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
    A Critical Analysis of the Constitutional Validity of Section 16(4) of the CGST/BGST Act and the exp...
    Scrutiny of Procedural Flaws in GST Registration Cancellation: Insights from a High Court Judgment
    Input Tax Credit Claims under GST: A Case Study of the Kerala High Court Ruling
    Case LawsIncome Tax
    Complexities of Residential Status and Tax Liability
    Case LawsIncome Tax
    Navigating International Taxation Waters
    Resolution Applicant Eligibility in Corporate Insolvency: former director/ promotor of the corporate...
    CircularsCustoms
    Easing Export Procedures: A Detailed Analysis of India's New Customs Guidelines
    CircularsCustoms
    Streamlining Export Grievances in India: The Launch of 'e-SAMADHAAN' Portal
    CircularsCustoms
    Revamping Export Standards: India's New Directive on Quality Control for Milk and Milk Products
    Empowering Investors: SEBI's New Framework for Enhanced Trading Account Security
    Extended Validity of Pre-Shipment Inspection Agencies
    Revising Foreign Investment Norms in Alternative Investment Funds: A Critical Analysis of SEBI's Lat...
    SEBI's New Mandates for AIFs: Dematerialization of Investments and Custodian Appointment - Implicati...
    Navigating the Evolving Landscape of IT Hardware Import Regulations in India: Analyzing the DGFT Cir...
    CircularsGST - States
    GST on Imitation Zari Thread
    CircularsGST - States
    Deciphering the GST Framework: Key Clarifications on (1) Passenger Transport and Motor Vehicle Renti...
    CircularsGST - States
    Place of Supply: Key Clarifications for 3 items
    CircularsCustoms
    Regularization of Bills of Entry and Waiver of Interest in Indian Customs
    CircularsCustoms
    Enhancing Maritime Security and Transparency: The Introduction of Body-Worn Cameras for Customs Boar...
    Renewal of Recognition for AMC Repo Clearing Limited: SEBI's Decision and its Implications
❯❯
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
    Case LawsGST
    Show AI Summary
    Input Tax Credit entitlement: statutory conditions and return deadlines can legitimately limit vesting of the benefit.
    The court held that Input Tax Credit is a conditional statutory benefit that vests only upon fulfilment of prescribed conditions; therefore temporal restrictions tied to return filing are legitimate legislative qualifications and do not constitute deprivation of property without authority of law or violation of equality and trade-freedom guarantees.
    Case LawsGST
    Show AI Summary
    Procedural fairness in GST registration: defective show cause notices invalidate cancellation and require fresh lawful proceedings.
    The court held the show cause notice and cancellation of GST registration were procedurally defective: the notice lacked material reasons depriving the taxpayer of an effective response, and the cancellation order demonstrated non-application of mind. Reasons contained in a reply affidavit could not retrospectively validate the defective notice. The authority may initiate fresh proceedings only by issuing a properly reasoned show cause notice, permitting the taxpayer to place all contentions and granting a personal hearing, with adjudication thereafter.
    Case LawsGST
    Show AI Summary
    Input Tax Credit eligibility: absence from GSTR 2A alone cannot bar credit; reassessment with evidentiary opportunity required
    The ruling emphasizes that Form GSTR 2A is a facilitative reconciliation tool and that denial of Input Tax Credit solely because an entry does not appear in GSTR 2A is not sufficient. The claimant bears the burden of proof to demonstrate eligibility by producing evidence of tax payment, valid invoices and transactional genuineness. The assessing authority must afford the taxpayer an opportunity to produce evidence and independently reassess the ITC claim, consistent with the self assessment framework of GST.
    Case LawsIncome Tax
    Show AI Summary
    Residential status: extended employment definition can preserve non-resident tax status for cross-border business migrants abroad.
    The tribunal addressed whether an individual who stayed 176 days in India and then moved to Mauritius on an occupation permit qualified as non-resident under Explanation 1(a) to the residence provision; after reviewing the occupation permit and appointment documentation and relying on precedent that construes "employment" to include self-employment and business activity, the tribunal found the explanatory extension applicable and excluded offshore receipts from Indian taxation.
    Case LawsIncome Tax
    Show AI Summary
    Section 172 shipping reimbursements govern TDS treatment, displacing Section 195 withholding for cross border damage payments.
    The core operative finding is that cross border payments characterised as reimbursements for vessel damage fall within the specialised shipping income regime under Section 172, so the general non resident withholding approach under Section 195 (and higher rates applied due to documentation gaps under Section 206AA) was not the appropriate mechanism; classification by legal character governs the applicable withholding treatment.
    Case LawsIBC
    Show AI Summary
    Resolution applicant eligibility: former promoters not automatically disqualified under Section 29A; clause-specific disqualifiers control.
    Whether a former promoter or director is ineligible under Section 29A turned on clause-specific disqualifiers rather than promoter status alone; the tribunal found no evidence that the statutory disqualifying conditions, including account classification as non-performing, applied to the applicant, and emphasized that eligibility requires a fact-specific application of the provision's clauses.
    CircularsCustoms
    Show AI Summary
    Back to Town export procedures revised to streamline staged re routing and ease compliance for certified exporters.
    The notice amends procedures for Back to Town (BTT) of export cargo, setting distinct workflows for self sealed cargo from CPP, port-to-CPP-to-town movements, and CFS-origin BTT. It differentiates obligations before registration, after registration but prior to LEO, and after LEO, and provides special provisions for AEO and DGFT status holders. Hazardous cargo and part cargo shut out scenarios are addressed, and the circular prescribes customs operational duties, reporting requirements, and discrepancy investigation protocols to streamline export re routing.
    CircularsCustoms
    Show AI Summary
    Export grievance redressal via e-SAMADHAAN portal provides structured online mechanism and interim replies for stakeholder issues.
    The e-SAMADHAAN portal centralises export-related grievance redressal for Jawaharlal Nehru Custom House stakeholders by providing FAQs and a mechanism to lodge grievances; NS-II (Export) will address submissions promptly and issue interim replies with timelines when external agency intervention is required. The portal is intended for public facilitation, not for legal use, and JNCH disclaims liability for use or misuse; stakeholders are encouraged to provide feedback and report implementation difficulties to the Commissioner of Customs, NS-II JNCH.
    CircularsCustoms
    Show AI Summary
    Quality control for milk exports now requires pre-export inspection and approval, aligning exports with international health standards.
    Pre-export quality control and inspection for milk and milk products are mandated under the Milk and Milk Products (Quality Control, Inspection & Monitoring) Rules, 2020. Exporters must obtain establishment approval based on a Food Safety Management System; certain consignments require consignment-wise inspection. A health certificate is required only if the importing country demands it. Customs must verify the Export Inspection Council approval or a Certificate of Inspection. Authorities are directed to sensitize officers and to align earlier orders with current international health and trade standards.
    CircularsSEBI
    Show AI Summary
    Voluntary trading account freeze empowers investors to request account blocking to prevent fraudulent trading under a regulatory framework.
    The circular requires trading members to provide a voluntary freezing/blocking facility allowing clients to request account suspension, with specified request modes, acknowledgement procedures, processing timeframes, and mechanics for implementing and lifting freezes. Stock exchanges must ensure implementation, amend rules where necessary, establish reporting requirements for trading members, and report compliance to the regulator. The measure is issued under Section 11(1) of the Securities and Exchange Board of India Act and Regulation 30 of the SEBI (Stock Brokers) Regulations to enhance investor control and prevent fraudulent trading activity.
    CircularsDGFT
    Show AI Summary
    Extension of validity of Pre-Shipment Inspection Agencies allows continued recognition under Foreign Trade Policy provisions and Handbook relaxation.
    Extension of recognition validity for Pre-Shipment Inspection Agencies under the Foreign Trade Policy 2023, relaxing Para 2.52(c) of the Handbook of Procedures and preserving recognition status for agencies listed in the policy appendices and Aayat Niryal Forms that were due to complete their three-year tenure at the end of 2023.
    CircularsSEBI
    Show AI Summary
    Foreign investment restrictions in AIFs require exclusion of sanctioned or high AML risk beneficial owners, limiting further capital contributions.
    The circular tightens investor eligibility for Alternative Investment Funds by redefining beneficial ownership thresholds and imposing disqualifications: investors or beneficial owners must not be on the United Nations Security Council Sanctions List and must not be residents of jurisdictions identified by the Financial Action Task Force as having strategic AML/CFT deficiencies. AIF managers are prohibited from accepting further capital contributions from investors who fail these conditions, with immediate effect, thereby necessitating enhanced due diligence and ongoing monitoring to ensure compliance.
    CircularsSEBI
    Show AI Summary
    Dematerialization of AIF investments required, with custodians and standardized custody reporting to enhance transparency and oversight.
    SEBI mandates dematerialization of AIF investments and the appointment of custodians, with specified conditions for associates acting as custodians, and requires standardized reporting of investments under custody to enhance transparency, reduce risks associated with physical securities, and strengthen oversight through operational and technological adjustments by AIFs and managers.
    CircularsDGFT
    Show AI Summary
    Import restrictions on specified IT hardware require valid import authorisation, while parts and certain exemptions remain available.
    The DGFT classified laptops, tablets, all in one PCs, ultra small form factor computers and servers under HSN 8471 as restricted, permitting import only against a valid Import Authorization; exclusions include desktop computers under the same chapter, spare parts and components, SEZ captive use imports, and IT hardware strictly incidental to capital goods, while importers may obtain multiple authorisations and amend quantities within value constraints.
    CircularsGST - States
    Show AI Summary
    GST rate classification on imitation zari yarn clarified to cover metallised film-based yarns while excluding refunds on specified film inputs.
    Imitation zari thread or yarn manufactured from metallised polyester film or metallised plastic film, whether used alone or blended with other fibres, is classified within the reduced GST rate category for imitation zari; however, polyester (metallised) film and plastic film inputs are not eligible for refund on account of rate inversion.
    CircularsGST - States
    Show AI Summary
    GST applicability on transport, composite supply and pure agent treatments clarified, plus job work and governmental exemptions defined.
    Services of passenger transport and renting of motor vehicles with operators where fuel is included attract GST at 5% with input tax credit within the same line of business; electricity bundled with renting or maintenance is a composite supply taxed with the principal supply while electricity supplied as a pure agent is excluded from the supplier's value; job work for processing barley into malt attracts 5% GST; exemptions for DMFTs and horticulture services/supplies to the public works department are addressed under governmental-authority exemption criteria.
    CircularsGST - States
    Show AI Summary
    Place of supply clarifications alter GST treatment for cross border transport, advertising spaces and co location services.
    Clarification sets out revised criteria for determining the place of supply for transportation of goods, advertising services involving physical spaces, and co location (server/hosting) services; the omission of a prior IGST provision requires reassessment of place of supply rules for cross border transportation, while the circular also specifies treatment for outdoor advertising and IT hosting to ensure uniform GST chargeability, invoicing and compliance across field formations.
    CircularsCustoms
    Show AI Summary
    Electronic Cash Ledger interest waiver enables regularization of manually cleared Bills of Entry after payment integration is completed.
    The notice requires stakeholders to identify unpaid challans associated with manually issued Out of Charge Bills of Entry, pay the requisite duty through the Electronic Cash Ledger within prescribed timeframes, and enable system reconciliation so that Bills of Entry are regularized. It provides for waiver and refund of interest paid, conditional on compliance with payment deadlines and successful integration of payments into the customs systems.
    CircularsCustoms
    Show AI Summary
    Body-worn cameras for customs boarding officers mandated; recording from gangway to de-boarding, with safety exceptions and pre-notice.
    Mandate requires Boarding Officers to wear a jacket bearing name and badges and a right side Body Worn Camera that records audio visual footage from approach at the gangway until de boarding; officers must notify the Shipping Agent/Line in advance, devices are standalone without wireless/SIM, and vessel Safety Officers may designate unsafe areas for non use subject to endorsement and cross verification by higher customs authorities.
    NotificationsSEBI
    Show AI Summary
    Renewal of recognition secures conditional authorisation for clearing and settlement of repo and reverse repo transactions in debt securities.
    Renewal of recognition is granted to AMC Repo Clearing Limited for a one year period, authorising it to clear and settle repo and reverse repo transactions in debt securities traded on a recognized stock exchange. The renewal is conditioned on compliance with regulatory rules and directions and restricts the Clearing Corporation to activities solely related to clearing and settlement of eligible repo and reverse repo transactions.

    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 261 "Interpretation." 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 261 Interpretation.

      Income-tax Act, 2025

      At a Glance

      Clause 261 of the Income Tax Bill, 2025 (Old Version) sets out definitions used in the Chapter dealing with powers relating to search, seizure and requisition. It matters because definitional scaffolding determines the scope of search-and-seizure powers and the evidentiary status of electronic material; affected parties include taxpayers, authorised officers, and the Department. Effective date or decision date: Not stated in the document.

      Background & Scope

      Statutory hooks: Clause 261 sits in Chapter XIV (as the note indicates) of the Income Tax Bill, 2025. It supplies definitions of expressions used for the purposes of the Chapter that regulates powers (search, requisition and related procedural mechanisms). The clause lists definitional meanings for "approving authority," "asset," "authorised officer," "competent authority," "computer system," "date on which the last of the authorisations for search was executed," "material seized," "proceeding" and "virtual digital space." The text provides definitions but no express legislative history or policy rationale. Any statutory cross-references explicitly stated are to section 247 and section 248 (for search and requisition), and to the Income-tax Act, 1961 in the "proceeding" definition.

      Statutory Provision Mode

      Text & Scope

      The clause defines the following core terms:

      • Approving authority: enumerates senior posts (Principal Director General/Director General; Principal Chief Commissioner/Chief Commissioner; Principal Director/Director; Principal Commissioner/Commissioner).
      • Asset: defined as "any money, bullion, jewellery or other valuable article or thing, held in physical or virtual form." This is a broad property-oriented definition, purposely not limiting to corporeal assets.
      • Authorised officer: ranges from Joint Director/Additional Director through to Income-tax Officer/Tax Recovery Officer; this specifies the class of officers empowered under the Chapter.
      • Competent authority: similar enumeration to approving authority but broader, including Joint Director/Additional Director and Joint Commissioner/Additional Commissioner.
      • Computer system: broad language: "computers, computer systems, computer networks, computer resources, communication devices, digital or electronic data storage devices" whether stand-alone or networked, including remote server, cloud server or virtual digital space; describes both modes of use and examples of included infrastructure.
      • Date on which the last of the authorisations for search was executed: two alternatives:
        • (i) in the case of search, the date of conclusion as recorded in the last panchnama drawn for persons covered by a warrant;
        • (ii) in case of requisition u/s 248, the date of actual receipt of books, documents or assets by the requisitioning officer.
      • Material seized: defined expansively to include books of account, other documents, digital data storage devices, computer systems and extracts seized during searches u/s 247 or requisition u/s 248; explicitly mentions backups from specialised programmes and electronic records (tally, excel, word files) and says such material "shall be construed to mean as book of accounts maintained by the said person."
      • Proceeding: covers any proceeding in respect of any year whether under the Income-tax Act, 1961 or under this Act that may be pending on the date of authorisation of a search/requisition or completed on or before such date, and includes proceedings which may be commenced after such date.
      • Virtual digital space: defined as an environment created via computer technology, including email servers, social media accounts, online investment/trading/banking accounts, websites storing ownership details, remote/cloud servers, application platforms and similar spaces.

      Interpretation

      The clause evinces an interpretive approach that is expansive and technology-aware. "Asset" as "physical or virtual" and the separate definition of "virtual digital space" show intent to capture non-physical forms of value. The "computer system" definition emphasises functional coverage - whether standalone or networked - and expressly includes cloud and remote servers. The "material seized" provision equates seized electronic records/backups with books of account, indicating legislative intent to treat digital evidence on parity with traditional account books for purposes of assessment and proceedings. The "proceeding" definition adopts a temporal sweep, covering past, pending and future proceedings tied to the date of search/requisition.

      Exceptions/Provisos

      Not stated in the document.

      Illustrations

      • If during a search (authorised u/s 247), an authorised officer seizes a company's cloud-hosted accounting backup, that backup would fall within "material seized" and be treated as books of account maintained by the company (consistent with the definition).
      • If a requisitioning officer u/s 248 takes physical custody of a server containing transaction logs on a stated date, the "date on which the last of the authorisations for search was executed" (for purposes of related provisions) would be the date of actual receipt of that server (as "assets").
      • An online trading account held on a digital application platform falls within "virtual digital space" and accordingly may be captured by definitions of assets or material when relevant to a search/requisition.

      Interplay

      The clause expressly references sections 247 and 248 as the operative powers under which material may be seized or requisitioned. It cross-links to the Income-tax Act, 1961 in defining "proceeding." The provision states that electronic backups and specialised programme data are to be treated as books of account for purposes of the Chapter; this creates an internal evidentiary linkage between digital material and statutory accounting records. No explicit references to rules, notifications or circulars are contained in the text.

      Differences between the two provisions and practical impact

      • Terminology - "asset" includes "virtual digital asset": The Act (Document 1) expressly expands the definition of "asset" to include "virtual digital asset"; the Bill (Document 2) refers to "asset" as "any money, bullion, jewellery or other valuable article or thing, held in physical or virtual form" and does not explicitly use the phrase "virtual digital asset."
        • Practical impact: the Act's explicit inclusion of "virtual digital asset" clarifies legislative intent to capture cryptocurrencies and similar instruments; the Bill's broader but less explicit phrasing may leave room for interpretive disputes about whether specific crypto instruments fall within "virtual digital asset" or merely "virtual form" of an asset.
      • Scope of "material seized" vs "material seized or requisitioned": The Bill (Document 2) uses the heading "material seized" and describes items seized during search or requisition; the Act (Document 1) uses "material seized or requisitioned" as the term and expressly includes "computer systems" in the list and states that such material "shall be construed to mean as books of accounts maintained by the said person."
        • Practical impact: the Act clarifies that requisitioned material is explicitly included and equates seized electronic material to books of accounts, potentially broadening evidentiary reach and supporting treatment of electronic extracts as formal books; the Bill's framing is marginally narrower or less explicit on that declaratory equivalence.
      • Inclusion of "electronic form" and "electronic record" cross-references: The Act (Document 1) contains specific sub-clauses (g) and (h) that adopt terms from the Information Technology Act, 2000; the Bill (Document 2) does not include corresponding sub-clauses labelled (g) and (h) for those exact cross-references (in the Bill numbering, (g) is used for "material seized" and (h) for "proceeding").
        • Practical impact: the Act's explicit cross-references to the IT Act clarify that statutory notions of electronic documents and records are to be read consistently with established definitions; the Bill is less explicit about adopting those statutory definitions, possibly creating interpretive friction as to whether IT Act definitions are imported.
      • "Proceeding" definition present in the Bill but absent in the Act text provided: The Bill includes a definition of "proceeding" (Document 2, clause (h)) describing what proceedings are covered (including references to the Income-tax Act, 1961 and proceedings pending or completed on the date of search/requisition). The Act excerpt (Document 1) as provided does not contain that "proceeding" definition.
        • Practical impact: retention of an express "proceeding" definition in the Bill would have clarified temporal and substantive reach of actions triggered by searches/requisitions; its absence from the Act extract may mean either omission in the Act or that it is located elsewhere-if absent, scope of covered proceedings may be less explicitly delimited, creating uncertainty over retrospective or prospective application to earlier or later proceedings.
      • Computer system / computer resources phrasing: Both texts define "computer system" broadly, but the Bill starts with "computers, computer systems" and the Act begins with "computers, computer networks," etc. The Act explicitly repeats "computer resources, communication devices, digital or electronic data storage devices" and again includes "virtual digital space."
        • Practical impact: differences are largely stylistic; both convey a broad technological reach. The Act's inclusion of "virtual digital space" in the computer system clause and as a separate defined term strengthens the capture of cloud and online environments.
      • Requisition wording in definition of the date on which last authorisation was executed: The Bill's clause (f)(ii) refers to "actual receipt of the books of account or other documents or assets by the requisitioning officer"; the Act's clause (f)(ii) expands that to "books of account or other documents or computer system or assets."
        • Practical impact: the Act's explicit inclusion of "computer system" in what may be requisitioned tightens the statutory basis for claiming a requisitioned server or digital environment was effectively taken on a given date; the Bill might have been read to focus more on physical assets or documents.

      Practical Implications

      • Compliance and risk areas: Taxpayers with digital records or holdings in virtual spaces should expect those records to be treated as books of account when seized or requisitioned. The broad definition of "computer system" and "virtual digital space" increases the Department's practical reach into cloud servers, social media accounts and online financial platforms during investigations.
      • Record-keeping/evidence points: Entities should maintain clear, verifiable backups and audit trails for accounting software, spreadsheets and electronic records since the statute singles out backups from specialised programmes. Documentation that demonstrates provenance and linkage between digital files and formal accounts will be relevant where seized material is used as books of account.

      Key Takeaways

      • Clause 261 supplies a broad, technology-inclusive set of definitions to govern search, seizure and requisition powers in the Chapter.
      • "Material seized" explicitly includes digital backups and computer systems and is to be construed as books of account, elevating electronic records to evidentiary parity with traditional accounting records.
      • "Virtual digital space" is comprehensively defined to include email servers, social media, online investment/trading/banking accounts, websites holding ownership details, remote/cloud servers and application platforms.
      • "Proceeding" is defined to cover proceedings under the Income-tax Act, 1961 and the new Act, including pending, completed or subsequent proceedings linked to the date of search/requisition.
      • The clause casts a wide net over digital environments and assets, signalling administrative emphasis on accessing electronic data during tax investigations.

      Full Text:

      Section 261 Interpretation.

      Topics

      ActsIncome Tax