Just a moment...

⚠ ✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Keyword Search :
AI Tools : New
Ask tax questions in natural language. Powered by AI trained on the TaxTMI legal database. Use AI Tools ➞
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
  6. The system will try to fetch results that contains ALL your words.
  7. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
    8. 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.
Relevance Default Date
    Manuals Service Tax
    Whether proceedings can be reopened on the basis of a favourable decision in another case?
    Manuals Service Tax
    Whether a wrong decision by jurisdictional court is binding on the parties in absence of any appeal ...
    Manuals Service Tax
    Whether an order becomes a final order if no appeal has been filed against it?
    Manuals Service Tax
    Whether right to appeal is a inherent right? Whether it is necessary that right of appeal must be ex...
    Manuals Service Tax
    What is the meaning of 'Reason to Believe' in context to search & seizure provisions?
    Manuals Service Tax
    Whether in case, composite price (inclusive of service tax) is shown in invoice and no separate duty...
    Manuals Service Tax
    Whether Doctrine of unjust enrichment is applicable on finalisation of provisional assessments?
    Manuals Service Tax
    Whether Doctrine of unjust enrichment is applicable on duty paid under protest?
    Manuals Service Tax
    Whether data in "CD" can be a admissible evidence for refund claim under Section 11B? Whether data i...
    Manuals Service Tax
    Whether limitation of refund filing is applicable on the cases where amount paid to the department a...
    Manuals Service Tax
    Whether deposit of service tax before rendering services will be covered under limitation of refund...
    Manuals Service Tax
    Whether Appellate authority has empowered to increase the penalty? Whether Appellate authority can i...
    Manuals Service Tax
    Whether the penalty under section 78 of the Finance Act, 1994 can be reduced below the minimum limit...
    Manuals Service Tax
    Whether the penalty under Section 76 of the Finance Act, 1994 can be reduced below the limit prescri...
    Act Rules Service Tax
    Whether Service tax paid by back calculations i.e. service tax separately not charged will be covere...
    Act Rules Service Tax
    Whether assessee is liable to pay collected service tax as per provision of Sec.73A even if his turn...
    Manuals Service Tax
    Whether ignorance of law can be a factor for not to revoke extended period of limitation?
    Manuals Service Tax
    In what circumstances extended period of limitation is not enforceable? Whether SCN can be issued fo...
    Act Rules Service Tax
    Whether show cause notice related to period beyond 18 months or 5 years as the case may be, is valid...
    Manuals Service Tax
    Whether it is mandatory to mention specific head / sub head of services in SCN in which demand of se...
❮
❯
❯❯
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:

Open Link
Notes
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
Manuals Service Tax
Whether proceedings can be reopened on the basis of a favourable decision in another case?
Show AI Summary
Finality of proceedings: tax assessments cannot be reopened due to another taxpayer's favourable decision without recall in the same case.
Reopening tax assessment proceedings based on a favourable decision in another assessee's case is ordinarily not permitted; a final order in an assessee's own case remains effective until it is specifically recalled or set aside in that same proceeding.
Manuals Service Tax
Whether a wrong decision by jurisdictional court is binding on the parties in absence of any appeal ...
Show AI Summary
Finality of unappealed decisions: unchallenged jurisdictional rulings bind the parties until lawfully reversed.
A jurisdictional court's unappealed ruling, even if incorrect, becomes final and binding between the parties and remains so until reversed by a higher forum or other statutory remedy; thus unchallenged classificatory or determinative decisions must be obeyed in subsequent proceedings unless lawfully set aside.
Manuals Service Tax
Whether an order becomes a final order if no appeal has been filed against it?
Show AI Summary
Finality of administrative orders follows when no appeal is filed, and remand directions limit reconsideration scope.
An administrative order attains finality where an entitled party does not file an appeal against a Tribunal disposition; remand orders limit reconsideration to the specific issues directed by the Tribunal, and parties who do not contest merits before the Tribunal forfeit the ability to re argue those merits, so that authorities acting on remand cannot expand review beyond the remand directions.
Manuals Service Tax
Whether right to appeal is a inherent right? Whether it is necessary that right of appeal must be ex...
Show AI Summary
Right of appeal is not inherent; it exists only when statute creates and defines it, including scope and procedure.
The right of appeal is not inherent but is a statutory construct: appellate existence, scope and procedure must be authorized by the creating provision; omissions in citation do not automatically bar an otherwise maintainable appeal; absence of an appellate provision does not prevent an order from becoming final.
Manuals Service Tax
What is the meaning of 'Reason to Believe' in context to search & seizure provisions?
Show AI Summary
Reason to believe requires subjective belief grounded in material evidence, preventing arbitrary or capricious searches.
The concept of reason to believe requires that a subjective opinion be based on material on the record, not arbitrary or whimsical; it must be held in good faith and courts may test whether the reasons have a rational and relevant connection to the formation of belief, excluding extraneous considerations.
Manuals Service Tax
Whether in case, composite price (inclusive of service tax) is shown in invoice and no separate duty...
Show AI Summary
Inclusive pricing does not establish passing on of tax burden; composite invoices alone do not prove unjust enrichment.
Showing a composite price on an invoice does not, by itself, establish that the supplier passed the tax burden to customers or realized unjust enrichment; where prices remained unchanged after a tax was imposed, inclusive pricing alone is insufficient evidence that any element of tax was added to the price, and proof of an added tax component is required to infer passing on of the tax.
Manuals Service Tax
Whether Doctrine of unjust enrichment is applicable on finalisation of provisional assessments?
Show AI Summary
Doctrine of unjust enrichment excluded where a refund arises only after finalisation of provisional assessment.
The doctrine of unjust enrichment does not apply to refund claims that arise after the finalisation of provisional assessments; refunds or recoveries consequent on the final determination of duty liability fall outside the interim statutory refund framework and are not barred by unjust enrichment objections.
Manuals Service Tax
Whether Doctrine of unjust enrichment is applicable on duty paid under protest?
Show AI Summary
Unjust enrichment doctrine not bar to refund of duty paid under protest; provisional assessments preserve refund entitlement.
The doctrine of unjust enrichment does not bar refund claims for duty paid under protest; recoveries or refunds consequent on final determination of duty liability fall outside bars that would deny restitution. Provisional assessments and unresolved price and classification lists render clearances provisional, supporting the taxpayer's entitlement to have refund claims adjudicated on the basis of final liability rather than dismissed as struck by unjust enrichment.
Manuals Service Tax
Whether data in "CD" can be a admissible evidence for refund claim under Section 11B? Whether data i...
Show AI Summary
Admissibility of electronic records: computerised data on CD can support service tax refund claims and show no transfer of tax burden.
Data on compact disc (CD) can be admissible evidence for service tax refund claims where it constitutes computerised records recognised under the Information Technology Act and the Service Tax Rules. Such electronic records may also be used to prove that the incidence of service tax was not transferred to another party (absence of unjust enrichment), provided the data meets the statutory criteria for admissible computerised evidence and forms part of the assessee's maintained electronic records.
Manuals Service Tax
Whether limitation of refund filing is applicable on the cases where amount paid to the department a...
Show AI Summary
Limitation on refund filings: time-bar inapplicable where payments were not service tax and were excess realisations.
Limitation under Section 11B(1) applies only to refund claims of a duty of excise and interest; payments not constituting service tax or lawful excise levy are outside that bar and may be refunded. Judicial authorities (M/s Natraj and Venkat Associates; ITC Ltd.) recognise that excess realisations beyond what the statute permits are realisations outside the Act and thus not subject to the statutory limitation on excise refunds.
Manuals Service Tax
Whether deposit of service tax before rendering services will be covered under limitation of refund...
Show AI Summary
Limitation on service tax refunds: late claims are barred unless tax was paid under protest.
Refunds of amounts paid as service tax are governed by the statutory limitation provisions; where payments were credited to the service tax account and the claimant acknowledged applicability of the limitation rule, a refund claim filed after the limitation period is barred unless the tax was paid under protest.
Manuals Service Tax
Whether Appellate authority has empowered to increase the penalty? Whether Appellate authority can i...
Show AI Summary
Appellate authority power to increase penalties is limited; payment of tax and interest can justify mitigation of penalty.
Appellate authority does not have power to increase or impose a fresh penalty; payment of tax and interest that neutralises pecuniary advantage is relevant for mitigation, and taxpayer status and proportionality are material in assessing whether a revised penalty is unduly harsh under the statutory penalty framework.
Manuals Service Tax
Whether the penalty under section 78 of the Finance Act, 1994 can be reduced below the minimum limit...
Show AI Summary
Penalty minimums prohibited from reduction: statutory scheme prevents lowering prescribed service tax penalty through discretionary provisions.
Penalty under section 78 of the Finance Act, 1994 cannot be reduced below the statutory minimum by invoking section 80; a conjoint reading of the provisions shows no discretion to levy or reduce a penalty below the prescribed floor, and appellate bodies and tribunals cannot read such power into the statutory scheme.
Manuals Service Tax
Whether the penalty under Section 76 of the Finance Act, 1994 can be reduced below the limit prescri...
Show AI Summary
Penalty under Section 76 cannot be reduced below the statutory minimum; authority's discretion is confined to the prescribed range.
Section 76 penalty under the Finance Act, 1994 confines the authority to a legislatively prescribed minimum-to-maximum range; authorities lack power to reduce the penalty below the statutory minimum per day of default, and courts have rejected construing any additional discretion into the provision as that would amount to rewriting the statute.
Act Rules Service Tax
Whether Service tax paid by back calculations i.e. service tax separately not charged will be covere...
Show AI Summary
Service tax deposit obligations do not arise where tax was not invoiced or collected, limiting unjust enrichment claims.
Where no invoice was raised and no amount was specifically collected as service tax from recipients, the statutory duty to deposit such tax does not arise because there is no collected tax to be held on behalf of the Government, and absence of pass through means the legal condition for invoking unjust enrichment is not satisfied.
Act Rules Service Tax
Whether assessee is liable to pay collected service tax as per provision of Sec.73A even if his turn...
Show AI Summary
Deposit of collected service tax must be remitted even if small provider exempt; penalties apply for non-deposit.
Section 73A requires that service tax collected from customers be deposited with the Central Government even if the collector avails the small service provider exemption; tribunals have held that collection triggers an obligatory deposit and failure to deposit and to file returns attracts penal action and enforcement for non-compliance.
Manuals Service Tax
Whether ignorance of law can be a factor for not to revoke extended period of limitation?
Show AI Summary
Ignorance of law or illiteracy can undermine findings of willful suppression, affecting the validity of tax demand and penalties.
Administrative demands and penalties based on alleged willful suppression of taxable services require supporting record evidence and must correspond to allegations in the show cause notice; where the record does not substantiate suppression and the allegation was not made in the notice, the resultant service tax demand and penalties are not sustainable.
Manuals Service Tax
In what circumstances extended period of limitation is not enforceable? Whether SCN can be issued fo...
Show AI Summary
Extended limitation period: not available where assessee had bona fide belief or doubt about service tax liability.
Extended limitation cannot be invoked where the assessee had a bona fide belief that no service tax was payable, where bona fide doubt existed about chargeability, where the assessee voluntarily approached the department earlier, where the issue is one of legal interpretation creating genuine confusion, or where earlier favorable decisions were subsequently overruled without evidence of suppression.
Act Rules Service Tax
Whether show cause notice related to period beyond 18 months or 5 years as the case may be, is valid...
Show AI Summary
Limitation for recovery of service tax prevents collection for time barred periods but notice remains partly effective.
A show cause notice that includes periods beyond the statutory limitation does not become wholly invalid; the Department cannot recover tax for time barred periods, and the assessee may raise the limitation defence during proceedings. The same rule applies to notices extending beyond a shorter statutory limitation-the excess period yields no departmental entitlement to recovery but does not vitiate valid allegations within the limitation.
Manuals Service Tax
Whether it is mandatory to mention specific head / sub head of services in SCN in which demand of se...
Show AI Summary
Specific service allegation: tax liability cannot be confirmed unless the show-cause notice specifies the service head.
A show-cause notice must specifically identify the service head or sub-head relied upon; absent a precise allegation as to the applicable classification, tax liability cannot be confirmed, and alternative classifications suggested by the Commissioner without being pleaded in the notice render any demand unsustainable.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Home › TMI Notes › Income Tax › Act-Rules › Category › This
Back

All TMI Notes

whatsapp Join Channel
Showing Results for : Reset Filters
Income Tax

Comparison of section 335 "Regular income." 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

Print Options

Section 335 Regular income.

Income-tax Act, 2025

At a Glance

Section 335 as appearing in the Income-tax Act, 2025 (Document 1), and Clause 335 of the Income Tax Bill, 2025 - Old Version (Document 2). Both define "regular income" of a registered non-profit organisation, but they differ in wording, structure and certain substantive inclusions/exclusions. The changes affect how receipts/income from charitable activities, property/investments, voluntary contributions and commercial activity gains are characterised for tax purposes and therefore affect taxpayers (registered non-profit organisations), the tax department, and advisors. Effective date or enactment status: Not stated in the document.

Background & Scope

Statutory hooks: Clause/Section 335 (as labelled) dealing with "Regular income" of a registered non-profit organisation. The Bill text (Document 2) provides the definition in the Bill's old version; Document 1 presents a Section 335 in the enacted Act form. Both texts concern the coverage of income/receipts that constitute the regular income of a registered non-profit organisation. Definitions beyond the clause text (e.g., definition of "registered non-profit organisation", "charitable or religious activity", or "commercial activity") are Not stated in the document. Any cross-references to other provisions: Document 2 refers to sections 345 and 346 (as restrictions); Document 1 refers to sections 344, 345 and 346 and to section 332(2)(b)(ii) for part-held property. No further definitions or explanatory notes are provided in the materials supplied.

Statutory Provision Mode

Text & Scope

Clause 335 (Old Bill version) defines "regular income of any tax year of a registered non-profit organisation" to include four categories: (a) receipts from the charitable or religious activity for which the organisation is registered and carried out in that tax year; (b) receipts (other than those in clause (d)), whether capital or revenue, derived from any property or investment held by the organisation in that tax year; (c) voluntary contributions received in that tax year; and (d) gains of any commercial activity, other than commercial activities restricted u/ss 345 and 346, carried out in that tax year, computed in such manner as prescribed. The clause is a definitional provision setting out the heads of regular income; further detail on computation is delegated to rules/regulations ("as prescribed").

Interpretation

The text frames "regular income" as encompassing both operational charitable/religious receipts and returns from assets/investments, contributions, and certain commercial gains. The Bill expressly treats receipts from property/investment as possibly capital or revenue in nature, indicating an intent to capture both types. The exclusion clause for commercial activities (i.e., activities restricted u/ss 345 and 346) shows a legislative design to permit some commercial activities while excluding others: the boundary is to be found in those cross-referenced sections. Legislative intent beyond the text (policy rationale, taxpayer burden relief, or revenue objectives) is Not stated in the document.

Exceptions/Provisos

The sole express exception in the Bill text is that receipts described in clause (b) exclude those specified in clause (d), i.e., receipts that are gains of commercial activity (clause (d)). Additionally, clause (d) itself excludes commercial activities that are restricted by sections 345 and 346. No other provisos, thresholds or carve-outs are provided in this clause. Any monetary thresholds, detailed exclusions, or special computation rules are Not stated in the document beyond the general "computed in such manner, as prescribed" for commercial gains.

Illustrations

  • Example 1: A registered non-profit running an educational programme receives fees for that programme in the tax year. Under clause (a) such fees are receipts from the charitable activity for which it is registered and therefore form part of regular income.
  • Example 2: A registered non-profit owns an office building from which it gets rental income. Those receipts, whether regarded as capital or revenue, fall under clause (b) (unless they are gains of a commercial activity excluded by clause (d)).
  • Example 3: The organisation undertakes a commercial venture whose gains are permitted (i.e., not restricted u/ss 345 and 346). Those gains are regular income under clause (d) and are subject to prescribed computation. Specific computation method: Not stated in the document.

Interplay

Clause 335 interacts by reference with sections 345 and 346 (restricting certain commercial activities). The clause contemplates prescribed computation for commercial gains, indicating interplay with subordinate legislation. Any interaction with other statutory provisions (for example, sections concerning registration, exemptions, or the treatment of voluntary contributions) is Not stated in the document except as noted.

Differences Between the Section 335 as appearing in the Income-tax Act, 2025 (Document 1), and Clause 335 of the Income Tax Bill, 2025 - Old Version (Document 2)

Principal textual and structural differences (comparison based strictly on the two supplied texts):

  • Terminology: Document 2 (Bill) uses "receipts"; Document 1 (Act) uses "income".
    • Practical impact: "Income" is a broader accounting/tax term than "receipts" and may incorporate notional gains or accruals, whereas "receipts" could be read more narrowly as cash or tangible receipts. The change may expand the taxable base or affect timing/recognition, depending on interpretation; the Bill does not itself explain the intended scope: Not stated in the document.
  • Property/Investment language: Document 2's clause (b) speaks of "receipts, other than those specified in clause (d), whether capital or revenue, derived from any property or investment held by such registered non-profit organisation". Document 1 separates wholly held property/deposit/investment (clause (b)) and part-held property/deposit/investment (clause (c)) and introduces express exclusion "other than income covered in clause (e)". It also introduces the term "deposit" and refers to section 332(2)(b)(ii) for part-held assets.
    • Practical impact: The Act's text is more granular-distinguishing wholly vs part-held assets and explicitly excluding commercial gains (clause (e)) from these heads-thus offering greater precision as to what counts as regular income from investments. This could reduce ambiguity about mixed-use assets and allocation of returns between charitable and non-charitable purposes.
  • Voluntary contributions: In Document 2 voluntary contributions are clause (c); in Document 1 they are clause (d). Substantive text is largely similar.
    • Practical impact: Purely structural; no substantive difference except placement.
  • Commercial activity gains: Document 2's clause (d) includes "gains of any commercial activity, other than the commercial activities restricted u/ss 345 and 346". Document 1's clause (e) refers to "gains of any commercial activity permissible u/ss 344, 345 and 346" (and is to be "computed in such manner, as may be prescribed").
    • Practical impact: The Act expands cross-references (adds section 344) and shifts the framing from "other than restricted under 345 and 346" to "permissible under 344, 345 and 346". This could change the scope of permissible commercial activities and the point of reference for restriction/permissibility. Exact practical consequences require reading sections 344-346: Not stated in the document.
  • Capital/revenue qualification: Document 2 explicitly states "whether capital or revenue" for property/investment receipts; Document 1 omits that language.
    • Practical impact: Removal of the explicit "capital or revenue" qualification may create interpretive questions about capital receipts from property/investments; whether such receipts are regular income will rest on interpretation of "income" and other provisions: Not stated in the document.

Practical Implications

  • Compliance and risk areas: Registered non-profit organisations must identify and classify receipts into the four heads. Particular areas of risk include (a) distinguishing charitable activity receipts from commercial activity gains, (b) classifying receipts from property/investments as capital or revenue, and (c) determining whether a commercial activity is "restricted" u/ss 345 and 346. The Bill requires prescribed computation for commercial gains; lack of published rules may create uncertainty until such rules are issued: Not stated in the document.
  • Record-keeping/evidence: The text implies the need for clear records segregating receipts from charitable operations, voluntary contributions, investment returns (with evidence to support capital vs revenue nature) and accounts for commercial activities (supporting computation as prescribed). The exact form of records or prescribed documentation: Not stated in the document.

Key Takeaways

  • Clause 335 (Old Bill) defines regular income in four heads: charitable activity receipts; receipts from property/investment (capital or revenue); voluntary contributions; and gains from permitted commercial activities (subject to prescribed computation).
  • Difference in later Act text: the Act uses "income" (not "receipts"), distinguishes wholly vs part-held assets, adds "deposit", and references sections 344-346 and section 332(2)(b)(ii); these are substantive drafting changes with practical effects on classification and scope.
  • The Bill expressly captures both capital and revenue receipts from property/investments; the Act omits that express wording, potentially altering interpretive emphasis.
  • Commercial gains are included but limited by cross-references to other sections; precise scope depends on those sections and on prescribed computation rules, which are not in the clause itself.
  • Many operational details-computation methods, registration implications, and the boundary between charitable and commercial activities-are left to other provisions or subordinate rules and are Not stated in the document.

Full Text:

Section 335 Regular income.

Topics

Acts Income Tax
Next ➔