Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

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

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

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ----
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    A Critical Analysis of the Constitutional Validity of Section 16(4) of the CGST/BGST Act and the exp...
    Scrutiny of Procedural Flaws in GST Registration Cancellation: Insights from a High Court Judgment
    Input Tax Credit Claims under GST: A Case Study of the Kerala High Court Ruling
    Case LawsIncome Tax
    Complexities of Residential Status and Tax Liability
    Case LawsIncome Tax
    Navigating International Taxation Waters
    Resolution Applicant Eligibility in Corporate Insolvency: former director/ promotor of the corporate...
    CircularsCustoms
    Easing Export Procedures: A Detailed Analysis of India's New Customs Guidelines
    CircularsCustoms
    Streamlining Export Grievances in India: The Launch of 'e-SAMADHAAN' Portal
    CircularsCustoms
    Revamping Export Standards: India's New Directive on Quality Control for Milk and Milk Products
    Empowering Investors: SEBI's New Framework for Enhanced Trading Account Security
    Extended Validity of Pre-Shipment Inspection Agencies
    Revising Foreign Investment Norms in Alternative Investment Funds: A Critical Analysis of SEBI's Lat...
    SEBI's New Mandates for AIFs: Dematerialization of Investments and Custodian Appointment - Implicati...
    Navigating the Evolving Landscape of IT Hardware Import Regulations in India: Analyzing the DGFT Cir...
    CircularsGST - States
    GST on Imitation Zari Thread
    CircularsGST - States
    Deciphering the GST Framework: Key Clarifications on (1) Passenger Transport and Motor Vehicle Renti...
    CircularsGST - States
    Place of Supply: Key Clarifications for 3 items
    CircularsCustoms
    Regularization of Bills of Entry and Waiver of Interest in Indian Customs
    CircularsCustoms
    Enhancing Maritime Security and Transparency: The Introduction of Body-Worn Cameras for Customs Boar...
    Renewal of Recognition for AMC Repo Clearing Limited: SEBI's Decision and its Implications
❯❯
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
    Input Tax Credit entitlement: statutory conditions and return deadlines can legitimately limit vesting of the benefit.
    The court held that Input Tax Credit is a conditional statutory benefit that vests only upon fulfilment of prescribed conditions; therefore temporal restrictions tied to return filing are legitimate legislative qualifications and do not constitute deprivation of property without authority of law or violation of equality and trade-freedom guarantees.
    Case LawsGST
    Show AI Summary
    Procedural fairness in GST registration: defective show cause notices invalidate cancellation and require fresh lawful proceedings.
    The court held the show cause notice and cancellation of GST registration were procedurally defective: the notice lacked material reasons depriving the taxpayer of an effective response, and the cancellation order demonstrated non-application of mind. Reasons contained in a reply affidavit could not retrospectively validate the defective notice. The authority may initiate fresh proceedings only by issuing a properly reasoned show cause notice, permitting the taxpayer to place all contentions and granting a personal hearing, with adjudication thereafter.
    Case LawsGST
    Show AI Summary
    Input Tax Credit eligibility: absence from GSTR 2A alone cannot bar credit; reassessment with evidentiary opportunity required
    The ruling emphasizes that Form GSTR 2A is a facilitative reconciliation tool and that denial of Input Tax Credit solely because an entry does not appear in GSTR 2A is not sufficient. The claimant bears the burden of proof to demonstrate eligibility by producing evidence of tax payment, valid invoices and transactional genuineness. The assessing authority must afford the taxpayer an opportunity to produce evidence and independently reassess the ITC claim, consistent with the self assessment framework of GST.
    Case LawsIncome Tax
    Show AI Summary
    Residential status: extended employment definition can preserve non-resident tax status for cross-border business migrants abroad.
    The tribunal addressed whether an individual who stayed 176 days in India and then moved to Mauritius on an occupation permit qualified as non-resident under Explanation 1(a) to the residence provision; after reviewing the occupation permit and appointment documentation and relying on precedent that construes "employment" to include self-employment and business activity, the tribunal found the explanatory extension applicable and excluded offshore receipts from Indian taxation.
    Case LawsIncome Tax
    Show AI Summary
    Section 172 shipping reimbursements govern TDS treatment, displacing Section 195 withholding for cross border damage payments.
    The core operative finding is that cross border payments characterised as reimbursements for vessel damage fall within the specialised shipping income regime under Section 172, so the general non resident withholding approach under Section 195 (and higher rates applied due to documentation gaps under Section 206AA) was not the appropriate mechanism; classification by legal character governs the applicable withholding treatment.
    Case LawsIBC
    Show AI Summary
    Resolution applicant eligibility: former promoters not automatically disqualified under Section 29A; clause-specific disqualifiers control.
    Whether a former promoter or director is ineligible under Section 29A turned on clause-specific disqualifiers rather than promoter status alone; the tribunal found no evidence that the statutory disqualifying conditions, including account classification as non-performing, applied to the applicant, and emphasized that eligibility requires a fact-specific application of the provision's clauses.
    CircularsCustoms
    Show AI Summary
    Back to Town export procedures revised to streamline staged re routing and ease compliance for certified exporters.
    The notice amends procedures for Back to Town (BTT) of export cargo, setting distinct workflows for self sealed cargo from CPP, port-to-CPP-to-town movements, and CFS-origin BTT. It differentiates obligations before registration, after registration but prior to LEO, and after LEO, and provides special provisions for AEO and DGFT status holders. Hazardous cargo and part cargo shut out scenarios are addressed, and the circular prescribes customs operational duties, reporting requirements, and discrepancy investigation protocols to streamline export re routing.
    CircularsCustoms
    Show AI Summary
    Export grievance redressal via e-SAMADHAAN portal provides structured online mechanism and interim replies for stakeholder issues.
    The e-SAMADHAAN portal centralises export-related grievance redressal for Jawaharlal Nehru Custom House stakeholders by providing FAQs and a mechanism to lodge grievances; NS-II (Export) will address submissions promptly and issue interim replies with timelines when external agency intervention is required. The portal is intended for public facilitation, not for legal use, and JNCH disclaims liability for use or misuse; stakeholders are encouraged to provide feedback and report implementation difficulties to the Commissioner of Customs, NS-II JNCH.
    CircularsCustoms
    Show AI Summary
    Quality control for milk exports now requires pre-export inspection and approval, aligning exports with international health standards.
    Pre-export quality control and inspection for milk and milk products are mandated under the Milk and Milk Products (Quality Control, Inspection & Monitoring) Rules, 2020. Exporters must obtain establishment approval based on a Food Safety Management System; certain consignments require consignment-wise inspection. A health certificate is required only if the importing country demands it. Customs must verify the Export Inspection Council approval or a Certificate of Inspection. Authorities are directed to sensitize officers and to align earlier orders with current international health and trade standards.
    CircularsSEBI
    Show AI Summary
    Voluntary trading account freeze empowers investors to request account blocking to prevent fraudulent trading under a regulatory framework.
    The circular requires trading members to provide a voluntary freezing/blocking facility allowing clients to request account suspension, with specified request modes, acknowledgement procedures, processing timeframes, and mechanics for implementing and lifting freezes. Stock exchanges must ensure implementation, amend rules where necessary, establish reporting requirements for trading members, and report compliance to the regulator. The measure is issued under Section 11(1) of the Securities and Exchange Board of India Act and Regulation 30 of the SEBI (Stock Brokers) Regulations to enhance investor control and prevent fraudulent trading activity.
    CircularsDGFT
    Show AI Summary
    Extension of validity of Pre-Shipment Inspection Agencies allows continued recognition under Foreign Trade Policy provisions and Handbook relaxation.
    Extension of recognition validity for Pre-Shipment Inspection Agencies under the Foreign Trade Policy 2023, relaxing Para 2.52(c) of the Handbook of Procedures and preserving recognition status for agencies listed in the policy appendices and Aayat Niryal Forms that were due to complete their three-year tenure at the end of 2023.
    CircularsSEBI
    Show AI Summary
    Foreign investment restrictions in AIFs require exclusion of sanctioned or high AML risk beneficial owners, limiting further capital contributions.
    The circular tightens investor eligibility for Alternative Investment Funds by redefining beneficial ownership thresholds and imposing disqualifications: investors or beneficial owners must not be on the United Nations Security Council Sanctions List and must not be residents of jurisdictions identified by the Financial Action Task Force as having strategic AML/CFT deficiencies. AIF managers are prohibited from accepting further capital contributions from investors who fail these conditions, with immediate effect, thereby necessitating enhanced due diligence and ongoing monitoring to ensure compliance.
    CircularsSEBI
    Show AI Summary
    Dematerialization of AIF investments required, with custodians and standardized custody reporting to enhance transparency and oversight.
    SEBI mandates dematerialization of AIF investments and the appointment of custodians, with specified conditions for associates acting as custodians, and requires standardized reporting of investments under custody to enhance transparency, reduce risks associated with physical securities, and strengthen oversight through operational and technological adjustments by AIFs and managers.
    CircularsDGFT
    Show AI Summary
    Import restrictions on specified IT hardware require valid import authorisation, while parts and certain exemptions remain available.
    The DGFT classified laptops, tablets, all in one PCs, ultra small form factor computers and servers under HSN 8471 as restricted, permitting import only against a valid Import Authorization; exclusions include desktop computers under the same chapter, spare parts and components, SEZ captive use imports, and IT hardware strictly incidental to capital goods, while importers may obtain multiple authorisations and amend quantities within value constraints.
    CircularsGST - States
    Show AI Summary
    GST rate classification on imitation zari yarn clarified to cover metallised film-based yarns while excluding refunds on specified film inputs.
    Imitation zari thread or yarn manufactured from metallised polyester film or metallised plastic film, whether used alone or blended with other fibres, is classified within the reduced GST rate category for imitation zari; however, polyester (metallised) film and plastic film inputs are not eligible for refund on account of rate inversion.
    CircularsGST - States
    Show AI Summary
    GST applicability on transport, composite supply and pure agent treatments clarified, plus job work and governmental exemptions defined.
    Services of passenger transport and renting of motor vehicles with operators where fuel is included attract GST at 5% with input tax credit within the same line of business; electricity bundled with renting or maintenance is a composite supply taxed with the principal supply while electricity supplied as a pure agent is excluded from the supplier's value; job work for processing barley into malt attracts 5% GST; exemptions for DMFTs and horticulture services/supplies to the public works department are addressed under governmental-authority exemption criteria.
    CircularsGST - States
    Show AI Summary
    Place of supply clarifications alter GST treatment for cross border transport, advertising spaces and co location services.
    Clarification sets out revised criteria for determining the place of supply for transportation of goods, advertising services involving physical spaces, and co location (server/hosting) services; the omission of a prior IGST provision requires reassessment of place of supply rules for cross border transportation, while the circular also specifies treatment for outdoor advertising and IT hosting to ensure uniform GST chargeability, invoicing and compliance across field formations.
    CircularsCustoms
    Show AI Summary
    Electronic Cash Ledger interest waiver enables regularization of manually cleared Bills of Entry after payment integration is completed.
    The notice requires stakeholders to identify unpaid challans associated with manually issued Out of Charge Bills of Entry, pay the requisite duty through the Electronic Cash Ledger within prescribed timeframes, and enable system reconciliation so that Bills of Entry are regularized. It provides for waiver and refund of interest paid, conditional on compliance with payment deadlines and successful integration of payments into the customs systems.
    CircularsCustoms
    Show AI Summary
    Body-worn cameras for customs boarding officers mandated; recording from gangway to de-boarding, with safety exceptions and pre-notice.
    Mandate requires Boarding Officers to wear a jacket bearing name and badges and a right side Body Worn Camera that records audio visual footage from approach at the gangway until de boarding; officers must notify the Shipping Agent/Line in advance, devices are standalone without wireless/SIM, and vessel Safety Officers may designate unsafe areas for non use subject to endorsement and cross verification by higher customs authorities.
    NotificationsSEBI
    Show AI Summary
    Renewal of recognition secures conditional authorisation for clearing and settlement of repo and reverse repo transactions in debt securities.
    Renewal of recognition is granted to AMC Repo Clearing Limited for a one year period, authorising it to clear and settle repo and reverse repo transactions in debt securities traded on a recognized stock exchange. The renewal is conditioned on compliance with regulatory rules and directions and restricts the Clearing Corporation to activities solely related to clearing and settlement of eligible repo and reverse repo transactions.

    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