Loading...

⚠ ✕
❮ 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 ✕
🔎 Filters / Advanced Search ❯
TEXT

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
    Act Rules Bills
    limitation on Debt interest deduction as expenses in cross-border transactions : Clause 177 of Incom...
    Act Rules Bills
    Comprehensive framework for dealing with transactions with any notified jurisdictional areas : Claus...
    Act Rules Bills
    Anti-Avoidance Provisions in Securities Transactions : Clause 175 of the Income Tax Bill, 2025 Vs. S...
    Act Rules Bills
    Designed provisions to counteract tax avoidance schemes involving cross-border transactions : Clause...
    Act Rules Bills
    Important Definition within the framework of transfer pricing and anti-avoidance measures : Clause 1...
    Act Rules Bills
    Statutory Reporting & Penalties for persons entering into international and specified domestic trans...
    Act Rules Bills
    Revamped framework of the Transfer Pricing documentation & Penalties : Clause 171 of the Income Tax ...
    Act Rules Bills
    Harmonizing India's Secondary Adjustment Regime in Transfer Pricing : Clause 170 of the Income Tax B...
    Act Rules Bills
    Streamlining APA Implementation and Transfer Pricing Compliance : Clause 169 of Income Tax Bill, 202...
    Act Rules Bills
    Enhancing Certainty and Compliance in Transfer Pricing through Advance Pricing Agreements : Clause 1...
    Act Rules Bills
    Special provisions concerning the avoidance of tax, specifically empowering to Board to make "safe h...
    Act Rules Bills
    Role of the Transfer Pricing Officer in Ensuring Arm’s Length Compliance : Clause 166 of the Incom...
    Act Rules Bills
    Reframing Arm's Length Pricing in India's Evolving Transfer Pricing Regime : Clause 165 of the Incom...
    Act Rules Bills
    Meaning of Specified Domestic Transactions under Clause 164 of Income Tax Bill, 2025 Vs. Section 92B...
    Act Rules Bills
    Meaning of International Transaction : Clause 163 of the Income Tax Bill, 2025 Vs. Section 92B of th...
    Case Laws Income Tax
    Remuneration and interest received by an individual partner from a partnership firm can be subjected...
    Act Rules Bills
    Meaning of Associates Enterprise under Clause 162 of the Income Tax Bill, 2025 Vs. Section 92A of th...
    Act Rules Bills
    Computation of income arising from international transactions and specified domestic transactions : ...
    Act Rules Bills
    Future of Unilateral Agreement relief in India : Clause 160 of the Income Tax Bill, 2025 Vs. Section...
    Act Rules Bills
    Streamlining Double Taxation Relief and International Tax Agreements : Clause 159 of Income Tax Bill...
❮
❯
❯❯
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
Act Rules Bills
Show AI Summary
Interest deduction limitation restricts deductible interest to a fixed EBITDA ratio with carryforward relief and specified carve-outs.
Limitation on deductible interest in cross border related party financing restricts interest deductions where interest paid or payable by Indian entities to non resident associated enterprises is treated as excess interest, capped by a fixed ratio of the borrower's EBITDA and by interest payable to associated enterprises; disallowed amounts are carry forwardable subject to the same ratio, a deeming rule treats economically supported third party loans as associated enterprise debt, and specified carve outs apply to regulated financial entities and bona fide IFSC Finance Companies under operational rules.
Act Rules Bills
Show AI Summary
Transactions with non-cooperative jurisdictions: treated as international transactions, triggering transfer pricing scrutiny and denial of deductions.
Clause 176 creates a regime for transactions with persons in notified jurisdictional areas: government notification power; deeming parties as associated enterprises and transactions as international transactions for transfer pricing; disallowance of deductions absent prescribed authorisation and documentation; deeming unexplained receipts as assessable income; and mandatory higher withholding on payments to NJA persons, with broad definitions and anticipated procedural rules similar to Rule 21AC.
Act Rules Bills
Show AI Summary
Anti-avoidance in securities transactions deems income to the economic owner to prevent dividend and bonus stripping abuse.
Clause 175 establishes a deeming regime that treats dividends and interest received by an interposed holder as the income of the original economic owner where securities are transferred and subsequently reacquired, limits taxpayer liability where similar securities are acquired, apportions income for partial-year beneficial interest holders, provides exceptions if the taxpayer proves absence of avoidance, disallows losses from dividend and bonus stripping within prescribed acquisition and disposal windows, and treats disallowed bonus-related losses as cost adjustments for retained units.
Act Rules Bills
Show AI Summary
Deeming of income transferred to non-residents prevents tax avoidance by treating economic beneficiaries as taxable residents.
Clause 174 applies where a transfer of assets, before or after commencement, results in income payable to a non-resident, and where the transfer alone or with associated operations confers on any person rights that give the power to enjoy that income. Such income is deemed to be that person's income for all purposes; related capital sums are treated to prevent disguise as non-taxable receipts. Exceptions exist for bona fide commercial transactions, with the taxpayer bearing the burden to satisfy the assessing authority.
Act Rules Bills
Show AI Summary
Arm's length price principle reaffirmed and clarified in revised transfer pricing definitions, with expanded enterprise and transaction scope.
Clause 173 of the Income Tax Bill, 2025 restates and refines transfer pricing definitions: arm's length price as the benchmark between independent parties in uncontrolled conditions; an expansive definition of "enterprise" covering goods, IP, services, contracts, investments and securities (directly or via units/subsidiaries); "permanent establishment" as a fixed place of business; and "transaction" to include informal or non enforceable arrangements. The clause updates the "specified date" cross reference to the Bill's return filing provision and adopts more itemised drafting while maintaining substantive continuity with Section 92F.
Act Rules Bills
Show AI Summary
Accountant's report requirement: certified transfer pricing reporting mandated for international and specified domestic transactions, with prescribed form and timing.
Clause 172 requires every person entering into an international or specified domestic transaction in a tax year to obtain and furnish, by the specified date, a report from an accountant in the prescribed form, signed and verified as prescribed, setting forth such particulars as may be prescribed; the clause makes the obligation statutory, preserves applicability across taxpayer categories, and defers procedural form, verification and timing details to subordinate legislation while maintaining continuity with the existing reporting mechanics.
Act Rules Bills
Show AI Summary
Transfer pricing documentation: contemporaneous records required and rapid furnishing on demand to enhance transparency and enforcement.
Clause 171 mandates maintenance and furnishing of prescribed transfer pricing documentation by persons entering into international or specified domestic transactions and by constituent entities of international groups, while delegating the specific content, retention periods, thresholds and filing procedures to rules. It enshrines a ten day furnishing requirement with possible extension, cross references definitions to the Bill's reporting provisions, and anticipates master file, local file and country by country reporting formats, thereby consolidating and modernising existing documentary obligations.
Act Rules Bills
Show AI Summary
Secondary adjustment: statutory deemed advance and repatriation rule with alternative option to pay additional tax in lieu of interest.
Clause 170 mandates secondary adjustment where a primary transfer pricing adjustment of a prescribed monetary threshold increases income or reduces loss and excess money is not repatriated within the prescribed time; unrepatriated excess is deemed an advance to any non-resident associated enterprise and attracts notional interest computed as prescribed, with an alternative statutory option to pay an additional income-tax that is final and bars further credit or deduction.
Act Rules Bills
Show AI Summary
Advance Pricing Agreement application: modified returns must align tax assessments with agreed transfer pricing terms and timelines.
The statutory mechanism requires taxpayers to furnish a modified return limited to APA-impacted items within a prescribed post-agreement period, treats that filing as a return for assessment purposes, and directs assessing officers to modify completed assessments or complete pending proceedings in accordance with the APA; designated limitation and deeming provisions clarify timelines and the status of proceedings to ensure retrospective yet circumscribed implementation of the APA.
Act Rules Bills
Show AI Summary
Advance pricing agreements secure pre determination of arm's length pricing to enhance transfer pricing certainty and reduce disputes.
Clause 168 preserves the APA framework by empowering the Board, with Central Government approval, to determine the arm's length price or manner of attributing income to India for international transactions; to specify statutory and rule based methods (with adjustments); to make APAs prevail over general transfer pricing provisions; to bind both taxpayers and tax authorities for covered transactions; to permit rollback for prior years; and to declare APAs void ab initio for fraud or misrepresentation, with corresponding limitation period consequences and scheme making authority for procedural rules.
Act Rules Bills
Show AI Summary
Safe harbour rules mandate acceptance of declared transfer prices and deemed income, delivering taxpayer certainty while limiting administrative discretion.
Clause 167 empowers the Board to prescribe safe harbour rules under which income-tax authorities shall accept the transfer price or deemed income declared by the assessee for transactions falling within section 9(2) and arm's length price provisions, creating a statutory presumption that reduces administrative discretion and dependency on detailed rule-making to specify eligibility, thresholds, documentation, and procedural requirements.
Act Rules Bills
Show AI Summary
Arm's length pricing: multi year ALP option expands certainty and permits roll forward of transfer pricing determinations.
Clause 166 authorises the Assessing Officer to refer international and specified domestic related party transactions to a Transfer Pricing Officer for determination of the arm's length price, subject to prior approval; mandates notice, hearing, prescribed transfer pricing methods, and communication of the TPO order to AO and assessee; empowers the TPO to examine unreported transactions and to validate a taxpayer's option to apply a determined ALP to similar subsequent years, with rectification powers and corresponding AO amendment obligations, and permits issuance of Board guidelines to implement the multi year regime.
Act Rules Bills
Show AI Summary
Arm's length price determination: new clause refines methods and AO powers, emphasizing documentation and prescribed procedures.
Determination of Arm's Length Price requires selecting the most appropriate method from prescribed alternatives based on the transaction's nature, associated enterprise class, and functional analysis; where a single comparable price is found it is the arm's length price subject to a prescribed tolerance, while multiple prices must be reconciled in a prescribed manner. The tax authority may determine ALP during assessment if methods were not followed or documentation is inadequate, but must issue a show cause notice before adjustment; adjustments permit recomputation of total income and restrict deductions on enhanced income, with safeguards to prevent double adjustment.
Act Rules Bills
Show AI Summary
Specified domestic transaction: extending transfer pricing to high-value related-party domestic dealings, subject to arm's length compliance.
Clause 164 defines specified domestic transaction by enumerating categories of non-international related-party dealings brought under transfer pricing when aggregate annual value exceeds a high-value threshold, includes a residual prescription power to notify additional transactions, and requires contemporaneous documentation and benchmarking to ensure compliance with the arm's length principle.
Act Rules Bills
Show AI Summary
International transaction scope expanded broadens transfer pricing coverage to intangibles and indirect dealings, including restructuring and financing arrangements.
Clause 163 defines international transaction expansively to include tangible and intangible property (expressly including transfer), capital financing, services, business restructuring, cost sharing and any transaction affecting profits, income, losses or assets; it reproduces an illustrative list of intangibles and contains a deeming rule treating dealings with third parties as international transactions where terms are determined with or pursuant to an associated enterprise, thereby widening transfer pricing coverage and anti avoidance reach.
Case Laws Income Tax
Show AI Summary
Presumptive taxation: partner remuneration and interest cannot be treated as individual business turnover for presumptive tax purposes.
Section 44AD applies only where the assessee carries on an eligible business and has actual turnover or gross receipts attributable to that assessee. Remuneration and interest paid by a partnership firm to a partner arise from the firm's accounts and partnership agreement; although Section 28(v) taxes such receipts in the hands of the partner, that deeming does not convert them into the partner's turnover or gross receipts for Section 44AD. Section 40(b) governs firm deductibility but does not create an independent business activity in the partner; hence such receipts cannot be subjected to Section 44AD presumptive taxation.
Act Rules Bills
Show AI Summary
Associated enterprise definition expands transfer pricing scope to include specified domestic transactions and indirect control.
Clause 162 defines associated enterprise through a general limb covering direct or indirect participation in management, control or capital and a list of deeming provisions-equity thresholds, significant loans and guarantees, board control, dependence on intangibles, supply and sales dependence, and familial/HUF control-while expressly extending the concept to specified domestic transactions and retaining prescribed catch-all and subjective influence tests that may require further guidance.
Act Rules Bills
Show AI Summary
Arm's length price requirement drives transfer pricing adjustments to prevent profit shifting and protect the tax base.
Clause 161 mandates computation of income and the allowance of expenses or interest for international and specified domestic transactions among associated enterprises with reference to the arm's length price, requires arm's length allocation for shared costs or services, and prohibits transfer pricing adjustments that would reduce taxable income or increase losses, thereby strengthening scrutiny of intra group cost allocations and deductions to prevent profit shifting.
Act Rules Bills
Show AI Summary
Unilateral double taxation relief limits credit to the lower of domestic or foreign tax rates and requires proof of foreign tax payment.
Clause 160 provides unilateral relief for Indian residents and non-resident partners taxed on foreign income where no DTAA exists, limited to the lower of the Indian tax rate or the foreign tax rate, requires proof of foreign tax payment, and defines key terms to include excess profits or business profits taxes; it modernizes terminology and omits a prior country-specific carve-out, while raising evidentiary and computational ambiguities.
Act Rules Bills
Show AI Summary
Double taxation relief framework modernised: new clause clarifies treaty adoption, anti abuse safeguards, and documentation requirements.
Clause 159 empowers the Central Government to enter into and adopt agreements with foreign countries and notified specified territories, and permits specified domestic associations to enter into sectoral agreements subject to governmental adoption and notification. Agreements may provide relief from double taxation, avoidance of double taxation constrained by anti abuse safeguards, exchange of information to prevent evasion, and mutual assistance in tax recovery. The Act's provisions apply to the extent more beneficial to the taxpayer, but anti abuse measures in Chapter XI apply notwithstanding such benefit. Non residents must furnish a certificate of residence and prescribed documentation to claim treaty relief.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

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