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
╳
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
    NewsBill
    Surcharge on income-tax
    NewsBill
    Marginal Relief
    NewsBill
    Education Cess
    NewsBill
    Rates for deduction of income-tax at source during the financial year (FY) 2026-27 from certain inco...
    NewsBill
    Individual, HUF, association of persons, body of individuals, artificial juridical person.
    NewsBill
    Co-operative Societies
    NewsBill
    Firms
    NewsBill
    Local authorities
    NewsBill
    Companies
    NewsBill
    Rationalising the due date to credit employee contribution by the employer to claim such contributio...
    NewsBill
    Exemption on interest income under the Motor Vehicles Act, 1988.
    NewsBill
    No tax to be deducted at source in respect of interest on compensation amount awarded by Motor Accid...
    NewsBill
    Enabling electronic verification and issuance of certificate for deduction of income-tax at lower ra...
    NewsBill
    Relaxation from requirement to obtain tax deduction and collection account number (TAN) by a residen...
    NewsBill
    Enabling filing of declaration for no deduction to a depository
    NewsBill
    Application of TDS on supply of manpower
    NewsBill
    Allowing deduction to non-life insurance business when TDS, not deducted earlier is paid later
    NewsBill
    Exemption of income on compulsory acquisition of any land under the RFCTLARR Act.
    NewsBill
    Exemption for Disability Pension to armed force personnel
    NewsBill
    Rationalising due dates for filing of return of Income.
❮
❯
❯❯
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
    NewsBill
    Surcharge on income-tax
    Show AI Summary
    Surcharge on income-tax stays unchanged; specified fund income exempt and special-assessment persons face a 25% surcharge cap.
    Surcharge rates remain unchanged from the prior assessment year. Surcharge does not apply to income-tax computed on income of a specified fund as noted in the tax schedule. For persons assessed under the special assessment procedure, the higher surcharge tier on income above the high-income threshold (excluding dividend income and capital gains) is not applied and the surcharge is restricted to 25%.
    NewsBill
    Marginal Relief
    Show AI Summary
    Union Budget 2026-27: marginal relief applies where surcharge is imposed for affected taxpayers to mitigate additional tax burden.
    The Finance Bill for the Union Budget 2026-27 provides marginal relief in all cases where a surcharge is proposed to be imposed, as a mitigation mechanism to prevent disproportionate increases in tax liability when surcharge thresholds are crossed and to preserve intended tax progression.
    NewsBill
    Education Cess
    Show AI Summary
    Health and Education Cess to be levied at 4% on income-tax inclusive of surcharge; no marginal relief.
    Health and Education Cess is imposed at 4% on the amount of income-tax so computed, inclusive of any applicable surcharge, and no marginal relief is available; the cess is levied uniformly on the surcharge-inclusive tax liability.
    NewsBill
    Rates for deduction of income-tax at source during the financial year (FY) 2026-27 from certain inco...
    Show AI Summary
    Rates for tax deduction at source for FY 2026-27 remain unchanged; 4% health and education cess applies to nonresidents.
    Rates for deduction of income-tax at source from incomes other than salaries are specified in Part II of the First Schedule to the Finance Bill and are to be applied under the relevant sections of the Act. The rates and the Union surcharge remain the same as in the prior year, and a Health and Education Cess of 4% on income-tax including surcharge continues to apply to nonresidents and foreign companies.
    NewsBill
    Individual, HUF, association of persons, body of individuals, artificial juridical person.
    Show AI Summary
    Union Budget 2026 27 sets new income tax and advance tax rates for individuals, senior citizen thresholds, and graduated surcharge bands.
    Part III of the First Schedule sets FY 2026 27 tax deduction and advance tax rates: Section 202 rates use a seven bracket scale to 30% (above Rs. 24,00,000) with an option to adopt Part III rates. Paragraph A offers a four slab regime for individuals and similar entities with adjusted thresholds for senior citizens; capital gains under specified sections are included. Surcharge bands of 10%, 15%, 25% and 37% apply by income band, subject to caps and special restrictions for dividend/capital gains, associations of companies and persons taxed under section 202. Marginal relief is provided.
    NewsBill
    Co-operative Societies
    Show AI Summary
    Co-operative societies: existing tax rates unchanged; 7% and 12% surcharges apply with marginal relief; 22% option available.
    In respect of co-operative societies, income-tax rates remain unchanged from FY 2025-26. A 7% surcharge on income-tax applies where total income exceeds one crore but does not exceed ten crore rupees, and a 12% surcharge applies where total income exceeds ten crore rupees; marginal relief is provided. A resident co-operative society that satisfies certain conditions may opt to pay tax at 22% under the Act, with a 10% surcharge on such tax.
    NewsBill
    Firms
    Show AI Summary
    Firms: tax rate unchanged; 12% surcharge applies above one crore rupees with a cap on excess liability.
    For FY 2026-27, firms are taxed at the Paragraph C rate in Part III of the First Schedule (unchanged from FY 2025-26) and face a 12% surcharge where total income exceeds one crore rupees; however, the aggregate tax plus surcharge on income above one crore is capped so it does not exceed the tax on one crore by more than the excess income amount.
    NewsBill
    Local authorities
    Show AI Summary
    Local authorities face a 12% surcharge on income-tax for total income exceeding one crore, subject to a cap.
    The rate of income-tax for every local authority is specified in Paragraph D of Part III and remains unchanged; a surcharge at the rate of 12% applies where total income exceeds one crore rupees, and the combined tax and surcharge on income above one crore is capped so it does not exceed the tax on one crore rupees by more than the excess amount.
    NewsBill
    Companies
    Show AI Summary
    Corporate tax rates updated for FY 2026-27, including surcharge tiers and health and education cess.
    Union Budget 2026-27 sets company income-tax rates and related surcharge and cess treatment for FY 2026-27: domestic companies pay 25% if turnover/gross receipts for tax year 2024-25 are four hundred crore and under the section 199 regime, otherwise 30%, with an option to opt for 22% under section 200 (10% surcharge on that tax). Non domestic companies are taxed at 35% on ordinary income. Surcharge tiers and marginal relief rules remain, and a 4% Health and Education Cess applies on tax inclusive of surcharge without marginal relief for the cess.
    NewsBill
    Rationalising the due date to credit employee contribution by the employer to claim such contributio...
    Show AI Summary
    Employer deduction for employee contributions will be tied to the return filing due date under section 263(1).
    The Finance Bill, 2026 amends section 29(1)(e) to provide that the due date for claiming a deduction for employee contributions credited by the employer shall be the due date of filing of return of income under section 263(1); the amendment takes effect from 1 April 2026 and applies to tax year 2026-27 and subsequent years.
    NewsBill
    Exemption on interest income under the Motor Vehicles Act, 1988.
    Show AI Summary
    Interest income under Motor Vehicles Act now exempt for individuals and legal heirs from FY 2026-27 onward.
    Interest payable as part of compensation under the Motor Vehicles Act, 1988 to an individual or the legal heir for death, permanent disability, or bodily injury is proposed to be exempt by addition to the Income-tax Act Schedule; the amendment is effective from 1 April 2026 and applies to the tax year commencing then and subsequent years.
    NewsBill
    No tax to be deducted at source in respect of interest on compensation amount awarded by Motor Accid...
    Show AI Summary
    Interest on compensation from Motor Accidents Claims Tribunal: no tax deducted at source for individuals, effective April 2026.
    The Finance Bill, 2026 proposes that no tax shall be deducted at source on interest paid on compensation awarded by the Motor Accidents Claims Tribunal to an individual, removing the prior conditional threshold and providing relief to accident victims. The amendment is effective from 1 April 2026 (Clause 72).
    NewsBill
    Enabling electronic verification and issuance of certificate for deduction of income-tax at lower ra...
    Show AI Summary
    Electronic TDS/TCS certificates: payees may file for lower or nil deduction; authority may issue or reject applications.
    Permits payees to file applications electronically for certificates for deduction of income-tax at lower or nil rates before the prescribed income-tax authority, which may issue the certificate subject to prescribed conditions or reject incomplete or non compliant applications, thereby easing compliance burdens for small taxpayers under Section 395.
    NewsBill
    Relaxation from requirement to obtain tax deduction and collection account number (TAN) by a residen...
    Show AI Summary
    TAN requirement relaxed for resident individuals and HUFs acquiring property from non-resident sellers, effective October 1, 2026.
    The Finance Bill, 2026 amends section 397(1)(c) to provide that resident individuals and Hindu undivided families are not required to obtain a tax deduction and collection account number (TAN) to deduct tax at source on any consideration for transfer of immovable property under section 393(2); the amendment takes effect from 1 October 2026.
    NewsBill
    Enabling filing of declaration for no deduction to a depository
    Show AI Summary
    Investors can file declarations for no TDS with depositories for listed securities and mutual fund units.
    Permits filing of a written declaration for no deduction at source with the depository for incomes under section 393(6) (dividend, interest from securities, income from mutual fund units); depository will forward the declaration to the payor. Eligibility is limited to investors holding securities or units in the depository where securities are listed on a registered Indian stock exchange. The time for payors to furnish received declarations to the prescribed income-tax authority is changed from monthly to quarterly. Effective 1 April 2027.
    NewsBill
    Application of TDS on supply of manpower
    Show AI Summary
    Supply of manpower: TDS to be treated as payment for work, applying contractor TDS rates.
    The Bill amends the definition of work to include supply of manpower so that payments for manpower are subject to the TDS rates applicable to payments for work (1% where payee is individual or HUF; 2% otherwise), resolving uncertainty between contractor/work TDS entries and fees for professional or technical services; the amendment is effective 1 April 2026.
    NewsBill
    Allowing deduction to non-life insurance business when TDS, not deducted earlier is paid later
    Show AI Summary
    Non-life insurance businesses: amendment allows deduction when previously unpaid TDS is later deducted and paid.
    The Bill proposes inserting a new sub paragraph in paragraph 4 of Schedule XIV so that amounts added back for non compliance with TDS timing under section 35(b)(i) and (ii) will be allowed as a deduction in the tax year in which the tax was actually deducted and paid; this aligns paragraph 4 with the existing paragraph 4(2) treatment for section 37 and takes effect from 1 April 2026 for tax year 2026-27 onward.
    NewsBill
    Exemption of income on compulsory acquisition of any land under the RFCTLARR Act.
    Show AI Summary
    Compensation for compulsory land acquisition under the RFCTLARR Act exempt from income tax from April 1, 2026.
    The Income tax Schedule is amended to exempt income from awards or agreements made on account of compulsory acquisition of land under the RFCTLARR Act (excluding those specifically excepted under that Act), codifying that such compensation is not taxable under the Income tax Act and resolving prior ambiguity.
    NewsBill
    Exemption for Disability Pension to armed force personnel
    Show AI Summary
    Disability pension exemption for armed forces and paramilitary personnel limited to those invalided out due to service-related disability.
    Exemption is limited to disability pension for Armed Forces members invalided out due to bodily disability attributable to or aggravated by service, covering both service and disability elements and excluding pensions paid on retirement; the same exemption is extended to paramilitary personnel and takes effect from 1 April 2026 for tax year 2026-27 onward.
    NewsBill
    Rationalising due dates for filing of return of Income.
    Show AI Summary
    Due dates for filing income tax returns extended for non-audit businesses, partners and certain trusts to ease compliance.
    Rationalisation of due date deadlines restructures filing timelines by class of taxpayer to provide additional time for business or professional assessees whose accounts do not require audit, partners (and specified spouses) and certain trusts. The amendment sets 30 November for one specified class, 31 October for audited entities, 31 August for non audit business cases and partners/spouses in non audit situations, and 31 July for all other assessees, while preserving 31 July for certain individual return forms; parallel explanatory amendments for trusts are enacted and the changes are given prospective effective dates in 2026.

    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 ➔