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
    Case LawsIncome Tax
    Navigating Legal Timelines: The Impact of Incomplete ITBA Orders on Appeal Limitations.
    Case LawsIncome Tax
    Navigating the Thin Line Between Charity and Commerce: Amendment of Trust Deed and Compliance with S...
    Case LawsIncome Tax
    Changing Objectives of Registered Societies: Exemption u/s 11 and survival of the Registration u/s 1...
    Case LawsIncome Tax
    Judicial Scrutiny of Residential Status and Jurisdictional Shift in Income Tax Cases
    Case LawsIncome Tax
    Scrutinizing the Genuineness of Gifts in Income Tax Law: Taxability of Gift u/s 68
    Case LawsIncome Tax
    Interpreting TDS Liability u/s 194-I against Lease Payments: A Legal Analysis of Security Deposit vs...
    Analyzing GST Implications on Free of Cost Supplies in Service Agreements: A Case Study
    Case LawsIncome Tax
    Evaluating Jurisdictional Validity in Taxation: The Significance of Draft Assessment Orders under Se...
    Case LawsIncome Tax
    Breaking Down the Supreme Court's Decision on Double Taxation Avoidance Agreements
    Case LawsIncome Tax
    Balancing Sovereignty and Law: India's Treaty-Making Powers and Domestic Enforcement
    Case LawsIncome Tax
    Navigating DTAAs: A Comparative Analysis of India, Netherlands, France, and Switzerland
    Case LawsIncome Tax
    The OECD Membership Puzzle: Interpreting 'Is' in Double Taxation Agreements
    Case LawsIncome Tax
    The Dual Life of Treaties: Understanding Their Enforcement in Indian Law
    Bail, Arrest, and Rights: A Close Look at Recent PMLA Judgment
    Case LawsCustoms
    Classifying Data Collection Devices in Import Regulations: The Kronos 4500 Touch ID Terminal Case
    The Power to Rectify versus Power to review of assessment order: Tax Assessments
    From Land Transactions to Money Laundering: A Legal Odyssey
    Case LawsIncome Tax
    Assessment Proceedings and Validity of Section 143(2) Notices: Jurisdictional Clarity and Monetary L...
    Case LawsIndian Laws
    Landmark Judgment on Admissibility of Electronic Evidence: A Legal Analysis
    Case LawsVAT / Sales Tax
    Eligibility of Input Tax Credit (ITC) for purchases made during the manufacturing process of goods: ...
❯❯
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
    Case LawsIncome Tax
    Show AI Summary
    Incomplete assessment communication can delay the start of the limitation period for appeals when essential contents are not disclosed.
    Incomplete ITBA order uploads do not void an assessment but may postpone the commencement of the limitation period for appeals because knowledge of decision requires understanding the essential contents; defective communication can justify extension of time even though the assessment's substantive validity remains unaffected.
    Case LawsIncome Tax
    Show AI Summary
    Charitable status preserved where incidental surplus, trustee payments, or deed amendments further educational objectives without private benefit.
    The Court analysed whether surplus generation, fee policies, deed amendments, and payments to trustees removed an educational trust's charitable purpose. It held that incidental surplus and deed changes furthering objectives do not automatically negate charitable character, and payments for genuine services do not necessarily amount to private benefit. Cancellation of registration requires proof of lack of genuineness or objective deviation; mere shortcomings or commercial elements aimed at sustainability are insufficient.
    Case LawsIncome Tax
    Show AI Summary
    Alteration of objects: failure to notify tax authority can jeopardise a society's registered status under section 12A.
    A material amendment of a registered society's objects, coupled with failure to intimate the Commissioner under rule 17B and Form No.10A, undermines the basis of registration under Section 12A; Section 12AA(3) addresses activities inconsistent with objects, whereas fundamental change in the objects themselves requires statutory intimation to preserve the original registration.
    Case LawsIncome Tax
    Show AI Summary
    Residential status determination can shift tax assessment jurisdiction when overseas activities do not qualify as employment.
    The Tribunal examined whether the appellant's overseas activities constituted employment for residential-status purposes, applying ejusdem generis and noscitur a sociis to conclude they did not. Consequently, the officer of international taxation's assumption of jurisdiction based on non resident status was improper once residential status was contested; the file should have been transferred to the territorially competent assessing officer or an authorised officer. An assessment conducted without such lawful jurisdiction was characterised as legally defective and without effect.
    Case LawsIncome Tax
    Show AI Summary
    Genuineness of gifts requires proof of donor identity and capacity, otherwise taxability follows under assessment rules.
    The High Court examined taxation of receipts treated as gifts, stressing that the assessee must prove the genuineness of gifts by establishing donor identity and the donors' capacity and creditworthiness; acceptance by lower authorities does not relieve the recipient of the burden of proof, and inadequate documentary corroboration justifies reassessment where donations are doubtful.
    Case LawsIncome Tax
    Show AI Summary
    Advance rent characterization alters TDS obligations under Section 194-I, requiring payers to deduct tax at source.
    Payments labelled as a security deposit that are contractually reduced and adjusted against periodic rent payments are treated as advance rent rather than refundable security, and thus constitute rent for TDS purposes, obliging the payer to deduct tax at source under the statutory withholding framework.
    Case LawsGST
    Show AI Summary
    Non-monetary consideration: free diesel treated as part of taxable value for GTA services under GST implications.
    Whether diesel supplied free of cost by a service recipient constitutes consideration for GST valuation of Goods Transport Agency services is examined, with the analysis concluding that non-monetary benefits provided by recipients may be added to the taxable value and that contractual allocation of free supplies does not displace the statutory valuation framework.
    Case LawsIncome Tax
    Show AI Summary
    Draft assessment procedure required under law: omission invalidates assessment proceedings and denies assessee DRP objection rights.
    Section 144C mandates a non-obstante, mandatory draft assessment procedure for eligible assessees, requiring issuance of a draft order, opportunity to file objections, and consideration by a three-member Dispute Resolution Panel. A foreign entity qualifying as an eligible assessee must be afforded this process; failure to issue the draft order is a substantive lapse that deprives the assessee of the DRP forum and engenders jurisdictional infirmity in any consequent final assessment, demand, or penalty. Revisionary powers do not obviate the Section 144C mandate.
    Case LawsIncome Tax
    Show AI Summary
    DTAA incorporation: notification requirement under domestic law limits automatic treaty application across countries and clarifies temporal scope.
    The decision holds that a DTAA requires a mandatory notification under Section 90(1) to be effective domestically, that provisions in a DTAA with one country do not automatically extend to other bilateral agreements without explicit amendment, and that the present-tense term "is" fixes the temporal application of treaty benefits to the date of treaty entry with India.
    Case LawsIncome Tax
    Show AI Summary
    Most favoured nation clause interpretation guides treaty effect, subject to domestic notification requirements for implementation.
    The Most Favoured Nation (MFN) clause in tax treaties must be interpreted under Article 31 VCLT principles as reflecting customary international law, with subsequent agreements and state practice serving as authentic means of interpretation. Domestic implementation procedures materially affect treaty operation: comparative practices of other states cannot substitute for India's requirement of formal domestic steps, including issuance of a notification after a treaty trigger event, to assimilate treaty amendments into national law.
    Case LawsIncome Tax
    Show AI Summary
    Treaty implementation procedures determine when DTAA modifications bind taxpayers, requiring domestic notification for enforceability.
    In India, DTAA modifications take effect only upon formal domestic notification, preventing automatic retroactive application of third country treaty changes and reflecting a dualist approach requiring assimilation of treaty amendments into domestic law before they bind taxpayers; by contrast, the Netherlands, France, and Switzerland rely on differing domestic mechanisms-executive decrees, parliamentary ratification, or referenda and implementing orders-that may permit retroactive application and integrate treaties into domestic enforceable law.
    Case LawsIncome Tax
    Show AI Summary
    Interpretation of "is" in tax treaties determines when OECD membership triggers treaty benefits under domestic implementation rules.
    Interpretation of the term "is" in DTAAs is context-dependent: although generally present in signification, its temporal application must be determined from the treaty text and purpose. Applied to OECD membership, the operative moment for eligibility to treaty benefits depends on when the DTAA relationship produces the relevant legal consequence, and this assessment must be reconciled with the domestic requirement for legislative action or notification for treaty enforceability.
    Case LawsIncome Tax
    Show AI Summary
    Treaty Enforcement: legislative enactment required for treaties to create domestic rights; executive negotiation alone is insufficient.
    Treaties do not function as self-executing domestic law; the Union may negotiate and ratify international agreements but legislative enactment is required to create or alter domestic rights and obligations. Under the dualist approach, executive negotiation and foreign measures cannot substitute for domestic incorporation; implementing statutes and notification mechanisms are necessary for tax treaties to be recognized and applied by revenue authorities. Courts may consult treaty texts to resolve ambiguities in domestic implementing laws but cannot themselves import treaty provisions into domestic law absent parliamentary enactment.
    Case LawsPMLA
    Show AI Summary
    Anticipatory bail rights affirmed: non-accused persons may seek protection and PMLA arrests require recorded reasons and prompt court production.
    Anticipatory bail under Section 438 Cr.P.C. is available even before formal accusation and persons not named in an ECIR have locus standi to seek it. Arrest powers under Section 19 of the PMLA require a recorded reasonable belief by the Director and strict compliance with statutory conditions; failure to record reasons or comply with the arrest provisions can vitiate the arrest. Arrested persons must be produced before the court within 24 hours, excluding transit time, to secure judicial oversight and protect liberty.
    Case LawsCustoms
    Show AI Summary
    Classification of data collection devices clarified; device function governs tariff heading with chapter notes guiding treatment.
    The tribunal examined product documentation and found the Kronos 4500's data capture and transmission functions determinative; applying the General Rules of Interpretation and Chapter Note 5(E) to Chapter 84, it concluded the terminal's proximity/badge reader function governed tariff classification rather than mere central server processing capability.
    Case LawsGST
    Show AI Summary
    Rectification vs review: assessing authority lacks power to reopen finalized tax assessments; appellate remedy available.
    The assessing authority distinguished between rectification of manifest errors and review of a finalized assessment, concluding it lacked power to review a completed tax assessment merely because the assessee later adjusted claimed input tax credit; the court emphasised the boundary between corrective filings and reopening concluded assessments and noted the availability of appellate remedy to challenge assessment orders.
    Case LawsPMLA
    Show AI Summary
    Money laundering investigations: quashing ECIRs premature where disclosure is not mandated, and coercive step restraints are constrained.
    Money laundering inquiries arising from land transactions and property registrations involve independent proceedings under the Prevention of Money Laundering Act; seeking to quash an ECIR is procedurally sensitive where the investigated person lacks a copy and disclosure is not mandated. Such inquiries treat witness status in predicate offences as not determinative of accused status in proceeds of crime investigations, and applications to preclude coercive investigative measures must not substitute for established remedies, while access to investigative records raises transparency questions without creating an absolute entitlement.
    Case LawsIncome Tax
    Show AI Summary
    Jurisdictional validity of Section 143(2) notices: invalid issuance by wrong officer vitiates ensuing scrutiny proceedings.
    The tribunal found that a statutory scrutiny notice issued by an officer without jurisdiction at the time of issuance was defective, and that subsequent action by another assessing officer did not cure the initial defect; jurisdictional allocation must follow administrative monetary thresholds for metropolitan corporate returns, and failure to issue a valid notice at initiation vitiates scrutiny proceedings.
    Case LawsIndian Laws
    Show AI Summary
    Admissibility of electronic evidence: Section 65-B certificates may be produced at any trial stage if no irreversible prejudice arises.
    A Section 65-B certificate is not required when an electronic record is used as primary evidence; delay in producing the certificate is not per se fatal if it causes no irreversible prejudice, and procedural tools (including witness recall) may be employed to produce and examine forensic reports derived from seized electronic devices.
    Case LawsVAT / Sales Tax
    Show AI Summary
    Input Tax Credit eligibility limited to tax payable on sale value when purchased inputs are used in manufacturing.
    Eligibility of Input Tax Credit under the UP VAT Act is constrained by the statute's text: credit is allowed only to the extent of tax payable on the sale value of goods or manufactured goods, with a proportional allocation where exempt by products arise. A statutory deeming fiction treats purchased inputs as used in taxable manufacture when by products emerge, enabling ITC claims for taxable outputs and certain exempt by products but disallowing credit for non VAT goods, all governed by strict construction of the statute.

    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 395 "Certificates." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      15 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Section 395 Certificates.

      Income-tax Act, 2025

      At a Glance

      The Document under commentary is Clause 395 of the Income Tax Bill, 2025 (Old Version) titled "Certificates." It sets out procedures for applications to the Assessing Officer for certificates permitting lower deduction or collection of tax at source, and for issuance of certificates evidencing deduction/collection. It matters to payees, payors, buyers/licensees/lessees, employers and non-residents; the effective date or enactment timing is Not stated in the document.

      Background & Scope

      Statutory hooks: the provision is part of the Chapter dealing with "Deduction and collection at source" in the Income Tax Bill, 2025. The clause provides a statutory mechanism for obtaining certificates from the Assessing Officer that alter the rate or quantum at which tax is deducted or collected at source. The clause contains five sub-sections that address (1) payee applications for lower deduction, (2) special procedure for payments to non-residents (proportionate determination), (3) applications by buyers/licensees/lessees for lower collection, (4) mandatory issuance of certificates by deductors/collectors (and employer-specific certificate requirements), and (5) cancellation of AO-issued certificates. Definitions of terms used in the clause (for example, "Assessing Officer", "payee", "person responsible for paying") are Not stated in the document.

      Statutory Provision Mode

      Text & Scope

      The clause applies where tax is required to be deducted or collected under the Chapter. Key ingredients: (i) an eligible applicant (payee; buyer/licensee/lessee; person responsible for paying to a non-resident) may apply to the Assessing Officer; (ii) the application must be made "in such form and manner as prescribed"; (iii) the Assessing Officer must be "satisfied" about the applicant's total income justifying a lower deduction/collection (or in the case of the Bill, a "lower deduction" / "lower collection"); (iv) the AO may issue a certificate specifying the rate at which tax shall be deducted/collected "till its validity"; (v) for certain payments to non-residents (other than salary), the payer may seek a determination of the proportion of the sum chargeable to tax, and tax is to be deducted only on that proportion; (vi) persons deducting/collecting must issue certificates to deductees/collectees specifying amount, rate and other prescribed particulars within prescribed period; and (vii) the AO may cancel issued certificates after giving reasonable opportunity.

      Interpretation

      The text indicates a legislative intent to provide administrative relief and certainty to withholding and collection regimes by enabling assessment-level certificates that modify withholding/collection obligations. The recurring phrase "subject to the rules made under this Act" and "in such form and manner as prescribed" evidences that detailed procedure, forms, timelines and the content of certificates are intended to be governed by delegated legislation (rules/notifications). The AO's power is conditioned on satisfaction as to the payee's/collectee's income which implies an income-driven standard for relief. The Bill focuses on "lower" deduction/collection; it does not expressly contemplate "no deduction" relief in the operative phrase, which may inform a narrower interpretive approach unless clarified by rules.

      Exceptions/Provisos

      No explicit exceptions or provisos are set out besides the parenthetical exclusion in sub-section (2) that excludes salary from the non-resident proportionate-determination procedure. Temporal limits, validity periods, appeal mechanisms, or conditions for issuance (other than AO satisfaction) are Not stated in the document and are left to prescribed rules.

      Illustrations

      • Illustration 1: A resident payee who anticipates low total income applies to the AO for a certificate for lower deduction on interest receipts. If the AO is satisfied, a certificate is issued specifying a reduced withholding rate which the payer must apply until the certificate expires. (This is consistent with clause text.)
      • Illustration 2: A buyer procuring goods who is statutorily liable to collect tax at source believes its total income justifies collection at a lower rate; it applies to the AO and, upon satisfaction, obtains a certificate specifying the lower collection rate to be applied during the certificate's validity. (This follows clause (3).)
      • Illustration 3: A payer to a non-resident (other than salary) considers that only a portion of a payment is taxable; it applies for a determination of the chargeable proportion, and tax is withheld only on the determined taxable proportion. (This paraphrases clause (2).)

      Interplay

      The clause expressly defers details to rules under the Act ("subject to the rules made under this Act", "in such form and manner as prescribed", "as prescribed"). Interaction with other provisions in the Chapter is implied (references to section 392 and 393 appear elsewhere in the Chapter), but cross-references or procedural interlocks (appeal to AO, review, scope of AO's satisfaction, or relation to assessment proceedings) are Not stated in the document. The clause imposes obligations on persons responsible for deduction/collection that will operate in conjunction with other statutory provisions on tax payment, return filing and crediting; specifics of those interactions are Not stated in the document.

      Differences between Document 1 (Section 395 of the Income-tax Act, 2025) and Document 2 (Clause 395 of the Income Tax Bill, 2025 (Old Version))

      • Document 1 (Act) expressly permits the payee to apply for "deduction of income-tax at a lower rate or no deduction of income-tax, as the case may be" (i.e., includes expressly the possibility of no deduction). Document 2 (Bill) refers only to application "for deduction of tax at a lower rate" (no explicit reference to "no deduction").
        • Practical impact: The Act text broadens the express relief available to payees to include certificates for nil deduction; the Bill text is narrower on its face and may be read as not authorising certificates of nil deduction. This affects taxpayers seeking a certificate for no deduction - under the Bill text that position is not explicitly available.
      • Terminology consistency: Document 1 consistently uses "income-tax" and "income or sum" and in sub-section (2) refers to "any sum as mentioned in section 393(2) (Table: Sl. No. 17)". Document 2 uses "tax" and in sub-section (2) says "any sum chargeable under this Act (other than salary)".
        • Practical impact: The Act version narrows the cross-reference to a specific table entry (section 393(2) Table Sl. No. 17) while the Bill uses a broader phrase but excludes salary expressly. Depending on interpretation, the Act's wording may limit the special procedure to the specific listed sum; the Bill may appear broader but excludes salary. This difference can affect which non-resident payments qualify for the proportionate determination procedure.
      • Sub-section (1)(b) standard of satisfaction: Document 1 states the Assessing Officer is to be "satisfied that the total income of the payee justifies deduction of income-tax at a lower rate or no deduction of income-tax"; Document 2 states the AO is to be "satisfied that the total income of the payee justifies a lower deduction".
        • Practical impact: The Act text reiterates both lower rate and nil deduction as possible outcomes; the Bill text only contemplates a lower deduction. The practical standard of satisfaction is similar but the outcome set contemplated differs.
      • Sub-section (2) scope and wording differences: Document 1 sub-section (2)(a) refers to "any sum as mentioned in section 393(2) (Table: Sl. No. 17)"; Document 2 refers to "any sum chargeable under this Act (other than salary)". Document 1's (2)(a) includes prescribed form and manner "where he considers that the whole of such sum would not be chargeable"; Document 2 similar but adds "(other than salary)".
        • Practical impact: The Act text ties the provision to a specific listed sum (Table Sl. No. 17) whereas the Bill text appears to target any sum chargeable (excluding salary). This can change which categories of non-resident receipts can seek proportionate determination for withholding purposes.
      • Typographical/grammatical variations: Document 2 has a stray duplicated semicolon in sub-section (3)(a) ("and;") and slightly different phrasing like "such income or amount" vs "such income or sum". Document 1 cleans up some language and explicitly includes "no income-tax" phrasing in (1)(c) and "(3)(c)".
        • Practical impact: Minor; Act wording is clearer and more explicit on nil deduction/collection and on the objects to which the certificate may apply.

      Practical Implications

      • Compliance and risk areas: Persons responsible for deducting/collecting must implement processes to accept and act upon AO-issued certificates; failure to deduct/collect at the certified rate may attract liability. Payees/collectees seeking relief must ensure accurate disclosure of total income to the AO since the AO's satisfaction is income-based. The Bill text's omission of explicit authorization for "nil deduction" certificates may create additional risk or administrative friction for taxpayers seeking complete exemption from deduction unless rules clarify otherwise.
      • Record-keeping/evidence: The clause requires issuers of certificates (deductors/collectors and employers) to issue documentary certificates specifying amounts and rates within prescribed periods; accordingly, taxpayers should retain certificate copies, AO orders, correspondence, and records demonstrating reliance on certificates and corresponding withholding/collection actions. Specific retention periods and form content are Not stated in the document and are expected to be prescribed.

      Key Takeaways

      • Clause 395 establishes an AO-based certificate mechanism to vary withholding/collection rates where the AO is satisfied about the applicant's total income.
      • It provides a special procedure for payers to non-residents (excluding salary in the Bill) to determine the proportion of sums chargeable and limit withholding accordingly.
      • Deductors/collectors and certain employers must issue certificates to deductees/collectees specifying amounts, rates and other prescribed particulars within prescribed periods.
      • Details of forms, manner, validity, timelines and other procedural rules are left to subordinate legislation and are not specified in the clause.
      • The Bill text does not expressly mention certificates for "no deduction" (nil deduction), which narrows the express relief compared with later Act wording that does include nil deduction; this may affect taxpayers seeking complete exemption from withholding unless clarified by rules.
      • The Assessing Officer may cancel issued certificates after giving reasonable opportunity; grounds and procedure for cancellation beyond opportunity to be heard are Not stated in the document.

      Full Text:

      Section 395 Certificates.

      Topics

      ActsIncome Tax