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
    Understanding the Business Loss Carry Forward Provisions in Clause 112 of the Income Tax Bill, 2025 ...
    Understanding the Carry Forward of House Property Losses in Clause 110 of Income Tax bill, 2025 Vs. ...
    Addresses the set-off of losses under various heads of income In Clause 109 of Income Tax Bill, 2025...
    Understanding Loss Set-Off or carry forward and set-off of losses in Clause 108 of the Income Tax Bi...
    Tax treatment of amounts borrowed or repaid through instruments like hundis in Clause 106 of the Inc...
    Taxation of Unexplained Expenditures in Clause 105 of Income Tax Bill, 2025 Vs. Section 69C of Incom...
    Addressing the issue of undisclosed income through unexplained assets In Clause 104 of the Income Ta...
    Understanding the Legal Framework for Unexplained Investments in Clause 103 of the Income Tax Bill, ...
    A Deep Dive into Unexplained Asset in Clause 104 of Income Tax Bill, 2025 Vs. Section 69A of Income ...
    Understanding Unexplained Investments Taxation in Clause 103 of Income Tax Bill, 2025 Vs. Section 69...
    Curb tax evasion through Unexplained Credits (i.e. unaccounted money or fictitious entries in financ...
    Income Apportionment in AOPs and BOIs in Clause 309 of the Income Tax Bill, 2025 Vs. Section 67A of ...
    Comprehensive Analysis of Total Income in Clause 101 of the Income Tax Bill, 2025 Vs. Section 66 of ...
    Addresses the tax liability of individuals in respect of income that is included in the income of an...
    Prevent tax evasion through the diversion of income to family members "clubbing of income" in Clause...
    Definitions for "transfer" and "revocable transfer" in Clause 98 of the Income Tax Bill, 2025 Vs. Se...
    The chargeability of income in the context of the transfer of assets with Exception in Clause 97 of ...
    Prevention of tax avoidance strategies "transfer of income without a corresponding transfer of the a...
    Understanding the Tax Implications on benefits obtained from the remission or cessation of liabiliti...
    Disallowing deductions of specific expenses in Clause 94 of Income Tax Bill, 2025 vs. Section 58 of ...
❯❯
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
    Carry forward of business losses allows set off against future business income, prioritised before other carried allowances.
    Clause 112 permits carry forward and set off of unabsorbed business losses-defined as losses under "Profits and gains of business or profession" excluding speculation losses-against future business or professional profits, mandates that such losses be set off before any other carried forward allowances, and limits the period during which losses may be carried forward, aligning with the existing temporal framework.
    Act RulesBills
    Show AI Summary
    Carry forward of house property loss - allows head-specific set off against future house property income, time-limited.
    Clause 110 permits unabsorbed losses under the head "Income from house property" to be carried forward and set off only against future income from the same head, subject to a statutory time limitation, and defines "unabsorbed loss from house property" as losses not set off against other income heads in the relevant year.
    Act RulesBills
    Show AI Summary
    Set-off of losses: new limits bar using business and capital losses to reduce salary and other non-capital income.
    Clause 109 permits set-off of losses under any income head except capital gains against income from other heads in the same year, subject to limits: business losses cannot be set off against salary income; house property losses are set off against other heads only up to a capped amount; and capital gains losses cannot be set off against non-capital income. The clause thus confines capital losses within their category and imposes head-specific restrictions requiring careful tax planning and record-keeping.
    Act RulesBills
    Show AI Summary
    Set-off of losses under the same head: clarifies offset rules for capital and non-capital income, refining capital gains set-off.
    Clause 108 permits set-off of a loss from any source against income from any other source under the same head (excluding capital gains), while treating capital gains losses separately: long-term capital losses may be set off only against other long-term capital gains, and short-term capital losses may be set off against gains from any capital asset, thereby requiring accurate classification of assets and records to effect permissible intra-head offsets.
    Act RulesBills
    Show AI Summary
    Deemed income from informal credit instruments: non account payee transactions treated as taxable, prompting formalisation of payments.
    Clause 106 and Section 69D deem amounts borrowed or repaid through hundis, negotiable instruments, or Board specified modes to be the income of the borrower or repayer when not transacted by account payee cheque, with provisions capturing interest where applicable and safeguards to prevent double taxation once an amount has been treated as income.
    Act RulesBills
    Show AI Summary
    Unexplained expenditure treated as income increases tax exposure when taxpayers fail to satisfactorily explain expenditure sources.
    Clause 105 deems unexplained expenditure as income when an assessee fails to provide a satisfactory explanation, confers evaluative power on the Assessing Officer to judge adequacy of explanations, and disallows any deduction for amounts so deemed; Section 69C operates similarly but uses permissive language and contains a deduction proviso, reflecting comparable objectives to prevent tax evasion while differing in textual strictness and potential administrative effect.
    Act RulesBills
    Show AI Summary
    Unexplained asset rules now include virtual digital assets, expanding deeming powers where explanations are unsatisfactory.
    Where an asset is unrecorded or its recorded amount is less than actual value and the assessee fails to provide a satisfactory explanation, Clause 104 and Section 69B treat the unexplained excess as deemed income for the year of discovery; Clause 104 expressly adds virtual digital assets, while both provisions vest the Assessing Officer with discretion to accept or reject explanations, creating valuation and verification challenges.
    Act RulesBills
    Show AI Summary
    Unexplained investments treated as income when taxpayer fails to satisfactorily explain source, shifting burden to taxpayer and empowering assessing officer discretion.
    Clause 103 deems unrecorded investments or amounts exceeding recorded investment as income if the assessee fails to provide a satisfactory explanation to the Assessing Officer; the provision places the evidential burden on the assessee and employs a deeming mechanism to include unexplained amounts in taxable income. Section 69B applies the same explanation-and-deeming approach to investments, bullion, jewellery and other valuable articles where recorded amounts are less than actual expenditure, relying on Assessing Officer evaluation to determine whether excess amounts are to be treated as income.
    Act RulesBills
    Show AI Summary
    Unexplained assets treated as deemed income: inclusion of virtual digital assets broadens taxable asset coverage and disclosure obligations.
    Clause 104 deemsthe value of assets not recorded, or under recorded, in an assessee's books to be taxable income where the assessee fails to provide a satisfactory explanation; it expressly includes virtual digital assets and places onus on the assessee to prove the nature and source, leaving determination of adequacy to the Assessing Officer.
    Act RulesBills
    Show AI Summary
    Unexplained investments deemed income under deeming provision; imposes explanation burden and increased tax scrutiny on taxpayers.
    Clause 103 treats investments not recorded in the assessee's books, and amounts exceeding recorded investments, as unexplained unless the assessee provides a satisfactory explanation; such unexplained investments are deemed income for the relevant tax year, subject to the Assessing Officer's evaluation under the clause's deeming provision.
    Act RulesBills
    Show AI Summary
    Unexplained credits: dual-party explanation requirement leads to inclusion of unexplained book credits as taxable income.
    Unexplained credits are chargeable to income when sums in an assessee's books lack satisfactory explanation, with the assessing officer determining adequacy. Loans and borrowings require satisfactory explanations from both the assessee and the creditor; share application money, share capital and share premium in closely held companies similarly demand corroboration from the company and the named contributor. Venture capital funds and companies receive a specific exemption, while the provision overall increases recordkeeping and evidentiary burdens and enhances tax authority scrutiny.
    Act RulesBills
    Show AI Summary
    Income apportionment in AOPs and BOIs: structured deduction and allocation of member remuneration and interest for tax computation.
    Both Clause 309 and Section 67A set out a structured method for computing a member's share in an AOP/BOI: deduct interest, salary, bonus, commission or remuneration from total AOP/BOI income, apportion the residual among members by entitlement and treat apportioned shares under the same heads of income; where apportioned results are profitable the remuneration is added back, and where loss it is adjusted; interest on capital borrowed by a member for investment is deductible under Profits and gains of business or profession; "paid" means actually paid or incurred per the accounting method used.
    Act RulesBills
    Show AI Summary
    Total income aggregation requires inclusion of exempt receipts to protect the tax base and prevent erosion through exclusions.
    Clause 101 mandates that computation of Total income include income exempt under the identified sub part of Chapter provisions, converting such exempt receipts into an affirmative component of total income to protect the tax base and prevent erosion from otherwise excluded income streams.
    Act RulesBills
    Show AI Summary
    Income attribution: clarifies tax liability of the legal owner and joint-and-several responsibility for income included in another's return.
    Clause 100 assigns tax liability to the person in whose name an asset stands or whose firm membership produces attributed income, imposes joint and several liability for jointly held assets allowing recovery from any co-owner for the whole tax due, applies existing procedural recovery mechanisms to enforce the liability, and overrides contrary provisions in other laws to ensure primacy in determining tax obligations arising from income attribution.
    Act RulesBills
    Show AI Summary
    Clubbing of income: new clause expands inclusion of spouse, minor child and transferred-asset income in assessee's taxable income.
    Clause 99 attributes to the individual income arising to a spouse from employment or remuneration in concerns where the individual has a substantial interest, income from assets transferred to a spouse or a son's wife without adequate consideration, and income of a minor child except earnings from the child's manual work or personal skill; it also prescribes a formula for income attributable when transferred assets are invested and treats conversion of individual property to HUF as income of the individual.
    Act RulesBills
    Show AI Summary
    Revocable transfer definitions broaden tax reach, treating arrangements that preserve transferor control as attributable income to transferor.
    Clause 98 of the Income Tax Bill, 2025 and Section 63 of the Income Tax Act define transfer to include settlements, trusts, covenants, agreements or arrangements, and define revocable transfer to cover provisions enabling direct or indirect re transfer of income or assets or re assumption of power by the transferor. Both provisions attribute income to the transferor where economic substance shows retention of control or benefit, broadening the tax net over arrangements that preserve transferor influence.
    Act RulesBills
    Show AI Summary
    Chargeability of income in asset transfers: revocable transfers taxed to transferor, with narrow irrevocable-transfer exceptions.
    Clause 97 treats income from a revocable transfer of assets as taxable in the hands of the transferor, while providing exceptions for truly irrevocable transfers where the transferor derives no direct or indirect benefit; if a power to revoke later arises the income becomes chargeable to the transferor, thereby aligning taxation with economic control and preventing tax avoidance through strategic transfers.
    Act RulesBills
    Show AI Summary
    Transfer of income without asset transfer: such income is taxed in the transferor's hands to prevent tax avoidance.
    Clause 96 and Section 60 provide that income arising by virtue of a transfer, whether revocable or irrevocable and irrespective of timing, is chargeable to tax in the transferor's hands if the asset generating that income has not been transferred, thereby preserving the link between income and its source asset to prevent tax avoidance.
    Act RulesBills
    Show AI Summary
    Remission of liabilities taxable - forgiven debts and other benefits must be included as income when received under revised charge rules.
    Clause 95 of the Income Tax Bill, 2025, treats any benefit obtained from the remission or cessation of a liability for which a deduction was previously allowed as taxable in the year received, applying principles from Section 38(1)(a) to non business income heads. Section 59 of the Income tax Act, 1961, applies Section 41(1) similarly to ensure forgiven liabilities are included in taxable income, but both provisions present valuation and timing ambiguities for non cash benefits and assessment year determinations.
    Act RulesBills
    Show AI Summary
    Disallowance of deductions: withholding compliance ties deductibility for cross border payments and personal expenses.
    Clause 94 disallows deductions from income from other sources for personal expenses and for interest or salaries payable outside India where tax has not been paid or deducted under the withholding framework; it extends selected business-income deduction rules to other sources, prescribes computation rules for foreign companies, disallows deductions for gambling and lotteries while excepting horse racing maintenance, and links deductibility to compliance with withholding obligations.

    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 296 "Time-limit for completion of block assessment." 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 296 Time-limit for completion of block assessment

      Income-tax Act, 2025

      At a Glance

      The document under detailed consideration is Clause 296 of the Income Tax Bill, 2025 - (Old Version) which prescribes the time-limits and exclusion rules for completion of block assessments under the special procedure for search cases (section 294). It matters to taxpayers subjected to search and seizure proceedings, their representatives, and the Income-tax Department. The Bill text sets out computation rules, specified exclusions, and minimum remaining-period safeguards. Effective date or enactment status: Not stated in the document.

      Background & Scope

      Statutory hooks: Clause 296 (Bill) interacts primarily with section 294 (orders following search), section 295 (other persons), section 166(1) (references), section 159 (agreements for exchange of information), sections 244(2), 268(5), 269(1), 270(11)(i), 270(13), 274(1), and chapters dealing with Advance Rulings (sections 381 and 384 cited in the Bill). The Clause sets time-limits for passing assessment orders under the special search/block-assessment procedure and prescribes periods that are to be excluded in computing limitation. Definitions or explanatory notes: Not stated in the document beyond cross-references to the cited sections.

      Statutory Provision Mode

      Text & Scope

      Clause 296 prescribes that an order u/s 294 must be passed within twelve months from the end of the month in which the last of the authorisations for search was executed or requisition was made (sub-s. (1)). It applies "irrespective of the provisions of section 296" (likely an editorial inconsistency in the Bill text: see Interplay). The clause covers both the primary assessee and "other persons" (section 295) with separate computation for the latter (sub-s. (5)). It also provides for a 12-month extension where a reference u/s 166(1) is made during the course of proceedings (sub-ss. (2) and (6)).

      Interpretation

      The Bill text indicates an intent to fix a relatively short, definite time-frame (12 months) from a clear calendar point (end of the month in which the last search authorisation was executed or requisition made), subject to specified exclusions and extensions. The inclusion of enumerated excluded periods suggests the legislative principle that certain delays (court stays, information exchange, valuation/audit directions, references to authorities) should not count against the statutory limit. The use of calendar-month endpoints and an explicit minimum remaining period mechanism (sub-s. (8)) reflects an aim to provide practical breathing space for completion after exclusion periods. Legislative intent beyond these textual signals: Not stated in the document.

      Exceptions/Provisos

      Key carve-outs and conditions in the Clause:

      • Exclusion of a period (not exceeding 180 days) from date of search/requisition to date on which seized/requisitioned items are handed over to the Assessing Officer having jurisdiction (sub-s. (3)).
      • Enumerated exclusions in sub-s. (7): court stay periods (until certified copy of vacating order received), exchange-of-information reference periods (up to last receipt or one year, whichever less), time for reopening or re-hearing u/s 244(2), time taken where assessee is directed to get accounts audited/inventory valued u/s 268(5), period for reference to Valuation Officer u/s 269(1), periods linked to contraventions under Schedule III as per section 270(11)(i), references to Principal Commissioner/Commissioner u/s 270(13), periods relating to impermissible avoidance arrangement references u/s 274(1), and periods for Board for Advance Rulings applications and pronouncements u/ss 381/384 (sub-ss. (7)(a) to (j)).
      • Minimum remaining-period protection: where, after exclusion under (3) or (7), the remaining period is less than sixty days, it is extended to sixty days (sub-s. (8)).
      • Month-end extension: if after exclusions or extensions the period would expire before month end, it is extended to end of that month (sub-s. (4) and (9)).

      Illustrations

      • Example 1: Search executed on 10 January. Last authorisation executed that month. The normal limitation runs to 31 January of the next year (twelve months from end of the month of execution). If 120 days elapse between search and physical handover and are excluded under sub-s. (3), the remaining period is computed after excluding that 120-day span and then adjusted under sub-s. (4) or (8) as applicable.
      • Example 2: During assessment a reference u/s 166(1) is made. The time available for completion is extended by twelve months under sub-s. (2).
      • Example 3: A court grants a stay on assessment for 90 days; the stay is vacated and the jurisdictional Principal Commissioner receives certified copy 100 days later. The stay period (start to certified copy receipt) is excluded under sub-s. (7)(a) from computation.

      Interplay

      The Clause expressly interacts with multiple provisions: section 294 (orders after search), section 295 (other persons), section 166 (references), section 159 (exchange of information), section 244(2) (re-hearing/reopening), sections 268-269 (audit/valuation), section 270 (penalty/procedure references), section 274 (avoidance arrangements), and the Advance Rulings provisions (sections 381/384). The Bill text does not refer to any subordinate Rules, notifications or circulars. Potential textual inconsistency: sub-s. (1) refers to "Irrespective of the provisions of section 296", which appears circular or mis-referenced (likely intended to refer to another section-Not stated in the document).

      Practical Implications

      • Compliance and risk areas: Tax officers must track multiple exclusion events and maintain documentary proof (dates of handover of seized items, certified copies of court orders, dates of receipt of exchanged information, audit/valuation reports, Valuation Officer reports, advance ruling communications). Failure to accurately compute exclusions could result in time-bar disputes. The Bill requires attention to the precise calendar endpoint ("end of the month") for initial limitation calculation.
      • Record-keeping/evidence points: The text implicitly requires records showing the date of search/requisition, date of handover of seized/requisitioned items, dates of service/receipt of certified copies of court orders and authority communications, dates of references and replies under information-exchange, dates of audit/inventory valuation directions and reports, reports from Valuation Officer, and communications from the Board for Advance Rulings. Specific required forms or formats: Not stated in the document.

      Key Takeaways

      • Clause 296 fixes a twelve-month period (from end of the month of last search authorisation/requisition) for completion of block assessment orders u/s 294.
      • Specified exclusions (including up to 180 days for seizure custody and a series of procedural delays) are carved out from limitation computation.
      • A 12-month extension applies where a reference u/s 166(1) is made during proceedings (for primary assessee and separately for "other persons").
      • Where exclusions leave less than sixty days to proceed, the remaining period is extended to sixty days, creating a minimum workable timeframe post-exclusions.
      • Month-end rounding rules extend expiry to the end of the month if the period would otherwise expire mid-month.
      • The Clause requires careful tracking of multiple external events and receipt dates; however, procedural forms, judicial or administrative guidance on computation: Not stated in the document.
      • Textual inconsistency in sub-section (1) referring to "provisions of section 296": Not explained in the document.

      Differences Between (Document 2) Clause 296 of the Income Tax Bill, 2025 - Old Version and (Document 1) Section 296 of the Income-tax Act, 2025

      • Trigger point for the twelve-month period: Bill uses "twelve months from the end of the month in which the last of the authorisations for search was executed, or requisition was made" (Bill sub-s. (1)). The Act uses "twelve months from the end of the quarter in which the last of the authorisations for search was executed, or requisition was made" (Act sub-s. (1)(a)).
        • Practical impact: The Act lengthens the period by aligning to quarter ends rather than month ends, effectively giving up to approximately three additional months in some cases for completion, reducing pressure on the department (more time) and increasing uncertainty for taxpayers about the precise deadline (wider window).
      • Provision for extension where return-filing time is extended: The Act contains sub-s. (1)(b) stating that if the time for furnishing return u/s 294(1)(a)(v) is extended by 30 days, "twelve months" is to be read as "thirteen months". This is absent in the Bill.
        • Practical impact: Act expressly accommodates administrative extensions for return filing; the Bill silent on that contingency.
      • Seizure/exclusion wording: Bill excludes "the period (not exceeding one hundred eighty days) commencing from the date on which a search is initiated or a requisition is made and ending on the date on which seized or requisitioned items are handed over to the Assessing Officer having jurisdiction over the assessee" (Bill sub-s. (3)). The Act is more specific in sub-s. (3): it refers to assets [as provided in section 261(b)] and material seized or requisitioned [as provided in section 261(i)] are handed over to the Assessing Officer having jurisdiction.
        • Practical impact: Act clarifies the nature of items (cross-referring to section 261 definitions) which may reduce disputes about what constitutes seized items; Bill is more general.
      • Detailed sub-sectioning and drafting refinements: The Act expands certain sub-section numbering and presents the "quarter" rule, an additional clause for extension linked to return-filing, and adds or rearranges textual clarifications for persons u/s 295 (Act sub-s. (5) refers to "twelve months from the end of the quarter in which the notice u/s 294 in pursuance of section 295, was issued ..."). The Bill refers to "end of the month".
        • Practical impact: For "other persons" (section 295), the Act again gives a quarter-end anchor, providing more time compared to the Bill's month-end anchor.
      • Order of exclusions and minor drafting differences: The Act reorders or clarifies some exclusion clauses, and in some instances expands wording to refer to delivery/receipt to Principal Commissioner/Commissioner or Assessing Officer.
      • Practical impact: The Act's drafting appears designed to reduce ambiguity on receipt events and which authority's receipt triggers cessation of exclusion; the Bill is less explicit in certain respects.
      • Other differences: The Act includes an explicit sub-s. (8) and (9) analogous to the Bill but keyed to quarter-end based primary limitations.
        • Practical impact: Overall the Act tends to provide marginally more time and greater specificity on what is excluded and how computation is to be anchored.

      Action Points

      • Parties should maintain contemporaneous records establishing dates of search/requisition, dates of handover of seized items, certified copies of court orders, communications for exchange of information, references and reports from Valuation Officer, audit/inventory valuation reports, and Board for Advance Rulings communications.
      • Practitioners should note whether the operative limitation is computed from month-end (Bill) or quarter-end (Act) when advising clients and tracking deadlines; post-enactment, use the Act wording (quarter-end) where applicable.
      • In disputes, ensure pleadings and computation tables explicitly apply the correct anchor (month vs quarter) and list excluded periods with documentary proof of receipt dates.

      Full Text:

      Section 296 Time-limit for completion of block assessment

      Topics

      ActsIncome Tax