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    Act RulesIncome Tax
    Comparison of section 384 "Procedure on receipt of application." between the Income-Tax Act, 2025 (a...
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    Act RulesIncome Tax
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    Procedure on receipt of application: Board must forward application, call records, hear applicant, and issue certified rulings promptly.
    Clause 384 requires the Board for Advance Rulings to forward an application to the Principal Commissioner/Commissioner, call for relevant records, and, after examining the application and records, either allow or reject the application by order. Mandatory rejection grounds include pending proceedings before tax authorities or tribunal, questions on fair market value, and transactions prima facie for tax avoidance, subject to exceptions. Rejection cannot occur without offering an opportunity to be heard and recording reasons; allowed applications must receive a written ruling within the prescribed timeframe and certified copies are to be transmitted to the applicant and assessing officer.
    Act RulesIncome Tax
    Show AI Summary
    Advance ruling application procedure: removal of copy requirement and fee benchmark increases administrative flexibility for applicants.
    Applications for an advance ruling must be made in the form and manner, and accompanied by the fee, as prescribed, with an applicant permitted to withdraw the application within thirty days; the provision delegates prescription of form, manner and fee to subordinate rules, and the enacted text removes a quadruplicate filing requirement and a fixed monetary benchmark previously stated in the Bill, thereby increasing administrative flexibility while placing compliance dependence on subsequent rules.
    Act RulesIncome Tax
    Show AI Summary
    Revision of orders prejudicial to revenue empowers Competent Authority to revisit AO/TPO orders and direct fresh assessments.
    The Competent Authority may call for and examine records of any proceeding and, if satisfied an AO or Transfer Pricing Officer's order is erroneous and prejudicial to revenue, may revise that order after giving the assessee an opportunity of being heard and making such inquiry as necessary; revision can enhance, modify, cancel or direct a fresh assessment, extends to AO/TPO functions and matters not decided in appeal, and is subject to a two-year limitation with specified exclusions and an exception to give effect to appellate findings.
    Act RulesIncome Tax
    Show AI Summary
    Identical question procedure: deferral and preservation of departmental appeals pending a controlling higher court decision.
    The provision creates an administrative mechanism where a Board specified collegium may determine that an identical question of law is pending in another case before a High Court or the Supreme Court and, on that basis, direct restraint from immediate departmental appeal while requiring a prescribed application to preserve the right to appeal later; if the assessee accepts identity the Assessing Officer files the application, otherwise the department proceeds with ordinary appeals, and subsequent appeals may be filed if the higher court decision does not sustain the earlier favourable order.
    Act RulesIncome Tax
    Show AI Summary
    Identity of question of law enables taxpayer to seek application of pending higher-court decision and waive further appeals.
    Section 375 provides an overriding procedure by which an assessee may declare that a question of law in a relevant tax-year is identical to a question pending in another case before specified higher fora; upon a prescribed declaration and, where applicable, a report and hearing involving the Assessing Officer, the assessing or appellate authority may admit or reject the claim by final written order and, if admitted, may dispose of the relevant case and later apply the final decision in the other case by amending earlier orders in conformity.
    Act RulesIncome Tax
    Show AI Summary
    Appealability to Joint Commissioner (Appeals) expanded to include deductors and collectors, broadening standing to challenge subordinate tax orders.
    Appealability to the Joint Commissioner (Appeals) covers specified subordinate Assessing Officer orders-intimations involving adjustments, assessment, reassessment, recomputation, specified assessment orders, penalties, and amendments thereto-with appeals barred if the impugned order was passed by or with prior approval of an authority above Deputy Commissioner. The enacted text expands standing to include deductors and collectors alongside assessees, clarifies objection language regarding adjustments, provides transfer powers between appellate authorities with a rehearing right on transfer, and permits Central Government schemes and Board exemptions to alter procedural or jurisdictional application.
    Act RulesIncome Tax
    Show AI Summary
    Related-person tests broadened to include relatives' concerns and donor-threshold triggers, expanding scrutiny over non-profit transactions.
    Section 355 defines terms governing registered non-profit organisations and related actors, including anonymous donation, approval, donation, commercial activity, registration, registered non-profit organisation, related person, relative, residual income, specified asset, specified person, specified provision, substantial interest and value. The definitions establish donor-based related-person thresholds, treat fee-for-service activities as commercial activity irrespective of income application, set a twenty-percent threshold for substantial interest in companies and concerns, and attribute specified assets based on acquisition source and timing, with certain carve-outs and cross-references to other Act provisions.
    Act RulesIncome Tax
    Show AI Summary
    Approval for donor deduction requires statutory compliance with eligibility conditions, reporting and timelines, affecting charitable organisations' donor benefits.
    Approval for donations under section 133(1)(b)(ii) requires application by a registered non-profit or specified person and satisfaction of seven conditions concerning charitable purpose, non-discrimination, limits on religious-nature expenditure, asset-use restrictions, regular accounts, prescribed statements and donor certificates. The Principal Commissioner or Commissioner has inquiry powers and fixed decision timelines; approvals have defined validity periods. Key operational elements-definitions, calculation rules for religious expenditure, prescribed forms and Schedule contents-are left to subordinate prescription and are not specified in the text.
    Act RulesIncome Tax
    Show AI Summary
    Taxation of non-profit compliance failures: converts regular income into taxable income and restricts deductible expenditure.
    Section 353 converts a registered non-profit's regular income for a tax year into taxable regular income where the organisation fails book-keeping, audit or return obligations or carries on prohibited commercial activity, permitting reduction only by narrowly specified expenditure incurred in India and subject to exclusions (not from corpus, not from borrowings, no capital expenditure, depreciation and payment restrictions), while additionally subjecting specified and residual incomes not included under that conversion to tax and displacing special-treatment provisions.
    Act RulesIncome Tax
    Show AI Summary
    Tax on accreted income: exit charge on nonprofit net assets measured by fair market valuation after triggering events.
    Special additional tax levies a one time charge on accreted income of specified persons (principally registered non profits) upon enumerated triggering events, measured as aggregate fair market value of total assets less total liabilities on a specified date, computed in accordance with prescribed valuation methods. Liability extends to the specified person and principal officer or trustee, and transferees may be assessee in default in limited dissolution cases. The earlier bill expressly empowered the Assessing Officer to compute accreted income after a hearing; the enacted text omits that express AO computation/hearing provision, and procedural timing and valuation rules await delegated legislation.
    Act RulesIncome Tax
    Show AI Summary
    Cancellation of registration for non-profit organisations follows specified violations including misuse of income and impermissible commercial activity.
    Section 351 enumerates specified violations by registered non-profit organisations that may trigger cancellation of registration: misuse of income, impermissible commercial activity, private religious applications lacking public benefit, non-genuine activities or non-compliance with registration conditions, final/undisputed external orders under other laws, and false information in the registration application. The Principal Commissioner/Commissioner may call for documents, hold inquiries, provide a hearing, and issue a written order canceling or not canceling registration, to be communicated to the Assessing Officer and organisation within a six-month timeline from the quarter-end of the first notice.
    Act RulesIncome Tax
    Show AI Summary
    Return filing obligation for registered non-profit organisations triggered when pre Part income exceeds non taxable threshold; timing cross-reference amended.
    A registered non-profit organisation must furnish a return of income for a tax year if its total income, computed without giving effect to the provisions of this Part, exceeds the maximum amount not chargeable to income-tax; the clause cross-references the general return-filing provisions for timing and procedure, and the enacted text modifies which procedural sub-clause governs the filing deadline.
    Act RulesIncome Tax
    Show AI Summary
    Restriction on commercial activities requires incidental nexus and segregated accounting for registered non-profits under statutory provision.
    Section 345 prohibits a registered non-profit organisation from carrying out commercial activity unless (a) the activity is incidental to the attainment of the organisation's objectives and (b) separate books of account are maintained for such activities; the Bill originally contained an in-text descriptive exception for organisations advancing objects of general public utility, while the enacted provision replaces that exception with a cross-reference to a statutory category in section 346.
    Act RulesIncome Tax
    Show AI Summary
    Deemed accumulated income rule limits investment obligation and ties permitted modes to actual investment, changing compliance exposure.
    The provision designates a deemed accumulated income amount calculated as a proportion of regular income after reductions for application of income and amounts accumulated or set apart; that deemed amount is excluded from the accumulated-income regime and, if invested or deposited, must be placed in modes permitted by the applicable investment provision. The enacted text clarifies the reduction base by expressly referencing the application-of-income mechanism and conditions the statutory constraint on investment modes upon an actual investment or deposit.
    Act RulesIncome Tax
    Show AI Summary
    Application of income: qualifying paid sums and an 85% recognition rule for donations, with corpus treated as nil.
    Clause 341 limits qualifying application of income to sums actually paid during the tax year that are allowable under sections 35(b)(i) and 36(4)-(7), recognises 85% of donations to other registered non-profits as application while treating corpus donations to other registered non-profits as nil, and permits reinvestment of corpus and repayment of borrowings as application only subject to five-year, post-31 March 2021 and compliance conditions, excluding depreciation already claimed and set-off of earlier excess application.
    Act RulesIncome Tax
    Show AI Summary
    Specified income triggers convert exempt receipts into taxable income when organisational uses or investments breach prescribed conditions and thresholds.
    Clause 337 lists events that convert otherwise exempt receipts of a registered non-profit organisation into specified income and fixes the tax year for taxation. It enumerates categories including anonymous donations (subject to a prescribed threshold and limited exemptions), amounts applied for related persons, overseas applications contrary to the application rule, investments or deposits made in breach of investment restrictions, corpus or accumulated funds used contrary to conditions, and income of business undertakings assessed in excess of books, while delegating computations and some definitions to subordinate rules.
    Act RulesIncome Tax
    Show AI Summary
    Taxable regular income threshold clarified: application must meet application rules and accumulation must meet accumulation rules for exemption.
    Section 336 prescribes that a registered non-profit's taxable regular income is nil if a prescribed threshold share of regular income for the tax year has been applied for charitable or religious purposes under the Part or accumulated for such purposes under the Part in that year; otherwise taxable regular income equals the prescribed percentage of regular income reduced by amounts so applied or accumulated in that tax year, with the computation anchored to the percentage base before deduction of qualifying amounts.
    Act RulesIncome Tax
    Show AI Summary
    Regular income classification for nonprofits now covers charitable receipts, investment returns, contributions and permitted commercial gains.
    Regular income for a registered non-profit comprises operational receipts from its registered charitable or religious activities, returns from property/deposit/investments (with a new distinction between wholly and part-held assets), voluntary contributions, and gains of permitted commercial activities; the Act changes terminology from "receipts" to "income," omits an explicit "capital or revenue" label for investment returns, excludes commercial gains from certain investment heads, expands cross-references to related provisions, and requires prescribed computation for commercial gains.
    Act RulesIncome Tax
    Show AI Summary
    Non-profit registration: eligibility, irrevocable trust requirement, timelines and commissioner's power to enquire and grant or cancel registration.
    Clause 332 sets eligibility and procedure for registration as a registered non-profit organisation: specified applicant categories; requirement of carrying out charitable purposes (per section 2(23)) or public religious purposes; properties held under an irrevocable trust for public benefit; differentiated filing windows, provisional registration, prescribed decision timelines, and validity periods (with extended validity for lower income applicants); Commissioner/Principal Commissioner empowered to enquire into genuineness, call for documents, condone delay for reasonable cause, and reject or cancel registration; uncured delay may attract taxability under the accreted income provision.
    Act RulesIncome Tax
    Show AI Summary
    Change in constitution of a firm: assessment attaches to the firm as constituted at the time of assessment.
    Where, at the time of making an assessment under sections 270 or 271, a change in the constitution of a firm is found, the assessment shall be made on the firm as constituted at that time; "change in constitution" includes partners ceasing to be partners, admission of new partners provided at least one pre existing partner continues, and changes in partners' shares, with a proviso excluding dissolution on account of a partner's death from the partner cessation limb.

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      Review of concessional rates of BCD prescribed in notification no. 50/2017 - Customs dated 30.62017: The BCD exemption hitherto available on certain goods are being withdrawn by omitting following entries of notification No. 50/2017-Customs dated 30.6.2017.

      3 February, 2020

      Contents
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      Budget 2020-21 + FINANCE BILL, 2020

      S. No.

      S. No. of Notification No 50/2017-customs

      Description

      1.

      5

      Tuna bait [0303]

      2.

      7

      Goods upto an aggregate of ten thousand metric tonnes of total imports of Milk and cream, in powder, granules or other solid form in a financial year. [0402 10, 0402 21 00]

      3.

      7A

      Whey, concentrated, evaporated or condensed, liquid or semi-solid [0404 10 10]

      4.

      7B

      Other Whey [0404 90 00)

      5.

      8

      Butter Ghee, Butter Oil [0405]

      6.

      9

      Other cheese [0406 90 00)

      7.

      10

      Pancreas (Products of animal origin, not elsewhere specified) (Chapter 5]

      8.

      11

      Conch shell [0508 00]

      9.

      18

      Bulbs or tubers, other live plants [0601 or 0602]

      10.

      36

      All goods other than meslin or wheat [1001]

      11.

      38

      Meslin [1001]

      12.

      40

      Maize upto an aggregate of five lakh metric tonnes of total imports of such goods in a financial year [1005 90]

      13.

      47

      Sugar beet seeds [1209 10 00)

      14.

      56

      Edible oils [1508, 1512, 1513, 1514, 1515 or 1511 10]

      15.

      58

      Refined vegetable oils of edible grade, in loose or bulk form (other than palm oil) [chapter 15]

      16.

      59

      Vegetable oils of edible grade, in loose or bulk form (other than those specified against S. No. 58 and palm oil), imported for the manufacture of oil commonly known as “Vanaspati” or for refining.

      Explanation. -The expression “Vegetable oil” means-

      (a) in the case of cottonseed oil, oil having a free fatty acid content of at least 0.2%; and

      (b) in the case of any other vegetable oil. oil with free fatty acid content of at least 0.5%. [15]

      17.

      68

      Crude sunflower seed or safflower oil upto an aggregate of one lakh and fifty thousand metric tonnes of total imports of such goods in a financial year [1512 11]

      18.

      69

      Crude sunflower seed or safflower oil other than those specified against S. No. 68 [1512 11]

      19.

      72

      Refined rape, colza or mustard oil upto an aggregate of one lakh and fifty thousand metric tonnes of total imports of such goods in a financial year (1514 19 or 1514 99]

      20.

      78

      Margarine, animal or vegetable oils of edible grade [1517 or 1518]

      21.

      83

      Glycerol, crude; glycerol waters and glycerol lyes, (other than crude glycerin) [1520 00 00]

      22.

      88A

      Raw Sugar upto an aggregate of three lakh metric tonnes of total imports of such goods. Provided that the import of raw sugar in physical form is completed within sixty (60) days from the date of issue Of the Tariff Rate Quota Allocation Certificate or license by Directorate General of Foreign Trade (DGFT) to the importer. Provided further that the importer shall convert the raw sugar into white/ refined sugar within a period, not exceeding thirty (30) days, from the date of filing of bill of entry or the date of entry inwards, whichever is later [1701]

      23.

      89

      Dextrose Monohydrate [1702)

      24.

      92

      Molasses resulting from extraction or refining of sugar [1703]

      25.

      93

      Chewing gum whether or not sugar coated [1704 10 00]

      26.

      94

      Food preparations, for infant use and put up for retail sale, of-

      (i) goods of headings 0401 to 0404, containing cocoa calculated on a totally defatted basis, in a proportion by weight of 5% or more but less than 10%; or

      (ii) flour, meal, starch or malt extract containing cocoa calculated on a totally defatted basis, in a proportion by weight of 40% or more but less than 50% [1806 90)

      27.

      95

      Preparations for infant use put up for retail sale [1901 10]

      28.

      98

      preserved potatoes [2004 10 00]

      29.

      99

      Peanut Butter [2008 11 00]

      30.

      105

      Wine, for use as sacramental wine [22]

      31.

      108

      Angostura bitters [2208]

      32.

      113

      Fin fish feed [2301 20, 2309 90 32, 2309 90 39]

      33.

      115

      Dietary soya fibre [2304]

      34.

      148

      Naphtha, when imported by Ratnagiri Gas and Power Private Limited (RGPPL), for use in generation of electricity in the power plants of Ratnagiri Gas and Power Private Limited (RGPPL) at Dabhol, District Ratnagiri, Maharashtra [2710]

      35.

      149

      Naphtha, when imported for generation of electrical energy by a generating company as defined in section 2(28) of the Electricity Act, 2003 (36 of 2003) to supply electrical energy-or to engage in the business of supplying electrical energy [2701]

      36.

      152

      Propane, Butane [2711 12 00, 2711 13 00]

      37.

      160

      Electrical energy [ 2716 00 00]

      38.

      170

      Phosphoric acid, for the manufacture of fertilizers(28]

      39.

      212

      Japanese Encephalitis (JE) vaccine, imported by the Andhra Pradesh Government through UNICEF [30]

      40.

      220

      Kyanite salts, in a form indicative of their use for manurial purpose [31]

      41.

      243

      Isolated soya protein [3504]

      42.

      244

      Colour positive unexposed cinematographic film in jumbo rolls and colour negative unexposed cinematographic film in rolls of 400 feet and 1000 feet [37]

      43.

      245

      Instant print film [3701 20 00 or 3702]

      44.

      246

      Cinematographic films, exposed but not developed [3704]

      45.

      247

      Promotional material (like Trailers, making of film etc.) imported in the form of electronic promotion kits (EPK)/ beta cams (Any Chapter)

      46.

      263

      The following polymers of ethylene, namely: -

      (i) Cow density polyethylene (LDPE),

      (ii) Linear low-density polyethylene (LLDPE),

      (iii) High density polyethylene (HDPE),

      (iv) Linear medium density polyethylene (LMDPE),

      (v) Linear high-density polyethylene (LHDPE) [3901]

      47.

      264

      All goods other than poly 'so-butylene [39021

      48.

      266

      All goods [3903]

      49.

      274

      Compostable polymer or bio-plastic used in the manufacture of bio degradable agro mulching films, nursery plantation pots and flower pots [3913 90 90]

      50.

      275

      Water blocking tape for use in the manufacture of insulated Wires and cables falling under heading 8544 (except sub-heading 8544 11) [3919 90 90]

      51.

      278

      Subbed polyester base, imported by M/s. Hindustan Photo Films Manufacturing Company Limited, Udhagamandalam for the manufacture of medical or industrial X-ray films and graphic art films [39201

      52.

      286

      Patent leather [4114 20 10]

      53.

      287

      Raw furskins [4301). tanned and dried furskins [4302]

      54.

      386

      Lead bars. rods. profiles and wire [7806]

      55.

      388

      Zinc tubes, pipes and tube or pipe fittings [7907]

      56.

      389

      Tin plates, sheets and strip, of a thickness exceeding 0.2 mm; tin foil (whether or not printed or backed with paper, paperboard, plastics or similar backing materials), of a thickness (excluding any backing) not exceeding 0.2 mm; tin powders and flakes [8007]

      57.

      398

      Parts and components of the goods specified in List 10 required for use in high voltage power transmission project (Any chapter]

      58.

      401

      All items of equipment including machinery and rolling stock, procured by or on behalf of Delhi Metro Rail Corporation Ltd. for use in-

      (i) Delhi MRTS Project Phase-I, and

      (ii) Specified corridors of Delhi MRTS Project Phase-Il, comprising of the following, namely: -

      (a) Vishwavidyalaya- Jahangirpuri;

      (b) Central Secretariat-Qutab Minar (via All India Institute of Medical Sciences);

      (c) Shahdara- Dilshad Garden;

      (d) Indraprastha-New Ashok Nagar;

      (e) Yamuna Bank-Anand Vihar-lnter State Bus Terminus; and

      (f) Kirti Nagar-Mundka (along with operational Link to Shahdara- Rithala corridor) (Any Chapter)

      59.

      412

      Goods specified in List 15 required for construction of roads [84 or any other chapter]

      60.

      447

      The following goods required for manufacture of Optical disk drives (ODD), namely: -

      (i) Pick up assembly

      (ii) Digital signature procession integrated circuit

      (iii) DC motor

      (iv) LDO voltage regulator [84 or Any other Chapter]

      61.

      456

      The following goods, namely: -

      (a) Sprinklers and drip irrigation systems for agricultural and horticultural purposes;

      (b) Micro Irrigation equipment [8424]

      62.

      457

      Poultry incubators and brooders [8436 21 00]

      63.

      459

      Parts for manufacture of printers falling under sub heading 8443 32 (except 8443 99 51, 8443 99 52, 8443 99 53) [8443]

      64.

      465

      CD -Writers (8471]

      65.

      474

      MP3 or MP4 or MPEG 4 player with or without radio or video reception facility [85]

      66.

      483

      One set of pre-recorded cassettes accompanying books for learning languages and essential complement to such books, [85]

      67.

      484

      Audio cassettes, if recorded with material from books, newspaper or magazines, for the blind [85]

      68.

      515

      Colour television picture tubes for use in the manufacture of cathode ray televisions [8540 11]

       

       


      Full Text:

      Budget 2020-21 + FINANCE BILL, 2020

      Topics

      ActsIncome Tax