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 of section 194LC of the Act to extend the period of concessional rate of withholding tax a...
    NewsBills
    Amendment of section 115BAB of the Act to include generation of electricity as manufacturing.
    NewsBills
    Modification in conditions for offshore funds’ exemption from “business connection”.
    NewsBills
    Extending time limit for sanctioning of loan for affordable housing for availing deduction under sec...
    NewsBills
    Extending time limit for approval of affordable housing project for availing deduction under section...
    NewsBills
    Rationalization of provisions of start-ups.
    NewsBills
    Exemption in respect of certain income of Indian Strategic Petroleum Reserves Limited.
    NewsBills
    Exemption in respect of certain income of wholly owned subsidiary of Abu Dhabi Investment Authority ...
    NewsBills
    Withdrawal of exemption on certain perquisites or allowances provided to Union Pubic Services Commis...
    NewsBills
    Modification of concessional tax schemes for domestic companies under section 115BAA and 115BAB
    NewsBills
    Incentives to Individual and HUF.
    NewsBills
    Incentives to resident co-operative societies.
    NewsBills
    Rates for deduction of income-tax at source from “Salaries”, computation of “advance tax” an...
    NewsBills
    Rates for deduction of income-tax at source during the financial year (FY) 2020-21 from certain inco...
    NewsBills
    Rates of income-tax in respect of income liable to tax for the assessment year 2020-21.
    Bribery Case - Court rejects CBI prayer for CBI Custody - sends all accused to JC
    Case LawsIncome Tax
    Reopening of assessment u/s 147 - Notice issues u/s 148 kept in abeyance since the issue of Deductio...
    Case LawsVAT / Sales Tax
    Time limit for compliance of mandatory "Pre-Deposit" for entertaining appeal by the appellate author...
    Case LawsIncome Tax
    Reopening of assessment - Substance over Form - Failure to disclose material fact - Duty of the AO t...
    Evasion of GST - Jurisdiction of inspect and search - Power to issue Seizure (prohibition) order - P...
❯❯
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
    Concessional TDS rates on specified foreign borrowings extended and a lower rate introduced for IFSC listed bonds.
    Amendment of section 194LC extends concessional withholding for interest paid to non residents on eligible foreign currency borrowings by a specified company or business trust, maintaining the concessional rate for approved loans, long term bonds and rupee denominated bonds within prescribed limits. It also establishes a lower withholding rate for interest on long term bonds and rupee denominated bonds issued from abroad that are listed solely on a recognised IFSC stock exchange, with the amendment operating from the commencement date specified in the Finance Bill.
    NewsBills
    Show AI Summary
    Concessional tax for new manufacturers: generation of electricity treated as manufacturing allowing concessional rate subject to eligibility conditions.
    The amendment clarifies that manufacturing or production for the concessional tax regime includes generation of electricity. Eligible new domestic manufacturing companies-set up on or after 1 October 2019 and commencing by 31 March 2023-that do not avail specified incentives or deductions may opt for the concessional tax provision. The change takes effect from 1 April 2020 and applies from the assessment year 2020-21 onward.
    NewsBills
    Show AI Summary
    Offshore fund exemption relaxed: manager contributions initially excluded and corpus timing harmonised to reduce discrimination.
    Amendments to section 9A relax two eligibility conditions for offshore funds' exemption from creating a business connection: contributions by the eligible fund manager during the first three years up to a capped amount will be excluded when calculating the aggregate participation of Indian residents, and funds established in the previous year must meet the monthly average corpus requirement within twelve months from the last day of the month of establishment or incorporation. The amendments take effect from 1 April 2020.
    NewsBills
    Show AI Summary
    Deduction under section 80EEA extended to include additional loans, broadening affordable housing tax relief eligibility.
    The proposal extends the sanctioning period for loans eligible for the interest deduction under section 80EEA for acquisition of affordable residential property, allowing additional loans to qualify subject to existing conditions, including the stamp duty threshold and cap on interest relief. The amendment takes effect from 1st April, 2021 and applies to the assessment year 2021 22 and thereafter.
    NewsBills
    Show AI Summary
    Extension of approval period for affordable housing projects expands eligibility for full business profit deduction under section 80-IBA.
    Extension of the approval deadline under section 80-IBA permits additional affordable housing projects to meet the statutory approval-timing condition for claiming a deduction equal to one hundred per cent of profits and gains from the business of developing and building such projects; the approval deadline is extended to 31st March, 2021 and the amendment takes effect from 1st April, 2021, applying to the assessment year 2021-22 and thereafter.
    NewsBills
    Show AI Summary
    Startup deduction expanded: three-year relief selectable within first ten years and turnover eligibility substantially increased.
    Amendment revises the start-up deduction so an eligible start-up may claim a three-consecutive-assessment-year deduction selectable within ten years from incorporation, and raises the turnover eligibility ceiling so the deduction applies where total business turnover does not exceed a substantially higher threshold in any previous year counted from incorporation; the change takes effect from the start of the next fiscal cycle and applies to subsequent assessment years.
    NewsBills
    Show AI Summary
    Exemption for strategic petroleum reserve income: income exempt if replenishment occurs within three-year period under government directions.
    Exemption is provided to ISPRL for income arising from arrangements for replenishment of crude oil stored in its Indian storage facilities when replenishment is carried out pursuant to directions of the Central Government, subject to the condition that the crude oil is replenished within three years from the end of the financial year in which it was first removed from storage; effective from 1 April 2020 for assessment year 2020-21 onward.
    NewsBills
    Show AI Summary
    Exemption for sovereign wealth fund investments: dividends, interest and long-term capital gains eligible if conditions satisfied.
    A new exemption applies to income in the nature of dividend, interest and long-term capital gains of a specified person arising from investments, debt or equity, in Indian companies or enterprises engaged in developing, operating or maintaining infrastructure facilities or other notified businesses, provided the investment is made on or before the prescribed cut-off and held for the minimum required period. "Specified person" includes a wholly owned ADIA subsidiary resident in the UAE and sovereign wealth funds satisfying defined ownership, regulatory, benefit, vesting, commercial activity and notification conditions.
    NewsBills
    Show AI Summary
    Withdrawal of income-tax exemption for specified perquisites to UPSC and Election Commissioners, bringing those benefits into taxable income.
    The Finance Bill removes income-tax exemption for specified allowances and perquisites previously granted to serving and retired UPSC Chairmen and members and to the Chief Election Commissioner and Election Commissioners. Exemptions being withdrawn include rent-free residence, conveyance and transport allowances, sumptuary allowance, leave travel concession, post-retirement secretarial and telephone allowances, medical facilities and related service condition benefits, with the change to apply prospectively from the stated fiscal implementation point and to the subsequent assessment year.
    NewsBills
    Show AI Summary
    Concessional tax option: domestic companies barred from Chapter VI-A deductions except limited exceptions, narrowing eligible incentives.
    Domestic companies electing the concessional tax regime are barred from claiming any Chapter VI-A deductions except two specified exceptions: the employee-related wage deduction and the intercorporate dividend relief provision. This amendment takes effect from 1 April 2020 and applies to the assessment year beginning thereafter and subsequent assessment years, narrowing the deductions and incentives available to companies that opt for the special tax rate.
    NewsBills
    Show AI Summary
    New concessional tax regime for individuals and HUFs allows optional slab taxation with strict deduction and withdrawal conditions.
    Insertion of section 115BAC allows individuals and HUFs to opt into a concessional tax regime from assessment year 2021-22 under specified slab rates, subject to conditions: limited permitted allowances, broad disallowance of exemptions and deductions (including many section 10 exemptions, chapter VI-A deductions, and certain depreciation and loss set-offs), prescribed treatment of depreciation and transitional written-down value adjustment, prescribed exercise and withdrawal mechanics, and consequential exclusion from AMT and AMT credit carry-forward provisions.
    NewsBills
    Show AI Summary
    Concessional tax option for resident co-operative societies permits a reduced corporate rate subject to strict disallowances.
    A new provision allows resident co-operative societies to opt for a concessional tax regime from the assessment year beginning 1 April 2021 where the society elects the option by the prescribed due date; the option is irrevocable and applies to subsequent years. Eligibility requires computing total income without specified deductions or incentives and without set-off of earlier losses or depreciation attributable to those disallowed items; such losses and depreciation are deemed given full effect and barred from future deduction, with prescribed written down value adjustments for unabsorbed depreciation. The regime attracts a 10 per cent surcharge and excludes applicability of Alternate Minimum Tax and related credit carryforward.
    NewsBills
    Show AI Summary
    Tax rate structure and withholding: optional new regimes affect salary TDS, advance tax and surcharge treatment.
    Part III of the First Schedule prescribes slab-based TDS rates on salaries, advance tax computation rules and surcharge bands with marginal relief for individuals, HUFs, co-operative societies, firms, local authorities and companies; it retains distinct corporate rates tied to turnover, applies a health and education cess, and creates elective alternate tax regimes including optional taxation under section 115BAC for individuals/HUFs and section 115BAD for resident co-operative societies, which affect rate computation and surcharge treatment.
    NewsBills
    Show AI Summary
    Tax Deduction at Source: rates remain as prior year; new sections added and section 194 rate amended.
    Tax deduction at source rates for non-salary incomes in FY 2020-21 remain as specified in the prior year schedule; section-specific deduction provisions persist. New sections 194K and 194O specify rates within those sections, and the rate under section 194 is revised to a rate stated in the Bill. Surcharge provisions apply to non-resident recipients by category and income bands, and Health and Education Cess continues to apply on income tax including surcharge.
    NewsBills
    Show AI Summary
    Surcharge tiers on income-tax established by taxpayer class and income bands; marginal relief and health and education cess apply.
    The Bill prescribes tax rates for assessment year 2020-21 and establishes a multi-tier surcharge regime differentiated by taxpayer class and income bands, with specific caps on surcharge for income taxed under certain provisions. Marginal relief is provided to temper surcharge effects at thresholds. A Health and Education Cess is levied at a fixed rate on income tax inclusive of surcharge, with no marginal relief available for the cess.
    News
    Show AI Summary
    Judicial custody applied where investigative agency failed to demonstrate necessity for police or CBI custodial interrogation.
    The magistrate refused the investigating agency's request for custodial interrogation, finding insufficient grounds for police/CBI custody and remanding the accused to judicial custody pending further production. The accused and co accused presented conflicting accounts-one alleging he had been investigating a larger fraud and that superiors failed to act-while defence counsel warned of administrative consequences arising from custody. The magistrate applied the requirement that custodial remand be justified by demonstrable investigative necessity rather than allegation alone.
    Case LawsIncome Tax
    Show AI Summary
    Reopening of assessment: Section 148 notices held in abeyance pending Supreme Court decision on Section 80P deduction entitlement.
    Reopening of assessment under Section 147 and notices under Section 148 to cooperative societies were stayed and kept in abeyance pending disposal of Special Leave Petitions concerning entitlement to deduction under Section 80P(2)(a)(i) read with Section 80P(4). The High Court ordered that if the Supreme Court allows the SLPs the notices will revive and reassessment may proceed, and if the Supreme Court rules for the assessees the impugned notices will be set aside.
    Case LawsVAT / Sales Tax
    Show AI Summary
    Pre-deposit requirement can be satisfied before the appeal is first taken up for consideration, permitting admission if paid.
    The pre-deposit obligation is an independent mandatory condition distinct from the limitation period for filing or condoning delay; it need not be discharged at filing but can be satisfied up to the moment the appellate authority first takes the appeal up for consideration for condonation or admission. If proof of payment of the specified tax dues is not produced by that first consideration, the appellate authority must reject the appeal as institutionally defective and has no power to extend time to deposit.
    Case LawsIncome Tax
    Show AI Summary
    Substance over form requires assessing officers to inquire beyond certified statutory forms before reopening assessments.
    Non-disclosure must be sufficiently material to show that, but for it, income would have escaped assessment; Assessing Officers must not rely mechanically on CA-certified statutory forms and must make independent enquiries, applying the substance over form principle when determining commencement of commercial production or eligibility for tax concessions.
    Case LawsGST
    Show AI Summary
    Search and seizure authorization: proper officer's reason to believe permits prohibition orders and provisional release via clause six.
    Section 67 empowers an authorised proper officer, not below Joint Commissioner, to search and seize goods or documents when he has reason to believe they are secreted; if seizure is impracticable, a prohibition on dealing with goods may be issued under Rule 139(4). "Secreted" includes items not kept in their normal place or likely to be kept out of the way, and the officer must have a reasoned belief before exercising search powers. Procedural accuracy in authorisation and forms is required, and clause (6) permits provisional release on bond, security or payment.

    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