Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ----
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    NewsBills
    Rationalization of the provisions of sections 271AAB, 271AAC and 271AAD of the Act
    NewsBills
    Rationalization of provisions relating to assessment and reassessment
    NewsBills
    Set off of loss in search cases - Amendment in the provisions of section 79A of the Act
    NewsBills
    Amendment in Faceless Assessment under section 144B of the Act
    NewsBills
    Faceless Schemes under the Act
    NewsBills
    Similar amendment is proposed in Section 271C.
    NewsBills
    Alignment of the provisions relating to Offences and Prosecutions under Chapter XXII of the Act
    NewsBills
    Cash credits under section 68 of the Act
    NewsBills
    Amendment in the provisions of section 248 of Income-tax Act and insertion of new section 239A
    NewsBills
    Withdrawal of exemption under clauses (8), (8A), (8B) and (9) of section 10 of the Income-tax Act, 1...
    NewsBills
    Withdrawal of concessional rate of taxation on dividend income under section 115BBD
    NewsBills
    Scheme for taxation of virtual digital assets
    NewsBills
    Provisions pertaining to bonus stripping and dividend stripping to be made applicable to securities ...
    NewsBills
    Widening the scope of reporting by producers of cinematograph films or persons engaged in specified ...
    NewsBills
    TDS on benefit or perquisite of a business or profession
    NewsBills
    Rationalization of provisions of TDS on sale of immovable property
    NewsBills
    Rationalization of provisions of section 206AB and 206CCA to widen and deepen tax-base
    NewsBills
    Facilitating strategic disinvestment of public sector companies
    NewsBills
    Exemption of amount received for medical treatment and on account of death due to COVID-19
    NewsBills
    Condition of releasing of annuity to a disabled person
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    NewsBills
    Show AI Summary
    Penalty authority expanded: Commissioner (Appeals) may now impose penalties for undisclosed income; per day penalty increased.
    Amendments enable the Commissioner (Appeals) to levy penalties alongside the Assessing Officer for provisions targeting undisclosed income, unexplained credits or expenditures, and falsification or omission in books of account; and increase the per day penalty for failures to answer questions, sign statements, furnish information, returns or allow inspections to strengthen deterrence. These measures are to take effect from 1 April 2022.
    NewsBills
    Show AI Summary
    Assessment and reassessment procedures clarified, aligning search linked notices, limitation exclusions and officer level safeguards.
    Proposed amendments streamline assessment and reassessment procedure by removing duplicate approval requirements for notices under section 148 where an order under section 148A(d) exists, correcting drafting errors in section 148 explanations, extending search/requisition consequences into assessments under sections 143(3), 144 and 147, prescribing officer level approval norms for post search orders, excluding a capped period from limitation where material is seized or requisitioned, and clarifying the meaning of information and threshold conditions for issuing section 148 notices.
    NewsBills
    Show AI Summary
    Undisclosed income set-off prohibited: losses and unabsorbed depreciation cannot be adjusted against income found by search or survey.
    Section 79A prohibits set-off of any loss, whether brought forward or otherwise, and unabsorbed depreciation under sub section (2) of section 32 against undisclosed income discovered as a result of a search under section 132, requisition under section 132A, or survey under section 133A (excluding surveys under sub section (2A) of section 133A). "Undisclosed income" is defined to include money, valuables, books entries or transactions not recorded or not disclosed before the detection, and expense entries found to be false and revealed only because of the detection action.
    NewsBills
    Show AI Summary
    Faceless assessment process: centralised NaFAC-driven electronic workflow directing assessment, verification, technical review and dispute procedures.
    The amendment centralises faceless assessment through a National Faceless Assessment Centre which assigns cases to Assessment Units and routes all notices, responses, verification requests and technical referrals electronically to Verification, Technical and Review Units; communications are authenticated by digital signature, electronic verification code or portal login and all internal exchanges occur via NaFAC with automated allocation and real time alerting.
    NewsBills
    Show AI Summary
    Faceless procedures expanded for transfer pricing, dispute resolution and tribunal appeals, after allowing stabilization and consultation.
    Introduction of faceless procedures under specified direct tax sections (92CA, 144C, 253, 255) is deferred to allow IT system stabilization and Ministry of Law & Justice consultation; appellate procedures must align with tribunal procedure and non-assessment functions will follow phased faceless assessment workflows.
    NewsBills
    Show AI Summary
    Prosecution for failure to pay tax collected at source extended to mirror prosecution provisions for tax deducted at source.
    The proposal brings offences for failure to pay tax collected at source into the same prosecution provisions that apply to failures to pay tax deducted at source by expressly including the statutory provision for non-payment of tax collected at source within those prosecution sections, on the basis of the similar nature of the offences; the amendment is to take effect from the stated commencement date.
    NewsBills
    Show AI Summary
    Sunset clause on historic prosecutions: prohibits initiation of fresh prosecutions under section 276AB from April 2022.
    Amendments propose a sunset clause in section 276AB to bar initiation of fresh prosecutions after 1 April 2022 for offences connected with transfers of immovable property made in the period when Chapter XX-C had been rendered inapplicable, while permitting continuation of prosecutions already initiated; additionally, section 276B is to be amended to substitute its cross-reference with an explicit reference to the proviso to the withholding provision to remove ambiguity created by prior amendments.
    NewsBills
    Show AI Summary
    Source of funds requirement for credited sums now requires creditor's explanation, with regulated venture funds exempted.
    Amendment requires that any sum credited in an assessee's books-whether as loan, borrowing or other liability-will be treated as explained only if the source of funds is satisfactorily explained in the hands of the creditor or entry-provider; exception excludes regulated venture capital entities from this additional onus, and the change applies from the stated operative date to the listed assessment year and thereafter.
    NewsBills
    Show AI Summary
    Withholding tax refund procedure now allows the payer to seek refund from the Assessing Officer, with appellate review.
    A new provision allows a person who deducted and bore tax under an agreement, where no deduction was required, to apply to the Assessing Officer for refund; the Assessing Officer may examine the underlying agreement, and the applicant may appeal the Assessing Officer's order to the Commissioner (Appeals). The previous route under section 248 will not apply for payments on or after the appointed date, effecting a procedural shift to assessment stage review.
    NewsBills
    Show AI Summary
    Exemption withdrawal for foreign technical-assistance remuneration; such income will be taxable from the assessment year beginning April next year.
    The article sets out the phase-out of exemptions under clauses (8), (8A), (8B) and (9) of section 10 for remuneration, fees and related foreign-source income connected to cooperative or agency technical assistance programmes, describing existing eligibility rules (foreign citizenship/non-ordinary residency, nonresident status, prescribed-authority approvals) and explaining the policy rationale of tax simplification and protecting India's treaty taxing rights; the clauses are proposed to be inapplicable to income for the previous year relevant to the assessment year beginning on or after 1 April 2023.
    NewsBills
    Show AI Summary
    Concessional tax on foreign dividends removed, aligning tax treatment of foreign and domestic corporate dividends going forward.
    Withdrawal of the concessional regime under Section 115BBD ends the special tax rate for dividends received by an Indian company from a specified foreign company, aligning their treatment with domestic dividends by making Section 115BBD inapplicable for assessment years beginning on or after the first day of April, 2023 so that such dividends are taxed in the shareholder's hands at applicable rates plus surcharge and cess.
    NewsBills
    Show AI Summary
    Taxation of virtual digital assets: new flat tax and mandatory withholding reshape transfers and gifting rules.
    A dedicated tax regime segregates income from transfer of virtual digital assets under section 115BBH, taxing such income at a dedicated rate without deductions except cost of acquisition and disallowing set-off or carry forward of related losses. Section 194S mandates tax deduction at source on payments for transfer to residents with rules for in-kind consideration, specified person exemptions, treatment of suspense accounts as payee credits, and Board-issued guidelines; the definition of virtual digital asset (including NFTs) and gift taxation are adjusted with notification powers for the Central Government.
    NewsBills
    Show AI Summary
    Bonus and dividend stripping rules extended to securities and pooled investment units, widening anti avoidance coverage.
    Section 94's anti avoidance provisions will be amended to apply sub section (8) on bonus stripping to securities and to expand dividend stripping rules to units of pooled investment vehicles by revising the Explanation to redefine "unit" to include business trust units such as InvITs, REITs and AIFs, thereby closing existing scope gaps and applying the provisions from the specified assessment year forward.
    NewsBills
    Show AI Summary
    Expanded reporting obligations now require producers and specified activity persons to report aggregate payments to tax authorities.
    Section 285B is expanded to require producers of cinematograph films and persons engaged in specified activities to furnish Form 52A statements reporting particulars of aggregate payments above the prescribed threshold made to or due from each person engaged, with timing governed by the end of the financial year or completion of the work.
    NewsBills
    Show AI Summary
    TDS on business perquisites: providers must deduct tax at source before delivering benefits or perquisites.
    A new section 194R mandates that the person responsible for providing any benefit or perquisite arising from business or profession to a resident must deduct tax at source on the value or aggregate value of such benefit or perquisite before providing it; where benefits are wholly in kind or partly in cash with insufficient cash to meet the deduction, tax must be ensured paid before release. Exemptions apply below a specified annual value threshold and for individuals or HUFs below specified turnover limits in the preceding year, with a stated effective date.
    NewsBills
    Show AI Summary
    TDS on immovable property: deduction based on higher of consideration or stamp duty value, with threshold exemption.
    The amendment requires TDS on transfer of immovable property to be deducted on the higher of the consideration payable or the stamp duty value of the property, ensuring consistency with valuation rules for income and capital gains; if both values are below the prescribed monetary threshold, no TDS is required, and "stamp duty value" carries the meaning assigned in the Act's Explanation.
    NewsBills
    Show AI Summary
    Specified person rule shortened to increase TDS/TCS coverage and prompt taxpayers to furnish returns under revised criteria.
    Amendments reduce the non-filing window for the specified person from two years to one year for higher TDS/TCS applicability, substitute 'furnishing' for 'filing' to reflect electronic returns, correct deductor/collectee terminology, exclude specified withholding provisions and certain simplified individual/HUF regimes from section 206AB, and amend cross-references in section 194-IB; effective from April 1, 2022.
    NewsBills
    Show AI Summary
    Change in shareholding rule: majority voting power retention after strategic disinvestment preserves carry forward of losses, subject to condition.
    Amendment creates a conditional exemption from the change in shareholding bar on carry forward and set off of losses for an erstwhile public sector company where the ultimate holding company, immediately after strategic disinvestment, continues to hold, directly or through subsidiaries, an aggregate majority of the voting power; failure to maintain that majority in a subsequent year triggers application of the change in shareholding rule for that and later years.
    NewsBills
    Show AI Summary
    Exemption for COVID-19 medical and death payments: employer payments fully exempt; third-party payments exempt subject to cap and time limit.
    Amendments exclude COVID 19 related medical and death payments from taxable income: employer payments for an employee's or family member's COVID 19 medical treatment will not be treated as a perquisite; gratuitous receipts for COVID 19 medical expenditure received from any person, and ex gratia or other payments to family members on death from the deceased's employer (without limit) or from others up to a capped aggregate within a prescribed period, will not be income, subject to conditions and the statutory definition of family. These changes are retrospective to 1 April 2020.
    NewsBills
    Show AI Summary
    Disability deduction extended to allow lifetime annuity or lump-sum payments when subscriber reaches senior age and payments cease.
    Amendment permits deduction under Section 80DD where annuity or lump-sum payments are made to a disabled dependant during the lifetime of the subscriber provided the subscriber has attained senior age and payments or deposits have been discontinued; amounts so received by the dependant before death are not to be treated as the assessee's income under the prior deeming provision.

    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 511 "Furnishing of report in respect of international group." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      17 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Section 511 Furnishing of report in respect of international group

      Income-tax Act, 2025

      At a Glance

      The document reproduces Clause 511 - Income Tax Bill, 2025 - Old Version, setting out reporting obligations for constituent entities of international groups (country-by-country reporting style). It matters for multinational groups with Indian resident constituent entities - both taxpayers (resident constituent entities, parent entities, alternate reporting entities) and the tax administration. Effective date or commencement is Not stated in the document.

      Background & Scope

      Statutory hooks: Clause 511 sits within miscellaneous provisions of the Income Tax Bill, 2025 and proposes a standalone reporting obligation for "international groups". The clause creates duties to notify the prescribed income-tax authority and to furnish reports containing consolidated and constituent-level financial and operational information. Definitions and scope are provided within the clause itself. Any subordinate rules, forms, timelines and thresholds are to be set out "as prescribed" (delegated rule-making).

      Statutory Provision Mode

      Text & Scope

      Clause 511 imposes three principal obligations:

      • Notification (sub-section (1)): Every constituent entity resident in India that is part of an international group whose parent is not resident in India must notify the prescribed income-tax authority in the prescribed form and manner by the prescribed date whether it is the alternate reporting entity and/or provide details of the parent or alternate reporting entity and their jurisdictions.
      • Reporting (sub-section (2)): Every parent entity or alternate reporting entity resident in India must, for each reporting accounting year, furnish a report to the prescribed income-tax authority within twelve months from the end of that reporting accounting year, in the prescribed form and manner.
      • Fallback reporting (sub-section (4)): Where an Indian resident constituent entity is not the parent/alternate reporting entity, it must furnish the report within a prescribed period if the parent is resident in a jurisdiction that (a) is not obligated to file such a report; (b) lacks an agreement with India for exchange of the report; or (c) has experienced a "systemic failure" and that failure has been intimated by the prescribed income-tax authority.
      • Sub-sections (3) and (6) detail report content and exceptions; (7) grants the authority the power to issue notices and require supporting information; (8) provides a consolidated-revenue threshold exemption; and (9) permits application "as prescribed".

      Interpretation

      The text indicates a legislative intent to implement a country-by-country reporting regime targeted at large international groups with constituent entities resident in India. The use of express definitions (e.g., "consolidated financial statement", "parent entity", "constituent entity", "reporting accounting year") demonstrates an intent to align reporting obligations with financial reporting and with international standards for transfer pricing transparency. Several interpretive principles are signalled by the text: alignment with parent-jurisdiction financial periods, deference to prescribed forms and procedures, and reliance on intergovernmental agreements for automatic exchange.

      Exceptions/Provisos

      Key carve-outs and conditions:

      • Threshold exemption (sub-section (8)): The section will not apply if the total consolidated group revenue for the preceding accounting year does not exceed the prescribed amount - the specific monetary threshold is Not stated in the document.
      • Non-application where an alternate reporting entity files in its jurisdiction and certain conditions are met (sub-section (6)): Conditions include the foreign report being required by local law, presence of an exchange agreement between that country and India, absence of any systemic failure communicated by the Indian authority, written designation of the alternate reporting entity, and prior notification under sub-section (1). These are cumulative preconditions.
      • Fallback allocation where multiple Indian resident constituent entities exist (sub-section (5)): If more than one Indian constituent entity exists, any one designated entity may furnish the report provided the group has designated that entity and the information has been conveyed in writing to the prescribed authority.

      Illustrations

      • Example 1: A multinational group with a non-resident parent and one Indian subsidiary that is designated as the alternate reporting entity must notify the income-tax authority in India and, if resident as alternate reporting entity, file the report within 12 months of the reporting accounting year end. (All procedural details - forms/timelines - are Not stated in the document.)
      • Example 2: An Indian permanent establishment (PE) of a foreign enterprise that prepares separate financial statements as a PE falls within "constituent entity" and, if the foreign parent's jurisdiction neither files nor exchanges reports with India, that Indian PE may be required to furnish the report within the prescribed period. (Precise prescribed period is Not stated in the document.)

      Interplay

      The clause expressly contemplates interaction with:

      • Section 159(1) or (2) (via the definition of "agreement") - signalling reliance on specified intergovernmental agreements for exchange.
      • Section 173(c) (for the meaning of "permanent establishment").
      • Prescribed rules/guidelines/conditions that remain to be issued for form, manner, dates and thresholds. The document does not reproduce any subordinate rules or forms. Specific interactions with existing transfer-pricing or information-exchange regimes are Not stated in the document beyond the express reference to agreements for exchange.

      Differences between the Document 1 "Section 511 of Income-tax Act, 2025" and Document 2 "Clause 511 - Income Tax Bill, 2025 - Old Version"

      • Prescription wording: Document 1 repeatedly uses the phrase "as may be prescribed" (e.g., sub-sects (1), (2), (3), (9)), whereas Document 2 often uses the shorter "as prescribed".
        • Practical impact: negligible substantive difference in content; "as may be prescribed" can imply delegation to subordinate legislation, while "as prescribed" is more neutral - both indicate delegated rule-making. In practice, stakeholders should expect rules/guidelines to be issued regardless.
      • Minor phrasing differences: e.g., Document 1 in sub-section (4)(c) reads "where there has been a systemic failure of the country or territory and such failure has been intimated by the prescribed income-tax authority to such constituent entity" while Document 2 reads "where there has been a systemic failure and such failure has been intimated by the prescribed income-tax authority to such constituent entity."
        • Practical impact: none substantive; the enacted text in Document 1 clarifies that the systemic failure is of the foreign country/territory, but Document 2's meaning would be read the same way in context.
      • Overall: there are no material substantive differences in obligations, definitions, thresholds or exceptions between the two texts provided. The principal practical impact arises from the change in status from a Bill clause (Document 2) to an enacted statutory section (Document 1) and minor drafting refinements that preserve the same legal obligations and delegated-rulemaking expectation.

      Practical Implications

      • Compliance and risk areas: Indian resident constituent entities of international groups must track whether their group's parent is resident outside India, determine whether they are designated as alternate reporting entity, and ensure timely notification to the prescribed income-tax authority. Parent or alternate reporting entities resident in India must prepare and file the prescribed report within 12 months of the reporting accounting year end. Failure to notify or file may expose entities to compliance actions under the Act and to information requests under sub-section (7).
      • Record-keeping/evidence: The text requires aggregated country-level financial and operational metrics and constituent-level details; accordingly, entities will need robust consolidated financial statements, country allocation methodologies, documentation of designation as alternate reporting entity, and written communications to the Indian authority. The precise content and format are "as prescribed" and therefore entities must monitor subordinate instruments for technical compliance requirements (not specified in the Bill text).

      Key Takeaways

      • Clause 511 establishes country-by-country style reporting obligations for international groups with Indian resident constituent entities.
      • There is a dual duty: initial notification by Indian resident constituent entities (where parent is non-resident) and annual reporting by Indian parent/alternate reporting entities within 12 months of reporting accounting year end.
      • Fallback reporting obligations apply to Indian resident constituent entities if the parent's jurisdiction does not file, does not exchange, or has a communicated systemic failure.
      • Exemptions hinge on a consolidated revenue threshold for the preceding year; the specific threshold is to be prescribed and is Not stated in the document.
      • The power to request supporting information and documents within defined timelines is provided to the prescribed income-tax authority.
      • Many operational details (form, manner, prescribed dates, exact thresholds) are left to delegated rules; stakeholders must monitor rule-making for compliance specifics.

      Full Text:

      Section 511 Furnishing of report in respect of international group

      Topics

      ActsIncome Tax