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
    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:

    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    NewsBills
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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
    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

      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters

      Comparison of section 384 "Procedure on receipt of application." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      13 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Section 384 Procedure on receipt of application

      Income-tax Act, 2025

      At a Glance

      Clause 384 of the Income Tax Bill, 2025 sets out the procedure to be followed by the Board for Advance Rulings (BAR) on receipt of an application for an advance ruling. It prescribes steps for forwarding the application, calling records, grounds for rejection, hearing rights, timelines for pronouncement, and transmission of orders. The provision affects applicants seeking advance rulings (taxpayers or their authorised representatives) and the income-tax administration (Principal Commissioner/Commissioner and the Board). Effective date or enactment timing: Not stated in the document.

      Background & Scope

      Statutory hooks: Clause 384 (Income Tax Bill, 2025) - Procedure on receipt of application; cross-references to sections 380 and 515(3)(a). The clause concerns the Board for Advance Rulings' processing of applications and its interaction with the Principal Commissioner or Commissioner. Definitions: "authorised representative" is defined by reference to section 515(3)(a) "as if the applicant were an assessee." No further definitional material or legislative history is provided in the text.

      Statutory Provision Mode

      Text & Scope

      Clause 384 (Old Version) prescribes the procedure on receipt of applications to the Board for Advance Rulings (the Board). The Board must forward a copy of the application to the Principal Commissioner or Commissioner and call for relevant records. After examining the application and the records, the Board may either allow or reject the application by order. The provision outlines circumstances under which an application shall be rejected, requires an opportunity of being heard before rejection, details transmission of orders and rulings, sets a six-month time-frame for pronouncing advance rulings once an application is allowed, and provides for a hearing on request. It also prescribes transmission and certification formalities for the advance ruling and defines "authorised representative" by reference to section 515(3)(a) as if the applicant were an assessee.

      Interpretation

      The text indicates a statutory scheme designed to: (i) ensure engagement between the Board and the field taxation functionary (Principal Commissioner/Commissioner) through mandatory transmission of the application and records; (ii) limit the Board's jurisdiction to matters not already under adjudication with other income-tax authorities/Appellate Tribunal/court, or matters involving valuation or apparent tax-avoidance designs, subject to specified exceptions; (iii) guarantee procedural fairness by mandating an opportunity to be heard and provision of reasons where the Board rejects an application; and (iv) require prompt disposition by mandating a six-month limit for issuing a ruling once the application is allowed. The reference to "as may be prescribed" in relation to certification points to delegated legislation for procedural particulars.

      Exceptions/Provisos

      Clause 384(3) identifies three grounds for mandatory rejection (subject to the enumerated exceptions):

      • (a) The question is already pending before any income-tax authority or Appellate Tribunal except in the case of a resident applicant falling in section 380(b)(iv) or any court.
      • (b) The question involves determination of fair market value of any property.
      • (c) The question relates to a transaction or issue which is designed prima facie for the avoidance of income-tax except in the case of a resident applicant falling in section 380(b)(iv) or in the case of an applicant falling in section 380(b)(v).

      Clause 384(4) prevents rejection without giving the applicant an opportunity to be heard and requires reasons for the rejection to be recorded in the order. Clause 384(6) imposes a six-month limit for pronouncing an advance ruling "after examining such further material" as may be placed or obtained. Clause 384(7) allows the Board, on request, to provide an opportunity of being heard in person or through a duly authorised representative. Clause 384(8) requires a signed and prescribed-certified copy of the ruling to be sent to the applicant and the Principal Commissioner/Commissioner.

      Illustrations

      • Example 1: An applicant files for an advance ruling on a transaction. The Board forwards the application to the Principal Commissioner, calls for records, and finds no pending proceedings on the question. The application is allowed; the Board requests additional documents, examines them and pronounces a ruling within six months, sending certified copies to the applicant and Principal Commissioner. (Consistent with text.)
      • Example 2: An applicant seeks a ruling on valuation of a property. The Board rejects the application on the ground that it "involves determination of fair market value of any property." Before issuing the rejection order, the Board offers an opportunity of being heard and records reasons for rejection in the order, which is then sent to the applicant and Principal Commissioner. (Consistent with text.)
      • Example 3: An applicant raises a question already pending before an income-tax authority. The Board may reject the application under Clause 384(3)(a), unless the applicant qualifies under the exception in section 380(b)(iv). (Consistent with text.)

      Interplay

      Clause 384 cross-refers to section 380(b) and to section 515(3)(a). The exact scope and effect of the exceptions hinge on the content of section 380(b) (sub-clauses iv and v in the Old Version) and the definition in section 515(3)(a). Clause 384 also contemplates delegated detail through "as may be prescribed" and "in the manner, as prescribed" for certification and formality, indicating subordinate rules or regulations will supplement procedural specifics. No other statutes, rules or circulars are identified in the text.

      Differences between the two provisions and practical impact

      • References to sub-clauses of section 380: The final Section 384 (Document 1) substitutes the cross-references in sub-sections (3)(a) and (3)(c) from the Bill's earlier references. Document 2 (Clause 384, Old Version) uses references to section 380(b)(iv) and 380(b)(v) in the exceptions; Document 1 (Section 384) instead refers to section 380(b)(iii) and 380(b)(iv) in corresponding places.
        • Practical impact: The change alters which categories of applicants (as defined in the various sub-clauses of section 380(b)) benefit from the exceptions to rejection. The practical effect depends entirely on the substantive content of the cross-referenced sub-clauses of section 380(b), which is not reproduced here. Therefore, any concrete statement about who gains or loses eligibility cannot be made from these texts alone. (Not stated in the document: the substantive identities of 380(b)(iii), (iv) and (v).)
      • Drafting and stylistic differences: Minor variations in drafting appear in the language of sub-section (4) (placement and slight rewording of "opportunity of being heard"), sub-section (7) (ordering of words "provide an opportunity of being heard to the applicant" vs "provide an opportunity to the applicant of being heard"), sub-section (8) (phrase "certified in such manner, as may be prescribed" vs "certified in the manner, as prescribed"), and sub-section (9) (opening phrase "For the purposes of this section" vs "In this section").
        • Practical impact: These are stylistic and do not, on their face, change substantive rights or procedures. They may, however, reflect finalisation of legislative drafting. No change to timelines, appellate pathways or duties of the Board are expressed by these wording variations.
      • Other substantive provisions: The core procedural framework-forwarding the application to Principal Commissioner or Commissioner, calling for records, power to allow or reject after examination, requirement of statement of reasons and hearing before rejection, six-month period for pronouncing the ruling, opportunity of hearing on request, transmission of the ruling to applicant and Principal Commissioner/Commissioner, and definition of "authorised representative"-remains in both texts.
        • Practical impact: The continuity of these substantive provisions indicates the Bill's older version and the final section share the same procedural mechanics; the only operative substantive divergence shown in the two texts arises from the altered cross-references to section 380(b).

      Practical Implications

      • Compliance and risk areas: Applicants must be vigilant about concurrent proceedings. If the question is pending before any income-tax authority or Appellate Tribunal (subject to specified exceptions), the Board must reject the application. Applicants should assess whether their category fits within the cited exceptions u/s 380(b) before filing. (Not stated in the document: the precise content of section 380(b)(iv)/(v) and how they apply to distinct applicants.)
      • Record-keeping/evidence points: The Board's power to call for "relevant records" and the ability to ask for "further material" implies applicants should maintain comprehensive documentary records and be prepared to submit them promptly. The requirement to forward the application to the Principal Commissioner/Commissioner and to send certified copies of orders/rulings to that officer underscores the need to preserve records that may be examined by routine assessing authorities.

      Key Takeaways

      • Clause 384 sets out the Board's procedural obligations on receipt of an application for advance ruling: transmission to the Principal Commissioner/Commissioner, calling for records, and power to allow or reject after examination.
      • Mandatory grounds for rejection include matters pending before income-tax authorities/Tribunal/court, fair market value determinations, and transactions that appear prima facie tax-avoidance, subject to specified exceptions linked to section 380(b).
      • Rejection cannot be issued without providing an opportunity of being heard and recording reasons in the order.
      • If allowed, the Board must pronounce the advance ruling in writing within six months of receipt of application, after considering further material if any.
      • Applicants may request a hearing in person or through an authorised representative; "authorised representative" is defined by reference to section 515(3)(a).
      • Certified, signed copies of orders and rulings must be sent to the applicant and to the Principal Commissioner/Commissioner; details of certification and procedural formality are left to prescription.
      • The Old Version's practical differences from the final section consist principally of altered cross-references to sub-clauses of section 380(b) and minor drafting variations; the substantive procedural architecture remains consistent.

      Full Text:

      Section 384 Procedure on receipt of application

      Topics

      ActsIncome Tax