Just a moment...

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 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
    Act RulesIncome Tax
    Comparison of section 443 "Penalty in respect of certain income." between the Income-Tax Act, 2025 (...
    Act RulesIncome Tax
    Comparison of section 439 "Penalty for under-reporting and misreporting of income." between the Inco...
    Act RulesIncome Tax
    Comparison of section 438 "Set off and withholding of refunds in certain cases." between the Income-...
    Act RulesIncome Tax
    Comparison of section 437 "Interest on refunds." between the Income-Tax Act, 2025 (as passed) and th...
    Act RulesIncome Tax
    Comparison of section 428 "Fee for default in furnishing return of income." between the Income-Tax A...
    Act RulesIncome Tax
    Comparison of section 427 "Fee for default in furnishing statements." between the Income-Tax Act, 20...
    Act RulesIncome Tax
    Comparison of section 425 "Interest for deferment of advance tax." between the Income-Tax Act, 2025 ...
    Act RulesIncome Tax
    Comparison of section 424 "Interest for defaults in payment of advance tax." between the Income-Tax ...
    Act RulesIncome Tax
    Comparison of section 423 "Interest for defaults in furnishing return of income." between the Income...
    Act RulesIncome Tax
    Comparison of section 415 "Stay of proceedings in pursuance of certificate and amendment or cancella...
    Act RulesIncome Tax
    Comparison of section 411 "When tax payable and when assessee deemed in default." between the Income...
    Act RulesIncome Tax
    Comparison of section 406 "Payment of advance tax by assessee on his own accord." between the Income...
    Act RulesIncome Tax
    Comparison of section 402 "Interpretation." between the Income-Tax Act, 2025 (as passed) and the Inc...
    Act RulesIncome Tax
    Comparison of section 398 "Consequences of failure to deduct or pay or, collect or pay." between the...
    Act RulesIncome Tax
    Comparison of section 397 "Compliance and reporting." between the Income-Tax Act, 2025 (as passed) a...
    Act RulesIncome Tax
    Comparison of section 395 "Certificates." between the Income-Tax Act, 2025 (as passed) and the Incom...
    Act RulesIncome Tax
    Comparison of section 394 "Collection of tax at source." between the Income-Tax Act, 2025 (as passed...
    Act RulesIncome Tax
    Comparison of section 393 "Tax to be deducted at source." between the Income-Tax Act, 2025 (as passe...
    Act RulesIncome Tax
    Comparison of section 392 "Salary and accumulated balance due to an employee." between the Income-Ta...
    Act RulesIncome Tax
    Comparison of section 390 "Deduction or collection at source and advance payment." between the Incom...
❯❯
MaximizeMaximizeMaximize
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 SummariesHide All Summaries
    Act RulesIncome Tax
    Show AI Summary
    Penalty on undisclosed income: fixed levy on withholding-tax liability, with exemption for timely disclosure and payment.
    A discretionary penalty applies where assessed income includes categories of unexplained or undisclosed receipts imported by reference to existing provisions; it is levied as a percentage of the tax payable under the withholding-tax provision, is additional to that tax, is not imposed if the income was included in the return and the withholding tax paid within the relevant year, and cannot be duplicated by another penalty for the same income. The enacted text omits an explicit cross-application of existing procedural penalty machinery, creating procedural uncertainty.
    Act RulesIncome Tax
    Show AI Summary
    Penalty for under-reporting: statutory regime imposing enhanced sanctions for deliberate misreporting and rules for computing tax on additions.
    Clause 439 creates a penalty regime for under reporting and aggravated misreporting during tax proceedings by defining deemed under reporting events, prescribing formulae to compute under reported income (including interactions with deemed total income rules), allocating additions across years to prevent double counting, listing exceptions where penalties will not apply, enumerating aggravating misreporting acts that attract higher sanctions, and requiring that penalty be imposed by written order of the Competent Authority.
    Act RulesIncome Tax
    Show AI Summary
    Set-off of tax refunds: authorities may offset or temporarily withhold refunds subject to written intimation and procedural safeguards.
    Section 438 authorises the Assessing Officer and senior Commissioners to set off refunds due against outstanding tax liabilities and to withhold refunds where assessment or reassessment proceedings are pending. Set off must follow written intimation to the taxpayer. Withholding a refund while proceedings are pending is limited in time and requires reasons recorded in writing plus prior approval of the Principal Commissioner or Commissioner.
    Act RulesIncome Tax
    Show AI Summary
    Interest on refunds: entitlement to monthly simple interest and additional annual interest where orders trigger refunds.
    Interest on refunds is payable as simple interest at a monthly rate from specified starting dates determined by refund source (tax collected at source/advance tax/treatment as paid; tax paid under specified provisions; excess payments under demand notices), with an additional annual interest where refunds follow certain appellate or rectification orders. Periods attributable to the assessee/deductor are excluded; immaterial refunds below a threshold do not attract interest for defined categories; interest is adjusted if subsequent orders change the underlying amount and assessing officers may demand excess interest.
    Act RulesIncome Tax
    Show AI Summary
    Two-tier fee for late tax return filing: fixed higher fee for higher-income filers and capped fee for others.
    A statutory two tier fee applies where a person required to furnish a return within the prescribed time fails to do so. Both enacted and bill texts impose a fixed higher fee for taxpayers above the income threshold and a lower fee capped for taxpayers at or below that threshold. The enacted drafting places the capped lower fee first, preserving discretion up to the cap for lower income filers; both texts operate without prejudice to other provisions of the Act and cross reference the filing time provision. Procedural and enforcement details are not stated.
    Act RulesIncome Tax
    Show AI Summary
    Daily fee for delayed tax statements requires prepayment before filing and is capped at the tax collectible amount.
    A mandatory daily fee applies where a person fails to deliver a prescribed statement of tax deducted or collected at source within the time prescribed in a cross referenced subsection; the fee accrues each day until compliance, is capped so it does not exceed the amount of tax deductible or collectible for the period, and must be paid before delivering the delayed statement, without prejudice to other liabilities under the Act.
    Act RulesIncome Tax
    Show AI Summary
    Advance tax interest rules require instalment-specific payments; shortfalls attract staged interest and safe harbour thresholds for compliance relief.
    Section 425 imposes interest where advance tax instalments fall short of prescribed percentages by due dates, tying liability to tax due on the returned income. It prescribes staged instalment percentages and graduated interest on interim versus final shortfalls, provides two early safe harbour minima that eliminate interest if met, treats certain classes (profits declared under specified entries) with a distinct simple interest rule for the final instalment, and exempts shortfalls from interest for specified late arising incomes if taxed by later instalments or by 31 March.
    Act RulesIncome Tax
    Show AI Summary
    Interest for defaults in payment of advance tax triggers monthly simple interest where advance payments fall short of assessed tax.
    The provision charges simple interest where a taxpayer fails to pay advance tax or pays less than the safe harbour proportion of assessed tax, starting from 1 April following the tax year until determination of total income or completion of regular assessment. Interest is computed on assessed tax or the shortfall, with the assessed tax base reduced by specified items such as tax deducted/collected at source, reliefs and eligible tax credits; reassessment or recomputation increases or reduces interest accordingly and payments already made reduce liability.
    Act RulesIncome Tax
    Show AI Summary
    Interest for defaults in furnishing return may accrue from differing start dates, altering the interest period and liabilities.
    Section 423 charges simple interest for defaults in furnishing returns by applying a formula based on a tax base "A" and a period "T", with a Table linking specific filing or non-filing scenarios to starting and ending events for the interest period, reductions of the tax base by a prescribed definition of "tax paid", and provisions for adjustment (notice of demand or refund) where post-assessment orders change the tax on which interest is calculated.
    Act RulesIncome Tax
    Show AI Summary
    Stay of recovery: mandatory pause during granted payment time and while appeal-linked reductions remain pending.
    Section 415 requires the Tax Recovery Officer to grant time for payment and stay recovery during that period, and to stay recovery of any portion of a certificate corresponding to a reduced demand while related proceedings remain pending; where the order giving rise to the demand is modified and becomes final, the Officer must amend or cancel the certificate. The Act's enacted text links reductions specifically to modification of the order giving rise to the demand, narrowing the Bill's broader phrasing.
    Act RulesIncome Tax
    Show AI Summary
    Payment deadline for tax demands triggers monthly interest and potential acceleration on instalment default, while relief may be available.
    Clause 411 makes amounts in a notice of demand payable ordinarily within thirty days of service, permits the AO with Joint Commissioner approval to shorten that period, and charges simple monthly interest from the day after the due date until payment. The AO may extend time or allow instalments on timely application, but any instalment default accelerates the whole outstanding amount. Commissioners may reduce or waive interest for genuine hardship or circumstances beyond control, subject to cooperation and procedural safeguards. Where foreign law prevents remittance, the non remittable portion must not be treated as in default.
    Act RulesIncome Tax
    Show AI Summary
    Advance tax obligation: taxpayers must self estimate income and pay instalments, with permitted adjustments to remaining payments.
    Every person liable to pay advance tax must remit instalments based on the assessee's own estimate of current income (the specified sum) and the tax thereon, calculated by the prescribed method and paid at prescribed instalment percentages and due dates; taxpayers may increase or reduce amounts in remaining instalments to reflect revised estimates, and the clause itself defines specified sum but is silent on exceptions, enforcement, interest, penalties and procedural recordkeeping.
    Act RulesIncome Tax
    Show AI Summary
    Withholding definitions expanded to include both incorrect deduction and collection rates, increasing administrative scrutiny of statements.
    Section 402 provides the definitional framework for deduction and collection at source, specifying who is a person responsible for paying, buyer, seller and other categories, and defining transactional terms including rent, immovable property and digital-economy roles. The Act expands the concept of an "incorrect claim apparent from any information in the statement" to cover both incorrect rates of deduction and incorrect rates of collection, thereby enabling identification of filing errors from statements alone. Turnover thresholds and carve-outs determine when withholding obligations arise; several definitions rely on cross-references to external provisions.
    Act RulesIncome Tax
    Show AI Summary
    Deemed assessee in default for non-deduction or non-collection of tax exposes deductors/collectors to interest and asset charge.
    Failure to deduct, collect, or pay tax causes the person required to do so to be deemed an assessee in default, liable for interest on delayed deduction/collection and on delayed payment, and, where tax has been deducted or collected but not paid, the tax and interest form a statutory charge on all assets; a safe harbour exists if the recipient has filed a return, included the amount and paid tax and the deductor/collector produces the prescribed accountant's certificate, while penalty can be imposed only if the assessing officer is satisfied there were no good and sufficient reasons for the failure.
    Act RulesIncome Tax
    Show AI Summary
    TAN/PAN compliance tightens reporting and mandates higher withholding where PAN is not furnished, while shortening correction windows.
    Clause 397 mandates TAN application and mandatory TAN quoting by deductors/collectors, requires payees/payers to furnish a PAN (with enacted text adding a "valid" PAN requirement), prescribes higher withholding/collection rates where PAN is not furnished subject to enumerated exceptions, requires timely deposit of deducted/collected tax and filing of prescribed statements, provides a correction statement mechanism with a time limit, sets special reporting duties for payments to non residents and small interest payments by banks/co operatives/public companies, and preserves collector liability for unpaid but collectible tax.
    Act RulesIncome Tax
    Show AI Summary
    Certificates for lower tax withholding enable AO-issued rates or nil deduction and proportionate nonresident withholding relief.
    Clause creates an AO-issued certificate system permitting payees, buyers/licensees/lessees and payers to obtain prescribed-form certificates altering the rate (or, under the Act, rate or nil deduction) at which tax is deducted or collected; for non-salary payments to non-residents the payer may seek a proportionate determination of the taxable part; deductors/collectors must issue prescribed documentary certificates to deductees/collectees and the AO may cancel certificates after affording a reasonable opportunity, with detailed forms, validity and procedures left to rules.
    Act RulesIncome Tax
    Show AI Summary
    Collection of tax at source: TCS on specified receipts with exemptions, non cumulation and documentation duties.
    Clause 394 prescribes TCS on nine specified receipt types with collectors (sellers, authorised dealers, licensors/lessors) required to collect at prescribed rates at the earlier of debiting the buyer's account or receipt. Indian resident buyers may avoid collection by furnishing a prescribed declaration of end use; the enacted law imposes a delivery timeline for that declaration and adds an exemption for certain education loan funded remittances. The provision includes non cumulation rules to prevent duplicate collection and leaves procedural specifics to subordinate rules.
    Act RulesIncome Tax
    Show AI Summary
    Tax withholding obligations expanded to cover e-commerce and virtual asset transfers, with precedence rules to prevent multiple deductions.
    Section 393 prescribes a comprehensive TDS matrix covering payments to residents, non-residents and any person, listing payment categories, the person liable to deduct, rates or rates-in-force and monetary thresholds. Deduction is required at credit or payment, whichever is earlier, with specific precedence rules (notably for e-commerce) to prevent multiple deductions. The section contains carve-outs and nil-deduction declaration mechanisms subject to conditions and reporting; operational guidance emphasises mapping payments to entries, retaining declarations and ensuring tax on mixed cash and in-kind transactions before release.
    Act RulesIncome Tax
    Show AI Summary
    Deduction of tax at source on salaries: payer obligation to withhold at average rate and trustees to withhold on accumulations.
    Section 392 places primary TDS obligation on payers of salary to deduct tax at the time of payment at the average rate on estimated annual income; employers may opt to pay tax on non monetary perquisites. Trustees of recognised provident and superannuation funds must deduct tax where Schedule XI applies, with a specified 10% withholding rule for certain employees' provident fund accumulations. The enacted text tightens prescribed form and verification requirements, alters a cross reference to section 17, and expressly permits eligible start ups to "deduct or pay, as the case may be."
    Act RulesIncome Tax
    Show AI Summary
    Withholding tax and advance payments operate independently of assessment, securing provisional tax credits and rule making authority.
    Deduction or collection at source, advance payment, and specified payments under section 392(2)(a) operate independently of later assessment and are additional to other recovery measures; amounts remitted to the Central Government are treated as tax paid on behalf of the person from whose income tax was deducted, from whom tax was collected, or in respect of whose income tax was paid, and the Board may make rules for crediting such amounts and for attributing the tax year for credit.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters

      Comparison of section 351 "Specified violation." 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 351 Specified violation.

      Income-tax Act, 2025

      At a Glance

      These texts set out Clause/Section 351 dealing with "specified violation" by a registered non-profit organisation under the Income Tax Bill, 2025 (old version) and the enacted Income-tax Act, 2025. They matter because they prescribe grounds and procedure for cancellation of registration of non-profit organisations and thus affect taxpayers (registered non-profit entities), tax administration (Principal Commissioner/Commissioner and Assessing Officers), and the broader charitable sector. Effective/commencement dates: Not stated in the document.

      Background & Scope

      Statutory hooks: Clause/Section 351 appears in Part IV (Violations) of the Income Tax Bill, 2025 / Income-tax Act, 2025. The provision addresses "specified violation" by a registered non-profit organisation and grants the Principal Commissioner or Commissioner power to inquire, call for documents, and pass orders including cancellation of registration. Definitions or extended explanations of terms used (e.g., "registered non-profit organisation", "objects", "commercial activity", or cross-referenced sections 332, 345, 346, 270(13)) are Not stated in the document.

      Statutory Provision Mode

      Text & Scope

      The provision enumerates specified violations by a registered non-profit organisation, namely:

      • application of income otherwise than for its objects;
      • carrying out commercial activity in contravention of section 345 or 346 (enacted) / section 345 (Bill);
      • application of any part of total income for private religious purposes which does ensure/enure for the benefit of the public;
      • post-commencement organisations for charitable purpose applying income for benefit of particular religious community or caste other than SCs/STs or backward classes or women and children;
      • activities that are not genuine or not carried out in accordance with registration conditions;
      • non-compliance with requirements of other law as referred u/s 332(7)(a) and where the order/direction/decree is either undisputed or final;
      • false or incorrect information in the application referred to in section 332(1).

      Procedure: Where the Principal Commissioner/Commissioner has noticed one or more specified violations, receives a reference from the Assessing Officer u/s 270(13), or the organisation is selected per Board-formulated risk strategy, the officer shall call for documents/inquiries, and then pass an order in writing either cancelling registration (after reasonable opportunity of being heard) for such tax year and subsequent years if satisfied violation occurred, or not cancelling if not so satisfied; copy to AO and organisation. Timeline: order to be passed within six months calculated from end of quarter in which first notice was issued calling for documents/inquiry.

      Interpretation

      Legislative intent indicated by text: the provision aims to create a statutory mechanism to protect the tax base by identifying specified breaches by non-profit organisations and providing a structured administrative route for cancellation of registration, incorporating procedural safeguards (opportunity of being heard, timelines). The text signals an intent to link tax-registration consequences to both internal misapplication of funds and external non-compliance with other laws.

      Exceptions/Provisos

      Carve-outs or conditions in the text include:

      • Cancellation is to be preceded by giving a reasonable opportunity of being heard.
      • Non-compliance under other laws is actionable only where the order/direction/decree "has either not been disputed, or has attained finality" (enacted text).
      • Specific temporal limitation on decision-making: order must be passed within six months from quarter-end of first notice.

      Illustrations

      • Example 1: A registered non-profit uses grants to pay director's personal expenses - this falls under clause (a) (application other than for objects) and can trigger inquiry and potential cancellation if established. (Facts consistent with text.)
      • Example 2: A post-commencement charitable organisation awards scholarships exclusively to a single non-protected religious community (not SC/ST/backward classes/women/children) - under clause (d) this could be a specified violation. (Facts consistent with text.)
      • Example 3: A registered non-profit running a business arm in contravention of section 346 (enacted) would fall under clause (b) and could be subject to cancellation proceedings. (Facts consistent with text.)

      Interplay

      The provision cross-refers to sections 345, 346, 332(7)/(7)(a), 332(1), and 270(13). Specific interaction with Rules, Notifications or Circulars is Not stated in the document. The provision situates administrative power with Principal Commissioner/Commissioner while involving Assessing Officer by reference and communication; how this aligns with broader registration/renewal procedures or appeal remedies is Not stated in the document.

      Differences between the two provisions and practical impact

      • Reference to section 345/346 (commercial activity): Old Bill (Document 2) lists contravention only of section 345; the enacted Section 351 (Document 1) lists contravention of the provisions of section 345 or 346.
        • Practical impact: expansion of trigger-more commercial-activity-related conduct (covered in section 346) can now constitute a specified violation, increasing exposure to cancellation for NGOs engaged in commercial activities that fall within section 346.
      • Wording on timing/temporal scope of cancellation: Old Bill states cancellation may be "for such tax year during which such specified violation took place and all subsequent tax years." Enacted Section omits the phrase "for such tax year during which such specified violation took place," instead providing cancellation "for such tax year and all subsequent tax years."
        • Practical impact: enacted text is arguably broader or at least less temporally precise; it appears to allow cancellation beginning with the relevant tax year (same as Bill) but the slight drafting change reduces explicit limitation language-practically similar but drafting difference could affect interpretation of retrospective/prospective reach if disputes arise.
      • Reference to compliance with other laws (section 332(7)): Old Bill refers to "requirements u/s 332(7)"; enacted Section refers to "requirements of any other law as referred u/s 332(7)(a) and the order, direction or decree... has either not been disputed, or has attained finality."
        • Practical impact: enacted provision clarifies that the non-compliance is with "any other law as referred u/s 332(7)(a)" (narrower/clarified cross-reference) and adds explicit textual emphasis that the order/direction/decree must either be undisputed or final. This makes the ground for cancellation contingent on a final/undisputed determination under those other laws.
      • Typographical/word choice correction: Enacted Section corrects "enure" to "ensure" (via corrigenda).
        • Practical impact: corrects potential ambiguity in clause (c) regarding private religious purposes "which does ensure for the benefit of the public" (document shows correction but intended meaning remains that such private religious application must not ensure public benefit). Substance unaffected except removal of typographical error.
      • Minor drafting/formatting differences: Enacted provision adds subparagraph labeling and slightly reorders phrasing (e.g., subsection (2)(a) temporal phrase "Where,--" vs Bill's "Where during any tax year,--").
        • Practical impact: no substantive change except possible differences in interpretive emphasis on temporal locus of detection; enacted text's condition list in (2) is substantively the same but more tightly cross-referenced in some places.

      Practical Implications

      • Compliance and risk areas grounded in the text: strict internal compliance with objects and permitted uses of income; careful structuring of any commercial activities to avoid contravention of sections 345/346; avoidance of private-religious-purpose applications that do not benefit the public; adherence to registration conditions; ensure accuracy of initial registration application (section 332(1)).
      • Record-keeping/evidence points suggested by the text: documentary evidence of application of income to objects, minutes/authorisations for activities, contracts and accounts for commercial activities, demonstration of public benefit for religious activities, evidence of compliance with other laws (and any orders/directions) and dispute status thereof, and documentation submitted in registration application-since false/incorrect application information is a specified violation.

      Key Takeaways

      • Clause/Section 351 lists seven discrete grounds that may constitute a "specified violation" leading to cancellation of registration of a registered non-profit organisation.
      • Enacted text expands commercial-activity trigger to include contravention of section 346 in addition to section 345, broadening potential exposure.
      • Cancellation can be ordered by Principal Commissioner/Commissioner after inquiry and hearing, and must be communicated to the Assessing Officer and organisation.
      • Non-compliance under other laws is actionable where the external order/direction/decree is undisputed or final, per enacted text.
      • Administrative timeline: order must be passed within six months from the quarter-end of the first notice calling for documents/inquiry.
      • Accuracy of registration application is critical-false or incorrect information is an explicit ground for specified violation.
      • Certain drafting differences between Bill and Act (e.g., reference to section 346 and clarified cross-reference to section 332(7)(a)) may have practical consequences for scope and enforcement.

      Full Text:

      Section 351 Specified violation.

      Topics

      ActsIncome Tax