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
    Inclusion of retail schemes and Exchange Traded Funds (ETFs) in the existing relocation regime of fu...
    NewsBills
    Extension of date of making investment by Sovereign Wealth Funds, Pension Funds & others and rationa...
    NewsBills
    Scheme of presumptive taxation extended for non-resident providing services for electronics manufact...
    NewsBills
    Extension of benefits of tonnage tax scheme to inland vessels
    NewsBills
    Simplification of tax provisions for charitable trusts/institutions
    NewsBills
    Rationalisation of ‘specified violation’ for cancellation of registration of trusts or instituti...
    NewsBills
    Period of registration of smaller trusts or institutions
    NewsBills
    Rationalisation of persons specified under sub-section (3) of section 13 for trusts or institutions
    NewsBills
    Rationalisation in taxation of Business trusts
    NewsBills
    Harmonisation of Significant Economic Presence applicability with Business Connection
    NewsBills
    Bringing clarity in income on redemption of Unit Linked Insurance Policy
    NewsBills
    Amendment of Definition of ‘Capital Asset’
    NewsBills
    Extension of timeline for tax benefits to start-ups
    NewsBills
    Rationalisation of taxation of capital gains on transfer of capital assets by non-residents
    NewsBills
    Rationalization of tax deducted at source (TDS) rates
    NewsBills
    TDS rate reduction for section 194LBC
    NewsBills
    TDS threshold rationalization TDS provisions have various thresholds of amount of payment or amount ...
    NewsBills
    Section 193 – Interest on securities
    NewsBills
    Section 194 – Dividends
    NewsBills
    Section 194A – Interest other than interest on securities
❯❯
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
    Tax-neutral relocation: inclusion of retail schemes and ETFs in IFSC resultant fund definition enables tax-neutral transfers for investors.
    The amendment adds retail schemes and Exchange Traded Funds (ETFs) established and regulated in the IFSC to the definition of resultant fund, so that transfers by investors of shares, units or interests in an original fund in exchange for interests in such IFSC funds are not treated as transfers for capital gains purposes, preserving the tax-neutral nature of relocations into IFSC funds.
    NewsBills
    Show AI Summary
    Long-term capital gains exemption for sovereign wealth and pension funds extended; investment deadline moved to 2030, effective April.
    Clause (23FE) of section 10 is amended to exclude long-term capital gains arising from investments in India from the total income of specified persons, even if such gains are deemed short-term under section 50AA, and to extend the qualifying investment date from 31st March, 2025 to 31st March, 2030; the amendments take effect from 1st April, 2025.
    NewsBills
    Show AI Summary
    Presumptive taxation for non-resident service providers to electronics manufacturing facilities creates a deemed profit basis, reducing effective tax.
    A presumptive taxation regime under proposed section 44BBD deems a fixed proportion of aggregate amounts received/receivable or paid/payable to non-residents for providing services or technology to resident companies establishing or operating electronics manufacturing or connected facilities under a Central Government notified scheme as profits and gains, simplifying tax treatment and lowering the effective tax on gross receipts, subject to prescribed conditions and rules.
    NewsBills
    Show AI Summary
    Tonnage tax extension to inland vessels allows eligible inland ships to opt into the tonnage tax regime from AY 2026 27.
    Inland vessels registered under the Inland Vessels Act, 2021 are made eligible as qualified ships for the tonnage tax regime by aligning the income tax definition of inland vessels with that Act and by introducing corresponding amendments to extend tonnage tax benefits to inland vessels. The amendments are effective from 1 April 2026 and apply to the assessment year 2026 27 and subsequent assessment years.
    NewsBills
    Show AI Summary
    Charitable trust tax exemption requires registration and compliance with application, approval and cancellation procedures under the law.
    Income of a trust or institution is exempt only if it meets statutory conditions and maintains registration; one provision governs the application procedure to obtain registration to claim exemption, another governs approval and cancellation of registration, and a separate provision disqualifies exemption where specified conditions are not satisfied.
    NewsBills
    Show AI Summary
    Specified violation classification: incomplete registration applications excluded from grounds for cancellation under section 12AB, limiting tax exposure.
    The Finance Bill amends the Explanation to sub section (4) of section 12AB to provide that situations in which the application for registration of a trust or institution is not complete shall not be treated as a specified violation for purposes of cancellation of registration, thereby excluding mere incompleteness of the registration application from grounds that could trigger cancellation and consequent taxability under Chapter XII EB.
    NewsBills
    Show AI Summary
    Registration period for smaller trusts extended to reduce compliance where income and application criteria are met.
    The period of registration for trusts or institutions that apply under the specified application categories of section 12A(1)(ac) will be extended from five years to ten years where the total income, before applying sections 11 and 12, does not exceed the stated income threshold in each of the two preceding years; the change aims to reduce compliance for smaller trusts and will take effect from 1 April 2025.
    NewsBills
    Show AI Summary
    Substantial contribution threshold revised, narrowing specified persons and excluding relatives and related concerns from applicability.
    The amendment recalibrates the substantial contribution test by raising annual and aggregate contribution thresholds so that only larger contributors qualify as specified persons, and excludes relatives and concerns in which such contributors have substantial interest from the specified persons list; the changes apply prospectively from the Finance Bill's commencement date.
    NewsBills
    Show AI Summary
    Taxation of business trusts clarified: long-term capital gains treatment for units preserved alongside maximum marginal rate application.
    The Finance Bill amends the taxation of business trusts to clarify that a business trust's total income remains taxable at the maximum marginal rate but subject to the long-term capital gains provision applicable to units of a business trust, thereby preserving pass-through taxation of interest, dividend and rental income in the hands of unit holders and explicitly aligning capital gains treatment with the special regime for REITs and InVITs.
    NewsBills
    Show AI Summary
    Significant economic presence exclusion clarified: purchases in India solely for export do not create business connection and are excluded.
    Amendment clarifies that transactions confined to the purchase of goods in India for export by a non resident shall not constitute Significant Economic Presence and therefore shall not constitute a Business Connection in India under section 9, aligning Explanation 2A with the exclusion in Explanation 1 and preserving the non taxable character of purchase for export operations.
    NewsBills
    Show AI Summary
    Capital treatment of ULIP redemptions clarified: ULIPs without insurance exemption taxed as capital gains and treated as capital assets.
    The proposal treats Unit Linked Insurance Policies for which the insurance-exemption does not apply as capital assets, mandates that profits on their redemption be taxed as capital gains, and includes those ULIPs within the definition of equity oriented funds for preferential capital-gains treatment; the measure responds to an existing premium-based exemption threshold and distinguishes non-ULIP life policy proceeds taxed as income from other sources where exemption is inapplicable.
    NewsBills
    Show AI Summary
    Capital asset classification: securities held by specified investment funds treated as capital assets, producing capital gains treatment.
    The Act is amended to treat securities held by investment funds that acquired them in accordance with securities-market regulations as capital asset, so that any income from their transfer will be treated as capital gain; the amendment applies prospectively from the specified commencement and to subsequent assessment years.
    NewsBills
    Show AI Summary
    Start-up tax deduction extended, expanding eligibility for newly incorporated start-ups to a later cutoff while retaining certification conditions.
    Amendment extends the temporal eligibility for the startup tax deduction, preserving the mechanism that permits an eligible start up to claim a full deduction of profits for a limited number of assessment years from the year of incorporation, conditional on meeting the turnover ceiling, holding an eligibility certificate from the inter ministerial board, and making the elective claim; the amendment moves the incorporation cutoff forward and takes effect from 1 April 2025.
    NewsBills
    Show AI Summary
    Taxation of long-term capital gains increased for non-resident securities transfers to align rates with the resident regime.
    The Finance Bill proposes amending section 115AD so that income-tax on long-term capital gains arising from transfer of securities (other than units under section 115AB) not covered by section 112A, when included in the total income of specified funds or foreign institutional investors, shall be calculated at the harmonised higher rate applicable to other assessees, with effect from the specified assessment year.
    NewsBills
    Show AI Summary
    Rationalization of TDS rates aims to simplify withholding rules and raise applicability thresholds to improve compliance and business ease.
    Rationalization of Tax Deduction at Source (TDS) rates is proposed in the Union Budget 2025 26 and Finance Bill, 2025, to simplify multiple TDS rates and raise threshold limits for applicability, with the aim of reducing fragmentation, lowering compliance burdens, and promoting ease of doing business.
    NewsBills
    Show AI Summary
    TDS rate reduction for securitisation trust payments under section 194LBC lowers withholding and eases compliance.
    The Finance Bill reduces TDS under section 194LBC on income paid by securitisation trusts to resident investors from the earlier rates of 25% (individuals/HUF) and 30% (others) to a uniform 10%, on the basis that the sector is sufficiently organised and regulated; the amendment takes effect from 1 April 2025 as Clause 63 of the Bill.
    NewsBills
    Show AI Summary
    TDS threshold rationalization raises and standardizes withholding triggers, reducing routine tax deductions on smaller payments.
    The proposal titled TDS threshold rationalization raises and standardizes the monetary thresholds that trigger tax deduction at source for multiple categories-interest (including securities), dividends to individuals, mutual fund/unit incomes, various winnings, insurance commission, lottery-related income, brokerage and commission, professional and technical fees, rent, and enhanced compensation-altering per-transaction and annual benchmarks and distinguishing treatment by payer type and payment mode for withholding obligations.
    NewsBills
    Show AI Summary
    TDS on interest on securities: threshold increased to reduce small-value deductions and limit routine withholding.
    Section 193 requires deduction of tax on interest on securities at time of credit or payment to a resident. The Finance Bill, 2025 proposes that tax shall be deducted under this section only when the amount or aggregate amount of interest on securities exceeds a specified monetary threshold during a financial year, and consequentially amends the proviso relating to debenture interest; the amendment takes effect from 1 April 2025.
    NewsBills
    Show AI Summary
    Dividend tax withholding: higher exemption threshold for individual shareholders reduces small-payment TDS obligations from next fiscal year.
    Section 194 requires the principal officer of an Indian company, or a company with prescribed arrangements for dividend payments (including preference shares), to deduct tax at source from dividend payments to resident shareholders at the rate provided in the section. The Finance Bill raises the aggregate exemption threshold for individual shareholders under the first proviso so that no tax is required to be deducted on small aggregate dividend payments, with the amendment effective from the start of the next fiscal year.
    NewsBills
    Show AI Summary
    TDS on interest thresholds increased, raising exemption limits for banks, cooperatives and post office deposits next fiscal year.
    Amendments raise thresholds under Section 194A for deduction of tax at source on interest other than interest on securities, increasing payer-specific limits for banks, cooperative banks, certain cooperative societies and notified post office deposits from forty thousand to fifty thousand and raising the baseline for other payers from five thousand to ten thousand; senior citizen thresholds for the specified payer categories are increased to one hundred thousand and to ten thousand for other payers. The revised thresholds take effect from the first day of the fiscal year beginning April 1, 2025.

    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 292 "Assessment of total undisclosed income as a result of search." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      10 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Section 292 Assessment of total undisclosed income as a result of search.

      Income-tax Act, 2025

      At a Glance

      Clause 292 of the Income Tax Bill, 2025 - (Old Version) sets out a special procedure for assessment in cases of search or requisition, providing for block period assessment and abatement of parallel assessment proceedings. It matters to taxpayers subject to search or requisition, the income-tax department and practitioners handling search-assessment litigation. Effective date: "on or after the commencement of this Act" (as stated).

      Background & Scope

      Statutory hooks: Clause 292 is placed in Part B entitled "Special procedure for assessment of search cases" of the Income Tax Bill, 2025. It governs assessment of "income pertaining to the block period" where a search is initiated or requisition made. The clause interacts with provisions on references to the Board u/s 166 and cross-references section 293 (for computation/definition of block period income) and section 192 (for the tax rate to be applied). The Bill does not set forth definitions within Clause 292; any definitions of "block period," "search," "requisition," or "undisclosed income" are not stated in the clause itself.

      Statutory Provision Mode

      Text & Scope

      Clause 292(1) commands that irrespective of other provisions of the Act, where a search is initiated or requisition made on or after commencement, the Assessing Officer shall proceed to assess or reassess the total income of the block period as per this Chapter. The compulsion is comprehensive ("irrespective of any other provision"), indicating a special, paramount assessment route for search cases. Clause 292(6) provides that income other than undisclosed income of the tax year in which the last authorisation for search is executed should be assessed separately under other provisions of the Act. Clause 292(7) prescribes charging tax on the "total income pertaining to the block period" at the rate specified in section 192, irrespective of the tax year(s) to which such income pertains.

      Interpretation

      The text suggests legislative intent to centralise assessment dimensions arising out of searches into a block assessment calendar, to avoid multiplicity of parallel proceedings for the same block-period income. The non-obstante language in clause (1) and (2) indicates a deliberate statutory priority to the Chapter's procedures over ordinary year-wise assessments for years within the block period. Clause (5)'s revival mechanism indicates an intent to preserve the department's recourse if a block assessment is annulled - abated proceedings are capable of revival upon annulment of the Chapter's proceedings. Overall, the clause reflects an intent to provide a distinct, consolidated regime for search-related assessments, to streamline assessment and to protect revenue via revival mechanisms.

      Exceptions/Provisos

      Clause 292(4) carves out cases where multiple searches/requisitions occur: if a subsequent search/requisition requires assessment under the Chapter, any pending assessment under the Chapter shall be completed first; then assessment for the subsequent search shall follow; if the remaining period for the subsequent assessment is less than three months, the period is to be extended to three months from the end of the month in which the earlier assessment was completed. This is a procedural proviso ensuring adequate time for downstream assessments. No other provisos (such as thresholds or exemptions) appear in the clause.

      Illustrations

      • Example 1: A search is initiated on 1 April 2025 covering a block period comprising financial years 2018-19 to 2023-24. Clause 292(1) requires the Assessing Officer to assess or reassess the total income of that block period under the Chapter. Year-wise assessments pending for those years would abate under clause (2).
      • Example 2: If a notice for assessment under ordinary provisions was issued for a tax year within the block period after the date of search but before the order under the Chapter is made, clause (2) provides that such proceedings shall abate. Clause (5) contemplates revival if the Chapter's proceeding is later annulled in appeal.

      Interplay

      Clause 292 cross-refers to section 166 (references to the Board), section 293 (computation/definition of block period income) and section 192 (tax rate). It establishes that proceedings under other provisions of the Act for years in the block period abate and are deemed to have abated. Clause 6 preserves separate assessment of non-undisclosed income of the year of last search authorisation under general provisions. Clause 5 allows revival of abated proceedings should Chapter proceedings be annulled, indicating procedural interplay with appellate processes. The clause does not mention rules, forms, or timelines beyond the three-month extension in clause (4)(c).

      Differences between (Document 1) Section 292 of the Income-tax Act, 2025 and (Document 2) Clause 292 of the Income Tax Bill, 2025 - (Old Version)

      • Title / Description: Document 1 is presented as "Section 292" of the enacted Income-tax Act, 2025 (heading: "Assessment of total undisclosed income as a result of search"). Document 2 is the "Clause 292" from the Income Tax Bill, 2025 - Old Version (heading: "Assessment of income pertaining to the block period").
        • Practical impact: The enacted version uses the phrase "total undisclosed income" whereas the Bill used "total income" (or "total income pertaining to the block period" in sub-clause (7)). This narrows the focus in the enacted Act to undisclosed income, which has implications for scope of taxation and assessment - assessments under the enacted provision are directed at undisclosed income, not all income of the block period.
      • Reference to Parts/Chapters: The Bill (Document 2) repeatedly refers to "this Chapter." The enacted Section (Document 1) refers to "this Part."
        • Practical impact: Terminology change may reflect structural changes in the statute; substantively this is a drafting/organizational change rather than a change in substantive operation, but it may affect cross-references elsewhere in the Act.
      • Substantive Wording - Clause (1): Bill: "the Assessing Officer shall proceed to assess or reassess the total income of the block period as per this Chapter." Enacted: "the Assessing Officer shall proceed to assess or reassess the total undisclosed income of the block period as per provisions of this Part."
        • Practical impact: As above, enacted text confines assessment to undisclosed income rather than "total income," narrowing taxable base within the block assessment procedure.
      • Sub-clause (2)(b) in Enacted vs single (2) in Bill: The Bill has a single sub-section (2) stating abatement of pending proceedings. The enacted Section expands and divides subsection (2) into (2)(a) and (2)(b), and adds specific language about notices issued during the search-to-order period and abatement deemed on date of issue of such notice.
        • Practical impact: Enacted text gives more granular treatment to proceedings for tax years in the block period where notices were issued during the search window; it clarifies that such proceedings abate and are deemed to have abated on the date of issue of the notice. This may affect calculation of limitation or procedural rights when notices are issued during the pendency of a search-related assessment.
      • Sub-clause (3): Both documents have a provision about references u/s 166(1) or orders u/s 166(6) abating; the enacted version expressly states the reference/order along with proceedings shall abate "and shall be deemed to have abated on the date referred to in sub-section (2)." Bill says they "shall abate on the date referred to in sub-section (2)."
        • Practical impact: Largely drafting parity; enacted version echoes the deeming language used elsewhere.
      • Sub-clause numbering and (5) scope: Bill's clause (5) provides revival where any proceeding "initiated or completed under this Chapter has been annulled." Enacted clause (5) limits the overriding saving to "Irrespective of anything contained in this part or section 286," and links annulment of a proceeding initiated under this part or any order of assessment/reassessment made u/s 294(1)(c) with revival of abated proceedings.
        • Practical impact: Enacted text narrows the cross-over by specifically tying revival to annulment of assessment or order under specific section 294(1)(c) and by adding reference to section 286 and the Part; it also clarifies the administrative step (revival effective on receipt by Principal Commissioner/Commissioner). This changes procedural mechanics and the authority for revival.
      • Sub-clause (7) differences - cross-reference and terminology: Bill: "The total income pertaining to the block period, as referred to in section 293(5) shall be charged to tax at the rate specified in section 192." Enacted: "The total undisclosed income relating to the block period, as referred to in section 293(7) shall be charged to tax at the rate specified in section 192 as income of the block period."
        • Practical impact: Enacted text both changes the cross-reference (s.293(7) vs s.293(5)) and substitutes "total undisclosed income" for "total income," and expressly states it is "as income of the block period." This aligns with the enacted focus on undisclosed income and may alter rate application depending on how section 293 and section 192 are structured in the final Act. Cross-reference changes could affect interpretive linkages with section 293.
      • Miscellaneous drafting differences: Minor differences in wording (e.g., "Irrespective of anything contained in any other provision of this Act" in the Bill vs "Irrespective of anything contained in this part or section 286" in enacted text).
        • Practical impact: Enacted limitation to "this part or section 286" could restrict the broadness of non-obstante clause compared to the Bill's broader sweep; this may change how other provisions operate vis-`a-vis block assessment provisions.

      Practical Implications

      • Compliance and risk areas: Taxpayers carrying on activity subject to a search should expect consolidated block assessment procedures and likely abatement of concurrent year-wise assessments. There is an increased risk of comprehensive assessment of all block period income under the Chapter regime rather than piecemeal year-wise scrutiny.
      • Record-keeping/evidence: The clause implies the need to preserve documentation relevant to the entire block period; the statutory abatement of year-wise proceedings means evidence must support positions across years. While the clause does not prescribe specific records, the practical consequence is wide-ranging documentary preservation to defend aggregate assessments.

      Key Takeaways

      • The Bill centralises assessment for search/requisition cases into a block assessment procedure overriding ordinary year-wise assessments.
      • Pending assessments for tax years within the block period abate upon initiation of search or requisition.
      • Multiple searches trigger a sequential completion rule; time for subsequent assessments is extended to a minimum three months if necessary.
      • Abated proceedings may revive if the Chapter's proceedings are annulled on appeal or other legal proceedings.
      • Income other than undisclosed income for the year of last authorisation is to be assessed separately under ordinary provisions.
      • Tax on block period income is to be charged at the rate in section 192, irrespective of year-wise incidence.
      • Clause is drafted to prioritise department's consolidated assessment approach; taxpayers should plan comprehensive record retention for the block period.

      Full Text:

      Section 292 Assessment of total undisclosed income as a result of search.

      Topics

      ActsIncome Tax