Loading...

⚠ ✕
❮ 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 characters 0/2000
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 ✕
🔎 Filters / Advanced Search ❯
TEXT

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.
Relevance Default Date
    Act Rules Income Tax
    Comparison of Section 21 "Determination of annual value" between the Income-Tax Act, 2025 (as passed...
    Act Rules Income Tax
    Comparison of Section 19 "Deductions from salaries" between the Income-Tax Act, 2025 (as passed) and...
    Act Rules Income Tax
    Comparison of Section 17 "Perquisite" between the Income-Tax Act, 2025 (as passed) and the Income-Ta...
    Act Rules Income Tax
    Comparison of Section 11 "Incomes not included in total income" between the Income-Tax Act, 2025 (as...
    Act Rules Income Tax
    Comparison of Section 9 "Income deemed to accrue or arise in India" between the Income-Tax Act, 2025...
    Act Rules Income Tax
    Comparison of Section 8 "Income on receipt of capital asset or stock-in-trade by specified person" b...
    Act Rules Income Tax
    Comparison of Section 6 "Residence in India" between the Income-Tax Act, 2025 (as passed) and the In...
    Act Rules Income Tax
    Comparison of Section 5 "Scope of total income" between the Income-Tax Act, 2025 (as passed) and the...
    Act Rules Income Tax
    Comparison of Section 4 “BASIS OF CHARGE” between the Income‑Tax Act, 2025 (as passe...
    Act Rules Income Tax
    Comparison of Section 2(105) "Stamp duty value" between the Income‑Tax Act, 2025 (as pas...
    Act Rules Income Tax
    Comparison of Section 2(101) "short-term capital asset" between the Income‑Tax Act, 2025...
    Act Rules Income Tax
    Comparison of Section 2(29) "Company in which the public are substantially interested" between...
    Act Rules Income Tax
    Comparison of Section 2(28) "Company" between the Income-Tax Act, 2025 (as passed) and the Income-Ta...
    Act Rules Income Tax
    Comparison of Section 2(22) "Capital Assets" between the Income-Tax Act, 2025 (as passed) and the In...
    Case Laws Income Tax
    Remuneration and interest received by an individual partner from a partnership firm can be subjected...
    Case Laws Income Tax
    Judicial Recall and Tax Implications in Trust Settlements: Using AI-generated citations without prop...
    Case Laws Income Tax
    Corporate Mergers and Tax Assessment: Navigating Legal Entity Changes and rectification u/s 292B
    Case Laws Income Tax
    Reconciling Procedural Timelines with Limitation Periods in Income Tax Reassessments
    Case Laws Income Tax
    Condoning Delay in Filing Income Tax Return: A Case for Equitable Consideration
    Case Laws Income Tax
    Disallowance u/s 14A: Navigating the Interplay of Exempt Income and Expenditure
❮
❯
❯❯
Maximize Maximize Maximize
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 Summaries Hide All Summaries
Act Rules Income Tax
Show AI Summary
Determination of annual value: higher of expected or actual rent, with narrowed vacancy test and specific exemptions.
Annual value is the higher of expected rent or actual rent received/receivable where let; the enacted text narrows vacancy relief by requiring that vacancy-related reduction make actual rent lower than the notional expected rent before annual value is fixed at actual receipts. Local taxes actually paid reduce annual value, unrealised rent is excluded subject to rules, stock-in-trade newly completed and not let enjoys two years nil annual value upon completion certificate, and owner-occupation yields nil annual value for up to two specified houses unless let or other benefits are derived.
Act Rules Income Tax
Show AI Summary
Deductions from salaries: defined categories, formulaic computation and aggregation limits govern tax relief eligibility.
Section 19 itemises fourteen categories of salary related receipts that are deductible or exempt and prescribes formulas, ceilings and conditions for each. Relief for gratuity, leave encashment, pension commutation, retrenchment and voluntary retirement is computed by statutory formulas or by reference to notified limits and other enactments; an aggregation rule limits cumulative exemption where multiple receipts occur. The provision depends on cross references to other statutes and notifications, requiring classification, documentary evidence and tracing of prior exemptions to determine allowable deductions.
Act Rules Income Tax
Show AI Summary
Perquisite taxation: employer-provided benefits and securities treated as taxable salary components, with limited exclusions and prescribed valuation.
Section 17 defines perquisite for salary taxation by listing employer-provided benefits treated as perquisites-including accommodation, employer-paid obligations, securities and sweat equity allotted or transferred at concessional rates, employer-paid insurance premiums and excess retirement contributions-while excluding certain employer-funded medical treatment, approved insurance arrangements, commuting vehicle expenditure and conditional foreign medical/travel payments; valuation methods and thresholds are delegated to subordinate rules and cross-references link perquisite treatment to existing constructs for gross total income and approved fund schemes.
Act Rules Income Tax
Show AI Summary
Conditional exclusion from total income: schedule-based incomes and persons excluded if conditions met; otherwise included in tax base.
A conditional exclusion regime provides that incomes in Schedules II-VI and persons in Schedule VII are excluded from total income only if schedule conditions are satisfied; failure to satisfy conditions results in inclusion of such income in total income and taxation for the relevant tax year, and the Central Government is empowered to make rules or notifications to operationalise those schedules.
Act Rules Income Tax
Show AI Summary
Significant economic presence expands source taxation, bringing digital interactions and remote services within the domestic tax net.
Section 9 sets an expansive source taxation rule deeming income to accrue or arise domestically where linked to domestic assets, a business connection (including agents), transfers of capital assets situated domestically, salary earned or payable for services linked to domestic performance, dividends of domestic companies, interest subject to exceptions (including separate taxation of interest of an Indian permanent establishment of a foreign bank), and royalty and technical fees; it introduces significant economic presence tests for digital/user-based connections and leaves key thresholds and valuation mechanics to subordinate rules.
Act Rules Income Tax
Show AI Summary
Deemed transfer of distributed assets treated as taxable at entity level; fair market value sets consideration and guidelines now open-ended.
Section 8 treats receipt by a partner or member of capital assets or stock-in-trade from a non-company specified entity on dissolution or reconstitution as a deemed transfer by the entity, with profits or gains taxed at the entity level and the full value of consideration deemed to be the fair market value on the date of receipt; the Board may issue guidelines with prior Central Government approval and parliamentary laying, and the enacted text removes the Bill's two-year sunset on that guideline-making power.
Act Rules Income Tax
Show AI Summary
Residence in India: income-linked deeming now captures high-income returning citizens visiting short-term, and POEM defines company residence.
Section 6 prescribes residence tests combining day-count rules (182-day and 60/365 tests), categorical exceptions for ship crew and visiting citizens/PIOs, an income-linked modification that extends the shorter day-count threshold for higher-income returning citizens, a deeming rule capturing citizens not taxable elsewhere, company residence via Indian status or Place of Effective Management, and a deeming provision that applies residence across all income sources; As Passed drafting clarifies interplay between the visiting exception and income-based modification and contains minor typographical refinements.
Act Rules Income Tax
Show AI Summary
Scope of total income: residents taxed broadly with limited foreign income inclusion for not ordinarily resident persons.
Section 5 sets the scope of total income by applying receipt and accrual tests: residents are taxed on income received or deemed received in India, income accruing or arising or deemed to accrue or arise in India, and foreign income only in limited cases for a person who is not ordinarily resident (foreign income included when derived from a business controlled in India or a profession set up in India). Non residents are taxed on income received or deemed received in India and income accruing or arising or deemed to accrue or arise in India. The section also prevents balance sheet inclusion from constituting receipt and bars double inclusion on accrual and receipt bases.
Act Rules Income Tax
Show AI Summary
Charge of income-tax: linkage to central rates and application to total income, with withholding and advance payment obligations.
Section 4 links the charge of income-tax to rates enacted by a Central Act, charges income-tax on the total income of the tax year of every person (while allowing charging for other specified periods), includes any additional income-tax by whatever name, and requires deduction/collection at source and advance payment for income chargeable under the section.
Act Rules Income Tax
Show AI Summary
Stamp duty value treated as a notional benchmark for tax valuations, overriding conflicting valuation laws for tax purposes.
Section 2(105) defines stamp duty value as the value adopted, assessed or assessable by a Central or State authority for stamp duty on immovable property, where "assessable" is expressly a notional value the authority would have adopted if referred the matter, and that definition applies irrespective of anything to the contrary in any other law in force.
Act Rules Income Tax
Show AI Summary
Holding-period tiers determine capital gain classification with a shorter threshold for listed securities and specific fund units.
Definition of short-term capital asset establishes a two-tier holding-period regime for capital gains classification, retaining a general holding-period test and a shorter test for listed securities, units of the Unit Trust of India, units of equity-oriented funds and zero-coupon bonds; detailed rules determine inclusion, exclusion and commencement of holding periods on liquidation, corporate reorganisations, conversions, allotments, renunciations, free allotments and GDR redemptions, with certain technical matters deferred to prescribed rules.
Act Rules Income Tax
Show AI Summary
Definition of company in which the public are substantially interested: drafting variance may create conjunctive interpretation risk affecting tax classification.
Clause 2 supplies a comprehensive glossary for the Income-tax Act, 2025, defining terms such as company, capital asset, income and virtual digital asset, often with cross-references, provisos and delegated prescriptions; clause 2(29)'s categories for a company in which the public are substantially interested are materially consistent between Bill and Act, but the Bill's connector wording risked a conjunctive reading of alternative tests that the Act's later disjunctive phrasing rectifies, creating interpretive consequences for tax classification and related compliance.
Act Rules Income Tax
Show AI Summary
Definition of company clarified; temporal qualification in transitional limb may narrow which historic entities remain within tax scope.
Section 2 supplies statutory definitions that determine tax coverage. The definition of company comprises Indian companies, foreign bodies corporate, entities assessable as companies under the repealed Act, and Board declared entities. The Bill adds a temporal qualification limiting entities assessed under the prior Act to particular assessment years; the Act text omits this qualification. Scattered drafting and cross reference differences exist. Operational consequences hinge on threshold facts (shareholding, listing, assessment history, population/distance tests) and on unstated transitional provisions.
Act Rules Income Tax
Show AI Summary
Capital asset definition updated to include IFSC-regulated funds and broaden unit-linked policies, affecting capital gains treatment.
The Act retains an inclusive definition of capital asset with exceptions for stock-in-trade, specified personal effects and certain agricultural land, while refining the securities limb to expressly include securities held by FIIs and investment funds regulated under SEBI or IFSC regimes and removing a temporal issuance-date qualifier for unit-linked insurance policies, thereby broadening the category of policies treated as capital assets; numerous drafting and cross-reference clarifications aim to reduce interpretive uncertainty.
Case Laws Income Tax
Show AI Summary
Presumptive taxation: partner remuneration and interest cannot be treated as individual business turnover for presumptive tax purposes.
Section 44AD applies only where the assessee carries on an eligible business and has actual turnover or gross receipts attributable to that assessee. Remuneration and interest paid by a partnership firm to a partner arise from the firm's accounts and partnership agreement; although Section 28(v) taxes such receipts in the hands of the partner, that deeming does not convert them into the partner's turnover or gross receipts for Section 44AD. Section 40(b) governs firm deductibility but does not create an independent business activity in the partner; hence such receipts cannot be subjected to Section 44AD presumptive taxation.
Case Laws Income Tax
Show AI Summary
Trust settlement taxation: broadened construction of shares and securities may capture partnership interests, prompting citation verification.
The tribunal examined whether a trust permitting benefits beyond relatives falls within Section 56(2)(x), construed "shares and securities" to broaden taxable scope, and treated partnership interests as property under the provision. The earlier order was recalled after reliance on non-existent citations, highlighting the need for rigorous verification of precedents and research safeguards in trust taxation matters.
Case Laws Income Tax
Show AI Summary
Rectification of assessment orders cannot cure jurisdictional errors where orders name non-existent entities after mergers.
An assessment order issued in the name of a non-existent entity after a disclosed corporate amalgamation was held to be a fundamental, jurisdictional error not correctable under Section 154 or Section 292B; prior disclosure of the merger and absence of misleading conduct distinguished the case from precedents permitting clerical correction.
Case Laws Income Tax
Show AI Summary
Limitation periods: reassessment procedures must be completed within the overarching statutory period, else notices are time-barred.
The decision construes the interaction between procedural timelines for reassessment and the overarching limitation period, treating the mandatory pre-notice procedure requiring provision of material and an opportunity to respond as part of the reassessment process that must be completed within the ultimate limitation period; if the authority does not complete both the procedural order and issue the reassessment notice within the residual time remaining after statutory exclusions and extensions, the notice is time-barred.
Case Laws Income Tax
Show AI Summary
Condonation of delay: equitable consideration where bona fide technical failures and professional disruptions impede tax filing.
Condonation of short delays in filing income tax returns must be governed by principles of equity and fairness, with bona fide explanations such as portal technical failures and unforeseeable disruptions at a chartered accountant's premises meriting empathetic, case sensitive assessment rather than mechanical rejection. Where assessees rely on professional intermediaries, corroborative evidence of genuine operational impediments is a relevant consideration in exercising discretionary condonation to facilitate compliance objectives.
Case Laws Income Tax
Show AI Summary
Disallowance of expenditure related to exempt income: apportionment required and actual exempt income is a prerequisite.
Disallowance of expenditure relating to exempt income requires identification and apportionment of expenses attributable to non taxable receipts; only expenditure expended to earn taxable income may be claimed. Courts interpret "in relation to" expansively and reject reliance on the spender's dominant purpose. The existence of actual exempt income is necessary to invoke the disallowance rule, and post enactment explanatory amendments that alter prior law are not retrospective.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

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

Acts Income Tax