Chapter XXIII MISCELLANEOUS

1. (1) Where, during the pendency of any proceeding under this Act or after the completion thereof, but before the service of notice under rule 2 of the Second Schedule, any assessee creates a charge on, or parts with the possession (by way of sale, mortgage, gift, exchange or any other mode of transfer whatsoever) of, any of his assets in favour of any other person, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the assessee as a result of the completion of the said proceeding or otherwise: Provided that such charge or transfer shall not be void if it is made—
   • (i) for adequate consideration and without notice of the pendency of such proceeding or, as the case may be, without notice of such tax or other sum payable by the assessee ; or
   • (ii) with the previous permission of the 2[Assessing Officer].
2. (2) This section applies to cases where the amount of tax or other sum payable or likely to be payable exceeds five thousand rupees and the assets charged or transferred exceed ten thousand rupees in value. Explanation.—In this section, “assets” means land, building, machinery, plant, shares, securities and fixed deposits in banks, to the extent to which any of the assets aforesaid does not form part of the stock-in-trade of the business of the assessee.]

Rep. by the Benami Transactions (Prohibition) Act, 1988 (46 of 1988), s. 7 (w.e.f. 19-5-1988).

1. (1) Where, during the pendency of any proceeding for the assessment of any income or for the assessment or reassessment of any income which has escaped assessment, the 2[Assessing Officer] is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, he may, with the previous approval of the 4[5[Principal Chief Commissioner or Chief Commissioner], 6[Principal Commissioner or Commissioner], 7[Principal Director General or Director General] or 8[Principal Director or Director]], by order in writing, attach provisionally any property belonging to the assessee in the manner provided in the Second Schedule. 9*
2. (2) Every such provisional attachment shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1): 9. The Explanation omitted by Act 28 of 2016, s. 111 (w.e.f. 1-6-2016). Provided that the 1[2[Principal Chief Commissioner or Chief Commissioner], 3[Principal Commissioner or Commissioner], 4[Principal Director General or Director General] or 5[Principal Director or Director]] may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit, so, however, that the total period of extension shall not in any case exceed 6[two years or sixty days after the date of order of assessment or reassessment, whichever is later].]

¹ Subs. by Act 41 of 1975, s. 73, for section 281 (w.e.f. 1-10-1975).

² Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).

³ Ins. by Act 41 of 1975, s. 74 (w.e.f. 1-10-1975).

⁴ Subs. by Act 26 of 1997, s. 57, for “Chief Commissioner or Commissioner” (w.e.f. 1-10-1996). Earlier “Chief Commissioner or Commissioner” was substituted for “Commissioner” by Act 4 of 1988, s. 2 (w.e.f. 1-4-1988).

⁵ Subs. by Act 25 of 2014, s. 4, for “Chief Commissioner” (w.e.f. 1-6-2013).

⁶ Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 1-6-2013).

⁷ Subs. by s. 4, ibid., for “Director General” (w.e.f. 1-6-2013).

⁸ Subs. by s. 4, ibid., for “Director” (w.e.f. 1-6-2013).

7* 8[(3) Where the assessee furnishes a guarantee from a scheduled bank for an amount not less than the fair market value of the property provisionally attached under sub-section (1), the Assessing Officer shall, by an order in writing, revoke such attachment:

Provided that where the Assessing Officer is satisfied that a guarantee from a scheduled bank for an amount lower than the fair market value of the property is sufficient to protect the interests of the revenue, he may accept such guarantee and revoke the attachment.

1. (4) The Assessing Officer may, for the purposes of determining the value of the property provisionally attached under sub-section (1), make a reference to the Valuation Officer referred to in section 142A, who shall estimate the fair market value of the property in the manner provided under that section and submit a report of the estimate to the Assessing Officer within a period of thirty days from the date of receipt of such reference.
2. (5) An order revoking the provisional attachment under sub-section (3) shall be made(i) within forty-five days from the date of receipt of the guarantee, where a reference to the Valuation Officer has been made under sub-section (4); or (ii) within fifteen days from the date of receipt of guarantee in any other case.
3. (6) Where a notice of demand specifying a sum payable is served upon the assessee and the assessee fails to pay that sum within the time specified in the notice of demand, the Assessing Officer may invoke the guarantee furnished under sub-section (3), wholly or in part, to recover the amount.
4. (7) The Assessing Officer shall, in the interests of the revenue, invoke the bank guarantee, if the assessee fails to renew the guarantee referred to in sub-section (3), or fails to furnish a new guarantee from a scheduled bank for an equal amount, fifteen days before the expiry of the guarantee referred to in sub-section (3).
5. (8) The amount realised by invoking the guarantee referred to in sub-section (3) shall be adjusted against the existing demand which is payable by the assessee and the balance amount, if any, shall be deposited in the Personal Deposit Account of the Principal Commissioner or Commissioner in the branch of the Reserve Bank of India or the State Bank of India or of its subsidiaries or any bank as may be appointed by the Reserve Bank of India as its agent under the provisions of sub-section (1) of section 45 of the Reserve Bank of India Act, 1934 (2 of 1934) at the place where the office of the Principal Commissioner or Commissioner is situate. 7. The Second and third proviso omitted by s. 75, ibid. (w.e.f. 1-10-2014).
6. (9) Where the Assessing Officer is satisfied that the guarantee referred to in sub-section (3) is not required any more to protect the interests of the revenue, he shall release that guarantee forthwith. Explanation.—For the purposes of this section, the expression “scheduled bank” shall mean a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).]

¹ Subs. by Act 26 of 1997, s. 57, for “Chief Commissioner or Commissioner” (w.e.f. 1-10-1996). Earlier “Chief Commissioner or Commissioner” was substituted for “Commissioner” by Act 4 of 1988, s. 2 (w.e.f. 1-4-1988).

² Subs. by Act 25 of 2014, s. 4, for “Chief Commissioner” (w.e.f. 1-6-2013).

³ Subs. by s. 4, ibid., for “Commissioner” (w.e.f. 1-6-2013).

⁴ Subs. by s. 4, ibid., for “Director General” (w.e.f. 1-6-2013).

⁵ Subs. by s. 4, ibid., for “Director” (w.e.f. 1-6-2013).

⁶ Subs. by s. 75, ibid., for “two years” (w.e.f. 1-10-2014).

⁸ Ins. by Act 28 of 2016, s. 111 (w.e.f. 1-6-2016).

1. (1) The service of a notice or summon or requisition or order or any other communication under this Act (hereafter in this section referred to as “communication”) may be made by delivering or transmitting a copy thereof, to the person therein named,—
   • (a) by post or by such courier services as may be approved by the Board; or
   • (b) in such manner as provided under the Code of Civil Procedure, 1908 (5 of 1908) for the purposes of service of summons; or
   • (c) in the form of any electronic record as provided in Chapter IV of the Information Technology Act, 2000 (21 of 2000); or
   • (d) by any other means of transmission of documents as provided by rules made by the Board in this behalf.
2. (2) The Board may make rules providing for the addresses (including the address for electronic mail or electronic mail message) to which the communication referred to in sub-section (1) may be delivered or transmitted to the person therein named. Explanation.—For the purposes of this section, the expressions “electronic mail” and “electronic mail message” shall have the meanings as assigned to them in Explanation to section 66A of the Information Technology Act, 2000 (21 of 2000).]

1. (1) Where this Act requires a notice or other document to be issued by any income-tax authority, such notice or other document shall be 3[signed and issued in paper form or communicated in electronic form by that authority in accordance with such procedure as may be prescribed].
2. (2) Every notice or other document to be issued, served or given for the purposes of this Act by any income-tax authority, shall be deemed to be authenticated if the name and office of a designated income-tax authority is printed, stamped or otherwise written thereon.
3. (3) For the purposes of this section, a designated income-tax authority shall mean any income-tax authority authorised by the Board to issue, serve or give such notice or other document after authentication in the manner as provided in sub-section (2).] 282B. [Allotment of Document Identification Number].—Omitted by the Finance Act, 2011 (8 of 2011), s. 31 (w.e.f. 1-4-2011).

¹ Subs. by Act 33 of 2009, s. 77, for section 282 (w.e.f. 1-10-2009).

² Ins. by Act 18 of 2008, s. 55 (w.e.f. 1-6-2008).

³ Subs. by Act 28 of 2016, s. 112, for “signed in manuscript by that authority” (w.e.f. 1-6-2016).

1. (1) After a finding of total partition has been recorded by the 1[Assessing Officer] under section 171 in respect of any Hindu family, notices under this Act in respect of the income of the Hindu family shall be served on the person who was the last manager of the Hindu family, or, if such person is dead, then on all adults who were members of the Hindu family immediately before the partition.
2. (2) Where a firm or other association of persons is dissolved, notices under this Act in respect of the income of the firm or association may be served on any person who was a partner (not being a minor) or member of the association, as the case may be, immediately before its dissolution.

Where an assessment is to be made under section 176, the Assessing Officer may serve on the person whose income is to be assessed, or, in the case of a firm or an association of persons, on any person who was a member of such firm or association at the time of its discontinuance or, in the case of a company, on the principal officer thereof, a notice containing all or any of the requirements which may be included in a notice under sub-section (2) of section 139, and the provisions of this Act shall, so far as may be, apply accordingly as if the notice were a notice issued under that section.

Every person, being a non-resident having a liaison office in India set up in accordance with the guidelines issued by the Reserve Bank of India under the Foreign Exchange Management Act, 1999 (42 of 1999), shall, in respect of its activities in a financial year, prepare and deliver or cause to be delivered to the Assessing Officer having jurisdiction, within sixty days from the end of such financial year, a statement in such form and containing such particulars as may be prescribed.]

Where any share of, or interest in, a company or an entity registered or incorporated outside India derives, directly or indirectly, its value substantially from the assets located in India, as referred to in Explanation 5 to clause (i) of sub-section (1) of section 9, and such company or, as the case may be, entity, holds, directly or indirectly, such assets in India through, or in, an Indian concern, then, such Indian concern shall, for the purposes of determination of any income accruing or arising in India under clause (i) of sub-section (1) of section 9, furnish within the prescribed period to the prescribed income-tax authority the information or documents, in such manner, as may be prescribed.]

Any person carrying on the production of a cinematograph film during the whole or any part of any financial year shall, in respect of the period during which such production is carried on by him in such financial year, prepare and deliver or cause to be delivered to the 1[Assessing Officer], within thirty days from the end of such financial year or within thirty days from the date of the completion of the production of the film, whichever is earlier, a statement in the prescribed form containing particulars of all payments of over 5[fifty thousand rupees] in the aggregate made by him or due from him to each such person as is engaged by him in such production 6***.]

¹ Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).

² Ins. by Act 8 of 2011, s. 32 (w.e.f. 1-6-2011). Earlier it was omitted by Act 11 of 1987, s. 71, (w.e.f. 1-6-1987).

³ Ins. by Act 20 of 2015, s. 78 (w.e.f. 1-4-2016). Earlier it was inserted by Act 31 of 1964, s. 18, (w.e.f. 6-10-1964) and later amended by the Act 41 of 1975, s. 76, (w.e.f. 1-4-1976). And then omitted by 26 of 1988, s. 50 (w.e.f. 1-4-1988).

⁴ Ins. by Act 41 of 1975, s. 76 (w.e.f. 1-4-1976).

⁵ Subs. by Act 10 of 2000, s. 71, for “twenty-five thousand rupees” (w.e.f. 1-4-2001). Earlier it was subs. by Act 21 of 1998, s. 63, (w.e.f. 1-4-1999).

6. The words “as employee or otherwise” omitted by Act 13 of 1989, s. 24 (w.e.f. 1-6-1989).

1. (1) Any person, being—
   • (a) an assessee; or
   • (b) the prescribed person in the case of an office of Government; or
   • (c) a local authority or other public body or association; or
   • (d) the Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908 (16 of 1908); or
   • (e) the registering authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988 (59 of 1988); or
   • (f) the Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898); or
   • (g) the Collector referred to in clause (g) of section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013); or
   • (h) the recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); or
     • (i) an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934); or
   • (j) a depository referred to in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996); or
   • (k) a prescribed reporting financial institution, who is responsible for registering, or, maintaining books of account or other document containing a record of any specified financial transaction or any reportable account as may be prescribed, under any law for the time being in force, shall furnish a statement in respect of such specified financial transaction or such reportable account which is registered or recorded or maintained by him and information relating to which is relevant and required for the purposes of this Act, to the income-tax authority or such other authority or agency as may be prescribed.
2. (2) The statement referred to in sub-section (1) shall be furnished for such period, within such time and in the form and manner, as may be prescribed.
3. (3) For the purposes of sub-section (1), “specified financial transaction” means any—
   • (a) transaction of purchase, sale or exchange of goods or property or right or interest in a property; or
   • (b) transaction for rendering any service; or
   • (c) transaction under a works contract; or
   • (d) transaction by way of an investment made or an expenditure incurred; or
   • (e) transaction for taking or accepting any loan or deposit, which may be prescribed: Provided that the Board may prescribe different values for different transactions in respect of different persons having regard to the nature of such transaction: Provided further that the value or, as the case may be, the aggregate value of such transactions during a financial year so prescribed shall not be less than fifty thousand rupees.
4. (4) Where the prescribed income-tax authority considers that the statement furnished under sub- section (1) is defective, he may intimate the defect to the person who has furnished such statement and give him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation or within such further period which, on an application made in this behalf, the said income-tax authority may, in his discretion, allow; and if the defect is not rectified within the said period of thirty days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, such statement shall be treated as an invalid statement and the provisions of this Act shall apply as if such person had failed to furnish the statement.
5. (5) Where a person who is required to furnish a statement under sub-section (1) has not furnished the same within the specified time, the prescribed income-tax authority may serve upon such person a notice requiring him to furnish such statement within a period not exceeding thirty days from the date of service of such notice and he shall furnish the statement within the time specified in the notice.
6. (6) If any person, having furnished a statement under sub-section (1), or in pursuance of a notice issued under sub-section (5), comes to know or discovers any inaccuracy in the information provided in the statement, he shall within a period of ten days inform the income-tax authority or other authority or agency referred to in sub-section (1), the inaccuracy in such statement and furnish the correct information in such manner as may be prescribed.
7. (7) The Central Government may, by rules made under this section, specify—
   • (a) the persons referred to in sub-section (1) to be registered with the prescribed income-tax authority;
   • (b) the nature of information and the manner in which such information shall be maintained by the persons referred to in clause (a); and
   • (c) the due diligence to be carried out by the persons for the purpose of identification of any reportable account referred to in sub-section (1).]

¹ Subs. by Act 25 of 2014, s. 76, for “section 285BA” (w.e.f. 1-4-2015). Earlier inserted by Act 32 of 2003, s. 98, (w.e.f. 1-4-2005) and later on subs. by Act 23 of 2004, s. 63 (w.e.f. 1-4-2005).

1. (1) Every constituent entity resident in India, shall, if it is constituent of an international group, the parent entity of which is not resident in India, notify the prescribed income-tax authority (herein referred to as prescribed authority) in the form and manner, on or before such date, as may be prescribed,—
   • (a) whether it is the alternate reporting entity of the international group; or (b) the details of the parent entity or the alternate reporting entity, if any, of the international group, and the country or territory of which the said entities are resident.
2. (2) Every parent entity or the alternate reporting entity, resident in India, shall, for every reporting accounting year, in respect of the international group of which it is a constituent, furnish a report, to the prescribed authority 2[within a period of twelve months from the end of the said reporting accounting year], in the form and manner as may be prescribed.
3. (3) For the purposes of sub-section (2) 3[and sub-section (4)], the report in respect of an international group shall include,—
   • (a) the aggregate information in respect of the amount of revenue, profit or loss before income-tax, amount of income-tax paid, amount of income-tax accrued, stated capital, accumulated earnings, number of employees and tangible assets not being cash or cash equivalents, with regard to each country or territory in which the group operates;
   • (b) the details of each constituent entity of the group including the country or territory in which such constituent entity is incorporated or organised or established and the country or territory where it is resident;
   • (c) the nature and details of the main business activity or activities of each constituent entity; and
   • (d) any other information as may be prescribed.
4. (4) A constituent entity of an international group, resident in India, other than the entity referred to in sub-section (2), shall furnish the report referred to in the said sub-section, in respect of the international group for a reporting accounting year 3[within the period as may be prescribed], if the parent entity is resident of a country or territory,— 3[(a) where the parent entity is not obligated to file the report of the nature referred to in subsection (2);] 4[(aa)] with which India does not have an agreement providing for exchange of the report of the nature referred to in sub-section (2); or
   • (b) there has been a systemic failure of the country or territory and the said failure has been intimated by the prescribed authority to such constituent entity: Provided that where there are more than one such constituent entities of the group, resident in India, the report shall be furnished by any one constituent entity, if,—
   • (a) the international group has designated such entity to furnish the report in accordance with the provisions of sub-section (2) on behalf of all the constituent entities resident in India; and
   • (b) the information has been conveyed in writing on behalf of the group to the prescribed authority. 4. Clause (a) relettered as clause (aa) thereof by s. 55, ibid. (w.r.e.f. 1-4-2017).
5. (5) Nothing contained in sub-section (4) shall apply, if, an alternate reporting entity of the international group has furnished a report of the nature referred to in sub-section (2), with the tax authority of the country or territory in which such entity is resident, on or before the date specified 1[by that country or territory] and the following conditions are satisfied, namely:—
   • (a) the report is required to be furnished under the law for the time being in force in the said country or territory;
   • (b) the said country or territory has entered into an agreement with India providing for exchange of the said report;
   • (c) the prescribed authority has not conveyed any systemic failure in respect of the said country or territory to any constituent entity of the group that is resident in India;
   • (d) the said country or territory has been informed in writing by the constituent entity that it is the alternate reporting entity on behalf of the international group; and
   • (e) the prescribed authority has been informed by the 2[entity] referred to in sub-section (4) in accordance with sub-section (1).
6. (6) The prescribed authority may, for the purposes of determining the accuracy of the report furnished by any reporting entity, by issue of a notice in writing, require the entity to produce such information and document as may be specified in the notice within thirty days of the date of receipt of the notice: Provided that the prescribed authority may, on an application made by such entity, extend the period of thirty days by a further period not exceeding thirty days.
7. (7) The provisions of this section shall not apply in respect of an international group for an accounting year, if the total consolidated group revenue, as reflected in the consolidated financial statement for the accounting year preceding such accounting year does not exceed the amount, as may be prescribed.
8. (8) The provisions of this section shall be applied in accordance with such guidelines and subject to such conditions, as may be prescribed.
9. (9) For the purposes of this section,(a) “accounting year” means,—
   • (i) a previous year, in a case where the parent entity or alternate reporting entity is resident in India; or
   • (ii) an annual accounting period, with respect to which the parent entity of the international group prepares its financial statements under any law for the time being in force or the applicable accounting standards of the country or territory of which such entity is resident, in any other case; 3[(b) “agreement” means a combination of all of the following agreements, namely:––
   • (i) an agreement entered into under sub-section (1) of section 90 or sub-section (1) of section 90A; and
   • (ii) an agreement for exchange of the report referred to in sub-section (2) and notified by the Central Government;]
   • (c) “alternate reporting entity” means any constituent entity of the international group that has been designated by such group, in the place of the parent entity, to furnish the report of the nature referred to in sub-section (2) in the country or territory in which the said constituent entity is resident on behalf of such group;
   • (d) “constituent entity” means,—
     • (i) any separate entity of an international group that is included in the consolidated financial statement of the said group for financial reporting purposes, or may be so included for the said purpose, if the equity share of any entity of the international group were to be listed on a stock exchange;
     • (ii) any such entity that is excluded from the consolidated financial statement of the international group solely on the basis of size or materiality; or
     • (iii) any permanent establishment of any separate business entity of the international group included in 1[sub-clause (i) or sub-clause (ii)], if such business unit prepares a separate financial statement for such permanent establishment for financial reporting, regulatory, tax reporting or internal management control purposes;
   • (e) “group” includes a parent entity and all the entities in respect of which, for the reason of ownership or control, a consolidated financial statement for financial reporting purposes,—
     • (i) is required to be prepared under any law for the time being in force or the accounting standards of the country or territory of which the parent entity is resident; or
     • (ii) would have been required to be prepared had the equity shares of any of the enterprises were listed on a stock exchange in the country or territory of which the parent entity is resident;
   • (f) “consolidated financial statement” means the financial statement of an international group in which the assets, liabilities, income, expenses and cash flows of the parent entity and the constituent entities are presented as those of a single economic entity;
   • (g) “international group” means any group that includes,(i) two or more enterprises which are resident of different countries or territories; or (ii) an enterprise, being a resident of one country or territory, which carries on any business through a permanent establishment in other countries or territories;
   • (h) “parent entity” means a constituent entity, of an international group holding, directly or indirectly, an interest in one or more of the other constituent entities of the international group, such that,—
     • (i) it is required to prepare a consolidated financial statement under any law for the time being in force or the accounting standards of the country or territory of which the entity is resident; or
     • (ii) it would have been required to prepare a consolidated financial statement had the equity shares of any of the enterprises were listed on a stock exchange, and, there is no other constituent entity of such group which, due to ownership of any interest, directly or indirectly, in the first mentioned constituent entity, is required to prepare a consolidated financial statement, under the circumstances referred to in 1[sub-clause (i) or sub-clause (ii)], that includes the separate financial statement of the first mentioned constituent entity;
     • (i) “permanent establishment” shall have the meaning assigned to it in clause (iiia) of section 92F;
   • (j) “reporting accounting year” means the accounting year in respect of which the financial and operational results are required to be reflected in the report referred to in 2[sub-section (2) and (4)];
   • (k) “reporting entity” means the constituent entity including the parent entity or the alternate reporting entity, that is required to furnish a report of the nature referred to in sub-section (2);
   • (l) “systemic failure” with respect to a country or territory means that the country or territory has an agreement with India providing for exchange of report of the nature referred to in sub-section (2), but—
     • (i) in violation of the said agreement, it has suspended automatic exchange; or (ii) has persistently failed to automatically provide to India the report in its possession in respect of any international group having a constituent entity resident in India.]

¹ Ins. by Act 28 of 2016, s. 113 (w.e.f. 1-4-2017).

² Subs. by Act 13 of 2018, s. 55, for “on or before the due date specified under sub-section (1) of section 139, for furnishing the return of income for the relevant accounting year” (w.r.e.f. 1-4-2017).

³ Ins. by s. 55, ibid. (w.r.e.f. 1-4-2017).

¹ Subs. by Act 13 of 2018, s. 55, for “in the said sub-section” (w.r.e.f. 1-4-2017).

² Subs. by s. 55, ibid., for “entities” (w.r.e.f. 1-4-2017). 3. Subs. by s. 55, ibid., for clause (b) (w.r.e.f. 1-4-2017).

¹ Subs. by Act 13 of 2018, s. 55, for “clause (i) or clause (ii)” (w.r.e.f. 1-4-2017).

² Subs. by s. 55, ibid., for “sub-section (2)” (w.r.e.f. 1-4-2017).

1. (1) If the Central Government is of opinion that it is necessary or expedient in the public interest to publish the names of any assessees and any other particulars relating to any proceedings 2[or prosecutions] under this Act in respect of such assessees, it may cause to be published such names and particulars in such manner as it thinks fit. 3[(2) No publication under this section shall be made in relation to any penalty imposed under this Act until the time for presenting an appeal to the 4[*** Commissioner (Appeals)] has expired without an appeal having been presented or the appeal, if presented, has been disposed of.] Explanation.—In the case of a firm, company or other association of persons, the names of the partners of the firm, directors, managing agents, secretaries and treasurers, or managers of the company, or the members of the association, as the case may be, may also be published if, in the opinion of the Central Government, the circumstances of the case justify it.]

Any assessee who is entitled or required to attend before any income-tax authority or the Appellate Tribunal in connection with any matter relating to the valuation of any asset, otherwise than when required under section 131 to attend personally for examination on oath or affirmation, may attend by a registered valuer.

Explanation.—In this section, “registered valuer” has the same meaning as in clause (oaa) of section 2 of the Wealth-tax Act, 1957 (27 of 1957).

1. (1) Any assessee who is entitled or required to attend before any income-tax authority or the Appellate Tribunal in connection with any proceeding under this Act otherwise than when required under section 131 to attend personally for examination on oath or affirmation, may, subject to the other provisions of this section, attend by an authorised representative.
2. (2) For the purposes of this section, “authorised representative” means a person authorised by the assessee in writing to appear on his behalf, being—
   • (i) a person related to the assessee in any manner, or a person regularly employed by the assessee; or 4. The words and brackets “Deputy Commissioner (Appeals) or the” omitted by Act 21 of 1998, s. 65 (w.e.f. 1-10-1998). Which was substituted as “Deputy Commissioner (Appeals)” for “Appellate Assistant Commissioner” by Act 4 of 1988, s. 2 (w.e.f. 1-4-1988) and the words and brackets “or the commissioner (Appeals)” were inserted after “Appellate Assistant Commissioner” by Act 22 of 1977, s. 39 and the Fifth Schedule (w.e.f. 1-4-1977).
   • (ii) any officer of a Scheduled Bank with which the assessee maintains a current account or has other regular dealings; or
   • (iii) any legal practitioner who is entitled to practise in any civil court in India; or
   • (iv) an accountant; or
   • (v) any person who has passed any accountancy examination recognised in this behalf by the Board; or
   • (vi) any person who has acquired such educational qualifications as the Board may prescribe for this purpose; or 1[(via) any person who, before the coming into force of this Act in the Union territory of Dadra and Nagar Haveli, Goa†, Daman and Diu, or Pondicherry, attended before an income-tax authority in the said territory on behalf of any assessee otherwise than in the capacity of an employee or relative of that assessee; or]
   • (vii) any other person who, immediately before the commencement of this Act, was an income-tax practitioner within the meaning of clause (iv) of sub-section (2) of section 61 of the Indian Income-tax Act, 1922 (11 of 1922), and was actually practicing as such. 2[Explanation.—In this section, “accountant” means a chartered accountant as defined in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 (38 of 1949) who holds a valid certificate of practice under sub-section (1) of section 6 of that Act, but does not include [except for the purposes of representing the assessee under sub-section (1)]—
   • (a) in case of an assessee, being a company, the person who is not eligible for appointment as an auditor of the said company in accordance with the provisions of sub-section (3) of section 141 of the Companies Act, 2013 (18 of 2013); or
   • (b) in any other case,—
     • (i) the assessee himself or in case of the assessee, being a firm or association of persons or Hindu undivided family, any partner of the firm, or member of the association or the family;
     • (ii) in case of the assessee, being a trust or institution, any person referred to in clauses (a), (b), (c) and (cc) of sub-section (3) of section 13;
     • (iii) in case of any person other than persons referred to in sub-clauses (i) and (ii), the person who is competent to verify the return under section 139 in accordance with the provisions of section 140;
     • (iv) any relative of any of the persons referred to in sub-clauses (i), (ii) and (iii);
     • (v) an officer or employee of the assessee;
     • (vi) an individual who is a partner, or who is in the employment, of an officer or employee of the assessee; † Goa has now become a State by Act 18 of 1987, s. 5 (w.e.f. 30-5-1987).
     • (vii) an individual who, or his relative or partner(I) is holding any security of, or interest in, the assessee: Provided that the relative may hold security or interest in the assessee of the face value not exceeding one hundred thousand rupees; (II) is indebted to the assessee: Provided that the relative may be indebted to the assessee for an amount not exceeding one hundred thousand rupees;
     • (III) has given a guarantee or provided any security in connection with the indebtedness of any third person to the assessee: Provided that the relative may give guarantee or provide any security in connection with the indebtedness of any third person to the assessee for an amount not exceeding one hundred thousand rupees;
     • (viii) a person who, whether directly or indirectly, has business relationship with the assessee of such nature as may be prescribed;
     • (ix) a person who has been convicted by a court of an offence involving fraud and a period of ten years has not elapsed from the date of such conviction. 1*
3. (4) No person—
   • (a) who has been dismissed or removed from Government service after the 1st day of April, 1938; or
   • (b) who has been convicted of an offence connected with any income-tax proceeding or on whom a penalty has been imposed under this Act, other than a penalty imposed on him under 2[clause (ii) of sub-section (1) of] section 271 3[clause (d) of sub-section (1) of section 272A or]; or 4[(c) who has become an insolvent; or (d) who has been convicted by a court for an offence involving fraud, shall be qualified to represent an assessee under sub-section (1), for all times in the case of a person referred to in clause (a), for such time as the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may by order determine in the case of a person referred to in clause (b), for the period during which the insolvency continues in the case of a person referred to in clause (c), and for a period of ten years from the date of conviction in the case of a person referred to in clause (d).]
4. (5) If any person—
   • (a) who is a legal practitioner or an accountant is found guilty of misconduct in his professional capacity by any authority entitled to institute disciplinary proceedings against him, an order passed by that authority shall have effect in relation to his right to attend before an income-tax authority as it has in relation to his right to practise as a legal practitioner or accountant, as the case may be; 1. Sub-section (3) omitted by Act 67 of 1984, s. 52 (w.e.f. 1-10-1984).
   • (b) who is not a legal practitioner or an accountant, is found guilty of misconduct in connection with any income-tax proceedings by the prescribed authority, the prescribed authority may direct that he shall thenceforth be disqualified to represent an assessee under sub-section (1).
5. (6) Any order or direction under clause (b) of sub-section (4) or clause (b) of sub-section (5) shall be subject to the following conditions, namely:—
   • (a) no such order or direction shall be made in respect of any person unless he has been given a reasonable opportunity of being heard;
   • (b) any person against whom any such order or direction is made may, within one month of the making of the order or direction, appeal to the Board to have the order or direction cancelled; and
   • (c) no such order or direction shall take effect until the expiration of one month from the making thereof, or, where an appeal has been preferred, until the disposal of the appeal.
6. (7) A person disqualified to represent an assessee by virtue of the provisions of sub-section (3) of section 61 of the Indian Income-tax Act, 1922 (11 of 1922), shall be disqualified to represent an assessee under sub-section (1). 1[Explanation.—For the purposes of this section, “relative” in relation to an individual, means—
   • (a) spouse of the individual;
   • (b) brother or sister of the individual;
   • (c) brother or sister of the spouse of the individual;
   • (d) any lineal ascendant or descendant of the individual;
   • (e) any lineal ascendant or descendant of the spouse of the individual;
   • (f) spouse of a person referred to in clause (b), clause (c), clause (d) or clause (e);
   • (g) any lineal descendant of a brother or sister of either the individual or the spouse of the individual.]

¹ Subs. by Act 5 of 1964, s. 45, for section 287 (w.e.f. 1-4-1964).

² Ins. by Act 41 of 1975, s. 77 (w.e.f. 1-10-1975).

³ Subs. by s. 77, ibid., for sub-section (2) (w.e.f. 1-10-1975).

⁵ Ins. by Act 45 of 1972, s. 6 (w.e.f. 1-1-1973).

¹ Ins. by the Taxation Laws (Extension to Union Territories) Regulation, 1963 (3 of 1963), s. 3(2) part II and the Schedule (w.e.f. 1-4-1963).

² Subs. by Act 20 of 2015, s. 79, for the Explanation (w.e.f. 1-6-2015).

² Ins. by Act 12 of 1990, s. 49 (w.e.f. 1-4-1990).

³ Ins. by Act 28 of 2016, s. 114 (w.e.f. 1-4-2017).

⁴ Subs. by Act 20 of 2015, s. 79, for certain words, brackets and letter (w.e.f. 1-6-2015).

3[The amount of total income] computed in accordance with the foregoing provisions of this Act shall be rounded off to the nearest multiple of ten rupees and for this purpose any part of a rupee consisting of paise shall be ignored and thereafter if such amount is not a multiple of ten, then, if the last figure in that amount is five or more, the amount shall be increased to the next higher amount which is a multiple of ten and if the last figure is less than five, the amount shall be reduced to the next lower amount which is a multiple of ten; and the amount so rounded off shall be deemed to be the total income of the assessee for the purposes of this Act.]

4*

Any amount payable, and the amount of refund due, under the provisions of this Act shall be rounded off to the nearest multiple of ten rupees and for this purpose any part of a rupee consisting of paise shall be ignored and thereafter if such amount is not a multiple of ten, then, if the last figure in that amount is five or more, the amount shall be increased to the next higher amount which is a multiple of ten and if the last figure is less than five, the amount shall be reduced to the next lower amount which is a multiple of ten.]

¹ Ins. by Act 20 of 2015, s. 79 (w.e.f. 1-6-2015). 2. Ins. by Act 13 of 1966, s. 34 (w.e.f. 1-4-1966). 3. Subs. by Act 19 of 1968, s. 30 and the Third Schedule, for “(1) Subject to the provisions of sub-section (2), the amount of

total income” (w.e.f. 1-4-1969).

⁵ Subs. by Act 29 of 2006, s. 19, for section 288B (w.e.f. 13-7-2006).

4. Sub-section (2) and Explanation, omitted by s. 30 and the Third Schedule, ibid. (w.e.f. 1-4-1969).

A receipt shall be given for any money paid or recovered under this Act.

Every person deducting, retaining, or paying any tax in pursuance of this Act in respect of income belonging to another person is hereby indemnified for the deduction, retention, or payment thereof.

1. (1) The Central Government may, if it is of opinion (the reasons for such opinion being recorded in writing) that with a view to obtaining the evidence of any person appearing to have been directly or indirectly concerned in or privy to the concealment of income or to the evasion of payment of tax on income 1[it is necessary or expedient so to do], tender to such person immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860), or under any other Central Act for the time being in force and also from the imposition of any penalty under this Act on condition of his making a full and true disclosure of the whole circumstances relating to the concealment of income or evasion of payment of tax on income.
2. (2) A tender of immunity made to, and accepted by, the person concerned, shall, to the extent to which the immunity extends, render him immune from prosecution for any offence in respect of which the tender was made or from the imposition of any penalty under this Act.
3. (3) If it appears to the Central Government that any person to whom immunity has been tendered under this section has not complied with the condition on which the tender was made or is wilfully concealing anything or is giving false evidence, the Central Government may record a finding to that effect, and thereupon the immunity shall be deemed to have been withdrawn, and any such person may be tried for the offence in respect of which the tender of immunity was made or for any other offence of which he appears to have been guilty in connection with the same matter and shall also become liable to the imposition of any penalty under this Act to which he would otherwise have been liable.

No court inferior to that of a presidency magistrate or a magistrate of the first class shall try any offence under this Act.

Nothing contained in section 360 of the Code of Criminal Procedure, 1973 (2 of 1974), or in the Probation of Offenders Act, 1958 (20 of 1958), shall apply to a person convicted of an offence under this Act unless that person is under eighteen years of age.

No return of income, assessment, notice, summons or other proceeding, furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of income, assessment, notice, summons or other proceeding if such return of income, assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act.]

Where an assessee has appeared in any proceeding or co-operated in any inquiry relating to an assessment or reassessment, it shall be deemed that any notice under any provision of this Act, which is required to be served upon him, has been duly served upon him in time in accordance with the provisions of this Act and such assessee shall be precluded from taking any objection in any proceeding or inquiry under this Act that the notice was—

1. (a) not served upon him; or
2. (b) not served upon him in time; or
3. (c) served upon him in an improper manner: Provided that nothing contained in this section shall apply where the assessee has raised such objection before the completion of such assessment or reassessment.]

¹ Ins. by Act 13 of 1963, s. 18 (w.e.f. 28-4-1963). 2. Ins. by Act 41 of 1975, s. 78 (w.e.f. 1-10-1975). 3. Ins. by Act 18 of 2008, s. 56 (w.e.f. 1-4-2008).

2[(1)] Where any books of account, other documents, money, bullion, jewellery or other valuable article or thing are or is found in the possession or control of any person in the course of a search under section 132 3[or survey under section 133A], it may, in any proceeding under this Act, be presumed—

1. (i) that such books of account, other documents, money, bullion, jewellery or other valuable article or thing belong or belongs to such person;
2. (ii) that the contents of such books of account and other documents are true; and
3. (iii) that the signature and every other part of such books of account and other documents which purport to be in the handwriting of any particular person or which may reasonably be assumed to have been signed by, or to be in the handwriting of, any particular person, are in that person’s handwriting, and in the case of a document stamped, executed or attested, that it was duly stamped and executed or attested by the person by whom it purports to have been so executed or attested.] 4[(2) Where any books of account, other documents or assets have been delivered to the requisitioning officer in accordance with the provisions of section 132A, then, the provisions of sub-section (1) shall apply as if such books of account, other documents or assets which had been taken into custody from the person referred to in clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1) of section 132A, had been found in the possession or control of that person in the course of a search under section 132.]

1. (1) Notwithstanding anything contained in this Act,—
   • (i) it shall not be necessary to issue an authorisation under section 132 or make a requisition under section 132A separately in the name of each person;
   • (ii) where an authorisation under section 132 has been issued or requisition under section 132A has been made mentioning therein the name of more than one person, the mention of such names of more than one person on such authorisation or requisition shall not be deemed to construe that it was issued in the name of an association of persons or body of individuals consisting of such persons.
2. (2) Notwithstanding that an authorisation under section 132 has been issued or requisition under section 132A has been made mentioning therein the name of more than one person, the assessment or reassessment shall be made separately in the name of each of the persons mentioned in such authorisation or requisition.] 2. Section 292C renumbered as sub-section (1) thereof by Act 18 of 2008, s. 57 (w.e.f. 1-10-1975).

¹ Ins. by Act 22 of 2007, s. 78 (w.e.f. 1-10-1975).

³ Ins. by ibid. s. 57 (w.r.e.f. 1-6-2002).

⁴ Ins. by ibid. s. 57 (w.r.e.f. 1-10-1975).

⁵ Ins. by Act 23 of 2012, s. 112 (w.e.f. 1-4-1976).

No suit shall be brought in any civil court to set aside or modify 1[any proceeding taken or order made] under this Act; and no prosecution, suit or other proceeding shall lie against 2[the Government or] any officer of the Government for anything in good faith done or intended to be done under this Act.

1. (1) If the Central Government is satisfied that it is necessary or expedient so to do in the public interest, it may, by notification in the Official Gazette, make an exemption, reduction in rate or other modification in respect of income-tax in favour of any class of persons specified in sub-section (2) or in regard to the whole or any part of the income of such class of persons 4[or in regard to the status in which such class of persons or the members thereof are to be assessed on their income from the business referred to in clause (a) of sub-section (2): Provided that the notification for modification in respect of the status may be given effect from an assessment year beginning on or after the 1st day of April, 1993.]
2. (2) The persons referred to in sub-section (1) are the following, namely:(a) persons with whom the Central Government has entered into agreements for the association or participation of that Government or any person authorised by that Government in any business consisting of the prospecting for or extraction or production of mineral oils;
   • (b) persons providing any services or facilities or supplying any ship, aircraft, machinery or plant (whether by way of sale or hire) in connection with any business consisting of the prospecting for or extraction or production of mineral oils carried on by that Government or any person specified by that Government in this behalf by notification in the Official Gazette; and
   • (c) employees of the persons referred to in clause (a) or clause (b).
3. (3) Every notification issued under this section shall be laid before each House of Parliament. 5[Explanation.—For the purposes of this section,(a) “mineral oil” includes petroleum and natural gas; (b) “status” means the category under which the assessee is assessed as “individual”, “Hindu undivided family” and so on.]]

Where, under any provision of this Act, the approval of the Central Government or the Board is required to be obtained before a specified date, it shall be open to the Central Government or, as the case may be, the Board to condone, for sufficient cause, any delay in obtaining such approval.]

Where the Central Government or the Board or an income-

tax authority, who has been conferred upon the power under any provision of this Act to grant any approval to any assessee, the Central Government or the Board or such authority may, notwithstanding that a provision to withdraw such approval has not been specifically provided for in such provision, withdraw such approval at any time:

¹ Subs. by Act 26 of 1988, s. 51, for “any order made” (w.r.e.f. 1-3-1988).

² Ins. by Act 5 of 1964, s. 46 (w.e.f. 1-4-1964).

³ Ins. by Act 16 of 1981, s. 22 (w.e.f. 1-4-1981).

⁴ Ins. by Act 22 of 1995, s . 49 (w.r.e.f. 1-4-1993).

⁵ Subs. by s. 49, ibid., for the Explanation (w.r.e.f. 1-4-1993).

⁶ Ins. by Act 4 of 1988, s. 121 (w.e.f. 1-4-1989).

⁷ Ins. by Act 33 of 2009, s. 79 (w.e.f. 1-10-2009).

Provided that the Central Government or Board or income-tax authority shall, after giving a reasonable opportunity of showing cause against the proposed withdrawal to the assessee concerned, at any time, withdraw the approval after recording the reasons for doing so.]

If on the 1st day of April in any assessment year provision has not yet been made by a Central Act for the charging of income-tax 1*** for that assessment year, this Act shall nevertheless have effect until such provision is so made as if the provision in force in the preceding assessment year or the provision proposed in the Bill then before Parliament, whichever is more favourable to the assessee, were actually in force.

If the Central Government considers it necessary or expedient so to do for avoiding any hardship or anomaly or removing any difficulty that may arise as a result of the application of this Act to the Union territories of Dadra and Nagar Haveli, Goa*, Daman and Diu, and Pondicherry, or in the case of the Union territory of Pondicherry, for implementing any provision of the Treaty of Cession concluded between France and India on the 28th day of May, 1956, that Government may, by general or special order, make an exemption, reduction in rate or other modification in respect of income-tax or super-tax in favour of any assessee or class of assessees or in regard to the whole or any part of the income of any assessee or class of assessees:

Provided that the power conferred by this section shall not be exercisable after the 31st day of March, 1967, except for the purpose of rescinding an exemption, reduction or modification already made.]

1. (1) The Board may, subject to the control of the Central Government, by notification in the Gazette of India, make rules for the whole or any part of India for carrying out the purposes of this Act.
2. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters:—
   • (a) the ascertainment and determination of any class of income;
   • (b) the manner in which and the procedure by which the income shall be arrived at in the case of—
     • (i) income derived in part from agriculture and in part from business; (ii) persons residing outside India; 3[(iii) an individual who is liable to be assessed under the provisions of sub-section (2) of section 64;]
   • (c) the determination of the value of any perquisite chargeable to tax under this Act in such manner and on such basis as appears to the Board to be proper and reasonable;
   • (d) the percentage on the written down value which may be allowed as depreciation in respect of buildings, machinery, plant or furniture; 4[(dd) the extent to which, and the conditions subject to which, any expenditure referred to in sub-section (3) of section 37 may be allowed;] 5[(dda) the matters specified in sub-sections (2) and (3) of section 44AA;] 1. The words “or super-tax” omitted by Act 10 of 1965, s. 63 (w.e.f. 1-4-1965). 1[2[(e)] the conditions or limitations subject to which any payment of rent made by an assessee shall be deducted under section 80GG; 3[(ee) the matters specified in Chapter X-A;] (eea) the cases, the nature and value of assets, the limits and heads of expenditure and the outgoings, which are required to be prescribed under sub-section (6) of section 139;
   • (eeb) the time within which any person may apply for the allotment of a permanent account number, the form and the manner in which such application may be made and the particulars which such application shall contain and the transactions with respect to which permanent account numbers shall be quoted on documents relating to such transactions under section 139A; 4[(eeba) the documents, statements, receipts, certificates or audited reports which may not be furnished along with the return but shall be produced before the Assessing Officer on demand under section 139C;
   • (eebb) the class or classes of persons who shall be required to furnish the return of income in electronic form; the form and the manner of furnishing the said return in electronic form; documents, statements, receipts, certificates or reports which shall not be furnished with the return in electronic form and the computer resource or electronic record to which such return may be transmitted under section 139D;]
   • (eec) the form of the report of audit and the particulars which such report shall contain under subsection (2A) of section 142;] 3[(eed) remuneration of Chairperson and members of the Approving Panel under sub-section (18) and procedure and manner for constitution of, functioning and disposal of references by, the Approving Panel under sub-section (21) of section 144BA;]
   • (f) the manner in which and the period to which any such income as is referred to in section 180 may be allocated; 5[(fa) the form and manner in which the information relating to payment of any sum may be furnished under sub-section (6) of section 195;] (g) the authority to be prescribed for any of the purposes of this Act; (h) the procedure for giving effect to the terms of any agreement for the granting of relief in respect of double taxation or for the avoidance of double taxation which may be entered into by the Central Government under this Act; 6[(ha) the procedure for granting of relief or deduction, as the case may be, of any income-tax paid in any country or specified territory outside India, under section 90 or section 90A or section 91, against the income-tax payable under this Act;]
     • (i) the form and manner in which any application, claim, return or information may be made or furnished and the fees that may be levied in respect of any application or claim; 2. Clasue (ee) renumbered as clause (e) thereof by Act 17 of 2013, s. 59 (w.e.f. 1-4-2016). Earlier clause (e) omitted by Act 18 of 2005, s. 64 (w.e.f. 1-4-2006) which was amended by Act 20 of 1967, s. 33 and the Third Schedule (w.e.f. 1-41968).
   • (j) the manner in which any document required to be filed under this Act may be verified; (k) the procedure to be followed on applications for refunds; 1[(kk) the procedure to be followed in calculating interest payable by assessees or interest payable by Government to assessees under any provision of this Act, including the rounding off of the period for which such interest is to be calculated in cases where such period includes a fraction of a month, and specifying the circumstances in which and the extent to which petty amounts of interest payable by assessees may be ignored;]
   • (l) the regulation of any matter for which provision is made in section 230; (m) the form and manner in which any appeal or cross-objection may be filed under this Act, the fee payable in respect thereof and the manner in which intimation of any such order as is referred to in clause (c) of sub-section (2) of section 249 may be served; 2[(mm) the circumstances in which, the conditions subject to which and the manner in which, the 3[*** or the Commissioner (Appeals)] may permit an appellant to produce evidence which he did not produce or which he was not allowed to produce before the 4[Assessing Officer];] 5[(mma) the form in which the statement under section 285B shall be delivered to the 4[Assessing Officer];]
   • (n) the maintenance of a register of persons other than legal practitioners or accountants as defined in sub-section (2) of section 288 practising before income-tax authorities and for the constitution of and the procedure to be followed by the authority referred to in sub-section (5) of that section;
   • (o) the issue of certificate verifying the payment of tax by assessees;
   • (p) any other matter which by this Act is to be, or may be, prescribed.
3. (3) In cases coming under clause (b) of sub-section (2), where the income liable to tax cannot be definitely ascertained, or can be ascertained only with an amount of trouble and expense to the assessee which in the opinion of the Board is unreasonable, the rules made under this section may—
   • (a) prescribe methods by which an estimate of such income may be made; and (b) in cases coming under sub-clause (i) of clause (b) of sub-section (2) specify the proportion of the income which shall be deemed to be income liable to tax, and an assessment based on such estimate or proportion shall be deemed to be duly made in accordance with the provisions of this Act. 6[(4) The power to make rules conferred by this section shall include the power to give retrospective effect, from a date not earlier than the date of commencement of this Act, to the rules or any of them and, unless the contrary is permitted (whether expressly or by necessary implication), no retrospective effect shall be given to any rule so as to prejudicially affect the interests of assessees.] 3. The words “Deputy Commissioner (Appeals) or the” omitted by Act 21 of 1998, s. 65 (w.e.f. 1-10-1998). Earlier the words “Deputy Commissioner (Appeals)” were substituted by Act 4 of 1988, s. 2, for “Appellate Assistant Commissioner” (w.e.f. 1-4-1988) and the words “or the Commissioner (Appeals)” were inserted by Act 29 of 1977, s. 39 and the Fifth Schedule (w.e.f. 10-7-1978). 1[2[296. Rules and certain notifications to be placed before Parliament.—The Central Government shall cause every rule made under this Act , 3[the rules of procedure framed by the Settlement Commission under sub-section (7) of section 245F, the Authority for Advance Rulings under section 245V and the Appellate Tribunal under sub-section (5) of section 255] and 4[every notification issued before the 1st day of June, 2007 under sub-clause (iv) of clause (23C) of section 10] 5[and every notification issued under sub-section (1C) of section 139] 6[or third proviso to sub-section (1) of section 153A or second proviso to sub-section (1) of section 153C] to be laid as soon as may be after the rule is made or the notification is issued before each House of Parliament while it is in session, for a total period of thirty days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made or issued, that rule or notification shall thereafter have effect, only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.]]

² Ins. by the Taxation Laws (Extension to Union Territories) Regulation, 1963 (3 of 1963), s. 3 and the Schedule (w.e.f. 1-4-1963).

³ Ins. by Act 42 of 1970, s. 55 (w.e.f. 1-4-1971).

⁴ Ins. by Act 5 of 1964, s. 47 (w.e.f. 1-4-1964).

⁵ Ins. by Act 41 of 1975, s. 79 (w.e.f. 1-4-1976).

¹ Ins. by Act 41 of 1975, s. 79 (w.e.f. 1-4-1976).

³ Ins. by s. 59, ibid. (w.e.f. 1-4-2016).

⁴ Ins. by Act 22 of 2007, s. 79 (w.r.e.f. 1-6-2006).

⁵ Ins. by Act 18 of 2008, s. 58 (w.e.f. 1-4-2008).

⁶ Ins. by Act 20 of 2015, s. 80 (w.e.f. 1-6-2015).

¹ Ins. by Act 42 of 1970, s. 55 (w.e.f. 1-4-1971).

² Ins. by Act 16 of 1972, s. 41 (w.e.f. 1-4-1972).

⁴ Subs. by Act 4 of 1988, s. 2, for “Income-tax Officer” (w.e.f. 1-4-1988).

⁵ Ins. by Act 41 of 1975, s. 79 (w.e.f. 1-4-1976).

⁶ Ins. by Act 26 of 1974, s. 14 (w.e.f. 18-8-1974).

1. (1) The Indian Income-tax Act, 1922 (11 of 1922), is hereby repealed.
2. (2) Notwithstanding the repeal of the Indian Income-tax Act, 1922 (11 of 1922) (hereinafter referred to as the repealed Act),—
   • (a) where a return of income has been filed before the commencement of this Act by any person for any assessment year, proceedings for the assessment of that person for that year may be taken and continued as if this Act had not been passed;
   • (b) where a return of income is filed after the commencement of this Act otherwise than in pursuance of a notice under section 34 of the repealed Act by any person for the assessment year ending on the 31st day of March, 1962, or any earlier year, the assessment of that person for that year shall be made in accordance with the procedure specified in this Act;
   • (c) any proceeding pending on the commencement of this Act before any income-tax authority, the Appellate Tribunal or any court, by way of appeal, reference, or revision, shall be continued and disposed of as if this Act had not been passed;
   • (d) where in respect of any assessment year after the year ending on the 31st day of March, 1940,—
     • (i) a notice under section 34 of the repealed Act had been issued before the commencement of this Act, the proceedings in pursuance of such notice may be continued and disposed of as if this Act had not been passed;
     • (ii) any income chargeable to tax had escaped assessment within the meaning of that expression in section 147 and no proceedings under section 34 of the repealed Act in respect of any such income are pending at the commencement of this Act, a notice under section 148 may, subject to the provisions contained in section 149 or section 150, be issued with respect to that assessment year and all the provisions of this Act shall apply accordingly;
   • (e) 7[subject to the provisions of clause (g) and clause (j) of this sub-section,] section 23A of the repealed Act shall continue to have effect in relation to the assessment of any company or its shareholders for the assessment year ending on the 31st day of March, 1962 or any earlier year, and the provisions of the repealed Act shall apply to all matters arising out of such assessment as fully and effectually as if this Act had not been passed; 1. Restored by Act 3 of 1989, s. 95 (w.e.f.1-4-1989). Earlier it was substituted by Act 4 of 1988, s. 122 (w.e.f. 1-4-1989).
   • (f) any proceeding for the imposition of a penalty in respect of any assessment completed before the first day of April, 1962, may be initiated and any such penalty may be imposed as if this Act had not been passed;
   • (g) any proceeding for the imposition of a penalty in respect of any assessment for the year ending on the 31st day of March, 1962, or any earlier year, which is completed on or after the 1st day of April, 1962, may be initiated and any such penalty may be imposed under this Act;
   • (h) any election or declaration made or option exercised by an assessee under any provision of the repealed Act and in force immediately before the commencement of this Act shall be deemed to have been an election or declaration made or option exercised under the corresponding provision of this Act;
     • (i) where, in respect of any assessment completed before the commencement of this Act, a refund falls due after such commencement or default is made after such commencement in the payment of any sum due under such completed assessment, the provisions of this Act relating to interest payable by the Central Government on refunds and interest payable by the assessee for default shall apply;
   • (j) any sum payable by way of income-tax, super-tax, interest, penalty or otherwise under the repealed Act may be recovered under this Act, but without prejudice to any action already taken for the recovery of such sum under the repealed Act;
   • (k) any agreement entered into, appointment made, approval given, recognition granted, direction, instruction, notification, order or rule issued under any provision of the repealed Act shall, so far as it is not inconsistent with the corresponding provision of this Act, be deemed to have been entered into, made, granted, given or issued under the corresponding provision aforesaid and shall continue in force accordingly;
   • (l) any notification issued under sub-section (1) of section 60 1[ or section 60A] of the repealed Act and in force immediately before the commencement of this Act shall, to the extent to which provision has not been made under this Act, continue in force 2***: 3[Provided that the Central Government may rescind any such notification or amend it so as to rescind any exemption, reduction in rate or other modification made thereunder;]
   • (m) where the period prescribed for any application, appeal, reference or revision under the repealed Act had expired on or before the commencement of this Act, nothing in this Act shall be construed as enabling any such application, appeal, reference or revision to be made under this Act by reason only of the fact that a longer period therefor is prescribed or provision is made for extension of time in suitable cases by the appropriate authority.

² Subs. by Act 41 of 1975, s. 80, for “section 296” (w.e.f. 1-4-1976).

³ Ins. by Act 32 of 1994, s. 49 (w.e.f. 1-6-1994).

⁴ Subs. by Act 22 of 2007, s. 80, for “every notification issued under sub-clause (iv) of clause (23C) of section 10” (w.e.f. 1-6-2007).

⁵ Ins. by Act 8 of 2011, s. 33 (w.e.f. 1-6-2011).

⁶ Ins. by Act 23 of 2012, s. 113 (w.e.f. 1-7-2012).

⁷ Ins. by Act 13 of 1963, s. 19 (w.e.f. 1-4-1962).

1. (1) If any difficulty arises in giving effect to the provisions of this Act the Central Government may, by general or special order, do anything not inconsistent with such provisions which appears to it to be necessary or expedient for the purpose of removing the difficulty.
2. (2) In particular, and without prejudice to the generality of the foregoing power, any such order may provide for the adaptations or modifications subject to which the repealed Act shall apply in relation to the assessments for the assessment year ending on the 31st day of March, 1962, or any earlier year. 4[(3) If any difficulty arises in giving effect to the provisions of this Act as amended by the Direct Tax Laws (Amendment) Act, 1987, the Central Government may, by order, do anything not inconsistent with such provisions for the purpose of removing the difficulty: Provided that no such order shall be made after the expiration of three years from the 1st day of April, 1988.
3. (4) Every order made under sub-section (3) shall be laid before each House of Parliament. 2. The words “until rescinded by the Central Government” omitted by Act 54 of 1972, s. 7 (w.e.f. 9-9-1972). 3. The proviso added by s. 7, ibid., (w.e.f. 9-9-1972). 4. Sub-section (3) added by Act 4 of 1988, s. 123 (w.e.f. 1-4-1988). THE FIRST SCHEDULE INSURANCE BUSINESS [See section 44] A.—Life insurance business 1. Profits of life insurance business to be compu ted separately.—In the case of a person who carries on or at any time in the previous year carried on life insurance business, the profits and gains of such person from that business shall be computed separately from his profits and gains from any other business. 1[2. Computation of profits of life insurance business.—The profits and gains of life insurance business shall be taken to be the annual average of the surplus arrived at by adjusting the surplus or deficit disclosed by the actuarial valuation made in accordance with the Insurance Act, 1938 (4 of 1938), in respect of the last inter-valuation period ending before the commencement of the assessment year, so as to exclude from it any surplus or deficit included therein which was made in any earlier inter-valuation period.] 3. [Deductions.] Omitted by the Finance Act, 1976 (66 of 1976), s. 23(w.e.f. 1-4-1977). Earlier, the rule was first amended by the Finance Act, 1966 (13 of 1966), s. 36 (w.e.f. 1-4-1966) and by the Finance Act, 1965 (10 of 1965), s. 65 (w.e.f. 1-4-1965).] 4. Adjustment of tax paid by deduction at source.—Where for any year an assessment of the profits of life insurance business is made in accordance with the annual average of a surplus disclosed by a valuation for an inter-valuation period exceeding twelve months, then, in computing the income-tax payable for that year, credit shall not be given in accordance with section 199 for the income-tax paid in the previous year, but credit shall be given for the annual average of the income-tax paid by deduction at source from interest on securities or otherwise during such period. B.—Other insurance business 5. Computation of profits and gains of other insurance business.—The profits and gains of any business of insurance other than life insurance shall be taken to be the 2[profit before tax and appropriations as disclosed in the profit and loss account prepared in accordance with the provisions of the Insurance Act, 1938 (4 of 1938) or the rules made thereunder or the provisions of the Insurance Regulatory and Development Authority Act, 1999 (4 of 1999) or the regulations made thereunder,] subject to the following adjustments:—
   • (a) subject to the other provisions of this rule, 3[any expenditure or allowance including any amount debited to the profit and loss account either by way of a provision for any tax, dividend, reserve or any other provision as may be prescribed] which is not admissible under the provisions of 4[sections 30 to 43B] in computing the profits and gains of a business shall be added back; 1[(b) (i) any gain or loss on realisation of investments shall be added or deducted, as the case may be, if such gain or loss is not credited or debited to the profit and loss account;
     • (ii) any provision for diminution in the value of investment debited to the profit and loss account, shall be added back;]
   • (c) such amount carried over to a reserve for unexpired risks as may be prescribed in this behalf shall be allowed as a deduction. C.—Other provisions 6. Profits and gains of non-resident person.—(1) The profits and gains of the branches in India of a person not resident in India and carrying on any business of insurance, may, in the absence of more reliable data, be deemed to be that proportion of the world income of such person which corresponds to the proportion which his premium income derived from India bears to his total premium income.
4. (2) For the purposes of this rule, the world income in relation to life insurance business of a person not resident in India shall be computed in the manner laid down in this Act for the computation of the profits and gains of life insurance business carried on in India. 7. Interpretation.—(1) For the purposes of these rules— 2*
   • (ii) “investments” includes securities, stocks and shares; 3* (iv) “life insurance business” means life insurance business as defined in clause (11) of section 2 of the Insurance Act, 1938 (4 of 1938); (v) “rule” means a rule contained in this Schedule.
5. (2) References in these rules to the Insurance Act, 1938 (4 of 1938), or any provision thereof, shall, in relation to the Life Insurance Corporation of India, be construed as references to that Act or provision as read with section 43 of the Life Insurance Corporation Act, 1956 (31 of 1956). 2. Clause (i) omitted by Act 66 of 1976, s. 23 (w.e.f. 1-4-1977). Earlier clause (i) was amended by Act 20 of 1967, s. 32 (w.e.f. 1-4-1967). 3. Clause (iii) omitted by s. 23, ibid. (w.e.f. 1-4-1977). THE SECOND SCHEDULE PROCEDURE FOR RECOVERY OF TAX 1[[See sections 222 and 276]] PART I __________ GENERAL PROVISIONS 1. Definitions.—In this Schedule, unless the context otherwise requires,2[(a) “certificate”, except in rules 7, 44, 65 and sub-rule (2) of rule 66, means the certificate drawn up by the Tax Recovery Officer under section 222 in respect of any assessee referred to in that section;]
   • (b) “defaulter” means the assessee mentioned in the certificate;
   • (c) “execution”, in relation to a certificate, means recovery of arrears in pursuance of the certificate;
   • (d) “movable property” includes growing crops;
   • (e) “officer” means a person authorised to make an attachment or sale under this Schedule;
   • (f) “rule” means a rule contained in this Schedule; and
   • (g) “share in a corporation” includes stock, debenture-stock, debentures or bonds. 2. Issue of notice.—3[When a certificate has been received by the Tax Recovery Officer from the 4[Assessing Officer]] for the recovery of arrears under this Schedule, the Tax Recovery Officer shall cause to be served upon the defaulter a notice requiring the defaulter to pay the amount specified in the certificate within fifteen days from the date of service of the notice and intimating that in default steps would be taken to realise the amount under this Schedule. 3. When certificate may be executed.—No step in execution of a certificate shall be taken until the period of fifteen days has elapsed since the date of the service of the notice required by the preceding rule: Provided that, if the Tax Recovery Officer is satisfied that the defaulter is likely to conceal, remove or dispose of the whole or any part of such of his movable property as would be liable to attachment in execution of a decree of a civil court and that the realisation of the amount of the certificate would in consequence be delayed or obstructed, he may at any time direct, for reasons to be recorded in writing, an attachment of the whole or any part of such property: Provided further that if the defaulter whose property has been so attached furnishes security to the satisfaction of the Tax Recovery Officer, such attachment shall be cancelled from the date on which such security is accepted by the Tax Recovery Officer. 3. Restored by Act 3 of 1989, s. 95 (1-4-1989). 4. Mode of recovery.—If the amount mentioned in the notice is not paid within the time specified therein or within such further time as the Tax Recovery Officer may grant in his discretion, the Tax Recovery Officer shall proceed to realise the amount by one or more of the following modes:—
   • (a) by attachment and sale of the defaulter’s movable property;
   • (b) by attachment and sale of the defaulter’s immovable property;
   • (c) by arrest of the defaulter and his detention in prison;
   • (d) by appointing a receiver for the management of the defaulter’s movable and immovable properties. 5. Interest, costs and charges recoverable.—There shall be recoverable, in the proceedings in execution of every certificate,—
   • (a) such interest upon the amount of tax or penalty or other sum to which the certificate relates as is payable in accordance with sub-section (2) of section 220, and
   • (b) all charges incurred in respect of—
     • (i) the service of notice upon the defaulter to pay the arrears, and of warrants and other processes, and
     • (ii) all other proceedings taken for realising the arrears. 6. Purchaser’s title.—(1) Where property is sold in execution of a certificate, there shall vest in the purchaser merely the right, title and interest of the defaulter at the time of the sale, even though the property itself be specified.
6. (2) Where immovable property is sold in execution of a certificate, and such sale has become absolute, the purchaser’s right, title and interest shall be deemed to have vested in him from the time when the property is sold, and not from the time when the sale becomes absolute. 7. Suit against purchaser not maintainable on ground of purchase being made on behalf of plaintiff.—(1) No suit shall be maintained against any person claiming title under a purchase certified by the Tax Recovery Officer in the manner laid down in this Schedule, on the ground that the purchase was made on behalf of the plaintiff or on behalf of someone through whom the plaintiff claims.
7. (2) Nothing in this section shall bar a suit to obtain a declaration that the name of any purchaser certified as aforesaid was inserted in the certificate fraudulently or without the consent of the real purchaser, or interfere with the right of a third person to proceed against that property, though ostensibly sold to the certified purchaser, on the ground that it is liable to satisfy a claim of such third person against the real owner. 1[8. Disposal of proceeds of execution.—(1) Whenever assets are realised by sale or otherwise in execution of a certificate, the proceeds shall be disposed of in the following manner, namely:—
   • (a) they shall first be adjusted towards the amount due under the certificate in execution of which the assets were realised and the costs incurred in the course of such execution;
   • (b) if there remains a balance after the adjustment referred to in clause (a), the same shall be utilised for satisfaction of any other amount recoverable from the assessee under this Act which may be due on the date on which the assets were realised; and
   • (c) the balance, if any, remaining after the adjustments under clauses (a) and (b) shall be paid to the defaulter.
8. (2) If the defaulter disputes any adjustment under clause (b) of sub-rule (1), the Tax Recovery Officer shall determine the dispute.] 9. General bar to jurisdiction of civil courts, save where fraud alleged.—Except as otherwise expressly provided in this Act, every question arising between the 1[Tax Recovery Officer] and the defaulter or their representatives, relating to the execution, discharge or satisfaction of a certificate 2***, or relating to the confirmation or setting aside by an order under this Act of a sale held in execution of such certificate, shall be determined, not by suit, but by order of the Tax Recovery Officer before whom such question arises: Provided that a suit may be brought in a civil court in respect of any such question upon the ground of fraud. 10. Property exempt from attachment.—(1) All such property as is by the Code of Civil Procedure, 1908 (5 of 1908), exempted from attachment and sale in execution of a decree of a civil court shall be exempt from attachment and sale under this Schedule.
9. (2) The Tax Recovery Officer’s decision as to what property is so entitled to exemption shall be conclusive. 11. Investigation by Tax Recovery Officer.—(1) Where any claim is preferred to, or any objection is made to the attachment or sale of, any property in execution of a certificate, on the ground that such property is not liable to such attachment or sale, the Tax Recovery Officer shall proceed to investigate the claim or objection: Provided that no such investigation shall be made where the Tax Recovery Officer considers that the claim or objection was designedly or unnecessarily delayed.
10. (2) Where the property to which the claim or objection applies has been advertised for sale, the Tax Recovery Officer ordering the sale may postpone it pending the investigation of the claim or objection, upon such terms as to security or otherwise as the Tax Recovery Officer shall deem fit.
11. (3) The claimant or objector must adduce evidence to show that—
    • (a) (in the case of immovable property) at the date of the service of the notice issued under this Schedule to pay the arrears, or
    • (b) (in the case of movable property) at the date of the attachment, he had some interest in, or was possessed of, the property in question.
12. (4) Where, upon the said investigation, the Tax Recovery Officer is satisfied that, for the reason stated in the claim or objection, such property was not, at the said date, in the possession of the defaulter or of some person in trust for him or in the occupancy of a tenant or other person paying rent to him, or that, being in the possession of the defaulter at the said date, it was so in his possession, not on his own account or as his own property, but on account of or in trust for some other person, or partly on his own account and partly on account of some other person, the Tax Recovery Officer shall make an order releasing the property, wholly or to such extent as he thinks fit, from attachment or sale. 2. The words “duly filed under this Act” omitted by Act 4 of 1988, s. 124 (w.e.f. 1-4-1989).
13. (5) Where the Tax Recovery Officer is satisfied that the property was, at the said date, in the possession of the defaulter as his own property and not on account of any other person, or was in the possession of some other person in trust for him, or in the occupancy of a tenant or other person paying rent to him, the Tax Recovery Officer shall disallow the claim.
14. (6) Where a claim or an objection is preferred, the party against whom an order is made may institute a suit in a civil court to establish the right which he claims to the property in dispute; but, subject to the result of such suit (if any), the order of the Tax Recovery Officer shall be conclusive. 12. Removal of attachment on satisfaction or cancellation of certificate.—Where—
    • (a) the amount due, with costs and all charges and expenses resulting from the attachment of any property or incurred in order to hold a sale, are paid to the Tax Recovery Officer, or
    • (b) the certificate is cancelled, the attachment shall be deemed to be withdrawn and, in the case of immovable property, the withdrawal shall, if the defaulter so desires, be proclaimed at his expense, and a copy of the proclamation shall be affixed in the manner provided by this Schedule for a proclamation of sale of immovable property. 13. Officer entitled to attach and sell.—The attachment and sale of movable property and the attachment and sale of immovable property may be made by such persons as the Tax Recovery Officer may from time to time direct. 14. Defaulting purchaser answerable for loss on resale.—Any deficiency of price which may happen on a resale by reason of the purchaser’s default, and all expenses attending such resale, shall be certified to the 1[Tax Recovery Officer] by the officer holding the sale, and shall, at the instance of either the Tax Recovery Officer or the defaulter, be recoverable from the defaulting purchaser under the procedure provided by this Schedule: Provided that no such application shall be entertained unless filed within fifteen days from the date of resale. 15. Adjournment or stoppage of sale.—(1) The Tax Recovery Officer may, in his discretion, adjourn any sale hereunder to a specified day and hour; and the officer conducting any such sale may, in his discretion, adjourn the sale, recording his reasons for such adjournment: Provided that, where the sale is made in, or within the precincts of, the office of the Tax Recovery Officer, no such adjournment shall be made without the leave of the Tax Recovery Officer.
15. (2) Where a sale of immovable property is adjourned under sub-rule (1) for a longer period than one calendar month, a fresh proclamation of sale under this Schedule shall be made unless the defaulter consents to waive it.
16. (3) Every sale shall be stopped if, before the lot is knocked down, the arrears and costs (including the costs of the sale) are tendered to the officer conducting the sale, or proof is given to his satisfaction that the amount of such arrears and costs has been paid to the Tax Recovery Officer who ordered the sale. 16. Private alienation to be void in certain cases.—(1) Where a notice has been served on a defaulter under rule 2, the defaulter or his representative in interest shall not be competent to mortgage, charge, lease or otherwise deal with any property belonging to him except with the permission of the Tax Recovery Officer, nor shall any civil court issue any process against such property in execution of a decree for the payment of money.
17. (2) Where an attachment has been made under this Schedule, any private transfer or delivery of the property attached or of any interest therein and any payment to the defaulter of any debt, dividend or other moneys contrary to such attachment, shall be void as against all claims enforceable under the attachment. 17. Prohibition against bidding or purchase by officer.—No officer or other person having any duty to perform in connection with any sale under this Schedule shall, either directly or indirectly, bid for, acquire or attempt to acquire any interest in the property sold. 18. Prohibition against sale on holidays.—No sale under this Schedule shall take place on a Sunday or other general holiday recognised by the State Government or on any day which has been notified by the State Government to be a local holiday for the area in which the sale is to take place. 19. Assistance by police.—Any officer authorised to attach or sell any property or to arrest the defaulter or charged with any duty to be performed under this Schedule, may apply to the officer-incharge of the nearest police station for such assistance as may be necessary in the discharge of his duties, and the authority to whom such application is made shall depute a sufficient number of police officers for furnishing such assistance. 1[19A. Entrustment of certain functions by Tax Recovery Officer.—A Tax Recovery Officer may, with the previous approval of the 2[Joint Commissioner], entrust any of his functions as the Tax Recovery Officer to any other officer lower than him in rank (not being lower in rank than an Inspector of Income-tax) and such officer shall, in relation to the functions so entrusted to him, be deemed to be a Tax Recovery Officer.]

¹ Ins. by Act 13 of 1966, s. 13 (w.e.f. 1-4-1962).

¹ Subs. by Act 66 of 1976, s. 23 (w.e.f. 1-4-1977).

² Subs. by Act 33 of 2009, s. 80, for certain words (w.e.f. 1-4-2011).

³ Subs. by Act 21 of 1998, s. 64, for “any expenditure or allowance” (w.r.e.f. 1-4-1989).

⁴ Subs. by Act 4 of 1988, s. 126, for “section 30 to 43A” (w.e.f. 1-4-1989).

¹ Subs. by Act 14 of 2010, s. 52, for clause (b) (w.e.f. 1-4-2011).

¹ Subs. by Act 4 of 1988, s. 124, for “See section 222” (w.e.f. 1-4-1989).

² Subs. by s. 124, ibid., for clause (a) (w.e.f. 1-4-1989).

⁴ Subs. by s. 54, ibid., for “Income-tax Officer” (w.e.f. 1-4-1988).

¹ Subs. by Act 4 of 1988, s. 124, for rule 8 (w.e.f. 1-4-1989).

¹ Subs. by Act 3 of 1989, s. 54, for “Assessing Officer” (w.e.f. 1-4-1989).

¹ Subs. by Act 3 of 1989, s. 54, for “Assessing Officer” (w.e.f. 1-4-1989).