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    Evolution of Appellate Remedies in Indian Income Tax Law : Clause 356 of the Income Tax Bill, 2025 V...
    Appellate Remedies against Advance Rulings : Clause 389 of the Income Tax Bill, 2025 Vs. Section 245...
    Evolution of Procedural Regulation in Advance Rulings under Indian Tax Law : Clause 388 of Income Ta...
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    Fraud, Misrepresentation, and the Void Ab Initio Doctrine in Advance Rulings : Clause 386 of the Inc...
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    Procedure for processing applications for advance rulings in the Indian tax regime : Clause 384 of t...
    Procedural Evolution of Advance Ruling Applications : Clause 383 of the Income Tax Bill, 2025 Vs. Se...
    Legal Insights on Vacancies and Defects in Advance Ruling Bodies : Clause 382 of Income Tax Bill, 20...
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    Changing Landscape of Advance Rulings in Indian Tax Law : Clause 380 of the Income Tax Bill, 2025 Vs...
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    Change in the Interest on Tax Refunds under Indian Income Tax Law : Clause 437 of the Income Tax Bil...
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    Procedural and Substantive Aspects of TDS Refunds : Clause 434 of Income Tax Bill, 2025 Vs. Section ...
    Limitation, Procedure, and Rights of Refund Claims in Indian Tax Law : Clause 433 of the Income Tax ...
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    Act RulesBills
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    Appellate scope reform consolidates appealable orders, enables faceless appeals and transfers while preserving rehearing safeguards.
    Clause 356 prescribes an exhaustive list of appealable orders before the Joint Commissioner (Appeals), defines "status" by cross reference, prohibits appeals where orders are passed by or with approval of authorities above Deputy Commissioner, and empowers the Board to transfer appeals between JCIT(A) and Commissioner (Appeals) with a mandated opportunity of rehearing. It formally enables a government notified faceless disposal scheme-permitting elimination of physical interface and modification of procedural provisions-and authorizes the Board to exclude specified cases or classes from the section's operation.
    Act RulesBills
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    Right of appeal to High Court preserves judicial review over advance rulings with limited condonation and streamlined procedure.
    Clause 389 grants a statutory right of appeal to the High Court against rulings or orders of the Board for Advance Rulings and certain Assessing Officer actions, mandates filing in the prescribed form and manner within a limited period, allows judicial condonation for a short additional interval, omits prior executive scheme-making and modification powers, and relies on Rule 44FA to integrate appeal procedure with jurisdictional High Court practice.
    Act RulesBills
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    Procedural autonomy for advance rulings enables the Board to set its own procedures, heightening calls for transparency and safeguards.
    Clause 388 vests the Board for Advance Rulings with broad power to regulate its own procedure, subject to the relevant Chapter, enabling the Board to prescribe filing rules, hearing modes, timelines, evidence protocols, order formats and confidentiality mechanisms, while the institutional shift from a quasi judicial Authority to an administrative Board raises concerns about explicit natural justice safeguards, transparency, consistency and the scope of judicial review.
    Act RulesBills
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    Advance Rulings powers modernisation clarifies BAR's quasi judicial authority and civil court powers under reformed procedural codes.
    Clause 387 modernises the powers and status of the Board for Advance Rulings by vesting it with civil court powers to summon witnesses, compel document production, receive affidavit evidence and exercise other adjudicatory functions, and by deeming its proceedings to be judicial proceedings that attract penal consequences for perjury and related offences, while limiting the civil court status to specified purposes and aligning cross references with reformed procedural and penal codes.
    Act RulesBills
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    Void ab initio of advance rulings: fraud or misrepresentation may nullify rulings and restore ordinary tax provisions.
    Clause 386 empowers the Board for Advance Rulings to declare an advance ruling void ab initio if found to have been obtained by fraud or misrepresentation, on representation by the Principal Commissioner or Commissioner or otherwise; the Act is to apply as if no ruling had been made (excluding the period the ruling was in force), and a copy of the order must be sent to the applicant and the tax authority.
    Act RulesBills
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    Jurisdictional bar on parallel proceedings preserves advance rulings' exclusivity for resident applicants and prevents conflicting adjudication.
    Clause 385 imposes a jurisdictional bar barring income tax authorities and the Appellate Tribunal from deciding any issue for which a resident has filed an advance ruling application; the prohibition attaches on filing and pertains only to the specific issue raised, thereby preserving the exclusivity and predictability of the advance ruling mechanism while raising interpretive questions about the definition of "issue" and the treatment of pending proceedings.
    Act RulesBills
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    Advance ruling procedure secures binding tax guidance with hearing rights, grounds for rejection, and mandatory communication.
    Clause 384 requires the Board for Advance Rulings to forward applications to the Principal Commissioner or Commissioner, call for records, and after examination either allow or reject applications. Rejection must follow an opportunity to be heard and a reasoned order, and orders must be communicated to the applicant and tax authorities. Mandatory exclusions include pending proceedings, fair market value determinations, and transactions prima facie designed for tax avoidance; if allowed, the Board must examine further material, hear the applicant or authorised representative, and pronounce a written ruling within the prescribed time frame.
    Act RulesBills
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    Advance ruling procedure: streamlined application process with prescribed form, quadruplicate filing, fee and a thirty day withdrawal window.
    Clause 383 establishes a streamlined procedure for advance rulings: applications must state the specific question and be filed in the prescribed form and manner in quadruplicate, accompanied by a prescribed fee, and may be withdrawn within thirty days. The clause retains core procedural features of the prior regime but omits transitional and legacy transfer or opt-out provisions, leaving form, fee, and certain consequences of withdrawal to subordinate rules.
    Act RulesBills
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    Vacancies and defects immunity preserves validity of advance rulings to prevent collateral challenges and ensure procedural continuity.
    Clause 382 stipulates that no proceeding before, or pronouncement of an advance ruling by, the Board for Advance Rulings shall be questioned or invalidated merely because of any vacancy or defect in the Board's constitution. It applies to both procedural actions and final rulings, reflects the de facto validity principle, and is intended to secure continuity, legal certainty, and protection against collateral procedural challenges, while not extending to defects that negate jurisdiction or involve fraud or bias.
    Act RulesBills
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    Board for Advance Rulings centralizes administrative advance rulings, prioritizing efficiency but raising independence and legal robustness concerns.
    Clause 381 mandates constitution of one or more Board for Advance Rulings by notification, each comprising two members who are serving tax officers of not below Chief Commissioner rank, nominated by the Board; the provision preserves an administrative, officer-led model akin to the existing framework and emphasizes mandatory establishment, flexibility in number and phased operationalization, while leaving nomination criteria, judicial representation, publication, and appellate design unspecified.
    Act RulesBills
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    Advance ruling mechanism provides pre transactional tax certainty and access controls for cross border and GAAR related issues.
    Clause 380 defines advance ruling across five categories: rulings for non resident applicants; rulings on transactions between residents and non residents; rulings for specified resident applicants; rulings on computation of total income pending before tax authorities or the Appellate Tribunal; and rulings on whether proposed arrangements are impermissible avoidance arrangements; it links applications to the Bill's procedural section and replaces the Authority with a Board for Advance Rulings, while preserving notification based resident eligibility.
    Act RulesBills
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    Dispute Resolution Committee provides an opt-in ADR path reducing penalties and granting prosecution immunity for minor tax disputes.
    Clause 379 creates an opt in Dispute Resolution Committee to resolve minor tax disputes by allowing modification of assessment variations, reduction or waiver of penalties, and grant of immunity from prosecution, with Assessing Officers required to implement DRC directions within a prescribed short timeframe; eligibility is confined by a monetary ceiling on variations, exclusions for search/survey or international information cases, and an income threshold as reported in returns, while procedural details and disqualifications are to be prescribed in subordinate rules.
    Act RulesBills
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    Set-off of tax refunds: authority to adjust refunds against outstanding dues with written intimation and time limited withholding.
    Clause 438 authorises specified tax officers to set off any refund due against sums remaining payable by the taxpayer, subject to mandatory written intimation. If assessment or reassessment proceedings are pending, the Assessing Officer may withhold the refund for a limited, time bound period, but only after recording reasons in writing and obtaining prior approval from the Principal Commissioner or Commissioner. The clause streamlines language from Section 245, narrows discretionary grounds for withholding by focusing on pendency of proceedings, and retains procedural safeguards without specifying priority among kinds of dues.
    Act RulesBills
    Show AI Summary
    Interest on tax refunds: prescribed entitlement and computation rules ensure compensation for delayed refunds and administrative resolution.
    Clause 437 provides a statutory entitlement to interest on delayed tax refunds, specifying commencement dates for interest based on refund source (advance tax, TCS, tax treated as paid, self-assessment, rectification or excess payment), a materiality threshold exempting trivial refunds, extension of entitlement to deductors, exclusion of periods of delay attributable to the taxpayer or deductor, additional interest for appellate or revision order-related refunds, adjustment and recovery mechanisms for varied refund amounts, and administrative resolution of disputes on excluded periods by a senior tax authority.
    Act RulesBills
    Show AI Summary
    Finality of assessments: refund claims limited to refunds for wrongly paid or excess tax, not re litigation of settled assessments.
    Clause 436 prevents an assessee, in refund claims, from questioning or seeking review of any assessment or matter that has become final and conclusive; relief in such claims is limited to refund of tax wrongly paid or paid in excess and the provision must be read with appeal, rectification and revision mechanisms to avoid undermining corrective powers elsewhere in the statute.
    Act RulesBills
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    Automatic refunds on appellate or statutory orders require proactive AO disbursement, subject to reassessment and annulment limits.
    Automatic refunds are mandated when appellate or other statutory orders reduce or annul tax liability, requiring the Assessing Officer to refund excess amounts without a claim, except where the Act provides otherwise. Refunds become due only after a fresh assessment when an order directs reassessment, and where an assessment is annulled the refund is limited to the excess tax paid over tax chargeable on the returned total income. The provision preserves AO obligations, exceptions for set off or stay, and separates principal refund rules from interest entitlement.
    Act RulesBills
    Show AI Summary
    TDS refund mechanism for deductors clarifies eligibility, prescribed application procedure, and time bound AO orders.
    Clause 434 creates a statutory TDS refund mechanism allowing a deductor who, under a written agreement, bore withholding tax and later claims no deduction was legally required to apply for refund in the prescribed form; the Assessing Officer must inquire as necessary, provide the applicant an opportunity to be heard, and pass a written order allowing or rejecting the claim within the specified time frame.
    Act RulesBills
    Show AI Summary
    Return-based refund claims must be made through the income tax return, tying refund limitation to return filing timelines.
    Clause 433 requires that every refund claim be made by furnishing the return of income under section 263, making return filing the exclusive procedural vehicle for refund claims and implicitly tying limitation to the return filing timelines without providing express condonation or separate application mechanisms.
    Act RulesBills
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    Refund entitlement: clubbed-income payee and authorised representatives may claim tax refunds when taxpayer cannot act.
    The clause entitles the person in whose total income clubbed income is included to claim the refund attributable to that income, and authorises a legal representative, trustee, guardian or receiver to claim or receive refunds on behalf of a taxpayer who cannot do so because of death, incapacity, insolvency, liquidation or similar cause; procedural formalities and limitation issues are left to subordinate rules and practice.
    Act RulesBills
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    Tax refund entitlement preserved: statutory right maintained under new bill with procedural verification by Assessing Officer.
    Clause 431 preserves a statutory right to a refund where a person satisfies the Assessing Officer that tax paid, paid on or treated as paid on their behalf for a tax year exceeds the amount properly chargeable; it covers direct payments and deemed payments (TDS/TCS, advance tax), places an initial procedural burden on the taxpayer, and mirrors Section 237 of the 1961 Act except for the shift from assessment year to tax year, with attendant implications for temporal reference, procedural integration, and ancillary issues such as interest, set offs and standards of verification.

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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

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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

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      ActsIncome Tax