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
    AMENDMENTS IN THE CUSTOMS ACT, 1962
    NewsBills
    EXPLANATORY MEMORANDUM TO THE FINANCE BILL, 2022
    NewsBills
    Promoting Voluntary Tax Compliance and Reducing Litigation
    NewsBills
    Definition of the term “slump sale”:
    NewsBills
    Reduction of Goodwill from block of assets to be considered as ‘transfer’
    NewsBills
    Income-tax authorities for the purposes of section 133A of the Act
    NewsBills
    Amendment in the provisions of section 119 of Income-tax Act
    NewsBills
    Amendment in the provisions of section 263 of the Act
    NewsBills
    Amendment to sub-section (1A) of section 35
    NewsBills
    Consequential Amendments
    NewsBills
    Clarifying that application will be allowed only when its actually paid
    NewsBills
    Voluntary Contributions for the renovation and repair of temples, mosques, gurudwaras, churches etc ...
    NewsBills
    Taxation of certain income of the trusts or institutions under both the regimes at special rate
    NewsBills
    Providing clarity on taxation in certain circumstances
    NewsBills
    The provisions of section 115TD to apply to any trust or institution under the first regime.
    NewsBills
    Bringing consistency in the provisions relating to payment to specified person
    NewsBills
    Bringing consistency in the provisions of two exemption the regimes
    NewsBills
    Reference to the Principal Commissioner or Commissioner (PCIT/CIT) for the cancellation of registrat...
    NewsBills
    Penalty for passing on unreasonable benefits to trustee or specified persons
    NewsBills
    Amendment in the provisions of section 179 of the Act
❯❯
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
    Assignment of functions to customs officers affirmed, with limits, concurrent powers, revised advance ruling rules, and data protection.
    The Finance Bill expressly authorises the Board or the Principal Commissioner/Commissioner to assign functions to officers as proper officers, to impose conditions or limitations (including by territory or goods), and to allow concurrent exercise of powers. Section 3 includes DRI, Audit and Preventive formations within customs officers. Amendments also enable rules imposing additional importer obligations to counter undervaluation, revise advance ruling fees, withdrawal and validity, confirm sole jurisdiction of the original officer for reassessment after inquiries, and criminalise unlawful publication of import/export declaration data.
    NewsBills
    Show AI Summary
    Customs duty definitions clarify types of cess and additional duties and state amendments take effect upon enactment.
    The memorandum defines principal customs charge types - Basic Customs Duty, Agriculture Infrastructure and Development Cess, Road and Infrastructure Cess, Health Cess, and Social Welfare Surcharge - links each to existing statutory provisions, notes clause numbers in square brackets refer to Bill clauses, and states amendments in the Finance Bill, 2022, take effect on the date of enactment unless otherwise specified.
    NewsBills
    Show AI Summary
    Updated return scheme: voluntary disclosure with staged additional tax and required proof of payment for compliance.
    A voluntary updated return regime is proposed by inserting section 139(8A) permitting any person to furnish a prescribed updated return within twenty four months from the end of the relevant assessment year, subject to exclusions where it reduces tax or where specified enforcement actions or proceedings exist. The updated return must be accompanied by proof of payment of tax, interest, fee and an additional tax computed as a staged percentage of tax and interest payable; computation rules, credit adjustments and interest calculations are detailed in newly proposed section 140B, and related consequential amendments are proposed.
    NewsBills
    Show AI Summary
    Slump sale definition amended to replace 'sales' with 'transfer', clarifying scope of transfers under tax law.
    The statutory definition of slump sale is amended to substitute the word "sales" with "transfer", clarifying that a slump sale means the transfer of one or more undertakings for a lump sum consideration without values being assigned to individual assets and liabilities, and the amendment is given retrospective effect to apply to the specified assessment year and subsequent assessment years.
    NewsBills
    Show AI Summary
    Goodwill treatment: reduction from block of assets deemed a transfer, triggering capital gains consequences and cost adjustment.
    Goodwill is not a depreciable asset and where purchased its purchase price remains the cost of acquisition for capital gains computation, after reducing any depreciation previously claimed; reduction of goodwill from the block of assets is deemed a transfer for capital gains purposes and the clarificatory amendment applies retrospectively to the relevant assessment year and subsequent years.
    NewsBills
    Show AI Summary
    Income-tax authority definition revised to limit qualifying officers to those specified by the Board, altering entry-and-verification scope.
    The proposed amendment restricts the definition of income-tax authority to officers who are subordinate to the Principal Director General or Director General or Principal Chief Commissioner or Chief Commissioner as specified by the Board, thereby limiting which subordinate officers may exercise entry and verification powers under the section; the amendment takes effect from 1 April, 2022.
    NewsBills
    Show AI Summary
    Relaxation of late filing fee enables administrative orders to relieve classes facing genuine hardship from mandated fee imposition.
    The amendment expressly adds the statutory late filing fee into the list of provisions for which the Board may, by general or special order, provide relaxation or relief for classes of incomes or cases; this enables the Board to issue orders to exempt or mitigate the fee for persons facing genuine hardships in filing returns on time.
    NewsBills
    Show AI Summary
    Revision powers under section 263 expand to permit review of Transfer Pricing Officer orders with mandated implementation timelines.
    Proposed amendments grant senior officers assigned transfer pricing jurisdiction power under section 263 to call for and examine TPO records and to revise TPO orders deemed erroneous and prejudicial to revenue. Section 153 is modified so subsections (3) and (5) apply to TPO orders, a new subsection (5A) obliges the Assessing Officer to modify assessments in conformity with a TPO order within two months of receipt, and related implementation provisions are extended to such orders.
    NewsBills
    Show AI Summary
    Deduction claimed by donor disallowed where donee fails to file statement of donations; amendment corrects drafting error.
    The amendment corrects sub section (1A) of section 35 to provide that the deduction claimed by the donor for donations to specified research associations, educational institutions or companies shall be disallowed unless the donee files the required statement of donations, aligning the rule with section 80G and taking effect retrospectively from April 1, 2021.
    NewsBills
    Show AI Summary
    Approval authority for trusts changed to Principal Commissioner or Commissioner, replacing prescribed authority references and procedural filing locus.
    Proposal to substitute references to the prescribed authority with Principal Commissioner or Commissioner in specified sub clauses and the nineteenth proviso of clause (23C) of section 10 to align textual references with the existing filing and approval regime for trust applications under the first regime; the amendment is corrective and consequential to prior 2020 changes.
    NewsBills
    Show AI Summary
    Application of income: amounts by trusts treated as applied only when actually paid, with an anti-duplication rule preventing later claims.
    Explanatory provisions treat sums payable by trusts as application of income in the previous year in which such sums are actually paid, irrespective of when the liability arose under the trust's regular accounting method; a proviso bars treating a sum as applied in a later previous year if it has already been claimed as applied in an earlier year. The amendments apply prospectively to the assessment years following the implementation date.
    NewsBills
    Show AI Summary
    Voluntary renovation contributions may be treated as corpus if kept separate, used only for the specified purpose and properly invested.
    Trusts or institutions may, at their option, treat voluntary contributions for renovation or repair of notified religious places as part of the corpus, subject to conditions: application only for the specified purpose, no onward donations, separate identification, and investment in forms and modes specified under subsection (5) of section 11; violation of any condition renders the sum deemed income of the year in which the breach occurs. Parallel explanatory provisions are proposed for clause (23C) of section 10. Amendments are proposed retrospective to 1 April 2021.
    NewsBills
    Show AI Summary
    Special-rate taxation of trust income under new provision: specified breach income taxed separately and no deductions allowed under the rule.
    Proposed amendments subject defined categories of trust or institution income to a special rate by treating only the part of income improperly applied, invested, accumulated or attributed as taxable specified income; disallow deductions or set-offs against such specified income; deem unutilised accumulated sums to be taxable in the last year of accumulation; and define specified income to include excessive accumulations, deemed income under accumulation rules, income rendered non-exempt for impermissible investments or benefit transfers, and income attributable to beneficiaries.
    NewsBills
    Show AI Summary
    Deductible trust expenditure allowed when exemption denied, subject to prescribed conditions and exclusive tax treatment.
    Proposed amendments allow deduction of revenue (non capital) expenditure for the objects of a trust or institution when exemption is denied for specified non compliances, subject to conditions: expenditure must not be from corpus as at the last day of the preceding financial year, not from any loan or borrowing, not involve depreciation for an asset whose acquisition was treated as application of income earlier, and not be a contribution or donation. Section 40 and 40A provisions apply mutatis mutandis to determine such expenditure, and no other deduction, allowance or set off shall be permitted for that expenditure.
    NewsBills
    Show AI Summary
    Exit tax on trusts extended to first regime entities, covering conversions, mergers and asset transfers under the amended provisions.
    The Finance Bill proposes to extend Chapter XII-EB's exit tax provisions to trusts and institutions under the first regime by making Sections 115TD, 115TE and 115TF applicable to them, thereby subjecting conversions to non charitable status, mergers with non charitable or dissimilar charitable entities, and failures to transfer assets to a levy on accreted income; the amendment is effective from the commencement of the specified fiscal year and applies to subsequent assessment years.
    NewsBills
    Show AI Summary
    Payment to specified person: income applied for their benefit deemed their income, anti benefit rules extended to first regime trusts.
    A proviso to clause (23C) of section 10 deems any income or property of a first regime trust applied for the benefit of a person in section 13(3) to be that person's income in the year of application; sections 13(2), (4) and (6) are made applicable to first regime trusts, aligning anti benefit and attribution rules across regimes.
    NewsBills
    Show AI Summary
    Accumulation provisions alignment: consistent tax treatment for accumulated charitable income with prescribed conditions and deemed income triggers.
    The measure harmonises accumulation rules between the two exemption regimes by requiring a prescribed statement to the Assessing Officer, investment or deposit of accumulated funds in specified modes, and timely filing; it provides that accumulated income meeting these conditions is excluded from total income but will be deemed income of the last previous year of the accumulation period if misapplied, ceases to be invested as required, is not utilised within the stated period, or is credited or paid to another exempt trust or institution.
    NewsBills
    Show AI Summary
    Cancellation of charitable registration: Principal Commissioner empowered to inquire and cancel approvals within a prescribed decision period.
    Amendments empower the Principal Commissioner or Commissioner to call for documents, inquire into and, after hearing, cancel or refuse to cancel registrations or approvals of trusts, institutions and similar entities on finding one or more specified violations (including misuse of income, non incidental business income without separate books, non genuine activities, preferential religious benefit, or final non compliance with other laws). Orders must be forwarded to the Assessing Officer and the entity, and a six month statutory deadline governs decision making from the quarter end in which the first notice is issued.
    NewsBills
    Show AI Summary
    Penalty for passing on unreasonable benefits: trusts face penalties equal to the benefit for first offences and greater penalties for repeat breaches.
    The proposal inserts section 271AAE to penalise trusts or institutions that apply income for the benefit of trustees or specified persons: the Assessing Officer may impose a penalty equal to the aggregate amount so applied where the violation is first detected in a previous year, and a higher penalty where the violation is detected again in a subsequent previous year; this penalty is in addition to any other penalties under Chapter XXI and the amendments take effect for the relevant assessment year following enactment.
    NewsBills
    Show AI Summary
    Liability of directors of private company clarified as joint responsibility for tax, fees, interest and penalties if company recovery fails.
    Amendment renames the section title to Liability of directors of private company to reflect that directors are jointly and severally liable where tax cannot be recovered from the company, clarifies that this liability is not conditional on liquidation, and expands the Explanation so that the expression "tax due" expressly includes fees alongside penalty, interest and other sums payable.

    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