It Act - Part Ii

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Page 1 Thursday, July 23, 2020

Printed For: Kaushal Jaisalmeria, W B National University of Juridical Sciences
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The Income Tax Act, 1961 (Contd.)

(Section 151 to 298)
2768 [151. Sanction for issue of notice.— (1) No notice shall be issued under
Section 148 by an Assessing Officer, after the expiry of a period of four years from the
end of the relevant assessment year, unless the Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner is satisfied, on the reasons
recorded by the Assessing Officer, that it is a fit case for the issue of such notice.
(2) In a case other than a case falling under sub-section (1), no notice shall be
issued under Section 148 by an Assessing Officer, who is below the rank of Joint
Commissioner, unless the Joint Commissioner is satisfied, on the reasons recorded by
such Assessing Officer, that it is a fit case for the issue of such notice.
(3) For the purposes of sub-section (1) and sub-section (2), the Principal Chief
Commissioner or the Chief Commissioner or the Principal Commissioner or the
Commissioner or the Joint Commissioner, as the case may be, being satisfied on the
reasons recorded by the Assessing Officer about fitness of a case for the issue of notice
under Section 148, need not issue such notice himself.]
152. Other provisions.— (1) In an assessment, reassessment or recomputation
made under Section 147, the tax shall be chargeable at the rate or rates at which it
would have been charged had the income not escaped assessment.
(2) Where an assessment is reopened under Section 147, the assessee may, if he
has not impugned any part of the original assessment order for that year either under
Sections 246 to 248 or under Section 264, claim that the proceedings under Section
147 shall be dropped on his showing that he had been assessed on an amount or to a
sum not lower than what he would be rightly liable for even if the income alleged to
have escaped assessment had been taken into account, or the assessment or
computation had been properly made:
Provided that in so doing he shall not be entitled to reopen matters concluded by
an order under Sections 154, 155, 260, 262 or 263.
2769 [153.
Time limit for completion of assessment, reassessment and
recomputation.— (1) No order of assessment shall be made under Section 143 or
Section 144 at any time after the expiry of twenty-one months from the end of the
assessment year in which the income was first assessable:
2770 [Provided that in respect of an order of assessment relating to the assessment
year commencing on the 1st day of April, 2018, the provisions of this sub-section
shall have effect, as if for the words “twenty-one months”, the words “eighteen
months” had been substituted:
Provided further that in respect of an order of assessment relating to the
assessment year commencing on or after the 1st day of April, 2019, the provisions
of this sub-section shall have effect, as if for the words “twenty-one months”, the
words “twelve months” had been substituted.]
(2) No order of assessment, reassessment or recomputation shall be made under
Section 147 after the expiry of nine months from the end of the financial year in which
the notice under Section 148 was served:
2771 [Provided that where the notice under Section 148 is served on or after the
1st day of April, 2019, the provisions of this sub-section shall have effect, as if for
the words “nine months”, the words “twelve months” had been substituted.]
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(3) Notwithstanding anything contained in sub-sections (1) and (2), an order of
fresh assessment in pursuance of an order under Section 254 or Section 263 or
Section 264, setting aside or cancelling an assessment, may be made at any time
before the expiry of nine months from the end of the financial year in which the order
under Section 254 is received by the Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner or, as the case may be, the
order under Section 263 or Section 264 is passed by the Principal Commissioner or
Commissioner:
2772
[Provided that where the order under Section 254 is received by the Principal
Chief Commissioner or Chief Commissioner or Principal Commissioner or
Commissioner or, as the case may be, the order under Section 263 or Section 264
is passed by the Principal Commissioner or Commissioner on or after the 1st day of
April, 2019, the provisions of this sub-section shall have effect, as if for the words
“nine months”, the words “twelve months” had been substituted.]
(4) Notwithstanding anything contained in sub-sections (1), (2) and (3), where a
reference under sub-section (1) of Section 92-CA is made during the course of the
proceeding for the assessment or reassessment, the period available for completion of
assessment or reassessment, as the case may be, under the said sub-sections (1), (2)
and (3) shall be extended by twelve months.
(5) Where effect to an order under Section 250 or Section 254 or Section 260 or
Section 262 or Section 263 or Section 264 is to be given by the Assessing Officer,
wholly or partly, otherwise than by making a fresh assessment or reassessment, such
effect shall be given within a period of three months from the end of the month in
which order under Section 250 or Section 254 or Section 260 or Section 262 is
received by the Principal Chief Commissioner or Chief Commissioner or Principal
Commissioner or Commissioner, as the case may be, the order under Section 263 or
Section 264 is passed by the Principal Commissioner or Commissioner:
Provided that where it is not possible for the Assessing Officer to give effect to such
order within the aforesaid period, for reasons beyond his control, the Principal
Commissioner or Commissioner on receipt of such request in writing from the
Assessing Officer, if satisfied, may allow an additional period of six months to give
effect to the order:
2773 [Provided further that where an order under Section 250 or Section 254 or
Section 260 or Section 262 or Section 263 or Section 264 requires verification of any
issue by way of submission of any document by the assessee or any other person or
where an opportunity of being heard is to be provided to the assessee, the order
giving effect to the said order under Section 250 or Section 254 or Section 260 or
Section 262 or Section 263 or Section 264 shall be made within the time specified in
sub-section (3).]
(6) Nothing contained in sub-sections (1) and (2) shall apply to the following
classes of assessments, reassessments and recomputation which may, subject to the
provisions of sub-sections (3) and (5), be completed—
(i) where the assessment, reassessment or recomputation is made on the
assessee or any person in consequence of or to give effect to any finding or
direction contained in an order under Section 250, Section 254, Section 260,
Section 262, Section 263, or Section 264 or in an order of any court in a
proceeding otherwise than by way of appeal or reference under this Act, on or
before the expiry of twelve months from the end of the month in which such
order is received or passed by the Principal Commissioner or Commissioner, as
the case may be; or
(ii) where, in the case of a firm, an assessment is made on a partner of the firm
in consequence of an assessment made on the firm under Section 147, on or
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before the expiry of twelve months from the end of the month in which the
assessment order in the case of the firm is passed.
(7) Where effect to any order, finding or direction referred to in sub-section (5) or
sub-section (6) is to be given by the Assessing Officer, within the time specified in the
said sub-sections, and such order has been received or passed, as the case may be, by
the income-tax authority specified therein before the 1st day of June, 2016, the
Assessing Officer shall give effect to such order, finding or direction, or assess,
reassess or recompute the income of the assessee, on or before the 31st day of March,
2017.
(8) Notwithstanding anything contained in the foregoing provisions of this section,
sub-section (2) of Section 153-A or sub-section (1) of Section 153-B, the order of
assessment or reassessment, relating to any assessment year, which stands revived
under sub-section (2) of Section 153-A, shall be made within a period of one year
from the end of the month of such revival or within the period specified in this section
or sub-section (1) of Section 153-B, whichever is later.
(9) The provisions of this section as they stood immediately before the
commencement of the Finance Act, 2016, shall apply to and in relation to any order of
assessment, reassessment or recomputation made before the 1st day of June, 2016:
2774 [Provided that where a notice under sub-section (1) of Section 142 or sub-
section (2) of Section 143 or Section 148 has been issued prior to the 1st day of June,
2016 and the assessment or reassessment has not been completed by such date due
to exclusion of time referred to in Explanation 1, such assessment or reassessment
shall be completed in accordance with the provisions of this section as it stood
immediately before its substitution by the Finance Act, 2016 (28 of 2016).]
Explanation 1.— For the purposes of this section, in computing the period of
limitation—
(i) the time taken in reopening the whole or any part of the proceeding or in
giving an opportunity to the assessee to be re-heard under the proviso to
Section 129; or
(ii) the period during which the assessment proceeding is stayed by an order or
injunction of any court; or
(iii) the period commencing from the date on which the Assessing Officer
intimates the Central Government or the prescribed authority, the
contravention of the provisions of clause (21) or clause (22-B) or clause (23-
A) or clause (23-B) or sub-clause (iv) or sub-clause (v) or sub-clause (vi) or
sub-clause (vi-a) of clause (23-C) of Section 10, under clause (i) of the
proviso to sub-section (3) of Section 143 and ending with the date on which
the copy of the order withdrawing the approval or rescinding the notification,
as the case may be, under those clauses is received by the Assessing Officer;
or
(iv) the period commencing from the date on which the Assessing Officer directs
the assessee to get his accounts audited under sub-section (2-A) of Section
142 and—
(a) ending with the last date on which the assessee is required to furnish a
report of such audit under that sub-section; or
(b) where such direction is challenged before a court, ending with the date on
which the order setting aside such direction is received by the Principal
Commissioner or Commissioner; or
(v) the period commencing from the date on which the Assessing Officer makes
a reference to the Valuation Officer under sub-section (1) of Section 142-A
and ending with the date on which the report of the Valuation Officer is
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received by the Assessing Officer; or
(vi) the period (not exceeding sixty days) commencing from the date on which
the Assessing Officer received the declaration under sub-section (1) of Section
158-A and ending with the date on which the order under sub-section (3) of
that section is made by him; or
(vii) in a case where an application made before the Income-tax Settlement
Commission is rejected by it or is not allowed to be proceeded with by it, the
period commencing from the date on which an application is made before the
Settlement Commission under Section 245-C and ending with the date on
which the order under sub-section (1) of Section 245-D is received by the
Principal Commissioner or Commissioner under sub-section (2) of that
section; or
(viii) the period commencing from the date on which an application is made
before the Authority for Advance Rulings under sub-section (1) of Section 245
-Q and ending with the date on which the order rejecting the application is
received by the Principal Commissioner or Commissioner under sub-section
(3) of Section 245-R; or
(ix) the period commencing from the date on which an application is made
-Q and ending with the date on which the advance ruling pronounced by it is
(x) the period commencing from the date on which a reference or first of the
references for exchange of information is made by an authority competent
under an agreement referred to in Section 90 or Section 90-A and ending with
the date on which the information requested is last received by the Principal
Commissioner or Commissioner or a period of one year, whichever is less; or
(xi) the period commencing from the date on which a reference for declaration of
an arrangement to be an impermissible avoidance arrangement is received by
the Principal Commissioner or Commissioner under sub-section (1) of Section
144-BA and ending on the date on which a direction under sub-section (3) or
sub-section (6) or an order under sub-section (5) of the said section is
received by the Assessing Officer,
shall be excluded:
Provided that where immediately after the exclusion of the aforesaid period, the
period of limitation referred to in sub-sections (1), (2), (3) and sub-section (8)
available to the Assessing Officer for making an order of assessment, reassessment or
recomputation, as the case may be, is less than sixty days, such remaining period
shall be extended to sixty days and the aforesaid period of limitation shall be deemed
to be extended accordingly:
Provided further that where the period available to the Transfer Pricing Officer is
extended to sixty days in accordance with the proviso to sub-section (3-A) of Section
92-CA and the period of limitation available to the Assessing Officer for making an
order of assessment, reassessment or recomputation, as the case may be, is less than
sixty days, such remaining period shall be extended to sixty days and the aforesaid
period of limitation shall be deemed to be extended accordingly:
Provided also that where a proceeding before the Settlement Commission abates
under Section 245-HA, the period of limitation available under this section to the
Assessing Officer for making an order of assessment, reassessment or recomputation,
as the case may be, shall, after the exclusion of the period under sub-section (4) of
Section 245-HA, be not less than one year; and where such period of limitation is less
than one year, it shall be deemed to have been extended to one year; and for the
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purposes of determining the period of limitation under Sections 149,2775 [* * *] 154,
155 and 158-BE and for the purposes of payment of interest under Section 244-A, this
proviso shall also apply accordingly.
Explanation 2.— For the purposes of this section, where, by an order referred to in
clause (i) of sub-section (6),—
(a) any income is excluded from the total income of the assessee for an
assessment year, then, an assessment of such income for another assessment
year shall, for the purposes of Section 150 and this section, be deemed to be
one made in consequence of or to give effect to any finding or direction
contained in the said order; or
(b) any income is excluded from the total income of one person and held to be
the income of another person, then, an assessment of such income on such
other person shall, for the purposes of Section 150 and this section, be
deemed to be one made in consequence of or to give effect to any finding or
direction contained in the said order, if such other person was given an
opportunity of being heard before the said order was passed.]
2776 [153-A. Assessment in case of search or requisition.—2777 [(1)]
Notwithstanding anything contained in Section 139, Section 147, Section 148, Section
149, Section 151 and Section 153, in the case of a person where a search is initiated
under Section 132 or books of account, other documents or any assets are
requisitioned under Section 132-A after the 31st day of May, 2003, the Assessing
Officer shall—
(a) issue notice to such person requiring him to furnish within such period, as may
be specified in the notice, the return of income in respect of each assessment
year falling within six assessment years 2778 [and for the relevant assessment year
or years] referred to in clause (b), in the prescribed form and verified in the
prescribed manner and setting forth such other particulars as may be prescribed
and the provisions of this Act shall, so far as may be, apply accordingly as if such
return were a return required to be furnished under Section 139;
(b) assess or reassess the total income of six assessment years immediately
preceding the assessment year relevant to the previous year in which such
search is conducted or requisition is made 2779 [and of the relevant assessment
year or years]:
Provided that the Assessing Officer shall assess or reassess the total income
in respect of each assessment year falling within such six assessment years FN1108
[and for the relevant assessment year or years]:
Provided further that assessment or reassessment, if any, relating to any
assessment year falling within the period of six assessment years FN1109[and for
the relevant assessment year or years] 2782 [referred to in this sub-section]
pending on the date of initiation of the search under Section 132 or making of
requisition under Section 132-A, as the case may be, shall abate:
2783 [Provided also that the Central Government may by rules made by it and
published in the Official Gazette (except in cases where any assessment or

reassessment has abated under the second proviso), specify the class or classes
of cases in which the Assessing Officer shall not be required to issue notice for
assessing or reassessing the total income for six assessment years immediately
preceding the assessment year relevant to the previous year in which search is
conducted or requisition is made 2784 [and for the relevant assessment year or
years]:]
2785 [Provided also that no notice for assessment or reassessment shall be
issued by the Assessing Officer for the relevant assessment year or years
unless—
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(a) the Assessing Officer has in his possession books of account or other
documents or evidence which reveal that the income, represented in the
form of asset, which has escaped assessment amounts to or is likely to
amount to fifty lakh rupees or more in the relevant assessment year or in
aggregate in the relevant assessment years;
(b) the income referred to in clause (a) or part thereof has escaped
assessment for such year or years; and
(c) the search under Section 132 is initiated or requisition under Section
132-A is made on or after the 1st day of April, 2017.
Explanation 1.— For the purposes of this sub-section, the expression “relevant
assessment year” shall mean an assessment year preceding the assessment year
relevant to the previous year in which search is conducted or requisition is made
which falls beyond six assessment years but not later than ten assessment years
from the end of the assessment year relevant to the previous year in which search
is conducted or requisition is made.
Explanation 2.— For the purposes of the fourth proviso, “asset” shall include
immovable property being land or building or both, shares and securities, loans and
advances, deposits in bank account.]
2786 [(2) If any proceeding initiated or any order of assessment or reassessment
made under sub-section (1) has been annulled in appeal or any other legal
proceeding, then, notwithstanding anything contained in sub-section (1) or Section
153, the assessment or reassessment relating to any assessment year which has
abated under the second proviso to sub-section (1), shall stand revived with effect
from the date of receipt of the order of such annulment by the 2787 [Principal
Commissioner or Commissioner]:
Provided that such revival shall cease to have effect, if such order of annulment
is set aside.]
Explanation.—For the removal of doubts, it is hereby declared that, —
(i) save as otherwise provided in this section, Section 153-B and Section 153-C,
all other provisions of this Act shall apply to the assessment made under this
section;
(ii) in an assessment or reassessment made in respect of an assessment year
under this section, the tax shall be chargeable at the rate or rates as
applicable to such assessment year.
2788
[153-B. Time limit for completion of assessment under Section 153-A.—
(1) Notwithstanding anything contained in Section 153, the Assessing Officer shall
make an order of assessment or reassessment,—
(a) in respect of each assessment year falling within six assessment years 2789
[and for the relevant assessment year or years] referred to in clause (b) of sub
-section (1) of Section 153-A, within a period of twenty-one months from the
end of the financial year in which the last of the authorisations for search
under Section 132 or for requisition under Section 132-A was executed;
(b) in respect of the assessment year relevant to the previous year in which
search is conducted under Section 132 or requisition is made under Section
132-A, within a period of twenty-one months from the end of the financial
year in which the last of the authorisations for search under Section 132 or for
requisition under Section 132-A was executed:
Provided that in case of other person referred to in Section 153-C, the period of
limitation for making the assessment or reassessment shall be the period as referred
to in clause (a) or clause (b) of this sub-section or nine months from the end of the
financial year in which books of account or documents or assets seized or requisitioned
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are handed over under Section 153-C to the Assessing Officer having jurisdiction over
such other person, whichever is later:
2790 [Provided further that in the case where the last of the authorisations for search
under Section 132 or for requisition under Section 132-A was executed during the
financial year commencing on the 1st day of April, 2018,—
(i) the provisions of clause (a) or clause (b) of this sub-section shall have effect,
as if for the words “twenty-one months”, the words “eighteen months” had
been substituted;
(ii) the period of limitation for making the assessment or reassessment in case of
other person referred to in Section 153-C, shall be the period of eighteen
months from the end of the financial year in which the last of the
authorisations for search under Section 132 or for requisition under Section
132-A was executed or twelve months from the end of the financial year in
which books of account or documents or assets seized or requisitioned are
handed over under Section 153-C to the Assessing Officer having jurisdiction
over such other person, whichever is later:
Provided also that in the case where the last of the authorisations for search under
Section 132 or for requisition under Section 132-A was executed during the financial
year commencing on or after the 1st day of April, 2019,—
(i) the provisions of clause (a) or clause (b) of this sub-section shall have effect,
as if for the words “twenty-one months”, the words “twelve months” had been
substituted;
(ii) the period of limitation for making the assessment or reassessment in case of
other person referred to in Section 153-C, shall be the period of twelve
months from the end of the financial year in which the last of the
132-A was executed or twelve months from the end of the financial year in
which books of account or documents or assets seized or requisitioned are
handed over under Section 153-C to the Assessing Officer having jurisdiction
over such other person, whichever is later:
Provided also that in case where the last of the authorisations for search under
Section 132 or for requisition under Section 132-A was executed and during the
course of the proceedings for the assessment or reassessment of total income, a
reference under sub-section (1) of Section 92-CA is made, the period available for
making an order of assessment or reassessment shall be extended by twelve months:
Provided also that in case where during the course of the proceedings for the
assessment or reassessment of total income in case of other person referred to in
Section 153-C, a reference under sub-section (1) of Section 92-CA is made, the period
available for making an order of assessment or reassessment in case of such other
person shall be extended by twelve months.]
(2) The authorisation referred to in clause (a) and clause (b) of sub-section (1)
shall be deemed to have been executed,—
(a) in the case of search, on the conclusion of search as recorded in the last
panchnama drawn in relation to any person in whose case the warrant of
authorisation has been issued; or
(b) in the case of requisition under Section 132-A, on the actual receipt of the
books of account or other documents or assets by the Authorised Officer.
(3) The provisions of this section, as they stood immediately before the
commencement of the Finance Act, 2016, shall apply to and in relation to any order of
assessment or reassessment made before the 1st day of June, 2016:
2791
[Provided that where a notice under Section 153-A or Section 153-C has been
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issued prior to the 1st day of June, 2016 and the assessment has not been
completed by such date due to exclusion of time referred to in the Explanation,
such assessment shall be completed in accordance with the provisions of this
section as it stood immediately before its substitution by the Finance Act, 2016 (28
of 2016).]
Explanation.— In computing the period of limitation under this section—
(i) the period during which the assessment proceeding is stayed by an order or
(ii) the period commencing from the date on which the Assessing Officer directs
142 and—
(a) ending with the last date on which the assessee is required to furnish a
(b) where such direction is challenged before a court, ending with the date on
which the order setting aside such direction is received by the Principal
Commissioner or Commissioner; or
(iii) the period commencing from the date on which the Assessing Officer makes
a reference to the Valuation Officer under sub-section (1) of Section 142-A
and ending with the date on which the report of the Valuation Officer is
received by the Assessing Officer; or
(iv) the time taken in re-opening the whole or any part of the proceeding or in
giving an opportunity to the assessee of being re-heard under the proviso to
Section 129; or
(v) in a case where an application made before the Income-tax Settlement
Commission is rejected by it or is not allowed to be proceeded with by it, the
period commencing from the date on which an application is made before the
Settlement Commission under Section 245-C and ending with the date on
which the order under sub-section (1) of Section 245-D is received by the
Principal Commissioner or Commissioner under sub-section (2) of that
section; or
(vi) the period commencing from the date on which an application is made
-Q and ending with the date on which the order rejecting the application is
(vii) the period commencing from the date on which an application is made
-Q and ending with the date on which the advance ruling pronounced by it is
(viii) the period commencing from the date of annulment of a proceeding or
order of assessment or reassessment referred to in sub-section (2) of Section
153-A, till the date of the receipt of the order setting aside the order of such
annulment, by the Principal Commissioner or Commissioner; or
(ix) the period commencing from the date on which a reference or first of the
references for exchange of information is made by an authority competent
under an agreement referred to in Section 90 or Section 90-A and ending with
the date on which the information requested is last received by the Principal
Commissioner or Commissioner or a period of one year, whichever is less; or
(x) the period commencing from the date on which a reference for declaration of
an arrangement to be an impermissible avoidance arrangement is received by
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the Principal Commissioner or Commissioner under sub-section (1) of Section
144-BA and ending on the date on which a direction under sub-section (3) or
sub-section (6) or an order under sub-section (5) of the said section is
received by the Assessing Officer,
shall be excluded:
period of limitation referred to in clause (a) or clause (b) of this sub-section available
to the Assessing Officer for making an order of assessment or reassessment, as the
case may be, is less than sixty days, such remaining period shall be extended to sixty
days and the aforesaid period of limitation shall be deemed to be extended
accordingly:
Provided further that where the period available to the Transfer Pricing Officer is
extended to sixty days in accordance with the proviso to sub-section (3-A) of Section
92-CA and the period of limitation available to the Assessing Officer for making an
order of assessment or reassessment, as the case may be, is less than sixty days, such
remaining period shall be extended to sixty days and the aforesaid period of limitation
shall be deemed to be extended accordingly.]
2792 [Provided also that where a proceeding before the Settlement Commission
abates under Section 245-HA, the period of limitation available under this section to
the Assessing Officer for making an order of assessment or reassessment, as the case
may be, shall, after the exclusion of the period under sub-section (4) of Section 245-
HA, be not less than one year; and where such period of limitation is less than one
year, it shall be deemed to have been extended to one year.]
153-C. Assessment of income of any other person.—2793 [(1)] 2794
[Notwithstanding anything contained in Section 139, Section 147, Section 148,
Section 149, Section 151 and Section 153, where the Assessing Officer is satisfied
that,—
(a) any money, bullion, jewellery or other valuable article or thing, seized or
requisitioned, belongs to; or
(b) any books of account or documents, seized or requisitioned, pertains or
pertain to, or any information contained therein, relates to,
a person other than the person referred to in Section 153-A, then, the books of
account or documents or assets, seized or requisitioned shall be handed over to the
Assessing Officer having jurisdiction over such other person] 2795 [and that Assessing
Officer shall proceed against each such other person and issue notice and assess or
reassess the income of the other person in accordance with the provisions of Section
153-A, if, that Assessing Officer is satisfied that the books of account or documents or
assets seized or requisitioned have a bearing on the determination of the total income
of such other person 2796 [for six assessment years immediately preceding the
assessment year relevant to the previous year in which search is conducted or
requisition is made and] for the relevant assessment year or years referred to in sub-
section (1) of Section 153-A]:]
2797
[Provided that in case of such other person, the reference to the date of
initiation of the search under Section 132 or making of requisition under Section
132-A in the second proviso to 2798 [sub-section (1) of Section 153-A] shall be
construed as reference to the date of receiving the books of account or documents
or assets seized or requisitioned by the Assessing Officer having jurisdiction over
such other person:]
2799
[Provided further that the Central Government may by rules made by it and
published in the Official Gazette, specify the class or classes of cases in respect of
such other person, in which the Assessing Officer shall not be required to issue
notice for assessing or reassessing the total income for six assessment years
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immediately preceding the assessment year relevant to the previous year in which
search is conducted or requisition is made 2800 [and for the relevant assessment year
or years as referred to in sub-section (1) of Section 153-A] except in cases where
any assessment or reassessment has abated.]
2801 [(2) Where books of account or documents or assets seized or requisitioned
as referred to in sub-section (1) has or have been received by the Assessing Officer
having jurisdiction over such other person after the due date for furnishing the
return of income for the assessment year relevant to the previous year in which
search is conducted under Section 132 or requisition is made under Section 132-A
and in respect of such assessment year—
(a) no return of income has been furnished by such other person and no notice
under sub-section (1) of Section 142 has been issued to him, or
(b) a return of income has been furnished by such other person but no notice
under sub-section (2) of Section 143 has been served and limitation of
serving the notice under sub-section (2) of Section 143 has expired, or
(c) assessment or reassessment, if any, has been made,
before the date of receiving the books of account or documents or assets seized
or requisitioned by the Assessing Officer having jurisdiction over such other
person, such Assessing Officer shall issue the notice and assess or reassess total
income of such other person of such assessment year in the manner provided in
Section 153-A.]
2802 [153-D. Prior approval necessary for assessment in cases or requisition.—
No order of assessment or reassessment shall be passed by an Assessing Officer below

the rank of Joint Commissioner in respect of each assessment year referred to in
clause (b) of 2803 [sub-section (1) of Section 153-A] or the assessment year referred to
in clause (b) of sub-section (1) of Section 153-B, except with the prior approval of the
Joint Commissioner:]
2804 [Provided
that nothing contained in this section shall apply where the
assessment or reassessment order, as the case may be, is required to be passed by
the Assessing Officer with the prior approval of the 2805 [Principal Commissioner or
Commissioner] under sub-section (12) of Section 144-BA.]
154. Rectification of mistake.— (1) With a view to rectifying any mistake
apparent from the record an income tax authority referred to in Section 116 may,—
(a) amend any order passed by it under the provisions of this Act;
2806 [(b) amend any intimation or deemed intimation under sub-section (1) of
Section 143.]
2807
[(c) amend any intimation under sub-section (1) of Section 200-A.]
2808 [(d) amend any intimation under sub-section (1) of Section 206-CB.]
(1-A) Where any matter has been considered and decided in any proceeding by way
of appeal or revision relating to an order referred to in sub-section (1), the authority
passing such order may, notwithstanding anything contained in any law for the time
being in force, amend the order under that sub-section in relation to any matter other
than the matter which has been so considered and decided.
(2) Subject to the other provisions of this section, the authority concerned—
(a) may make an amendment under sub-section (1) of its own motion, and
(b) shall make such amendment for rectifying any such mistake which has been
brought to its notice 2809 [by the assessee or by the deductor 2810 [or by the
collector],] and where the authority concerned is the 2811 [* * *] 2812 [Principal
Commissioner or Commissioner] (Appeals), by the Assessing Officer also.
2813
[* * *]
(3) An amendment, which has the effect of enhancing an assessment or reducing a
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-
refund or otherwise increasing the liability of 2814 [the assessee or the deductor 2815 [or
the collector]], shall not be made under this section unless the authority concerned
has given notice to FN1110[the assessee or the deductor] of its intention so to do and
has allowed FN1111[the assessee or the deductor] a reasonable opportunity of being
heard.
(4) Where an amendment is made under this section, an order shall be passed in
writing by the income tax authority concerned.
2818
[(5) Where any such amendment has the effect of reducing the assessment or
otherwise reducing the liability of the assessee or the deductor 2819 [or the collector],
the Assessing Officer shall make any refund which may be due to such assessee or the
deductor FN1112[or the collector].]
(6) Where any such amendment has the effect of enhancing the assessment or
reducing a refund 2821 [already made or otherwise increasing the liability of the
assessee or the deductor 2822 [or the collector], the Assessing Officer shall serve on the
assessee or the deductor FN1113[or the collector], as the case may be] a notice of
demand in the prescribed form specifying the sum payable, and such notice of
demand shall be deemed to be issued under Section 156 and the provisions of this Act
shall apply accordingly.
(7) Save as otherwise provided in Section 155 or sub-section (4) of Section 186 no
amendment under this section shall be made after the expiry of four years from the
end of the financial year in which the order sought to be amended was passed.
2824
[(8) Without prejudice to the provisions of sub-section (7), where an application
for amendment under this section is made 2825 [by the assessee or by the deductor 2826
[or by the collector]] on or after the 1st day of June, 2001 to an income tax authority
referred to in sub-section (1), the authority shall pass an order, within a period of six
months from the end of the month in which the application is received by it,—
(a) making the amendment; or
(b) refusing to allow the claim.]
155. Other amendments.— (1) 2827 [Where, in respect of any completed
assessment of a partner in a firm for the assessment year commencing on the 1st day
of April, 1992, or any earlier assessment year,] it is found—
(a) on the assessment or reassessment of the firm, or
(b) on any reduction or enhancement made in the income of the firm under this
section, Section 154, Section 250, Section 254, Section 260, Section 262,
Section 263 or Section 264, or
(c) on any order passed under sub-section (4) of Section 245-D on the
application made by the firm,
that the share of the partner in the income of the firm has not been included in the
assessment of the partner or, if included, is not correct, the Assessing Officer may
amend the order of assessment of the partner with a view to the inclusion of the share
in the assessment or the correction thereof, as the case may be; and the provisions of
Section 154 shall, so far as may be, apply thereto, the period of four years specified in
sub-section (7) of that section being reckoned from the end of the financial year in
which the final order was passed in the case of the firm.
2828 [(1-A) Where in respect of any completed assessment of a firm it is found—
(a) on the assessment or reassessment of the firm, or

(b) on any reduction or enhancement made in the income of the firm under this
section, Section 154, Section 250, Section 254, Section 260, Section 262,
Section 263 or Section 264, or
application made by the firm,
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-
that any remuneration to any partner is not deductible under clause (b) of Section 40,
the Assessing Officer may amend the order of assessment of the partner with a view to
adjusting the income of the partner to the extent of the amount not so deductible; and
the provisions of Section 154 shall, so far as may be, apply thereto, the period of four
years specified in sub-section (7) of that section being reckoned from the end of the
financial year in which the final order was passed in the case of the firm.]
(2) Where in respect of any completed assessment of a member of an association of
persons or of a body of individuals it is found—
(a) on the assessment or reassessment of the association or body, or
(b) on any reduction or enhancement made in the income of the association, or
body under this section, Section 154, Section 250, Section 254, Section 260,
Section 262, Section 263 or Section 264, or
application made by the association or body,
that the share of the member in the income of the association or body, as the case
may be, has not been included in the assessment of the member or, if included, is not
correct, the Assessing Officer may amend the order of assessment of the member with
a view to the inclusion of the share in the assessment or the correction thereof, as the
case may be; and the provisions of Section 154 shall, so far as may be, apply thereto,
the period of four years specified in sub-section (7) of that section being reckoned
from the end of the financial year in which the final order was passed in the case of
the association or body, as the case may be.
(3) [Omitted]
(4) Where as a result of proceedings initiated under Section 147, a loss or
depreciation has been recomputed and in consequence thereof it is necessary to
recompute the total income of the assessee for the succeeding year or years to which
the loss or depreciation allowance has been carried forward and set off under the
provisions of sub-section (1) of Section 72, or sub-section (2) of Section 73, or sub-
section (1) or sub-section (3) of Section 74, or sub-section (3) of Section 74-A, the
Assessing Officer may proceed to recompute the total income in respect of such year
or years and make the necessary amendment; and the provisions of Section 154 shall,
so far as may be, apply thereto, the period of four years specified in sub-section (7) of
that section being reckoned from the end of the financial year in which the order was
passed under Section 147.
(4-A) Where an allowance by way of investment allowance has been made wholly or
partly to an assessee in respect of a ship or an aircraft or any machinery or plant in
any assessment year under Section 32-A and subsequently—
(a) at any time before the expiry of eight years from the end of the previous year
in which the ship or aircraft was acquired or the machinery or plant was
installed, the ship, aircraft, machinery or plant is sold or otherwise transferred
by the assessee to any person other than the Government, a local authority, a
corporation established by a Central, State or Provincial Act or a Government
company as defined in Section 617 of the Companies Act, 1956 (1 of 1956),
or in connection with any amalgamation or succession referred to in sub-
section (6) or sub-section (7) of Section 32-A; or
(b) at any time before the expiry of ten years from the end of the previous year
in which the ship or aircraft was acquired or the machinery or plant was
installed, the assessee does not utilise the amount credited to the reserve
account under sub-section (4) of Section 32-A for the purposes of acquiring a
new ship or a new aircraft or new machinery or plant [other than machinery or
plant of the nature referred to in clauses (a), (b) and (d) of the second proviso
to sub-section (1) of Section 32-A] for the purposes of the business of the
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-
undertaking; or
(c) at any time before the expiry of the ten years referred to in clause (b), the
assessee utilises the amount credited to the reserve account under sub-
section (4) of Section 32-A—
(i) for distribution by way of dividends or profits; or
(ii) for remittance outside India as profits or for the creation of any asset
outside India; or
(iii) for any other purpose which is not a purpose of the business of the
undertaking,
the investment allowance originally allowed shall be deemed to have been wrongly
allowed, and the Assessing Officer may, notwithstanding anything contained in this
Act, recompute the total income of the assessee for the relevant previous year and
make the necessary amendment; and the provisions of Section 154 shall, so far as
may be, apply thereto, the period of four years specified in sub-section (7) of that
section being reckoned,—
(i) in a case referred to in clause (a), from the end of the previous year in which
the sale or other transfer took place;
(ii) in a case referred to in clause (b), from the end of the ten years referred to in
that clause;
(iii) in a case referred to in clause (c), from the end of the previous year in which
the amount was utilised.
Explanation.—For the purposes of clause (b), “new ship” or “new aircraft” or “new
machinery or plant” shall have the same meanings as in the Explanation below sub-
section (2) of Section 32-A.
(5) Where an allowance by way of development rebate has been made wholly or
partly to an assessee in respect of a ship, machinery or plant installed after the 31st
day of December, 1957, in any assessment year under Section 33 or under the
corresponding provisions of the Indian Income Tax Act, 1922 (11 of 1922), and
subsequently—
(i) at any time before the expiry of eight years from the end of the previous year
in which the ship was acquired or the machinery or plant was installed, the
ship, machinery or plant is sold or otherwise transferred by the assessee to
any person other than the Government, a local authority, a corporation
established by a Central, State or Provincial Act, or a Government company as
defined in Section 617 of the Companies Act, 1956 (1 of 1956), or in
connection with any amalgamation or succession referred to in sub-section (3)
or sub-section (4) of Section 33; or
(ii) at any time before the expiry of the eight years referred to in sub-section (3)
of Section 34, the assessee utilises the amount credited to the reserve
account under clause (a) of that sub-section—
(a) for distribution by way of dividends or profits; or
(b) for remittance outside India as profits or for the creation of any asset
outside India; or
(c) for any other purpose which is not a purpose of the business of the
undertaking,
the development rebate originally allowed shall be deemed to have been wrongly
section being reckoned from the end of the previous year in which the sale or transfer
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-
took place or the money was so utilised.
(5-A) Where an allowance by way of development allowance has been made wholly
or partly to an assessee in respect of the cost of planting in any area in any
assessment year under Section 33-A and subsequently—
(i) at any time before the expiry of eight years from the end of the previous year
in which such allowance was made, the land is sold or otherwise transferred
by the assessee to any person other than the Government, a local authority, a
corporation established by a Central, State or Provincial Act or a Government
company as defined in Section 617 of the Companies Act, 1956 (1 of 1956),
or in connection with any amalgamation or succession referred to in sub-
section (5) or sub-section (6) of Section 33-A; or
(ii) at any time before the expiry of the eight years referred to in sub-section (3)
of Section 33-A, the assessee utilises the amount credited to the reserve
account under clause (ii) of that sub-section—
(a) for distribution by way of dividends or profits; or
(b) for remittance outside India as profits or for the creation of any asset
outside India; or
(c) for any other purpose which is not a purpose of the business of the
undertaking,
the development allowance originally allowed shall be deemed to have been wrongly
section being reckoned from the end of the previous year in which the sale or transfer
took place or the money was so utilised.
Explanation.—For the purposes of this sub-section, where an assessee having any
leasehold or other right of occupancy in any land transfers such right, he shall be
deemed to have sold or otherwise transferred such land.
(5-B) Where any deduction in respect of any expenditure on scientific research has
been made in any assessment year under sub-section (2-B) of Section 35 and the
assessee fails to furnish a certificate of completion of the programme obtained from
the prescribed authority within one year of the period allowed for its completion by
such authority, the deduction originally made in excess of the expenditure actually
incurred shall be deemed to have been wrongly made, and the Assessing Officer may,
notwithstanding anything contained in this Act, recompute the total income of the
assessee for the relevant previous year and make the necessary amendment; and the
provisions of Section 154 shall, so far as may be, apply thereto, the period of four
years specified in sub-section (7) of that section being reckoned from the end of the
previous year in which the period allowed for the completion of the programme by the
prescribed authority expired.
2829
[(6) * * *]
(7) Where as a result of any proceeding under this Act, in the assessment for any
year of a company in whose case an order under Section 104 has been made for that
year, it is necessary to recompute the distributable income of that company, the
Assessing Officer may proceed to recompute the distributable income and determine
the tax payable on the basis of such recomputation and make the necessary
amendment; and the provisions of Section 154 shall, so far as may be, apply thereto,
from the end of the financial year in which the final order was passed in the case of
the company in respect of that proceeding.
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-
2830
[(7-A) * * *]
(7-B) Where in the assessment for any year, the capital gain arising from the
transfer of a capital asset is not charged under Section 45 by virtue of the provisions
of clause (iv) or, as the case may be, clause (v) of Section 47, but is deemed under
Section 47-A to be income chargeable under the head “Capital gains” of the previous
year in which the transfer took place by reason of—
(i) such capital asset being converted by the transferee company into, or being
treated by it, as stock-in-trade of its business; or
(ii) the parent company or its nominees or, as the case may be, the holding
company ceasing to hold the whole of the share capital of the subsidiary
company,
at any time before the expiry of the period of eight years from the date of such
transfer, the Assessing Officer may, notwithstanding anything contained in this Act,
recompute the total income of the transferor company for the relevant previous year
and make the necessary amendment; and the provisions of Section 154 shall, so far as
section being reckoned from the end of the previous year in which the capital asset
was so converted or treated or in which the parent company or its nominees or, as the
case may be, the holding company ceased to hold the whole of the share capital of the
subsidiary company.
2831 [(8) * * *]
2832
[(8-A) * * *]
2833 [(9) * * *]
2834 [(9-A) * * *]
2835
[(10) * * *]
(10-A) Where in the assessment for any year, a capital gain arising from the
transfer of a long-term capital asset, is charged to tax and within a period of six
months after the date of such transfer, the assessee has made any investment or
deposit in any specified asset within the meaning of Explanation 1 to sub-section (1)
of Section 54-E, the Assessing Officer shall amend the order of assessment so as to
exclude the amount of the capital gain not chargeable to tax under the provisions of
sub-section (1) of Section 54-E; and the provisions of Section 154 shall, so far as may
be, apply thereto, the period of four years specified in sub-section (7) of that section
being reckoned from the end of the financial year in which the assessment was made.
2836 [(10-B) * * *]
2837
[(10-C) * * *]
2838 [(11) Where in the assessment for any year, a capital gain arising from the
transfer of any original asset as is referred to in Section 54-H is charged to tax and
within the period so extended under that section the assessee acquires the new asset
referred to in that section or, as the case may be, deposits or invests the amount of
such capital gain within the period extended, the Assessing Officer shall amend the
order of assessment so as to exclude the amount of the capital gain not chargeable to
tax under any of the sections referred to in Section 54-H; and the provisions of Section
154 shall, so far as may be, apply thereto, the period of four years specified in sub-
section (7) of Section 154 being reckoned from the end of the previous year in which
the compensation was received by the assessee.]
2839 [(11-A) Where in the assessment for any year, the deduction under Section 10-
A or Section 10-B or Section 10-BA has not been allowed on the ground that such
income has not been received in convertible foreign exchange in India, or having been
received in convertible foreign exchange outside India, or having been converted into
convertible foreign exchange outside India, has not been brought into India, by or on
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-
behalf of the assessee with the approval of the Reserve Bank of India or such other
authority as is authorised under any law for the time being in force for regulating
payments and dealings in foreign exchange and subsequently such income or part
thereof has been or is received in, or brought into, India in the manner aforesaid, the
Assessing Officer shall amend the order of assessment so as to allow deduction under
Section 10-A or Section 10-B or Section 10-BA, as the case may be, in respect of such
income or part thereof as is so received in, or brought into, India, and the provisions of
Section 154 shall, so far as may be, apply thereto, and the period of four years shall
be reckoned from the end of the previous year in which such income is so received in,
or brought into, India.]
(12) Where in the assessment for any year commencing before the 1st day of April,
1988, the deduction under Section 80-O in respect of any income, being the whole or
any part of income by way of royalty, commission, fees or any similar payment as is
referred to in that section, has not been allowed on the ground that such income has
not been received in convertible foreign exchange in India, or having been received in
convertible foreign exchange outside India, or having been converted into convertible
foreign exchange outside India, has not been brought into India, by or on behalf of the
assessee in accordance with any law for the time being in force for regulating
payments and dealings in foreign exchange and subsequently such income or part
thereof has been or is received in, or brought into, India in the manner aforesaid, the
Assessing Officer shall amend the order of assessment so as to allow deduction under
Section 80-O in respect of such income or part thereof as is so received in, or brought
into, India; and the provisions of Section 154 shall, so far as may be, apply thereto,
from the end of the previous year in which such income is so received in, or brought
into, India; so, however, that the period from the 1st day of April, 1988 to the 30th
day of September, 1991 shall be excluded in computing the period of four years.
2840 [(13) Where in the assessment for any year, the deduction under Section 80-
HHB or Section 80-HHC or Section 80-HHD or Section 80-HHE or Section 80-O or

Section 80-R or Section 80-RR or Section 80-RRA has not been allowed on the ground
that such income has not been received in convertible foreign exchange in India, or
having been received in convertible foreign exchange outside India, or having been
converted into convertible foreign exchange outside India, has not been brought into
India, by or on behalf of the assessee with the approval of the Reserve Bank of India
or such other authority as is authorised under any law for the time being in force for
regulating payments and dealings in foreign exchange and subsequently such income
or part thereof has been or is received in, or brought into, India in the manner
aforesaid, the Assessing Officer shall amend the order of assessment so as to allow
deduction under Section 80-HHB or Section 80-HHC or Section 80-HHD or Section 80-
HHE or Section 80-O or Section 80-R or Section 80-RR or Section 80-RRA, as the case
may be, in respect of such income or part thereof as is so received in, or brought into,
India; and the provisions of Section 154 shall, so far as may be, apply thereto, and the
period of four years shall be reckoned from the end of the previous year in which such
income is so received in, or brought into India.]
2841 [(14) Where in the assessment for any previous year or in any intimation or
deemed intimation under sub-section (1) of Section 143 for any previous year, 2842
[credit for tax deducted or collected in accordance with the provisions of Section 199
or, as the case may be, Section 206-C] has not been given on the ground that the
certificate furnished under 2843 [Section 203 or Section 206-C] was not filed with the
return and subsequently such certificate is produced before the Assessing Officer
within two years from the end of the assessment year in which such income is
assessable, the Assessing Officer shall amend the order of assessment or any
intimation or deemed intimation under sub-section (1) of Section 143, as the case
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-
may be, and the provisions of Section 154 shall, so far as may be, apply thereto:
Provided that nothing contained in this sub-section shall apply unless the 2844
[income from which the tax has been deducted or income on which the tax has been
collected] has been disclosed in the return of income filed by the assessee for the
relevant assessment year.
2845
[(14-A) Where in the assessment for any previous year or in any intimation or
deemed intimation under sub-section (1) of Section 143 for any previous year, credit
for income-tax paid in any country outside India or a specified territory outside India
referred to in Section 90, Section 90-A or Section 91 has not been given on the ground
that the payment of such tax was under dispute, and if subsequently such dispute is
settled; and the assessee, within six months from the end of the month in which the
dispute is settled, furnishes to the Assessing Officer evidence of settlement of dispute
and evidence of payment of such tax along with an undertaking that no credit in
respect of such amount has directly or indirectly been claimed or shall be claimed for
any other assessment year, the Assessing Officer shall amend the order of assessment
or any intimation or deemed intimation under sub-section (1) of Section 143, as the
case may be, and the provisions of Section 154 shall, so far as may be, apply thereto:
Provided that the credit of tax which was under dispute shall be allowed for the
year in which such income is offered to tax or assessed to tax in India.]
(15) Where in the assessment for any year, a capital gain arising from the transfer
of a capital asset, being land or building or both, is computed by taking the full value
of the consideration received or accruing as a result of the transfer to be the value
adopted or assessed by any authority of a State Government for the purpose of
payment of stamp duty in accordance with sub-section (1) of Section 50-C, and
subsequently such value is revised in any appeal or revision or reference referred to in
clause (b) of sub-section (2) of that section, the Assessing Officer shall amend the
order of assessment so as to compute the capital gain by taking the full value of the
consideration to be the value as so revised in such appeal or revision or reference; and
the provisions of Section 154 shall, so far as may be, apply thereto, and the period of
four years shall be reckoned from the end of the previous year in which the order
revising the value was passed in that appeal or revision or reference.]
_____________________________
W.E.F. 1-4-2004, in Section 155, after sub-section (15) and before the Explanation,
the following sub-sections shall be inserted, namely:—
“(16) Where in the assessment for any year, a capital gain arising from the transfer
of a capital asset, being a transfer by way of compulsory acquisition under any law,
or a transfer, the consideration for which was determined or approved by the Central
Government or the Reserve Bank of India, is computed by taking the compensation
or consideration as referred to in clause (a) or, as the case may be, the
compensation or consideration enhanced or further enhanced as referred to in clause
(b) of sub-section (5) of Section 45, to be the full value of consideration deemed to
be received or accruing as a result of the transfer of the asset and subsequently such
compensation or consideration is reduced by any court, Tribunal or other authority,
the Assessing Officer shall amend the order of assessment so as to compute the
capital gain by taking the compensation or consideration as so reduced by the court,
Tribunal or any other authority to be the full value of consideration; and the
provisions of Section 154 shall, so far as may be, apply thereto, and the period of
four years shall be reckoned from the end of the previous year in which the order
reducing the compensation was passed by the court, Tribunal or other authority.
(17) Where a deduction has been allowed to an assessee in any assessment year
under Section 80-RRB in respect of any patent, and subsequently by an order of the
Controller or the High Court under the Patents Act, 1970,—
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-
(i) the patent was revoked; or
(ii) the name of the assessee was excluded from the patents register as patentee in
respect of that patent;
the deduction from the income by way of royalty attributable to the period during
which the patent had been revoked or the period for which the assessee’s name was
excluded as patentee in respect of that patent, shall be deemed to have been
wrongly allowed and the Assessing Officer may, notwithstanding anything contained
in this Act, recompute the total income of the assessee for the relevant previous year
and make necessary amendment; and the provisions of Section 154 shall, so far as
section being reckoned from the end of the previous year in which such order of the
Controller referred to in clause (b) of sub-section (1), or the High Court referred to in
clause (i) of sub-section (1) of Section 2, of the Patents Act, 1970, as the case may
be, was passed.”.
vide Finance Act, 2003, S. 66
_____________________________
Explanation.—For the purposes of this section,—
(a) “additional compensation” shall have the meaning assigned to in clause (1)
of the Explanation to sub-section (2) of Section 54;
(b) “additional consideration”, in relation to the transfer of any capital asset the
consideration for which was determined or approved by the Central
Government or the Reserve Bank of India, means the difference between the
amount of consideration for such transfer as enhanced by any court, tribunal
or other authority and the amount of consideration which would have been
payable if such enhancement had not been made.
156. Notice of demand.—5161 [(1)] When any tax, interest, penalty, fine or any
other sum is payable in consequence of any order passed under this Act, the Assessing
Officer shall serve upon the assessee a notice of demand in the prescribed form
specifying the sum so payable:
2846 [Provided that where any sum is determined to be payable by the assessee or
2847 [the deductor or the collector under sub-section (1) of Section 143 or sub-
section (1) of Section 200-A or sub-section (1) of Section 206-CB], the intimation
under those sub-sections shall be deemed to be a notice of demand for the
purposes of this section.]
5162 [(2) Where the income of the assessee of any assessment year, beginning on or
after the 1st day of April, 2021, includes income of the nature specified in clause (vi)
of sub-section (2) of Section 17 and such specified security or sweat equity shares
referred to in the said clause are allotted or transferred directly or indirectly by the
current employer, being an eligible start-up referred to in Section 80-IAC, the tax or
interest on such income included in the notice of demand referred to in sub-section
(1) shall be payable by the assessee within fourteen days—
(i) after the expiry of forty-eight months from the end of the relevant
assessment year; or
(ii) from the date of the sale of such specified security or sweat equity share by
the assessee; or
(iii) from the date of the assessee ceasing to be the employee of the employer
who allotted or transferred him such specified security or sweat equity share,
whichever is the earliest.]
157. Intimation of loss.— When, in the course of the assessment of the total
income of any assessee, it is established that a loss has taken place which the
assessee is entitled to have carried forward and set off under the provisions of sub-
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-
section (1) of Section 72, sub-section (2) of Section 73, sub-section (1) or sub-section
(3) of Section 74 or sub-section (3) of Section 74-A, the Assessing Officer shall notify
to the assessee by an order in writing the amount of the loss as computed by him for
the purposes of sub-section (1) of Section 72, sub-section (2) of Section 73, sub-
section (1) or sub-section (3) of Section 74 or sub-section (3) of Section 74-A.
158. Intimation of assessment of firm.—2848 [Whenever, in respect of the
assessment year commencing on the 1st day of April, 1992, or any earlier assessment
year, a registered firm is assessed], or an unregistered firm is assessed, under the
provisions of clause (b) of Section 183, the Assessing Officer shall notify to the firm by
an order in writing the amount of its total income assessed and the apportionment
thereof between the several partners.
158-A. Procedure when assessee claims identical question of law is pending
before High Court or Supreme Court.— (1) Notwithstanding anything contained in
this Act, where an assessee claims that any question of law arising in his case for an
assessment year which is pending before the Assessing Officer or any appellate
authority (such case being hereafter in this section referred to as the relevant case) is
identical with a question of law arising in his case for another assessment year which
is pending before the High Court on a reference under Section 256 or 2849 [before the
Supreme Court on a reference under Section 257 or in appeal under Section 260-A
before the High Court or in appeal under Section 261 before the Supreme Court] (such
case being hereafter in this section referred to as the other case), he may furnish to
the Assessing Officer or the appellate authority, as the case may be, a declaration in
the prescribed form and verified in the prescribed manner, that if the Assessing Officer
or the appellate authority, as the case may be, agrees to apply in the relevant case the
final decision on the question of law in the other case, he shall not raise such question
of law in the relevant case in appeal before any appellate authority or 2850 [in appeal
before the High Court under Section 260-A or in appeal before the Supreme Court
under Section 261].
(2) Where a declaration under sub-section (1) is furnished to any appellate
authority, the appellate authority shall call for a report from the Assessing Officer on
the correctness of the claim made by the assessee and, where the Assessing Officer
makes a request to the appellate authority to give him an opportunity of being heard
in the matter, the appellate authority shall allow him such opportunity.
(3) The Assessing Officer or the appellate authority, as the case may be, may, by
order in writing,—
(i) admit the claim of the assessee if he or it is satisfied that the question of law
arising in the relevant case is identical with the question of law in the other
case; or
(ii) reject the claim if he or it is not so satisfied.
(4) Where a claim is admitted under sub-section (3),—
(a) the Assessing Officer or, as the case may be, the appellate authority may
make an order disposing of the relevant case without awaiting the final
decision on the question of law in the other case; and
(b) the assessee shall not be entitled to raise, in relation to the relevant case,
such question of law in appeal before any appellate authority or 2851 [in appeal
before the High Court under Section 260-A or the Supreme Court under
Section 261].
(5) When the decision on the question of law in the other case becomes final, it
shall be applied to the relevant case and the Assessing Officer or the appellate
authority, as the case may be, shall, if necessary, amend the order referred to in
clause (a) of sub-section (4) conformably to such decision.
(6) An order under sub-section (3) shall be final and shall not be called in question
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-
in any proceeding by way of appeal, reference or revision under this Act.

Explanation.—In this section,—
(a) “appellate authority” means the Deputy Commissioner (Appeals) or the 2852
[Principal Commissioner or Commissioner] (Appeals), or the Appellate
Tribunal;
(b) “case”, in relation to an assessee, means any proceeding under this Act for
the assessment of the total income of the assessee or for the imposition of any
penalty or fine on him.
2853 [158-AA. Procedure when in an appeal by revenue an identical question
of law is pending before Supreme Court.— (1) Notwithstanding anything contained

in this Act, where the Commissioner or Principal Commissioner is of the opinion that
any question of law arising in the case of an assessee for any assessment year (such
case being herein referred to as relevant case) is identical with a question of law
arising in his case for another assessment year which is pending before the Supreme
Court, in an appeal under Section 261 or in a special leave petition under Article 136
of the Constitution, against the order of the High Court in favour of the assessee (such
case being herein referred to as the other case), he may, instead of directing the
Assessing Officer to appeal to the Appellate Tribunal under sub-section (2) or sub-
section (2-A) of Section 253, direct the Assessing Officer to make an application to the
Appellate Tribunal in the prescribed form within sixty days from the date of receipt of
the order of the Commissioner (Appeals) stating that an appeal on the question of law
arising in the relevant case may be filed when the decision on the question of law
becomes final in the other case.
(2) The Commissioner or Principal Commissioner shall direct the Assessing Officer
to make an application under sub-section (1) only if an acceptance is received from
the assessee to the effect that the question of law in the other case is identical to that
arising in the relevant case; and in case no such acceptance is received, the
Commissioner or Principal Commissioner shall proceed in accordance with the
provisions contained in sub-section (2) or sub-section (2-A) of Section 253.
(3) Where the order of the Commissioner (Appeals) referred to in sub-section (1) is
not in conformity with the final decision on the question of law in the other case, the
Commissioner or Principal Commissioner may direct the Assessing Officer to appeal to
the Appellate Tribunal against such order and save as otherwise provided in this
section all other provisions of Part B of Chapter XX shall apply accordingly.
(4) Every appeal under sub-section (3) shall be filed within sixty days from the date
on which the order of the Supreme Court in the other case is communicated to the
Commissioner or Principal Commissioner.]
158-B. Definitions.— In this Chapter, unless the context otherwise requires,—
2854 [(a) “block period” means the period comprising previous years relevant to six
assessment years preceding the previous year in which the search was
conducted under Section 132 or any requisition was made under Section 132-
A and also includes the period up to the date of the commencement of such
search or date of such requisition in the previous year in which the said search
was conducted or requisition was made:
Provided that where the search is initiated or the requisition is made before
the 1st day of June, 2001, the provisions of this clause shall have effect as if
for the words “six assessment years”, the words “ten assessment years” had
been substituted;]
(b) “undisclosed income” includes any money, bullion, jewellery or other valuable
article or thing or any income based on any entry in the books of account or
other documents or transactions, where such money, bullion, jewellery,
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-
valuable article, thing, entry in the books of account or other document or
transaction represents wholly or partly income or property which has not been
or would not have been disclosed for the purposes of this Act 2855 [, or any
expense, deduction or allowance claimed under this Act which is found to be
false].
158-BA. Assessment of undisclosed income as a result of search.— (1)
Notwithstanding anything contained in any other provisions of this Act, where after the
30th day of June, 1995 a search is initiated under Section 132 or books of account,
other documents or any assets are requisitioned under Section 132-A in the case of
any person, then, the Assessing Officer shall proceed to assess the undisclosed income
in accordance with the provisions of this Chapter.
(2) The total undisclosed income relating to the block period shall be charged to
tax, at the rate specified in Section 113, as income of the block period irrespective of
the previous year or years to which such income relates and irrespective of the fact
whether regular assessment for any one or more of the relevant assessment years is
pending or not.
2856
[Explanation.—For the removal of doubts, it is hereby declared that—
(a) the assessment made under this Chapter shall be in addition to the regular
assessment in respect of each previous year included in the block period;
(b) the total undisclosed income relating to the block period shall not include the
income assessed in any regular assessment as income of such block period;
(c) the income assessed in this Chapter shall not be included in the regular
assessment of every previous year included in the block period.]
(3) Where the assessee proves to the satisfaction of the Assessing officer that any
part of income referred to in sub-section (1) relates to an assessment year for which
the previous year has not ended or the date of filing the return of income under sub-
section (1) of Section 139 for any previous year has not expired, and such income or
the transactions relating to such income are recorded on or before the date of the
search or requisition in the books of account or other documents maintained in the
normal course relating to such previous years, the said income shall not be included in
the block period.
158-BB. Computation of undisclosed income of the block period.— (1) The
undisclosed income of the block period shall be the aggregate of the total income of
the previous years falling within the block period computed, 2857 [in accordance with
the provisions of this Act, on the basis of evidence found as a result of search or
requisition of books of account or other documents and such other materials or
information as are available with the Assessing Officer and relatable to such evidence],
as reduced by the aggregate of the total income, or as the case may be, as increased
by the aggregate of the losses of such previous years, determined,—
(a) where assessments under Section 143 or Section 144 or Section 147 2858
[have been concluded prior to the date of commencement of the search or the
date of requisition], on the basis of such assessments;
(b) where returns of income have been filed under Section 139 2859 [or in
response to a notice issued under sub-section (1) of Section 142 or Section
148] but assessments have not been made till the date of search or
requisition, on the basis of the income disclosed in such returns;
2860 [(c) where the due date for filing a return of income has expired, but no
return of income has been filed,—

(A) on the basis of entries as recorded in the books of account and other
documents maintained in the normal course on or before the date of the
search or requisition where such entries result in computation of loss for
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-
any previous year falling in the block period; or
(B) on the basis of entries as recorded in the books of account and other
documents maintained in the normal course on or before the date of the
search or requisition where such income does not exceed the maximum
amount not chargeable to tax for any previous year falling in the block
period;
(c-a) where the due date for filing a return of income has expired, but no return
of income has been filed, as nil, in cases not falling under clause (c);]
(d) where the previous year has not ended or the date of filing the return of
income under sub-section (1) of Section 139 has not expired, on the basis of
entries relating to such income or transactions as recorded in the books of
account and other documents maintained in the normal course on or before
the date of the search or requisition relating to such previous years;
(e) where any order of settlement has been made under sub-section (4) of
Section 245-D, on the basis of such order;
(f) where an assessment of undisclosed income had been made earlier under
clause (c) of Section 158-BC, on the basis of such assessment.
Explanation.—For the purposes of determination of undisclosed income,—
(a) the total income or loss of each previous year shall, for the purpose of
aggregation, be taken as the total income or loss computed in accordance
with the provisions of 2861 [this Act] without giving effect to set off of
brought forward losses under Chapter VI or unabsorbed depreciation under
sub-section (2) of Section 32:
2862 [Provided that in computing deductions under Chapter VI-A for the
purposes of the said aggregation, effect shall be given to set off of brought
forward losses under Chapter VI or unabsorbed depreciation under sub-
section (2) of Section 32;]
2863 [(b) of a firm, returned income and total income assessed for each of the
previous years falling within the block period shall be income determined
before allowing deduction of salary, interest, commission, bonus or
remuneration by whatever name called 2864 [to any partner not being a
working partner]:
Provided that undisclosed income of the firm so determined shall not be
chargeable to tax in the hands of the partners, whether on allocation or on
account of enhancement;]
(c) assessment under Section 143 includes determination of income under sub-
section (1) or sub-section (1-B) of Section 143.
(2) In computing the undisclosed income of the block period, the provisions of
Sections 68, 69, 69-A, 69-B and 69-C shall, so far as may be, apply and references to
“financial year” in those sections shall be construed as references to the relevant
previous year falling in the block period including the previous year ending with the
date of search or of the requisition.
(3) The burden of proving to the satisfaction of the Assessing Officer that any
undisclosed income had already been disclosed in any return of income filed by the
assessee before the commencement of search or of the requisition, as the case may
be, shall be on the assessee.
(4) For the purpose of assessment under this Chapter, losses brought forward from
the previous year under Chapter VI or unabsorbed depreciation under sub-section (2)
of Section 32 shall not be set off against the undisclosed income determined in the
block assessment under this Chapter, but may be carried forward for being set off in
the regular assessments.
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-
158-BC. Procedure for block assessment.— Where any search has been
conducted under Section 132 or books of account, other documents or assets are
requisitioned under Section 132-A, in the case of any person, then,—
2865
[(a) the Assessing Officer shall—
(i) in respect of search initiated or books of account or other documents or any
assets requisitioned after the 30th day of June, 1995 but before the 1st day
of January, 1997, serve a notice to such person requiring him to furnish
within such time not being less than fifteen days;
(ii) in respect of search initiated or books of account or other documents or
any assets requisitioned on or after the 1st day of January, 1997 serve a
notice to such person requiring him to furnish within such time not being
less than fifteen days but not more than forty-five days,
as may be specified in the notice a return in the prescribed form and verified
in the same manner as a return under clause (i) of sub-section (1) of Section
142, setting forth his total income including the undisclosed income for the
block period:
Provided that no notice under Section 148 is required to be issued for the
purpose of proceeding under this Chapter:
Provided further that a person who has furnished a return under this clause
shall not be entitled to file a revised return;]
(b) the Assessing Officer shall proceed to determine the undisclosed income of
the block period in the manner laid down in Section 158-BB and the
provisions of Section 142, sub-sections (2) and (3) of Section 143 2866 [,
Section 144 and Section 145] shall, so far as may be, apply;
(c) the Assessing Officer, on determination of the undisclosed income of the
block period in accordance with this Chapter, shall pass an order of
assessment and determine the tax payable by him on the basis of such
assessment;
2867 [(d) the assets seized under Section 132 or requisitioned under Section 132-
A shall be dealt with in accordance with the provisions of Section 132-B.]

158-BD. Undisclosed income of any other person.— Where the Assessing
Officer is satisfied that any undisclosed income belongs to any person, other than the
person with respect to whom search was made under Section 132 or whose books of
account or other documents or any assets were requisitioned under Section 132-A,
then, the books of account, other documents or assets seized or requisitioned shall be
handed over to the Assessing Officer having jurisdiction over such other person and
that Assessing Officer shall proceed 2868 [under Section 158-BC] against such other
person and the provisions of this Chapter shall apply accordingly.
158-BE. Time limit for completion of block assessment.—2869 [(1) The order
under Section 158-BC shall be passed—
(a) within one year from the end of the month in which the last of the
132-A, as the case may be, was executed in cases where a search is initiated
or books of account or other documents or any assets are requisitioned after
the 30th day of June, 1995 but before the 1st day of January, 1997;
(b) within two years from the end of the month in which the last of the
132-A, as the case may be, was executed in cases where a search is initiated
or books of account or other documents or any assets are requisitioned on or
after the 1st day of January, 1997.
(2) The period of limitation for completion of block assessment in the case of the
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-
other person referred to in Section 158-BD shall be—
(a) one year from the end of the month in which the notice under this Chapter
was served on such other person in respect of search initiated or books of
account or other documents or any assets requisitioned after the 30th day of
June, 1995 but before the 1st day of January, 1997; and
(b) two years from the end of the month in which the notice under this Chapter
was served on such other person in respect of search initiated or books of
account or other documents or any assets are requisitioned on or after the 1st
day of January, 1997.]
2870
[Explanation 1.—In computing the period of limitation for the purposes of this
section,—
(i) the period during which the assessment proceeding is stayed by an order or
(ii) the period commencing from the day on which the Assessing Officer directs
142 and ending on the day on which the assessee is required to furnish a
(iii) the time taken in reopening the whole or any part of the proceeding or
giving an opportunity to the assessee to be re-heard under the proviso to
Section 129; or
(iv) in a case where an application made before the Settlement Commission
under Section 245-C is rejected by it or is not allowed to be proceeded with by
it, the period commencing on the date on which such application is made and
ending with the date on which the order under sub-section (1) of Section 245-
D is received by the 2871 [Principal Commissioner or Commissioner] under sub-
section (2) of that section,
shall be excluded:
period of limitation referred to in sub-section (1) or sub-section (2) available to the
Assessing Officer for making an order under clause (c) of Section 158-BC is less than
sixty days, such remaining period shall be extended to sixty days and the aforesaid
period of limitation shall be deemed to be extended accordingly.]
2872 [Explanation 2.—For the removal of doubts, it is hereby declared that the
authorisation referred to in sub-section (1) shall be deemed to have been executed,—

(a) in the case of search, on the conclusion of search as recorded in the last
panchnama drawn in relation to any person in whose case the warrant of
authorisation has been issued;
(b) in the case of requisition under Section 132-A, on the actual receipt of the
books of account or other documents or assets by the Authorised Officer.]
158-BF. Certain interests and penalties not to be levied or imposed.— No
interest under the provisions of Sections 234-A, 234-B or 234-C or penalty under the
provisions of clause (c) of sub-section (1) of Section 271 or Section 271-A or Section
271-B shall be levied or imposed upon the assessee in respect of the undisclosed
income determined in the block assessment.
2873 [158-BFA. Levy of interest and penalty in certain cases.— (1) Where the
return of total income including undisclosed income for the block period, in respect of
search initiated under Section 132 or books of account, other documents or any assets
requisitioned under Section 132-A on or after the 1st day of January, 1997 as required
by a notice under clause (a) of Section 158-BC, is furnished after the expiry of the
period specified in such notice, or is not furnished, the assessee shall be liable to pay
simple interest at the rate of 2874 [one per cent] of the tax on undisclosed income,
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-
determined under clause (c) of Section 158-BC, for every month or part of a month
comprised in the period commencing on the day immediately following the expiry of
the time specified in the notice, and—
(a) where the return is furnished after the expiry of the time aforesaid, ending on
the date of furnishing the return; or
(b) where no return has been furnished, on the date of completion of assessment
under clause (c) of Section 158-BC.
(2) The Assessing Officer or the 2875 [Principal Commissioner or Commissioner]
(Appeals) in the course of any proceedings under this Chapter, may direct that a
person shall pay by way of penalty a sum which shall not be less than the amount of
tax leviable but which shall not exceed three times the amount of tax so leviable in
respect of the undisclosed income determined by the Assessing Officer under clause
(c) of Section 158-BC:
Provided that no order imposing penalty shall be made in respect of a person if—
(i) such person has furnished a return under clause (a) of Section 158-BC;
(ii) the tax payable on the basis of such return has been paid or, if the assets
seized consist of money, the assessee offers the money so seized to be
adjusted against the tax payable;
(iii) evidence of tax paid is furnished along with the return; and
(iv) an appeal is not filed against the assessment of that part of income which is
shown in the return:
Provided further that the provisions of the preceding proviso shall not apply where
the undisclosed income determined by the Assessing Officer is in excess of the income
shown in the return and in such cases the penalty shall be imposed on that portion of
undisclosed income determined which is in excess of the amount of undisclosed
income shown in the return.
(3) No order imposing a penalty under sub-section (2) shall be made,—
(a) unless an assessee has been given a reasonable opportunity of being heard;
(b) by the Assistant Commissioner or Deputy Commissioner or the Assistant
Director or Deputy Director, as the case may be, where the amount of penalty
exceeds twenty thousand rupees except with the previous approval of the
Joint Commissioner or the Joint Director, as the case may be;
(c) in a case where the assessment is the subject-matter of an appeal to the
FN1114 [Principal Commissioner or Commissioner] (Appeals) under Section 246
2877 [or Section 246-A] or an appeal to the Appellate Tribunal under Section
253, after the expiry of the financial year in which the proceedings, in the
course of which action for the imposition of penalty has been initiated, are
completed, or six months from the end of the month in which the order of the
FN1115 [Principal Commissioner or Commissioner] (Appeals) or, as the case may
be, the Appellate Tribunal is received by the 2879 [Principal Chief Commissioner
or Chief Commissioner] or the FN1116[Principal Commissioner or Commissioner],
whichever period expires later;
(d) in a case where the assessment is the subject-matter of revision under
Section 263, after the expiry of six months from the end of the month in
which such order of revision is passed;
(e) in any case other than those mentioned in clauses (c) and (d), after the
expiry of the financial year in which the proceedings, in the course of which
action for the imposition of penalty has been initiated, are completed, or six
months from the end of the month in which action for imposition of penalty is
initiated, whichever period expires later;
(f) in respect of search initiated under Section 132 or books of account, other
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-
documents or any assets requisitioned under Section 132-A, after the 30th
day of June, 1995 but before the 1st day of January, 1997.
Explanation.—In computing the period of limitation for the purpose of this
section,—
(i) the time taken in giving an opportunity to the assessee to be reheard under
the proviso to Section 129;
(ii) the period during which the immunity granted under Section 245-H remained
in force; and
(iii) the period during which the proceedings under sub-section (2) are stayed by
an order or injunction of any court,
shall be excluded.
(4) An Income tax authority on making an order under sub-section (2) imposing a
penalty, unless he is himself an Assessing Officer, shall forthwith send a copy of such
order to the Assessing Officer.]
2881 [158-BG. Authority competent to make the block assessment.— The order
of assessment for the block period shall be passed by an Assessing Officer not below
the rank of an Assistant Commissioner or Deputy Commissioner or an Assistant
Director or Deputy Director, as the case may be:
Provided that no such order shall be passed without the previous approval of—
(a) the 2882 [Principal Commissioner or Commissioner] or Director, as the case
may be, in respect of search initiated under Section 132 or books of account,
other documents or any assets requisitioned under Section 132-A, after the
30th day of June, 1995 but before the 1st day of January, 1997;
(b) the Joint Commissioner or the Joint Director, as the case may be, in respect
of search initiated under Section 132 or books of account, other documents or
any assets requisitioned under Section 132-A, on or after the 1st day of
January, 1997.]
158-BH. Application of other provisions of this Act.— Save as otherwise
provided in this Chapter, all other provisions of this Act shall apply to assessment
made under this Chapter.]
2883 [158-BI. Chapter not to apply after certain date.— The provisions of this
Chapter shall not apply where a search is initiated under Section 132, or books of
account, other documents or any assets are requisitioned under Section 132-A after
the 31st day of May, 2003.]
159. Legal representatives.— (1) Where a person dies, his legal representative
shall be liable to pay any sum which the deceased would have been liable to pay if he
had not died, in the like manner and to the same extent as the deceased.
(2) For the purpose of making an assessment (including an assessment,
reassessment or recomputation under Section 147) of the income of the deceased and
for the purpose of levying any sum in the hands of the legal representative in
accordance with the provisions of sub-section (1),—
(a) any proceeding taken against the deceased before his death shall be deemed
to have been taken against the legal representative and may be continued
against the legal representative from the stage at which it stood on the date
of the death of the deceased;
(b) any proceeding which could have been taken against the deceased if he had
survived, may be taken against the legal representative; and
(c) all the provisions of this Act shall apply accordingly.
(3) The legal representative of the deceased shall, for the purposes of this Act, be
deemed to be an assessee.
(4) Every legal representative shall be personally liable for any tax payable by him
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-
in his capacity as legal representative if, while his liability for tax remains
undischarged, he creates a charge on or disposes of or parts with any assets of the
estate of the deceased, which are in, or may come into, his possession, but such
liability shall be limited to the value of the asset so charged, disposed of or parted
with.
(5) The provisions of sub-section (2) of Section 161, Section 162 and Section 167,
shall, so far as may be and to the extent to which they are not inconsistent with the
provisions of this section, apply in relation to a legal representative.
(6) The liability of a representative under this section shall, subject to the
provisions of sub-section (4) and sub-section (5), be limited to the extent to which the
estate is capable of meeting the liability.
160. Representative assessee.— (1) For the purposes of this Act,”representative
assessee” means—
(i) in respect of the income of a non-resident specified in sub-section (1) of
Section 9, the agent of the non-resident, including a person who is treated as
an agent under Section 163;
(ii) in respect of the income of a minor, lunatic or idiot, the guardian or manager
who is entitled to receive or is in receipt of such income on behalf of such
minor, lunatic or idiot;
(iii) in respect of income which the Court of Wards, the Administrator-General,
the Official Trustee or any receiver or manager (including any person,
whatever his designation, who in fact manages property on behalf of another)
appointed by or under any order of a court, receives or is entitled to receive,
on behalf or for the benefit of any person, such Court of Wards, Administrator-
General, Official Trustee, receiver or manager;
(iv) in respect of income which a trustee appointed under a trust declared by a
duly executed instrument in writing whether testamentary or otherwise
including any wakf deed which is valid under the Mussalman Wakf Validating
Act, 1913 (6 of 1913), receives or is entitled to receive on behalf or for the
benefit of any person, such trustee or trustees;
(v) in respect of income which a trustee appointed under an oral trust receives or
is entitled to receive on behalf or for the benefit of any person, such trustee or
trustees.
Explanation 1.—A trust which is not declared by a duly executed instrument in
writing including any wakf deed which is valid under the Mussalman Wakf Validating
Act, 1913 (6 of 1913), shall be deemed, for the purposes of clause (iv), to be a trust
declared by a duly executed instrument in writing if a statement in writing, signed by
the trustee or trustees, setting out the purpose or purposes of the trust, particulars as
to the trustee or trustees, the beneficiary or beneficiaries and the trust property, is
forwarded to the Assessing Officer,—
(i) where the trust has been declared before the 1st day of June, 1981, within a
period of three months from that day; and
(ii) in any other case, within three months from the date of declaration of the
trust.
Explanation 2.—For the purposes of clause (v), “oral trust” means a trust which is
not declared by a duly executed instrument in writing including any wakf deed which
is valid under the Mussalman Wakf Validating Act, 1913 (6 of 1913), and which is not
deemed under Explanation 1 to be a trust declared by a duly executed instrument in
writing.
(2) Every representative assessee shall be deemed to be an assessee for the
purposes of this Act.
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-
161. Liability of representative assessee.— (1) Every representative assessee,
as regards the income in respect of which he is a representative assessee, shall be
subject to the same duties, responsibilities and liabilities as if the income were income
received by or accruing to or in favour of him beneficially, and shall be liable to
assessment in his own name in respect of that income; but any such assessment shall
be deemed to be made upon him in his representative capacity only, and the tax shall,
subject to the other provisions contained in this Chapter, be levied upon and recovered
from him in like manner and to the same extent as it would be leviable upon and
recoverable from the person represented by him.
(1-A) Notwithstanding anything contained in sub-section (1) where any income in
respect of which the person mentioned in clause (iv) of sub-section (1) of Section 160
is liable as representative assessee consists of, or includes, profits and gains of
business, tax shall be charged on the whole of the income in respect of which such
person is so liable at the maximum marginal rate:
Provided that the provisions of this sub-section shall not apply where such profits
and gains are receivable under a trust declared by any person by will exclusively for
the benefit of any relative dependant on him for support and maintenance, and such
trust is the only trust so declared by him.
Explanation.—2884 [* * *]
(2) Where any person is, in respect of any income, assessable under this Chapter in
the capacity of a representative assessee, he shall not, in respect of that income, be
assessed under any other provision of this Act.
162. Right of representative assessee to recover tax paid.— (1) Every
representative assessee who, as such, pays any sum under this Act, shall be entitled
to recover the sum so paid from the person on whose behalf it is paid, or to retain out
of any moneys that may be in his possession or may come to him in his representative
capacity, an amount equal to the sum so paid.
(2) Any representative assessee, or any person who apprehends that he may be
assessed as a representative assessee, may retain out of any money payable by him to
the person on whose behalf he is liable to pay tax (hereinafter in this section referred
to as the principal), a sum equal to his estimated liability under this Chapter, and in
the event of any disagreement between the principal and such representative assessee
or person as to the amount to be so retained, such representative assessee or person
may secure from the Assessing Officer a certificate stating the amount to be so
retained pending final settlement of the liability, and the certificate so obtained shall
be his warrant for retaining that amount.
(3) The amount recoverable from such representative assessee or person at the
time of final settlement shall not exceed the amount specified in such certificate,
except to the extent to which such representative assessee or person may at such
time have in his hands additional assets of the principal.
163. Who may be regarded as agent.— (1) For the purposes of this Act, “agent”,
in relation to a non-resident, includes any person in India—
(a) who is employed by or on behalf of the non-resident; or
(b) who has any business connection with the non-resident; or
(c) from or through whom the non-resident is in receipt of any income, whether
directly or indirectly; or
(d) who is the trustee of the non-resident;
and includes also any other person who, whether a resident or non-resident, has
acquired by means of a transfer, a capital asset in India:
Provided that a broker in India who, in respect of any transactions, does not deal
directly with or on behalf of a non-resident principal but deals with or through a non-
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resident broker shall not be deemed to be an agent under this section in respect of
such transactions, if the following conditions are fulfilled, namely:—
(i) the transactions are carried on in the ordinary course of business through the
first-mentioned broker; and
(ii) the non-resident broker is carrying on such transactions in the ordinary
course of his business and not as a principal.
_____________________________
W.E.F. 1-4-2004, in Section 163, in sub-section (1), after the proviso, the following
Explanation shall be inserted, namely:—
“Explanation.—For the purposes of this sub-section, the expression ‘business
connection’ shall have the meaning assigned to it in Explanation 2 to clause (i) of
sub-section (1) of Section 9 of this Act.”.
_____________________________
(2) No person shall be treated as the agent of a non-resident unless he has had an
opportunity of being heard by the Assessing Officer as to his liability to be treated as
such.
164. Charge of tax where share of beneficiaries unknown.— (1) Subject to the
provisions of sub-sections (2) and (3), where any income in respect of which the
persons mentioned in clauses (iii) and (iv) of sub-section (1) of Section 160 are liable
as representative assessees or any part thereof is not specifically receivable on behalf
or for the benefit of any one person or where the individual shares of the persons on
whose behalf or for whose benefit such income or such part thereof is receivable are
indeterminate or unknown (such income, such part of the income and such persons
being hereafter in this section referred to as “relevant income”, “part of relevant
income” and “beneficiaries”, respectively), tax shall be charged on the relevant income
or part of relevant income at the maximum marginal rate:
Provided that in a case where—
(i) none of the beneficiaries has any other income chargeable under this Act
exceeding the maximum amount not chargeable to tax in the case of an
association of persons or is a beneficiary under any other trust; or
(ii) the relevant income or part of relevant income is receivable under a trust
declared by any person by will and such trust is the only trust so declared by
him; or
(iii) the relevant income or part of relevant income is receivable under a trust
created before the 1st day of March, 1970 by a non-testamentary instrument
and the Assessing Officer is satisfied, having regard to all the circumstances
existing at the relevant time, that the trust was created bona fide exclusively
for the benefit of the relatives of the settlor, or where the settlor is a Hindu
undivided family, exclusively for the benefit of the members of such family, in
circumstances where such relatives or members were mainly dependent on
the settlor for their support and maintenance; or
(iv) the relevant income is receivable by the trustees on behalf of a provident
fund, superannuation fund, gratuity fund, pension fund or any other fund,
created bona fide by a person carrying on a business or profession exclusively
for the benefit of persons employed in such business or profession,
tax shall be charged on the relevant income or part of relevant income as if it were the
total income of an association of persons:
Provided further that where any income in respect of which the person mentioned
in clause (iv) of sub-section (1) of Section 160 is liable as representative assessee
consists of, or includes, profits and gains of business, the preceding proviso shall apply
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only if such profits and gains are receivable under a trust declared by any person by
will exclusively for the benefit of any relative dependent on him for support and
maintenance, and such trust is the only trust so declared by him.
(2) In the case of relevant income which is derived from property held under trust
wholly for charitable or religious purposes, or which is of the nature referred to in sub-
clause (ii-a) of clause (24) of Section 2, or which is of the nature referred to in sub-
section (4-A) of Section 11, tax shall be charged on so much of the relevant income as
is not exempt under Section 11 or Section 12, as if the relevant income not so exempt
were the income of an association of persons:
Provided that in a case where the whole or any part of the relevant income is not
exempt under Section 11 or Section 12 by virtue of the provisions contained in clause
(c) or clause (d) of sub-section (1) of Section 13, tax shall be charged on the relevant
income or part of relevant income at the maximum marginal rate.
(3) In a case where the relevant income is derived from property held under trust in
part only for charitable or religious purposes or is of the nature referred to in sub-
clause (ii-a) of clause (24) of Section 2, or is of the nature referred to in sub-section
(4-A) of Section 11, and either the relevant income applicable to purposes other than
charitable or religious purposes (or any part thereof) is not specifically receivable on
behalf or for the benefit of any one person or the individual shares of the beneficiaries
in the income so applicable are indeterminate or unknown, the tax chargeable on the
relevant income shall be the aggregate of—
(a) the tax which would be chargeable on that part of the relevant income which
is applicable to charitable or religious purposes (as reduced by the income, if
any, which is exempt under Section 11) as if such part (or such part as so
reduced) were the total income of an association of persons; and
(b) the tax on that part of the relevant income which is applicable to purposes
other than charitable or religious purposes, and which is either not specifically
receivable on behalf or for the benefit of any one person or in respect of which
the shares of the beneficiaries are indeterminate or unknown, at the maximum
marginal rate:
Provided that in a case where—
(i) none of the beneficiaries in respect of the part of the relevant income which is
not applicable to charitable or religious purposes has any other income
chargeable under this Act exceeding the maximum amount not chargeable to
tax in the case of an association of persons or is a beneficiary under any other
trust; or
(ii) the relevant income is receivable under a trust declared by any person by will
and such trust is the only trust so declared by him; or
(iii) the relevant income is receivable under a trust created before the 1st day of
March, 1970, by a non-testamentary instrument and the Assessing Officer is
satisfied, having regard to all the circumstances existing at the relevant time,
that the trust, to the extent it is not for charitable or religious purposes, was
created bona fide exclusively for the benefit of the relatives of the settlor, or
where the settlor is a Hindu undivided family, exclusively for the benefit of the
members of such family, in circumstances where such relatives or members
were mainly dependent on the settlor for their support and maintenance,
tax shall be charged on the relevant income as if the relevant income as reduced by
the income, if any, which is exempt under Section 11 were the total income of an
association of persons:
Provided further that where the relevant income consists of, or includes, profits
and gains of business, the preceding proviso shall apply only if the income is
receivable under a trust declared by any person by will exclusively for the benefit of
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any relative dependent on him for support and maintenance, and such trust is the only
trust so declared by him:
Provided also that in a case where the whole or any part of the relevant income is
not exempt under Section 11 or Section 12 by virtue of the provisions contained in
clause (c) or clause (d) of sub-section (1) of Section 13, tax shall be charged on the
relevant income or part of relevant income at the maximum marginal rate.
Explanation 1.—For the purposes of this section,—
(i) any income in respect of which the persons mentioned in clause (iii) and
clause (iv) of sub-section (1) of Section 160 are liable as representative
assessee or any part thereof shall be deemed as being not specifically
receivable on behalf or for the benefit of any one person unless the person on
whose behalf or for whose benefit such income or such part thereof is
receivable during the previous year is expressly stated in the order of the
court or the instrument of trust or wakf deed, as the case may be, and is
identifiable as such on the date of such order, instrument or deed;
(ii) the individual shares of the persons on whose behalf or for whose benefit
such income or such part thereof is received shall be deemed to be
indeterminate or unknown unless the individual shares of the persons on
whose behalf or for whose benefit such income or such part thereof is
receivable, are expressly stated in the order of the court or the instrument of
trust or wakf deed, as the case may be, and are ascertainable as such on the
date of such order, instrument or deed.
Explanation 2.—[Omitted]
164-A. Charge of tax in case of oral trust.— Where a trustee receives or is
entitled to receive any income on behalf or for the benefit of any person under an oral
trust, then, notwithstanding anything contained in any other provision of this Act, tax
shall be charged on such income at the maximum marginal rate.
(i) [Omitted]
(ii) “oral trust” shall have the meaning assigned to it in Explanation 2 below sub-
section (1) of Section 160.
165. Case where part of trust income is chargeable.— Where part only of the
income of a trust is chargeable under this Act, that proportion only of the income
receivable by a beneficiary from the trust which the part so chargeable bears to the
whole income of the trust shall be deemed to have been derived from that part.
166. Direct assessment or recovery not barred.— Nothing in the foregoing
sections in this Chapter shall prevent either the direct assessment of the person on
whose behalf or for whose benefit income therein referred to is receivable, or the
recovery from such person of the tax payable in respect of such income.
167. Remedies against property in cases of representative assessees.— The
Assessing Officer shall have the same remedies against all property of any kind vested
in or under the control or management of any representative assessee as he would
have against the property of any person liable to pay any tax, and in as full and ample
a manner, whether the demand is raised against the representative assessee or
against the beneficiary direct.
167-A. Charge of tax in the case of a firm.— In the case of a firm which is
assessable as a firm, tax shall be charged on its total income at the 2885 [rate as
specified in the Finance Act of the relevant year].
167-B. Charge of tax where shares of members in association of persons or
body of individuals unknown, etc.— (1) Where the individual shares of the
members of an association of persons or body of individuals [other than a company or
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-
a cooperative society or a society registered under the Societies Registration Act, 1860
(21 of 1860), or under any law corresponding to that Act in force in any part of India]
in the whole or any part of the income of such association or body are indeterminate or
unknown, tax shall be charged on the total income of the association or body at the
maximum marginal rate:
Provided that, where the total income of any member of such association or body
is chargeable to tax at a rate which is higher than the maximum marginal rate, tax
shall be charged on the total income of the association or body at such higher rate.
(2) Where, in the case of an association of persons or body of individuals as
aforesaid [not being a case falling under sub-section (1)],—
(i) the total income of any member thereof for the previous year (excluding his
share from such association or body) exceeds the maximum amount which is
not chargeable to tax in the case of that member under the Finance Act of the
relevant year, tax shall be charged on the total income of the association or
body at the maximum marginal rate;
(ii) any member or members thereof is or are chargeable to tax at a rate or rates
which is or are higher than the maximum marginal rate, tax shall be charged
on that portion or portions of the total income of the association or body which
is or are relatable to the share or shares of such member or members at such
higher rate or rates, as the case may be, and the balance of the total income
of the association or body shall be taxed at the maximum marginal rate.
Explanation.—For the purposes of this section, the individual shares of the members
of an association of persons or body of individuals in the whole or any part of the
income of such association or body shall be deemed to be indeterminate or unknown if
such shares (in relation to the whole or any part of such income) are indeterminate or
unknown on the date of formation of such association or body or at any time
thereafter.
2886
[167-C. Liability of partners of limited liability partnership in liquidation.
— Notwithstanding anything contained in the Limited Liability Partnership Act, 2008 (6
of 2009), where any tax due from a limited liability partnership in respect of any
income of any previous year or from any other person in respect of any income of any
previous year during which such other person was a limited liability partnership cannot
be recovered, in such case, every person who was a partner of the limited liability
partnership at any time during the relevant previous year, shall be jointly and
severally liable for the payment of such tax unless, he proves that the non-recovery
cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in
relation to the affairs of the limited liability partnership.]
2887 [Explanation.—For the purposes of this section, the expression “tax due”
includes penalty, interest or any other sum payable under the Act.]
168. Executors.— (1) Subject as hereinafter provided, the income of the estate of
a deceased person shall be chargeable to tax in the hands of the executor,—
(a) if there is only one executor, then, as if the executor were an individual; or
(b) if there are more executors than one, then, as if the executors were an
association of persons;
and for the purposes of this Act, the executor shall be deemed to be resident or non-
resident according as the deceased person was a resident or non-resident during the
previous year in which his death took place.
(2) The assessment of an executor under this section shall be made separately from
any assessment that may be made on him in respect of his own income.
(3) Separate assessments shall be made under this section on the total income of
each completed previous year or part thereof as is included in the period from the date
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of the death to the date of complete distribution to the beneficiaries of the estate
according to their several interests.
(4) In computing the total income of any previous year under this section, any
income of the estate of that previous year distributed to, or applied to the benefit of,
any specific legatee of the estate during that previous year shall be excluded; but the
income so excluded shall be included in the total income of the previous year of such
specific legatee.
Explanation.—In this section, “executor” includes an administrator or other person
administering the estate of a deceased person.
169. Right of executor to recover tax paid.— The provisions of Section 162
shall, so far as may be, apply in the case of an executor in respect of tax paid or
payable by him as they apply in the case of a representative assessee.
170. Succession to business otherwise than on death.— (1) Where a person
carrying on any business or profession (such person hereinafter in this section being
referred to as the predecessor) has been succeeded therein by any other person
(hereinafter in this section referred to as the successor) who continues to carry on that
business or profession,—
(a) the predecessor shall be assessed in respect of the income of the previous
year in which the succession took place up to the date of succession;
(b) the successor shall be assessed in respect of the income of the previous year
after the date of succession.
(2) Notwithstanding anything contained in sub-section (1), when the predecessor
cannot be found, the assessment of the income of the previous year in which the
succession took place up to the date of succession and of the previous year preceding
that year shall be made on the successor in like manner and to the same extent as it
would have been made on the predecessor, and all the provisions of this Act shall, so
far as may be, apply accordingly.
(3) When any sum payable under this section in respect of the income of such
business or profession for the previous year in which the succession took place up to
the date of succession or for the previous year preceding that year, assessed on the
predecessor, cannot be recovered from him, the Assessing Officer shall record a
finding to that effect and the sum payable by the predecessor shall thereafter be
payable by and recoverable from the successor, and the successor shall be entitled to
recover from the predecessor any sum so paid.
(4) Where any business or profession carried on by a Hindu undivided family is
succeeded to, and simultaneously with the succession or after the succession there
has been a partition of the joint family property between the members or groups of
members, the tax due in respect of the income of the business or profession
succeeded to, up to the date of succession, shall be assessed and recovered in the
manner provided in Section 171, but without prejudice to the provisions of this
section.
Explanation.—For the purposes of this section “income” includes any gain accruing
from the transfer, in any manner whatsoever, of the business or profession as a result
of the succession.
171. Assessment after partition of a Hindu undivided family.— (1) A Hindu
family hitherto assessed as undivided shall be deemed for the purposes of this Act to
continue to be a Hindu undivided family, except where and in so far as a finding of
partition has been given under this section in respect of the Hindu undivided family.
(2) Where, at the time of making an assessment under Section 143 or Section 144,
it is claimed by or on behalf of any member of a Hindu family assessed as undivided
that a partition, whether total or partial, has taken place among the members of such
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family, the Assessing Officer shall make an inquiry thereinto after giving notice of the
inquiry to all the members of the family.
(3) On the completion of the inquiry, the Assessing Officer shall record a finding as
to whether there has been a total or partial partition of the joint family property, and,
if there has been such a partition, the date on which it has taken place.
(4) Where a finding of total or partial partition has been recorded by the Assessing
Officer under this section, and the partition took place during the previous year,—
(a) the total income of the joint family in respect of the period up to the date of
partition shall be assessed as if no partition had taken place; and
(b) each member or group of members shall, in addition to any tax for which he
or it may be separately liable and notwithstanding anything contained in
clause (2) of Section 10, be jointly and severally liable for the tax on the
income so assessed.
(5) Where a finding of total or partial partition has been recorded by the Assessing
Officer under this section, and the partition took place after the expiry of the previous
year, the total income of the previous year of the joint family shall be assessed as if no
partition had taken place; and the provisions of clause (b) of sub-section (4) shall, so
far as may be, apply to the case.
(6) Notwithstanding anything contained in this section, if the Assessing Officer
finds after completion of the assessment of a Hindu undivided family that the family
has already effected a partition, whether total or partial, the Assessing Officer shall
proceed to recover the tax from every person who was a member of the family before
the partition, and every such person shall be jointly and severally liable for the tax on
the income so assessed.
(7) For the purposes of this section, the several liability of any member or group of
members thereunder shall be computed according to the portion of the joint family
property allotted to him or it at the partition, whether total or partial.
(8) The provisions of this section shall, so far as may be, apply in relation to the
levy and collection of any penalty, interest, fine or other sum in respect of any period
up to date of the partition, whether total or partial, of a Hindu undivided family as they
apply in relation to the levy and collections of tax in respect of any such period.
where a partial partition has taken place after the 31st day of December, 1978 among
the members of a Hindu undivided family hitherto assessed as undivided,—
(a) no claim that such partial partition has taken place shall be inquired into
under sub-section (2) and no finding shall be recorded under sub-section (3)
that such partial partition had taken place and any finding recorded under sub
-section (3) to that effect whether before or after the 18th day of June, 1980,
being the date of introduction of the Finance (No. 2) Bill, 1980, shall be null
and void;
(b) such family shall continue to be liable to be assessed under this Act as if no
such partial partition had taken place;
(c) each member or group of members of such family immediately before such
partial partition and the family shall be jointly and severally liable for any tax,
penalty, interest, fine or other sum payable under this Act by the family in
respect of any period, whether before or after such partial partition;
(d) the several liability of any member or group of members aforesaid shall be
computed according to the portion of the joint family property allotted to him
or it at such partial partition,
and the provisions of this Act shall apply accordingly.
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(a) “partition” means—
(i) where the property admits of a physical division, a physical division of the
property, but a physical division of the income without a physical division of
the property producing the income shall not be deemed to be a partition; or
(ii) where the property does not admit of a physical division, then such
division as the property admits of, but a mere severance of status shall not
be deemed to be a partition;
(b) “partial partition” means a partition which is partial as regards the persons
constituting the Hindu undivided family, or the properties belonging to the
Hindu undivided family, or both.
172. Shipping business of non-residents.— (1) The provisions of this section
shall, notwithstanding anything contained in the other provisions of this Act, apply for
the purpose of the levy and recovery of tax in the case of any ship, belonging to or
chartered by a non-resident, which carries passengers, livestock, mail or goods
shipped at a port in India.
(2) Where such a ship carries passengers, livestock, mail or goods shipped at a port
in India, seven and a half per cent of the amount paid or payable on account of such
carriage to the owner or the charterer or to any person on his behalf, whether that
amount is paid or payable in or out of India, shall be deemed to be income accruing in
India to the owner or charterer on account of such carriage.
(3) Before the departure from any port in India of any such ship, the master of the
ship shall prepare and furnish to the Assessing Officer a return of the full amount paid
or payable to the owner or charterer or any person on his behalf, on account of the
carriage of all passengers, livestock, mail or goods shipped at that port since the last
arrival of the ship thereat:
Provided that where the Assessing Officer is satisfied that it is not possible for the
master of the ship to furnish the return required by this sub-section before the
departure of the ship from the port and provided the master of the ship has made
satisfactory arrangements for the filing of the return and payment of the tax by any
other person on his behalf, the Assessing Officer may, if the return is filed within thirty
days of the departure of the ship, deem the filing of the return by the person so
authorised by the master as sufficient compliance with this sub-section.
(4) On receipt of the return, the Assessing Officer shall assess the income referred
to in sub-section (2) and determine the sum payable as tax thereon at the rate or
rates in force applicable to the total income of a company which has not made the
arrangements referred to in Section 194 and such sum shall be payable by the master
of the ship.
2888
[(4-A) No order assessing the income and determining the sum of tax payable
thereon shall be made under sub-section (4) after the expiry of nine months from the
end of the financial year in which the return under sub-section (3) is furnished:
Provided that where the return under sub-section (3) has been furnished before the
1st day of April, 2007, such order shall be made on or before the 31st day of
December, 2008.]
(5) For the purpose of determining the tax payable under sub-section (4), the
Assessing Officer may call for such accounts or documents as he may require.
(6) A port clearance shall not be granted to the ship until the Collector of Customs,
or other officer duly authorised to grant the same, is satisfied that the tax assessable
under this section has been duly paid or that satisfactory arrangements have been
made for the payment thereof.
(7) Nothing in this section shall be deemed to prevent the owner or charterer of a
ship from claiming before the expiry of the assessment year relevant to the previous
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year in which the date of departure of the ship from the Indian port falls, that an
assessment be made of his total income of the previous year and the tax payable on
the basis thereof be determined in accordance with the other provisions of this Act,
and if he so claims, any payment made under this section in respect of the
passengers, livestock, mail or goods shipped at Indian ports during that previous year
shall be treated as a payment in advance of the tax leviable for that assessment year,
and the difference between the sum so paid and the amount of tax found payable by
him on such assessment shall be paid by him or refunded to him, as the case may be.
2889 [(8) For the purposes of this section, the amount referred to in sub-section (2)
shall include the amount paid or payable by way of demurrage charge or handling
charge or any other amount of similar nature.]
173. Recovery of tax in respect of non-resident from his assets.— Without
prejudice to the provisions of sub-section (1) of Section 161 or of Section 167, where
the person entitled to the income referred to in clause (i) of sub-section (1) of Section
9 is a non-resident, the tax chargeable thereon, whether in his name or in the name of
his agent who is liable as a representative assessee, may be recovered by deduction
under any of the provisions of Chapter XVII-B and any arrears of tax may be recovered
also in accordance with the provisions of this Act from any assets of the non-resident
which are, or may at any time come, within India.
174. Assessment of persons leaving India.— (1) Notwithstanding anything
contained in Section 4, when it appears to the Assessing Officer that any individual
may leave India during the current assessment year or shortly after its expiry and that
he has no present intention of returning to India, the total income of such individual
for the period from the expiry of the previous year for that assessment year up to the
probable date of his departure from India shall be chargeable to tax in that
assessment year.
(2) The total income of each completed previous year or part of any previous year
included in such period shall be chargeable to tax at the rate or rates in force in that
assessment year, and separate assessments shall be made in respect of each such
completed previous year or part of any previous year.
(3) The Assessing Officer may estimate the income of such individual for such
period or any part thereof, where it cannot be readily determined in the manner
provided in this Act.
(4) For the purpose of making an assessment under sub-section (1), the Assessing
Officer may serve a notice upon such individual requiring him to furnish, within such
time, not being less than seven days, as may be specified in the notice, a return in the
same form and verified in the same manner as a return under clause (i) of sub-section
(1) of Section 142 setting forth his total income for each completed previous year
comprised in the period referred to in sub-section (1) and his estimated total income
for any part of the previous year comprised in that period; and the provisions of this
Act shall, so far as may be, and subject to the provisions of this section, apply as if the
notice were a notice issued under clause (i) of sub-section (1) of Section 142.
(5) The tax chargeable under this section shall be in addition to the tax, if any,
chargeable under any other provision of this Act.
(6) Where the provisions of sub-section (1) are applicable, any notice issued by the
Assessing Officer under clause (i) of sub-section (1) of Section 142 or Section 148 in
respect of any tax chargeable under any other provision of this Act may,
notwithstanding anything contained in clause (i) of sub-section (1) of Section 142 or
Section 148, as the case may be, require the furnishing of the return by such
individual within such period, not being less than seven days, as the Assessing Officer
may think proper.
174-A. Assessment of association of persons or body of individuals or
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artificial juridical person formed for a particular event or purpose.—
Notwithstanding anything contained in Section 4, where it appears to the Assessing
Officer that any association of persons or a body of individuals or an artificial juridical
person, formed or established or incorporated for a particular event or purpose is likely
to be dissolved in the assessment year in which such association of persons or a body
of individuals or an artificial juridical person was formed or established or incorporated
or immediately after such assessment year, the total income of such association or
body or juridical person for the period from the expiry of the previous year for that
assessment year up to the date of its dissolution shall be chargeable to tax in that
assessment year, and the provisions of sub-sections (2) to (6) of Section 174 shall, so
far as may be, apply to any proceedings in the case of any such person as they apply
in the case of persons leaving India.]
175. Assessment of persons likely to transfer property to avoid tax.—
Notwithstanding anything contained in Section 4, if it appears to the Assessing Officer
during any current assessment year that any person is likely to charge, sell, transfer,
dispose of or otherwise part with any of his assets with a view to avoiding payment of
any liability under the provisions of this Act, the total income of such person for the
period from the expiry of the previous year for that assessment year to the date when
the Assessing Officer commences proceedings under this section shall be chargeable
to tax in that assessment year, and the provisions of sub-sections (2), (3), (4), (5)
and (6) of Section 174 shall, so far as may be, apply to any proceedings in the case of
any such person as they apply in the case of persons leaving India.
176. Discontinued business.— (1) Notwithstanding anything contained in Section
4, where any business or profession is discontinued in any assessment year, the
income of the period from the expiry of the previous year for that assessment year up
to the date of such discontinuance may, at the discretion of the Assessing Officer be
charged to tax in that assessment year.
(2) The total income of each completed previous year or part of any previous year
included in such period shall be chargeable to tax at the rate or rates in force in that
assessment year, and separate assessments shall be made in respect of each such
completed previous year or part of any previous year.
(3) Any person discontinuing any business or profession shall give to the Assessing
Officer notice of such discontinuance within fifteen days thereof.
(3-A) Where any business is discontinued in any year, any sum received after the
discontinuance shall be deemed to be the income of the recipient and charged to tax
accordingly in the year of receipt, if such sum would have been included in the total
income of the person who carried on the business had such sum been received before
such discontinuance.
(4) Where any profession is discontinued in any year on account of the cessation of
the profession by, or the retirement or death of, the person carrying on the profession,
any sum received after the discontinuance shall be deemed to be the income of the
recipient and charged to tax accordingly in the year of receipt, if such sum would have
been included in the total income of the aforesaid person had it been received before
such discontinuance.
(5) Where an assessment is to be made under the provisions of this section, the
Assessing Officer may serve on the person whose income is to be assessed or, in the
case of a firm, on any person who was a partner of such firm 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
clause (i) of sub-section (1) of Section 142 and the provisions of this Act shall, so far
as may be, apply accordingly as if the notice were a notice issued under clause (i) of
sub-section (1) of Section 142.
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-
(6) The tax chargeable under this section shall be in addition to the tax, if any,
chargeable under any other provisions of this Act.
(7) Where the provisions of sub-section (1) are applicable, any notice issued by the
Assessing Officer under clause (i) of sub-section (1) of Section 142 or Section 148 in
respect of any tax chargeable under any other provisions of this Act may,
notwithstanding anything contained in clause (i) of sub-section (1) of Section 142 or
Section 148, as the case may be, require the furnishing of the return by the person to
whom the aforesaid notices are issued within such period, not being less than seven
days, as the Assessing Officer may think proper.
177. Association dissolved or business discontinued.— (1) Where any
business or profession carried on by an association of persons has been discontinued
or where an association of persons is dissolved, the Assessing Officer shall make an
assessment of the total income of the association of persons as if no such
discontinuance or dissolution had taken place, and all the provisions of this Act,
including the provisions relating to the levy of a penalty or any other sum chargeable
under any provision of this Act, shall apply, so far as may be, to such assessment.
(2) Without prejudice to the generality of the foregoing sub-section, if the
Assessing Officer or the 2890 [* * *] 2891 [Principal Commissioner or Commissioner]
(Appeals) in the course of any proceeding under this Act in respect of any such
association of persons as is referred to in that sub-section is satisfied that the
association of persons was guilty of any of the acts specified in Chapter XXI, he may
impose or direct the imposition of a penalty in accordance with the provisions of that
Chapter.
(3) Every person who was at the time of such discontinuance or dissolution a
member of the association of persons, and the legal representative of any such person
who is deceased, shall be jointly and severally liable for the amount of tax, penalty or
other sum payable, and all the provisions of this Act, so far as may be, shall apply to
any such assessment or imposition of penalty or other sum.
(4) Where such discontinuance or dissolution takes place after any proceedings in
respect of an assessment year have commenced, the proceedings may be continued
against the persons referred to in sub-section (3) from the stage at which the
proceedings stood at the time of such discontinuance or dissolution, and all the
provisions of this Act shall, so far as may be, apply accordingly.
(5) Nothing in this section shall affect the provisions of sub-section (6) of Section
159.
178. Company in liquidation.— (1) Every person—
(a) who is the liquidator of any company which is being wound up, whether
under the orders of a court or otherwise; or
(b) who has been appointed the receiver of any assets of a company,
(hereinafter referred to as the liquidator) shall, within thirty days after he has become
such liquidator, give notice of his appointment as such to the Assessing Officer who is
entitled to assess the income of the company.
(2) The Assessing Officer shall, after making such enquiries or calling for such
information as he may deem fit, notify to the liquidator within three months from the
date on which he receives notice of the appointment of the liquidator the amount
which, in the opinion of the Assessing Officer, would be sufficient to provide for any
tax which is then, or is likely thereafter to become, payable by the company.
(3) The liquidator—
(a) shall not, without the leave of the 2892 [Principal Chief Commissioner or Chief
Commissioner] or 2893 [Principal Commissioner or Commissioner], part with any
of the assets of the company or the properties in his hands until he has been
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-
notified by the Assessing Officer under sub-section (2); and
(b) on being so notified, shall set aside an amount, equal to the amount notified
and, until he so sets aside such amount, shall not part with any of the assets
of the company or the properties in his hands:
Provided that nothing contained in this sub-section shall debar the liquidator
from parting with such assets or properties for the purpose of the payment of
the tax payable by the company or for making any payment to secured
creditors whose debts are entitled under law to priority of payment over debts
due to Government on the date of liquidation or for meeting such costs and
expenses of the winding up of the company as are in the opinion of the FN1117
[Principal Chief Commissioner or Chief Commissioner] or FN1118[Principal
Commissioner or Commissioner] reasonable.
(4) If the liquidator fails to give the notice in accordance with sub-section (1) or
fails to set aside the amount as required by sub-section (3) or parts with any of the
assets of the company or the properties in his hands in contravention of the provisions
of that sub-section, he shall be personally liable for the payment of the tax which the
company would be liable to pay:
Provided that if the amount of any tax payable by the company is notified under
sub-section (2), the personal liability of the liquidator under this sub-section shall be
to the extent of such amount.
(5) Where there are more liquidators than one, the obligations and liabilities
attached to the liquidator under this section shall attach to all the liquidators jointly
and severally.
(6) The provisions of this section shall have effect notwithstanding anything to the
contrary contained in any other law for the time being in force 2896 [except the
provisions of the Insolvency and Bankruptcy Code, 2016].
179. Liability of directors of private company in liquidation.— (1)
Notwithstanding anything contained in the Companies Act, 1956 (1 of 1956), where
any tax due from a private company in respect of any income of any previous year or
from any other company in respect of any income of any previous year during which
such other company was a private company cannot be recovered, then, every person
who was a director of the private company at any time during the relevant previous
year shall be jointly and severally liable for the payment of such tax unless he proves
that the non-recovery cannot be attributed to any gross neglect, misfeasance or
breach of duty on his part in relation to the affairs of the company.
(2) Where a private company is converted into a public company and the tax
assessed in respect of any income of any previous year during which such company
was a private company cannot be recovered, then, nothing contained in sub-section
(1) shall apply to any person who was a director of such private company in relation to
any tax due in respect of any income of such private company assessable for any
assessment year commencing before the 1st day of April, 1962.
2897 [Explanation.—For the purposes of this section, the expression “tax due”
includes penalty, interest or any other sum payable under the Act.]
180. Royalties or copyright fees for literary or artistic work.— Where the time
taken by the author of a literary or artistic work in the making thereof is more than
twelve months, the amount received or receivable by him during any previous year on
account of any lump sum consideration for the assignment or grant of any of his
interests in the copyright of that work or of royalties or copyright fees (whether
receivable in lump sum or otherwise), in respect of that work, shall, if he so claims, be
allocated for purposes of assessment in such manner and to such period as may be
prescribed.
2898 [Provided that nothing contained in this section shall apply in relation to the
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-
previous year relevant to the assessment year commencing on or after the 1st day of
April, 2000.]
Explanation.—For the purposes of this section, the expression “author” includes a
joint author, and the expression “lump sum” in regard to royalties or copyright fees,
includes an advance payment on account of such royalties or copyright fees which is
not returnable.
180-A. Consideration for know-how.— Where the time taken by an individual,
who is resident in India, for developing any know-how is more than twelve months, he
may elect that the gross amount of any lump sum consideration received or receivable
by him 2899 [during the previous year relevant to the assessment year commencing on
the 1st day of April, 2000 or earlier assessment years] for allowing use of such know-
how shall be treated for the purposes of charging income tax for that year and for each
of the two immediately preceding previous years as if one-third thereof were included
in his income chargeable to tax for each of those years respectively and if he so elects,
notwithstanding anything contained in any other provision of this Act,—
(a) such gross amount shall be so treated, and
(b) the assessments for each of the two preceding previous years shall, if made,
be accordingly rectified under Section 154, the period of four years specified
in sub-section (7) of that section being reckoned from the end of the financial
year in which the assessment relating to the previous year in which the
amount was received or receivable by such individual is made.
Explanation.—For the purposes of this section, the expression “know-how” has the
meaning assigned to it in Section 35-AB.
181. [Omitted]
182. Assessment of registered firms.—2900 [* * *]
183. Assessment of unregistered firms.—2901 [* * *]
2902 [184. Assessment as a firm.— (1) A firm shall be assessed as a firm for the
purposes of this Act, if—

(i) the partnership is evidenced by an instrument; and
(ii) the individual shares of the partners are specified in that instrument.
(2) A certified copy of the instrument of partnership referred to in sub-section (1)
shall accompany the return of income of the firm of the previous year relevant to the
assessment year commencing on or after the 1st day of April, 1993 in respect of which
assessment as a firm is first sought.
Explanation.—For the purposes of this sub-section, the copy of the instrument of
partnership shall be certified in writing by all the partners (not being minors) or,
where the return is made after the dissolution of the firm, by all persons (not being
minors) who were partners in the firm immediately before its dissolution and by the
legal representative of any such partner who is deceased.
(3) Where a firm is assessed as such for any assessment year, it shall be assessed
in the same capacity for every subsequent year if there is no change in the
constitution of the firm or the shares of the partners as evidenced by the instrument of
partnership on the basis of which the assessment as a firm was first sought.
(4) Where any such change had taken place in the previous year, the firm shall
furnish a certified copy of the revised instrument of partnership along with the return
of income for the assessment year relevant to such previous year and all the provisions
of this section shall apply accordingly.
where, in respect of any assessment year, there is on the part of a firm any such
failure as is mentioned in Section 144, the firm shall not be assessed as such for the
said assessment year and, thereupon, the firm shall be assessed in the same manner
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-
as an association of persons, and all the provisions of this Act shall apply accordingly.
_____________________________
W.E.F. 1-4-2004, in Section 184, for sub-section (5), the following sub-section shall
be substituted, namely:—
“(5) Notwithstanding anything contained in any other provision of this Act, where, in
respect of any assessment year, there is on the part of a firm any such failure as is
mentioned in Section 144, the firm shall be so assessed that no deduction by way of
any payment of interest, salary, bonus commission or remuneration, by whatever
name called, made by such firm to any partner of such firm shall be allowed in
computing the income chargeable under the head ‘Profits and gains of business or
profession’ and such interest, salary, bonus, commission or remuneration shall not
be chargeable to income tax under clause (v) of Section 28.”.
_____________________________
185. Assessment when Section 184 not complied with.— Where a firm does
not comply with the provisions of Section 184 for any assessment year, the firm shall
be assessed for that assessment year in the same manner as an association of
persons, and all the provisions of this Act shall apply accordingly.
_____________________________
W.E.F. 1-4-2004, for Section 185, the following section shall be substituted,
namely:—
“185. Assessment when Section 184 not complied with.—Notwithstanding
anything contained in any other provision of this Act, where a firm does not comply
with the provisions of Section 184 for any assessment year, the firm shall be so
assessed that no deduction by way of any payment of interest, salary, bonus,
commission or remuneration, by whatever name called, made by such firm to any
partner of such firm shall be allowed in computing the income chargeable under the
Head ‘Profits and gains of business or profession’ and such interest, salary, bonus,
commission or remuneration shall not be chargeable to income tax under clause (v)
of Section 28.”.
_____________________________
186. 2903 [Omitted]
187. Change in constitution of a firm.— (1) Where at the time of making an
assessment under Section 143 or Section 144 it is found that a change has occurred in
the constitution of a firm, the assessment shall be made on the firm as constituted at
the time of making the assessment:
2904 [* * *]
(2) For the purposes of this section, there is a change in the constitution of the
firm—
(a) if one or more of the partners cease to be partners or one or more new
partners are admitted, in such circumstances that one or more of the persons
who were partners of the firm before the change continue as partner or
partners after the change; or
(b) where all the partners continue with a change in their respective shares or in
the shares of some of them:
Provided that nothing contained in clause (a) shall apply to a case where the firm
is dissolved on the death of any of its partners.
188. Succession of one firm by another firm.— Where a firm carrying on a
business or profession is succeeded by another firm, and the case is not one covered
by Section 187, separate assessments shall be made on the predecessor firm and the
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-
successor firm in accordance with the provisions of Section 170.
188-A. Joint and several liability of partners for tax payable by firm.— Every
person who was, during the previous year, a partner of a firm, and the legal
representative of any such person who is deceased, shall be jointly and severally liable
along with the firm for the amount of tax, penalty or other sum payable by the firm for
the assessment year to which such previous year is relevant, and all the provisions of
this Act, so far as may be, shall apply to the assessment of such tax or imposition or
levy of such penalty or other sum.
189. Firm dissolved or business discontinued.— (1) Where any business or
profession carried on by a firm has been discontinued or where a firm is dissolved, the
Assessing Officer shall make an assessment of the total income of the firm as if no
such discontinuance or dissolution had taken place, and all the provisions of this Act,
including the provisions relating to the levy of a penalty or any other sum chargeable
under any provision of this Act, shall apply, so far as may be, to such assessment.
(2) Without prejudice to the generality of the foregoing sub-section, if the
Assessing Officer or the 2905 [* * *] 2906 [Principal Commissioner or Commissioner]
(Appeals) in the course of any proceeding under this Act in respect of any such firm as
is referred to in that sub-section is satisfied that the firm was guilty of any of the acts
specified in Chapter XXI, he may impose or direct the imposition of a penalty in
accordance with the provisions of that Chapter.
(3) Every person who was at the time of such discontinuance or dissolution a
partner of the firm, and the legal representative of any such person who is deceased,
shall be jointly and severally liable for the amount of tax, penalty or other sum
payable, and all the provisions of this Act, so far as may be, shall apply to any such
assessment or imposition of penalty or other sum.
(4) Where such discontinuance or dissolution takes place after any proceedings in
respect of an assessment year have commenced, the proceedings may be continued
against the persons referred to in sub-section (3) from the stage at which the
proceedings stood at the time of such discontinuance or dissolution, and all the
provisions of this Act shall, so far as may be, apply accordingly.
(5) Nothing in this section shall affect the provisions of sub-section (6) of Section
159.
2907 [189-A. Provisions applicable to past assessments of firms.— In relation to
the assessment of any firm and its partners for the assessment year commencing on
the 1st day of April, 1992, or any earlier assessment year, the provisions of this
Chapter as they stood immediately before the 1st day of April, 1993 shall continue to
apply.]
190. Deduction at source and advance payment.— (1) Notwithstanding that
the regular assessment in respect of any income is to be made in a later assessment
year, the tax on such income shall be payable by deduction or collection at source or
by advance payment 2908 [or by payment under sub-section (1-A) of Section 192], as
the case may be, in accordance with the provisions of this Chapter.
(2) Nothing in this section shall prejudice the charge of tax on such income under
the provisions of sub-section (1) of Section 4.
191. Direct payment.—[5163 (1)] In the case of income in respect of which
provision is not made under this Chapter for deducting income tax at the time of
payment, and in any case where income tax has not been deducted in accordance with
the provisions of this Chapter, income tax shall be payable by the assessee direct.
2909
[Explanation.—For the removal of doubts, it is hereby declared that if any
person, including the principal officer of a company,—
(a) who is required to deduct any sum in accordance with the provisions of this
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-
Act; or
(b) referred to in sub-section (1-A) of Section 192, being an employer,
does not deduct, or after so deducting fails to pay, or does not pay, the whole or any
part of the tax, as required by or under this Act, and where the assessee has also
failed to pay such tax directly, then, such person shall, without prejudice to any other
consequences which he may incur, be deemed to be an assessee in default within the
meaning of sub-section (1) of Section 201, in respect of such tax.]
5164 [(2) For the purposes of paying income-tax directly by the assessee under sub-
section (1), if the income of the assessee in any assessment year, beginning on or
after the 1st day of April, 2021, includes income of the nature specified in clause (vi)
of sub-section (2) of Section 17 and such specified security or sweat equity shares
referred to in the said clause are allotted or transferred directly or indirectly by the
current employer, being an eligible start-up referred to in Section 80-IAC, the income-
tax on such income shall be payable by the assessee within fourteen days—
assessment year; or
the assessee; or
(iii) from the date of the assessee ceasing to be the employee of the employer
who allotted or transferred him such specified security or sweat equity share,
whichever is the earliest.]
192. Salary.— (1) Any person responsible for paying any income chargeable under
the head “Salaries” shall, at the time of payment, deduct income tax on the amount
payable at the average rate of income tax computed on the basis of the rates in force
for the financial year in which the payment is made, on the estimated income of the
assessee under this head for that financial year.
2910 [(1-A) Without prejudice to the provisions contained in sub-section (1), the
person responsible for paying any income in the nature of a perquisite which is not
provided for by way of monetary payment, referred to in clause (2) of Section 17, may
pay, at his option, tax on the whole or part of such income without making any
deduction therefrom at the time when such tax was otherwise deductible under the
provisions of sub-section (1).
(1-B) For the purpose of paying tax under sub-section (1-A), tax shall be
determined at the average of income tax computed on the basis of the rates in force
for the financial year, on the income chargeable under the head “Salaries” including
the income referred to in sub-section (1-A), and the tax so payable shall be construed
as if it were, a tax deductible at source, from the income under the head “Salaries” as
per the provisions of sub-section (1), and shall be subject to the provisions of this
Chapter.]
5165
[(1-C) For the purposes of deducting or paying tax under sub-section (1) or sub-
section (1-A), as the case may be, a person, being an eligible start-up referred to in
Section 80-IAC, responsible for paying any income to the assessee being perquisite of
the nature specified in clause (vi) of sub-section (2) of Section 17 in any previous year
relevant to the assessment year, beginning on or after the 1st day of April, 2021, shall
deduct or pay, as the case may be, tax on such income within fourteen days—
assessment year; or
the assessee; or
(iii) from the date of the assessee ceasing to be the employee of the person,
whichever is the earliest, on the basis of rates in force for the financial year in which
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-
the said specified security or sweat equity share is allotted or transferred.]
(2) Where, during the financial year, an assessee is employed simultaneously under
more than one employer, or where he has held successively employment under more
than one employer, he may furnish to the person responsible for making the payment
referred to in sub-section (1) (being one of the said employers as the assessee may,
having regard to the circumstances of his case, choose), such details of the income
under the head “Salaries” due or received by him from the other employer or
employers, the tax deducted at source therefrom and such other particulars, in such
form and verified in such manner as may be prescribed, and thereupon the person
responsible for making the payment referred to above shall take into account the
details so furnished for the purposes of making the deduction under sub-section (1).
(2-A) Where the assessee, being a Government servant or an employee in a
company, cooperative society, local authority, University, institution, association or
body, is entitled to the relief under sub-section (1) of Section 89, he may furnish to
the person responsible for making the payment referred to in sub-section (1), such
particulars, in such form and verified in such manner as may be prescribed, and
thereupon the person responsible as aforesaid shall compute the relief on the basis of
such particulars and take it into account in making the deduction under sub-section
(1).
Explanation.—For the purposes of this sub-section, “University” means a University
established or incorporated by or under a Central, State or Provincial Act, and includes
an institution declared under Section 3 of the University Grants Commission Act, 1956
(3 of 1956), to be a University for the purposes of that Act.
2911 [(2-B) Where an assessee who receives any income chargeable under the head
“Salaries” has, in addition, any income chargeable under any other head of income
(not being a loss under any such head other than the loss under the head “Income
from house property”) for the same financial year, he may send to the person
responsible for making the payment referred to in sub-section (1) the particulars of—
(a) such other income and of any tax deducted thereon under any other provision
of this Chapter;
(b) the loss, if any, under the head “Income from house property”,
in such form and verified in such manner as may be prescribed, and thereupon the
person responsible as aforesaid shall take—
(i) such other income and tax, if any, deducted thereon; and
(ii) the loss, if any, under the head “Income from house property”,
also into account for the purposes of making the deduction under sub-section (1):
Provided that this sub-section shall not in any case have the effect of reducing the
tax deductible except where the loss under the head “Income from house property”
has been taken into account, from income under the head “Salaries” below the amount
that would be so deductible if the other income and the tax deducted thereon had not
been taken into account.]
2912 [(2-C) A person responsible for paying any income chargeable under the head
“Salaries” shall furnish to the person to whom such payment is made a statement
giving correct and complete particulars of perquisites or profits in lieu of salary
provided to him and the value thereof in such form and manner as may be
prescribed.]
2913 [(2-D) The person responsible for making the payment referred to in sub-section
(1) shall, for the purposes of estimating income of the assessee or computing tax
deductible under sub-section (1), obtain from the assessee the evidence or proof or
particulars of prescribed claims (including claim for set-off of loss) under the
provisions of the Act in such form and manner as may be prescribed.]
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-
(3) The person responsible for making the payment referred to in sub-section (1)
2914[or sub-section (1-A)] or sub-section (2) or sub-section (2-A) or sub-section (2-B)
may, at the time of making any deduction, increase or reduce the amount to be
deducted under this section for the purpose of adjusting any excess or deficiency
arising out of any previous deduction or failure to deduct during the financial year.
(4) The trustees of a recognised provident fund, or any person authorised by the
regulations of the fund to make payment of accumulated balances due to employees,
shall, in case where sub-rule (1) of Rule 9 of Part A of the Fourth Schedule applies, at
the time an accumulated balance due to an employee is paid, make therefrom the
deduction provided in Rule 10 of Part A of the Fourth Schedule.
(5) Where any contribution made by an employer, including interest on such
contributions, if any, in an approved superannuation fund is paid to the employee, tax
on the amount so paid shall be deducted by the trustees of the fund to the extent
provided in Rule 6 of Part B of the Fourth Schedule.
(6) For the purposes of deduction of tax on salary payable in foreign currency, the
value in rupees of such salary shall be calculated at the prescribed rate of exchange.
2915 [192-A.
Payment of accumulated balance due to an employee.—
Notwithstanding anything contained in this Act, the trustees of the Employees'
Provident Fund Scheme, 1952, framed under Section 5 of the Employees' Provident
Funds and Miscellaneous Provisions Act, 1952 (19 of 1952) or any person authorised
under the scheme to make payment of accumulated balance due to employees, shall,
in a case where the accumulated balance due to an employee participating in a
recognised provident fund is includible in his total income owing to the provisions of
Rule 8 of Part A of the Fourth Schedule not being applicable, at the time of payment of
the accumulated balance due to the employee, deduct income tax thereon at the rate
of ten per cent:
Provided that no deduction under this section shall be made where the amount of
such payment or, as the case may be, the aggregate amount of such payment to the
payee is less than 2916 [fifty thousand rupees]:
Provided further that any person entitled to receive any amount on which tax is
deductible under this section shall furnish his permanent account number to the
person responsible for deducting such tax, failing which tax shall be deducted at the
maximum marginal rate.]
193. Interest on securities.— The person responsible for paying 2917 [to a
resident] any income by way of interest on securities shall, at the time of credit of
such income to the account of the payee or at the time of payment thereof in cash or
by issue of a cheque or draft or by any other mode, whichever is earlier, deduct
income tax at the rates in force on the amount of the interest payable:
2918
[* * *]
Provided 2919 [* * *] that no tax shall be deducted from—
(i) any interest payable on 4¼ per cent National Defence Bonds, 1972, where the
bonds are held by an individual, not being a non-resident; or
(i-a) any interest payable to an individual on 4¼ per cent National Defence Loan,
1968, or 4¾ per cent National Defence Loan, 1972; or
(i-b) any interest payable on National Development Bonds; or
(ii) [Omitted]
(ii-a) any interest payable on 7-year National Savings Certificates (IV Issue); or
(ii-b) any interest payable on such debentures, issued by any institution or
authority, or any public sector company, or any cooperative society (including a
cooperative land mortgage bank or a cooperative land development bank), as the
Central Government may, by notification in the Official Gazette, specify in this
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-
behalf.
(iii) any interest payable on 6½ per cent Gold Bonds, 1977 or 7 per cent Gold
Bonds, 1980, where the Bonds are held by an individual not being a non-
resident, and the holder thereof makes a declaration in writing before the person
responsible for paying the interest that the total nominal value of the 6½ per
cent Gold Bonds, 1977, or, as the case may be, the 7 per cent Gold Bonds, 1980,
held by him (including such Bonds, if any, held on his behalf by any other
person) did not in either case exceed ten thousand rupees at any time during the
period to which the interest relates;
(iii-a) 2920 [Omitted]
2921 [(iv) any interest payable on any security of the Central Government or a State
Government:]
2922 [Provided that nothing contained in this clause shall apply to the interest
exceeding rupees ten thousand payable on 8% Savings (Taxable) Bonds, 2003

2923 [or 7.75% Savings (Taxable) Bonds, 2018] during the financial year;]
2924
[(v) any interest payable to an individual or a Hindu Undivided Family, who is
resident in India, on any debenture issued by a company in which the public are
substantially interested, if—
(a) the amount of interest or, as the case may be, the aggregate amount of such
interest paid or likely to be paid on such debenture during the financial year
by the company to such individual or Hindu Undivided Family does not exceed
five thousand rupees; and
(b) such interest is paid by the company by an account payee cheque;]
2925
[(vi) any interest payable to the Life Insurance Corporation of India established
under the Life Insurance Corporation Act, 1956, in respect of any securities
owned by it or in which it has full beneficial interest; or
(vii) any interest payable to the General Insurance Corporation of India (hereafter
in this clause referred to as the Corporation) or to any of the four companies
(hereafter in this clause referred to as such company), formed by virtue of the
schemes framed under sub-section (1) of Section 16 of the General Insurance
Business (Nationalisation) Act, 1972, in respect of any securities owned by the
Corporation or such company or in which the Corporation or such company has
full beneficial interest; or
(viii) any interest payable to any other insurer in respect of any securities owned by
it or in which it has full beneficial interest.]
2926
[(ix) any interest payable on any security issued by a company, where such
security is in dematerialised form and is listed on a recognised stock exchange in
India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of
1956) and the rules made thereunder.]
Explanation.—2927 [* * *] For the purposes of this section, where any income by
way of interest on securities is credited to any account, whether called “Interest
payable account” or “Suspense account” or by any other name, in the books of
account of the person liable to pay such income, such crediting shall be deemed to
be credit of such income to the account of the payee and the provisions of this
section shall apply accordingly.
Explanation 2.—2928 [* * *]
194. Dividends.— The principal officer of an Indian company or a company which
has made the prescribed arrangements for the declaration and payment of dividends
(including dividends on preference shares) within India, shall, before making any
payment 5166 [by any mode] in respect of any dividend or before making any
distribution or payment to a shareholder, 2929 [who is resident in India] of any dividend
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-
within the meaning of sub-clause (a) or sub-clause (b) or sub-clause (c) or sub-clause
(d) or sub-clause (e) of clause (22) of Section 2, deduct from the amount of such
dividend, income tax 5167 [at the rate of ten per cent]:
2930
[Provided that no such deduction shall be made in the case of a shareholder,
being an individual, if—
(a) the dividend is paid by the company by 5168 [any mode other than cash]; and
(b) the amount of such dividend or, as the case may be, the aggregate of the
amounts of such dividend distributed or paid or likely to be distributed or paid
during the financial year by the company to the shareholder, does not exceed
5169
[five thousand rupees]:
Provided further that the provisions of this section shall not apply to such income
credited or paid to—
(a) the Life Insurance Corporation of India established under the Life Insurance
Corporation Act, 1956, in respect of any shares owned by it or in which it has
full beneficial interest;
(b) the General Insurance Corporation of India (hereafter in this proviso referred
to as the Corporation) or to any of the four companies (hereafter in this
proviso referred to as such company), formed by virtue of the schemes framed
under sub-section (1) of Section 16 of the General Insurance Business
(Nationalisation) Act, 1972, in respect of any shares owned by the Corporation
or such company or in which the Corporation or such company has full
beneficial interest;
(c) any other insurer in respect of any shares owned by it or in which it has full
beneficial interest:]
5170 [* * *]
194-A. Interest other than “Interest on Securities”.— (1) Any person, not
being an individual or a Hindu undivided family, who is responsible for paying to a
resident any income by way of interest other than income by way of “Interest on
Securities”, shall, at the time of credit of such income to the account of the payee or at
the time of payment thereof in cash or by issue of a cheque or draft or by any other
mode, whichever is earlier, deduct income tax thereon at the rates in force:
2933 [Provided that an individual or a Hindu undivided family, whose total sales,
gross receipts or turnover from the business or profession carried on by him exceed
5171 [one crore rupees in case of business or fifty lakh rupees in case of profession]
during the financial year immediately preceding the financial year in which such
interest is credited or paid, shall be liable to deduct income tax under this section.]
Explanation.—For the purposes of this section, where any income by way of interest
as aforesaid is credited to any account, whether called “Interest payable account” or
“Suspense account” or by any other name, in the books of account of the person liable
to pay such income, such crediting shall be deemed to be credit of such income to the
account of the payee and the provisions of this section shall apply accordingly.
(2) 2934 [* * *]
(3) The provisions of sub-section (1) shall not apply—
(i) where the amount of such income or, as the case may be, the aggregate of
the amounts of such income credited or paid or likely to be credited or paid
during the financial year by the person referred to in sub-section (1) to the
account of, or to, the payee, 2935 [does not exceed—
(a) 2936 [forty thousand] rupees, where the payer is a banking company to
which the Banking Regulation Act, 1949 (10 of 1949) applies (including
any bank or banking institution, referred to in Section 51 of that Act);
(b) FN1119[forty thousand] rupees, where the payer is a co-operative society
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-
engaged in carrying on the business of banking;
(c) FN1120[forty thousand] rupees, on any deposit with post office under any
scheme framed by the Central Government and notified by it in this behalf;
and
(d) five thousand rupees in any other case:]
2939 [Provided that in respect of the income credited or paid in respect
of—
(a) time deposits with a banking company to which the Banking Regulation
Act, 1949 (10 of 1949) applies (including any bank or banking
institution referred to in Section 51 of that Act); or
(b) time deposits with a cooperative society engaged in carrying on the
business of banking;
(c) deposits with a public company which is formed and registered in India
with the main object of carrying on the business of providing long-term
finance for construction or purchase of houses in India 2940 [for residential
purposes and which is eligible for deduction under clause (viii) of sub-
section (1) of Section 36]2941 [* * *],
2942 [* * *] the aforesaid amount shall be computed with reference to the
income credited or paid by a branch of the banking company or the

cooperative society or the public company, as the case may be;]
2943 [Provided further that the amount referred to in the first proviso shall
be computed with reference to the income credited or paid by the

banking company or the co-operative society or the public company, as
the case may be, where such banking company or the co-operative
society or the public company has adopted core banking solutions;]
2944 [Provided also that in case of payee being a senior citizen, the
provisions of sub-clause (a), sub-clause (b), and sub-clause (c) shall

have effect as if for the words “ten thousand rupees”, the words “fifty
thousand rupees” had been substituted.
Explanation.—5172 [* * *]
(ii) 2945 [* * *]
(iii) to such income credited or paid to—
(a) any banking company to which the Banking Regulation Act, 1949 (10 of
1949), applies, or any cooperative society engaged in carrying on the
business of banking (including a cooperative land mortgage bank), or
(b) any financial corporation established by or under a Central, State or
Provincial Act, or
(c) the Life Insurance Corporation of India established under the Life
Insurance Corporation Act, 1956 (31 of 1956), or
(d) the Unit Trust of India established under the Unit Trust of India Act, 1963
(52 of 1963), or
(e) any company or cooperative society carrying on the business of insurance,
or
(f) such other institution, association or body or class of institutions,
associations or bodies which the Central Government may, for reasons to be
recorded in writing, notify in this behalf in the Official Gazette:
5173
[Provided that no notification under this sub-clause shall be issued on or
after the 1st day of April, 2020.]
(iv) to such income credited or paid by a firm to a partner of the firm;
(v) to such income credited or 2946 [paid by a co-operative society (other than a
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-
co-operative bank) to a member thereof or to such income credited or paid by
a co-operative society] to any other cooperative society;
2947
[Explanation.—For the purposes of this clause, “co-operative bank” shall
have the same meaning as assigned to it in Part V of the Banking Regulation
Act, 1949 (10 of 1949);]
(vi) to such income credited or paid in respect of deposits under any scheme
framed by the Central Government and notified by it in this behalf in the
Official Gazette;
2948 [(vii) to such income credited or paid in respect of deposits (other than time
deposits made on or after the 1st day of July, 1995) with a banking company
to which the Banking Regulation Act, 1949 (10 of 1949), applies (including
any bank or banking institution referred to in Section 51 of that Act);
(vii-a) to such income credited or paid in respect of,—
(a) deposits with a primary agricultural credit society of a primary credit
society or a cooperative land mortgage bank or a cooperative land
development bank;
(b) deposits (other than time deposits made on or after the 1st day of July,
1995) with a cooperative society, other than a cooperative society or bank
referred to in sub-clause (a), engaged in carrying on the business of
banking;]
(viii) to such income credited or paid by the Central Government under any
provision of this Act, or the Indian Income Tax Act, 1922 (11 of 1922), or the
Estate Duty Act, 1953 (34 of 1953), or the Wealth Tax Act, 1957 (27 of
1957), or the Gift Tax Act, 1958 (18 of 1958), or the Super Profits Tax Act,
1963 (14 of 1963), or the Companies (Profits) Surtax Act, 1964 (7 of 1964),
or the Interest Tax Act, 1974 (45 of 1974);
2949 [(ix) to such income credited by way of interest on the compensation amount
awarded by the Motor Accidents Claims Tribunal;

(ix-a) to such income paid by way of interest on the compensation amount
awarded by the Motor Accidents Claims Tribunal where the amount of such
income or, as the case may be, the aggregate of the amounts of such income
paid during the financial year does not exceed fifty thousand rupees;]
2950
[(x) to such income which is paid or payable by an infrastructure capital
company or infrastructural capital fund or a public sector company 2951 [or
scheduled bank] in relation to a zero coupon bond issued on or after the 1st
day of June, 2005 by such company or fund or public sector company FN1121[or
scheduled bank];]
2953 [(xi) to any income by way of interest referred to in clause (23-FC) of Section
10.]
5174 [Provided that a co-operative society referred to in clause (v) or clause
(viia) shall be liable to deduct income-tax in accordance with the provisions of

sub-section (1), if—
(a) the total sales, gross receipts or turnover of the co-operative society exceeds
fifty crore rupees during the financial year immediately preceding the financial
year in which the interest referred to in sub-section (1) is credited or paid;
and
(b) the amount of interest, or the aggregate of the amounts of such interest,
credited or paid, or is likely to be credited or paid, during the financial year is
more than fifty thousand rupees in case of payee being a senior citizen and
forty thousand rupees in any other case.]
2954
[Explanation 2955 [(1)].—For the purposes of clauses (i), (vii) and (vii-a), “time
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-
deposits” means deposits (2956 [including] recurring deposits) repayable on the expiry
of fixed periods.]
5175
[Explanation 2.—For the purposes of this sub-section, “senior citizen” means an
individual resident in India who is of the age of sixty years or more at any time during
the relevant previous year.]
(4) The person responsible for making the payment referred to in sub-section (1)
may, at the time of making any deduction, increase or reduce the amount to be
deducted under this section for the purpose of adjusting any excess or deficiency
arising out of any previous deduction or failure to deduct during the financial year.
Explanation.—[Omitted]2958
5176
[(5) The Central Government may, by notification in the Official Gazette, provide
that the deduction of tax shall not be made or shall be made at such lower rate, from
such payment to such person or class of persons, as may be specified in the said
notification.]
194-B. Winnings from lottery or crossword puzzle.— The person responsible
for paying to any person any income by way of winnings from any lottery or crossword
puzzle 2959 [or card game and other game of any sort] in an amount exceeding five
thousand rupees shall, at the time of payment thereof, deduct income tax thereon at
the rates in force:
2960 [* * *]
2961
[Provided 2962 [* * *] that in a case where the winnings are wholly in kind or
partly in cash and partly in kind but the part in cash is not sufficient to meet the
liability of deduction of tax in respect of whole of the winnings, the person responsible
for paying shall, before releasing the winnings, ensure that tax has been paid in
respect of the winnings.]
194-BB. Winnings from horse race.— Any person, being a bookmaker or a
person to whom a licence has been granted by the Government under any law for the
time being in force for horse racing in any race course or for arranging for wagering or
betting in any race course, who is responsible for paying to any person any income by
way of winnings from any horse race in an amount exceeding 2963 [ten thousand
rupees] shall, at the time of payment thereof, deduct income tax thereon at the rates
in force:
2964 [* * *]
[2965 [194-C. Payments to contractors.— (1) Any person responsible for paying
any sum to any resident (hereafter in this section referred to as the contractor) for
carrying out any work (including supply of labour for carrying out any work) in
pursuance of a contract between the contractor and a specified person shall, at the
time of credit of such sum to the account of the contractor or at the time of payment
thereof in cash or by issue of a cheque or draft or by any other mode, whichever is
earlier, deduct an amount equal to—
(i) one per cent where the payment is being made or credit is being given to an
individual or a Hindu undivided family;
(ii) two per cent where the payment is being made or credit is being given to a
person other than an individual or a Hindu undivided family, of such sum as
income tax on income comprised therein.
(2) Where any sum referred to in sub-section (1) is credited to any account,
whether called ”Suspense account” or by any other name, in the books of account of
the person liable to pay such income, such crediting shall be deemed to be credit of
such income to the account of the payee and the provisions of this section shall apply
accordingly.
(3) Where any sum is paid or credited for carrying out any work mentioned in sub-
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-
clause (e) of clause (iv) of the Explanation, tax shall be deducted at source—
(i) on the invoice value excluding the value of material, if such value is
mentioned separately in the invoice; or
(ii) on the whole of the invoice value, if the value of material is not mentioned
separately in the invoice.
(4) No individual or Hindu undivided family shall be liable to deduct income tax on
the sum credited or paid to the account of the contractor where such sum is credited
or paid exclusively for personal purposes of such individual or any member of Hindu
undivided family.
(5) No deduction shall be made from the amount of any sum credited or paid or
likely to be credited or paid to the account of, or to, the contractor, if such sum does
not exceed 2966 [thirty thousand rupees]:
Provided that where the aggregate of the amounts of such sums credited or paid or
likely to be credited or paid during the financial year exceeds 2967 [one lakh rupees],
the person responsible for paying such sums referred to in sub-section (1) shall be
liable to deduct income tax under this section.
(6) No deduction shall be made from any sum credited or paid or likely to be
credited or paid during the previous year to the account of a contractor during the
course of business of plying, hiring or leasing goods carriages, 2968 [where such
contractor owns ten or less goods carriages at any time during the previous year and
furnishes a declaration to that effect along with] his Permanent Account Number, to
the person paying or crediting such sum.
(7) The person responsible for paying or crediting any sum to the person referred to
in sub-section (6) shall furnish, to the prescribed income tax authority or the person
authorised by it, such particulars, in such form and within such time as may be
prescribed.
(i) “specified person” shall mean,—
(a) the Central Government or any State Government; or
(b) any local authority; or
(c) any corporation established by or under a Central, State or Provincial Act; or
(d) any company; or
(e) any co-operative society; or
(f) any authority, constituted in India by or under any law, engaged either for
the purpose of dealing with and satisfying the need for housing
accommodation or for the purpose of planning, development or improvement
of cities, towns and villages, or for both; or
(g) any society registered under the Societies Registration Act, 1860 (21 of
1860) or under any law corresponding to that Act in force in any part of India;
or
(h) any trust; or
(i) any university established or incorporated by or under a Central, State or
Provincial Act and an institution declared to be a university under Section 3 of
the University Grants Commission Act, 1956 (3 of 1956); or
(j) any Government of a foreign State or a foreign enterprise or any association
or body established outside India; or
(k) any firm; or
(l) any person, being an individual or a Hindu undivided family or an association
of persons or a body of individuals, if such person,—
(A) does not fall under any of the preceding sub-clauses; and
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-
(B) 5177 [has total sales, gross receipts or turnover from business or profession
carried on by him exceeding one crore rupees in case of business or fifty lakh
rupees in case of profession] during the financial year immediately preceding
the financial year in which such sum is credited or paid to the account of the
contractor;
(ii) “goods carriage” shall have the meaning assigned to it in the Explanation to
sub-section (7) of Section 44-AE;
(iii) “contract” shall include sub-contract;
(iv) “work” shall include—
(a) advertising;
(b) broadcasting and telecasting including production of programmes for such
broadcasting or telecasting;
(c) carriage of goods or passengers by any mode of transport other than by
railways;
(d) catering;
5178
[(e) manufacturing or supplying a product according to the requirement or
specification of a customer by using material purchased from such customer
or its associate, being a person placed similarly in relation to such customer as
is the person placed in relation to the assessee under the provisions contained
in clause (b) of sub-section (2) of Section 40-A,]
but does not include manufacturing or supplying a product according to the
requirement or specification of a customer by using material purchased from a person,
other than such customer 5179 [or associate of such customer].]
194-D. Insurance commission.— Any person responsible for paying to a resident
any income by way of remuneration or reward, whether by way of commission or
otherwise, for soliciting or procuring insurance business (including business relating to
the continuance, renewal or revival of policies of insurance) shall, at the time of credit
of such income to the account of the payee or at the time of payment thereof in cash
or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct
income tax thereon at the rates in force:
Provided that no deduction shall be made under this section from any such income
credited or paid before the 1st day of June, 1973:
Provided further that no deduction shall be made under this section in a case
where the amount of such income or, as the case may be, the aggregate of the
amounts of such income credited or paid or likely to be credited or paid during the
financial year to the account of, or to, the payee, does not exceed 2969 [fifteen thousand
rupees].
2970
[194-DA. Payment in respect of life insurance policy.—Any person
responsible for paying to a resident any sum under a life insurance policy, including
the sum allocated by way of bonus on such policy, other than the amount not
includible in the total income under clause (10-D) of Section 10, shall, at the time of
payment thereof, deduct income tax thereon at the rate of 2971 [five per cent. on the
amount of income comprised therein]:
Provided that no deduction under this section shall be made where the amount of
such payment or, as the case may be, the aggregate amount of such payments to
the payee during the financial year is less than one hundred thousand rupees.]
194-E. Payments to non-resident sportsmen or sports associations.— Where
any income referred to in Section 115-BBA is payable to a non-resident sportsman
(including an athlete) 2972 [or an entertainer,] who is not a citizen of India or a non-
resident sports association or institution, the person responsible for making the
payment shall, at the time of credit of such income to the account of the payee or at
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-
the time of payment thereof in cash or by issue of a cheque or draft or by any other
mode, whichever is earlier, deduct income tax thereon at the rate of 2973 [twenty per
cent].
2974
[194-EE. Payments in respect of deposits under National Savings
Scheme, etc.— The person responsible for paying to any person any amount referred
to in clause (a) of sub-section (2) of Section 80-CCA shall, at the time of payment
thereof, deduct income tax thereon at the rate of 2975 [ten per cent]:
Provided that no deduction shall be made under this section where the amount of
such payment or, as the case may be, the aggregate amount of such payments to the
payee during the financial year is less than two thousand five hundred rupees:
Provided further that nothing contained in this section shall apply to the payment
of the said amount to the heirs of the assessee.]
2976 [194-F. Payments on account of repurchase of units by Mutual Fund or
Unit Trust of India.— The person responsible for paying to any person any amount
referred to in sub-section (2) of Section 80-CCB shall, at the time of payment thereof,
deduct income tax thereon at the rate of twenty per cent.]
2977
[194-G. Commission, etc., on sale of lottery tickets.—2978 [(1)] Any person
who is responsible for paying, on or after the 1st day of October, 1991 to any person,
who is or has been stocking, distributing, purchasing or selling lottery tickets, any
income by way of commission, remuneration or prize (by whatever name called) on
such tickets in an amount exceeding 2979 [fifteen thousand rupees] shall, at the time of
credit of such income to the account of the payee or at the time of payment of such
income in cash or by the issue of a cheque or draft or by any other mode, whichever is
earlier, deduct income tax thereon at the rate of 2980 [five per cent].
(2) 2981 [* * *]
(3) 2982 [* * *]
Explanation.—For the purposes of this section, where any income is credited to any
account, whether called “Suspense account” or by any other name, in the books of
account of the person liable to pay such income, such crediting shall be deemed to be
credit of such income to the account of the payee and the provisions of this section
shall apply accordingly.]
2983 [194-H. Commission or brokerage.— Any person, not being an individual or a
Hindu undivided family, who is responsible for paying, on or after the 1st day of June,
2001, to a resident, any income by way of commission (not being insurance
commission referred to in Section 194-D) or brokerage, shall, at the time of credit of
such income to the account of the payee or at the time of payment of such income in
cash or by the issue of a cheque or draft or by any other mode, whichever is earlier,
deduct income tax thereon at the rate of 2984 [five per cent]:
Provided that no deduction shall be made under this section in a case where the
amount of such income or, as the case may be, the aggregate of the amounts of such
income credited or paid or likely to be credited or paid during the financial year to the
account of, or to, the payee, does not exceed 2985 [fifteen thousand rupees]:
2986 [Provided further that an individual or a Hindu undivided family, whose total
sales, gross receipts or turnover from the business or profession carried on by him
exceed 5180 [one crore rupees in case of business or fifty lakh rupees in case of
profession] during the financial year immediately preceding the financial year in which
such commission or brokerage is credited or paid, shall be liable to deduct income tax
under this section.]
2987 [Provided also that no deduction shall be made under this section on any
commission or brokerage payable by Bharat Sanchar Nigam Limited or Mahanagar

Telephone Nigam Limited to their public call office franchisees.]
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-
(i) “commission or brokerage” includes any payment received or receivable,
directly or indirectly, by a person acting on behalf of another person for
services rendered (not being professional services) or for any services in the
course of buying or selling of goods or in relation to any transaction relating to
any asset, valuable article or thing, not being securities;
(ii) the expression “professional services” means services rendered by a person
in the course of carrying on a legal, medical, engineering or architectural
profession or the profession of accountancy or technical consultancy or interior
decoration or such other profession as is notified by the Board for the
purposes of Section 44-AA;
(iii) the expression “securities” shall have the meaning assigned to it in clause
(h) of Section 2 of the Securities Contracts (Regulation) Act, 1956;
(iv) where any income is credited to any account, whether called “Suspense
account” or by any other name, in the books of account of the person liable to
pay such income, such crediting shall be deemed to be credit of such income
to the account of the payee and the provisions of this section shall apply
accordingly.]
2988 [194-I. Rent.— Any person, not being an individual or a Hindu undivided
family, who is responsible for paying to 2989 [a resident] any income by way of rent,
shall, at the time of credit of such income to the account of the payee or at the time of
payment thereof in cash or by the issue of a cheque or draft or by any other mode,
whichever is earlier, 2990 [deduct income tax thereon at the rate of—
2991 [(a) two per cent for the use of any machinery or plant or equipment; and
(b) ten per cent for the use of any land or building (including factory building) or
land appurtenant to a building (including factory building) or furniture or
fittings:]
such income or, as the case may be, the aggregate of the amounts of such income
credited or paid or likely to be credited or paid during the financial year by the
aforesaid person to the account of, or to, the payee, does not exceed 2992 [two hundred
and forty thousand rupees]:
such income by way of rent is credited or paid, shall be liable to deduct income tax
under this section.]
2994 [Provided also that no deduction shall be made under this section where the
income by way of rent is credited or paid to a business trust, being a real estate
investment trust, in respect of any real estate asset, referred to in clause (23-FCA) of
Section 10, owned directly by such business trust.]
2995
[(i) “rent” means any payment, by whatever name called, under any lease,
sub-lease, tenancy or any other agreement or arrangement for the use of
(either separately or together) any,—
(a) land; or
(b) building (including factory building); or
(c) land appurtenant to a building (including factory building); or
(d) machinery; or
(e) plant; or
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(f) equipment; or
(g) furniture; or
(h) fittings,
whether or not any or all of the above are owned by the payee;]
(ii) where any income is credited to any account, whether called “Suspense
account” or by any other name, in the books of account of the person liable to
pay such income, such crediting shall be deemed to be credit of such income
to the account of the payee and the provisions of this section shall apply
accordingly.]
2996 [194-IA. Payment on transfer of certain immovable property other than
agricultural land.— (1) Any person, being a transferee, responsible for paying (other
than the person referred to in Section 194-LA) to a resident transferor any sum by way
of consideration for transfer of any immovable property (other than agricultural land),
shall, at the time of credit of such sum to the account of the transferor or at the time
of payment of such sum in cash or by issue of a cheque or draft or by any other mode,
whichever is earlier, deduct an amount equal to one per cent of such sum as income
tax thereon.
(2) No deduction under sub-section (1) shall be made where the consideration for
the transfer of an immovable property is less than fifty lakh rupees.
(3) The provisions of Section 203-A shall not apply to a person required to deduct
tax in accordance with the provisions of this section.
(a) “agricultural land” means agricultural land in India, not being a land situate
in any area referred to in items (a) and (b) of sub-clause (iii) of clause (14) of
Section 2;
2997 [(aa) “consideration for transfer of any immovable property” shall include all
charges of the nature of club membership fee, car parking fee, electricity or
water facility fee, maintenance fee, advance fee or any other charges of similar
nature, which are incidental to transfer of the immovable property;]
(b) “immovable property” means any land (other than agricultural land) or any
building or part of a building.]
2998
[194-IB. Payment of rent by certain individuals or Hindu undivided
family.— (1) Any person, being an individual or a Hindu undivided family (other than
those referred to in the second proviso to Section 194-I), responsible for paying to a
resident any income by way of rent exceeding fifty thousand rupees for a month or
part of a month during the previous year, shall deduct an amount equal to five per
cent. of such income as income-tax thereon.
(2) The income-tax referred to in sub-section (1) shall be deducted on such income
at the time of credit of rent, for the last month of the previous year or the last month
of tenancy, if the property is vacated during the year, as the case may be, to the
account of the payee or at the time of payment thereof in cash or by issue of a cheque
or draft or by any other mode, whichever is earlier.
(4) In a case where the tax is required to be deducted as per the provisions of
Section 206-AA, such deduction shall not exceed the amount of rent payable for the
last month of the previous year or the last month of the tenancy, as the case may be.
Explanation.— For the purposes of this section, “rent” means any payment, by
whatever name called, under any lease, sub-lease, tenancy or any other agreement or
arrangement for the use of any land or building or both.]
2999 [194-IC. Payment under specified agreement.— Notwithstanding anything
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-
contained in Section 194-IA, any person responsible for paying to a resident any sum
by way of consideration, not being consideration in kind, under the agreement referred
to in sub-section (5A) of Section 45, shall at the time of credit of such sum to the
or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per
cent. of such sum as income-tax thereon.]
3000
[194-J. Fees for professional or technical services.— (1) Any person, not
being an individual or a Hindu undivided family, who is responsible for paying to a
resident any sum by way of—
(a) fees for professional services, or
(b) fees for technical services, 3001 [or]
3002
[(ba) any remuneration or fees or commission by whatever name called, other
than those on which tax is deductible under Section 192, to a director of a
company, or]
3003 [(c) royalty, or
(d) any sum referred to in clause (v-a) of Section 28,]

shall, at the time of credit of such sum to the account of the payee or at the time of
payment thereof in cash or by issue of a cheque or draft or by any other mode,
whichever is earlier, deduct an amount equal to 5182 [two per cent of such sum in case
of fees for technical services (not being a professional services, or royalty where such
royalty is in the nature of consideration for sale, distribution or exhibition of
cinematographic films and ten per cent of such sum in other cases,] as income tax on
income comprised therein:
Provided that no deduction shall be made under this section—
(A) from any sums as aforesaid credited or paid before the 1st day of July, 1995;
or
(B) where the amount of such sum or, as the case may be, the aggregate of the
amounts of such sums credited or paid or likely to be credited or paid during
the financial year by the aforesaid person to the account of, or to, the payee,
does not exceed—
(i) 3005 [thirty thousand rupees], in the case of fees for professional services
referred to in clause (a), or
(ii) FN1122[thirty thousand rupees], in the case of fees for technical services
referred to in 3007 [clause (b), or]
3008 [(iii) FN1123 [thirty thousand rupees], in the case of royalty referred to in
clause (c), or
(iv) twenty thousand rupees, in the case of sum referred to in clause (d):]
such sum by way of fees for professional services or technical services is credited or
paid, shall be liable to deduct income tax under this section:]
3011 [Provided also that no individual or a Hindu undivided family referred to in the
second proviso shall be liable to deduct income tax on the sum by way of fees for
professional services in case such sum is credited or paid exclusively for personal
purposes of such individual or any member of Hindu undivided family:]
3012 [Provided also that the provisions of this section shall have effect, as if for the
words “ten per cent.”, the words “two per cent.” had been substituted in the case of a
payee, engaged only in the business of operation of call centre.]
(2) 3013 [* * *]
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-
(3) 3014 [* * *]
(a) “professional services” mean services rendered by a person in the course of
carrying on legal, medical, engineering or architectural profession or the
profession of accountancy or technical consultancy or interior decoration or
advertising or such other profession as is notified by the Board for the
purposes of Section 44-AA or of this section;
(b) “fees for technical services” shall have the same meaning as in Explanation 2
to clause (vii) of sub-section (1) of Section 9;
3015 [(ba) “royalty” shall have the same meaning as in Explanation 2 to clause (vi)
of sub-section (1) of Section 9;]

(c) where any sum referred to in sub-section (1) is credited to any account,
whether called “Suspense account” or by any other name, in the books of
account of the person liable to pay such sum, such crediting shall be deemed
to be credit of such sum to the account of the payee and the provisions of this
section shall apply accordingly.
5184 [194-K. Income in respect of units.—Any person responsible for paying to a
resident any income in respect of—

(a) units of a Mutual Fund specified under clause (23D) of section 10; or
(b) units from the Administrator of the specified undertaking; or
(c) units from the specified company,
shall, at the time of credit of such income to the account of the payee or at the time of
payment thereof by any mode, whichever is earlier, deduct income-tax thereon at the
rate of ten per cent:
Provided that the provisions of this section shall not apply—
(i) where the amount of such income or, as the case may be, the aggregate of
the amounts of such income credited or paid or likely to be credited or paid
during the financial year by the person responsibile for making the payment to
the account of, or to, the payee does not exceed five thousand rupees; or
(ii) if the income is of the nature of capital gains.
Explanation 1.—For the purposes of this section,—
(a) “Administrator” means the Administrator as referred to in clause (a) of
section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act,
2002 (58 of 2002);
(b) “specified company” means a company as referred to in clause (h) of section
2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002
(58 of 2002);
(c) “specified undertaking” shall have the meaning assigned to it in clause (i) of
section 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act,
2002 (58 of 2002).
Explanation 2.—For the removal of doubts, it is hereby clarified that where any
income referred to in this section is credited to any account, whether called “suspense
account” or by any other name, in the books of account of the person liable to pay
such income, such crediting shall be deemed to be the credit of such income to the
account of the payee and the provisions of this section shall apply accordingly.]
194-L. Payment of compensation on acquisition of capital asset.— 3017 [* * *]
3018
[194-LA. Payment of compensation on acquisition of certain immovable
property.— Any person responsible for paying to a resident any sum, being in the
nature of compensation or the enhanced compensation or the consideration or the
enhanced consideration on account of compulsory acquisition, under any law for the
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-
time being in force, of any immovable property (other than agricultural land), shall, at
the time of payment of such sum in cash or by issue of a cheque or draft or by any
other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum
as income tax thereon:
such payment or, as the case may be, the aggregate amount of such payments to a
resident during the financial year does not exceed 3019 [two lakh and fifty thousand
rupees]:
3020 [Provided further that no deduction shall be made under this section where such
payment is made in respect of any award or agreement which has been exempted
from levy of income-tax under Section 96 of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of
2013).]
(i) “agricultural land” means agricultural land in India including land situate in any
area referred to in items (a) and (b) of sub-clause (iii) of clause (14) of Section
2;
(ii) “immovable property” means any land (other than agricultural land) or any
building or part of a building.]
3021
[194-LB. Income by way of interest from infrastructure debt fund.—
Where any income by way of interest is payable to a non-resident, not being a
company, or to a foreign company, by an infrastructure debt fund referred to in clause
(47) of Section 10, the person responsible for making the payment shall, at the time
of credit of such income to the account of the payee or at the time of payment thereof
in cash or by issue of a cheque or draft or by any other mode, whichever is earlier,
deduct income tax thereon at the rate of five per cent.
3022 [194-LBA. Certain income from units of a business trust.—(1) Where any
distributed income referred to in Section 115-UA, being of the nature referred to 3023 [in
5185 [* * *] clause (23-FC)] 3024 [or clause (23-FCA)] of Section 10, is payable by a
business trust to its unit holder being a resident, the person responsible for making
the payment shall at the time of credit of such payment to the account of the payee or
at the time of payment thereof in cash or by the issue of a cheque or draft or by any
other mode, whichever is earlier, deduct income tax thereon at the rate of ten per
cent.
(2) Where any distributed income referred to in Section 115-UA, being of the nature
referred to 3025 [in 5186 [* * *] clause (23-FC)] of Section 10, is payable by a business
trust to its unit holder, 3026 [being a non-resident (not being a company)] or a foreign
company, the person responsible for making the payment shall at the time of credit of
such payment to the account of the payee or at the time of payment thereof in cash or
by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct
income tax thereon at the rate of 5187 [five per cent in case of income of the nature
referred to in sub-clause (a) and ten per cent in case of income of the nature referred
to in sub-clause (b), of the said clause]
5188
[(2-A) Nothing contained in sub-sections (1) and (2) shall apply in respect of
income of the nature referred to in sub-clause (b) of clause (23-FC) of Section 10, if
the special purpose vehicle referred to in the said clause has not exercised the option
under Section 115-BAA.]
3027 [(3) Where any distributed income referred to in Section 115-UA, being of the
nature referred to in clause (23-FCA) of Section 10, is payable by a business trust to

its unit holder, being a non-resident (not being a company), or a foreign company, the
person responsible for making the payment shall at the time of credit of such payment
to the account of the payee or at the time of payment thereof in cash or by the issue
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-
of a cheque or draft or by any other mode, whichever is earlier, deduct income tax
thereon at the rates in force.]
3028
[194-LBB. Income in respect of units of investment fund.— Where any
income, other than that proportion of income which is of the same nature as income
referred to in clause (23-FBB) of Section 10, is payable to a unit holder in respect of
units of an investment fund specified in clause (a) of the Explanation 1 to Section 115
-UB, the person responsible for making the payment shall, at the time of credit of such
income to the account of payee or at the time of payment thereof in cash or by issue
of a cheque or draft or by any other mode, whichever is earlier, 3029 [deduct income-tax
thereon,—]
(i) at the rate of ten per cent, where the payee is a resident;
(ii) at the rates in force, where the payee is a non-resident (not being a
company) or a foreign company:
Provided that where the payee is a non-resident (not being a company) or a
foreign company, no deduction shall be made in respect of any income that is
not chargeable to tax under the provisions of the Act.]
Explanation.— For the purposes of this section,—
(a) “unit” shall have the meaning assigned to it in clause (c) of the Explanation 1
to Section 115-UB;
(b) where any income as aforesaid is credited to any account, whether called
“suspense account” or by any other name, in the books of account of the
person liable to pay such income, such crediting shall be deemed to be the
credit of such income to the account of the payee, and the provisions of this
section shall apply accordingly.]
3030
[194-LBC. Income in respect of investment in securitisation trust.— (1)
Where any income is payable to an investor, being a resident, in respect of an
investment in a securitisation trust specified in clause (d) of the Explanation occurring
after Section 115-TCA, the person responsible for making the payment shall, at the
time of credit of such income to the account of the payee or at the time of payment
thereof in cash or by issue of a cheque or draft or by any other mode, whichever is
earlier, deduct income-tax thereon, at the rate of—
(i) twenty-five per cent, if the payee is an individual or a Hindu undivided family;
(ii) thirty per cent, if the payee is any other person.
(2) Where any income is payable to an investor, being a non-resident (not being a
company) or a foreign company, in respect of an investment in a securitisation trust
specified in clause (d) of the Explanation occurring after Section 115-TCA, the person
responsible for making the payment shall, at the time of credit of such income to the
or draft or by any other mode, whichever is earlier, deduct income-tax thereon, at the
rates in force.
(a) “investor” shall have the meaning assigned to it in clause (a) of the
Explanation occurring after Section 115-TCA;
(b) where any income as aforesaid is credited to any account, whether called
“suspense account” or by any other name, in the books of account of the
person liable to pay such income, such crediting shall be deemed to be the
credit of such income to the account of the payee, and the provisions of this
section shall apply accordingly.]
3031 [194-LC. Income by way of interest from Indian company.— (1) Where any
income by way of interest referred to in sub-section (2) is payable to a non-resident,

not being a company or to a foreign company by a specified company 3032 [or a
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-
business trust], the person responsible for making the payment, shall, at the time of
credit of such income to the account of the payee or at the time of payment thereof in
cash or by issue of a cheque or draft or by any other mode, whichever is earlier,
deduct the income tax thereon at the rate of five per cent:
5189 [Provided that in case of income by way of interest referred to clause (ib) of sub-
section (2), the income-tax shall be deducted at the rate of four per cent.]
(2) The interest referred to in sub-section (1) shall be the income by way of interest
payable by the specified company 3033 [or the business trust],—
3034 [(i) in respect of monies borrowed by it in foreign currency from a source
outside India,—
(a) under a loan agreement at any time on or after the 1st day of July, 2012
but before the 3035 [1st day of July, 5190 [2023]]; or
(b) by way of issue of long-term infrastructure bonds at any time on or after
the 1st day of July, 2012 but before the 1st day of October, 2014; or
(c) by way of issue of any long-term bond including long-term infrastructure
bond at any time on or after the 1st day of October, 2014 but before the
FN1124 [1st day of July, 5191 [2023]],
as approved by the Central Government in this behalf; 3037 [or]]

3038 [(i-a) in respect of monies borrowed by it from a source outside India by
way of issue of rupee denominated bond before the 1st day of July, 5192
[2023], and]
5193 [(i-b) in respect of monies borrowed by it from a source outside India by
way of issue of any long-term bond or rupee denominated bond on or after

the 1st day of April, 2020 but before the 1st day of July, 2023, which is
listed only on a recognised stock exchange located in any International
Financial Services Centre, and]
(ii) to the extent to which such interest does not exceed the amount of interest
calculated at the rate approved by the Central Government in this behalf,
having regard to the terms of the loan or the bond and its repayment.
Explanation.—For the purpose of this section—
(a) “foreign currency” shall have the meaning assigned to it in clause (m) of
Section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999);
(b) “specified company” means an Indian company.]
5194 [(c) “International Financial Services Centre” shall have the meaning
assigned to it in clause (q) of Section 2 of the Special Economic Zones Act,
2005 (28 of 2005);
(d) “recognised stock exchange” shall have the meaning assigned to it in clause
(ii) of Explanation 1 to clause (5) of Section 43.]
3039
[194-LD. Income by way of interest on certain bonds and Government
securities.— (1) Any person who is responsible for paying to a person being a Foreign
Institutional Investor or a Qualified Foreign Investor, any income by way of interest
referred to in sub-section (2), shall, at the time of credit of such income to the account
of the payee or at the time of payment of such income in cash or by the issue of a
cheque or draft or by any other mode, whichever is earlier, deduct income tax thereon
at the rate of five per cent.
5195 [(2) The income by way of interest referred to in sub-section (1) shall be the
interest payable,—
(a) on or after the 1st day of June, 2013 but before the 1st day of July, 2023 in
respect of the investment made by the payee in—
(i) a rupee denominated bond of an Indian company; or
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-
(ii) a Government security;
(b) on or after the 1st day of April, 2020 but before the 1st day of July, 2023
in respect of the investment made by the payee in municipal debt
securities:
Provided that the rate of interest in respect of bond referred to in sub-
clause (i) of clause (a) shall not exceed the rate as the Central Government
may, by notification in the Official Gazette, specify.]
Explanation.—For the purpose of this section,—
(a) “Foreign Institutional Investor” shall have the meaning assigned to it in
clause (a) of the Explanation to Section 115-AD;
(b) “Government security” shall have the meaning assigned to it in clause (b) of
Section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
5196 [(ba) “municipal debt securities” shall have the meaning assigned to it in
clause (m) of sub-regulation (1) of Regulation 2 of the Securities and

Exchange Board of India (Issue and Listing of Municipal Debt Securities)
Regulations, 2015 made under the Securities and Exchange Board of India
Act, 1992 (15 of 1992);]
(c) “Qualified Foreign Investor” shall have the meaning assigned to it in the
Circular No. Cir/IMD/DF/14/2011, dated the 9th August, 2011, as amended
from time to time, issued by the Securities and Exchange Board of India,
under Section 11 of the Securities and Exchange Board of India Act, 1992 (15
of 1992).]
3041
[194-M. Payment of certain sums by certain individuals or Hindu
undivided family.— (1) Any person, being an individual or a Hindu undivided family
(other than those who are required to deduct income-tax as per the provisions of
Section 194-C, Section 194-H or Section 194-J) responsible for paying any sum to any
resident for carrying out any work (including supply of labour for carrying out any
work) in pursuance of a contract, by way of commission (not being insurance
commission referred to in Section 194-D) or brokerage or by way of fees for
professional services during the financial year, shall, at the time of credit of such sum
or at the time of payment of such sum in cash or by issue of a cheque or draft or by
any other mode, whichever is earlier, deduct an amount equal to five per cent. of 3042
[such sum as] income-tax thereon:
Provided that no such deduction under this section shall be made if such sum or,
as the case may be, aggregate of such sums, credited or paid to a resident during a
financial year does not exceed fifty lakh rupees.
(a) “contract” shall have the meaning assigned to it in clause (iii) of the
Explanation to Section 194-C;
(b) “commission or brokerage” shall have the meaning assigned to it in clause (i)
of the Explanation to Section 194-H;
(c) “professional services” shall have the meaning assigned to it in clause (a) of
the Explanation to Section 194-J;
(d) “work” shall have the meaning assigned to it in clause (iv) of the Explanation
to Section 194-C.]
5197
[194-N. Payment of certain amounts in cash.—Every person, being,—
(i) a banking company to which the Banking Regulation Act, 1949 (10 of 1949)
applies (including any bank or banking institution referred to in Section 51 of
that Act);
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-
(ii) a co-operative society engaged in carrying on the business of banking; or

(iii) a post office,
who is responsible for paying any sum, being the amount or the aggregate of
amounts, as the case may be, in cash exceeding one crore rupees during the previous
year, to any person (herein referred to as the recipient) from one or more accounts
maintained by the recipient with it shall, at the time of payment of such sum, deduct
an amount equal to two per cent of such sum, as income tax:
Provided that in case of a recepient who has not filed the returns of income for all of
the three assessment years relevant to the three previous years, for which the time
limit of file return of income under sub-section (1) of Section 139 has expired,
immediately preceding the previous year in which the payment of the sum is made to
him, the provision of this section shall apply with the modification that—
(i) the sum shall be the amount or the aggregate of amounts, as the case may
be, in cash exceeding twenty lakh rupees during the previous year; and
(ii) the deduction shall be—
(a) an amount equal to two per cent. of the sum where the amount or
aggregate of amounts, as the case may be, being paid in cash exceeds
twenty lakh rupees during the previous year but does not exceed one crore
rupees; or
(b) an amount equal to five per cent. of the sum where the amount or
aggregate of amounts, as the case may be, being paid in cash exceeds one
crore rupees during the previous year:
Provided further that the Central Government may specify in consultation with the
Reserve Bank of India, by notification in the Official Gazette, the recipient in whose
case the first proviso shall not apply or apply at reduced rate, if such recipient satisfies
the conditions specified in such notification:
Provided also that nothing contained in this section shall apply to any payment
made to—
(i) the Government;
(ii) any banking company or co-operative society engaged in carrying on the
business of banking or a post office;
(iii) any business correspondent of a banking company or co-operative society
engaged in carrying on the business of banking, in accordance with the
guidelines issued in this regard by the Reserve Bank of India under the
Reserve Bank of India Act, 1934 (2 of 1934);
(iv) any white label automated teller machine operator of a banking company or
co-operative society engaged in carrying on the business of banking, in
accordance with the authorisation issued by the Reserve Bank of India under
the Payment and Setllement Systems Act, 2007 (51 of 2007):
Provided also that the Central Government may specify in consultation with the
Reserve Bank of India, by notification in the Official Gazette, the recipient in whose
case the provision of this section shall not apply or apply at reduced rate, if such
recipient satisfies the conditions specified in such notification.]
5198
[194-O. Payment of certain sums by e-commerce operator to e-commerce
participant.—(1) Notwithstanding anything to the contrary contained in any of the
provisions of Part B of this Chapter, where sale of goods or provision of services of an e
-commerce participant is facilitated by an e-commerce operator through its digital or
electronic facility or platform (by whatever name called), such e-commerce operator
shall, at the time of credit of amount of sale or services or both to the account of an e-
commerce participant or at the time of payment thereof to such e-commerce
participant by any mode, whichever is earlier, deduct income-tax at the rate of one per
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-
cent. of the gross amount of such sales or services or both.
Explanation.—For the purposes of this sub-section, any payment made by a
purchaser of goods or recipient of services directly to an e-commerce participant for
the sale of goods or provision of services or both, facilitated by an e-commerce
operator, shall be deemed to be the amount credited or paid by the e-commerce
operator to the e-commerce participant and shall be included in the gross amount of
such sale or services for the purpose of deduction of income-tax under this sub-
section.
(2) No deduction under sub-section (1) shall be made from any sum credited or
paid or likely to be credited or paid during the previous year to the account of an e-
commerce participant, being an individual or Hindu undivided family, where the gross
amount of such sale or services or both during the previous year does not exceed five
lakh rupees and such e-commerce participant has furnished his Permanent Account
Number or Aadhaar number to the e-commerce operator.
(3) Notwithstanding anything contained in Part B of this Chapter, a transaction in
respect of which tax has been deducted by the e-commerce operator under sub-
section (1), or which is not liable to deduction under sub-section (2), shall not be
liable to tax deduction at source under any other provision of this Chapter:
Provided that the provisions of this sub-section shall not apply to any amount or
aggregate of amounts received or receivable by an e-commerce operator for hosting
advertisements or providing any other services which are not in connection with the
sale or services referred to in sub-section (1).
(4) If any difficulty arises in giving effect to the provisions of this section, the Board
may, with the approval of the Central Government, issue guidelines for the purpose of
removing the difficulty.
(5) Every guideline issued by the Board under sub-section (4) shall be laid before
each House of Parliament, and shall be binding on the income-tax authorities and on
the e-commerce operator.
(6) For the purposes of this section, e-commerce operator shall be deemed to be
the person responsible for paying to e-commerce participant.
(a) “electronic commerce” means the supply of goods or services or both,
including digital products, over digital or electronic network;
(b) “e-commerce operator” means a person who owns, operates or manages
digital or electronic facility or platform for electronic commerce;
(c) “e-commerce participant” means a person resident in India selling goods or
providing services or both, including digital products, through digital or
electronic facility or platform for electronic commerce;
(d) “services” includes “fees for technical services” and fees for “professional
services”, as defined in the Explanation to Section 194-J.]
195. Other sums.— (1) Any person responsible for paying to a non-resident, not
being a company, or to a foreign company, 3044 [any interest (not being interest
referred to in Section 194-LB or Section 194-LC) 3045 [or Section 194-LD]] 3046 [* * *] or
any other sum chargeable under the provisions of this Act (not being income
chargeable under the head “Salaries” 3047 [* * *] shall, at the time of credit of such
income to the account of the payee or at the time of payment thereof in cash or by the
issue of a cheque or draft or by any other mode, whichever is earlier, deduct income
tax thereon at the rates in force:
Provided that in the case of interest payable by the Government or a public sector
bank within the meaning of clause (23-D) of Section 10 or a public financial institution
within the meaning of that clause, deduction of tax shall be made only at the time of
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-
payment thereof in cash or by the issue of a cheque or draft or by any other mode:
5199 [* * *]
3049
[Explanation-1].—For the purposes of this section, where any interest or other
sum as aforesaid is credited to any account, whether called “Interest payable account”
or “Suspense account” or by any other name, in the books of account of the person
liable to pay such income, such crediting shall be deemed to be credit of such income
to the account of the payee and the provisions of this section shall apply accordingly.
3050 [Explanation 2.—For the removal of doubts, it is hereby clarified that the
obligation to comply with sub-section (1) and to make deduction thereunder applies
and shall be deemed to have always applied and extends and shall be deemed to have
always extended to all persons, resident or non-resident, whether or not the non-
resident person has—
(i) a residence or place of business or business connection in India; or
(ii) any other presence in any manner whatsoever in India.]
(2) Where the person responsible for paying any such sum chargeable under this
Act, 3051 [(other than salary)] to a non-resident considers that the whole of such sum
would not be income chargeable in the case of the recipient, he may make an
application 3052 [in such form and manner to the Assessing Officer, to determine in such
manner, as may be prescribed], the appropriate proportion of such sum so chargeable,
and upon such determination, tax shall be deducted under sub-section (1) only on
that proportion of the sum which is so chargeable:
3053 [* * *]
(3) Subject to rules made under sub-section (5), any person entitled to receive any
interest or other sum on which income tax has to be deducted under sub-section (1)
may make an application in the prescribed form to the Assessing Officer for the grant
of a certificate authorising him to receive such interest or other sum without deduction
of tax under that sub-section, and where any such certificate is granted, every person
responsible for paying such interest or other sum to the person to whom such
certificate is granted shall, so long as the certificate is in force, make payment of such
interest or other sum without deducting tax thereon under sub-section (1).
(4) A certificate granted under sub-section (3) shall remain in force till the expiry of
the period specified therein or, if it is cancelled by the Assessing Officer before the
expiry of such period, till such cancellation.
(5) The Board may, having regard to the convenience of assessees and the interests
of revenue, by notification in the Official Gazette, make rules specifying the cases in
which, and the circumstances under which, an application may be made for the grant
of a certificate under sub-section (3) and the conditions subject to which such
certificate may be granted and providing for all other matters connected therewith.
3054
[(6) The person responsible for paying to a non-resident, not being a company,
or to a foreign company, any sum, whether or not chargeable under the provisions of
this Act, shall furnish the information relating to payment of such sum, in such form
and manner, as may be prescribed.]
3055 [(7) Notwithstanding anything contained in sub-section (1) and sub-section (2),
the Board may, by notification in the Official Gazette, specify a class of persons or
cases, where the person responsible for paying to a non-resident, not being a
company, or to a foreign company, any sum, whether or not chargeable under the
provisions of this Act, shall make an application 3056 [in such form and manner to the
Assessing Officer, to determine in such manner, as may be prescribed], the
appropriate proportion of sum chargeable, and upon such determination, tax shall be
deducted under sub-section (1) on that proportion of the sum which is so chargeable.]
195-A. Income payable “net of tax”.—3057 [In a case other than that referred to
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-
in sub-section (1-A) of Section 192, where under an agreement] or other
arrangement, the tax chargeable on any income referred to in the foregoing provisions
of this Chapter is to be borne by the person by whom the income is payable, then, for
the purposes of deduction of tax under those provisions such income shall be
increased to such amount as would, after deduction of tax thereon at the rates in force
for the financial year in which such income is payable, be equal to the net amount
payable under such agreement or arrangement.
196. Interest or dividend or other sums payable to Government, Reserve
Bank or certain corporations.— Notwithstanding anything contained in the
foregoing provisions of this Chapter, no deduction of tax shall be made by any person
from any sums payable to—
(i) the Government, or
(ii) the Reserve Bank of India, or
(iii) a corporation established by or under a Central Act which is, under any law
for the time being in force, exempt from income tax on its income, or
(iv) a Mutual Fund specified under clause (23-D) of Section 10,
where such sum is payable to it by way of interest or dividend in respect of any
securities or shares owned by it or in which it has full beneficial interest, or any other
income accruing or arising to it.
3058
[196-A. Income in respect of units of non-residents.— (1) Any person
responsible for paying to a non-resident, not being a company, or to a foreign
company, any income in respect of units of a Mutual Fund specified under clause (23-
D) of Section 10 or 5200 [from the specified company referred to in the Explanation to
clause (35) of Section 10] shall, at the time of credit of such income to the account of
the payee or at the time or payment thereof 5201 [by any mode], whichever is earlier,
deduct income tax thereon at the rate of twenty per cent:
5202 [* * *]
3060 [* * *]
(2) Notwithstanding anything contained in sub-section (1), no deduction of tax

shall be made from any income payable in respect of units of the Unit Trust of India to
a non-resident Indian or a non-resident Hindu undivided family, where the units have
been acquired from the Unit Trust of India out of the funds in a Non-resident
(External) Account maintained with any bank in India or by remittance of funds in
foreign currency, in accordance, in either case, with the provisions of the Foreign
Exchange Regulation Act, 1973 (46 of 1973), and the rules made thereunder.
Explanation.—For the purposes of this section—
(a) “foreign currency” shall have the meaning assigned to it in the Foreign
Exchange Regulation Act, 1973 (46 of 1973);
(b) “non-resident Indian” shall have the meaning assigned to it in clause (e) of
Section 115-C;
(c) “Unit Trust of India” means the Unit Trust of India established under the Unit
Trust of India Act, 1963 (52 of 1963);
(d) where any income as aforesaid is credited to any account whether called
“Suspense account” or by any other name, in the books of account of the
person liable to pay such income such crediting shall be deemed to be credit
of such income to the account of the payee and the provisions of this section
shall apply accordingly.]
3061
[196-B. Income from units.—3062 [Where any income in respect of units
referred to in Section 115-AB or by way of long-term capital gains arising from the
transfer of such units is payable to an Offshore Fund], the person responsible for
making the payment shall, at the time of credit of such income to the account of the
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payee or at the time of payment thereof in cash or by the issue of a cheque or draft or
by any other mode, whichever is earlier, deduct income tax thereon at the rate of ten
per cent.]
3063
[196-C. Income from foreign currency bonds or shares of Indian
company.—3064 [Where any income by way of interest or dividends in respect of bonds
or 3065 [Global Depository Receipts] referred to in Section 115-AC or by way of long-
term capital gains arising from the transfer of such bonds or 3066 [Global Depository
Receipts] is payable to a non-resident], the person responsible for making the
payment shall, at the time of credit of such income to the account of the payee or at
the time of payment thereof 5203 [by any mode], whichever is earlier, deduct income
tax thereon at the rate of ten per cent:]
5204 [* * *]
3068 [* * *]
3069 [196-D. Income of Foreign Institutional Investors from securities.— (1)
Where 3070 [any income in respect of securities referred to in clause (a) of sub-section
(1) of Section 115-AD, not being income by way of interest referred to in Section 194-
LD, is payable] to a Foreign Institutional Investor, the person responsible for making
the payment shall, at the time of credit of such income to the account of the payee or
at the time of payment thereof 5205 [by any mode], whichever is earlier, deduct income
tax thereon at the rate of twenty per cent:
5206 [* * *]
(2) No deduction of tax shall be made from any income, by way of capital gains
arising from the transfer of securities, referred to in Section 115-AD, payable to a
Foreign Institutional Investor.]
197. Certificate for deduction at lower rate.— (1) Subject to the rules made
under sub-section (2-A), 3072 [where, in the case of any income of any person 3073 [or
sum payable to any person], income tax is required to be deducted at the time of
credit or, as the case may be, at the time of payment at the rates in force under the
provisions of Sections 192, 193, 3074 [194], 194-A, 3075 [194-C] 194-D 3076 [194-G] 3077 [,
194-H], [194-I]30783079 [, 194-J] [, 194-K] 3080 [, 194-LA 3081 [, 194-LBB, 3082 [194-LBC,
5207 [194-M, 194-O]]]] 30833084 [* * *] and 195, the Assessing Officer is satisfied], that
the total income of the recipient justifies the deduction of income tax at any lower
rates or no deduction of income tax, as the case may be, the Assessing Officer shall,
on an application made by the assessee in this behalf, give to him such certificate as
may be appropriate.
(2) Where any such certificate is given, the person responsible for paying the
income shall, until such certificate is cancelled by the Assessing Officer, deduct income
tax at the rates specified in such certificate or deduct no tax, as the case may be.
(2-A) The Board may, having regard to the convenience of assessees and the
interests of revenue, by notification in the Official Gazette, make rules specifying the
cases in which, and the circumstances under which, an application may be made for
the grant of a certificate under sub-section (1) and the conditions subject to which
such certificate may be granted and providing for all other matters connected
therewith.
197-A. No deduction to be made in certain cases.— (1) Notwithstanding
anything contained in 3085 [* * *] Section 194 3086 [* * *],3087 [or Section 194-EE] no
deduction of tax shall be made under any of the said sections in the case of an
individual, who is resident in India, if such individual furnishes to the person
responsible for paying any income of the nature referred to in 3088 [* * *] Section 194
3089 [ 3090 [* * *], or as the case may be, Section 194-EE] a declaration in writing in
duplicate in the prescribed form and verified in the prescribed manner to the effect
that 3091 [the tax on his estimated total income of the previous year in which such
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income is to be included in computing his total income will be nil].
3092 [(1-A) Notwithstanding anything contained in 3093 [Section 192-A or Section 193
or Section 194-A 3094 [or Section 194-D] or Section 194-DA 3095 [or Section 194-I]] or
Section 194-K, no deduction of tax shall be made under [any]3096 of the said sections in
the case of a person (not being a company or a firm), if such person furnishes to the
person responsible for paying any income of the nature referred to in Section FN1125
[Section 192-A or Section 193 or Section 194-A FN1126[or Section 194-D] or FN1127[or
Section 194-I]] or Section 194-K, as the case may be, a declaration in writing in
that the tax on his estimated total income of the previous year in which such income is
to be included in computing his total income will be nil.]
3100 [(1-B) The provisions of this section shall not apply where the amount of any
income of the nature referred to in sub-section (1) or sub-section (1-A), as the case
may be, or the aggregate of the amounts of such incomes credited or paid or likely to
be credited or paid during the previous year in which such income is to be included
exceeds the maximum amount which is not chargeable to income tax.]
3101 [(1-C) Notwithstanding anything contained in 3102 [Section 192-A or Section 193
or Section 194 or Section 194-A 3103 [or Section 194-D] or Section 194-DA] or Section
194-EE 3104 [or Section 194-I] or Section 194-K or sub-section (1-B) of this section, no
deduction of tax shall be made in the case of an individual resident in India, who is of
the age of 3105 [sixty years] or more at any time during the previous year 3106 [* * *], if
such individual furnishes to the person responsible for paying any income of the
nature referred to in FN1128[Section 192-A or Section 193 or Section 194 or Section 194
-A FN1129[or Section 194-D] or Section 194-DA] or Section 194-EE FN1130[or Section 194-
I] or Section 194-K, as the case may be, a declaration in writing in duplicate in the
prescribed form and verified in the prescribed manner to the effect that the tax on his
estimated total income of the previous year in which such income is to be included in
computing his total income will be nil.]
3110 [(1-D) Notwithstanding anything contained in this section, no deduction of tax
shall be made by the Offshore Banking Unit from the interest paid—
(a) on deposit made on or after the 1st day of April, 2005, by a non-resident or a
person not ordinarily resident in India; or
(b) on borrowing, on or after the 1st day of April, 2005, from a non-resident or a
person not ordinarily resident in India.
Explanation.—For the purposes of this sub-section “Offshore Banking Unit” shall
have the same meaning as assigned to it in clause (u) of Section 2 of the Special
Economic Zones Act, 2005.]
3111 [(1-E) Notwithstanding anything contained in this chapter, no deduction of tax
shall be made from any payment to any person for, or on behalf of, the New Pension
System Trust referred to in clause (44) of Section 10.]
5208 [(1-F) Notwithstanding anything contained in this Chapter, no deduction of tax
shall be made, or deduction of tax shall be made at such lower rate, from such
payment to such person or class of persons, including institution, association or body
or class of institutions, associations or bodies, as may be notified by the Central
Government in the Official Gazette, in this behalf.]
(2) The person responsible for paying any income of the nature referred to in sub-
section (1) 3113 [or sub-section (1-A)] 3114 [or sub-section (1-C)] shall deliver or cause
to be delivered to the 3115 [Principal Chief Commissioner or Chief Commissioner] or 3116
[Principal Commissioner or Commissioner] one copy of the declaration referred to in
sub-section (1) 1311 [or sub-section (1-A)] 3118 [or sub-section (1-C)] on or before the
seventh day of the month next following the month in which the declaration is
furnished to him.
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198. Tax deducted is income received.— All sums deducted in accordance with
3119[the foregoing provisions of this chapter] shall for the purpose of computing the
income of an assessee, be deemed to be income received:
3120 [Provided that the sum being the tax paid, under sub-section (1-A) of Section
192 for the purpose of computing the income of an assessee, shall not be deemed to
be income received:]
3121
[Provided further that the sum deducted in accordance with the provisions of
Section 194-N for the purpose of computing the income of an assessee, 3122 [shall not
be deemed] to be income received.]
3123 [199. Credit for tax deducted.— (1) Any deduction made in accordance with
the foregoing provisions of this chapter and paid to the Central Government shall be
treated as a payment of tax on behalf of the person from whose income the deduction
was made, or of the owner of the security, or of the depositor or of the owner of
property or of the unit-holder, or of the shareholder, as the case may be.
(2) Any sum referred to in sub-section (1-A) of Section 192 and paid to the Central
Government shall be treated as the tax paid on behalf of the person in respect of
whose income such payment of tax has been made.
(3) The Board may, for the purposes of giving credit in respect of tax deducted or
tax paid in terms of the provisions of this chapter, make such rules as may be
necessary, including the rules for the purposes of giving credit to a person other than
those referred to in sub-section (1) and sub-section (2) and also the assessment year
for which such credit may be given.]
200. Duty of person deducting tax.—3124 [(1)] Any person deducting any sum in
accordance with 3125 [the foregoing provisions of this chapter] shall pay within the
prescribed time, the sum so deducted to the credit of the Central Government or as
the Board directs.
3126 [(2) Any person being an employer, referred to in sub-section (1-A) of Section
192 shall pay, within the prescribed time, the tax to the credit of the Central
Government or as the Board directs.]
3127
[(2-A) In case of an office of the Government, where the sum deducted in
accordance with the foregoing provisions of this Chapter or tax referred to in sub-
section (1-A) of Section 192 has been paid to the credit of the Central Government
without the production of a challan, the Pay and Accounts Officer or the Treasury
Officer or the Cheque Drawing and Disbursing Officer or any other person, by whatever
name called, who is responsible for crediting such sum or tax to the credit of the
Central Government, shall deliver or cause to be delivered to the prescribed income
tax authority, or to the person authorised by such authority, a statement in such form,
verified in such manner, setting forth such particulars and within such time as may be
prescribed.]
3128
[(3) Any person deducting any sum on or after the 1st day of April, 2005 in
accordance with the foregoing provisions of this chapter or, as the case may be, any
person being an employer referred to in sub-section (1-A) of Section 192 shall, after
paying the tax deducted to the credit of the Central Government within the prescribed
time, 3129 [prepare such statements for such period as may be prescribed] and deliver
or cause to be delivered to the prescribed income tax authority or the person
authorised by such authoriy such statement in such form and verified in such manner
and setting forth such particulars and within such time as may be prescribed.]
3130
[Provided that the person may also deliver to the prescribed authority a
correction statement for rectification of any mistake or to add, delete or update the
information furnished in the statement delivered under this sub-section in such
form and verified in such manner as may be specified by the authority.]
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3131
[200-A. Processing of statements of tax deducted at source.— (1) Where a
statement of tax deduction at source 3132 [or a correction statement] has been made by
a person deducting any sum (hereafter referred to in this section as deductor) under
Section 200, such statement shall be processed in the following manner, namely:—
(a) the sums deductible under this chapter shall be computed after making the
following adjustments, namely:—
(i) any arithmetical error in the statement; or
(ii) an incorrect claim, apparent from any information in the statement;
(b) the interest, if any, shall be computed on the basis of the sums deductible as
computed in the statement;
3133 [(c) the fee, if any, shall be computed in accordance with the provisions of
Section 234-E;
(d) the sum payable by, or the amount of refund due to, the deductor shall be
determined after adjustment of the amount computed under clause (b) and
clause (c) against any amount paid under Section 200 or Section 201 or
Section 234-E and any amount paid otherwise by way of tax or interest or fee;
(e) an intimation shall be prepared or generated and sent to the deductor
specifying the sum determined to be payable by, or the amount of refund due
to, him under clause (d); and
(f) the amount of refund due to the deductor in pursuance of the determination
under clause (d) shall be granted to the deductor.]
Explanation.—For the purposes of this sub-section, “an incorrect claim apparent
from any information in the statement” shall mean a claim, on the basis of an entry, in
the statement—
(i) of an item, which is inconsistent with another entry of the same or some other
item in such statement;
(ii) in respect of rate of deduction of tax at source, where such rate is not in
accordance with the provisions of this Act;
(2) For the purposes of processing of statements under sub-section (1), the Board
may make a scheme for centralised processing of statements of tax deducted at
source to expeditiously determine the tax payable by, or the refund due to, the
deductor as required under the said sub-section.
201. Consequences of failure to deduct or pay.—3134 [(1) Where any person,
including the principal officer of a company,—
(a) who is required to deduct any sum in accordance with the provisions of this Act;
or
(b) referred to in sub-section (1-A) of Section 192, being an employer,
does not deduct, or does not pay, or after so deducting fails to pay, the whole or any
part of the tax, as required by or under this Act, then, such person, shall, without
prejudice to any other consequences which he may incur, be deemed to be an
assessee in default in respect of such tax:
3135
[Provided that any person, including the principal officer of a company, who
fails to deduct the whole or any part of the tax in accordance with the provisions of
this chapter on the sum paid to a 3136 [payee] or on the sum credited to the account
of a FN1131[payee] shall not be deemed to be an assessee in default in respect of
such tax if such FN1132[payee]—
(i) has furnished his return of income under Section 139;
(ii) has taken into account such sum for computing income in such return of
income; and
(iii) has paid the tax due on the income declared by him in such return of
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income, and the person furnishes a certificate to this effect from an
accountant in such form as may be prescribed:]
3139 [Provided further that] no penalty shall be charged under Section 221 from
such person, unless the Assessing Officer is satisfied that such person, without
good and sufficient reasons, has failed to deduct and pay such tax.]
3140
[(1-A) Without prejudice to the provisions of sub-section (1), if any such person,
principal officer or company as is referred to in that sub-section does not deduct the
whole or any part of the tax or after deducting fails to pay the tax as required by or
under this Act, he or it shall be liable to pay simple interest,—
(i) at one per cent for every month or part of a month on the amount of such tax
from the date on which such tax was deductible to the date on which such tax is
deducted; and
(ii) at one and one-half per cent for every month or part of a month on the amount
of such tax from the date on which such tax was deducted to the date on which
such tax is actually paid, and such interest shall be paid before furnishing the
statement in accordance with the provisions of sub-section (3) of Section 200:]
3141 [Provided that in case any person, including the principal officer of a company
fails to deduct the whole or any part of the tax in accordance with the provisions of
this chapter on the sum paid to a 3142 [payee] or on the sum credited to the account
of a FN1133[payee] but is not deemed to be an assessee in default under the first
proviso of sub-section (1), the interest under clause (i) shall be payable from the
date on which such tax was deductible to the date of furnishing of return of income
by such FN1134[payee].]
(2) Where the tax has not been paid as aforesaid after it is deducted, the amount of
the tax together with the amount of simple interest thereon referred to in sub-section
(1-A) shall be a charge upon all the assets of the person, or the company, as the case
may be, referred to in sub-section (1).
3145 [(3) No order shall be made under sub-section (1) deeming a person to be an
assessee in default for failure to deduct the whole or any part of the tax from a person
resident in India, at any time after the expiry of seven years from the end of the
financial year in which payment is made or credit is given 3146 [or two years from the
end of the financial year in which the correction statement is delivered under the
proviso to sub-section (3) of Section 200, whichever is later].]
(4) The provisions of sub-clause (ii) of sub-section (3) of Section 153 and of
Explanation 1 to Section 153 shall, so far as may, apply to the time limit prescribed in
sub-section (3).]
3147 [Explanation.—For the purposes of this section, the expression “accountant”
shall have the meaning assigned to it in the Explanations to sub-section (2) of Section
288.]
202. Deduction only one mode of recovery.— The power to recover tax by
deduction under 3148 [the foregoing provisions of this chapter] shall be without
prejudice to any other mode of recovery.
203. Certificate for tax.—3149 [(1)] Every person deducting tax in accordance with
3150
[the foregoing provisions of this chapter] shall, within such period as may be
prescribed from the time of credit or payment of the sum, or, as the case may be,
from the time of issue of a cheque or warrant for payment of any dividend to a
shareholder, furnish to the person to whose account such credit is given or to whom
such payment is made or the cheque or warrant is issued, a certificate to the effect
that tax has been deducted, and specifying the amount so deducted, the rate at which
the tax has been deducted, and such other particulars as may be prescribed.
3151 [(2) Every person, being an employer, referred to in sub-section (1-A) of Section
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-
192 shall, within such period, as may be prescribed, furnish to the person in respect of
whose income such payment of tax has been made, a certificate to the effect that tax
has been paid to the Central Government, and specify the amount so paid, the rate at
which the tax has been paid and such other particulars as may be prescribed.]
3152 [(3) 3153 [* * *]]
3154
[203-A. Tax deduction and collection account number.— (1) Every person,
deducting tax or collecting tax in accordance with the provisions of this chapter, who
has not been allotted a tax deduction account number or, as the case may be, a tax
collection account number, shall, within such time as may be prescribed, apply to the
Assessing Officer for the allotment of a “tax deduction and collection account number”.
(2) Where a “tax deduction account number” or, as the case may be, a “tax
collection account number” or a “tax deduction and collection account number” has
been allotted to a person, such person shall quote such number—
(a) in all challans for the payment of any sum in accordance with the provisions
of Section 200 or sub-section (3) of Section 206-C;
(b) in all certificates furnished under Section 203 or sub-section (5) of Section
206-C;
3155
[(ba) in all the 3156 [* * *] statements prepared and delivered or caused to be
delivered in accordance with the provisions of sub-section (3) of Section 200
or sub-section (3) of Section 206-C;]
(c) in all the returns, delivered in accordance with the provisions of Section 206
or sub-section (5-A) or sub-section (5-B) of Section 206-C to any income tax
authority; and
(d) in all other documents pertaining to such transactions as may be prescribed
in the interests of revenue.]
3157
[(3) The provisions of this section shall not apply to such person, as may be
notified by the Central Government in this behalf.]
203-AA. Furnishing of statement of tax deducted.—5209 [* * *]
204. Meaning of “person responsible for paying”.— For the purposes of 3160 [the
foregoing provisions of this chapter] and Section 285, the expression “person
responsible for paying” means—
(i) in the case of payments of income chargeable under the head “Salaries” other
than payments by the Central Government or the Government of a State, the
employer himself or, if the employer is a company, the company itself, including
the principal officer thereof;
(ii) in the case of payments of income chargeable under the head “Interest on
securities” other than payments made by or on behalf of the Central Government
or the Government of a State, the local authority, corporation or company,
including the principal officer thereof;
(ii-a) in the case of any sum payable to a non-resident Indian, being any sum
representing consideration for the transfer by him of any foreign exchange asset,
which is not a short-term capital asset, the 3161 [authorised person] responsible
for remitting such sum to the non-resident Indian or for crediting such sum of
his Non-resident (External) Account maintained in accordance with 3162 [the
Foreign Exchange Management Act, 1999 (42 of 1999)], and any rules made
thereunder;
3163
[(ii-b) in the case of furnishing of information relating to payment to a
nonresident, not being a company, or to a foreign company, of any sum, whether
or not chargeable under the provisions of this Act, the payer himself, or, if the
payer is a company, the company itself including the principal officer thereof;]
(iii) in the case of credit or, as the case may be, payment of any other sum
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chargeable under the provisions of this Act, the payer himself, or, if the payer is
a company, the company itself including the principal officer thereof.
3164
[(iv) in the case of credit, or as the case may be, payment of any sum
chargeable under the provisions of this Act made by or on behalf of the Central
Government or the Government of a State, the drawing and disbursing officer or
any other person, by whatever name called, responsible for crediting, or as the
case may be, paying such sum.]
5210
[(v) in the case of a person not resident in India, the person himself or any
person authorised by such person or the agent of such person in India including
any person treated as an agent under Section 163.]
(a) “non-resident Indian” and “foreign exchange asset” shall have the meanings
assigned to them in Chapter XII-A;
3165
[(b) “authorised person” shall have the meaning assigned to it in clause (c) of
Section 2 of FN1135[the Foreign Exchange Management Act, 1999 (42 of 1999)].]
205. Bar against direct demand on assessee.— Where tax is deductible at the
source under 3167 [the foregoing provisions of this chapter] the assessee shall not be
called upon to pay the tax himself to the extent to which tax has been deducted from
that income.
206. Persons deducting tax to furnish prescribed returns.—3168 [1] The
prescribed person in the case of every office of Government, the principal officer in the
case of every company, the prescribed person in the case of every local authority or
other public body or association, every private employer and every other person 3169
[responsible for deducting tax before the 1st day of April, 2005] under the foregoing
provisions of this Chapter [shall within the prescribed time after the end of each
financial year prepare and deliver or cause to be delivered] to the prescribed Income
Tax authority 3170 [or such other authority or agency as may be prescribed], such
returns in such form and verified in such manner and setting forth such particulars as
may be prescribed:
3171
[Provided that the Board may, if it considers necessary or expedient so to do,
frame a scheme for the purposes of filing such returns with such other authority or
agency referred to in this sub-section.]
3172 [(2)
Without prejudice to the provisions of sub-section (1), the person
responsible for deducting tax under the foregoing provisions of this Chapter other than
the 3173 [prescribed person in the case of every office of the Government and the]
principal officer in the case of every company may, at his option, deliver or cause to be
delivered such return to the prescribed income tax authority in accordance with such
scheme as may be specified by the Board in this behalf, by notification in the Official
Gazette, and subject to such conditions as may be specified therein, on or before the
prescribed time after the end of each financial year, on a floppy, diskette, magnetic
cartridge tape, CD-ROM or any other computer readable media (hereinafter referred to
as the computer media) and in the manner as may be specified in that scheme:
3174
[Provided that the prescribed person in the case of every office of Government
and the principal officer in the case of every company responsible for deducting tax
under the foregoing provisions of this chapter shall, deliver or cause to be delivered,
within the prescribed time after the end of each financial year, such returns on
computer media under the said scheme.]
(3) Notwithstanding anything contained in any other law for the time being in force,
a return filed on computer media shall be deemed to be a return for the purposes of
this section and the rules made thereunder and shall be admissible in any proceedings
thereunder, without further proof of production of the original, as evidence of any
contents of the original or of any fact stated therein.
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(4) Where the Assessing Officer considers that the return delivered or caused to be
delivered under sub-section (2) is defective, he may intimate the defect to the person
responsible for deducting tax or the principal officer in the case of a company, as the
case may be, and give him an opportunity of rectifying the defect within a period of
fifteen days from the date of such intimation or within such further period which, on
an application made in this behalf, the Assessing Officer may, in his discretion, allow;
and if the defect is not rectified within the said period of fifteen days or, as the case
may be, the further period so allowed, then, notwithstanding anything contained in
any other provision of this Act, such return shall be treated as an invalid return and
the provisions of this Act shall apply as if such person had failed to deliver the return.]
3175 [206-A. Furnishing of statement in respect of payment of any income to
residents without deduction of tax.— (1) Any banking company or co-operative

society or public company referred to in the proviso to clause (i) of sub-section (3) of
Section 194-A responsible for paying to a resident any income not exceeding forty
thousand rupees, where the payer is a banking company or a co-operative society, and
five thousand rupees in any other case by way of interest (other than interest on
securities), shall prepare such statement in such form, containing such particulars, for
such period, verified in such manner and within such time, as may be prescribed, and
deliver or cause to be delivered the said statement to the prescribed income-tax
authority or to the person authorised by such authority.
(2) The Board may require any person, other than a person mentioned in subsection
(1), responsible for paying to a resident any income liable for deduction of tax at
source under Chapter XVII, to prepare such statement in such form, containing such
particulars, for such period, verified in such manner and within such time, as may be
prescribed, and deliver or cause to be delivered the said statement to the income-tax
authority or the authorised person referred to in sub-section (1).
(3) The person responsible for paying to a resident any income referred to in sub-
section (1) or sub-section (2) may also deliver to the income-tax authority referred to
in sub-section (1), a correction statement for rectification of any mistake or to add,
delete or update the information furnished in the statement delivered under the said
sub-sections in such form and verified in such manner, as may be prescribed.]
3176 [206-AA. Requirement to furnish Permanent Account Number.— (1)
Notwith-standing anything contained in any other provisions of this Act, any person
entitled to receive any sum or income or amount, on which tax is deductible under
Chapter XVII-B (hereafter referred to as deductee) shall furnish his Permanent
Account Number to the person responsible for deducting such tax (hereafter referred
to as deductor), failing which tax shall be deducted at the higher of the following
rates, namely:—
(i) at the rate specified in the relevant provision of this Act; or
(ii) at the rate or rates in force; or
(iii) at the rate of twenty per cent:
5211
[Provided that where the tax is required to be deducted under Section 194-O,
the provisions of clause (iii) shall apply as if for the words “twenty per cent”, the
words “five per cent” had been substituted.]
(2) No declaration under sub-section (1) or sub-section (1-A) or sub-section (1-C)
of Section 197-A shall be valid unless the person furnishes his Permanent Account
Number in such declaration.
(3) In case any declaration becomes invalid under sub-section (2), the deductor
shall deduct the tax at source in accordance with the provisions of sub-section (1).
(4) No certificate under Section 197 shall be granted unless the application made
under that section contains the Permanent Account Number of the applicant.
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-
(5) The deductee shall furnish his Permanent Account Number to the deductor and
both shall indicate the same in all the correspondence, bills, vouchers and other
documents which are sent to each other.
(6) Where the Permanent Account Number provided to the deductor is invalid or
does not belong to the deductee, it shall be deemed that the deductee has not
furnished his Permanent Account Number to the deductor and the provisions of sub-
section (1) shall apply accordingly.
3177 [(7) The provisions of this section shall not apply to a non-resident, not being a
company, or to a foreign company, in respect of—

(i) payment of interest on long-term bonds as referred to in Section 194-LC; and
(ii) any other payment subject to such conditions as may be prescribed.]
206-B. Person paying dividend to certain residents without deduction of tax
to furnish prescribed return.—3178 [* * *]
3179 [206-C. Profits and gains from the business of trading in alcoholic liquor,
forest produce, scrap, etc.— (1) Every person, being a seller shall, at the time of
debiting of the amount payable by the buyer to the account of the buyer or at the time
of receipt of such amount from the said buyer in cash or by the issue of a cheque or
draft or by any other mode, whichever is earlier, collect from the buyer of any goods,
of the nature specified in column (2) of the Table below, a sum equal, to the
percentage specified in the corresponding entry in column (3) of the said Table, of
such amount as income tax:
3180 [TABLE
Sl. No. Nature of Goods Percentage

(1) (2) (3)
(i) Alcoholic liquor for human consumption One per cent
(ii) Tendu leaves Five per cent
(iii) Timber obtained under a forest lease Two and one-half per
cent
(iv) Timber obtained by any mode other than under a Two and one-half per
forest lease cent
(v) Any other forest produce not being timber or tendu Two and one-half per
leaves cent
(vi)
3181 Scrap One per cent:]
[(vii) Minerals, being coal or lignite or iron ore One per cent.]
3182 [Provided that every person, being a seller shall at the time, during the period
beginning on the 1st day of June, 2003 and ending on the day immediately preceding
the date on which the Taxation Laws (Amendment) Act, 2003 comes into force, of
debiting of the amount payable by the buyer to the account of the buyer or of receipt
of such amount from the said buyer in cash or by the issue of a cheque or draft or by
any other mode, whichever is earlier, collect from the buyer of any goods of the nature
specified in the column (2) of the Table as it stood immediately before the 1st day of
June, 2003, a sum equal to the percentage, specified in the corresponding entry in
column (3) of the said Table, of such amount as income-tax in accordance with the
provisions of this section as they stood immediately before the 1st day of June, 2003.]
3183 [(1-A) Notwithstanding anything contained in sub-section (1), no collection of
tax shall be made in the case of a buyer, who is resident in India, if such buyer
furnishes to the person responsible for collecting tax, a declaration in writing in
that the goods referred to in column (2) of the aforesaid Table are to be utilised for the
purposes of manufacturing, processing or producing articles or things 3184 [or for the
purposes of generation of power] and not for trading purposes.
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-
(1-B) The person responsible for collecting tax under this section shall deliver or
cause to be delivered to the 3185 [Principal Chief Commissioner or Chief Commissioner]
or 3186 [Principal Commissioner or Commissioner] one copy of the declaration referred
to in sub-section (1-A) on or before the seventh day of the month next following the
month in which the declaration is furnished to him.]
3187 [(1-C) Every person, who grants a lease or a licence or enters into a contract or
otherwise transfers any right or interest either in whole or in part in any parking lot or
toll plaza or mine or quarry, to another person, other than a public sector company
(hereafter in this section referred to as “licensee or lessee”) for the use of such parking
lot or toll plaza or mine or quarry for the purpose of business shall, at the time of
debiting of the amount payable by the licensee or lessee to the account of the licensee
or lessee or at the time of receipt of such amount from the licensee or lessee in cash or
by the issue of a cheque or draft or by any other mode, whichever is earlier, collect
from the licensee or lessee of any such licence, contract or lease to the nature
specified in column (2) of the Table below, a sum equal to the percentage, specified in
the corresponding entry in column (3) of the said Table, of such amount as income
tax:
TABLE
Sl. No. Nature of contract or licence or lease, etc. Percentage
(1) (2) (3)
(i) Parking lot Two per cent
(ii) Toll plaza Two per cent
(iii) Mining and quarrying Two per cent]
3188
[Explanation 1.—For the purposes of this sub-section, “mining and quarrying”
shall not include mining and quarrying of mineral oil.
Explanation 2.—For the purposes of Explanation 1, “mineral oil” includes petroleum
and natural gas.]
(1-D) 3189 [* * *]
(1-E) 3190 [* * *]
(1-F) Every person, being a seller, who receives any amount as consideration for
sale of a motor vehicle of the value exceeding ten lakh rupees, shall, at the time of
receipt of such amount, collect from the buyer, a sum equal to one per cent of the sale
consideration as income-tax.]
5212 [(1-G) Every person,—
(a) being an authorised dealer, who receives an amount, for remittance out of
India from a buyer, being a person remitting such amount out of India under
the Liberalised Remittance Scheme of the Reserve Bank of India;
(b) being a seller of an overseas tour programme package, who receives any
amount from a buyer, being the person who purchases such package,
shall, at the time of debiting the amount payable by the buyer or at the time of receipt
of such amount from the said buyer, by any mode, whichever is earlier, collect from
the buyer, a sum equal to five per cent. of such amount as income-tax:
Provided that the authorised dealer shall not collect the sum, if the amount or
aggregate of the amounts being remitted by a buyer is less than seven lakh rupees in
a financial year and is for a purpose other than purchase of overseas tour programme
package:
Provided further that the sum to be collected by an authorised dealer from the
buyer shall be equal to five per cent. of the amount or aggregate of the amounts in
excess of seven lakh rupees remitted by the buyer in a financial year, where the
amount being remitted is for a purpose other than purchase of overseas tour
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-
programme package:
Provided also that the authorised dealer shall collect a sum equal to one half per
cent. of the amount or aggregate of the amounts in excess of seven lakh rupees
remitted by the buyer in a financial year, if the amount being remitted out is a loan
obtained from any financial institution as defined in section 80E, for the purpose of
pursuing any education:
Provided also that the authorised dealer shall not collect the sum on an amount in
respect of which the sum has been collected by the seller:
Provided also that the provisions of this sub-section shall not apply, if the buyer is,
—
(i) liable to deduct tax at source under any other provision of this Act and has
deducted such amount;
(ii) the Central Government, a State Government, an embassy, a High
Commission, a legation, a commission, a consulate, the trade representation
of a foreign State, a local authority as defined in the Explanation to clause
(20) of Section 10 or any other person as the Central Government may, by
notification in the Official Gazette, specify for this purpose, subject to such
conditions as may be specified therein.
Explanation.—For the purposes of this sub-section,—
(i) “authorised dealer” means a person authorised by the Reserve Bank of India
under sub-section (1) of Section 10 of the Foreign Exchange Management Act,
1999 (42 of 1999) to deal in foreign exchange or foreign security;
(ii) “overseas tour program package” means any tour package which offers visit
to a country or countries or territory or territories outside India and includes
expenses for travel or hotel stay or boarding or lodging or any other
expenditure of similar nature or in relation thereto.
(1-H) Every person, being a seller, who receives any amount as consideration for
sale of any goods of the value or aggregate of such value exceeding fifty lakh rupees in
any previous year, other than the goods being exported out of India or goods covered
in sub-section (1) or sub-section (1-F) or sub-section (1-G) shall, at the time of
receipt of such amount, collect from the buyer, a sum equal to 0.1 per cent of the sale
consideration exceeding fifty lakh rupees as income-tax:
Provided that if the buyer has not provided the Permanent Account Number or the
Aadhaar number to the seller, then the provisions of clause (ii) of sub-section (1) of
Section 206-CC shall be read as if for the words “five per cent”, the words “one per
cent.” had been substituted:
Provided further that the provisions of this sub-section shall not apply, if the buyer
is liable to deduct tax at source under any other provision of this Act on the goods
purchased by him from the seller and has deducted such amount.
(a) “buyer” means a person who purchases any goods, but does not include,—
(A) the Central Government, a State Government, an embassy, a High
Commission, legation, commission, consulate and the trade representation
of a foreign State; or
(B) a local authority as defined in the Explanation to clause (20) of Section
10; or
(C) a person importing goods into India or any other person as the Central
Government may, by notification in the Official Gazette, specify for this
purpose, subject to such conditions as may be specified therein;
(b) “seller” means a person whose total sales, gross receipts or turnover from the
business carried on by him exceed ten crore rupees during the financial year
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-
immediately preceding the financial year in which the sale of goods is carried
out, not being a person as the Central Government may, by notification in the
Official Gazette, specify for this purpose, subject to such conditions as may be
specified therein.’;
(1-I) If any difficulty arises in giving effect to the provisions of sub-section (1-G) or
sub-section (1-H), the Board may, with the approval of the Central Government, issue
guidelines for the purpose of removing the difficulty.
(1-J) Every guideline issued by the Board under sub-section (1-I) shall be laid
before each House of Parliament, and shall be binding on the Income-tax authorities
and on the person liable to collect the sum.]
(2) The power to recover tax by collection under 5213 [this section] 3192 [* * *] shall
be without prejudice to any other mode of recovery.
(3) Any person collecting any amount under 5214 [this section] FN1136[* * *] shall pay
within 3195 [the prescribed time] the amount so collected to the credit of the Central
Government or as the Board directs:
3196 [Provided that the person collecting tax on or after the 1st day of April, 2005 in
accordance with the foregoing provisions of this section shall, after paying the tax
collected to the credit of the Central Government within the prescribed time, 3197
[prepare such statements for such period as may be prescribed] and deliver or cause
to be delivered to the prescribed income tax authority, or the person authorised by
such authority, such statement in such form and verified in such manner and setting
forth such particulars and within such time as may be prescribed.]
3198
[(3-A) In case of an office of the Government, where the amount collected under
sub-section (1) or sub-section (1-C) FN1137[* * *] has been paid to the credit of the
Central Government without the production of a challan, the Pay and Accounts Officer
or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other
person, by whatever name called, who is responsible for crediting such tax to the
credit of the Central Government, shall deliver or cause to be delivered to the
prescribed income tax authority, or to the person authorised by such authority, a
statement in such form, verified in such manner, setting forth such particulars and
within such time as may be prescribed.
(3-B) The person referred to in the proviso to sub-section (3) may also deliver to
the prescribed authority under the said proviso, a correction statement for rectification
of any mistake or to add, delete or update the information furnished in the statement
delivered under the said proviso in such form and verified in such manner, as may be
specified by the authority.]
3200 [(4) Any amount collected in accordance with the provisions of this section and
paid to the credit of the Central Government shall be deemed to be a payment of tax
on behalf of the person from whom the amount has been collected and credit shall be
given to such person for the amount so collected in a particular assessment year in
accordance with the rules as may be prescribed by the Board from time to time.]
(5) Every person collecting tax in accordance with the provisions of this section
shall within 3201 [such period as may be prescribed from the time] of debit or receipt of
the amount furnish to the buyer 3202 [or licensee or lessee] to whose account such
amount is debited or from whom such payment is received, a certificate to the effect
that tax has been collected, and specifying the sum so collected, the rate at which the
tax has been collected and such other particulars as may be prescribed:
3203 [* * *]
Provided FN1138[* * *] that the prescribed income tax authority or the person
authorised by such authority referred to in sub-section (3) shall, within the prescribed
time 3205 [after the end of each financial year beginning on or after the 1st day of April,
2008], prepare and deliver to the buyer referred to in sub-section (1) or, as the case
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-
may be, to the licensee or lessee referred to in sub-section (1-C), a statement in the
prescribed form specifying the amount of tax collected and such other particulars as
may be prescribed.]
(5-A) Every person 3206 [collecting tax before the 1st day of April, 2005] in
accordance with the provisions of this section shall prepare 3207 [within the prescribed
time after the end of each] financial year, and deliver or cause to be delivered to the
prescribed income tax authority 3208 [or such other authority or agency as may be
prescribed] such returns in such form and verified in such manner and setting forth
such particulars and within such time as may be prescribed:
3209 [Provided that the Board may, if it considers necessary or expedient so to do,
frame a scheme for the purposes of filing such returns with such other authority or
agency referred to in this sub-section.]
3210 [(5-B) Without prejudice to the provisions of sub-section (5-A), any person
collecting tax, other than in a case where the seller is a company, the Central
Government or a State Government, may at his option, deliver or cause to be delivered
such return to the prescribed income tax authority in accordance with such scheme as
may be specified by the Board in this behalf, by notification in the Official Gazette, and
subject to such conditions as may be specified therein, on or before the prescribed
time after the end of each financial year, on a floppy, diskette, magnetic cartridge
tape, CD-ROM or any other computer readable media (hereinafter referred to as the
computer media) and in the manner as may be specified in that scheme:
Provided that where the person collecting tax is a company or the Central
Government or a State Government, such person shall, in accordance with the
provisions of this section, deliver or cause to be delivered, within the prescribed time
after the end of each financial year, such returns on computer media under the said
scheme.
(5-C) Notwithstanding anything contained in any other law for the time being in
force, a return filed on computer media shall be deemed to be a return for the
purposes of sub-section (5-A) and the rules made thereunder and shall be admissible
in any proceedings made thereunder, without further proof of production of the
original, as evidence of any contents of the original or of any facts stated therein.
(5-D) Where the Assessing Officer considers that the return delivered or caused to
be delivered under sub-section (5-B) is defective, he may intimate the defect to the
person collecting tax and give him an opportunity of rectifying the defect within a
period of fifteen days from the date of such intimation or within such further period
which, on an application made in this behalf, the Assessing Officer may, in his
discretion, allow; and if the defect is not rectified within the said period of fifteen days
or, as the case may be, the further period so allowed, then, notwithstanding anything
contained in any other provision of this Act, such return shall be treated as an invalid
return and the provisions of this Act shall apply as if such person had failed to deliver
the return.]
(6) Any person responsible for collecting the tax who fails to collect the tax in
accordance with the provisions of this section, shall, notwithstanding such failure, be
liable to pay the tax to the credit of the Central Government in accordance with the
provisions of sub-section (3).
3211 [(6-A) If any person responsible for collecting tax 5215 [in accordance with the
provisions of sub-section (1) and sub-section (1-C)] does not collect the whole or any
part of the tax or after collecting, fails to pay the tax as required by or under this Act,
he shall, without prejudice to any other consequences which he may incur, be deemed
to be an assessee in default in respect of the tax:
3212
[Provided that any person3213 [* * *], responsible for collecting tax in accordance
with the provisions of this section, who fails to collect the whole or any part of the tax
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-
on the amount received from a buyer or licensee or lessee or on the amount debited to
the account of the buyer or licensee or lessee shall not be deemed to be an assessee in
default in respect of such tax if such buyer or licensee or lessee—
(i) has furnished his return of income under Section 139;
(ii) has taken into account such amount for computing income in such return of
income; and
(iii) has paid the tax due on the income declared by him in such return of
income,
and the person furnishes a certificate to this effect from an accountant in such form as
may be prescribed:]
3214 [Provided further that] no penalty shall be charged under Section 221 from such
person unless the Assessing Officer is satisfied that the person has without good and
sufficient reasons failed to collect and pay the tax.]
(7) Without prejudice to the provisions of sub-section (6), if the 3215 [person
responsible for collecting tax] does not collect the tax or after collecting the tax fails to
pay it as required under this section, he shall be liable to pay simple interest at the
rate of 3216 [one per cent] per month or part thereof on the amount of such tax from the
date on which such tax was collectable to the date on which the tax was actually paid
3217
[and such interest shall be paid before furnishing the quarterly statement for each
quarter in accordance with the provisions of sub-section (3)]:
3218 [Provided that in case any person3219 [* * *], responsible for collecting tax in
accordance with the provisions of this section, fails to collect the whole or any part of
the tax on the amount received from a buyer or licensee or lessee or on the amount
debited to the account of the buyer or licensee or lessee but is not deemed to be an
assessee in default under the first proviso of sub-section (6-A), the interest shall be
payable from the date on which such tax was collectible to the date of furnishing of
return of income by such buyer or licensee or lessee.]
(8) Where the tax has not been paid as aforesaid, after it is collected, the amount of
the tax together with the amount of simple interest thereon referred to in sub-section
(7) shall be a charge upon all the assets of the 3220 [person responsible for collecting
tax].]
3221
[(9) Where the Assessing Officer is satisfied that the total income of the buyer
3222
[or licensee or lessee] justifies the collection of the tax at any lower rate than the
relevant rate specified in sub-section (1) 3223 [or sub-section (1-C) FN1139[* * *]], the
Assessing Officer shall, on an application made by the buyer in this behalf, give to him
a certificate for collection of tax at such lower rate than the relevant rate specified in
sub-section (1) 3225 [or sub-section (1-C) 3226 [or sub-section (1-D)]].
(10) Where a certificate under sub-section (9) is given, the person responsible for
collecting the tax shall, until such certificate is cancelled by the Assessing Officer,
collect the tax at the rates specified in such certificate.
(11) The Board may, having regard to the convenience of assessees and the
interests of revenue, by notification in the Official Gazette, make rules specifying the
cases in which, and the circumstances under which, an application may be made for
the grant of a certificate under sub-section (9) and the conditions subject to which
such certificate may be granted and providing for all other matters connected
therewith.]
3227
[Explanation.—For the purposes of this section,—
3228 [(a) “accountant” shall have the meaning assigned to it in the Explanation to
sub-section (2) of Section 288;

(aa) “buyer” with respect to—
(i) sub-section (1) means a person who obtains in any sale, by way of auction,
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-
tender or any other mode, goods of the nature specified in the Table in sub-
section (1) or the right to receive any such goods but does not include,—
(A) a public sector company, the Central Government, a State Government,
and an embassy, a High Commission, legation, commission, consulate
and the trade representation, of a foreign State and a club; or
(B) a buyer in the retail sale of such goods purchased by him for personal
consumption;
3229
[* * *]
3230 [(iii) sub-section (1F) means a person who obtains in any sale, goods
of the nature specified in the said sub-section, but does not include,—
(A) the Central Government, a State Government and an embassy, a High
Commission, legation, commission, consulate and the trade
representation of a foreign State; or
(B) a local authority as defined in Explanation to clause (20) of Section 10;
or
(C) a public sector company which is engaged in the business of carrying
passengers.]
3231 [* * *]
3232
[(b)“scrap” means waste and scrap from the manufacture or mechanical
working of materials which is definitely not usable as such because of
breakage, cutting up, wear and other reasons;
(c)“seller” 5216 [with respect to sub-section (1) and sub-section (1-F) means] the
Central Government, a State Government or any local authority or corporation
or authority established by or under a Central, State or Provincial Act, or any
company or firm or cooperative society and also includes an individual or a
Hindu undivided family whose total sales, gross receipts or turnover from the
business or profession carried on by him exceed 5217 [one crore rupees in case
of business or fifty lakh rupees in case of profession] during the financial year
immediately preceding the financial year in which the goods of the nature
specified in the Table in sub-section (1) 3233 [are sold].]
3234 [206-CA. Tax-collection account number.— (1) Every person collecting tax in
accordance with the provisions of Section 206-C, shall, within such time as may be
prescribed, apply to the Assessing Officer for the allotment of a tax-collection account
number.
(2) Where a tax-collection account number has been allotted to a person, such
person shall quote such number—
(a) in all challans for the payment of any sum in accordance with the provisions
of sub-section (3) of Section 206-C;
(b) in all certificates furnished under sub-section (5) of Section 206-C;
(c) in all the returns delivered in accordance with the provisions of sub-section (5
-A) or sub-section (5-B) of Section 206-C to any income tax authority; and
(d) in all other documents pertaining to such transactions as may be prescribed
in the interest of revenue:]
3235 [Provided that the provisions of this section shall not apply on or after the
1st day of October, 2004.]

3236
[206-CB. Processing of statements of tax collected at source.— (1) Where
a statement of tax collection at source or a correction statement has been made by a
person collecting any sum (herein referred to as collector) under Section 206-C, such
statement shall be processed in the following manner, namely—
(a) the sums collectible under this Chapter shall be computed after making the
following adjustments, namely—
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-
(i) any arithmetical error in the statement;

(ii) an incorrect claim, apparent from any information in the statement;
(b) the interest, if any, shall be computed on the basis of the sums collectible as
computed in the statement;
(c) the fee, if any, shall be computed in accordance with the provisions of
Section 234-E;
(d) the sum payable by, or the amount of refund due to, the collector, shall be
determined after adjustment of the amount computed under clause (b) and
clause (c) against any amount paid under Section 206-C or Section 234-E and
any amount paid otherwise by way of tax or interest or fee;
(e) an intimation shall be prepared or generated and sent to the collector
specifying the sum determined to be payable by, or the amount of refund due
to, him under clause (d); and
(f) the amount of refund due to the collector in pursuance of the determination
under clause (d) shall be granted to the collector:
Provided that no intimation under this sub-section shall be sent after the
expiry of the period of one year from the end of the financial year in which the
statement is filed.
Explanation.— For the purposes of this sub-section, “an incorrect claim
apparent from any information in the statement” shall mean a claim, on the
basis of an entry, in the statement—
(i) of an item, which is inconsistent with another entry of the same or some
other item in such statement;
(ii) in respect of rate of collection of tax at source, where such rate is not in
accordance with the provisions of this Act.
(2) The Board may make a scheme for centralised processing of statements of tax
collected at source to expeditiously determine the tax payable by, or the refund due
to, the collector, as required under sub-section (1).]
3237 [206-CC.
Requirement to furnish Permanent Account Number by
collectee.— (1) Notwithstanding anything contained in any other provisions of this
Act, any person paying any sum or amount, on which tax is collectible at source under
Chapter XVII-BB (herein referred to as collectee) shall furnish his Permanent Account
Number to the person responsible for collecting such tax (herein referred to as
collector), failing which tax shall be collected at the higher of the following rates,
namely:—
(i) at twice the rate specified in the relevant provision of this Act; or
(ii) at the rate of five per cent.
(2) No declaration under sub-section (1A) of Section 206-C shall be valid unless the
person furnishes his Permanent Account Number in such declaration.
(3) In case any declaration becomes invalid under sub-section (2), the collector
shall collect the tax at source in accordance with the provisions of sub-section (1).
(4) No certificate under sub-section (9) of Section 206-C shall be granted unless
the application made under that section contains the Permanent Account Number of
the applicant.
(5) The collectee shall furnish his Permanent Account Number to the collector and
both shall indicate the same in all the correspondence, bills, vouchers and other
documents which are sent to each other.
(6) Where the Permanent Account Number provided to the collector is invalid or
does not belong to the collectee, it shall be deemed that the collectee has not
furnished his Permanent Account Number to the collector and the provisions of sub-
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-
section (1) shall apply accordingly.
(7) The provisions of this section shall not apply to a non-resident who does not
have permanent establishment in India.
Explanation.— For the purposes of this sub-section, the expression “permanent
establishment” includes a fixed place of business through which the business of the
enterprise is wholly or partly carried on.]
207. Liability for payment of advance tax.—3238 [(1)] Tax shall be payable in
advance during any financial year, in accordance with the provisions of Sections 208 to
219 (both inclusive), in respect of the total income of the assessee which would be
chargeable to tax for the assessment year immediately following that financial year,
such income being hereafter in this Chapter referred to as “current income”.
3239 [(2) The provisions of sub-section (1) shall not apply to an individual resident in
India, who—
(a) does not have any income chargeable under the head “Profits and gains of
business or profession”; and
(b) is of the age of sixty years or more at any time during the previous year.]
208. Conditions of liability to pay advance tax.— Advance tax shall be payable
during a financial year in every case where the amount of such tax payable by the
assessee during that year, as computed in accordance with the provisions of this
Chapter, is 3240 [ten thousand rupees] or more.
209. Computation of advance tax.— (1) The amount of advance tax payable by
an assessee in the financial year shall, subject to the provisions of sub-sections (2)
and (3), be computed as follows, namely:—
(a) where the calculation is made by the assessee for the purposes of payment of
advance tax under sub-section (1) or sub-section (2) or sub-section (5) or sub-
section (6) of Section 210, he shall first estimate his current income and income
tax thereon shall be calculated at the rates in force in the financial year;
(b) where the calculation is made by the Assessing Officer for the purpose of
making an order under sub-section (3) of Section 210, the total income of the
latest previous year in respect of which the assessee has been assessed by way
of regular assessment or the total income returned by the assessee in any return
of income furnished by him for any subsequent previous year, whichever is
higher, shall be taken and income tax thereon shall be calculated at the rates in
force in the financial year;
(c) where the calculation is made by the Assessing Officer for the purpose of
making an amended order under sub-section (4) of Section 210, the total income
declared in the return furnished by the assessee for the later previous year, or,
as the case may be, the total income in respect of which the regular assessment,
referred to in that sub-section has been made, shall be taken and income tax
thereon shall be calculated at the rates in force in the financial year;
(d) the income tax calculated under clause (a) or clause (b) or clause (c) shall, in
each case, be reduced by the amount of income tax which would be deductible or
collectible at source during the said financial year under any provision of this Act
from any income (as computed before allowing any deductions admissible under
this Act) which has been taken into account in computing the current income or,
as the case may be, the total income aforesaid; and the amount of income tax as
so reduced shall be the advance tax payable:
3241
[Provided that for computing liability for advance tax, income tax
calculated under clause (a) or clause (b) or clause (c) shall not, in each case, be
reduced by the aforesaid amount of income tax which would be deductible or
collectible at source during the said financial year under any provision of this Act
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from any income, if the person responsible for deducting tax has paid or credited
such income without deduction of tax or it has been received or debited by the
person responsible for collecting tax without collection of such tax.]
(2) Where the Finance Act of the relevant year provided that, in the case of any
class of assessees, net agricultural income (as defined in that Act) shall be taken into
account for the purposes of computing advance tax, then, the net agricultural income
to the taken into account in the case of any assessee falling in that class, shall be—
(a) in cases where the Assessing Officer makes an order under sub-section (3) or
sub-section (4) of Section 210,—
(i) if the total income of the latest previous year in respect of which the assessee
has been assessed by way of regular assessment forms the basis of
computation of advance tax payable by him, the net agricultural income which
has been taken into account for the purposes of charging income tax for the
assessment year relevant to that previous year; or
(ii) if the total income declared by the assessee for the later previous year
referred to in sub-section (4) of Section 210 forms the basis of computation of
advance tax, the net agricultural income as returned by the assessee in the
return of income for the assessment year relevant to such later previous year;
(b) in cases where the advance tax is paid by the assessee on the basis of his
estimate of his current income under sub-section (1) or sub-section (2) or sub-
section (5) or sub-section (6) of Section 210, the net agricultural income, as
estimated by him, of the period which would be the previous year for the
immediately following assessment year.
(3) Where the Finance Act of the relevant year specifies any separate rate or rates
for the purposes of computing advance tax in the case of every Hindu undivided family
which has at least one member whose total income of the previous year exceeds the
maximum amount not chargeable to income tax in his case, then, the Assessing
Officer shall, for making an order under sub-section (3) or sub-section (4) of Section
210 in the case of any such Hindu undivided family, compute (subject to the
provisions of Section 164) the advance tax at such rate or rates—
(a) in a case where the total income of the latest previous year in respect of which
the Hindu undivided family has been assessed by way of regular assessment
forms the basis of computation of advance tax, if the total income of any
member of the family for the assessment year relevant to such latest previous
year exceeds the maximum amount not chargeable to income tax in his case;
(b) in a case where the total income of the previous year in respect of which a
return of income is furnished by the Hindu undivided family under Section 139 or
in response to a notice under sub-section (1) of Section 142 forms the basis of
computation of advance tax, if the total income of any member of the family for
the assessment year relevant to such previous year exceeds the maximum
amount not chargeable to income tax in his case.
210. Payment of advance tax by the assessee of his own accord or in
pursuance of order of Assessing Officer.— (1) Every person who is liable to pay
advance tax under Section 208 (whether or not he has been previously assessed by
way of regular assessment) shall, of his own accord, pay, on or before each of the due
dates specified in Section 211, the appropriate percentage, specified in that section, of
the advance tax on his current income, calculated in the manner laid down in Section
209.
(2) A person who pays any instalment or instalments of advance tax under sub-
section (1), may increase or reduce the amount of advance tax payable in the
remaining instalment or instalments to accord with his estimate of his current income
and the advance tax payable thereon, and make payment of the said amount in the
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remaining instalment or instalments accordingly.
(3) In the case of a person who has been already assessed by way of regular
assessment in respect of the total income of any previous year 3242 [* * *], the
Assessing Officer, if he is of opinion that such person is liable to pay advance tax,
may, at any time during the financial year but not later than the last day of February,
by order in writing, require such person to pay advance tax calculated in the manner
laid down in Section 209, and issue to such person a notice of demand under Section
156 specifying the instalment or instalments in which such tax is to be paid.
(4) If, after the making of an order by the Assessing Officer under sub-section (3)
and at any time before the 1st day of March, a return of income is furnished by the
assessee under Section 139 or in response to a notice under sub-section (1) of Section
142, or a regular assessment of the assessee is made in respect of a previous year
later than that referred to in sub-section (3), the Assessing Officer may make an
amended order and issue to such assessee a notice of demand under Section 156
requiring the assessee to pay, on or before the due date or each of the due dates
specified in Section 211 falling after the date of the amended order, the appropriate
percentage, specified in Section 211, of the advance tax computed on the basis of the
total income declared in such return or in respect of which the regular assessment
aforesaid has been made.
(5) A person who is served with an order of the Assessing Officer under sub-section
(3) or an amended order under sub-section (4) may, if in his estimation the advance
tax payable on his current income would be less than the amount of the advance tax
specified in such order or amended order, send an intimation in the prescribed form to
the Assessing Officer to that effect and pay such advance tax as accords with his
estimate, calculated, in the manner laid down in Section 209, at the appropriate
percentage thereof specified in Section 211, on or before the due date or each of the
due dates specified in Section 211 falling after the date of such intimation.
(6) A person who is served with an order of the Assessing Officer under sub-section
(3) or amended order under sub-section (4) shall, if in his estimation the advance tax
payable on his current income would exceed the amount of advance tax specified in
such order or amended order or intimated by him under sub-section (5), pay on or
before the due date of the last instalment specified in Section 211, the appropriate
part or, as the case may be, the whole of such higher amount of advance tax as
accords with his estimate, calculated in the manner laid down in Section 209.
211. Instalments of advance tax and due dates.— 3243 [(1) Advance tax on the
current income calculated in the manner laid down in Section 209 shall be payable
by—
(a) all the assessees, other than the assessee referred to in clause (b), who are
liable to pay the same, in four instalments during each financial year and the
due date of each instalment and the amount of such instalment shall be as
specified in the Table below:
TABLE
Due date of instalment Amount payable
On or before the 15th June Not less than fifteen per cent of such advance
tax.
On or before the 15th September Not less than forty-five per cent of such advance
tax, as reduced by the amount, if any, paid in
the earlier instalment.
On or before the 15th December Not less than seventy-five per cent of such
advance tax, as reduced by the amount or
amounts, if any, paid in the earlier instalment or
instalments.
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On or before the 15th March The whole amount of such advance tax, as
reduced by the amount or amounts, if any, paid
in the earlier instalment or instalments;
(b) 3244 [an assessee who declares profits and gains in accordance with the
provisions of sub-section (1) of Section 44-AD or sub-section (1) of Section 44
-ADA, as the case may be], to the extent of the whole amount of such
advance tax during each financial year on or before the 15th March:
Provided that any amount paid by way of advance tax on or before the 31st
day of March shall also be treated as advance tax paid during the financial
year ending on that day for all the purposes of this Act.]
(2) If the notice of demand issued under Section 156 in pursuance of an order of
the Assessing Officer under sub-section (3) or sub-section (4) of Section 210 is served
after any of the due dates specified in sub-section (1), the appropriate part or, as the
case may be, the whole of the amount of the advance tax specified in such notice shall
be payable on or before each of such of those dates as fall after the date of service of
the notice of demand.
212. [Omitted]
213. [Omitted]
214. Interest payable by Government.— (1) The Central Government shall pay
simple interest at fifteen per cent per annum on the amount by which the aggregate
sum of any instalments of advance tax paid during any financial year in which they are
payable under Sections 207 to 213 exceeds the amount of the assessed tax from the
1st day of April next following the said financial year to the date of the regular
assessment for the assessment year immediately following the said financial year, and
where any such instalment is paid after the expiry of the financial year during which it
is payable by reason of the provisions of Section 213, interest as aforesaid shall also
be payable on that instalment from the date of its payment to the date of regular
assessment:
Provided that in respect of any amount refunded on a provisional assessment year
under Section 141-A, no interest shall be paid for any period after the date of such
provisional assessment.
(1-A) Where as a result of an order under Section 147 or Section 154 or Section
155 or Section 250 or Section 254 or Section 260 or Section 262 or Section 263 or
Section 264, or an order of the Settlement Commission under sub-section (4) of
Section 245-D the amount on which interest was payable under sub-section (1) has
been increased or reduced, as the case may be, the interest shall be increased or
reduced accordingly, and in a case where the interest is reduced, the Assessing Officer
shall serve on the assessee a notice of demand in the prescribed form specifying the
amount of the excess interest payable and requiring him to pay such amount; and
such notice of demand shall be deemed to be a notice under Section 156 and the
provisions of this Act shall apply accordingly.
(2) On any portion of such amount which is refunded under this chapter, interest
shall be payable only up to the date on which the refund was made.
(3) This section and Sections 215, 216 and 217 shall not apply in respect of any
assessment for the assessment year commencing on the 1st day of April, 1989 or any
subsequent assessment year and, in the application of the said sections to the
assessment for any earlier assessment year, references therein [except in sub-section
(1-A) and sub-section (3) of Section 215] to the other provisions of this Act shall be
construed as references to those provisions as for the time being in force and
applicable to the relevant assessment year.
Explanation 1.—In this section, “assessed tax” shall have the same meaning as in
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Explanation 2.—Where, in relation to an assessment year, an assessment is made
for the first time under Section 147, the assessment so made shall be regarded as a
regular assessment for the purposes of this section.
215. Interest payable by assessee.— (1) Where, in any financial year, an
assessee had paid advance tax under Section 209-A or Section 212 on the basis of his
own estimate (including revised estimate), and the advance tax so paid is less than
seventy-five per cent of the assessed tax, simple interest at the rate of fifteen per cent
per annum from the 1st day of April next following the said financial year up to the
date of the regular assessment shall be payable by the assessee upon the amount by
which the advance tax so paid falls short of the assessed tax:
Provided that in the case of an assessee, being a company, the provision of this
sub-section shall have effect as if for the words “seventy-five per cent”, the words
“eighty-three and one-third per cent” had been substituted.
(2) Where before the date of completion of a regular assessment, tax is paid by the
assessee under Section 140-A or otherwise,—
(i) interest shall be calculated in accordance with the foregoing provision up to
the date on which the tax is so paid; and
(ii) thereafter, interest shall be calculated at the rate aforesaid on the amount by
which the tax as so paid (in so far as it relates to income subject to advance
tax) falls short of the assessed tax.
(3) Where as a result of an order under Section 147 or Section 154 or Section 155
or Section 250 or Section 254 or Section 260 or Section 262 or Section 263 or Section
264, or an order of the Settlement Commission under sub-section (4) of Section 245-
D the amount on which interest was payable under sub-section (1) has been increased
or reduced, as the case may be, the interest shall be increased or reduced accordingly,
and—
(i) in a case where the interest is increased, the Assessing Officer shall serve on
the assessee a notice of demand in the prescribed form specifying the sum
payable, and such notice of demand shall be deemed to be a notice under
Section 156 and the provisions of this Act shall apply accordingly;
(ii) in a case where the interest is reduced, the excess interest paid, if any, shall
be refunded.
(4) In such cases and under such circumstances as may be prescribed the
Assessing Officer may reduce or waive the interest payable by the assessee under this
section.
(5) In this section and Sections 217 and 273, “assessed tax” means the tax
determined on the basis of the regular assessment (reduced by the amount of tax
deductible in accordance with the provisions of Sections 192 to 194, Section 194-A,
Section 194-C, Section 194-D, Section 195 and Section 196-A, so far as such tax
relates to income subject to advance tax and so far as it is not due to variations in the
rates of tax made by the Finance Act enacted for the year for which the regular
assessment is made.]
(6) Where, in relation to an assessment year, an assessment is made for the first
time under Section 147, the assessment so made shall be regarded as a regular
assessment for the purposes of this section and Sections 216, 217 and 273.
216. Interest payable by assessee in case of underestimate, etc.— Where on
making the regular assessment, the Assessing Officer finds that any assessee has—
(a) under Section 209-A or Section 212 underestimated the advance tax payable
by him and thereby reduced the amount payable in either of the first two
instalments; or
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(b) under Section 213 wrongly deferred the payment of advance tax on a part of
his income, he may direct that the assessee shall pay simple interest at fifteen
per cent per annum—
(i) in the case referred to in clause (a), for the period during which the
payment was deficient, on the difference between the amount paid in each
such instalment and the amount which should have been paid, having
regard to the aggregate advance tax actually paid during the year; and
(ii) in the case referred to in clause (b), for the period during which the
payment of advance tax was so deferred.
Explanation.—For the purposes of this section, any instalment due before the expiry
of six months from the commencement of the previous year in respect of which it is to
be paid shall be deemed to have become due fifteen days after the expiry of the said
six months.
217. Interest payable by assessee when no estimate made.— (1) Where, on
making the regular assessment, the Assessing Officer finds:—
(a) that any such person as is referred to in clause (a) of sub-section (1) of
Section 209-A has not sent the statement referred to in that clause or the
estimate in lieu of such statement referred to in sub-section (2) of that
section; or
(b) that any such person as is referred to in clause (b) of sub-section (1) of
Section 209-A has not sent the estimate referred to in that clause,
simple interest at the rate of fifteen per cent per annum, from the 1st day of April next
following the financial year in which the advance tax was payable in accordance with
the said sub-section (1) or sub-section (2) up to the date of the regular assessment
shall be payable by the assessee upon the amount equal to the assessed tax as
defined in sub-section (5) of Section 215.
(1-A) Where, on making the regular assessment, the Assessing Officer finds that
any person who is required to send an estimate under sub-section (4) of Section 209-
A or any such person as is referred to in sub-section (3-A) of Section 212 has not sent
the estimate referred to therein, simple interest at the rate of fifteen per cent, per
annum from the 1st day of April next following the financial year in which the advance
tax was payable in accordance with the said sub-section (4), or, as the case may be,
sub-section (3-A) up to the date of the regular assessment shall be payable by the
assessee upon the amount by which the advance tax paid by him falls short of the
assessed tax as defined in sub-section (5) of Section 215.
(2) The provisions of sub-sections (2), (3) and (4) of Section 215 shall apply to
interest payable under this section as they apply to interest payable under that
section.
218. When assessee deemed to be in default.— If any assessee does not pay on
the date specified in sub-section (1) of Section 211, any instalment of advance tax
that he is required to pay by an order of the Assessing Officer under sub-section (3) or
sub-section (4) of Section 210 and does not, on or before the date on which any such
instalment as is not paid becomes due, send to the Assessing Officer an intimation
under sub-section (5) of Section 210 or does not pay on the basis of his estimate of
his current income the advance tax payable by him under sub-section (6) of Section
210, he shall be deemed to be an assessee in default in respect of such instalment or
instalments.
219. Credit for advance tax.— Any sum, other than a penalty or interest, paid by
or recovered from an assessee as advance tax in pursuance of this Chapter shall be
treated as a payment of tax in respect of the income of the period which would be the
previous year for an assessment for the assessment year next following the financial
year in which it was payable, and credit therefor shall be given to the assessee in the
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regular assessment:
220. When tax payable and when assessee deemed in default.— (1) Any
amount, otherwise than by way of advance tax, specified as payable in a notice of
demand under Section 156 shall be paid within thirty days of the service of the notice
at the place and to the person mentioned in the notice:
Provided that, where the Assessing Officer has any reason to believe that it will
be detrimental to revenue if the full period of thirty days aforesaid is allowed, he
may, with the previous approval of the Joint Commissioner, direct that the sum
specified in the notice of demand shall be paid within such period being a period
less than the period of thirty days aforesaid, as may be specified by him in the
notice of demand.
3245
[(1-A) Where any notice of demand has been served upon an assessee and any
appeal or other proceeding, as the case may be, is filed or initiated in respect of the
amount specified in the said notice of demand, then, such demand shall be deemed to
be valid till the disposal of the appeal by the last appellate authority or disposal of the
proceedings, as the case may be, and any such notice of demand shall have the effect
as specified in Section 3 of the Taxation Laws (Continuation and Validation of Recovery
Proceedings) Act, 1964 (11 of 1964).]
(2) If the amount specified in any notice of demand under Section 156 is not paid
within the period limited under sub-section (1), the assessee shall be liable to pay
simple interest at 3246 [one] per cent for every month or part of a month comprised in
the period commencing from the day immediately following the end of the period
mentioned in sub-section (1) and ending with the day on which the amount is paid:
Provided that, where as a result of an order under Section 154, or Section 155,
or Section 250, or Section 254, or Section 260, or Section 262, or Section 264, or
an order of the Settlement Commission under sub-section (4) of Section 245-D the
amount on which interest was payable under this section had been reduced the
interest shall be reduced accordingly and the excess interest paid, if any, shall be
refunded:
3247
[Provided further that where as a result of an order under sections specified in
the first proviso, the amount on which interest was payable under this section had
been reduced and subsequently as a result of an order under said sections or
Section 263, the amount on which interest was payable under this section is
increased, the assessee shall be liable to pay interest under sub-section (2) from
the day immediately following the end of the period mentioned in the first notice of
demand, referred to in sub-section (1) and ending with the day on which the
amount is paid:]
3248[Provided also] that in respect of any period commencing on or before the
31st day of March, 1989 ending after that date, such interest shall, in respect of so
much of such period as falls after that date, be calculated at the rate of one and one
-half per cent for every month or part of a month.
(2-A) Notwithstanding anything contained in sub-section (2) the 3249 [Principal Chief
Commissioner or Chief Commissioner] or 3250
[Principal Commissioner or
Commissioner] may reduce or waive the amount of interest paid or payable by an
assessee under the said sub-section if he is satisfied that—
(i) payment of such amount has caused or would cause genuine hardship to the
assessee;
(ii) default in the payment of the amount on which interest has been paid or was
payable under the said sub-section was due to circumstances beyond the control
of the assessee; and
(iii) the assessee has cooperated in any inquiry relating to the assessment or any
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proceeding for the recovery of any amount due from him:
3251
[Provided that the order accepting or rejecting the application of the
assessee, either in full or in part, shall be passed within a period of twelve
months from the end of the month in which the application is received:
Provided further that no order rejecting the application, either in full or in part,
shall be passed unless the assessee has been given an opportunity of being
heard:
Provided also that where any application is pending as on the 1st day of June,
2016, the order shall be passed on or before the 31st day of May, 2017.]
3252
[(2-B) Notwithstanding anything contained in sub-section (2), where interest is
charged under sub-section (1-A) of Section 201 on the amount of tax specified in the
intimation issued under sub-section (1) of Section 200-A for any period, then, no
interest shall be charged under sub-section (2) on the same amount for the same
period.]
3253 [(2-C) Notwithstanding anything contained in sub-section (2), where interest is
charged under sub-section (7) of Section 206-C on the amount of tax specified in the
intimation issued under sub-section (1) of Section 206-CB for any period, then, no
interest shall be charged under sub-section (2) on the same amount for the same
period.]
(3) Without prejudice to the provisions contained in sub-section (2), on an
application made by the assessee before the expiry of the due date under sub-section
(1), the Assessing Officer may extend the time for payment or allow payment by
instalments, subject to such conditions as he may think fit to impose in the
circumstances of the case.
(4) If the amount is not paid within the time limited under sub-section (1) or
extended under sub-section (3), as the case may be, at the place and to the person
mentioned in the said notice the assessee shall be deemed to be in default.
(5) If, in a case where payment by instalments is allowed under sub-section (3),
the assessee commits default in paying any one of the instalments within the time
fixed under that sub-section, the assessee shall be deemed to be in default as to the
whole of the amount then outstanding, and the other instalment or instalments shall
be deemed to have been due on the same date as the instalment actually in default.
(6) Where an assessee has presented an appeal under Section 246 3254 [or Section
246-A] the Assessing Officer may, in his discretion, and subject to such conditions as
he may think fit to impose in the circumstances of the case, treat the assessee as not
being in default in respect of the amount in dispute in the appeal, even though the
time for payment has expired, as long as such appeal remains undisposed of.
(7) Where an assessee has been assessed in respect of income arising outside India
in a country the laws of which prohibit or restrict the remittance of money to India, the
Assessing Officer shall not treat the assessee as in default in respect of that part of the
tax which is due in respect of that amount of his income which, by reason of such
prohibition or restriction, cannot be brought into India, and shall continue to treat the
assessee as not in default in respect of such part of the tax until the prohibition or
restriction is removed.
Explanation.—For the purposes of this section, income shall be deemed to have
been brought into India if it has been utilised or could have been utilised for the
purposes of any expenditure actually incurred by the assessee outside India or if the
income, whether capitalised or not, has been brought into India in any form.
221. Penalty payable when tax in default.— (1) When an assessee is in default
or is deemed to be in default in making a payment of tax, he shall, in addition to the
amount of the arrears and the amount of interest payable under sub-section (2) of
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Section 220, be liable, by way of penalty, to pay such amount as the Assessing Officer
may direct, and in the case of a continuing default, such further amount or amounts as
the Assessing Officer may, from time to time, direct, so, however, that the total
amount of penalty does not exceed the amount of tax in arrears:
Provided that before levying any such penalty, the assessee shall be given a
reasonable opportunity of being heard:
Provided further that where the assessee proves to the satisfaction of the
Assessing Officer that the default was for good and sufficient reasons, no penalty shall
be levied under this section.
Explanation.—For the removal of doubt, it is hereby declared that an assessee shall
not cease to be liable to any penalty under this sub-section merely by reason of the
fact that before the levy of such penalty he has paid the tax.
(2) Where as a result of any final order the amount of tax, with respect to the
default in the payment of which the penalty was levied, has been wholly reduced, the
penalty levied shall be cancelled and the amount of penalty paid shall be refunded.
222. Certificate to Tax Recovery Officer.— (1) When an assessee is in default or
is deemed to be in default in making a payment of tax, the Tax Recovery Officer may
draw up under his signature a statement in the prescribed form specifying the amount
of arrears due from the assessee (such statement being hereafter in this Chapter and
in the Second Schedule referred to as “certificate”) and shall proceed to recover from
such assessee the amount specified in the certificate by one or more of the modes
mentioned below, in accordance with the rule laid down in the Second Schedule—
(a) attachment and sale of the assessee’s movable property;
(b) attachment and sale of the assessee’s immovable property;
(c) arrest of the assessee and his detention in prison;
(d) appointing a receiver for the management of the assessee’s movable and
immovable properties.
Explanation.—For the purposes of this sub-section, the assessee’s movable or
immovable property shall include any property which has been transferred, directly or
indirectly on or after the 1st day of June, 1973, by the assessee to his spouse or minor
child or son’s wife or son’s minor child, otherwise than for adequate consideration, and
which is held by, or stands in the name of, any of the persons aforesaid; and so far as
the movable or immovable property so transferred to his minor child or his son’s minor
child is concerned, it shall, even after the date of attainment of majority by such minor
child or son’s minor child, as the case may be, continue to be included in the
assessee’s movable or immovable property for recovering any arrears due from the
assessee in respect of any period prior to such date.
(2) The Tax Recovery Officer may take action under sub-section (1),
notwithstanding that proceedings for recovery of the arrears by any other mode have
been taken.
223. Tax Recovery Officer by whom recovery is to be effected.— (1) The Tax
Recovery Officer competent to take action under Section 222 shall be—
(a) the Tax Recovery Officer within whose jurisdiction the assessee carries on his
business or profession or within whose jurisdiction the principal place of his
business or profession is situate, or
(b) the Tax Recovery Officer within whose jurisdiction the assessee resides or any
movable or immovable property of the assessee is situate,
the jurisdiction for this purpose being the jurisdiction assigned to the Tax Recovery
Officer under the orders or directions issued by the Board, or by the 3255 [Principal Chief
Commissioner or Chief Commissioner] or 3256
Commissioner] who is authorised in this behalf by the Board in pursuance of Section
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120.
(2) Where an assessee has property within the jurisdiction of more than one Tax
Recovery Officer and the Tax Recovery Officer by whom the certificate is drawn up—
(a) is not able to recover the entire amount by sale of the property, movable or
immovable, within his jurisdiction, or
(b) is of the opinion that, for the purpose of expediting or securing the recovery
of the whole or any part of the amount under this Chapter, it is necessary so
to do,
he may send the certificate or, where only a part of the amount is to be recovered, a
copy of the certificate certified in the prescribed manner and specifying the amount to
be recovered to a Tax Recovery Officer within whose jurisdiction the assessee resides
or has property and, thereupon, that Tax Recovery Officer shall also proceed to recover
the amount under this Chapter as if the certificate or copy thereof had been drawn up
by him.
224. Validity of certificate and cancellation or amendment thereof.— It shall
not be open to the assessee to dispute the correctness of any certificate drawn up by
the Tax Recovery Officer on any ground whatsoever, but it shall be lawful for the Tax
Recovery Officer to cancel the certificate if, for any reason, he thinks it necessary so to
do, or to correct any clerical or arithmetical mistake therein.
225. Stay of proceedings in pursuance of certificate and amendment or
cancellation thereof.— (1) It shall be lawful for the Tax Recovery Officer to grant
time for the payment of any tax and when he does so, he shall stay the proceedings
for the recovery of such tax until the expiry of the time so granted.
(2) Where the order giving rise to a demand of tax for which a certificate has been
drawn up is modified in appeal or other proceeding under this Act, and, as a
consequence thereof, the demand is reduced but the order is the subject-matter of
further proceeding under this Act, the Tax Recovery Officer shall stay the recovery of
such part of the amount specified in the certificate as pertains to the said reduction for
the period for which the appeal or other proceeding remains pending.
(3) Where a certificate has been drawn up and subsequently the amount of the
outstanding demand is reduced as a result of an appeal or other proceeding under this
Act, the Tax Recovery Officer shall, when the order which was the subject-matter of
such appeal or other proceeding has become final and conclusive, amend the
certificate, or cancel it, as the case may be.
226. Other modes of recovery.— (1) Where no certificate has been drawn up
under Section 222, the Assessing Officer may recover the tax by any one or more of
the modes provided in this section.
(1-A) Where a certificate has been drawn up under Section 222, the Tax Recovery
Officer may, without prejudice to the modes of recovery specified in that section,
recover the tax by any one or more of the modes provided in this section.
(2) If any assessee is in receipt of any income chargeable under the head
“Salaries”, the Assessing Officer or the Tax Recovery Officer may require any person
paying the same to deduct from any payment subsequent to the date of such
requisition any arrears of tax due from such assessee, and such person shall comply
with any such requisition and shall pay the sum so deducted to the credit of the
Central Government or as the Board directs:
Provided that any part of the salary exempt from attachment in execution of a
decree of a civil court under Section 60 of the Code of Civil Procedure, 1908 (5 of
1908), shall be exempt from any requisition made under this sub-section.
(3)(i) The Assessing Officer or Tax Recovery Officer may, at any time or from
time to time, by notice in writing require any person from whom money is due
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-
or may become due to the assessee or any person who holds or may
subsequently hold money for or on account of the assessee, to pay to the
Assessing Officer or Tax Recovery Officer either forthwith upon the money
becoming due or being held or at or within the time specified in the notice
(not being before the money becomes due or is held) so much of the money
as is sufficient to pay the amount due by the assessee in respect of arrears or
the whole of the money when it is equal to or less than that amount.
(ii) A notice under this sub-section may be issued to any person who holds or
may subsequently hold any money for or on account of the assessee jointly
with any other person and for the purposes of this sub-section, the shares of
the joint holders in such account shall be presumed, until the contrary is
proved, to be equal.
(iii) A copy of the notice shall be forwarded to the assessee at his last address
known to the Assessing Officer or Tax Recovery Officer and in the case of a
joint account to all the joint holders at their last addresses known to the
Assessing Officer or Tax Recovery Officer.
(iv) Save as otherwise provided in this sub-section, every person to whom a
notice is issued under this sub-section shall be bound to comply with such
notice, and, in particular, where any such notice is issued to a post office,
banking company or an insurer, it shall not be necessary for any passbook,
deposit receipt, policy, or any other document to be produced for the purpose
of any entry, endorsement or the like being made before payment is made,
notwithstanding any rule, practice or requirement to the contrary.
(v) Any claim respecting any property in relation to which a notice under this sub
-section has been issued arising after the date of the notice shall be void as
against any demand contained in the notice.
(vi) Where a person to whom a notice under this sub-section is sent objects to it
by a statement on oath that the sum demanded or any part thereof is not due
to the assessee or that he does not hold any money for or on account of the
assessee, then, nothing contained in this sub-section shall be deemed to
require such person to pay any such sum or part thereof, as the case may be,
but if it is discovered that such statement was false in any material particular,
such person shall be personally liable to the Assessing Officer or Tax Recovery
Officer to the extent of his own liability to the assessee on the date of the
notice, or to the extent of the assessee’s liability for any sum due under this
Act, whichever is less.
(vii) The Assessing Officer or Tax Recovery Officer may, at any time or from time
to time, amend or revoke any notice issued under this sub-section or extend
the time for making any payment in pursuance of such notice.
(viii) The Assessing Officer or Tax Recovery Officer shall grant a receipt for any
amount paid in compliance with a notice issued under this sub-section, and
the person so paying shall be fully discharged from his liability to the assessee
to the extent of the amount so paid.
(ix) Any person discharging any liability to the assessee after receipt of a notice
under this sub-section shall be personally liable to the Assessing Officer or Tax
Recovery Officer to the extent of his own liability to the assessee so
discharged or to the extent of the assessee’s liability for any sum due under
this Act, whichever is less.
(x) If the person to whom a notice under this sub-section is sent fails to make
payment in pursuance thereof to the Assessing Officer or Tax Recovery Officer
he shall be deemed to be an assessee in default in respect of the amount
specified in the notice and further proceedings may be taken against him for
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-
the realisation of the amount as if it were an arrear of tax due from him, in the
manner provided in Sections 222 to 225 and the notice shall have the same
effect as an attachment of a debt by the Tax Recovery Officer in exercise of his
powers under Section 222.
(4) The Assessing Officer or Tax Recovery Officer may apply to the court in whose
custody there is money belonging to the assessee for payment to him of the entire
amount of such money, or, if it is more than the tax due, an amount sufficient to
discharge the tax.
(5) The Assessing Officer or Tax Recovery Officer may, if so authorised by the 3257
[Principal Chief Commissioner or Chief Commissioner] or 3258 [Principal Commissioner
or Commissioner] by general or special order, recover any arrears of tax due from an
assessee by distraint and sale of his movable property in the manner laid down in the
Third Schedule.
227. Recovery through State Government.— If the recovery of tax in any area
has been entrusted to a State Government under clause (1) of Article 258 of the
Constitution, the State Government may direct, with respect to that area or any part
thereof, that tax shall be recovered therein with and as an addition to, any municipal
tax or local rate, by the same person and in the same manner as the municipal tax or
local rate is recovered.
228. [Omitted]
228-A. Recovery of tax in pursuance of agreements with foreign countries.—
(1) Where an agreement is entered into by the Central Government with the
Government of any country outside India for recovery of income tax under this Act and
the corresponding law in force in that country and the Government of that country or
any authority under that Government which is specified in this behalf in such
agreement sends to the Board a certificate for the recovery of any tax due under such
3259
[corresponding law from a resident, or] a person having any property in India, the
Board may forward such certificate to 3260 [any Tax Recovery Officer having jurisdiction
over the resident, or] within whose jurisdiction such property is situated and
thereupon such Tax Recovery Officer shall—
(a) proceed to recover the amount specified in the certificate in the manner in
which he would proceed to recover the amount specified in a certificate drawn
up by him under Section 222; and
(b) remit any sum so recovered by him to the Board after deducting his
expenses in connection with the recovery proceedings.
(2) Where an assessee is in default or is deemed to be in default in making a
payment of tax, the Tax Recovery Officer may, if the assessee 3261 [is a resident of a
country] (being a country with which the Central Government has entered into an
agreement for the recovery of income tax under this Act and the corresponding law in
force in that country), 3262 [or has any property in that country, forward to the Board] a
certificate drawn up by him under Section 222 and the Board may take such action
thereon as it may deem appropriate having regard to the terms of the agreement with
such country.
229. Recovery of penalties, fine, interest and other sums.— Any sum imposed
by way of interest, fine, penalty or any other sum payable under the provisions of this
Act, shall be recoverable in the manner provided in this Chapter for the recovery of
arrears of tax.
230. Tax clearance certificate.—3263 [(1) Subject to such exceptions as the
Central Government may, by notification in the Official Gazette, specify in this behalf,
no person,—
(a) who is not domiciled in India;
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-
(b) who has come to India in connection with business, profession or
employment; and
(c) who has income derived from any source in India,
shall leave the territory of India by land, sea or air unless he furnishes to such
authority as may be prescribed—
(i) an undertaking in the prescribed form from his employer; or
(ii) through whom such person is in receipt of the income,
to the effect that tax payable by such person who is not domiciled in India shall be
paid by the employer referred to in clause (i) or the person referred to in clause (ii),
and the prescribed authority shall, on receipt of the undertaking, immediately give to
such person a no objection certificate, for leaving India:
Provided that nothing contained in sub-section (1) shall apply to a person who is
not domiciled in India but visits India as a foreign tourist or for any other purpose not
connected with business, profession or employment.
(1-A) Subject to such exceptions as the Central Government may, by notification in
the Official Gazette, specify in this behalf, every person, who is domiciled in India at
the time of his departure from India, shall furnish, in the prescribed form to the
income tax authority or such other authority as may be prescribed—
(a) the permanent account number allotted to him under Section 139-A:
Provided that in case no such permanent account number has been allotted
to him, or his total income is not chargeable to income tax or he is not
required to obtain a permanent account number under this Act, such person
shall furnish a certificate in the prescribed form;
(b) the purpose of his visit outside India;
(c) the estimated period of his stay outside India;
Provided that no person—
(i) who is domiciled in India at the time of his departure; and
(ii) in respect of whom circumstances exist which, in the opinion of an income
tax authority render it necessary for such person to obtain a certificate under
this section,
shall leave the territory of India by land, sea or air unless he obtains a certificate from
the income tax authority stating that he has no liabilities under this Act, or the Wealth
Tax Act, 1957, or the Gift Tax Act, 1958, or the Expenditure Tax Act, 1987, or that
satisfactory arrangements have been made for the payment of all or any of such taxes
which are or may become payable by that person:
Provided that no income tax authority shall make it necessary for any person who
is domiciled in India to obtain a certificate under this section unless he records the
reasons therefor and obtains the prior approval of the 3264 [Principal Chief
Commissioner or Chief Commissioner] of Income Tax.]
(2) If the owner or charterer of any ship or aircraft carrying persons from any place
in the territory of India to any place outside India allows any person to whom sub-
section (1) 3265 [or the first proviso to sub-section (1-A)] applies to travel by such ship
or aircraft without first satisfying himself that such person is in possession of a
certificate as required by that sub-section, he shall be personally liable to pay the
whole or any part of the amount of tax, if any, payable by such person as the
Assessing Officer may, having regard to the circumstances of the case, determine.
(3) In respect of any sum payable to the owner or charterer of any ship or aircraft
under sub-section (2), the owner or charterer, as the case may be, shall be deemed to
be an assessee in default for such sum, and such sum shall be recoverable from him in
the manner provided in this Chapter as if it were an arrear of tax.
(4) The Board may make rules for regulating any matter necessary for, or incidental
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-
to, the purpose of carrying out the provisions of this section.

Explanation.—For the purposes of this section, the expressions “owner” and
“charterer” include any representative, agent or employee empowered by the owner or
charterer to allow persons to travel by the ship or aircraft.
230-A. Restrictions on registration of transfers of immovable property in
certain cases.—3266 [* * *]
231.[Omitted]
232. Recovery by suit or under other law not affected.— The several modes of
recovery specified in this Chapter shall not affect in any way—
(a) any other law for the time being in force relating to the recovery of debts due
to Government; or
(b) the right of the Government to institute a suit for the recovery of the arrears
due from the assessee;
and it shall be lawful for the Assessing Officer or the Government, as the case may be,
to have recourse to any such law or suit, notwithstanding that the tax due is being
recovered from the assessee by any mode specified in this Chapter.
233. [Omitted]
234. [Omitted]
234-A. Interest for defaults in furnishing return of income.— (1) Where the
return of income for any assessment year under sub-section (1) or sub-section (4) of
Section 139, or in response to a notice under sub-section (1) of Section 142, is
furnished after the due date, or is not furnished, the assessee shall be liable to pay
simple interest at the rate of 3267 [one] per cent for every month or part of a month
comprised in the period commencing on the date immediately following the due date,
and,—
(a) where the return is furnished after the due date, ending on the date of
furnishing of the return; or
(b) where no return has been furnished, ending on the date of completion of the
assessment under Section 144,
3268 [on the amount of the tax on the total income as determined under sub-section (1)
of Section 143, and where a regular assessment is made, on the amount of the tax on
the total income determined under regular assessment, as reduced by the amount of,
—
(i) advance tax, if any, paid;
(ii) any tax deducted or collected at source;
3269
[(ii-a) any relief of tax allowed under Section 89;]
(iii) any relief of tax allowed under Section 90 on account of tax paid in a country
outside India;
(iv) any relief of tax allowed under Section 90-A on account of tax paid in a
specified territory outside India referred to in that section;
(v) any deduction, from the Indian income tax payable, allowed under Section
91, on account of tax paid in a country outside India; and
(vi) any tax credit allowed to be set off in accordance with the provisions of
Section 115-JAA 3270 [or Section 115-JD].]
Explanation 1.—In this section, “due date” means the date specified in sub-section
(1) of Section 139 as applicable in the case of the assessee.
Explanation 2.—In this sub-section, “tax on the total income as determined under
sub-section (1) of Section 143” shall not include the additional income tax, if any,
payable under Section 143.
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-
for the first time under Section 147 3271 [or Section 153-A], the assessment so made
shall be regarded as a regular assessment for the purposes of this section.
3272
[* * *]
(2) The interest payable under sub-section (1) shall be reduced by the interest, if
any, paid under Section 140-A towards the interest chargeable under this section.
(3) Where the return of income for any assessment year, required by a notice under
Section 148 3273 [or Section 153-A] issued after the determination of income under sub
-section (1) of Section 143 or after the completion of an assessment under sub-section
(3) of Section 143 or Section 144 or Section 147, is furnished after the expiry of the
time allowed under such notice, or is not furnished, the assessee shall be liable to pay
simple interest at the rate of 3274 [one] per cent for every month or part of a month
comprised in the period commencing on the day immediately following the expiry of
the time allowed as aforesaid, and,—
(a) where the return is furnished after the expiry of the time aforesaid, ending on
the date of furnishing the return; or
(b) where no return has been furnished ending on the date of completion of the
reassessment or recomputation under Section 147 3275 [or reassessment under
Section 153-A],
on the amount by which the tax on the total income determined on the basis of such
reassessment or recomputation exceeds the tax on the total income determined under
sub-section (1) of Section 143 or on the basis of the earlier assessment aforesaid.
(4) Where, as result of an order under Section 154 or Section 155 or Section 250 or
Section 254 or Section 260 or Section 262 or Section 263 or Section 264 or an order of
the Settlement Commission under sub-section (4) of Section 245-D, the amount of tax
on which interest was payable under sub-section (1) or sub-section (3) of this section
has been increased or reduced, as the case may be, the interest shall be increased or
reduced accordingly, and—
payable, and such notice of demand shall be deemed to be a notice under
be refunded.
(5) The provisions of this section shall apply in respect of assessments for the
assessment year commencing on the 1st day of April, 1989 and subsequent
assessment years.
234-B. Interest for defaults in payment of advance tax.— (1) Subject to the
other provisions of this section, where, in any financial year, an assessee who is liable
to pay advance tax under Section 208 has failed to pay such tax or, where the advance
tax paid by such assessee under the provisions of Section 210 is less than ninety per
cent of the assessed tax, the assessee shall be liable to pay simple interest at the rate
of 3276 [one] per cent for every month or part of a month comprised in the period from
the 1st day of April next following such financial year to the date of determination of
total income under sub-section (1) of Section 143 3277 [and where a regular assessment
is made, to the date of such regular assessment, on an amount] equal to the assessed
tax or, as the case may be, on the amount by which the advance tax paid as aforesaid
falls short of the assessed tax.
3278
[Explanation 1.—In this section, “assessed tax” means the tax on the total
income determined under sub-section (1) of Section 143 and where a regular
assessment is made, the tax on the total income determined under such regular
assessment as reduced by the amount of,—
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-
(i) any tax deducted or collected at source in accordance with the provisions of
Chapter XVII on any income which is subject to such deduction or collection
and which is taken into account in computing such total income;
3279
[(i-a) any relief of tax allowed under Section 89;]
(ii) any relief of tax allowed under Section 90 on account of tax paid in a country
outside India;
(iii) any relief of tax allowed under Section 90-A on account of tax paid in a
(iv) any deduction, from the Indian income tax payable, allowed under Section
91, on account of tax paid in a country outside India; and
(v) any tax credit allowed to be set off in accordance with the provisions of
for the first time under Section 147 3281 [or Section 153-A], the assessment so made
shall be regarded as a regular assessment for the purposes of this section.
Explanation 3.—In Explanation 1 and sub-section (3), “tax on the total income
determined under sub-section (1) of Section 143” shall not include the additional
income tax, if any, payable under Section 143.
(2) Where, before the date of determination of total income under sub-section (1)
of Section 143 or completion of a regular assessment, tax is paid by the assessee
under Section 140-A or otherwise,—
(i) interest shall be calculated in accordance with the foregoing provisions of this
section up to the date on which the tax is so paid, and reduced by the
interest, if any, paid under Section 140-A towards the interest chargeable
under this section;
(ii) thereafter, interest shall be calculated at the rate aforesaid on the amount by
which the tax so paid together with the advance tax paid falls short of the
assessed tax.
3282
[(2-A)(a) where an application under sub-section (1) of Section 245-C for any
assessment year has been made, the assessee shall be liable to pay simple interest at
the rate of one per cent for every month or part of a month comprised in the period
commencing on the 1st day of April of such assessment year and ending on the date
of making such application, on the additional amount of income tax referred to in that
sub-section;
(b) where as a result of an order of the Settlement Commission under sub-
section (4) of Section 245-D for any assessment year, the amount of total
income disclosed in the application under sub-section (1) of Section 245-C is
increased, the assessee shall be liable to pay simple interest at the rate of one
per cent for every month or part of a month comprised in the period
commencing on the 1st day of April of such assessment year and ending on
the date of such order, on the amount by which the tax on the total income
determined on the basis of such order exceeds the tax on the total income
disclosed in the application filed under sub-section (1) of Section 245-C;
(c) where, as a result of an order under sub-section (6-B) of Section 245-D, the
amount on which interest was payable under clause (b) has been increased or
reduced, as the case may be, the interest shall be increased or reduced
accordingly.]
3283
[(3) Where, as a result of an order of reassessment or re-computation under
Section 147 or Section 153-A, the amount on which interest was payable in respect of
shortfall in payment of advance tax for any financial year under sub-section (1) is
increased, the assessee shall be liable to pay simple interest at the rate of one per
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-
cent for every month or part of a month comprised in the period commencing on the
1st day of April next following such financial year and ending on the date of the
reassessment or re-computation under Section 147 or Section 153-A, on the amount
by which the tax on the total income determined on the basis of the reassessment or
re-computation exceeds the tax on the total income determined under sub-section (1)
of Section 143 or on the basis of the regular assessment as referred to in sub-section
(1), as the case may be.]
(4) Where, as a result of an order under Section 154 or Section 155 or Section 250
or Section 254 or Section 260 or Section 262 or Section 263 or Section 264 3284 [* * *],
the amount on which interest was payable under sub-section (1) or sub-section (3)
has been increased or reduced, as the case may be, the interest shall be increased or
reduced accordingly, and—
payable and such notice of demand shall be deemed to be a notice under
be refunded.
assessment years.
234-C. Interest for deferment of advance tax.—3285 [(1) Where in any financial
year,—
3286
[(a) an assessee, other than 3287 [the assessee referred to in clause (b)], who
is liable to pay advance tax under Section 208 has failed to pay such tax or—
(i) the advance tax paid by such assessee on its current income on or before
the 15th day of June is less than fifteen per cent of the tax due on the
returned income or the amount of such advance tax paid on or before the
15th day of September is less than forty-five per cent of the tax due on the
returned income or the amount of such advance tax paid on or before the
15th day of December is less than seventy-five per cent of the tax due on
the returned income, then, the assessee shall be liable to pay simple
interest at the rate of one per cent per month for a period of three months
on the amount of the shortfall from fifteen per cent or forty-five per cent or
seventy-five per cent, as the case may be, of the tax due on the returned
income;
3288 [(i-a) any relief of tax allowed under Section 89;]
(ii) the advance tax paid by the assessee on the current income on or before
the 15th day of March is less than the tax due on the returned income,
then, the assessee shall be liable to pay simple interest at the rate of one
per cent on the amount of the shortfall from the tax due on the returned
income:
Provided that if the advance tax paid by the assessee on the current
income, on or before the 15th day of June or the 15th day of September, is
not less than twelve per cent or, as the case may be, thirty-six per cent of
the tax due on the returned income, then, the assessee shall not be liable
to pay any interest on the amount of the shortfall on those dates;]
(b) 3289 [an assessee who declares profits and gains in accordance with the
provisions of sub-section (1) of Section 44-AD or sub-section (1) of Section 44
-ADA, as the case may be], who is liable to pay advance tax under Section
208 has failed to pay such tax or the advance tax paid by the assessee on its
current income on or before the 15th day of March is less than the tax due on
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-
the returned income, then, the assessee shall be liable to pay simple interest
at the rate of one per cent on the amount of the shortfall from the tax due on
the returned income:]
Provided that nothing contained in this sub-section shall apply to any
shortfall in the payment of the tax due on the returned income where such
shortfall is on account of underestimate or failure to estimate—
(a) the amount of capital gains; or
(b) income of the nature referred to in sub-clause (ix) of clause (24) of 3290
[Section 2; or],
3291
[(c) income under the head “Profits and gains of business or profession”
in cases where the income accrues or arises under the said head for the
3292
[first time; or]]
3293 [(d) income of the nature referred to in sub-section (1) of Section 115-
BBDA,]
and the assessee has paid the whole of the amount of tax payable in
respect of income referred to in clause (a) 3294 [or clause (b) or clause (c)
3295 [or clause (d)]], as the case may be, had such income been a part of
the total income, as part of the 3296 [remaining instalments of advance tax
which are due or where no such instalments are due], by the 31st day of
March of the financial year:
3297
[Provided further that nothing contained in this sub-section shall
apply to any shortfall in the payment of the tax due on the returned income
where such shortfall is on account of increase in the rate of surcharge under
Section 2 of the Finance Act, 2000, as amended by the Taxation Laws
(Amendment) Act, 2000 (10 of 2000), and the assessee has paid the
amount of shortfall, on or before the 15th day of March, 2001 in respect of
the instalment of advance tax due on the 15th day of June, 2000, the 15th
day of September, 2000 and the 15th day of December, 2000:]
3298 [Provided also that nothing contained in this sub-section shall apply
to any shortfall in the payment of the tax due on the returned income
where such shortfall is on account of increase in the rate of surcharge under
Section 2 of the Finance Act, 2000 as amended by the Taxation Laws
(Amendment) Act, 2001 and the assessee has paid the amount of shortfall
on or before the 15th day of March, 2001 in respect of the instalment of
advance tax due on the 15th day of June, 2000, the 15th day of
September, 2000 and 15th day of December, 2000.]
3299
[Explanation.—In this section, “tax due on the returned income” means
the tax chargeable on the total income declared in the return of income
furnished by the assessee for the assessment year commencing on the 1st
day of April immediately following the financial year in which the advance tax
is paid or payable, as reduced by the amount of,—
(i) any tax deductible or collectible at source in accordance with the
provisions of Chapter XVII on any income which is subject to such
deduction or collection and which is taken into account in computing
such total income;
(ii) any relief of tax allowed under Section 90 on account of tax paid in a
country outside India;
(iii) any relief of tax allowed under Section 90-A on account of tax paid in a
(iv) any deduction, from the Indian income tax payable, allowed under
Section 91, on account of tax paid in a country outside India; and
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-
(v) any tax credit allowed to be set off in accordance with the provisions of
assessment years.
3301
[234-D. Interest on excess refund.— (1) Subject to the other provisions of
this Act, where any refund is granted to the assessee under sub-section (1) of Section
143, and—
(a) no refund is due on regular assessment; or
(b) the amount refunded under sub-section (1) of Section 143 exceeds the amount
refundable on regular assessment,
the assessee shall be liable to pay simple interest at the rate of 3302 [one-half] per cent
on the whole or the excess amount so refunded, for every month or part of a month
comprised in the period from the date of grant of refund to the date of such regular
assessment.
(2) Where, as a result of an order under Section 154 or Section 155 or Section 250
or Section 254 or Section 260 or Section 262 or Section 263 or Section 264 or an order
of the Settlement Commission under sub-section (4) of Section 245-D, the amount of
refund granted under sub-section (1) of Section 143 is held to be correctly allowed,
either in whole or in part, as the case may be, then, the interest chargeable, if any,
under sub-section (1) shall be reduced accordingly.
3303 [Explanation-1].—Where, in relation to an assessment year, an assessment is
made for the first time under Section 147 or Section 153-A, the assessment so made
shall be regarded as a regular assessment for the purposes of this section.]
FN1140 [Explanation 2.—For the removal of doubts, it is hereby declared that the
provisions of this section shall also apply to an assessment year commencing before
the 1st day of June, 2003 if the proceedings in respect of such assessment year is
completed after the said date.]
234-E. Fee for default in furnishing statements.— (1) Without prejudice to the
provisions of the Act, where a person fails to deliver or cause to be delivered a
statement within the time prescribed in sub-section (3) of Section 200 or the proviso
to sub-section (3) of Section 206-C, he shall be liable to pay, by way of fee, a sum of
two hundred rupees for every day during which the failure continues.
(2) The amount of fee referred to in sub-section (1) shall not exceed the amount of
tax deductible or collectible, as the case may be.
(3) The amount of fee referred to in sub-section (1) shall be paid before delivering
or causing to be delivered a statement in accordance with sub-section (3) of Section
200 or the proviso to sub-section (3) of Section 206-C.
(4) The provisions of this section shall apply to a statement referred to in sub-
section (3) of Section 200 or the proviso to sub-section (3) of Section 206-C which is
to be delivered or caused to be delivered for tax deducted at source or tax collected at
source, as the case may be, on or after the 1st day of July, 2012.]
3305
[234-F. Fee for default in furnishing return of income.— (1) Without
prejudice to the provisions of this Act, where a person required to furnish a return of
income under Section 139, fails to do so within the time prescribed in sub-section (1)
of the said section, he shall pay, by way of fee, a sum of,—
(a) five thousand rupees, if the return is furnished on or before the 31st day of
December of the assessment year;
(b) ten thousand rupees in any other case:
Provided that if the total income of the person does not exceed five lakh rupees,
the fee payable under this section shall not exceed one thousand rupees.
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-
(2) The provisions of this section shall apply in respect of return of income required
to be furnished for the assessment year commencing on or after the 1st day of April,
2018.]
5218
[234-G. Fee for default relating to statement or certificate.—(1) Without
prejudice to the provisions of this Act, where,—
(a) the research association, university, college or other institution referred to in
clause (ii) or clause (iii) or the company referred to in clause (iia) of sub-
section (1) of Section 35 fails to deliver or cause to be delivered a statement
within the time prescribed under clause (i), or furnish a certificate prescribed
under clause (ii) of sub-section (1-A) of that section; or
(b) the institution or fund fails to deliver or cause to be delivered a statement
within the time prescribed under clause (viii) of sub-section (5) of Section 80-
G, or furnish a certificate prescribed under clause (ix) of the said sub-section,
it shall be liable to pay, by way of fee, a sum of two hundred rupees for every day
during which the failure continues.
(2) The amount of fee referred to in sub-section (1) shall,—
(a) not exceed the amount in respect of which the failure referred to therein has
occurred;
(b) be paid before delivering or causing to be delivered the statement or before
furnishing the certificate referred to in sub-section (1).]
235. [Omitted]
236. Relief to company in respect of dividend paid out of past taxed profits.
— (1) Where in respect of any previous year relevant to the assessment year
commencing after the 31st day of March, 1960, an Indian company or a company
which has made the prescribed arrangements for the declaration and payment of
dividends within India, pays any dividend wholly or partly out of its profits and gains
actually charged to income tax for any assessment year ending before the 1st day of
April, 1960 and deducts tax therefrom in accordance with the provisions of Chapter
XVII-B, credit shall be given to the company against the income tax, if any, payable
by it on the profits and gains of the previous year during which the dividend is paid, of
a sum calculated in accordance with the provisions of sub-section (2), and, where the
amount of credit so calculated exceeds the income tax payable by the company as
aforesaid, the excess shall be refunded.
(2) The amount of income tax to be given as credit under sub-section (1) shall be a
sum equal to ten per cent of so much of the dividends referred to in sub-section (1) as
are paid out of the profits and gains actually charged to income tax for any
assessment year ending before the 1st day of April, 1960.
Explanation 1.—For the purposes of this section, the aggregate of the dividends
declared by a company in respect of any previous year shall be deemed first to have
come out of the distributable income of that previous year and the balance, if any, out
of the undistributed part of the distributable income of one or more previous years
immediately preceding that previous year as would be just sufficient to cover the
amount of such balance and as has not likewise been taken into account for covering
such balance of any other previous year.
Explanation 2.—The expression “distributable income of any previous year” shall
mean the total income as computed before making any deduction under Chapter VI-A
assessed for that year as reduced by—
(i) the amount of tax payable by the company in respect of its total income;
(ii) the amount of any other tax levied under any law for the time being in force
on the company by the Government or by a local authority in excess of the
amount, if any, which has been allowed in computing the total income;
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-
(iii) any sum with reference to which a deduction is allowable to the company
under the provisions of Section 80-G; and
(iv) in the case of a banking company, the amount actually transferred to a
reserve fund under Section 17 of the Banking Companies Act, 1949 (10 of
1949),
and as increased by—
(a) any profits and gains or receipts of the company, not included in its total
income (as computed before making any deduction under Chapter VI-A); and
(b) any amount attributable to any allowance made in computing the profits and
gains of the company for purposes of assessment, which the company has not
taken into account in its profit and loss account.
236-A. Relief to certain charitable institutions or funds in respect of certain
dividends.— (1) Where seventy-five per cent of the share capital of any company is
throughout the previous year beneficially held by an institution or fund established in
India for a charitable purpose the income from dividend whereof is exempt under
Section 11, credit shall be given to the institution or fund against the tax, if any,
payable by it, of a sum calculated in accordance with the provisions of sub-section (2),
in respect of its income from dividends (other than dividends on preference shares)
declared or distributed during the previous year relevant to any assessment year
beginning on or after the 1st day of April, 1966, by such company and where the
amount of credit so calculated exceeds the tax, if any, payable by the said institution
or fund, the excess shall be refunded.
(2) The amount to be given as credit, under sub-section (1) shall be a sum which
bears to the amount of the tax payable by the company under the provisions of the
annual Finance Act with reference to the relevant amount of distributions of dividends
by it the same proportion as the amount of the dividends (other than dividends on
preference shares) received by the institution or fund from the company bears to the
total amount of dividends (other than dividends on preference shares) declared or
distributed by the company during the previous year.
Explanation.—In sub-section (2) of this section and in Section 280-ZB, the
expression “the relevant amount of distributions of dividends” has the meaning
assigned to it in the Finance Act of the relevant year.
237. Refunds.— If any person satisfies the Assessing Officer that the amount of
tax paid by him or on his behalf or treated as paid by him or on his behalf for any
assessment year exceeds the amount with which he is properly chargeable under this
Act for that year, he shall be entitled to a refund of the excess.
238. Person entitled to claim refund in certain special cases.— (1) Where the
income of one person is included under any provision of this Act in the total income of
any other person, the latter alone shall be entitled to a refund under this Chapter in
respect of such income.
3306 [(1-A) Where the value of fringe benefits provided or deemed to have been
provided by one employer is included under any provisions of Chapter XII-H in the
value of fringe benefits provided or deemed to have been provided by any other
employer, the latter alone shall be entitled to a refund under this chapter in respect of
such fringe benefits.]
(2) Where through death, incapacity, insolvency, liquidation or other cause, a
person is unable to claim or receive any refund due to him, his legal representative or
the trustee or guardian or receiver, as the case may be, shall be entitled to claim or
receive such refund for the benefit of such person or his estate.
239. Form of claim for refund and limitation.— (1) Every claim for refund under
this Chapter shall be made 3307 [by furnishing return in accordance with the provisions
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-
of Section 139].
(2) 3308 [* * *]
240. Refund on appeal, etc.— Where, as a result of any order passed in appeal or
other proceeding under this Act, refund of any amount becomes due to the assessee,
the Assessing Officer shall, except as otherwise provided in this Act, refund the
amount to the assessee without his having to make any claim in that behalf:
Provided that where, by the order aforesaid,—
(a) an assessment is sent aside or cancelled and an order of fresh assessment is
directed to be made, the refund, if any, shall become due only on the making
of such fresh assessment;
(b) the assessment is annulled, the refund shall become due only of the amount,
if any, of the tax paid in excess of the tax chargeable on the total income
returned by the assessee.
241. Power to withhold refund in certain cases.—3309 [* * *]
3310 [241-A. Withholding of refund in certain cases.— For every assessment year
commencing on or after the 1st day of April, 2017, where refund of any amount
becomes due to the assessee under the provisions of sub-section (1) of Section 143
and the Assessing Officer is of the opinion, having regard to the fact that a notice has
been issued under sub-section (2) of Section 143 in respect of such return, that the
grant of the refund is likely to adversely affect the revenue, he may, for reasons to be
recorded in writing and with the previous approval of the Principal Commissioner or
Commissioner, as the case may be, withhold the refund up to the date on which the
assessment is made.]
242. Correctness of assessment not to be questioned.— In a claim under this
Chapter, it shall not be open to the assessee to question the correctness of any
assessment or other matter decided which has become final and conclusive or ask for
a review of the same, and the assessee shall not be entitled to any relief on such claim
except refund of tax wrongly paid or paid in excess.
243. Interest on delayed refunds.— (1) If the Assessing Officer does not grant
the refund,—
(a) in any case where the total income of the assessee does not consist solely of
income from interest on securities or dividends, within three months from the
end of the month in which the total income is determined under this Act, and
(b) in any other case, within three months from the end of the month in which
the claim for refund is made under this Chapter,
the Central Government shall pay the assessee simple interest at fifteen per cent per
annum on the amount directed to be refunded from the date immediately following
the expiry of the period of three months aforesaid to the date of the order granting the
refund.
Explanation.—If the delay in granting the refund within the period of three months
aforesaid is attributable to the assessee, whether wholly or in part, the period of the
delay attributable to him shall be excluded from the period for which interest is
payable.
(2) Where any question arises as to the period to be excluded for the purposes of
calculation of interest under the provisions of this section, such question shall be
determined by the 3311 [Principal Chief Commissioner or Chief Commissioner] or 3312
[Principal Commissioner or Commissioner] whose decision shall be final.
(3) The provisions of this section shall not apply in respect of any assessment for
the assessment year commencing on the 1st day of April, 1989 or any subsequent
assessment years.
244. Interest on refund where no claim is needed.— (1) Where a refund is due
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-
to the assessee in pursuance of an order referred to in Section 240 and the Assessing
Officer does not grant the refund within a period of three months from the end of the
month in which such order is passed, the Central Government shall pay to the
assessee simple interest at fifteen per cent per annum on the amount of refund due
from the date immediately following the expiry of the period of three months aforesaid
to the date on which the refund is granted.
(1-A) Where the whole or any part of the refund referred to in sub-section (1) is
due to the assessee, as a result of any amount having been paid by him after the 31st
day of March, 1975, in pursuance of any order of assessment or penalty and such
amount or any part thereof having been found in appeal or other proceeding under this
Act to be in excess of the amount which such assessee is liable to pay as tax or
penalty, as the case may be, under this Act, the Central Government shall pay to such
assessee simple interest at the rate specified in sub-section (1) on the amount so
found to be in excess from the date on which such amount was paid to the date on
which the refund is granted:
Provided that where the amount so found to be in excess was paid in instalments,
such interest shall be payable on the amount of each such instalment or any part of
such instalment, which was in excess, from the date on which such instalment was
paid to the date on which the refund is granted:
Provided further that no interest under this sub-section shall be payable for a
period of one month from the date of the passing of the order in appeal or other
proceeding:
Provided also that where any interest is payable to an assessee under this sub-
section, no interest under sub-section (1) shall be payable to him in respect of the
amount so found to be in excess.
(2) Where a refund is withheld under the provisions of Section 241, the Central
Government shall pay interest at the aforesaid rate on the amount of refund ultimately
determined to be due as a result of the appeal or further proceeding for the period
commencing after the expiry of three months from the end of the month in which the
order referred to in Section 241 is passed to the date the refund is granted.
(3) The provisions of this section shall not apply in respect of any assessment for
the assessment year commencing on the 1st day of April, 1989 or any subsequent
assessment years.
244-A. Interest on refunds.— (1) Where refund of any amount becomes due to
the assessee under this Act, he shall, subject to the provisions of this section, be
entitled to receive, in addition to the said amount, simple interest thereon calculated
in the following manner, namely:—
3313 [(a) where the refund is out of any tax collected at source under Section 206-
C or paid by way of advance tax or treated as paid under Section 199, during
the financial year immediately preceding the assessment year, such interest
shall be calculated at the rate of one-half per cent for every month or part of a
month comprised in the period,—
(i) from the 1st day of April of the assessment year to the date on which the
refund is granted, if the return of income has been furnished on or before
the due date specified under sub-section (1) of Section 139; or
(ii) from the date of furnishing of return of income to the date on which the
refund is granted, in a case not covered under sub-clause (i);
(aa) where the refund is out of any tax paid under Section 140-A, such interest
shall be calculated at the rate of one-half per cent for every month or part of a
month comprised in the period, from the date of furnishing of return of income
or payment of tax, whichever is later, to the date on which the refund is
granted:
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-
Provided that no interest under clause (a) or clause (aa) shall be payable, if
the amount of refund is less than ten per cent of the tax as determined under
sub-section (1) of Section 143 or on regular assessment;]
(b) in any other case, such interest shall be calculated at the rate of 3314 [one-
half] per cent for every month or part of a month comprised in the period or
periods from the date or, as the case may be, dates of payment of tax or
penalty to the date on which the refund is granted.
Explanation.—For the purposes of this clause, “date of payment of tax or penalty”
means the date on and from which the amount of tax or penalty specified in the notice
of demand issued under Section 156 is paid in excess of such demand.
3315
[(1-A) In a case where a refund arises as a result of giving effect to an order
under Section 250 or Section 254 or Section 260 or Section 262 or Section 263 or
Section 264, wholly or partly, otherwise than by making a fresh assessment or
reassessment, the assessee shall be entitled to receive, in addition to the interest
payable under sub-section (1), an additional interest on such amount of refund
calculated at the rate of three per cent per annum, for the period beginning from the
date following the date of expiry of the time allowed under sub-section (5) of Section
153 to the date on which the refund is granted.]
3316 [(1-B) Where refund of any amount becomes due to the deductor in respect of
any amount paid to the credit of the Central Government under Chapter XVII-B, such
deductor shall be entitled to receive, in addition to the said amount, simple interest
thereon calculated at the rate of one-half per cent. for every month or part of a month
comprised in the period, from the date on which—
(a) claim for refund is made in the prescribed form; or
(b) tax is paid, where refund arises on account of giving effect to an order
under Section 250 or Section 254 or Section 260 or Section 262,
to the date on which the refund is granted.]
(2) If the proceedings resulting in the refund are delayed for reasons attributable to
the assessee 3317 [or the deductor, as the case may be,], whether wholly or in part, the
period of the delay so attributable to him shall be excluded from the period for which
interest is payable 3318 [under sub-sections (1) or (1-A) 3319 [or (1-B)]], and where any
question arises as to the period to be excluded, it shall be decided by the 3320 [Principal
Chief Commissioner or Chief Commissioner] or 3321 [Principal Commissioner or
Commissioner] whose decision thereon shall be final.
(3) Where, as a result of an order under 3322 [sub-section (3) of Section 115-WE or
Section 115-WF or Section 115-WG or] sub-section (3) of Section 143 or Section 144
or Section 147 or Section 154 or Section 155 or Section 250 or Section 254 or Section
260 or Section 262 or Section 263 or Section 264 or an order of the Settlement
Commission under sub-section (4) of Section 245-D, the amount on which interest
was payable under sub-section (1) has been increased or reduced, as the case may
be, the interest shall be increased or reduced accordingly, and in a case where the
interest is reduced, the Assessing Officer shall serve on the assessee a notice of
demand in the prescribed form specifying the amount of the excess interest paid and
requiring him to pay such amount; and such notice of demand shall be deemed to be
a notice under Section 156 and the provisions of this Act shall apply accordingly.
assessment year commencing on the 1st day of April, 1989, and subsequent
assessment years:
3323
[Provided that in respect of assessment of fringe benefits, the provisions of this
sub-section shall have effect as if for the figures “1989”, the figures “2006” had been
substituted.]
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-
245. Set off of refunds against tax remaining payable.— Where under any of
the provisions of this Act a refund is found to be due to any person, the Assessing
Officer, Deputy Commissioner (Appeals), 3324
Commissioner] (Appeals) or 3325
[Principal Chief Commissioner or Chief Commissioner]
or FN1141[Principal Commissioner or Commissioner], as the case may be, may, in lieu of
payment of the refund, set off the amount to be refunded or any part of that amount,
against the sum, if any, remaining payable under this Act by the person to whom the
refund is due, after giving an intimation in writing to such person of the action
proposed to be taken under this section.
245-A. Definitions.— In this Chapter, unless the context otherwise requires,—
(a) “Bench” means a Bench of the Settlement Commission;
3327
[(b) “case” means any proceeding for assessment under this Act, of any
person in respect of any assessment year or assessment years which may be
pending before an Assessing Officer on the date on which an application under
sub-section (1) of Section 245-C is made:
3328 [* * *]
Explanation.—For the purposes of this clause—

3329
[(i) a proceeding for assessment or reassessment or re-computation under
Section 147 shall be deemed to have commenced—
(a) from the date on which a notice under Section 148 is issued for any
assessment year;
(b) from the date of issuance of the notice referred to in sub-clause (a), for
any other assessment year or assessment years for which a notice under
Section 148 has not been issued, but such notice could have been issued
on such date, if the return of income for the other assessment year or
assessment years has been furnished under Section 139 or in response to a
notice under Section 142;]
(ii) 3330 [* * *];
3331 [(iii) a proceeding for making fresh assessment in pursuance of an order
under Section 254 or Section 263 or Section 264, setting aside or

cancelling an assessment shall be deemed to have commenced from the
date on which such order, setting aside or cancelling an assessment was
passed;]
3332 [(iii-a)
a proceeding for assessment or reassessment for any of the
assessment years, referred to in clause (b) of sub-section (1) of Section
153-A in case of a person referred to in Section 153-A or Section 153-C,
shall be deemed to have commenced on the date of issue of notice
initiating such proceedings and concluded on the date on which the
assessment is made;]
(iv) a proceeding for assessment for any assessment year, other than the
proceedings of assessment or reassessment referred to in 3333 [clause (i) or
clause (iii) or clause (iii-a)], shall be deemed to have commenced 3334 [from
the date on which the return of income for that assessment year is
furnished under Section 139 or in response to a notice served under
Section 142 and concluded on the date on which the assessment is made;
or on the expiry of 3335 [the time specified for making assessment under sub
-section (1) of Section 153], in case where no assessment is made];]
(c) “Chairman” means the Chairman of the Settlement Commission;
(d) “income tax authority” means an income tax authority specified in Section
116;
(e) “Member” means a Member of the Settlement Commission, and includes the
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-
Chairman and a Vice-Chairman;
(f) “Settlement Commission” means the Income Tax Settlement Commission
constituted under Section 245-B;
(g) “Vice-Chairman” means a Vice-Chairman of the Settlement Commission 3336
[and includes a Member who is senior amongst the Members of a Bench].
245-B. Income Tax Settlement Commission.— (1) The Central Government
shall constitute a Commission to be called the Income Tax Settlement Commission for
the settlement of cases under this Chapter.
(2) The Settlement Commission shall consist of a Chairman and as many Vice-
Chairmen and other members as the Central Government thinks fit and shall function
within the Department of the Central Government dealing with direct taxes.
(2-A) [Omitted w.e.f. 10-9-1986]
(3) The Chairman, Vice-Chairman and other Members of the Settlement
Commission shall be appointed by the Central Government from amongst persons of
integrity and outstanding ability, having special knowledge of, and experience in,
problems relating to direct taxes and business accounts:
Provided that, where a member of the Board is appointed as the Chairman, Vice-
Chairman or as a Member of the Settlement Commission, he shall cease to be a
member of the Board.
245-BA. Jurisdiction and powers of Settlement Commission.— (1) Subject to
the other provisions of this Chapter, the jurisdiction, powers and authority of the
Settlement Commission may be exercised by Benches thereof.
(2) Subject to the other provisions of this section, a Bench shall be presided over by
the Chairman or a Vice-Chairman and shall consist of two other Members.
(3) The Bench for which the Chairman is the Presiding Officer shall be the principal
Bench and other Benches shall be known as additional Benches.
(4) Notwithstanding anything contained in sub-sections (1) and (2), the Chairman
may authorise the Vice-Chairman or other Member appointed to one Bench to
discharge also the functions of the Vice-Chairman or, as the case may be, other
Member of another Bench.
and subject to any rules that may be made in this behalf, when one of the persons
constituting a Bench (whether such person be the Presiding Officer or other Member of
the Bench) is unable to discharge his functions owing to absence, illness or any other
cause or in the event of the occurrence of any vacancy either in the office of the
Presiding Officer or in the office of one or the other Members of the Bench, the
remaining two persons may function as the Bench and if the Presiding Officer of the
Bench is not one of the remaining two persons, the senior among the remaining
persons shall act as the Presiding Officer of the Bench:
Provided that if at any stage of the hearing of any such case or matter, it appears
to the Presiding Officer that the case or matter is of such a nature that it ought to be
heard of by a Bench consisting of three Members, the case or matter may be referred
by the Presiding Officer of such Bench to the Chairman for transfer to such Bench as
the Chairman may deem fit.
3337 [(5-A) Notwithstanding anything contained in the foregoing provisions of this
section, the Chairman may, for the disposal of any particular case, constitute a Special
Bench consisting of more than three Members.]
(6) Subject to the other provisions of this Chapter, the places at which the principal
Bench and the additional Benches shall ordinarily sit shall be such as the Central
Government may, by notification in the Official Gazette, specify 3338 [and the Special
Bench shall sit at a place to be fixed by the Chairman].
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-
245-BB. Vice-Chairman to act as Chairman or to discharge his functions in
certain circumstances.— (1) In the event of the occurrence of any vacancy in the
office of the Chairman by reason of his death, resignation or otherwise, the Vice-
Chairman or, as the case may be, such one of the Vice-Chairmen as the Central
Government may, by notification in the Official Gazette, authorise in this behalf, shall
act as the Chairman until the date on which a new Chairman, appointed in accordance
with the provisions of this Chapter to fill such vacancy, enters upon his office.
(2) When the Chairman is unable to discharge his functions owing to absence,
illness or any other cause, the Vice-Chairman or, as the case may be, such one of the
Vice-Chairmen as the Central Government may, by notification in the Official Gazette,
authorise in this behalf, shall discharge the functions of the Chairman until the date on
which the Chairman resumes his duties.
245-BC. Power of Chairman to transfer cases from one Bench to another.—
On the application of the assessee or the 3339 [Principal Chief Commissioner or Chief
Commissioner] or 3340 [Principal Commissioner or Commissioner] and after notice to
them, and after hearing such of them as he may desire to be heard, or on his own
motion without such notice, the Chairman may transfer any case pending before one
Bench, for disposal, to another Bench.
245-BD. Decision to be by majority.— If the Members of a Bench differ in
opinion on any point, the point shall be decided according to the opinion of the
majority, if there is a majority, but if the Members are equally divided, they shall state
the point or points on which they differ, and make a reference to the Chairman who
shall either hear the point or points himself or refer the case for hearing on such point
or points by one or more of the other Members of the Settlement Commission and
such point or points shall be decided according to the opinion of the majority of the
Members of the Settlement Commission who have heard the case, including those who
first heard it.
245-C. Application for settlement of cases.— (1) An assessee may, at any stage
of a case relating to him, make an application in such form and in such manner as
may be prescribed, and containing a full and true disclosure of his income which has
not been disclosed before the Assessing Officer, the manner in which such income has
been derived, the additional amount of income tax payable on such income and such
other particulars as may be prescribed, to the Settlement Commission to have the
case settled and any such application shall be disposed of in the manner hereinafter
provided:
3341 [Provided that no such application shall be made unless,—
(i) in a case where proceedings for assessment or reassessment for any of the
assessment years referred to in clause (b) of sub-section (1) of Section 153-A
or clause (b) of sub-section (1) of Section 153-B in case of a person referred
to in Section 153-A or Section 153-C have been initiated, the additional
amount of Income Tax payable on the income disclosed in the application
exceeds fifty lakh rupees,
3342
[(i-a) in a case where—
(A) the applicant is related to the person referred to in clause (i) who has filed
an application (hereafter in this sub-section referred to as “specified
person”); and
(B) the proceedings for assessment or re-assessment for any of the
assessment years referred to in clause (b) of sub-section (1) of Section 153
-A or clause (b) of sub-section (1) of Section 153-B in case of the
applicant, being a person referred to in Section 153-A or Section 153-C,
have been initiated,
the additional amount of income-tax payable on the income disclosed in the
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application exceeds ten lakh rupees,]
(ii) in any other case, the additional amount of Income Tax payable on the
income disclosed in the application exceeds ten lakh rupees, and such tax and
the interest thereon, which would have been paid under the provisions of this
Act had the income disclosed in the application been declared in the return of
income before the Assessing Officer on the date of application, has been paid
on or before the date of making the application and the proof of such payment
is attached with the application.]
3343 [Explanation.—For the purposes of clause (i-a),—
(a) the applicant, in relation to the specified person referred to in clause (i-a),
means,—
(i) where the specified person is an individual, any relative of the specified
person;
(ii) where the specified person is a company, firm, association of persons or
Hindu undivided family, any director of the company, partner of the firm, or
member of the association or family, or any relative of such director,
partner or member;
(iii) any individual who has a substantial interest in the business or profession
of the specified person, or any relative of such individual;
(iv) a company, firm, association of persons or Hindu undivided family having
a substantial interest in the business or profession of the specified person
or any director, partner or member of such company, firm, association or
family, or any relative of such director, partner or member;
(v) a company, firm, association of persons or Hindu undivided family of which
a director, partner or member, as the case may be, has a substantial
interest in the business or profession of the specified person; or any
director, partner or member of such company, firm, association or family or
any relative of such director, partner or member;
(vi) any person who carries on a business or profession,—
(A) where the specified person being an individual, or any relative of such
specified person, has a substantial interest in the business or profession
of that person; or
(B) where the specified person being a company, firm, association of
persons or Hindu undivided family, or any director of such company,
partner of such firm or member of the association or family, or any
relative of such director, partner or member, has a substantial interest in
the business or profession of that person;
(b) a person shall be deemed to have a substantial interest in a business or
profession, if—
(A) in a case where the business or profession is carried on by a company,
such person is, 3344 [on the date of search], the beneficial owner of shares
(not being shares entitled to a fixed rate of dividend, whether with or
without a right to participate in profits) carrying not less than twenty per
cent of the voting power; and
(B) in any other case, such person is, FN1142[on the date of search], beneficially
entitled to not less than twenty per cent of the profits of such business or
profession.]
(1-A) For the purposes of sub-section (1) of this section 3346 [* * *], the additional
amount of income tax payable in respect of the income disclosed in an application
made under sub-section (1) of this section shall be the amount calculated in
accordance with the provisions of sub-sections (1-B) to (1-D).
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-
3347
[(1-B) Where the income disclosed in the application relates to only one
previous year,—
(i) if the applicant has not furnished a return in respect of the total income of
that year, then, tax shall be calculated on the income disclosed in the
application as if such income were the total income;
(ii) if the applicant has furnished a return in respect of the total income of that
year, tax shall be calculated on the aggregate of the total income returned and
the income disclosed in the application as if such aggregate were the total
income.]
(1-C) The additional amount of income tax payable in respect of the income
disclosed in the application relating to the previous year referred to in sub-section (1-
B) shall be,—
(a) in a case referred to in clause (i) of that sub-section, the amount of tax
calculated under that clause;
(b) in a case referred to in clause (ii) of that sub-section, the amount of tax
calculated under that clause as reduced by the amount of tax calculated on
the total income returned for that year;
(c) 3348 [* * *]
(1-D) Where the income disclosed in the application relates to more than one
previous year, the additional amount of income tax payable in respect of the income
disclosed for each of the years shall first be calculated in accordance with the
provisions of sub-sections (1-B) and (1-C) and the aggregate of the amount so arrived
at in respect of each of the years for which the application has been made under sub-
section (1) shall be the additional amount of income tax payable in respect of the
income disclosed in the application.
3349
[* * *]
(2) Every application made under sub-section (1) shall be accompanied by such
fees as may be prescribed.
(3) An application made under sub-section (1) shall not be allowed to be withdrawn
by the applicant.
3350 [(4) An assessee shall, on the date on which he makes an application under sub-
section (1) to the Settlement Commission, also intimate the Assessing Officer in the
prescribed manner of having made such application to the said Commission.]
245-D. Procedure on receipt of an application under Section 245-C.—3351 [(1)
On receipt of an application under Section 245-C, the Settlement Commission shall,
within seven days from the date of receipt of the application, issue a notice to the
applicant requiring him to explain as to why the application made by him be allowed
to be proceeded with, and on hearing the applicant, the Settlement Commission shall,
within a period of fourteen days from the date of the application, by an order in
writing, reject the application or allow the application to be proceeded with:
Provided that where no order has been passed within the aforesaid period by the
Settlement Commission, the application shall be deemed to have been allowed to be
proceeded with.]
3352 [(1-A) * * *]
(2) A copy of every order under sub-section (1) shall be sent to the applicant and to
the 3353 [Principal Commissioner or Commissioner].
3354 [(2-A) Where an application was made under Section 245-C before the 1st day
of June, 2007, but an order under the provisions of sub-section (1) of this section, as
they stood immediately before their amendment by the Finance Act, 2007, has not
been made before the 1st day of June, 2007, such application shall be deemed to have
been allowed to be proceeded with if the additional tax on the income disclosed in
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-
such application and the interest thereon is paid on or before the 31st day of July,
2007.
Explanation.—In respect of the application referred to in this sub-section, the 31st
day of July, 2007 shall be deemed to be the date of the order of rejection or allowing
the application to be proceeded with under sub-section (1).
(2-B) The Settlement Commission shall,—
(i) in respect of an application which is allowed to be proceeded with under sub-
section (1), within thirty days from the date on which the application was
made; or
(ii) in respect of an application referred to in sub-section (2-A) which is deemed
to have been allowed to be proceeded with under that sub-section, on or
before the 7th day of August, 2007,
call for a report from the FN1143[Principal Commissioner or Commissioner], and the FN1144
[Principal Commissioner or Commissioner] shall furnish the report within a period of
thirty days of the receipt of communication from the Settlement Commission.
(2-C) Where a report of the FN1145[Principal Commissioner or Commissioner] called
for under sub-section (2-B) has been furnished within the period specified therein, the
Settlement Commission may, on the basis of the report and within a period of fifteen
days of the receipt of the report, by an order in writing, declare the application in
question as invalid, and shall send the copy of such order to the applicant and the
FN1146 [Principal Commissioner or Commissioner]:
Provided that an application shall not be declared invalid unless an opportunity has
been given to the applicant of being heard:
Provided further that where the FN1147[Principal Commissioner or Commissioner] has
not furnished the report within the aforesaid period, the Settlement Commission shall
proceed further in the matter without the report of the FN1148[Principal Commissioner or
Commissioner].
(2-D) Where an application was made under sub-section (1) of Section 245-C
before the 1st day of June, 2007 and an order under the provisions of sub-section (1)
of this section, as they stood immediately before their amendment by the Finance Act,
2007, allowing the application to have been proceeded with, has been passed before
the 1st day of June, 2007, but an order under the provisions of sub-section (4), as
they stood immediately before their amendment by the Finance Act, 2007, was not
passed before the 1st day of June, 2007, such application shall not be allowed to be
further proceeded with unless the additional tax on the income disclosed in such
application and the interest thereon, is, notwithstanding any extension of time already
granted by the Settlement Commission, paid on or before the 31st day of July, 2007.]
3361 [(3) The Settlement Commission, in respect of—
(i) an application which has not been declared invalid under sub-section (2-C);
or
(ii) an application referred to in sub-section (2-D) which has been allowed to be
further proceeded with under that sub-section,
may call for the records from the FN1149[Principal Commissioner or Commissioner] and
after examination of such records, if the Settlement Commission is of the opinion that
any further enquiry or investigation in the matter is necessary, it may direct the FN1150
[Principal Commissioner or Commissioner] to make or cause to be made such further
enquiry or investigation and furnish a report on the matters covered by the application
and any other matter relating to the case, and the FN1151[Principal Commissioner or
Commissioner] shall furnish the report within a period of ninety days of the receipt of
communication from the Settlement Commission:
Provided that where the FN1152[Principal Commissioner or Commissioner] does not
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-
furnish the report within the aforesaid period, the Settlement Commission may
proceed to pass an order under sub-section (4) without such report.
(4) After examination of the records and the report of the FN1153[Principal
Commissioner or Commissioner], if any, received under—
(i) sub-section (2-B) or sub-section (3), or
(ii) the provisions of sub-section (1) as they stood immediately before their
amendment by the Finance Act, 2007,
and after giving an opportunity to the applicant and to the FN1154[Principal
Commissioner or Commissioner] to be heard, either in person or through a
representative duly authorised in this behalf, and after examining such further
evidence as may be placed before it or obtained by it, the Settlement Commission
may, in accordance with the provisions of this Act, pass such order as it thinks fit on
the matters covered by the application and any other matter relating to the case not
covered by the application, but referred to in the report of the FN1155[Principal
Commissioner or Commissioner].
(4-A) The Settlement Commission shall pass an order under sub-section (4)—
(i) in respect of an application referred to in sub-section (2-A) or sub-section (2-
D), on or before the 31st day of March, 2008;
(ii) in respect of an application made on or after the 1st day of June, 2007 3369
[but before the 1st day of June, 2010], within twelve months from the end of
the month in which the application was made.]
3370 [(iii) in respect of an application made on or after the 1st day of June, 2010,
within eighteen months from the end of the month in which the application
was made.]
(5) Subject to the provisions of Section 245-BA, the materials brought on record
before the Settlement Commission shall be considered by the Members of the Bench
concerned before passing any order under sub-section (4) and, in relation to the
passing of such order, the provisions of Section 245-BD shall apply.
(6) Every order passed under sub-section (4) shall provide for the terms of
settlement including any demand by way of tax, penalty or interest the manner in
which any sum due under the settlement shall be paid and all other matters to make
the settlement effective and shall also provide that the settlement shall be void if it is
subsequently found by the Settlement Commission that it has been obtained by fraud
or misrepresentation of facts.
(6-A) Where any tax payable in pursuance of an order under sub-section (4) is not
paid by the assessee within thirty-five days of the receipt of a copy of the order by
him, then whether or not the Settlement Commission has extended the time for
payment of such tax or has allowed payment thereof by instalments, the assessee
shall be liable to pay simple interest at 3371 [one and one-fourth per cent for every
month or part of a month] on the amount remaining unpaid from the date of expiry of
the period of thirty-five days aforesaid.
3372 [(6-B) The Settlement Commission may, with a view to rectifying any mistake
apparent from the record, amend any order passed by it under sub-section (4)—
(a) at any time within a period of six months from the end of the month in which
the order was passed; or
(b) at any time within the period of six months from the end of the month in
which an application for rectification has been made by the Principal
Commissioner or the Commissioner or the applicant, as the case may be:
Provided that no application for rectification shall be made by the Principal
Commissioner or the Commissioner or the applicant after the expiry of six
months from the end of the month in which an order under sub-section (4) is
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-
passed by the Settlement Commission:
Provided further that an amendment which has the effect of modifying the
liability of the applicant shall not be made under this sub-section unless the
Settlement Commission has given notice to the applicant and the Principal
Commissioner or Commissioner of its intention to do so and has allowed the
applicant and the Principal Commissioner or Commissioner an opportunity of
being heard.]
(7) Where a settlement becomes void as provided under sub-section (6), the
proceedings with respect to the matters covered by the settlement shall be deemed to
have been revived from the stage at which the application was allowed to be
proceeded with by the Settlement Commission and the income tax authority
concerned, may, notwithstanding anything contained in any other provision of this Act,
complete such proceedings at any time before the expiry of two years from the end of
the financial year in which the settlement became void.
(8) For the removal of doubts, it is hereby declared that nothing contained in
Section 153 shall apply to any order passed under sub-section (4) or to any order of
assessment, reassessment or recomputation required to be made by the Assessing
Officer in pursuance of any directions contained in such order passed by the
Settlement Commission and nothing contained in the proviso to sub-section (1) of
Section 186 shall apply to the pursuance of any such directions as aforesaid.
245-DD. Power of Settlement Commission to order provisional attachment
to protect revenue.— (1) Where during the pendency of any proceeding before it,
the Settlement Commission is of the opinion that for the purpose of protecting the
interests of the revenue it is necessary so to do, it may, by order, attach provisionally
any property belonging to the applicant in the manner provided in the Second
Schedule:
Provided that where a provisional attachment made under Section 281-B is
pending immediately before an application is made under Section 245-C, an order
under this sub-section shall continue such provisional attachment up to the period up
to which an order made under Section 281-B would have continued if such application
had not been made:
Provided further that where the Settlement Commission passes an order under
this sub-section after the expiry of the period referred to in the preceding proviso, the
provisions of sub-section (2) shall apply to such order as if the said order had
originally been passed by the Settlement Commission.
(2) Every provisional attachment made by the Settlement Commission under sub-
section (1) 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):
Provided that the Settlement Commission may, for reasons to be recorded in
writing, extend the aforesaid period by such further period or periods as it thinks fit
3373 [* * *].
245-E. Power of Settlement Commission to reopen completed proceedings.

— If the Settlement Commission is of the opinion (the reasons for such opinion to be
recorded by it in writing) that, for the proper disposal of the case pending before it, it
is necessary or expedient to reopen any proceeding connected with the case but which
has been completed under this Act by any income tax authority before the application
under Section 245-C was made, it may, with the concurrence of the applicant, reopen
such proceeding and pass such order thereon as it thinks fit, as if the case in relation
to which the application for settlement had been made by the applicant under that
section covered such proceeding also:
Provided that no proceeding shall be reopened by the Settlement Commission
under this section if the period between the end of the assessment year to which such
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-
a proceeding relates and the date of application for settlement under Section 245-C
exceeds nine years:
3374 [Provided further that no proceeding shall be reopened by the Settlement
Commission under this section in a case where an application under Section 245-C is
made on or after the 1st day of June, 2007.]
245-F. Power and procedure of Settlement Commission.— (1) In addition to
the powers conferred on the Settlement Commission under this Chapter, it shall have
all the powers which are vested in an income tax authority under this Act.
(2) Where an application made under Section 245-C has been allowed to be
proceeded with under Section 245-D, the Settlement Commission shall, until an order
is passed under sub-section (4) of Section 245-D, have, subject to the provisions of
sub-section (3) of that section, exclusive jurisdiction to exercise the powers and
perform the functions of an income tax authority under this Act in relation to the case:
3375 [Provided that where an application has been made under Section 245-C on or
after the 1st day of June, 2007, the Settlement Commission shall have such exclusive
jurisdiction from the date on which the application was made:
Provided further that where—
(i) an application made on or after the 1st day of June, 2007, is rejected under
sub-section (1) of Section 245-D; or
(ii) an application is not allowed to be proceeded with under sub-section (2-A) of
Section 245-D, or, as the case may be, is declared invalid under sub-section
(2-C) of that section; or
(iii) an application is not allowed to be further proceeded with under sub-section
(2-D) of Section 245-D,
the Settlement Commission, in respect of such application shall have such exclusive
jurisdiction up to the date on which the application is rejected, or, not allowed to be
proceeded with, or, declared invalid, or, not allowed to be further proceeded with, as
the case may be.]
(3) Notwithstanding anything contained in sub-section (2) and in the absence of
any express direction to the contrary by the Settlement Commission, nothing
contained in this section shall affect the operation of any other provision of this Act
requiring the applicant to pay tax on the basis of self-assessment in relation to the
matters before the Settlement Commission.
(4) For the removal of doubts, it is hereby declared that, in the absence of any
express direction by the Settlement Commission to the contrary, nothing in this
Chapter shall affect the operation of the provisions of this Act in so far as they relate to
any matters other than those before the Settlement Commission.
(5) [Omitted]
(6) [Omitted]
(7) The Settlement Commission shall, subject to the provisions of this Chapter,
have power to regulate its own procedure and the procedure of Benches thereof in all
matters arising out of the exercise of its powers or of the discharge of its functions,
including the places at which the Benches shall hold their sittings.
245-G. Inspection, etc., of reports.— No person shall be entitled to inspect, or
obtain copies of any reports made by any income tax authority to the Settlement
Commission; but, the Settlement Commission may, in its discretion, furnish copies
thereof to any such person on an application made to it in this behalf and on payment
of the prescribed fee:
Provided that, for the purpose of enabling any person whose case is under
consideration to rebut any evidence brought on record against him in any such report,
the Settlement Commission shall, on an application made in this behalf, and on
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-
payment of the prescribed fee by such person, furnish him with a certified copy of any
such report or part thereof relevant for the purpose.
245-H. Power of Settlement Commission to grant immunity from
prosecution and penalty.— (1) The Settlement Commission may, if it is satisfied
that any person who made the application for settlement under Section 245-C has
cooperated with the Settlement Commission in the proceedings before it and has
made a full and true disclosure of his income and the manner in which such income
has been derived, grant to such person, subject to such conditions as it may think fit
to impose 3376 [for the reasons to be recorded in writing], immunity from prosecution
for any offence under this Act or under the Indian Penal Code, 1860 (45 of 1860), or
under any other Central Act for the time being in force and also (either wholly or in
part) from the imposition of any penalty under this Act, with respect to the case
covered by the settlement:
Provided that no such immunity shall be granted by the Settlement Commission in
cases where the proceedings for the prosecution for any such offence have been
instituted before the date of receipt of the application under Section 245-C:
3377 [Provided further that the Settlement Commission shall not grant immunity from
prosecution for any offence under the Indian Penal Code (45 of 1860) or under any
Central Act other than this Act and the Wealth Tax Act, 1957 (27 of 1957) to a person
who makes an application under Section 245-C on or after the 1st day of June, 2007.]
(1-A) An immunity granted to a person under sub-section (1) shall stand
withdrawn if such person fails to pay any sum specified in the order of settlement
passed under sub-section (4) of Section 245-D within the time specified in such order
or within such further time as may be allowed by the Settlement Commission, or fails
to comply with any other condition subject to which the immunity was granted and
thereupon the provisions of this Act shall apply as if such immunity had not been
granted.
(2) An immunity granted to a person under sub-section (1) may, at any time, be
withdrawn by the Settlement Commission, if it is satisfied that such person had, in the
course of the settlement proceedings, concealed any particulars material to the
settlement or had given false evidence, and thereupon such person may be tried for
the offence with respect to which the immunity was granted or for any other offence of
which he appears to have been guilty in connection with the settlement and shall also
become liable to the imposition of any penalty under this Act to which such person
would have been liable, had not such immunity been granted.
3378 [245-HA. Abatement of proceeding before Settlement Commission.— (1)
Where—
(i) an application made under Section 245-C on or after the 1st day of June,
2007 has been rejected under sub-section (1) of Section 245-D; or
(ii) an application made under Section 245-C has not been allowed to be
proceeded with under sub-section (2-A) or further proceeded with under sub-
section (2-D) of Section 245-D; or
(iii) an application made under Section 245-C has been declared as invalid under
sub-section (2-C) of Section 245-D; or
3379
[(iii-a) in respect of any application made under Section 245-C, an order
under sub-section (4) of Section 245-D has been passed not providing for the
terms of settlement; or]
(iv) in respect of any other application made under Section 245-C, an order
under sub-section (4) of Section 245-D has not been passed within the time
or period specified under sub-section (4-A) of Section 245-D,
the proceedings before the Settlement Commission shall abate on the specified date.
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-
Explanation.—For the purposes of this sub-section, “specified date” means—
(a) in respect of an application referred to in clause (i), the day on which the
application was rejected;
(b) in respect of an application referred to in clause (ii), the 31st day of July,
2007;
(c) in respect of an application referred to in clause (iii), the last day of the
month in which the application was declared invalid;
3380 [(ca) in respect of an application referred to clause (iii-a), the day on which
the order under sub-section (4) of Section 245-D was passed not providing for
the terms of settlement;]
(d) in respect of an application referred to in clause (iv), on the date on which
the time or period specified in sub-section (4-A) of Section 245-D expires.
(2) Where a proceeding before the Settlement Commission abates, the Assessing
Officer, or, as the case may be, any other income tax authority before whom the
proceeding at the time of making the application was pending, shall dispose of the
case in accordance with the provisions of this Act as if no application under Section
245-C had been made.
(3) For the purposes of sub-section (2), the Assessing Officer, or, as the case may
be, other income tax authority, shall be entitled to use all the material and other
information produced by the assessee before the Settlement Commission or the
results of the inquiry held or evidence recorded by the Settlement Commission in the
course of the proceedings before it, as if such material, information, inquiry and
evidence had been produced before the Assessing Officer or other income tax authority
or held or recorded by him in the course of the proceedings before him.
(4) For the purposes of the time-limit under Sections 149, 153, 153-B, 154, 155,
158-BE and 231 and for the purposes of payment of interest under Section 243 or 244
or, as the case may be, Section 244-A, for making the assessment or reassessment
under sub-section (2), the period commencing on and from the date of the application
to the Settlement Commission under Section 245-C and ending with “specified date”
referred to in sub-section (1) shall be excluded; and where the assessee is a firm, for
the purposes of the time-limit for cancellation of registration of the firm under sub-
section (1) of Section 186, the period aforesaid shall, likewise, be excluded.]
3381
[245-HAA. Credit for tax paid in case of abatement of proceedings.—
Where an application made under Section 245-C on or after the 1st day of June, 2007,
is rejected under sub-section (1) of Section 245-D, or any other application made
under Section 245-C is not allowed to be proceeded with under sub-section (2-A) of
Section 245-D or is declared invalid under sub-section (2-C) of Section 245-D or has
not been allowed to be further proceeded with under sub-section (2-D) of Section 245-
D or an order under sub-section (4) of Section 245-D has not been passed within the
time or period specified under sub-section (4-A) of Section 245-D, the Assessing
Officer shall allow the credit for the tax and interest paid on or before the date of
making the application or during the pendency of the case before the Settlement
Commission.]
245-I. Order of settlement to be conclusive.— Every order of settlement passed
under sub-section 4 of Section 245-D shall be conclusive as to the matters stated
therein and no matter covered by such order shall, save as otherwise provided in this
Chapter, be reopened in any proceeding under this Act or under any other law for the
time being in force.
245-J. Recovery of sums due under order of settlement.— Any sum specified
in an order of settlement passed under sub-section (4) of Section 245-D may, subject
to such conditions, if any, as may be specified therein, be recovered, and any penalty
for default in making payment of such sum may be imposed and recovered in
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-
accordance with the provisions of Chapter XVII, by the Assessing Officer having
jurisdiction over the person who made the application for settlement under Section
245-C.
3382
[245-K. Bar on subsequent application for settlement.— (1) Where—
(i) an order of settlement passed under sub-section (4) of Section 245-D
provides for the imposition of a penalty on the person who made the
application under Section 245-C for settlement, on the ground of concealment
of particulars of his income; or
(ii) after the passing of an order of settlement under the said sub-section (4) in
relation to a case, such person is convicted of any offence under Chapter XXII
in relation to that case; or
(iii) the case of such person was sent back to the Assessing Officer by the
Settlement Commission on or before the 1st day of June, 2002,
then, 3383 [he or any person related to such person (herein referred to as related
person) shall not be entitled to apply] for settlement under Section 245-C in relation
to any other matter.
(2) Where a person has made an application under Section 245-C on or after the
1st day of June, 2007 and if such application has been allowed to be proceeded with
under sub-section (1) of Section 245-D, such person 3384 [or any related person shall
not be subsequently entitled] to make an application under Section 245-C]
3385
[Explanation.— For the purposes of this section, “related person” with respect to
a person means,—
(i) where such person is an individual, any company in which such person holds
more than fifty per cent of the shares or voting rights at any time, or any firm
or association of persons or body of individuals in which such person is
entitled to more than fifty per cent of the profits at any time, or any Hindu
undivided family in which such person is a karta;
(ii) where such person is a company, any individual who held more than fifty per
cent of the shares or voting rights in such company at any time before the
date of application before the Settlement Commission by such person;
(iii) where such person is a firm or association of persons or body of individuals,
any individual who was entitled to more than fifty per cent of the profits in
such firm, association of persons or body of individuals, at any time before the
date of application before the Settlement Commission by such person;
(iv) where such person is a Hindu undivided family, the karta of that Hindu
undivided family.]
245-L. Proceedings before Settlement Commission to be judicial
proceedings.— Any proceeding under this Chapter before the Settlement Commission
shall be deemed to be a judicial proceeding within the meaning of Sections 193 and
228 and for the purposes of Section 196, of the Indian Penal Code, 1860 (45 of 1860).
245-M. [Omitted]
245-N. Definitions.— In this Chapter, unless the context otherwise requires,—
3386
[(a) “advance ruling” means—
(i) a determination by the Authority in relation to a transaction which has been
undertaken or is proposed to be undertaken by a non-resident applicant; or
(ii) a determination by the Authority in relation to 3387 [the tax liability of a non-
resident arising out of] a transaction which has been undertaken or is
proposed to be undertaken by a resident applicant with 3388 [such] non-
resident; 3389 [or]
3390
[(ii-a) a determination by the Authority in relation to the tax liability of a
resident applicant, arising out of a transaction which has been undertaken or
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-
is proposed to be undertaken by such applicant,]

and such determination shall include the determination of any question of law or
of fact specified in the application;
(iii) a determination or decision by the Authority in respect of an issue relating to
computation of total income which is pending before any income tax authority
or the Appellate Tribunal and such determination or decision shall include the
determination or decision of any question of law or of fact relating to such
computation of total income specified in the application:
3391 [(iv) 3392 [* * *]]
3393 [(iv) a determination or decision by the Authority whether an arrangement,
which is proposed to be undertaken by any person being a resident or a non-

resident, is an impermissible avoidance arrangement as referred to in Chapter
X-A or not:]
3394 [Provided that where an advance ruling has been pronounced, before
the date on which the Finance Bill, 2003 receives the assent of the President,
by the Authority in respect of an application by a resident applicant referred to
in sub-clause (ii) of this clause as it stood immediately before such date, such
ruling shall be binding on the persons specified in Section 245-S;]
3395 [(b) “applicant” means—
(A) any person who—

(I) is a non-resident referred to in sub-clause (i) of clause (a); or
(II) is a resident referred to in sub-clause (ii) of clause (a); or
(III) is a resident referred to in sub-clause (iia) of clause (a) falling within any
such class or category of persons as the Central Government may, by
notification in the Official Gazette, specify; or
(IV) is a resident falling within any such class or category of persons as the
Central Government may, by notification in the Official Gazette, specify in
this behalf; or
(V) is referred to in sub-clause (iv) of clause (a),
and makes an application under sub-section (1) of Section 245-Q;
(B) an applicant as defined in clause (c) of Section 28-E of the Customs Act,
1962 (52 of 1962);
(C) an applicant as defined in clause (c) of Section 23-A of the Central Excise
Act, 1944 (1 of 1944);
(D) an applicant as defined in clause (b) of Section 96-A of the Finance Act,
1994 (32 of 1994);]
(c) “application” means an application made to the Authority under sub-section (1)
of Section 245-Q;
(d) “Authority” means the Authority for Advance Rulings constituted under Section
245-O;
(e) “Chairman” means the Chairman of the Authority;
3396 [(f) “Member” means a Member of the Authority and includes the Chairman and
Vice-Chairman;
(g) “Vice-Chairman” means the Vice-Chairman of the Authority.]
245-O. Authority for Advance Rulings.— (1) The Central Government shall
constitute an Authority for giving advance rulings, to be known as “Authority for
Advance Rulings”:
3397
[Provided that the Authority shall cease to act as an Authority for Advance
Rulings for the purposes of Chapter V of the Customs Act, 1962 (52 of 1962) on
and from the date of appointment of the Customs Authority for Advance Rulings
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-
under Section 28-EA of that Act.]
3398
[(1-A) On and from the date of appointment of the Customs Authority for
Advance Rulings referred to in the proviso to sub-section (1), the Authority shall act as
an Appellate Authority, for the purpose of Chapter V of the Customs Act, 1962 (52 of
1962):
Provided that the Authority shall not admit any appeal against any ruling or order
passed earlier by it in the capacity of the Authority for Advance Rulings in relation
to any matter under Chapter V of the Customs Act, 1962 (52 of 1962) after the
date of such appointment of the Customs Authority for Advance Rulings.]
3399 [(2) The Authority shall consist of a Chairman and such number of Vice-
Chairmen, revenue Members and law Members as the Central Government may, by
notification, appoint.
(3) A person shall be qualified for appointment as—
(a) Chairman, who has been a Judge of the Supreme Court 3400 [or the Chief
Justice of a High Court or for at least seven years a Judge of a High Court];
(b) Vice-Chairman, who has been Judge of a High Court;
3401
[(c) a revenue Member—
(i) from the Indian Revenue Service, who is, or is qualified to be, a Member of
the Board; or
(ii) from the Indian Customs and Central Excise Service, who is, or is qualified
to be, a Member of the Central Board of Excise and Customs,
on the date of occurrence of vacancy;]
3402 [(d) a law Member from the Indian Legal Service, who is, or is qualified to be,
an Additional Secretary to the Government of India 3403 [on the date of

occurrence of vacancy].]
(4) The terms and conditions of service and the salaries and allowances payable to
the Members shall be such as may be prescribed.
(5) The Central Government shall provide to the Authority with such officers and
employees, as may be necessary, for the efficient discharge of the functions of the
Authority under this Act.
(6) The powers and functions of the Authority may be discharged by its Benches as
may be constituted by the Chairman from amongst the Members thereof.
3404 [(6-A) In the event of the occurrence of any vacancy in the office of the
Chairman by reason of his death, resignation or otherwise, the senior-most Vice-

chairman shall act as the Chairman until the date on which a new Chairman,
appointed in accordance with the provisions of this Act to fill such vacancy, enters
upon his office.
(6-B) In case the Chairman is unable to discharge his functions owing to absence,
illness or any other cause, the senior-most Vice-chairman shall discharge the functions
of the Chairman until the date on which the Chairman resumes his duties.]
(7) A Bench shall consist of the Chairman or the Vice-Chairman and one revenue
Member and one law Member:
3405 [Provided that where the Authority is dealing with an application seeking
advance ruling in any matter relating to this Act, the revenue Member of the Bench
shall be such Member as referred to in sub-clause (i) of clause (c) of sub-section
(3).]
(8) The Authority shall be located in the National Capital Territory of Delhi and its
Benches shall be located at such places as the Central Government may, by
notification specify.]
3406
[245-OA. Qualifications, terms and conditions of service of Chairman,
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-
Vice-Chairman and Member.— Notwithstanding anything contained in this Act, the
qualifications, appointment, term of office, salaries and allowances, resignation,
removal and the other terms and conditions of service of the Chairman, Vice-Chairman
and other Members of the Authority appointed after the commencement of Part XIV of
Chapter VI of the Finance Act, 2017, shall be governed by the provisions of Section
184 of that Act:
Provided that the Chairman, Vice-Chairman and Member appointed before the
commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to
be governed by the provisions of this Act and the rules made thereunder as if the
provisions of Section 184 of the Finance Act, 2017 had not come into force.]
245-P. Vacancies, etc., not to invalidate proceedings.— No proceeding before,
or pronouncement of advance ruling by, the Authority shall be questioned or shall be
invalid on the ground merely of the existence of any vacancy or defect in the
constitution of the Authority.
245-Q. Application for advance ruling.— (1) An applicant desirous of obtaining
an advance ruling under this Chapter 3407 [3408 [* * *] or under Chapter IIIA of the
Central Excise Act, 1944 (1 of 1944) or under Chapter VA of the Finance Act, 1994 (32
of 1994)] may make an application in such form and in such manner as may be
prescribed, stating the question on which the advance ruling is sought.
(2) The application shall be made in quadruplicate and be accompanied by a fee of
3409 [ten thousand rupees or such fee as may be prescribed in this behalf, whichever is
higher].
(3) An applicant may withdraw an application within thirty days from the date of
the application.
245-R. Procedure on receipt of application.— (1) On receipt of an application,
the Authority shall cause a copy thereof to be forwarded to the 3410 [Principal
Commissioner or Commissioner] and, if necessary, call upon him to furnish the
relevant records:
Provided that where any records have been called for by the Authority in any case,
such records shall, as soon as possible, be returned to the FN1156[Principal
(2) The Authority may, after examining the application and the records called for,
by order, either allow or reject the application:
3412 [Provided that the Authority shall not allow the application where the question
raised in the application,—

(i) is already pending before any income tax authority or Appellate Tribunal [except
in the case of a resident applicant falling in sub-clause (iii) of clause (b) of
Section 245-N] or any court;
(ii) involves determination of fair market value of any property;
(iii) relates to a transaction or issue which is designed prima facie for the avoidance
of income tax [except in the case of a resident applicant falling in sub-clause (iii)
of clause (b) of Section 245-N 3413 [or in the case of an applicant falling in sub-
clause (iii-a) of clause (b) of Section 245-N] 3414 [3415 [* * *]]]:]
Provided further that no application shall be rejected under this sub-section
unless an opportunity has been given to the applicant of being heard:
Provided also that where the application is rejected, reasons for such
rejection shall be given in the order.
(3) A copy of every order made under sub-section (2) shall be sent to the applicant
and to the FN1157[Principal Commissioner or Commissioner].
(4) Where an application is allowed under sub-section (2), the Authority shall, after
examining such further material as may be placed before it by the applicant or
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-
obtained by the Authority, pronounce its advance ruling on the question specified in
the application.
(5) On a request received from the applicant, the Authority shall, before
pronouncing its advance ruling, provide an opportunity to the applicant of being heard,
either in person or through a duly authorised representative.
Explanation.—For the purposes of this sub-section, “authorised representative” shall
have the meaning assigned to it in sub-section (2) of Section 288, as if the applicant
were an assessee.
(6) The Authority shall pronounce its advance ruling in writing within six months of
the receipt of application.
(7) A copy of the advance ruling pronounced by the Authority, duly signed by the
Members and certified in the prescribed manner shall be sent to the applicant and to
the FN1158[Principal Commissioner or Commissioner], as soon as may be, after such
pronouncement.
3418 [245-RR. Appellate authority not to proceed in certain cases.— No Income
Tax authority or the Appellate Tribunal shall proceed to decide any issue in respect to
which an application has been made by an applicant, being a resident, under sub-
section (1) of Section 3419 [245-Q].]
245-S. Applicability of advance ruling.— (1) The advance ruling pronounced by
the Authority under Section 245-R shall be binding only—
(a) on the applicant who had sought it;
(b) in respect of the transaction in relation to which the ruling had been sought;
and
(c) on the 3420 [Principal Commissioner or Commissioner], and the income tax
authorities subordinate to him, in respect of the applicant and the said
transaction.
(2) The advance ruling referred to in sub-section (1) shall be binding as aforesaid
unless there is a change in law or facts on the basis of which the advance ruling has
been pronounced.
245-T. Advance ruling to be void in certain circumstances.— (1) Where the
Authority finds, on a representation made to it by the 3421 [Principal Commissioner or
Commissioner] or otherwise, that an advance ruling pronounced by it under sub-
section (6) of Section 245-R has been obtained by the applicant by fraud or
misrepresentation of facts, it may, by order, declare such ruling to be void ab initio
and thereupon all the provisions of this Act shall apply (after excluding the period
beginning with the date of such advance ruling and ending with the date of order
under this sub-section) to the applicant as if such advance ruling had never been
made.
(2) A copy of the order made under sub-section (1) shall be sent to the applicant
and the FN1159[Principal Commissioner or Commissioner].
245-U. Powers of the Authority.— (1) The Authority shall, for the purpose of
exercising its powers, have all the powers of a civil court under the Code of Civil
Procedure, 1908 (5 of 1908), as are referred to in Section 131 of this Act.
(2) The Authority shall be deemed to be a civil court for the purposes of Section
195, but not for the purposes of Chapter XXVI, of the Code of Criminal Procedure,
1973 (2 of 1974), and every proceeding before the Authority shall be deemed to be a
judicial proceeding within the meaning of Sections 193 and 228, and for the purpose
of Section 196, of the Indian Penal Code, 1860 (45 of 1860).
245-V. Procedure of Authority.— The Authority shall, subject to the provisions of
this Chapter, have power to regulate its own procedure in all matters arising out of the
exercise of its powers under this Act.
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-
246. Appealable orders.— (1) Subject to the provisions of sub-section (2), any
assessee aggrieved by any of the following orders of an Assessing Officer (other than
the Joint Commissioner) may appeal to the Deputy Commissioner (Appeals) 3423
[before the 1st day of June, 2000] against such order—
(a) an order against the assessee, where the assessee denies his liability to be
assessed under this Act 3424 [, or an intimation under sub-section (1) or sub-
section (1-B) of Section 143, where the assessee objects to the making of
adjustments,] or any order of assessment under sub-section (3) of Section
143 or Section 144, where the assessee objects to the amount of income
assessed, or to the amount of tax determined or to the amount of loss
computed, or to the status under which he is assessed;
(b) an order of assessment, reassessment or recomputation under Section 147 or
Section 150;
(c) an order under Section 154 or Section 155 having the effect of enhancing the
assessment or reducing a refund or an order refusing to allow the claim made
by the assessee under either of the said sections;
(d) an order made under Section 163 treating the assessee as the agent of a non
-resident;
(e) an order under sub-section (2) or sub-section (3) of Section 170;
(f) an order under Section 171;
(g) any order under clause (b) of sub-section (1) or under sub-section (2) or sub
-section (3) or sub-section (5) of Section 185; 3425 [in respect of any
assessment for the assessment year commencing on or before the 1st day of
April, 1992];
(h) an order cancelling the registration of a firm under sub-section (1) or under
sub-section (2) of Section 186; 3426 [in respect of any assessment for the
assessment year commencing on or before the 1st day of April, 1992];
(i) an order under Section 201;
(j) an order under Section 216 in respect of any assessment for the assessment
year commencing on the 1st day of April, 1988 or any earlier assessment
year;
(k) an order under Section 237;
(l) an order imposing a penalty under—
(i) Section 221, or
(ii) Section 271, Section 271-A, Section 271-B, 3427 [* * *], Section 272-A,
Section 272-AA or Section 272-BB;
(iii) Section 272, Section 272-B, or Section 273, as they stood immediately
before the 1st day of April, 1989, in respect of any assessment for the
assessment year commencing on the 1st day of April, 1988 or any earlier
assessment years.
3428
[(1-A) Notwithstanding anything contained in sub-section (1), every appeal
filed, on or after the 1st day of October, 1998 but before the 1st day of June, 2000,
before the Deputy Commissioner (Appeals) and any matter arising out of or connected
with such appeal and which is so pending shall stand transferred to the 3429 [Principal
Commissioner or Commissioner] (Appeals) and the FN1160[Principal Commissioner or
Commissioner] (Appeals) may proceed with such appeal or matter from the stage at
which it was on that day.]
(2) Notwithstanding anything contained in sub-section (1), any assessee aggrieved
by any of the following orders (whether made before or after the appointed day) may
appeal to the FN1161[Principal Commissioner or Commissioner] (Appeals) 3432 [before the
1st day of June, 2000] against such order—
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-
(a) 3433 [an intimation or order specified in sub-section (1) where such intimation
is sent or such order] is made by the Joint Commissioner in exercise of the
powers or functions conferred on or assigned to him under Section 120 or
Section 124;
(b) an order specified in clauses (a) to (e) (both inclusive) and clauses (i) to (l)
(both inclusive) of sub-section (1) or an order under Section 104, as it stood
immediately before the 1st day of April, 1988 in respect of any assessment for
the assessment year commencing on the 1st day of April, 1987 or any earlier
assessment year, made against the assessee, being a company;
(c) an order of assessment made after the 30th day of September, 1984 on the
basis of the directions issued by the Joint Commissioner under Section 144-A;
(d) an order made by the Joint Commissioner under Section 154;
3434 [(d-a) an order of assessment made by an Assessing Officer under clause (c)
of Section 158-BC, in respect of search initiated under Section 132 or books of

account, other documents or any assets requisitioned under Section 132-A, on
or after the 1st day of January, 1997;
(d-b) an order imposing a penalty under sub-section (2) of Section 158-BFA;]
(e) an order imposing a penalty under Section 271-B 3435 [or Section 271-BB];
3436 [(ee) an order made by a Joint Commissioner imposing a penalty under
Section 271-C, Section 271-D or Section 271-E;]

(f) an order made by a Joint Commissioner or a Joint Director imposing a penalty
under Section 272-A;
(ff) an order made by a Joint Commissioner imposing a penalty under Section
272-AA;
(g) an order imposing a penalty under Chapter XXI by the Income Tax Officer or
the Assistant Commissioner or Deputy Commissioner, where such penalty has
been imposed with the previous approval of the Joint Commissioner under sub
-section (2) of Section 274;
(h) an order made by an Assessing Officer (other than Joint Commissioner)
under the provisions of this Act in the case of such persons or classes of
persons as the Board may, having regard to the nature of the cases, the
complexities involved and other relevant considerations, direct.
(3) Notwithstanding anything contained in sub-section (1), the Board or the 3437
[Principal Director General or Director General], or 3438 [Principal Chief Commissioner or
Chief Commissioner] or FN1162[Principal Commissioner or Commissioner] if so
authorised by the Board, may, by order in writing, transfer any appeal which is
pending before a Deputy Commissioner (Appeals) and any matter arising out of or
connected with such appeal and which is so pending, to the FN1163[Principal
Commissioner or Commissioner] (Appeals) if the Board or, as the case may be, the
FN1164 [Principal Director General or Director General], or FN1165[Principal Chief
Commissioner or Chief Commissioner] or FN1166 [Principal Commissioner or
Commissioner] (at the request of the appellant or otherwise) is satisfied that it is
necessary or expedient so to do having regard to the nature of the case, the
complexities involved and other relevant considerations and the FN1167[Principal
Commissioner or Commissioner] (Appeals) may proceed with such appeal or matter
from the stage at which it was before it was so transferred:
Provided that the appellant may demand that before proceeding further with the
appeal or matter, the previous proceeding or any part thereof be reopened or that he
be reheard.
(a) “appointed day” means the 10th day of July, 1978 being the day appointed
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-
under Section 39 of the Finance (No. 2) Act, 1977 (29 of 1977);
(b) “status” means the category under which the assessee is assessed as
“individual” “Hindu undivided family” and so on.
3445 [246-A. Appealable orders before 3446[Principal Commissioner or
Commissioner] (Appeals).— (1) 3447 [Any assessee or any deductor 3448 [or any
collector] aggrieved] by any of the following orders (whether made before or after the
appointed day) may appeal to the FN1168[Principal Commissioner or Commissioner]
(Appeals) against—
(a) an order 3450 [passed by a Joint Commissioner under clause (ii) of sub-section
(3) of Section 115-VP or an order] against the assessee where the assessee
denies his liability to be assessed under this Act or an intimation under sub-
section (1) or sub-section (1B) of 3451 [Section 143 or 3452 [sub-section (1) of
Section 200-A or sub-section (1) of Section 206-CB, where the assessee or
the deductor or the collector] objects] to the making of adjustments, or any
order of assessment 3453 [under sub-section (3) of Section 143 3454 [[except an
order passed in pursuance of directions of the Dispute Resolution Panel 3455 [or
an order referred to in sub-section (12) of Section 144-BA] 3456 [* * *]]]] or
Section 144, to the income assessed, or to the amount of tax determined, or
to the amount of loss computed, or to the status under which he is assessed;
3457
[(aa) an order of assessment under sub-section (3) of Section 115-WE or
Section 115-WF, where the assessee, being an employer objects to the value
of fringe benefits assessed;
(ab) an order of assessment or reassessment under Section 115-WG;]
(b) an order of assessment, re-assessment or re-computation under Section 147
3458 [[except
an order passed in pursuance of directions of the Dispute
Resolution Panel 3459 [or an order referred to in sub-section (12) of Section 144
-BA] 3460 [* * *]]] or Section 150;
3461
[(ba) an order of assessment or reassessment 3462 [under Section 153-A
[except an order passed in pursuance of directions of the 3463 [Dispute
Resolution Panel 3464 [* * *]]]] 3465 [or an order referred to in sub-section (12)
of Section 144-BA];]
3466 [(bb) an order 3467 [made] under sub-section (3) of Section 92-CD;]
(c) an order made under Section 154 or Section 155 having the effect of
enhancing the assessment or reducing a refund or an order refusing to allow
the claim made by the assessee under either of the said sections 3468 [3469 [* *
*] 3470 [except an order referred to in sub-section (12) of Section 144-BA]];
(d) an order made under Section 163 treating the assessee as the agent of a non
-resident;
(e) an order made under sub-section (2) or sub-section (3) of Section 170;
(f) an order made under Section 171;
(g) an order made under clause (b) of sub-section (1) or under sub-section (2)
or sub-section (3) or sub-section (5) of Section 185 in respect of an
assessment for the assessment year commencing on or before the 1st day of
April, 1992;
(h) an order cancelling the registration of a firm under sub-section (1) or under
sub-section (2) of Section 186 in respect of any assessment for the
assessment year commencing on or before the 1st day of April, 1992 or any
earlier assessment year;
3471 [(h-a) an order made under Section 201;]
3472
[(hb) an order made under sub-section (6-A) of Section 206-C;]
(i) an order made under Section 237;
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-
(j) an order imposing a penalty under—

(A) Section 221; or
(B) Section 271, Section 271-A, 3473 [Section 271-AAA 3474 [, Section 271-
AAB]] Section 271-F 3475 [, Section 271-FB], Section 272-AA or Section 272
-BB;
(C) Section 272, Section 272-B or Section 273, as they stood immediately
before the 1st day of April, 1989, in respect of an assessment for the
assessment year commencing on the 1st day of April, 1988, or any earlier
assessment year;
3476
[(ja) an order of imposing or enhancing penalty under sub-section (1-A) of
Section 275;]
(k) an order of assessment made by an Assessing Officer under clause (c) of
Section 158-BC, in respect of search initiated under Section 132 or books of
account, other documents or any assets requisitioned under Section 132-A on
or after the 1st day of January, 1997;
(l) an order imposing a penalty under sub-section (2) of Section 158-BFA;
(m) an order imposing a penalty under Section 271-B or Section 271-BB;
(n) an order made by a Deputy Commissioner imposing a penalty under 3477
[Section 271-C, Section 271-CA”], Section 271-D or Section 271-E;
(o) an order made by a Deputy Commissioner or a Deputy Director imposing a
penalty under Section 272-A;
(p) an order made by a Deputy Commissioner imposing a penalty under Section
272-AA;
(q) an order imposing a penalty under Chapter XXI;
(r) an order made by an Assessing Officer other than a Deputy Commissioner
under the provisions of this Act in the case of such person or class of person,
as the Board may, having regard to the nature of the cases, the complexities
involved and other relevant considerations, direct.
Explanation.—For the purposes of this sub-section, where on or after the 1st day of
October, 1998, the post of Deputy Commissioner has been redesignated as Joint
Commissioner and the post of Deputy Director has been redesignated as Joint Director,
the references in this sub-section for “Deputy Commissioner” and “Deputy Director”
shall be substituted by “Joint Commissioner” and “Joint Director” respectively.
3478 [(1-A) Every appeal filed by an assessee in default against an order under
Section 201 on or after the 1st day of October, 1998 but before the 1st day of June,
2000 shall be deemed to have been filed under this section.]
3479 [(1-B) Every appeal filed by an assessee in default against an order under sub-
section (6-A) of Section 206-C on or after the 1st day of April, 2007 but before the 1st
day of June, 2007 shall be deemed to have been filed under this section.]
(2) Notwithstanding anything contained in sub-section (1) of Section 246, every
appeal under this Act which is pending immediately before the appointed day, before
the Deputy Commissioner (Appeals) and any matter arising out of or connected with
such appeals and which is so pending shall stand transferred on that date to the FN1169
[Principal Commissioner or Commissioner] (Appeals) and the FN1170[Principal
Commissioner or Commissioner] (Appeals) may proceed with such appeal or matter
from the stage at which it was on that day:
Provided that the appellant may demand that before proceeding further with the
appeal or matter, the previous proceeding or any part thereof be reopened or that he
be reheard.
Explanation.—For the purposes of this section, “appointed day” means the day
appointed by the Central Government by notification in the Official Gazette.]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
3482
[247. Appeal by partner.—* * *]
3483 [248. Appeal by a person denying liability to deduct tax in certain cases.
— Where under an agreement or other arrangement, the tax deductible on any
income, other than interest, under Section 195 is to be borne by the person by whom
the income is payable, and such person having paid such tax to the credit of the
Central Government, claims that no tax was required to be deducted on such income,
he may appeal to the 3484 [Principal Commissioner or Commissioner] (Appeals) for a
declaration that no tax was deductible on such income.]
249. Form of appeal and limitation.— (1) Every appeal under this Chapter shall
be in the prescribed form and shall be verified in the prescribed manner 3485 [and shall,
in case of an appeal made to the 3486 [Principal Commissioner or Commissioner]
(Appeals) on or after the 1st day of October, 1998, irrespective of the date of initiation
of the assessment proceedings relating thereto be accompanied by a fee of,—
(i) where the total income of the assessee as computed by the Assessing Officer
in the case to which the appeal relates is one hundred thousand rupees or
less, two hundred fifty rupees;
(ii) where the total income of the assessee, computed as aforesaid, in the case to
which the appeal relates is more than one hundred thousand rupees but not
more than two hundred thousand rupees, five hundred rupees;
(iii) where the total income of the assessee, computed as aforesaid, in the case
to which the appeal relates is more than two hundred thousand rupees, one
thousand rupees.]
3487 [(iv) where the subject-matter of an appeal is not covered under clauses (i),
(ii) and (iii), two hundred fifty rupees.]

(2) The appeal shall be presented within thirty days of the following date, that is to
say,—
3488 [(a) where the appeal is under Section 248, the date of payment of the tax,
or]
(b) where the appeal relates to any assessment or penalty, the date of service of
the notice of demand relating to the assessment or penalty:
Provided that, where an application has been made under Section 146 for
reopening an assessment, the period from the date on which the application is
made to the date on which the order passed on the application is served on
the assessee shall be 3489 [excluded:]
3490 [Provided further that where an application has been made under sub-
section (1) of Section 270-AA, the period beginning from the date on which
the application is made, to the date on which the order rejecting the
application is served on the assessee, shall be excluded, or]
(c) in any other case, the date on which intimation of the order sought to be
appealed against is served.
3491
[(2-A) Notwithstanding anything contained in sub-section (2), where an order
has been made under Section 201 on or after the 1st day of October, 1998 but before
the 1st day of June, 2000 and the assessee in default has not presented any appeal
within the time specified in that sub-section, he may present such appeal before the
1st day of July, 2000.]
(3) The 3492 [* * *] FN1171[Principal Commissioner or Commissioner] (Appeals) may
admit an appeal after the expiration of the said period if he is satisfied that the
appellant had sufficient cause for not presenting it within that period.
(4) No appeal under this Chapter shall be admitted unless at the time of filing of
the appeal,—
(a) where a return has been filed by the assessee, the assessee has paid the tax
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-
due on the income returned by him; or
(b) where no return has been filed by the assessee, the assessee has paid an
amount equal to the amount of advance tax which was payable by him:
Provided that in a case falling under clause (b) and on an application made
by the appellant in this behalf, 3494 [* * *] FN1172[Principal Commissioner or
Commissioner] (Appeals) may, for any good and sufficient reason to be
recorded in writing, exempt him from the operation of the provisions of that
clause.
250. Procedure in appeal.— (1) The 3496 [* * *] 3497 [Principal Commissioner or
Commissioner] (Appeals) shall fix a day and place for the hearing of the appeal, and
shall give notice of the same to the appellant and to the Assessing Officer against
whose order the appeal is preferred.
(2) The following shall have the right to be heard at the hearing of the appeal—
(a) the appellant, either in person or by an authorised representative,
(b) the Assessing Officer, either in person or by a representative.
(3) The 3498 [* * *] FN1173[Principal Commissioner or Commissioner] (Appeals) shall
have the power to adjourn the hearing of the appeal from time to time.
(4) The 3500 [* * *] FN1174[Principal Commissioner or Commissioner] (Appeals) may,
before disposing of any appeal, make such further inquiry as he thinks fit, or may
direct the Assessing Officer to make further inquiry and report the result of the same
to the 3502 [* * *] FN1175[Principal Commissioner or Commissioner] (Appeals).
(5) The 3504 [* * *] FN1176[Principal Commissioner or Commissioner] (Appeals) may,
at the hearing of an appeal, allow the appellant to go into any ground of appeal not
specified in the grounds of appeal, if the 3506 [* * *] FN1177[Principal Commissioner or
Commissioner] (Appeals) is satisfied that the omission of that ground from the form of
appeal was not wilful or unreasonable.
(6) The order of the 3508 [* * *] FN1178[Principal Commissioner or Commissioner]
(Appeals) disposing of the appeal shall be in writing and shall state the points for
determination, the decision thereon and the reason for the decision.
3510 [(6-A) In every appeal, the FN1179 [Principal Commissioner or Commissioner]
(Appeals), where it is possible, may hear and decide such appeal within a period of
one year from the end of the financial year in which such appeal is filed before him
under sub-section (1) of Section 246-A.]
5219
[(6-B) The Central Government may make a scheme, by notification in the
Official Gazette, for the purposes of disposal of appeal by Commissioner (Appeals), so
as to impart greater efficiency, transparency and accountability by—
(a) eliminating the interface between the Commissioner (Appeals) and the
appellant in the course of appellate proceedings to the extent technologically
feasible;
(b) optimising utilisation of the resources through economies of scale and
functional specialisation;
(c) introducing an appellate system with dynamic jurisdiction in which appeal
shall be disposed of by one or more Commissioner (Appeals).
(6-C) The Central Government may, for the purposes of giving effect to the scheme
made under sub-section (6-B), by notification in the Official Gazette, direct that any of
the provisions of this Act relating to jurisdiction and procedure for disposal of appeals
by Commissioner (Appeals) shall not apply or shall apply with such exceptions,
modifications and adaptations as may be specified in the notification:
Provided that no direction shall be issued after the 31st day of March, 2022.
(6-D) Every notification issued under sub-section (6-B) and sub-section (6-C) shall,
as soon as may be after the notification is issued, be laid before each House of
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-
Parliament.]
(7) On the disposal of the appeal, the 3512 [* * *] FN1180[Principal Commissioner or
Commissioner] (Appeals) shall communicate the order passed by him to the assessee
and to the 3514 [Principal Chief Commissioner or Chief Commissioner] or FN1181[Principal
251. Powers of the 3516[* * *] 3517[Principal Commissioner or Commissioner]
(Appeals).— (1) In disposing of an appeal, the 3518 [* * *] FN1182[Principal
Commissioner or Commissioner] (Appeals) shall have the following powers—
(a) in an appeal against an order of assessment he may confirm, reduce,
enhance or annul the assessment; 3520 [* * *]
3521
[(aa) in an appeal against the order of assessment in respect of which the
proceeding before the Settlement Commission abates under Section 245-HA,
he may, after taking into consideration all the material and other information
produced by the assessee before, or the results of the inquiry held or evidence
recorded by, the Settlement Commission, in the course of the proceeding
before it and such other material as may be brought on his record, confirm,
reduce, enhance or annul the assessment;]
(b) in an appeal against an order imposing a penalty, he may confirm or cancel
such order or vary it so as either to enhance or to reduce the penalty;
(c) in any other case, he may pass such orders in the appeal as he thinks fit.
(2) The 3522 [* * *] FN1183[Principal Commissioner or Commissioner] (Appeals) shall
not enhance an assessment or a penalty or reduce the amount of refund unless the
appellant has had a reasonable opportunity of showing cause against such
enhancement or reduction.
Explanation.—In disposing of an appeal, the 3524 [* * *] FN1184[Principal
Commissioner or Commissioner] (Appeals) may consider and decide any matter
arising out of proceedings in which the order appealed against was passed,
notwithstanding that such matter was not raised before the 3526 [* * *] FN1185[Principal
Commissioner or Commissioner] (Appeals) by the appellant.
252. Appellate Tribunal.— (1) The Central Government shall constitute an
Appellate Tribunal consisting of as many judicial and accountant members as it thinks
fit to exercise the powers and discharge the functions conferred on the Appellate
Tribunal by this Act.
(2) A judicial member shall be a person who has for at least ten years held a
judicial office in the territory of India or who has been a member of the 3528 [Indian]
Legal Service and has held a post in Grade 3529 [II] of that Service or any equivalent or
higher post for at least three years or who has been an advocate for at least ten years.
(i) in computing the period during which a person has held judicial office in the
territory of India, there shall be included any period, after he has held any
judicial office, during which the person has been an advocate or has held the
office of a member of a tribunal or any post, under the Union or a State,
requiring special knowledge of law;
(ii) in computing the period during which a person has been an advocate, there
shall be included any period during which the person has held judicial office or
the office of a member of a tribunal or any post, under the Union or a State,
requiring special knowledge of law after he became an advocate.
(2-A) An accountant member shall be a person who has for at least ten years been
in the practice of accountancy as a chartered accountant under the Chartered
Accountants Act, 1949 (38 of 1949) or as a registered accountant under any law
formerly in force or partly as a registered accountant and partly as a chartered
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-
accountant, or who has been a member of the Indian Income Tax Service, Group A
and has held the post of 3530 [Additional] 3531 [Principal Commissioner or Commissioner]
of Income Tax or any equivalent or higher post for at least three years.
3532
[(3) The Central Government shall appoint—
(a) a person who is a sitting or retired Judge of a High Court and who has
completed not less than seven years of service as a Judge in a High Court; or
(b) 3533 [* * *] one of the Vice-Presidents of the Appellate Tribunal,
to be the President thereof.]
(4) The Central Government may appoint one or more members of the Appellate
Tribunal to be the Vice-President or, as the case may be, Vice-Presidents thereof.
(4-A) 3534 [* * *]
(5) The 3535 [* * *] Vice-President shall exercise such of the powers and perform
such of the functions of the President as may be delegated to him by the President by
a general or special order in writing.
3536 [252-A. Qualifications, terms and conditions of service of President, Vice-
President and Member.— Notwithstanding anything contained in this Act, the

qualifications, appointment, term of office, salaries and allowances, resignation,
removal and the other terms and conditions of service of the President, Vice-President
and other Members of the Appellate Tribunal appointed after the commencement of
Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the provisions of
Section 184 of that Act:
Provided that the President, Vice-President and Member appointed before the
commencement of Part XIV of Chapter VI of the Finance Act, 2017, shall continue to
be governed by the provisions of this Act, and the rules made thereunder as if the
provisions of Section 184 of the Finance Act, 2017 had not come into force.]
253. Appeals to the Appellate Tribunal.— (1) Any assessee aggrieved by any of
the following orders may appeal to the Appellate Tribunal against such order—
(a) an order passed by a Deputy Commissioner (Appeals) 3537 [before the 1st day of
October, 1998] or, as the case may be, a 3538 [Principal Commissioner or
Commissioner] (Appeals) under Section 154, Section 250, 3539 [Section 270-A,]
Section 271, Section 271-A 3540 [, Section 271-J] or Section 272-A; or
(b) an order passed by an Assessing Officer under clause (c) of Section 158-BC, in
respect of search initiated under Section 132 or books of account, other
documents or any assets requisitioned under Section 132-A, after the 30th day
of June, 1995, but before the 1st day of January, 1997; or]
3541 [(ba) an order passed by an Assessing Officer under sub-section (1) of Section
115-VZC;or]
(c) an order passed by a FN1186[Principal Commissioner or Commissioner] [3543 [5220
[under Section 12-AA or Section 12-AB] or under clause (vi) of sub-section (5)
of Section 80-G] or under Section 263 3544 [or under Section 270-A] 3545 [or under
Section 271] or under Section 272-A or an order passed by him under Section
154 amending his order under Section 263 or an order passed by a 3546 [Principal
Chief Commissioner or Chief Commissioner] or a 3547 [Principal Director General or
Director General] or a 3548 [[Principal Director or Director] under Section 272-A;
or]
3549
[(d) an order passed by an Assessing Officer under sub-section (3) of Section
143 or 3550 [Section 147 or Section 153-A or Section 153-C] in pursuance of the
directions of the Dispute Resolution Panel or an order passed under Section 154
in respect of such order.]
3551
[(e) 3552 [* * *];]
3553 [(e) an order passed by an Assessing Officer under sub-section (3) of Section
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-
143 or Section 147 or Section 153-A or Section 153-C with the approval of the
FN1187 [Principal Commissioner or Commissioner] as referred to in sub-section (12)
of Section 144-BA or an order passed under Section 154 or Section 155 in

respect of such order.]
3555 [(f) an order passed by the prescribed authority under 3556 [sub-clause (iv) or sub
-clause (v) or] sub-clause (vi) or sub-clause (vi-a) of clause (23-C) of Section
10.]
(2) The FN1188[Principal Commissioner or Commissioner] may, if he objects to any
order passed by a Deputy Commissioner (Appeals) 3558 [before the 1st day of October,
1998] or, as the case may be, a FN1189[Principal Commissioner or Commissioner]
(Appeals) under Section 154 or Section 250, direct the Assessing Officer to appeal to
the Appellate Tribunal against the order.
(2-A) 3560 [* * *]
(3) Every appeal under sub-section (1) or sub-section (2) shall be filed within sixty
days of the date on which the order sought to be appealed against is communicated to
the assessee or to the FN1190[Principal Commissioner or Commissioner], as the case
may be:
3562
[Provided that in respect of any appeal under clause (b) of sub-section (1), this
sub-section shall have effect as if for the words “sixty days”, the words “thirty days”
had been substituted.]
(3-A) 3563 [* * *]
3564 [(4) The Assessing Officer or the assessee, as the case may be, on receipt of
notice that an appeal against the order of the Commissioner (Appeals), has been
preferred under sub-section (1) or sub-section (2) by the other party, may,
notwithstanding that he may not have appealed against such order or any part
thereof, within thirty days of the receipt of the notice, file a memorandum of cross-
objections, verified in the prescribed manner, against any part of the order of the
Commissioner (Appeals), and such memorandum shall be disposed of by the Appellate
Tribunal as if it were an appeal presented within the time specified in sub-section (3).]
(5) The Appellate Tribunal may admit an appeal or permit the filing of a
memorandum of cross-objections after the expiry of the relevant period referred to in
sub-section (3) or sub-section (4) if it is satisfied that there was sufficient cause for
not presenting it within that period.
3565 [(6) An appeal to the Appellate Tribunal shall be in the prescribed form and shall
be verified in the prescribed manner and shall, in the case of an appeal made, on or
after the 1st day of October, 1998, irrespective of the date of initiation of the
assessment proceedings relating thereto, be accompanied by a fee of,—
(a) where the total income of the assessee as computed by the Assessing Officer, in
the case to which the appeal relates, is one hundred thousand rupees or less,
five hundred rupees,
(b) where the total income of the assessee, computed as aforesaid, in the case to
which the appeal relates is more than one hundred thousand rupees but not
more than two hundred thousand rupees, one thousand five hundred rupees,
(c) where the total income of the assessee, computed as aforesaid, in the case to
which the appeal relates is more than two hundred thousand rupees, one per
cent of the assessed income, subject to a maximum of ten thousand rupees:
3566 [(d) where the subject-matter of an appeal relates to any matter, other than
those specified in clauses (a), (b) and (c), five hundred rupees.]
3567
[Provided that no fee shall be payable in the case of an appeal referred to in sub
-section (2), or, sub-section (2-A) as it stood before its amendment by the Finance
Act, 2016, or, a memorandum of cross-objections referred to in sub-section (4).]
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(7) An application for stay of demand shall be accompanied by a fee of five hundred
rupees.]
254. Orders of Appellate Tribunal.— (1) The Appellate Tribunal may, after giving
both the parties to the appeal an opportunity of being heard, pass such orders thereon
as it thinks fit.
(2) The Appellate Tribunal may, at any time within 3568 [six months from the end of
the month in which the order was passed], with a view to rectifying any mistake
apparent from the record, amend any order passed by it under sub-section (1), and
shall make such amendment if the mistake is brought to its notice by the assessee or
the Assessing Officer:
Provided that an amendment which has the effect of enhancing an assessment
or reducing a refund or otherwise increasing the liability of the assessee, shall not
be made under this sub-section unless the Appellate Tribunal has given notice to
the assessee of its intention to do so and has allowed the assessee a reasonable
opportunity of being heard:
3569 [Provided further that any application filed by the assessee in this sub-
section on or after the 1st day of October, 1998, shall be accompanied by a fee of
fifty rupees.]
3570
[(2-A) In every appeal, the Appellate Tribunal, where it is possible, may hear
and decide such appeal within a period of four years from the end of the financial
year in which such appeal is filed under sub-section (1) 3571 [or sub-section (2)] 3572
[* * *] of Section 253:
3573 [Provided that the Appellate Tribunal may, after considering the merits of the
application made by the assessee, pass an order of stay in any proceedings relating
to an appeal filed under sub-section (1) of Section 253, for a period not exceeding
one hundred and eighty days from the date of such order 5221 [subject to the
condition that the assessee deposits not less than twenty per cent of the amount of
tax, interest, fee, penalty, or any other sum payable under the provisions of this
Act, or furnishes security of equal amount in respect thereof] and the Appellate
Tribunal shall dispose of the appeal within the said period of stay specified in that
order:
5222 [Provided further that no extension of stay shall be granted by the Appellate
Tribunal, where such appeal is not so disposed of within the said period of stay as
specified in the order of stay, unless the assessee makes an application and has
complied with the condition referred to in the first proviso and the Appellate
Tribunal is satisfied that the delay in disposing of the appeal is not attributable to
the assessee, so however, that the aggregate of the period of stay originally allowed
and the period of stay so extended shall not exceed three hundred and sixty-five
days and the Appellate Tribunal shall dispose of the appeal within the period or
periods of stay so extended or allowed.]
3574
[Provided also that if such appeal is not so disposed of within the period
allowed under the first proviso or the period or periods extended or allowed under
the second proviso, which shall not, in any case, exceed three hundred and sixty-
five days, the order of stay shall stand vacated after the expiry of such period or
periods, even if the delay in disposing of the appeal is not attributable to the
assessee.]]
(2-B) The cost of any appeal to the Appellate Tribunal shall be at the discretion of
that Tribunal.]
(3) The Appellate Tribunal shall send a copy of any orders passed under this section
to the assessee and to the 3575 [* * *] 3576 [Principal Commissioner or Commissioner].
(4) 3577 [Save as provided in the National Tax Tribunal Act, 2005] orders passed by
the Appellate Tribunal on appeal shall be final.
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-
255. Procedure of Appellate Tribunal.— (1) The powers and functions of the
Appellate Tribunal may be exercised and discharged by Benches constituted by the
President of the Appellate Tribunal from among the members thereof.
(2) Subject to the provisions contained in sub-section (3), a Bench shall consist of
one judicial member and one accountant member.
(3) The President or any other member of the Appellate Tribunal authorised in this
behalf by the Central Government may, sitting singly, dispose of any case which has
been allotted to the Bench of which he is a member and which pertains to an assessee
whose total income as computed by the Assessing Officer in the case does not exceed
3578
[fifty lakh rupees], and the President may, for the disposal of any particular case,
constitute a Special Bench consisting of three or more members, one of whom shall
necessarily be a judicial member and one an accountant member.
(4) If the members of a Bench differ in opinion on any point, the point shall be
decided according to the opinion of the majority, if there is a majority but if the
members are equally divided, they shall state the point or points on which they differ,
and the case shall be referred by the President of the Appellate Tribunal for hearing on
such point or points by one or more of the other members of the Appellate Tribunal,
and such point or points shall be decided according to the opinion of the majority of
the members of the Appellate Tribunal who have heard the case, including those who
first heard it.
(5) Subject to the provisions of this Act, the Appellate Tribunal shall have powers to
regulate its own procedure and the procedure of Benches thereof in all matters arising
out of the exercise of its powers or of the discharge of its functions, including the
places at which the Benches shall hold their sittings.
(6) The Appellate Tribunal shall, for the purpose of discharging its functions, have
all the powers which are vested in the income tax authorities referred to in Section
131, and any proceeding before the Appellate Tribunal shall be deemed to be a judicial
proceeding within the meaning of Sections 193 and 228 and for the purpose of Section
196 of the Indian Penal Code, 1860 (45 of 1860), and the Appellate Tribunal shall be
deemed to be a civil court for all the purposes of Section 195 and Chapter XXXV of the
Code of Criminal Procedure, 1898 (5 of 1898).
[See amendment by Act 14 of 2010, Section 48, w.r.e.f 1-6-1981 in the text prior
to omission by Act 49 of 2005]
257. Statement of cases to Supreme Court in certain cases.— If, on an
application made 3579 [against an order made under Section 254 before the 1st day of
October, 1998] under Section 256 the Appellate Tribunal is of the opinion that, on
account of a conflict in the decisions of the High Courts in respect of any particular
question of law, it is expedient that a reference should be made direct to the Supreme
Court, the Appellate Tribunal may draw up a statement of the case and refer it through
its President direct to the Supreme Court.
258. Power of High Court or Supreme Court to require statement to be
amended.—3580 [* * *]
259. Case before High Court to be heard by not less than two judges.—3581 [*
* *]
3582 [260. Effect to the decisions of Supreme Court and of the National Tax
Tribunal.— (1) The Supreme Court upon hearing any reference made to it by the
Appellate Tribunal under Section 257 shall decide the question of law raised therein,
and shall deliver its judgment thereon containing the grounds on which such decision
is founded, and a copy of the judgment shall be sent under the seal of the Court and
the signature of the Registrar to the Appellate Tribunal which shall pass such orders as
are necessary to dispose of the case conforming to such judgment.
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-
(2) Where the National Tax Tribunal delivers a judgment in an appeal filed before it
or in any matter transferred to it under the National Tax Tribunal Act, 2005, effect
shall be given to the order of that Tribunal by the assessing officer on the basis of
certified copy of the judgment.
(3) The cost of any reference to the Supreme Court which shall not include the fee
for making the reference shall be at the discretion of the Court.]
260-A. Appeal to High Court.— (1) An appeal shall lie to the High Court from
every order passed in appeal by the Appellate Tribunal 3583 [before the date of
establishment of the National Tax Tribunal], if the High Court is satisfied that the case
involves a substantial question of law.
(2) 3584 [The 3585 [Principal Chief Commissioner or Chief Commissioner] or the 3586
[Principal Commissioner or Commissioner] or an assessee aggrieved by any order
passed by the Appellate Tribunal may file an appeal to the High Court and such]
appeal under this sub-section shall be—
(a) filed within one hundred and twenty days from the date on which the order
appealed against is 3587 [received by the assessee or the FN1191[Principal Chief
Commissioner or Chief Commissioner] or FN1192[Principal Commissioner or
Commissioner]];
(b) 3590 [* * *]
(c) in the form of a memorandum of appeal precisely stating therein the
substantial question of law involved.
3591 [(2-A) The High Court may admit an appeal after the expiry of the period of one
hundred and twenty days referred to in clause (a) of sub-section (2), if it is satisfied
that there was sufficient cause for not filing the same within that period.]
(3) Where the High Court is satisfied that a substantial question of law is involved
in any case, it shall formulate that question.
(4) The appeal shall be heard only on the question so formulated, and the
respondents shall, at the hearing of the appeal, be allowed to argue that the case does
not involve such question:
Provided that nothing in this sub-section shall be deemed to take away or abridge
the power of the court to hear, for reasons to be recorded, the appeal on any other
substantial question of law not formulated by it, if it is satisfied that the case involves
such question.
(5) The High Court shall decide the question of law so formulated and deliver such
judgment thereon containing the grounds on which such decision is founded and may
award such cost as it deems fit.
(6) The High Court may determine any issue which—
(a) has not been determined by the Appellate Tribunal; or
(b) has been wrongly determined by the Appellate Tribunal, by reason of a
decision on such question of law as is referred to in sub-section (1).
3592
[(7) Save as otherwise provided in this Act, the provisions of the Code of Civil
Procedure, 1908, relating to appeals to the High Court shall, as far as may be, apply in
the case of appeals under this section.]
260-B. Case before High Court to be heard by not less than two Judges.—
(1) When an appeal has been filed before the High Court under Section 260-A, it shall
be heard by a bench of not less than two Judges of the High Court, and shall be
decided in accordance with the opinion of such Judges or of the majority, if any, of
such Judges.
(2) Where there is no such majority, the Judges shall state the point of law upon
which they differ and the case shall then be heard upon that point only by one or more
of the other Judges of the High Court and such point shall be decided according to the
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-
opinion of the majority of the Judges who have heard the case including those who
first heard it.]
261. Appeal to Supreme Court.— An appeal shall lie to the Supreme Court from
any judgment of the High Court delivered 3593 [before the establishment of the National
Tax Tribunal] on a reference made under Section 256 3594 [against an order made under
Section 254 before the 1st day of October, 1998 or an appeal made to High Court in
respect of an order passed under Section 254 on or after that date] in any case which
the High Court certifies to be a fit one for appeal to the Supreme Court.
262. Hearing before Supreme Court.— (1) The provisions of the Code of Civil
Procedure, 1908 (5 of 1908), relating to appeals to the Supreme Court shall, so far as
may be, apply in the case of appeals under Section 261 as they apply in the case of
appeals from decrees of a High Court:
Provided that nothing in this section shall be deemed to affect the provisions of
sub-section (1) of Section 260 or Section 265.
(2) The costs of the appeal shall be in the discretion of the Supreme Court.
(3) Where the judgment of the High Court is varied or reversed in the appeal, effect
shall be given to the order of the Supreme Court in the manner provided in Section
260 in the case of a judgment of the High Court.
263. Revision of orders prejudicial to revenue.— (1) The 3595 [Principal
Commissioner or Commissioner] may call for and examine the record of any
proceeding under this Act, and if he considers that any order passed therein by the
Assessing Officer is erroneous in so far as it is prejudicial to the interest of the
revenue, he may, after giving the assessee an opportunity of being heard and after
making or causing to be made such inquiry as he deems necessary, pass such order
thereon as the circumstances of the case justify, including an order enhancing or
modifying the assessment, or cancelling the assessment and directing a fresh
assessment.
3596[Explanation 1].—For the removal of doubts, it is hereby declared that, for the
purposes of this sub-section,—

(a) an order passed on or before or after the 1st day of June, 1988 by the
Assessing Officer shall include—
(i) an order of assessment made by the Assistant Commissioner or Deputy
Commissioner or the Income Tax Officer on the basis of the directions
issued by the Joint Commissioner under Section 144-A;
(ii) an order made by the Joint Commissioner in exercise of the powers or in
the performance of the functions of an Assessing Officer conferred on, or
assigned to, him under the orders or directions issued by the Board or by
the 3597 [Principal Chief Commissioner or Chief Commissioner] or 3598
[Principal Director General or Director General] or Commissioner authorised
by the Board in this behalf under Section 120;
(b) “record” shall include and shall be deemed always to have included all
records relating to any proceeding under this Act available at the time of
examination by the FN1193[Principal Commissioner or Commissioner];
(c) where any order referred to in this sub-section and passed by the Assessing
Officer had been the subject-matter of any appeal filed on or before or after
the 1st day of June, 1988, the powers of the FN1194[Principal Commissioner or
Commissioner] under this sub-section shall extend and shall be deemed
always to have extended to such matters as had not been considered and
decided in such appeal.
3601 [Explanation 2.— For the purposes of this section, it is hereby declared that an
order passed by the Assessing Officer shall be deemed to be erroneous in so far as it is

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-
prejudicial to the interests of the revenue, if, in the opinion of the Principal
Commissioner or Commissioner,—
(a) the order is passed without making inquiries or verification which should
have been made;
(b) the order is passed allowing any relief without inquiring into the claim;
(c) the order has not been made in accordance with any order, direction or
instruction issued by the Board under Section 119; or
(d) the order has not been passed in accordance with any decision which is
prejudicial to the assessee, rendered by the jurisdictional High Court or
Supreme Court in the case of the assessee or any other person.]
(2) No order shall be made under sub-section (1) after the expiry of two years from
the end of the financial year in which the order sought to be revised was passed.
(3) Notwithstanding anything contained in sub-section (2), an order in revision
under this section may be passed at any time in the case of an order which has been
passed in consequence of, or to give effect to, any finding or direction contained in an
order of the Appellate Tribunal, 3602 [National Tax Tribunal,] the High Court or the
Supreme Court.
Explanation.—In computing the period of limitation for the purposes of sub-section
(2), the time taken in giving an opportunity to the assessee to be reheard under the
proviso to Section 129 and any period during which any proceeding under this section
is stayed by an order or injunction of any court shall be excluded.
264. Revision of other orders.— (1) In the case of any order other than an order
to which Section 263 applies passed by an authority subordinate to him, the 3603
[Principal Commissioner or Commissioner] may, either of his own motion or on an
application by the assessee for revision, call for the record of any proceeding under
this Act in which any such order has been passed and may make such inquiry or cause
such inquiry to be made and, subject to the provisions of this Act, may pass such
order thereon, not being an order prejudicial to the assessee, as he thinks fit.
(2) The FN1195[Principal Commissioner or Commissioner] shall not of his own motion
revise any order under this section if the order has been made more than one year
previously.
(3) In the case of an application for revision under this section by the assessee, the
application must be made within one year from the date on which the order in
question was communicated to him or the date on which he otherwise came to know
of it, whichever is earlier:
Provided that the FN1196[Principal Commissioner or Commissioner] may, if he is
satisfied that the assessee was prevented by sufficient cause from making the
application within that period, admit an application made after the expiry of that
period.
(4) The FN1197[Principal Commissioner or Commissioner] shall not revise any order
under this section in the following cases—
(a) where an appeal against the order lies to the Deputy Commissioner (Appeals)
or to the FN1198[Principal Commissioner or Commissioner] (Appeals) or to the
Appellate Tribunal but has not been made and the time within which such
appeal may be made has not expired, or, in the case of an appeal to the FN1199
[Principal Commissioner or Commissioner] (Appeals) or to the Appellate
Tribunal, the assessee has not waived his right of appeal; or
(b) where the order is pending on an appeal before the Deputy Commissioner
(Appeals); or
(c) where the order has been made the subject of an appeal to the FN1200[Principal
Commissioner or Commissioner] (Appeals) or to the Appellate Tribunal.
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-
(5) Every application by an assessee for revision under this section shall be
accompanied by a fee of 3610 [five hundred rupees].
3611
[(6) On every application by an assessee for revision under this sub-section,
made on or after the 1st day of October, 1998, an order shall be passed within one
year from the end of the financial year in which such application is made by the
assessee for revision.
Explanation.—In computing the period of limitation for the purposes of this sub-
section, the time taken in giving an opportunity to the assessee to be reheard under
the proviso to Section 129 and any period during which any proceeding under this
section is stayed by an order or injunction of any court shall be excluded.
(7) Notwithstanding anything contained in sub-section (6), an order in revision
under sub-section (6) may be passed at any time in consequence of or to give effect
to any finding or direction contained in an order of the Appellate Tribunal, 3612 [National
Tax Tribunal,] the High Court or the Supreme Court.]
Explanation 1.—An order by the FN1201[Principal Commissioner or Commissioner]
declining to interfere shall, for the purposes of this section, be deemed not to be an
order prejudicial to the assessee.
Explanation 2.—For purposes of this section the Deputy Commissioner (Appeals)
shall be deemed to be an authority subordinate to the FN1202[Principal Commissioner or
Commissioner].
265. Tax to be paid notwithstanding reference, etc.— Notwithstanding that a
reference has been made to the High Court or the Supreme Court or an appeal has
been preferred to the Supreme Court, tax shall be payable in accordance with the
assessment made in the case.
266. Execution for costs awarded by the Supreme Court.— The High Court
may, on petition made for the execution of the order of the Supreme Court in respect
of any cost awarded thereby, transmit the order for execution to any court subordinate
to the High Court.
3615 [267. Amendment of assessment on appeal.— Where as a result of an
appeal under Section 246 3616 [or Section 246-A] or Section 253, any change is made
in the assessment of a body of individuals or an association of persons or a new
assessment of a body of individuals or an association of persons is ordered to be
made, the 3617 [* * *] 3618 [Principal Commissioner or Commissioner] (Appeals) or the
Appellate Tribunal, as the case may be, shall pass an order authorising the Assessing
Officer either to amend the assessment made on any member of the body or
association or make a fresh assessment on any member of the body or association.]
268. Exclusion of time taken for copy.— In computing the period of limitation
prescribed for an appeal 3619 [or an application] under this Act, the day on which the
order complained of was served and, if the assessee was not furnished with a copy of
the order when the notice of the order was served upon him, the time requisite for
obtaining a copy of such order, shall be excluded.
3620
[268-A. Filing of appeal or application for reference by income tax
authority.— (1) The Board may, from time to time, issue orders, instructions or
directions to other income tax authorities, fixing such monetary limits as it may deem
fit, for the purpose of regulating filing of appeal or application for reference by any
income tax authority under the provisions of this chapter.
(2) Where, in pursuance of the orders, instructions or directions issued under sub-
section (1), an income tax authority has not filed any appeal or application for
reference on any issue in the case of an assessee for any assessment year, it shall not
preclude such authority from filing an appeal or application for reference on the same
issue in the case of—
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(a) the same assessee for any other assessment year; or
(b) any other assessee for the same or any other assessment year.
(3) Notwithstanding that no appeal or application for reference has been filed by an
income tax authority pursuant to the orders or instructions or directions issued under
sub-section (1), it shall not be lawful for an assessee, being a party in any appeal or
reference, to contend that the income tax authority has acquiesced in the decision on
the disputed issue by not filing an appeal or application for reference in any case.
(4) The Appellate Tribunal or Court, hearing such appeal or reference, shall have
regard to the orders, instructions or directions issued under sub-section (1) and the
circumstances under which such appeal or application for reference was filed or not
filed in respect of any case.
(5) Every order, instruction or direction which has been issued by the Board fixing
monetary limits for filing an appeal or application for reference shall be deemed to
have been issued under sub-section (1) and the provisions of sub-sections (2), (3)
and (4) shall apply accordingly.]
269. Definition of “High Court”.— In this Chapter,—
“High Court” means,—
(i) in relation to any State, the High Court for that State;
(ii) in relation to the Union Territory of Delhi, the High Court of Delhi;
(iii) 3621 [* * *]
(iv) in relation to the Union Territory of the Andaman and Nicobar Islands, the
High Court at Calcutta;
(v) in relation to the Union Territory of Lakshadweep, the High Court of Kerala;
(v-a) in relation to the Union Territory of Chandigarh, the High Court of Punjab
and Haryana;
(vi) in relation to the Union Territories of Dadra and Nagar Haveli and 3622 [* * *]
Daman and Diu, the High Court of Bombay; and
(vii) in relation to the Union Territory of Pondicherry, the High Court at Madras.
269-A. Definitions.— In this Chapter, unless the context otherwise requires,—
(a) “apparent consideration”,—
(1) in relation to any immovable property transferred, being immovable
property of the nature referred to in sub-clause (i) of clause (e), means—
(i) if the transfer is by way of sale, the consideration for such transfer as
specified in the instrument of transfer;
(ii) if the transfer is by way of exchange,—
(A) in a case where the consideration for the transfer consists of a thing
or things only, the price that such thing or things would ordinarily
fetch on sale in the open market on the date of execution of the
instrument of transfer;
(B) in a case where the consideration for the transfer consists of a thing
or things and a sum of money, the aggregate of the price that such
thing or things would ordinarily fetch on sale in the open market on
the date of execution of the instrument of transfer and such sum;
(iii) if the transfer is by way of lease,—
(A) in a case where the consideration for the transfer consists of
premium only, the amount of premium as specified in the instrument
of transfer;
(B) in a case where the consideration for the transfer consists of rent
only, the aggregate of the moneys (if any) payable by way of rent and
the amounts for the service or things forming part of or constituting
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the rent, as specified in the instrument of transfer;
(C) in a case where the consideration for the transfer consists of
premium and rent, the aggregate of the amount of the premium, the
moneys (if any) payable by way of rent and the amounts for the
service or things forming part of or constituting the rent, as specified
in the instrument of transfer,
and where the whole or any part of the consideration for such transfer
is payable on any date or dates falling after the date of such transfer
the value of the consideration payable after such date shall be
deemed to be the discounted value of such consideration, as on the
date of such transfer, determined by adopting the rate of interest at
eight per cent per annum;
(2) in relation to any immovable property transferred, being immovable
property of the nature referred to in sub-clause (ii) of clause (e), means—
(i) in a case where the consideration for the transfer consists of a sum of
money only, such sum;
(ii) in a case where the consideration for the transfer consists of a thing or
things only, the price that such thing or things would ordinarily fetch on
sale in the open market on the date of the transfer;
(iii) in a case where the consideration for the transfer consists of a thing or
things and a sum of money, the aggregate of the price that such thing or
things would ordinarily fetch on sale in the open market on the date of
the transfer and such sum,
and where the whole or any part of the consideration for such transfer is
payable on any date or dates falling after the date of such transfer, the
value of the consideration payable after such date shall be deemed to be
the discounted value of such consideration, as on the date of such
transfer, determined by adopting the rate of interest at eight per cent
per annum;
(b) “competent authority” means a Joint Commissioner authorised by the
Central Government under Section 269-B to perform the functions of a
competent authority under this Chapter;
(c) “court” means a principal civil court of original jurisdiction unless the
Central Government has appointed (as it is hereby authorised to do) any
special judicial officer within any specified local limits to perform the
functions of the court under this Chapter;
(d) “fair market value”,—
(i) in relation to any immovable property transferred by way of sale or
exchange, being immovable property of the nature referred to in sub-
clause (i) of clause (e), means the price that the immovable property
would ordinarily fetch on sale in the open market on the date of
execution of the instrument of transfer of such property;
(ii) in relation to any immovable property transferred by way of lease, being
immovable property of the nature referred to in sub-clause (i) of clause
(e), means the premium that such transfer would ordinarily fetch in the
open market on the date of execution of the instrument of transfer of
such property, if the consideration for such transfer had been by way of
premium only;
(iii) in relation to any immovable property transferred, being immovable
property of the nature referred to in sub-clause (ii) of clause (e), means
the consideration in the form of money that such transfer would
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ordinarily fetch in the open market on the date of the transfer, if such
transfer had been made only for consideration in money;
(e) “immovable property” means,—
(i) any land or any building or part of a building, and includes, where any land
or any building or part of a building is transferred together with any
machinery, plant, furniture, fittings or other things, such machinery, plant,
furniture, fittings or other things also.
Explanation.—For the purposes of this sub-clause, land, building, part of a
building, machinery, plant, furniture, fittings and other things include any
rights therein;
(ii) any rights of the nature referred to in clause (b) of sub-section (1) of
Section 269-AB;
(f) “instrument of transfer” means the instrument of transfer registered under
the Registration Act, 1908 (16 of 1908), or, as the case may be, the
statement registered under Section 269-AB with the competent authority;
(g) “person interested”, in relation to any immovable property, includes all
persons claiming, or entitled to claim, an interest in the compensation payable
on account of the acquisition of that property under this Chapter;
(h) “transfer”,—
(i) in relation to any immovable property referred to in sub-clause (i) of clause
(e), means transfer of such property by way of sale or exchange or lease for
a term of not less than twelve years, and includes allowing the possession
of such property to be taken or retained in part performance of a contract of
the nature referred to in Section 53-A of the Transfer of Property Act, 1882
(4 of 1882).
Explanation.—For the purposes of this sub-clause, a lease which provides for
the extension of the term thereof by a further term or terms shall be
deemed to be a lease for a term of not less than twelve years if the
aggregate of the term for which such lease has been granted and the
further term or terms for which it can be so extended is not less than
twelve years;
(ii) in relation to any immovable property of the nature referred to in sub-
clause (ii) of clause (e), means the doing of anything (whether by way of
transfer of shares in a cooperative society or company or by way of any
agreement or arrangement or in any other manner whatsoever) which has
the effect of transferring, or enabling the enjoyment of, such property.
269-AB. Registration of certain transactions.— (1) The following transactions,
that is to say,—
(a) every transaction involving the allowing of the possession of any immovable
property to be taken or retained in part performance of a contract of the
nature referred to in Section 53-A of the Transfer of Property Act, 1882 (4 of
1882), and
(b) every transaction (whether by way of becoming a member of, or acquiring
shares in, a cooperative society, company or other association of persons or by
way of any agreement or any arrangement of whatever nature) whereby a
person acquires any rights in or with respect to any building or part of a
building (whether or not including any machinery, plant, furniture, fittings or
other things therein) which has been constructed or which is to be constructed
(not being a transaction by way of sale, exchange or lease of such building or
part of a building which is required to be registered under the Registration
Act, 1908 (16 of 1908),
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shall be reduced to writing in the form of a statement by each of the parties to such
transaction or by any of the parties to such transaction acting on behalf of himself and
on behalf of the other parties.
(2) Every statement in respect of a transaction referred to in sub-section (1) shall—
(a) be in the prescribed form;
(b) set forth such particulars as may be prescribed; and
(c) be verified in the prescribed manner,
and registered with the competent authority, in such manner and within such time as
may be prescribed, by each of the parties to such transaction or by any of the parties
to such transaction acting on behalf of himself and on behalf of the other parties.
269-B. Competent Authority.— (1) The Central Government may, by general or
special order published in the Official Gazette,—
(a) authorise as many Joint Commissioners as it thinks fit, to perform the
functions of a competent authority under this Chapter; and
(b) define the local limits within which the competent authorities shall perform
their functions under this Chapter.
(2) In respect of any function to be performed by a competent authority under any
provision of this Chapter in relation to any immovable property, referred to in Section
269-C, the competent authority referred to therein shall,—
(a) in a case where such property is situate within the local limits of jurisdiction
of only one competent authority, be such competent authority;
(b) in a case where such property is situate within the local limits of the
jurisdiction of two or more competent authorities, be the competent authority
empowered to perform such functions in relation to such property in
accordance with rules made in this behalf by the Board under Section 295.
Explanation.—For the purposes of this sub-section, immovable property, being
rights of the nature referred to in clause (b) of sub-section (1) of Section 269-AB in, or
with respect to, any building or part of a building which has been constructed or which
is to be constructed shall be deemed to be situate at the place where the building has
been constructed or is to be constructed.
(3) No person shall be entitled to call in question the jurisdiction of a competent
authority in respect of any immovable property after the expiry of thirty days from the
date on which such competent authority initiates proceedings under Section 269-D for
the acquisition of such property.
(4) Subject to the provisions of sub-section (3), where the jurisdiction of a
competent authority is questioned, the competent authority shall, if satisfied with the
correctness of the claim, by order in writing, determine the question accordingly and if
he is not so satisfied, he shall refer the question to the Board and the Board shall, by
order in writing, determine the question.
269-C. Immovable property in respect of which proceedings for acquisition
may be taken.— (1) Where the competent authority has reason to believe that any
immovable property of a fair market value exceeding one hundred thousand rupees
has been transferred by a person (hereafter in this Chapter referred to as the
transferor) to another person (hereafter in this Chapter referred to as the transferee)
for an apparent consideration which is less than the fair market value of the property
and that the consideration for such transfer as agreed to between the parties has not
been truly stated in the instrument of transfer with the object of—
(a) facilitating the reduction or evasion of the liability of the transferor to pay
tax, under this Act in respect of any income arising from the transfer; or
(b) facilitating the concealment of any income or any moneys or other assets
which have not been or which ought to be disclosed by the transferee for the
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purposes of the Indian Income Tax Act, 1922 (11 of 1922), or this Act or the
Wealth Tax Act, 1957 (27 of 1957),
the competent authority may, subject to the provisions of this Chapter, initiate
proceedings for the acquisition of such property under this Chapter:
Provided that before initiating such proceedings, the competent authority shall
record his reasons for doing so:
Provided further that no such proceedings shall be initiated unless the competent
authority has reason to believe that the fair market value of the property exceeds the
apparent consideration therefor by more than fifteen per cent of such apparent
consideration.
(2) In any proceedings under this Chapter in respect of any immovable property,—
(a) where the fair market value of such property exceeds the apparent
consideration therefor by more than twenty-five per cent of such apparent
consideration, it shall be conclusive proof that the consideration for such
transfer as agreed to between the parties has not been truly stated in the
instrument of transfer;
(b) where the property has been transferred for an apparent consideration which
is less than its fair market value, it shall be presumed, unless the contrary is
proved, that the consideration for such transfer as agreed to between the
parties has not been truly stated in the instrument of transfer with such object
as is referred to in clause (a) or clause (b) of sub-section (1).
269-D. Preliminary notice.— (1) The competent authority shall initiate
proceedings for the acquisition, under this Chapter, of any immovable property
referred to in Section 269-C by notice to that effect published in the Official Gazette:
Provided that no such proceedings shall be initiated in respect of any immovable
property after the expiration of a period of nine months from the end of the month in
which the instrument of transfer in respect of such property is registered under the
Registration Act, 1908 (16 of 1908), or, as the case may be, Section 269-AB:
Provided further that—
(a) in a case where it is determined under sub-section (4) of Section 269-B by
the competent authority who has initiated proceedings for the acquisition of
any immovable property under this Chapter or by the Board that such
competent authority has no jurisdiction to initiate such proceedings the
competent authority having jurisdiction may initiate such proceedings within—
(i) the period of nine months specified in the foregoing proviso; or
(ii) a period of thirty days from the date of such determination,
whichever period expires later;
(b) in a case where proceedings for the acquisition of any immovable property
under this Chapter could not be initiated during any period of time by reason
of any injunction or order of any court prohibiting the initiation of such
proceedings or preventing the examination of documents or other materials
required to be examined for the purpose of determining whether such
proceedings should be initiated, the time of the continuance of the injunction
or order, the day on which it was issued or made and the day on which it was
withdrawn shall be excluded in computing the period during which such
proceedings may be initiated under this sub-section.
(2) The competent authority shall—
(a) cause a notice under sub-section (1) in respect of any immovable property to
be served on the transferor, the transferee, the person in occupation of the
property, if the transferee is not in occupation thereof, and on every person
whom the competent authority knows to be interested in the property;
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(b) cause such notice to be published—
(i) in his office by affixing a copy thereof to a conspicuous place;
(ii) in the locality in which the immovable property to which it relates is
situate, by affixing a copy thereof to a conspicuous part of the property and
also by making known in such manner as may be prescribed the substance
of such notice at convenient places in the said locality.
Explanation.—The provisions of the Explanation to sub-section (2) of Section 269-B
shall apply for the purposes of this sub-section as they apply for the purposes of that
sub-section.
269-E. Objections.— (1) Objections against the acquisition of the immovable
property in respect of which a notice has been published in the Official Gazette under
sub-section (1) of Section 269-D may be made—
(a) by the transferor or the transferee or any other person referred to in clause
(a) of sub-section (2) of that section within a period of forty-five days from
the date of such publication or a period of thirty days from the date of service
of notice on such person under the said clause, whichever period expires later;
(b) by any other person interested in such immovable property, within forty-five
days from the date of such publication.
(2) Every objection under sub-section (1) shall be made to the competent authority
in writing.
(3) For the removal of doubts, it is hereby declared that objection may be made
under sub-section (1) that the provisions of clause (a) of sub-section (2) of Section
269-C do not apply in relation to any immovable property on the ground that the fair
market value of such property does not exceed the apparent consideration therefor by
more than twenty-five per cent of such apparent consideration.
269-F. Hearing of objections.— (1) The competent authority shall fix a day and
place for the hearing of the objections made under Section 269-E against the
acquisition under this Chapter of any immovable property, and shall give notice of the
same to every person who has made such objection:
Provided that such notice shall also be given to the transferee of such property
even if he has not made any such objection.
(2) Every person to whom a notice is given under sub-section (1) shall have the
right to be heard at the hearing of the objections.
(3) The competent authority shall have the power to adjourn the hearing of the
objections from time to time.
(4) The competent authority may, before disposing of the objections, make such
further inquiry as he thinks fit.
(5) The decision of the competent authority in respect of the objections heard shall
be in writing and shall state the reasons for the decision with respect to each
objection.
(6) If after hearing the objections, if any, and after taking into account all the
relevant material on record, the competent authority is satisfied that,—
(a) the immovable property to which the proceedings relate is of a fair market
value exceeding one hundred thousand rupees;
(b) the fair market value of such property exceeds the apparent consideration
thereof by more than fifteen per cent of such apparent consideration; and
(c) the consideration for such transfer as agreed to between the parties has not
been truly stated in the instrument of transfer with such object as is referred
to in clause (a) or clause (b) of sub-section (1) of Section 269-C,
he may, after obtaining the approval of the 3623 [Principal Commissioner or
Commissioner], make an order for the acquisition of the property under this Chapter.
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Explanation.—In this sub-section, FN1203[Principal Commissioner or Commissioner],

in relation to a competent authority, means such FN1204[Principal Commissioner or
Commissioner] as the Board may, by general or special order in writing, specify in this
behalf.
(7) If the competent authority is not satisfied as provided in sub-section (6), he
shall, by order in writing, declare that the property will not be acquired under this
Chapter.
(8) The competent authority shall serve a copy of his order under sub-section (6) or
sub-section (7), as the case may be, on the transferor, the transferee and on every
person who has made objections against such acquisition under Section 269-E.
(9) In any proceedings under this Chapter in respect of any immovable property, no
objection shall be entertained on the ground that although the apparent consideration
for the property is less than the fair market value of the property on the date of the
execution of the instrument of transfer or where such property is of the nature referred
to in sub-clause (ii) of clause (e) of Section 269-A on the date of the transfer the
consideration as agreed to between the parties has been truly stated in the instrument
of transfer because such consideration was agreed to having regard to the price that
such property would have ordinarily fetched on such transfer in the open market on
the date of the conclusion of the agreement to transfer the property, except where
such agreement has been registered under the Registration Act, 1908 (16 of 1908).
269-G. Appeal against order for acquisition.— (1) An appeal may be preferred
to the Appellate Tribunal against the order for the acquisition of any immovable
property made by the competent authority under Section 269-F,—
(a) by the transferor or the transferee or any other person referred to in sub-
section (8) of that section, within a period of forty-five days from the date of
such order or a period of thirty days from the date of service of a copy of the
order on such person under the said sub-section, whichever period expires
later;
(b) by any other person interested in such immovable property, within forty-five
days from the date of such order:
Provided that the Appellate Tribunal may, on an application made in this behalf
before the expiry of the said period of forty-five days or, as the case may be, thirty
days, permit, by order, the appeal to be presented within such further period as may
be specified therein if the applicant satisfies the Appellate Tribunal that he has
sufficient cause for not being able to present the appeal within the said period of forty-
five days or, as the case may be, thirty days.
(2) Every appeal under this section shall be in the prescribed form and shall be
verified in the prescribed manner and shall be accompanied by a fee of two hundred
rupees.
(3) The Appellate Tribunal shall fix a day and place for the hearing of the appeal
and shall give notice of the same to the appellant and to the competent authority.
(4) The Appellate Tribunal may, after giving the appellant and the competent
authority an opportunity of being heard, pass such orders thereon as it thinks fit.
(5) The Appellate Tribunal may, at any time within thirty days from the date of the
order, with a view to rectifying any mistake apparent from the record, amend any
order passed by it under sub-section (4) and shall make such amendment if the
mistake is brought to its notice by the appellant or the competent authority:
Provided that if any such amendment is likely to affect any person prejudicially, it
shall not be made without giving to such person a reasonable opportunity of being
heard.
(6) The Appellate Tribunal shall send a copy of any orders passed under this section
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to the appellant and 3626 [Principal Commissioner or Commissioner].
(7) Save as provided in Section 269-H, orders passed by the Appellate Tribunal on
appeal shall be final.
(8) Every appeal under this section shall be disposed of as expeditiously as possible
and endeavour shall be made to dispose of every such appeal within ninety days from
the date on which it is presented.
(9) The provisions of Section 255 [except sub-section (3) thereof] shall, so far as
may be, apply in relation to the powers, functions and proceedings of the Appellate
Tribunal under this section as they apply in relation to the powers, functions and
proceedings of the Appellate Tribunal under Chapter XX.
269-H. Appeal to High Court.— (1) The 3627 [Principal Commissioner or
Commissioner] or any person aggrieved by any order of the Appellate Tribunal under
Section 269-G may, within sixty days of the date on which he is served with notice of
such order under that section, prefer an appeal against such order to the High Court
on any question of law:
Provided that the High Court may, on an application made in this behalf before the
expiry of the said period of sixty days, permit, by order, the appeal to be presented
within such further period as may be specified therein, if the applicant satisfies the
High Court that he has sufficient cause for not being able to present the appeal within
the said period of sixty days.
(2) An appeal under sub-section (1) shall be heard by a Bench of not less than two
judges of the High Court and the provisions of Section 259 shall apply in relation to
any such appeal as they apply in relation to a case referred to the High Court under
Section 256.
(3) The costs of the appeal shall be in the discretion of the High Court.
269-I. Vesting of property in Central Government.— (1) As soon as may be
after the order for acquisition of any immovable property made under sub-section (6)
of Section 269-F becomes final, the competent authority may, by notice in writing,
order any person who may be in possession of the immovable property to surrender or
deliver possession thereof to the competent authority or any other person duly
authorised in writing by the competent authority in this behalf, within thirty days of
the date of the service of the notice.
Explanation.—For the purposes of this sub-section, an order for the acquisition of
any immovable property (hereafter in this Explanation referred to as the order for
acquisition) made under sub-section (6) of Section 269-F becomes final,—
(a) in a case where the order for acquisition is not made the subject of an appeal
to the Appellate Tribunal under Section 269-G, upon the expiry of the period
during which such appeal may be presented under that section;
(b) in a case where the order for acquisition is made the subject of an appeal to
the Appellate Tribunal under Section 269-G,—
(i) if the order for acquisition is confirmed by the Appellate Tribunal and the
order of the Appellate Tribunal is not made the subject of an appeal to the
High Court under Section 269-H, upon the expiry of the period during which
such appeal may be presented under that section to the High Court;
(ii) if the order of the Appellate Tribunal is made the subject of an appeal to the
High Court under Section 269-H, upon the confirmation of order for acquisition
by the High Court.
(2) If any person refuses or fails to comply with the notice under sub-section (1),
the competent authority or other person duly authorised by the competent authority
under that sub-section may take possession of the immovable property and may, for
that purpose, use such force as may be necessary.
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(3) Notwithstanding anything contained in sub-section (2), the competent authority
may, for the purpose of taking possession of any property referred to in sub-section
(1), requisition the services of any police officer to assist him and it shall be the duty
of such officer to comply with such requisition.
(4) When the possession of the immovable property is surrendered or delivered
under sub-section (1) to the competent authority or a person duly authorised by him
in that behalf or, as the case may be, when the possession thereof is taken under sub-
section (2) or sub-section (3) by such authority or person, the property shall vest
absolutely in the Central Government free from all encumbrances:
Provided that nothing in this sub-section shall operate to discharge the transferee
or any other person (not being the Central Government) from liability in respect of
such encumbrances and, notwithstanding anything contained in any other law, such
liability may be enforced against the transferee or such other person by a suit for
damages.
(5) Notwithstanding anything contained in sub-section (4) or any other law or any
instrument or any agreement for the time being in force, where an order for
acquisition of any immovable property, being rights of the nature referred to in clause
(b) of sub-section (1) of Section 269-AB, in or with respect to any building or part of a
building which has been constructed or which is to be constructed has become final,
then, such order shall, by its own force, have the effect of—
(a) vesting such rights in the Central Government, and
(b) placing the Central Government in the same position in relation to such
rights as the person in whom such rights would have continued to vest if such
order had not become final,
and the competent authority may issue such directions as he may deem fit to any
person concerned for taking the necessary steps for compliance with the provisions of
clauses (a) and (b).
(6) In the case of any immovable property, being rights of the nature referred to in
clause (b) of sub-section (1) of Section 269-AB, in or with respect to any building or
part of a building, the provisions of sub-sections (1), (2) and (3) shall have effect as if
the references to immovable property therein were a reference to such building or, as
the case may be, part of such building.
269-J. Compensation.— (1) Where any immovable property is acquired under this
Chapter, the Central Government shall pay for such acquisition compensation which
shall be a sum equal to the aggregate of the amount of the apparent consideration for
its transfer and fifteen per cent of the said amount:
Provided that in a case where, under the agreement between the parties
concerned, the whole or any part of the consideration for the transfer of such
immovable property is payable on any date or dates falling after the date on which
such property is acquired, the compensation payable by the Central Government shall
be the aggregate of the following amounts, namely:—
(i) an amount equal to fifteen per cent of the apparent consideration;
(ii) the amount, if any, that has become payable in accordance with such
agreement on or before the date on which such property is acquired under this
Chapter; and
(iii) the amount payable after the date on which such property is acquired under
this Chapter.
(2) Notwithstanding anything contained in sub-section (1),—
(a) where, after the transfer to the transferee of the property referred to in that
sub-section but before the vesting of the property in the Central Government,
the property has been damaged (otherwise than as a result of normal wear
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and tear), the compensation payable under that sub-section shall be reduced
by such amount as the competent authority and the persons entitled to the
compensation may agree within fifteen days of the vesting of the property in
the Central Government or in default of such agreement as the court may, on
a reference made to it in this behalf by the competent authority or by any
person duly authorised for the purpose by the competent authority, determine
to be the amount that may have to be expended for restoring the property to
the condition in which it was at the time of such transfer;
(b) where, after the transfer of such property to the transferee but before the
date of publication in the Official Gazette of the notice in respect of such
property under sub-section (1) of Section 269-D, any improvements have
been made to the property, whether by way of addition or alteration or in any
other manner, the compensation payable in respect of such property under
sub-section (1) shall be increased by such amount as the competent authority
and the persons entitled to the compensation may agree within fifteen days of
the vesting of the property in the Central Government or in default of such
agreement as the court may, on a reference made to it in this behalf by the
competent authority or by any person duly authorised for the purpose by the
competent authority, determine to be the amount spent for making such
improvements.
(3) Every reference under clause (a) or clause (b) of sub-section (2) shall be made
within thirty days of the date on which the immovable property to which it relates
becomes vested in the Central Government or within such further period as the court
may, on an application made in this behalf before the expiry of the said period and on
being satisfied that there is sufficient cause for doing so, allow and such reference
shall state clearly the compensation payable under sub-section (1) in respect of the
immovable property and the amount by which, according to the estimate of the
competent authority, such compensation shall be reduced under clause (a) or, as the
case may be, increased under clause (b), of sub-section (2).
(4) The amount by which the compensation payable under sub-section (1) in
respect of any immovable property acquired under this Chapter falls short of the
amount which would have been payable as compensation if that property had been
acquired under the Land Acquisition Act, 1894 (1 of 1894), after the issue of a
preliminary notice under Section 4 of that Act on the date of publication in the Official
Gazette of the notice in respect of the property under sub-section (1) of Section 269-
D, shall be deemed to have been realised by the Central Government as a penalty
from the transferee for being a party to a transfer with such object as is referred to in
clause (a) or clause (b) of sub-section (1) of Section 269-C, and no penalty shall be
levied for any assessment year on the transferee—
(a) under clause (iii) of sub-section (1) of Section 271, for concealing the
particulars or furnishing inaccurate particulars of so much of his income as is
utilised by him for paying to the transferor, by way of consideration for the
property, any amount in excess of the apparent consideration for the property,
notwithstanding that such amount is included in the income of the transferee;
(b) under clause (iii) of sub-section (1) of Section 18 of the Wealth Tax Act,
1957 (27 of 1957), for concealing the particulars or furnishing inaccurate
particulars of so much of his assets as are utilised by him for paying to the
transferor, by way of consideration for the property, any amount in excess of
the apparent consideration for the property, notwithstanding that such assets
are included in the net wealth of the transferee.
269-K. Payment or deposit of compensation.— (1) The amount of
compensation payable in accordance with the provisions of Section 269-J for the
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acquisition of any immovable property shall be tendered to the person or persons
entitled thereto, as soon as may be, after the property becomes vested in the Central
Government under sub-section (4) of Section 269-I:
Provided that in a case falling under the proviso to sub-section (1) of Section 269-
J, the amounts referred to in clause (i) and clause (ii) of that proviso shall be tendered
to the person or persons entitled thereto, as soon as may be, after the property
becomes vested in the Central Government under Section 269-I, and the amount
referred to in clause (iii) of the said proviso shall be tendered on the date on which it
would be payable in accordance with the agreement between the parties concerned,
and where such amount is payable in instalments on different dates, then in such
instalments on those dates:
Provided further that in any case where a reference is or has to be made under
sub-section (2) of Section 269-J to the court for the determination of the amount by
which the compensation payable under sub-section (1) of that section shall be
reduced or increased, the amount of such compensation as reduced or increased by
the amount estimated in that behalf by the competent authority for the purposes of
such reference shall be tendered as aforesaid.
(2) Notwithstanding anything contained in sub-section (1), if any dispute arises as
to the apportionment of the compensation amongst persons claiming to be entitled
thereto, the Central Government shall deposit in the court the compensation required
to be tendered under sub-section (1) and refer such dispute for the decision of the
court and the decision of the court thereon shall be final.
(3) Notwithstanding anything contained in sub-section (1), if the persons entitled
to compensation do not consent to receive it, or if there is no person competent to
alienate the immovable property, or if there is any dispute as to the title to receive the
compensation, the Central Government shall deposit in the court the compensation
required to be tendered under sub-section (1) and refer the matter for the decision of
the court:
Provided that nothing herein contained shall affect the liability of any person who
may receive the whole or any part of the compensation for any immovable property
acquired under this Chapter to pay the same to the person lawfully entitled thereto.
(4) If the Central Government fails to tender under sub-section (1) or deposit under
sub-section (2) or sub-section (3) the whole or any part of the compensation required
to be tendered or deposited thereunder within thirty days of the date on which the
immovable property to which the compensation relates becomes vested in the Central
Government under sub-section (4) of Section 269-I, the Central Government shall be
liable to pay simple interest at the rate of fifteen per cent per annum reckoned from
the day immediately following the date of expiry of the said period up to the date on
which it so tenders or deposits such compensation or, as the case may be, such part of
the compensation.
(5) Where any amount of compensation (including interest, if any, thereon) has
been deposited in the court under this section, the court may, either of its own motion
or on an application made by or on behalf of any party interested or claiming to be
interested in such amount, order the same to be invested in such Government or other
securities as it may think proper, and may direct the interest or other proceeds of any
such investment to be accumulated and paid in such manner as will, in its opinion,
give the parties interested therein the same benefit therefrom as they might have had
from the immovable property in respect whereof such amount has been deposited or
as near thereto as may be.
269-L. Assistance by Valuation Officers.— (1) The competent authority may,—
(a) for the purpose of initiating proceedings for the acquisition of any immovable
property under Section 269-C or for the purpose of making an order under
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-
Section 269-F in respect of any immovable property, require a Valuation
Officer to determine the fair market value of such property and report the
same to him;
(b) for the purpose of estimating the amount by which the compensation payable
under sub-section (1) of Section 269-J in respect of any immovable property
may be reduced or, as the case may be, increased under clause (a) or clause
(b) of sub-section (2) of that section, require the Valuation Officer to make
such estimate and report the same to him.
(2) The Valuation Officer to whom a reference is made under clause (a) or clause
(b) of sub-section (1) shall, for the purpose of dealing with such reference, have all
the powers that he has under Section 38-A of the Wealth Tax Act, 1957 (27 of 1957).
(3) If in an appeal under Section 269-G against the order for acquisition of any
immovable property, the fair market value of such property is in dispute, the Appellate
Tribunal shall, on a request being made in this behalf by the competent authority, give
an opportunity of being heard to any Valuation Officer nominated for the purpose by
the competent authority.
Explanation.—In this section, “Valuation Officer” has the same meaning as in clause
(r) of Section 2 of the Wealth Tax Act, 1957 (27 of 1957).
269-M. Powers of competent authority.— The competent authority shall have,
for the purposes of this Chapter, all the powers that a 3628 [Principal Commissioner or
Commissioner] has, for the purposes of this Act, under Section 131.
269-N. Rectification of mistakes.— With a view to rectifying any mistake
apparent from the record, the competent authority may amend any order made by him
under this Chapter at any time before the time for presenting an appeal against such
order has expired, either on his own motion or on the mistake being brought to his
notice by any person affected by the order:
heard.
269-O. Appearance by authorised representative or registered valuer.— Any
person who is entitled or required to attend before a competent authority or the
Appellate Tribunal in any proceeding under this Chapter, otherwise than when required
to attend personally for examination on oath or affirmation, may attend—
(a) by an authorised representative in connection with any matter;
(b) by a registered valuer in connection with any matter relating to the valuation
of any immovable property for the purposes of this Chapter or the estimation
of the amount by which the compensation payable under sub-section (1) of
Section 269-J for the acquisition of any immovable property may be reduced
or, as the case may be, increased in accordance with the provisions of clause
(a) or clause (b) of sub-section (2) of that section.
(i) “authorised representative” has the same meaning as in Section 288;
(ii) “registered valuer” has the same meaning as in clause (o-aa) of Section 2 of
the Wealth Tax Act, 1957 (27 of 1957).
269-P. Statement to be furnished in respect of transfers of immovable
property.— (1) Notwithstanding anything contained in any other law for the time
being in force, no registering officer appointed under the Registration Act, 1908 (16 of
1908), shall register any document which purports to transfer any immovable property
belonging to any person unless a statement in duplicate in respect of such transfer, in
the prescribed form and verified in the prescribed manner and setting forth such
particulars as may be prescribed, is furnished to him along with the instrument of
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-
transfer:
Provided that the provisions of this sub-section shall not apply in relation to any
document which purports to transfer any immovable property for an apparent
consideration not exceeding fifty thousand rupees.
Explanation.—For the purposes of this proviso, “apparent consideration” shall have
the meaning assigned to it in clause (a) of Section 269-A subject to the modifications
that for the expressions “immovable property transferred” and “instrument of transfer”
occurring in that clause, the expressions “immovable property purported to be
transferred” and “documents purporting to transfer such immovable property” shall,
respectively, be substituted.
(2) The registering officer shall, at the end of every fortnight, forward to the
competent authority,—
(a) one set of the statements received by him under sub-section (1) during the
fortnight; and
(b) a return in the prescribed form and verified in the prescribed manner and
setting forth such particulars as may be prescribed in respect of documents of
the nature referred to in sub-section (1) which have been registered by him
during the fortnight.
269-Q. Chapter not to apply to transfers to relatives.— The provisions of this
Chapter shall not apply to or in relation to any transfer of immovable property made
by a person to his relative on account of natural love and affection for a consideration
which is less than its fair market value if a recital to that effect is made in the
instrument of transfer.
269-R. Properties liable for acquisition under this Chapter not to be
acquired under other laws.— Notwithstanding anything contained in the Land
Acquisition Act, 1894 (1 of 1894) or any corresponding law for the time being in force,
no immovable property referred to in Section 269-C shall be acquired for any purpose
of the Union under that Act or such law unless the time for initiation of proceedings for
the acquisition of such property under this Chapter has expired without such
proceedings having been initiated or unless the competent authority has declared that
such property will not be acquired under this Chapter.
269-RR. Chapter not to apply where transfer of immovable property made
after a certain date.— The provisions of this Chapter shall not apply to or in relation
to the transfer of any immovable property made after the 30th day of September,
1986.
269-S. Chapter not to extend to State of Jammu and Kashmir.— The
provisions of this Chapter shall not extend to the State of Jammu and Kashmir.
3629
[269-SS. Mode of taking or accepting certain loans, deposits and
specified sum.— No person shall take or accept from any other person (herein
referred to as the depositor), any loan or deposit or any specified sum, otherwise than
by an account payee cheque or account payee bank draft or use of electronic clearing
system through a 3630 [bank account or through such other electronic mode as may be
prescribed], if,—
(a) the amount of such loan or deposit or specified sum or the aggregate amount
of such loan, deposit and specified sum; or
(b) on the date of taking or accepting such loan or deposit or specified sum, any
loan or deposit or specified sum taken or accepted earlier by such person from
the depositor is remaining unpaid (whether repayment has fallen due or not),
the amount or the aggregate amount remaining unpaid; or
(c) the amount or the aggregate amount referred to in clause (a) together with
the amount or the aggregate amount referred to in clause (b),
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-
is twenty thousand rupees or more:
Provided that the provisions of this section shall not apply to any loan or
deposit or specified sum taken or accepted from, or any loan or deposit or
specified sum taken or accepted by,—
(a) the Government;
(b) any banking company, post office savings bank or co-operative bank;
(c) any corporation established by a Central, State or Provincial Act;
(d) any Government company as defined in clause (45) of Section 2 of the
Companies Act, 2013 (18 of 2013);
(e) such other institution, association or body or class of institutions,
associations or bodies which the Central Government may, for reasons to
be recorded in writing, notify in this behalf in the Official Gazette:
Provided further that the provisions of this section shall not apply to
any loan or deposit or specified sum, where the person from whom the
loan or deposit or specified sum is taken or accepted and the person by
whom the loan or deposit or specified sum is taken or accepted, are both
having agricultural income and neither of them has any income
chargeable to tax under this Act.
(i) “banking company” means a company to which the provisions of the Banking
Regulation Act, 1949 (10 of 1949) applies and includes any bank or banking
institution referred to in Section 51 of that Act;
(ii) “co-operative bank” shall have the same meaning as assigned to it in Part V
of the Banking Regulation Act, 1949 (10 of 1949);
(iii) “loan or deposit” means loan or deposit of money;
(iv) “specified sum” means any sum of money receivable, whether as advance or
otherwise, in relation to transfer of an immovable property, whether or not the
transfer takes place.]
3631 [269-ST. Mode of undertaking transactions.— No person shall receive an
amount of two lakh rupees or more—

(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person,
otherwise than by an account payee cheque or an account payee bank draft or use
of electronic clearing system through a 3632 [bank account or through such other
electronic mode as may be prescribed]:
Provided that the provisions of this section shall not apply to—
(i) any receipt by—
(a) Government;
(b) any banking company, post office savings bank or co-operative bank;
(ii) transactions of the nature referred to in Section 269-SS;
(iii) such other persons or class of persons or receipts, which the Central
Government may, by notification in the Official Gazette, specify.
(a) “banking company” shall have the same meaning as assigned to it in clause
(i) of the Explanation to Section 269-SS;
(b) “co-operative bank” shall have the same meaning as assigned to it in clause
(ii) of the Explanation to Section 269-SS.]
3633 [269-SU. Acceptance of payment through prescribed electronic modes.—
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-
Every person, carrying on business, shall provide facility for accepting payment
through prescribed electronic modes, in addition to the facility for other electronic
modes, of payment, if any, being provided by such person, if his total sales, turnover
or gross receipts, as the case may be, in business exceeds fifty crore rupees during the
immediately preceding previous year.]
3634
[269-T. Mode of repayment of certain loans or deposits.— No branch of a
banking company or a cooperative bank and no other company or cooperative society
and no firm or other person shall repay any loan or deposit made with it 3635 [or any
specified advance received by it] otherwise than by an account payee cheque or
account payee bank draft drawn in the name of the person who has made the loan or
deposit 3636 [or paid the specified advance,] 3637 [or by use of electronic clearing system
through a 3638 [bank account or through such other electronic mode as may be
prescribed]] if—
(a) the amount of the loan or deposit 3639 [or specified advance] together with the
interest, if any, payable thereon, or
(b) the aggregate amount of the loans or deposits held by such person with the
branch of the banking company or cooperative bank or, as the case may be,
the other company or cooperative society or the firm, or other person either in
his own name or jointly with any other person on the date of such repayment
together with the interest, if any, payable on such loans or deposits, 3640 [or]
3641
[(c) the aggregate amount of the specified advances received by such person
either in his own name or jointly with any other person on the date of such
repayment together with the interest, if any, payable on such specified
advances,]
Provided that where the repayment is by a branch of a banking company or
cooperative bank, such repayment may also be made by crediting the amount of such
loan or deposit to the savings bank account or the current account (if any) with such
branch of the person to whom such loan or deposit has to be repaid:
3642
[Provided further that nothing contained in this section shall apply to
repayment of any loan or deposit 3643 [or specified advance] taken or accepted from—
(i) Government;
(ii) any banking company, post office savings bank or co-operative bank;
(iii) any corporation established by a Central, State or Provincial Act;
(iv) any Government company as defined in Section 617 of the Companies Act,
1956;
(v) such other institution, association or body or class of institutions, associations
or bodies which the Central Government may, for reasons to be recorded in
writing, notify in this behalf in the Official Gazette.]
(i) “banking company” shall have the meaning assigned to it in clause (i) of the
Explanation to Section 269-SS;
(ii) “cooperative bank” shall have the meaning assigned to it in Part V of the
Banking Regulation Act, 1949;
(iii) “loan or deposit” means any loan or deposit of money which is repayable
after notice or repayable after a period and, in the case of a person other than
a company, includes loan or deposit of any nature.]
3644 [(iv) “specified advance” means any sum of money in the nature of advance,
by whatever name called, in relation to transfer of an immovable property,

whether or not the transfer takes place.]
269-TT. Mode of repayment of Special Bearer Bonds, 1991.— Notwithstanding
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-
anything contained in any other law for the time being in force, the amount payable on
redemption of Special Bearer Bonds, 1991, shall be paid only by an account payee
cheque or account payee bank draft drawn in the name of the person to whom such
payment is to be made.
269-U. Commencement of Chapter.— The provisions of this Chapter shall come
into force on such date as the Central Government may, by notification in the Official
Gazette, appoint, and different dates may be appointed for different areas.
269-UA. Definitions.— In this Chapter, unless the context otherwise requires,—
(a) “agreement for transfer” means an agreement, whether registered under the
Registration Act, 1908 (16 of 1908), or not, for the transfer of any immovable
property;
(b) “apparent consideration”,—
(1) in relation to any immovable property in respect of which an agreement
for transfer is made, being immovable property of the nature referred to in
sub-clause (i) of clause (d), means,—
(i) if the immovable property is to be transferred by way of sale, the
consideration for such transfer as specified in the agreement for transfer;
(ii) if the immovable property is to be transferred by way of exchange,—
(A) in a case where the consideration for the transfer consists of a thing
or things only, the price that such thing or things would ordinarily
fetch on sale in the open market on the date on which the agreement
for transfer is made;
(B) in a case where the consideration for the transfer consists of a thing
or things and a sum of money, the aggregate of the price that such
thing or things would ordinarily fetch on sale in the open market on
the date on which the agreement for transfer is made, and such sum;
(iii) if the immovable property is to be transferred by way of lease,—
(A) in a case where the consideration for the transfer consists of
premium only, the amount of premium as specified in the agreement
for transfer;
(B) in a case where the consideration for the transfer consists of rent
only, the aggregate of the moneys (if any) payable by way of rent and
the amounts for the service or things forming part of or constituting
the rent, as specified in the agreement for transfer;
(C) in a case where the consideration for the transfer consists of
premium and rent, the aggregate of the amount of the premium, the
moneys (if any) payable by way of rent, and the amounts for the
service or things forming part of or constituting the rent, as specified
in the agreement for transfer,
payable on any date or dates falling after the date of such agreement for
transfer, the value of the consideration payable after such date shall be
deemed to be the discounted value of such consideration, as on the date of
such agreement for transfer, determined by adopting such rate of interest
as may be prescribed in this behalf.
(2) in relation to any immovable property in respect of which an agreement
for transfer is made, being immovable property of the nature referred to in
sub-clause (ii) of clause (d), means,—
(i) in a case where the consideration for the transfer consists of a sum of
money only, such sum;
(ii) in a case where the consideration for the transfer consists of a thing or
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-
things only, the price that such thing or things would ordinarily fetch on
sale in the open market on the date on which the agreement for transfer
is made;
(iii) in a case where the consideration for the transfer consists of a thing or
things and a sum of money, the aggregate of the price that such thing or
things would ordinarily fetch on sale in the open market on the date on
which the agreement for transfer is made, and such sum,
payable on any date or dates falling after the date of such agreement for
transfer, the value of the consideration payable after such date shall be
deemed to be the discounted value of such consideration, as on the date
of such agreement for transfer, determined by adopting such rate of
interest as may be prescribed in this behalf;
(c) “appropriate authority” means an authority constituted under Section
269-UB to perform the functions of an appropriate authority under this
Chapter;
(d) “immovable property” means—
(i) any land or any building or part of a building, and includes, where
any land or any building or part of a building is to be transferred
together with any machinery, plant, furniture, fittings or other things,
such machinery, plant, furniture, fittings or other things also.
Explanation.—For the purposes of this sub-clause, “land, building, part of a
building, machinery, plant, furniture, fittings and other things” include any
rights therein;
(ii) any rights in or with respect to any land or any building or a part of a
building (whether or not including any machinery, plant, furniture,
fittings or other things therein) which has been constructed or which
is to be constructed, accruing or arising from any transaction
(whether by way of becoming a member of, or acquiring shares in, a
cooperative society, company or other association of persons or by
way of any agreement or any arrangement of whatever nature), not
being a transaction by way of a sale, exchange or lease of such land,
building or part of a building;
(e) “person interested”, in relation to any immovable property includes all
persons claiming, or entitled to claim, an interest in the consideration
payable on account of the vesting of that property in the Central
Government under this Chapter;
(f) “transfer”,—
(i) in relation to any immovable property referred to in sub-clause (i) of
clause (d), means transfer of such property by way of sale or
exchange, or lease for a term of not less than twelve years, and
includes allowing the possession of such property to be taken or
retained in part performance of a contract of the nature referred to in
Section 53-A of the Transfer of Property Act, 1882 (4 of 1882).
Explanation.—For the purposes of this sub-clause, a lease which provides for
the extension of the term thereof by a further term or terms shall be
deemed to be a lease for a term of not less than twelve years, if the
aggregate of the term for which such lease is to be granted and the further
term or terms for which it can be so extended is not less than twelve years;
(ii) in relation to any immovable property of the nature referred to in sub
-clause (ii) of clause (d), means the doing of anything (whether by
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way of admitting as a member of or by way of transfer of shares in a
cooperative society or company or other association of persons or by
way of any agreement or arrangement or in any other manner
whatsoever) which has the effect of transferring or enabling the
enjoyment of such property.
269-UB. Appropriate authority.— (1) The Central Government may, by order,
published in the Official Gazette,—
(a) constitute as many appropriate authorities, as it thinks fit, to perform the
functions of an appropriate authority under this Chapter; and
(b) define the local limits within which the appropriate authorities shall perform
their functions under this Chapter.
(2) An appropriate authority shall consist of three persons, two of whom shall be
members of the Indian Income Tax Service, Group A, holding the post of 3645 [Principal
Commissioner or Commissioner] of Income Tax or any equivalent or higher post, and
one shall be a member of the Central Engineering Service, Group A, holding the post
of Chief Engineer or any equivalent or higher post.
(3) In respect of any function to be performed by an appropriate authority under
any provision of this Chapter in relation to any immovable property referred to in
Section 269-UC, the appropriate authority referred to therein shall,—
(a) in a case where such property is situate within the local limits of the
jurisdiction of only one appropriate authority, be such appropriate authority;
(b) in a case where such property is situate within the local limits of the
jurisdiction of two or more appropriate authorities, be the appropriate
authority empowered to perform such functions in relation to such property in
accordance with the rules made in this behalf by the Board under Section 295.
Explanation.—For the purposes of this sub-section, immovable property being
rights of the nature referred to in sub-clause (ii) of clause (d) of Section 269-
UA in, or with respect to, any land or any building or part of a building which
has been constructed or which is to be constructed shall be deemed to be
situate at the place where the land is situate or, as the case may be, where
the building has been constructed or is to be constructed.
269-UC. Restrictions on transfer of immovable property.— (1)
Notwithstanding anything contained in the Transfer of Property Act, 1882 (4 of 1882),
or in any other law for the time being in force, 3646 [no transfer of any immovable
property in such area and of such value exceeding five lakh rupees, as may be
prescribed] shall be effected except after an agreement for transfer is entered into
between the person who intends transferring the immovable property (hereinafter
referred to as the transferor) and the person to whom it is proposed to be transferred
(hereinafter referred to as the transferee) in accordance with the provisions of sub-
section (2) at least 3647 [four months] before the intended date of transfer.
(2) The agreement referred to in sub-section (1) shall be reduced to writing in the
form of a statement by each of the parties to such transfer or by any of the parties to
such transfer acting on behalf of himself and on behalf of the other parties.
(3) Every statement referred to in sub-section (2) shall,—
(i) be in the prescribed form;
(ii) set forth such particulars as may be prescribed; and
(iii) be verified in the prescribed manner,
and shall be furnished to the appropriate authority in such manner and within such
time as may be prescribed, by each of the parties to such transaction or by any of the
parties to such transaction acting on behalf of himself and on behalf of the other
parties.
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3648
[(4) Where it is found that the statement referred to in sub-section (2) is
defective, the appropriate authority may intimate the defect to the parties concerned
and give them an opportunity to rectify the defect within a period of fifteen days from
the date of such intimation or within such further period which, on an application
made in this behalf, the appropriate authority may, in its discretion, allow and if the
defect is not rectified within the said period of fifteen days or, as the case may be, the
further period so allowed, then, notwithstanding anything contained in any other
provision of this Chapter, the statement shall be deemed never to have been
furnished.]
269-UD. Order by appropriate authority for purchase by Central Government
of immovable property.— (1) 3649 [Subject to the provisions of sub-sections (1-A)
and (1-B), the appropriate authority], after the receipt of the statement under sub-
section (3) of Section 269-UC in respect of any immovable property, may,
notwithstanding anything contained in any other law or any instrument or any
agreement for the time being in force, 3650 [* * *] make an order for the purchase by
the Central Government of such immovable property at an amount equal to the
amount of apparent consideration:
Provided that no such order shall be made in respect of any immovable property
after the expiration of a period of two months from the end of the month in which the
statement referred to in Section 269-UC in respect of such property is received by the
appropriate authority:
3651
[Provided further that the statement referred to in Section 269-UC in respect
of any immovable property is received by the appropriate authority on or after the 1st
day of June, 1993, the provisions of the first proviso shall have effect as if for the
words “two months”, the words “three months” had been substituted:]
3652 [Provided also that the period of limitation referred to in the second proviso
shall be reckoned, where any defect as referred to in sub-section (4) of Section 269-
UC has been intimated, with reference to the date of receipt of the rectified statement
by the appropriate authority:]
3653 [Provided also] that in case where the statement referred to in Section 269-UC
in respect of the immovable property concerned is given to an appropriate authority,

other than the appropriate authority having jurisdiction in accordance with the
provisions of Section 269-UB to make the order referred to in this sub-section in
relation to the immovable property concerned, the period of limitation referred to in
3654 [the first and second provisos] shall be reckoned with reference to the date of
receipt of the statement by the appropriate authority having jurisdiction to make the
order under this sub-section:
3655
[Provided also that the period of limitation referred to in the second proviso
shall be reckoned, where any stay has been granted by any court against the passing
of an order for the purchase of the immovable property under this Chapter, with
reference to the date of vacation of the said stay.]
3656 [(1-A) Before making an order under sub-section (1), the appropriate authority
shall give a reasonable opportunity of being heard to the transferor, the person in
occupation of the immovable property if the transferor is not in occupation of the
property, the transferee and to every other person whom the appropriate authority
knows to be interested in the property.
(1-B) Every order made by the appropriate authority under sub-section (1) shall
specify the grounds on which it is made.]
(2) The appropriate authority shall cause a copy of its order under sub-section (1)
in respect of any immovable property to be served on the transferor, the person in
occupation of the immovable property if the transferor is not in occupation thereof, the
transferee, and on every other person whom the appropriate authority knows to be
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interested in the property.
269-UE. Vesting of property in Central Government.— (1) Where an order
under sub-section (1) of Section 269-UD is made by the appropriate authority in
respect of an immovable property referred to in sub-clause (i) of clause (d) of Section
269-UA, such property shall, on the date of such order, vest in the Central
Government 3657 [in terms of the agreement for transfer referred to in sub-section (1)
of Section 269-UC]:
3658 [Provided that where the appropriate authority, after giving an opportunity of
being heard to the transferor, the transferee or other persons interested in the said
property, under sub-section (1-A) of Section 269-UD, is of the opinion that any
encumbrance on the property or leasehold interest specified in the aforesaid
agreement for transfer is so specified with a view to defeat the provisions of this
Chapter, it may, by order, declare such encumbrance or leasehold interest to be void
and thereupon the aforesaid property shall vest in the Central Government free from
such encumbrance or leasehold interest.]
(2) The transferor or any other person who may be in possession of the immovable
property in respect of which an order under sub-section (1) of Section 269-UD is
made, shall surrender or deliver possession thereof to the appropriate authority or any
other person duly authorised by the appropriate authority in this behalf within fifteen
days of the service of such order on him:
3659 [Provided that the provisions of this sub-section and sub-sections (3) and (4)
shall not apply where the person in possession of the immovable property, in respect
of which an order under sub-section (1) of Section 269-UD is made, is a bona fide
holder of any encumbrance on such property or a bona fide lessee of such property, if
the said encumbrance or lease has not been declared void under the proviso to sub-
section (1) and such person is eligible to continue in possession of such property even
after the transfer in terms of the aforesaid agreement for transfer.]
(3) If any person refuses or fails to comply with the provisions of sub-section (2),
the appropriate authority or other person duly authorised by it under that sub-section
may take possession of the immovable property and may, for that purpose, use such
force as may be necessary.
(4) Notwithstanding anything contained in sub-section (2), the appropriate
authority may, for the purposes of taking possession of any property referred to in sub
-section (1), requisition the services of any police officer to assist him and it shall be
the duty of such officer to comply with such requisition.
(5) For the removal of doubts, it is hereby declared that nothing in this section shall
operate to discharge the transferor or any other person (not being the Central
Government) from liability in respect of any encumbrances on the property and,
notwithstanding anything contained in any other law for the time being in force, such
liability may be enforced against the transferor or such other person.
(6) Where an order under sub-section (1) of Section 269-UD is made in respect of
an immovable property, being rights of the nature referred to in sub-clause (ii) of
clause (d) of Section 269-UA, such order shall have the effect of—
(a) vesting such right in the Central Government; and
(b) placing the Central Government in the same position in relation to such
rights as the person in whom such a right would have continued to vest if
such order had not been made.
(7) Where any rights in respect of any immovable property, being rights in, or with
respect to, any land or any building or part of a building which has been constructed
or which is to be constructed, have been vested in the Central Government under sub-
section (6), the provisions of sub-sections (1), (2), (3) and (4) shall, so far as may be,
have effect as if the references to immovable property therein were references to such
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land or building or part thereof, as the case may be.

269-UF. Consideration for purchase of immovable property by Central
Government.— (1) Where an order for the purchase of any immovable property by
the Central Government is made under sub-section (1) of Section 269-UD, the Central
Government shall pay, by way of consideration for such purchase, an amount equal to
the amount of the apparent consideration.
(2) Notwithstanding anything contained in sub-section (1), where, after the
agreement for the transfer of the immovable property referred to in that sub-section
has been made but before the property vests in the Central Government under Section
269-UE, the property has been damaged (otherwise than as a result of normal wear
and tear), the amount of the consideration payable under that sub-section shall be
reduced by such sum as the appropriate authority, for reasons to be recorded in
writing, may by order determine.
269-UG. Payment or deposit of consideration.— (1) The amount of
consideration payable in accordance with the provisions of Section 269-UF shall be
tendered to the person or persons entitled thereto, within a period of one month from
the end of the month in which the immovable property concerned becomes vested in
the Central Government under sub-section (1), or, as the case may be, sub-section
(6), of Section 269-UE:
Provided that if any liability for any tax or any other sum remaining payable under
this Act, the Wealth Tax Act, 1957 (27 of 1957), the Gift Tax Act, 1958 (18 of 1958),
the Estate Duty Act, 1953 (34 of 1953), or the Companies (Profits) Surtax Act, 1964
(7 of 1964), by any person entitled to the consideration payable under Section 269-
UF, the appropriate authority may, in lieu of the payment of the amount of
consideration, set off the amount of consideration or any part thereof against such
liability or sum, after giving an intimation in this behalf to the person entitled to the
consideration.
(2) Notwithstanding anything contained in sub-section (1), if any dispute arises as
to the apportionment of the amount of consideration amongst persons claiming to be
entitled thereto, the Central Government shall deposit with the appropriate authority
the amount of consideration required to be tendered under sub-section (1) within the
period specified therein.
(3) Notwithstanding anything contained in sub-section (1), if the person entitled to
the amount of consideration does not consent to receive it, or if there is any dispute as
to the title to receive the amount of consideration, the Central Government shall
deposit with the appropriate authority the amount of consideration required to be
tendered under sub-section (1) within the period specified therein:
Provided that nothing herein contained shall affect the liability of any person who
may receive the whole or any part of the amount of consideration for any immovable
property vested in the Central Government under this Chapter to pay the same to the
person lawfully entitled thereto.
(4) Where any amount of consideration has been deposited with the appropriate
authority under this section, the appropriate authority may, either of its own motion or
on an application made by or on behalf of any person interested or claiming to be
interested in such amount, order the same to be invested in such Government or other
securities as it may think proper, and may direct the interest or other proceeds of any
such investment to be accumulated and paid in such manner as will, in its opinion,
give the parties interested therein the same benefits therefrom as they might have
had from the immovable property in respect whereof such amount has been deposited
or as near thereto as may be.
269-UH. Revesting of property in the transferor on failure of payment or
deposit of consideration.— (1) If the Central Government fails to tender under sub-
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-
section (1) of Section 269-UG or deposit under sub-section (2) or sub-section (3) of
the said section, the whole or any part of the amount of consideration required to be
tendered or deposited thereunder within the period specified therein in respect of any
immovable property which has vested in the Central Government under sub-section
(1) or, as the case may be, sub-section (6) of Section 269-UE, the order to purchase
the immovable property by the Central Government made under sub-section (1) of
Section 269-UD shall stand abrogated and the immovable property shall stand
revested in the transferor after the expiry of the aforesaid period:
Provided that where any dispute referred to in sub-section (2) or sub-section (3)
of Section 269-UG is pending in any court for decision, the time taken by the court to
pass a final order under the said sub-sections shall be excluded in computing the said
period.
(2) Where an order made under sub-section (1) of Section 269-UD is abrogated and
the immovable property revested in the transferor under sub-section (1), the
appropriate authority shall make, as soon as may be, a declaration in writing to this
effect and shall—
(a) deliver a copy of the declaration to the persons mentioned in sub-section (2)
of Section 269-UD; and
(b) deliver or cause to be delivered possession of the immovable property back
to the transferor or, as the case may be, to such other person as was in
possession of the property at the time of its vesting in the Central
Government under Section 269-UE.
269-UI. Powers of the appropriate authority.— The appropriate authority shall
have, for the purposes of this Chapter, all the powers that a 3660 [Principal Chief
Commissioner or Chief Commissioner] or 3661 [Principal
Commissioner or
Commissioner] of Income Tax has for the purposes of this Act under Section 131.
269-UJ. Rectification of mistakes.— With a view to rectifying any mistake
apparent from the record, the appropriate authority may amend any order made by it
under this Chapter, either on its own motion or on the mistake being brought to its
notice by any person affected by the order:
heard:
Provided further that no amendment shall be made under this section after the
expiry of six months from the end of the month in which the order sought to be
amended was made.
269-UK. Restrictions on revocation or alteration of certain agreements for
the transfer of immovable property or on transfer of certain immovable
property.— (1) Notwithstanding anything contained in any other law for the time
being in force, no person shall revoke or alter an agreement for the transfer of an
immovable property or transfer such property in respect of which a statement has
been furnished under Section 269-UC unless,—
(a) the appropriate authority has not made an order for the purchase of the
immovable property by the Central Government under Section 269-UD and
the period specified for the making of such order has expired; or
(b) in a case where an order for the purchase of the immovable property by the
Central Government has been made under sub-section (1) of Section 269-UD,
the order stands abrogated under sub-section (1) of Section 269-UH.
(2) Any transfer of any immovable property made in contravention of the provisions
of sub-section (1) shall be void.
269-UL. Restrictions on registration, etc., of documents in respect of
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-
transfer of immovable property.— (1) Notwithstanding anything contained in any
other law for the time being in force, no registering officer appointed under the
Registration Act, 1908 (16 of 1908), shall register any document which purports to
transfer immovable property exceeding the value prescribed under Section 269-UC
unless a certificate from the appropriate authority that it has no objection to the
transfer of such property for an amount equal to the apparent consideration therefor as
stated in the agreement for transfer of the immovable property in respect of which it
has received a statement under sub-section (3) of Section 269-UC, is furnished along
with such document.
(2) Notwithstanding anything contained in any other law for the time being in force,
no person shall do anything or omit to do anything which will have the effect of
transfer of any immovable property unless the appropriate authority certifies that it
has no objection to the transfer of such property for an amount equal to the apparent
consideration therefor as stated in the agreement for transfer of the immovable
property in respect of which it has received a statement under sub-section (3) of
Section 269-UC.
(3) In a case where the appropriate authority does not make an order under sub-
section (1) of Section 269-UD for the purchase by the Central Government of an
immovable property, or where the order made under sub-section (1) of Section 269-
UD stands abrogated under sub-section (1) of Section 269-UH, the appropriate
authority shall issue a certificate of no objection referred to in sub-section (1) or, as
the case may be, sub-section (2) and deliver copies thereof to the transferor and the
transferee.
269-UM. Immunity to transferor against claims of transferee for transfer.—
Notwithstanding anything contained in any other law or in any instrument or any
agreement for the time being in force, when an order for the purchase of any
immovable property by the Central Government is made under this Chapter, no claim
by the transferee shall lie against the transferor by reason of such transfer being not in
accordance with the agreement for the transfer of the immovable property entered into
between the transferor and the transferee:
Provided that nothing contained in this section shall apply if the order for the
purchase of the immovable property by the Central Government is abrogated under
sub-section (1) of Section 269-UH.
269-UN. Order of appropriate authority to be final and conclusive.— Save as
otherwise provided in this Chapter, any order made under sub-section (1) of Section
269-UD or any order made under sub-section (2) of Section 269-UF shall be final and
conclusive and shall not be called in question in any proceeding under this Act or
under any other law for the time being in force.
269-UO. Chapter not to apply to certain transfers.— The provisions of this
Chapter shall not apply to or in relation to any immovable property where the
agreement for transfer of such property is made by a person to his relative on account
of natural love and affection, if a recital to that effect is made in the agreement for
transfer.
3662
[269-UP. Chapter not to apply where transfer of immovable property
effected after certain date.— The provisions of this Chapter shall not apply to, or in
relation to, the transfer of any immovable property effected on or after the 1st day of
July, 2002.]
270. [Omitted]
3663 [270-A. Penalty for under-reporting and misreporting of income.— (1) The
Assessing Officer or the Commissioner (Appeals) or the Principal Commissioner or

Commissioner may, during the course of any proceedings under this Act, direct that
any person who has under-reported his income shall be liable to pay a penalty in
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-
addition to tax, if any, on the under-reported income.
(2) A person shall be considered to have under-reported his income, if—
(a) the income assessed is greater than the income determined in the return
processed under clause (a) of sub-section (1) of Section 143;
(b) the income assessed is greater than the maximum amount not chargeable to
tax, where 3664 [no return of income has been furnished or where return has
been furnished for the first time under Section 148];
(c) the income reassessed is greater than the income assessed or reassessed
immediately before such reassessment;
(d) the amount of deemed total income assessed or reassessed as per the
provisions of Section 115-JB or Section 115-JC, as the case may be, is greater
than the deemed total income determined in the return processed under
clause (a) of sub-section (1) of Section 143;
(e) the amount of deemed total income assessed as per the provisions of Section
115-JB or Section 115-JC is greater than the maximum amount not
chargeable to tax, where 3665 [no return of income has been furnished or where
return has been furnished for the first time under Section 148];
(f) the amount of deemed total income reassessed as per the provisions of
Section 115-JB or Section 115-JC, as the case may be, is greater than the
deemed total income assessed or reassessed immediately before such
reassessment;
(g) the income assessed or reassessed has the effect of reducing the loss or
converting such loss into income.
(3) The amount of under-reported income shall be,—
(i) in a case where income has been assessed for the first time,—
(a) if return has been furnished, the difference between the amount of income
assessed and the amount of income determined under clause (a) of sub-
section (1) of Section 143;
(b) in a case where 3666 [no return of income has been furnished or where
return has been furnished for the first time under Section 148],—
(A) the amount of income assessed, in the case of a company, firm or local
authority; and
(B) the difference between the amount of income assessed and the
maximum amount not chargeable to tax, in a case not covered in item
(A);
(ii) in any other case, the difference between the amount of income reassessed
or recomputed and the amount of income assessed, reassessed or recomputed
in a preceding order:
Provided that where under-reported income arises out of determination of
deemed total income in accordance with the provisions of Section 115-JB or
Section 115-JC, the amount of total under-reported income shall be
determined in accordance with the following formula—
(A − B) + (C − D)
where,
A = the total income assessed as per the provisions other than the
provisions contained in Section 115-JB or Section 115-JC (herein called
general provisions);
B = the total income that would have been chargeable had the total
income assessed as per the general provisions been reduced by the amount
of underreported income;
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C = the total income assessed as per the provisions contained in Section
115-JB or Section 115-JC;
D = the total income that would have been chargeable had the total
income assessed as per the provisions contained in Section 115-JB or
Section 115-JC been reduced by the amount of under-reported income:
Provided further that where the amount of under-reported income on any
issue is considered both under the provisions contained in Section 115-JB
or Section 115-JC and under general provisions, such amount shall not be
reduced from total income assessed while determining the amount under
Item D.
(a) “preceding order” means an order immediately preceding the order
during the course of which the penalty under sub-section (1) has
been initiated;
(b) in a case where an assessment or reassessment has the effect of
reducing the loss declared in the return or converting that loss into
income, the amount of under-reported income shall be the difference
between the loss claimed and the income or loss, as the case may be,
assessed or reassessed.
(4) Subject to the provisions of sub-section (6), where the source of any receipt,
deposit or investment in any assessment year is claimed to be an amount added to
income or deducted while computing loss, as the case may be, in the assessment of
such person in any year prior to the assessment year in which such receipt, deposit or
investment appears (hereinafter referred to as “preceding year”) and no penalty was
levied for such preceding year, then, the under-reported income shall include such
amount as is sufficient to cover such receipt, deposit or investment.
(5) The amount referred to in sub-section (4) shall be deemed to be amount of
income under-reported for the preceding year in the following order—
(a) the preceding year immediately before the year in which the receipt, deposit
or investment appears, being the first preceding year; and
(b) where the amount added or deducted in the first preceding year is not
sufficient to cover the receipt, deposit or investment, the year immediately
preceding the first preceding year and so on.
(6) The under-reported income, for the purposes of this section, shall not include
the following, namely—
(a) the amount of income in respect of which the assessee offers an explanation
and the Assessing Officer or the Commissioner (Appeals) or the Commissioner
or the Principal Commissioner, as the case may be, is satisfied that the
explanation is bona fide and the assessee has disclosed all the material facts
to substantiate the explanation offered;
(b) the amount of under-reported income determined on the basis of an
estimate, if the accounts are correct and complete to the satisfaction of the
Assessing Officer or the Commissioner (Appeals) or the Commissioner or the
Principal Commissioner, as the case may be, but the method employed is such
that the income cannot properly be deduced therefrom;
(c) the amount of under-reported income determined on the basis of an
estimate, if the assessee has, on his own, estimated a lower amount of
addition or disallowance on the same issue, has included such amount in the
computation of his income and has disclosed all the facts material to the
addition or disallowance;
(d) the amount of under-reported income represented by any addition made in
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conformity with the arm's length price determined by the Transfer Pricing
Officer, where the assessee had maintained information and documents as
prescribed under Section 92-D, declared the international transaction under
Chapter X, and, disclosed all the material facts relating to the transaction; and
(e) the amount of undisclosed income referred to in Section 271-AAB.
(7) The penalty referred to in sub-section (1) shall be a sum equal to fifty per cent
of the amount of tax payable on under-reported income.
(8) Notwithstanding anything contained in sub-section (6) or sub-section (7),
where under-reported income is in consequence of any misreporting thereof by any
person, the penalty referred to in sub-section (1) shall be equal to two hundred per
cent of the amount of tax payable on under-reported income.
(9) The cases of misreporting of income referred to in sub-section (8) shall be the
following, namely—
(a) misrepresentation or suppression of facts;
(b) failure to record investments in the books of account;
(c) claim of expenditure not substantiated by any evidence;
(d) recording of any false entry in the books of account;
(e) failure to record any receipt in books of account having a bearing on total
income; and
(f) failure to report any international transaction or any transaction deemed to be
an international transaction or any specified domestic transaction, to which
the provisions of Chapter X apply.
(10) The tax payable in respect of the under-reported income shall be—
(a) where no return of income has been furnished and the income has been
assessed for the first time, the amount of tax calculated on the underreported
income as increased by the maximum amount not chargeable to tax as if it
were the total income;
(b) where the total income determined under clause (a) of sub-section (1) of
Section 143 or assessed, reassessed or recomputed in a preceding order is a
loss, the amount of tax calculated on the under-reported income as if it were
the total income;
(c) in any other case, determined in accordance with the formula—
(X—Y)
where,
X = the amount of tax calculated on the under-reported income as
increased by the total income determined under clause (a) of sub-section
(1) of Section 143 or total income assessed, reassessed or recomputed in a
preceding order as if it were the total income; and
Y = the amount of tax calculated on the total income determined under
clause (a) of sub-section (1) of Section 143 or total income assessed,
reassessed or recomputed in a preceding order.
(11) No addition or disallowance of an amount shall form the basis for imposition of
penalty, if such addition or disallowance has formed the basis of imposition of penalty
in the case of the person for the same or any other assessment year.
(12) The penalty referred to in sub-section (1) shall be imposed, by an order in
writing, by the Assessing Officer, the Commissioner (Appeals), the Commissioner or
the Principal Commissioner, as the case may be.]
3667 [270-AA. Immunity from imposition of penalty, etc.— (1) An assessee may
make an application to the Assessing Officer to grant immunity from imposition of

penalty under Section 270-A and initiation of proceedings under Section 276-C or
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Section 276-CC, if he fulfils the following conditions, namely—
(a) the tax and interest payable as per the order of assessment or reassessment
under sub-section (3) of Section 143 or Section 147, as the case may be, has
been paid within the period specified in such notice of demand; and
(b) no appeal against the order referred to in clause (a) has been filed.
(2) An application referred to in sub-section (1) shall be made within one month
from the end of the month in which the order referred to in clause (a) of sub-section
(1) has been received and shall be made in such form and verified in such manner as
may be prescribed.
(3) The Assessing Officer shall, subject to fulfilment of the conditions specified in
sub-section (1) and after the expiry of the period of filing the appeal as specified in
clause (b) of sub-section (2) of Section 249, grant immunity from imposition of
penalty under Section 270-A and initiation of proceedings under Section 276-C or
Section 276-CC, where the proceedings for penalty under Section 270-A has not been
initiated under the circumstances referred to in sub-section (9) of the said Section 270
-A.
(4) The Assessing Officer shall, within a period of one month from the end of the
month in which the application under sub-section (1) is received, pass an order
accepting or rejecting such application:
Provided that no order rejecting the application shall be passed unless the assessee
has been given an opportunity of being heard.
(5) The order made under sub-section (4) shall be final.
(6) No appeal under Section 246-A or an application for revision under Section 264
shall be admissible against the order of assessment or reassessment, referred to in
clause (a) of sub-section (1), in a case where an order under sub-section (4) has been
made accepting the application.]
271. Failure to furnish returns, comply with notices, concealment of income,
etc.— (1) If the Assessing Officer or the 3668 [* * *] 3669 [Principal Commissioner or
Commissioner] (Appeals) 3670 [or the FN1205[Principal Commissioner or Commissioner]]
in the course of any proceedings under this Act, is satisfied that any person—
(a) [omitted;]
(b) has failed to comply with a notice 3672 [under sub-section (2) of Section 115-
WD or under sub-section (2) of Section 115-WE or] under sub-section (1) of
Section 142 or sub-section (2) of Section 143 or fails to comply with a
direction issued under sub-section (2-A) of Section 142; or
(c) has concealed the particulars of his income or furnished inaccurate particulars
of such income 3673 [, or],
3674
[(d) has concealed the particulars of the fringe benefits or furnished
inaccurate particulars of such fringe benefits.]
he may direct that such person shall pay by way of penalty,—
(i) [omitted;]
(ii) in the cases referred to in clause (b), 3675 [in addition to tax, if any, payable]
by him, 3676 [a sum of ten thousand rupees] for each such failure;
(iii) in the cases referred to in clause (c) 3677 [or clause (d)], 3678 [in addition to
tax, if any, payable] by him, a sum which shall not be less than, but which
shall not exceed three times, the amount of tax sought to be evaded by
reason of the concealment of particulars of his income 3679 [or fringe benefits]
or the furnishing of inaccurate particulars of such income 3680 [or fringe
benefits].
Explanation 1.—Where in respect of any facts material to the computation of the
total income of any person under this Act,—
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(A) such person fails to offer an explanation or offers an explanation which is

found by the Assessing Officer or the 3681 [* * *] FN1206[Principal Commissioner
or Commissioner] (Appeals) 3683 [or the FN1207[Principal Commissioner or
Commissioner]] to be false, or
(B) such person offers an explanation which he is not able to substantiate and
fails to prove that such explanation is bona fide and that all the facts relating
to the same and material to the computation of his total income have been
disclosed by him,
then, the amount added or disallowed in computing the total income of such person as
a result thereof shall, for the purposes of clause (c) of this sub-section be deemed to
represent the income in respect of which particulars have been concealed.
Explanation 2.—Where the source of any receipt, deposit, outgoing or investment in
any assessment year is claimed by any person to be an amount which had been added
in computing the income or deducted in computing the loss in the assessment of such
person for any earlier assessment year or years but in respect of which no penalty
under clause (iii) of this sub-section had been levied, that part of the amount so
added or deducted in such earlier assessment year immediately preceding the year in
which the receipt, deposit, outgoing or investment appears (such earlier assessment
year hereafter in this Explanation referred to as the first preceding year) which is
sufficient to cover the amount represented by such receipt, deposit or outgoing or
value of such investment (such amount or value hereafter in this Explanation referred
to as the utilised amount) shall be treated as the income of the assessee, particulars
of which had been concealed or inaccurate particulars of which had been furnished for
the first preceding year; and where the amount so added or deducted in the first
preceding year is not sufficient to cover the utilised amount, the part of the amount so
added or deducted in the year immediately preceding the first preceding year which is
sufficient to cover such part of the utilised amount as is not so covered shall be
treated to be the income of the assessee, particulars of which had been concealed or
inaccurate particulars of which had been furnished for the year immediately preceding
the first preceding year and so on, until the entire utilised amount is covered by the
amount so added or deducted in such earlier assessment years.
Explanation 3.—Where any person 3685 [* * *] fails, without reasonable cause, to
furnish within the period specified in sub-section (1) of Section 153 a return of his
income which he is required to furnish under Section 139 in respect of any assessment
year commencing on or after the 1st day of April, 1989, and until the expiry of the
period aforesaid, no notice has been issued to him under clause (i) of sub-section (1)
of Section 142 or Section 148 and the Assessing Officer or the 3686 [* * *] FN1208
[Principal Commissioner or Commissioner] (Appeals) is satisfied that in respect of
such assessment year such person has taxable income, then, such person shall, for the
purposes of clause (c) of this sub-section, be deemed to have concealed the
particulars of his income in respect of such assessment year, notwithstanding that
such person furnishes a return of his income at any time after the expiry of the period
aforesaid in pursuance of a notice under Section 148.
3688 [Explanation 4.— For the purposes of clause (iii) of this sub-section,—
(a) the amount of tax sought to be evaded shall be determined in accordance

with the following formula—
(A − B) + (C − D)
where,
A = amount of tax on the total income assessed as per the provisions other
than the provisions contained in Section 115-JB or Section 115-JC (herein
called general provisions);
B = amount of tax that would have been chargeable had the total income
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assessed as per the general provisions been reduced by the amount of

income in respect of which particulars have been concealed or inaccurate
particulars have been furnished;
C = amount of tax on the total income assessed as per the provisions
contained in Section 115-JB or Section 115-JC;
D = amount of tax that would have been chargeable had the total income
assessed as per the provisions contained in Section 115-JB or Section 115-
JC been reduced by the amount of income in respect of which particulars
have been concealed or inaccurate particulars have been furnished:
Provided that where the amount of income in respect of which particulars
have been concealed or inaccurate particulars have been furnished on any
issue is considered both under the provisions contained in Section 115-JB
or Section 115-JC and under general provisions, such amount shall not be
reduced from total income assessed while determining the amount under
item D:
Provided further that in a case where the provisions contained in Section
115-JB or Section 115-JC are not applicable, the item (C-D) in the formula
shall be ignored;
(b) where in any case the amount of income in respect of which particulars have
been concealed or inaccurate particulars have been furnished has the effect of
reducing the loss declared in the return or converting that loss into income,
the amount of tax sought to be evaded shall be determined in accordance with
the formula specified in clause (a) with the modification that the amount to be
determined for item (A-B) in that formula shall be the amount of tax that
would have been chargeable on the income in respect of which particulars
have been concealed or inaccurate particulars have been furnished had such
income been the total income;
(c) where in any case to which Explanation 3 applies, the amount of tax sought
to be evaded shall be the tax on the total income assessed as reduced by the
amount of advance tax, tax deducted at source, tax collected at source and
self-assessment tax paid before the issue of notice under Section 148.]
Explanation 5.—Where in the course of a 3689 [search initiated under Section 132
before the 1st day of June, 2007], the assessee is found to be the owner of any
money, bullion, jewellery or other valuable article or thing (hereafter in this
Explanation referred to as assets) and the assessee claims that such assets have been
acquired by him by utilising (wholly or in part) his income,—
(a) for any previous year which has ended before the date of the search, but the
return of income for such year has not been furnished before the said date or,
where such return has been furnished before the said date, such income has
not been declared therein; or
(b) for any previous year which is to end on or after the date of the search;
then, notwithstanding that such income is declared by him in any return of income
furnished on or after the date of the search, he shall, for the purposes of imposition of
a penalty under clause (c) of sub-section (1) of this section, be deemed to have
concealed the particulars of his income or furnished inaccurate particulars of such
income, unless,—
(1) such income is, or the transactions resulting in such income are recorded,—
(i) in a case falling under clause (a), before the date of the search; and
(ii) in a case falling under clause (b), on or before such date,
in the books of account, if any, maintained by him for any source of income
or such income is otherwise disclosed to the 3690 [Principal Chief
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-
Commissioner or Chief Commissioner] or FN1209[Principal Commissioner or
Commissioner] before the said date; or
(2) he, in the course of the search, makes a statement under sub-section (4) of
Section 132 that any money, bullion, jewellery or other valuable article or
thing found in his possession or under his control, has been acquired out of
his income which has not been disclosed so far in his return of income to be
furnished before the expiry of time specified in sub-section (1) of Section 139,
and also specifies in the statement the manner in which such income has
been derived and pays the tax, together with interest, if any, in respect of
such income.
3692 [Explanation 5-A.—Where, in the course of a search initiated under Section 132
on or after the 1st day of June, 2007, the assessee is found to be the owner of—
(i) any money, bullion, jewellery or other valuable article or thing (hereafter in
this Explanation referred to as assets) and the assessee claims that such
assets have been acquired by him by utilising (wholly or in part) his income
for any previous year; or
(ii) any income based on any entry in any books of account or other documents
or transactions and he claims that such entry in the books of account or other
documents or transactions represents his income (wholly or in part) for any
previous year,
which has ended before the date of search and,—
(a) where the return of income for such previous year has been furnished before
the said date but such income has not been declared therein; or
(b) the due date for filing the return of income for such previous year has expired
but the assessee has not filed the return,
then, notwithstanding that such income is declared by him in any return of income
furnished on or after the date of search, he shall, for the purposes of imposition of a
penalty under clause (c) of sub-section (1) of this section, be deemed to have
concealed the particulars of his income or furnished inaccurate particulars of such
income.]
Explanation 6.—Where any adjustment is made in the income or loss declared in
the return under the proviso to clause (a) of sub-section (1) of Section 143 and
additional tax charged under that section, the provisions of this sub-section shall not
apply in relation to the adjustment so made.
3693 [Explanation 7.—Where in the case of an assessee who has entered into an 3694
[international transaction or specified domestic transaction] defined in Section 92-B,

any amount is added or disallowed in computing the total income under sub-section
(4) of Section 92-C, then the amount so added or disallowed shall, for the purposes of
clause (c) of this sub-section, be deemed to represent the income in respect of which
particulars have been concealed or inaccurate particulars have been furnished, unless
the assessee proves to the satisfaction of the Assessing Officer or the FN1210[Principal
Commissioner or Commissioner] (Appeals) 3696 [or the FN1211[Principal Commissioner or
Commissioner]] that the price charged or paid in such transaction was computed in
accordance with the provisions contained in Section 92-C and in the manner
prescribed under that section, in good faith and with due diligence.]
(1-A) Where any penalty is imposable by virtue of Explanation 2 to sub-section (1),
proceedings for the imposition of such penalty may be initiated notwithstanding that
any proceedings under this Act in the course of which such penalty proceedings could
have been initiated under sub-section (1) have been completed.
3698
[(1-B) Where any amount is added or disallowed in computing the total income
or loss of an assessee in any order of assessment or reassessment and the said order
contains a direction for initiation of penalty proceedings under clause (c) of sub-
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-
section (1), such an order of assessment or reassessment shall be deemed to

constitute satisfaction of the Assessing Officer for initiation of the penalty proceedings
under the said clause (c).]
(2) When the person liable to penalty is a registered firm or an unregistered firm
which has been assessed under clause (b) of Section 183, then notwithstanding
anything contained in the other provisions of this Act, the penalty imposable under
sub-section (1) shall be the same amount as would be imposable on that firm if that
firm were an unregistered firm.
(3) [Omitted]
(4) If the Assessing Officer or the 3699 [* * *] FN1212[Principal Commissioner or
Commissioner] (Appeals) in the course of any proceedings under this Act is satisfied
that the profits of a registered firm have been distributed otherwise than in accordance
with the shares of the partners shown in the instrument of partnership on the basis on
which the firm has been registered under this Act, and that any partner has thereby
returned his income below its real amount, he may direct that such partner shall, in
addition to the tax, if any, payable by him, pay by way of penalty a sum not exceeding
one-and-a-half times the amount of tax which has been avoided, or would have been
avoided if the income returned by such partner had been accepted as his correct
income; and no refund or other adjustment shall be claimable by any other partner by
reason of such direction.
(5) The provisions of this section as they stood immediately before their
amendment by the Direct Tax Laws (Amendment) Act, 1989 shall apply to and in
relation to any assessment for the assessment year commencing on the 1st day of
April, 1988, or any earlier assessment year and references in this section to the other
provisions of this Act shall be construed as references to those provisions as for the
time being in force and applicable to the relevant assessment year.
3701 [(6) Any reference in this section to the income shall be construed as a reference
to the income or fringe benefits, as the case may be, and the provisions of this section
shall, as far as may be, apply in relation to any assessment in respect of fringe
benefits also.]
3702 [(7) The provisions of this section shall not apply to and in relation to any
assessment for the assessment year commencing on or after the 1st day of April,
2017.]
271-A. Failure to keep, maintain or retain books of account, documents, etc.
— Without prejudice to the provisions of 3703 [Section 270-A or] Section 271, if any
person fails to keep and maintain any such books of account and other documents as
required by Section 44-AA or the rules made thereunder, in respect of any previous
year or to retain such books of account and other documents for the period specified in
the said rules, the Assessing Officer or the 3704 [* * *] 3705 [Principal Commissioner or
Commissioner] (Appeals) may direct that such person shall pay, by way of penalty,
3706 [a sum of twenty-five thousand rupees].
3707
[271-AA. Penalty for failure to keep and maintain information and
document, etc., in respect of certain transactions.— 3708 [(1)] Without prejudice to
the provisions of 3709 [Section 270-A or] Section 271 or Section 271-BA, if any person
in respect of an international transaction,—
(i) fails to keep and maintain any such information and document as required by
sub-section (1) or sub-section (2) of Section 92-D;
(ii) fails to report such transaction which he is required to do so; or
(iii) maintains or furnishes an incorrect information or document,
the Assessing Officer or Commissioner (Appeals) may direct that such person shall
pay, by way of penalty, a sum equal to two per cent of the value of each 3710
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-
[international transaction or specified domestic transaction] entered into by such
person.]
3711
[(2) If any person fails to furnish the information and the document as required
under sub-section (4) of Section 92-D, the prescribed income-tax authority referred to
in the said sub-section may direct that such person shall pay, by way of penalty, a
sum of five hundred thousand rupees.]
3712
[271-AAA. Penalty where search has been initiated.— (1) The Assessing
Officer may, notwithstanding anything contained in any other provisions of this Act,
direct that, in a case where search has been initiated under Section 132 on or after the
1st day of June, 2007 3713 [but before the 1st day of July, 2012], the assessee shall pay
by way of penalty, in addition to tax, if any, payable by him, a sum computed at the
rate of ten per cent of the undisclosed income of the specified previous year.
(2) Nothing contained in sub-section (1) shall apply if the assessee,—
(i) in the course of the search, in a statement under sub-section (4) of Section 132,
admits the undisclosed income and specifies the manner in which such income
has been derived;
(ii) substantiates the manner in which the undisclosed income was derived; and
(iii) pays the tax, together with interest, if any, in respect of the undisclosed
income.
(3) No penalty under the provisions of clause (c) of sub-section (1) of Section 271
shall be imposed upon the assessee in respect of the undisclosed income referred to in
sub-section (1).
(4) The provisions of Sections 274 and 275 shall, so far as may be, apply in relation
to the penalty referred to in this section.
(a) “undisclosed income” means—
(i) any income of the specified previous year represented, either wholly or partly,
by any money, bullion, jewellery or other valuable article or thing or any entry
in the books of account or other documents or transactions found in the course
of a search under Section 132, which has—
(A) not been recorded on or before the date of search in the books of account
or other documents maintained in the normal course relating to such
previous year; or
(B) otherwise not been disclosed to the 3714 [Principal Chief Commissioner or
Chief Commissioner] or 3715 [Principal Commissioner or Commissioner]
before the date of search; or
(ii) any income of the specified previous year represented, either wholly or
partly, by any entry in respect of an expense recorded in the books of account
or other documents maintained in the normal course relating to the specified
previous year which is found to be false and would not have been found to be
so had the search not been conducted;
(b) “specified previous year” means the previous year—
(i) which has ended before the date of search, but the date of filing the return of
income under sub-section (1) of Section 139 for such year has not expired
before the date of search and the assessee has not furnished the return of
income for the previous year before the said date; or
(ii) in which search was conducted.]
3716 [271-AAB. Penalty where search has been initiated.— (1) The Assessing
Officer may, notwithstanding anything contained in any other provisions of this Act,
direct that, in a case where search has been initiated under Section 132 on or after the
1st day of July, 2012, the assessee shall pay by way of penalty, in addition to tax, if
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-
any, payable by him,—

(a) a sum computed at the rate of ten per cent of the undisclosed income of the
specified previous year, if such assessee—
(i) in the course of the search, in a statement under sub-section (4) of Section
132, admits the undisclosed income and specifies the manner in which
such income has been derived;
(ii) substantiates the manner in which the undisclosed income was derived;
and
(iii) on or before the specified date—
(A) pays the tax, together with interest, if any, in respect of the
undisclosed income; and
(B) furnishes the return of income for the specified previous year declaring
such undisclosed income therein;
(b) a sum computed at the rate of twenty per cent of the undisclosed income of
the specified previous year, if such assessee—
(i) in the course of the search, in a statement under sub-section (4) of Section
132, does not admit the undisclosed income; and
(ii) on or before the specified date—
(A) declares such income in the return of income furnished for the specified
previous year; and
(B) pays the tax, together with interest, if any, in respect of the
undisclosed income;
(c) a sum 3717 [computed at the rate of sixty per cent] of the undisclosed income
of the specified previous year, if it is not covered by the provisions of clauses
(a) and (b).
(2) No penalty under the provisions of 3718 [Section 270-A or] clause (c) of sub-
section (1) of Section 271 shall be imposed upon the assessee in respect of the
undisclosed income referred to in sub-section (1).
(3) The provisions of Sections 274 and 275 shall, as far as may be, apply in relation
(a) “specified date” means the due date of furnishing of return of income under
sub-section (1) of Section 139 or the date on which the period specified in the
notice issued under Section 153-A for furnishing of return of income expires,
as the case may be;
(b) “specified previous year” means the previous year—
(i) which has ended before the date of search, but the date of furnishing the
return of income under sub-section (1) of Section 139 for such year has not
expired before the date of search and the assessee has not furnished the
return of income for the previous year before the date of search; or
(ii) in which search was conducted;
(c) “undisclosed income” means—
(i) any income of the specified previous year represented, either wholly or
partly, by any money, bullion, jewellery or other valuable article or thing or
any entry in the books of account or other documents or transactions found
in the course of a search under Section 132, which has—
(A) not been recorded on or before the date of search in the books of
account or other documents maintained in the normal course relating to
such previous year; or
(B) otherwise not been disclosed to the 3719 [Principal Chief Commissioner or
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-
Chief Commissioner] or 3720 [Principal Commissioner or Commissioner]
before the date of search; or
(ii) any income of the specified previous year represented, either wholly or
partly, by any entry in respect of an expense recorded in the books of
account or other documents maintained in the normal course relating to the
specified previous year which is found to be false and would not have been
found to be so had the search not been conducted.]
271-AAC. Penalty in respect of certain income.—(1) The Assessing Officer may,
notwithstanding anything contained in this Act other than the provisions of Section
271-AAB, direct that, in a case where the income determined includes any income
referred to in Section 68, Section 69, Section 69-A, Section 69-B, Section 69-C or
Section 69-D for any previous year, the assessee shall pay by way of penalty, in
addition to tax payable under Section 115-BBE, a sum computed at the rate of ten per
cent of the tax payable under clause (i) of sub-section (1) of Section 115-BBE:
Provided that no penalty shall be levied in respect of income referred to in Section
68, Section 69, Section 69-A, Section 69-B, Section 69-C or Section 69-D to the
extent such income has been included by the assessee in the return of income
furnished under Section 139 and the tax in accordance with the provisions of clause (i)
of sub-section (1) of Section 115-BBE has been paid on or before the end of the
relevant previous year.
(2) No penalty under the provisions of Section 270-A shall be imposed upon the
assessee in respect of the income referred to in sub-section (1).
(3) The provisions of Sections 274 and 275 shall, as far as may be, apply in relation
5223 [271-AAD. Penalty for false entry, etc., in books of account.—(1) Without
prejudice to any other provisions of this Act, if during any proceeding under this Act, it
is found that in the books of account maintained by any person there is—
(i) a false entry; or
(ii) an omission of any entry which is relevant for computation of total income of
such person, to evade tax liability,
the Assessing Officer may direct that such person shall pay by way of penalty a sum
equal to the aggregate amount of such false or omitted entry.
(2) Without prejudice to the provisions of sub-section (1), the Assessing Officer
may direct that any other person, who causes the person referred to in sub-section (1)
in any manner to make a false entry or omits or causes to omit any entry referred to in
that sub-section, shall pay by way of penalty a sum equal to the aggregate amount of
such false or omitted entry.
Explanation.—For the purposes of this section, “false entry” includes use or
intention to use—
(a) forged or falsified documents such as a false invoice or, in general, a false
piece of documentary evidence; or
(b) invoice in respect of supply or receipt of goods or services or both issued by
the person or any other person without actual supply or receipt of such goods
or services or both; or
(c) invoice in respect of supply or receipt of goods or services or both to or from
a person who does not exist.]
271-B. Failure to get accounts audited.— If any person fails to get his accounts
audited in respect of any previous year or years relevant to an assessment year or 3721
[furnish a report of such audit as required under Section 44-AB], the Assessing Officer
may direct that such person shall pay, by way of penalty, a sum equal to one-half per
cent of the total sales, turnover or gross receipts, as the case may be, in business or of
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-
the gross receipts in profession, in such previous year or years or a sum of 3722 [one
hundred fifty thousand rupees], whichever is less.
3723
[271-BA. Penalty for failure to furnish report under Section 92-E.— If any
person fails to furnish a report from an accountant as required by Section 92-E, the
Assessing Officer may direct that such person shall pay, by way of penalty, a sum of
one hundred thousand rupees.]
271-BB. Failure to subscribe to the eligible issue of capital.— Whoever fails to
subscribe any amount of subscription to the units issued under any scheme referred to
in sub-section (1) of Section 88-A to the eligible issue of capital under the sub-section
within the period of six months specified therein, may be directed by the Joint
Commissioner to pay, by way of penalty, a sum equal to twenty per cent of such
amount.
271-C. Penalty for failure to deduct tax at source.—3724 [(1) If any person fails
to—
(a) deduct the whole or any part of the tax as required by or under the provisions
of Chapter XVII-B; or
(b) pay the whole or any part of the tax as required by or under,—
(i) sub-section (2) of Section 115-O; or
(ii) the second proviso to Section 194-B;
then, such person shall be liable to pay, by way of penalty, a sum equal to the amount
of tax which such person failed to deduct or pay as aforesaid.]
(2) Any penalty imposable under sub-section (1) shall be imposed by the Joint
Commissioner.
3725 [271-CA. Penalty for failure to collect tax at source.— (1) If any person fails
to collect the whole or any part of the tax as required by or under the provisions of
Chapter XVII-BB, then, such person shall be liable to pay, by way of penalty, a sum
equal to the amount of tax which such person failed to collect as aforesaid.
Commissioner.]
271-D. Penalty for failure to comply with the provisions of Section 269-SS.
—3726 [(1) If a person takes or accepts any loan or deposit 3727 [or specified sum] in
contravention of the provisions of Section 269-SS, he shall be liable to pay, by way of
penalty, a sum equal to the amount of the loan or deposit so taken or accepted.
Commissioner.]
3728
[271-DA. Penalty for failiure to comply with provisions of Section 269-
ST.— (1) If a person receives any sum in contravention of the provisions of Section
269-ST, he shall be liable to pay, by way of penalty, a sum equal to the amount of
such receipt:
Provided that no penalty shall be imposable if such person proves that there were
good and sufficient reasons for the contravention.
Commissioner.]
3729
[271-DB. Penalty for failure to comply with provisions of Section 269-SU.
— (1) If a person who is required to provide facility for accepting payment through the
prescribed electronic modes of payment referred to in Section 269-SU, fails to provide
such facility, he shall be liable to pay, by way of penalty, a sum of five thousand
rupees, for every day during which such failure continues:
Provided that no such penalty shall be imposable if such person proves that there
were good and sufficient reasons for such failure.
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Commissioner of Income-tax.]
271-E. Penalty for failure to comply with the provisions of Section 269-T.—
3730
[(1) If a person repays any 3731 [loan or] deposit 3732 [or specified advance] referred
to in Section 269-T otherwise than in accordance with the provisions of that section,
he shall be liable to pay, by way of penalty, a sum equal to the amount of the 3733 [loan
or] deposit so repaid.
Commissioner.]
3734 [271-F. Penalty for failure to furnish return of income.— If a person who is
required to furnish a return of his income, as required under sub-section (1) of Section
139 or by the provisos to that sub-section, fails to furnish such return before the end
of the relevant assessment year, the Assessing Officer may direct that such person
shall pay, by way of penalty, a sum of five thousand rupees:]
3735
[Provided that nothing contained in this section shall apply to and in relation
to the return of income required to be furnished for any assessment year
commencing on or after the 1st day of April, 2018.]
3736 [271-FA.
Penalty for failure to furnish 3737[statement of financial
transaction or reportable account].— If a person who is required to furnish 3738 [a
statement of financial transaction or reportable account] under sub-section (1) of
Section 285-BA, fails to furnish such 3739 [statement] within the time prescribed under
sub-section (2) thereof, the income tax authority prescribed under said sub-section
(1) may direct that such person shall pay, by way of penalty, a sum of 3740 [five
hundred rupees] for every day during which such failure continues:
Provided that where such person fails to furnish the FN1213[statement] within the
period specified in the notice issued under sub-section (5) of Section 285-BA, he
shall pay, by way of penalty, a sum of 3742 [one thousand rupees] for every day
during which the failure continues, beginning from the day immediately following
the day on which the time specified in such notice for furnishing the FN1214
[statement] expires.]
3744
[271-FAA. Penalty for furnishing inaccurate statement of financial
transaction or reportable account.—If a person referred to in 3745 [* * *] sub-
section (1) of Section 285-BA, who is required to furnish a statement under that
section, provides inaccurate information in the statement, and where—
(a) the inaccuracy is due to a failure to comply with the due diligence
requirement prescribed under sub-section (7) of Section 285-BA or is
deliberate on the part of that person; or
(b) the person knows of the inaccuracy at the time of furnishing the statement of
financial transaction or reportable account, but does not inform the prescribed
income tax authority or such other authority or agency; or
(c) the person discovers the inaccuracy after the statement of financial
transaction or reportable account is furnished and fails to inform and furnish
correct information within the time specified under sub-section (6) of Section
285-BA,
then, the prescribed income tax authority may direct that such person shall pay,
by way of penalty, a sum of fifty thousand rupees.]
3746
[271-FAB. Penalty for failure to furnish statement or information or
document by an eligible investment fund.— If any eligible investment fund which
is required to furnish a statement or any information or document, as required under
sub-section (5) of Section 9-A fails to furnish such statement or information or
document within the time prescribed under that sub-section, the income tax authority
prescribed under the said sub-section may direct that such fund shall pay, by way of
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-
penalty, a sum of five hundred thousand rupees.]
3747 [271-FB. Penalty for failure to furnish return of fringe benefits.— If an
employer, who is required to furnish a return of fringe benefits, as required under sub-
section (1) of Section 115-WD, fails to furnish such return within the time prescribed
under that sub-section, the Assessing Officer may direct that such employer shall pay,
by way of penalty, a sum of one hundred rupees for every day during which the failure
continues.]
3748 [271-G. Penalty for failure to furnish information or document under
Section 92-D.— If any person who has entered into an 3749 [international transaction
or specified domestic transaction] fails to furnish any such information or document as
required by sub-section (3) of Section 92-D, the Assessing Officer 3750 [or the Transfer
Pricing Officer as referred to in Section 92-CA] or the 3751 [Principal Commissioner or
Commissioner] (Appeals) may direct that such person shall pay, by way of penalty, a
sum equal to two per cent of the value of the FN1215[international transaction or
specified domestic transaction] for each such failure.]
3753 [271-GA. Penalty for failure to furnish information or document under
Section 285-A.— If any Indian concern, which is required to furnish any information
or document under Section 285-A, fails to do so, the income tax authority, as may be
prescribed under the said section, may direct that such Indian concern shall pay, by
way of penalty,—
(i) a sum equal to two per cent of the value of the transaction in respect of which
such failure has taken place, if such transaction had the effect of directly or
indirectly transferring the right of management or control in relation to the
Indian concern;
(ii) a sum of five hundred thousand rupees in any other case.”.
3754 [271-GB. Penalty for failure to furnish report or for furnishing inaccurate
report under Section 286.— (1) If any reporting entity referred to in Section 286,
which is required to furnish the report referred to in sub-section (2) of the said
section, in respect of a reporting accounting year, fails to do so, the authority
prescribed under that section (herein referred to as prescribed authority) may direct
that such entity shall pay, by way of penalty, a sum of,—
(a) five thousand rupees for every day for which the failure continues, if the
period of failure does not exceed one month; or
(b) fifteen thousand rupees for every day for which the failure continues beyond
the period of one month.
(2) Where any reporting entity referred to in Section 286 fails to produce the
information and documents within the period allowed under sub-section (6) of the said
section, the prescribed authority may direct that such entity shall pay, by way of
penalty, a sum of five thousand rupees for every day during which the failure
continues, beginning from the day immediately following the day on which the period
for furnishing the information and document expires.
(3) If the failure referred to in sub-section (1) or sub-section (2) continues after an
order has been served on the entity, directing it to pay the penalty under sub-section
(1) or, as the case may be, under sub-section (2), then, notwithstanding anything
contained in sub-section (1) or sub-section (2), the prescribed authority may direct
that such entity shall pay, by way of penalty, a sum of fifty thousand rupees for every
day for which such failure continues beginning from the date of service of such order.
(4) Where a reporting entity referred to in Section 286 provides inaccurate
information in the report furnished in accordance with sub-section (2) of the said
section and where—
(a) the entity has knowledge of the inaccuracy at the time of furnishing the
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-
report but fails to inform the prescribed authority; or
(b) the entity discovers the inaccuracy after the report is furnished and fails to
inform the prescribed authority and furnish correct report within a period of
fifteen days of such discovery; or
(c) the entity furnishes inaccurate information or document in response to the
notice issued under sub-section (6) of Section 286,
then, the prescribed authority may direct that such person shall pay, by way of
penalty, a sum of five lakh rupees.]
3755 [271-H. Penalty for failure to furnish statements, etc..—
(1) Without
prejudice to the provisions of the Act, 3756 [the Assessing Officer may direct that a
person shall pay by way of] penalty, if, he—
(a) fails to deliver or cause to be delivered a statement within the time
prescribed in sub-section (3) of Section 200 or the proviso to sub-section (3)
of Section 206-C; or
(b) furnishes incorrect information in the statement which is required to be
delivered or cause to be delivered under sub-section (3) of Section 200 or the
proviso to sub-section (3) of Section 206-C.
(2) The penalty referred to in sub-section (1) shall be a sum which shall not be less
than ten thousand rupees but which may extend to one lakh rupees.
no penalty shall be levied for the failure referred to in clause (a) of sub-section (1), if
the person proves that after paying tax deducted or collected along with the fee and
interest, if any, to the credit of the Central Government, he had delivered or cause to
be delivered the statement referred to in sub-section (3) of Section 200 or the proviso
to sub-section (3) of Section 206-C before the expiry of a period of one year from the
time prescribed for delivering or causing to be delivered such statement.
(4) The provisions of this section shall apply to a statement referred to in sub-
section (3) of Section 200 or the proviso to sub-section (3) of Section 206-C which is
to be delivered or caused to be delivered for tax deducted at source or tax collected at
source, as the case may be, on or after the 1st day of July, 2012.]
3757 [271-I. Penalty for failure to furnish information or furnishing inaccurate
information under Section 195.— If a person, who is required to furnish information

under sub-section (6) of Section 195, fails to furnish such information, or furnishes
inaccurate information, the Assessing Officer may direct that such person shall pay, by
way of penalty, a sum of one lakh rupees.]
3758 [271-J.
Penalty for furnishing incorrect information in reports or
certificates.— Without prejudice to the provisions of this Act, where the Assessing
Officer or the Commissioner (Appeals), in the course of any proceedings under this
Act, finds that an accountant or a merchant banker or a registered valuer has
furnished incorrect information in any report or certificate furnished under any
provision of this Act or the rules made thereunder, the Assessing Officer or the
Commissioner (Appeals) may direct that such accountant or merchant banker or
registered valuer, as the case may be, shall pay, by way of penalty, a sum of ten
thousand rupees for each such report or certificate.
(a) “accountant” means an accountant referred to in the Explanation below sub-
(b) “merchant banker” means Category I merchant banker registered with the
Securities and Exchange Board of India established under Section 3 of the
Securities and Exchange Board of India Act, 1992 (15 of 1992);
(c) “registered valuer” means a person defined in clause (oaa) of Section 2 of the
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-
Wealth-tax Act, 1957 (27 of 1957).]
5224 [271-K. Penalty for failure to furnish statements, etc.—Without prejudice to
the provisions of this Act, the Assessing Officer may direct that a sum not less than
ten thousand rupees but which may extend to one lakh rupees shall be paid by way of
penalty by—
(i) the research association, university, college or other institution referred to in
clause (ii) or clause (iii) or the company referred to in clause (iia), of sub-
section (1) of Section 35, if it fails to deliver or cause to be delivered a
statement within the time prescribed under clause (i), or furnish a certificate
prescribed under clause (ii) of sub-section (1-A) of that section; or
(ii) the institution or fund, if it fails to deliver or cause to be delivered a
statement within the time prescribed under clause (viii) of sub-section (5) of
Section 80-G, or furnish a certificate prescribed under clause (ix) of the said
sub-section.].
272. [Omitted]
272-A. Penalty for failure to answer questions, sign statements, furnish
information, returns or statements, allow inspections, etc.— (1) If any person,—
(a) being legally bound to state the truth of any matter touching the subject of his
assessment, refuses to answer any question put to him by an income tax
authority in the exercise of its powers under this Act; or
(b) refuses to sign any statement made by him in the course of any proceedings
under this Act, which an income tax authority may legally require him to sign; or
(c) to whom a summons is issued under sub-section (1) of Section 131 either to
attend to give evidence or produce books of account or other documents at a
certain place and time omits to attend or produce books of account or documents
at the place or time; or
3759
[(d) fails to comply with a notice under sub-section (1) of Section 142 or sub-
section (2) of Section 143 or fails to comply with a direction issued under sub-
section (2-A) of Section 142,]
he shall pay, by way of penalty, 3760 [a sum of ten thousand rupees] for each such
default or failure.
(2) If any person fails—
(a) to comply with a notice issued under sub-section (6) of Section 94; or
(b) to give the notice of discontinuance of his business or profession as required by
sub-section (3) of Section 176; or
(c) to furnish in due time any of the returns, statements or particulars mentioned in
Section 133 or Section 206 3761 [* * *][or Section 206-C]3762 or Section 285-B; or
(d) to allow inspection of any register referred to in Section 134 or of any entry in
such register or to allow copies of such register or any entry therein to be taken;
or
3763
[(e) to furnish the return of income which he is required to furnish under sub-
section (4-A) or sub-section (4-C) of Section 139 or to furnish it within the time
allowed and in the manner required under those sub-sections; or]
(f) to deliver or cause to be delivered in due time a copy of the declaration
mentioned in Section 197-A; or
(g) to furnish a certificate as required by Section 203 3764 [or Section 206-C]; or
(h) to deduct and pay tax as required by sub-section (2) of Section 226;
3765 [(i) to furnish a statement as required by sub-section (2-C) of Section 192;]
3766
[(j) to deliver or cause to be delivered in due time a copy of the declaration
referred to in sub-section (1-A) of Section 206-C,]
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-
3767
[(k) to deliver or cause to be delivered a copy of the statement within the time
specified in sub-section (3) of Section 200 or the proviso to sub-section (3) of
Section 206-C,]
3768
[(l) to deliver or cause to be delivered the 3769 [statements] within the time
specified in sub-section (1) of Section 206-A,]
3770
[(m) to deliver or cause to be delivered a statement within the time as may be
prescribed under sub-section (2-A) of Section 200 or sub-section (3-A) of
Section 206-C,]
he shall pay, by way of penalty, a sum [of one hundred rupees]3771 for every day during
which the failure continues:
3772 [Provided
that the amount of penalty for failures in relation to 3773 [a
declaration mentioned in Section 197-A, a certificate as required by Section 203
and] returns under Sections 206 and 206-C 3774 [and 3775 [statements under sub-
section (2-A) or sub-section (3) of Section 200 or the proviso to sub-section (3) or
under sub-section (3-A) of Section 206-C]] shall not exceed the amount of tax
deductible or collectible, as the case may be:]
3776 [Provided further that no penalty shall be levied under this section for the
failure referred to in clause (k), if such failure relates to a statement referred to in

sub-section (3) of Section 200 or the proviso to sub-section (3) of Section 206-C
which is to be delivered or caused to be delivered for tax deducted at source or tax
collected at source, as the case may be, on or after the 1st day of July, 2012.]
(3) Any penalty imposable under sub-section (1) or sub-section (2) shall be
imposed—
(a) in a case where the contravention, failure or default in respect of which such
penalty is imposable occurs in the course of any proceeding before an income tax
authority not lower in rank than Joint Director or a Joint Commissioner, by such
income tax authority;
3777 [(aa) in a case falling under clause (d) of sub-section (1), by the income-tax
authority who had issued the notice or direction referred to therein;]

(b) in a case falling under clause (f) of sub-section (2), by the 3778 [Principal Chief
Commissioner or Chief Commissioner] or 3779 [Principal Commissioner or
Commissioner]; and
(c) in any other case, by the Joint Director or the Joint Commissioner.
(4) No order under this section shall be passed by any income tax authority referred
to in sub-section (3) unless the person on whom the penalty is proposed to be
imposed is given an opportunity of being heard in the matter by such authority.
Explanation.—In this section “income tax authority” includes a 3780 [Principal Director
General or Director General], Director, Joint Director and an Assistant Director or
Deputy Director while exercising the powers vested in a court under the Code of Civil
Procedure, 1908 (5 of 1908), when trying a suit in respect of the matters specified in
272-AA. Penalty for failure to comply with the provisions of Section 133-B.
— (1) If a person fails to comply with the provisions of Section 133-B, he shall, on an
order passed by the Joint Commissioner, Assistant Director or Deputy Director or the
Assessing Officer as the case may be, pay by way of penalty, a sum which may extend
to one thousand rupees.
(2) No order under sub-section (1) shall be passed unless the person on whom the
penalty is proposed to be imposed is given an opportunity of being heard in the
matter.
3781 [272-B. Penalty for failure to comply with the provisions of Section 139-
A.— (1) If a person fails to comply with the provisions of Section 139-A, the Assessing
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-
Officer may direct that such person shall pay, by way of penalty, a sum of ten
thousand rupees.
(2) If a person who is required to quote his 3782 [permanent account number or
Aadhaar number, as the case may be,] in any document referred to in clause (c) of
sub-section (5) of Section 139-A, or to intimate such number as required by sub-
section (5-A) 3783 [or sub-section (5-C)] of that section, quotes or intimates a number
which is false, and which he either knows or believes to be false or does not believe to
be true, the Assessing Officer may direct that such person shall pay, by way of
penalty, a sum of 3784 [ten thousand rupees for each such default].
3785 [(2-A) If a person, who is required to quote his permanent account number or
Aadhaar number, as the case may be, in documents referred to in sub-section (6A) of
Section 139-A or authenticate such number in accordance with the provisions of the
said sub-section, fails to do so, the Assessing Officer may direct that such person shall
pay, by way of penalty, a sum of ten thousand rupees for each such default.
(2-B) If a person, who is required to ensure that the permanent account number or
the Aadhaar number, as the case may be, has been,—
(i) duly quoted in the documents relating to transactions referred to in clause (c)
of sub-section (5) or in sub-section (6A) of Section 139-A; or
(ii) duly authenticated in respect of transactions referred to under sub-section
(6A) of that section,
fails to do so, the Assessing Officer may direct that such person shall pay, by
way of penalty, a sum of ten thousand rupees for each such default.]
(3) No order under sub-section (1) or 3786 [sub-section (2) or sub-section (2A) or
sub-section (2B)] shall be passed unless the person, on whom the penalty is proposed
to be imposed, is given an opportunity of being heard in the matter.]
272-BB. Penalty for failure to comply with the provisions of Section 203-A.
— (1) If a person fails to comply with the provisions of Section 203-A, he shall, on an
order passed by the Assessing Officer, pay, by way of penalty, 3787 [a sum of ten
thousand rupees].
3788 [(1-A) If a person who is required to quote his “tax deduction account number”
or, as the case may be, “tax collection account number” or “tax deduction and
collection account number” in the challans or certificates or statements or other
documents referred to in sub-section (2) of Section 203-A, quotes a number which is
false, and which he either knows or believes to be false or does not believe to be true,
the Assessing Officer may direct that such person shall pay, by way of penalty, a sum
of ten thousand rupees.]
(2) No order under sub-section (1) 3789 [or sub-section (1-A)] shall be passed unless
the person on whom the penalty is proposed to be imposed is given an opportunity of
being heard in the matter.
3790 [272-BBB. Penalty for failure to comply with the provisions of Section
206-CA.— (1) If a person fails to comply 3791 [before the 1st day of October, 2004]
with the provisions of Section 206-CA, he shall, on an order passed by the Assessing
Officer, pay, by way of penalty, a sum of ten thousand rupees.
(2) No order under sub-section (1) shall be passed unless the person on whom the
penalty is proposed to be imposed is given an opportunity of being heard in the
matter.]
273. False estimate of, or failure to pay, advance tax.— (1) If the Assessing
Officer, in the course of any proceedings in connection with the regular assessment for
any assessment year, is satisfied that any assessee—
(a) has furnished under clause (a) of sub-section (1) of Section 209-A a
statement of the advance tax payable by him which he knew or had reason to
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-
believe to be untrue, or
(b) has failed to furnish a statement of the advance tax payable by him in
accordance with the provisions of clause (a) of sub-section (1) of Section 209-
A,
he may direct that such person shall, in addition to the amount of tax, if any, payable
by him, pay by way of penalty a sum—
(i) which, in the case referred to in clause (a), shall not be less than ten per cent
but shall not exceed one and a half times the amount by which the tax
actually paid during the financial year immediately preceding the assessment
year under the provisions of Chapter XVII-C falls short of—
(1) seventy-five per cent of the assessed tax as defined in sub-section (5) of
Section 215, or
(2) the amount which would have been payable by way of advance tax if the
assessee had furnished a correct and complete statement in accordance
with the provisions of clause (a) of sub-section (1) of Section 209-A,
whichever is less;
(ii) which, in the case referred to in clause (b), shall not be less than ten per
cent but shall not exceed one and a half times of seventy-five per cent of the
assessed tax as defined in sub-section (5) of Section 215:
Provided that in the case of an assessee, being a company, the provisions of this
sub-section shall have effect as if for the words “seventy-five per cent”, at both the
places wherever they occur, the words “eighty-three and one-third per cent” had been
substituted.
(2) If the Assessing Officer, in the course of any proceedings in connection with the
regular assessment for the assessment year commencing on the 1st day of April,
1970, or any subsequent assessment year, is satisfied that any assessee—
(a) has furnished under sub-section (1) or sub-section (2) or sub-section (3) or
sub-section (5) of Section 209-A, or under sub-section (1) or sub-section (2)
of Section 212, an estimate of the advance tax payable by him which he knew
or had reason to believe to be untrue, or
(aa) has furnished under sub-section (4) of Section 209-A or under sub-section
(3-A) of Section 212 an estimate of the advance tax payable by him which he
knew or had reason to believe to be untrue, or
(b) has failed to furnish an estimate of the advance tax payable by him in
accordance with the provisions of clause (b) of sub-section (1) of Section 209-
A, or
(c) has failed to furnish an estimate of the advance tax payable by him in
accordance with the provisions of sub-section (4) of Section 209-A or sub-
section (3-A) of Section 212,
he may direct that such person shall, in addition to the amount of tax, if any, payable
by him, pay by way of penalty a sum—
(i) which, in the case referred to in clause (a), shall not be less than ten per cent
but shall not exceed one and a half times the amount by which the tax
year under the provisions of Chapter XVII-C falls short of—
(1) seventy-five per cent of the assessed tax as defined in sub-section (5) of
Section 215, or
(2) where a statement under clause (a) of sub-section (1) of Section 209-A
was furnished by the assessee or where a notice under Section 210 was
issued to the assessee, the amount payable under such statement or, as
the case may be, such notice,
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-
whichever is less;
(i-a) which, in the case referred to in clause (aa), shall not be less than ten per
cent but shall not exceed one and a half times the amount by which the tax
year under the provisions of Chapter XVII-C falls short of seventy-five per
cent of the assessed tax as defined in sub-section (5) of Section 215;
(ii) which, in the case referred to in clause (b), shall not be less than ten per
cent but shall not exceed one and a half times of seventy-five per cent of the
assessed tax as defined in sub-section (5) of Section 215; and
(iii) which, in the case referred to in clause (c), shall not be less than ten per
cent but shall not exceed one and a half times the amount by which—
(a) where the assessee has sent a statement under clause (a), or an estimate
under clause (b), of sub-section (1) of Section 209-A, or an estimate in lieu
of a statement under sub-section (2) of that section, the tax payable in
accordance with the statement or estimate; or
(b) where the assessee was required to pay advance tax in accordance with
the notice issued to him under Section 210, the tax payable under such
notice,
falls short of seventy-five per cent of the assessed tax as defined in sub-
section (5) of Section 215:
Provided that in the case of an assessee, being a company, the provisions of this
sub-section shall have effect as if for the words “seventy-five per cent”, wherever they
occur, the words “eighty-three and one-third per cent” had been substituted.
Explanation 1.—For the purposes of clause (i-a), the amount paid by the assessee
on or before the date extended by the 3792 [Principal Chief Commissioner or Chief
Commissioner] or 3793 [Principal Commissioner or Commissioner] under the first proviso
to sub-section (4) of Section 209-A or, as the case may be, first proviso to sub-section
(3-A) of Section 212 shall, where the date so extended falls beyond the financial year
immediately preceding the assessment year, also be regarded as tax actually paid
during that financial year.
Explanation 2.—When the person liable to penalty is a registered firm or an
unregistered firm which has been assessed under clause (b) of Section 183, then,
notwithstanding anything contained in the other provisions of this Act, the penalty
imposable under this section shall be the same amount as would be imposable on that
firm if that firm were an unregistered firm.
(3) The provisions of this section shall apply to and in relation to any assessment
for the assessment year commencing on the 1st day of April, 1988, or any earlier
assessment year, and references in this section to the other provisions of this Act shall
be construed as references to those provisions as for the time being in force and
applicable to the relevant assessment year.
273-A. Power to reduce or waive penalty, etc., in certain cases.— (1)
Notwithstanding anything contained in this Act, the 3794 [3795 [Principal Chief
Commissioner or Chief Commissioner] or] 3796 [Principal Commissioner or
Commissioner] may, in his discretion, whether on his own motion or otherwise,—
(i) [Omitted;]
(ii) reduce or waive the amount of penalty imposed or imposable on a person
under 3797 [Section 270-A or] clause (iii) of sub-section (1) of Section 271; or
if he is satisfied that such person—
(a) [Omitted;]
(b) in the case referred to in clause (ii), has, prior to the detection by the
Assessing Officer, of the concealment of particulars of income or of the
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-
inaccuracy of particulars furnished in respect of such income, voluntarily
and in good faith, made full and true disclosure of such particulars;
and also has, in the case referred to in clause (b) cooperated in any enquiry relating to
the assessment of his income and has either paid or made satisfactory arrangements
for the payment of any tax or interest payable in consequence of an order passed
under this Act in respect of the relevant assessment year.
Explanation.—For the purposes of this sub-section, a person shall be deemed to
have made full and true disclosure of his income or of the particulars relating thereto
in any case where the excess of income assessed over the income returned is of such a
nature as not to attract the provisions of 3798 [Section 270-A or] clause (c) of sub-
section (1) of Section 271.
(2) Notwithstanding anything contained in sub-section (1),—
(a) [Omitted;]
(b) if in a case falling under 3799 [Section 270-A or] clause (c) of sub-section (1)
of Section 271, the amount of income in respect of which the penalty is
imposed or imposable for the relevant assessment year, or where such
disclosure relates to more than one assessment year, the aggregate amount of
such income for those years, exceeds a sum of five hundred thousand rupees,
no order reducing or waiving the penalty under sub-section (1) shall be made by 3800
[the FN1216[Principal Commissioner or Commissioner] except with the previous approval
of the FN1217[Principal Chief Commissioner or Chief Commissioner] or 3803 [Principal
Director General or Director General] as the case may be].
(3) Where an order has been made under sub-section (1) in favour of any person,
whether such order relates to one or more assessment years, he shall not be entitled
to any relief under this section in relation to any other assessment year at any time
after the making of such order:
3804 [Provided that where an order has been made in favour of any person under
sub-section (1) on or before the 24th day of July, 1991, such person shall be entitled
to further relief only once in relation to other assessment year or years if he makes an
application to the income tax authority referred to in sub-section (4) at any time
before the 1st day of April, 1992.]
(4) Without prejudice to the powers conferred on him by any other provision of this
Act, the 3805 [* * *] FN1218[Principal Commissioner or Commissioner] may, on an
application made in this behalf by an assessee and after recording his reasons for so
doing, reduce or waive the amount of any penalty payable by the assessee under this
Act or stay or compound any proceeding for the recovery of any such amount, if he is
satisfied that—
(i) to do otherwise would cause genuine hardship to the assessee, having regard
to the circumstances of the case; and
(ii) the assessee has cooperated in any enquiry relating to the assessment or any
proceeding for the recovery of any amount due from him:
Provided that where the amount of any penalty payable under this Act or, where
such application relates to more than one penalty, the aggregate amount of such
penalties exceeds one hundred thousand rupees, no order reducing or waiving the
amount or compounding any proceeding for its recovery under this sub-section shall
be made by 3807 [the FN1219[Principal Commissioner or Commissioner] except with the
previous approval of the FN1220[Principal Chief Commissioner or Chief Commissioner] or
FN1221
[Principal Director General or Director General], as the case may be].
3811
[(4-A) The order under sub-section (4), either accepting or rejecting the
application in full or in part, shall be passed within a period of twelve months from the
end of the month in which the application under the said sub-section is received by
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-
the Principal Commissioner or the Commissioner:
Provided that no order rejecting the application, either in full or in part, shall be
passed unless the assessee has been given an opportunity of being heard:
Provided further that where any application is pending as on the 1st day of June,
(5) Every order made under this section shall be final and shall not be called into
question by any court or any other authority.
amendment by the Direct Tax Laws (Amendment) Act, 1989 shall apply to and in
relation to any assessment for the assessment year commencing on the 1st day of
April, 1988, or any earlier assessment year, and references in this section to the other
provisions of this Act shall be construed as references to those provisions as for the
time being in force and applicable to the relevant assessment year.
3812
[(7) Notwithstanding anything contained in sub-section (6), the provisions of
sub-section (1), sub-section (2) or, as the case may be, sub-section (4) [as they stood
immediately before their amendment by the Direct Tax Laws (Amendment) Act 1989],
shall apply in the case of reduction or waiver of penalty or interest in relation to any
assessment for the assessment year commencing on the 1st day of April, 1988 or any
earlier assessment year, with the modifications that the power under the said sub-
section (1) shall be exercisable only by the FN1222[Principal Commissioner or
Commissioner] and instead of the previous approval of the Board, the FN1223[Principal
Commissioner or Commissioner] shall obtain the previous approval of the FN1224
[Principal Chief Commissioner or Chief Commissioner] or FN1225[Principal Director
General or Director General], as the case may be, while dealing with such case.]
3817 [273-AA. Power of 3818[Principal Commissioner or Commissioner] to grant
immunity from penalty.— (1) A person may make an application to the FN1226
[Principal Commissioner or Commissioner] for granting immunity from penalty, if—
(a) he has made an application for settlement under Section 245-C and the
proceedings for settlement have abated under Section 245-HA; and
(b) the penalty proceedings have been initiated under this Act.
(2) The application to the FN1227[Principal Commissioner or Commissioner] under sub
-section (1) shall not be made after the imposition of penalty after abatement.
(3) The FN1228[Principal Commissioner or Commissioner] may, subject to such
conditions as he may think fit to impose, grant to the person immunity from the
imposition of any penalty under this Act, if he is satisfied that the person has, after
the abatement, co-operated with the income tax authority in the proceedings before
him and has made a full and true disclosure of his income and the manner in which
such income has been derived.
3822
[(3-A) The order under sub-section (3), either accepting or rejecting the
application in full or in part, shall be passed within a period of twelve months from the
end of the month in which the application under the said sub-section is received by
the Principal Commissioner or the Commissioner:
Provided that no order rejecting the application, either in full or in part, shall be
passed unless the assessee has been given an opportunity of being heard:
Provided further that where any application is pending as on the 1st day of June,
(4) The immunity granted to a person under sub-section (3) shall stand withdrawn,
if such person fails to comply with any condition subject to which the immunity was
granted and thereupon the provisions of this Act shall apply as if such immunity had
not been granted.
(5) The immunity granted to a person under sub-section (3) may, at any time, be
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-
withdrawn by the FN1229[Principal Commissioner or Commissioner], if he is satisfied that
such person had, in the course of any proceedings, after abatement, concealed any
particulars material to the assessment from the income tax authority or had given
false evidence, and thereupon such person shall become liable to the imposition of any
penalty under this Act to which such person would have been liable, had not such
immunity been granted.]
273-B. Penalty not to be imposed in certain cases.— Notwithstanding anything
contained in the provisions of clause (b) of sub-section (1) of Section 271, Section 271
-A 3824 [Section 271-AA], Section 271-B 3825 [Section 271-BA], 3826 [Section 271-BB, 3827
[Section 271-C, Section 271-CA], Section 271-D, Section 271-E, 3828 [Section 271-F,]
3829 [Section
271-FA 3830 [, 3831 [Section 271-FAB, Section 271-FB, Section 271-G,
Section 271-GA, 3832 [Section 271-GB,]]] 3833 [Section 271-H,] 3834 [Section 271-I,] 3835
[Section 271-J,] clause (c) or clause (d) of sub-section (1) or sub-section (2) of
Section 272-A, sub-section (1) of Section 272-AA] or 3836 [Section 272-B or] 3837 [sub-
section (1) or sub-section (1-A) of Section 272-BB] or sub-section (1) of Section 272-
BBB or] clause (b) of sub-section (1) or clause (b) or clause (c) of sub-section (2) of
Section 273, no penalty shall be imposable on the person or the assessee, as the case
may be, for any failure referred to in the said provisions if he proves that there was
reasonable cause for the said failure.
274. Procedure.— (1) No order imposing a penalty under this Chapter shall be
made unless the assessee has been heard, or has been given a reasonable opportunity
of being heard.
(2) No order imposing a penalty under this Chapter shall be made—
(a) by the Income Tax Officer, where the penalty exceeds ten thousand rupees;
(b) by the Assistant Commissioner or Deputy Commissioner, where the penalty
exceeds twenty thousand rupees,
except with the prior approval of the Joint Commissioner.
5225 [(2-A) The Central Government may make a scheme, by notification in the
Official Gazette, for the purposes of imposing penalty under this Chapter so as to
impart greater efficiency, transparency and accountability by—
(a) eliminating the interface between the Assessing Officer and the assessee in
the course of proceedings to the extent technologically feasible;
(b) optimising utilisation of the resources through economies of scale and
functional specialisation;
(c) introducing a mechanism for imposing of penalty with dynamic jurisdiction in
which penalty shall be imposed by one or more income-tax authorities.
(2-B) The Central Government may, for the purposes of giving effect to the
scheme made under sub-section (2-A), by notification in the Official Gazette, direct
that any of the provisions of this Act relating to jurisdiction and procedure for
imposing penalty shall not apply or shall apply with such exceptions, modifications
and adaptations as may be specified in the notification:
Provided that no direction shall be issued after the 31st day of March, 2022.
(2-C) Every notification issued under sub-section (2-A) and sub-section (2-B) shall,
as soon as may be after the notification is issued, be laid before each House of
Parliament.]
(3) An income tax authority on making an order under this Chapter imposing a
penalty, unless he is himself the Assessing Officer, shall forthwith send a copy of such
order to the Assessing Officer.
275. Bar of limitation for imposing penalties.— (1) No order imposing a penalty
under this Chapter shall be passed—
(a) in a case where the relevant assessment or other order is the subject-matter
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of an appeal to the 3838 [* * *] 3839 [Principal Commissioner or Commissioner]
(Appeals) under Section 246 3840 [or Section 246-A] or an appeal to the
Appellate Tribunal under Section 253, after the expiry of the financial year in
which the proceedings, in the course of which action for the imposition of
penalty has been initiated, are completed, or six months from the end of the
month in which the order of the 3841 [* * *] FN1230[Principal Commissioner or
Commissioner] (Appeals) or, as the case may be, the Appellate Tribunal is
received by the 3843 [Principal Chief Commissioner or Chief Commissioner] or
FN1231 [Principal Commissioner or Commissioner] whichever period expires later:
3845 [Provided that in a case where the relevant assessment or other order is
the subject-matter of an appeal to the FN1232[Principal Commissioner or

Commissioner] (Appeals) under Section 246 or Section 246-A, and the FN1233
[Principal Commissioner or Commissioner] (Appeals) passes the order on or
after the 1st day of June, 2003 disposing of such appeal, an order imposing
penalty shall be passed before the expiry of the financial year in which the
proceedings, in the course of which action for imposition of penalty has been
initiated, are completed, or within one year from the end of the financial year
in which the order of the FN1234[Principal Commissioner or Commissioner]
(Appeals) is received by the FN1235[Principal Chief Commissioner or Chief
Commissioner] or FN1236[Principal Commissioner or Commissioner], whichever is
later;]
(b) in a case, where the relevant assessment or other order is the subject-matter
of revision under Section 263 3851 [or Section 264], after the expiry of six
months from the end of the month in which such order of revision is passed;
(c) in any other case, after the expiry of the financial year in which the
proceedings, in the course of which action for the imposition of penalty has
been initiated, are completed, or six months from the end of the month in
which action for imposition of penalty is initiated, whichever period expires
later.
3852 [(1-A) In a case where the relevant assessment or other order is the subject
matter of an appeal to the FN1237[Principal Commissioner or Commissioner] (Appeals)

under Section 246 or Section 246-A or an appeal to the Appellate Tribunal under
Section 253 or an appeal to the High Court under Section 260-A or an appeal to the
Supreme Court under Section 261 or revision under Section 263 or Section 264 and an
order imposing or enhancing or reducing or cancelling penalty or dropping the
proceedings for the imposition of penalty is passed before the order of the FN1238
[Principal Commissioner or Commissioner] (Appeals) or the Appellate Tribunal or the
High Court of the Supreme Court is received by the FN1239[Principal Chief Commissioner
or Chief Commissioner] or the FN1240[Principal Commissioner or Commissioner] or the
order of revision under Section 263 or Section 264 is passed, an order imposing or
enhancing or reducing or cancelling penalty or dropping the proceedings for the
imposition of penalty may be passed on the basis of assessment as revised by giving
effect to such order of the FN1241[Principal Commissioner or Commissioner] (Appeals)
or, the Appellate Tribunal or the High Court, or the Supreme Court or order of revision
under Section 263 or Section 264:
Provided that no order of imposing or enhancing or reducing or cancelling penalty or
dropping the proceedings for the imposition of penalty shall be passed—
(a) unless the assessee has been heard, or had been given a reasonable
opportunity of being heard;
(b) after the expiry of six months from the end of the month in which the order
of the FN1242[Principal Commissioner or Commissioner] (Appeals) or the
Appellate Tribunal or the High Court or the Supreme Court is received by the
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
FN1243
[Principal Chief Commissioner or Chief Commissioner] or the FN1244
[Principal Commissioner or Commissioner] or the order of revision under
Section 263 or Section 264 is passed:
Provided further that the provisions of sub-section (2) of Section 274 shall apply in
respect of the order imposing or enhancing or reducing penalty under this sub-
section.]
amendment by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), shall apply
to and in relation to any action initiated for the imposition of penalty on or before the
31st day of March, 1989.
Explanation.—In computing the period of limitation for the purposes of this section,
—
(i) the time taken in giving an opportunity to the assessee to be reheard under
the proviso to Section 129;
(ii) any period during which the immunity granted under Section 245-H
remained in force; and
(iii) any period during which a proceeding under this Chapter for the levy of
penalty is stayed by an order or injunction of any court,
shall be excluded.
275-A. Contravention of order made under sub-section (3) of Section 132.—
Whoever contravenes any order referred to in 3861 [the second proviso to sub-section
(1) or sub-section (3) of Section 132 shall be punishable with rigorous imprisonment
which may extend to two years and shall also be liable to fine].
3862 [275-B. Failure to comply with the provisions of clause (ii-b) of sub-
section (1) of Section 132.— If a person who is required to afford the authorised
officer the necessary facility to inspect the books of account or other documents, as
required under clause (ii-b) of sub-section (1) of Section 132, fails to afford such
facility to the authorised officer, he shall be punishable with rigorous imprisonment for
a term which may extend to two years and shall also be liable to fine.]
276. Removal, concealment, transfer or delivery of property to thwart tax
recovery.— Whoever fraudulently removes, conceals, transfers or delivers to any
person any property or any interest therein, intending thereby to prevent that property
or interest therein from being taken in execution of a certificate under the provisions of
the Second Schedule shall be punishable with rigorous imprisonment for a term which
may extend to two years and shall also be liable to fine.
276-A. Failure to comply with the provisions of sub-sections (1) and (3) of
Section 178.— If a person,—
(i) fails to give the notice in accordance with sub-section (1) of Section 178; or
(ii) fails to set aside the amount as required by sub-section (3) of that section;
or
(iii) parts with any of the assets of the company or the properties in his hands in
contravention of the provisions of the aforesaid sub-section,
he shall be punishable with rigorous imprisonment for a term which may extend to two
years:
Provided that in the absence of special and adequate reasons to the contrary to be
recorded in the judgment of the court, such imprisonment shall not be for less than six
months.
276-AA.[Omitted]
276-AB. Failure to comply with the provisions of Sections 269-UC, 269-UE
and 269-UL.— Whoever fails to comply with the provisions of Section 269-UC or fails
to surrender or deliver possession of the property under sub-section (2) of Section 269
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-
-UE or contravenes the provisions of sub-section (2) of Section 269-UL shall be

punishable with rigorous imprisonment for a term which may extend to two years and
shall also be liable to fine:
Provided that in the absence of special and adequate reasons to the contrary to be
recorded in the judgment of the court, such imprisonment shall not be for less than six
months.
3863
[276-B. Failure to pay tax to the credit of Central Government under
Chapter XII-D or XVII-B.— If a person fails to pay to the credit of the Central
Government,—
(a) the tax deducted at source by him as required by or under the provisions of
Chapter XVII-B; or
(b) the tax payable by him, as required by or under,—
(i) sub-section (2) of Section 115-O; or
(ii) the second proviso to Section 194-B,
he shall be punishable with rigorous imprisonment for a term which shall not be less
than three months but which may extend to seven years and with fine.]
276-BB. Failure to pay the tax collected at source.— If a person fails to pay to
the credit of the Central Government, the tax collected by him as required under the
provisions of Section 206-C, he shall be punishable with rigorous imprisonment for a
term which shall not be less than three months but which may extend to seven years
and with fine.
276-C. Wilful attempt to evade tax, etc.— (1) If a person wilfully attempts in
any manner whatsoever to evade any tax, penalty or interest chargeable 3864 [or
imposable, or under reports his income,] under this Act, he shall, without prejudice to
any penalty that may be imposable on him under any other provision of this Act, be
punishable,—
(i) in a case where the 3865 [or tax on under-reported income] exceeds 3866 [twenty-
five hundred thousand rupees], with rigorous imprisonment for a term which
shall not be less than six months but which may extend to seven years and with
fine;
(ii) in any other case, with rigorous imprisonment for a term which shall not be less
than three months but which may extend to 3867 [two years] and with fine.
(2) If a person wilfully attempts in any manner whatsoever to evade the payment of
any tax, penalty, or interest under this Act, he shall, without prejudice to any penalty
that may be imposable on him under any other provision of this Act, be punishable
with rigorous imprisonment for a term which shall not be less than three months but
which may extend to 3868 [two years] and shall, in the discretion of the court, also be
liable to fine.
Explanation.—For the purposes of this section, a wilful attempt to evade any tax,
payable or interest chargeable or imposable under this Act or the payment thereof
shall include a case where any person—
(i) has in his possession or control any books of account or other documents (being
books of account or other documents relevant to any proceeding under this Act)
containing a false entry or statement; or
(ii) makes or causes to be made any false entry or statement in such books of
account or other documents; or
(iii) wilfully omits or causes to be omitted any relevant entry or statement in such
books of account or other documents; or
(iv) causes any other circumstance to exist which will have the effect of enabling
such person to evade any tax, penalty or interest chargeable or imposable under
this Act or the payment thereof.
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-
276-CC. Failure to furnish returns of income.— If a person wilfully fails to

furnish in due time 3869 [the return of fringe benefits which he is required to furnish
under sub-section (1) of Section 115-WD or by notice given under sub-section (2) of
the said section or Section 115-WH or] the return of income which he is required to
furnish under sub-section (1) of Section 139 or by notice given under clause (i) of sub
-section (1) of Section 142 or Section 148 3870 [or Section 153-A], he shall be
punishable,—
(i) in a case where the amount of tax, which would have been evaded if the failure
had not been discovered, exceeds 3871 [twenty-five hundred thousand rupees],
with rigorous imprisonment for a term which shall not be less than six months
but which may extend to seven years and with fine;
(ii) in any other case, with imprisonment for a term which shall not be less than
three months but which may extend to 3872 [two years] and with fine:
Provided that a person shall not be proceeded against under this section for
failure to furnish in due time the 3873 [return of fringe benefits under sub-section
(1) of Section 115-WD or] return of income under sub-section (1) of Section
139—
(i) for any assessment year commencing prior to the 1st day of April, 1975; or
(ii) for any assessment year commencing on or after the 1st day of April,
1975, if—
(a) the return is furnished by him before the expiry of the assessment year;
or
3874 [(b) the tax payable by such person, not being a company, on the total
income determined on regular assessment, as reduced by the advance

tax or self-assessment tax, if any, paid before the expiry of the
assessment year, and any tax deducted or collected at source, does not
exceed ten thousand rupees.]
3875 [276-CCC. Failure to furnish return of income in search cases.— If a person
wilfully fails to furnish in due time the return of total income which he is required to
furnish by notice given under clause (a) of Section 158-BC, he shall be punishable
with imprisonment for a term which shall not be less than three months but which
may extend to three years and with fine:
Provided that no person shall be punishable for any failure under this section in
respect of search initiated under Section 132 or books of account, other documents or
any assets requisitioned under Section 132-A, after the 30th day of June, 1995 but
before the 1st day of January, 1997.]
276-D. Failure to produce accounts and documents.— If a person wilfully fails
to produce, or cause to be produced, on or before the date specified in any notice
served on him under sub-section (1) of Section 142, such accounts and documents as
are referred to in the notice or wilfully fails to comply with a direction issued to him
under sub-section (2-A) of that section, he shall be punishable with rigorous
imprisonment for a term which may extend to one year 3876 [and with fine].
276-DD. Failure to comply with the provisions of Section 269-SS.—3877 [* * *]
276-E. Failure to comply with the provisions of Section 269-T.—3878 [* * *]
277. False statement in verification, etc.— If a person makes a statement in
any verification under this Act or under any rule made thereunder, or delivers an
account or statement which is false, and which he either knows or believes to be false,
or does not believe to be true, he shall be punishable,—
(i) in a case where the amount of tax, which would have been evaded if the
statement or account had been accepted as true, exceeds 3879 [twenty-five
hundred thousand rupees], with rigorous imprisonment for a term which shall
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
not be less than six months but which may extend to seven years and with fine;
3881
[277-A. Falsification of books of account or document, etc.— If any person
(hereafter in this section referred to as the first person) wilfully and with intent to
enable any other person (hereafter in this section referred to as the second person) to
evade any tax or interest or penalty chargeable and imposable under this Act, makes
or causes to be made any entry or statement which is false and which the first person
either knows to be false or does not believe to be true, in any books of account or
other document relevant to or useful in any proceedings against the first person or the
second person, under this Act, the first person shall be punishable with rigorous
imprisonment for a term which shall not be less than three months but which may
extend to 3882 [two years] and with fine.
Explanation.—For the purposes of establishing the charge under this section, it shall
not be necessary to prove that the second person has actually evaded any tax, penalty
or interest chargeable or imposable under this Act.]
278. Abetment of false return, etc.— If a person abets or induces in any manner
another person to make and deliver an account or a statement or declaration relating
to any income 3883 [or any fringe benefits] chargeable to tax which is false and which
he either knows to be false or does not believe to be true or to commit an offence
under sub-section (1) of Section 276-C he shall be punishable,—
(i) in a case where the amount of tax, penalty or interest which would have been
evaded, if the declaration, account or statement had been accepted as true, or
which is wilfully attempted to be evaded, exceeds 3884 [twenty-five hundred
thousand rupees], with rigorous imprisonment for a term which shall not be less
than six months but which may extend to seven years and with fine;
278-A. Punishment for second and subsequent offences.— If any person
convicted of an offence under Section 276-B or sub-section (1) of Section 276-C or
Section 276-CC or 3886 [* * *] Section 277 or Section 278 is again convicted of an
offence under any of the aforesaid provisions, he shall be punishable for the second
and for every subsequent offence with rigorous imprisonment for a term which shall
not be less than six months but which may extend to seven years and with fine.
278-AA. Punishment not to be imposed in certain cases.— Notwithstanding
anything contained in the provisions of Section 276-A, Section 276-AB or Section 276-
B no person shall be punishable for any failure referred to in the said provisions if he
proves that there was reasonable cause for such failure.
3887 [278-AB. Power of 3888[Principal Commissioner or Commissioner] to grant
immunity from prosecution.— (1) A person may make an application to the FN1245
[Principal Commissioner or Commissioner] for granting immunity from prosecution, if
he has made an application for settlement under Section 245-C and the proceedings
for settlement have abated under Section 245-HA.
(2) The application to the FN1246[Principal Commissioner or Commissioner] under sub
-section (1) shall not be made after institution of the prosecution proceedings after
abatement.
(3) The FN1247[Principal Commissioner or Commissioner] may, subject to such
conditions as he may think fit to impose, grant to the person immunity from
prosecution for any offence under this Act, if he is satisfied that the person has, after
the abatement, co-operated with the income tax authority in the proceedings before
him and has made a full and true disclosure of his income and the manner in which
such income has been derived:
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
Provided that where the application for settlement under Section 245-C had been
made before the 1st day of June, 2007, the FN1248[Principal Commissioner or
Commissioner] may grant 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.
(4) The immunity granted to a person under sub-section (3) shall stand withdrawn,
if such person fails to comply with any condition subject to which the immunity was
granted and thereupon the provisions of this Act shall apply as if such immunity had
not been granted.
(5) The immunity granted to a person under sub-section (3) may, at any time, be
withdrawn by the FN1249[Principal Commissioner or Commissioner], if he is satisfied that
such person had, in the course of any proceedings, after abatement, concealed any
particulars material to the assessment from the income tax authority or had given
false evidence, and thereupon such person may be tried for the offence with respect to
which the immunity was granted or for any other offence of which he appears to have
been guilty in connection with the proceedings.]
278-B. Offences by companies.— (1) Where an offence under this Act has been
committed by a company, every person who, at the time the offence was committed,
was in charge of, and was responsible to, the company for the conduct of the business
of the company as well as the company shall be deemed to be guilty of the offence
and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person
liable to any punishment if he proves that the offence was committed without his
knowledge or that he had exercised all due diligence to prevent the commission of
such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under
this Act has been committed by a company and it is proved that the offence has been
committed with the consent or connivance of, or is attributable to any neglect on the
part of, any director, manager, secretary or other officer of the company, such director,
manager, secretary or other officer shall also be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly.
3894 [(3) Where an offence under this Act has been committed by a person, being a
company, and the punishment for such offence is imprisonmnet and fine then, without
prejudice to the provisions contained in sub-section (1) or sub-section (2), such
company shall be punished with fine and every person, referred to in sub-section (1)
or the director, manager, secretary or other officer of the company referred to in sub-
section (2), shall be liable to be proceeded against and punished in accordance with
the provisions of this Act.]
Explanation.—For the purposes of this section—
(a) “company” means a body corporate, and includes—
(i) a firm; and
(ii) an association of persons or a body of individuals whether incorporated or
not; and
(b) “director”, in relation to—
(i) a firm, means a partner in the firm;
(ii) any association of persons or a body of individuals, means any member
controlling the affairs thereof.
278-C. Offences by Hindu undivided families.— (1) Where an offence under this
Act has been committed by a Hindu undivided family, the karta thereof shall be
deemed to be guilty of the offence and shall be liable to be proceeded against and
punished accordingly:
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-
Provided that nothing contained in this sub-section shall render the Karta liable to
any punishment if he proves that the offence was committed without his knowledge or
that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under
this Act has been committed by a Hindu undivided family and it is proved that the
offence has been committed with the consent or connivance of, or is attributable to
any neglect on the part of, any member of the Hindu undivided family, such member
shall also be deemed to be guilty of that offence and shall be liable to be proceeded
against and punished accordingly.
278-D. Presumption as to assets, books of account, etc., in certain cases.—
(1) Where during the course of any search made under Section 132, any money,
bullion, jewellery or other valuable article or thing (hereafter in this section referred to
as the assets) or any books of account or other documents has or have been found in
the possession or control of any person and such assets or books of account or other
documents are tendered by the prosecution in evidence against such person or against
such persons and the person referred to in Section 278 for an offence under this Act,
the provisions of sub-section (4-A) of Section 132 shall, so far as may be, apply in
relation to such assets or books of account or other documents.
(2) Where any assets or books of account or other documents taken into custody,
from the possession or control of any person, by the officer or authority referred to in
clause (a) or clause (b) or clause (c), as the case may be, of sub-section (1) of Section
132-A are delivered to the requisitioning officer under sub-section (2) of that section
and such assets, books of account or other documents are tendered by the prosecution
in evidence against such person or against such persons and the person referred to in
Section 278 for an offence under this Act, the provisions of sub-section (4-A) of
Section 132 shall, so far as may be, apply in relation to such assets or books of
account or other documents.
278-E. Presumption as to culpable mental state.— (1) In any prosecution for
any offence under this Act which requires a culpable mental state on the part of the
accused, the court shall presume the existence of such mental state but it shall be a
defence for the accused to prove the fact that he had no such mental state with
respect to the act charged as an offence in that prosecution.
Explanation.—In this sub-section, “culpable mental state” includes intention,
motive or knowledge of a fact or belief in, or reason to believe, a fact.
(2) For the purposes of this section, a fact is said to be proved only when the court
believes it to exist beyond reasonable doubt and not merely when its existence is
established by a preponderance of probability.
279. Prosecution to be at the instance of 3895[Principal Chief Commissioner
or Chief Commissioner] or 3896[Principal Commissioner or Commissioner].—3897
[(1) A person shall not be proceeded against for an offence under Section 275-A, 3898
[Section 275-B], Section 276, Section 276-A, Section 276-B, Section 276-BB, Section
276-C, Section 276-CC, Section 276-D, Section 277 3899 [, Section 277-A] or Section
278 except with the previous sanction of the FN1250[Principal Commissioner or
Commissioner] or Commissioner (Appeals) or the appropriate authority:
Provided that the FN1251[Principal Chief Commissioner or Chief Commissioner] or, as
the case may be, 3902 [Principal Director General or Director General] may issue such
instructions or directions to the aforesaid income tax authorities as he may deem fit
for institution of proceedings under this sub-section.
Explanation.—For the purposes of this section, “appropriate authority” shall have
the same meaning as in clause (c) of Section 269-UA.]
(1-A) A person shall not be proceeded against for an offence under Section 276-C
or Section 277 in relation to the assessment for an assessment year in respect of
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-
which the penalty imposed or imposable on him under 3903 [Section 270-A or] clause
(iii) of sub-section (1) of Section 271 has been reduced or waived by an order under
Section 273-A.
3904
[(2) Any offence under this Chapter may, either before or after the institution of
proceedings, be compounded by the FN1252[Principal Chief Commissioner or Chief
Commissioner] or FN1253[Principal Director General or Director General].]
(3) Where any proceeding has been taken against any person under sub-section
(1), any statement made or account or other document produced by such person
before any of the income tax authorities specified in clauses (a) to (g) of Section 116
shall not be inadmissible as evidence for the purpose of such proceedings merely on
the ground that such statement was made or such account or other document was
produced in the belief that the penalty imposable would be reduced or waived under
Section 273-A or that the offence in respect of which such proceeding was taken would
be compounded.
3907 [Explanation.—For the removal of doubts, it is hereby declared that the power of
the Board to issue orders, instructions or directions under this Act shall include and
shall be deemed always to have included the power to issue instructions or directions
(including instructions or directions to obtain the previous approval of the Board) to
other income tax authorities for the proper composition of offences under this section.]
279-A. Certain offences to be non-cognizable.— Notwithstanding anything
contained in the Code of Criminal Procedure, 1973 (2 of 1974), an offence punishable
under Section 276-B or Section 276-C or Section 276-CC or Section 277 or Section
278 shall be deemed to be non-cognizable within the meaning of that Code.
279-B. Proof of entries in records or documents.— Entries in the records or
other documents in the custody of an income tax authority shall be admitted in
evidence in any proceedings for the prosecution of any person for an offence under this
Chapter, and all such entries may be proved either by the production of the records or
other documents in the custody of the income tax authority containing such entries, or
by the production of a copy of the entries certified by the income tax authority having
custody of the records or other documents under its signature and stating that it is a
true copy of the original entries and that such original entries are contained in the
records or other documents in its custody.
280. Disclosure of particulars by public servants.— (1) If a public servant
furnishes any information or produces any document in contravention of the provisions
of sub-section (2) of Section 138, he shall be punishable with imprisonment which
may extend to six months, and shall also be liable to fine.
(2) No prosecution shall be instituted under this section expect with the previous
sanction of the Central Government.
3908
[280-A. Special Courts.— (1) The Central Government, in consultation with the
Chief Justice of the High Court, may, for trial of offences punishable under this
chapter, by notification, designate one or more courts of Magistrate of the first class as
Special Court for such area or areas or for such cases or class or group of cases as may
be specified in the notification.
Explanation.—In this sub-section, “High Court” means the High Court of the State
in which a Magistrate of first class designated as Special Court was functioning
immediately before such designation.
(2) While trying an offence under this Act, a Special Court shall also try an offence,
other than an offence referred to in sub-section (1), with which the accused may,
under the Code of Criminal Procedure, 1973 (2 of 1974), be charged at the same
trial.]
3909 [280-B. Offences triable by Special Court.— Notwithstanding anything
contained in the Code of Criminal Procedure, 1973 (2 of 1974),—
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-
(a) the offences punishable under this chapter shall be triable only by the Special
Court, if so designated, for the area or areas or for cases or class or group of
cases, as the case may be, in which the offence has been committed:
Provided that a court competent to try offences under Section 292,—
(i) which has been designated as a Special Court under this section, shall
continue to try the offences before it or offences arising under this Act after
such designation;
(ii) which has not been designated as a Special Court may continue to try
such offence pending before it till its disposal;
(b) a Special Court may, upon a complaint made by an authority authorised in this
behalf under this Act take cognizance of the offence for which the accused is
committed for trial.]
3910 [280-C. Trial of offences as summons case.— Notwithstanding anything
contained in the Code of Criminal Procedure, 1973 (2 of 1974), the Special Court, shall
try, an offence under this chapter punishable with imprisonment not exceeding two
years or with fine or with both, as a summons case, and the provisions of the Code of
Criminal Procedure, 1973 as applicable in the case of trial of summons case, shall
apply accordingly.]
3911
[280-D. Application of Code of Criminal Procedure, 1973 to proceedings
before Special Court.— (1) Save as otherwise provided in this Act, the provisions of
the Code of Criminal Procedure, 1973 (2 of 1974) (including the provisions as to bails
or bonds), shall apply to the proceedings before a Special Court and the person
conducting the prosecution before the Special Court, shall be deemed to be a Public
Prosecutor:
Provided that the Central Government may also appoint for any case or class or
group of cases a Special Public Prosecutor.
(2) A person shall not be qualified to be appointed as a Public Prosecutor or a
Special Public Prosecutor under this section unless he has been in practice as an
advocate for not less than seven years, requiring special knowledge of law.
(3) Every person appointed as a Public Prosecutor or a Special Public Prosecutor
under this section shall be deemed to be a Public Prosecutor within the meaning of
clause (u) of Section 2 of the Code of Criminal Procedure, 1973 (2 of 1974) and the
provisions of that Code shall have effect accordingly.]
281. Certain transfers to be void.— (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 Assessing Officer.
(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” mean land, building, machinery, plant,
shares, securities and fixed deposits in banks, to the extent to which any of the assets
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-
aforesaid does not form part of the stock-in-trade of the business of the assessee.
281-A. [Omitted]
281-B. Provisional attachment to protect revenue in certain cases.— (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
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 3912 [3913
[Principal Chief Commissioner or Chief Commissioner], 3914 [Principal Commissioner or
Commissioner], 3915 [Principal Director General or Director General] or 3916 [Principal
Director or Director]] by order in writing, attach provisionally any property belonging
to the assessee in the manner provided in the Second Schedule.
3917
[* * *]
(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):
Provided that the 3918 [FN1254[Principal Chief Commissioner or Chief Commissioner],
FN1255 [Principal Commissioner or Commissioner], FN1256 [Principal Director General or
Director General] or FN1257[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
3923 [two years or sixty days after the date of order of assessment or reassessment,
whichever is later]:
3924
[* * *]
FN1258 [* * *]
3926 [(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.
(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 142-A, 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.
(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.
(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.
(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).
(8) The amount realised by invoking the guarantee referred to in sub-section (3)
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-
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.
(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).]
3927 [282. Service of notice generally.— (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) 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 66-A of the Information Technology Act, 2000 (21 of 2000).]
3928 [282-A. Authentication of notices and other documents.— (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 3929 [signed and issued in paper form or
communicated in electronic form by that authority in accordance with such procedure
as may be prescribed].
(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) 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).]
282-B. Allotment of Document Identification Number.—3930 [* * *]
283. Service of notice when family is disrupted or firm, etc., is dissolved.—
(1) After a finding of total partition has been recorded by the 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) 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
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-
was a partner (not being a minor) or member of the association, as the case may be,
immediately before its dissolution.
284. Service of notice in the case of discontinued business.— 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 issued under that section.
3931 [285. Submission of statement by a non-resident having liaison office.—
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.]
3932 [285-A. Furnishing of information or documents by an Indian concern in
certain cases.— 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.]
285-B. Submission of statements by producers of cinematograph films.—
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 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 3933 [[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.
3934 [285-BA. Obligation to furnish statement of financial transaction or
reportable account.—(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
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-
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
3935
[(k) a prescribed reporting financial institution; or
(l) a person, other than those referred to in clauses (a) to (k), as may be
prescribed,]
(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) 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:
3936 [* * *]
(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, 3937 [the
provisions of this Act shall apply as if such person had furnished inaccurate
information in the statement].
(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) 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) 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).]
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-
5226
[285-BB. Annual information statement.—The prescribed income-tax
authority or the person authorised by such authority shall upload in the registered
account of the assessee an annual information statement in such form and manner,
within such time and alongwith such information, which is in the possession of an
income-tax authority, as may be prescribed.
Explanation.—For the purposes of this section, “registered account” means the
electronic filing account registered by the assessee in designated portal, that is, the
web portal designated as such by the prescribed income-tax authority or the person
authorised by such authority.]
3938
[286. Furnishing of report in respect of International group.— (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) 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 3939 [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) For the purposes of sub-section (2) 3940 [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) 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 3941
[within the period as may be prescribed], if the parent entity is resident of a country
or territory,—
3942 [(a) where the parent entity is not obligated to file the report of the nature
referred to in sub-section (2);]

3943 [(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,—
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-
(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.
(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 3944 [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 3945 [entity] referred to in
sub-section (4) in accordance with sub-section (1).
(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) 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) The provisions of this section shall be applied in accordance with such
guidelines and subject to such conditions, as may be prescribed.
(9) For the purposes of this section,—
(a) “accounting year” means,—
(i) a previous year, in a case where the parent entity 3946 [* * *] 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;
3947 [(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 90-A; 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
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-
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 3948 [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 3949 [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 (iii
-a) of Section 92-F;
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-
(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 3950 [sub-sections (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.]
287. Publication of information respecting assessees in certain cases.— (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 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.
(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 3951 [* * *] 3952
[Principal Commissioner or Commissioner] (Appeals) has expired without any 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.
287-A. Appearance by registered valuer in certain matters.— 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 (o-aa) of Section 2 of the Wealth Tax Act, 1957 (27 of 1957).
288. Appearance by authorised representative.— (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) 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
(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
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-
may prescribe for this purpose; or
(vi-a) 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 practising as such;
5227
[(viii) any other person as may be prescribed.]
3953 [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;
(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
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-
involving fraud and a period of ten years has not elapsed from the
date of such conviction.]
(3) [Omitted]
(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 clause (ii) of sub-section (1) of Section 271
3954 [clause (d) of sub-section (1) of Section 272-A or]; or
3955 [(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).]
(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;
(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 henceforth be disqualified to
represent an assessee under sub-section (1).
(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.
(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).
3956
[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;
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-
(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.]
288-A. Rounding off of income.— 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.
3957 [288-B. Rounding off amount payable and refund due.— 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.]
289. Receipt to be given.— A receipt shall be given for any money paid or
recovered under this Act.
290. Indemnity.— 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.
291. Power to tender immunity from prosecution.— (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 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) 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) 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.
292. Cognizance of offences.— No court inferior of that of a presidency
magistrate or a magistrate of the first class shall try any offence under this Act.
292-A. Section 360 of the Code of Criminal Procedure, 1973, and the
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-
Probation of Offenders Act, 1958, not to apply.— 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.
292-B. Return of income, etc., not to be invalid on certain grounds.— 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.
3958 [292-BB. Notice deemed to be valid in certain circumstances.— 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—
(a) not served upon him; or
(b) not served upon him in time; or
(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.]
3959
[292-C. Presumption as to assets books of account, etc.—3960 [(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 3961 [or survey under Section 133-A], it may, in any
proceeding under this Act, be presumed—
(i) that such books of account, other documents, money, bullion, jewellery or
other valuable article or thing belong or belongs to such person;
(ii) that the contents of such books of account and other documents are true;
and
(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.]
3962
[(2) Where any books of account, other documents or assets have been
delivered to the requisitioning officer in accordance with the provisions of Section 132-
A, 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
132-A, had been found in the possession or control of that person in the course of a
search under Section 132.]
3963
[292-CC. Authorisation and assessment in case of search or requisition.—
(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 132-A separately in the name of each person;
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(ii) where an authorisation under Section 132 has been issued or requisition
under Section 132-A 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) Notwithstanding that an authorisation under Section 132 has been issued or
requisition under Section 132-A 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.]
293. Bar of suits in civil courts.— No suit shall be brought in any civil court to
set aside or modify any proceeding taken or order made under this Act, and no
prosecution, suit or other proceeding shall lie against the Government or any officer of
the Government for anything in good faith done or intended to be done under this Act.
293-A. Power to make exemption, etc., in relation to participation in the
business of prospecting for, extraction, etc., of mineral oils.— (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 3964 [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) 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) Every notification issued under this section shall be laid before each House of
Parliament.
3965 [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.]
293-B. Power of Central Government or Board to condone delays in
obtaining approval.— 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.
3966
[293-C. Power to withdraw 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
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-
approval has not been specifically provided for in such provision, withdraw such
approval at any time:
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.]
294. Act to have effect pending legislative provision for charge of tax.— 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 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.
294-A. Power to make exemption, etc., in relation to certain Union
Territories.— 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.
295. Power to make rules.— (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) 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;
5228 [(iia) operations carried out in India by a non-resident;]
5229 [(iib) transactions or activities of a non-resident;]
(iii) an individual who is liable to be assessed under the provisions of sub-

(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;
(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;
(dd-a) the matters specified in sub-sections (2) and (3) of Section 44-AA;
(e) 3967 [* * *]
(3968 [e]) the conditions or limitations subject to which any payment of rent made
by an assessee shall be deducted under Section 80-GG;
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3969
[(ee) the matters specified in Chapter X-A;]
(ee-a) 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;
(ee-b) 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 139-A;
3970
[(ee-ba) 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 139-C;
(ee-bb) 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 139-D;]
(ee-c) the form of the report of audit and the particulars which such report shall
contain under sub-section (2-A) of Section 142;
3971
[(ee-d) 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 144-BA;]
(f) the manner in which and the period to which any such income as is referred
to in Section 180 may be allocated;
3972 [(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;
3973 [(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 90-A 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;
(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;
(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;
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(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;
(mm) the circumstances in which, the conditions subject to which and the
manner in which the 3974 [* * *] 3975 [Principal Commissioner or Commissioner]
(Appeals) may permit an appellant to produce evidence which he did not
produce or which he was not allowed to produce before the Assessing Officer;
(mm-a) the form in which the statement under Section 285-B shall be delivered
to the 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) 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 the Act.
(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.
296. Rules and certain notifications to be placed before Parliament.— The
Central Government shall cause every rule made under this Act 3976 [the rules of
procedure framed by the Settlement Commission under sub-section (7) of Section 245
-F, the Authority for Advance Rulings under Section 245-V and the Appellate Tribunal
under sub-section (5) of Section 255] and 3977 [every notification issued before the 1st
day of June, 2007 under sub-clause (iv) of clause (23-C) of Section 10] 3978 [and every
notification issued under sub-section (1-C) of Section 139 3979 [or third proviso to sub-
section (1) of Section 153-A or second proviso to sub-section (1) of Section 153-C]] 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.
297. Repeals and savings.— (1) The Indian Income Tax Act, 1922 (11 of 1922),
is hereby repealed.
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(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) subject to the provisions of clause (g) and clause (j) of this sub-section,
Section 23-A 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;
(f) any proceeding for the imposition of a penalty in respect of any assessment
completed before the 1st 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
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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 or Section 60-A 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:
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.
298. Power to remove difficulties.— (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) 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.
(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.
(4) Every order made under sub-section (3) shall be laid before each House of
Parliament.
———
2768.
Subs. by Act 20 of 2015, S. 36 (w.e.f. 1-6-2015).
2769.
2770. Ins. by Act 7 of 2017, S. 59(i) (w.e.f. 1-4-2017).
2771. Ins. by Act 7 of 2017, S. 59(ii) (w.e.f. 1-4-2017).
2772.
Ins. by Act 7 of 2017, S. 59(iii) (w.e.f. 1-4-2017).
2773. Ins. by Act 7 of 2017, S. 59(iv) (w.r.e.f. 1-6-2016).
2774. Ins. by Act 7 of 2017, S. 59(v) (w.r.e.f. 1-6-2016).
2775.
The word “153B,” omitted by Act 7 of 2017, S. 59(vi) (w.e.f. 1-4-2017).
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2776. Ins. by Finance Act, 2003, S. 65 (w.e.f. 1-6-2003).
2777. S. 153-A renumbered as sub-section (1) by Act 18 of 2008, Section 36 (w.r.e.f. 1-4-2008).
2778.
Ins. by Act 7 of 2017, S. 60(i) (w.e.f. 1-4-2017).
2782. Subs. for “referred to in this section” by Act 18 of 2008, Section 36(a) (w.r.e.f. 1-6-2003).
2783.
Ins. by Act 23 of 2012, Section 67 (w.e.f. 1-7-2012).
2784.
2785. Ins. by Act 7 of 2017, S. 60(iv) (w.e.f. 1-4-2017).
2786.
Ins. by Act 18 of 2008, Section 36(b) (w.r.e.f. 1-6-2003).
2787.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
2788. Subs. by Act 28 of 2016, S. 71 (w.e.f. 1-6-2016).
2789. Ins. by Act 7 of 2017, S. 61(a)(i) (w.e.f. 1-4-2017).
2790.
Subs. by Act 7 of 2017, S. 61(a)(ii) (w.e.f. 1-4-2017).
2791. Ins. by Act 7 of 2017, S. 61(b) (w.r.e.f. 1-6-2016).
2792. Ins. by Act 7 of 2017, S. 61(c ) (w.e.f. 1-4-2017).
2793.
Renumbered by Act 18 of 2005, Section 47 (w.r.e.f. 1-6-2003).
2794.Subs. for “Notwithstanding anything contained in Section 139, Section 147, Section 148, Section 149,
Section 151 and Section 153, where the Assessing Officer is satisfied that any money, bullion, jewellery or other
valuable article or thing or books of account or documents seized or requisitioned belongs or belong to a person
other than the person referred to in Section 153-A, then the books of account or documents or assets seized or
requisitioned shall be handed over to the Assessing Officer having jurisdiction over such other person” by Act 20
of 2015, S. 37 (w.e.f. 1-6-2015).
Subs. for “and that Assessing Officer shall proceed against each such other person and issue such other
2795.
person notice and assess or reassess income of such other person in accordance with the provisions of Section
153-A” by Act 25 of 2014, S. 55 (w.e.f. 1-10-2014).
2796. Ins. by Act 7 of 2017, S. 62(a) (w.e.f. 1-4-2017).
2797. Ins. by Act 18 of 2005, Section 47 (w.r.e.f. 1-6-2003).

2798.
Subs. for “Section 153-A” by Act 18 of 2008, Section 38 (w.r.e.f. 1-6-2003).
2799. Ins. by Act 23 of 2012, Section 69 (w.e.f. 1-7-2012).
2800. Ins. by Act 7 of 2017, S. 62(b) (w.e.f. 1-4-2017).
2803.
Subs. for “Section 153-A” by Act 18 of 2008, Section 39 (w.r.e.f. 1-6-2007).
2805. Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
2806. Subs. by Act 27 of 1999, S. 65 (w.e.f. 1-6-1999). Prior to that clause (b) read:
“(b) amend any intimation sent by it under sub-section (1) of Section 143, or enhance or reduce the
amount of refund granted by it under that sub-section.”
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2807. Ins. by Act 23 of 2012, Section 70(a) (w.e.f. 1-7-2012).
2809. Subs. for “by the Assessee” by Act 23 of 2012, Section 70(b) (w.e.f. 1-7-2012).

2811. Words “Deputy Commissioner (Appeals) or the” omitted by Act 21 of 1998, S. 65 (w.e.f. 1-10-1998).
2813. The proviso omitted by Act 32 of 1994 (w.e.f. 1-6-1994).
2814.
Subs. for “the assessee” by Act 23 of 2012, Section 70(c ) (w.e.f. 1-7-2012).
2815.
2816. Subs. for “the assessee” by Act 23 of 2012, Section 70(c ) (w.e.f. 1-7-2012).
2817.
Subs. for “the assessee” by Act 23 of 2012, Section 70(c ) (w.e.f. 1-7-2012).
2818.
Subs. by Act 23 of 2012, Section 70(d) (w.e.f. 1-7-2012).
2821.
Subs. by Act 23 of 2012, Section 70(e) (w.e.f. 1-7-2012).
2822. Ins. by Act 20 of 2015, S. 38(v) (w.e.f. 1-6-2015).
2823. Ins. by Act 20 of 2015, S. 38(v) (w.e.f. 1-6-2015).
2824.
Ins. by Act 14 of 2001, S. 65 (w.e.f. 1-6-2001).
2825. Subs. for “by the assessee” by Act 23 of 2012, Section 70(f) (w.e.f. 1-7-2012).
2826. Ins. by Act 20 of 2015, S. 38(vi) (w.e.f. 1-6-2015).
Subs. by Act 18 of 1992, S. 62 (w.e.f. 1-4-1993). Prior to substitution it read as follows: “Where in respect
2827.
of any completed assessment of a partner in a firm”.
2828. Ins. by Act 18 of 1992, S. 62 (w.e.f. 1-4-1993).

2829. Omitted by Act 4 of 1987, S. 61 (w.e.f. 1-4-1992).
2832.
Omitted by Act 4 of 1987, S. 61 (w.e.f. 1-4-1992).

2837.
2838. Ins. by Finance (No. 2) Act, 1991 (49 of 1991), S. 48 (w.e.f. 1-10-1991).
2839.
Ins. by Act 29 of 2006, Section 14.
2840.
Ins. by Act 27 of 1999, S. 66 (w.e.f 1-6-1999).
2841. Ins. by Act 20 of 2002, S. 62 (w.e.f. 1-6-2002).
2842. Subs. by Act 21 of 2006, Section 39 (w.e.f. 1-4-2007).
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-
2843.
Subs. for “Section 203” by Act 21 of 2006, Section 39 (w.e.f. 1-4-2007).
2845.
Ins. by Act 7 of 2017, S. 63 (w.e.f. 1-4-2018).
2846.
Subs. by Act 23 of 2012, Section 71 (w.e.f. 1-7-2012).
Subs. for “by the deductor under sub-section (1) of Section 143 or sub-section (1) of Section 200-A” by
2847.
Act 20 of 2015, S. 39 (w.e.f. 1-6-2015).

2848.Subs. by Act 18 of 1992, S. 63 (w.e.f. 1-4-1993). Prior to substitution it read as follows: “Whenever a
registered firm is assessed”.
2849.
Subs. by Act 20 of 2002, S. 63(a)(i) (w.e.f. 1-6-2002).
2850. Subs. by Act 20 of 2002, S. 63(a)(ii) (w.e.f. 1-6-2002).
2851. Subs. by Act 20 of 2002, S. 63(b) (w.e.f. 1-6-2002).
2852.
2853. Ins. by Act 20 of 2015, S. 40 (w.e.f. 1-6-2015).
2854. Subs. by Act 14 of 2001, S. 66 (w.e.f. 1-6-2001). Prior to substitution it read:
“(a) ‘block period’ means the [previous years relevant to ten assessment years preceding the previous
year in which the search was conducted under Section 132 or any requisition was made under Section
132-A, and includes, in the previous year in which such search was conducted or requisition made,
the period up to the date of the commencement of such search or, as the case may be, the date of
such requisition;”.
2855.
Ins. by Act 20 of 2002, S. 64 and deemed to have been inserted (w.e.f. 1-7-1995).
2856.
Ins. by Act 21 of 1998, S. 44 and deemed to have been inserted w.e.f. 1-7-1995.
2857. Subs. by Act 20 of 2002, S. 65(i) and deemed to have been substituted w.e.f. 1-7-1995.
Subs. for “have been concluded” by Act 20 of 2002, S. 65(ii) and deemed to have been substituted w.e.f. 1-
2858.
7-1995.
Subs. for “or Section 147” by Act 20 of 2002, S. 65(iii) and deemed to have been substituted w.e.f. 1-7-
2859.
1995.
Subs. by Act 20 of 2002, S. 65(iv) and deemed to have been substituted w.e.f. 1-7-1995. Prior to
2860.
substitution it read:
“(c ) where the due date for filing a return of income has expired but no return of income has been filed,
as nil;”.
2861. Subs. for “Chapter IV” by Act 20 of 2002, S. 65(v)(i) and deemed to have been substituted w.e.f. 1-7-1995.
2862. Ins. by Act 20 of 2002, S. 65(v)(ii) and deemed to have been inserted w.e.f. 1-7-1995.
2863.
Subs. by Act 33 of 1996, S. 46 and deemed to have been substituted w.e.f. 1-7-1995.
2864.
Ins. by Act 21 of 1998, S. 45 (w.e.f. 1-4-1999).
Subs. for “and Section 144” by Act 20 of 2002, S. 66(a) and deemed to have been substituted w.e.f. 1-7-
2866.
1995.
2867. Subs. by Act 20 of 2002, S. 66(b) (w.e.f. 1-6-2002). Prior to substitution it read:
“(d) the assets seized under Section 132 or requisitioned under Section 132-A shall be retained to the extent
necessary and the provisions of Section 132-B shall apply subject to such modifications as may be necessary
and the references to ‘regular assessment’ or ‘reassessment’ in Section 132-B shall be construed as references
to ‘block assessment’.”.
2868. Ins. by Act 20 of 2002, S. 67 (w.e.f. 1-6-2002).

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-
2870.
Subs. by Act 20 of 2002, S. 68 (w.e.f. 1-6-2002). Prior to substitution it read:
“Explanation 1.—In computing the period of limitation for the purposes of this section, the period
(i) during which the assessment proceeding is stayed by an order or injunction of any court, or
(ii) commencing from the day on which the Assessing Officer directs the assessee to get his accounts
audited under sub-section (2-A) of Section 142 and ending on the day on which the assessee is
required to furnish a report of such audit under that sub-section,
shall be excluded.”.
2871.
2872. Ins. by Act 21 of 1998, S. 46 and deemed to have been inserted w.e.f. 1-7-1995.
2873. Ins. by Act 14 of 1997, S. 6 (w.e.f. 1-1-1997).
2874.
Subs. for “one and one-fourth per cent” by Act 54 of 2003, Section 7 (w.e.f. 8-9-2003).
2877.
Ins. by Act 10 of 2000, S. 59 (w.e.f. 1-6-2000).
2879. Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
2880.
2883.
Ins. by Finance Act, 2003, S. 67 (w.e.f. 1-6-2003).
2885. Subs. for “maximum marginal rate” by Act 26 of 1997, S. 44 (w.e.f. 1-4-1998).
2886.
2889.
Ins. by Act 26 of 1997, S. 45 (w.r.e.f. 1-4-1976).
2891.
2892.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
2896. Ins. by Act 31 of 2016, S. 247 r/w Sch. III (w.e.f. the date to be notified).
2898. Ins. by Act 27 of 1999, S. 67 (w.e.f. 1-4-2000).
2899. Subs. for “during the previous year” by Act 27 of 1999, S. 68 (w.e.f. 1-4-2000).
2900. Sections 182 and 183 omitted by Finance Act, 1992 (18 of 1992), S. 65 (w.e.f. 1-4-1993).
2902. For sub-heading “B. Registration of Firms” and for Sections 184, 185 and 186 new Sections 184 and 185
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
Subs. by Finance Act, 1992 (18 of 1992), S. 66 (w.e.f. 1-4-1993).
2903. Omitted by Act 18 of 1992, S. 66 w.e.f 1-4-1993.
2904. Proviso omitted by Act 18 of 1992, S. 67 (w.e.f. 1-4-1993).
2907. Ins. by Act 18 of 1992, S. 69 (w.e.f. 1-4-1993).
2908.
Ins. by Act 20 of 2002, S. 70 (w.e.f. 1-6-2002).
2909. Subs. by Act 18 of 2008, Section 41 (w.r.e.f. 1-6-2003).
2911.
2912. Ins. by Act 14 of 2001, S. 68 (w.e.f. 1-6-2001).
2913. Ins. by Act 20 of 2015, S. 41 (w.e.f. 1-6-2015).
2914.
Ins. by Act 20 of 2002, S. 71(b) (w.e.f. 1-6-2002).
2915.
Ins. by Act 20 of 2015, S. 42 (w.e.f. 1-6-2015).
2916. Subs. for “thirty thousand rupees” by Act 28 of 2016, S. 72 (w.e.f. 1-6-2016).
2917.
Ins. by Finance Act, 2003, S. 72 (w.e.f. 1-6-2003).
2918.
The proviso omitted by Finance Act, 1992 (18 of 1992), S. 70 (w.e.f. 1-6-1992).
2919. The word “further” omitted by Finance Act, 1992 (18 of 1992), S. 70 (w.e.f. 1-6-1992).
2920.
Omitted by Act 26 of 1997, S. 46(a) (w.e.f. 1-6-1997). Before omission the said clause (iii-a) read:
“(iii-a) any interest payable on such securities of the Central Government or a State Government, to such
class of persons, and subject to such conditions, as the Central Government may, by notification in
the Official Gazette, specify in this behalf;”.
2921.
Subs. by Act 26 of 1997, S. 46(b) (w.e.f. 1-6-1997).
2923.
Ins. by Act 13 of 2018, S. 48 (w.e.f. 1-4-2018).

2925. Ins. by Act 20 of 2002, S. 72 (w.e.f. 1-6-2002).
2927. The brackets and figure “1” and Explanation 2 omitted by Act 18 of 1992, S. 70 (w.e.f. 1-6-1992).
2928. Omitted by Act 18 of 1992 (w.e.f. 1-6-1992).
2929.
Ins. by Act 49 of 1991, S. 51 (w.e.f. 1-10-1991).
“Provided that no such deduction shall be made in the case of a shareholder, being an individual, [* * *] of a
company in which the public is substantially interested, if—
(a) the dividend is paid by such company by an account payee cheque; and
(b) the amount of such dividend or, as the case may be, the aggregate of the amounts of such dividend
distributed or paid or likely to be distributed or paid during the financial year by the company to the
shareholder, does not exceed two thousand five hundred rupees:
Provided further that no such deduction shall be made in respect of any dividends referred to in Section
115-O.”.
2933.
Ins. by Act 20 of 2002, S. 74 (w.e.f. 1-6-2002). Earlier the Proviso was omitted by Act 18 of 1992, S. 71
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-
(w.e.f. 1-6-1992).
2936. Subs. for “ten thousand” by Act 7 of 2019, S. 9 (w.e.f. 1-4-2019).

The proviso inserted by Act 22 of 1995, S. 33 (w.e.f. 1-7-1995) substituted by Act 33 of 1996, S. 49
2939.
(w.e.f. 1-10-1996).
2940. Subs. for “for residential purposes” by Act 10 of 2000, S. 60(b) (w.e.f. 1-4-2000).
Words, figures and brackets “and which is for the time being approved by the Central Government for the
2941.
purpose of clause (viii) of sub-section (1) of Section 36” omitted by Act 27 of 1999, S. 69 (w.e.f. 1-4-2000).
2942. Omitted by Act 14 of 2001, S. 69 (w.e.f. 1-6-2001). Prior to omission it read:
“the provisions of this clause shall have effect as if for the words “two thousand five hundred rupees”, the
words “ten thousand rupees” had been substituted and”.
2944. Ins. by Act 13 of 2018, S. 49 (w.e.f. 1-4-2018).

2945. Clause (ii) omitted by Act 27 of 1999, S. 69 (w.e.f. 1-4-2000). Prior to omission clause (ii) read:
“(ii) to such income credited or paid before the 1st day of October, 1967;”.
2946. Subs. by Act 20 of 2015, S. 43(b) (w.e.f. 1-6-2015).
2947.
Ins. by Act 20 of 2015, S. 43(c ) (w.e.f. 1-6-2015).
2948.
Clause (vii) and (vii-a) Subs. for clauses (vii) by Act 22 of 1995, S. 33 (w.e.f. 1-7-1995).
2949. Subs. by Act 20 of 2015, S. 43(d) (w.e.f. 1-6-2015).
2953. Ins. by Act 25 of 2014, S. 56 (w.e.f. 1-10-2014).

2954. Ins. by Act 22 of 1995, S. 33 (w.e.f. 1-7-1995).
2955. Renumbered as “Explanation 1” by Act 18 of 2005, Section 48 (w.e.f. 1-6-2005).
2956.
Subs. for “excluding” by Act 20 of 2015, S. 43(e) (w.e.f. 1-6-2015).
2958. Omitted by Act 18 of 1992 (w.e.f. 1-6-1992).
2959.
Ins. by Act 14 of 2001, S. 70 (w.e.f. 1-6-2001).
2960.
Proviso omitted by Act 27 of 1999, S. 70 (w.e.f. 1-4-2000). Prior to omission it read:
“Provided that no deduction shall be made under this section from any payment made before the 1st day of
June, 1972 :”.
2961. Ins. by Act 26 of 1997, S. 48 (w.e.f. 1-6-1997).
2962. Word “further” omitted by Act 27 of 1999, S. 70 (w.e.f. 1-4-2000).

2963. Subs. for “five thousand rupees” by Act 28 of 2016, S. 73 (w.e.f. 1-6-2016).
2964.
Proviso omitted by Act 27 of 1999, S. 71 (w.e.f. 1-4-2000). Prior to omission it read:
“Provided that no deduction shall be made under this section from any payment made before the 1st day of
June, 1978.”.
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-
2966. Subs. for “twnety thousand rupees” by Act 14 of 2010, Section 37 (w.e.f. 1-7-2010).
2967. Subs. for “seventy-five thousand rupees” by Act 28 of 2016, S. 74 (w.e.f. 1-6-2016).
2968.
Subs. for “on furnishing of” by Act 20 of 2015, S. 44 (w.e.f. 1-6-2015).
2969. Subs. for “twenty thousand rupees” by Act 28 of 2016, S. 75 (w.e.f. 1-6-2016).
2970. Ins. by Act 25 of 2014, S. 57 (w.e.f. 1-10-2014).
2971.
Subs. for “one per cent” by Act 23 of 2019, S. 44 (w.e.f. 1-9-2019).
2972.
Ins. by Act 23 of 2012, Section 73(a) (w.e.f. 1-7-2012).
2973.
Subs. for “ten per cent” by Act 23 of 2012, Section 73(b) (w.e.f. 1-7-2012).
2974.
Sections 194-EE, 194-G and 194-H Ins. by Act 49 of 1991, Ss. 54 and 55 (w.e.f. 1-10-1991).
2975.
Subs. for “twenty per cent” by Act 28 of 2016, S. 77 (w.e.f. 1-6-2016).
2976.
Section 194-F Ins. by Act 12 of 1990, S. 40 (w.e.f. 1-4-1991).
2977.
Sections 194-EE, 194-G and 194-H Ins. by Act 49 of 1991, Ss. 54 and 55 (w.e.f. 1-10-1991).
2978. Section 194-G renumbered as Section “194-G (1)” by Act 18 of 1992, S. 73 (w.e.f. 1-6-1992).
2979.
Subs. for “one thousand rupees” by Act 28 of 2016, S. 78(i) (w.e.f. 1-6-2016).
2980.
Subs. for “ten per cent” by Act 28 of 2016, S. 78(ii) (w.e.f. 1-6-2016).
2981.Omitted by Finance Act, 2003, S. 76 (w.e.f. 1-6-2003). Prior to omission sub-section (2) read as
follows:
“(2) Where the Assessing Officer is satisfied that the total income of any person who is or has been stocking,
distributing, purchasing or selling lottery tickets justifies the deduction of income tax at any lower rate or no
deduction of income tax, as the case may be, the Assessing Officer shall, on an application made by such person
in this behalf, give to him such certificate as may be appropriate.”.
2982. Omitted by Finance Act, 2003, S. 76 (w.e.f. 1-6-2003). Prior to omission sub-section (3) read as
follows:
“(3) Where any such certificate is given, the person responsible for paying the income referred to in sub-
section (1) shall, until such certificate is cancelled by the Assessing Officer, deduct income tax at the rates
specified in such certificate or deduct no tax, as the case may be.”.
2983. Ins. by Act 14 of 2001, S. 71 (w.e.f. 1-6-2001).
2984.
Subs. for “ten per cent” by Act 28 of 2016, S. 79(i) (w.e.f. 1-6-2016).
2985.
Subs. for “five thousand rupees” by Act 28 of 2016, S. 79(ii) (w.e.f. 1-6-2016).
2988.
Ins. by Act 32 of 1994 (w.e.f. 1-6-1994).
2989. Subs. for “any person” by Finance Act, 2003, S. 77 (w.e.f. 1-6-2003).
Subs. for “deduct income tax thereon at the rate of twenty per cent” by Act 22 of 1995, S. 35, (w.e.f. 1-7-
2990.
1995).
2991.
2992. Subs. for “one hundred eighty thousand rupees” by Act 7 of 2019, S. 10 (w.e.f. 1-4-2019).
2993. Ins. by Act 20 of 2002, S. 77 (w.e.f. 1-6-2002).
2994.
Ins. by Act 20 of 2015, S. 45 (w.e.f. 1-6-2015).
2995. Subs. by Act 29 of 2006, Section 15.
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-
2996.
2997.
Ins. by Act 23 of 2019, S. 45 (w.e.f. 1-9-2019).
2998.
Ins. by Act 7 of 2017, S. 64 (w.e.f. 1-6-2017).
2999. Ins. by Act 7 of 2017, S. 65 (w.e.f. 1-4-2017).
3000.
Sections 194-J and 194-K Ins. by Act 22 of 1995, S. 36 (w.e.f. 1-7-1995).
3001. Ins. by Act 29 of 2006, Section 16.
3003.
3005. Subs. for “twenty thousand rupees” by Act 14 of 2010, Section 41 (w.e.f. 1-7-2010).
3007.
Subs. for “clause (b):” by Act 29 of 2006, Section 16.
3010.
Ins. by Act 20 of 2002, S. 78 (w.e.f. 1-6-2002).
3011. Ins. by Finance Act, 2003, S. 78(a) (w.e.f. 1-6-2003).
3012. Ins. by Act 7 of 2017, S. 66 (w.e.f. 1-6-2017).
3013.
Omitted by Finance Act, 2003, S. 78(b) (w.e.f. 1-6-2003). Prior to omission sub-section (2) read as
follows:
“(2) Where the Assessing Officer is satisfied that the total income of any person in receipt of the sum
referred to in sub-section (1) justifies the deduction of income tax at any lower rate or no deduction of income
tax, as the case may be, the Assessing Officer shall, on an application made by that person in this behalf, give
to him such certificate as may be appropriate.”.
3014.
Omitted by Finance Act, 2003, S. 78(b) (w.e.f. 1-6-2003). Prior to omission sub-section (3) read as
follows:
“(3) Where any such certificate is given, the person responsible for paying the sum referred to in sub-section
(1), shall, until such certificate is cancelled by the Assessing Officer, deduct income tax at the rates specified in
such certificate or deduct no tax, as the case may be.”.
3015.
3017.
3018.
3019.
Subs. for “two hundred thousand rupees” by Act 28 of 2016, S. 81 (w.e.f. 1-6-2016).
3020. Ins. by Act 7 of 2017, S. 67 (w.e.f. 1-4-2017).
3022.
Ins. by Act 25 of 2014, S. 58 (w.e.f. 1-10-2014).
3023. Subs. for “in clause (23-FC)” by Act 28 of 2016, S. 82(i) (w.e.f. 1-6-2016).
3025.
Subs. for “in clause (23-FC)” by Act 28 of 2016, S. 82(ii) (w.e.f. 1-6-2016).
3026. Subs. for “being a non-resident, not being a company” by Act 20 of 2015, S. 46(b) (w.e.f. 1-6-2015).
3028.
Ins. by Act 20 of 2015, S. 47 (w.e.f. 1-6-2015).
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-
Subs. for “deduct income-tax thereon at the rate of ten per cent” by Act 28 of 2016, S. 83 (w.e.f. 1-6-
3029.
2016).
3030. Ins. by Act 28 of 2016, S. 84 (w.e.f. 1-6-2016).
3031.
3032. Ins. by Act 25 of 2014, S. 59(A) (w.e.f. 1-10-2014).
3033. Ins. by Act 25 of 2014, S. 59(B)(a) (w.e.f. 1-10-2014).
3034.
Subs. by Act 25 of 2014, S. 59(B)(b) (w.e.f. 1-10-2014).
3035. Subs. for “1st day of July, 2017” by Act 7 of 2017, S. 68(a)(A) (w.e.f. 1-4-2018).
3036. Subs. for “1st day of July, 2017” by Act 7 of 2017, S. 68(a)(A) (w.e.f. 1-4-2018).
3037.
Subs. for “and” by Act 7 of 2017, S. 68(a)(B) (w.e.f. 1-4-2018).
3041.
Ins. by Act 23 of 2019, S. 46 (w.e.f. 1-9-2019).
3042. Corrected by Act 23 of 2019, dated 1-8-2019.
3044. Subs. for “any interest” by Act 23 of 2012, Section 77(a)(i) (w.e.f. 1-4-2012).
3045.
The words and brackets “(not being interest on securities)” omitted by Finance Act, 2003, S. 80(a)(i)
3046.
(w.e.f. 1-6-2003).
3047. The words “or dividends” omitted by Act 49 of 1991, S. 56 (w.e.f. 1-10-1991).
3049. Explanation renumbered as “Explanation-1” by Act 23 of 2012, Section 77(a)(ii) (w.r.e.f. 1-4-1962).
3050. Ins. by Act 23 of 2012, Section 77(a)(ii) (w.r.e.f. 1-4-1962).
Subs. for “(other than interest on securities and salary)” by Finance Act, 2003, S. 80(b) (w.e.f. 1-6-
3051.
2003).
Subs. for “to the Assessing Officer to determine, by general or special order” by Act 23 of 2019, S. 47(a)
3052.
(w.e.f. 1-11-2019).
3053. The proviso omitted by Act 49 of 1991, S. 56 (w.e.f. 1-10-1991).
3055. Ins. by Act 23 of 2012, Section 77(b) (w.e.f. 1-7-2012).
Subs. for “to the Assessing Officer to determine, by general or special order” by Act 23 of 2019, S. 47(b)
3056.
(w.e.f. 1-11-2019).
3057. Subs. for “Where, under an agreement” by Act 20 of 2002, S. 81 (w.e.f. 1-6-2002).
3060. Proviso omitted by Act 20 of 2002, S. 82 (w.e.f. 1-6-2002).

3061. Sub-section (3) and Section 196-B Ins. by Act 49 of 1991, Ss. 57 and 58 respectively (w.e.f. 1-10-1991).
3062. Subs. by Act 38 of 1993 (w.e.f. 1-6-1993).
3063. Section 196-C Ins. by Act 18 of 1992, S. 75 (w.e.f. 1-6-1992).
3064. Subs. by Act 38 of 1993 (w.e.f. 1-6-1993).
3065. Subs. for “shares” by Act 14 of 2001, S. 72 (w.e.f. 1-4-2002).
3066. Subs. for “shares” by Act 14 of 2001, S. 72 (w.e.f. 1-4-2002).

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3068. Proviso omitted by Act 20 of 2002, S. 83 (w.e.f. 1-6-2002). Prior to omission it read:
“Provided that no such deduction shall be made in respect of any dividends referred to in Section 115-O.”.
3069. Section 196-D Ins. by Act 38 of 1993 (w.e.f. 1-6-1993).
3072. The expression Subs. by Act 18 of 1992, S. 76 (w.e.f. 1-6-1992).

3074. Ins. by Act 38 of 1993, S. 28 (w.e.f. 1-6-1993).
3075.
Ins. by Finance Act, 2003, S. 84(b) (w.e.f. 1-6-2003).
3076.
3077. Ins. by Act 14 of 2001, S. 73 (w.e.f. 1-6-2001).
3078.
Ins. by Act 32 of 1994 (w.e.f. 1-6-1994).
3079.
3081. Ins. by Act 28 of 2016, S. 85 (w.e.f. 1-6-2016).
3082.
Subs. for “194-LBC” by Act 23 of 2019, S. 48 (w.e.f. 1-9-2019).
3083. Ins. by Act 22 of 1995, S. 38 (w.e.f. 1-7-1995).
3084. Number and letter “, 194-L” omitted by Finance Act, 2003, S. 84(b) (w.e.f. 1-6-2003).
3085.
Words “Section 193 or” omitted by Act 27 of 1999, S. 77(a) (w.e.f. 1-6-1999).
3086. Words “or Section 194-A”omitted by Act 18 of 1992, S. 77 (w.e.f. 1-6-1992).
3087. Ins. by Act 49 of 1991, S. 57 (w.e.f. 1-10-1991).
3088. Words “Section 193 or” omitted by Act 27 of 1999, S. 77(a) (w.e.f. 1-6-1999).
3089. Subs. for expression “or as the case may be, Section 194-A” by Act 49 of 1991, S. 57 (w.e.f. 1-10-1991).
3090.
Words “or Section 194-A”omitted by Act 18 of 1992, S. 77 (w.e.f. 1-6-1992).
3091.Subs. for the expression “his estimated total income of the previous year in which such income is to be
included in computing his total income will be less than the minimum liable to income tax” by Act 12 of 1990, S.
50 (w.e.f. 1-4-1990). This amendment is of consequential nature.
3093. Subs. for “Section 193 or Section 194-A” by Act 20 of 2015, S. 50(i) (w.e.f. 1-6-2015).
3096.
Ins. by Act 27 of 1999, S. 77(b)(ii) (w.e.f. 1-6-1999).
3097.
Subs. for “Section 193 or Section 194-A” by Act 20 of 2015, S. 50(i) (w.e.f. 1-6-2015).
3099.
Ins. by Act 28 of 2016, S. 86(a) (w.e.f. 1-6-2016).
3100. Ins. by Act 20 of 2002, S. 85 (w.e.f. 1-6-2002).
3102.
Subs. for “Section 193 or Section 194 or Section 194-A” by Act 20 of 2015, S. 50(ii) (w.e.f. 1-6-2015).
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-
3105.
Subs. for “sixty-five years” by Act 23 of 2012, Section 78(a) (w.e.f. 1-7-2012).
3106. Omitted by Act 22 of 2007, Section 58 (w.r.e.f. 1-4-2006).
3107. Subs. for “Section 193 or Section 194 or Section 194-A” by Act 20 of 2015, S. 50(ii) (w.e.f. 1-6-2015).
3108.
3110.
Ins. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).
3111.
Ins. by Act 33 of 2009, Section 63 (w.r.e.f. 1-4-2009).
3113. Subs. by Act 22 of 1992 (18 of 1992), S. 77 (w.e.f. 1-6-1992).
3114.
3115.
3117. Subs. by Act 22 of 1992 (18 of 1992), S. 77 (w.e.f. 1-6-1992).
3118.
3120. Ins. by Act 20 of 2002, S. 86 (w.e.f. 1-6-2002).
3121.
Ins. by Act 23 of 2019, S. 49 (w.e.f. 1-9-2019).
3122. Ins. by Act 27 of 1999, S. 78 (w.e.f. 1-6-1999).
3124.
Renumbered as sub-section (1) by Act 20 of 2002, S. 88 (w.e.f. 1-6-2002).
3126.
Ins. by Act 20 of 2002, S. 88 (w.e.f. 1-6-2002).
3127.
Ins. by Act 20 of 2015, S. 51 (w.e.f. 1-6-2015).
3130.
Ins. by Act 25 of 2014, S. 60 (w.e.f. 1-10-2014).
3132.
Ins. by Act 25 of 2014, S. 61 (w.e.f. 1-10-2014).
3133.
3135. Ins. by Act 23 of 2012, Section 79(A)(i)(a) (w.e.f. 1-7-2012).
3136.
Subs. for “resident” by Act 23 of 2019, S. 50(a) (w.e.f. 1-9-2019).
3137. Subs. for “resident” by Act 23 of 2019, S. 50(a) (w.e.f. 1-9-2019).
3138. Subs. for “resident” by Act 23 of 2019, S. 50(a) (w.e.f. 1-9-2019).
3139.
Subs. for“Provided that” by Act 23 of 2012, Section 79(A)(i)(b) (w.e.f. 1-7-2012).
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-
3141. Ins. by Act 23 of 2012, Section 79(A)(ii) (w.e.f. 1-7-2012).
3142.
Subs. for “resident” by Act 23 of 2019, S. 50(b) (w.e.f. 1-9-2019).
3143. Subs. for “resident” by Act 23 of 2019, S. 50(b) (w.e.f. 1-9-2019).
3144. Subs. for “resident” by Act 23 of 2019, S. 50(b) (w.e.f. 1-9-2019).
3147.
Ins. by Act 23 of 2012, Section 79(C) (w.e.f. 1-7-2012).
3148.
3149. Renumbered as sub-section (1) by Act 20 of 2002, S. 90 (w.e.f. 1-6-2002).
3150.
3151.
Ins. by Act 20 of 2002, S. 90 (w.e.f. 1-6-2002).
3153. Omitted by Act 14 of 2010, Section 43 (w.e.f. 1-4-2010).
3154.
3156. The word “quarterly” Inserted by Act 33 of 2009, Section 67 (w.r.e.f. 1-10-2009).
3157.
Ins. by Act 20 of 2015, S. 53 (w.e.f. 1-6-2015).
3161. Subs. for “authorised dealer” by Act 17 of 2013, Section 50(A) (w.r.e.f. 1-4-2013).
3162. Subs. by Act 17 of 2013, Section 4 (w.r.e.f 1-4-2013).
3163. Ins. by Act 7 of 2017, S. 71 (w.e.f. 1-4-2017).

3164.
3165. Subs. by Act 17 of 2013, Section 50(B) (w.r.e.f. 1-4-2013).
3166. Subs. by Act 17 of 2013, Section 4 (w.r.e.f 1-4-2013).

3168. Ins. by Act 26 of 1997, S. 52 (w.e.f. 1-4-1997).
3169. Subs. for “responsible for deducting tax” by Act 21 of 2006, Section 46 (w.e.f. 1-4-2006).
3170.
Sub-sections (2) and (3) substituted by Finance Act, 2003, S. 86 (w.e.f. 1-6-2003). Prior to substitution
3172.
sub-sections (2) & (3) read as follows:
“(2) Notwithstanding anything contained in any other law for the time being in force, a return filed on a
floppy, diskette, magnetic cartridge tape, CD-ROM or any other computer readable media as may be specified by
the Board (hereinafter referred to as the computer media) shall be deemed to be a return for the purposes of
this section and the rules made thereunder and shall be admissible in any proceedings thereunder, without
further proof of production of the original, as evidence of any contents of the original or of any fact stated
therein.
(3) A return filed under sub-section (2) shall fulfil the following conditions, namely:—
(a) while receiving returns on computer media, necessary checks by scanning the documents filed on
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-
computer media will be carried out and the media will be duly authenticated by the Assessing Officer;
and
(b) the Assessing Officer shall also take due care to preserve the computer media by duplicating,
transferring, mastering or storage without loss of data.”.
3177.
3178.
Omitted by Act 33 of 1996, S. 51 (w.e.f. 1-10-1996). Prior to omission S. 206-B read:
“Any person responsible for paying any dividend referred to in Section 194 shall prepare, and within thirty
days from the 31st day of March in each year, deliver or cause to be delivered to the Assessing Officer in the
prescribed form and verified in the prescribed manner, a return in writing showing
(a) the name and address of every person who has furnished to him a statement under the first proviso
to Section 194;
(b) the amount of the dividend paid or distributed during the financial year to each such person; and
(c ) such other particulars as may be prescribed.”

3181. Ins. by Act 23 of 2012, Section 81(a) (w.e.f. 1-7-2012)

3184. Ins. by Act 23 of 2012, Section 81(b) (w.e.f. 1-7-2012)

3187.
3189. Omitted by Act 7 of 2017, S. 72(a) (w.e.f. 1-4-2017).
3190. Omitted by Act 7 of 2017, S. 72(b) (w.e.f. 1-4-2017).
3192. The words “or sub-section (1-D)” omitted by Act 7 of 2017, S. 72(c ) (w.e.f. 1-4-2017).
3194.
The words “or sub-section (1-D)” omitted by Act 7 of 2017, S. 72(c ) (w.e.f. 1-4-2017).
3195. Subs. for “seven days” by Act 54 of 2003, Section 9 (w.e.f. 8-9-2003).
3197.
3198. Ins. by Act 20 of 2015, S. 54 (w.e.f. 1-6-2015).
3199.
3200.
Subs. by Act 18 of 2008, Section 48(a) (w.r.e.f. 1-4-2008).
3201. Subs. for “ten days from the date” by Act 54 of 2003, Section 9 (w.e.f. 8-9-2003).
The first proviso and in the second proviso, the word “further” omitted by Act 14 of 2010, Section 44
3203.
(w.e.f. 1-4-2010).
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-
The first proviso and in the second proviso, the word “further” omitted by Act 14 of 2010, Section 44
3204.
(w.e.f. 1-4-2010).
3206.
Subs. for “collecting tax” by Act 21 of 2006, Section 47 (w.e.f. 1-4-2006).
3209.
3210. Subs. for sub-section (5-B) and (5-C) by Act 23 of 2004, Section 50 (w.e.f. 1-4-2005).
3212.
Ins. by Act 23 of 2012, Section 81(f) (w.e.f. 1-7-2012)
The words “, other than a person referred to in sub-section (1-D),” omitted by Act 7 of 2017, S. 72(d)
3213.
(w.e.f. 1-4-2017).
3214. Subs. for “Provided that” by Act 23 of 2012, Section 81(f)(B) (w.e.f. 1-7-2012)
3215.
Subs. for “seller” by Act 21 of 2006, Section 47 (w.e.f. 1-4-2007).
3216. Subs. for “one and one-fourth per cent” by Act 54 of 2003, Section 9 (w.e.f. 8-9-2003).
3218.
Ins. by Act 23 of 2012, Section 81(g) (w.e.f. 1-7-2012)
The words “, other than a person referred to in sub-section (1-D),” omitted by Act 7 of 2017, S. 72(e)
3219.
(w.e.f. 1-4-2017).
3220. Subs. for “seller” by Act 21 of 2006, Section 47 (w.e.f. 1-4-2007).
3221.
3223.
3224.
3226. Ins. by Act 23 of 2012, Section 81(h) (w.e.f. 1-7-2012)
3227.
Ins. by Act 18 of 1992, S. 79 (w.e.f. 1-4-1992).
3228. Ins. by Act 23 of 2012, Section 81(i)(i) (w.e.f. 1-7-2012)
3229. Omitted by Act 7 of 2017, S. 72(f)(A)(I) (w.e.f. 1-4-2017).
3230.
Ins. by Act 7 of 2017, S. 72(f)(A)(II) (w.e.f. 1-4-2017).
3231. Omitted by Act 7 of 2017, S. 72(f)(B) (w.e.f. 1-4-2017).
3232.Subs. by Finance Act, 2003, S. 87(b)(B) (w.e.f. 1-6-2003). Prior to substitution clause (b) read as
follows:
“(b) ‘seller’ means the Central Government, a State Government or any local authority or corporation or
authority established by or under a Central, State or Provincial Act, or any company or firm or
cooperative society.”.
3233.
Subs. for “or sub section (1D) are sold or services referred to in sub-section (1-D) are provided” by Act 7 of
2017, S. 72(f)(C) (w.e.f. 1-4-2017).
3234.
Ins. by Act 20 of 2002, S. 91 (w.e.f. 1-6-2002).
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-
3236. Ins. by Act 20 of 2015, S. 55 (w.e.f. 1-6-2015).
3237.
Ins. by Act 7 of 2017, S. 73 (w.e.f. 1-4-2017).
3238. Renumbered as sub-section “(1)” by Act 23 of 2012, Section 82 (w.e.f. 1-4-2012).
3240.
Subs. for “five thousand rupees” by Act 33 of 2009, Section 71 (w.r.e.f. 1-4-2009).
Words “and who has not paid any advance tax under sub-section (1)” omitted by Act 20 of 2002, S. 92
3242.
(w.e.f. 1-6-2002).
3243.
Subs. for “an eligible assessee in respect of an eligible business referred to in Section 44-AD” by Act 7 of
3244.
2017, S. 74 (w.e.f. 1-4-2017).

3246.
Subs. for “one and one-fourth” by Act 54 of 2003, Section 10 (w.e.f. 8-9-2003).
3247. Ins. by Act 25 of 2014, S. 64(ii)(a) (w.e.f. 1-10-2014).
3248. Subs. for “Provided further” by Act 25 of 2014, S. 64(ii)(b) (w.e.f. 1-10-2014).

3251. Ins. by Act 28 of 2016, S. 90 (w.e.f. 1-6-2016).
3253. Ins. by Act 20 of 2015, S. 56 (w.e.f. 1-6-2015).

3254. Ins. by Act 10 of 2000, S. 62 (w.e.f. 1-6-2000).

3259. Subs. for “corresponding law from” by Act 23 of 2019, S. 52(a)(i) (w.e.f. 1-9-2019).
3260. Subs. for “any Tax Recovery Officer” by Act 23 of 2019, S. 52(a)(ii) (w.e.f. 1-9-2019).
3261. Subs. for “has property in a country outside India” by Act 23 of 2019, S. 52(b)(i) (w.e.f. 1-9-2019).
3262. Subs. for “forward to the Board” by Act 23 of 2019, S. 52(b)(ii) (w.e.f. 1-9-2019).
3263. Subs. by Finance Act, 2003, S. 88 (w.e.f. 1-6-2003). Prior to substitution sub-section (1) read as follows:
“(1) Subject to such exceptions as the Central Government may, by notification in the Official Gazette,
specify in this behalf, no person—
(a) who is not domiciled in India; or
(b) who is domiciled in India at the time of his departure, but—
(i) intends to leave India as an emigrant; or
(ii) intends to proceed to another country on a work permit with the object of taking up any
employment or other occupation in that country; or
(iii) in respect of whom circumstances exist which in the opinion of an income tax authority, render it
necessary for him to obtain a certificate under this section,
shall leave the territory of India, by land, sea or air unless he first obtains from such authority as may be
appointed by the Central Government in this behalf (hereinafter in this section referred to as the “competent
authority”) a certificate stating that he has no liabilities under this Act, the Excess Profits Tax Act, 1940 (15 of
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-
1940), the Business Profits Tax Act, 1947 (21 of 1947), the Indian Income Tax Act, 1922 (11 of 1922), the
Wealth Tax Act, 1957 (27 of 1957), the Expenditure Tax Act, 1957 (29 of 1957), or the Gift Tax Act, 1958 (18
of 1958), or that satisfactory arrangements have been made for the payment of all or any of such taxes which
are or may become payable by that person:
Provided that in the case of a person not domiciled in India the competent authority may, if it is satisfied
that such person intends to return to India, issue an exemption certificate either in respect of a single journey or
in respect of all journeys to be undertaken by that person within such period as may be specified in the
certificate.”.
3264.
3266. Section 230-A omitted by Act 14 of 2001, S. 77 (w.e.f. 1-6-2001). Prior to omission it read:
“230-A. Restrictions on registration of transfers of immovable property in certain cases.— (1)

Notwithstanding anything contained in any other law for the time being in force, where any document required to
be registered under the provisions of clause (a) to clause (e) of sub-section (1) of Section 17 of the Indian
Registration Act, 1908 (16 of 1908), purports to transfer, assign, limit or extinguish the right, title or interest of
any person to or in any property valued at more than five lakh rupees, no registering officer appointed under
that Act shall register any such document, unless the Assessing Officer certifies that—
(a) such person has either paid or made satisfactory provision for payment of all existing liabilities under
this Act, the Excess Profits Tax Act, 1940 (15 of 1940), the Business Profits Act, 1947 (21 of 1947),
the Indian Income Tax Act, 1922 (11 of 1922), the Wealth Tax Act, 1957 (27 of 1957), the
Expenditure Tax Act, 1957 (29 of 1957), the Gift Tax Act, 1958 (18 of 1958), the Super Profits Tax
Act, 1963 (14 of 1963), and the Companies (Profits) Surtax Act, 1964 (7 of 1964), or
(b) the registration of the document will not prejudicially affect the recovery of any existing liability under
any of the aforesaid Acts.
(2) The application for the certificate required under sub-section (1) shall be made by the person referred to
in that sub-section and shall be in such form and shall contain such particulars as may be prescribed.
(3) The provisions of sub-section (1) shall not apply in a case where the person referred to in that sub-
section is any such institution, association or body, or belongs to any such class or institutions, associations or
bodies, as the Board may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette.”.
3267.
Subs. for “one and one fourth” by Act 54 of 2003, Section 12 (w.e.f. 8-9-2003).
3268.
3269. Ins. by Act 23 of 2019, S. 53 (w.r.e.f. 1-4-2007).
3272.
Explanation 4 omitted by Act 14 of 2001, S. 78(a)(ii) and deemed to have been omitted w.e.f. 1-4-1989).
Prior to omission it read:’
“Explanation 4.—In this sub-section, “tax on the total income as determined under sub-section (1) of Section
143 or on regular assessment” shall, for the purposes of computing the interest payable under Section 140-A, be
deemed to be tax on total income as declared in the return.”.
3273. Ins. by Finance Act, 2003, S. 89(b)(i) (w.e.f. 1-6-2003).
3274. Subs. for “one and one fourth” by Act 54 of 2003, Section 12 (w.e.f. 8-9-2003).
3275. Ins. by Finance Act, 2003, S. 89(b)(ii) (w.e.f. 1-6-2003).
3276. Subs. for “one and one-fourth” by Act 54 of 2003, Section 13 (w.e.f. 8-9-2003).
3277. Subs. by Act 22 of 1995, S. 42 and deemed to have come to effect w.e.f. 1-4-1989.

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3283. Subs. by Act 20 of 2015, S. 57(ii) (w.e.f. 1-6-2015).
The words “or an order of the Settlement Commission under sub-section (4) of Section 245-D” omitted by
3284.
Act 20 of 2015, S. 57(iii) (w.e.f. 1-6-2015).

3286. Subs. by Act 28 of 2016, S. 91(i) (w.e.f. 1-6-2016).
Subs. for “an eligible assessee in respect of the eligible business referred to in Section 44-AD” by Act 7 of
3287.
2017, S. 75(i) (w.e.f. 1-4-2017).
Subs. for “an eligible assessee in respect of the eligible business referred to in Section 44-AD” by Act 7 of
3289.
2017, S. 75(ii) (w.e.f. 1-4-2017).

3290. Subs. for “Section 2” by Act 28 of 2016, S. 91(iii)(I) (w.e.f. 1-6-2016).
3291.
Ins. by Act 28 of 2016, S. 91(iii)(II) (w.e.f. 1-6-2016).
3292. Subs. for “first time,” by Act 7 of 2017, S. 75(iii)(A) (w.e.f. 1-4-2017).
3293. Ins. by Act 7 of 2017, S. 75(iii)(B) (w.e.f. 1-4-2017).
3294.
Subs. for “or clause (b)” by Act 28 of 2016, S. 91(iii)(III) (w.e.f. 1-6-2016).
3295. Ins. by Act 7 of 2017, S. 75(iii)(C) (w.e.f. 1-4-2017).
Subs. for the words “instalment of advance tax which is immediately due or where no such instalment is so
3296.
due” by Act 33 of 1996, S. 54 (w.e.f. 1-4-1997).

3297.
Ins. by Act 1 of 2001, S. 4 (w.e.f. 4-1-2001).
3298. Ins. by Act 4 of 2001, S. 7 (w.e.f. 3-2-2001).
3300.
3302. Subs. for “two-third” by Act 54 of 2003, Section 15 (w.e.f. 8-9-2003).
The Explanation renumbered as “Explanation-1” and Explanation 2 inserted by Act 23 of 2012, Section 88
3303.
(w.r.e.f. 1-6-2003).
The Explanation renumbered as “Explanation-1” and Explanation 2 inserted by Act 23 of 2012, Section 88
3304.
(w.r.e.f. 1-6-2003).
3305. Ins. by Act 7 of 2017, S. 76 (w.e.f. 1-4-2018).
3306.
Subs. for “in the prescribed form and verified in the prescribed manner” by Act 23 of 2019, S. 56(a) (w.e.f. 1
3307.
-9-2019).
3309.
S. 241 omitted by Act 14 of 2001, S. 81 (w.e.f. 1-6-2001). Prior to substitution it read:
“241. Power to withhold refund in certain cases.— Where refund of any amount becomes due to the
assessee as a result of an order under this Act or under the provisions of sub-section (1) of Section 143 after a
return has been made under Section 139 or in response to a notice under sub-section (1) of Section 142 and the
Assessing Officer is of the opinion, having regard to the fact that—
(i) a notice has been issued, or is likely to be issued, under sub-section (2) of Section 143 in respect of
the said return; or
(ii) the order is the subject-matter of an appeal or further proceeding; or
(iii) any other proceeding under this Act is pending,
that the grant of the refund is likely to adversely affect the revenue, the Assessing Officer may, with the
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-
previous approval of the Chief Commissioner or Commissioner, withhold the refund till such time as the Chief
Commissioner or Commissioner may determine.”.
3310. Ins. by Act 7 of 2017, S. 77 (w.e.f. 1-4-2017).
3311.
3313. Subs. by Act 28 of 2016, S. 92(A) (w.e.f. 1-6-2016).
3314.
Subs. for “two-third” by Act 54 of 2003, Section 16 (w.e.f. 8-9-2003).
3315. Ins. by Act 28 of 2016, S. 92(B) (w.e.f. 1-6-2016).
3317.
Ins. by Act 7 of 2017, S. 78(ii)(a) (w.e.f. 1-4-2017).
3318. Ins. by Act 28 of 2016, S. 92(C) (w.e.f. 1-6-2016).
3319. Ins. by Act 7 of 2017, S. 78(ii)(b) (w.e.f. 1-4-2017).
3320.
3323.
3326.
3328. Omitted by Act 25 of 2014, S. 65(A) (w.e.f. 1-10-2014).
3329.
Subs. by Act 20 of 2015, S. 58(A) (w.e.f. 1-6-2015).
3331. Subs. by Act 25 of 2014, S. 65(B)(b) (w.e.f. 1-10-2014).
3332.
3333. Subs. by Act 25 of 2014, S. 65(B)(c ) (w.e.f. 1-10-2014).
Subs. for “from the 1st day of the assessment year and concluded on the date on which the assessment is
3334.
made” by Act 20 of 2015, S. 58(B) (w.e.f. 1-6-2015).
Subs. for “two years from the end of the relevant assessment year” by Act 7 of 2017, S. 79 (w.e.f. 1-4-
3335.
2017).
3336.
3337. Ins. by Act 49 of 1991, S. 65 (w.e.f. 1-10-1991).
3338. Ins. by Act 49 of 1991, S. 65 (w.e.f. 1-10-1991).
3342. Ins. by Act 8 of 2011, Section 29(a) (w.e.f. 1-6-2011).

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3344. Subs. for “at any time during the previous year” by Act 23 of 2012, Section 90 (w.e.f. 1-7-2012).
3345. Subs. for “at any time during the previous year” by Act 23 of 2012, Section 90 (w.e.f. 1-7-2012).
3349. Sub-section (1-E) omitted by Act 20 of 2002, S. 94 (w.e.f. 1-6-2002). Prior to omission it read:
“(1-E) Where any books of account, other documents, money, bullion, jewellery or other valuable article or
thing belonging to an assessee are seized under Section 132, the assessee shall not be entitled to make an
application under sub-section (1) before the expiry of one hundred and twenty days from the date of the
seizure.”.
3350.
3352.
3353.
3355.
3356.
3359.

3367.
3368.

3371. Subs. for “fifteen per cent per annum” by Act 22 of 2007, Section 64 (w.e.f. 1-4-2008).
3373.
Omitted by Act 22 of 2007, Section 65 (w.e.f. 1-6-2008).
3376. Ins. by Act 20 of 2015, S. 60 (w.e.f. 1-6-2015).
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-
3379. Ins. by Act 20 of 2015, S. 61(A) (w.e.f. 1-6-2015).
3383. Subs. for “he shall not be entitled to apply” by Act 20 of 2015, S. 62(A) (w.e.f. 1-6-2015).
3384. Subs. for “shall not be subsequently entitled” by Act 20 of 2015, S. 62(B) (w.e.f. 1-6-2015).
3385. Ins. by Act 20 of 2015, S. 62(C) (w.e.f. 1-6-2015).
Clauses (a) & (b) Subs. by Act 10 of 2000, S. 63 (w.e.f. 1-6-2000). Prior to substitution clauses (a) & (b)
3386.
read:
“(a)’advance ruling’ means

(i) a determination by the Authority in relation to a transaction which has been undertakenor is
proposed to be undertaken by a non-resident applicant and such determination shall include the
determination of any question of law or of fact specified in the application;
(ii) a decision by the Authority in relation to an assessment which is pending before any of the Income
Tax authority or the Tribunal in case of an applicant who is a resident in India and such decision
shall include the decision on question of law or fact arising out of the orders of assessment in
respect of which an application has been made by a resident applicant;
(b) ‘applicant’ means any person who
(i) is a non-resident; or
(ii) is a resident falling within any such class or category of persons as the Central Government may,
by notification in the Official Gazette, specify in this behalf;
(iii) makes an application under sub-section (1) of Section 245-Q;”.
3387.
Ins. by Finance Act, 2003, S. 92(a)(i) and deemed to have been inserted w.e.f. 1-6-2000.
Subs. for “a” by Finance Act, 2003, S. 92(a)(ii) and deemed to have been substituted w.e.f. 1-6-
3388.
2000.
3389.
Ins. by Act 25 of 2014, S. 66(A)(I) (w.e.f. 1-10-2014).
3390. Ins. by Act 25 of 2014, S. 66(A)(II) (w.e.f. 1-10-2014).
3391. Ins. by Act 23 of 2012, Section 91(I) (w.e.f. 1-4-2013).
3392.
Existing sub-clause (iv) omitted by Act 17 of 2013, Section 53(i)(I) (w.r.e.f. 1-4-2013).
3393.
New sub-clause (iv) inserted by Act 17 of 2013, Section 53(i)(II) (w.e.f. 1-4-2015).
Ins. by Finance Act, 2003, S. 92(b) (w.e.f. the date on which the Finance Bill receives the assent of
3394.
the President).
3395.
3396. Subs. by Act 25 of 2014, S. 66(C) (w.e.f. 1-10-2014).
3397.
Ins. by Act 13 of 2018, S. 50(i) (w.e.f. 1-4-2018).
3398.
Ins. by Act 13 of 2018, S. 50(ii) (w.e.f. 1-4-2018).
3400. Ins. by Act 7 of 2017, S. 81(a)(i) (w.e.f. 1-4-2017).
3401.
Subs. by Act 7 of 2017, S. 81(a)(ii) (w.e.f. 1-4-2017).
3402.
3403.
Ins. by Act 7 of 2017, S. 81(a)(iii) (w.e.f. 1-4-2017).
3404.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
3405. Ins. by Act 13 of 2018, S. 50(iii) (w.e.f. 1-4-2018).
3406. Ins. by Act 7 of 2017, S. 174(a), dated 31-3-2017 (w.e.f. 26-5-2017).
3407.
Ins. by Act 7 of 2017, S. 82 (w.e.f. 1-4-2017).
The words “or under Chapter V of the Customs Act, 1962 (52 of 1962)” omitted by Act 13 of 2018, S. 51
3408.
(w.e.f. the date to be notified).

3409. Subs. for “two thousand five hundred rupees” by Act 23 of 2012, Section 92 (w.e.f. 1-7-2012).
3410.
3412. Subs. by Act 10 of 2000, S. 64 (w.e.f. 1-6-2000). Prior to substitution the first proviso read:
“Provided that the Authority shall not allow the application except in the case of a resident applicant where
the question raised in the application,
(a) is already pending in his case before any income tax authority, the Appellate Tribunal or any court;
(b) involves determination of fair market value of any property;
(c ) relates to a transaction which is designed prima facie for the avoidance of income tax:”.
3414.
3415. Omitted by Act 17 of 2013, Section 54(a) (w.r.e.f. 1-4-2013).
3417.
3419. Subs. for “245-R” by Act 23 of 2004, Section 52 (w.r.e.f. 1-10-1998).
3420.
3422.
3423.
3424. Ins. by Act 32 of 1994 (w.e.f. 1-6-1994).
3425. The expression Ins. by Act 18 of 1992, S. 83 (w.e.f. 1-4-1993).
3426.
The expression Ins. by Act 18 of 1992, S. 83 (w.e.f. 1-4-1993).
The words “Section 271-C, Section 271-D and Section 271-E” omitted by Act 12 of 1990, S. 41 (w.e.f. 1-4-
3427.
1990).
3433. Subs. by Act 32 of 1994 (w.e.f. 1-6-1994).

3434. Ins. by Act 14 of 1997, S. 8 (w.e.f. 1-1-1997).
3435. Ins. by Act 12 of 1990, S. 41 (w.e.f. 1-4-1990).
3436. Ins. by Act 14 of 1997, S. 8 (w.e.f. 1-1-1997).
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-
3437. Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
3444.
3445. Ins. by Act 21 of 1998, S. 49 (w.e.f. 1-10-1998).
3447.
Subs. for “Any assessee aggrieved” by Act 23 of 2012, Section 94(i) (w.e.f. 1-7-2012).
3451. Subs. by Act 23 of 2012, Section 94(ii)(I) (w.e.f. 1-7-2012).

3452.Subs. for “sub-section (1) of Section 200-A, where the assessee or the deductor” by Act 20 of 2015, S. 64
(b) (w.e.f. 1-6-2015).
3454. Subs. by Act 23 of 2012, Section 94(ii)(II) (w.e.f. 1-4-2013).

3455. Ins. by Act 17 of 2013, Section 55(i)(II) (w.e.f. 1-4-2016)
3456. Omitted by Act 17 of 2013, Section 55(i)(I) (w.r.e.f. 1-4-2013)
3457.
3458. Subs. by Act 23 of 2012, Section 94(iii) (w.e.f. 1-4-2013).
3459. Ins. by Act 17 of 2013, Section 55(ii)(II) (w.e.f. 1-4-2016)
3460. Omitted by Act 17 of 2013, Section 55(ii)(I) (w.r.e.f. 1-4-2013)
3462.
Subs. for “under Section 153-A” by Act 23 of 2012, Section 94(iv) (w.r.e.f. 1-10-2009).
3463. Subs. for “Dispute Resolution Panel” by Act 23 of 2012, Section 94(iv)(II) (w.e.f. 1-4-2013).
3464. Omitted by Act 17 of 2013, Section 55(iii)(I) (w.r.e.f. 1-4-2013)
3465. Ins. by Act 17 of 2013, Section 55(iii)(II) (w.e.f. 1-4-2016)
3466. Ins. by Act 23 of 2012, Section 94(v) (w.e.f. 1-7-2012).
3467.
Subs. for “of assessment or reassessment” by Act 23 of 2019, S. 57 (w.e.f. 1-9-2019).
3468. Ins. by Act 23 of 2012, Section 94(vi) (w.e.f. 1-4-2013).
3469. Omitted by Act 17 of 2013, Section 55(iv)(I) (w.r.e.f. 1-4-2013)

3470. Ins. by Act 17 of 2013, Section 55(iv)(II) (w.e.f. 1-4-2016)
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-
3474. Ins. by Act 23 of 2012, Section 94(vii) (w.e.f. 1-7-2012).
3475.
3477. Subs. for “Section 271-C” by Act 21 of 2006, Section 51 (w.e.f. 1-4-2007).

3481.
3482. Section 247 omitted by Act 18 of 1992, S. 84 (w.e.f. 1-4-1993).
3484.
3487.
Ins. by Act 27 of 1999, S. 83 (w.e.f. 1-6-1999).
3489. Subs. for “excluded, or” by Act 28 of 2016, S. 93(i) (w.e.f. 1-4-2017).
3490.
3491. Ins. by Act 10 of 2000, S. 67 (w.e.f. 1-6-2000).
Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by Act 21 of 1998, S. 50(b)
3492.
(w.e.f. 1-10-1998).
3493.
3494. Ibid.
3496.
Ibid.
3497.
3498. Ibid.
3499.
3500. Ibid.
3502.
Ibid.
3504. Ibid.
3505.
3506. Ibid.
3508.
Ibid.
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-

3510.
Ins. by Act 27 of 1999, S. 84 (w.e.f. 1-6-1999).
3511.
3512.
(w.e.f. 1-10-1998).
3514.
3516. Ibid.
3517.
3518. Ibid.
3520.
Omitted by Act 14 of 2001, S. 83 (w.e.f. 1-6-2001). Prior to omission it read:
“or he may set aside the assessment and refer the case back to the Assessing Officer for making a fresh
assessment in accordance with the directions given by the [* * *] Commissioner (Appeals) and after making
such further inquiry as may be necessary, the Assessing Officer shall thereupon proceed to make such fresh
assessment and determine, where necessary, the amount of tax payable on the basis of such fresh
assessment;”.
3521.
3522.
(w.e.f. 1-10-1998).
3524.
Ibid.
3525.
3526. Ibid.
3527.
3528. Subs. for “Central” by Act 21 of 1998, S. 51(a)(i) (w.e.f. 1-8-1998).
3529. Subs. for “I” by Act 21 of 1998, S. 51(a)(ii) (w.e.f. 1-8-1998).
3530.
3533. The words “the Senior Vice-President or” omitted by Act 28 of 2016, S. 94(a) (w.e.f. 1-6-2016).

3535. The words “Senior Vice-President or a” omitted by Act 28 of 2016, S. 94(c ) (w.e.f. 1-6-2016).
3536. Ins. by Act 7 of 2017, S. 174(b), dated 31-3-2017 (w.e.f. 26-5-2017).
3539. Ins. by Act 28 of 2016, S. 95(A)(i) (w.e.f. 1-4-2017).
3540. Ins. by Act 13 of 2018, S. 52 (w.e.f. 1-4-2018).

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-
3544. Ins. by Act 28 of 2016, S. 95(A)(ii) (w.e.f. 1-4-2017).
3545. Ins. by Act 20 of 2002, S. 98 (w.e.f. 1-6-2002).
3548.
Subs. for “Director under Section 272-A” by Act 33 of 2009, Section 73 (w.e.f. 1-10-2009).
3550. Subs. for “Section 147” by Act 23 of 2012, Section 95(A)(i) (w.e.f. 1-10-2009).
3551.
Ins. by Act 23 of 2012, Section 95(A)(ii) (w.e.f. 1-4-2013).
3552. Omitted by Act 17 of 2013, Section 57(a) (w.r.e.f. 1-4-2013).

3556. Ins. by Act 7 of 2017, S. 83 (w.e.f. 1-4-2017).

3560. Omitted by Act 28 of 2016, S. 95(B)(a) (w.e.f. 1-6-2016).
3561.
3562. Ins. by Act 22 of 1995, S. 45 (w.e.f. 1-7-1995).
3563.
Omitted by Act 28 of 2016, S. 95(B)(a) (w.e.f. 1-6-2016).
3564. Subs. by Act 28 of 2016, S. 95(B)(b) (w.e.f. 1-6-2016).

3565. Sub-section (6) Subs. by sub-sections (6) and (7) by Act 21 of 1998, S. 52(c ) (w.e.f. 1-10-1998).
3567. Subs. by Act 28 of 2016, S. 95(C) (w.r.e.f. 1-7-2012).
3568. Subs. for “four years from the date of the order” by Act 28 of 2016, S. 96(a) (w.e.f. 1-6-2016).
3569.
Ins. by Act 21 of 1998, S. 53 (w.e.f. 1-10-1998).
3571. Ins. by Act 10 of 2000, S. 68 (w.e.f. 1-6-2000).
3572. The words “or sub-section (2-A)” omitted by Act 28 of 2016, S. 96(b) (w.e.f. 1-6-2016).
3575. The words “Chief Commissioner or” omitted by Act 49 of 1991, S. 67 (w.e.f. 27-9-1991).

-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
3577. Subs. by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).
3578. Subs. for “fifteen lakh rupees” by Act 28 of 2016, S. 97 (w.e.f. 1-6-2016).
3579. Ins. by Act 21 of 1998, S. 56 (w.e.f. 1-10-1998).
3580. Omitted by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).
3581. Omitted by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).
3582. Subs. by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).
3583. Ins. by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).
3584.
Ins. by Act 27 of 1999, S. 87(a)(i) (w.e.f. 1-6-1999).
3585.
3587.
Subs. for the words “communicated to the appellant” by Act 27 of 1999, S. 87(a)(ii) (w.e.f. 1-6-1999).
3588.
3590. Omitted by Act 27 of 1999, S. 87(a)(iii) (w.e.f. 1-6-1999). Prior to omission clause (b) read:
“(b) accompanied by a fee of ten thousand rupees where such appeal is filed by an assessee;”
3592.
3594. Ins. by Act 21 of 1998, S. 59 (w.e.f. 1-10-1998).
3595.
3596. Renumbered by Act 20 of 2015, S. 67 (w.e.f. 1-6-2015).
3597.
3598.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
3601.
Ins. by Act 20 of 2015, S. 67 (w.e.f. 1-6-2015).
3604.
3607.
3610.
Subs. for “twenty-five rupees” by Act 14 of 2001, S. 85 (w.e.f. 1-6-2001).
3611. Ins. by Act 21 of 1998, S. 60 (w.e.f. 1-10-1998).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
3613.
3615.
3616.
Ins. by Act 10 of 2000, S. 69 (w.e.f. 1-6-2000).
The words “or an application” Ins. by Act 12 of 1990, S. 42 (w.e.f. 1-4-1990). Earlier these words were
3619.
omitted by Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), S. 102 (w.e.f. 1-4-1989).
3621. Omitted by Act 32 of 1994, S. 47(a) (w.e.f. 1-4-1995).
3622.
The word “Goa,” Omitted by Act 32 of 1994, S. 47(b) (w.e.f. 1-4-1995).
3625.
3628.
3630. Subs. for “bank account” by Act 23 of 2019, S. 58 (w.e.f. 1-9-2019).
3631.
Ins. by Act 7 of 2017, S. 84 (w.e.f. 1-4-2017).
3632. Subs. for “bank account” by Act 23 of 2019, S. 59 (w.e.f. 1-9-2019).
3633. Ins. by Act 23 of 2019, S. 60 (w.e.f. 1-11-2019).
3634.
Subs. by Act 20 of 2002, S. 99 (w.e.f. 1-6-2002). Prior to substitution it read:
269-T. Mode of repayment of certain deposits.— (1) No company (including a banking company),
cooperative society or firm shall repay to any person any deposit otherwise than by an account payee cheque or
account payee bank draft where the amount of the deposit, or where the amount of deposit is to be repaid
together with any interest, the aggregate of the amount of the deposit and such interest, is ten thousand
rupees or more:
Provided that where the repayment is by a banking company or cooperative bank, such repayment may also
be made by crediting the amount of such deposit to the account (if any) with such company or bank of the
person to whom such deposit has to be repaid:
Provided further that nothing in this sub-section shall apply to or in relation to the repayment of any
deposit on or after the date on which the Income Tax (Second Amendment) Act, 1981, receives the assent of
the President.
(2) No branch of a banking company or a cooperative bank and no other company or cooperative society and
no firm or other person shall repay any deposit made with it otherwise than by an account payee cheque or
account payee bank draft drawn in the name of the person who has made the deposit if—
(a) the amount of the deposit together with interest, if any, payable thereon, or
(b) the aggregate amount of the deposits held by such person with the branch of the banking company
or cooperative bank or, as the case may be, the other company or cooperative society or the firm,
either in his own name or jointly with any other person on the date of such repayment together with
the interest, if any, payable on such deposits,
Provided that where the repayment is by a branch of a banking company or cooperative bank, such
repayment may also be made by crediting the amount of such deposit to the savings bank account or the
current account (if any) with such branch of the person to whom such deposit has to be repaid:
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-
Provided further that nothing in this sub-section shall apply to or in relation to the repayment of any
deposit before the date on which the Income Tax (Second Amendment) Act, 1981, receives the assent of the
President.
(i) ‘banking company’ shall have the meaning assigned to it in clause (i) of the Explanation to Section 269
-SS;
(i-a) ‘cooperative bank’ shall have the meaning assigned to it in Part V of the Banking Regulation Act,
1949 (10 of 1949);
(ii) ‘deposit’ means any deposit of money which is repayable after notice or repayable after a period and,
in the case of a person other than a company, includes deposit of any nature.”.
3635.
Ins. by Act 20 of 2015, S. 69(A)(a) (w.e.f. 1-6-2015).
3636. Ins. by Act 20 of 2015, S. 69(A)(b) (w.e.f. 1-6-2015).
3637.
Ins. by Act 25 of 2014, S. 69 (w.e.f. 1-4-2015).
3638.
Subs. for “bank account” by Act 23 of 2019, S. 61 (w.e.f. 1-9-2019).
3640.
Ins. by Act 20 of 2015, S. 69(C) (w.e.f. 1-6-2015).
3641.
Ins. by Act 20 of 2015, S. 69(D) (w.e.f. 1-6-2015).
3642. Ins. by Finance Act, 2003, S. 94 and deemed to have been inserted w.e.f. 1-6-2002.
3643.
Ins. by Act 20 of 2015, S. 69(E) (w.e.f. 1-6-2015).
3644.
Ins. by Act 20 of 2015, S. 69(F) (w.e.f. 1-6-2015).
3646.
3647.
Subs. by Act 38 of 1993 (w.e.f. 1-6-1993).
3648. Ins. by Act 22 of 1995, S. 46 (w.e.f. 1-7-1995).
3649. Subs. for the words “The appropriate authority” by Act 38 of 1993 (w.e.f. 17-11-1992).
Omitted by Act 38 of 1993 with retrospective effect from 17-11-1992. Prior to omission it read as follows:
3650.
“and for reasons to be recorded in writing”.

3651. Ins. by Act 38 of 1993 (w.e.f. 1-6-1993).
3652.
Ins. by Act 22 of 1995, S. 47 (w.e.f. 1-7-1995).
3653. The words “Provided further” Subs. by the words “Provided also” by Act 38 of 1993 (w.e.f. 1-6-1993).
3654. Subs. by ibid (w.e.f. 1-6-1993).

3655. Ins. by ibid (w.e.f. 1-6-1993).
3656. Ins. by Act 38 of 1993 (w.r.e.f 17-11-1992).
Subs. by Act 38 of 1993, for the words “free from all encumbrances” with retrospective effect from 17-11-
3657.
1992.
3658. Ins. by ibid with retrospective effect from 17-11-1992.
3659. Ins. by ibid with retrospective effect from 17-11-1992.
3662. Ins. by Act 20 of 2002, S. 100 (w.e.f. 1-7-2002).
3663. Ins. by Act 28 of 2016, S. 98 (w.e.f. 1-4-2017).

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-
3664. Subs. for “no return of income has been furnished” by Act 23 of 2019, S. 62(A) (w.r.e.f. 1-4-2017).
3665. Subs. for “no return of income has been filed” by Act 23 of 2019, S. 62(B) (w.r.e.f. 1-4-2017).
3666. Subs. for “no return has been furnished” by Act 23 of 2019, S. 62(C) (w.r.e.f. 1-4-2017).
3667. Ins. by Act 28 of 2016, S. 99 (w.e.f. 1-4-2017).
3669.
3671.
3672.
3674.
3675.
Subs. for “in addition to any tax payable” by Act 20 of 2002, S. 101(b) (w.e.f. 1-4-2003).
Subs. for “a sum which shall not be less than one thousand rupees but which may extend to twenty-five
3676.
thousand rupees” by Act 14 of 2001, S. 86(a) (w.e.f. 1-6-2001).

3678.
Subs. for “in addition to any tax payable” by Act 20 of 2002, S. 101(c ) (w.e.f. 1-4-2003).
3681.
Words “Deputy Commissioner (Appeals) or the” omitted by Act 21 of 1998, S. 65 (w.e.f. 1-10-1998).
3683. Ins. by Act 20 of 2002, S. 101(d) (w.e.f. 1-6-2002).
3684.
The words “who has not previously been assessed under this Act” omitted by Act 20 of 2002, S. 101(e)
3685.
(w.e.f. 1-4-2003).
3687.
3690.
3693.
3694. Subs. for “international transaction” by Act 23 of 2012, Section 97 (w.e.f. 1-4-2013).
3696.
Ins. by Act 20 of 2002, S. 101(g) (w.e.f. 1-6-2002).
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-
3699.
3702.
Ins. by Act 28 of 2016, S. 100 (w.e.f. 1-4-2017).
3703. Ins. by Act 28 of 2016, S. 101 (w.e.f. 1-4-2017).
3704. Ibid.
3705.
Subs. for “a sum which shall not be less than two thousand rupees but which may extend to one hundred
3706.
thousand rupees” by Act 14 of 2001, S. 87 (w.e.f. 1-6-2001).

3707.
3708.
Renumbered as sub-section (1) by Act 28 of 2016, S. 102(a) (w.e.f. 1-4-2017).
3710.
Subs. for “international transaction” by Act 23 of 2012, Section 99 (w.e.f. 1-4-2013).
3711.
3713.
3714.
3716.
Subs. for “which shall not be less than thirty per cent but which shall not exceed ninety per cent” by Act 28
3717.
of 2016, S. 103(a) (w.e.f. 1-4-2017).

3721. Ins. by Act 22 of 1995, S. 48 (w.e.f. 1-7-1995).
3722.
Subs. for “one hundred thousand rupees” by Act 14 of 2010, Section 50 (w.e.f. 1-4-2011).
3723. Ins. by Act 14 of 2001, S. 89 (w.e.f. 1-4-2002).

3726. Sec. 271-D renumbered as Sec. 271-D(1) and sub-sec. (2) Ins. by Act 12 of 1990, S. 45 (w.e.f. 1-4-1990).
3727. Ins. by Act 20 of 2015, S. 71 (w.e.f. 1-6-2015).
3728.
Ins. by Act 7 of 2017, S. 85 (w.e.f. 1-4-2017).
3729. Ins. by Act 23 of 2019, S. 63 (w.e.f. 1-11-2019).
3730. Sec. 271-E renumbered as Sec. 271-E(1) and sub-sec. (2) Ins. by Act 12 of 1990, S. 46 (w.e.f. 1-4-1990).
3732. Ins. by Act 20 of 2015, S. 72 (w.e.f. 1-6-2015).
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-
“271-F. Penalty for failure to furnish return of income.— If a person who is required to furnish a return of his
income, as required under sub-section (1) of Section 139, fails to furnish such return before the end of the
relevant assessment year, he shall be liable to pay, by way of penalty, a sum of five thousand rupees:
Provided that a person who is required to furnish a return of his income, as required by the proviso to sub-
section (1) of Section 139, fails to furnish such return on or before the due date, he shall be liable to pay, by
way of penalty, a sum of five thousand rupees.”
3735. Ins. by Act 7 of 2017, S. 86 (w.e.f. 1-4-2018).
3737. Subs. for “annual information return” by Act 25 of 2014, S. 70(i) (w.e.f. 1-4-2015).
3738. Subs. for “an annual information return” by Act 25 of 2014, S. 70(ii) (w.e.f. 1-4-2015).
3739. Subs. for “return” by Act 25 of 2014, S. 70(iii) (w.e.f. 1-4-2015).
3740. Subs. for “one hundred rupees” by Act 13 of 2018, S. 53(a) (w.e.f. 1-4-2018).
3742. Subs. for “five hundred rupees” by Act 13 of 2018, S. 53(b) (w.e.f. 1-4-2018).

3744. Ins. by Act 25 of 2014, S. 71 (w.e.f. 1-4-2015).
3745. The words “clause (k) of” omitted by Act 23 of 2019, S. 64 (w.e.f. 1-9-2019).
3746. Ins. by Act 20 of 2015, S. 73 (w.e.f. 1-4-2016).

3748. Ins. by Act 14 of 2001, S. 91 (w.e.f. 1-4-2002).
3750. Ins. by Act 25 of 2014, S. 72 (w.e.f. 1-10-2014).
3753. Ins. by Act 20 of 2015, S. 74 (w.e.f. 1-4-2016).
3754. Ins. by Act 28 of 2016, S. 104 (w.e.f. 1-4-2017).

3756.
Subs. for “a person shall be liable to pay” by Act 25 of 2014, S. 73 (w.e.f. 1-10-2014).
3757. Ins. by Act 20 of 2015, S. 75 (w.e.f. 1-6-2015).
3758. Ins. by Act 7 of 2017, S. 87 (w.e.f. 1-4-2017).
3759. Ins. by Act 28 of 2016, S. 105(i)(b) (w.e.f. 1-4-2017).
Subs. for “a sum which shall not be less than five hundred rupees but which may extend to ten thousand
3760.
rupees” by Act 14 of 2001, S. 92(a) (w.e.f. 1-6-2001).

3761. Words “or Section 206-A or Section 206-B” omitted by Act 33 of 1996 (w.e.f. 1-10-1996).
3762. Ins. by Act 49 of 1991, S. 68 (w.e.f. 1-10-1991).
3763. Subs. by Act 20 of 2002, S. 103(b) (w.e.f. 1-4-2003). Prior to substitution clause (e) read as follows:
“(e) to furnish the return of income which he is required to furnish under sub-section(4-A) of Section 139
or to furnish it within the time allowed and in the manner required under that sub-section; or”.
3764. Ins. by Act 49 of 1991, S. 68 (w.e.f. 1-10-1991).
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-

3769. Subs. for “qurterly return” by Act 33 of 2009, Section 75 (w.e.f. 1-10-2009).
3770.
Subs. for the words “which shall not be less than one hundred rupees, but which may extend to two hundred
3771.
rupees” by Act 27 of 1999, S. 88 (w.e.f. 1-6-1999).

3772. Ins. by Act 49 of 1991, S. 68 (w.e.f. 1-10-1991).
3773. Ins. by Act 21 of 1998, S. 62 (w.e.f. 1-4-1999).
3774.
Subs. for “statements under sub-section (3) of Section 200 or the proviso to sub-section (3) of Section 206
3775.
-C” by Act 20 of 2015, S. 76(b) (w.e.f. 1-6-2015).

3777.
3780.
3781. Ins. by Act 20 of 2002, S. 104 (w.e.f. 1-6-2002).
3782. Subs. for “permanent account number” by Act 23 of 2019, S. 65(a)(i) (w.e.f. 1-9-2019).
3783.
3784.
Subs. for “ten thousand rupees” by Act 23 of 2019, S. 65(a)(ii) (w.e.f. 1-9-2019).
3785.
3786.
Subs. for “sub-section (2)” by Act 23 of 2019, S. 65(c ) (w.e.f. 1-9-2019).
3787. Subs. for “a sum which may extend to five thousand rupees” by Act 14 of 2001, S. 93 (w.e.f. 1-6-2001).
3789.
3790. Ins. by Act 20 of 2002, S. 105 (w.e.f. 1-6-2002).
3791.
3792.
3794. The words “Chief Commissioner or” omitted by Act 38 of 1993 (w.e.f. 1-6-1993).
3795.
3797. Ins. by Act 28 of 2016, S. 106(i)(a)(I) (w.e.f. 1-4-2017).
3798.
Ins. by Act 28 of 2016, S. 106(i)(a)(II) (w.e.f. 1-4-2017).
3799. Ins. by Act 28 of 2016, S. 106(i)(b) (w.e.f. 1-4-2017).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
3800.
Subs. by Act 38 of 1993 (w.e.f. 1-6-1993).
3801.
3802.
3804.
Ins. by Act 49 of 1991, S. 70 (w.e.f. 27-9-1991).
3805. The words “Chief Commissioner or” omitted by Act 38 of 1993 (w.e.f. 1-6-1993).
3807.
Subs. by Finance Act 38 of 1993 (w.e.f. 1-6-1993).
3810.
3812. Ins. by Act 32 of 1994 (w.e.f. 1-6-1994).
3813.
3816.
3820.
3822.
Ins. by Act 28 of 2016, S. 107 (w.e.f. 1-6-2016).

3824. Ins. by Act 14 of 2001, S. 94 (w.e.f. 1-4-2002).
3825. Ins. by Act 14 of 2001, S. 94 (w.e.f. 1-4-2002).
3826. Ins. by Act 22 of 1990 (12 of 1990), S. 50 (w.e.f. 1-4-1990).
3827. Subs. for “Section 271-C” by Act 21 of 2006, Section 55 (w.e.f. 1-4-2007).
3828. Ins. by Act 26 of 1997, S. 55 (w.e.f. 1-4-1997).

3831. Subs. for “Section 271-FB, Section 271-G” by Act 20 of 2015, S. 77(I) (w.e.f. 1-4-2016).
3832. Ins. by Act 28 of 2016, S. 108 (w.e.f. 1-4-2017).
3834. Ins. by Act 20 of 2015, S. 77(II) (w.e.f. 1-6-2015).
3835. Ins. by Act 7 of 2017, S. 88 (w.e.f. 1-4-2017).

-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
3837. Subs. for “sub-section (1) of Section 272-BB” by Act 21 of 2006, Section 55 (w.e.f. 1-6-2006).
3840. Ins. by Act 10 of 2000, S. 70 (w.e.f. 1-6-2000).
3841. Ins. by Act 10 of 2000, S. 70 (w.e.f. 1-6-2000).
3843.
3846.

3851. Ins. by Finance Act, 2003, S. 96(b) (w.e.f. 1-6-2003).

3856.
3858.

3861. Ins. by Act 12 of 1990, S. 47 (w.e.f. 1-4-1990).
3862. Ins. by Act 20 of 2002, S. 107 (w.e.f. 1-6-2002).
3864.
Subs. for “or inposable” by Act 28 of 2016, S. 109(a) (w.e.f. 1-4-2017).
3865. Subs. for “amount sought to be evaded” by Act 28 of 2016, S. 109(b) (w.e.f. 1-4-2017).
3867. Subs. for “three years” by Act 23 of 2012, Section 106 (w.e.f. 1-7-2012).
3871.
Subs. for “one hundred thousand rupees” by Act 23 of 2012, Section 107(a) (w.e.f. 1-7-2012).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
3872. Subs. for “three years” by Act 23 of 2012, Section 107(b) (w.e.f. 1-7-2012)
3874.
3875. Ins. by Act 14 of 1997, S. 10 (w.e.f 1-1-1997).
Subs. for “or with fine equal to a sum calculated at a rate which shall not be less than four rupees or more
3876.
than ten rupees for every day during which the default continues, or with both” by Act 25 of 2014, S. 74 (w.e.f.
1-10-2014).
3877.
3879. Subs. by Act 23 of 2012, Section 108(a) (w.e.f. 1-7-2012).
3880.
Subs. for “three years” by Act 23 of 2012, Section 108(b) (w.e.f. 1-7-2012).
3883.
3884. Subs. for “one hundred thousand rupees” by Act 23 of 2012, Section 110(a) (w.e.f. 1-7-2012).
3885. Subs. for “three years” by Act 23 of 2012, Section 110(b) (w.e.f. 1-7-2012).
3886.
3889.
3892.
3895.
3897. Sub-section (1) Subs. for the existing sub-section (1) by Act 49 of 1991, S. 70 (w.e.f. 1-10-1991).
3898.
Ins. by Act 20 of 2002, S. 108 (w.e.f. 1-6-2002).
3901.
3903. Ins. by Act 28 of 2016, S. 110 (w.e.f. 1-4-2017).
3904.
Subs. for existing sub-section (2) by Act 49 of 1991 (w.e.f. 1-4-1991).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
3907.
Ins. by Act 49 of 1991, S. 70 (w.r.e.f 1-4-1962).
3910.
3912. Subs. by Act 26 of 1997, S. 57 (w.r.e.f. 1-10-1996).
3913.
3914.
3915.
3916.
Subs. for “Director” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
3917.
Omitted by Act 28 of 2016, S. 111(a) (w.e.f. 1-6-2016).
3918.
Subs. by Act 26 of 1997, S. 57 (w.r.e.f. 1-10-1996).
3921.
3922. Subs. for “Director” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
3923. Subs. for “two years” by Act 25 of 2014, S. 75(i) (w.e.f. 1-10-2014).
3924.
Omitted by Act 25 of 2014, S. 75(ii) (w.e.f. 1-10-2014).
3925. Omitted by Act 25 of 2014, S. 75(ii) (w.e.f. 1-10-2014).
3929.
Subs. for “signed in manuscript by that authority” by Act 28 of 2016, S. 112 (w.e.f. 1-6-2016).
3932. Ins. by Act 20 of 2015, S. 78 (w.e.f. 1-4-2016).

3933. Subs. for “twenty-five thousand rupees” by Act 10 of 2000, S. 71 (w.e.f. 1-4-2001).
3935.
Subs. by Act 23 of 2019, S. 67(i) (w.e.f. 1-9-2019).
3936. Omitted by Act 23 of 2019, S. 67(ii) (w.e.f. 1-9-2019).
3937.Subs. for “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” by Act 23 of 2019, S. 67(iii) (w.e.f. 1-9-2019).
3938. Ins. by Act 28 of 2016, S. 113 (w.e.f. 1-4-2017).
3939.
Subs. 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” by Act 13 of 2018, S. 55(a) (w.r.e.f. 1-4-2017).
3941. Ins. by Act 13 of 2018, S. 55(c )(i) (w.r.e.f. 1-4-2017).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
3942. Ins by Act 13 of 2018, S. 55(c )(ii) (w.r.e.f. 1-4-2017).
3943. Relettered by Act 13 of 2018, S. 55(c )(ii) (w.r.e.f. 1-4-2017).
3944. Subs. for “in the said sub-section” by Act 13 of 2018, S. 55(d)(i) (w.r.e.f. 1-4-2017).
3945. Subs. for “entities” by Act 13 of 2018, S. 55(d)(ii) (w.r.e.f. 1-4-2017).
3946. The words “or alternate reporting entity” omitted by Act 23 of 2019, S. 68 (w.r.e.f. 1-4-2017).
3947. Subs. by Act 13 of 2018, S. 55(e)(A) (w.r.e.f. 1-4-2017).
3948. Subs. for “clause (i) or clause (ii)” by Act 13 of 2018, S. 55(e)(B) (w.r.e.f. 1-4-2017).
3949.
Subs. for “clause (i) or clause (ii)” by Act 13 of 2018, S. 55(e)(C) (w.r.e.f. 1-4-2017).
3950. Subs. for “sub-section (2)” by Act 13 of 2018, S. 55(e)(D) (w.r.e.f. 1-4-2017).
3951.
(w.e.f. 1-10-1998).
3953. Subs. by Act 20 of 2015, S. 79(i) (w.e.f. 1-6-2015).

3954. Ins. by Act 28 of 2016, S. 114 (w.e.f. 1-4-2017).
3955. Subs. by Act 20 of 2015, S. 79(ii) (w.e.f. 1-6-2015).
3956. Ins. by Act 20 of 2015, S. 79(iii) (w.e.f. 1-6-2015).

3957. Subs. by Act 29 of 2006, Section 19.

3960. Renumbered as sub-section (1) by Act 18 of 2008, Section 57 (w.r.e.f. 1-4-2008).
3962.
3964. Ins. by Act 22 of 1995, S. 49 (w.e.f. 1-4-1993).
3967.
3968. Clause (ee) renumbered as clause (e) by Act 17 of 2013, Section 59(i) (w.e.f. 1-4-2016).
3969. Ins. by Act 17 of 2013, Section 59(i) (w.e.f. 1-4-2016).
3971.
Ins. by Act 17 of 2013, Section 59(ii) (w.e.f. 1-4-2016).
3972.
3973. Ins. by Act 20 of 2015, S. 80 (w.e.f. 1-6-2015).
3974.
3976. Ins. by Act 32 of 1994 (w.e.f. 1-6-1994).
3977.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
5161.
Renumbered. by Act 12 of 2020, S. 71 (w.e.f. 1-4-2020).
5162. Ins. by Act 12 of 2020, S. 71 (w.e.f. 1-4-2020).
5163. Renumbered. by Act 12 of 2020, S. 72 (w.e.f. 1-4-2020).
5164.
Ins. by Act 12 of 2020, S. 72 (w.e.f. 1-4-2020).
5165. Ins. by Act 12 of 2020, S. 73 (w.e.f. 1-4-2020).
5166. Subs. for “in cash or before issuing any cheque or warrant” by Act 12 of 2020, S. 74(A) (w.e.f. 1-4-2020).
5167.
Subs. for “at the rates in force” by Act 12 of 2020, S. 74(B) (w.e.f. 1-4-2020).
5168. Subs. for “an account payee cheque” by Act 12 of 2020, S. 74(C)(i) (w.e.f. 1-4-2020).
5169. Subs. for “two thousand five hundred rupees” by Act 12 of 2020, S. 74(C)(ii) (w.e.f. 1-4-2020).
5170.
Omitted by Act 12 of 2020, S. 74(D) (w.e.f. 1-4-2020). Prior to omission it read as:
“Provided also that no such deduction shall be made in respect of any dividends referred to in Section
115-O.”
Subs. for “the monetary limits specified under clause (a) or clause (b) of Section 44-AB” by Act 12 of 2020,
5171.
S. 75(I) (w.e.f. 1-4-2020).

5172.
Omitted by Act 12 of 2020, S. 75(II)(A) (w.e.f. 1-4-2020). Prior to omission it read as:
“Explanation.— For the purposes of this clause, “senior citizen” means an individual resident in India who
is of the age of sixty years or more at any time during the relevant previous year;”
5173. Ins. by Act 12 of 2020, S. 75(II)(B) (w.e.f. 1-4-2020).
5174.
Ins. by Act 12 of 2020, S. 75(II)(C) (w.e.f. 1-4-2020).
5175. Ins. by Act 12 of 2020, S. 75(II)(D) (w.e.f. 1-4-2020).
5176. Ins. by Act 12 of 2020, S. 75(III) (w.e.f. 1-4-2020).
Subs. for “is liable to audit of accounts under clause (a) or clause (b) of Section 44-AB” by Act 12 of 2020,
5177.
S. 76(I) (w.e.f. 1-4-2020).

5178. Subs. by Act 12 of 2020, S. 76(II)(i) (w.e.f. 1-4-2020). Prior to substitution it read as:
“(e) manufacturing or supplying a product according to the requirement or specification of a customer by

using material purchased from such customer,”
5179.
Ins. by Act 12 of 2020, S. 76(II)(ii) (w.e.f. 1-4-2020).
5180.
S. 77 (w.e.f. 1-4-2020).
5181.
S. 78 (w.e.f. 1-4-2020).
5182.
Subs. for “ten per cent of such sum” by Act 12 of 2020, S. 79(a) (w.e.f. 1-4-2020).
5183.
S. 79(b) (w.e.f. 1-4-2020).

5184.
Ins. by Act 12 of 2020, S. 80 (w.e.f. 1-4-2020).
5185.
The words “sub-clause (a) of” omitted by Act 12 of 2020, S. 81(a) (w.e.f. 1-4-2020).
5186. The words “sub-clause (a) of” omitted by Act 12 of 2020, S. 81(a) (w.e.f. 1-4-2020).
5187. Subs. for “five per cent” by Act 12 of 2020, S. 81(b) (w.e.f. 1-4-2020).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
5188.
Ins. by Act 12 of 2020, S. 81(c ) (w.e.f. 1-4-2020).
5190.
Subs. for “2020” by Act 12 of 2020, S. 82(ii)(a) (w.e.f. 1-4-2020).
5191.
Subs. for “2020” by Act 12 of 2020, S. 82(ii)(a) (w.e.f. 1-4-2020).
5192. Subs. for “2020” by Act 12 of 2020, S. 82(ii)(b) (w.e.f. 1-4-2020).
5193. Ins. by Act 12 of 2020, S. 82(ii)(c ) (w.e.f. 1-4-2020).
5194.
5195. Subs. by Act 12 of 2020, S. 83(i) (w.e.f. 1-4-2020). Prior to substitution it read as:
“(2) The income by way of interest referred to in sub-section (1) shall be the interest payable on or after
the 1st day of June, 2013 but before the 1st day of July, 2020 in respect of investment made by the payee
in—
(i) a rupee denominated bond of an Indian company; or
(ii) a Government security:
Provided that the rate of interest in respect of bond referred to in clause (i) shall not exceed the rate as
may be notified by the Central Government in this behalf.”

5198. Ins. by Act 12 of 2020, S. 85 (w.e.f. 1-10-2020).
5199. Omitted by Act 12 of 2020, S. 86 (w.e.f. 1-4-2020). Prior to omission it read as:
“Provided further that no such deduction shall be made in respect of any dividends referred to in Section
115-O.”
5200. Subs. for “of the Unit Trust of India” by Act 12 of 2020, S. 87(a) (w.e.f. 1-4-2020).
Subs. for “in cash or by the issue of a cheque or draft or by any other mode” by Act 12 of 2020, S. 87(b)
5201.
(w.e.f. 1-4-2020).
5202. Omitted by Act 12 of 2020, S. 87(c ) (w.e.f. 1-4-2020). Prior to omission it read as:
“Provided that no deduction shall be made under this section from any such income credited or paid on or
after the 1st day of April, 2003.”
Subs. for “in cash or by the issue of a cheque or draft or by any other mode” by Act 12 of 2020, S. 88(a)
5203.
(w.e.f. 1-4-2020).
5204. Omitted by Act 12 of 2020, S. 88(b) (w.e.f. 1-4-2020). Prior to omission it read as:
“Provided that no such deduction shall be made in respect of any dividends referred to in Section 115-O.”
Subs. for “in cash or by issue of a cheque or draft or by any other mode” by Act 12 of 2020, S. 89(a) (w.e.f.
5205.
1-4-2020).
5206. Omitted by Act 12 of 2020, S. 89(b) (w.e.f. 1-4-2020). Prior to omission it read as:
“Provided that no such deduction shall be made in respect of any dividends referred to in Section 115-O.”
5207. Subs. for “194-M” by Act 12 of 2020, S. 90 (w.e.f. 1-4-2020).
5208.
Subs. by Act 12 of 2020, S. 91 (w.e.f. 1-4-2020). Prior to substitution it read as:
“(1-F) Notwithstanding anything contained in this chapter, no deduction of tax shall be made from such
specified payment to such institution, association or body or class of institutions, associations or bodies as
may be notified by the Central Government in the Official Gazette, in this behalf.”
5209.
Omitted by Act 12 of 2020, S. 92 (w.e.f. 1-6-2020). Prior to omission it read as:
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-
“203-AA. Furnishing of statement of tax deducted.— The prescribed income tax authority or the person
authorised by such authority referred to in sub-section (3) of Section 200, shall, within the prescribed time
after the end of each financial year beginning on or after the 1st day of April, 2008 prepare and deliver to
every person from who income the tax has been deducted or in respect of whose income the tax has been
paid a statement in the prescribed form specifying the amount of tax deducted or paid and such other
particulars as may be prescribed.”
5210. Ins. by Act 12 of 2020, S. 93 (w.e.f. 1-4-2020).
5211.
Ins. by Act 12 of 2020, S. 94 (w.e.f. 1-4-2020).
5212. Ins. by Act 12 of 2020, S. 95(I) (w.e.f. 1-10-2020).
5213. Subs. for “sub-section (1) or sub-section (1-C)” by Act 12 of 2020, S. 95(II) (w.e.f. 1-10-2020).
5214. Subs. for “sub-section (1) or sub-section (1-C)” by Act 12 of 2020, S. 95(III) (w.e.f. 1-10-2020).
Subs. for “in accordance with the provisions of this section” by Act 12 of 2020, S. 95(IV) (w.e.f. 1-10-
5215.
2020).
5216. Subs. for “means” by Act 12 of 2020, S. 95(V)(i) (w.e.f. 1-10-2020).
5217.
S. 95(V)(ii) (w.e.f. 1-10-2020).

5218.
Ins. by Act 12 of 2020, S. 96 (w.e.f. 1-6-2020).
5219. Ins. by Act 12 of 2020, S. 97 (w.e.f. 1-4-2020).
5220. Subs. for “under Section 12-AA” by Act 12 of 2020, S. 98 (w.e.f. 1-6-2020).
5221.
5222. Subs. by Act 12 of 2020, S. 99(b) (w.e.f. 1-4-2020). Prior to substitution it read as:
“Provided further that where such appeal is not so disposed of within the said period of stay as specified
in the order of stay, the Appellate Tribunal may, on an application made in this behalf by the assessee and
on being satisfied that the delay in disposing of the appeal is not attributable to the assessee, extend the
period of stay, or pass an order of stay for a further period or periods as it thinks fit; so, however, that the
aggregate of the period originally allowed and the period or periods so extended or allowed shall not, in any
case, exceed three hundred and sixty-five days and the Appellate Tribunal shall dispose of the appeal within
the period or periods of stay so extended or allowed:”
5223. Ins. by Act 12 of 2020, S. 100 (w.e.f. 1-4-2020).
5224. Ins. by Act 12 of 2020, S. 101 (w.e.f. 1-6-2020).
5225.
Ins. by Act 12 of 2020, S. 102 (w.e.f. 1-4-2020).
5226.
Ins. by Act 12 of 2020, S. 103 (w.e.f. 1-6-2020).
5227. Ins. by Act 12 of 2020, S. 104 (w.e.f. 1-4-2020).
Disclaimer: While every effort is made to avoid any mistake or omission, this casenote/ headnote/ judgment/ act/ rule/ regulation/ circular/
notification is being circulated on the condition and understanding that the publisher would not be liable in any manner by reason of any mistake
or omission or for any action taken or omitted to be taken or advice rendered or accepted on the basis of this casenote/ headnote/ judgment/ act/
rule/ regulation/ circular/ notification. All disputes will be subject exclusively to jurisdiction of courts, tribunals and forums at Lucknow only. The
authenticity of this text must be verified from the original source.

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SCC Online Web Edition, Copyright © 2020

Page 1 Thursday, July 23, 2020

The Income Tax Act, 1961 (Contd.)

published in the Official Gazette (except in cases where any assessment or

No order of assessment or reassessment shall be passed by an Assessing Officer below

(a) on the assessment or reassessment of the firm, or

HHB or Section 80-HHC or Section 80-HHD or Section 80-HHE or Section 80-O or

in any proceeding by way of appeal, reference or revision under this Act.

of law is pending before Supreme Court.— (1) Notwithstanding anything contained

return of income has been filed,—

A shall be dealt with in accordance with the provisions of Section 132-B.]

authorisation referred to in sub-section (1) shall be deemed to have been executed,—

purposes of this Act, if—

exceeding rupees ten thousand payable on 8% Savings (Taxable) Bonds, 2003

income credited or paid by a branch of the banking company or the

be computed with reference to the income credited or paid by the

provisions of sub-clause (a), sub-clause (b), and sub-clause (c) shall

awarded by the Motor Accidents Claims Tribunal;

(viia) shall be liable to deduct income-tax in accordance with the provisions of

commission or brokerage payable by Bharat Sanchar Nigam Limited or Mahanagar

(d) any sum referred to in clause (v-a) of Section 28,]

of sub-section (1) of Section 9;]

resident any income in respect of—

nature referred to in clause (23-FCA) of Section 10, is payable by a business trust to

income by way of interest referred to in sub-section (2) is payable to a non-resident,

as approved by the Central Government in this behalf; 3037 [or]]

way of issue of any long-term bond or rupee denominated bond on or after

clause (m) of sub-regulation (1) of Regulation 2 of the Securities and

(ii) a co-operative society engaged in carrying on the business of banking; or

(2) Notwithstanding anything contained in sub-section (1), no deduction of tax

3069 [196-D. Income of Foreign Institutional Investors from securities.— (1)

residents without deduction of tax.— (1) Any banking company or co-operative

company, or to a foreign company, in respect of—

Sl. No. Nature of Goods Percentage

sub-section (2) of Section 288;

1st day of October, 2004.]

(i) any arithmetical error in the statement;

to, the purpose of carrying out the provisions of this section.

Explanation.—For the purposes of this clause—

under Section 254 or Section 263 or Section 264, setting aside or

245-E. Power of Settlement Commission to reopen completed proceedings.

is proposed to be undertaken by such applicant,]

3393 [(iv) a determination or decision by the Authority whether an arrangement,

which is proposed to be undertaken by any person being a resident or a non-

(A) any person who—

an Additional Secretary to the Government of India 3403 [on the date of

Chairman by reason of his death, resignation or otherwise, the senior-most Vice-

raised in the application,—

of Section 158-BC, in respect of search initiated under Section 132 or books of

Section 271-C, Section 271-D or Section 271-E;]

(j) an order imposing a penalty under—

(ii) and (iii), two hundred fifty rupees.]

President and Member.— Notwithstanding anything contained in this Act, the

of Section 144-BA or an order passed under Section 154 or Section 155 in

purposes of this sub-section,—

order passed by the Assessing Officer shall be deemed to be erroneous in so far as it is

Explanation.—In this sub-section, FN1203[Principal Commissioner or Commissioner],

amount of two lakh rupees or more—

by whatever name called, in relation to transfer of an immovable property,