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
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
    Electronic Communication (E-Service) of Show Cause Notices on the GST Portal: Limits of Validity and...
    Electronic Credit Ledger and Revenue Protection: A Strict Construction of Rule 86A under the CGST Re...
    Case LawsIncome Tax
    Search, Seizure, and Total Income: Interpreting Section 153A in Light of Incriminating Material - 20...
    Case LawsCustoms
    Writ Jurisdiction and Alternative Remedies: Bypassing Statutory Mechanisms: Limits of Article 226 Wh...
    Input Tax Credit (ITC) denial on Share Buybacks under GST: Furtherance of Business vs. Statutory Exc...
    Deeming Fictions and ITC Reversal: Gujarat AAAR on Mutual Fund Transactions as Exempt Supplies
    Show Cause, Don't Pre-Determine: Judicial Scrutiny of Section 74 Notices under the TNGST Act / CGST ...
    Case LawsBenami Property
    Benami Attachments and the Collapse of Precedent: Tribunal's Response to the Ganpati Dealcom Review
    Case LawsCentral Excise
    Dead Credits and Transitional Limits: CESTAT Larger Bench on Refund of Education and Krishi Kalyan C...
    Case LawsMoney Laundering
    Judicially Crafted SOP: Kerala High Court on Bank Powers to Freeze Suspicious Accounts under PMLA
    Case LawsIncome Tax
    Computer-Aided Scrutiny: Invalid Scrutiny Notices and CBDT Instructions: ITAT Kolkata Quashes Assess...
    Case LawsCustoms
    High Speed Diesel or Base Oil? Scientific Evidence, Expert Opinion and Tariff Interpretation under C...
    Case LawsIncome Tax
    Characterisation of Aircraft Leases under the India-Ireland DTAA: Operating Lease, Financial Lease, ...
    Case LawsMoney Laundering
    Cognizance, Custody and Complaints under PMLA: The Supreme Court's Integration of BNSS and CrPC Norm...
    Case LawsIncome Tax
    Rental of Aircraft in International Traffic: Dry Leasing and Permanent Establishment: Article 8(1) o...
    Case LawsIncome Tax
    MLI, PPT and Aircraft Leasing: Operating vs. Finance Lease and PE Risk in Aircraft Leasing: Reassess...
    E-Way Bills, Expiry and Intent (Mens Rea): Reassessing GST Penalties: Reading Sections 129 and 130 i...
    Case LawsMoney Laundering
    Arrest, Presumption, and Proceeds of Crime: A Holistic Analysis of PMLA Bail Jurisprudence in a GST-...
    Case LawsCustoms
    Classification of Wheel Loaders under Heading 8429: From Practice to Principle: Mining Use, HSN Note...
    Case LawsIncome Tax
    Limits of Revisional Jurisdiction: Adequate Enquiry, Limited Scrutiny, and the Proper Use of Section...
❯❯
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
    Case LawsGST
    Show AI Summary
    Electronic service of GST show cause notices must be in the prescribed portal location to ensure a real opportunity to be heard.
    Uploading an SCN only under a secondary portal compartment, rather than the primary prescribed location, does not constitute due communication; where an adverse decision is contemplated the Proper Officer must afford an opportunity of hearing, and defective electronic service that prevents participation vitiates the ensuing adjudication, permitting writ intervention to set aside and remit for proper notice and hearing.
    Case LawsGST
    Show AI Summary
    Electronic Credit Ledger blocking permitted only up to ITC actually available; negative balances and extra statutory recovery are impermissible.
    Rule 86A may be invoked only where input tax credit is actually available in the Electronic Credit Ledger at the time of the blocking order; the power permits disallowing debit equivalent to such available credit as a temporary preventive measure and does not authorize creation of negative ledger balances or serve as a recovery provision. Excess blocking beyond the ECL balance is ultra vires and recovery must proceed under the Act's substantive provisions.
    Case LawsIncome Tax
    Show AI Summary
    Search assessments under section 153A permit full reassessment for abated years but limit reopened completed years to incriminating search material.
    Section 153A's assessment power is search-linked: for abated years the AO may reassess total income afresh, but for completed/unabated years additions under section 153A are permissible only where specific incriminating material relating to that year is found during the search; absent such material, disturbance of a completed assessment must proceed, if at all, under sections 147-148 subject to their conditions.
    Case LawsCustoms
    Show AI Summary
    Customs appeals: High Court writs are generally restrained where a statutory High Court remedy exists and limitation lapsed.
    Where a statute provides a remedy to the High Court itself, the High Court will ordinarily decline writ intervention under Article 226 to avoid bypassing the statutory machinery; a litigant who has by his own default allowed the statutory limitation for a reference or appeal to lapse cannot ordinarily rely on Article 226 to cure that lapse, and claims of tribunal non consideration demand clear, specific, verified pleadings.
    Case LawsGST
    Show AI Summary
    Share buybacks and GST: expenses tied to buybacks are not eligible for ITC, and common ITC must be reversed.
    The authority held that shares are "securities" excluded from "goods" and "services," but section 17(3) and the Chapter V rules treat "transactions in securities" as part of the "value of exempt supply" for ITC apportionment; therefore GST paid on expenses directly related to a share buyback is not eligible as ITC under section 16(1), and common ITC attributable to both taxable operations and the buyback must be reversed using the prescribed deeming values.
    Case LawsGST
    Show AI Summary
    Mutual fund redemptions require proportionate ITC reversal under GST deeming provision; valuation set at 1% of sale value.
    A statutory deeming provision includes transactions in securities within the value of exempt supply for ITC apportionment; the Explanation to the input tax credit rules fixes the value of a security at 1% of its sale value, and redemption of mutual fund units is treated as a sale for this limited valuation purpose, requiring proportionate ITC reversal where common inputs serve both taxable operations and such investment transactions.
    Case LawsGST
    Show AI Summary
    GST extended-period proceedings require show cause notices to allege and disclose fraud or wilful misstatement.
    Extended limitation under GST is available only where the tax shortfall is "by reason of" fraud, wilful misstatement or suppression to evade tax; these are jurisdictional facts. Show cause notices must allege such conduct and disclose the material basis for that inference, and must specify proposed amounts without language of final determination. Invocation of extended limitation without these ingredients vitiates proceedings and precludes remand; authorities may pursue recovery under the normal limitation where applicable.
    Case LawsBenami Property
    Show AI Summary
    Benami property orders grounded on a recalled precedent must be re-adjudicated without treating that precedent as binding.
    The Tribunal held that where an adjudicatory order under the PBPTA is substantially founded on a Supreme Court judgment that has been recalled on review, that order cannot stand; the correct remedial course is to set aside and remit for de novo adjudication so the Adjudicating Authority may re-examine evidence and apply the law without treating the recalled Ganpati Dealcom decision as binding on the question of the amendments' temporal applicability.
    Case LawsCentral Excise
    Show AI Summary
    Transition of cess credits: abolished cess balances are dead credits, not eligible for GST transition or cash refunds.
    Unutilised Education Cess, Secondary & Higher Education Cess and Krishi Kalyan Cess balances whose utilisation was limited to the same cess and whose levies were abolished became dead CENVAT credits; they were not eligible for transition under the exhaustive list in Section 140 and its Explanations, and Section 142(3) only prescribes payment in cash where refund is otherwise due under existing law, not a new substantive right to refund or a means to evade pre GST limitation.
    Case LawsMoney Laundering
    Show AI Summary
    Bank account freezes: limited temporary freezes permitted on reasonable suspicion, with strict notice, review and three month cap.
    A narrow implied power exists for banks to impose a temporary debit freeze without prior notice when there are reasonable grounds to suspect use of an account for money laundering or cyber fraud; this power must be exercised with same day communication to the accountholder, mandatory intimation to investigative authorities with proof, a one week window for accountholder explanation and bank decision, and a maximum three month continuation absent directions from competent authorities, after which the freeze must be lifted and access to the credit balance restored.
    Case LawsIncome Tax
    Show AI Summary
    Section 143(2) notices not following CBDT formats invalidate ensuing scrutiny assessments; computer generation does not cure the defect.
    A scrutiny notice that does not conform to CBDT-prescribed formats-specifically by failing to specify whether selection is for limited, complete, or compulsory manual scrutiny-is not a valid jurisdictional notice; non compliance with the binding CBDT Instruction vitiates the Assessing Officer's authority and renders any consequent scrutiny assessment void ab initio. Computer generation of the notice does not cure the defect. A pure legal challenge to such notice validity may be admitted at the appellate stage where no new facts are required.
    Case LawsCustoms
    Show AI Summary
    Imported petroleum product: partial testing and non categorical reports cannot sustain classification as high speed diesel under tariff rules.
    Classification requires evidence addressing all IS 1460:2005 parameters or, where full conformity is lacking, a Rule 4 "most akin" analysis showing closest resemblance among candidate headings based on reliable, reasoned laboratory results and expert opinion; partial testing or non categorical reports do not suffice to support penal or confiscatory measures.
    Case LawsIncome Tax
    Show AI Summary
    Aircraft leases with no purchase option and retained lessor title remain operating leases, not interest-bearing financings.
    Where aircraft lease documentation preserves legal title in the lessor, imposes a return obligation without any purchase option or residual-payment mechanism, and regulatory treatment aligns with operating-lease norms, the arrangement constitutes an operating lease; absent an enforceable transfer of ownership to the lessee at term end, lease rentals cannot be re-characterised as interest for treaty purposes merely because of lease tenure or finance-like pricing.
    Case LawsMoney Laundering
    Show AI Summary
    PMLA complaints: BNSS imposes mandatory pre-cognizance hearing, affecting cognizance and arrest powers in money laundering cases.
    PMLA complaints are now governed by the general complaint-cognizance framework and, for complaints filed after BNSS commencement, by the corresponding BNSS provisions; the BNSS proviso requiring that the accused be given an opportunity to be heard before cognizance is mandatory, and failure to provide that opportunity invalidates the cognizance order. A scheduled predicate offence is a condition precedent to the existence of proceeds of crime and hence to PMLA liability, and once cognizance is taken, enforcement agencies' unilateral arrest powers against named accused are curtailed pending court-authorised custody.
    Case LawsIncome Tax
    Show AI Summary
    Aircraft leasing: treaty text treats rental income as taxable in the lessor's residence when aircraft form part of international traffic.
    Whether leased aircraft create a fixed place Permanent Establishment depends on the disposal test: operational control and the right to use and conduct business from the place must vest in the enterprise; mere ownership and protective inspection or repossession rights do not suffice. Profit attribution to any alleged PE requires a FAR based arm's length analysis under Article 7(2), and Article 8(1)'s express inclusion of "operation or rental" covers rental income from aircraft forming part of a fleet used in international traffic, allocating taxing rights to the State of residence.
    Case LawsIncome Tax
    Show AI Summary
    Aircraft leasing: MLI PPT not applicable without section 90(1) notification; operating leases and Article 8(1) allocate rental tax to Ireland.
    The Tribunal ruled that Articles 6-7 of the MLI cannot be applied against the India-Ireland DTAA without a specific section 90(1) notification; alternatively, the Revenue failed to show PPT-based abuse. Contractual and regulatory analysis classified the transactions as operating leases; no fixed place PE existed in India; and Article 8(1) allocates taxing rights on rental of aircraft in international traffic to Ireland.
    Case LawsGST
    Show AI Summary
    E-way bill expiry alone cannot prove intent to evade tax; penalties require material indicating actual evasion.
    Expiry or non-generation of an e-way bill, by itself, does not establish intent to evade tax; penal action for movement in contravention requires material indicating diversion, mis-declaration or other indicia of tax risk. Where genuine invoices, correct particulars and evidence explaining delay exist and any fresh e-way bill is produced prior to final orders, authorities must record reasoned findings on intent; absent such material, detention, seizure and confiscation regime cannot be sustained and such misapplication is reviewable on certiorari.
    Case LawsMoney Laundering
    Show AI Summary
    PMLA bail in GST-ITC syndicate case: High Court upholds arrest validity and denies bail under twin conditions.
    The High Court held the PMLA arrest valid because the authorised officer recorded written reasons to believe and furnished written grounds of arrest; it found prima facie involvement in money laundering from corroborated banking, corporate and recorded-statement evidence establishing foundational facts of proceeds of crime; the statutory presumption applied and shifted the burden to the accused; and the mandatory twin bail conditions were not satisfied given the alleged magnitude, sophistication and continuing nature of the GST-ITC fraud, so regular bail was refused.
    Case LawsCustoms
    Show AI Summary
    Wheel loaders classification: tribunal finds front end shovel loaders heading applies; no penalties without mala fide intent.
    Self propelled wheeled machines with front mounted buckets are classifiable under TI 8429 5100 as front end shovel loaders regardless of mining use; invocation of the extended period u/s 28(4) requires evidence of collusion, wilful mis statement or suppression with intent to evade duty, and long standing departmental acceptance plus full disclosure negates mala fides; misclassification or wrong exemption claim alone does not justify confiscation u/s 111(m) or penalties u/ss 114A/114AA without proof of knowingly false description or fraudulent conduct.
    Case LawsIncome Tax
    Show AI Summary
    Income tax revisional jurisdiction: if AO investigated, PCIT must decide merits or record specific investigative failure, not remand.
    Where the Assessing Officer has conducted enquiries and accepted the assessee's explanation, the revisional authority cannot remand the assessment on a generic claim of inadequate enquiry; it must either record an abject failure to investigate with specific findings or decide the issue on merits in the revisional order and demonstrate error and prejudice.

    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 SCHEDULE VIII "INCOME NOT TO BE INCLUDED IN THE TOTAL INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS" between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      18 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      SCHEDULE VIII - INCOME NOT TO BE INCLUDED IN THE TOTAL INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS

      Income-tax Act, 2025

      At a Glance

      SCHEDULE VIII (Bill, Old Version) lists categories of income that are excluded from the total income of political parties and electoral trusts for income-tax computation. It matters to registered political parties and electoral trusts, and to donors and tax authorities concerned with compliance and reporting. The document does not state an effective date. Not stated in the document.

      Background & Scope

      Statutory hook: "See section 12" (SCHEDULE VIII). The Schedule sets out a Table with three columns: (B) Income not to be included in total income, (C) Eligible persons, and (D) Conditions. The Schedule covers two entries: (1) certain incomes (house property, other sources, capital gains, and voluntary contributions) for political parties registered u/s 29(a) of the Representation of the People Act, 1951; and (2) voluntary contributions for electoral trusts. The Schedule contains a Note defining "electoral bond" by reference to the Explanation to section 31(3) of the Reserve Bank of India Act, 1934. The Schedule provides enumerated conditions attached to each exclusion. No other definitions or extended explanations are provided. Not stated in the document: legislative intent beyond the text; effective date; interaction with other income-tax provisions beyond the internal cross-references provided.

      Statutory Provision Mode

      Text & Scope

      The Schedule exempts specified categories of income from inclusion in total income for eligible political parties and electoral trusts. For political parties (registered u/s 29(a) of the Representation of the People Act, 1951), the exempt incomes include: income chargeable under "Income from house property," "Income from other sources," "Capital gains," and "any income by way of voluntary contributions received from any person." For electoral trusts, the exempt income is "any voluntary contributions received."

      Coverage is limited to "eligible person" as defined in column C of the Table; eligibility for a political party is tied to registration under the cited section; for an electoral trust, the table simply identifies "An electoral trust." The Note supplies a cross-statutory definition relevant to electoral bonds.

      Interpretation

      The Schedule conditions the exemption on compliance requirements contained in column D. The text indicates a legislative intent to condition tax benefits on maintenance of records, audit, restricted modes of receipt for small donations, reporting obligations under the Representation of the People Act, and, for electoral trusts, distribution and regulatory compliance. The use of cross-references to specific sections of the Representation of the People Act suggests a statutory integration of electoral reporting and income-tax treatment. The Schedule uses prescriptive compliance criteria rather than blanket immunity, signalling a policy to incentivise transparency and traceability of political funding.

      Exceptions/Provisos

      Clause (d) caps small-donation anonymity: "no donation exceeding Rs. 2,000 is received ... otherwise than by an account payee cheque ... or through electoral bond." Thus donations <= Rs. 2,000 may be received in other modes; donations > Rs. 2,000 must be through specified financial instruments. Clause (b) requires a record of voluntary contributions other than electoral bonds in excess of Rs. 20,000, including the name and address of the contributor. For electoral trusts, clause (a) mandates distribution of 95% of aggregate donations in the tax year (plus any earlier surplus) to political parties during that tax year. Clause (b) requires that the electoral trust function according to Central Government rules.

      Illustrations

      • Example 1: A registered political party receives Rs. 50,000 as a voluntary contribution by cheque and has maintained books, audited accounts, kept contributor records where required, submitted the report u/s 29C(3), and filed the tax return as required. The contribution would be excluded from total income under the Schedule subject to compliance. (Derived from clauses (a)-(f).)
      • Example 2: An electoral trust receives Rs. 1 crore in donations in the tax year and distributes Rs. 95 lakh to registered political parties during that year and functions per Central Government rules. The Rs. 1 crore of voluntary contributions is not included in total income under the Schedule, assuming compliance. (Derived from electoral trust clauses.)
      • Example 3: A political party receives a cash donation of Rs. 5,000 in hand (i.e., not by cheque or electronic mode). Under clause (d) such a receipt would contravene the prohibition (since exceeding Rs. 2,000 received otherwise than by specified modes), potentially jeopardising the exemption for that donation or the party's entitlement under the Schedule. (Derived from clause (d).)

      Interplay

      The Schedule cross-references provisions of the Representation of the People Act (section 29(a); section 29C(3)) and the Reserve Bank of India Act (Explanation to sub-section (3) of section 31). It also requires compliance with section 263(1)(a)(iii) for return furnishing. No other Rules/Notifications/Circulars are cited in the Bill text beyond the general reference that electoral trusts must function as per Central Government rules. The Schedule thus relies on external statutory and regulatory instruments for definitional and compliance content. Specific interaction details (e.g., precedence where Schedule conditions conflict with other tax provisions) are Not stated in the document.

      Differences Between the Two Versions and Practical Impact

      • Reference to Representation of the People Act-Section numbering: The Bill (Old Version) refers to a political party "registered u/s 29(a) of the Representation of the People Act, 1951," whereas the Act text (Income-tax Act, 2025) refers to a political party "registered u/s 29A of the Representation of the People Act, 1951."
        • Practical impact: The Act version corrects or alters the cross-reference. If the Bill reference (29(a)) was erroneous, the Act version aligns the income-exemption to the correct statutory registration provision, avoiding uncertainty about eligible entities. This is a drafting/clarificatory change; no substantive shift to eligibility is apparent from the texts themselves.
      • Prescription language regarding electronic mode: The Bill uses the phrase "as prescribed" in clause (d) (Bill: "as prescribed"), while the Act uses "as may be prescribed" (Act: "as may be prescribed").
        • Practical impact: Minimal substantive difference; "as may be prescribed" is the more conventional enabling language for delegated legislation, clarifying that the electronic modes will be specified by rule-making authority. It likely strengthens the permissive legislative footing for future rules.
      • Return filing cross-references and due dates: The Bill requires the political party to furnish a return "as per the provisions of section 263(1)(a)(iii) on or before the due date under that section." The Act requires furnishing "as per the provisions of section 263(1)(a)(iii) and 263(2) on or before the due date referred to in section 263(1)(c)."
        • Practical impact: The Act adds an additional cross-reference to section 263(2) and specifies the due date provision more precisely (263(1)(c)). This tightens the statutory compliance framework by pointing to an additional subsection and a precise due-date clause, potentially expanding or clarifying filing obligations and consequences for non-compliance.

      Practical Implications

      • Compliance and risk areas: Political parties must maintain books of account and documentary records sufficient for an Assessing Officer to determine income; failure may lead to denial of exemption. Specific risks include non-receipt through prescribed modes for donations over Rs. 2,000, failure to record contributor details for contributions over Rs. 20,000 (other than electoral bonds), and failure to secure an audit. Electoral trusts must ensure timely distribution of 95% of receipts to preserve tax treatment; failure to distribute may endanger exemption. These obligations create audit and reporting exposure for both entities.
      • Record-keeping/evidence: The Schedule explicitly requires maintenance of books and records, contributor name and address for relevant donations, and audit reports. Entities should retain bank evidence for account payee cheques/ drafts/electronic transfers and maintain documentation of electoral bond receipts. The Schedule itself prescribes these documentary requirements; procedural detail (forms, formats, retention period) is Not stated in the document.

      Key Takeaways

      • The Schedule grants targeted income exclusions for registered political parties and electoral trusts, conditioned on specified transparency and procedural requirements.
      • Eligibility for exemption for political parties is tied to registration under a specified provision of the Representation of the People Act; accuracy of cross-references is material to eligibility determinations.
      • Donations above Rs. 2,000 must be received by specified financial instruments; donations above Rs. 20,000 (except electoral bonds) require recording of donor identity and address.
      • Electoral trusts must distribute 95% of receipts in the tax year to preserve the exclusion; they must also function under Central Government rules.
      • Audit of accounts and filing of returns (cross-referenced tax provisions) are preconditions for enjoying the benefits; failure to comply can jeopardise tax exemptions.
      • The Schedule relies on cross-statutory definitions (RBI Act) and electoral reporting (RPA provisions); operational detail is delegated to rules and external provisions.
      • Where the Bill's text is silent (effective date; specific procedural formats; penalties for non-compliance within the Schedule), the document states "Not stated in the document."

      Full Text:

      SCHEDULE VIII - INCOME NOT TO BE INCLUDED IN THE TOTAL INCOME OF POLITICAL PARTIES AND ELECTORAL TRUSTS

      Topics

      ActsIncome Tax