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
    Liberalizing Silver Imports: Analyzing the Impact of DGFT Notification No. 57/2023 on India's Trade ...
    Extension of the existing concessional import duties on specified edible oils up to and inclusive of...
    Levy of Export Duty on Molasses Exports
    Act RulesCustoms
    Anti-Dumping Duties: A Comprehensive Analysis of the Customs Tariff Act, 1975
    Analysis of Recent Anti-Dumping Duty Imposition on Meta Phenylene Diamine Imports from China to Indi...
    NotificationsCentral Excise
    Analyzing the Implications of Central Excise Duty Changes on Petroleum Products
    Challenges in corporate insolvency, particularly when dealing with contract terminations and arbitra...
    Case LawsCustoms
    Analyzing the Legal Dispute in Customs regarding provisional assessment: A Case of Procedural Lapses...
    Case LawsIncome Tax
    Deduction u/s 80P: Navigating the Legal Labyrinth - Co-operative Societies Vis-a-vis Co-operative ba...
    Transition to the GST regime. Legal challenges posed by the GST regime on existing government contra...
    Case LawsIncome Tax
    Navigating Legal Complexities - Assessment in case of third parties post search and seizure - The pe...
    Case LawsIncome Tax
    Scope of compliance of the Document Identification Number (DIN) in tax communications​​.
    Supreme Court's Scrutiny of ED's Conduct: Upholding Legal Standards in Arrest and Remand Procedures
    GST: transportation of goods, the role of e-way bills, and the implications of their cancellation - ...
    Case LawsCustoms
    Legality of Value Enhancement for the import of goods on the basis of allegation of Under-invoicing ...
    Equality in Financial Creditor Status: The Supreme Court's Ruling in regarding the status of home bu...
    Case LawsIncome Tax
    Navigating the Nuances of Capital vs Revenue Expenditure: The Asian Hotels Ltd. Case Analysis
    Case LawsCentral Excise
    Demand based on Form-26AS information from the Income Tax Department, without pre-show cause notice ...
    Importance of transparency in corporate governance and the rights of minority shareholders
    The case of Manish Sisodia versus CBI and DoE is not just a legal battle but also a matter of signif...
❯❯
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
    NotificationsDGFT
    Show AI Summary
    Liberalizing silver imports: expanding free actual user access and enabling bullion exchange imports to boost industrial inputs.
    Amendment to import policy for silver under Chapter 71 of ITC (HS) 2022 classifies semi manufactured silver as Free on an Actual User basis for specified manufacturing sectors and permits R&D imports by government or recognised institutions; it also revises HS code treatment to allow qualified jewellers to import via a recognised bullion exchange, expanding import access beyond nominated agencies.
    NotificationsCustoms
    Show AI Summary
    Concessional import duties on specified edible oils extended, preserving customs and AIDC exemptions to support supply and affordability.
    Notification No. 02/2024 amends Notifications Nos. 48/2021 and 49/2021 to extend the concessional import duty treatment and the exemption from the Agriculture Infrastructure and Development Cess for specified edible oils, preserving customs duty relief for listed soybean, palm and sunflower oil categories to maintain lower import costs and supply continuity.
    NotificationsCustoms
    Show AI Summary
    Export duty on molasses imposed to secure domestic supply for ethanol blending and reduce fuel import reliance.
    A 50% export duty has been added to the Second Schedule of the Customs Tariff Act, effective January 18, 2024, using the government's urgent power to levy export duties, to restrict molasses exports and increase domestic supply for ethanol production and to address sugar shortages and fuel-import dependence.
    Act RulesCustoms
    Show AI Summary
    Anti-dumping duties protect domestic industry by allowing provisional and retrospective measures and circumvention checks on dumped imports.
    Anti-dumping duties under the Customs Tariff Act, 1975 define anti-dumping duties, margin of dumping, export price and normal value, and set methods to determine dumping when direct comparisons are infeasible. The statute provides anti-circumvention and duty-absorption rules, permits provisional duties based on preliminary findings and retrospective duties in certain large cases, and allows conditional exemptions for consignments to export-oriented units and special economic zones.
    NotificationsCustoms
    Show AI Summary
    Anti-dumping duty continuation on Meta Phenylene Diamine from China preserves domestic industry protection under sunset review recommendation.
    Continuation of anti-dumping duty on Meta Phenylene Diamine from China follows a sunset review finding continued dumping and injury to the domestic industry; the government imposed differentiated per-metric-ton duties on a named Chinese producer and other exporters, including imports from other countries exported via China, to be levied for a five-year period unless earlier revoked, superseded or amended and payable in Indian currency.
    NotificationsCentral Excise
    Show AI Summary
    Special Additional Excise Duty reduction may lower government revenues and influence fuel pricing and consumption.
    Notification No. 03/2024 amends Notification No. 18/2022 by reducing the Special Additional Excise Duty on production of petroleum crude, directly altering the statutory excise rate and thereby affecting government excise revenue, oil company margins and pricing incentives, potential consumer fuel prices given other tax and market factors, and environmental consumption incentives.
    Case LawsIBC
    Show AI Summary
    Wrongful invocation of bank guarantees not upheld where arbitration covers claims; liquidator may refile under insolvency law.
    The appellate tribunal found the liquidator's claims, including allegations of wrongful invocation of bank guarantees, were encompassed by pending arbitration and upheld deletion of the concessionaire from the insolvency-era causative-misconduct application, while permitting the liquidator to file a fresh insolvency application should subsequent arbitration facts necessitate separate action.
    Case LawsCustoms
    Show AI Summary
    Provisional assessment compliance: non-deliberate document delays without revenue impact warrant nominal penalties under provisional assessment rules.
    The tribunal examined Regulation 5 penalties for delayed document submission under the Customs (Provisional Duty Assessment) Regulations, noting absence of mala fide conduct and no revenue implication. Emphasizing proportionality, the tribunal treated non-deliberate, revenue-neutral delays as warranting a nominal sanction rather than the maximum prescribed penalty, balancing enforcement of document-submission requirements with the factual context of compliance.
    Case LawsIncome Tax
    Show AI Summary
    Co-operative bank classification: licensing requirement determines cooperative societies' tax deduction eligibility under section 80P provisions.
    Eligibility for deduction under Section 80P depends on whether a cooperative society qualifies as a co-operative bank, which in turn requires evaluation of statutory definitions and the regulatory requirement of licensing under the Banking Regulation Act read with the NABARD Act and state cooperative laws; classification hinges on regulatory status and banking activity rather than merely providing credit to members.
    Case LawsGST
    Show AI Summary
    GST impact on government contracts: administrative review required to address tax liabilities and update contract pricing.
    Applicability of GST to government contracts where SOR and BOQ were not updated, creating additional tax liabilities; responsibility for incorporating the new tax regime into contract pricing and the administrative duty to address resultant tax increments. The court directed a formal representation process and a reasoned administrative decision after departmental consultation, with no coercive action to be taken against the petitioner pending resolution.
    Case LawsIncome Tax
    Show AI Summary
    Interpretation of Section 153C limits third party assessment timelines to when seized materials reach the Assessing Officer.
    The Supreme Court held that, for third parties found via search and seizure, the period for which returns must be filed is measured from the date seized materials are forwarded to the relevant Assessing Officer rather than from the date of the original search. The Court read Sections 153A and 153C to avoid unduly prejudicing uninvolved third parties and to prevent excessive record-retention and procedural burden, endorsing a fair, plain-language construction aligned with legislative intent.
    Case LawsIncome Tax
    Show AI Summary
    DIN compliance: omission of Document Identification Number can render tax orders procedurally noncompliant under CBDT Circular.
    The dispute focuses on whether omission of the Document Identification Number (DIN) from a substantive tax order, despite issuance of an intimation letter containing the DIN, renders the communication noncompliant with CBDT Circular No.19/2019; the Tribunal treated a DIN-less order as deficient, rejected the revenue's rectification attempts and allowed relief to the assessee, while the High Court found no substantial question of law warranting interference, underscoring strict procedural adherence in tax communications.
    Case LawsPMLA
    Show AI Summary
    Arrest Procedure: strict compliance with statutory grounds required to validate arrests and remand under anti-money-laundering law.
    The validity of arrests and remand hinges on recording and furnishing written reasons for belief in the arrested person's involvement and transparent communication of grounds; remand courts must apply independent mind and cannot cure constitutional infirmities arising from defective arrests, and investigative conduct suggesting arbitrariness or abuse of process undermines lawful custody.
    Case LawsGST
    Show AI Summary
    Intent to evade tax determines whether e way bill cancellations warrant seizure measures or minor breach penalties under GST.
    Applicability of detention and seizure provisions under the GST regime turns on the presence of intent to evade tax; where such intent is absent, the statutory scheme contemplates treatment as a minor breach subject to lighter penal consequences. Authorities must assess whether e way bill irregularities reflect inadvertent or excusable circumstances warranting penalties for non compliance rather than initiation of measures reserved for deliberate tax evasion.
    Case LawsCustoms
    Show AI Summary
    Customs valuation integrity requires voluntary, corroborated evidence before enhancing declared import value or imposing penalties.
    Enhancement of import value and penalties for alleged under invoicing were unsupported where export declarations were unattested photocopies later rectified by the supplier, key statements under Section 108 were retracted and lacked corroboration, and contemporaneous import comparisons were dismissed without contrary evidence; therefore, voluntariness and corroborative evidence are required before altering declared value or imposing penalties.
    Case LawsIBC
    Show AI Summary
    Financial Creditor Status: Home buyers must receive equal treatment in IBC resolution plans irrespective of RERA remedies.
    The Court held that the statutory explanation deeming amounts raised from allottees as having the commercial effect of borrowing brings home buyers within the class of financial creditors under Section 5(8)(f) of the IBC; it disapproved any subdivision treating buyers who pursued RERA remedies as a separate subclass, finding such differential treatment to be inequitable and violative of Article 14, and directed equal treatment of allottees in resolution plan consideration.
    Case LawsIncome Tax
    Show AI Summary
    Renovation and consultancy expenses for hotels treated as revenue when they preserve existing assets without creating enduring capital benefits.
    Classification of renovation and related consultancy expenses turns on whether works create a new asset or an enduring capital advantage. Expenditure that preserves existing condition, maintains competitiveness, or restores assets without materially improving life or efficiency is revenue in nature. Consultancy fees aligned with such maintenance are treated as revenue expenditure rather than capital outlay.
    Case LawsCentral Excise
    Show AI Summary
    Form 26AS reliance insufficient where no proper investigation; valuation rules and natural justice must govern service tax demands.
    Reliance on Form-26AS alone cannot sustain a service tax demand absent proper investigation and procedural consultation; valuation must follow the applicable valuation rules for works contract services with consideration of claimed abatements and any notification based relief, and invocation of the extended period of limitation requires factual basis beyond third party data or ex parte adjudication.
    Case LawsSEBI
    Show AI Summary
    Shareholder access to investigation documents upheld, reinforcing transparency and minority investor rights in regulatory proceedings.
    Minority shareholders challenged alleged securities-law violations and sought access to investigation and settlement-related documents; the court found that shareholders could not be treated as outsiders and were entitled to the requested materials despite confidentiality claims, while not definitively ruling on the legality of the settlement process, stressing transparency in corporate governance and implications for application of confidentiality provisions in regulatory proceedings.
    Case LawsPMLA
    Show AI Summary
    Right to speedy trial can justify bail when prolonged trial delay exists and courts must reassess bail applications.
    The matter focuses on bail principles and statutory interpretation under the Prevention of Money Laundering Act, questioning whether proceeds arising from an administrative excise policy constitute proceeds of crime and whether money laundering prosecution requires independent evidence distinct from a scheduled offence. Defence objections include prolonged custody, voluminous evidence, and constitutional protections for ministerial decision making. The court emphasized that bail assessments are tentative, must account for the accused's right to a speedy trial where delay is not attributable to them, and allowed liberty to re apply for bail or interim relief if trial delay or medical emergency arises, to be considered on merits.

    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 423 "Interest for defaults in furnishing return of income." 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 423 Interest for defaults in furnishing return of income.

      Income-tax Act, 2025

      At a Glance

      Document compared: Section 423 of the Income-tax Act, 2025 (as appearing in the enacted Act) and Clause 423 of the Income Tax Bill, 2025 (Old Version) (the Bill text supplied). Both texts deal with interest for defaults in furnishing return of income. The provisions affect taxpayers required to furnish returns, and the income-tax department in calculating and demanding interest. Effective date or decision date: Not stated in the document.

      Background & Scope

      Statutory hook: Clause 423 in the Income Tax Bill, 2025 - Old Version (hereinafter "Clause 423 (Bill)"). Subject matter: interest chargeable for defaults in furnishing return of income. Coverage: outlines when simple interest at the rate implicit in the formula I = 1% x A x T becomes payable, defines the starting and ending dates for computation across specified circumstances, prescribes treatment where post-assessment orders alter tax, and defines components included in "tax paid". Definitions or explanations provided in the text: limited to the formula and the Table; the Bill supplies a definition of "tax paid" in sub-section (4)(d) with enumerated items (i)-(vii). No separate definitions section is provided.

      Statutory Provision Mode

      Text & Scope

      Clause 423 imposes simple interest for defaults in furnishing a return of income. The interest is computed by the formula I = 1% x A x T, where A is the "amount of tax on which interest is payable" (as specified in sub-section (2)) and T is the number of months comprised in the period commencing on the day after the "starting date" and ending on the "ending date" specified in the Table. Sub-section (2) contains a Table that maps specific circumstances to starting date, ending date and the tax base (A) for interest computation. The Table covers four scenarios: (1) return furnished u/s 263(1), (4) or (6) or in response to a notice u/s 268(1) after the due date; (2) no return furnished under the said sections; (3) return required by a notice under an unspecified section issued after certain determinations and furnished late; and (4) where such a notice requires a return and no return is furnished. Sub-section (3) deals with the consequence of orders (under a list of sections) that increase or reduce the tax base for interest, prescribing issuance of notice of demand in prescribed form where interest increases, and refund of excess interest where interest is reduced. Sub-section (4) contains qualifying notes, including exclusions of additional income-tax u/s 267 from the tax bases, reduction of interest payable by amounts of interest paid u/s 266, and the detailed meaning of "tax paid". Sub-section (5) treats an assessment made for the first time u/s 279 as a "regular assessment" for purposes of the section.

      Interpretation

      Legislative intent as indicated by the Bill text: to provide a simple, uniform interest formula for late or non-furnishing of returns and to tie the interest computation periods to concrete events (due date, date of furnishing, date of completion of assessment, dates specified in notices). The Table-driven approach indicates an intent to vary the tax base (A) and the start/end dates according to factual circumstances of how and when returns are filed or not filed. The inclusion of a detailed "tax paid" definition shows an intent to net off various prepayments and credits from the tax base when computing interest. The provision for adjustment upon post-assessment orders (sub-section (3)) manifests an intent to align interest levies with the final assessed tax position.

      Exceptions/Provisos

      Carve-outs or qualifications present in the Bill include:

      • Exclusion of additional income-tax u/s 267 from the tax base (4)(a)-(b).
      • Reduction of interest payable by interest already paid u/s 266 (4)(c).
      • Specific items constituting "tax paid" (4)(d)(i)-(vii), which serve as offsets against the tax base for interest calculation.
      • Where an assessment is made for the first time u/s 279, it is to be regarded as a regular assessment (5).

      Illustrations

      • Example 1: A return filed late in response to a notice u/s 268(1). Starting date is the due date u/s 263(1); ending date is date of furnishing; A is tax on total income as determined u/s 270(1) (if regular assessment not made) or tax determined under regular assessment, reduced by "tax paid". (All other specifics of amounts and dates Not stated in the document.)
      • Example 2: No return furnished in response to a notice u/s 268(1). Starting date is due date u/s 263(1); ending date is date of completion of assessment u/s 271; A is tax on total income determined under regular assessment reduced by "tax paid". (Concrete amounts and computation Not stated in the document.)
      • Example 3: Return required by a notice (serial number 3) but furnished after expiry of time allowed under such notice. Starting date is the date immediately following the last date of time allowed under such notice (Bill text); ending date is date of furnishing; A is amount by which reassessed tax exceeds earlier tax. (The Bill text contains an omission in the cross-reference to the notice section; specifics Not stated in the document.)

      Interplay

      The Bill text expressly references multiple other provisions (sections 263, 268, 270, 271, 279, 280, 266, 267, 287, 288, 289, 359, 363, 365(10), 368, 377, 378, 206). Interplay with those provisions is central to determining starting/ending dates, the tax base (A), and credits. The Bill, as supplied, contains at least one omitted cross-reference (a missing section number in the Table at serial number 3) and a differing cross-reference for the tax credit clause (206(13) vs the multi-paragraph references in the Act). These differences create potential interpretive issues and could require reconciliation with the substantive provisions of the referenced sections; however, the content of those referenced sections is Not stated in the document.

      Differences between the two provisions and practical impact

      • Starting date for notice-required returns (serial numbers 3 and 4): The enacted Section 423 (Act) uses "The last date of time allowed under such notice" as the starting date for serial numbers 3 and 4. The Clause 423 of Bill (Old Version) uses "Date immediately following the last date of time allowed under such notice" (for both serial numbers 3 and 4 in the Bill).
        • Practical impact: shifting the stated starting date by one day will change the counted months (T) in the formula I = 1% x A x T in some cases; whether the difference produces a material change depends on the method of counting months under the section (not further specified in the documents). It can lead to one additional month being counted in some interpretations, thereby increasing interest liability slightly in some cases.
      • Row 3 starting date wording: In the Act text, for serial number 3 the Starting date is "The last date of time allowed under such notice." The Bill text, for serial number 3, states "Date immediately following the last date of time allowed under such notice."
        • Practical impact: same as above; potential to alter the period used for interest computation.
      • Omissions/typographical differences affecting clarity: The Bill's Table entry for serial number 3 contains an apparent omission - "Where return of income is required by a notice u/s issued after..." (the section number is missing). The Act provides the relevant contextual references (Act shows section 280 in related contexts).
      • Practical impact: omission creates ambiguity in the Bill text about which notice provision is referred to; this could cause interpretive uncertainty unless corrected. The Act text does not exhibit that omission in the supplied extract.
      • "Tax paid" definition - tax credit cross-references: The Act's clause (4)(d)(vii) defines "tax paid" to include "any tax credit allowed to be set off as per sections 206(1)(m) to (p) and 206(2)(e) to (h)." The Bill (Old Version) substitutes "(vii) any tax credit allowed to be set off as per section 206(13)."
        • Practical impact: this is a substantive difference in cross-references. If the Bill's singular reference is intended to capture the same set of credits, the drafting does not make that clear. Depending on the actual content of section 206 in the statute (not stated in the document), taxpayers may lose (or gain) certain credits being treated as "tax paid" for interest computation. As the document supplied does not state the content of section 206, the practical effect cannot be fully determined from the text alone.
      • Form of notice of demand: Sub-section (3)(a) in the Act reads "in such form as may be prescribed"; the Bill reads "in the form as prescribed."
        • Practical impact: stylistic/minor drafting difference; both phrases point to prescribed form, but "such form as may be prescribed" is the more conventional legislative formulation. No clear substantive impact in isolation.
      • Other structural/wording differences: Minor variations in punctuation, paragraphing and referential phrases occur across the two texts (for example, use of "the Assessing Officer shall serve on the assessee a notice of demand in such form as may be prescribed specifying the sum payable" vs "shall serve on the assessee a notice of demand in the form as prescribed specifying the sum payable").
        • Practical impact: primarily drafting and clarity; no express substantive change beyond the items noted above based on the supplied texts.

      Practical Implications

      • Compliance and risk areas: The precise starting date language (whether the last date of time allowed or the day after that date) will affect calculation of months (T) - which could increase or decrease interest by the formula provided. Taxpayers filing in response to notices should be alert to how the start date is to be computed. Where the Bill's cross-references differ (notably to section 206), taxpayers should verify which tax credits count as "tax paid" for interest computations - the Bill text introduces uncertainty. The omission of a section number in serial number 3 may create avoidable disputes until corrected.
      • Record-keeping/evidence points: The text makes clear that dates of notices, dates of furnishing of returns, dates of completion of assessments and amounts of tax determined at various stages are determinative items. Parties should maintain contemporaneous records showing notice dates, time allowed under notices, dates of filing, assessments and any payments or credits claimed (details of records to be kept Not stated in the document).

      Key Takeaways

      • Clause 423 (Bill) applies a simple interest formula I = 1% x A x T for defaults in furnishing returns, tying the interest period to specific starting and ending events listed in a Table.
      • There are material drafting differences between the Bill and the enacted Section 423: notably in the exact stated starting dates for notice-driven cases and in the cross-references used to define tax credits included as "tax paid".
      • Shifts in starting date wording (last date vs date immediately following) can alter interest months counted and thus interest liability; the Bill language tends to state the day after, potentially increasing periods in some views.
      • The Bill text contains an omission (missing section reference in serial number 3 of the Table) creating interpretive ambiguity that requires correction or legislative clarification.
      • The Bill lists prescribed mechanisms for adjustment where post-assessment orders alter tax and requires notice of demand or refund accordingly.
      • The provision for reduction of interest by interest already paid u/s 266 and the detailed enumeration of items constituting "tax paid" show an intent to prevent double charging and to net prepayments and credits.

      Full Text:

      Section 423 Interest for defaults in furnishing return of income.

      Topics

      ActsIncome Tax