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 characters0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
    6. Text Search
  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.
RelevanceDefaultDate
    NewsBills
    AMENDMENT TO SEVENTH SCHEDULE TO THE FINANCE ACT, 2001
    NewsBills
    AMENDMENTS TO THE CUSTOMS ACT, 1962
    NewsBills
    Decriminalisation of section 276A of the Act
    NewsBills
    Extension of exemption to Specified Undertaking of Unit Trust of India (SUUTI) and providing for alt...
    NewsBills
    Omission of certain redundant provisions of the Act
    NewsBills
    Set off and withholding of refunds in certain cases
    NewsBills
    Removal of certain funds from section 80G
    NewsBills
    Denial of exemption where return of income is not furnished within time
    NewsBills
    Alignment of the time limit for furnishing the form for accumulation of income and tax audit report
    NewsBills
    Trusts or institutions not filing the application in certain cases
    NewsBills
    Specified violations under section 12AB and fifteenth proviso to clause (23C) of section 10
    NewsBills
    Combining provisional and regular registration in some cases
    NewsBills
    Omission of redundant provisions related to roll back of exemption
    NewsBills
    Treatment of donation to other trusts:
    NewsBills
    Rationalisation of the provisions of Charitable Trust and Institutions
    NewsBills
    Providing clarity on benefits and perquisites in cash
    NewsBills
    Non-Banking Financial Company (NBFC) categorization
    NewsBills
    Specifying time limit for bringing consideration against export proceeds into India
    NewsBills
    Rationalization of provisions related to the valuation of residential accommodation provided to empl...
    NewsBills
    Bringing the non-resident investors within the ambit of section 56(2)(viib) to eliminate the possibi...
❮
❯
❯❯
MaximizeMaximizeMaximize
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 SummariesHide All Summaries
    NewsBills
    AMENDMENT TO SEVENTH SCHEDULE TO THE FINANCE ACT, 2001
    Show AI Summary
    NCCD revision on specified cigarettes raises excise incidence under the Seventh Schedule and alters tariff rate application.
    Revision of NCCD rates increases per thousand levies on specified HS 2402 cigarette subitems in the Seventh Schedule, effective 2 February 2023 with provisional collection available. Notification No. 05/2023 Central Excise exempts excise duty on blended CNG to the extent of GST paid on contained biogas/compressed bio gas, subject to specified conditions.
    NewsBills
    AMENDMENTS TO THE CUSTOMS ACT, 1962
    Show AI Summary
    Customs Tariff Rationalization: Revised duties, AIDC and SWS adjust tariffs and amend exemption notifications structure.
    Amendments limit the two year validity rule for exemption notifications by excluding international agreements, diplomatic privileges, specified schemes and certain import categories; insert a nine month disposal deadline for Settlement Commission applications; clarify that countervailing and anti dumping determinations and reviews must follow rules under the Customs Tariff Act and that appeals lie against such determinations or reviews; and materially revise the First Schedule and related notifications to rationalize Basic Customs Duty rates, adjust tariff entries, and amend AIDC and SWS treatment while extending, discontinuing or rescinding targeted exemptions.
    NewsBills
    Decriminalisation of section 276A of the Act
    Show AI Summary
    Decriminalisation of liquidator prosecution: no new prosecutions under the provision after the sunset, existing prosecutions continue.
    The amendment inserts a sunset clause decriminalising the provision that imposed criminal liability on liquidators for non compliance with distribution obligations: no fresh prosecution may be launched under the provision on or after 1 April 2023, while prosecutions instituted earlier remain unaffected. The change is justified by the government's decriminalisation policy and by the existing Insolvency and Bankruptcy Code regime and oversight that now govern liquidations.
    NewsBills
    Extension of exemption to Specified Undertaking of Unit Trust of India (SUUTI) and providing for alt...
    Show AI Summary
    Tax exemption extension for SUUTI permits continued tax-free administration until a notified date, with revised vacation rules.
    Proposal amends the UTI Repeal Act, 2002 to extend that no income-tax or other tax shall be payable by the Administrator in relation to the specified undertaking until the period ending on the thirtieth day of September, 2023, and to provide that the Administrator shall vacate office immediately on redemption of all schemes and payment of entire amounts to investors or from a date notified by the Central Government, whichever is earlier.
    NewsBills
    Omission of certain redundant provisions of the Act
    Show AI Summary
    Omission of redundant tax provisions: repeal of section 88 and specified income exclusions to streamline statutory law.
    Proposal to omit a provision relating to rebate on life insurance premia and provident fund contribution-formerly in section 88-on the ground that it was sunsetted and superseded by the deduction regime under section 80C; and to omit specified clauses of section 10 that had already been sunsetted, with the amendments to take effect from the commencement of the next fiscal year beginning 1st April, 2023.
    NewsBills
    Set off and withholding of refunds in certain cases
    Show AI Summary
    Withholding of refunds: amended set-off and suspension rules let tax authorities withhold refunds pending assessment, limiting additional interest.
    Amendments integrate set-off and withholding mechanisms so the tax authority may set off any refund against sums payable after giving written intimation; where part or no amount is set off, the Assessing Officer, with reasons recorded and prior approval of the Principal Commissioner or Commissioner, may withhold the remaining refund while assessment or reassessment is pending if grant of refund would likely affect revenue. Additional interest will not accrue for the period the refund is withheld, while other interest rights remain unchanged.
    NewsBills
    Removal of certain funds from section 80G
    Show AI Summary
    Charitable donation deduction change removes named funds from eligible list, affecting deduction eligibility from next assessment year.
    Amendment omits sub-clauses (ii), (iiic) and (iiid) of clause (a) of sub section (2) of section 80G, removing three named funds from the statutory list of organizations whose donations qualify for allowed deductions, thereby changing deduction eligibility under the approval-based framework.
    NewsBills
    Denial of exemption where return of income is not furnished within time
    Show AI Summary
    Denial of exemption for charities and institutions where income-tax returns are not filed within prescribed filing windows.
    Amendments clarify that exemptions for charitable, educational and medical entities will be denied if the return of income for the previous year is not furnished within the time allowed under the principal return-filing provisions, requiring returns to be furnished in accordance with the updated-return provisions but within the initial statutory filing windows.
    NewsBills
    Alignment of the time limit for furnishing the form for accumulation of income and tax audit report
    Show AI Summary
    Filing deadline alignment for trusts' accumulation statements: advance submission required to ease audit reporting and reconciliation burdens.
    The Finance Bill proposes that trusts and institutions required to furnish prescribed accumulation statements advance filing so that Form 9A/10 is submitted at least two months before the due date for filing the return of income; this change is intended to resolve the difficulty auditors face in reporting statement details when audit reports are due one month prior to the return filing deadline and requires amendments to explanatory clauses governing accumulation and deemed application reporting.
    NewsBills
    Trusts or institutions not filing the application in certain cases
    Show AI Summary
    Exit tax on accreted income applicable when trusts fail re registration, deemed conversion triggers tax liability and payment obligation.
    Failure by a trust or institution under the first or second regime to file required provisional, regular or re registration/approval applications within prescribed periods will be deemed a conversion not eligible for registration, attracting Chapter XII EB taxation. The tax is on accreted income (FMV of assets less liabilities per rules), charged at the maximum marginal rate and collectible in addition to other taxes. Principal officers/trustees and the specified person are jointly liable to pay the tax within fourteen days from the end of the previous year; the date of conversion includes the last date to apply.
    NewsBills
    Specified violations under section 12AB and fifteenth proviso to clause (23C) of section 10
    Show AI Summary
    Specified violation: incomplete or false registration applications now justify cancellation of trust approvals under the automated regime.
    Amendments expand the definition of specified violation to include applications that are incomplete or contain false or incorrect information, permitting cancellation of provisional approval/registration or approval/registration granted through the automated e filing process; the statutory text inserts clause (g) into the Explanation to the fifteenth proviso of clause (23C) of section 10 and into the Explanation to sub section (4) of section 12AB, with effect from 1 April, 2023.
    NewsBills
    Combining provisional and regular registration in some cases
    Show AI Summary
    Combining provisional and regular registration allows direct regular approval for active trusts, streamlining application and approval processes.
    Amendments permit trusts and institutions that have already commenced activities to seek direct regular approval instead of provisional registration; such applications are to be examined by the Principal Commissioner or Commissioner under applicable procedures, and registration may be granted for a multi year term if the authority is satisfied about objects, genuineness and statutory compliance, with the authority required to pass an order granting or rejecting the application within the prescribed decision period from receipt.
    NewsBills
    Omission of redundant provisions related to roll back of exemption
    Show AI Summary
    Roll-back provisions removed from section 12A(2), eliminating retrospective exemption and reassessment protection after later registration.
    The Finance Bill proposes to omit the second, third and fourth provisos to section 12A(2), which previously permitted retrospective application of sections 11 and 12 and barred reassessment under section 147 for certain prior years upon later registration; these provisos are deemed redundant after 2020 amendments requiring provisional registration before commencing activities, and the omission takes effect from 1st April, 2023.
    NewsBills
    Treatment of donation to other trusts:
    Show AI Summary
    Application of donations between trusts: inter trust transfers now count only partially as charitable application under the amendment.
    The Finance Bill restricts treatment of donations from one eligible trust or institution to another by providing that amounts credited or paid to another eligible fund, trust or institution or to a trust registered under the registration provision will be treated as application for charitable or religious purposes only to the extent specified in newly inserted explanatory clauses to the income exemption and income application provisions; the measure aims to prevent layered accumulation through multi stage donations and preserves the non corpus requirement for such transfers.
    NewsBills
    Rationalisation of the provisions of Charitable Trust and Institutions
    Show AI Summary
    Corpus and loan repayment rules limited: deposits or repayments qualify only if returned within a prescribed period and conditions met.
    Reinvestment into corpus or repayment of loans previously applied for charitable purposes will not be allowed as a fresh application if the original application was claimed before 01.04.2021, to prevent double deduction. Requalification is permitted only if repayment or reinvestment occurs within a limited period after application and the original application complied with statutory conditions (including prohibitions on corpus transfers, TDS and payment-mode limits, prohibition on benefit to disallowed persons, and India-location rules). Amendments add provisos to clause (23C) of section 10 and to section 11; they take effect from 1 April 2023.
    NewsBills
    Providing clarity on benefits and perquisites in cash
    Show AI Summary
    Tax deduction on benefits and perquisites clarified to cover cash or kind and to trigger withholding obligations.
    Amendments clarify that the value of any benefit or perquisite arising from business or profession is chargeable and that withholding under section 194R applies whether the benefit or perquisite is provided wholly in cash, wholly in kind, or partly in cash and partly in kind. The section 28 change addresses past judicial interpretation excluding cash benefits and is effective from 1st April, 2024, while the Explanation to section 194R is stated to take effect from 1st April, 2023.
    NewsBills
    Non-Banking Financial Company (NBFC) categorization
    Show AI Summary
    NBFC categorisation change: tax rules now specify deposit-taking and systemically important non-deposit-taking NBFCs for interest treatment.
    The proposal replaces the earlier statutory phrase referring to notified classes of non-banking financial companies with explicit reference to deposit-taking non-banking financial companies and systemically important non-deposit-taking non-banking financial companies, thereby specifying which NBFC categories are subject to the payment-basis interest deduction rule and the special interest income recognition rule. The amendment is prospective and will take effect from 1st April, 2024, applying to the assessment year 2024-2025 and subsequent years.
    NewsBills
    Specifying time limit for bringing consideration against export proceeds into India
    Show AI Summary
    Time limit for export proceeds remittance ties deduction to receipt in convertible foreign exchange or RBI approved account.
    Amendments tie SEZ unit deduction eligibility to filing the return of income by the due date and to receipt in India of export proceeds in convertible foreign exchange within six months from the end of the previous year (or within an extended period allowed by the competent authority). Proceeds credited to an RBI approved separate overseas bank account will be deemed received in India. Competent authority means the Reserve Bank of India or an authority regulating foreign exchange. Assessing officers may amend assessments when export earnings are realized after the permitted period.
    NewsBills
    Rationalization of provisions related to the valuation of residential accommodation provided to empl...
    Show AI Summary
    Valuation of employee accommodation: uniform Rules based method to compute perquisite value and classify concessional housing.
    The proposal consolidates valuation of employer provided residential accommodation by vesting the Rules with power to prescribe a uniform method for computing the value of rent free and concessional accommodation perquisites, treats accommodation as concessional when prescribed value exceeds rent payable by the employee, deletes several existing Explanations, and applies prospectively to assessments after implementation.
    NewsBills
    Bringing the non-resident investors within the ambit of section 56(2)(viib) to eliminate the possibi...
    Show AI Summary
    Inclusion of non-resident investors in tax on share premium to curb premium-based tax avoidance schemes.
    The Finance Bill proposes removing the residency limitation in the tax on excess consideration for issue of shares so that consideration received from non-resident investors will also be chargeable where aggregate consideration exceeds the fair market value computed under the existing FMV formula for unquoted equity shares; the amendment is effective from the first day of April following enactment and applies to the corresponding assessment year and subsequent years.

    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

      whatsappJoin Channel
      Showing Results for : Reset Filters
      Income Tax

      Comparison of section 337 "Specified 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 337 Specified income

      Income-tax Act, 2025

      At a Glance

      This document is Clause 337 of the Income Tax Bill, 2025 (Old Version), which defines "specified income" of a registered non-profit organisation and prescribes the tax year in which each category of specified income is taxable. It matters to registered non-profit organisations, tax authorities, and advisers overseeing compliance and application of tax exemptions. Effective date or decision date: Not stated in the document.

      Background & Scope

      Statutory hook: Clause 337 of the Income Tax Bill, 2025 (Old Version). The clause sets out a table enumerating categories of "specified income" of a registered non-profit organisation and prescribes the tax year in which each category is to be taxed. Definitions: The text does not provide standalone definitions for "registered non-profit organisation," "specified income," or other terms beyond the entries in the table. Not stated in the document: legislative purpose, explanatory notes, or effective date.

      Statutory Provision Mode

      Text & Scope

      Clause 337 lists 11 categories of income that qualify as "specified income" for registered non-profit organisations and assigns the taxable year for each category. The categories include: (1) anonymous donations (with an exclusion up to Rs.1,00,000 or 5% of donations), (2) income applied for benefit of related persons, (3) income applied outside India contrary to section 338(a), (4) investments made contrary to section 350 out of various funds, (5) deemed corpus donations violating section 340 conditions, (6) accumulated income applied to non-charitable/religious purposes, (7) accumulated income ceasing to be set apart for specified purposes u/s 342(1), (8) accumulated income not utilised within the period specified in section 342(1), (9) accumulated income credited or paid to another registered non-profit organisation, (10) income applied to purposes other than those for which the organisation is registered, and (11) income determined by the Assessing Officer u/s 344 in excess of income shown in books of a business undertaking.

      Interpretation

      The clause adopts a categorized, prescriptive approach: each identified event or failure resulting in income losing its non-taxable character is captured and linked to the tax year when taxation will arise. The text implies a legislative intent to specify distinct triggers for taxation of amounts that otherwise might be treated as exempt or charitable receipts. Specific interpretive guidance (e.g., definitions of "related person" or computation method) is not provided beyond cross-references; where procedural computation is required the clause says "computed in the manner, as prescribed" indicating delegated rules are expected. Not stated in the document: any legislative history or materials explaining the choice of triggers.

      Exceptions/Provisos

      The clause contains limited carve-outs: the anonymous donation rule excludes donations up to Rs.1,00,000 or 5% of total donations (whichever is higher) and exempts anonymous donations received by organisations "created or established wholly for religious purposes." No other explicit exceptions or provisos appear in Clause 337. Not stated in the document: any special thresholds for other items, or transitional provisions.

      Illustrations

      • Example 1: A registered non-profit organisation receives an anonymous donation of Rs.50,000 in a tax year and total donations in that year are Rs.10,00,000. Threshold (Rs.1,00,000 or 5% of total donations = Rs.1,00,000 vs Rs.50,000) - the donation equals Rs.50,000 which is below Rs.1,00,000, so it is excluded from specified income. Not stated in the document: treatment beyond this illustration (e.g., reporting procedure).
      • Example 2: An organisation applies a portion of its income for the benefit of a related person; that portion will be taxable in the tax year in which the application is made, "computed in the manner, as prescribed." Not stated in the document: who is a "related person" or the computation formula.
      • Example 3: An Assessing Officer determines additional income u/s 344 in excess of books for a business undertaking run by the organisation; such income is taxable in the tax year to which that income relates. Not stated in the document: standards of assessment or appeals procedure.

      Interplay

      The clause cross-references other provisions (sections 338(a), 340, 341(1)-(4), 342(1), 344, and 350), indicating reliance on these sections for specifying conduct that will convert otherwise exempt income into taxable specified income. The clause anticipates subordinate legislation by using "as prescribed" for computation. Not stated in the document: text of the referenced sections or the specific rules that will prescribe computations or definitions.

      Differences Between Document 1 (Section 337, Income-tax Act, 2025) and Document 2 (Clause 337, Income Tax Bill, 2025 (Old Version))

      Summary of textual differences and practical impact:

      • Broader exclusion for religious organisations (anonymous donations): Document 1 excludes anonymous donations for organisations "created or established,- (i) wholly for religious purposes, or (ii) wholly for charitable and religious purposes (excluding anonymous donation made with a specific direction that such donation is for any university or other educational institution or any hospital; or other medical institution run by such registered non-profit organisation)." Document 2 excludes only organisations "created or established wholly for religious purposes."
        • Practical impact: Document 1 provides a narrower exception (it adds a carve-out for organisations "wholly for charitable and religious purposes" but then expressly excludes certain directed donations for educational and medical institutions). This may reduce the number of anonymous donations treated as non-specified income for organisations running both charitable and religious activities, especially where donations are directed to educational or medical institutions.
      • Quantitative phrasing and punctuation differences (anonymous donation threshold): Both versions retain the threshold "up to Rs.1,00,000 or 5%," but Document 1 adds "or 5% of the total donations received by it during the tax year, whichever is higher," while Document 2 uses "or 5% of the such donations received by it during the tax year, whichever is higher."
        • Practical impact: Substantively the threshold appears the same; Document 1's phrasing is slightly clearer by specifying "total donations." No material change to tax effect is apparent.
      • Wording changes re: investments/deposits: Document 1 (items 4 and related) refers to "Any investment or deposit made in contravention to the provisions of section 350," whereas Document 2 refers to "Any investment made in contravention to the provisions of section 350."
        • Practical impact: Document 1 explicitly captures both investments and deposits; Document 2 captures only investments. This broadens the reach in Document 1 to include deposits that may have been omitted previously.
      • Additional items in Document 1 (more entries in the table): Document 1 includes several items absent from Document 2: numbered items 12 and 13 (fair market value of non-specified asset held beyond one year; any deemed application u/s 341(5) not actually applied within the period specified in section 341(6)). Document 2's table ends at item 11.
        • Practical impact: Document 1 expands the list of specified income events, creating additional contingencies where income will be taxed (e.g., failure to hold assets in specified forms/modes, failure to actually apply deemed application amounts abroad/time limits). This increases compliance exposures for registered non-profit organisations.
      • Variation in language for accumulated income utilisation (item 8): Document 1 describes "if it is not applied as per the provisions of section 341(1) to (4) for which it is accumulated or set apart within the period for which it was accumulated or set apart as specified in section 342(1)." Document 2 uses "if it is not utilised for the purpose, for which it is accumulated or set apart within the period for which it was accumulated or set apart as specified in section 342(1)."
        • Practical impact: Document 1 ties the failure to application specifically to sections 341(1)-(4), which may be a clarifying reference to specified modes of application; Document 2 uses broader language "utilised for the purpose." The change narrows the trigger in Document 1 to non-compliance with the procedural application provisions.
      • Formatting and minor drafting clarifications: Document 1 contains more detailed cross-references and slightly different punctuation/wording across multiple clauses (e.g., "computed in the manner, as may be prescribed" vs "computed in the manner, as prescribed").
        • Practical impact: Mainly drafting clarity; limited substantive effect beyond the changes noted above.

      Practical Implications

      • Compliance and risk areas: Registered non-profit organisations must monitor anonymous donations relative to the stated threshold and ascertain whether donations are directed or truly anonymous; they must also ensure that applications of income (domestic and foreign), investments/deposits, treatment of accumulated income, and use of corpus conform to the referenced sections to avoid specified income classification.
      • Record-keeping/evidence: The clause implies the necessity of records evidencing donor directions, use of funds, dates of application of income, details of investments/deposits (to show compliance with section 350), and documentary evidence supporting any inter-organisation credits or payments. Not stated in the document: exact documentary standards or retention periods.

      Key Takeaways

      • Clause 337 enumerates 11 categories of "specified income" for registered non-profit organisations and ties each to a specific tax year for taxation.
      • Anonymous donations are partly excluded up to Rs.1,00,000 or 5% of total donations, and donations to organisations "wholly for religious purposes" are exempt from being specified income under this clause.
      • Several operational failures (application to related persons, investments/deposits contrary to section 350, misuse of accumulated income, failure to meet corpus conditions) convert funds into taxable specified income.
      • The clause delegates computation of certain items ("as prescribed") and relies on other substantive provisions (sections 338, 340, 341, 342, 344, 350), but does not define key terms such as "related person" or set out procedural details.
      • Organisations face increased compliance obligations to track uses of funds, inter-organisational transfers, and investments/deposits to avoid taxation under these triggers.

      Full Text:

      Section 337 Specified income

      Topics

      ActsIncome Tax
      Next ➔