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 456 "Penalty for failure to furnish statement or information or document by an...
    Act Rules Income Tax
    Comparison of section 455 "Penalty for furnishing inaccurate statement of financial transaction or r...
    Act Rules Income Tax
    Comparison of section 452 "Penalty for failure to comply with provisions of section 187." between th...
    Act Rules Income Tax
    Comparison of section 451 "Penalty for failure to comply with provisions of section 186." between th...
    Act Rules Income Tax
    Comparison of section 443 "Penalty in respect of certain income." between the Income-Tax Act, 2025 (...
    Act Rules Income Tax
    Comparison of section 439 "Penalty for under-reporting and misreporting of income." between the Inco...
    Act Rules Income Tax
    Comparison of section 438 "Set off and withholding of refunds in certain cases." between the Income-...
    Act Rules Income Tax
    Comparison of section 437 "Interest on refunds." between the Income-Tax Act, 2025 (as passed) and th...
    Act Rules Income Tax
    Comparison of section 428 "Fee for default in furnishing return of income." between the Income-Tax A...
    Act Rules Income Tax
    Comparison of section 427 "Fee for default in furnishing statements." between the Income-Tax Act, 20...
    Act Rules Income Tax
    Comparison of section 425 "Interest for deferment of advance tax." between the Income-Tax Act, 2025 ...
    Act Rules Income Tax
    Comparison of section 424 "Interest for defaults in payment of advance tax." between the Income-Tax ...
    Act Rules Income Tax
    Comparison of section 423 "Interest for defaults in furnishing return of income." between the Income...
    Act Rules Income Tax
    Comparison of section 415 "Stay of proceedings in pursuance of certificate and amendment or cancella...
    Act Rules Income Tax
    Comparison of section 411 "When tax payable and when assessee deemed in default." between the Income...
    Act Rules Income Tax
    Comparison of section 406 "Payment of advance tax by assessee on his own accord." between the Income...
    Act Rules Income Tax
    Comparison of section 402 "Interpretation." between the Income-Tax Act, 2025 (as passed) and the Inc...
    Act Rules Income Tax
    Comparison of section 398 "Consequences of failure to deduct or pay or, collect or pay." between the...
    Act Rules Income Tax
    Comparison of section 397 "Compliance and reporting." between the Income-Tax Act, 2025 (as passed) a...
    Act Rules Income Tax
    Comparison of section 395 "Certificates." between the Income-Tax Act, 2025 (as passed) and the Incom...
❮
❯
❯❯
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
Penalty for non-furnishing by eligible investment funds may be imposed as a fixed sanction for late or missing reports.
The provision authorises the prescribed income tax authority to direct an eligible investment fund to pay a fixed penalty of five lakh rupees where the fund fails to furnish a required statement, information or document within the time prescribed under the referenced provision; the sanction is discretionary and the text contains no exceptions, mitigation procedures or notice stages in the extract provided.
Act Rules Income Tax
Show AI Summary
Penalty for inaccurate financial statements made mandatory; reporting institutions face per-account liability and recovery rights from account-holders.
Section 455 imposes a fixed penalty on persons required to furnish statements under section 508(1) for inaccurate information, failure to correct within the period under section 508(8), or non-compliance with due diligence under section 508(9). It also imposes an additional per-account liability on reporting financial institutions where inaccuracies arise from false or inaccurate information furnished by account-holders, and entitles institutions to recover or retain amounts paid from those account-holders. The provision cross-references section 508 and does not set out adjudicatory or appeal procedures.
Act Rules Income Tax
Show AI Summary
Penalty for failure to provide electronic payment facilities imposes strict daily liability and removes statutory exception to avoid sanction.
The provision imposes a continuing daily monetary penalty, to be levied by the Assessing Officer, for failure to provide facilities to accept payments through prescribed electronic modes; the Bill included a proviso allowing avoidance of the penalty on proof of good and sufficient reason, but the enacted text omits that proviso, leaving key definitions, evidentiary standards, and procedural modalities unspecified.
Act Rules Income Tax
Show AI Summary
Penalty for failure to comply: Assessing Officer may impose monetary penalty equal to sums received unless recipient proves good reasons.
Section 451 authorises the Assessing Officer to impose a penalty equal to the sum received by a person in contravention of the relevant statutory provision; the earlier Bill expressly allowed escape if the recipient proved "good and sufficient reasons," but the enacted text omits that proviso, leaving the ambit of any exception, standards for evaluation, and the character of assessing discretion unspecified.
Act Rules Income Tax
Show AI Summary
Penalty on undisclosed income: fixed levy on withholding-tax liability, with exemption for timely disclosure and payment.
A discretionary penalty applies where assessed income includes categories of unexplained or undisclosed receipts imported by reference to existing provisions; it is levied as a percentage of the tax payable under the withholding-tax provision, is additional to that tax, is not imposed if the income was included in the return and the withholding tax paid within the relevant year, and cannot be duplicated by another penalty for the same income. The enacted text omits an explicit cross-application of existing procedural penalty machinery, creating procedural uncertainty.
Act Rules Income Tax
Show AI Summary
Penalty for under-reporting: statutory regime imposing enhanced sanctions for deliberate misreporting and rules for computing tax on additions.
Clause 439 creates a penalty regime for under reporting and aggravated misreporting during tax proceedings by defining deemed under reporting events, prescribing formulae to compute under reported income (including interactions with deemed total income rules), allocating additions across years to prevent double counting, listing exceptions where penalties will not apply, enumerating aggravating misreporting acts that attract higher sanctions, and requiring that penalty be imposed by written order of the Competent Authority.
Act Rules Income Tax
Show AI Summary
Set-off of tax refunds: authorities may offset or temporarily withhold refunds subject to written intimation and procedural safeguards.
Section 438 authorises the Assessing Officer and senior Commissioners to set off refunds due against outstanding tax liabilities and to withhold refunds where assessment or reassessment proceedings are pending. Set off must follow written intimation to the taxpayer. Withholding a refund while proceedings are pending is limited in time and requires reasons recorded in writing plus prior approval of the Principal Commissioner or Commissioner.
Act Rules Income Tax
Show AI Summary
Interest on refunds: entitlement to monthly simple interest and additional annual interest where orders trigger refunds.
Interest on refunds is payable as simple interest at a monthly rate from specified starting dates determined by refund source (tax collected at source/advance tax/treatment as paid; tax paid under specified provisions; excess payments under demand notices), with an additional annual interest where refunds follow certain appellate or rectification orders. Periods attributable to the assessee/deductor are excluded; immaterial refunds below a threshold do not attract interest for defined categories; interest is adjusted if subsequent orders change the underlying amount and assessing officers may demand excess interest.
Act Rules Income Tax
Show AI Summary
Two-tier fee for late tax return filing: fixed higher fee for higher-income filers and capped fee for others.
A statutory two tier fee applies where a person required to furnish a return within the prescribed time fails to do so. Both enacted and bill texts impose a fixed higher fee for taxpayers above the income threshold and a lower fee capped for taxpayers at or below that threshold. The enacted drafting places the capped lower fee first, preserving discretion up to the cap for lower income filers; both texts operate without prejudice to other provisions of the Act and cross reference the filing time provision. Procedural and enforcement details are not stated.
Act Rules Income Tax
Show AI Summary
Daily fee for delayed tax statements requires prepayment before filing and is capped at the tax collectible amount.
A mandatory daily fee applies where a person fails to deliver a prescribed statement of tax deducted or collected at source within the time prescribed in a cross referenced subsection; the fee accrues each day until compliance, is capped so it does not exceed the amount of tax deductible or collectible for the period, and must be paid before delivering the delayed statement, without prejudice to other liabilities under the Act.
Act Rules Income Tax
Show AI Summary
Advance tax interest rules require instalment-specific payments; shortfalls attract staged interest and safe harbour thresholds for compliance relief.
Section 425 imposes interest where advance tax instalments fall short of prescribed percentages by due dates, tying liability to tax due on the returned income. It prescribes staged instalment percentages and graduated interest on interim versus final shortfalls, provides two early safe harbour minima that eliminate interest if met, treats certain classes (profits declared under specified entries) with a distinct simple interest rule for the final instalment, and exempts shortfalls from interest for specified late arising incomes if taxed by later instalments or by 31 March.
Act Rules Income Tax
Show AI Summary
Interest for defaults in payment of advance tax triggers monthly simple interest where advance payments fall short of assessed tax.
The provision charges simple interest where a taxpayer fails to pay advance tax or pays less than the safe harbour proportion of assessed tax, starting from 1 April following the tax year until determination of total income or completion of regular assessment. Interest is computed on assessed tax or the shortfall, with the assessed tax base reduced by specified items such as tax deducted/collected at source, reliefs and eligible tax credits; reassessment or recomputation increases or reduces interest accordingly and payments already made reduce liability.
Act Rules Income Tax
Show AI Summary
Interest for defaults in furnishing return may accrue from differing start dates, altering the interest period and liabilities.
Section 423 charges simple interest for defaults in furnishing returns by applying a formula based on a tax base "A" and a period "T", with a Table linking specific filing or non-filing scenarios to starting and ending events for the interest period, reductions of the tax base by a prescribed definition of "tax paid", and provisions for adjustment (notice of demand or refund) where post-assessment orders change the tax on which interest is calculated.
Act Rules Income Tax
Show AI Summary
Stay of recovery: mandatory pause during granted payment time and while appeal-linked reductions remain pending.
Section 415 requires the Tax Recovery Officer to grant time for payment and stay recovery during that period, and to stay recovery of any portion of a certificate corresponding to a reduced demand while related proceedings remain pending; where the order giving rise to the demand is modified and becomes final, the Officer must amend or cancel the certificate. The Act's enacted text links reductions specifically to modification of the order giving rise to the demand, narrowing the Bill's broader phrasing.
Act Rules Income Tax
Show AI Summary
Payment deadline for tax demands triggers monthly interest and potential acceleration on instalment default, while relief may be available.
Clause 411 makes amounts in a notice of demand payable ordinarily within thirty days of service, permits the AO with Joint Commissioner approval to shorten that period, and charges simple monthly interest from the day after the due date until payment. The AO may extend time or allow instalments on timely application, but any instalment default accelerates the whole outstanding amount. Commissioners may reduce or waive interest for genuine hardship or circumstances beyond control, subject to cooperation and procedural safeguards. Where foreign law prevents remittance, the non remittable portion must not be treated as in default.
Act Rules Income Tax
Show AI Summary
Advance tax obligation: taxpayers must self estimate income and pay instalments, with permitted adjustments to remaining payments.
Every person liable to pay advance tax must remit instalments based on the assessee's own estimate of current income (the specified sum) and the tax thereon, calculated by the prescribed method and paid at prescribed instalment percentages and due dates; taxpayers may increase or reduce amounts in remaining instalments to reflect revised estimates, and the clause itself defines specified sum but is silent on exceptions, enforcement, interest, penalties and procedural recordkeeping.
Act Rules Income Tax
Show AI Summary
Withholding definitions expanded to include both incorrect deduction and collection rates, increasing administrative scrutiny of statements.
Section 402 provides the definitional framework for deduction and collection at source, specifying who is a person responsible for paying, buyer, seller and other categories, and defining transactional terms including rent, immovable property and digital-economy roles. The Act expands the concept of an "incorrect claim apparent from any information in the statement" to cover both incorrect rates of deduction and incorrect rates of collection, thereby enabling identification of filing errors from statements alone. Turnover thresholds and carve-outs determine when withholding obligations arise; several definitions rely on cross-references to external provisions.
Act Rules Income Tax
Show AI Summary
Deemed assessee in default for non-deduction or non-collection of tax exposes deductors/collectors to interest and asset charge.
Failure to deduct, collect, or pay tax causes the person required to do so to be deemed an assessee in default, liable for interest on delayed deduction/collection and on delayed payment, and, where tax has been deducted or collected but not paid, the tax and interest form a statutory charge on all assets; a safe harbour exists if the recipient has filed a return, included the amount and paid tax and the deductor/collector produces the prescribed accountant's certificate, while penalty can be imposed only if the assessing officer is satisfied there were no good and sufficient reasons for the failure.
Act Rules Income Tax
Show AI Summary
TAN/PAN compliance tightens reporting and mandates higher withholding where PAN is not furnished, while shortening correction windows.
Clause 397 mandates TAN application and mandatory TAN quoting by deductors/collectors, requires payees/payers to furnish a PAN (with enacted text adding a "valid" PAN requirement), prescribes higher withholding/collection rates where PAN is not furnished subject to enumerated exceptions, requires timely deposit of deducted/collected tax and filing of prescribed statements, provides a correction statement mechanism with a time limit, sets special reporting duties for payments to non residents and small interest payments by banks/co operatives/public companies, and preserves collector liability for unpaid but collectible tax.
Act Rules Income Tax
Show AI Summary
Certificates for lower tax withholding enable AO-issued rates or nil deduction and proportionate nonresident withholding relief.
Clause creates an AO-issued certificate system permitting payees, buyers/licensees/lessees and payers to obtain prescribed-form certificates altering the rate (or, under the Act, rate or nil deduction) at which tax is deducted or collected; for non-salary payments to non-residents the payer may seek a proportionate determination of the taxable part; deductors/collectors must issue prescribed documentary certificates to deductees/collectees and the AO may cancel certificates after affording a reasonable opportunity, with detailed forms, validity and procedures left to rules.

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