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 ✕
🔎 TMI Notes - Adv. 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
    Act Rules Income Tax
    Comparison of Section 143 "Special provisions in respect of certain undertakings in North-Eastern St...
    Act Rules Income Tax
    Comparison of Section 135 "Deduction in respect of certain donations for scientific research or rura...
    Act Rules Income Tax
    Comparison of Section 124 "Deduction in respect of employer and assessee contribution to pension sch...
    Act Rules Income Tax
    Comparison of Section 119 "Carry forward and set off of losses not permissible in certain cases." be...
    Act Rules Income Tax
    Comparison of Section 118 "Carry forward and set off of losses and unabsorbed depreciation in busine...
    Act Rules Income Tax
    Comparison of Section 115 "Set off and carry forward of losses from specified activity." between the...
    Act Rules Income Tax
    Comparison of Section 114 "Set off and carry forward of losses computed in respect of specified busi...
    Act Rules Income Tax
    Comparison of Section 113 "Set off and carry forward of losses computed in respect of speculation" b...
    Act Rules Income Tax
    Comparison of Section 112 "Carry forward and set off of business loss." between the Income-Tax Act, ...
    Act Rules Income Tax
    Comparison of Section 111 "Carry forward and set off of loss from Capital gains." between the Income...
    Act Rules Income Tax
    Comparison of Section 110 "Carry forward and set off of loss from house property." between the Incom...
    Act Rules Income Tax
    Comparison of Section 108 "Set off of losses under same head of income." between the Income-Tax Act,...
    Act Rules Income Tax
    Comparison of Section 106 "Amount borrowed or repaid through negotiable instrument, hundi, etc." bet...
    Act Rules Income Tax
    Comparison of Section 105 "Unexplained expenditure." between the Income-Tax Act, 2025 (as passed) an...
    Act Rules Income Tax
    Comparison of Section 104 "Unexplained asset." between the Income-Tax Act, 2025 (as passed) and the ...
    Act Rules Income Tax
    Comparison of Section 103 "Unexplained investments." between the Income-Tax Act, 2025 (as passed) an...
    Act Rules Income Tax
    Comparison of Section 102 "Unexplained credits." between the Income-Tax Act, 2025 (as passed) and th...
    Act Rules Income Tax
    Comparison of Section 99 "Income of individual to include income of spouse, minor child, etc." betwe...
    Act Rules Income Tax
    Comparison of Section 93 "Deduction" between the Income-Tax Act, 2025 (as passed) and the Income-Tax...
    Act Rules Income Tax
    Comparison of Section 92 "Income from other sources." between the Income-Tax Act, 2025 (as passed) a...
❮
❯
❯❯
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
Act Rules Income Tax
Show AI Summary
Special tax deduction for North-Eastern undertakings grants full profit exemption for a fixed consecutive period.
A 100% deduction of profits and gains is available to undertakings in specified North-Eastern States for ten consecutive tax years starting from an "initial tax year", contingent on commencement or substantial expansion within a discrete qualifying window, formation and newness-of-plant conditions, exclusions for specified goods and activities, a defined test for "substantial expansion", and exclusivity preventing concurrent Chapter deductions; cross-referenced provisions determine treatment of re-established entities and aggregate duration limits.
Act Rules Income Tax
Show AI Summary
Deduction for research donations: tax relief for approved gifts subject to verification and specified exclusions.
Deduction is allowed for donations to approved research associations or educational institutions for scientific or social science/statistical research, contingent on recipient approval and information furnished by the payee to the prescribed income tax authority and subject to the Board's risk based verification; deductions are excluded where the donor has business/profession income or where contributions in cash exceed the prescribed threshold, and deduction is not to be denied solely because recipient approval is later withdrawn.
Act Rules Income Tax
Show AI Summary
Pension contribution deduction: employer and individual pension contributions receive tax relief, with caps and deeming rules affecting receipt.
Section 124 allows deductions for employer contributions to Central Government notified pension schemes subject to employer type percentage ceilings and for individual deposits into such schemes subject to an overall statutory cap; parent or guardian deposits for minors are aggregated with the individual cap. The provision defines salary for this purpose to include dearness allowance where employment terms so provide, disallows duplicate deduction where relief was claimed under the related provision, and deems amounts received on closure, opt out, or as annuity taxable in the year of receipt, with limited exceptions for nominee/parent/guardian receipts on death.
Act Rules Income Tax
Show AI Summary
Loss carry-forward restrictions: beneficial ownership and voting-power continuity determine entitlement to set off historic losses.
The section restricts carry forward and set off of losses on change in firm constitution, succession other than by inheritance, and change in shareholding of non-public companies unless continuity of beneficial ownership of shares carrying not less than fifty-one percent of voting power is maintained or specified exceptions (death, gift to relative, certain amalgamations/demergers, insolvency resolution plans with opportunity to be heard, tribunal-approved restructuring, relocation, and a start-up carve-out) apply.
Act Rules Income Tax
Show AI Summary
Carry-forward of predecessor losses: successor bank may set off losses as if reorganisation had not occurred, subject to continuity conditions.
Section 118 permits successor or resulting co operative banks to carry forward and set off predecessor accumulated losses and unabsorbed depreciation on amalgamation or demerger "as if the business reorganisation had not taken place," subject to the Act's set-off and depreciation rules. Demergers transfer directly attributable losses to the resulting undertaking and require pro rata apportionment of non direct losses by asset distribution. Qualification depends on continuity of banking activity and specified fixed asset holding thresholds, deemed tax year splitting, prescribed/notified conditions, and denial of set offs as taxable income upon non compliance.
Act Rules Income Tax
Show AI Summary
Ring-fencing of race-horse losses restricts set-off to stake-money income and allows limited carry forward period.
Losses from owning and maintaining race horses are ring-fenced and may be set off only against income from the same specified activity (stake money). Unabsorbed losses may be carried forward for set-off solely against future stake-money income in years when the assessee carries on the specified activity, subject to a limited carry-forward period after which unabsorbed amounts expire. Definitions narrow the scope of eligible income and losses.
Act Rules Income Tax
Show AI Summary
Set-off restriction for specified business losses limits use to profits of other specified business activities only.
Losses computed in respect of a specified business carried on by the assessee in a tax year may be set off only against profits and gains of other specified business activities for that year; any portion not so set off is an unabsorbed loss that may be carried forward and set off only against profits and gains of specified businesses in subsequent years.
Act Rules Income Tax
Show AI Summary
Speculation loss ring fencing: losses only offset against speculation profits with limited carry forward and priority in set off.
Losses from speculation business may be set off only against speculation business profits; any unabsorbed speculation business loss is carried forward and set off only against future speculation business profits, subject to a statutory temporal limitation and applied before certain other carried forward allowances. A deeming rule treats companies buying and selling shares of other companies as carrying on speculation business to that extent, subject to carve outs where specified income heads or principal business activities prevail.
Act Rules Income Tax
Show AI Summary
Carry forward of unabsorbed business loss limited to set off only against business profits, with a temporal carry forward limit.
Unabsorbed business loss (loss under Profits and gains of business or profession excluding speculation loss not absorbed under inter head set off) shall be carried forward and may be set off only against business or profession profits in subsequent years; any amount not so set off is carried forward iteratively, subject to a limit of not more than eight succeeding tax years, and such unabsorbed loss is to be given effect before allowing set off of specified carried forward allowances.
Act Rules Income Tax
Show AI Summary
Carry forward of capital losses: limited temporal carry forward with distinct set off rules for long term and short term losses.
A statutory regime prescribes distinct set off rules for losses under the head Capital gains: short term capital losses may be set off against gains from any other capital asset, long term capital losses only against gains from other long term assets, and any residual loss after intra year set off qualifies for carry forward but only for a limited number of succeeding tax years; the Bill defined this residual as an unabsorbed capital loss, whereas the enacted provision omits that label but retains equivalent practical effect.
Act Rules Income Tax
Show AI Summary
Carry-forward restriction of house property losses confines set-off to future house property income with a time-limited ceiling.
Residual losses computed under Income from house property that are not wholly absorbed by intra-year set-off qualify as unabsorbed loss from house property and may be carried forward, to be set off only against future house property income in subsequent years until the loss is absorbed or the statutory temporal limit expires; the clause defines the qualifying unabsorbed loss by reference to prior application of intra-year set-off rules.
Act Rules Income Tax
Show AI Summary
Capital gains set-off rules restrict long-term losses to long-term gains while short-term losses offset any capital gains.
Section 108 separates general intra-head set-off (excluding capital gains) from specific capital gains rules: long-term capital losses are only set off against other long-term capital gains in the same year, while short-term capital losses may be set off against gains from any capital asset, with classification and computation governed by the capital gains framework.
Act Rules Income Tax
Show AI Summary
Deeming rule for non-account-payee instruments treats amounts (including interest) as taxable income in the year of transaction.
Amounts (including interest) borrowed or repaid through a negotiable instrument, a hundi, or any mode specified by the Board shall be deemed to be the income of the borrower or repayer for the tax year of the transaction; transactions effected by an account payee cheque are excluded, and sub-section (2) prevents re-assessment of the same amount under that sub-section on repayment.
Act Rules Income Tax
Show AI Summary
Unexplained expenditure deemed income, disallowing deduction when source is not satisfactorily explained by assessing officer.
Section 105 deems expenditure to be income when the assessee offers no explanation of its source or offers an explanation the Assessing Officer deems unsatisfactory; the deemed amount cannot be claimed as a deduction under the Act, the deeming may apply to part of an expenditure, and the provision contains no definitions, procedural safeguards, evidentiary standards, or appeal mechanisms.
Act Rules Income Tax
Show AI Summary
Unexplained asset: acquisition expenditure governs deeming as income when taxpayers give no satisfactory explanation on source.
An unexplained asset found to belong to an assessee, or where the asset measure exceeds recorded books, may be deemed income for the year if the assessee offers no explanation or an explanation unsatisfactory to the Assessing Officer; the enacted text measures the asset by the amount expended in acquiring such asset and expressly includes virtual digital assets, while leaving valuation mechanics, evidential burdens, and procedural standards unspecified.
Act Rules Income Tax
Show AI Summary
Unexplained investments deemed income when not recorded or inadequately explained to the assessing officer.
Section 103 deems the value of investments to be income in the tax year where an investment is not recorded in the assessee's books of account, if any, or where the Assessing Officer finds the amount exceeds recorded entries, and the assessee either offers no explanation or an explanation that is not satisfactory in the opinion of the Assessing Officer.
Act Rules Income Tax
Show AI Summary
Unexplained credits: credited sums may be taxed if explanations are absent or unsatisfactory, shifting evidentiary burden to taxpayers and counterparties.
Section 102 allows sums found credited in an assessee's books to be charged as income where no explanation is given or the explanation is not satisfactory to the Assessing Officer. It places special deeming requirements on loans/borrowings and certain private company receipts, requiring the person in whose name the credit stands to provide a satisfactory explanation to the Assessing Officer, while excluding specified venture capital funds from those counterparty requirements.
Act Rules Income Tax
Show AI Summary
Clubbing of family income risks expanding under revised spouse professional-income wording, increasing compliance and valuation complexities.
Section 99 requires inclusion in an individual's total income of amounts arising to a spouse, son's wife, minor child, or where property is converted into HUF property; it prescribes exclusions for certain minor child earnings, a proportionate apportionment formula for assets invested in business or partnership, deems income to include loss, preserves a temporal carve out for conversions on or before 31 December 1969, and identifies documentation and valuation consequences where Bill wording diverges on spouse professional income carve outs, third party benefit attribution and the denominator reference date for apportionment.
Act Rules Income Tax
Show AI Summary
Deductions under Section 93 clarify allowable expenses and caps for income from other sources, with key exclusions.
Section 93 prescribes allowable deductions in computing income from other sources, including reasonable commissions for realising dividends and interest, cross-referenced expense allowances applied "so far as may be," capped deductions for family pension depending on tax computation method, revenue expenditures wholly and exclusively laid out, a single fixed-percentage deduction for a specified income class with no other deductions permitted, and sub-section rules denying deductions for a defined dividend class while limiting interest deductions for certain dividend or unit incomes.
Act Rules Income Tax
Show AI Summary
Income from other sources determines taxability of miscellaneous receipts and prescribes valuation, thresholds, and exemptions.
Section 92 creates a residuary head, Income from other sources, taxing miscellaneous receipts not chargeable under other heads and listing illustrative categories (dividends, winnings, specified insurance proceeds, interest, hire income, forfeited advances, compensation interest, termination payments, business trust distributions). It prescribes valuation and computation methods, monetary thresholds for gratuitous receipts with enumerated exceptions (relatives, marriage, inheritance, specified non profits, non transfer transactions), and cross references to other statutory definitions and procedures affecting payment modes and valuation challenges.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

Comparison of section 332 "Application for registration." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

11 September, 2025

Contents
Acts
Rules & Regulations
Summary
Note

Note

-

Bookmark

Print

Print

Section 332 Application for registration

Income-tax Act, 2025

At a Glance

Clause 332 of the Income Tax Bill, 2025 - (Old Version) "Application for registration" for registered non-profit organisations. It sets out who may apply, eligibility conditions, time-limits and procedural steps for grant, rejection or cancellation of registration. It matters to non-profit entities seeking tax-status benefits and to tax administration (Principal Commissioner/Commissioner). Effective dates or commencement details: Not stated in the document.

Background & Scope

Statutory hook: Clause 332, Part B (Special provisions for registered non-profit organisation), I-Registration. The provision prescribes which entities may apply for registration to claim benefits under the Part, the eligibility conditions, procedural timelines for application and decision, and consequences of delay. Definitions for terms used in the Clause (e.g., "charitable purposes" referencing section 2(23)) are limited to reference; the Clause relies on other statutory definitions. Any broader legislative context or explanatory notes: Not stated in the document.

Statutory Provision Mode

Text & Scope

The Clause applies to specified categories of persons who may apply for registration to claim benefits as a "registered non-profit organisation": (a) public trusts; (b) societies registered under the Societies Registration Act, 1860 or any law in India; (c) companies registered u/s 8 of the Companies Act, 2013 or companies previously registered u/s 25 of the 1956 Act and deemed registered u/s 465(2)(g) of the Companies Act, 2013; (d) universities or other educational institutions affiliated or recognised by Government; (e) institutions financed wholly or partly by Government or a local authority; (f) persons listed in specified entries of Schedules III and VII; and (g) other persons notified by the Board.

Eligibility ingredients (sub-section (2)): (a) constitution/registration/incorporation in India for carrying out one or more charitable purposes as referred to in section 2(23) or one or more public religious purposes, or both; and (b) properties held under an irrevocable trust for the benefit of the general public - either wholly for charitable or religious purposes, or partly for such purposes in India if constituted prior to commencement of the Income-tax Act, 1961.

Interpretation

The Clause frames eligibility by reference to existing statutory definitions (section 2(23)) rather than redefining charitable or religious purposes, indicating reliance on established interpretive tests under the Act. The requirement that properties be "held under an irrevocable trust for the benefit of the general public" is a substantive condition: the trust character and public-benefit orientation are explicit statutory prerequisites. The decision-making role is vested in the Principal Commissioner or Commissioner, who must make enquiries and call for documents to assess "genuineness of activities" and compliance with other laws "material for the purpose of achieving its objects." Legislative intent beyond these textually expressed aims: Not stated in the document.

Exceptions/Provisos

The Clause contains temporal and conditional permutations in the Table (sub-section (3)) governing when applications must be made, and the period of validity if registration is granted. Notable exceptions/conditions: provisional registration is available where activities have not commenced (Table Sl. No. 1). Sub-section (4) permits condonation of delay by the Principal Commissioner/Commissioner for reasonable cause. Sub-section (5) substitutes a longer validity (ten years instead of five) for certain lower-income applicants (income not exceeding Rs. 5 crore in each of two preceding tax years). Liability for tax on accreted income u/s 352 applies where certain late applications are not condoned (sub-section (6)). Specific provisos limiting scope of object modifications (see Table Sl. No. 7) are not present in the Old Version beyond the requirement to notify within 30 days; further nuance: Not stated in the document.

Illustrations

  • Newly formed society formed in April seeking registration for tax year starting 1 April: it may apply "at any time during the tax year beginning from which registration is sought"; where activities have not commenced and provisional registration is sought, the Commissioner must decide within three months from end of month of application (Table Sl. No.1).
  • An established trust whose activities have commenced and which has never been registered may apply during the relevant tax year; the Commissioner has six months from end of the quarter in which application is made to pass order; registration, if granted, is valid for five tax years (Table Sl. No.2).
  • A registered non-profit that adopts a modification of objects must notify within 30 days of adoption; the Commissioner may, after enquiring, reject and cancel registration in such cases if not satisfied (Table Sl. No.7; sub-section (7)).

Interplay

The Clause expressly references section 2(23) (definition of charitable purposes), u/s 465(2)(g) of the Companies Act, 2013, and section 352 (tax on accreted income) - indicating interplay with substantive definitions and penalty provisions elsewhere. It also refers to "requirements of any other law as are material for the purpose of achieving its objects," signalling cross-compliance checks with other regulatory regimes. Specific cross-references to Rules, Notifications or Circulars beyond "as prescribed" for form and manner: Not stated in the document.

Practical Implications

  • Compliance and risk areas: Applicants must ensure constitutional documents and asset-holding arrangements evidence an irrevocable trust for public benefit; timely filing is crucial because delays can attract liability u/s 352 if not condoned. Entities altering objects must be alert to the 30-day notification requirement and risk cancellation if changes do not conform to registration conditions.
  • Record-keeping/evidence: The Commissioner is empowered to call for documents and enquiries into genuineness and compliance; applicants should retain foundational documents (trust deed, registration/incorporation records, objects clause, proof of irrevocability of asset holding), evidence of activities, financial statements (income thresholds are relevant for extended validity), and records of communications with funding authorities if government-funded.

Key Takeaways

  • Clause 332 prescribes categories of entities eligible to seek registration as non-profit organisations and ties benefits to structural and trust-based conditions.
  • Eligibility requires both charitable/religious objective(s) (per section 2(23)) and assets held under an irrevocable trust for public benefit; temporal limitations apply where assets are only partly for such purposes.
  • The statutory Table creates differentiated filing windows, decision timelines and validity periods depending on commencement of activities and prior registration status; provisional registration and renewal mechanics are provided.
  • Condonation of delayed filings is discretionary and taxable consequences (section 352) follow uncured delay for certain categories.
  • The Principal Commissioner/Commissioner has broad fact-finding powers and may reject or cancel registration following a hearing if not satisfied about genuineness or legal compliance.
  • Lower-income applicants (<= Rs. 5 crore in each of two preceding years) may receive extended registration validity (ten years) in specified situations.
  • Form and manner of orders and applications are to be prescribed; specific rules or forms are not contained in the Clause itself.

Differences between Section 332 of the Income-tax Act, 2025 and Clause 332 of the Income Tax Bill, 2025 - Old Version

  • Sub-section (2)(a): Clause 332 (Old) expressly includes "or both" after charitable and public religious purposes; Section 332 (Act) omits "or both" (it states "for carrying out one or more charitable purposes ... or one or more public religious purposes").
    • Practical impact: potential interpretive clarity in the Bill (Old) that combined charitable and religious purposes qualify; the Act's omission may invite question but likely not change substantive eligibility where both purposes are present-however the omission reduces textual explicitness.
  • Sub-section (3) procedural reference: The Bill (Old) requires following sub-sections (6) and (7); the Act requires following "the procedure provided in this section."
    • Practical impact: the Act's language is broader and may encompass additional subsections (e.g., 4,5) explicitly; the Old Bill's cross-reference is narrower but functionally the procedure invoked appears to align with the same subsections involved in decision-making.
  • Table - Sl. No.1 decision timeline: Clause 332 (Old) sets time-limit for passing order as "Three months from the end of the month in which application is made"; Section 332 (Act) reduces this to "One month from the end of the month in which application is made."
    • Practical impact: the Act imposes a shorter decision timeline for provisional registration where activities have not commenced, increasing administrative speed and pressure on the tax authority; applicants benefit from quicker certainty.
  • Table - Sl. No.7 scope: Clause 332 (Old) applies to an applicant "being a registered non-profit organisation, has adopted or undertaken modification of its objects." The Act narrows this trigger to modifications "which do not conform to the conditions of registration."
    • Practical impact: the Act narrows the category subject to immediate application requirement to object changes that are non-conforming, reducing compliance burden/risk of cancellation for any object modification that remains within registration conditions.
  • Substantive sequencing in sub-section (7): The Old Bill frames the enquiry "as to the compliance of such requirements of any other law ... and the genuineness of activities" while the Act frames enquiries to satisfy about "genuineness of activities, and the compliance of such requirements ... as are material."
    • Practical impact: largely stylistic, but the Act emphasises genuineness first and limits the scope of other-law compliance to requirements material to achieving objects - potentially narrowing the inquiry's scope.
  • Form of orders: Clause 332 (Old) uses "as prescribed"; Section 332 (Act) uses "as may be prescribed."
    • Practical impact: nominal; no substantive change evident.

Action Points

  • Entities planning to seek registration should verify that their objects fall within section 2(23) and/or public religious purposes, ensure assets are held under an irrevocable trust for public benefit, and prepare documentary evidence in advance.
  • Registered organisations contemplating modification of objects should assess whether changes "conform to the conditions of registration" (per the Act) to determine the 30-day filing obligation and risk of cancellation.
  • Smaller organisations (income <= Rs. 5 crore in each of the two preceding years) should document income history to avail potential ten-year validity in designated cases.
  • Monitor the prescribed forms and order formats when notified, and be prepared for enquiries from the Principal Commissioner/Commissioner.

Full Text:

Section 332 Application for registration

Topics

Acts Income Tax