 194F, simplifying taxation of capital gains.
    Proposal deletes section 194F, removing the TDS obligation on payments for repurchase of units by mutual funds and UTI as part of capital gains tax rationalisation; the amendment takes effect from the first day of October under the Finance (No.2) Bill, 2024 (Clause 55).
    NewsBills
    Show AI Summary
    Tax credit for collected or deducted tax: salaried employees may use such credits to reduce salary TDS, easing compliance.
    Amendment modifies the rule for computing tax to be deducted from salary so that any tax deducted or collected under the statutory collection-at-source and related withholding regimes is taken into account when determining salary tax deduction, thereby reducing cash-flow impacts on employees and the need to claim refunds; effective from 1 October 2024.
    NewsBills
    Show AI Summary
    Interest on TCS increased to align with TDS parity, raising monthly simple interest for late remittance to government account.
    The Bill amends section 206C(7) to increase the simple interest rate for failure to remit tax collected at source from one percent to one and one-half percent per month or part thereof, calculated from the date of collection until actual payment to the Government; the amendment is prospective and effective from 1 April 2025.
    NewsBills
    Show AI Summary
    Remuneration limit for working partners raised, permitting higher deductible partner compensation starting in the next assessment year.
    The Finance Bill raises the allowable deduction threshold for remuneration to working partners under section 40(b)(v), preserving the two-tier structure that gives a more favourable limit on the initial portion of book-profit and a lower ceiling on the balance. The amendment takes effect from 1 April 2025 and applies to assessment year 2025-26 and subsequent years, with deductions permitted only where remuneration is authorised by and accords with the partnership deed.
    NewsBills
    Show AI Summary
    TCS credit for minor's income: parents may claim tax collected where the minor's income is clubbed with the parent.
    Proposal empowers the Board to notify rules permitting allocation of tax collected at source to persons other than the collectee, addressing cases where tax is collected in a minor's name. Credit of a minor's TCS is allowed only when the minor's income is included in the parent's total income under the income clubbing rule, thereby conditioning credit on that inclusion and providing safeguards against misuse.
    NewsBills
    Show AI Summary
    Taxation of buy-back proceeds treated as deemed dividend, with capital loss carry-forward to offset future gains.
    Sums paid by a domestic company for purchase of its own shares are proposed to be treated as deemed dividend taxable in the hands of recipient shareholders at applicable rates with no expense deductions; concurrently, the extinguished shares will generate a capital loss (consideration deemed nil less cost of acquisition) which may be carried forward and set off against future capital gains on remaining or subsequently sold shares, preserving the shareholder's original cost of acquisition for later capital gains computation.
    NewsBills
    Show AI Summary
    Securities Transaction Tax increase expands levy on options and futures, broadening the taxable derivative market from the Bill's commencement.
    The Finance (No.2) Act, 2004 is amended to increase Securities Transaction Tax rates: the levy on sale of an option in securities is increased to a higher rate of the option premium and the levy on sale of a futures in securities is increased to a higher rate of the traded futures price. Recognised stock exchanges, specified funds, insurers and lead merchant bankers remain responsible for collecting STT and remitting it to the Central Government within the prescribed monthly timeline. The amendment responds to the growth of derivative trading and is set to commence on the Bill's stated future effective date.
    NewsBills
    Show AI Summary
    Income from house property: rental receipts must be reported under that head, not as business income, tightening tax base.
    Amendment clarifies that income from letting out a residential house or part thereof shall be chargeable under Income from House Property and not under Profits and Gains of Business or Profession, to prevent misclassification of rental receipts and tighten the tax base.
    NewsBills
    Show AI Summary
    Gift transfers of capital assets now exempt only when made by individuals or Hindu undivided families, narrowing the prior exclusion.
    The amendment restricts the exclusion from capital gains chargeability for transfers by gift, will or irrevocable trust so that it applies only where the transferor is an individual or a Hindu undivided family, thereby preventing use of gift transfers by companies to avoid capital gains tax and aligning the non-recognition rule with fair market value anti-avoidance provisions; the substitution applies prospectively to the announced assessment year and subsequent years.
    NewsBills
    Show AI Summary
    TDS on partner payments introduced: firms must deduct on salary, remuneration, interest and commissions paid to partners.
    A new provision imposes TDS on partnership firms for payments to partners - salary, remuneration, commission, bonus and interest - including amounts credited to capital accounts, where aggregate payments to a partner in a financial year exceed a specified threshold; the applicable rate is ten percent and the provision takes effect from the commencement of the stated financial year.
    NewsBills
    Show AI Summary
    Tax collection at source on luxury goods expanded to cover notified high-value goods, enhancing tracking and widening the tax base.
    Amendment expands the Tax Collection at Source provision that applies to high-value motor vehicle sales to include other notified high-value luxury goods; sellers must collect TCS from buyers on notified goods exceeding the prescribed value threshold at the rate specified by law, to enhance tracking of luxury expenditure and to widen and deepen the tax base, effective from 1 January 2025.
    NewsBills
    Show AI Summary
    TDS on immovable property transfers: aggregate consideration across parties triggers deduction, curbing avoidance by splitting payments.
    Amendment clarifies that for deduction under section 194-IA the consideration, and thus the threshold exemption and deduction obligation, is the aggregate amount paid or payable where more than one transferor or transferee is involved, countering treatment of individual buyer payments in isolation and addressing related tax avoidance.
    NewsBills
    Show AI Summary
    Tax deduction at source on interest payments for floating rate savings bonds now applies, expanding the tax base and anti-avoidance.
    Amendment to Section 193 mandates deduction of tax at source at the time of payment of interest to residents where interest exceeds the prescribed threshold, specifically covering Floating Rate Savings (Taxable) Bonds (FRSB) 2020 and any Central or State Government security as may be specified by the Central Government; the amendment is effective from 1 October 2024.
    NewsBills
    Show AI Summary
    Non admissible business expenses: added back to life insurance profits, tightening deductions from assessment year 2025-26.
    Amendment to Rule 2 of the First Schedule mandates that any expenditure not admissible under section 37 shall be included (added back) to the profits and gains of life insurance business, supplementing the actuarial surplus based computation and preventing misuse of deductions. The change takes effect from 1 April 2025 and applies from assessment year 2025 26.
    NewsBills
    Show AI Summary
    Inclusion of foreign tax withheld amounts as deemed income to align income computation with foreign tax credit claims.
    Proposed amendment deems amounts deducted under Chapter XVII-B and income tax paid outside India by way of deduction, where credit is allowed against tax payable under the Act, to be income received for computing an assessee's total income, preventing under reporting and double benefit from foreign tax credits.
    NewsBills
    Show AI Summary
    Exclusion of professional fees from contractor TDS rules clarifies which payments require withholding under professional services provisions.
    The amendment expressly excludes sums covered by section 194J from the definition of "work" in the Explanation to section 194C, removing overlap where payments for professional or technical services could otherwise be taxed as contractor payments; the change is framed as an anti avoidance clarification and takes effect from 1st October 2024.
    NewsBills
    Show AI Summary
    Deductibility of settlement payments excluded, preventing business expense claims for amounts paid to settle contraventions under notified laws.
    The amendment clarifies that expenditure incurred to settle proceedings relating to a contravention under any law, as notified by the Central Government, falls within the definition of expenditure "for any purpose which is an offence or which is prohibited by law" and therefore shall not be allowable as a deduction for business or profession.

    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 257 "Proceedings before income-tax authorities to be judicial proceedings." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      9 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Section 257 Proceedings before income-tax authorities to be judicial proceedings.

      Income-tax Act, 2025

      At a Glance

      The documents are two textual versions of Clause/Section 257 concerning proceedings before income-tax authorities: (1) Section 257 of the Income-tax Act, 2025 (final/enacted text as presented) and (2) Clause 257 of the Income Tax Bill, 2025 - Old Version. Both declare proceedings before income-tax authorities to be judicial proceedings and treat income-tax authorities as civil courts for certain statutory purposes. The primary difference is the insertion, in the enacted text, of a limiting phrase in subsection (2) - "but not for the purposes of Chapter XXVIII of the Bharatiya Nagarik Suraksha Sanhita, 2023." This matters for taxpayers, tax authorities and courts because it adjusts the scope of civil-court status conferred on income-tax authorities. Effective date or decision date: Not stated in the document.

      Background & Scope

      Statutory hooks: Section/Clause 257 is located within the Income-tax Act/Bill, 2025 and references specific provisions of two recently enacted central statutes: the Bharatiya Nyaya Sanhita, 2023 (45 of 2023) - sections 229, 233 and 267 - and the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023) - section 215 and, in the enacted text, Chapter XXVIII. Coverage: the provision addresses the legal character of proceedings before income-tax authorities by declaring them "judicial proceedings" for certain penal/statutory purposes and by deeming income-tax authorities to be "Civil Court[s]" for a specified statutory purpose. Definitions or explanations: Not stated in the document beyond the cross-references to the cited sections/Chapter in the other statutes.

      Statutory Provision Mode

      Text & Scope

      Section/Clause 257 contains two subsections. Subsection (1) declares that "any proceeding under this Act before an income-tax authority shall be deemed to be a judicial proceeding" for the meaning of sections 229 and 267 and "for the purposes of section 233" of the Bharatiya Nyaya Sanhita, 2023 (45 of 2023). Subsection (2) deems every income-tax authority to be a Civil Court for the purposes of section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023). The enacted text further qualifies subsection (2) by excluding Chapter XXVIII of the Bharatiya Nagarik Suraksha Sanhita, 2023. The provision thus creates cross-statutory recognition: tax proceedings acquire the legal status of "judicial proceedings" and income-tax authorities acquire "civil court" status for certain specified statutory references.

      Interpretation

      The text indicates a legislative intent to align procedural and evidentiary characterisations of tax proceedings with provisions of the Bharatiya Nyaya Sanhita and to confer certain civil-court attributes under the Bharatiya Nagarik Suraksha Sanhita. The explicit citation of particular sections suggests a targeted application rather than a wholesale importation of all features of judicial or civil-court status. The insertion of the negative qualification regarding Chapter XXVIII indicates a deliberate limitation to avoid extending civil-court status into that Chapter. The provision does not expressly list the consequences that follow from deeming tax proceedings "judicial proceedings" or income-tax authorities "Civil Courts" beyond the cross-references.

      Exceptions/Provisos

      The only express proviso in the enacted version is the carve-out in subsection (2): income-tax authorities are not to be considered civil courts "for the purposes of Chapter XXVIII of the Bharatiya Nagarik Suraksha Sanhita, 2023." No other exceptions, thresholds, or conditions are set out in the text. If further exceptions exist in Rules or other provisions, they are Not stated in the document.

      Illustrations

      • Example 1: A proceeding before an income-tax authority involving assessment or penalty will be treated as a "judicial proceeding" for the application of sections 229 and 267 and for section 233 of the Bharatiya Nyaya Sanhita, 2023. The precise consequences depend on those sections' content (Not stated in the document).
      • Example 2: An income-tax authority exercising powers referenced in section 215 of the Bharatiya Nagarik Suraksha Sanhita will be treated as a Civil Court for that limited purpose. However, any procedural entitlement or sanction located in Chapter XXVIII of that statute cannot be invoked against or by the income-tax authority under this deeming (details of Chapter XXVIII: Not stated in the document).

      Interplay

      The provision expressly interacts with the Bharatiya Nyaya Sanhita, 2023 and the Bharatiya Nagarik Suraksha Sanhita, 2023 by adopting their terminology and conferring specified legal character on tax proceedings and authorities. The enacted text narrows the interaction with the latter Act by excluding Chapter XXVIII. Any interaction with other Rules, Notifications, or Circulars is Not stated in the document.

      Differences between the Bill (Old Version) and the Enacted Section

      Two substantive differences are visible between the texts provided:

      • Non-application carve-out: The enacted Section 257 adds a proviso that income-tax authorities are deemed to be Civil Courts for the purposes of section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023, "but not for the purposes of Chapter XXVIII of the Bharatiya Nagarik Suraksha Sanhita, 2023." The Bill version included only the deeming to be a Civil Court without this exclusion.

      • Stylistic/enactment status: The Bill is labeled "Clause 257 - Income Tax Bill, 2025 - Old Version"; the enacted text is labeled "Section 257 - Income-tax Act, 2025." This reflects passage into law rather than a substantive textual difference beyond the added exclusion. Any other drafting changes: Not stated in the document.

      Practical impact of each change:

      • The added exclusion narrows the deeming effect by preventing the Civil Court characterization from extending to Chapter XXVIII of the Bharatiya Nagarik Suraksha Sanhita, 2023. Practically, this limits the rights, remedies, or procedural effects conferred by Chapter XXVIII (whatever those may be under the 2023 statute) from attaching to income-tax authorities; conversely, it preserves those Chapter XXVIII provisions as inapplicable to tax authorities. The specific consequences depend on the subject-matter of Chapter XXVIII of the Bharatiya Nagarik Suraksha Sanhita, 2023 (e.g., special powers, procedures, or sanctions), which the document does not explicate. Therefore the operational impact: narrower application of the Civil Court deeming. Details of Chapter XXVIII's content: Not stated in the document.

      • The change from "Clause" to "Section" signals enactment and legal force; the addition of the exclusion therefore reflects parliamentary intent to circumscribe the practical scope of Civil Court status for tax authorities. Any legislative history or reasons for insertion of the exclusion: Not stated in the document.

      Practical Implications

      • Compliance and risk areas: Tax practitioners should take cognisance that proceedings before income-tax authorities are judicial proceedings for the cited sections of the Bharatiya Nyaya Sanhita; this may affect admissibility of evidence, obligations to maintain records, or procedural safeguards where those sections apply. The enacted exclusion of Chapter XXVIII reduces uncertainty as to whether certain civil-court regimes apply; specific risk implications depend on the content of Chapter XXVIII (Not stated in the document).
      • Record-keeping/evidence points: The deeming as "judicial proceedings" may impose or trigger evidentiary consequences under the referenced sections (for example, penalties for false statements or obstruction under those statutes may apply), so maintaining contemporaneous, accurate records is impliedly important. The text does not prescribe specific record retention timelines or forms (Not stated in the document).

      Key Takeaways

      • Both versions treat proceedings before income-tax authorities as "judicial proceedings" for specified provisions of the Bharatiya Nyaya Sanhita, 2023.
      • Both versions deem income-tax authorities to be "Civil Court[s]" for purposes of section 215 of the Bharatiya Nagarik Suraksha Sanhita, 2023.
      • The enacted Section adds a limitation: income-tax authorities are not to be treated as civil courts for the purposes of Chapter XXVIII of the Bharatiya Nagarik Suraksha Sanhita, 2023 - a narrowing absent from the Bill's Old Version.
      • The limiting clause reduces potential scope creep and clarifies that certain provisions in Chapter XXVIII do not attach to income-tax authorities by virtue of this deeming.
      • Details as to the substantive consequences flowing from the cited sections or from Chapter XXVIII are Not stated in the document; implications therefore depend on those external texts.

      Full Text:

      Section 257 Proceedings before income-tax authorities to be judicial proceedings.

      Topics

      ActsIncome Tax