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
    In case of conflict between ICDS and other specific provisions of the Income-tax rules, 1962 governi...
    Manuals Income Tax
    Certain ICDS provisions are inconsistent with judicial precedents. Whether these judicial precedents...
    Manuals Income Tax
    Does ICDS apply for the purposes of computing exemption u/s 11 to 13.
    Manuals Income Tax
    Does ICDS apply to the applicability aspect of the TDS.
    Manuals Income Tax
    How will ICDS apply to companies which adopted Ind-AS. (Indian accounting standards)
    Manuals Income Tax
    Whether the provisions of ICDS shall apply to Banks, Non-banking financial institutions, Insurance ...
    Manuals Income Tax
    Whether ICDS is applicable to Non-Residents whose income is liable to be taxed at a flat rate of tax...
    Manuals Income Tax
    Can a assessee opt to change his method of accounting from mercantile to cash basis.
    Manuals Income Tax
    Can ICDS would apply to other categories of taxpayers whose income is taxed under presumptive tax sc...
    Manuals Income Tax
    Can a assessee can follow different methods of accounting for different sources of income under the ...
    Manuals Income Tax
    Can ICDS apply to a person following cash system of accounting and to the person whose books of acco...
    Act Rules Income Tax
    Foreign Tax Credit (‘FTC’) - Currency conversion using telegraphic transfer buying rate (‘TTBR...
    Act Rules Income Tax
    Foreign Tax Credit (‘FTC’) - Documents to be furnished for availing FTC
    Act Rules Income Tax
    Foreign Tax Credit (‘FTC’) in case of MAT/ AMT
    Act Rules Income Tax
    Foreign Tax Credit (‘FTC’) - Lower of the tax payable under the Act and DTAA
    Act Rules Income Tax
    Foreign Tax Credit (‘FTC’) - Cases in which no FTC benefit would be available
    Act Rules Income Tax
    Foreign Tax Credit (‘FTC’) shall be allowed if evidence & undertaking furnished within 6 months ...
    Act Rules Income Tax
    Foreign Tax Credit (‘FTC’) - Meaning of foreign tax
    Act Rules Income Tax
    Foreign Tax Credit (‘FTC’) - Benefit on proportionate basis
    Act Rules Income Tax
    Foreign Tax Credit (‘FTC’) - FTC benefit in the year in which income offered to tax
❮
❯
❯❯
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
Income Computation standards: specific tax-rule provisions prevail over general ICDS when the two provisions conflict.
ICDS are subordinate general principles for computing income and do not override specific provisions of the Income-tax Rules; where a specific rule governs a particular circumstance, that rule prevails over any inconsistent ICDS guidance.
Manuals Income Tax
Show AI Summary
ICDS applicability may govern specified transactional tax issues, raising whether prior judicial precedents remain operative.
The ICDS, notified under section 145(2), are intended to standardise computation of business and other income for the transactional issues they address and apply to assessment years following notification. They were framed after reviewing judicial views to supply authoritative guidance where earlier judicial decisions arose without statutory standards; nevertheless, some ICDS provisions may conflict with those precedents, posing a question about which authority should prevail.
Manuals Income Tax
Show AI Summary
ICDS application: accounting standards govern business income computation for exempt trusts, triggering ICDS when commercial books are maintained.
ICDS do not apply to the standalone computation of exemption for charitable entities based on the commercial concept of income; however, when income is taxed under the regular heads, ICDS apply to income classified under Profits and Gains of Business or Profession and Income from Other Sources if books are kept on the mercantile system. If a trust carries on incidental business with separate books, business income must be computed on a commercial basis and ICDS apply to that business income despite entitlement to charitable exemption.
Manuals Income Tax
Show AI Summary
Applicability of ICDS may indirectly determine whether TDS provisions apply by altering gross receipts/turnover calculations.
ICDS influence the computation of gross receipts/turnover used to determine whether statutory TDS provisions apply; while ICDS govern income computation and not TDS rules, their application to receipts can indirectly change whether individuals, HUFs or presumptive taxpayers cross the turnover benchmarks that attract TDS obligations.
Manuals Income Tax
Show AI Summary
ICDS applicability: applies to taxable income computation under business or other income irrespective of Ind AS adoption.
For computing taxable income under the heads Profits and Gains of Business or Profession and Income from Other Sources, ICDS provisions govern determination of income irrespective of whether an entity follows erstwhile Accounting Standards or Ind AS for financial reporting; companies adopting Ind AS must apply ICDS adjustments when computing taxable income under those heads.
Manuals Income Tax
Show AI Summary
ICDS applicability clarified: sector-specific provisions and statutory overrides determine application to banks, insurers and financial firms.
ICDS apply generally for income computation unless an ICDS contains sector-specific provisions or the substantive law provides a special regime; ICDS VIII addresses banks and certain financial institutions, while statutory and regulatory accounting requirements for insurance business prevail over general ICDS provisions.
Manuals Income Tax
Show AI Summary
ICDS applicability to non-residents ensures income is determined under ICDS before flat-rate tax treatment on passive receipts.
ICDS applies to non-resident income taxed at a flat rate-such as interest, royalty and fees for technical services-because the flat tax is applied after determination of income, so Income Computation and Disclosure Standards govern measurement and recognition for computing taxable income.
Manuals Income Tax
Show AI Summary
Change of accounting method: an assessee may adopt cash basis if the change is bona fide and consistently applied thereafter.
An assessee may change the method of accounting from mercantile to cash basis if the change is bona fide and is followed regularly thereafter; such a change is distinct from a change in accounting policy and must be consistently applied to support proper income computation and disclosure.
Manuals Income Tax
Show AI Summary
ICDS revenue recognition applies to presumptive tax schemes computing income from gross receipts or turnover.
ICDS on revenue recognition applies to taxpayers under presumptive tax schemes when such schemes compute income by reference to gross receipts, turnover or similar revenue measures; absent an express exclusion, ICDS principles govern the computation of those receipts or turnover for income-tax computation and disclosure.
Manuals Income Tax
Show AI Summary
Accounting method application: ICDS governs sources using the mercantile system but not sources accounted on a cash basis.
ICDS applies at the source level: it governs only those sources where the assessee follows the mercantile (accrual) system of accounting and does not apply to sources maintained on the cash system, a distinction intended to prevent escapement of income caused by heterogeneous accounting across an assessee's activities.
Manuals Income Tax
Show AI Summary
ICDS applicability limited to mercantile accounting; excludes cash-accounting and individuals/HUFs not subject to tax audit.
ICDS applies to persons following the mercantile system of accounting and does not apply to those following the cash system. For individuals and HUFs, ICDS is applicable only if they carry on business or profession and their books are required to be audited under the tax audit provisions; it does not apply where there is no business or professional income even if mercantile accounting is followed for other heads.
Act Rules Income Tax
Show AI Summary
Foreign tax credit conversion uses telegraphic transfer buying rate on the last day of preceding month.
Foreign tax credit is determined by converting the currency of the foreign-tax payment at the telegraphic transfer buying rate applicable on the last day of the month immediately preceding the month in which that tax is paid or deducted.
Act Rules Income Tax
Show AI Summary
Foreign Tax Credit documentation: verified income statement plus certificate and payment or deduction proof to claim credit.
Foreign Tax Credit eligibility requires a verified statement of foreign income and foreign tax paid in the prescribed form, plus a certificate or statement specifying the nature of the income and tax deducted or paid issued by the foreign tax authority, the person who deducted the tax, or signed by the taxpayer, accompanied by a tax challan or online payment acknowledgement for payments and proof of deduction where tax was withheld.
Act Rules Income Tax
Show AI Summary
Foreign tax credit allowed against MAT/AMT like normal tax, but any excess over normal provisions is ignored.
Foreign tax credit under Rule 128 of the Income tax Rules, 1962, is allowable against tax payable under MAT or AMT in the same manner as under the normal provisions; any foreign tax credit available against MAT/AMT that exceeds the credit allowable under normal provisions is ignored when computing MAT/AMT credit.
Act Rules Income Tax
Show AI Summary
Foreign tax credit: credit limited to lower of domestic tax and foreign tax; treaty excess is disregarded.
Rule 128 of the Income tax Rules, 1962 limits Foreign Tax Credit to the lesser of domestic tax chargeable on the doubly taxed income and the foreign tax actually paid, and directs that any foreign tax paid in excess of the tax payable under the applicable DTAA be ignored for credit computation.
Act Rules Income Tax
Show AI Summary
Foreign Tax Credit denial: no credit for domestic interest, fees or penalties and for disputed foreign taxes.
Rule 128 restricts Foreign Tax Credit by disallowing FTC against interest, fees or penalties payable under the Income-tax Act, and by excluding any foreign tax (or part thereof) that is disputed by the assessee.
Act Rules Income Tax
Show AI Summary
Foreign Tax Credit requires evidence of settlement, proof of payment and an undertaking within six months of dispute resolution.
Foreign Tax Credit (FTC) is allowed for disputed foreign tax only if, within six months from the end of the month in which the dispute is finally settled, the assessee furnishes evidence of settlement, evidence that the tax liability has been discharged by the assessee, and an undertaking that no refund in respect of that amount has been or will be claimed.
Act Rules Income Tax
Show AI Summary
Foreign tax definition determines FTC scope: DTAA-covered taxes apply, otherwise income-tax-type foreign levies qualify for credit.
Definition of foreign tax for Foreign Tax Credit under Rule 128: where a DTAA exists, foreign tax is the tax covered by that DTAA; where no DTAA exists, foreign tax is the tax payable under the foreign country's law in the nature of income-tax as defined in the statutory explanation, including excess profits tax or business profits tax charged on profits by central or local authorities.
Act Rules Income Tax
Show AI Summary
Foreign tax credit proportionate allocation ensures foreign tax relief is apportioned when income is taxed across multiple years.
Foreign tax credit under the Income tax Rules operates on a proportionate allocation principle when the same income is taxable in more than one year; the credit entitlement must be apportioned across the years in which the income is offered to tax so that relief for foreign taxes corresponds to the portion of income taxed in each year.
Act Rules Income Tax
Show AI Summary
Foreign tax credit allowed when foreign tax corresponds to income offered or assessed to tax in India in the same year.
Foreign tax credit is available to Indian residents for tax paid in a foreign country or specified territory, and is allowed only in the year when the corresponding income is offered to tax or assessed to tax in India, creating a temporal link between domestic taxation of the income and recognition of the foreign tax credit.

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