Loading...

⚠ ✕
❮ 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 characters 0/2000
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 ✕
🔎 Filters / Advanced Search ❯
TEXT

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.
Relevance Default Date
    Manuals Income Tax
    Whether it is required to disclose a change in the accounting policies if it has no material effect ...
    Manuals Income Tax
    ICDS-I provides that an accounting policy shall not be changed without ’reasonable cause’. The t...
    Manuals Income Tax
    Why does the marked to market loss or an expected loss shall not be recognised as per ICDS-I.
    Manuals Income Tax
    When does an assessee is required to make disclosures of fundamental accounting assumptions as per I...
    Manuals Income Tax
    What is the scope of Going Concern as per ICDS I.
    Manuals Income Tax
    ICDS-I requires disclosure of significant accounting policies and other ICDS requires specific discl...
    Manuals Income Tax
    In case any of the ICDS provisions is contrary to a circular or press release issued by the CBDT, wh...
    Manuals Income Tax
    Whether the provisions of ICDS apply to a non-resident who claims the benefit of a double taxation a...
    Manuals Income Tax
    When can a provision be recognized as per ICDS X.
    Manuals Income Tax
    What is the impact of ICDS X containing transitional provisions.
    Manuals Income Tax
    Under ICDS X, whether reversal of an asset and the related income would mean that the entry which wa...
    Manuals Income Tax
    Can any expenditure should set off against a provision recognised for another expendiure.
    Manuals Income Tax
    Expenditure on post-retirement benefits like provident fund, gratuity, etc. are covered by specific ...
    Manuals Income Tax
    What is the manner of recording the borrowing costs.
    Manuals Income Tax
    What are the activities necessary to prepare inventory for its intended sale as per ICDS IX.
    Manuals Income Tax
    There are specific provisions in the Act read with Rules under which a portion of borrowing cos...
    Manuals Income Tax
    How to allocate borrowing costs relating to general borrowing as computed in accordance with formula...
    Manuals Income Tax
    Under ICDS IX does borrowing cost include exchange differences arising from foreign currency borrowi...
    Manuals Income Tax
    Whether bill discounting charges and other similar charges would fall under the definition of borrow...
    Manuals Income Tax
    Which are the borrowing costs covered by ICDS IX.
❮
❯
❯❯
Maximize Maximize Maximize
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 Summaries Hide All Summaries
Manuals Income 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.
Manuals Income 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.
Manuals Income 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.
Manuals Income 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.
Manuals Income 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.
Manuals Income 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.
Manuals Income 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.
Manuals Income 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.
Manuals Income 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.
Manuals Income Tax
Show AI Summary
Transitional provisions for ICDS X ensure recognition of provisions and contingent items to prevent double taxation or omission.
Transitional recognition under ICDS X requires that provisions, contingent liabilities and contingent assets and related income be recognised for previous years commencing on or after 1 April 2016 in accordance with this standard, after taking into account any amount recognised for the same items for previous years ending on or before 31 March 2016; the rule aims to prevent double taxation or omission of income.
Manuals Income Tax
Show AI Summary
Supremacy of tax law: reversal of an ICDS-recognised asset must follow tax deduction rules, permitting write-off as bad debt.
Reversal of an asset and related income recognised under ICDS X must conform to the Income-tax Act where conflicts arise; the Act's tax-deduction treatment applies, allowing write-off as a bad debt rather than simply reversing the original accounting recognition entry.
Manuals Income Tax
Show AI Summary
Set-off of provisions: expenditures may be set off only against the original provision, not provisions for different purposes.
Under ICDS X, expenditures must be set off only against the original provision for which they were recognised; expenditures cannot be offset against provisions recognised for a different event or purpose, as that would conceal the separate financial effects of distinct events and undermine transparent disclosure of provisions, contingent liabilities and contingent assets.
Manuals Income Tax
Show AI Summary
Employee post retirement benefit provisioning excluded from ICDS X, governed by specific statutory provisions for income computation.
Provisioning for employee post retirement benefits covered by AS 15 shall continue to be governed by specific provisions of the Act and are not dealt with by ICDS X; ICDS X does not apply to liabilities otherwise falling within AS 15.
Manuals Income Tax
Show AI Summary
Borrowing costs capitalization requires capitalizing interest for qualifying assets; inventory only when production is prolonged.
Borrowing costs directly attributable to acquisition, construction or production of tangible and intangible assets must be capitalized as part of the asset cost. Inventory borrowing costs are capitalized only when the inventory requires an extended period to become saleable. Specific borrowings for a qualifying asset require capitalization of actual borrowing costs incurred during the qualifying period. For general borrowings, a formulaic allocation apportions borrowing costs to qualifying assets based on the ratio of qualifying assets to total assets.
Manuals Income Tax
Show AI Summary
Inventory preparation processes define activities included in inventory cost when making goods fit and saleable under accounting standards.
Activities necessary to prepare inventory for its intended sale include all processes required to make inventory functional for its intended use and to render it saleable, notably quality control to verify fitness for use and primary packing where goods are normally sold in packed condition.
Manuals Income Tax
Show AI Summary
Borrowing cost capitalization must exclude portions disallowed by specific statutory provisions, only allowable amounts may be capitalised.
Borrowing costs capitalised under ICDS IX must exclude amounts disallowed by specific provisions of the Act; only the portion of borrowing cost that remains allowable under the Act may be capitalised, because specific statutory disallowances override ICDS treatment.
Manuals Income Tax
Show AI Summary
Capitalization of borrowing costs: general borrowing must be allocated to qualifying assets and capitalized on an asset-by-asset basis.
General borrowing costs computed under the ICDS-IX formula must be apportioned among qualifying assets and capitalized on an asset-by-asset basis, so that each qualifying asset's capitalized borrowing cost reflects its proportionate share of general borrowing under the standard.
Manuals Income Tax
Show AI Summary
Exchange differences excluded from borrowing costs under ICDS IX; foreign exchange effects governed by ICDS VI.
Exchange differences from foreign currency borrowings that are treated as adjustments to interest are excluded from borrowing costs under ICDS IX; the effects of changes in foreign exchange rates, including those relating to interest, are governed by ICDS VI.
Manuals Income Tax
Show AI Summary
Borrowing cost: bill discounting and similar charges treated as borrowing cost, except when not tied to borrowed funds.
The definition of borrowing cost is inclusive and generally covers bill discounting charges and similar charges as borrowing cost for income computation and disclosure; however, discounting charges that do not arise from borrowing funds are excluded from that definition.
Manuals Income Tax
Show AI Summary
Borrowing costs include interest and related charges such as commitment charges, amortised discount and finance lease charges.
Borrowing costs under ICDS IX comprise interest and other costs incurred in connection with borrowing funds, including commitment charges, amortised discount or premium, amortised ancillary costs in arranging borrowings, and finance charges for assets taken on finance lease.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

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

Acts Income Tax