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 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 ✕
🔎 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.
Relevance Default Date
    Circulars Service Tax
    How will the SBC be calculated for services under reverse charge mechanism?
    Circulars Service Tax
    Whether SBC is a ‘Cess’ on tax’ and we need to calculate SBC @ 0.50% on the amount of service ...
    Circulars Service Tax
    What would be effective rate of service tax and SBC post introduction of SBC?
    Circulars Service Tax
    Whether separate accounting code will be there for Swachh Bharat Cess
    Circulars Service Tax
    Whether SBC would be required to be mentioned separately in invoice?
    Circulars Service Tax
    How will the SBC be calculated?
    Circulars Service Tax
    Where will the money collected under SBC go?
    Circulars Service Tax
    Why has SBC been imposed?
    Circulars Service Tax
    Whether SBC would be leviable on exempted services and services in the negative list?
    Circulars Service Tax
    What is the date of implementation of SBC?
    Circulars Service Tax
    What is Swachh Bharat Cess (SBC)?
    Manuals Income Tax
    STEPS NEED TO BE TAKEN AFTER APPROVAL ADVANCE PRICING AGREEMENT(APA)?
    Manuals Income Tax
    What is the limit of PANCARD regarding payment to Life Insurance company ?
    Manuals Income Tax
    What is the basic monetary limit required for PANCARD for amount deposit in mutual fund and shares?
    Manuals Income Tax
    What is the basic limit for PANCARD for payment to foreign country?
    Manuals Income Tax
    Whether PANCARD is require for opening account in bank?
    Manuals Income Tax
    What is the limit of PANCARD for amount depositing in securities.?
    Manuals Income Tax
    Is PANCARD is required for time deposit exceed a time of ₹ 5 lakhs?
    Manuals Income Tax
    What is the Basic limit of PANCARD for sale purchase of immovable property?
    Manuals Income Tax
    Is Permission is Required For Filing Of Revised Return?
❯❯
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
Circulars Service Tax
Show AI Summary
Swachh Bharat Cess reverse charge shifts liability to the service recipient, applying existing reverse charge notifications mutatis mutandis.
Swachh Bharat Cess for services under reverse charge is payable by the service recipient: Chapter V provisions apply to SBC, and government notification makes the existing service tax reverse charge notification applicable to SBC mutatis mutandis, so recipients compute and discharge SBC under the same reverse charge rules.
Circulars Service Tax
Show AI Summary
Swachh Bharat Cess: not levied on service tax but imposed on the value of taxable services.
The Swachh Bharat Cess is not a cess on service tax but is imposed as a separate charge measured on the value of taxable services, rather than being calculated on the amount of service tax as was done for Education Cess and SHE Cess.
Circulars Service Tax
Show AI Summary
Service tax plus Swachh Bharat Cess yields a combined rate after SBC introduction, affecting taxable services.
The operative tax burden on taxable services equals the prevailing service tax rate plus the Swachh Bharat Cess, expressed in the FAQ as an additive formula (for example, service tax rate plus 0.5% SBC) to determine the overall effective rate after SBC's introduction.
Circulars Service Tax
Show AI Summary
Separate accounting code for Swachh Bharat Cess to be notified, creating distinct heads for collection, receipts, penalties and refunds.
Separate accounting codes for the Swachh Bharat Cess will be notified in consultation with the Principal Chief Controller of Accounts, establishing distinct minor head classifications to record cess Tax Collection, Other Receipts, Penalties and Deduct Refunds with corresponding numeric codes for government accounting.
Circulars Service Tax
Show AI Summary
Swachh Bharat Cess must be shown separately on invoices and accounted for independently from service tax.
Swachh Bharat Cess (SBC) is levied independently of service tax and must be charged, collected and paid separately; it should appear as a distinct line item on invoices (may be shown after service tax), be accounted for separately in books of account, and remitted under a separate accounting code, with treatment similar to education cesses.
Circulars Service Tax
Show AI Summary
Swachh Bharat Cess calculation mirrors service tax and is levied on the identical taxable value.
The Swachh Bharat Cess is computed using the same methodology as service tax and is levied on the identical taxable value applied for service tax, with no separate valuation base or distinct computation formula for the Cess.
Circulars Service Tax
Show AI Summary
Proceeds of Swachh Bharat Cess credited to Consolidated Fund of India, usable after parliamentary appropriation for sanitation initiatives.
Proceeds of the Swachh Bharat Cess are to be credited to the Consolidated Fund of India, and after parliamentary appropriation the Central Government may utilise such sums for financing and promoting Swachh Bharat initiatives or for related purposes.
Circulars Service Tax
Show AI Summary
Swachh Bharat cess imposed to finance and promote sanitation initiatives, obliging service providers to collect and remit the levy.
Imposition of Swachh Bharat Cess is a statutory levy on taxable services to generate revenue expressly for financing and promoting Swachh Bharat initiatives and related purposes, creating an obligation on service providers to collect and remit the cess so funds are available for the designated sanitation objectives.
Circulars Service Tax
Show AI Summary
Swachh Bharat Cess on exempted and negative list services is not leviable under the FAQ circular.
The circular clarifies that Swachh Bharat Cess is not leviable on services which are fully exempt from service tax and on services covered by the negative list, limiting the cess's chargeability to taxable services only.
Circulars Service Tax
Show AI Summary
Swachh Bharat Cess implementation date fixed as 15 November 2015 under notification appointing its commencement.
The Central Government appointed 15 November 2015 as the date on which provisions of the Swachh Bharat Cess come into effect, by notification No.21/2015 Service Tax dated 6 November 2015.
Circulars Service Tax
Show AI Summary
Swachh Bharat Cess applies as a service cess on taxable services, increasing service tax liability and compliance obligations.
Swachh Bharat Cess is a statutory cess levied as a service cess under Chapter VI of the Finance Act, 2015, imposed on all taxable services and collected in accordance with the Act's levy and collection provisions, thereby increasing service tax liability and requiring compliance with service tax accounting and remittance rules.
Manuals Income Tax
Show AI Summary
Advance Pricing Agreement requires modified returns and extends reassessment deadlines for affected assessment years by tax authorities.
Entry into an Advance Pricing Agreement fixing the arm's length price requires the taxpayer to file a modified return for each affected assessment year within three months from the end of the month in which the APA is executed. If an assessment was already completed, the Assessing Officer must reassess under the APA and complete that reassessment within one year from the end of the financial year in which the modified return is filed. If the assessment was pending, the Assessing Officer may complete it within an extended timeframe permitted for APA-related assessments.
Manuals Income Tax
Show AI Summary
PAN requirement for life insurance premium payments: quoting PAN mandatory when annual premiums meet statutory threshold.
A payer must quote PAN when annual payments of life insurance premium to an insurer aggregate to Rs. 50,000 or more, the aggregation determining whether the PAN quoting obligation is triggered as a compliance mechanism for identification and reporting of premium payments.
Manuals Income Tax
Show AI Summary
PAN requirement for mutual fund and share deposits triggers mandatory identification and reporting when payments reach the statutory threshold.
Quoting a Permanent Account Number (PAN) is mandatory for deposits into mutual funds and for share purchases when the payment amount is fifty thousand rupees or more, under the PAN provisions and implementing rules governing income-return and reporting obligations.
Manuals Income Tax
Show AI Summary
PAN requirement for foreign travel payments: cash disbursements above prescribed limit require PAN for travel, tour, or currency purchases.
A PAN must be furnished where a single-instance cash payment connected with travel to a foreign country exceeds the prescribed cash threshold; this covers cash payments for fare, payments to travel agents or tour operators, payments to authorized persons under foreign exchange law, and purchases of foreign currency, while excluding travel to neighbouring countries and specified pilgrimage locations.
Manuals Income Tax
Show AI Summary
Permanent Account Number requirement: PAN is mandatory for opening bank accounts under income tax rules with no monetary threshold.
Permanent Account Number (PAN) is mandatory for opening a bank account under the income tax statutory framework and implementing rules; the requirement applies generally and the source does not specify any monetary threshold limiting the obligation, reflecting PAN's function as an identification and compliance mechanism in return of income and assessment procedure contexts.
Manuals Income Tax
Show AI Summary
PAN requirement for securities transactions mandates furnishing PAN for deposits exceeding prescribed threshold to enable identity verification.
A PAN furnishing requirement applies to sale and purchase of securities: where consideration in a securities transaction exceeds the statutory high-value threshold, the person transacting must furnish their Permanent Account Number to the counterparty, implementing identity verification and enabling tax reporting obligations under the income-tax rules.
Manuals Income Tax
Show AI Summary
PAN requirement for time deposits: PAN must be furnished when a time deposit exceeds the prescribed regulatory threshold.
A PAN must be furnished when a depositor makes a time deposit with a bank, banking company, or banking institution that exceeds the prescribed monetary threshold; this imposes an identification and reporting obligation under the income tax PAN provisions and rules.
Manuals Income Tax
Show AI Summary
PAN requirement for immovable property transactions: PAN must be furnished where property value meets the statutory threshold.
A Permanent Account Number (PAN) must be furnished for sale or purchase of immovable property when the transaction reaches the statutory value threshold, as part of PAN-related obligations in return of income and assessment procedure; this requirement applies to parties to the transaction to ensure tax documentation and compliance.
Manuals Income Tax
Show AI Summary
Right to file revised return: no prior permission required and permission-application cannot substitute for revision.
No prior permission is required to file a revised return; the assessee has a right to submit a revised return. An application framed as seeking permission to revise the originally filed return cannot be treated as, or substitute for, a valid revised return, and therefore does not meet the statutory mechanism for revision.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

whatsapp Join Channel
Showing Results for : Reset Filters

Comparison of section 524 "Presumption as to assets, books of account, etc." 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 524 Presumption as to assets, books of account, etc

Income-tax Act, 2025

At a Glance

The documents are two textual versions of Clause/Section 524 dealing with presumptions as to assets, books of account and related items encountered during searches (s.247) or surveys (s.253) under the Income-tax enactment. One is the enacted Section 524 of the Income-tax Act, 2025 (Document 1) and the other is the older Bill version of Clause 524 (Document 2). The provisions affect taxpayers, investigating officers and the Department; effective/decision date is Not stated in the document.

Background & Scope

Statutory hooks: references in the texts to searches u/s 247, surveys u/s 253 and requisitioning officer u/s 248. Both texts set out presumptions that may be drawn "in any proceeding under this Act" where specified items are found in the possession or control of a person during search or survey. Definitions or extended explanations are Not stated in the document beyond the explicit list of items and the cross-references to sections 247, 248 and 253.

Statutory Provision Mode

Text & Scope

Coverage and elements (as stated in the Bill version, Document 2): Clause 524 provides that where any books of account, other documents, money, bullion, jewellery, virtual digital asset or other valuable article or thing is found in the possession or control of any person in the course of a search u/s 247 or survey u/s 253, it may, in any proceeding under this Act, be presumed-

  • (a) that such items belong to such person;
  • (b) that the contents of such books of account and other document are true;
  • (c) that signatures and parts purported to be in handwriting of a person are in that person's handwriting;
  • (d) in the case of a document stamped, executed or attested, that it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested (text includes a trailing phrase that is unclear: "article or thing belong or belongs to such person").

Sub-section (2) in both texts provides that if books/documents/assets have been delivered to the requisitioning officer u/s 248, the presumptions apply as if those items had been found in the possession/control of the person in the course of a search u/s 247.

Interpretation

The Bill text creates evidentiary presumptions in proceedings under the Income-tax enactment where enumerated items are found during statutory search/survey processes. The phrase "it may ... be presumed" indicates a statutory permissive presumption (a rebuttable presumption) rather than an absolute rule; the Bill's accompanying explanatory note (in the summary line) expressly describes the provision as providing "a rebuttable presumption." The operative context for the presumptions is "in the course of a search u/s 247 or survey u/s 253" and in "any proceeding under this Act."

Exceptions/Provisos

No exceptions, provisos, thresholds, or conditions beyond the cross-references to sections 247, 248 and 253 are specified in the Bill text. Any carve-outs or procedural safeguards are Not stated in the document.

Illustrations

  • Example 1: If during a search u/s 247, an assessor finds physical ledgers and jewellery in X's premises, Clause 524 permits a presumption that the ledgers and jewellery belong to X and that the ledger contents are true. (This follows from sub-clauses (a) and (b) of the Bill text.)
  • Example 2: If a stamped contract purportedly signed by Y is recovered in Y's control during a survey u/s 253, the contract may be presumed to be duly stamped and executed by Y per sub-clause (d). (Derived directly from the Bill text.)
  • Example 3: Not stated in the document. (No example involving electronic records is in the Bill text; the enacted Section 524, Document 1, includes such examples by reference to electronic information.)

Interplay

The clause expressly interfaces with: section 247 (search), section 253 (survey), and section 248 (requisitioning officer). There is an explicit mechanism in sub-section (2) treating items delivered to a requisitioning officer as if found during a search u/s 247. Interaction with rules, notifications or other circulars is Not stated in the document.

Differences Between the Two Provisions and Practical Impact

Key textual differences observed between the enacted Section 524 (Document 1) and the Bill/old Clause 524 (Document 2) are:

  • Inclusion of electronic information and computer systems: Document 1 expressly includes "any information in electronic form as defined in section 261(g) or on a computer system as defined in section 261(e) or any computer system containing the said information" among the items found and subject to presumptions. Document 2 omits any such express reference to information in electronic form or computer systems.
  • Additional presumption regarding electronic exchange: Document 1 contains a distinct clause (e) providing that "exchange of such information in electronic form, or on such computer system purported to be exchanged between any parties, is exchanged between the parties thereto." Document 2 lacks an equivalent clause.
  • Expanded specification of covered items: Document 1 repeats the list and explicitly connects "such information or computer system" to the presumptions in sub-clauses; Document 2 lists tangible/digital assets but does not incorporate electronic information/computer systems in the text of presumptions.
  • Stylistic/typographical differences: Document 2's clause (d) contains a textual anomaly-an apparent duplication or misplacement at the end ("...attested article or thing belong or belongs to such person"); Document 1's clause (d) is cleaner and constrained to the stamped/executed/attested document presumption.

Practical impact of those changes (as directly deduced from the texts):

  • Broader evidentiary reach: The enacted text (Document 1) extends statutory presumptions to information in electronic form and to computer systems containing that information. This broadens the class of items which, when found in the course of a search/survey, may be treated as belonging to the person and whose contents may be presumed true.
  • Specific presumption for electronic exchanges: The addition of clause (e) in Document 1 creates a statutory presumption that an electronic exchange recorded on a system was exchanged between the purported parties. This directly addresses evidentiary weight for electronic communications.
  • Increased evidentiary burden on the possessor: By expanding presumptions to electronic records and exchanges, the enacted provision, on its face, shifts the initial evidentiary position in proceedings-raising the threshold for a person in whose possession such records are found to rebut the presumptions. The Bill version provided a narrower scope.
  • Operational/forensic consequences for investigations: The statutory inclusion of computer systems and electronic information signals that material seized in digital form will attract the same presumptive weight as physical books/documents found; this has implications for digital forensics, custody, and chain-of-evidence practices (the text does not prescribe procedures; those are Not stated in the document).

Practical Implications

  • Compliance and risk areas: Under the Bill text, material found during searches/surveys attracts statutory presumptive weight for ownership, truth of ledger contents and authenticity of signatures. Taxpayers and their advisors should be aware that discovery of books/documents/assets during official actions can trigger presumptions in subsequent proceedings. The Bill version does not address electronic information specifically; the enacted text does-see the Differences section above.
  • Record-keeping/evidence points: The Bill text does not prescribe custody, notice, or forensic procedures; therefore, documentation of chain of custody, independent corroborating records and means to rebut presumptions will be relevant in practice. Specific requirements for handling or challenging electronic material are Not stated in the document.

Key Takeaways

  • Clause 524 creates rebuttable presumptions in proceedings under the Act where enumerated items are found during searches (s.247) or surveys (s.253).
  • Presumptions cover ownership, truth of book/document contents, handwriting/signature authenticity and proper stamping/execution/attestation of documents.
  • Sub-section (2) treats items delivered to the requisitioning officer under s.248 as if found in a search under s.247.
  • The Bill version (Document 2) does not expressly mention information in electronic form or computer systems; the enacted Section (Document 1) expands the scope to include electronic information and a presumption as to electronic exchange.
  • No procedural safeguards, timelines, or mechanisms for rebuttal are specified in the Bill text; such matters are Not stated in the document.

Full Text:

Section 524 Presumption as to assets, books of account, etc

Topics

Acts Income Tax