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
    ManualsIncome Tax
    Whether an amount received by an Individual (a co-parcener to the HUF) from this HUF would be taxabl...
    ManualsIncome Tax
    Change in accounting policy - When is to be changed - What should be the basis for change in account...
    ManualsIncome Tax
    Accrual of income - Scope of ICDS - If there is conflict between Section 5 and Section 145, which wo...
    ManualsIncome Tax
    ICDS - Accrual basis of Accounting - Accrual of income versus Receipt of income
    ManualsIncome Tax
    Bad debts out of income recognised on the basis of ICDS but not yet recognised in books of account
    ManualsIncome Tax
    Applicability of ICDS for the purpose of disallowance u/s 40(a)(i) and 40(a)(ia)
    ManualsIncome Tax
    Applicability of ICDS on TDS
    ManualsIncome Tax
    Maintenance of Books of accounts for the purpose of ICDS
    Levy of GST - Reverse Charge on Legal Services - Services provided by an individual advocate includi...
    Case LawsVAT / Sales Tax
    Reversal of Input Tax Credit - In GST / VAT era, emergence of by-product which is exempt during manu...
    Case LawsIncome Tax
    Capital Gain - transfer of right in the land or transfer of land itself - addition u/s 50C - Harassm...
    ManualsIncome Tax
    Whether it is required to disclose a change in the accounting policies if it has no material effect ...
    ManualsIncome Tax
    ICDS-I provides that an accounting policy shall not be changed without ’reasonable cause’. The t...
    ManualsIncome Tax
    Why does the marked to market loss or an expected loss shall not be recognised as per ICDS-I.
    ManualsIncome Tax
    When does an assessee is required to make disclosures of fundamental accounting assumptions as per I...
    ManualsIncome Tax
    What is the scope of Going Concern as per ICDS I.
    ManualsIncome Tax
    ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific discl...
    ManualsIncome Tax
    In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, wh...
    ManualsIncome Tax
    Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation a...
    ManualsIncome Tax
    When can a provision be recognized as per ICDS X.
❯❯
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
    ManualsIncome Tax
    Show AI Summary
    Exemption for HUF distributions may not apply where clubbing rules apply, affecting taxability of co parcener receipts.
    Amounts received by an individual co parcener from the HUF are exempt in the hands of the assessee under the general exemption for such receipts, subject to the overriding provision dealing with clubbing or attribution of income which can limit that exemption.
    ManualsIncome Tax
    Show AI Summary
    Accounting policy change requires reasonable cause and substance-over-form treatment to reflect a true and fair view.
    Accounting policies must present a true and fair view of the state of affairs and income; treatment and presentation must follow substance over legal form; an accounting policy shall not be changed without reasonable cause, and any change must serve faithful representation for income computation and disclosure.
    ManualsIncome Tax
    Show AI Summary
    Accrual versus accounting method: accrual-based charge under residency provisions overrides cash-basis bookkeeping for taxing income.
    Where income has become taxable under the substantive provision governing non-resident receipts, that charging provision prevails over a taxpayer's cash-basis accounting; Section 145 is a machinery provision to effectuate the charge and cannot be used to defeat or nullify the substantive charge so as to allow taxable income to escape tax.
    ManualsIncome Tax
    Show AI Summary
    Accrual of income: recognition occurs when a vested right and debtor liability arise, not necessarily on actual receipt.
    ICDS I explains that accrual of income arises when a vested right to receive payment emerges and a corresponding liability is created on the other party; postponement or non-receipt does not prevent accrual, though non-receipt may justify separate deductions or claims. Accrual and arisal denote an inchoate right prior to actual receipt, while receipt denotes physical collection, and for tax accounting the existence of the right and the debtor's liability are the operative tests for accrual-based recognition.
    ManualsIncome Tax
    Show AI Summary
    Deduction for bad debts allowed where income recognised under ICDS but not recorded in accounts is later irrecoverable.
    Where a debt included in income on the basis of Income Computation and Disclosure Standards but not recorded in the accounts becomes irrecoverable, Finance Act, 2016 permits the debt (or part) to be allowed as a deduction in the year it becomes irrecoverable and deems that the debt has been written off in the accounts for the purposes of the deduction.
    ManualsIncome Tax
    Show AI Summary
    Applicability of ICDS: timing of TDS entries determines whether expenditure is disallowable under TDS disallowance provisions.
    ICDS apply only to computation of income under Profit & gains from business or profession and Income from Other Sources. For Sections 40(a)(i) and 40(a)(ia), disallowance depends on whether tax was deductible and whether an entry creating that liability or deduction existed in the year expenditure was claimed; absence of such an entry negates disallowance, while prior-year deduction of tax prevents disallowance in the year of allowance.
    ManualsIncome Tax
    Show AI Summary
    ICDS exclusion from TDS timing: TDS deduction timing and taxable expenditure follow book credit or payment date.
    ICDS does not affect TDS mechanics: the time for TDS (date of credit in books or date of payment) and the expenditure amount subject to deduction are determined by the books of account or payment date, not by ICDS computation of allowable expenditure.
    ManualsIncome Tax
    Show AI Summary
    ICDS compliance: prepare ICDS-based financials and reconciliations to ensure taxable income computation aligns with disclosure standards.
    Differences between accounting under ICDS and other accounting frameworks can materially affect taxable income and subsequent years' computations; taxpayers should quantify divergences and account for consequential tax adjustments. Practically, maintain parallel ICDS-based profit and loss and balance sheet statements and prepare a detailed reconciliation with primary accounting records to ensure all ICDS adjustments are considered. Auditors must certify that computation of total income complies with ICDS, making transparent documentation of adjustments and reconciliations necessary for audit certification and tax compliance.
    NotificationsGST
    Show AI Summary
    Reverse charge on legal services broadened to include advisory and representational work under GST notifications.
    Corrigenda amend reverse-charge entries to treat "services provided by an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly," as taxable, and add an Explanation that "legal service" includes advice, consultancy, assistance in any branch of law and representational services, thereby broadening the scope beyond representational services before courts, tribunals or authorities.
    Case LawsVAT / Sales Tax
    Show AI Summary
    Reversal of input tax credit: sale of exempt by products triggers reversal under VAT/GST credit rules.
    Reversal of input tax credit is triggered by the sale of goods produced incidentally during manufacture, not by their status as by products. The statutory credit regime aims to prevent double taxation by granting input credit for inputs used in manufacture, but the legislature determines the extent and conditions of credit. A provision that uses the terms 'goods' and 'sale' does not distinguish by products from final products, so where the incidental output is marketable and sold for consideration, reversal rules apply.
    Case LawsIncome Tax
    Show AI Summary
    Capital gain valuation under section 50C on transfer of contractual rights challenged as inappropriate and commercially onerous.
    Application of section 50C to a transfer of rights under a power of attorney, where no possession or control of the immovable property passed and no stamp authority value was adopted, was contested; the assessing officer's adoption of an enhanced valuation for computing short term capital gains was regarded as inappropriate and characterised as harassment, and that addition was reversed on appeal.
    ManualsIncome Tax
    Show AI Summary
    Accounting policy change disclosure required when future material effect is expected; disclose at adoption and when it first becomes material.
    Change in accounting policies that has no material effect in the current previous year but is reasonably expected to have material effect later must be disclosed: (a) in the previous year in which the change is adopted; and (b) in the previous year in which the change has material effect for the first time.
    ManualsIncome Tax
    Show AI Summary
    Change in accounting policy: permitted only for reasonable cause and where AS 5 requires it or improves financial presentation.
    A change in accounting policy will be treated as reasonable if it meets the criterion established by AS 5: the change is permissible only where it is required by statute, necessary for compliance with an accounting standard, or results in a more appropriate presentation of the enterprise's financial statements.
    ManualsIncome Tax
    Show AI Summary
    Mark-to-market loss recognition barred under ICDS, allowed only if another ICDS or tax law permits.
    Mark-to-market and expected losses are not recognised under ICDS I unless another ICDS permits such recognition; the Accounting Standards Committee held that because anticipated profits are not recognised, parity requires that expected or mark-to-market losses also be excluded, while established tax-law precedent allows deduction for exchange fluctuation losses arising on revenue-purpose borrowings.
    ManualsIncome Tax
    Show AI Summary
    Disclosure of fundamental accounting assumptions required when Going Concern, Consistency or Accrual are not followed in tax reporting.
    ICDS I requires that where the Going Concern, Consistency and Accrual assumptions are followed no specific disclosure is required, but any departure from these fundamental accounting assumptions must be disclosed; the revised tax audit reporting format provides columns to record such disclosures.
    ManualsIncome Tax
    Show AI Summary
    Going concern assumption affects income computation and disclosure, requiring a different measurement basis if materially impinged.
    Going concern is the assumption that an assessee will continue operations and has no intent or necessity to liquidate or materially curtail business; it underpins periodic income computation and financial statements and applies in the absence of contrary information. Material uncertainties that cast doubt on going concern may impinge this assumption. ICDS I does not specify computation methods when going concern is not met; absent such mandate an assessee may follow the Framework for the Preparation and Presentation of Financial Statements and prepare statements on a different basis, affecting recognition, measurement and disclosure.
    ManualsIncome Tax
    Show AI Summary
    ICDS disclosure requirements must be reported in tax audit reports and reflected in amended income tax return schedules.
    ICDS require disclosure of accounting policies and ICDS adjustments; the net effect must be disclosed in the Return of Income. Disclosures required under ICDS shall be made in the tax audit report in Form 3CD for taxpayers subject to tax audit, and no separate disclosure regime exists for those not liable to tax audit; return forms were amended to include a schedule ICDS.
    ManualsIncome Tax
    Show AI Summary
    ICDS supremacy - where ICDS conflicts with CBDT circulars or press releases, the ICDS treatment prevails.
    Where ICDS provisions conflict with earlier CBDT circulars or press releases, the later ICDS provisions prevail for the period after they take effect; CBDT circulars and press releases are interpretative guidance binding on tax officers but not on taxpayers.
    ManualsIncome Tax
    Show AI Summary
    DTAA supremacy: ICDS governs income computation when the treaty is silent, non-conflicting, or specifies only tax rate.
    ICDS apply to non-residents claiming DTAA benefits only where the DTAA is silent, where there is no conflict between ICDS computation and treaty treatment, where the income falls outside the DTAA's scope, or where the DTAA fixes a tax rate but does not prescribe the method of computing the income, in which case ICDS governs computation.
    ManualsIncome Tax
    Show AI Summary
    Recognition of provisions under ICDS X requires a present obligation, probable outflow of resources, and a reliable estimate.
    Recognition of a provision under ICDS X requires a present obligation from a past event, a reasonably certain outflow of resources to settle the obligation, and a reliable estimate of the obligation amount; routine future operating costs must not be recognised as provisions.

    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 301 "Interpretation." 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 301 Interpretation

      Income-tax Act, 2025

      At a Glance

      The document is Clause 301 of the Income Tax Bill, 2025 (Old Version) titled "Interpretation" within the Chapter on special procedure for assessment of search cases. It supplies definitions and scope for terms such as "block period", "requisition", "requisitioned items", "search", "seized items", "the last of the authorisations" and "undisclosed income". It matters because these definitions frame assessment, seizure and requisition proceedings u/ss 247-248 and related provisions; affected parties include taxpayers subject to search/requisition, authorised officers and the tax department.

      Background & Scope

      Statutory hooks: Clause 301 is situated in the Income Tax Bill, 2025, under the Chapter dealing with "Special procedure for assessment of search cases". It supplies interpretive definitions to be used "in this Chapter". The clause explicitly references sections 247 and 248 (search and requisition) for the operative processes it supports. The Clause provides definitions that govern temporal scope ("block period"), material objects subject to requisition/seizure ("requisitioned items", "seized items"), process milestones ("the last of the authorisations") and the core fiscal concept used in such proceedings ("undisclosed income").

      Statutory Provision Mode

      Text & Scope

      Clause 301 provides definitional scope for terms used in the Chapter:

      • "block period": Aggregate of two components-(i) six tax years preceding the tax year in which the search was initiated or any requisition was made; and (ii) the period from 1 April of the tax year in which the search/requisition was made up to the date of execution of the last authorisation for such search/requisition.
      • "requisition": Requisition of books of account, other documents or any assets u/s 248.
      • "requisitioned items": Books of account, other documents or money, bullion, jewellery or other valuable article or thing requisitioned u/s 248.
      • "search": A search initiated u/s 247.
      • "seized items": Books of account, other documents or money, bullion, jewellery or other valuable article or thing seized u/s 247.
      • "the last of the authorisations": Deemed executed-(i) for search: on conclusion of search as recorded in the last panchnama drawn in relation to any person in whose case the warrant of authorisation has been issued, irrespective of whether any seizure is recorded; (ii) for requisition: on actual receipt of the books of account, documents or assets by the Authorised Officer.
      • "undisclosed income": Two limbs-(i) money, bullion, jewellery, virtual digital asset or other valuable article or thing or any expenditure or any income based on entries in books/documents/transactions representing wholly or partly income or property not disclosed for purposes of the Act in respect of the block period; or (ii) any expense, exemption, deduction or allowance claimed under the Act which is found to be incorrect, in respect of the block period.

      Interpretation

      The Clause employs temporal and material markers to delineate the ambit of "undisclosed income" and the period for which such income will be examined ("block period"). The first limb of "undisclosed income" focuses on tangible and intangible assets (including "virtual digital asset") and entries/transactions that reflect nondisclosure. The second limb separately addresses incorrect fiscal claims-expenses, exemptions, deductions or allowances-claimed under the Act. The inclusion of both tangible assets and accounting entries suggests a dual focus on physical seizure and documentary/book-entry analysis within the block period. The text signals that the last panchnama in relation to any person is determinative for the conclusion of a search, thus providing a concrete procedural milestone for the operation of time-bound rules linked to the block period.

      Exceptions/Provisos

      No express exceptions or provisos beyond the two-part structure of the "block period" and the two-limbed definition of "undisclosed income" are included within Clause 301. Specific carve-outs, thresholds or exclusions are Not stated in the document.

      Illustrations

      • Example 1: A search initiated on 15 December of tax year Y (warrants executed for multiple persons) will have block period component (i) the six tax years preceding Y, and (ii) from 1 April of Y to the date recorded as conclusion in the last panchnama-this determines the period within which alleged undisclosed income is assessed.
      • Example 2: Books of account seized u/s 247 containing entries asserting certain expenses claimed as deductions for the block period could be treated as evidence of "undisclosed income" under limb (g)(i) or as an incorrect deduction under limb (g)(ii), depending on factual findings made during assessment.

      Interplay

      Clause 301 repeatedly cross-references sections 247 and 248 for the operative acts of search and requisition. The Clause also depends on "panchnama" as a procedural record to mark the conclusion of search operations. No other Rules, Notifications or Circulars are mentioned in Clause 301. Any application of this Clause in relation to other provisions of the Bill or the Act is Not stated in the document.

      Differences between Clause 301 (Old Version) and Section 301 (Income-tax Act, 2025) and Practical Impact

      • Scope marker/heading: The Bill (Clause 301) uses "In this Chapter"; the Act (Section 301) uses "For the purposes of this Part".
        • Practical impact: Terminology shift (Chapter vs Part) is largely stylistic but may reflect reorganisation of the statute; no substantive legal change is indicated in the texts provided.
      • Definitions added/omitted: The Bill contains explicit definitions of "requisitioned items" and "seized items" (books, documents, money, bullion, jewellery or other valuable articles seized/requisitioned u/ss 247/248). The Act text omits these two separate definitions.
        • Practical impact: Omitting explicit labels for "seized items" and "requisitioned items" in the Act reduces immediate textual clarity about what the statute contemplates when referencing seized or requisitioned property. Procedure and evidential handling that depend on named categories may require reliance on the general description in other clauses or on rules/guidance; this increases potential interpretive work for assessors and advisers.
      • Placement and labelling of "the last of the authorisations": Both texts contain a provision deeming when "the last of the authorisations" is executed, with identical operative sub-clauses for search (conclusion as recorded in last panchnama) and requisition (actual receipt). The Bill lists this at (f) while the Act lists similar text at (d).
        • Practical impact: No substantive change; re-lettering only affects cross-references in other sections and transitional drafting adjustments.
      • "Undisclosed income" formulation: The Bill sets out "undisclosed income" in a two-part structure (g)(i) and (g)(ii): (i) items/entries/transactions representing undisclosed income; or (ii) any expense/exemption/deduction/allowance claimed under the Act which is found to be incorrect. The Act consolidates the concept under (e), merging the two ideas into one continuous sentence and, per the appended note, corrects a typographical error ("or or any" corrected to "or any").
        • Practical impact: Substantively the Act appears to preserve both limbs of the Bill's definition, but the Act's merged wording could affect syntactic clarity and the parsing of whether the second limb is an alternative or a continuation. The corrigenda indicates only a textual correction, not a policy change.
      • Terminology for virtual assets: Both texts expressly include "virtual digital asset" in the list of items capable of constituting undisclosed income.
        • Practical impact: Confirms legislative intent to treat virtual assets on par with traditional valuables in search/requisition contexts.
      • Minor editorial differences: The Bill uses semicolons and clause divisions (a)-(g); the Act uses (a)-(e) with subclauses.
        • Practical impact: Largely drafting-style; may require attention in drafting cross-references and rules.

      Practical Implications

      • Compliance and risk areas: The Clause identifies a multi-year window ("block period") for investigation of undisclosed income, incorporating both the six preceding tax years and the year-of-search period up to the last authorisation. Taxpayers subject to search/requisition must be cognisant that both physical assets (including VDA) and documentary entries for that combined period are within scope.
      • Record-keeping/evidence points: Because "requisitioned items" and "seized items" explicitly include books of account and various forms of valuables, maintaining contemporaneous documentation, clear provenance and substantiation of claimed expenses/exemptions for the block period will be essential. The Clause makes the panchnama the operative record for concluding a search; therefore preservation and contestation of panchnama contents may be critical in subsequent proceedings.

      Key Takeaways

      • Clause 301 defines "block period" as six tax years preceding the tax year of search/requisition plus the part of that tax year up to the last authorisation.
      • Both physical assets (including money, bullion, jewellery and virtual digital assets) and documentary/book entries are captured within "undisclosed income".
      • The Clause separately recognises incorrect claims of expense, exemption, deduction or allowance as constitutive of "undisclosed income".
      • Procedural milestone: the last panchnama (for searches) and actual receipt by Authorised Officer (for requisition) determine the completion of authorisation for temporal calculations.
      • "Requisitioned items" and "seized items" are separately defined to include books of account and valuables, thus clarifying the kinds of materials that can be requisitioned or seized u/ss 247-248.
      • The Clause does not set out exceptions, thresholds, rights of persons from whom items are seized/requisitioned, or detailed procedural safeguards-those are Not stated in the document.
      • References to other legislative instruments, dates of effect, appeals or procedures post-seizure/requisition are Not stated in the document.

      Full Text:

      Section 301 Interpretation

      Topics

      ActsIncome Tax