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
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search
TEXT 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
    Incentives to National Pension System (NPS) subscribers for state government employees
    NewsBills
    Tax Incentives to International Financial Services Centre (IFSC)
    NewsBills
    Rationalization of provisions of the Act to promote the growth of co-operative societies
    NewsBills
    Extension of date of incorporation for eligible start up for exemption
    NewsBills
    Extension of the last date for commencement of manufacturing or production, under section 115BAB, fr...
    NewsBills
    Consequence for failure to deduct/collect or payment of tax – Computation of interest
    NewsBills
    Clarification regarding deduction on payment of interest only on actual payment
    NewsBills
    Clarification in respect of disallowance under section 14A in absence of any exempt income during an...
    NewsBills
    Amendments related to successor entity subsequent to business reorganization
    NewsBills
    Clarification regarding treatment of cess and surcharge
    NewsBills
    Amendment in section 245MA of the Act related to Dispute Resolution Committee
    NewsBills
    Litigation management when in an appeal by revenue an identical question of law is pending before ju...
    NewsBills
    Rates of income-tax in respect of income liable to tax for the assessment year 2021-22.
    NewsBills
    Rates for deduction of income-tax at source during the financial year (FY) 2021-22 from certain inco...
    NewsBills
    Rates for deduction of income-tax at source from “Salaries”, computation of “advance tax” an...
    NewsBills
    Tax Incentives Exemption for LTC Cash Scheme
    NewsBills
    Incentives for affordable rental housing
    NewsBills
    Tax incentives for units located in International Financial Services Centre (IFSC)
    NewsBills
    Issuance of zero coupon bond by infrastructure debt fund
    NewsBills
    Tax neutral conversion of Urban Cooperative Bank into Banking Company
❯❯
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
    NewsBills
    Show AI Summary
    NPS deduction limit for state government contributions increased, providing retrospective tax relief to state government employees.
    Amendment increases the statutory deduction under section 80CCD for State Government employer contributions to National Pension System accounts to align with the higher employer contribution threshold, effective retrospectively from April 1, 2020, and applicable to the relevant assessment year onward to prevent additional tax liability on contributions exceeding the prior lower limit.
    NewsBills
    Show AI Summary
    IFSC tax exemptions expanded to cover offshore derivatives, ship lease income and portfolio income managed via IFSC accounts.
    Amendments broaden tax exemptions and deductions for IFSC operations: extend section 10(4E) to non resident income from transfers of offshore derivatives with Offshore Banking Units; expand section 10(4F) to exempt royalty or interest on ship leases paid by qualifying IFSC units and define "ship"; insert section 10(4G) to exempt non resident income from portfolios managed by portfolio managers in IFSC Offshore Banking Unit accounts where income accrues outside India; include regulated Alternative Investment Funds in the section 56 specified funds explanation; and allow section 80LA deductions for transfers of ships leased by IFSC units, subject to commencement conditions.
    NewsBills
    Show AI Summary
    Alternate Minimum Tax parity: co operative societies' AMT rate aligned with companies, lowering their AMT burden from the prior higher rate.
    The Finance Bill proposes amending section 115JC(4) to reduce the alternate minimum tax rate applicable to co operative societies to the company rate and consequentially amending the definition of alternate minimum tax in clause (b) of section 115JF, effective from 1st April, 2023 for the assessment year 2023 24 onwards.
    NewsBills
    Show AI Summary
    Startup tax exemption: incorporation deadline extended to cover delayed incorporations, expanding eligibility for upcoming assessment years.
    Amendment extends the incorporation cutoff for claiming the full-profit deduction by eligible startups to accommodate COVID-related delays, while retaining existing qualifying conditions such as the turnover ceiling and requirement of certification from the Inter-Ministerial Board of Certification; the change takes effect from the commencement of the next fiscal period and applies to the specified assessment year and subsequent years.
    NewsBills
    Show AI Summary
    Concessional tax under section 115BAB extended to give new manufacturers extra time to commence production due to pandemic delays.
    Section 115BAB permits new domestic manufacturing companies to opt for a concessional tax rate if they forgo specified incentives and meet conditions, including commencement of manufacturing by a statutory cut-off. The proposal amends section 115BAB to extend the deadline for commencement of manufacturing or production by one year to relieve companies delayed by the COVID 19 pandemic; the amendment takes effect from 1 April 2022 and applies to the assessment year 2022-23 and subsequent years.
    NewsBills
    Show AI Summary
    Interest on TDS/TCS defaults to be payable as per Assessing Officer's order, clarifying computation and payment obligation.
    The measure amends the TDS and TCS interest provisions to provide that where the Assessing Officer makes an order for a default under the relevant sections, the interest shall be paid by the person in accordance with the order made by the Assessing Officer, clarifying computation and payment obligation for continuing defaults.
    NewsBills
    Show AI Summary
    Actual payment requirement: conversion of interest into debentures or deferred instruments will not qualify as payment under section 43B.
    The proposed amendment clarifies that conversion of interest payable to specified financial institutions, NBFCs, scheduled banks or co-operative banks into debentures or any other instrument deferring payment shall not be deemed to have been actually paid for purposes of claiming a deduction under Section 43B, thereby excluding constructive discharge by conversion from qualifying as payment.
    NewsBills
    Show AI Summary
    Disallowance under section 14A clarified: provisions apply even when exempt income has not accrued, barring related deductions.
    Clarification that disallowance under section 14A applies even where exempt income has not accrued, arisen or been received in the relevant previous year if expenditure was incurred in relation to such exempt income; insertion of an Explanation and a non obstante clause to ensure no deduction is allowed in relation to exempt income. Proposed amendment to section 37(1) adds an Explanation that expenditure which is an offence or prohibited by law includes offences under foreign law, benefits whose acceptance breaches governing rules of the recipient, and payments to compound offences.
    NewsBills
    Show AI Summary
    Successor liability protections validate predecessor assessments and allow modified returns and demand adjustments after reorganisation.
    The proposals validate assessments and proceedings conducted against a predecessor by deeming them made on the successor, allow entities undergoing reorganisation to file modified returns for the period between the reorganisation's effective date and the final order, and establish a mechanism to modify outstanding tax demands to give effect to directions of the competent authority in restructuring.
    NewsBills
    Show AI Summary
    Tax treatment of cess and surcharge: centrally imposed cesses as additional surcharges are non deductible under Section 40(a)(ii).
    The document addresses whether amounts called cess or surcharge are deductible under Section 40(a)(ii), which disallows sums paid on account of any rate or tax levied on business profits. It explains that centrally imposed cesses described in Finance Acts as additional surcharges function as part of income tax and therefore fall within the disallowance, contrasts that with state cesses which historically were treated as allowable, and states a retrospective explanatory amendment will clarify that "tax" includes any surcharge or cess by whatever name called for purposes of the provision.
    NewsBills
    Show AI Summary
    Dispute Resolution Committee decisions: Assessing Officer must give effect to DRC resolutions while preserving taxpayer choice of forum.
    The amendment enables the Assessing Officer to pass a final order giving effect to the Dispute Resolution Committee's resolution: after the DRC determines assessed income the AO must implement the DRC's directions, which may include initiation of penalty proceedings and issuance of a demand notice; a taxpayer may opt for the DRC instead of the alternate dispute resolution panel and the AO's final order shall conform to the DRC resolution.
    NewsBills
    Show AI Summary
    Deferment of Revenue Appeals on identical legal questions - procedure to postpone filing pending final decision with assessee consent.
    The proposed section 158AB allows a collegium of senior tax commissioners to advise non-filing of a revenue appeal where an identical question of law is pending in another case; the Commissioner must then direct the Assessing Officer to apply in prescribed form to defer filing of the appeal until the other case attains finality, provided the assessee accepts that the questions are identical, and may later direct an appeal if the final decision is not consistent with the relevant case.
    NewsBills
    Show AI Summary
    Individual tax regime option: simplified slab structure introduced affecting taxpayer choices and surcharge applicability and cess treatment.
    An optional individual tax regime and a separate optional cooperative society regime take effect for the assessment year 2021-22 on satisfaction of specified conditions, while Part I of the First Schedule preserves baseline rates for individuals by age categories, associations, firms, local authorities and companies (including a lower corporate rate for qualifying domestic companies). A graduated surcharge framework with marginal relief is specified across taxpayer classes, and a Health and Education Cess is levied on tax inclusive of surcharge with no marginal relief for the cess.
    NewsBills
    Show AI Summary
    Tax withholding for non-salary incomes: surcharge and cess adjustments affect non-resident and company payees during fiscal year period.
    Rates for deduction of income-tax at source on non-salary incomes for FY 2021-22 remain as specified in Part II of the First Schedule to the Finance Bill, 2021, unchanged from the prior year; applicable statutory sections continue to govern deduction. A graduated surcharge applies to TDS for specified non-resident recipients, companies and certain entities with caps for dividend and specially taxed income components, and a Health and Education Cess is levied on income tax including surcharge for non-residents and foreign companies.
    NewsBills
    Show AI Summary
    Income-tax withholding and advance tax rules clarified for salaries, with surcharge structure and universal cess applied on computed tax.
    Part III of the First Schedule prescribes rates for tax withholding from salaries, computation of advance tax and charging of tax in special assessments. It sets rate schedules for individuals (including senior categories) and other persons, specifies surcharge slabs with marginal relief, provides an optional alternative tax regime for eligible individuals and HUFs, and outlines separate rate and surcharge rules for co-operative societies, firms, local authorities and companies, with a universal health and education cess applied on tax inclusive of surcharge.
    NewsBills
    Show AI Summary
    LTC cash exemption allowed for prescribed consumer expenditures subject to GST, electronic payment and receipt conditions.
    A new proviso to clause (5) of section 10 will exempt cash allowances in lieu of LTC for the assessment year beginning 1 April 2021, subject to conditions: option for deemed LTC fare for the 2018-21 block; specified expenditure on goods or services taxed at an aggregate GST rate of twelve percent or more from GST-registered vendors during the specified period; payment via prescribed account-payee or electronic modes with tax invoice; an exemption cap per person limited to the lesser of a fixed ceiling or one-third of specified expenditure; and coordination with employer-provided amounts.
    NewsBills
    Show AI Summary
    Affordable rental housing deduction expanded to include government notified rental projects, and time limit for approvals extended.
    The deduction equal to one hundred percent of profits and gains from the qualifying housing business is extended to include rental housing projects notified by the Central Government that meet conditions in that notification, and the outer time limit for project approval determining eligibility is extended so that the same temporal cut-off applies to these affordable rental housing projects.
    NewsBills
    Show AI Summary
    Tax incentives for IFSC units expand exemptions and relaxed conditions for eligible funds, offshore banking investment divisions.
    Proposed amendments extend tax exemptions and relaxed conditions to units and fund managers located in an International Financial Services Centre by permitting modification of section 9A conditions, treating the investment division of an offshore banking unit as a specified fund for section 10 and section 115AD purposes (subject to Category III AIF registration and separate books), and by inserting exemptions for non-deliverable forward transfers, aircraft-lease royalties, and capital gains arising on relocation of funds where Original Fund, Relocation and Resultant Fund meet prescribed conditions; consequential amendments to sections 47, 49, 56, 79 and 80LA are provided.
    NewsBills
    Show AI Summary
    Zero coupon bond issuance by infrastructure debt funds permitted, triggering tax-rule amendments and retrospective withholding changes.
    Amendment to the definition of zero coupon bond extends eligible issuers to include notified infrastructure debt funds, enabling those funds to issue instruments with no payment or benefit before maturity; implementing amendments to Income-tax Rules (including Rules 2F and 8B) and an associated amendment to withholding provisions in section 194A are contemplated, with specified staged effective dates and Official Gazette notifications to operationalise the changes.
    NewsBills
    Show AI Summary
    Tax neutral conversion of cooperative banks preserves deduction apportionment and treats asset and share transfers as non-transfers.
    Conversion of primary co-operative (urban co-operative) banks into banking companies is brought within the business reorganisation provisions so that section 44DB's apportionment of deductions between predecessor and successor applies; transfers of capital assets and allotment of shares on conversion are not to be treated as transfers under section 47, effected by amendments to section 44DB and clauses (vica)/(vicb) of section 47, effective 1 April 2021.

    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 354 "Application for approval for purpose of section 133(1)(b)(ii)." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      12 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Section 354 Application for approval for purpose of section 133(1)(b)(ii).

      Income-tax Act, 2025

      At a Glance

      Clause 354 of the Income Tax Bill, 2025 - Old Version sets out the statutory scheme for applications by registered non-profit organisations or specified persons for approval u/s 133(1)(b)(ii) (approval relevant to receipt of donations). It matters to charitable organisations, donors and tax authorities because approval enables donor deduction treatment under the linked provision. The Bill sets eligibility conditions, timelines for application and orders, procedural safeguards and validity periods for approvals. Effective date or commencement is Not stated in the document.

      Background & Scope

      Statutory hook: Clause 354 is drafted for the purpose of obtaining approval for application of section 133(1)(b)(ii) (as referenced in the heading). The provision governs who may apply (a registered non-profit organisation or a person referred to in Schedule III (Table: Sl. No. 1)), the conditions for eligibility, procedural stages for the Principal Commissioner or Commissioner, timelines for applications and orders, and the period of validity of approvals. The text contains no defined terms other than references to "tax year," "registered non-profit organisation," and the referenced Schedule III; definitions of those terms are Not stated in the document. The Bill prescribes that forms, manner, statements, verifications, certificates to donors and correction statements shall be "prescribed" but the prescriptive instruments themselves are Not stated in the document.

      Statutory Provision Mode

      Text & Scope

      Coverage: Clause 354 permits a registered non-profit organisation or a person listed in Schedule III (Table: Sl. No. 1) to apply to the Principal Commissioner or Commissioner for approval for the purpose of section 133(1)(b)(ii). The authority for application, the form and manner are to be as prescribed. The clause sets out seven express conditions (clauses (a) to (g)) that the applicant must satisfy or comply with:

      • (a) the organisation's activities are not expressed to benefit any particular religious community or caste;
      • (b) it is established in India for a charitable purpose and "does not incur any expenditure of an amount being 5% or more of its total income during a tax year which is of a religious nature";
      • (c) no instrument or rules allow transfer of whole or part of assets for any purpose other than a charitable purpose;
      • (d) it maintains regular accounts of receipts and expenditure;
      • (e) it prepares and delivers a prescribed statement for prescribed periods, in prescribed form and verified manner, within prescribed time, to the prescribed income-tax authority or an authorised person;
      • (f) it delivers correction statements for rectification or updating of the statement required under (e), in prescribed form and verified manner;
      • (g) it furnishes a certificate to the donor specifying the donation amount within a prescribed period from date of receipt, containing requisite particulars in the prescribed manner.

      Timelines and validity: Sub-section (2) contains a five-row Table specifying application time limits, time for the Principal Commissioner or Commissioner to pass orders, and the validity period of approval, distinguishing cases where activities have commenced, where activities have not commenced, provisional approvals, and expiry/renewal situations. The Table prescribes: provisional approvals for new applicants (three tax years), approvals for applicants with commenced activities (five tax years), and specific application windows and order timelines (one month for the month-end case; six months from end of quarter in other cases).

      Interpretation

      Legislative intent indicated by the text: The structure indicates an intent to balance facilitation of charitable funding (by providing a route to obtain approval relevant for donor deduction) with safeguards to ensure charitable character and compliance with other laws. The enumerated conditions focus on: non-discrimination by religion/caste; confinement of assets to charitable purposes; limits on religious expenditure; maintenance and submission of accurate accounts and statements; and donor-level certification. The procedural timeframe table suggests an intent to provide predictability in administrative processing. The text does not contain an express legislative statement of purpose or policy rationale beyond these provisions.

      Exceptions/Provisos

      No separate provisos or exceptions beyond the specified conditions and the Table are included in Clause 354. There are no express carve-outs for particular categories of organisations, acute exigencies, or definitions of "religious nature" expenditure. Any exceptions or further qualifying language is Not stated in the document.

      Illustrations

      • Example 1: A registered non-profit which has not commenced activities applies during the tax year from which it seeks approval; the authority must pass an order within "One months from the end of the month in which application is made" and, if provisional approval is granted, the approval is valid for "Three tax years commencing from the tax year in which such application is made." (This example follows the Table text.)
      • Example 2: A registered non-profit whose activities have commenced applies at any time during the tax year from which approval is sought; the authority has six months from the end of the quarter in which application is made to pass an order; if approved the validity is five tax years commencing from that tax year. (Derived directly from the Table.)
      • Example 3: An organisation incurs religious-nature expenditure equal to 5% of total income in a tax year. Under clause (b) its status is affected because clause (b) provides it "does not incur any expenditure of an amount being 5% or more..."-therefore, an organisation with exactly 5% religious expenditure would be ineligible. (The document does not provide a worked example; this is a textual reading of clause (b).)

      Interplay

      The clause refers to section 133(1)(b)(ii) as the substantive hook for approval but does not reproduce that section or explain the precise consequence of approval under that section. The clause references compliance "of such requirements of any other law in force" but does not specify which laws or how conflicts are to be resolved. The clause requires prescribed forms, statements and donor certificates but the relevant Rules or Notifications prescribing them are Not stated in the document. Interaction with income-tax assessment procedures, charitable trust law, the applicable Schedules (Schedule III), or other regulatory regimes is not elaborated in the text.

      Differences between the two provisions and practical impact

      • Reference to Schedule: Document 1 (Section 354, Income-tax Act, 2025) refers to "Schedule VII (Table: Sl. No. 1)"; Document 2 (Clause 354, Income Tax Bill, 2025 - Old Version) refers to "Schedule III (Table: Sl. No. 1)".
        • Practical impact: This change alters which classes of persons fall within the eligibility reference. The precise practical effect depends on the contents of the respective Schedules; those listed in Schedule III will differ from those in Schedule VII, so an entity's eligibility to apply may be expanded or narrowed depending on which Schedule applies. The document does not state the contents of either Schedule.
      • Religious-expenditure threshold wording: Document 1 states the applicant "does not incur any expenditure of an amount exceeding 5% of its total income during a tax year which is of a religious nature." Document 2 states the applicant "does not incur any expenditure of an amount being 5% or more of its total income during a tax year which is of a religious nature."
        • Practical impact: The two phrasings create different inclusive/exclusive thresholds. Document 1 prohibits expenditure that exceeds 5% (i.e., expenditure >5% is prohibited; expenditure equal to 5% appears permissible). Document 2 prohibits expenditure that is "5% or more" (i.e., expenditure >=5% is prohibited). This is a material drafting difference: under Document 2 an organisation whose religious-nature expenditure equals exactly 5% of total income would be ineligible; under Document 1 that organisation would appear eligible. The documents do not provide further clarifying definitions or examples.
      • Minor drafting differences in procedural wording: The order and phrasing in sub-section (3) differ slightly. Document 2 frames the inquiries as being "in order to satisfy himself as to the compliance of such requirements of any other law in force, as are material for the purpose of achieving its objects, and the genuineness of activities," with an explicit conjunctive linking; Document 1 lists genuineness and compliance first then continues.
        • Practical impact: These are drafting variations that change emphasis but, on their face, not the substantive standard-the authority must be satisfied as to genuineness and compliance. Absent further context or definitions, the operational test remains similar. The document does not state any interpretive guidance about how these differences should be resolved.
      • Other variations: Minor differences (for example "as prescribed" versus "as may be prescribed") are present.
        • Practical impact: These appear stylistic and do not, by themselves in the provided text, change substantive rights or obligations. The document does not state any consequential administrative guidance.

      Practical Implications

      • Eligibility screening: Applicants must ensure they satisfy the seven listed conditions. In particular, the religious-expenditure metric ("5% or more") is a hard threshold in the text and can render otherwise qualifying organisations ineligible if religious spending equals or exceeds that proportion. Organisations should carefully compute and document the nature of expenditures to demonstrate compliance with clause (b). The document does not provide a methodology for such calculation.
      • Record-keeping and reporting: Clauses (d), (e) and (f) require maintenance of regular accounts and submission (and correction) of prescribed statements. This creates clear record-keeping obligations; the precise contents, form, timing and verification procedures are to be prescribed and are Not stated in the document. The requirement to furnish donor certificates (clause (g)) imposes an administrative obligation on the recipient organisation.
      • Timelines for administrative action: The Table sets finite time windows for applicants to file and for the Principal Commissioner/Commissioner to decide; applicants should plan filings to avoid missed windows, especially on expiry/renewal scenarios where advance filings (at least six months) are mandated.
      • Risk of rejection/cancellation: Sub-section (3) allows the authority to call for documents and make inquiries; if not satisfied, it may reject an application (and in some cases cancel approval). The clause provides procedural fairness by requiring a reasonable opportunity of being heard before rejection, but the operational scope of inquiries and what constitutes satisfaction is Not stated in the document.

      Key Takeaways

      • Clause 354 provides a statutory route for registered non-profits or specified persons to obtain approval relevant to donations u/s 133(1)(b)(ii).
      • Seven express eligibility and compliance conditions cover non-discrimination, charitable purpose, restrictions on asset transfer, accounts, prescribed statements, correction mechanisms and donor certificates.
      • The provision sets distinct application windows, decision timeframes and validity periods (three or five tax years, depending on circumstances) in a five-row Table.
      • Clause (b) contains a strict threshold on "religious-nature" expenditure-"5% or more" of total income-which can render organisations ineligible even if expenditure equals exactly 5%.
      • The Principal Commissioner/Commissioner has inquiry powers and may approve, reject or (where applicable) cancel approvals, but must afford a reasonable opportunity of being heard before rejection.
      • Many operational details (definitions, prescribed forms, calculation rules, content of Schedules, and applicable other laws) are left to prescription or are Not stated in the document.

      Full Text:

      Section 354 Application for approval for purpose of section 133(1)(b)(ii).

      Topics

      ActsIncome Tax