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
    Manuals Income Tax
    Example:-X is employed by a company. He has been provided a car (1200cc) owned by employer, cost of ...
    Manuals Income Tax
    Example:- X, a director-employee of a private sector company based at Indore (population: 24Lakhs),...
    Manuals Income Tax
    Example:-X, an employee of ABC Ltd., posted at Ajmer (population: 18 Lakh), draws ₹ 3,00,000 a...
    Manuals Income Tax
    Example:-X has received following amount during the previous year. Basic Salary 7,000 p.m.; Dearness...
    Manuals Income Tax
    Example:-Mr. X received voluntary retirement compensation of ₹ 7,00,000 after 30 years 4 month...
    Manuals Income Tax
    Example:-Mr. X received retrenchment compensation of ₹ 10,00,000 after 30 years 4 months of se...
    Manuals Income Tax
    Example:-Mr. X retired from ABC Ltd. on 11th March 2014 after serving for 30 years and 11 months and...
    Manuals Income Tax
    Example:-X retires from B Ltd. on 31st July, 2014. He gets pension of ₹ 1,000 per month up to ...
    Manuals Income Tax
    Example:-An employee of X Ltd. retires on 10th March, 2015 after service of 26 years and receives &#...
    Manuals Income Tax
    Example:-X, an employee of A Ltd., receives ₹ 62,000 as gratuity (he is covered under the Paym...
    Manuals Income Tax
    Example:- X, an employee of Central Govt., receives 9,20,000 as gratuity at the time of his retirem...
    Case Laws Central Excise
    Applicability of a Circular issued by the Board - Prospective or Retrospective - Demand of duty prio...
    Manuals Service Tax
    Whether there is any provision regarding refund of application fee if applicant withdraw the applica...
    Manuals Service Tax
    Whether Advance Ruling Authority can reconsider or review its own order after giving final answer on...
    Manuals Service Tax
    Whether Advance Ruling application can be filed for a question related to Circular issued by the Cen...
    Manuals Service Tax
    Whether a Government company can apply for a advance ruling ? if yes, whether subsidiary of a govern...
    Manuals Service Tax
    Whether appeal can be filed against the order of Advance Ruling Authority ? If no, whether there is ...
    Manuals Service Tax
    Whether an appeal can be filed by the person on an entirely different ground, in whose favour decisi...
    Manuals Service Tax
    Whether appeal filed by the person other than aggrieved party is maintainable?
    Manuals Service Tax
    Whether an appeal can be restored by filing fresh appeal which was earlier rejected on some grounds?
❯❯
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
Manuals Income Tax
Show AI Summary
Perquisite valuation of employer provided motor car treats engine capacity, driver cost, recoveries and private use depreciation.
Perquisite valuation for employer provided motor cars uses a fixed monthly valuation for car and driver where engine capacity falls below the higher threshold; recoveries from the employee do not reduce that fixed valuation. If the vehicle is used exclusively for private purposes, the taxable perquisite is calculated as annual depreciation plus petrol, driver and maintenance costs, minus any amount recovered from the employee.
Manuals Income Tax
Show AI Summary
Rent-free accommodation valuation: taxable value is the lower of a percentage of salary or employer-paid rent for perquisite computation.
Taxable value of a rent-free accommodation perquisite is the lower of (a) 15% of salary (computed as basic salary plus DA plus commission) and (b) employer paid annual rent. In the example the aggregated annual basic, DA and commission are used to calculate the 15% benchmark, which is then compared with the annual lease rent to determine the taxable perquisite.
Manuals Income Tax
Show AI Summary
Taxable value of rent-free accommodation set at a percentage of salary when city population exceeds threshold.
Taxable perquisite for rent free accommodation is computed by applying the population based percentage to Salary, defined to include Basic, DA (forming part of salary) and Commission; the taxable value equals the prescribed percentage of that aggregated salary.
Manuals Income Tax
Show AI Summary
House Rent Allowance exemption under section 10(13A) requires choosing the minimum of three salary-based tests to determine taxable HRA.
The exemption under section 10(13A) and Rule 2A is the minimum of actual HRA received, rent paid in excess of ten percent of salary, and the prescribed percentage of salary. In the example actual HRA is 36,000; excess rent over ten percent of salary is 26,400; forty percent of salary is 38,400. The exempt amount is therefore 26,400 and the remaining 9,600 is included in gross salary.
Manuals Income Tax
Show AI Summary
Voluntary retirement compensation tax treatment: exemption limited by statutory ceiling formulas; excess is treated as taxable salary.
Computation of taxability of voluntary retirement compensation is governed by a statutory exemption limited by prescribed ceiling formulas and the principle that the exempt amount is the lesser of specified sums. In the example, compensation received of 700,000 gives an exempt amount of 500,000 under the statutory ceiling, leaving 200,000 as taxable salary under the governing exemption provision and associated rules.
Manuals Income Tax
Show AI Summary
Retrenchment compensation exemption under Sec. 10(10B): apply least-of-three test for calculating taxable retrenchment; excess taxable.
Computation of retrenchment compensation exemption under Sec. 10(10B): compute the three comparator sums using the employee's service length and salary components, take the least of those sums as exempt. In the example the exempt amount is Rs. 4,32,692 and the remaining Rs. 5,67,308 of the retrenchment payment is taxable.
Manuals Income Tax
Show AI Summary
Leave salary exemption under section 10(10AA) limited by average salary and statutory caps, yielding the lowest applicable ceiling.
Computation of leave salary exemption under section 10(10AA) requires determining average salary by annualising ten months' basic pay plus the proportion of dearness allowance included for retirement benefits and dividing by ten. Unavailed leave months equal total entitlement minus leaves taken and leaves earlier encashed. The exempt leave salary is the least of (unavailed months x average salary), (ten months' average salary), and the statutory ceilings; the example selects the lowest applicable ceiling as exempt.
Manuals Income Tax
Show AI Summary
Commuted pension tax treatment: part exempt, part taxable; exemption reduced where gratuity is received.
Uncommuted pension is fully taxable as salary; commuted pension is partly exempt and partly taxable. Compute a notional full pension value from the commuted payment and apply an exemption fraction: if no gratuity is received, one half of the notional full pension value is exempt; if gratuity is received, one third is exempt. The remainder of the commuted payment is chargeable to tax as salary and must be added to taxable uncommuted pension to determine total taxable pension income.
Manuals Income Tax
Show AI Summary
Gratuity exemption: least of three test determines exempt portion for noncovered employers; excess gratuity is taxable.
Gratuity from a noncovered employer is exempt to the extent of the least of three amounts: the service based fraction computed from the average monthly salary (which includes basic pay, one month's dearness allowance, and average monthly commission), the statutory monetary ceiling, and the gratuity actually received; any excess over that exempt amount is taxable.
Manuals Income Tax
Show AI Summary
Gratuity exemption: part determined by 15 days salary times completed years, excess treated as taxable salary.
Gratuity exemption is determined by taking the least of: the product of 15 days' salary and completed years of service, the statutory ceiling, and the gratuity received. Completed years may be rounded to include qualifying months. The exempt portion is that least amount; any excess over the exempt amount is taxable as salary income in the assessment year.
Manuals Income Tax
Show AI Summary
Gratuity exemption under Section 10(10)(i) remains available even if retiree accepts private sector employment after retirement.
Gratuity paid to a government employee on retirement is fully exempt from income tax under the governing gratuity exemption provision, and that exemption remains available even if the retiree subsequently accepts employment in the private sector.
Case Laws Central Excise
Show AI Summary
Prospective effect of administrative circulars: "henceforth" signals non-retrospective application, barring past-duty demands.
When the Board uses language such as "henceforth" a circular is to be treated as having prospective effect; consequently, if the Board did not intend retrospective application, the circular cannot support demands for duties predating its issuance.
Manuals Service Tax
Show AI Summary
Refund of application fee: advance ruling applications are not refundable even if the applicant withdraws the application.
There is no statutory or regulatory provision permitting refund of fees paid for advance-ruling applications; fees are retained and not returned on withdrawal, a position noted in the Service Tax Practice Manual and reflected in the Authority for Advance Rulings decision cited.
Manuals Service Tax
Show AI Summary
Advance ruling review barred except when ruling procured by fraud or misrepresentation, enabling annulment under law.
The Authority for Advance Rulings lacks jurisdiction to reconsider or review its own ruling absent a substantiated mistake of law or fact or a mistake apparent from the record warranting rectification or amendment under the procedural regulations; however, a previously announced ruling may be declared void ab initio if it is shown to have been obtained by fraud or misrepresentation of facts.
Manuals Service Tax
Show AI Summary
Advance ruling jurisdiction excludes Board circulars; notifications by the government are distinct and control admissibility.
Advance ruling jurisdiction does not extend to Board circulars because the statute expressly contemplates government notifications for advance-ruling purposes while omitting circulars; the power to issue circulars is conferred on the Board under the Central Excise framework made applicable to service tax, whereas notification-making power in the service-tax provisions is vested in the Central Government, producing a statutory limitation on advance-ruling admissibility.
Manuals Service Tax
Show AI Summary
Government company eligibility for advance ruling confirmed; subsidiaries retain separate legal personality and may also apply.
A government company is eligible to apply for an advance ruling and a subsidiary of a government company may also file because the holding company and each subsidiary are separate legal entities with independent rights to apply; a step-down subsidiary falls within the definition of an applicant, rendering its advance-ruling application maintainable.
Manuals Service Tax
Show AI Summary
Writ remedy against advance rulings where no statutory appeal exists; seek High Court review under constitutional writ jurisdiction.
No statutory appeal exists against orders of the Advance Ruling Authority; the available remedial route is a writ petition invoking constitutional writ jurisdiction in the appropriate High Court. The Supreme Court has indicated parties should approach the High Court rather than seek direct original jurisdiction at the apex court, and courts are urged to allocate and expedite fiscal writ matters.
Manuals Service Tax
Show AI Summary
Appeal on new grounds barred where party lacks aggrievement; omitted issues may be raised later upon arising.
An appellant cannot maintain an appeal on entirely new grounds if the assessing or appellate authority has approved the assessee's classification or fully allowed the revenue's prayer, because there is no aggrievement; however, issues not considered by the tribunal may be agitated later when a cause of action arises.
Manuals Service Tax
Show AI Summary
Locus standi limits: only aggrieved private parties may challenge tax notices; third-party appeals are not maintainable.
Only the private operators against whom tax notices are issued possess the requisite standing to challenge those notices; third parties lack authority to prosecute appeals or writs on their behalf, and challenges must be instituted by the directly aggrieved parties through the statutory remedy, who may then raise all issues available to them in accordance with law.
Manuals Service Tax
Show AI Summary
Finality of tribunal orders bars fresh appeals, preventing restoration by filing a new appeal against the same order.
When an appeal has been rejected by the Tribunal there is no scope for entertaining an application for restoration by filing a fresh appeal in respect of the same order; similarly, once a Tribunal order has become final for lack of further appeal, the finality of orders precludes fresh appeals challenging that same order.

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