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
    Act RulesIncome Tax
    Comparison of section 324 "Charge of tax in case of a firm." between the Income-Tax Act, 2025 (as pa...
    Act RulesIncome Tax
    Comparison of section 323 "Liability of directors of private company." between the Income-Tax Act, 2...
    Act RulesIncome Tax
    Comparison of section 311 "Charge of tax where shares of members in association of persons or body o...
    Act RulesIncome Tax
    Comparison of section 308 "Charge of tax in case of oral trust." between the Income-Tax Act, 2025 (a...
    Act RulesIncome Tax
    Comparison of section 307 "Charge of tax where share of beneficiaries unknown." between the Income-T...
    Act RulesIncome Tax
    Comparison of section 305 "Right of representative assessee to recover tax paid." between the Income...
    Act RulesIncome Tax
    Comparison of section 304 "Liability of representative assessee." between the Income-Tax Act, 2025 (...
    Act RulesIncome Tax
    Comparison of section 301 "Interpretation." between the Income-Tax Act, 2025 (as passed) and the Inc...
    Act RulesIncome Tax
    Comparison of section 298 "Levy of interest and penalty in certain cases." between the Income-Tax Ac...
    Act RulesIncome Tax
    Comparison of section 296 "Time-limit for completion of block assessment." between the Income-Tax Ac...
    Act RulesIncome Tax
    Comparison of section 295 "Undisclosed income of any other person." between the Income-Tax Act, 2025...
    Act RulesIncome Tax
    Comparison of section 294 "Procedure for block assessment." between the Income-Tax Act, 2025 (as pas...
    Act RulesIncome Tax
    Comparison of section 293 "Computation of total undisclosed income of block period." between the Inc...
    Act RulesIncome Tax
    Comparison of section 292 "Assessment of total undisclosed income as a result of search." between th...
    Act RulesIncome Tax
    Comparison of section 291 "Intimation of loss." between the Income-Tax Act, 2025 (as passed) and the...
    Act RulesIncome Tax
    Comparison of section 288 "Other amendments" between the Income-Tax Act, 2025 (as passed) and the In...
    Act RulesIncome Tax
    Comparison of section 287 "Rectification of mistake." between the Income-Tax Act, 2025 (as passed) a...
    Act RulesIncome Tax
    Comparison of section 286 "Time limit for completion of assessment, reassessment and recomputation" ...
    Act RulesIncome Tax
    Comparison of section 285 "Other provisions." between the Income-Tax Act, 2025 (as passed) and the I...
    Act RulesIncome Tax
    Comparison of section 283 "Provision for cases where assessment is in pursuance of an order on appea...
❯❯
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
    Act RulesIncome Tax
    Show AI Summary
    Charge of tax on firms: statutory source choice alters which central enactment prescribes the applicable rate for a year.
    Both texts charge tax on a firm's total income but differ in the statutory source for the applicable rate: the Bill points to the annual tax statute as the operative source, while the Act uses a broader reference to any Central Act for the relevant year, potentially expanding the range of enactments that may prescribe the rate and introducing additional interpretive and administrative considerations.
    Act RulesIncome Tax
    Show AI Summary
    Director liability: personal joint and several responsibility for unrecoverable company tax, unless director disproves gross neglect or misfeasance.
    Section 323 imposes joint and several liability on persons who were directors of a private company during the relevant tax year where tax due (including penalty, interest and fees) cannot be recovered, operating irrespective of the Companies Act, 2013. A director is exempt only if he proves the non-recovery cannot be attributed to gross neglect, misfeasance or breach of duty. The Act omits a narrow conversion-to-public-company saving that appeared in the original Bill, thereby broadening potential director exposure.
    Act RulesIncome Tax
    Show AI Summary
    Taxation of AOPs/BOIs: unknown member shares trigger top personal rates on aggregate income; known shares require apportioned taxation.
    Where members' shares in an AOP/BOI are indeterminate or unknown, the entity's total income is taxed at the maximum marginal rate or at any higher rate applicable to a member's total income; where shares are determinate, each member's other income is tested against the Finance Act's non taxable threshold and portions attributable to higher rate members are taxed at those rates while the balance is taxed at the maximum marginal rate, with a deeming rule treating indeterminacy at formation or thereafter as sufficient.
    Act RulesIncome Tax
    Show AI Summary
    Oral trust taxation: trustee receipts are taxed at the maximum marginal rate, shifting compliance and liability to trustees.
    Tax on income connected to an oral trust is charged at the maximum marginal rate when a trustee receives or is entitled to receive income on behalf of or for the benefit of any person under an oral trust (per section 303(3)), irrespective of other provisions; the Bill had instead charged the income of the person appointed under an oral trust.
    Act RulesIncome Tax
    Show AI Summary
    Tax on unallocated trust income risks top marginal taxation unless beneficiaries and shares are expressly stated and ascertainable.
    Representative assesses holding income for beneficiaries with unspecified or indeterminate shares are taxable at the maximum marginal rate unless a court order, trust instrument or wakf deed expressly identifies beneficiaries and their ascertainable shares on the relevant date; limited exceptions allow taxation at association of persons rates where beneficiaries lack other significant income, where the trust is a sole testamentary trust, where a bona fide historical non testamentary trust for dependants exists, or for bona fide employee benefit funds, and business profits are normally subject to the top rate unless the narrow will trust exception applies.
    Act RulesIncome Tax
    Show AI Summary
    Representative assessee recovery rights secure retention via Assessing Officer certificate limiting recoverability at final settlement.
    A representative assessee who pays any sum under the Act may recover it from the principal or retain an equivalent amount in his representative capacity; a person who apprehends such assessment may retain estimated liability from monies payable to the principal; on dispute the Assessing Officer may issue a certificate authorising retention pending final settlement; recoverability is capped by the certificate amount, except where the representative holds additional assets of the principal, and the enacted text ties that cap to the time of final settlement.
    Act RulesIncome Tax
    Show AI Summary
    Representative assessee liability: treated as beneficial owner for assessment, with revenue able to reach beneficiaries directly.
    Section 304 treats a representative assessee as if the income were beneficially his for duties, liabilities and assessment; it places assessment liability on the representative in his own name, contains an exclusivity rule preventing assessment of the same income under other provisions, preserves the Assessing Officer's power to assess or recover tax directly from the beneficial owner, prescribes a pro rata formula for beneficiaries' share of a chargeable trust income, and grants the revenue equivalent remedies against property under the representative's control.
    Act RulesIncome Tax
    Show AI Summary
    Block period definition governs temporal scope for assessing undisclosed income, including virtual digital assets and documents.
    Clause 301 defines the block period as the six tax years preceding the tax year of a search or requisition plus the portion of that tax year to the date of the last authorisation, and deems the last authorisation executed on the conclusion recorded in the last panchnama for searches or on actual receipt for requisitions. It defines undisclosed income in two limbs: tangible and intangible items or entries representing undisclosed income (including virtual digital assets), and expenses/exemptions/deductions/allowances claimed under the Act that are found incorrect, and it lists books, documents and valuables as requisitioned or seized items.
    Act RulesIncome Tax
    Show AI Summary
    Levy of interest and penalty in search cases: interest accrues and an administrative penalty may attach to undisclosed income when returns are not furnished.
    Where a return required by a search notice is not filed, the provision charges interest on tax determined in the search assessment for the period from the day after the notice deadline until assessment completion, and permits an administrative penalty measured by reference to the tax leviable on undisclosed income determined in that assessment. A conditional bar prevents penalty for the block period if the return is filed, tax is paid with evidence, and no appeal is filed against the returned portion; any undisclosed income in excess of declared amounts remains penalizable. Procedural safeguards include a hearing, higher level approval for large penalties, and specified limitation and exclusion rules.
    Act RulesIncome Tax
    Show AI Summary
    Time-limit for completion of block assessment: statutory period anchored to quarter-end with specified exclusions and minimum remaining period.
    Time-limit for completion of block assessment fixes a statutory period for passing orders under the special search/block assessment procedure, anchors computation to a calendar endpoint, prescribes enumerated excluded periods (including custody of seized items, court stays, information exchange references, audit and valuation processes, references to valuation or appellate authorities, penalty and avoidance arrangement references, and Advance Rulings proceedings), provides a minimum remaining period protection after exclusions, and includes month end rounding; the enacted text shifts the anchor from month end to quarter end and refines exclusion wording and cross references.
    Act RulesIncome Tax
    Show AI Summary
    Undisclosed income transfer to other person's AO triggers block assessment and fixes abatement reference to receipt date.
    When an Assessing Officer is satisfied that seized money, assets, books, documents or any information therein pertain to a person other than the person searched, those materials must be handed to the Assessing Officer having jurisdiction over that other person, who shall proceed under section 294 and apply the block assessment provisions; for abatement under section 292 the reference date for the other person is the date the receiving AO obtains the seized materials or information.
    Act RulesIncome Tax
    Show AI Summary
    Block assessment procedure: time limited compelled return after search, limits revision rights and prescribes applicable procedural and penalty provisions.
    Section 294 compels a time limited special return of undisclosed income following a search or requisition, treats that return as within a specified return regime, precludes revised returns, prescribes which procedural and penalty provisions shall apply or be excluded, and requires prior approval by senior officers before issuing the notice.
    Act RulesIncome Tax
    Show AI Summary
    Total undisclosed income: rules for block-period computation, exclusions for short-period transfer-pricing transactions and loss restrictions.
    Computation of the total undisclosed income of the block period aggregates undisclosed income declared under the statutory declaration mechanism and undisclosed income determined by the Assessing Officer from seized material, survey or requisition results, and other material coming to the AO's notice; it prescribes temporal windows for book-based computation, excludes certain international and specified domestic transactions in the short inter-authorisation period from block computation to be assessed separately, and restricts set-off of brought-forward losses and unabsorbed depreciation against undisclosed block income while allowing carry-forward post-block period.
    Act RulesIncome Tax
    Show AI Summary
    Block assessment procedure centralises search-related assessments, abating parallel year-wise proceedings where initiated and enabling revival on annulment.
    Assessing Officers must assess or reassess the total undisclosed income of the block period under the Part, with those proceedings taking priority over ordinary year wise assessments; pending assessments for years in the block period abate (and may be deemed to have abated on the date certain notices were issued), non undisclosed income of the year of last authorisation is assessed separately, multiple searches are sequenced with timing extensions where needed, and abated proceedings may be revived if Part proceedings or specified orders are annulled.
    Act RulesIncome Tax
    Show AI Summary
    Intimation of loss: mandatory written notification to assessee when loss is established and eligible for carry forward and set-off.
    Section 291 requires the Assessing Officer to notify the assessee by an order in writing the amount of loss as computed by him when (a) a loss is established in assessment and (b) the assessee is entitled to carry forward and set off that loss for the purposes of the listed statutory provisions. The duty is mandatory and procedural, linking the notification obligation to both the establishment of loss in assessment and the assessee's statutory entitlement to carry forward and set-off.
    Act RulesIncome Tax
    Show AI Summary
    Recomputation of assessments tied to triggering events allows targeted amendments within specified limitation periods.
    Clause 288 permits an Assessing Officer to amend or recompute completed assessments in a limited set of scenarios triggered by downstream events-such as reassessment or recomputation orders, valuation or compensation revisions, patent revocation, settlement of foreign tax disputes, or validated transfer pricing determinations-with timelines generally governed by a four year limitation reckoned from the end of the relevant financial year or specified event, and subject to procedural safeguards and cross references to amendment and limitation provisions.
    Act RulesIncome Tax
    Show AI Summary
    Rectification of mistake: tax authorities may amend orders and intimations, with notice and hearing before raising liability.
    Section 287 authorises specified income tax authorities to amend orders and intimations to rectify mistakes apparent from the record, excluding matters considered and decided in appeal or revision. Amendments that increase liability require notice of intention and a reasonable opportunity of being heard; reductions in liability require refund by the Assessing Officer and increases require service of a notice of demand. A four year outer limitation from the end of the financial year of the original order or intimation applies, subject to section 288, and taxpayer applications must be disposed within six months of the relevant month end.
    Act RulesIncome Tax
    Show AI Summary
    Time limits for tax assessments impose short limitation windows, with tolling for procedural delays and transfer pricing processes.
    Section 286 prescribes specific limitation periods for assessments, reassessments and recomputations linked to dates in a statutory table, generally imposing one year windows with limited shorter periods; it provides a 12 month extension where a Transfer Pricing Officer reference is made, enumerates discrete exclusion/tolling events (including hearings, stays, audit and valuation references, advance ruling applications, exchange of information references, declarations under anti avoidance provisions and search/requisition periods), and supplies minimum residual time and remedial extension rules to ensure Assessing Officers retain a baseline time to conclude proceedings.
    Act RulesIncome Tax
    Show AI Summary
    Mandatory cessation of reassessment proceedings when taxpayer demonstrates assessed amount meets correct liability, limiting assessing officer discretion.
    Section 285 fixes tax in section 279 proceedings at rates as if escaped income were included, conditions mandatory cessation of those proceedings on two cumulative showings by the assessee (assessment not lower than correct liability or properly made assessment/computation, and absence of any impugnment under specified challenge provisions), and renders final that cessation by barring reopening of matters concluded by listed orders; procedural modalities and evidentiary standards are not specified.
    Act RulesIncome Tax
    Show AI Summary
    Assessment notices to implement appellate orders may be issued at any time, subject to existing time-bar exceptions.
    Clause 283 permits issuance of a section 280 notice at any time to make assessments, reassessments or recomputations to give effect to appellate orders or Approving Panel directions, but it does not apply where, at the time the triggering order or reference occurred, other statutory time-limiting provisions already precluded assessment for the tax year concerned; the enacted text narrows the express override language compared with the Bill, potentially limiting displacement of constraints within the omitted procedural provision.

    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