N Income Tax Act 1961 Dakshpoonia Nlunagpuracin 20230808 124944 1 415

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Page 1 Tuesday, August 08, 2023

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The Income Tax Act, 1961 (Contd.)

(Section 151 to 298)
CONTENTS
Section 1 to 150
151. Sanction for issue of notice
151-A. Faceless assessment of income escaping assessment
152. Other provisions
153. Time limit for completion of assessment, reassessment and

recomputation
153-A. Assessment in case of search or requisition
153-B. Time limit for completion of assessment under Section 153-A
153-C. Assessment of income of any other person
153-D. Prior approval necessary for assessment in cases or requisition
154. Rectification of mistake
155. Other amendments
156. Notice of demand
156-A. Modification and revision of notice in certain cases
157. Intimation of loss
157-A. Faceless rectification, amendments and issuance of notice or

intimation
158. Intimation of assessment of firm
158-A. Procedure when assessee claims identical question of law is

pending before High Court or Supreme Court
158-AA. Procedure when in an appeal by revenue an identical question

of law is pending before Supreme Court
158-AB. Procedure where an identical question of law is pending before

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High Courts or Supreme Court
158-B. Definitions
158-BA. Assessment of undisclosed income as a result of search
158-BB. Computation of undisclosed income of the block period
158-BC. Procedure for block assessment
158-BD. Undisclosed income of any other person
158-BE. Time limit for completion of block assessment
158-BF. Certain interests and penalties not to be levied or imposed
158-BFA. Levy of interest and penalty in certain cases
158-BG. Authority competent to make the block assessment
158-BH. Application of other provisions of this Act
158-BI. Chapter not to apply after certain date
159. Legal representatives
160. Representative assessee
161. Liability of representative assessee
162. Right of representative assessee to recover tax paid
163. Who may be regarded as agent
164. Charge of tax where share of beneficiaries unknown
164-A. Charge of tax in case of oral trust
165. Case where part of trust income is chargeable
166. Direct assessment or recovery not barred
167. Remedies against property in cases of representative assessees
167-A. Charge of tax in the case of a firm
167-B. Charge of tax where shares of members in association of

persons or body of individuals unknown, etc.
167-C. Liability of partners of limited liability partnership in liquidation
168. Executors
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169. Right of executor to recover tax paid
170. Succession to business otherwise than on death
170-A. Effect of order of tribunal or court in respect of business

reorganisation
171. Assessment after partition of a Hindu undivided family
172. Shipping business of non-residents
173. Recovery of tax in respect of non-resident from his assets
174. Assessment of persons leaving India
174-A. Assessment of association of persons or body of individuals or

artificial juridical person formed for a particular event or purpose
175. Assessment of persons likely to transfer property to avoid tax
176. Discontinued business
177. Association dissolved or business discontinued
178. Company in liquidation
179. Liability of directors of private company [* * *]
180. Royalties or copyright fees for literary or artistic work
180-A. Consideration for know-how
181.
182. Assessment of registered firms
183. Assessment of unregistered firms
184. Assessment as a firm
185. Assessment when Section 184 not complied with
186
187. Change in constitution of a firm
188. Succession of one firm by another firm
188-A. Joint and several liability of partners for tax payable by firm
189. Firm dissolved or business discontinued

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189-A. Provisions applicable to past assessments of firms
190. Deduction at source and advance payment
191. Direct payment
192. Salary
192-A. Payment of accumulated balance due to an employee
193. Interest on securities
194. Dividends
194-A. Interest other than “Interest on Securities”
194-B. Winnings from lottery or crossword puzzle
194-BB. Winnings from horse race
194-C. Payments to contractors
194-D. Insurance commission
194-DA. Payment in respect of life insurance policy
194-E. Payments to non-resident sportsmen or sports associations
194-EE. Payments in respect of deposits under National Savings

Scheme, etc.
194-F. Payments on account of repurchase of units by Mutual Fund or

Unit Trust of India
194-G. Commission, etc., on sale of lottery tickets
194-H. Commission or brokerage
194-I. Rent
194-IA. Payment on transfer of certain immovable property other than

agricultural land
194-IB. Payment of rent by certain individuals or Hindu undivided

family
194-IC. Payment under specified agreement
194-J. Fees for professional or technical services
194-K. Income in respect of units

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194-L. Payment of compensation on acquisition of capital asset
194-LA. Payment of compensation on acquisition of certain immovable

property
194-LB. Income by way of interest from infrastructure debt fund
194-LBA. Certain income from units of a business trust
194-LBB. Income in respect of units of investment fund
194-LBC. Income in respect of investment in securitisation trust
194-LC. Income by way of interest from Indian company
194-LD. Income by way of interest on certain bonds and Government

securities
194-M. Payment of certain sums by certain individuals or Hindu

undivided family
194-N. Payment of certain amounts in cash
194-O. Payment of certain sums by e-commerce operator to e-

commerce participant
194-P. Deduction of tax in case of specified senior citizen
194-Q. Deduction of tax at source on payment of certain sum for

purchase of goods
194-R. Deduction of tax on benefit or perquisite in respect of business

or profession
194-S. Payment on transfer of virtual digital asset
195. Other sums
195-A. Income payable “net of tax”
196. Interest or dividend or other sums payable to Government,

Reserve Bank or certain corporations
196-A. Income in respect of units of non-residents
196-B. Income from units
196-C. Income from foreign currency bonds or shares of Indian

company
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196-D. Income of Foreign Institutional Investors from securities
197. Certificate for deduction at lower rate
197-A. No deduction to be made in certain cases
197-B. Lower deduction in certain cases for a limited period
198. Tax deducted is income received
199. Credit for tax deducted
200. Duty of person deducting tax
200-A. Processing of statements of tax deducted at source
201. Consequences of failure to deduct or pay
202. Deduction only one mode of recovery
203. Certificate for tax
203-A. Tax deduction and collection account number
203-AA. Furnishing of statement of tax deducted
204. Meaning of “person responsible for paying”
205. Bar against direct demand on assessee
206. Persons deducting tax to furnish prescribed returns
206-A. Furnishing of statement in respect of payment of any income to

residents without deduction of tax
206-AA. Requirement to furnish Permanent Account Number
206-AB. Special provision for deduction of tax at source for non-filers of

income-tax return
206-B. Person paying dividend to certain residents without deduction of

tax to furnish prescribed return
206-C. Profits and gains from the business of trading in alcoholic liquor,
forest produce, scrap, etc.
206-CA. Tax-collection account number
206-CB. Processing of statements of tax collected at source
206-CC. Requirement to furnish Permanent Account Number by

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collectee
206-CCA. Special provision for collection of tax at source for nonfilers of

income-tax return
207. Liability for payment of advance tax
208. Conditions of liability to pay advance tax
209. Computation of advance tax
210. Payment of advance tax by the assessee of his own accord or in

pursuance of order of Assessing Officer
211. Instalments of advance tax and due dates
212.
213.
214. Interest payable by Government
215. Interest payable by assessee
216. Interest payable by assessee in case of underestimate, etc.
217. Interest payable by assessee when no estimate made
218. When assessee deemed to be in default
219. Credit for advance tax
220. When tax payable and when assessee deemed in default
221. Penalty payable when tax in default
222. Certificate to Tax Recovery Officer
223. Tax Recovery Officer by whom recovery is to be effected
224. Validity of certificate and cancellation or amendment thereof
225. Stay of proceedings in pursuance of certificate and amendment or

cancellation thereof
226. Other modes of recovery
227. Recovery through State Government
228.
228-A. Recovery of tax in pursuance of agreements with foreign

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countries
229. Recovery of penalties, fine, interest and other sums
230. Tax clearance certificate
230-A. Restrictions on registration of transfers of immovable property

in certain cases
231. Faceless collection and recovery of tax
232. Recovery by suit or under other law not affected
233.
234.
234-A. Interest for defaults in furnishing return of income
234-B. Interest for defaults in payment of advance tax
234-C. Interest for deferment of advance tax
234-D. Interest on excess refund
234-E. Fee for default in furnishing statements
234-F. Fee for default in furnishing return of income
234-G. Fee for default relating to statement or certificate
234-H. Fee for default relating to intimation of Aadhaar number
235.
236. Relief to company in respect of dividend paid out of past taxed

profits
236-A. Relief to certain charitable institutions or funds in respect of

certain dividends
237. Refunds
238. Person entitled to claim refund in certain special cases
239. Form of claim for refund and limitation
239-A. Refund for denying liability to deduct tax in certain cases
240. Refund on appeal, etc.

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241. Power to withhold refund in certain cases
241-A. Withholding of refund in certain cases
242. Correctness of assessment not to be questioned
243. Interest on delayed refunds
244. Interest on refund where no claim is needed
244-A. Interest on refunds
245. Set off and withholding of refunds in certain cases
245-A. Definitions
245-AA. Interim Boards for Settlement
245-B. Income Tax Settlement Commission
245-BA. Jurisdiction and powers of Settlement Commission
245-BB. Vice-Chairman to act as Chairman or to discharge his functions

in certain circumstances
245-BC. Power of Chairman to transfer cases from one Bench to another
245-BD. Decision to be by majority
245-C. Application for settlement of cases
245-D. Procedure on receipt of an application under Section 245-C
245-DD. Power of Settlement Commission to order provisional

attachment to protect revenue
245-E. Power of Settlement Commission to reopen completed

proceedings
245-F. Power and procedure of Settlement Commission
245-G. Inspection, etc., of reports
245-H. Power of Settlement Commission to grant immunity from

prosecution and penalty
245-HA. Abatement of proceeding before Settlement Commission
245-HAA. Credit for tax paid in case of abatement of proceedings
245-I. Order of settlement to be conclusive

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245-J. Recovery of sums due under order of settlement
245-K. Bar on subsequent application for settlement
245-L. Proceedings before Settlement Commission to be judicial

proceedings
245-M. Option to withdraw pending application
245-MA. Dispute Resolution Committee
245-N. Definitions
245-O. Authority for Advance Rulings
245-OA. Qualifications, terms and conditions of service of Chairman,

Vice-Chairman and Member
245-OB. Board for Advance Rulings
245-P. Vacancies, etc., not to invalidate proceedings
245-Q. Application for advance ruling
245-R. Procedure on receipt of application
245-RR. Appellate authority not to proceed in certain cases
245-S. Applicability of advance ruling
245-T. Advance ruling to be void in certain circumstances
245-U. Powers of the Authority
245-V. Procedure of Authority
245-W. Appeal
246. Appealable orders before Joint Commissioner (Appeals)
246-A. Appealable orders before
[Principal Commissioner or Commissioner] (Appeals)
247. Appeal by partner
248. Appeal by a person denying liability to deduct tax in certain cases
249. Form of appeal and limitation
250. Procedure in appeal

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251. Powers of the
252. Appellate Tribunal
252-A. Qualifications, terms and conditions of service of President, Vice

-President and Member
253. Appeals to the Appellate Tribunal
254. Orders of Appellate Tribunal
255. Procedure of Appellate Tribunal
257. Statement of cases to Supreme Court in certain cases
258. Power of High Court or Supreme Court to require statement to be

amended
259. Case before High Court to be heard by not less than two judges
260. Effect to the decisions of Supreme Court and of the National Tax
Tribunal
260-A. Appeal to High Court
260-B. Case before High Court to be heard by not less than two Judges
261. Appeal to Supreme Court
262. Hearing before Supreme Court
263. Revision of orders prejudicial to revenue
264. Revision of other orders
264-A. Faceless revision of orders
264-B. Faceless effects of orders
265. Tax to be paid notwithstanding reference, etc.
266. Execution for costs awarded by the Supreme Court
267. Amendment of assessment on appeal
268. Exclusion of time taken for copy
268-A. Filing of appeal or application for reference by income tax

authority
269. Definition of “High Court”

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269-A. Definitions
269-AB. Registration of certain transactions
269-B. Competent Authority
269-C. Immovable property in respect of which proceedings for

acquisition may be taken
269-D. Preliminary notice
269-E. Objections
269-F. Hearing of objections
269-G. Appeal against order for acquisition
269-H. Appeal to High Court
269-I. Vesting of property in Central Government
269-J. Compensation
269-K. Payment or deposit of compensation
269-L. Assistance by Valuation Officers
269-M. Powers of competent authority
269-N. Rectification of mistakes
269-O. Appearance by authorised representative or registered valuer
269-P. Statement to be furnished in respect of transfers of immovable

property
269-Q. Chapter not to apply to transfers to relatives
269-R. Properties liable for acquisition under this Chapter not to be

acquired under other laws
269-RR. Chapter not to apply where transfer of immovable property

made after a certain date
269-S. Chapter not to extend to State of Jammu and Kashmir
269-SS. Mode of taking or accepting certain loans, deposits and

specified sum
269-ST. Mode of undertaking transactions

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269-SU. Acceptance of payment through prescribed electronic modes
269-T. Mode of repayment of certain loans or deposits
269-TT. Mode of repayment of Special Bearer Bonds, 1991
269-U. Commencement of Chapter
269-UA. Definitions
269-UB. Appropriate authority
269-UC. Restrictions on transfer of immovable property
269-UD. Order by appropriate authority for purchase by Central

Government of immovable property
269-UE. Vesting of property in Central Government
269-UF. Consideration for purchase of immovable property by Central

Government
269-UG. Payment or deposit of consideration
269-UH. Revesting of property in the transferor on failure of payment or

deposit of consideration
269-UI. Powers of the appropriate authority
269-UJ. Rectification of mistakes
269-UK. Restrictions on revocation or alteration of certain agreements

for the transfer of immovable property or on transfer of certain
immovable property
269-UL. Restrictions on registration, etc., of documents in respect of

transfer of immovable property
269-UM. Immunity to transferor against claims of transferee for transfer
269-UN. Order of appropriate authority to be final and conclusive
269-UO. Chapter not to apply to certain transfers
269-UP. Chapter not to apply where transfer of immovable property

effected after certain date
270.
270-A. Penalty for under-reporting and misreporting of income

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270-AA. Immunity from imposition of penalty, etc.
271. Failure to furnish returns, comply with notices, concealment of

income, etc.
271-A. Failure to keep, maintain or retain books of account, documents,

etc.
271-AA. Penalty for failure to keep and maintain information and

document, etc., in respect of certain transactions
271-AAA. Penalty where search has been initiated
271-AAB. Penalty where search has been initiated
271-AAC. Penalty in respect of certain income
271-AAD. Penalty for false entry, etc., in books of account
271-AAE. Benefits to related persons
271-B. Failure to get accounts audited
271-BA. Penalty for failure to furnish report under Section 92-E
271-BB. Failure to subscribe to the eligible issue of capital
271-C. Penalty for failure to deduct tax at source
271-CA. Penalty for failure to collect tax at source
271-D. Penalty for failure to comply with the provisions of Section 269-
SS
271-DA. Penalty for failiure to comply with provisions of Section 269-ST
271-DB. Penalty for failure to comply with provisions of Section 269-SU
271-E. Penalty for failure to comply with the provisions of Section 269-
T
271-F. Penalty for failure to furnish return of income
271-FA. Penalty for failure to furnish [statement of financial transaction

or reportable account]
271-FAA. Penalty for furnishing inaccurate statement of financial

transaction or reportable account
271-FAB. Penalty for failure to furnish statement or information or

document by an eligible investment fund
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271-FB. Penalty for failure to furnish return of fringe benefits
271-G. Penalty for failure to furnish information or document under

Section 92-D
271-GA. Penalty for failure to furnish information or document under

Section 285-A
271-GB. Penalty for failure to furnish report or for furnishing inaccurate

report under Section 286
271-H. Penalty for failure to furnish statements, etc.
271-I. Penalty for failure to furnish information or furnishing inaccurate

information under Section 195
271-J. Penalty for furnishing incorrect information in reports or

certificates
271-K. Penalty for failure to furnish statements, etc
272.
272-A. Penalty for failure to answer questions, sign statements, furnish

information, returns or statements, allow inspections, etc.
272-AA. Penalty for failure to comply with the provisions of Section 133
-B
272-B. Penalty for failure to comply with the provisions of Section 139-
A
272-BB. Penalty for failure to comply with the provisions of Section 203
-A
272-BBB. Penalty for failure to comply with the provisions of Section

206-CA
273. False estimate of, or failure to pay, advance tax
273-A. Power to reduce or waive penalty, etc., in certain cases
273-AA. Power of [Principal Commissioner or Commissioner] to grant

immunity from penalty
273-B. Penalty not to be imposed in certain cases
274. Procedure
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275. Bar of limitation for imposing penalties
275-A. Contravention of order made under sub-section (3) of Section

132
275-B. Failure to comply with the provisions of clause (ii-b) of sub-

section (1) of Section 132
276. Removal, concealment, transfer or delivery of property to thwart

tax recovery
276-A. Failure to comply with the provisions of sub-sections (1) and (3)
of Section 178
276-AA.
276-AB. Failure to comply with the provisions of Sections 269-UC, 269-

UE and 269-UL
276-B. Failure to pay tax to the credit of Central Government under

Chapter XII-D or XVII-B
276-BB. Failure to pay the tax collected at source
276-C. Wilful attempt to evade tax, etc.
276-CC. Failure to furnish returns of income
276-CCC. Failure to furnish return of income in search cases
276-D. Failure to produce accounts and documents
276-DD. Failure to comply with the provisions of Section 269-SS
276-E. Failure to comply with the provisions of Section 269-T
277. False statement in verification, etc.
277-A. Falsification of books of account or document, etc.
278. Abetment of false return, etc.
278-A. Punishment for second and subsequent offences
278-AA. Punishment not to be imposed in certain cases
278-AB. Power of [Principal Commissioner or Commissioner] to grant

immunity from prosecution
278-B. Offences by companies

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278-C. Offences by Hindu undivided families
278-D. Presumption as to assets, books of account, etc., in certain

cases
278-E. Presumption as to culpable mental state
279. Prosecution to be at the instance of [Principal Chief Commissioner

or Chief Commissioner] or [Principal Commissioner or Commissioner]
279-A. Certain offences to be non-cognizable
279-B. Proof of entries in records or documents
280. Disclosure of particulars by public servants
280-A. Special Courts
280-B. Offences triable by Special Court
280-C. Trial of offences as summons case
280-D. Application of Code of Criminal Procedure, 1973 to proceedings

before Special Court
281. Certain transfers to be void
281-A.
281-B. Provisional attachment to protect revenue in certain cases
282. Service of notice generally
282-A. Authentication of notices and other documents
282-B. Allotment of Document Identification Number
283. Service of notice when family is disrupted or firm, etc., is

dissolved
284. Service of notice in the case of discontinued business
285. Submission of statement by a non-resident having liaison office
285-A. Furnishing of information or documents by an Indian concern in

certain cases
285-B. Submission of statements by producers of cinematograph films

or persons engaged in specified activitiy
285-BA. Obligation to furnish statement of financial transaction or

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reportable account
285-BB. Annual information statement
286. Furnishing of report in respect of International group
287. Publication of information respecting assessees in certain cases
287-A. Appearance by registered valuer in certain matters
288. Appearance by authorised representative
288-A. Rounding off of income
288-B. Rounding off amount payable and refund due
289. Receipt to be given
290. Indemnity
291. Power to tender immunity from prosecution
292. Cognizance of offences
292-A. Section 360 of the Code of Criminal Procedure, 1973, and the
Probation of Offenders Act, 1958, not to apply
292-B. Return of income, etc., not to be invalid on certain grounds
292-BB. Notice deemed to be valid in certain circumstances
292-C. Presumption as to assets books of account, etc.
292-CC. Authorisation and assessment in case of search or requisition
293. Bar of suits in civil courts
293-A. Power to make exemption, etc., in relation to participation in the

business of prospecting for, extraction, etc., of mineral oils
293-B. Power of Central Government or Board to condone delays in

obtaining approval
293-C. Power to withdraw approval
293-D. Faceless approval or registration
294. Act to have effect pending legislative provision for charge of tax
294-A. Power to make exemption, etc., in relation to certain Union

Territories
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295. Power to make rules
296. Rules and certain notifications to be placed before Parliament
297. Repeals and savings
298. Power to remove difficulties
Schedules 1 to 14
———
[151. Sanction for issue of notice.—Specified authority for the
3232
purposes of Section 148 and Section 148-A shall be,—

(i) Principal Commissioner or Principal Director or Commissioner
or Director, if three years or less than three years have elapsed
from the end of the relevant assessment year;
(ii) Principal Chief Commissioner or Principal Director General or
3233 [* * *] Chief Commissioner or Director General, if more
than three years have elapsed from the end of the relevant
assessment year:]
[Provided that the period of three years for the purposes of clause
3234
(i) shall be computed after taking into account the period of limitation
as excluded by the third or fourth or fifth provisos or extended by the
sixth proviso to sub-section (1) of Section 149.]
[151-A. Faceless assessment of income escaping assessment.—
3235
(1) The Central Government may make a scheme, by notification in the

Official Gazette, for the purposes of assessment, reassessment or
recomputation under Section 147 or issuance of notice under Section
148 or sanction for issue of such notice under Section 151, so as to
impart greater efficiency, transparency and accountability by—
(a) eliminating the interface between the income tax authority
and the assessee or any other person to the extent
technologically feasible;
(b) optimising utilisation of the resources through economies of
scale and functional specialisation;
(c) introducing a team-based assessment, reassessment,
recomputation or issuance or sanction of notice with dynamic
jurisdiction.
(2) The Central Government may, for the purpose of giving effect to
the scheme made under sub-section (1), by notification in the Official
Gazette, direct that any of the provisions of this Act 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
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March, 2022.
(3) Every notification issued under sub-section (1) and sub-section
(2) shall, as soon as may be after the notification is issued, be laid
before each House of Parliament.]
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.
[153. Time limit for completion of assessment, reassessment and
3236
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:
[Provided that in respect of an order of assessment relating to
3237
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
3238
relating to the assessment year commencing on—

(i) 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;
(ii) the 1st day of April, 2020, the provisions of this sub-section
words “eighteen months” had been substituted:]]
[Provided also that in respect of an order of assessment
3239
relating to the assessment year commencing on 3240 [* * *] the 1st

day of April, 2021, the provisions of this sub-section shall have
effect, as if for the words “twenty-one months”, the words “nine
months” had been substituted:]
[Provided also that in respect of an order of assessment
3241
relating to the assessment year commencing on or after the 1st day

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of April, 2022, the provisions of this sub-section shall have effect, as

if for the words “twenty-one months”, the words “twelve months”
had been substituted.]
[(1-A) Notwithstanding anything contained in sub-section (1),
3242
where a return under sub-section (8A) of Section 139 is furnished, an

order of assessment under Section 143 or Section 144 may be made at
any time before the expiry of 3243 [twelve months] from the end of the
financial year in which such return was furnished.]
(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:
[Provided that where the notice under Section 148 is served on
3244
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.]
(3) Notwithstanding anything contained in 3245 [sub-sections (1), (1-
A) and (2)], an order of fresh assessment 3246 [or fresh order under
Section 92-CA, as the case may be,] in pursuance of an order under
Section 254 or Section 263 or Section 264, setting aside or cancelling
an assessment, 3247 [or an order under Section 92-CA, as the case may
be] 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
3248
[Principal Chief Commissioner or Chief Commissioner or Principal
Commissioner or Commissioner, as the case may be,] or, as the case
may be, the order under Section 263 or Section 264 is passed by the
3249
Commissioner or Commissioner, as the case may be,]:
[Provided that where the order under Section 254 is received
3250
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.]
[(3-A) Notwithstanding anything contained in sub-sections (1),
3251
(1-A), (2) and (3), where an assessment or reassessment is pending on

the date of initiation of search under Section 132 or making of
requisition under Section 132-A, the period available for completion of
assessment or reassessment, as the case may be, under the said sub-
sections shall,—
(a) in a case where such search is initiated under Section 132 or
such requisition is made under Section 132-A;
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(b) in the case of an assessee, to whom any money, bullion,

jewellery or other valuable article or thing seized or
requisitioned belongs to;
(c) in the case of an assessee, to whom any books of account or
documents seized or requisitioned pertains or pertain to, or any
information contained therein, relates to,
be extended by twelve months.]
(4) Notwithstanding anything contained in 3252 [sub-sections (1), (1-
A), (2), (3) and (3-A)], 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 3253
[sub-sections (1), (1-A), (2), (3) and (3-A)] 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 3254 [or the Transfer Pricing Officer, as the case
may be,] wholly or partly, otherwise than by making a fresh
assessment or reassessment 3255 [or fresh order under Section 92-CA, as
the case may be,] 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 3256 [the Principal Chief Commissioner or Chief
Commissioner or Principal Commissioner or Commissioner, as the case
may be,]:
Provided that where it is not possible for the Assessing Officer 3257 [or
the Transfer Pricing Officer, as the case may be,] 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, 3258 [or the Transfer Pricing Officer, as
the case may be,] if satisfied, may allow an additional period of six
months to give effect to the order:
[Provided further that where an order under Section 250 or
3259
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).]
3260
[(5-A) Where the Transfer Pricing Officer gives effect to an order
-----------------------------------------------------------------------------------------------------------------------------------------------------------
or direction under Section 263 by an order under Section 92-CA and

forwards such order to the Assessing Officer, the Assessing Officer shall
proceed to modify the order of assessment or reassessment or
recomputation, in conformity with such order of the Transfer Pricing
Officer, within two months from the end of the month in which such
order of the Transfer Pricing Officer is received by him.]
(6) Nothing contained in 3261 [sub-sections (1), (1-A) and (2)] shall
apply to the following classes of assessments, reassessments and
recomputation which may, subject to the provisions of 3262 [sub-sections
(3), (5) and (5-A)], 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
3263 [Principal Chief Commissioner or Chief Commissioner or]
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 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:

[Provided that where a notice under sub-section (1) of Section
3264
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) 3265 [, under
clause (i) of the first 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 3266 [or
inventory valued] 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 3267 [or inventory valuation]
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 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 3268 [Authority for Advance
Rulings or before the Board 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 before the 3269 [Authority for Advance Rulings or before
the Board for Advance Rulings] under sub-section (1) of
Section 245-Q and ending with the date on which the advance
ruling pronounced by it is received by the Principal
Section 245-R; or
(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
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 3270 [Assessing
Officer; or
(xii) the period (not exceeding one hundred and eighty days)
commencing from the date on which a search is initiated under
Section 132 or a requisition is made under Section 132-A and
ending on the date on which the books of account or other
documents, or any money, bullion, jewellery or other valuable
-----------------------------------------------------------------------------------------------------------------------------------------------------------
article or thing seized under Section 132 or requisitioned under

Section 132-A, as the case may be, are handed over to the
Assessing Officer having jurisdiction over the assessee,—
(a) in whose case such search is initiated under Section 132 or
such requisition is made under Section 132-A; or
(b) to whom any money, bullion, jewellery or other valuable
article or thing seized or requisitioned belongs to; or
(c) to whom any books of account or documents seized or
requisitioned pertains or pertains to, or any information
contained therein, relates to; or]
3271
[(xiii) the period commencing from the date on which the
Assessing Officer makes a reference to the Principal
Commissioner or Commissioner under the second proviso to
sub-section (3) of Section 143 and ending with the date on
which the copy of the order under clause (ii) or clause (iii) of
the fifteenth proviso to clause (23C) of Section 10 or clause (ii)
or clause (iii) of sub-section (4) of Section 12-AB, as the case
may be, 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 3272 [sub-sections (1), (1-
A), (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 purposes of determining the period of limitation under
Sections 149,3273 [* * *] 154, 155 and 158-BE and for the purposes of
-----------------------------------------------------------------------------------------------------------------------------------------------------------
payment of interest under Section 244-A, this proviso shall also apply
accordingly:
[Provided also that where the assessee exercises the option to
3274
withdraw the application under sub-section (1) of Section 245-M, 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 (5) of the said section, 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:
Provided also that for the purposes of determining the period of
limitation under Sections 149, 154 and 155, and for the purposes of
payment of interest under Section 244-A, the provisions of the fourth
proviso shall 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.]
[153-A. Assessment in case of search or requisition.—3276 [(1)]
3275
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 3277 [but on or before the 31st
day of March, 2021], 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 3278 [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 3279 [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 3280 [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
years] 3282 [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:
[Provided also that the Central Government may by rules
3283
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 3284 [and for the relevant assessment year or
years]:]
[Provided also that no notice for assessment or
3285
reassessment shall be issued by the Assessing Officer for the

relevant assessment year or years unless—
(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.]
[(2) If any proceeding initiated or any order of assessment or
3286
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 3287
[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.
[153-B. Time limit for completion of assessment under Section
3288
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
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 are
handed over under Section 153-C to the Assessing Officer having
jurisdiction over such other person, whichever is later:
[Provided further that in the case where the last of the
3290
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
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
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 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 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.]
[Provided also that in a case where the last of the authorisations
3291
for search under section 132 or requisition under Section 132-A was
executed during the financial year commencing on the 1st day of April,
2020 or in case of other person referred to in Section 153-C, the books
of account or document or assets seized or requisitioned were handed
over under Section 153-C to the Assessing Officer having jurisdiction
over such other person during the financial year commencing on the 1st
day of April, 2020, the assessment in such cases for the assessment
year commencing on the 1st day of April, 2021 shall be made on or
before the 30th day of September, 2022.]
(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:
[Provided that where a notice under Section 153-A or Section
3292
153-C has been 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).]
[(4) Nothing contained in this section shall apply to any search
3293
initiated under section 132 or requisition made under Section 132-A on

or after the 1st day of April, 2021.]
Explanation.— In computing the period of limitation under this
section—
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(i) the period during which the assessment proceeding is stayed

(ii) 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
(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 before the 3294 [Authority for Advance Rulings or before
the Board 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
Section 245-R; or
(vii) the period commencing from the date on which an
application is made before the 3295 [Authority for Advance
Rulings or before the Board for Advance Rulings] under sub-
section (1) of Section 245-Q and ending with the date on which
the advance ruling pronounced by it is received by the Principal
Section 245-R; or
(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 the Principal
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 3296 [Assessing
Officer; or]
3297
[(xi) the period (not exceeding one hundred and eighty days)
commencing from the date on which a search is initiated under
section 132 or a requisition is made under Section 132-A and
ending on the date on which the books of account, or other
documents or money or bullion or jewellery or other valuable
article or thing seized under section 132 or requisitioned under
Section 132-A, as the case may be, are handed over to the
Assessing Officer having jurisdiction over the assessee, in
whose case such search is initiated under section 132 or such
requisition is made under Section 132-A, as the case may be,]
shall be excluded:
Provided that where immediately after the exclusion of the aforesaid
period, the 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.]
3298
[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.]
[Provided also that where the assessee exercises the option to
3299
withdraw the application under sub-section (1) of Section 245-M, 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 (5) of the
said section, 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.—3300 [(1)] 3301
[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] 3302 [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 3303 [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]:]
[Provided that in case of such other person, the reference to
3304
the date of initiation of the search under Section 132 or making of

requisition under Section 132-A in the second proviso to 3305 [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:]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[Provided further that the Central Government may by rules

3306
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 immediately
preceding the assessment year relevant to the previous year in
which search is conducted or requisition is made 3307 [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.]
[(2) Where books of account or documents or assets seized or
3308
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.]
[(3) Nothing contained in this section shall apply in relation to a
3309
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 April, 2021.]
► Applicability and Invocation of.—Principles clarified regarding
essentialities to be complied with by assessing officer and modalities to be
followed under different scenarios, Super Malls (P) Ltd. v. CIT, (2020) 4 SCC
581.
3310 [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 3311 [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:]
[Provided that nothing contained in this section shall apply
3312
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 3313 [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;
3314
[(b) amend any intimation or deemed intimation under sub-
section (1) of Section 143.]
3315
[(c) amend any intimation under sub-section (1) of Section
200-A.]
3316 [(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 3317 [by the assessee or by
the deductor 3318 [or by the collector],] and where the authority
concerned is the 3319 [* * *] 3320 [Principal Commissioner or 3321
[the Joint Commissioner (Appeals) or the Commissioner
(Appeals)]], by the Assessing Officer also.
3322 [* * *]
(3) An amendment, which has the effect of enhancing an
assessment or reducing a refund or otherwise increasing the liability of
3323 [the assessee or the deductor 3324 [or the collector]], shall not be
made under this section unless the authority concerned has given
notice to 3325 [the assessee or the deductor] of its intention so to do and
has allowed 3326 [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.

[(5) Where any such amendment has the effect of reducing the
3327
assessment or otherwise reducing the liability of the assessee or the

deductor 3328 [or the collector], the Assessing Officer shall make any
refund which may be due to such assessee or the deductor 3329 [or the
collector].]
(6) Where any such amendment has the effect of enhancing the
assessment or reducing a refund 3330 [already made or otherwise
increasing the liability of the assessee or the deductor 3331 [or the
collector], the Assessing Officer shall serve on the assessee or the
deductor 3332 [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.
[(8) Without prejudice to the provisions of sub-section (7), where
3333
an application for amendment under this section is made 3334 [by the
assessee or by the deductor 3335 [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) 3336 [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.
[(1-A) Where in respect of any completed assessment of a firm it
3337
is found—
(a) on the assessment or reassessment of the firm, or
firm under this section, Section 154, Section 250, Section 254,
Section 260, Section 262, Section 263 or Section 264, or
on the application made by the firm,
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
association, or body under this section, Section 154, Section
250, Section 254, Section 260, Section 262, Section 263 or
Section 264, or
on the 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
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 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
(c) for any other purpose which is not a purpose of the
the development rebate originally allowed shall be deemed to have
-----------------------------------------------------------------------------------------------------------------------------------------------------------
that section being reckoned from the end of the previous year in which
the sale or transfer 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
(c) for any other purpose which is not a purpose of the
the development allowance originally allowed shall be deemed to have
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
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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
the end of the previous year in which the period allowed for the
completion of the programme by the prescribed authority expired.
3338
[(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
that section being reckoned 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.
3339
[(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
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.
3340
[(8) * * *]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
3341
[(8-A) * * *]
3342 [(9) * * *]
3343
[(9-A) * * *]
3344
[(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
the end of the financial year in which the assessment was made.
3345
[(10-B) * * *]
3346 [(10-C) * * *]
[(11) Where in the assessment for any year, a capital gain arising
3347
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.]
[(11-A) Where in the assessment for any year, the deduction
3348
under Section 10-A or 3349 [Section 10-AA 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 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 3350 [Section 10-AA 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
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
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
reckoned 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.
[(13) Where in the assessment for any year, the deduction under
3351
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
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
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.]
[(14) Where in the assessment for any previous year or in any
3352
intimation or deemed intimation under sub-section (1) of Section 143

for any previous year, 3353 [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 3354 [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 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 3355 [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.
[(14-A) Where in the assessment for any previous year or in any
3356
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 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.]
[(16) Where in the assessment for any year, a capital gain arising
3357
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,—
(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 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 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.]

[(18) Where any deduction in respect of any surcharge or cess,
3358
which is not allowable as deduction under section 40, has been claimed
and allowed in the case of an assessee in any previous year, such claim
shall be deemed to be under-reported income of the assessee for such
previous year for the purposes of sub-section (3) of Section 270-A,
notwithstanding anything contained in sub-section (6) of Section 270-
A, and the Assessing Officer shall recompute the total income of the
assessee for such previous year and make 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 section 154 being
reckoned from the end of the previous year commencing on the 1st day
of April, 2021:
Provided that in a case where the assessee makes an application to
the Assessing Officer in the prescribed form and within the prescribed
time, requesting for recomputation of the total income of the previous
year without allowing the claim for deduction of surcharge or cess and
pays the amount due thereon within the specified time, such claim
shall not be deemed to be under-reported income for the purposes of
sub-section (3) of Section 270-A.]
[(19) Where any deduction in respect of any expenditure incurred
3359
for the purchase of sugarcane has been claimed by an assessee, being

a co-operative society engaged in the business of manufacture of sugar,
and such deduction has been disallowed wholly or partly in any
previous year commencing on or before the 1st day of April, 2014, the
Assessing Officer shall, on the basis of an application made by such
assessee in this regard, recompute the total income of the assessee for
such previous year after allowing deduction to the extent such
expenditure is incurred at a price which is equal to or less than the
price fixed or approved by the Government for that previous year, and
the period of four years specified in sub-section (7) of that section shall
be reckoned from the end of previous year commencing on the 1st day
of April, 2022.]
[(20) Where any income has been included in the return of
3360
income furnished by an assessee under Section 139 for any assessment

year (herein referred to as the relevant assessment year) and tax on
such income has been deducted at source and paid to the credit of the
Central Government in accordance with the provisions of Chapter XVII-
B in a subsequent financial year, the Assessing Officer shall, on an
application made by the assessee in such form, as may be prescribed,
within a period of two years from the end of the financial year in which
such tax was deducted at source, amend the order of assessment or
any intimation allowing credit of such tax deducted at source in the
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relevant assessment year, and the provisions of Section 154 shall, so

far as may be, apply thereto and the period of four years specified in
sub-section (7) of that section shall be reckoned from the end of the
financial year in which such tax has been deducted:
Provided that the credit of such tax deducted at source shall not
be allowed in any other assessment year.]
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.—3361 [(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:
[Provided that where any sum is determined to be payable by
3362
the assessee or 3363 [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.]
[(2) Where the income of the assessee of any assessment year,
3364
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.]

[156-A. Modification and revision of notice in certain cases.—(1)
3365
Where any tax, interest, penalty, fine or any other sum in respect of
which a notice of demand has been issued under section 156, is
reduced as a result of an order of the Adjudicating Authority as defined
in clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016
(31 of 2016), the Assessing Officer shall modify the demand payable in
conformity with such order and shall thereafter serve on the assessee a
notice of demand specifying the sum payable, if any, and such notice of
demand shall be deemed to be a notice under section 156 and the
provisions of this Act shall accordingly, apply in relation to such notice.
(2) Where the order referred to in sub-section (1) is modified by the
National Company Law Appellate Tribunal or the Supreme Court, as the
case may be, the modified notice of demand as referred to in sub-
section (1), issued by the Assessing Officer shall be revised
accordingly.]
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-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.
[157-A. Faceless rectification, amendments and issuance of
3366
notice or intimation.—(1) The Central Government may make a

scheme, by notification in the Official Gazette, for the purposes of
rectification of any mistake apparent from record under Section 154 or
other amendments under Section 155 or issue of notice of demand
under Section 156, or intimation of loss under Section 157, so as to
(c) introducing a team-based rectification of mistakes,
amendment of orders, issuance of notice of demand or
intimation of loss, with dynamic jurisdiction.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
March, 2022.
(2)
shall, as soon as may be after the notification is issued, be laid before
each House of Parliament.]
158. Intimation of assessment of firm.—3367 [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 3368 [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 3369 [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 3370 [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 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 3371 [Principal Commissioner or 3372 [the Joint
Commissioner (Appeals) or the 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.
[158-AA. Procedure when in an appeal by revenue an identical
3373
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.
[Provided that no such direction shall be given on or after the 1st
3374
day of April, 2022.]

(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-AB. Procedure where an identical question of law is pending
3375
before High Courts or Supreme Court.—(1) Notwithstanding anything

contained in this Act, where the collegium is of the opinion that—
(a) any question of law arising in the case of an assessee for any
assessment year (such case being herein referred to as the
relevant case) is identical with a question of law arising,—
(i) in his case for any other assessment year; or
(ii) in the case of any other assessee for any assessment year;
and
(b) such question is pending before the jurisdictional High Court
under Section 260-A or 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 Appellate Tribunal or
the jurisdictional High Court, as the case may be, which is in
favour of such assessee (such case being herein referred to as
the other case),
the collegium may, decide and inform the Principal Commissioner or
Commissioner not to file any appeal, at this stage, to the Appellate
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Tribunal under sub-section (2) of section 253 or to the jurisdictional

High Court under sub-section (2) of Section 260-A in the relevant case
against the order of 3376 [the Joint Commissioner (Appeals) or the
Commissioner (Appeals)] or the Appellate Tribunal, as the case may be.
(2) The Principal Commissioner or the Commissioner shall, on receipt
of a communication from the collegium under sub-section (1),
notwithstanding anything contained in sub-section (3) of section 253 or
clause (a) of sub-section (2) of Section 260-A, direct the Assessing
Officer to make an application to the Appellate Tribunal or the
jurisdictional High Court, as the case may be, in such form as may be
prescribed within a period of one hundred and twenty days from the
date of receipt of the order of the Commissioner (Appeals) or of the
Appellate Tribunal, as the case may be, stating that an appeal on the
question of law arising in the relevant case may be filed when the
decision on such question of law becomes final in the other case.
(3) The Principal Commissioner or Commissioner shall direct the
Assessing Officer to make an application under sub-section (2) 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 Principal
Commissioner or Commissioner shall, notwithstanding anything
contained in sub-section (3) of section 253 or clause (a) of sub-section
(2) of Section 260-A, proceed in accordance with the provisions
contained in sub-section (2) of section 253 or in clause (c) of sub-
section (2) of Section 260-A.
(4) Where the order of the Commissioner (Appeals) or the order of
the Appellate Tribunal, as the case may be, referred to in sub-section
(1) is not in conformity with the final decision on the question of law in
the other case, as and when such order is received, the Principal
Commissioner or Commissioner may direct the Assessing Officer to
appeal to the Appellate Tribunal or the jurisdictional High Court, as the
case may be, against such order and save as otherwise provided in this
section all other provisions of Part B and Part CC of Chapter XX shall
apply accordingly.
(5) Every appeal under sub-section (4) shall be filed within a period
of sixty days to the Appellate Tribunal or one hundred and twenty days
to the High Court, as the case may be, from the date on which the
order of the jurisdictional High Court or the Supreme Court in the other
case is communicated to the Principal Commissioner or the
Commissioner (having jurisdiction over the relevant case), in
accordance with the procedure specified by the Board in this behalf.
Explanation.—For the purposes of this section, “collegium” means a
collegium comprising of two or more Chief Commissioners or Principal
Commissioners or Commissioners, as may be specified by the Board in
-----------------------------------------------------------------------------------------------------------------------------------------------------------
this behalf.]
158-B. Definitions.—In this Chapter, unless the context otherwise
requires,—
3377
[(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, 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 3378 [, 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.
3379 [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, 3380 [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 3381 [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
3382
[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;
3383 [(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 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 3384 [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:
[Provided that in computing deductions under Chapter
3385
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;]
3386 [(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 3387 [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.
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,—
3388
[(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 3389 [, Section 144 and
Section 145] shall, so far as may be, apply;
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(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;
3390
[(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 3391 [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.—3392 [(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 authorisations for search under Section 132 or for
requisition under Section 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 authorisations for search under Section 132 or for
requisition under Section 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 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.]
[Explanation 1.—In computing the period of limitation for the
3393
purposes of this section,—

(i) the period during which the assessment proceeding is stayed
(ii) the period 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; or
(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 3394 [Principal Commissioner or
Commissioner] under sub-section (2) of that section,
shall be excluded:
Provided that where immediately after the exclusion of the
aforesaid period, the 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.]
[Explanation 2.—For the removal of doubts, it is hereby declared
3395
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.
3396
[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 3397 [one per cent] of the
tax on undisclosed income, 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 3398 [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
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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 3399 [Principal Commissioner or Commissioner]
(Appeals) under Section 246 3400 [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 3401 [Principal Commissioner or
Commissioner] (Appeals) or, as the case may be, the Appellate
Tribunal is received by the 3402 [Principal Chief Commissioner or
Chief Commissioner] or the 3403 [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 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.]
[158-BG. Authority competent to make the block assessment.—
3404
The order of assessment for the block period shall be passed by an

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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 3405 [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.]
[158-BI. Chapter not to apply after certain date.—The provisions
3406
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 in his capacity as legal representative if, while his
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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
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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.
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.—3407 [* * *]
(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,
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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-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
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‘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.”.
vide Finance Act, 2003, S. 68
_____________________________
(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,
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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 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—
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(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 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;
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(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 3408 [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 a cooperative society or a society
registered under the Societies Registration Act, 1860 (21 of 1860), or
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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.
[167-C. Liability of partners of limited liability partnership in
3409
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.]
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[Explanation.—For the purposes of this section, the expression

3410
“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 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;
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(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.
[(2-A) Notwithstanding anything contained in sub-sections (1)
3411
and (2), where there is succession, the assessment or reassessment or

any other proceedings, made or initiated on the predecessor during the
course of pendency of such succession, shall be deemed to have been
made or initiated on the successor and all the provisions of this Act
Explanation.—For the purposes of this sub-section, the term
“pendency” means the period commencing from the date of filing of
application for such succession of business before the High Court or
tribunal or the date of admission of an application for corporate
insolvency resolution by the Adjudicating Authority as defined in clause
(1) of section 5 of the Insolvency and Bankruptcy Code, 2016 (31 of
2016) and ending with the date on which the order of such High Court
or tribunal or such Adjudicating Authority, as the case may be, is
received by the Principal Commissioner or the Commissioner.]
(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.
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[170-A. Effect of order of tribunal or court in respect of business

3412
reorganisation.—(1) Notwithstanding anything to the contrary

contained in Section 139, in a case of business reorganisation, where
prior to the date of order of a High Court or tribunal or an Adjudicating
Authority as defined in clause (1) of Section 5 of the Insolvency and
Bankruptcy Code, 2016 (31 of 2016) (hereinafter referred to as order in
respect of business reorganisation), as the case may be, any return of
income has been furnished by an entity to which such order applies
under the provisions of Section 139 for any assessment year relevant to
the previous year to which such order applies, the successor shall
furnish, within a period of six months from the end of the month in
which the order was issued, a modified return in such form and
manner, as may be prescribed, in accordance with and limited to the
said order.
(2) Where the assessment or reassessment proceedings for an
assessment year relevant to a previous year to which the order in
respect of the business reorganisation applies,—
(a) have been completed on the date of furnishing of the modified
return in accordance with the provisions of sub-section (1), the
Assessing Officer shall pass an order modifying the total
income of the relevant assessment year determined in such
assessment or reassessment, in accordance with such order
and taking into account the modified return so furnished;
(b) are pending on the date of furnishing of the modified return in
accordance with the provisions of sub-section (1), the
Assessing Officer shall pass an order assessing or reassessing
the total income of the relevant assessment year in accordance
with the order of the business reorganisation and taking into
account the modified return so furnished.
(3) Save as otherwise provided in this section, in an assessment or
reassessment made in respect of an assessment year under this
section, all other provisions of this Act shall apply and the tax shall be
chargeable at the rate or rates as applicable to such assessment year.
Explanation.—In this section, the expressions—
(i) “business reorganisation” means the reorganisation of business
involving the amalgamation or demerger or merger of business
of one or more persons;
(ii) “successor” means all resulting companies in a business
reorganisation, whether or not the company was in existence
prior to such business reorganisation.]
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
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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 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
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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.
of this section, 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.
(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.
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(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.
[(4-A) No order assessing the income and determining the sum
3413
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 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.
[(8) For the purposes of this section, the amount referred to in
3414
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
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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
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
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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.
(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
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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 3415 [* * *] 3416 [Principal Commissioner or
3417 [the Joint Commissioner (Appeals) or the 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
(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.
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(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 3418 [Principal Chief
Commissioner or Chief Commissioner] or 3419 [Principal
Commissioner or Commissioner], part with any of the assets of

the company or the properties in his hands until he has been
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 3420 [Principal Chief
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 3422 [except the provisions of the Insolvency and Bankruptcy
Code, 2016].
179. Liability of directors of private company 3423
[* * *].—(1)
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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.
3424
“tax due” includes penalty, interest 3425 [, fees] 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.
[Provided that nothing contained in this section shall apply in
3426
relation to the 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 3427 [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
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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.—3428 [* * *]
183. Assessment of unregistered firms.—3429 [* * *]
[184. Assessment as a firm.—(1) A firm shall be assessed as a
3430
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.
of this section, where, in respect of any assessment year, there is on
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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 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. 3431
[Omitted]
187. Change in constitution of a firm.—(1) Where at the time of
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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:
3432
[* * *]
(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 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 3433 [* * *] 3434 [Principal Commissioner or
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
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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
(5) Nothing in this section shall affect the provisions of sub-section
(6) of Section 159.
[189-A. Provisions applicable to past assessments of firms.—In
3436
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
3437 [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.—[3438 (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.
[Explanation.—For the removal of doubts, it is hereby declared
3439
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 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.]
[(2) For the purposes of paying income-tax directly by the
3440
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—
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.
[(1-A) Without prejudice to the provisions contained in sub-
3441
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.]
[(1-C) For the purposes of deducting or paying tax under sub-
3442
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—
the person,
whichever is the earliest, on the basis of rates in force for the financial
year in which 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.
3443 [(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.]
[(2-C) A person responsible for paying any income chargeable
3444
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.]
[(2-D) The person responsible for making the payment referred to
3445
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.]
(3) The person responsible for making the payment referred to in
sub-section (1) 3446 [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.
[192-A. Payment of accumulated balance due to an employee.—
3447
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 3448 [fifty thousand
rupees]:
3449
[* * *]]
193. Interest on securities.—The person responsible for paying 3450
[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:
3451 [* * *]
Provided 3452 [* * *] 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 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) 3453
[Omitted]
3454
[(iv) any interest payable on any security of the Central
Government or a State Government:]
[Provided that nothing contained in this clause shall
3455
apply to the interest exceeding rupees ten thousand payable on

8% Savings (Taxable) Bonds, 2003 3456 [or 7.75% Savings
(Taxable) Bonds, 2018] during the financial year;]
3457
[(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;]
3458
[(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.]
3459
[(ix) any interest payable to a “business trust”, as defined in
clause (13-A) of Section 2, in respect of any securities, by a
special purpose vehicle referred to in the Explanation to clause
(23-FC) of Section 10.]
Explanation.—3460 [* * *] 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.—3461 [* * *]
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 3462
[by any mode] in respect of any dividend or before making any
distribution or payment to a shareholder, 3463 [who is resident in India]
of any dividend 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 3464 [at
the rate of ten per cent]:
[Provided that no such deduction shall be made in the case of a
3465
shareholder, being an individual, if—

(a) the dividend is paid by the company by 3466
[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 3467 [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:]
3468
[(d) a “business trust”, as defined in clause (13-A) of Section
2, by a special purpose vehicle referred to in the Explanation to
clause (23-FC) of Section 10;
(e) any other person as may be notified by the Central
Government in the Official Gazette in this behalf.]
3469
[* * *]
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:
[Provided that an individual or a Hindu undivided family, whose
3470
total sales, gross receipts or turnover from the business or profession

carried on by him exceed 3471 [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) 3472 [* * *]
(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, 3473 [does not exceed—
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(a) 3474 [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) 3475 [forty thousand] rupees, where the payer is a co-
operative society engaged in carrying on the business of
banking;
(c) 3476 [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:]
[Provided that in respect of the income credited or
3477
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 3478 [for residential
purposes and which is eligible for deduction under clause
(viii) of sub-section (1) of Section 36]3479 [* * *],
3480
[* * *] 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;]
3481
[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;]
3482
[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.—3483 [* * *]
(ii) 3484
[* * *]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(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:
[Provided that no notification under this sub-clause shall
3485
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 3486 [paid by a co-operative society
(other than a co-operative bank) to a member thereof or to
such income credited or paid by a co-operative society] to any
other cooperative society;
[Explanation.—For the purposes of this clause, “co-
3487
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;
3488 [(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);
3489
[(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;]
3490 [(x) to such income which is paid or payable by an
infrastructure capital company or infrastructural capital fund or
3491 [infrastructure debt fund or] a public sector company 3492 [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 3493 [or scheduled bank];]
3494
[(xi) to any income by way of interest referred to in clause (23
-FC) of Section 10.]
[Provided that a co-operative society referred to in clause
3495
(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.]
[Explanation 3497 [(1)].—For the purposes of clauses (i), (vii) and
3496
(vii-a), “time deposits” means deposits (3498 [including] recurring

deposits) repayable on the expiry of fixed periods.]
[Explanation 2.—For the purposes of this sub-section, “senior
3499
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]3500
[(5) The Central Government may, by notification in the Official
3501
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. 3502 [Winnings from lottery or crossword puzzle, etc].—The
person responsible for paying to any person any income by way of
winnings from any lottery or crossword puzzle 3503 [or card game and
other game of any sort] 3504 [or from gambling or betting of any form or
nature whatsoever, being the amount or the aggregate of amounts
exceeding ten thousand rupees during the financial year] shall, at the
time of payment thereof, deduct income tax thereon at the rates in
force:
3505 [* * *]
[Provided 3507 [*
3506 * *] 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:]
[Provided further that nothing contained in this section shall
3508
apply to deduction of income-tax on winnings from any online game on

or after the 1st day of April, 2023.
Explanation.—For the purposes of this section,“online game” shall
have the meaning assigned to it in clause (iii) of the Explanation to
Section 115-BBJ.]
[194-BA. Winnings from online games.—(1) Notwithstanding
3509
anything contained in any other provisions of this Act, any person

responsible for paying to any person any income by way of winnings
from any online game during the financial year shall deduct income-tax
on the net winnings in his user account, computed in the manner as
may be prescribed, at the end of the financial year at the rates in force:
Provided that in a case where there is a withdrawal from user
account during the financial year, the income-tax shall be deducted at
the time of such withdrawal on the net winnings comprised in such
withdrawal, as well as on the remaining amount of net winnings in the
user account, computed in the manner as may be prescribed, at the
end of the financial year.
(2) In a case where the net 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 net winnings,
the person responsible for paying shall, before releasing the winnings,
ensure that tax has been paid in respect of the net winnings.
(3) If any difficulty arises in giving effect to the provisions of this
section, the Board may, with the previous approval of the Central
Government, issue guidelines for the purposes of removing the
difficulty.
(4) Every guideline issued by the Board under sub-section (3) shall,
as soon as may be after it is issued, be laid before each House of
Parliament, and shall be binding on the income-tax authorities and on
the person liable to deduct income-tax.
Explanation.—For the purposes of this section—
(a) “computer resource”, “internet” and “online game” shall have
the meanings respectively assigned to them in Section 115-
BBJ;
(b) “online gaming intermediary” means an intermediary that
offers one or more online games;
(c) “user” means any person who accesses or avails any computer
resource of an online gaming intermediary;
(d) “user account” means account of a user registered with an
online gaming intermediary.]
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 3510 [, being the amount or aggregate of amounts
exceeding ten thousand rupees during the financial year,] shall, at the
time of payment thereof, deduct income tax thereon at the rates in
force:
3511
[* * *]
[ [194-C. Payments to contractors.—(1) Any person responsible
3512
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-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 3513 [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 3514 [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, 3515 [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
(B) 3516 [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;
3517 [(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 3518 [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 3519 [fifteen thousand rupees].
[194-DA. Payment in respect of life insurance policy.—Any person
3520
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 3521 [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) 3522 [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 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 3523
[twenty per cent].
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[194-EE. Payments in respect of deposits under National Savings

3524
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 3525 [ten per cent]:
Provided that no deduction shall be made under this section where
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.]
[194-F. Payments on account of repurchase of units by Mutual
3526
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.]
[194-G. Commission, etc., on sale of lottery tickets.—3528 [(1)]
3527
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 3529 [fifteen thousand rupees] shall, 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 3530 [five per cent].
(2) 3531
[* * *]
(3) 3532
[* * *]
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.]
[194-H. Commission or brokerage.—Any person, not being an
3533
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 3534 [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 3535 [fifteen thousand rupees]:
[Provided further that an individual or a Hindu undivided
3536
family, whose total sales, gross receipts or turnover from the business
or profession carried on by him exceed 3537 [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.]
[Provided also that no deduction shall be made under this section
3538
on any commission or brokerage payable by Bharat Sanchar Nigam

Limited or Mahanagar Telephone Nigam Limited to their public call
office franchisees.]
(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.]
[194-I. Rent.—Any person, not being an individual or a Hindu
3539
undivided family, who is responsible for paying to 3540 [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, 3541 [deduct income tax thereon at the rate of—
-----------------------------------------------------------------------------------------------------------------------------------------------------------
3542
[(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:]
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 aforesaid person to the account of,
or to, the payee, does not exceed 3543 [two hundred and forty thousand
rupees]:
3544
year immediately preceding the financial year in which such income by
way of rent is credited or paid, shall be liable to deduct income tax
under this section.]
[Provided also that no deduction shall be
3546
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.]
3547
[(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
(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.]
[194-IA. Payment on transfer of certain immovable property
3548
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 3549 [or the stamp duty value of such
property, whichever is higher,] as income tax thereon.
(2) No deduction under sub-section (1) shall be made where the
consideration for the transfer of an 3550 [immovable property and the
stamp duty value of such property, are both,] 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;
3551
[(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.]
3552
[(c) “stamp duty value” shall have the same meaning as
assigned to it in clause (f) of the Explanation to clause (vii) of
sub-section (2) of section 56.]
[194-IB. Payment of rent by certain individuals or Hindu
3553
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 3554 [Section 206-AA 3555 [* * *], 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.]
3556 [194-IC. Payment under specified agreement.—Notwithstanding
anything 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
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.]
[194-J. Fees for professional or technical services.—(1) Any
3557
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, 3558 [or]
3559
[(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]
3560
[(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 3561
[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

aforesaid person to the account of, or to, the payee, does not
exceed—
(i) [thirty thousand rupees], in the case of
3562 fees for
professional services referred to in clause (a), or
(ii) 3563 [thirty thousand rupees], in the case of fees for
technical services referred to in 3564 [clause (b), or]
3565
[(iii) 3566 [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):]
3567
year immediately preceding the financial year in which 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:]
[Provided also that no individual or a Hindu undivided family
3569
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:]
[Provided also that the provisions of this section shall have effect,
3570
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) 3571
[* * *]
(3) 3572
[* * *]
(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;
3573 [(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.
[194-K. Income in respect of units.—Any person responsible for
3574
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
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.—3575
[* * *]
[194-LA. Payment of compensation on acquisition of certain
3576
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 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:
amount of such payments to a resident during the financial year does
not exceed 3577 [two lakh and fifty thousand rupees]:
[Provided further that no deduction shall be made under this
3578
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.]
[194-LB. Income by way of interest from infrastructure debt fund.
3579
—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
is earlier, deduct income tax thereon at the rate of five per cent.
[194-LBA. Certain income from units of a business trust.—(1)
3580
Where any distributed income referred to in Section 115-UA, being of

the nature referred to 3581 [in 3582 [* * *] clause (23-FC)] 3583 [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 3584 [in 3585 [* * *] clause (23-FC)] of
Section 10, is payable by a business trust to its unit holder, 3586 [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 3587 [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]
[(2-A) Nothing contained in sub-sections (1) and (2) shall apply
3588
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.]
[(3) Where any distributed income referred to in Section 115-UA,
3589
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
the issue of a cheque or draft or by any other mode, whichever is
earlier, deduct income tax thereon at the rates in force.]
[194-LBB. Income in respect of units of investment fund.—Where
3590
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, 3591 [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.]
3592
[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
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
issue of a cheque 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.]
[194-LC. Income by way of interest from Indian company.—(1)
3593
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 3594 [or a business trust], the person
responsible for making the payment, shall, at the time of credit of such
is earlier, deduct the income tax thereon at the rate of five per cent:
[Provided that in case of income by way of interest referred to
3595
clause (ib) of sub-section (2), the income-tax shall be deducted at the

rate of four per cent.]
[Provided further that in case of income by way of interest
3596
referred to in clause (ic) of sub-section (2), the income-tax shall be

deducted at the rate of nine per cent.]
(2) The interest referred to in sub-section (1) shall be the income by
way of interest payable by the specified company 3597 [or the business
-----------------------------------------------------------------------------------------------------------------------------------------------------------
trust],—
3598 [(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 3599 [1st day of July, 3600 [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 3601 [1st day of July, 3602
[2023]],
as approved by the Central Government in this behalf; 3603
[or]]
3604
[(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, 3605 [2023], and]
3606 [(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, 3607 [or]]
3608 [(i-c) in respect of money borrowed by it from a source
outside India by way of issuance of any long-term bond or
rupee denominated bond on or after the 1st day of July,
2023, which is listed only on a recognised stock exchange
located in an 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.]
3609
[(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.]
3610
[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),
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.
[(2) The income by way of interest referred to in sub-section (1)
3611
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
(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);
3612
[(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).]
[194-M. Payment of certain sums by certain individuals or Hindu
3613
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 3614 [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.]
[194-N. Payment of certain amounts in cash.—Every person,
3615
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);
(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 where the recipient is a co-operative society,
3616
the provisions of this section shall have effect, as if for the words “one
crore rupees”, the words “three crore rupees” had been substituted.]
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.]
[194-O. Payment of certain sums by e-commerce operator to e-
3617
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 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).
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.]
[194-P. Deduction of tax in case of specified senior citizen.—(1)
3618
Notwithstanding anything contained in the provisions of Chapter XVII-

B, in case of a specified senior citizen, the specified bank shall, after
giving effect to the deduction allowable under Chapter VI-A and rebate
allowable under Section 87-A, compute the total income of such
specified senior citizen for the relevant assessment year and deduct
income-tax on such total income on the basis of the rates in force.
(2) The provisions of Section 139 shall not apply to a specified senior
citizen for the assessment year relevant to the previous year in which
the tax has been deducted under sub-section (1).
(a) “specified bank” means a banking company as the Central
Government may, by notification in Official Gazette, specify;
(b) “specified senior citizen” means an individual, being a resident
in India—
(i) who is of the age of seventy-five years or more at any time
during the previous year;
(ii) who is having income of the nature of pension and no other
income except the income of the nature of interest received
or receivable from any account maintained by such
individual in the same specified bank in which he is
receiving his pension income; and
(iii) has furnished a declaration to the specified bank
containing such particulars, in such form and verified in such
manner, as may be prescribed.]
[194-Q. Deduction of tax at source on payment of certain sum for
3619
purchase of goods.—(1) Any person, being a buyer who is responsible

for paying any sum to any resident (hereafter in this section referred to
as the seller) for purchase of any goods of the value or aggregate of
-----------------------------------------------------------------------------------------------------------------------------------------------------------
such value exceeding fifty lakh rupees in any previous year, shall, at
the time of credit of such sum to the account of the seller or at the time
of payment thereof by any mode, whichever is earlier, deduct an
amount equal to 0.1 per cent. of such sum exceeding fifty lakh rupees
as income-tax.
Explanation.—For the purposes of this sub-section, “buyer” 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
immediately preceding the financial year in which the purchase 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.
account, whether called “suspense account” or by any other name, in
the books of account of the person liable to pay such income, such
credit of income 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.
Government, issue guidelines for the purpose of removing the difficulty.
Parliament, and shall be binding on the income-tax authorities and the
person liable to deduct tax.
(5) The provisions of this section shall not apply to a transaction on
which—
(a) tax is deductible under any of the provisions of this Act; and
(b) tax is collectible under the provisions of Section 206-C other
than a transaction to which sub-section (1-H) of Section 206-C
applies.]
[194-R. Deduction of tax on benefit or perquisite in respect of
3620
business or profession.—(1) Any person responsible for providing to a

resident, any benefit or perquisite, whether convertible into money or
not, arising from business or the exercise of a profession, by such
resident, shall, before providing such benefit or perquisite, as the case
may be, to such resident, ensure that tax has been deducted in respect
of such benefit or perquisite at the rate of ten per cent. of the value or
aggregate of value of such benefit or perquisite:
Provided that in a case where the benefit or perquisite, as the case
may be, is wholly in kind or partly in cash and partly in kind but such
part in cash is not sufficient to meet the liability of deduction of tax in
respect of whole of such benefit or perquisite, the person responsible
-----------------------------------------------------------------------------------------------------------------------------------------------------------
for providing such benefit or perquisite shall, before releasing the

benefit or perquisite, ensure that tax required to be deducted has been
paid in respect of the benefit or perquisite:
Provided further that the provisions of this section shall not apply in
case of a resident where the value or aggregate of value of the benefit
or perquisite provided or likely to be provided to such resident during
the financial year does not exceed twenty thousand rupees:
Provided also that the provisions of this section shall not apply to a
person being an individual or a Hindu undivided family, whose total
sales, gross receipts or turnover does not exceed 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
benefit or perquisite, as the case may be, is provided by such person.
Government, issue guidelines for the purpose of removing the difficulty.
Parliament, and shall be binding on the income-tax authorities and on
the person providing any such benefit or perquisite.
Explanation 3621 [1].—For the purposes of this section, the expression
“person responsible for providing” means the person providing such
benefit or perquisite, or in case of a company, the company itself
including the principal officer thereof.]
[Explanation 2.—For the removal of doubts, it is clarified that the
3622
provisions of sub-section (1) shall apply to any benefit or perquisite,

whether in cash or in kind or partly in cash and partly in kind.]
[194-S. Payment on transfer of virtual digital asset.—(1) Any
3623
person responsible for paying to any resident any sum by way of

consideration for transfer of a virtual digital asset, shall, at the time of
credit of such sum to the account of the resident or at the time of
payment of such sum by any mode, whichever is earlier, deduct an
amount equal to one per cent. of such sum as income-tax thereon:
Provided that in a case where the consideration for transfer of virtual
digital asset is—
(a) wholly in kind or in exchange of another virtual digital asset,
where there is no part in cash; or
(b) 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 such transfer,
the person responsible for paying such consideration shall, before
releasing the consideration, ensure that tax required to be deducted
has been paid in respect of such consideration for the transfer of virtual
-----------------------------------------------------------------------------------------------------------------------------------------------------------
digital asset.
(2) The provisions of Sections 203-A and 206-AB shall not apply to a
specified person.
(3) Notwithstanding anything contained in sub-section (1), no tax
shall be deducted in a case, where—
(a) the consideration is payable by a specified person and the
value or aggregate value of such consideration does not exceed
fifty thousand rupees during the financial year; or
(b) the consideration is payable by any person other than a
specified person and the value or aggregate value of such
consideration does not exceed ten thousand rupees during the
financial year.
(4) Notwithstanding anything contained in section 194-O, in case of
a transaction to which the provisions of the said section are also
applicable along with the provisions of this section, then, tax shall be
deducted under sub-section (1).
account, whether called "Suspense Account" or by any other name, in
the books of account of the person liable to pay such sum, such credit
of the sum shall be deemed to be the credit of such sum to the account
of the payee and the provisions of this section shall apply accordingly.
section, the Board may, with the prior approval of the Central
Government, issue guidelines for the purposes of removing the
difficulty.
(7) Every guideline issued by the Board under sub-section (6) shall
be laid before each House of Parliament, and shall be binding on the
income-tax authorities and on the person responsible for paying the
consideration on transfer of such virtual digital asset.
Explanation.—For the purposes of this section “specified person”
means a person,—
(a) being an individual or a Hindu undivided family, whose total
sales, gross receipts or turnover from the business carried on
by him or profession exercised by him does not exceed 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 virtual digital asset is transferred;
(b) being an individual or a Hindu undivided family, not having
any income under the head “Profits and gains of business or
profession”.]
195. Other sums.—(1) Any person responsible for paying to a non-
resident, not being a company, or to a foreign company, 3624 [any
interest (not being interest referred to in Section 194-LB or Section 194
-----------------------------------------------------------------------------------------------------------------------------------------------------------
-LC) 3625 [or Section 194-LD]] 3626 [* * *] or any other sum chargeable
under the provisions of this Act (not being income chargeable under the
head “Salaries” 3627 [* * *] 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 payment thereof in
cash or by the issue of a cheque or draft or by any other mode:
3628 [* * *]
[Explanation-1].—For the purposes of this section, where any
3629
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.
[Explanation 2.—For the removal of doubts, it is hereby clarified
3630
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, 3631 [(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 3632 [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:
3633 [* * *]
(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.
[(6) The person responsible for paying to a non-resident, not
3634
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.]
[(7) Notwithstanding anything contained in sub-section (1) and
3635
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 3636 [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”.—3637 [In a case other than that
referred to 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.
[196-A. Income in respect of units of non-residents.—(1) Any
3638
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 3639 [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 3640 [by any mode],
whichever is earlier, deduct income tax thereon at the rate of twenty
per cent:
[Provided that where an agreement referred to in sub-section (1)
3641
of Section 90 or sub-section (1) of Section 90-A applies to the payee

and if the payee has furnished a certificate referred to in sub-section
(4) of Section 90 or sub-section (4) of Section 90-A, as the case may
be, then, income-tax thereon shall be deducted at the rate of twenty
per cent. or at the rate or rates of income-tax provided in such
agreement for such income, whichever is lower.]
3642
[* * *]
3643 [* * *]
(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.
(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.]
[196-B. Income from units.—3645 [Where any income in respect of
3644
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
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.]
[196-C. Income from foreign currency bonds or shares of Indian
3646
company.—3647 [Where any income by way of interest or dividends in

respect of bonds or 3648 [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 3649 [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 3650 [by any mode], whichever is earlier,
deduct income tax thereon at the rate of ten per cent:]
3651 [* * *]
3652
[* * *]
[196-D. Income of Foreign Institutional Investors from securities.
3653
—(1) Where 3654 [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
or at the time of payment thereof 3655 [by any mode], whichever is
earlier, deduct income tax thereon at the rate of twenty per cent:
3656 [* * *]
[Provided that where an agreement referred to in sub-section (1)
3657
of Section 90 or sub-section (1) of Section 90-A applies to the payee

and if the payee has furnished a certificate referred to in sub-section
(4) of Section 90 or sub-section (4) of Section 90-A, as the case may
be, then, income-tax thereon shall be deducted at the rate of twenty
per cent. or at the rate or rates of income-tax provided in such
agreement for such income, whichever is lower.]
[(1-A) Where any income in respect of securities referred to in
3658
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 specified

fund [referred to in clause (c) of the Explanation to clause (4-D) 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 by any mode, whichever is earlier, deduct the
income tax thereon at the rate of ten per cent.:
Provided that no deduction shall be made in respect of an income
exempt under clause (4-D) of Section 10.]
(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), 3659 [where, in the case of any income of
any person 3660 [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, 3661 [194], 194-A, 3662 [194-C] 194-D 3663 [194-G] 3664 [, 194-H],
[194-I]36653666 [, 194-J] [, 194-K] 3667 [, 194-LA 3668 [, 3669 [194-LBA,] 194
-LBB, 3670 [194-LBC, 3671 [194-M, 194-O]]]] 36723673 [* * *] 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
therewith.
197-A. No deduction to be made in certain cases.—(1)
Notwithstanding anything contained in 3674 [* * *] Section 194 3675 [* *
*],3676 [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 3677 [* * *] Section 194 3678 [3679
[* * *], 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 3680 [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].
[(1-A) Notwithstanding anything contained in 3682 [Section 192-A
3681
or Section 193 or Section 194-A 3683 [or Section 194-D] or Section 194-
DA 3684 [or Section 194-I]] or Section 194-K, no deduction of tax shall
be made under [any]3685 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
3686 [Section 192-A or Section 193 or Section 194-A 3687 [or Section 194-
D] or 3688 [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.]
[(1-B) The provisions of this section shall not apply where the
3689
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.]
[(1-C) Notwithstanding anything contained in 3691 [Section 192-A
3690
or Section 193 or Section 194 or Section 194-A 3692 [or Section 194-D]
or Section 194-DA] or Section 194-EE 3693 [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
3694 [sixty years] or more at any time during the previous year 3695 [* *
*], if such individual furnishes to the person responsible for paying any
income of the nature referred to in 3696 [Section 192-A or Section 193 or
Section 194 or Section 194-A 3697 [or Section 194-D] or Section 194-DA]
or Section 194-EE 3698 [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.]
[(1-D) Notwithstanding anything contained in this section, no
3699
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.]

[(1-E) Notwithstanding anything contained in this chapter, no
3700
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.]
[(1-F) Notwithstanding anything contained in this Chapter, no
3701
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) 3702 [or sub-section (1-A)] 3703 [or sub-
section (1-C)] shall deliver or cause to be delivered to the 3704 [Principal
Chief Commissioner or Chief Commissioner] or 3705
[Principal
Commissioner or Commissioner] one copy of the declaration referred to
in sub-section (1) 3706 [or sub-section (1-A)] 3707 [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.
[197-B. Lower deduction in certain cases for a limited period.—In
3708
case the provisions of Sections 193, 194, 194-A, 194-C, 194-D, 194-
DA,194-EE, 194-F, 194-G, 194-H, 194-I,194-IA, 194-IB, 194-IC, 194-
J, 194-K,194-LA, sub-section (1) of Section 194-LBA, clause (i) of
Section 194-LBB, sub-section (1) of Section 194-LBC, Sections 194-M
and 194-O require deduction of tax at source during the period
commencing from the 14th day of May, 2020 to the 31st day of March,
2021, then notwithstanding anything contained in these sections the
deduction of tax shall be made at the rate being the three-fourth of the
rate specified in these sections.]
198. Tax deducted is income received.—All sums deducted in
accordance with 3709 [the foregoing provisions of this chapter] shall for
the purpose of computing the income of an assessee, be deemed to be
income received:
[Provided that the sum being the tax paid, under sub-section (1
3710
-A) of Section 192 for the purpose of computing the income of an

assessee, shall not be deemed to be income received:]
[Provided further that the sum deducted in accordance with the
3711
provisions of Section 194-N for the purpose of computing the income of

an assessee, 3712 [shall not be deemed] to be income received.]
[199. Credit for tax deducted.—(1) Any deduction made in
3713
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.—3714 [(1)] Any person deducting
any sum in accordance with 3715 [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.
[(2) Any person being an employer, referred to in sub-section (1-
3716
A) of Section 192 shall pay, within the prescribed time, the tax to the
credit of the Central Government or as the Board directs.]
[(2-A) In case of an office of the Government, where the sum
3717
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.]
[(3) Any person deducting any sum on or after the 1st day of
3718
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, 3719
[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.]
[Provided that the person may also deliver to the prescribed
3720
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.]

[200-A. Processing of statements of tax deducted at source.—(1)
3721
Where a statement of tax deduction at source 3722 [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;
3723
[(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.—3724 [(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:
[Provided that any person, including the principal officer of a
3725
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
3726
[payee] or on the sum credited to the account of a 3727 [payee]
shall not be deemed to be an assessee in default in respect of such
tax if such 3728 [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 income, and the person furnishes a certificate to this
effect from an accountant in such form as may be prescribed:]
[Provided further that] no penalty shall be charged under
3729
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.]
[(1-A) Without prejudice to the provisions of sub-section (1), if
3730
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:]
[Provided that in case any person, including the principal
3731
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 3732 [payee] or on the sum credited to the account of a 3733 [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 3734 [payee].]
[Provided further that where an order is made by the Assessing
3735
Officer for the default under sub-section (1), the interest shall be paid
by the person in accordance with such order.]
(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).
[(3) No order shall be made under sub-section (1) deeming a
3736
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 3737 [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).]
3738
“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 3739 [the foregoing provisions of this chapter]
shall be without prejudice to any other mode of recovery.
203. Certificate for tax.—3740 [(1)] Every person deducting tax in
accordance with 3741 [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.
[(2) Every person, being an employer, referred to in sub-section
3742
(1-A) of Section 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.]
3743 [(3) 3744 [* * *]]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[203-A. Tax deduction and collection account number.—(1) Every

3745
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;
3746
[(ba) in all the 3747 [* * *] 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.]
[(3) The provisions of this section shall not apply to such person,
3748
as may be notified by the Central Government in this behalf.]

203-AA. Furnishing of statement of tax deducted.—3749 [* * *]
204. Meaning of “person responsible for paying”.—For the purposes
of 3750 [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 3751 [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 3752 [the Foreign Exchange Management Act,
1999 (42 of 1999)], and any rules made thereunder;
3753 [(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 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.
3754
[(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.]
3755
[(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;
3756 [(b) “authorised person” shall have the meaning assigned to it
in clause (c) of Section 2 of 3757 [the Foreign Exchange
Management Act, 1999 (42 of 1999)].]
205. Bar against direct demand on assessee.—Where tax is
deductible at the source under 3758 [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.—3759 [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 3760 [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 3761 [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:
[Provided that the Board may, if it considers necessary or
3762
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.]
[(2) Without prejudice to the provisions of sub-section (1), the
3763
person responsible for deducting tax under the foregoing provisions of

this Chapter other than the 3764 [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:
3765 [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.
(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.]
[206-A. Furnishing of statement in respect of payment of any
3766
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 sub-section (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.]
[206-AA. Requirement to furnish Permanent Account Number.—
3767
(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:
[Provided that where the tax is required to be deducted under
3768
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.]
[Provided further that where the tax is required to be deducted
3769
under Section 194-Q, 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.
(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.
[(7) The provisions of this section shall not apply to a non-
3770
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-AB. Special provision for deduction of tax at source for non-
3771
filers of income-tax return.—(1) Notwithstanding anything contained in

any other provisions of this Act, where tax is required to be deducted at
source under the provisions of Chapter XVII-B, other than Sections
192, 192-A, 194-B, 3772 [194-BA,] 194-BB, 3773 [194-IA, 194-IB, 194-
LBC, 194-M or 194-N] on any sum or income or amount paid, or
payable or credited, by a person 3774 [* * *] to a specified person, the
tax shall be deducted at the higher of the following rates, namely—
(i) at twice the rate specified in the relevant provision of the Act;
or
(ii) at twice the rate or rates in force; or
(iii) at the rate of five per cent.
(2) If the provisions of Section 206-AA is applicable to a specified
person, in addition to the provision of this section, the tax shall be
deducted at higher of the two rates provided in this section and in
Section 206-AA.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(3) For the purposes of this section “specified person” means a

person who has not 3775 [furnished the return of income for the
assessment year relevant to the previous year immediately preceding
the financial year in which tax is required to be deducted, for which the
time limit for furnishing the return of income under sub-section (1) of
section 139 has expired and the aggregate of tax deducted at source
and tax collected at source in his case is rupees fifty thousand or more
in the said previous year]:
3776 [Provided that the specified person shall not include—
(i) a non-resident who does not have a permanent establishment
in India; or
(ii) a person who is not required to furnish the return of income
for the assessment year relevant to the said previous year and
is notified by the Central Government in the Official Gazette in
this behalf.]
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.]
206-B. Person paying dividend to certain residents without deduction
of tax to furnish prescribed return.—3777 [* * *]
[206-C. Profits and gains from the business of trading in alcoholic
3778
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:
3779 [TABLE
Sl. Nature of Goods Percentage
No.
(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 Two and one-half
under a forest lease per cent
(v) Any other forest produce not being timber Two and one-half
or tendu leaves per cent
(vi)
3780
Scrap One per cent:]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[(vii) Minerals, being coal or lignite or iron ore One per cent.]
[Provided that every person, being a seller shall at the time,
3781
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.]
[(1-A) Notwithstanding anything contained in sub-section (1), no
3782
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 duplicate in the prescribed form and
verified in the prescribed manner to the effect 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
3783
[or for the purposes of generation of power] and not for trading
purposes.
(1-B) The person responsible for collecting tax under this section
shall deliver or cause to be delivered to the 3784 [Principal Chief
Commissioner or Chief Commissioner] or 3785 [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.]
[(1-C) Every person, who grants a lease or a licence or enters into
3786
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]
[Explanation 1.—For the purposes of this sub-section, “mining
3787
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) 3788
[* * *]
(1-E) 3789
[* * *]
(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.]
3790
[(1-G) Every person,—
(a) being an authorised dealer, who receives an amount, for
remittance 3791 [* * *] from a buyer, being a person remitting
such amount 3792 [* * *] 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 3793 [twenty]
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 3794 [and is for the purposes of
education or medical treatment]:
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 3795 [is
for the purposes of education or medical treatment]:
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 80-E, 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
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 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 3796 [this section] 3797
[* * *] shall be without prejudice to any other mode of recovery.

(3) Any person collecting any amount under 3798 [this section] 3799 [*
* *] shall pay within 3800 [the prescribed time] the amount so collected
to the credit of the Central Government or as the Board directs:
[Provided that the person collecting tax on or after the 1st day
3801
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, 3802 [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.]
[(3-A) In case of an office of the Government, where the amount
3803
collected under sub-section (1) or sub-section (1-C) 3804 [* * *] 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.]
[(4) Any amount collected in accordance with the provisions of
3805
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 3806 [such period as may be prescribed from the
time] of debit or receipt of the amount furnish to the buyer 3807 [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:
3808
[* * *]
Provided 3809[* * *] that the prescribed income tax authority or the
person authorised by such authority referred to in sub-section (3) shall,
within the prescribed time 3810 [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 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 3811 [collecting tax before the 1st day of April,
2005] in accordance with the provisions of this section shall prepare 3812
[within the prescribed time after the end of each] financial year, and
deliver or cause to be delivered to the prescribed income tax authority
3813
[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:
3814
[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.]
[(5-B) Without prejudice to the provisions of sub-section (5-A),
3815
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).
3816
[(6-A) If any person responsible for collecting tax 3817
[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:
[Provided that any person3819 [* * *], responsible for collecting tax
3818
in accordance with the provisions of this section, who 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 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:]
[Provided further that] no penalty shall be charged under Section
3820
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 3821
[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 3822 [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 3823 [and such interest shall be paid before furnishing the
quarterly statement for each quarter in accordance with the provisions
of sub-section (3)]:
[Provided that in case any person3825 [* * *], responsible for
3824
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:]
[Provided further that where an order is made by the Assessing
3826
Officer for the default under sub-section (6A), the interest shall be paid
by the person in accordance with such order.]
(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 3827 [person responsible for collecting tax].]
[(9) Where the Assessing Officer is satisfied that the total income
3828
of the buyer 3829 [or licensee or lessee] justifies the collection of the tax
at any lower rate than the relevant rate specified in sub-section (1) 3830
[or sub-section (1-C) 3831 [* * *]], 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) 3832 [or sub-section (1-C) 3833 [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.
[(10-A) In case the provisions of sub-sections (1) [except the
3834
goods referred at serial number (i) in the TABLE], (1-C), (1-F) or (1-H)
require collection of tax at source during the period commencing from
the 14th day of May, 2020 to the 31st day of March, 2021, then,
notwithstanding anything contained in these sub-sections the collection
of tax shall be made at the rate being the three-fourth of the rate
specified in these sub-sections.]
(11) The Board may, having regard to the convenience of assessees
therewith.]
3835
[Explanation.—For the purposes of this section,—
3836 [(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, 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;
3837
[* * *]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[(iii) sub-section (1F) means a person who obtains in

3838
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.]
3839
[* * *]
3840
[(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” 3841 [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 3842 [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) 3843 [are
sold].]
[206-CA. Tax-collection account number.—(1) Every person
3844
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:]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[Provided that the provisions of this section shall not apply

3845
on or after the 1st day of October, 2004.]

[206-CB. Processing of statements of tax collected at source.—(1)
3846
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—
(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).]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[206-CC. Requirement to furnish Permanent Account Number by

3847
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:
[Provided that the rate of tax collection at source under this
3848
section shall not exceed twenty 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-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
3849
[206-CCA. Special provision for collection of tax at source for
nonfilers of income-tax return.—(1) Notwithstanding anything
contained in any other provisions of this Act, where tax is required to
be collected at source under the provisions of Chapter XVII-BB, on any
sum or amount received by a person 3850 [* * *] from a specified
person, the tax shall be collected at the higher of the following two
rates, namely—
(i) at twice the rate specified in the relevant provision of the Act;
or
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(ii) at the rate of five per cent:

[Provided that the rate of tax collection at source under this
3851
section shall not exceed twenty per cent.]

(2) If the provisions of Section 206-CC is applicable to a specified
person, in addition to the provisions of this section, the tax shall be
collected at higher of the two rates provided in this section and in
Section 206-CC.
(3) For the purposes of this section “specified person” means a
person who has not 3852 [furnished the return of income for the
assessment year relevant to the previous year immediately preceding
the financial year in which tax is required to be collected, for which the
time limit for furnishing the return of income under sub-section (1) of
section 139 has expired and the aggregate of tax deducted at source
and tax collected at source in his case is rupees fifty thousand or more
in the said previous year:]
3853 [Provided that the specified person shall not include—
(i) a non-resident who does not have a permanent
establishment in India; or
(ii) a person who is not required to furnish the return of income
for the assessment year relevant to the said previous year
and is notified by the Central Government in the Official
Gazette in this behalf.]
Explanation.—For the purposes of this sub-section, the expression
207. Liability for payment of advance tax.—3854 [(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”.
[(2) The provisions of sub-section (1) shall not apply to an
3855
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 3856 [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:
3857
[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
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 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
3858 [* * *], 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.—3859 [(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 Not less than forty-five per cent of such
September advance tax, as reduced by the amount,
if any, paid in the earlier instalment.
On or before the 15th Not less than seventy-five per cent of
December such advance tax, as reduced by the
amount or amounts, if any, paid in the
earlier instalment or instalments.
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) 3860 [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 sub-section (5) of Section 215.
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
262 or Section 263 or Section 264, or an order of the Settlement
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
(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
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year in which it was payable, and credit therefor shall be given to the
assessee in the 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.
[(1-A) Where any notice of demand has been served upon an
3861
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 3862 [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
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:
[Provided further that where as a result of an order under
3863
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
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mentioned in the first notice of demand, referred to in sub-section

(1) and ending with the day on which the amount is paid:]
[Provided also] that in respect of any period commencing on
3864
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 3865
[Principal Chief Commissioner or Chief Commissioner] or 3866 [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 proceeding for the recovery of any amount
due from him:
[Provided that the order accepting or rejecting the
3867
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.]
[(2-B) Notwithstanding anything contained in sub-section (2),
3868
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.]
[(2-C) Notwithstanding anything contained in sub-section (2),
3869
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
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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
3870 [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 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
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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 3871 [Principal Chief Commissioner or Chief Commissioner] or
3872 [Principal Commissioner or Commissioner] who is authorised in this
behalf by the Board in pursuance of Section 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,
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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 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.
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(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
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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
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 3873 [Principal Chief Commissioner or Chief
Commissioner] or 3874 [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 3875 [corresponding law from a resident, or] a person
having any property in India, the Board may forward such certificate to
3876
[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
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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
3877
[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),
3878
[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.—3879 [(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;
(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 3880 [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) 3881 [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 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.—3882 [* * *]
[231. Faceless collection and recovery of tax.—(1) The Central
3883
Government may make a scheme, by notification in the Official Gazette,

for the purposes of issuance of certificate for deduction of income tax at
any lower rates or no deduction of income tax under Section 197, or
deeming a person to be an assessee in default under sub-section (1) of
Section 201 or sub-section (6-A) of Section 206-C, issuance of
certificate for lower collection of tax under sub-section (9) of Section
206-C or passing of order or amended order under sub-section (3) or
sub-section (4) of Section 210, or reduction or waiver of the amount of
interest paid or payable by an assessee under sub-section (2-A), or
extending the time for payment or allowing payment by instalment
under sub-section (3), or treating the assessee as not being in default
under sub-section (6) or sub-section (7) of Section 220, or levy of
penalty under Section 221, or drawing of certificate by the Tax
Recovery Officer under Section 222, or jurisdiction of Tax Recovery
Officer under Section 223, or stay of proceedings in pursuance of
certificate and amendment or cancellation thereof by the Tax Recovery
Officer under Section 225, or other modes of recovery under Section
226 or issuance of tax clearance certificate under Section 230 so as to
(c) introducing a team-based issuance of certificate for deduction
or collection of income tax at lower rate, or for no deduction, or
for deeming a person to be an assessee in default, or for
passing of an order or amended order, or extending the time
for payment, or allowing payment by instalment, or reduction
or waiver of interest, or for treating the assessee as not being
in default, or for levy of penalty or for drawing of certificate or
stay of proceedings in pursuance of certificate and amendment
or cancellation thereof, by, or jurisdiction of, Tax Recovery
Officer or other modes of recovery or issuance of tax clearance
certificate, with dynamic jurisdiction.
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March, 2022.
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) 3884 [or sub-section (8A)] 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 3885 [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,
[on the amount of the tax on the total income as determined under
3886
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;
3887
[(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;
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(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 3888 [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.
3889
[Explanation 2.—In this sub-section,—
(i) “tax on total income as determined under sub-section (1) of
section 143” shall not include the additional income-tax, if any,
payable under Section 140-B or section 143; and
(ii) tax on the total income determined under regular assessment
shall not include the additional income-tax payable under
Section 140-B.]
assessment is made for the first time under Section 147 3890 [or Section
153-A], the assessment so made shall be regarded as a regular
assessment for the purposes of this section.
3891
[* * *]
(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 3892 [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 3893 [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 3894 [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
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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
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—
prescribed form specifying the sum payable, and such notice of
(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 3895 [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 3896 [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.
[Explanation 1.—In this section, “assessed tax” means the tax on
3897
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,—
(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;
3898
[(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 specified territory outside India referred to in that
section;
(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 Section 115-JAA 3899 [or Section 115-JD].]
assessment is made for the first time under Section 147 3900 [or Section
153-A], the assessment so made shall be regarded as a regular
assessment for the purposes of this section.
3901
[Explanation 3.—In Explanation 1 and in sub-section (3),—
(i) “tax on total income as determined under sub-section (1) of
section 143” shall not include the additional income-tax, if any,
payable under Section 140-B or section 143; and
(ii) tax on the total income determined under such regular
assessment shall not include the additional income-tax payable
under Section 140-B.]
(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.
[(2-A)(a) where an application under sub-section (1) of Section
3902
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
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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.]
[(3) Where, as a result of an order of reassessment or re-
3903
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 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
263 or Section 264 3904 [* * *], the amount on which interest was
payable under sub-section (1) or sub-section (3) has been increased or
accordingly, and—
prescribed form specifying the sum payable and such notice of
234-C. Interest for deferment of advance tax.—3905 [(1) Where in any
financial year,—
3906 [(a) an assessee, other than 3907 [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;
3908
[(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) 3909 [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 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 3910 [Section 2; or],
-----------------------------------------------------------------------------------------------------------------------------------------------------------
3911
[(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 3912 [first time; or]]
3913 [(d) the amount of dividend income,]
and the assessee has paid the whole of the amount of tax
payable in respect of income referred to in clause (a) 3914 [or
clause (b) or clause (c) 3915 [or clause (d)]], as the case may
be, had such income been a part of the total income, as part
of the 3916 [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:
[Provided further that nothing contained in this sub-
3917
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:]
[Provided also that nothing contained in this sub-
3918
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.]
[Explanation 3920 [1].—In this section, “tax due on the
3919
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;
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(iii) 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;
(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 Section 115-JAA 3921 [or Section 115-
JD].]
[Explanation 2.— For the purposes of this sub-section,
3922
the term “dividend” shall have the meaning assigned to it in

clause (22) of Section 2, but shall not include sub-clause (e)
thereof.]
[234-D. Interest on excess refund.—(1) Subject to the other
3923
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 3924 [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
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.
[Explanation-1].—Where, in relation to an assessment year, an
3925
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.]
[Explanation 2.—For the removal of doubts, it is hereby declared
3926
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.]
[234-F. Fee for default in furnishing return of income.—3928 [(1)
3927
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 a fee, a sum of five thousand rupees:
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.]
(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.]
[234-G. Fee for default relating to statement or certificate.—(1)
3929
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).]
[234-H. Fee for default relating to intimation of Aadhaar number.
3930
—Without prejudice to the provisions of this Act, where a person is

required to intimate his Aadhaar number under sub-section (2) of
Section 139-AA and such person fails to do so on or before such date,
as may be presecribed, he shall be liable to pay such fee, as may be
prescribed, not exceeding one thousand rupees, at the time of making
intimation under sub-section (2) of Section 139-AA after the said date.]
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;
(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.
[(1-A) Where the value of fringe benefits provided or deemed to
3931
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 3932 [by furnishing return in
accordance with the provisions of Section 139].
(2) 3933
[* * *]
[239-A. Refund for denying liability to deduct tax in certain
3934
cases.—(1) Where under an agreement or other arrangement, in

writing, 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, may, within a period of thirty days from the date of
payment of such tax, file an application before the Assessing Officer for
refund of such tax in such form and such manner as may be prescribed.
(2) The Assessing Officer shall, by an order in writing, allow or reject
the application:
Provided that no application under sub-section (1) shall be rejected
unless an opportunity of being heard has been given to the applicant.
(3) The Assessing Officer may, before passing an order under sub-
section (2), make such inquiry as he considers necessary.
(4) The order under sub-section (2) shall be passed within six
months from the end of the month in which application under sub-
section (1) is received.]
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.—3935 [* * *]
3936 [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:]
[Provided that the provisions of this section shall not apply from
3937
the 1 day of April, 2023.]

st
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 3938 [Principal Chief
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 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
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:—
3940 [(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):
[Provided that where refund arises as a result of an
3941
order passed by the Assessing Officer in consequence of an

application made by the assessee under sub-section (20) of
Section 155, 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 such application to
the date on which the refund is granted;]
(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:
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
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of 3942 [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.
[(1-A) In a case where a refund arises as a result of giving effect
3943
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:]
[Provided
3944
that where proceedings for assessment or
reassessment are pending in respect of an assessee, in computing the
period for determining the additional interest payable to such assessee
under this sub-section, the period beginning from the date on which
such refund is withheld by the Assessing Officer in accordance with and
subject to provisions of sub-section (2) of Section 245 and ending with
the date on which such assessment or reassessment is made, shall be
excluded.]
[(1-B) Where refund of any amount becomes due to the deductor
3945
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 3946 [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 3947
[under sub-sections (1) or (1-A) 3948 [or (1-B)]], and where any
question arises as to the period to be excluded, it shall be decided by
the 3949 [Principal Chief Commissioner or Chief Commissioner] or 3950
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[Principal Commissioner or Commissioner] whose decision thereon shall

be final.
(3) Where, as a result of an order under 3951 [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
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
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.
April, 1989, and subsequent assessment years:
[Provided that in respect of assessment of fringe benefits, the
3952
provisions of this sub-section shall have effect as if for the figures

“1989”, the figures “2006” had been substituted.]
[245. Set off and withholding of refunds in certain cases.—(1)
3953
Where under any of the provisions of this Act, a refund becomes due or
is found to be due to any person, the Assessing Officer or Commissioner
or Principal Commissioner or Chief Commissioner or Principal Chief
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 sub-section.
(2) Where a part of the refund is set off under the provisions of sub-
section (1), or where no such amount is set off, and refund becomes
due to a person, and the Assessing Officer, having regard to the fact
that proceedings for assessment or reassessment are pending in the
case of such person, is of the opinion that the grant of 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
the Commissioner, as the case may be, withhold the refund up to the
date on which such assessment or reassessment is made.]
245-A. Definitions.—In this Chapter, unless the context otherwise
requires,—
(a) “Bench” means a Bench of the Settlement Commission;
-----------------------------------------------------------------------------------------------------------------------------------------------------------
3954
[(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:
3955
[* * *]
Explanation.—For the purposes of this clause—
3956
[(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) 3957 [* * *];
3958 [(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;]
3959
[(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 3960 [clause (i) or clause (iii) or clause (iii-a)],
shall be deemed to have commenced 3961 [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 3962 [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;
3963 [(da) “Interim Board” means the Interim Board for Settlement
constituted under Section 245-AA;]
(e) “Member” means a Member of the Settlement Commission,
and includes the Chairman and a Vice-Chairman;
3964
[(ea) “Member of the Interim Board” means a Member of the
Interim Board;
(eb) “pending application” means an application which was filed
under Section 245-C and which fulfils the following conditions,
namely:—
(i) it was not declared invalid under sub-section (2-C) of
Section 245-D; and
(ii) no order under sub-section (4) of Section 245-D was issued
on or before the 31st day of January, 2021 with respect to
such application;]
(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 3965 [and includes a Member who is senior amongst
the Members of a Bench].
[245-AA. Interim Boards for Settlement.—(1) The Central
3966
Government shall constitute one or more Interim Boards for

Settlement, as may be necessary, for the settlement of pending
applications.
(2) Every Interim Board shall consist of three members, each being
an officer of the rank of Chief Commissioner, as may be nominated by
the Board.
(3) If the Members of the Interim Board differ in opinion on any
point, the point shall be decided according to the opinion of the
majority.]
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.
[Provided that the Income-tax Settlement Commission so
3967
constituted shall cease to operate on or after the 1st day of February,

2021.]
(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.
of this section, 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.
[(5-A) Notwithstanding anything contained in the foregoing
3968
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 3969 [and the Special Bench shall sit at a place to
be fixed by the Chairman].
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 3970 [Principal Chief
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.
[Provided that the provisions of this section shall not apply on or
3972
after the 1st day of February, 2021.]

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.
[Provided that the provisions of this section shall not apply on or
3973
after the 1st day of February, 2021.]

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:
3974
[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,
3975
[(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 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.]
3976 [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, 3977 [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, 3978 [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 3979 [* * *],
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).

[(1-B) Where the income disclosed in the application relates to
3980
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) 3981
[* * *]
(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.
3982 [* * *]
(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.
[(4) An assessee shall, on the date on which he makes an
3983
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.]
[(5) No application shall be made under this section on or after
3984
the 1st day of February, 2021.]

245-D. Procedure on receipt of an application under Section 245-C.—
[(1) On receipt of an application under Section 245-C, the
3985
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.]
3986
[(1-A) * * *]
(2) A copy of every order under sub-section (1) shall be sent to the
applicant and to the 3987 [Principal Commissioner or Commissioner].
[(2-A) Where an application was made under Section 245-C
3988
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 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 3989 [Principal Commissioner or Commissioner],
and the 3990 [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 3991 [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 3992 [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 3993 [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 3994 [Principal Commissioner or Commissioner].
[Provided also that where in respect of an application, an order,
3995
which was required to be passed under this sub-section on or before

the 31st day of January, 2021, has not been passed on or before the
31st day of January, 2021, such application shall deemed to be valid.]
(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.]
3996
[(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 3997 [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 3998 [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 3999
[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 4000 [Principal Commissioner or
Commissioner] does not 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 4001
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[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 4002 [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 4003
[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 4004 [but before the 1st day of June, 2010], within
twelve months from the end of the month in which the
application was made.]
4005
[(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 4006 [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.

[(6-B) The Settlement Commission may, with a view to rectifying
4007
any mistake apparent from the record, 4008 [amend any order passed]
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 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.
[(9) On and from the 1st day of February, 2021, the provisions of
4009
sub-sections (1), (2), (2-B), (2-C), (3), (4), (4-A), (5), (6) and (6-B)
shall apply to pending applications allotted to Interim Board with the
following modifications, namely:—
(i) for the words “Settlement Commission”, wherever they occur,
-----------------------------------------------------------------------------------------------------------------------------------------------------------
the words “Interim Board” shall be substituted;

(ii) for the word “Bench”, the words “Interim Board” shall be
substituted;
(iii) for the purposes of this section, the date referred to in sub-
section (2) of Section 245-M shall be deemed to be date on
which the application was made under Section 245-C and
received by the Interim Board;
4010
[(iv) where the time-limit for amending any order or filing of
rectification application under sub-section (6-B) expires on or
after the 1st day of February, 2021, but before the 1st day of
February, 2022, such time-limit shall be extended to the 30th
day of September, 2023.]
(10) On and from the 1st day of February, 2021, the provisions of
sub-sections (6-A) and (7) shall have effect as if for the words
“Settlement Commission”, the words “Settlement Commission or
Interim Board of Settlement” had been substituted.
(11) The Central Government may by notification in the Official
Gazette, make a scheme, for the purposes of settlement in respect of
pending applications by the Interim Board, so as to impart greater
efficiency, transparency and accountability by—
(a) eliminating the interface between the Interim Board and the
assessee in the course of proceedings to the extent
(c) introducing a mechanism with dynamic jurisdiction.
(12) The Central Government may, for the purposes of giving effect
to the scheme made under sub-section (11), by notification in the
Official Gazette, direct that any of the provisions of this Act shall not
apply or shall apply with such exceptions, modifications and
adaptations as may be specified in the said notification: Provided that
no such direction shall be issued after the 31st day of March, 2023.
(13) Every notification issued under sub-section (11) and sub-
section (12) shall, as soon as may be after the notification is issued, be
laid before each House of Parliament.]
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 4011 [* * *].
[(3) On and from the 1st day of February, 2021, the power of the
4012
Settlement Commission under this section shall be exercised by the

Interim Board and the provisions of this section shall mutatis mutandis
apply to the Interim Board as they apply to the Settlement
Commission.]
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 a proceeding relates and the date of
application for settlement under Section 245-C exceeds nine years:
[Provided further that no proceeding shall be reopened by the
4013
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:
[Provided that where an application has been made under Section
4014
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.
4015 [(8) On and from the 1st day of February, 2021, the powers and
-----------------------------------------------------------------------------------------------------------------------------------------------------------
functions of the Settlement Commission under this section shall be

exercised or performed, by the Interim Board and all the provisions of
this section shall mutatis mutandis apply to the Interim Board as they
apply to the Settlement Commission.]
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 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.
[Provided further that on or after the 1st day of February, 2021,
4016
functions of the Settlement Commission under this section shall be

performed by the Interim Board and the provisions of this section shall
mutatis mutandis apply to Interim Board as they apply to the
Settlement Commission.]
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 4017 [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:
[Provided further that the Settlement Commission shall not grant
4018
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.
[(3) On and from the 1st day of February, 2021, the power of the
4019
Settlement Commission under this section shall be exercised by the

Interim Board and the provisions of this section shall mutatis mutandis
apply to the Interim Board as they apply to the Settlement
Commission.]
[245-HA.
4020 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
4021
[(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.
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;
4022
[(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.]
[245-HAA. Credit for tax paid in case of abatement of
4023
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 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.
[245-K.
4024
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, 4025 [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 4026 [or any related person shall not be subsequently
entitled] to make an application under Section 245-C]
4027 [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. Option to withdraw pending application.—(1) With
4028
respect to a pending application, the assessee who had filed such

application may, at his option, withdraw such application within a
period of three months from the date of commencement of the Finance
Act, 2021 and intimate the Assessing Officer, in the prescribed manner,
about such withdrawal.
(2) Where the option under sub-section (1) is not exercised by the
assessee within the time allowed under that sub-section, the pending
application shall be deemed to have been received by the Interim
Board on the date on which such application is allotted or transferred to
the Interim Board under sub-section (3).
(3) The Board may, by an order, allot any pending application to any
Interim Board and may also transfer, by an order, any pending
application from one Interim Board to another Interim Board.
(4) Where the pending application is allotted to an Interim Board
under sub-section (3) or transferred to another Interim Board
subsequently, all the records, documents or evidences, by whatever
name called, with the Settlement Commission shall be transferred to
such Interim Board and shall be deemed to be the records before it for
all purposes.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(5) Where the assessee exercises the option under sub-section (1) to
withdraw his application, the proceedings with respect to the
application shall abate on the date on which such application is
withdrawn and 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:
Provided that for the purposes of the time-limit under Sections 149,
153, 153-B, 154 and 155 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 re-assessment under this sub-section, the
period commencing on and from the date of the application to the
Settlement Commission under Section 245-C and ending with the date
referred to in this sub-section shall be excluded:
Provided further that the income-tax authority shall not be entitled
to use 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
proceedings before it:
Provided also that nothing contained in the first proviso shall apply
in relation to the material and other information collected, or results of
the inquiry held or evidence recorded by the Assessing Officer, or as the
case may be, other income-tax authority during the course of any other
proceeding under this Act irrespective of whether such material or other
information or results of the inquiry or evidence were also produced by
the assessee or the Assessing Officer before the Settlement
Commission.]
4029
[CHAPTER XIX-AA
DISPUTE RESOLUTION COMMITTEE IN CERTAIN CASES
245-MA. Dispute Resolution Committee.—(1) The Central
Government shall constitute, one or more Dispute Resolution
Committees, as may be necessary, in accordance with the rules made
under this Act, for dispute resolution in the case of such persons or
class of persons, as may be specified by the Board, who may opt for
dispute resolution under this Chapter in respect of dispute arising from
any variation in the specified order in his case and who fulfils the
specified conditions.
(2) The Dispute Resolution Committee, subject to such conditions,
as may be prescribed, shall have the powers to reduce or waive any
penalty imposable under this Act or grant immunity from prosecution
for any offence punishable under this Act in case of a person whose
dispute is resolved under this Chapter.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[(2-A) Notwithstanding anything contained in Section 144-C,

4030
upon receipt of the order of the Dispute Resolution Committee under

this section, the Assessing Officer shall,—
(a) in a case where the specified order is a draft of the proposed
order of assessment under sub-section (1) of Section 144-C,
pass an order of assessment, reassessment or recomputation;
or
(b) in any other case, modify the order of assessment,
reassessment or recomputation,
in conformity with the directions contained in the order of the Dispute
Resolution Committee within a period of one month from the end of the
month in which such order is received.]
(3) The Central Government may make a scheme, by notification in
the Official Gazette, for the purposes of dispute resolution under this
Chapter, so as to impart greater efficiency, transparency and
accountability by—
(a) eliminating the interface between the Dispute Resolution
Committee and the assessee in the course of dispute resolution
proceedings to the extent technologically feasible;
(c) introducing a dispute resolution system with dynamic
jurisdiction.
(4) The Central Government may, for the purposes of giving effect to
be specified in the said notification:
Provided that no such direction shall be issued after the 31st day of
March, 2023:
4031 [Provided further that the Central Government may amend any
direction, issued under this sub-section on or before the 31st day of

March, 2023, by notification in the Official Gazette.]
(5) Every notification issued under sub-sections (3) and (4) shall, as
soon as may be after the notification is issued, be laid before each
House of Parliament.
(a) “specified conditions” in relation to a person means a person
who fulfils the following conditions, namely:—
(I) where he is not a person,—
(A) in respect of whom an order of detention has been made
under the provisions of the Conservation of Foreign
Exchange and Prevention of Smuggling Activities Act,
-----------------------------------------------------------------------------------------------------------------------------------------------------------
1974 (52 of 1974):

Provided that—
(i) such order of detention, being an order to which the
provisions of Section 9 or Section 12-A of the said Act
do not apply, has been revoked on the report of the
Advisory Board under Section 8 of the said Act or
before the receipt of the report of the Advisory Board;
or
(ii) such order of detention being an order to which the
provisions of Section 9 of the said Act apply, has not
been revoked before the expiry of the time for, or on
the basis of, the review under sub-section (3) of
Section 9, or on the report of the Advisory Board under
Section 8, read with sub-section (2) of Section 9, of
the said Act; or
(iii) such order of detention, being an order to which the
provisions of Section 12-A of the said Act apply, has
not been revoked before the expiry of the time for, or
on the basis of, the first review under sub-section (3)
of the said section, or on the basis of the report of the
Advisory Board under Section 8, read with sub-section
(6) of Section 12-A, of the said Act; or
(iv) such order of detention has not been set aside by a
court of competent jurisdiction;
(B) in respect of whom prosecution for any offence
punishable under the provisions of the Indian Penal Code
(45 of 1860), the Unlawful Activities (Prevention) Act,
1967 (37 of 1967), the Narcotic Drugs and Psychotropic
Substances Act, 1985 (61 of 1985), the Prohibition of
Benami Transactions Act, 1988 (45 of 1988), the
Prevention of Corruption Act, 1988 (49 of 1988) or the
Prevention of Money-laundering Act, 2002 (15 of 2003)
has been instituted and he has been convicted of any
offence punishable under any of those Acts;
(C) in respect of whom prosecution has been initiated by an
income-tax authority for any offence punishable under the
provisions of this Act or the Indian Penal Code or for the
purpose of enforcement of any civil liability under any law
for the time being in force, or such person has been
convicted of any such offence consequent upon the
prosecution initiated by an Income-tax authority;
(D) who is notified under Section 3 of the Special Court
(Trial of Offences Relating to Transactions in Securities)
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Act, 1992 (27 of 1992);

(II) such other conditions, as may be prescribed.
(b) “specified order” means such order, including draft order, as
may be specified by the Board, and,—
(i) aggregate sum of variations proposed or made in such order
does not exceed ten lakh rupees;
(ii) such order is not based on search initiated under Section
132 or requisition under Section 132-A in the case of
assessee or any other person or survey under Section 133-A
or information received under an agreement referred to in
Section 90 or Section 90-A;
(iii) where return has been filed by the assessee for the
assessment year relevant to such order, total income as per
such return does not exceed fifty lakh rupees.]
245-N. Definitions.—In this Chapter, unless the context otherwise
requires,—
4032
[(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 4033 [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 4034 [such] non-resident; 4035 [or]
4036
[(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 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:
4037 [(iv) 4038 [* * *]]
4039
[(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:]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
4040 [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;]
4041
[(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) 4042
[* * *]
(C) 4043
[* * *]
(D) 4044
[* * *].]
(c) “application” means an application made to the Authority 4045
[or the Board for Advance Rulings] under sub-section (1) of
Section 245-Q;
4046
[(ca) “Board for Advance Rulings” means the Board for
Advance Rulings constituted by the Central Government under
Section 245-OB;]
(d) “Authority” means the Authority for Advance Rulings
constituted under Section 245-O;
(e) “Chairman” means the Chairman of the Authority;
4047 [(f) “Member” means a Member of the Authority and includes
the Chairman and Vice-Chairman 4048 [or a Member of the Board
for Advance Rulings];
(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”:
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[Provided that the Authority shall cease to act as an Authority

4049
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 under Section 28-EA of that
Act.]
[Provided further that the Authority so constituted shall cease
4050
to operate on and from such date as the Central Government may,

by notification in the Official Gazette, appoint.]
[(1-A) On and from the date of appointment of the Customs
4051
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.]
[(2) The Authority shall consist of a Chairman and such number
4052
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 4053 [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;
4054
[(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;]
4055
[(d) a law Member from the Indian Legal Service, who is, or is
qualified to be, an Additional Secretary to the Government of
India 4056 [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.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[(6-A) In the event of the occurrence of any vacancy in the office

4057
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:
[Provided that where the Authority is dealing with an
4058
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.]
[245-OA. Qualifications, terms and conditions of service of
4059
Chairman, 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-OB.
4060 Board for Advance Rulings.—(1) The Central
Government shall constitute one or more Boards for Advance Rulings,
as may be necessary, for giving advance rulings under this Chapter on
or after such date as the Central Government may, by notification in
the Official Gazette, appoint.
(2) The Board for Advance Rulings shall consist of two members,
each being an officer not below the rank of Chief Commissioner, as may
be nominated by the Board.]
245-P. Vacancies, etc., not to invalidate proceedings.—4061 [(1)] 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.
[(2) With effect from such date as the Central Government may,
4062
by notification in the Official Gazette, appoint, the provisions of this

section shall have effect as if for the word “Authority”, the words “Board
for Advance Rulings” had been substituted.]
245-Q. Application for advance ruling.—(1) An applicant desirous of
obtaining an advance ruling under this Chapter 4063 [4064 [* * *] 4065 [* *
*]] 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 4066 [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.
[(4) Where an application for advance ruling under this Chapter is
4067
made before such date as the Central Government may, by notification

in the Official Gazette, appoint, and in respect of which no order under
sub-section (2) of Section 245-R has been passed or no advance ruling
under sub-section (4) of Section 245-R has been pronounced before
such date, such application along with all the relevant records,
documents or material, by whatever name called, on the file of the
Authority shall be transferred to the Board for Advance Rulings and
shall be deemed to be the records before the Board for Advance Rulings
for all purposes.]
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 4068 [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 4069 [Principal Commissioner or Commissioner].
(2) The Authority may, after examining the application and the
records called for, by order, either allow or reject the application:
[Provided that the Authority shall not allow the application
4070
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 4071 [or in the case of an applicant falling in sub-
clause (iii-a) of clause (b) of Section 245-N] 4072 [4073 [* * *]]]:]
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 4074 [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 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 4075 [Principal Commissioner or
Commissioner], as soon as may be, after such pronouncement.
[(8) On and from such date as the Central Government may, by
4076
notification in the Official Gazette, appoint, the provisions of this

for Advance Rulings” had been substituted and the provisions of this
section shall apply mutatis mutandis to the Board for Advance Rulings
as they apply to the Authority.
(9) The Central Government may, by notification in the Official
Gazette, make a scheme for the purposes of giving advance rulings
under this Chapter by the Board for Advance Rulings, so as to impart
greater efficiency, transparency and accountability by—
(a) eliminating the interface between the Board for Advance
Rulings and the applicant in the course of proceedings to the
extent technologically feasible;
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(c) introducing a system with dynamic jurisdiction.

(10) The Central Government may, for the purposes of giving effect
to the scheme made under sub-section (9), by notification in the
Official Gazette, direct that any of the provisions of this Act shall not
no such direction shall be issued after the 31st day of March, 2023:
[Provided further that the Central Government may amend any
4077

[245-RR. Appellate authority not to proceed in certain cases.—No
4078
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 4079 [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 4080 [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.
[(3) Nothing contained in this section shall apply to any advance
4081
ruling pronounced under Section 245-R on or after such date as the

Central Government may, by notification in the Official Gazette,
appoint.]
245-T. Advance ruling to be void in certain circumstances.—(1)
Where the Authority finds, on a representation made to it by the 4082
[Principal Commissioner or Commissioner] or otherwise, that an
advance ruling pronounced 4083 [* * *] 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 4084 [Principal Commissioner or Commissioner].
[(3) With effect from such date as the Central Government may,
4085
by notification in the Official Gazette, appoint, the provisions of this

for Advance Rulings” had been substituted.]
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).
[(3) On and from such date as the Central Government may, by
4086
notification in the Official Gazette, appoint, the powers of the Authority

under this section shall be exercised by the Board for Advance Rulings
and the provisions of this section shall mutatis mutandis apply to the
Board for Advance Rulings as they apply to the Authority.]
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.
[Provided that nothing contained in this section shall apply on or
4087
after such date as the Central Government may, by notification in the

Official Gazette, appoint.]
[245-W. Appeal.—(1) The applicant, if he is aggrieved by any
4088
ruling pronounced or order passed by the Board for Advance Rulings or

the Assessing Officer, on the directions of the Principal Commissioner or
Commissioner, may appeal to the High Court against such ruling or
order of the Board of Advance Rulings within sixty days from the date
of the communication of that ruling or order, in such form and manner,
as may be prescribed:
Provided that where the High Court is satisfied, on an application
made by the appellant in this behalf, that the appellant was prevented
by sufficient cause from presenting the appeal within the period
specified in sub-section (1), it may grant further period of thirty days
for filing such appeal.
(2) The Central Government may make a scheme, by notification in
the Official Gazette, for the purposes of filing appeal to the High Court
under sub-section (1) by the Assessing Officer, so as to impart greater
-----------------------------------------------------------------------------------------------------------------------------------------------------------
efficiency, transparency and accountability by—

(a) optimising utilisation of the resources through economies of
(b) introducing a team-based mechanism with dynamic
jurisdiction.
be specified in the said notification: Provided that no such direction
shall be issued after the 31st day of March, 2023.
CHAPTER XX
4089
[A.— Appeals to the Joint Commissioner (Appeals) and
Commissioner (Appeals)]
[246. Appealable orders before Joint Commissioner (Appeals).—
4090
(1) Any assessee aggrieved by any of the following orders of an

Assessing Officer (below the rank of Joint Commissioner) may appeal to
the Joint Commissioner (Appeals) against—
(a) an order being an intimation under sub-section (1) 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;
(c) an order being an intimation under sub-section (1) of Section
200-A;
(d) an order under Section 201;
(e) an order being an intimation under sub-section (6-A) of
Section 206-C;
(f) an order under sub-section (1) of Section 206-CB;
(g) an order imposing a penalty under Chapter XXI; and
(h) an order under Section 154 or Section 155 amending any of
the orders mentioned in clauses (a) to (g):
Provided that no appeal shall be filed before the Joint
Commissioner (Appeals) if an order referred to in this sub-
section is passed by or with the prior approval of, an income-
tax authority above the rank of Deputy Commissioner.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(2) Where any appeal filed against an order referred to in sub-

section (1) is pending before the Commissioner (Appeals), the Board or
an income-tax authority so authorised by the Board in this regard, may
transfer such appeal and any matter arising out of or connected with
such appeal and which is so pending, to the Joint Commissioner
(Appeals) who may proceed with such appeal or matter, from the stage
at which it was before it was so transferred.
(3) Notwithstanding anything contained in sub-section (1) and sub-
section (2), the Board or an income-tax authority so authorised by the
Board in this regard, may transfer any appeal which is pending before a
Joint Commissioner (Appeals) and any matter arising out of or
connected with such appeal and which is so pending, to the
Commissioner (Appeals) who may proceed with such appeal or matter,
from the stage at which it was before it was so transferred.
(4) Where an appeal is transferred under the provisions of sub-
section (2) or sub-section (3), the appellant shall be given an
opportunity of being reheard.
(5) For the purposes of disposal of appeal by the Joint Commissioner
(Appeals), the Central Government may make a scheme, by notification
in the Official Gazette, so as to dispose of appeals in an expedient
manner with transparency and accountability, by eliminating the
interface between the Joint Commissioner (Appeals) and the appellant,
in the course of appellate proceedings to the extent technologically
feasible and direct that any of the provisions of this Act relating to
jurisdiction and procedure for disposal of appeals by the Joint
Commissioner (Appeals), shall not apply or shall apply with such
exceptions, modifications and adaptations as may be specified in the
notification.
(6) For the purposes of sub-section (1), the Board may specify that
the provisions of that sub-section shall not apply to any case or any
class of cases.
Explanation.—For the purposes of this section, “status”
means the category under which the assessee is assessed as
“individual”, “Hindu undivided family” and so on.]
[246-A. Appealable orders before 4092 [Principal Commissioner or
4091
Commissioner] (Appeals).—(1) 4093 [Any assessee or any deductor 4094

[or any collector] aggrieved] by any of the following orders (whether
made before or after the appointed day) may appeal to the 4095
[Principal Commissioner or Commissioner] (Appeals) against—
(a) an order 4096 [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 4097 [Section 143 or 4098 [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 4099 [under
sub-section (3) of Section 143 4100 [[except an order passed in
pursuance of directions of the Dispute Resolution Panel 4101 [or
an order referred to in sub-section (12) of Section 144-BA] 4102
[* * *]]]] 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;
4103 [(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 4104 [[except an order passed in pursuance of
directions of the Dispute Resolution Panel 4105 [or an order
referred to in sub-section (12) of Section 144-BA] 4106 [* * *]]]
or Section 150;
4107 [(ba) an order of assessment or reassessment 4108 [under
Section 153-A [except an order passed in pursuance of
directions of the 4109 [Dispute Resolution Panel 4110 [* * *]]]] 4111
[or an order referred to in sub-section (12) of Section 144-
BA];]
4112
[(bb) an order 4113
[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 4114 [4115 [* * *] 4116 [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;
4117
[(h-a) an order made under Section 201;]
4118
[(hb) an order made under sub-section (6-A) of Section 206-
C;]
(i) an order made under Section 237;
4119
[(ia) an order made under Section 239-A;]
(j) an order imposing a penalty under—
(A) Section 221; or
(B) Section 271, Section 271-A, 4120 [Section 271-AAA 4121 [,
Section 271-AAB]] Section 271-F 4122 [, 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;
4123
[(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 4124 [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.
[(1-A) Every appeal filed by an assessee in default against an
4125
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
[(1-B) Every appeal filed by an assessee in default against an
4126
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 4127 [Principal
Commissioner or Commissioner] (Appeals) and the 4128 [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.]
4129
[247. Appeal by partner.—* * *]
[248. Appeal by a person denying liability to deduct tax in certain
4130
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 4131 [Principal Commissioner or Commissioner]
(Appeals) for a declaration that no tax was deductible on such income:]
[Provided that no appeal shall be filed where tax is paid to the
4132
credit of the Central Government on or after the 1st day of April, 2022.]
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 4133 [and shall, in case of an appeal made to the 4134
[Principal Commissioner or Commissioner] (Appeals) on or after the 1st
day of October, 1998 4135 [or to the Joint Commissioner (Appeals) on or
after the 1st day of April, 2023,] 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
two hundred thousand rupees, one thousand rupees.]
4136
[(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,—
4137
[(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 4138 [excluded:]
[Provided further that where an application has been made
4139
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.
[(2-A) Notwithstanding anything contained in sub-section (2),
4140
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 4141 [* * *] 4142 [Principal Commissioner or 4143 [Joint
Commissioner (Appeals) or the 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 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, 4144 [* * *] 4145
[Principal Commissioner or 4146 [Joint Commissioner (Appeals)
or the 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 4147 [* * *] 4148 [Principal
Commissioner or 4149 [Joint
Commissioner (Appeals) or the
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.
Commissioner (Appeals) or the Commissioner (Appeals)]] shall have
the power to adjourn the hearing of the appeal from time to time.
Commissioner (Appeals) or the 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 4156 [* * *] 4157 [Principal Commissioner or 4158
[Joint Commissioner (Appeals) or the Commissioner (Appeals)]].
Commissioner (Appeals) or the 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 4162 [* * *] 4163
[Principal Commissioner or 4164 [Joint Commissioner (Appeals) or the
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 4165 [* * *] 4166 [Principal Commissioner or 4167
[Joint Commissioner (Appeals) or the 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.
[(6-A) In every appeal, the Joint Commissioner (Appeals) or the
4168
Commissioner (Appeals), as the case may be, 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) or transferred to him under sub-section (2) or sub-section
(3) of Section 246 or filed before him under sub-section (1) of Section
246-A, as the case may be.]
[(6-B) The Central Government may make a scheme, by
4169
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;
(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:
March, 2022.
4170

(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 Parliament.]
(7) On the disposal of the appeal, the 4171 [* * *] 4172 [Principal
Commissioner or 4173 [Joint Commissioner (Appeals) or the
Commissioner (Appeals)]] shall communicate the order passed by him
to the assessee and to the 4174 [Principal Chief Commissioner or Chief
Commissioner] or 4175 [Principal Commissioner or Commissioner].
251. 4176 [Powers of the Joint Commissioner (Appeals) or the
Commissioner (Appeals)].—(1) In disposing of an appeal, the 4177 [* *
*] 4178 [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; 4179 [* * *]
4180 [(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.
[(1-A) In disposing of an appeal,
4181
the Joint 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;
(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.]
Commissioner (Appeals) or the Commissioner (Appeals), as the case
may be,]] 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 4185 [an appeal, the Joint Commissioner
(Appeals) or the 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 4186
[raised before the Joint Commissioner (Appeals) or the Commissioner
(Appeals), as the case may be,] 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 4187 [Indian] Legal Service and has held a post in Grade
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[II] of that Service or any equivalent or higher post for at least three
4188
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 accountant, or who has
been a member of the Indian Income Tax Service, Group A and has
held the post of 4189 [Additional] 4190 [Principal Commissioner or
Commissioner] of Income Tax or any equivalent or higher post for at
least three years.
4191
[(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) 4192 [* * *] 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) 4193
[* * *]
(5) The [* * *] Vice-President shall exercise such of the powers
4194
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.
[252-A. Qualifications, terms and conditions of service of
4195
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 4196 [the Tribunal Reforms Act, 2021, shall be governed by the

provisions of Chapter II of the said 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) 4197
[before the 1st day of October, 1998] or, as the case may be, a
4198
[Principal Commissioner or Commissioner] (Appeals) under
Section 154, Section 250, 4199 [Section 270-A,] Section 271,
Section 271-A 4200 [Section 271-AAB, Section 271-AAC, Section
271-AAD,] 4201 [, Section 271-J] or Section 272-A; or
4202
[(aa) an order passed by a Joint Commissioner (Appeals)
under Section 154, Section 250, Section 270-A, Section 271,
Section 271-A, Section 271-AAC, Section 271-AAD or Section
271-J; 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]
4203
[(ba) an order passed by an Assessing Officer under sub-
section (1) of Section 115-VZC;or]
4204
[(c) an order passed by,—
(i) a Principal Commissioner or Commissioner under Section 12
-AA or Section 12-AB or under clause (vi) of sub-section (5)
of Section 80-G or under Section 263 or under Section 270-
A or under Section 271 or under Section 272-A or an order
passed by him under Section 154 amending any such order;
or
(ii) a Principal Chief Commissioner or Chief Commissioner or a
Principal Director General or Director General or a Principal
Director or Director under Section 263 or under Section 272-
A or an order passed by him under Section 154 amending
any such order; or]
4205
[(d) an order passed by an Assessing Officer under sub-section
(3) of Section 143 or 4206 [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.]

4207 [(e) 4208 [* * *];]
4209
[(e) an order passed by an Assessing Officer under sub-section
(3) of Section 143 or Section 147 or Section 153-A or Section
153-C with the approval of the 4210 [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.]
4211
[(f) an order passed by the prescribed authority under 4212 [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 4213 [Principal Commissioner or Commissioner] may, if he
objects to any order passed by a Deputy 4214 [the Joint Commissioner
(Appeals) or the Commissioner (Appeals)] 4215 [before the 1st day of
October, 1998] or, as the case may be, a 4216 [Principal Commissioner or
under Section 154 or Section 250, direct the Assessing Officer to appeal
to the Appellate Tribunal against the order.
(2-A) 4218
[* * *]
(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 4219
[Principal Commissioner or Commissioner], as the case may be:
[Provided that in respect of any appeal under clause (b) of sub-
4220
section (1), this sub-section shall have effect as if for the words “sixty
days”, the words “thirty days” had been substituted.]
(3-A) 4221
[* * *]
[(4) The Assessing Officer or the assessee, as the case may be,
4222
on receipt of notice that an appeal 4223 [against an order], 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 4224 [any part of such order], 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.
[(6) An appeal to the Appellate Tribunal shall be in the prescribed
4225
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
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
two hundred thousand rupees, one per cent of the assessed
income, subject to a maximum of ten thousand rupees:
4226 [(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.]
[Provided that no fee shall be payable in the case of an appeal
4227
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).]
(7) An application for stay of demand shall be accompanied by a fee
of five hundred rupees.]
[(8) The Central Government may make a scheme, by notification
4228
in the Official Gazette, for the purposes of appeal to the Appellate

Tribunal under sub-section (2), so as to impart greater efficiency,
transparency and accountability by—
(a) optimising utilisation of the resources through economies of
(b) introducing a team-based mechanism for appeal to the
Appellate Tribunal, with dynamic jurisdiction.
March, 4229 [2024].
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 4230 [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:
[Provided further that any application filed by the assessee
4231
in this sub-section on or after the 1st day of October, 1998, shall be

accompanied by a fee of fifty rupees.]
[(2-A) In every appeal, the Appellate Tribunal, where it is
4232
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) 4233 [or sub-section (2)] 4234 [* * *] of Section
253:
[Provided that the Appellate Tribunal may, after considering
4235
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 4236 [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:
[Provided further that no extension of stay shall be granted by
4237
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.]
[Provided also that if such appeal is not so disposed of within
4238
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 4239 [* * *] 4240 [Principal
Commissioner or Commissioner].
(4) 4241 [Save as provided in the National Tax Tribunal Act, 2005]
orders passed by the Appellate Tribunal on appeal shall be final.
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 4242 [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]
4243
in the Official Gazette, for the purposes of disposal of appeals by the

Appellate Tribunal so as to impart greater efficiency, transparency and
(a) eliminating the interface between the Appellate Tribunal and
parties to the appeal in the course of appellate proceedings to
the extent technologically feasible;
(b) optimizing utilisation of the resources through economies of
(c) introducing an appellate system with dynamic jurisdiction.
Gazette, direct that any of the provisions of this Act shall not apply to
such scheme or shall apply with such exceptions, modifications and
no such direction shall be issued after the 31st day of March, 4244
[2024].
257. Statement of cases to Supreme Court in certain cases.—If, on
an application made 4245 [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.—4246 [* * *]
259. Case before High Court to be heard by not less than two
judges.—4247 [* * *]
[260. Effect to the decisions of Supreme Court and of the
4248
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.
(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 4249
[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) 4250
[The 4251
[Principal Chief Commissioner or Chief
Commissioner] or the 4252 [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 4253 [received by the
assessee or the 4254 [Principal Chief Commissioner or Chief
Commissioner] or 4255 [Principal Commissioner or
Commissioner]];
(b) 4256 [* * *]
(c) in the form of a memorandum of appeal precisely stating
therein the substantial question of law involved.
[(2-A) The High Court may admit an appeal after the expiry of
4257
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).
[(7) Save as otherwise provided in this Act, the provisions of the
4258
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 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 4259 [before the
establishment of the National Tax Tribunal] on a reference made under
Section 256 4260 [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 4261 [4262
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 4263 [or the Transfer Pricing
Officer, as the case may be,] 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, 4264 [including,—
(i) an order enhancing or modifying the assessment or cancelling
the assessment and directing a fresh assessment; or
(ii) an order modifying the order under Section 92-CA; or
(iii) an order cancelling the order under Section 92-CA and
directing a fresh order under the said section.]
[Explanation 1].—For the removal of doubts, it is hereby declared
4265
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 4266 [or the Transfer Pricing Officer, as
the case may be,] 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 4267 [or the Transfer Pricing Officer, as the
case may be,] conferred on, or assigned to, him under the
orders or directions issued by the Board or by the 4268
[Principal Chief Commissioner or Chief Commissioner] or 4269
[Principal Director General or Director General] or
Commissioner authorised by the Board in this behalf under
Section 120;
4270
[(iii) an order under Section 92-CA by the Transfer Pricing
Officer;]
(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 4271 [Principal 4272
[Chief Commissioner or Chief Commissioner or Principal]
Commissioner or Commissioner];
(c) where any order referred to in this sub-section and passed by
-----------------------------------------------------------------------------------------------------------------------------------------------------------
the Assessing Officer 4273 [or the Transfer Pricing Officer, as the
case may be,] had been the subject-matter of any appeal filed
on or before or after the 1st day of June, 1988, the powers of
the 4274 [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.
[Explanation 2.— For the purposes of this section, it is hereby
4275
declared that an order passed by the Assessing Officer 4276 [or the
Transfer Pricing Officer, as the case may be,] shall be deemed to be
erroneous in so far as it is prejudicial to the interests of the revenue, if,
in the opinion of the Principal 4277 [Chief Commissioner or Chief
Commissioner or 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.]
[Explanation 3.—For the purposes of this section, “Transfer
4278
Pricing Officer” shall have the same meaning as assigned to it in the

Explanation to Section 92-CA.]
(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,
4279
[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 4280 [Principal 4281 [Chief Commissioner or Chief
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Commissioner or 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 4282 [Principal 4283 [Chief Commissioner or Chief Commissioner
or 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 4284 [Principal 4285 [Chief Commissioner or Chief
Commissioner or 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 4286 [Principal 4287 [Chief Commissioner or Chief Commissioner
or 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 4288 [Principal Commissioner
or 4289 [the Joint Commissioner (Appeals) or the 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 4290 [Principal
Commissioner or 4291 [the Joint Commissioner (Appeals) or the
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 4292 [Principal Commissioner or 4293 [the Joint Commissioner
(Appeals) or the Commissioner (Appeals)] or to the Appellate
Tribunal.
(5) Every application by an assessee for revision under this section
shall be accompanied by a fee of 4294 [five hundred rupees].
4295 [(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.
-----------------------------------------------------------------------------------------------------------------------------------------------------------

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, 4296 [National Tax Tribunal,] the High
Court or the Supreme Court.]
Explanation 1.—An order by the 4297 [Principal 4298 [Chief
Commissioner or Chief Commissioner or 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 4299 [Principal 4300 [Chief Commissioner or Chief
Commissioner or Principal] Commissioner or Commissioner].
[264-A. Faceless revision of orders.—(1) The Central Government
4301
may make a scheme, by notification in the Official Gazette, for the

purposes of revision of orders under Section 263 or Section 264, so as
to impart greater efficiency, transparency and accountability by—
(c) introducing a team-based revision of orders, with dynamic
jurisdiction.
March, 2022.
before each House of Parliament.
264-B. Faceless effects of orders.—(1) The Central Government may
make a scheme, by notification in the Official Gazette, for the purposes
of giving effect to an order under Sections 250, 254, 260, 262, 263 or
Section 264, so as to impart greater efficiency, transparency and
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(c) introducing a team-based giving of effect to orders, with
dynamic jurisdiction.
March, 2022.
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.
[267. Amendment of assessment on appeal.—Where as a result
4302
of an appeal under Section 246 4303 [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 4304 [* * *] 4305
[Principal Commissioner or 4306 [the Joint Commissioner (Appeals) or the
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 4307 [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.
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[268-A. Filing of appeal or application for reference by income tax

4308
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—
(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) 4309 [* * *]
(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
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Court of Punjab and Haryana;

(vi) in relation to the Union Territories of Dadra and Nagar Haveli
and 4310 [* * *] 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,—
consists of premium only, the amount of premium as
specified in the instrument of 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 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
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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
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
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
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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 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
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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),
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
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(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
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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 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
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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;
(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
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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 4311 [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, 4312 [Principal Commissioner or

Commissioner], in relation to a competent authority, means such 4313
[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
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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 to the appellant and 4314 [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 4315 [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
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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.
(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,
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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
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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 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 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
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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 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 4316
[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:
269-O. Appearance by authorised representative or registered
valuer.—Any person who is entitled or required to attend before a
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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 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.
[269-SS. Mode of taking or accepting certain loans, deposits and
4317
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 4318
[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),
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
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.
[Provided also that the provisions of this section
4319
shall have effect, as if for the words “twenty thousand

rupees”, the words “two lakh rupees” had been
substituted in the case of any deposit or loan where,—
(a) such deposit is accepted by a primary agricultural
credit society or a primary co-operative agricultural
and rural development bank from its member; or
(b) such loan is taken from a primary agricultural credit
society or a primary co-operative agricultural and rural
development bank by its member.]
(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;
4320 [(ii) “co-operative bank”, “primary agricultural credit society”
and “primary co-operative agricultural and rural development
bank” shall have the meanings respectively assigned to them
in the Explanation to sub-section (4) of Section 80-P;]
(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
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property, whether or not the transfer takes place.]

[269-ST. Mode of undertaking transactions.—No person shall
4321
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 4322 [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
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.]
[269-SU. Acceptance of payment through prescribed electronic
4323
modes.—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.]
4324 [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 4325 [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 4326 [or paid the specified advance,] 4327 [or by use of electronic
clearing system through a 4328 [bank account or through such other
electronic mode as may be prescribed]] if—
(a) the amount of the loan or deposit 4329 [or specified advance]
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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, 4330 [or]
4331 [(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:
[Provided further that nothing contained in this section shall
4332
apply to repayment of any loan or deposit 4333 [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
Government may, for reasons to be recorded in writing, notify
in this behalf in the Official Gazette.]
[Provided also that the provisions of this section shall have effect,
4334
as if for the words “twenty thousand rupees”, the words “two lakh
rupees” had been substituted in the case of any deposit or loan where,
—
(a) such deposit is paid by a primary agricultural credit society or
a primary co-operative agricultural and rural development bank
to its member; or
(b) such loan is repaid to a primary agricultural credit society or a
primary co-operative agricultural and rural development bank
by its member.]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(i) “banking company” shall have the meaning assigned to it in

clause (i) of the Explanation to Section 269-SS;
4335 [(ii) “co-operative bank”, “primary agricultural credit society”
and “primary co-operative agricultural and rural development
bank” shall have the meanings respectively assigned to them
in Explanation to sub-section (4) of Section 80-P;]
(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.]
4336 [(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 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,—
thing or things would ordinarily fetch on sale in the
open market on the date on which the agreement for
-----------------------------------------------------------------------------------------------------------------------------------------------------------
transfer is made;
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,—
consists of premium only, the amount of premium as
specified in the agreement for 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,
such transfer is 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
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
-----------------------------------------------------------------------------------------------------------------------------------------------------------

ordinarily fetch on sale in the open market on the date on
which the agreement for transfer is made, and such sum,
such transfer is 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 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 4337 [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;
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(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, 4338 [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 4339 [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.
[(4) Where it is found that the statement referred to in sub-
4340
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
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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) 4341 [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, 4342 [* * *] 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:
[Provided further that the statement referred to in Section 269-
4343
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:]
[Provided also that the period of limitation referred to in the
4344
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:]
[Provided also] that in case where the statement referred to in
4345
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
4346 [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:
[Provided also that the period of limitation referred to in the
4347
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.]
[(1-A) Before making an order under sub-section (1), the
4348
appropriate authority shall give a reasonable opportunity of being heard

to the transferor, the person in occupation of the immovable property if
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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 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 4349 [in terms of
the agreement for transfer referred to in sub-section (1) of Section 269
-UC]:
[Provided that where the appropriate authority, after giving an
4350
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:
[Provided that the provisions of this sub-section and sub-
4351
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 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-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 4352 [Principal Chief Commissioner or Chief Commissioner] or 4353
[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:
reasonable opportunity of being 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
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.
[269-UP. Chapter not to apply where transfer of immovable
4354
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]
[270-A. Penalty for under-reporting and misreporting of income.
4355
—(1) The Assessing Officer or 4356 [the Joint Commissioner (Appeals) 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 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 4357 [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 4358 [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 4359 [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)
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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;
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 4360 [the Joint
Commissioner (Appeals) 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 4361 [the Joint
Commissioner (Appeals) 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 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, 4362 [the Joint
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Commissioner (Appeals) or the Commissioner (Appeals)], the

Commissioner or the Principal Commissioner, as the case may be.]
[270-AA. Immunity from imposition of penalty, etc.—(1) An
4363
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 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 4364 [Section 246 or] 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 4365 [* * *] 4366 [Principal
Commissioner (Appeals)]] 4368 [or the 4369 [Principal Commissioner or
Commissioner]] in the course of any proceedings under this Act, is
satisfied that any person—
(a) [omitted;]
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(b) has failed to comply with a notice 4370 [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 4371 [, or],
4372
[(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), 4373 [in addition to tax, if
any, payable] by him, 4374 [a sum of ten thousand rupees] for
each such failure;
(iii) in the cases referred to in clause (c) 4375 [or clause (d)], 4376 [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 4377 [or fringe benefits]
or the furnishing of inaccurate particulars of such income 4378 [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,—
(A) such person fails to offer an explanation or offers an
explanation which is found by the Assessing Officer or the 4379
[* * *] 4380 [Principal Commissioner or 4381 [the Joint
Commissioner (Appeals) or the Commissioner (Appeals)]] 4382
[or the 4383 [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 4384 [* * *] 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 4385 [* * *] 4386 [Principal Commissioner or 4387 [the Joint
Commissioner (Appeals) or the 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.
[Explanation 4.— For the purposes of clause (iii) of this sub-
4388
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 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 4389 [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 4390 [Principal
Chief Commissioner or Chief
Commissioner] or 4391 [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.
[Explanation 5-A.—Where, in the course of a search initiated
4392
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.
[Explanation 7.—Where in the case of an assessee who has
4393
entered into an 4394 [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 4395 [Principal
Commissioner (Appeals)]] 4397 [or the 4398 [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.
[(1-B) Where any amount is added or disallowed in computing
4399
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-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 4400 [* * *] 4401 [Principal
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.
their amendment by the Direct Tax Laws (Amendment) Act, 1989 shall
apply to and in relation to any assessment for the assessment year
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.
[(6) Any reference in this section to the income shall be
4403
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.]
[(7) The provisions of this section shall not apply to and in
4404
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 4405 [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 4406 [* * *] 4407
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[Principal Commissioner or 4408 [the Joint Commissioner (Appeals) or the

Commissioner (Appeals)]] may direct that such person shall pay, by
way of penalty, 4409 [a sum of twenty-five thousand rupees].
[271-AA. Penalty for failure to keep and maintain information and
4410
document, etc., in respect of certain transactions.—4411 [(1)] Without

prejudice to the provisions of 4412 [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 4413 [international transaction or specified domestic
transaction] entered into by such person.]
[(2) If any person fails to furnish the information and the
4414
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.]
4415 [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 4416
[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 4417 [Principal Chief
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.]
[271-AAB. Penalty where search has been initiated.—(1) The
4419
Assessing Officer 4420 [or

the Commissioner (Appeals)] 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 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 4421 [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 4422 [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,
(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 4423 [under
section 148 or under Section 153-A, as the case may be,] 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 4424 [Principal Chief
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 4426 [or 4427 [the
Joint Commissioner (Appeals) or the
Commissioner (Appeals)]] 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,
[271-AAD. Penalty for false entry, etc., in books of account.—(1)
4428
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 4429 [or 4430 [the Joint Commissioner (Appeals) or
the Commissioner (Appeals)],] 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 4431 [or 4432 [the Joint Commissioner (Appeals) or the
Commissioner (Appeals)]]] 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-AAE. Benefits to related persons.—Without prejudice to any
4433
other provision of this Chapter, if during any proceedings under this

Act, it is found that a person, being any fund or institution referred to
in sub-clause (iv) or any trust or institution referred to in sub-clause
(v) or any university or other educational institution referred to in sub-
clause (vi) or any hospital or other medical institution referred to in sub
-clause (via) of clause (23C) of section 10, or any trust or institution
referred to in section 11 has violated the provisions of the twenty-first
proviso to clause (23C) of section 10, or clause (c) of sub-section (1) of
section 13, as the case may be, the Assessing Officer may direct that
such person shall pay by way of penalty—
(a) a sum equal to the aggregate amount of income applied,
directly or indirectly, by such person, for the benefit of any
person referred to in sub-section (3) of section 13, where the
violation is noticed for the first time during any previous year;
and
(b) a sum equal to two hundred per cent. of the aggregate
amount of income of such person applied, directly or indirectly,
by that person, for the benefit of any person referred to in sub-
section (3) of section 13, where violation is noticed again in
any subsequent previous year.]
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 4434 [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
the gross receipts in profession, in such previous year or years or a sum
of 4435 [one hundred fifty thousand rupees], whichever is less.
[271-BA. Penalty for failure to furnish report under Section 92-E.
4436
—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.—4437 [(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) 4438 [pay or ensure payment of, the whole] or any part of the
tax as required by or under,—
(i) sub-section (2) of Section 115-O; 4439
[* * *]
(ii) the 4440
[* * *] proviso to Section 194-B;
4441
[(iii) the first proviso to sub-section (1) of Section 194-R; or
(iv) the proviso to sub-section (1) of Section 194-S; or]
4442
[(v) sub-section (2) of Section 194-BA,]
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 4443 [or
ensure payment of,] as aforesaid.]
(2) Any penalty imposable under sub-section (1) shall be imposed
by the Joint Commissioner.
4444
[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.
by the Joint Commissioner.]
271-D. Penalty for failure to comply with the provisions of Section
269-SS.—4445 [(1) If a person takes or accepts any loan or deposit 4446
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[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.
4447
[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.
[271-DB. Penalty for failure to comply with provisions of Section
4448
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.
(2) Any penalty imposable under sub-section (1) shall be imposed by
the Joint Commissioner of Income-tax.]
271-E. Penalty for failure to comply with the provisions of Section
269-T.—4449 [(1) If a person repays any 4450 [loan or] deposit 4451 [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 4452 [loan or]
deposit so repaid.
[271-F. Penalty for failure to furnish return of income.—If a
4453
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:]
[Provided that nothing contained in this section shall apply to
4454
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.]
[271-FA. Penalty for failure to furnish 4456 [statement of financial
4455
transaction or reportable account].—If a person who is required to

-----------------------------------------------------------------------------------------------------------------------------------------------------------
furnish 4457 [a statement of financial transaction or reportable account]

under sub-section (1) of Section 285-BA, fails to furnish such 4458
[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 4459 [five
hundred rupees] for every day during which such failure continues:
Provided that where such person fails to furnish the 4460
[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 4461 [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 4462
[statement] expires.]
[271-FAA. Penalty for furnishing inaccurate statement of financial
4463
transaction or reportable account.—4464 [(1)] If a person referred to in

4465 [* * *] 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 under sub-section (1) of
4466
Section 285-BA may direct that such person shall pay, by way of
penalty, a sum of fifty thousand rupees.
(2) Where in the case of a person, referred to in clause (k) of sub-
section (1) of Section 285-BA, who is required to furnish a statement
under that section (herein referred to as the reporting financial
institution) provides inaccurate information in the statement and the
inaccuracy in such statement is due to false or inaccurate information
furnished by the holder or holders of the relevant reportable account or
accounts, the prescribed income-tax authority under sub-section (1) of
Section 285-BA, shall direct that the reporting financial institution
shall, in addition to the penalty under sub-section (1), if any, pay a
sum of five thousand rupees for every inaccurate reportable account
and the reporting financial institution shall be entitled to recover the
-----------------------------------------------------------------------------------------------------------------------------------------------------------
sum so paid on behalf of such reportable account holder, or to retain

out of any moneys that may be in its possession, or may come to it
from every such reportable account holder, an amount equal to the sum
so paid.]]
[271-FAB. Penalty for failure to furnish statement or information
4467
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 penalty, a sum of five hundred thousand rupees.]
[271-FB. Penalty for failure to furnish return of fringe benefits.—If
4468
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.]
[271-G. Penalty for failure to furnish information or document
4469
under Section 92-D.—If any person who has entered into an 4470
[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 4471 [or the Transfer Pricing
Officer as referred to in Section 92-CA] or the 4472 [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 4473 [international transaction or specified domestic transaction]
for each such failure.]
[271-GA. Penalty for failure to furnish information or document
4474
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.”.
[271-GB. Penalty for failure to furnish report or for furnishing
4475
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 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.]
[271-H. Penalty for failure to furnish statements, etc..—(1)
4476
Without prejudice to the provisions of the Act, 4477 [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.
of this section, 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.]
[271-I. Penalty for failure to furnish information or furnishing
4478
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.]
[271-J. Penalty for furnishing incorrect information in reports or
4479
certificates.—Without prejudice to the provisions of this Act, where the

Assessing Officer or 4480 [the Joint Commissioner (Appeals) 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 4481 [the Joint Commissioner (Appeals) 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-section (2) of Section 288;

(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 Wealth-tax Act, 1957 (27 of 1957).]
[271-K. Penalty for failure to furnish statements, etc.—Without
4482
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
4483 [(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, 4484
[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 4485 [* * *]
[or Section 206-C]4486 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
4487
[(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 4488
[or
Section 206-C]; or
(h) to deduct and pay tax as required by sub-section (2) of
Section 226;
4489
[(i) to furnish a statement as required by sub-section (2-C) of
Section 192;]
4490
[(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,]
4491
[(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,]
4492
[(l) to deliver or cause to be delivered the 4493 [statements]
within the time specified in sub-section (1) of Section 206-A,]
4494
[(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 4495 [five hundred rupees]]
4496 for every day during which the failure continues:
[Provided that the amount of penalty for failures in relation to

4497
4498
[a declaration mentioned in Section 197-A, a certificate as
required by Section 203 and] returns under Sections 206 and 206-C
4499
[and 4500 [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:]
-----------------------------------------------------------------------------------------------------------------------------------------------------------
[Provided further that no penalty shall be levied under this

4501
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;
4502
[(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 4503
[Principal Chief Commissioner or Chief Commissioner] or 4504
[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 4505
[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 sub-
section (1) of Section 131.
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.
[272-B. Penalty for failure to comply with the provisions of
4506
Section 139-A.—(1) If a person fails to comply with the provisions of

Section 139-A, the Assessing 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 4507 [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) 4508 [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 4509 [ten thousand rupees for each
such default].
[(2-A) If a person, who is required to quote his permanent
4510
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 4511 [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, 4512 [a sum of ten thousand rupees].
[(1-A) If a person who is required to quote his “tax deduction
4513
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) 4514 [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.
[272-BBB. Penalty for failure to comply with the provisions of
4515
Section 206-CA.—(1) If a person fails to comply 4516 [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 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:
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
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,
whichever is less;
(i-a) which, in the case referred to in clause (aa), shall not be less
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
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:
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 4517 [Principal Chief
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
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 4519 [4520 [Principal
Chief Commissioner or Chief Commissioner] or] 4521 [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 4522 [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 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 4523 [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 4524 [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 4525 [the 4526 [Principal Commissioner or Commissioner] except
with the previous approval of the 4527 [Principal Chief Commissioner or
Chief Commissioner] or 4528 [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:
4529 [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 4530 [* * *] 4531 [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 4532
[the 4533 [Principal Commissioner or Commissioner] except with the
previous approval of the 4534 [Principal Chief Commissioner or Chief
Commissioner] or 4535 [Principal Director General or Director General], as
the case may be].
[(4-A) The order under sub-section (4), either accepting or
4536
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
Provided further 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.]
(5) Every order made under this section shall be final and shall not
be called into question by any court or any other authority.
their amendment by the Direct Tax Laws (Amendment) Act, 1989 shall
apply to and in relation to any assessment for the assessment year
-----------------------------------------------------------------------------------------------------------------------------------------------------------
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.
[(7) Notwithstanding anything contained in sub-section (6), the
4537
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 4538
[Principal Commissioner or Commissioner] and instead of the previous
approval of the Board, the 4539 [Principal
Commissioner or
Commissioner] shall obtain the previous approval of the 4540 [Principal
Chief Commissioner or Chief Commissioner] or 4541 [Principal Director
General or Director General], as the case may be, while dealing with
such case.]
[273-AA. Power of 4543 [Principal Commissioner or Commissioner]
4542
to grant immunity from penalty.—(1) A person may make an

application to the 4544 [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 4545 [Principal Commissioner or
Commissioner] under sub-section (1) shall not be made after the
imposition of penalty after abatement.
(3) The 4546 [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.
[(3-A) The order under sub-section (3), either accepting or
4547
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
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Provided further 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.]
(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 4548 [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 4549 [Section 271-AA], Section 271-B 4550
[Section 271-BA], 4551 [Section 271-BB, 4552 [Section 271-C, Section 271
-CA], Section 271-D, Section 271-E, 4553 [Section 271-F,] 4554 [Section
271-FA 4555 [, 4556 [Section 271-FAB, Section 271-FB, Section 271-G,
Section 271-GA, 4557 [Section 271-GB,]]] 4558 [Section 271-H,] 4559
[Section 271-I,] 4560 [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 4561 [Section 272-B or] 4562 [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
(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.
[(2-A) The Central Government may make a scheme, by
4563
notification in the Official Gazette, for the purposes of imposing penalty

-----------------------------------------------------------------------------------------------------------------------------------------------------------
under this Chapter so as to impart greater efficiency, transparency and

(a) eliminating the interface between the 4564 [income tax
authority and the assessee or any other person] to the extent
(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
adaptations as may be specified in the notification:
March, 2022.
4565

(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 of an appeal to the 4566 [* * *] 4567 [Principal
Commissioner (Appeals)]] under Section 246 4569 [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 4570 [* * *] 4571
[Principal Commissioner or 4572 [the Joint Commissioner
(Appeals) or the Commissioner (Appeals)]] or, as the case may
be, the Appellate Tribunal is received by the 4573 [Principal Chief
Commissioner or Chief Commissioner] or 4574
[Principal
Commissioner or Commissioner] whichever period expires
-----------------------------------------------------------------------------------------------------------------------------------------------------------
later:
4575[Provided that in a case where the relevant assessment or
other order is the subject-matter of an appeal to the 4576
[Principal Commissioner or Commissioner] (Appeals) under
Section 246 or Section 246-A, and the 4577[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 4578[Principal Commissioner or
Commissioner] (Appeals) is received by the 4579[Principal Chief
Commissioner or Chief Commissioner] or 4580[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 4581 [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.
[(1-A) In a case where the relevant assessment or other order is
4582
the subject matter of an appeal to the 4583 [Principal Commissioner or

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 4585 [Principal Commissioner or 4586 [the Joint Commissioner
(Appeals) or the Commissioner (Appeals)]] or the Appellate Tribunal or
the High Court of the Supreme Court is received by the 4587 [Principal
Chief Commissioner or Chief Commissioner] or the 4588 [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 4589 [Principal Commissioner
or 4590 [to the Joint Commissioner (Appeals) or to the 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 4591 [Principal Commissioner or 4592 [to the
Joint Commissioner (Appeals) or to the Commissioner
(Appeals)]] or the Appellate Tribunal or the High Court or the
Supreme Court is received by the 4593 [Principal Chief
Commissioner or Chief Commissioner] or the 4594 [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.]
their 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.
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 4595 [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].
[275-B. Failure to comply with the provisions of clause (ii-b) of
4596
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.
[Provided further that no proceeding shall be initiated under this
4597
section on or after the 1st day of April, 2023.]

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-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.
4598 [Provided further that no proceeding under this section shall be
initiated on or after the 1st day of April, 2022.]

[276-B. Failure to pay tax to the credit of Central Government
4599
under Chapter XII-D or XVII-B.—If a person fails to 4600 [* * *],—

(a) 4601 [pay to the credit of the Central Government, the tax
deducted] at source by him as required by or under the
provisions of Chapter XVII-B; or
4602
[(b) pay tax or ensure payment of tax to the credit of the
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Central Government, as required by or under—

(i) sub-section (2) of Section 115-O;
(ii) the proviso to Section 194-B;
(iii) the first proviso to sub-section (1) of Section 194-R;
(iv) the proviso to sub-section (1) of Section 194-S; or]
4603
[(v) sub-section (2) of Section 194-BA,]
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 4604 [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 4605 [or tax on under-reported income]
exceeds 4606 [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 4607 [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 4608 [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.
276-CC. Failure to furnish returns of income.—If a person wilfully
fails to furnish in due time 4609 [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 4610 [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 4611
[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 4612
[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 4613
[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 4614 [or a return is furnished by him
under sub-section (8A) of section 139 within the time
provided in that sub-section]; or
4615 [(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.]
[276-CCC. Failure to furnish return of income in search cases.—If
4616
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 4617 [and with
fine].
276-DD. Failure to comply with the provisions of Section 269-SS.—
4618
[* * *]
276-E. Failure to comply with the provisions of Section 269-T.—4619
[* * *]
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 4620 [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;
[277-A. Falsification of books of account or document, etc.—If
4622
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 4623 [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 4624 [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 4625 [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 4627 [or Section 276-
BB] or sub-section (1) of Section 276-C or Section 276-CC or 4628 [* *
*] 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 4629 [or Section 276-BB] 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.
[278-AB. Power of 4631 [Principal Commissioner or Commissioner]
4630
to grant immunity from prosecution.—(1) A person may make an

application to the 4632 [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 4633 [Principal Commissioner or
-----------------------------------------------------------------------------------------------------------------------------------------------------------
Commissioner] under sub-section (1) shall not be made after

institution of the prosecution proceedings after abatement.
(3) The 4634 [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 4635 [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 4636 [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.
[(3) Where an offence under this Act has been committed by a
4637
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.]
(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:
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 4638 [Principal Chief
Commissioner].—4640 [(1) A person shall not be proceeded against for an
offence under Section 275-A, 4641 [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 4642 [, Section 277-A] or Section 278 except
with the previous sanction of the 4643 [Principal Commissioner or
Commissioner] 4644 [or Joint Commissioner (Appeals) or Commissioner
(Appeals)] or the appropriate authority:
Provided that the 4645 [Principal Chief Commissioner or Chief
Commissioner] or, as the case may be, 4646 [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 which the penalty imposed or imposable
on him under 4647 [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.
[(2) Any offence under this Chapter may, either before or after
4648
the institution of proceedings, be compounded by the 4649 [Principal

Chief Commissioner or Chief Commissioner] or 4650 [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.
[Explanation.—For the removal of doubts, it is hereby declared
4651
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
4652
in the Official Gazette, for the purposes of granting sanction under sub-
section (1) or compounding under sub-section (2), so as to impart
greater efficiency, transparency and accountability by—
(c) introducing a team-based sanction to proceed against, or for
compounding of, an offence, with dynamic jurisdiction.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
March, 2022.
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.
[280-A. Special Courts.—(1) The Central Government, in
4653
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.]
[280-B. Offences triable by Special Court.—Notwithstanding
4654

1974),—
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(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.]
[280-C. Trial of offences as summons case.—Notwithstanding
4655

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.]
[280-D. Application of Code of Criminal Procedure, 1973 to
4656
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 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 4657 [or for imposition of penalty under
Section 271-AAD where the amount or aggregate of amounts of penalty
likely to be imposed under the said section exceeds two crore rupees],
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 4658 [4659 [Principal Chief Commissioner or Chief
Commissioner], 4660 [Principal Commissioner or Commissioner], 4661
[Principal Director General or Director General] or 4662 [Principal Director
or Director]] by order in writing, attach provisionally any property
belonging to the assessee in the manner provided in the Second
Schedule.
4663 [* * *]
(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 4664 [4665 [Principal Chief Commissioner or Chief
Commissioner], 4666 [Principal Commissioner or Commissioner], 4667
[Principal Director General or Director General] or 4668 [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
4669
[two years or sixty days after the date of order of assessment or
reassessment, whichever is later]:
4670 [* * *]
4671 [* * *]
[(3) Where the assessee furnishes a guarantee from a scheduled
4672
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) 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).]
[282. Service of notice generally.—(1) The service of a notice or
4673
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).]
[282-A. Authentication of notices and other documents.—(1)
4674
Where this Act requires a notice or other document to be issued by any

income tax authority, such notice or other document shall be 4675
[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.—4676 [* * *]
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 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.
4677 [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.]
[285-A. Furnishing of information or documents by an Indian
4678
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
4679
films or persons engaged in specified activitiy.—Any person carrying on

the production of a cinematograph film or engaged in any specified
activity, or both, during the whole or any part of any financial year
shall, in respect of the period during which such production or specified
activity is carried on by him in such financial year, furnish within the
prescribed period, a statement in the prescribed form to the prescribed
income-tax authority in the prescribed manner, containing particulars
of all payments of over 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 or specified activity.
Explanation.—For the purposes of this section, “specified activity”
means any event management, documentary production, production of
programmes for telecasting on television or over the top platforms or
any other similar platform, sports event management, other performing
arts or any other activity as the Central Government may, by
notification in the Official Gazette, specify in this behalf.]
[285-BA. Obligation to furnish statement of financial transaction
4680
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 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

4681 [(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:
4682
[* * *]
(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, 4683 [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).]
[285-BB. Annual information statement.—The prescribed income-
4684
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.]
[286. Furnishing of report in respect of International group.—(1)
4685
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 4686 [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) 4687 [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 4688 [within the period as may be
prescribed], if the parent entity is resident of a country or territory,—
4689
[(a) where the parent entity is not obligated to file the report
of the nature referred to in sub-section (2);]
4690
[(aa)] with which India does not have an agreement providing
for exchange of the report of the nature referred to in sub-
section (2); or
(b) there has been a systemic failure of the country or territory
and the said failure has been intimated by the prescribed
authority to such constituent entity:
Provided that where there are more than one such
constituent entities of the group, resident in India, the report
shall be furnished by any one constituent entity, if,—
(a) the international group has designated such entity to
furnish the report in accordance with the provisions of sub
-section (2) on behalf of all the constituent entities
resident in India; and
(b) the information has been conveyed in writing on behalf
of the group to the prescribed authority.
(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 4691 [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;
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(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 4692 [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 4693 [* * *]
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;
4694 [(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 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 4695 [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 4696 [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;
(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 4697 [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
4698
[to the Joint Commissioner (Appeals) or to the 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 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;
4699 [(viii) any other person as may be prescribed.]
[Explanation.— In this section, “accountant” means a chartered
4700
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 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 4701 [clause (d) of
sub-section (1) of Section 272-A or]; or
4702
[(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).
[Explanation.— For the purposes of this section, “relative” in
4703
relation to an individual, means—

(a) spouse of the individual;
(b) brother or sister of the individual;
(c) brother or sister of the spouse of the individual;
(d) any lineal ascendant or descendant of the individual;
(e) any lineal ascendant or descendant of the spouse of the
individual;
(f) spouse of a person referred to in clause (b), clause (c), clause
(d) or clause (e);
(g) any lineal descendant of a brother or sister of either the
individual or the spouse of the individual.]
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.
[288-B. Rounding off amount payable and refund due.—Any
4704
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
-----------------------------------------------------------------------------------------------------------------------------------------------------------
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.
[292-BB. Notice deemed to be valid in certain circumstances.—
4705
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.]
[292-C. Presumption as to assets books of account, etc.—4707 [(1)]
4706
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 4708 [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.]
[(2) Where any books of account, other documents or assets have
4709
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.]
[292-CC. Authorisation and assessment in case of search or
4710
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;
(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 4711 [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.
4712
[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.
[293-C. Power to withdraw approval.—Where the Central
4713
Government or the Board or an income tax authority, who has been

conferred upon the power under any provision of this Act to grant any
approval to any assessee, the Central Government or the Board or such
authority may, notwithstanding that a provision to withdraw such
approval has not been specifically provided for in such provision,
withdraw such approval at any time:
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.]
[293-D. Faceless approval or registration.—(1) The Central
4714
Government may make a scheme, by notification in the Official Gazette,

for the purposes of granting approval or registration, as the case may
be, by income tax authority under any provision of the Act, so as to
(a) eliminating the interface between the income tax authorities
(c) introducing a team-based grant of approval or registration,
with dynamic jurisdiction.
March, 2022.
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;
4715
[(iia) operations carried out in India by a non-resident;]
4716 [(iib) transactions or activities of a non-resident;]
(iii) an individual who is liable to be assessed under the
provisions of sub-section (2) of Section 64;
(c) the determination of the value of any perquisite chargeable to
tax under this Act in such manner and on such basis as
appears to the Board to be proper and reasonable;
(d) the percentage on the written-down value which may be
allowed as depreciation in respect of buildings, machinery,
plant or furniture;
(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) 4717
[* * *]
( [e]) the conditions or limitations subject to which any
4718
payment of rent made by an assessee shall be deducted under

Section 80-GG;
4719 [(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;
4720
[(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 4721 [or inventory valuation]
and the particulars which such report shall contain under sub-
section (2-A) of Section 142;
4722
[(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;
4723
[(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;
4724
[(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;
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(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;
(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 4725 [the Joint Commissioner (Appeals)
or the Commissioner (Appeals)] may permit an appellant to
produce evidence which he did not produce or which he was
not allowed to produce before the 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 4726
[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 4727 [every notification issued before the 1st day of
June, 2007 under sub-clause (iv) of clause (23-C) of Section 10] 4728
[and every notification issued under sub-section (1-C) of Section 139
4729 [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.
(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 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.
For Section 1 to 150 click here
For Schedules 1 to 14 click here
———
3232.
Subs. by Act 13 of 2021, S. 44 (w.e.f. 1-4-2021). Prior to substitution it read as:
“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.”
3233. The words “where there is no Principal Chief Commissioner or Principal Director General,”
omitted by Act 8 of 2023, S. 74(a) (w.e.f. 1-4-2023).
3234. Ins. by Act 8 of 2023, S. 74(b) (w.e.f. 1-4-2023).
3235.
Ins. by Act 38 of 2020, S. 4(XXVI) (w.e.f. 1-11-2020).
3236. Subs. by Act 28 of 2016, S. 70 (w.e.f. 1-6-2016).
3237.
Ins. by Act 7 of 2017, S. 59(i) (w.e.f. 1-4-2017).
3238.
Subs. by Finance Act 6 of 2022, S. 48(a) (w.r.e.f. 1-4-2021). Prior to substitution it read
as:
‘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.’
3239. Ins. by Act 13 of 2021, S. 46(i) (w.e.f. 1-4-2021).
3240.
The words “or after” omitted by Act 8 of 2023, S. 75(I)(a) (w.e.f. 1-4-2023).
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3241. Ins. by Act 8 of 2023, S. 75(I)(b) (w.e.f. 1-4-2023).
3242.
Ins. by Finance Act 6 of 2022, S. 48(b) (w.e.f. 1-4-2022).
3243.
Subs. for “nine months” by Act 8 of 2023, S. 75(II) (w.e.f. 1-4-2023).
3244. Ins. by Act 7 of 2017, S. 59(ii) (w.e.f. 1-4-2017).
3245. Subs. for “sub-sections (1) and (2)” by Act 8 of 2023, S. 75(III)(a) (w.e.f. 1-4-2023).
3246.
Ins. by Finance Act 6 of 2022, S. 48(c)(i) (w.e.f. 1-4-2022).
3247. Ins. by Finance Act 6 of 2022, S. 48(c)(ii) (w.e.f. 1-4-2022).
3248. Subs. for “Principal Commissioner or Commissioner” by Act 8 of 2023, S. 75(III)(b) (w.e.f.
1-4-2023).
3249. Subs. for “Principal Commissioner or Commissioner” by Act 8 of 2023, S. 75(III)(b) (w.e.f.
1-4-2023).
3250. Ins. by Act 7 of 2017, S. 59(iii) (w.e.f. 1-4-2017).
3251. Ins. by Act 8 of 2023, S. 75(IV) (w.e.f. 1-4-2023).
3252. Subs. for “sub-sections (1), (2) and (3)” by Act 8 of 2023, S. 75(V) (w.e.f. 1-4-2023).
3253.
Subs. for “sub-sections (1), (2) and (3)” by Act 8 of 2023, S. 75(V) (w.e.f. 1-4-2023).
3254. Ins. by Finance Act 6 of 2022, S. 48(d)(i) (w.e.f. 1-4-2022).
3255. Ins. by Finance Act 6 of 2022, S. 48(d)(ii) (w.e.f. 1-4-2022).
3256.
Subs. for “the Principal Commissioner or Commissioner” by Act 8 of 2023, S. 75(VI)
(w.e.f. 1-4-2023).
3257.
Ins. by Finance Act 6 of 2022, S. 48(d)(i) (w.e.f. 1-4-2022).
3258. Ins. by Finance Act 6 of 2022, S. 48(d)(i) (w.e.f. 1-4-2022).
3259. Ins. by Act 7 of 2017, S. 59(iv) (w.r.e.f. 1-6-2016).
3260. Ins. by Finance Act 6 of 2022, S. 48(e) (w.e.f. 1-4-2022).
3261. Subs. for “sub-sections (1) and (2)” by Act 8 of 2023, S. 75(VII)(a) (w.e.f. 1-4-2023).
3262. Subs. for “sub-sections (3) and (5)” by Finance Act 6 of 2022, S. 48(f) (w.e.f. 1-4-
2022).
3263. Ins. by Act 8 of 2023, S. 75(VII)(b) (w.e.f. 1-4-2023).
3264. Ins. by Act 7 of 2017, S. 59(v) (w.r.e.f. 1-6-2016).
3265. Subs. for “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” by Finance Act 6 of 2022, S. 48
-----------------------------------------------------------------------------------------------------------------------------------------------------------
(g)(I) (w.e.f. 1-4-2022).
3266. Ins. by Act 8 of 2023, S. 75(VIII)(a)(i) (w.e.f. 1-4-2023).
3267. Ins. by Act 8 of 2023, S. 75(VIII)(a)(ii) (w.e.f. 1-4-2023).
3268. Subs. for “Authority for Advance Rulings” by Act 13 of 2021, S. 46(ii)(a) (w.e.f. 1-4-
2021).
3269.
Subs. for “Authority for Advance Rulings” by Act 13 of 2021, S. 46(ii)(b) (w.e.f. 1-4-
2021).
3270.
Subs. for “Assessing Officer,” by Finance Act 6 of 2022, S. 48(g)(II) (w.r.e.f. 1-4-2021).
3271. Ins. by Finance Act 6 of 2022, S. 48(g)(III) (w.e.f. 1-4-2022).
3272. Subs. for “sub-sections (1), (2)” by Act 8 of 2023, S. 75(VIII)(b) (w.e.f. 1-4-2023).
3273. The word “153B,” omitted by Act 7 of 2017, S. 59(vi) (w.e.f. 1-4-2017).
3274. Ins. by Act 13 of 2021, S. 46(ii)(c ) (w.r.e.f. 1-2-2021).
3275. Ins. by Finance Act, 2003, S. 65 (w.e.f. 1-6-2003).
3276. S. 153-A renumbered as sub-section (1) by Act 18 of 2008, Section 36 (w.r.e.f. 1-4-
2008).
3277. Ins. by Act 13 of 2021, S. 47 (w.e.f. 1-4-2021).
3279.
Ins. by Act 7 of 2017, S. 60(ii) (w.e.f. 1-4-2017).
3282.
Subs. for “referred to in this section” by Act 18 of 2008, Section 36(a) (w.r.e.f. 1-6-
2003).
3283.
Ins. by Act 23 of 2012, Section 67 (w.e.f. 1-7-2012).
3285. Ins. by Act 7 of 2017, S. 60(iv) (w.e.f. 1-4-2017).
3286. Ins. by Act 18 of 2008, Section 36(b) (w.r.e.f. 1-6-2003).
3287. Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
3288.
Subs. by Act 28 of 2016, S. 71 (w.e.f. 1-6-2016).
3289. Ins. by Act 7 of 2017, S. 61(a)(i) (w.e.f. 1-4-2017).
3290. Subs. by Act 7 of 2017, S. 61(a)(ii) (w.e.f. 1-4-2017).

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3291. Ins. by Finance Act 6 of 2022, S. 49(a) (w.r.e.f. 1-4-2021).
3292. Ins. by Act 7 of 2017, S. 61(b) (w.r.e.f. 1-6-2016).
3293. Ins. by Finance Act 6 of 2022, S. 49(b) (w.e.f. 1-4-2022).
3294. Subs. for “Authority for Advance Rulings” by Act 13 of 2021, S. 48(a) (w.e.f. 1-4-2021).
3295. Subs. for “Authority for Advance Rulings” by Act 13 of 2021, S. 48(b) (w.e.f. 1-4-2021).
3296.
Subs. for “Assessing Officer,” by Finance Act 6 of 2022, S. 49(c)(i) (w.r.e.f. 1-4-2021).
3297. Ins. by Finance Act 6 of 2022, S. 49(c)(ii) (w.r.e.f. 1-4-2021).
3298.
Ins. by Act 7 of 2017, S. 61(c ) (w.e.f. 1-4-2017).
3299. Ins. by Act 13 of 2021, S. 48(c ) (w.r.e.f. 1-2-2021).
3300. Renumbered by Act 18 of 2005, Section 47 (w.r.e.f. 1-6-2003).
3301.
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).
3302. Subs. for “and that Assessing Officer shall proceed against each such other person and
issue such other 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).
3303. Ins. by Act 7 of 2017, S. 62(a) (w.e.f. 1-4-2017).
3304.
Ins. by Act 18 of 2005, Section 47 (w.r.e.f. 1-6-2003).
3305. Subs. for “Section 153-A” by Act 18 of 2008, Section 38 (w.r.e.f. 1-6-2003).
3306. Ins. by Act 23 of 2012, Section 69 (w.e.f. 1-7-2012).
3307.
Ins. by Act 7 of 2017, S. 62(b) (w.e.f. 1-4-2017).
3308. Ins. by Act 18 of 2005, Section 47 (w.r.e.f. 1-6-2003).
3309. Ins. by Act 13 of 2021, S. 49 (w.e.f. 1-4-2021).
3310.
3311. Subs. for “Section 153-A” by Act 18 of 2008, Section 39 (w.r.e.f. 1-6-2007).
3313.
Subs. for “Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
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3314. 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.”
3315. Ins. by Act 23 of 2012, Section 70(a) (w.e.f. 1-7-2012).
3317.
Subs. for “by the Assessee” by Act 23 of 2012, Section 70(b) (w.e.f. 1-7-2012).
3319. Words “Deputy Commissioner (Appeals) or the” omitted by Act 21 of 1998, S. 65 (w.e.f.
1-10-1998).
3320.
3321. Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 76 (w.e.f. 1-4-2023).
3322. The proviso omitted by Act 32 of 1994 (w.e.f. 1-6-1994).
3323.
Subs. for “the assessee” by Act 23 of 2012, Section 70(c ) (w.e.f. 1-7-2012).
3325. Subs. for “the assessee” by Act 23 of 2012, Section 70(c ) (w.e.f. 1-7-2012).
3326.
Subs. for “the assessee” by Act 23 of 2012, Section 70(c ) (w.e.f. 1-7-2012).
3327.
Subs. by Act 23 of 2012, Section 70(d) (w.e.f. 1-7-2012).
3328.
Ins. by Act 20 of 2015, S. 38(iv) (w.e.f. 1-6-2015).
3329.
3330. Subs. by Act 23 of 2012, Section 70(e) (w.e.f. 1-7-2012).
3331. Ins. by Act 20 of 2015, S. 38(v) (w.e.f. 1-6-2015).
3332.
Ins. by Act 20 of 2015, S. 38(v) (w.e.f. 1-6-2015).
3333. Ins. by Act 14 of 2001, S. 65 (w.e.f. 1-6-2001).
3334.
Subs. for “by the assessee” by Act 23 of 2012, Section 70(f) (w.e.f. 1-7-2012).
3335.
Ins. by Act 20 of 2015, S. 38(vi) (w.e.f. 1-6-2015).
3336.
Subs. by Act 18 of 1992, S. 62 (w.e.f. 1-4-1993). Prior to substitution it read as follows:
“Where in respect of any completed assessment of a partner in a firm”.
3337.
Ins. by Act 18 of 1992, S. 62 (w.e.f. 1-4-1993).
3338.
Omitted by Act 4 of 1987, S. 61 (w.e.f. 1-4-1992).
3339. Omitted by Act 4 of 1987, S. 61 (w.e.f. 1-4-1992).

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3341.
3344.
3346.
3347.
Ins. by Finance (No. 2) Act, 1991 (49 of 1991), S. 48 (w.e.f. 1-10-1991).
3348. Ins. by Act 29 of 2006, Section 14.
3350.
Ins. by Act 8 of 2023, S. 77(a) (w.e.f. 1-4-2024).
3351. Ins. by Act 27 of 1999, S. 66 (w.e.f 1-6-1999).
3352. Ins. by Act 20 of 2002, S. 62 (w.e.f. 1-6-2002).
3353. Subs. by Act 21 of 2006, Section 39 (w.e.f. 1-4-2007).
3354. Subs. for “Section 203” by Act 21 of 2006, Section 39 (w.e.f. 1-4-2007).
3355.
Subs. by Act 21 of 2006, Section 39 (w.e.f. 1-4-2007).
3356. Ins. by Act 7 of 2017, S. 63 (w.e.f. 1-4-2018).
3357.
Ins. by Finance Act, 2003, S. 66 (w.e.f. 1-4-2004).
3358. Ins. by Finance Act 6 of 2022, S. 50 (w.e.f. 1-4-2022).
3360.
3361. Renumbered. by Act 12 of 2020, S. 71 (w.e.f. 1-4-2020).
3363. Subs. for “by the deductor under sub-section (1) of Section 143 or sub-section (1) of
Section 200-A” by Act 20 of 2015, S. 39 (w.e.f. 1-6-2015).
3364. Ins. by Act 12 of 2020, S. 71 (w.e.f. 1-4-2020).
3366. Ins. by Act 38 of 2020, S. 4(XXVII) (w.e.f. 1-11-2020).
3367. Subs. by Act 18 of 1992, S. 63 (w.e.f. 1-4-1993). Prior to substitution it read as follows:
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“Whenever a registered firm is assessed”.
3368. Subs. by Act 20 of 2002, S. 63(a)(i) (w.e.f. 1-6-2002).
3370. Subs. by Act 20 of 2002, S. 63(b) (w.e.f. 1-6-2002).
3372.
Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 78 (w.e.f. 1-4-2023).
3373. Ins. by Act 20 of 2015, S. 40 (w.e.f. 1-6-2015).
3374.
Ins. by Finance Act 6 of 2022, S. 52 (w.e.f. 1-4-2022).
3377. 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;”.
3378. Ins. by Act 20 of 2002, S. 64 and deemed to have been inserted (w.e.f. 1-7-1995).
3379. Ins. by Act 21 of 1998, S. 44 and deemed to have been inserted w.e.f. 1-7-1995.
3380. Subs. by Act 20 of 2002, S. 65(i) and deemed to have been substituted w.e.f. 1-7-1995.
3381. Subs. for “have been concluded” by Act 20 of 2002, S. 65(ii) and deemed to have been
substituted w.e.f. 1-7-1995.
3382.
Subs. for “or Section 147” by Act 20 of 2002, S. 65(iii) and deemed to have been
3383. Subs. by Act 20 of 2002, S. 65(iv) and deemed to have been substituted w.e.f. 1-7-
1995. Prior to 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;”.
3384.
Subs. for “Chapter IV” by Act 20 of 2002, S. 65(v)(i) and deemed to have been
3385.
Ins. by Act 20 of 2002, S. 65(v)(ii) and deemed to have been inserted w.e.f. 1-7-1995.
3386. Subs. by Act 33 of 1996, S. 46 and deemed to have been substituted w.e.f. 1-7-1995.
3387. Ins. by Act 21 of 1998, S. 45 (w.e.f. 1-4-1999).

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3389. Subs. for “and Section 144” by Act 20 of 2002, S. 66(a) and deemed to have been
3390.
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’.”.
3391. Ins. by Act 20 of 2002, S. 67 (w.e.f. 1-6-2002).
3393.
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.”.
3395. Ins. by Act 21 of 1998, S. 46 and deemed to have been inserted w.e.f. 1-7-1995.
3396. Ins. by Act 14 of 1997, S. 6 (w.e.f. 1-1-1997).
3397.
Subs. for “one and one-fourth per cent” by Act 54 of 2003, Section 7 (w.e.f. 8-9-2003).
3400. Ins. by Act 10 of 2000, S. 59 (w.e.f. 1-6-2000).
3402.
Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).

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3408.
Subs. for “maximum marginal rate” by Act 26 of 1997, S. 44 (w.e.f. 1-4-1998).
3412.
‘170-A. Effect of order of tribunal of court in respect of business reorganisation.—

Notwithstanding anything to the contrary contained in section 139, in a case of business
reorganisation, where prior to the date of order of a High Court or tribunal or an Adjudicating
Authority as defined in clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016
(31 of 2016), as the case may be, any return of income has been furnished by the successor
under the provisions of section 139 for any assessment year relevant to the previous year to
which such order applies, such successor shall furnish, within a period of six months from the
end of the month in which the said order was issued, a modified return in such form and
manner, as may be prescribed, in accordance with and limited to the said order.
Explanation.—In this section, the expressions—
(i) “business reorganisation” means the reorganisation of business involving the amalgamation
or de-merger or merger of business of one or more persons;
(ii) “successor” means all resulting companies in a business reorganisation, whether or not
the company was in existence prior to such business reorganisation.’
3414.
Ins. by Act 26 of 1997, S. 45 (w.r.e.f. 1-4-1976).
1-10-1998).
3417.
3418. Subs. for “Chief Commissioner” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
3420.
3422. Ins. by Act 31 of 2016, S. 247 r/w Sch. III (w.e.f. the date to be notified).
3423.
The words “in liquidation” omitted by Finance Act 6 of 2022, S. 56(a) (w.e.f. 1-4-2022).

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3425. Ins. by Finance Act 6 of 2022, S. 56(b) (w.e.f. 1-4-2022).
3426.
Ins. by Act 27 of 1999, S. 67 (w.e.f. 1-4-2000).
3427. Subs. for “during the previous year” by Act 27 of 1999, S. 68 (w.e.f. 1-4-2000).
3428. Sections 182 and 183 omitted by Finance Act, 1992 (18 of 1992), S. 65 (w.e.f. 1-4-
1993).
3429.
3430. 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).
3431. Omitted by Act 18 of 1992, S. 66 w.e.f 1-4-1993.
3432.
Proviso omitted by Act 18 of 1992, S. 67 (w.e.f. 1-4-1993).
3433.
Words “Deputy Commissioner (Appeals) or the” omitted by Act 21 of 1998, S. 65 (w.e.f.
1-10-1998).
3434.
3435.
3436. Ins. by Act 18 of 1992, S. 69 (w.e.f. 1-4-1993).
3437. Ins. by Act 20 of 2002, S. 70 (w.e.f. 1-6-2002).
3438.
Renumbered. by Act 12 of 2020, S. 72 (w.e.f. 1-4-2020).
3439. Subs. by Act 18 of 2008, Section 41 (w.r.e.f. 1-6-2003).
3440.
Ins. by Act 12 of 2020, S. 72 (w.e.f. 1-4-2020).
3441.
3442. Ins. by Act 12 of 2020, S. 73 (w.e.f. 1-4-2020).
3444.
Ins. by Act 14 of 2001, S. 68 (w.e.f. 1-6-2001).
3445. Ins. by Act 20 of 2015, S. 41 (w.e.f. 1-6-2015).
3447.
Ins. by Act 20 of 2015, S. 42 (w.e.f. 1-6-2015).
3448. Subs. for “thirty thousand rupees” by Act 28 of 2016, S. 72 (w.e.f. 1-6-2016).
3449. Omitted by Act 8 of 2023, S. 83 (w.e.f. 1-4-2023). Prior to omission it read as:
“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
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deducting such tax, failing which tax shall be deducted at the maximum marginal rate.”
3451. The proviso omitted by Finance Act, 1992 (18 of 1992), S. 70 (w.e.f. 1-6-1992).
3452.
The word “further” omitted by Finance Act, 1992 (18 of 1992), S. 70 (w.e.f. 1-6-1992).
3453. 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;”.
3456.
Ins. by Act 13 of 2018, S. 48 (w.e.f. 1-4-2018).
3457.
3458. Ins. by Act 20 of 2002, S. 72 (w.e.f. 1-6-2002).
3459.
“(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.”
3460. The brackets and figure “1” and Explanation 2 omitted by Act 18 of 1992, S. 70 (w.e.f. 1
-6-1992).
3461. Omitted by Act 18 of 1992 (w.e.f. 1-6-1992).
3462.
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).
3463.
Ins. by Act 49 of 1991, S. 51 (w.e.f. 1-10-1991).
3464. Subs. for “at the rates in force” by Act 12 of 2020, S. 74(B) (w.e.f. 1-4-2020).
“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:
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Provided further that no such deduction shall be made in respect of any dividends
referred to in Section 115-O.”.
3466.
Subs. for “an account payee cheque” by Act 12 of 2020, S. 74(C)(i) (w.e.f. 1-4-2020).
3467. Subs. for “two thousand five hundred rupees” by Act 12 of 2020, S. 74(C)(ii) (w.e.f. 1-4-
2020).
3468.
3469. 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.”
3470. 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 (w.e.f. 1-6-1992).
3471. Subs. for “the monetary limits specified under clause (a) or clause (b) of Section 44-AB”
by Act 12 of 2020, S. 75(I) (w.e.f. 1-4-2020).
3474.
Subs. for “ten thousand” by Act 7 of 2019, S. 9 (w.e.f. 1-4-2019).
3475. Subs. for “ten thousand” by Act 7 of 2019, S. 9 (w.e.f. 1-4-2019).
3476. Subs. for “ten thousand” by Act 7 of 2019, S. 9 (w.e.f. 1-4-2019).
3477. The proviso inserted by Act 22 of 1995, S. 33 (w.e.f. 1-7-1995) substituted by Act 33 of
1996, S. 49 (w.e.f. 1-10-1996).
3478. Subs. for “for residential purposes” by Act 10 of 2000, S. 60(b) (w.e.f. 1-4-2000).
3479.
Words, figures and brackets “and which is for the time being approved by the Central
Government for the 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).
3480.
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”.
3482. Ins. by Act 13 of 2018, S. 49 (w.e.f. 1-4-2018).
3483. 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;”
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3484. 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;”.
3485.
Ins. by Act 12 of 2020, S. 75(II)(B) (w.e.f. 1-4-2020).
3487. Ins. by Act 20 of 2015, S. 43(c ) (w.e.f. 1-6-2015).
3488. Clause (vii) and (vii-a) Subs. for clauses (vii) by Act 22 of 1995, S. 33 (w.e.f. 1-7-1995).
3489. Subs. by Act 20 of 2015, S. 43(d) (w.e.f. 1-6-2015).
3491. Ins. by Act 13 of 2021, S. 51 (w.e.f. 1-4-2021).
3493.
3494. Ins. by Act 25 of 2014, S. 56 (w.e.f. 1-10-2014).
3495.
Ins. by Act 12 of 2020, S. 75(II)(C) (w.e.f. 1-4-2020).
3496. Ins. by Act 22 of 1995, S. 33 (w.e.f. 1-7-1995).
3497. Renumbered as “Explanation 1” by Act 18 of 2005, Section 48 (w.e.f. 1-6-2005).
3498. Subs. for “excluding” by Act 20 of 2015, S. 43(e) (w.e.f. 1-6-2015).
3499.
Ins. by Act 12 of 2020, S. 75(II)(D) (w.e.f. 1-4-2020).
3500. Omitted by Act 18 of 1992 (w.e.f. 1-6-1992).
3501.
Ins. by Act 12 of 2020, S. 75(III) (w.e.f. 1-4-2020).
3502. Subs. for “Winnings from lottery or crossword puzzle” by Act 8 of 2023, S. 85(i) (w.e.f. 1
-4-2023).
3503. Ins. by Act 14 of 2001, S. 70 (w.e.f. 1-6-2001).
3504. Subs. for “in an amount exceeding ten thousand rupees” by Act 8 of 2023, S. 85(ii)
(w.e.f. 1-4-2023).
3505. 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 :”.
3506. Ins. by Act 26 of 1997, S. 48 (w.e.f. 1-6-1997).
3507. Word “further” omitted by Act 27 of 1999, S. 70 (w.e.f. 1-4-2000).

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3509. Ins. by Act 8 of 2023, S. 86 (w.e.f. 1-4-2023).
3510. Subs. for “in an amount exceeding ten thousand rupees” by Act 8 of 2023, S. 87 (w.e.f.
1-4-2023).
“Provided that no deduction shall be made under this section from any payment made
before the 1st day of June, 1978.”.
3512.
3513.
Subs. for “twnety thousand rupees” by Act 14 of 2010, Section 37 (w.e.f. 1-7-2010).
3514. Subs. for “seventy-five thousand rupees” by Act 28 of 2016, S. 74 (w.e.f. 1-6-2016).
3515. Subs. for “on furnishing of” by Act 20 of 2015, S. 44 (w.e.f. 1-6-2015).
3516. Subs. for “is liable to audit of accounts under clause (a) or clause (b) of Section 44-AB”
by Act 12 of 2020, S. 76(I) (w.e.f. 1-4-2020).
3517. 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,”
3518. Ins. by Act 12 of 2020, S. 76(II)(ii) (w.e.f. 1-4-2020).
3519.
Subs. for “twenty thousand rupees” by Act 28 of 2016, S. 75 (w.e.f. 1-6-2016).
3520. Ins. by Act 25 of 2014, S. 57 (w.e.f. 1-10-2014).
3521.
Subs. for “one per cent” by Act 23 of 2019, S. 44 (w.e.f. 1-9-2019).
3522. Ins. by Act 23 of 2012, Section 73(a) (w.e.f. 1-7-2012).
3523. Subs. for “ten per cent” by Act 23 of 2012, Section 73(b) (w.e.f. 1-7-2012).
3524.
Sections 194-EE, 194-G and 194-H Ins. by Act 49 of 1991, Ss. 54 and 55 (w.e.f. 1-10-
1991).
3525. Subs. for “twenty per cent” by Act 28 of 2016, S. 77 (w.e.f. 1-6-2016).
3526. Section 194-F Ins. by Act 12 of 1990, S. 40 (w.e.f. 1-4-1991).
3527.
Sections 194-EE, 194-G and 194-H Ins. by Act 49 of 1991, Ss. 54 and 55 (w.e.f. 1-10-
1991).
3528. Section 194-G renumbered as Section “194-G (1)” by Act 18 of 1992, S. 73 (w.e.f. 1-6-
1992).
3529. Subs. for “one thousand rupees” by Act 28 of 2016, S. 78(i) (w.e.f. 1-6-2016).
3530.
Subs. for “ten per cent” by Act 28 of 2016, S. 78(ii) (w.e.f. 1-6-2016).
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3531. 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.”.
3532.
Omitted by Finance Act, 2003, S. 76 (w.e.f. 1-6-2003). Prior to omission sub-
“(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.”.
3533.
Ins. by Act 14 of 2001, S. 71 (w.e.f. 1-6-2001).
3534. Subs. for “ten per cent” by Act 28 of 2016, S. 79(i) (w.e.f. 1-6-2016).
3535.
Subs. for “five thousand rupees” by Act 28 of 2016, S. 79(ii) (w.e.f. 1-6-2016).
3537.
Subs. for “the monetary limits specified under clause (a) or clause (b) of Section 44-AB”
by Act 12 of 2020, S. 77 (w.e.f. 1-4-2020).
3538.
3539. Ins. by Act 32 of 1994 (w.e.f. 1-6-1994).
3540.
Subs. for “any person” by Finance Act, 2003, S. 77 (w.e.f. 1-6-2003).
3541.
Subs. for “deduct income tax thereon at the rate of twenty per cent” by Act 22 of 1995,
S. 35, (w.e.f. 1-7-1995).
3543. Subs. for “one hundred eighty thousand rupees” by Act 7 of 2019, S. 10 (w.e.f. 1-4-
2019).
3544.
Ins. by Act 20 of 2002, S. 77 (w.e.f. 1-6-2002).
3545. Subs. for “the monetary limits specified under clause (a) or clause (b) of Section 44-AB”
by Act 12 of 2020, S. 78 (w.e.f. 1-4-2020).
3546. Ins. by Act 20 of 2015, S. 45 (w.e.f. 1-6-2015).
3547.
Subs. by Act 29 of 2006, Section 15.
3549. Ins. by Finance Act 6 of 2022, S. 57(i) (w.e.f. 1-4-2022).

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3550.
Subs. for “immovable property is” by Finance Act 6 of 2022, S. 57(ii) (w.e.f. 1-4-2022).
3551.
Ins. by Act 23 of 2019, S. 45 (w.e.f. 1-9-2019).
3552. Ins. by Finance Act 6 of 2022, S. 57(iii) (w.e.f. 1-4-2022).
3553.
Ins. by Act 7 of 2017, S. 64 (w.e.f. 1-6-2017).
3554.
Subs. for “Section 206-AA, such” by Act 13 of 2021, S. 52 (w.e.f. 1-7-2021).
3555. The words “or Section 206-AB” omitted by Finance Act 6 of 2022, S. 58 (w.e.f. 1-4-
2022).
3556.
Ins. by Act 7 of 2017, S. 65 (w.e.f. 1-4-2017).
3557. Sections 194-J and 194-K Ins. by Act 22 of 1995, S. 36 (w.e.f. 1-7-1995).
3559.
3560.
Ins. by Act 29 of 2006, Section 16.
3561. Subs. for “ten per cent of such sum” by Act 12 of 2020, S. 79(a) (w.e.f. 1-4-2020).
3562.
Subs. for “twenty thousand rupees” by Act 14 of 2010, Section 41 (w.e.f. 1-7-2010).
3563. Subs. for “twenty thousand rupees” by Act 14 of 2010, Section 41 (w.e.f. 1-7-2010).
3564.
Subs. for “clause (b):” by Act 29 of 2006, Section 16.
3565.
3566.
Subs. for “twenty thousand rupees” by Act 14 of 2010, Section 41 (w.e.f. 1-7-2010).
3567.
Ins. by Act 20 of 2002, S. 78 (w.e.f. 1-6-2002).
3568.
by Act 12 of 2020, S. 79(b) (w.e.f. 1-4-2020).
3569. Ins. by Finance Act, 2003, S. 78(a) (w.e.f. 1-6-2003).
3570.
Ins. by Act 7 of 2017, S. 66 (w.e.f. 1-6-2017).
3571.
Omitted by Finance Act, 2003, S. 78(b) (w.e.f. 1-6-2003). Prior to omission sub-
“(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.”.
3572.
Omitted by Finance Act, 2003, S. 78(b) (w.e.f. 1-6-2003). Prior to omission sub-
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“(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.”.
3573.
3574. Ins. by Act 12 of 2020, S. 80 (w.e.f. 1-4-2020).
3575.
3576.
3577. Subs. for “two hundred thousand rupees” by Act 28 of 2016, S. 81 (w.e.f. 1-6-2016).
3578. Ins. by Act 7 of 2017, S. 67 (w.e.f. 1-4-2017).
3579.
3580.
Ins. by Act 25 of 2014, S. 58 (w.e.f. 1-10-2014).
3581. Subs. for “in clause (23-FC)” by Act 28 of 2016, S. 82(i) (w.e.f. 1-6-2016).
3582.
The words “sub-clause (a) of” omitted by Act 12 of 2020, S. 81(a) (w.e.f. 1-4-2020).
3584.
Subs. for “in clause (23-FC)” by Act 28 of 2016, S. 82(ii) (w.e.f. 1-6-2016).
3585. The words “sub-clause (a) of” omitted by Act 12 of 2020, S. 81(a) (w.e.f. 1-4-2020).
3586. Subs. for “being a non-resident, not being a company” by Act 20 of 2015, S. 46(b)
(w.e.f. 1-6-2015).
3587. Subs. for “five per cent” by Act 12 of 2020, S. 81(b) (w.e.f. 1-4-2020).
3589.
3590. Ins. by Act 20 of 2015, S. 47 (w.e.f. 1-6-2015).
3591. Subs. for “deduct income-tax thereon at the rate of ten per cent” by Act 28 of 2016, S.
83 (w.e.f. 1-6-2016).
3592. Ins. by Act 28 of 2016, S. 84 (w.e.f. 1-6-2016).
3594. Ins. by Act 25 of 2014, S. 59(A) (w.e.f. 1-10-2014).

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3597. Ins. by Act 25 of 2014, S. 59(B)(a) (w.e.f. 1-10-2014).
3598. Subs. by Act 25 of 2014, S. 59(B)(b) (w.e.f. 1-10-2014).
3599. Subs. for “1st day of July, 2017” by Act 7 of 2017, S. 68(a)(A) (w.e.f. 1-4-2018).
3600. Subs. for “2020” by Act 12 of 2020, S. 82(ii)(a) (w.e.f. 1-4-2020).
3601. Subs. for “1st day of July, 2017” by Act 7 of 2017, S. 68(a)(A) (w.e.f. 1-4-2018).
3602.
Subs. for “2020” by Act 12 of 2020, S. 82(ii)(a) (w.e.f. 1-4-2020).
3603. Subs. for “and” by Act 7 of 2017, S. 68(a)(B) (w.e.f. 1-4-2018).
3605. Subs. for “2020” by Act 12 of 2020, S. 82(ii)(b) (w.e.f. 1-4-2020).
3606. Ins. by Act 12 of 2020, S. 82(ii)(c ) (w.e.f. 1-4-2020).
3607.
Subs. for “and” by Act 8 of 2023, S. 88(ii)(I) (w.e.f. 1-7-2023).
3608. Ins. by Act 8 of 2023, S. 88(ii)(II) (w.e.f. 1-7-2023).
3611.
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.”
3612.
3613. Ins. by Act 23 of 2019, S. 46 (w.e.f. 1-9-2019).
3614. Corrected by Act 23 of 2019, dated 1-8-2019.
3616. Ins. by Act 8 of 2023, S. 89 (w.e.f. 1-4-2023).
3617. Ins. by Act 12 of 2020, S. 85 (w.e.f. 1-10-2020).
3618. Ins. by Act 13 of 2021, S. 53 (w.e.f. 1-4-2021).
3619. Ins. by Act 13 of 2021, S. 54 (w.e.f. 1-7-2021).

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3621. Renumbered by Act 8 of 2023, S. 90 (w.e.f. 1-4-2023).
3622. Ins. by Act 8 of 2023, S. 90 (w.e.f. 1-4-2023).
3624. Subs. for “any interest” by Act 23 of 2012, Section 77(a)(i) (w.e.f. 1-4-2012).
3626. The words and brackets “(not being interest on securities)” omitted by Finance Act,
2003, S. 80(a)(i) (w.e.f. 1-6-2003).
3627. The words “or dividends” omitted by Act 49 of 1991, S. 56 (w.e.f. 1-10-1991).
3628. 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.”
3629.
Explanation renumbered as “Explanation-1” by Act 23 of 2012, Section 77(a)(ii) (w.r.e.f.
1-4-1962).
3630.
Ins. by Act 23 of 2012, Section 77(a)(ii) (w.r.e.f. 1-4-1962).
3631. Subs. for “(other than interest on securities and salary)” by Finance Act, 2003, S. 80
(b) (w.e.f. 1-6-2003).
3632. Subs. for “to the Assessing Officer to determine, by general or special order” by Act 23
of 2019, S. 47(a) (w.e.f. 1-11-2019).
3633. The proviso omitted by Act 49 of 1991, S. 56 (w.e.f. 1-10-1991).
3635.
Ins. by Act 23 of 2012, Section 77(b) (w.e.f. 1-7-2012).
3636.
Subs. for “to the Assessing Officer to determine, by general or special order” by Act 23
of 2019, S. 47(b) (w.e.f. 1-11-2019).
3637.
Subs. for “Where, under an agreement” by Act 20 of 2002, S. 81 (w.e.f. 1-6-2002).
3638.
3639.
Subs. for “of the Unit Trust of India” by Act 12 of 2020, S. 87(a) (w.e.f. 1-4-2020).
3640. 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) (w.e.f. 1-4-2020).
3641.
Ins. by Act 8 of 2023, S. 91 (w.e.f. 1-4-2023).
3642. Omitted by Act 12 of 2020, S. 87(c ) (w.e.f. 1-4-2020). Prior to omission it read as:
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“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.”
3643.
Proviso omitted by Act 20 of 2002, S. 82 (w.e.f. 1-6-2002).
3644.
Sub-section (3) and Section 196-B Ins. by Act 49 of 1991, Ss. 57 and 58 respectively
(w.e.f. 1-10-1991).
3645. Subs. by Act 38 of 1993 (w.e.f. 1-6-1993).
3646.
Section 196-C Ins. by Act 18 of 1992, S. 75 (w.e.f. 1-6-1992).
3647. Subs. by Act 38 of 1993 (w.e.f. 1-6-1993).
3648. Subs. for “shares” by Act 14 of 2001, S. 72 (w.e.f. 1-4-2002).
3649.
Subs. for “shares” by Act 14 of 2001, S. 72 (w.e.f. 1-4-2002).
3650. 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) (w.e.f. 1-4-2020).
3651. 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.”
“Provided that no such deduction shall be made in respect of any dividends referred to in
Section 115-O.”.
3653.
Section 196-D Ins. by Act 38 of 1993 (w.e.f. 1-6-1993).
3655.
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. 1-4-2020).
3656. 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.”
3657.
Ins. by Act 13 of 2021, S. 55 (w.e.f. 1-4-2021).
3658. Ins. by Act 38 of 2020, S. 4(XXVIII) (w.e.f. 1-11-2020).
3659. The expression Subs. by Act 18 of 1992, S. 76 (w.e.f. 1-6-1992).
3660.
Ins. by Finance Act, 2003, S. 84(a) (w.e.f. 1-6-2003).
3661. Ins. by Act 38 of 1993, S. 28 (w.e.f. 1-6-1993).
3662.
Ins. by Finance Act, 2003, S. 84(b) (w.e.f. 1-6-2003).
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3663.
3664. Ins. by Act 14 of 2001, S. 73 (w.e.f. 1-6-2001).
3665. Ins. by Act 32 of 1994 (w.e.f. 1-6-1994).
3666.
3668. Ins. by Act 28 of 2016, S. 85 (w.e.f. 1-6-2016).
3669.
Ins. by Act 8 of 2023, S. 92 (w.e.f. 1-4-2023).
3670.
Subs. for “194-LBC” by Act 23 of 2019, S. 48 (w.e.f. 1-9-2019).
3671. Subs. for “194-M” by Act 12 of 2020, S. 90 (w.e.f. 1-4-2020).
3672.
Ins. by Act 22 of 1995, S. 38 (w.e.f. 1-7-1995).
3673. Number and letter “, 194-L” omitted by Finance Act, 2003, S. 84(b) (w.e.f. 1-6-
2003).
3674. Words “Section 193 or” omitted by Act 27 of 1999, S. 77(a) (w.e.f. 1-6-1999).
3675.
Words “or Section 194-A”omitted by Act 18 of 1992, S. 77 (w.e.f. 1-6-1992).
3676. Ins. by Act 49 of 1991, S. 57 (w.e.f. 1-10-1991).
3677. Words “Section 193 or” omitted by Act 27 of 1999, S. 77(a) (w.e.f. 1-6-1999).
3678.
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).
3679.
Words “or Section 194-A”omitted by Act 18 of 1992, S. 77 (w.e.f. 1-6-1992).
3680. 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.
3681.
3682.
Subs. for “Section 193 or Section 194-A” by Act 20 of 2015, S. 50(i) (w.e.f. 1-6-2015).
3685. Ins. by Act 27 of 1999, S. 77(b)(ii) (w.e.f. 1-6-1999).
3686. Subs. for “Section 193 or Section 194-A” by Act 20 of 2015, S. 50(i) (w.e.f. 1-6-2015).
3687.

-----------------------------------------------------------------------------------------------------------------------------------------------------------
3689. Ins. by Act 20 of 2002, S. 85 (w.e.f. 1-6-2002).
3691. 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).
3693.
3694.
Subs. for “sixty-five years” by Act 23 of 2012, Section 78(a) (w.e.f. 1-7-2012).
3695. Omitted by Act 22 of 2007, Section 58 (w.r.e.f. 1-4-2006).
3696. 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).
3699.
Ins. by Act 28 of 2005, Section 27 and Schedule II (w.e.f. the date to be notified).
3700.
3701. 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.”
3702. Subs. by Act 22 of 1992 (18 of 1992), S. 77 (w.e.f. 1-6-1992).
3703. Ins. by Finance Act, 2003, S. 85(b) (w.e.f. 1-6-2003).
3706. Subs. by Act 22 of 1992 (18 of 1992), S. 77 (w.e.f. 1-6-1992).
3708. Ins. by Act 38 of 2020, S. 4(XXIX) (w.e.f. 14-5-2020).
3710. Ins. by Act 20 of 2002, S. 86 (w.e.f. 1-6-2002).
3711. Ins. by Act 23 of 2019, S. 49 (w.e.f. 1-9-2019).
3712. Ins. by Act 27 of 1999, S. 78 (w.e.f. 1-6-1999).

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3714. Renumbered as sub-section (1) by Act 20 of 2002, S. 88 (w.e.f. 1-6-2002).
3715.
3716. Ins. by Act 20 of 2002, S. 88 (w.e.f. 1-6-2002).
3717. Ins. by Act 20 of 2015, S. 51 (w.e.f. 1-6-2015).
3718.
3720. Ins. by Act 25 of 2014, S. 60 (w.e.f. 1-10-2014).
3722. Ins. by Act 25 of 2014, S. 61 (w.e.f. 1-10-2014).
3723.
3725. Ins. by Act 23 of 2012, Section 79(A)(i)(a) (w.e.f. 1-7-2012).
3726. Subs. for “resident” by Act 23 of 2019, S. 50(a) (w.e.f. 1-9-2019).
3727.
Subs. for “resident” by Act 23 of 2019, S. 50(a) (w.e.f. 1-9-2019).
3728. Subs. for “resident” by Act 23 of 2019, S. 50(a) (w.e.f. 1-9-2019).
3729. Subs. for“Provided that” by Act 23 of 2012, Section 79(A)(i)(b) (w.e.f. 1-7-2012).
3731.
Ins. by Act 23 of 2012, Section 79(A)(ii) (w.e.f. 1-7-2012).
3732.
Subs. for “resident” by Act 23 of 2019, S. 50(b) (w.e.f. 1-9-2019).
3733. Subs. for “resident” by Act 23 of 2019, S. 50(b) (w.e.f. 1-9-2019).
3734.
Subs. for “resident” by Act 23 of 2019, S. 50(b) (w.e.f. 1-9-2019).
3735.
3736.
3738.
Ins. by Act 23 of 2012, Section 79(C) (w.e.f. 1-7-2012).
3740. Renumbered as sub-section (1) by Act 20 of 2002, S. 90 (w.e.f. 1-6-2002).
3741.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
3742. Ins. by Act 20 of 2002, S. 90 (w.e.f. 1-6-2002).
3744.
Omitted by Act 14 of 2010, Section 43 (w.e.f. 1-4-2010).
3747.
The word “quarterly” Inserted by Act 33 of 2009, Section 67 (w.r.e.f. 1-10-2009).
3748. Ins. by Act 20 of 2015, S. 53 (w.e.f. 1-6-2015).
3749.
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.”
3750.
3751. Subs. for “authorised dealer” by Act 17 of 2013, Section 50(A) (w.r.e.f. 1-4-2013).
3752.
Subs. by Act 17 of 2013, Section 4 (w.r.e.f 1-4-2013).
3753.
Ins. by Act 7 of 2017, S. 71 (w.e.f. 1-4-2017).
3755.
Ins. by Act 12 of 2020, S. 93 (w.e.f. 1-4-2020).
3756. Subs. by Act 17 of 2013, Section 50(B) (w.r.e.f. 1-4-2013).
3757. Subs. by Act 17 of 2013, Section 4 (w.r.e.f 1-4-2013).
3758.
3759. Ins. by Act 26 of 1997, S. 52 (w.e.f. 1-4-1997).
3760. Subs. for “responsible for deducting tax” by Act 21 of 2006, Section 46 (w.e.f. 1-4-
2006).
3761.
3763. Sub-sections (2) and (3) substituted by Finance Act, 2003, S. 86 (w.e.f. 1-6-2003).
Prior to substitution sub-sections (2) & (3) read as follows:
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“(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 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.”.
3764.
3765.
3768.
Ins. by Act 12 of 2020, S. 94 (w.e.f. 1-4-2020).
3769. Ins. by Act 13 of 2021, S. 56 (w.e.f. 1-7-2021).
3771.
Ins. by Act 13 of 2021, S. 57 (w.e.f. 1-7-2021).
3773. Subs. for “194-LBC or 194-N” by Finance Act 6 of 2022, S. 62(a)(i) (w.e.f. 1-4-2022).
3774.
The words “(hereafter referred to as deductee)” omitted by Finance Act 6 of 2022, S. 62
(a)(ii) (w.e.f. 1-4-2022).
3775. Subs. for “filed the returns of income for both of the two assessment years relevant to
the two previous years immediately prior to the previous year in which tax is required to be
deducted, for which the time limit of filing return of income under sub-section (1) of Section
139 has expired; and the aggregate of tax deducted at source and tax collected at source in
his case is rupees fifty thousand or more in each of these two previous years:” by Finance
Act 6 of 2022, S. 62(b) (w.e.f. 1-4-2022).
3776. Subs. by Act 8 of 2023, S. 93(ii) (w.e.f. 1-4-2023). Prior to substitution it read as:
“Provided that the specified person shall not include a non-resident who does not have a
permanent establishment in India.”
3777. 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.”

3780. Ins. by Act 23 of 2012, Section 81(a) (w.e.f. 1-7-2012)
3782.
3783. Ins. by Act 23 of 2012, Section 81(b) (w.e.f. 1-7-2012)
3786.
3788. Omitted by Act 7 of 2017, S. 72(a) (w.e.f. 1-4-2017).
3789. Omitted by Act 7 of 2017, S. 72(b) (w.e.f. 1-4-2017).
3790. Ins. by Act 12 of 2020, S. 95(I) (w.e.f. 1-10-2020).
3791. The words “out of India” omitted by Act 8 of 2023, S. 94(i) (w.e.f. 1-7-2023).
3792.
The words “out of India” omitted by Act 8 of 2023, S. 94(i) (w.e.f. 1-7-2023).
3793. Subs. for “five” by Act 8 of 2023, S. 94(ii) (w.e.f. 1-7-2023).
3794. Subs. for “and is for a purpose other than purchase of overseas tour programme
package” by Act 8 of 2023, S. 94(iii) (w.e.f. 1-7-2023).
3795. Subs. for “is for a purpose other than purchase of overseas tour programme package” by
Act 8 of 2023, S. 94(iv) (w.e.f. 1-7-2023).
3796. Subs. for “sub-section (1) or sub-section (1-C)” by Act 12 of 2020, S. 95(II) (w.e.f. 1-
10-2020).
3797.
The words “or sub-section (1-D)” omitted by Act 7 of 2017, S. 72(c ) (w.e.f. 1-4-2017).
3798. Subs. for “sub-section (1) or sub-section (1-C)” by Act 12 of 2020, S. 95(III) (w.e.f. 1-
-----------------------------------------------------------------------------------------------------------------------------------------------------------
10-2020).
3799. The words “or sub-section (1-D)” omitted by Act 7 of 2017, S. 72(c ) (w.e.f. 1-4-2017).
3800. Subs. for “seven days” by Act 54 of 2003, Section 9 (w.e.f. 8-9-2003).
3803.
Ins. by Act 20 of 2015, S. 54 (w.e.f. 1-6-2015).
3805. Subs. by Act 18 of 2008, Section 48(a) (w.r.e.f. 1-4-2008).
3806. Subs. for “ten days from the date” by Act 54 of 2003, Section 9 (w.e.f. 8-9-2003).
3807.
3808.
The first proviso and in the second proviso, the word “further” omitted by Act 14 of
2010, Section 44 (w.e.f. 1-4-2010).
3809.
The first proviso and in the second proviso, the word “further” omitted by Act 14 of
2010, Section 44 (w.e.f. 1-4-2010).
3810.
Subs. by Act 21 of 2006, Section 47 (w.r.e.f. 1-4-2005).
3811. Subs. for “collecting tax” by Act 21 of 2006, Section 47 (w.e.f. 1-4-2006).
3815. Subs. for sub-section (5-B) and (5-C) by Act 23 of 2004, Section 50 (w.e.f. 1-4-2005).
3817.
Subs. for “in accordance with the provisions of this section” by Act 12 of 2020, S. 95(IV)
(w.e.f. 1-10-2020).
3818.
Ins. by Act 23 of 2012, Section 81(f) (w.e.f. 1-7-2012)
3819. The words “, other than a person referred to in sub-section (1-D),” omitted by Act 7 of
2017, S. 72(d) (w.e.f. 1-4-2017).
3820. Subs. for “Provided that” by Act 23 of 2012, Section 81(f)(B) (w.e.f. 1-7-2012)
3821. Subs. for “seller” by Act 21 of 2006, Section 47 (w.e.f. 1-4-2007).
3822. Subs. for “one and one-fourth per cent” by Act 54 of 2003, Section 9 (w.e.f. 8-9-2003).

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3824. Ins. by Act 23 of 2012, Section 81(g) (w.e.f. 1-7-2012)
3825.
The words “, other than a person referred to in sub-section (1-D),” omitted by Act 7 of
2017, S. 72(e) (w.e.f. 1-4-2017).
3827. Subs. for “seller” by Act 21 of 2006, Section 47 (w.e.f. 1-4-2007).
3829.
3830.
3832.
3833. Ins. by Act 23 of 2012, Section 81(h) (w.e.f. 1-7-2012)
3834.
Ins. by Act 38 of 2020, S. 4(XXX) (w.e.f. 14-5-2020).
3835.
Ins. by Act 18 of 1992, S. 79 (w.e.f. 1-4-1992).
3836. Ins. by Act 23 of 2012, Section 81(i)(i) (w.e.f. 1-7-2012)
3837. Omitted by Act 7 of 2017, S. 72(f)(A)(I) (w.e.f. 1-4-2017).
3838.
Ins. by Act 7 of 2017, S. 72(f)(A)(II) (w.e.f. 1-4-2017).
3839. Omitted by Act 7 of 2017, S. 72(f)(B) (w.e.f. 1-4-2017).
3840. 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.”.
3841. Subs. for “means” by Act 12 of 2020, S. 95(V)(i) (w.e.f. 1-10-2020).
3842.
by Act 12 of 2020, S. 95(V)(ii) (w.e.f. 1-10-2020).
3843. 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).
3844. Ins. by Act 20 of 2002, S. 91 (w.e.f. 1-6-2002).
3845.
3846. Ins. by Act 20 of 2015, S. 55 (w.e.f. 1-6-2015).
3847. Ins. by Act 7 of 2017, S. 73 (w.e.f. 1-4-2017).

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3848.
Ins. by Act 8 of 2023, S. 95 (w.e.f. 1-7-2023).
3849.
Ins. by Act 13 of 2021, S. 58 (w.e.f. 1-7-2021).
3850. The words “(hereafter referred to as collectee)” omitted by Finance Act 6 of 2022, S. 64
(a) (w.e.f. 1-4-2022).
3851.
3852. Subs. for “filed the returns of income for both of the two assessment years relevant to
the two previous years immediately prior to the previous year in which tax is required to be
collected, for which the time limit of filing return of income under sub-section (1) of Section
139 has expired; and the aggregate of tax deducted at source and tax collected at source in
his case is rupees fifty thousand or more in each of these two previous years:” by Finance
Act 6 of 2022, S. 64(b) (w.e.f. 1-4-2022).
3853. Subs. by Act 8 of 2023, S. 96(ii) (w.e.f. 1-4-2023). Prior to substitution it read as:
“Provided that the specified person shall not include a non-resident who does not have a
permanent establishment in India.”
3854. Renumbered as sub-section “(1)” by Act 23 of 2012, Section 82 (w.e.f. 1-4-2012).
3856.
Subs. for “five thousand rupees” by Act 33 of 2009, Section 71 (w.r.e.f. 1-4-2009).
3857.
3858.
Words “and who has not paid any advance tax under sub-section (1)” omitted by Act 20
of 2002, S. 92 (w.e.f. 1-6-2002).
3859.
3860. Subs. for “an eligible assessee in respect of an eligible business referred to in Section 44-
AD” by Act 7 of 2017, S. 74 (w.e.f. 1-4-2017).
3862.
Subs. for “one and one-fourth” by Act 54 of 2003, Section 10 (w.e.f. 8-9-2003).
3863. Ins. by Act 25 of 2014, S. 64(ii)(a) (w.e.f. 1-10-2014).
3864. Subs. for “Provided further” by Act 25 of 2014, S. 64(ii)(b) (w.e.f. 1-10-2014).
3865.
3867. Ins. by Act 28 of 2016, S. 90 (w.e.f. 1-6-2016).
3868.
3869. Ins. by Act 20 of 2015, S. 56 (w.e.f. 1-6-2015).

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3870. Ins. by Act 10 of 2000, S. 62 (w.e.f. 1-6-2000).
3871.
3872.
3874.
3875.
Subs. for “corresponding law from” by Act 23 of 2019, S. 52(a)(i) (w.e.f. 1-9-2019).
3876. Subs. for “any Tax Recovery Officer” by Act 23 of 2019, S. 52(a)(ii) (w.e.f. 1-9-2019).
3877.
Subs. for “has property in a country outside India” by Act 23 of 2019, S. 52(b)(i) (w.e.f.
1-9-2019).
3878. Subs. for “forward to the Board” by Act 23 of 2019, S. 52(b)(ii) (w.e.f. 1-9-2019).
3879. 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 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.”.
3882. Section 230-A omitted by Act 14 of 2001, S. 77 (w.e.f. 1-6-2001). Prior to omission it
read:
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“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.”.
3883. Ins. by Act 38 of 2020, S. 4(XXXI) (w.e.f. 1-11-2020).
3884.
Ins. by Finance Act 6 of 2022, S. 65(i) (w.e.f. 1-4-2022).
3885. Subs. for “one and one fourth” by Act 54 of 2003, Section 12 (w.e.f. 8-9-2003).
3886.
3887. Ins. by Act 23 of 2019, S. 53 (w.r.e.f. 1-4-2007).
3889. Subs. by Finance Act 6 of 2022, S. 65(ii) (w.e.f. 1-4-2022). Prior to substitution it read
as:
‘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.’
3891. 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-
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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.”.
3892. Ins. by Finance Act, 2003, S. 89(b)(i) (w.e.f. 1-6-2003).
3893. Subs. for “one and one fourth” by Act 54 of 2003, Section 12 (w.e.f. 8-9-2003).
3894. Ins. by Finance Act, 2003, S. 89(b)(ii) (w.e.f. 1-6-2003).
3895.
Subs. for “one and one-fourth” by Act 54 of 2003, Section 13 (w.e.f. 8-9-2003).
3896. Subs. by Act 22 of 1995, S. 42 and deemed to have come to effect w.e.f. 1-4-1989.
3900.
Ins. by Finance Act, 2003, S. 90(a) (w.e.f. 1-6-2003).
3901. Subs. by Finance Act 6 of 2022, S. 66 (w.e.f. 1-4-2022). Prior to substitution it read as:
‘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.’
3902.
3903. Subs. by Act 20 of 2015, S. 57(ii) (w.e.f. 1-6-2015).
3904. The words “or an order of the Settlement Commission under sub-section (4) of Section
245-D” omitted by Act 20 of 2015, S. 57(iii) (w.e.f. 1-6-2015).
3905.
3906.
Subs. by Act 28 of 2016, S. 91(i) (w.e.f. 1-6-2016).
3907. Subs. for “an eligible assessee in respect of the eligible business referred to in Section 44
-AD” by Act 7 of 2017, S. 75(i) (w.e.f. 1-4-2017).
3909.
Subs. for “an eligible assessee in respect of the eligible business referred to in Section 44
-AD” by Act 7 of 2017, S. 75(ii) (w.e.f. 1-4-2017).
3910.
Subs. for “Section 2” by Act 28 of 2016, S. 91(iii)(I) (w.e.f. 1-6-2016).
3911. Ins. by Act 28 of 2016, S. 91(iii)(II) (w.e.f. 1-6-2016).
3912.
Subs. for “first time,” by Act 7 of 2017, S. 75(iii)(A) (w.e.f. 1-4-2017).
3913. Subs. by Act 13 of 2021, S. 59(i) (w.e.f. 1-4-2021).
3914. Subs. for “or clause (b)” by Act 28 of 2016, S. 91(iii)(III) (w.e.f. 1-6-2016).
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3915. Ins. by Act 7 of 2017, S. 75(iii)(C) (w.e.f. 1-4-2017).
3916. Subs. for the words “instalment of advance tax which is immediately due or where no
such instalment is so due” by Act 33 of 1996, S. 54 (w.e.f. 1-4-1997).
3917.
Ins. by Act 1 of 2001, S. 4 (w.e.f. 4-1-2001).
3918. Ins. by Act 4 of 2001, S. 7 (w.e.f. 3-2-2001).
3920.
Renumbered by Act 13 of 2021, S. 59(ii) (w.e.f. 1-4-2021).
3923.
3924. Subs. for “two-third” by Act 54 of 2003, Section 15 (w.e.f. 8-9-2003).
3925. The Explanation renumbered as “Explanation-1” and Explanation 2 inserted by Act 23 of

2012, Section 88 (w.r.e.f. 1-6-2003).
3926.
The Explanation renumbered as “Explanation-1” and Explanation 2 inserted by Act 23 of
2012, Section 88 (w.r.e.f. 1-6-2003).
3927. Ins. by Act 7 of 2017, S. 76 (w.e.f. 1-4-2018).
“(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.”
3929. Ins. by Act 12 of 2020, S. 96 (w.e.f. 1-6-2020).
3930. Ins. by Act 13 of 2021, S. 61 (w.e.f. 1-4-2021).
3931.
3932. Subs. for “in the prescribed form and verified in the prescribed manner” by Act 23 of
2019, S. 56(a) (w.e.f. 1-9-2019).
3933.
Omitted by Act 23 of 2019, S. 56(b) (w.e.f. 1-9-2019).
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3934.
3935. 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 previous approval of the Chief Commissioner or Commissioner, withhold the
refund till such time as the Chief Commissioner or Commissioner may determine.”.
3936.
Ins. by Act 7 of 2017, S. 77 (w.e.f. 1-4-2017).
3937. Ins. by Act 8 of 2023, S. 97 (w.e.f. 1-4-2023).
3939.
3940. Subs. by Act 28 of 2016, S. 92(A) (w.e.f. 1-6-2016).
3941.
3942.
Subs. for “two-third” by Act 54 of 2003, Section 16 (w.e.f. 8-9-2003).
3943.
Ins. by Act 28 of 2016, S. 92(B) (w.e.f. 1-6-2016).
3945.
3946.
Ins. by Act 7 of 2017, S. 78(ii)(a) (w.e.f. 1-4-2017).
3947. Ins. by Act 28 of 2016, S. 92(C) (w.e.f. 1-6-2016).
3948.
Ins. by Act 7 of 2017, S. 78(ii)(b) (w.e.f. 1-4-2017).
3951.
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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), Principal Commissioner or Commissioner (Appeals) or Principal Chief
Commissioner or Chief Commissioner or 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.”
3954.
3955. Omitted by Act 25 of 2014, S. 65(A) (w.e.f. 1-10-2014).
3956.
Subs. by Act 20 of 2015, S. 58(A) (w.e.f. 1-6-2015).
3957. Omitted by Act 14 of 2010, Section 45 (w.e.f. 1-6-2010).
3960. Subs. by Act 25 of 2014, S. 65(B)(c ) (w.e.f. 1-10-2014).
3961. Subs. for “from the 1st day of the assessment year and concluded on the date on which
the assessment is made” by Act 20 of 2015, S. 58(B) (w.e.f. 1-6-2015).
3962. Subs. for “two years from the end of the relevant assessment year” by Act 7 of 2017, S.
79 (w.e.f. 1-4-2017).
3963. Ins. by Act 13 of 2021, S. 62(i) (w.r.e.f. 1-2-2021).
3964. Ins. by Act 13 of 2021, S. 62(ii) (w.r.e.f. 1-2-2021).
3965.
3968. Ins. by Act 49 of 1991, S. 65 (w.e.f. 1-10-1991).
3969. Ins. by Act 49 of 1991, S. 65 (w.e.f. 1-10-1991).
3975.
Ins. by Act 8 of 2011, Section 29(a) (w.e.f. 1-6-2011).
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3976.
Ins. by Act 8 of 2011, Section 29(b) (w.e.f. 1-6-2011).
3977. Subs. for “at any time during the previous year” by Act 23 of 2012, Section 90 (w.e.f. 1-
7-2012).
3978. Subs. for “at any time during the previous year” by Act 23 of 2012, Section 90 (w.e.f. 1-
7-2012).
3982.
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.”.
3985.
3989.
3995. Ins. by Act 13 of 2021, S. 68(i) (w.r.e.f. 1-2-2021).

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4000.
4006. Subs. for “fifteen per cent per annum” by Act 22 of 2007, Section 64 (w.e.f. 1-4-2008).
4007.
4008. Subs. for “amend any order passed by it” by Act 13 of 2021, S. 68(ii) (w.r.e.f. 1-2-
2021).
4009.
Ins. by Act 13 of 2021, S. 68(iii) (w.r.e.f. 1-2-2021).
4010. Subs. by Act 8 of 2023, S. 100 (w.r.e.f. 1-2-2021). Prior to substitution it read as:
“(iv) where the time-limit for amending any order or filing of rectification application as per
sub-section (6-B) expires on or after the 1st day of February, 2021, in computing the period
of limitation, the period commencing from the 1st February, 2021 and ending on the end of
the month in which the Interim Board is constituted shall be excluded and where immediately
after exclusion of such period, the remaining period available to the Interim Board for
amending the order or to the Principal Commissioner or Commissioner or the applicant for filing
of application is less than sixty days, such remaining period shall be extended to sixty days
and the period of limitation shall be deemed to have been extended accordingly.”
4014.
4015.
4017.
Ins. by Act 20 of 2015, S. 60 (w.e.f. 1-6-2015).
4020.
4021. Ins. by Act 20 of 2015, S. 61(A) (w.e.f. 1-6-2015).

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4022. Ins. by Act 20 of 2015, S. 61(B) (w.e.f. 1-6-2015).
4023.
4025. Subs. for “he shall not be entitled to apply” by Act 20 of 2015, S. 62(A) (w.e.f. 1-6-
2015).
4026.
Subs. for “shall not be subsequently entitled” by Act 20 of 2015, S. 62(B) (w.e.f. 1-6-
2015).
4029.
Ins. by Act 13 of 2021, S. 74 (w.e.f. 1-4-2021).
4030.
4031. Ins. by Act 8 of 2023, S. 101 (w.e.f. 1-4-2023).
4032.
Clauses (a) & (b) Subs. by Act 10 of 2000, S. 63 (w.e.f. 1-6-2000). Prior to substitution
clauses (a) & (b) 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;”.

4033.
Ins. by Finance Act, 2003, S. 92(a)(i) and deemed to have been inserted w.e.f. 1-
6-2000.
4034. Subs. for “a” by Finance Act, 2003, S. 92(a)(ii) and deemed to have been
4035. Ins. by Act 25 of 2014, S. 66(A)(I) (w.e.f. 1-10-2014).
4036.
Ins. by Act 25 of 2014, S. 66(A)(II) (w.e.f. 1-10-2014).
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4037. Ins. by Act 23 of 2012, Section 91(I) (w.e.f. 1-4-2013).
4038. Existing sub-clause (iv) omitted by Act 17 of 2013, Section 53(i)(I) (w.r.e.f. 1-4-2013).
4039.
New sub-clause (iv) inserted by Act 17 of 2013, Section 53(i)(II) (w.e.f. 1-4-2015).
4040. Ins. by Finance Act, 2003, S. 92(b) (w.e.f. the date on which the Finance Bill
receives the assent of the President).
4041.
4042.
Omitted by Act 13 of 2021, S. 75(i) (w.e.f. 28-3-2021). Prior to omission it read as:
“(B) an applicant as defined in clause (c ) of Section 28-E of the Customs Act, 1962
(52 of 1962);”
4043. Omitted by Act 13 of 2021, S. 75(i) (w.e.f. 28-3-2021). Prior to omission it read as:
“(C) an applicant as defined in clause (c ) of Section 23-A of the Central Excise Act,
1944 (1 of 1944);”
4044.
Omitted by Act 13 of 2021, S. 75(i) (w.e.f. 28-3-2021). Prior to omission it read as:
“(D) an applicant as defined in clause (b) of Section 96-A of the Finance Act, 1994
(32 of 1994);”
4045.
4047. Subs. by Act 25 of 2014, S. 66(C) (w.e.f. 1-10-2014).
4048.
4050. Ins. by Act 13 of 2021, S. 76 (w.e.f. 1-4-2021).
4052.
4053. Ins. by Act 7 of 2017, S. 81(a)(i) (w.e.f. 1-4-2017).
4056. Ins. by Act 7 of 2017, S. 81(a)(iii) (w.e.f. 1-4-2017).
4057.
4059. Ins. by Act 7 of 2017, S. 174(a), dated 31-3-2017 (w.e.f. 26-5-2017).

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4060. Ins. by Act 13 of 2021, S. 77 (w.e.f. 1-4-2021).
4062. Ins. by Act 13 of 2021, S. 78 (w.e.f. 1-4-2021).
4063. Ins. by Act 7 of 2017, S. 82 (w.e.f. 1-4-2017).
4064. The words “or under Chapter V of the Customs Act, 1962 (52 of 1962)” omitted by Act
13 of 2018, S. 51 (w.e.f. the date to be notified).
4065. The words “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)” omitted by Act 13 of 2021, S. 79(a)
(w.e.f. 28-3-2021).
4066. Subs. for “two thousand five hundred rupees” by Act 23 of 2012, Section 92 (w.e.f. 1-7-
2012).
4067.
4070. 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:”.
4071. Ins. by Act 17 of 2013, Section 54(b) (w.e.f. 1-4-2015).
4073. Omitted by Act 17 of 2013, Section 54(a) (w.r.e.f. 1-4-2013).
4076.
Ins. by Act 13 of 2021, S. 80 (w.e.f. 1-4-2021).
4077. Ins. by Act 8 of 2023, S. 102 (w.e.f. 1-4-2023).
4079.
Subs. for “245-R” by Act 23 of 2004, Section 52 (w.r.e.f. 1-10-1998).

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4081. Ins. by Act 13 of 2021, S. 80 (w.e.f. 1-4-2021).
4083.
The words “by it” omitted by Act 13 of 2021, S. 82(a) (w.e.f. 1-4-2021).
4086. Ins. by Act 13 of 2021, S. 83 (w.e.f. 1-4-2021).
4087. Ins. by Act 13 of 2021, S. 84 (w.e.f. 1-4-2021).
4088.
Ins. by Act 13 of 2021, S. 85 (w.e.f. 1-4-2021).
4089. Subs. for “A.— Appeals to the Deputy Commissioner (Appeals) and Commissioner
(Appeals)” by Act 8 of 2023, S. 103(a) (w.e.f. 1-4-2023).
4090.
Subs. by Act 8 of 2023, S. 103(b) (w.e.f. 1-4-2023). Prior to substitution it read as:
“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) 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 , 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; 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-
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section (2) of Section 186; 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, [* * *], 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.
(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 Principal Commissioner or Commissioner
(Appeals) and the 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
Principal Commissioner or Commissioner (Appeals) before the 1st day of June, 2000 against
such order—
(a) 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;
(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,
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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 or Section 271-BB;
(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 Principal Director
General or Director General, or Principal Chief Commissioner or Chief Commissioner or 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 Principal Commissioner
or Commissioner (Appeals) if the Board or, as the case may be, the Principal Director General
or Director General, or Principal Chief Commissioner or Chief Commissioner or 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 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 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.”
4091.
Ins. by Act 21 of 1998, S. 49 (w.e.f. 1-10-1998).
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4092.
4093.
Subs. for “Any assessee aggrieved” by Act 23 of 2012, Section 94(i) (w.e.f. 1-7-2012).
4096.
4097. Subs. by Act 23 of 2012, Section 94(ii)(I) (w.e.f. 1-7-2012).
4098. 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).
4099.
4100. Subs. by Act 23 of 2012, Section 94(ii)(II) (w.e.f. 1-4-2013).
4101.
Ins. by Act 17 of 2013, Section 55(i)(II) (w.e.f. 1-4-2016)
4102.
Omitted by Act 17 of 2013, Section 55(i)(I) (w.r.e.f. 1-4-2013)
4104. Subs. by Act 23 of 2012, Section 94(iii) (w.e.f. 1-4-2013).
4105.
Ins. by Act 17 of 2013, Section 55(ii)(II) (w.e.f. 1-4-2016)
4106. Omitted by Act 17 of 2013, Section 55(ii)(I) (w.r.e.f. 1-4-2013)
4108.
Subs. for “under Section 153-A” by Act 23 of 2012, Section 94(iv) (w.r.e.f. 1-10-2009).
4109. Subs. for “Dispute Resolution Panel” by Act 23 of 2012, Section 94(iv)(II) (w.e.f. 1-4-
2013).
4110. Omitted by Act 17 of 2013, Section 55(iii)(I) (w.r.e.f. 1-4-2013)
4111. Ins. by Act 17 of 2013, Section 55(iii)(II) (w.e.f. 1-4-2016)
4112. Ins. by Act 23 of 2012, Section 94(v) (w.e.f. 1-7-2012).
4113. Subs. for “of assessment or reassessment” by Act 23 of 2019, S. 57 (w.e.f. 1-9-2019).
4114. Ins. by Act 23 of 2012, Section 94(vi) (w.e.f. 1-4-2013).
4115. Omitted by Act 17 of 2013, Section 55(iv)(I) (w.r.e.f. 1-4-2013)
4116. Ins. by Act 17 of 2013, Section 55(iv)(II) (w.e.f. 1-4-2016)
4118.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
4121. Ins. by Act 23 of 2012, Section 94(vii) (w.e.f. 1-7-2012).
4124.
Subs. for “Section 271-C” by Act 21 of 2006, Section 51 (w.e.f. 1-4-2007).
4126.
4129. Section 247 omitted by Act 18 of 1992, S. 84 (w.e.f. 1-4-1993).
4133.
4136.
Ins. by Act 27 of 1999, S. 83 (w.e.f. 1-6-1999).
4138. Subs. for “excluded, or” by Act 28 of 2016, S. 93(i) (w.e.f. 1-4-2017).
4140. Ins. by Act 10 of 2000, S. 67 (w.e.f. 1-6-2000).
4141.
Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by Act 21
of 1998, S. 50(b) (w.e.f. 1-10-1998).
4143. Subs. for “Commissioner (Appeals)” by Act 8 of 2023, S. 104(b) (w.e.f. 1-4-2023).
4144. Ibid.
4146. Subs. for “Commissioner (Appeals)” by Act 8 of 2023, S. 104(c ) (w.e.f. 1-4-2023).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
4147. Ibid.
4149. Subs. for “Commissioner (Appeals)” by Act 8 of 2023, S. 105(a) (w.e.f. 1-4-2023).
4150. Ibid.
4152.
Subs. for “Commissioner (Appeals)” by Act 8 of 2023, S. 105(a) (w.e.f. 1-4-2023).
4153. Ibid.
4156.
Ibid.
4157.
4159. Ibid.
4161.
4162. Ibid.
4165. Ibid.
4166.
4167.
4168. Subs. by Act 8 of 2023, S. 105(b) (w.e.f. 1-4-2023). Prior to substitution it read as:
“(6-A) In every appeal, the 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.”
4169. Ins. by Act 12 of 2020, S. 97 (w.e.f. 1-4-2020).
4170. Ins. by Act 8 of 2023, S. 105(c ) (w.r.e.f. 1-4-2022).
4171.
Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by Act 21
of 1998, S. 65(b) (w.e.f. 1-10-1998).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
4173.
4174.
4176. Subs. for “Powers of the [* * *] [Principal Commissioner or Commissioner (Appeals)” by

Act 8 of 2023, S. 106(i) (w.e.f. 1-4-2023).
4177.
Ibid.
4178.
4179. 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;”.
4181.
4182. Words “Deputy Commissioner (Appeals) or, as the case may be, the” omitted by Act 21
of 1998, S. 65(b) (w.e.f. 1-10-1998).
4184.
Subs. for “Commissioner (Appeals)” by Act 8 of 2023, S. 106(iii) (w.e.f. 1-4-2023).
4185. Subs. for “an appeal, the Commissioner (Appeals)” by Act 8 of 2023, S. 106(iv)(a) (w.e.f.
1-4-2023).
4186. Subs. for “raised before the Commissioner (Appeals)” by Act 8 of 2023, S. 106(iv)(b)
(w.e.f. 1-4-2023).
4187.
Subs. for “Central” by Act 21 of 1998, S. 51(a)(i) (w.e.f. 1-8-1998).
4188.
Subs. for “I” by Act 21 of 1998, S. 51(a)(ii) (w.e.f. 1-8-1998).
4190.
4192. The words “the Senior Vice-President or” omitted by Act 28 of 2016, S. 94(a) (w.e.f. 1-
6-2016).
4193.
Omitted by Act 28 of 2016, S. 94(b) (w.e.f. 1-6-2016).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
4194. The words “Senior Vice-President or a” omitted by Act 28 of 2016, S. 94(c ) (w.e.f. 1-6-
2016).
4195. Ins. by Act 7 of 2017, S. 174(b), dated 31-3-2017 (w.e.f. 26-5-2017).
4196.
Subs.. for “Part XIV of Chapter VI of the Finance Act, 2017, shall be governed by the
provisions of Section 184 of that Act” by Act 33 of 2021, S. 11 (w.r.e.f. 4-4-2021).
4199.
Ins. by Act 28 of 2016, S. 95(A)(i) (w.e.f. 1-4-2017).
4200. Ins. by Act 8 of 2023, S. 107(a)(A) (w.e.f. 1-4-2023).
4201. Ins. by Act 13 of 2018, S. 52 (w.e.f. 1-4-2018).
4202.
Ins. by Act 8 of 2023, S. 107(a)(B) (w.e.f. 1-4-2023).
4204. Subs. by Act 8 of 2023, S. 107(a)(C) (w.e.f. 1-4-2023). Prior to substitution it read as:
“(c ) an order passed by a Principal Commissioner or Commissioner under Section 12-AA or

Section 12-AB or under clause (vi) of sub-section (5) of Section 80-G or under Section 263
or under Section 270-A 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 Principal
Chief Commissioner or Chief Commissioner or a Principal Director General or Director General or
a Principal Director or Director under Section 272-A; or”
4206.
Subs. for “Section 147” by Act 23 of 2012, Section 95(A)(i) (w.e.f. 1-10-2009).
4207.
Ins. by Act 23 of 2012, Section 95(A)(ii) (w.e.f. 1-4-2013).
4208. Omitted by Act 17 of 2013, Section 57(a) (w.r.e.f. 1-4-2013).
4209. Ins. by Act 17 of 2013, Section 57(b) (w.e.f. 1-4-2016).
4210.
4212. Ins. by Act 7 of 2017, S. 83 (w.e.f. 1-4-2017).
4213.
4216.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
4218. Omitted by Act 28 of 2016, S. 95(B)(a) (w.e.f. 1-6-2016).
4220. Ins. by Act 22 of 1995, S. 45 (w.e.f. 1-7-1995).
4221. Omitted by Act 28 of 2016, S. 95(B)(a) (w.e.f. 1-6-2016).
4223. Subs. for “against the order of the Commissioner (Appeals)” by Act 8 of 2023, S. 107(c )
(i) (w.e.f. 1-4-2023).
4224. Subs. for “any part of the order of the Commissioner (Appeals)” by Act 8 of 2023, S. 107
(c )(ii) (w.e.f. 1-4-2023).
4225. Sub-section (6) Subs. by sub-sections (6) and (7) by Act 21 of 1998, S. 52(c ) (w.e.f. 1-
10-1998).
4226.
4227. Subs. by Act 28 of 2016, S. 95(C) (w.r.e.f. 1-7-2012).
4228.
Ins. by Act 38 of 2020, S. 4(XXXII)(b) (w.e.f. 1-11-2020).
4229. Subs. for “2022” by Finance Act 6 of 2022, S. 71 (w.e.f. 1-4-2022).
4230. Subs. for “four years from the date of the order” by Act 28 of 2016, S. 96(a) (w.e.f. 1-6
-2016).
4231. Ins. by Act 21 of 1998, S. 53 (w.e.f. 1-10-1998).
4233. Ins. by Act 10 of 2000, S. 68 (w.e.f. 1-6-2000).
4234. The words “or sub-section (2-A)” omitted by Act 28 of 2016, S. 96(b) (w.e.f. 1-6-
2016).
4236.
4237. 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:”
4238.
4239. The words “Chief Commissioner or” omitted by Act 49 of 1991, S. 67 (w.e.f. 27-9-1991).
4241. Subs. by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).
4242. Subs. for “fifteen lakh rupees” by Act 28 of 2016, S. 97 (w.e.f. 1-6-2016).
4243. Ins. by Act 13 of 2021, S. 86 (w.e.f. 1-4-2021).
4244. Subs. for “2023” by Finance Act 6 of 2022, S. 72 (w.e.f. 1-4-2022).
4245. Ins. by Act 21 of 1998, S. 56 (w.e.f. 1-10-1998).
4246.
Omitted by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).
4247. Omitted by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).
4248. Subs. by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).
4249. Ins. by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).
4250.
Ins. by Act 27 of 1999, S. 87(a)(i) (w.e.f. 1-6-1999).
4253. Subs. for the words “communicated to the appellant” by Act 27 of 1999, S. 87(a)(ii)
(w.e.f. 1-6-1999).
4255.
4256. 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;”
4260. Ins. by Act 21 of 1998, S. 59 (w.e.f. 1-10-1998).

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4263. Ins. by Finance Act 6 of 2022, S. 73(a) (w.e.f. 1-4-2022).
4264. Subs. for “including an order enhancing or modifying the assessment, or cancelling the
assessment and directing a fresh assessment” by Finance Act 6 of 2022, S. 73(b) (w.e.f. 1-4
-2022).
4267.
Ins. by Finance Act 6 of 2022, S. 73(a) (w.e.f. 1-4-2022).
4268.
4269. Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
4270. Ins. by Finance Act 6 of 2022, S. 73(c) (w.e.f. 1-4-2022).
4271.
4272. Ins. by Act 38 of 2020, S. 4(XXXIII) (w.e.f. 1-11-2020).
4274.
4275. Ins. by Act 20 of 2015, S. 67 (w.e.f. 1-6-2015).
4276.
Ins. by Finance Act 6 of 2022, S. 73(a) (w.e.f. 1-4-2022).
4277.
Ins. by Act 38 of 2020, S. 4(XXXIII) (w.e.f. 1-11-2020).
4278.
Ins. by Finance Act 6 of 2022, S. 73(d) (w.e.f. 1-4-2022).
4280.
4281.
Ins. by Act 38 of 2020, S. 4(XXXIV) (w.e.f. 1-11-2020).
4283.
4285. Ins. by Act 38 of 2020, S. 4(XXXIV) (w.e.f. 1-11-2020).
4286.
4287. Ins. by Act 38 of 2020, S. 4(XXXIV) (w.e.f. 1-11-2020).

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4289.
Subs. for “Commissioner (Appeals)” by Act 8 of 2023, S. 108 (w.e.f. 1-4-2023).
4291. Subs. for “Commissioner (Appeals)” by Act 8 of 2023, S. 108 (w.e.f. 1-4-2023).
4292.
4294. Subs. for “twenty-five rupees” by Act 14 of 2001, S. 85 (w.e.f. 1-6-2001).
4295.
Ins. by Act 21 of 1998, S. 60 (w.e.f. 1-10-1998).
4296.
Ins. by Act 49 of 2005, Section 30 and Schedule (w.e.f. 28-12-2005).
4298.
4300.
4301.
Ins. by Act 38 of 2020, S. 4(XXXV) (w.e.f. 1-11-2020).
4303. Ins. by Act 10 of 2000, S. 69 (w.e.f. 1-6-2000).
4304.
1-10-1998).
4307.
The words “or an application” Ins. by Act 12 of 1990, S. 42 (w.e.f. 1-4-1990). Earlier
these words were omitted by Direct Tax Laws (Amendment) Act, 1987 (4 of 1988), S. 102
(w.e.f. 1-4-1989).
4309.
Omitted by Act 32 of 1994, S. 47(a) (w.e.f. 1-4-1995).
4310.
The word “Goa,” Omitted by Act 32 of 1994, S. 47(b) (w.e.f. 1-4-1995).
4311.
4313.

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4317.
4318. Subs. for “bank account” by Act 23 of 2019, S. 58 (w.e.f. 1-9-2019).
4320.
‘(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);’
4321. Ins. by Act 7 of 2017, S. 84 (w.e.f. 1-4-2017).
4323. Ins. by Act 23 of 2019, S. 60 (w.e.f. 1-11-2019).
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:
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.”.
4325. Ins. by Act 20 of 2015, S. 69(A)(a) (w.e.f. 1-6-2015).
4326. Ins. by Act 20 of 2015, S. 69(A)(b) (w.e.f. 1-6-2015).
4327.
Ins. by Act 25 of 2014, S. 69 (w.e.f. 1-4-2015).
4331.
Ins. by Act 20 of 2015, S. 69(D) (w.e.f. 1-6-2015).
4332. Ins. by Finance Act, 2003, S. 94 and deemed to have been inserted w.e.f. 1-6-
2002.
4333. Ins. by Act 20 of 2015, S. 69(E) (w.e.f. 1-6-2015).
4335.
‘(ii) “cooperative bank” shall have the meaning assigned to it in Part V of the Banking
Regulation Act, 1949;’
4336. Ins. by Act 20 of 2015, S. 69(F) (w.e.f. 1-6-2015).
4339. Subs. by Act 38 of 1993 (w.e.f. 1-6-1993).
4340. Ins. by Act 22 of 1995, S. 46 (w.e.f. 1-7-1995).
4341. Subs. for the words “The appropriate authority” by Act 38 of 1993 (w.e.f. 17-11-1992).
4342. Omitted by Act 38 of 1993 with retrospective effect from 17-11-1992. Prior to omission
it read as follows: “and for reasons to be recorded in writing”.
4343. Ins. by Act 38 of 1993 (w.e.f. 1-6-1993).

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4344. Ins. by Act 22 of 1995, S. 47 (w.e.f. 1-7-1995).
4345. The words “Provided further” Subs. by the words “Provided also” by Act 38 of 1993
(w.e.f. 1-6-1993).
4346. Subs. by ibid (w.e.f. 1-6-1993).
4347.
Ins. by ibid (w.e.f. 1-6-1993).
4348. Ins. by Act 38 of 1993 (w.r.e.f 17-11-1992).
4349.
Subs. by Act 38 of 1993, for the words “free from all encumbrances” with retrospective
effect from 17-11-1992.
4350. Ins. by ibid with retrospective effect from 17-11-1992.
4351. Ins. by ibid with retrospective effect from 17-11-1992.
4352.
4353.
4354. Ins. by Act 20 of 2002, S. 100 (w.e.f. 1-7-2002).
4355.
Ins. by Act 28 of 2016, S. 98 (w.e.f. 1-4-2017).
4357.
Subs. for “no return of income has been furnished” by Act 23 of 2019, S. 62(A) (w.r.e.f.
1-4-2017).
4358.
Subs. for “no return of income has been filed” by Act 23 of 2019, S. 62(B) (w.r.e.f. 1-4-
2017).
4359. Subs. for “no return has been furnished” by Act 23 of 2019, S. 62(C) (w.r.e.f. 1-4-2017).
4361.
4362.
4363. Ins. by Act 28 of 2016, S. 99 (w.e.f. 1-4-2017).
4364.
Ins. by Act 8 of 2023, S. 113 (w.e.f. 1-4-2023).
1-10-1998).
4367.

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4370.
4373.
Subs. for “in addition to any tax payable” by Act 20 of 2002, S. 101(b) (w.e.f. 1-4-
2003).
4374.
Subs. for “a sum which shall not be less than one thousand rupees but which may extend
to twenty-five thousand rupees” by Act 14 of 2001, S. 86(a) (w.e.f. 1-6-2001).
4376.
Subs. for “in addition to any tax payable” by Act 20 of 2002, S. 101(c ) (w.e.f. 1-4-
2003).
4377.
4379.
1-10-1998).
4382.
Ins. by Act 20 of 2002, S. 101(d) (w.e.f. 1-6-2002).
4384. The words “who has not previously been assessed under this Act” omitted by Act 20 of
2002, S. 101(e) (w.e.f. 1-4-2003).
4385.
1-10-1998).
4386.
4388.
4391.

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4394.
Subs. for “international transaction” by Act 23 of 2012, Section 97 (w.e.f. 1-4-2013).
4397. Ins. by Act 20 of 2002, S. 101(g) (w.e.f. 1-6-2002).
1-10-1998).
4404. Ins. by Act 28 of 2016, S. 100 (w.e.f. 1-4-2017).
4405. Ins. by Act 28 of 2016, S. 101 (w.e.f. 1-4-2017).
4406. Ibid.
4407.
4409. Subs. for “a sum which shall not be less than two thousand rupees but which may extend
to one hundred thousand rupees” by Act 14 of 2001, S. 87 (w.e.f. 1-6-2001).
4411.
Renumbered as sub-section (1) by Act 28 of 2016, S. 102(a) (w.e.f. 1-4-2017).
4413.

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4421. Subs. for “which shall not be less than thirty per cent but which shall not exceed ninety
per cent” by Act 28 of 2016, S. 103(a) (w.e.f. 1-4-2017).
4422.
4423. Subs. for “under Section 153-A” by Finance Act 6 of 2022, S. 74(c) (w.r.e.f. 1-4-2021).
4427.
4428. Ins. by Act 12 of 2020, S. 100 (w.e.f. 1-4-2020).
4429. Ins. by Finance Act 6 of 2022, S. 76(i) (w.e.f. 1-4-2022).
4431. Ins. by Finance Act 6 of 2022, S. 76(ii) (w.e.f. 1-4-2022).
4432.
4434. Ins. by Act 22 of 1995, S. 48 (w.e.f. 1-7-1995).
4435. Subs. for “one hundred thousand rupees” by Act 14 of 2010, Section 50 (w.e.f. 1-4-
2011).
4436. Ins. by Act 14 of 2001, S. 89 (w.e.f. 1-4-2002).
4438. Subs. for “pay the whole” by Act 8 of 2023, S. 118(A)(I) (w.e.f. 1-4-2023).
4439. The word “or” omitted by Act 8 of 2023, S. 118(A)(II) (w.e.f. 1-4-2023).
4440.
The word “second” omitted by Finance Act 6 of 2022, S. 78 (w.e.f. 1-4-2022).
4441. Ins. by Act 8 of 2023, S. 118(A)(III) (w.e.f. 1-4-2023).
4442. Ins. by Act 8 of 2023, S. 118(A)(IV) (w.e.f. 1-7-2023).
4445. 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).
4446.
Ins. by Act 20 of 2015, S. 71 (w.e.f. 1-6-2015).
4447. Ins. by Act 7 of 2017, S. 85 (w.e.f. 1-4-2017).

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4448. Ins. by Act 23 of 2019, S. 63 (w.e.f. 1-11-2019).
4449.
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).
4451. Ins. by Act 20 of 2015, S. 72 (w.e.f. 1-6-2015).
4452.
“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.”
4454. Ins. by Act 7 of 2017, S. 86 (w.e.f. 1-4-2018).
4456.
Subs. for “annual information return” by Act 25 of 2014, S. 70(i) (w.e.f. 1-4-2015).
4457.
Subs. for “an annual information return” by Act 25 of 2014, S. 70(ii) (w.e.f. 1-4-2015).
4458. Subs. for “return” by Act 25 of 2014, S. 70(iii) (w.e.f. 1-4-2015).
4459.
Subs. for “one hundred rupees” by Act 13 of 2018, S. 53(a) (w.e.f. 1-4-2018).
4460. Subs. for “return” by Act 25 of 2014, S. 70(iii) (w.e.f. 1-4-2015).
4461. Subs. for “five hundred rupees” by Act 13 of 2018, S. 53(b) (w.e.f. 1-4-2018).
4462.
Subs. for “return” by Act 25 of 2014, S. 70(iii) (w.e.f. 1-4-2015).
4463. Ins. by Act 25 of 2014, S. 71 (w.e.f. 1-4-2015).
4464. Renumbred by Act 8 of 2023, S. 119 (w.e.f. 1-4-2023).
4465.
The words “clause (k) of” omitted by Act 23 of 2019, S. 64 (w.e.f. 1-9-2019).
“then, the prescribed income tax authority may direct that such person shall pay, by way of
penalty, a sum of fifty thousand rupees.”
4467.
Ins. by Act 20 of 2015, S. 73 (w.e.f. 1-4-2016).

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4469. Ins. by Act 14 of 2001, S. 91 (w.e.f. 1-4-2002).
4470.
4471. Ins. by Act 25 of 2014, S. 72 (w.e.f. 1-10-2014).
4473.
4474. Ins. by Act 20 of 2015, S. 74 (w.e.f. 1-4-2016).
4475. Ins. by Act 28 of 2016, S. 104 (w.e.f. 1-4-2017).
4476.
4477.
Subs. for “a person shall be liable to pay” by Act 25 of 2014, S. 73 (w.e.f. 1-10-2014).
4478. Ins. by Act 20 of 2015, S. 75 (w.e.f. 1-6-2015).
4479.
Ins. by Act 7 of 2017, S. 87 (w.e.f. 1-4-2017).
4482.
Ins. by Act 38 of 2020, S. 4(XXXVII) (w.e.f. 1-11-2020).
4483. Ins. by Act 28 of 2016, S. 105(i)(b) (w.e.f. 1-4-2017).
4484. Subs. for “a sum which shall not be less than five hundred rupees but which may extend
to ten thousand rupees” by Act 14 of 2001, S. 92(a) (w.e.f. 1-6-2001).
4485.
Words “or Section 206-A or Section 206-B” omitted by Act 33 of 1996 (w.e.f. 1-10-
1996).
4486. Ins. by Act 49 of 1991, S. 68 (w.e.f. 1-10-1991).
4487.
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”.
4488.
Ins. by Act 49 of 1991, S. 68 (w.e.f. 1-10-1991).
4489.
4490.
4492.
4493. Subs. for “qurterly return” by Act 33 of 2009, Section 75 (w.e.f. 1-10-2009).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
4495. Subs. for “one hundred rupees” by Finance Act 6 of 2022, S. 79 (w.e.f. 1-4-2023).
4496. Subs. for the words “which shall not be less than one hundred rupees, but which may
extend to two hundred rupees” by Act 27 of 1999, S. 88 (w.e.f. 1-6-1999).
4497. Ins. by Act 49 of 1991, S. 68 (w.e.f. 1-10-1991).
4498.
Ins. by Act 21 of 1998, S. 62 (w.e.f. 1-4-1999).
4500. Subs. for “statements under sub-section (3) of Section 200 or the proviso to sub-section
(3) of Section 206-C” by Act 20 of 2015, S. 76(b) (w.e.f. 1-6-2015).
4504.
4506. Ins. by Act 20 of 2002, S. 104 (w.e.f. 1-6-2002).
4507. Subs. for “permanent account number” by Act 23 of 2019, S. 65(a)(i) (w.e.f. 1-9-2019).
4508.
4509. Subs. for “ten thousand rupees” by Act 23 of 2019, S. 65(a)(ii) (w.e.f. 1-9-2019).
4510.
4511. Subs. for “sub-section (2)” by Act 23 of 2019, S. 65(c ) (w.e.f. 1-9-2019).
4512. Subs. for “a sum which may extend to five thousand rupees” by Act 14 of 2001, S. 93
(w.e.f. 1-6-2001).
4515. Ins. by Act 20 of 2002, S. 105 (w.e.f. 1-6-2002).
4516.
4519. The words “Chief Commissioner or” omitted by Act 38 of 1993 (w.e.f. 1-6-1993).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
4522. Ins. by Act 28 of 2016, S. 106(i)(a)(I) (w.e.f. 1-4-2017).
4523. Ins. by Act 28 of 2016, S. 106(i)(a)(II) (w.e.f. 1-4-2017).
4524. Ins. by Act 28 of 2016, S. 106(i)(b) (w.e.f. 1-4-2017).
4525.
Subs. by Act 38 of 1993 (w.e.f. 1-6-1993).
4526.
4529. Ins. by Act 49 of 1991, S. 70 (w.e.f. 27-9-1991).
4530.
The words “Chief Commissioner or” omitted by Act 38 of 1993 (w.e.f. 1-6-1993).
4532. Subs. by Finance Act 38 of 1993 (w.e.f. 1-6-1993).
4534.
4535.
Subs. for “Director General” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
4537.
Ins. by Act 32 of 1994 (w.e.f. 1-6-1994).
4541.
4547. Ins. by Act 28 of 2016, S. 107 (w.e.f. 1-6-2016).

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4549. Ins. by Act 14 of 2001, S. 94 (w.e.f. 1-4-2002).
4550.
Ins. by Act 14 of 2001, S. 94 (w.e.f. 1-4-2002).
4551.
Ins. by Act 22 of 1990 (12 of 1990), S. 50 (w.e.f. 1-4-1990).
4552. Subs. for “Section 271-C” by Act 21 of 2006, Section 55 (w.e.f. 1-4-2007).
4553.
Ins. by Act 26 of 1997, S. 55 (w.e.f. 1-4-1997).
4556.
Subs. for “Section 271-FB, Section 271-G” by Act 20 of 2015, S. 77(I) (w.e.f. 1-4-
2016).
4557. Ins. by Act 28 of 2016, S. 108 (w.e.f. 1-4-2017).
4558.
4559.
Ins. by Act 20 of 2015, S. 77(II) (w.e.f. 1-6-2015).
4560. Ins. by Act 7 of 2017, S. 88 (w.e.f. 1-4-2017).
4562.
Subs. for “sub-section (1) of Section 272-BB” by Act 21 of 2006, Section 55 (w.e.f. 1-6-
2006).
4563.
Ins. by Act 12 of 2020, S. 102 (w.e.f. 1-4-2020).
4564. Subs. for “Assessing Officer and the assessee in the course of proceedings” by Act 38 of
2020, S. 4(XXXVIII) (w.e.f. 1-4-2020).
4565.
1-10-1998).
4568.
Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 122(a) (w.e.f. 1-4-2023).
4569. Ins. by Act 10 of 2000, S. 70 (w.e.f. 1-6-2000).
4570.
Ins. by Act 10 of 2000, S. 70 (w.e.f. 1-6-2000).
4571.
4572. Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 122(a) (w.e.f. 1-4-2023).
4573.
4574.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
4577.
4580.
4582.
4583.
4584. Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 122(a) (w.e.f. 1-4-2023).
4586.
Subs. for “the Commissioner (Appeals)” by Act 8 of 2023, S. 122(a) (w.e.f. 1-4-2023).
4587.
4589.
4590. Subs. for “to the Commissioner (Appeals)” by Act 8 of 2023, S. 122(b) (w.e.f. 1-4-2023).
4592.
Subs. for “to the Commissioner (Appeals)” by Act 8 of 2023, S. 122(b) (w.e.f. 1-4-2023).
4593.
4594.
4595.
Ins. by Act 12 of 1990, S. 47 (w.e.f. 1-4-1990).
4596. Ins. by Act 20 of 2002, S. 107 (w.e.f. 1-6-2002).
4597. Ins. by Act 8 of 2023, S. 123 (w.e.f. 1-4-2023).
4600. The word “pay to the credit of the Central Government” omitted by Act 8 of 2023, S.
124(A) (w.e.f. 1-4-2023).
4601. Subs. for “the tax deducted” by Act 8 of 2023, S. 124(B) (w.e.f. 1-4-2023).
4602. Subs. by Act 8 of 2023, S. 124(C) (w.e.f. 1-4-2023). Prior to substitution it read as:
-----------------------------------------------------------------------------------------------------------------------------------------------------------
“(b) the tax payable by him, as required by or under,—
(i) sub-section (2) of Section 115-O; or
(ii) the [* * *] proviso to Section 194-B,”
4603. Ins. by Act 8 of 2023, S. 124(D) (w.e.f. 1-7-2023).
4604. Subs. for “or inposable” by Act 28 of 2016, S. 109(a) (w.e.f. 1-4-2017).
4605.
Subs. for “amount sought to be evaded” by Act 28 of 2016, S. 109(b) (w.e.f. 1-4-2017).
4607.
Subs. for “three years” by Act 23 of 2012, Section 106 (w.e.f. 1-7-2012).
4608. Subs. for “three years” by Act 23 of 2012, Section 106 (w.e.f. 1-7-2012).
4611. Subs. for “one hundred thousand rupees” by Act 23 of 2012, Section 107(a) (w.e.f. 1-7-
2012).
4612. Subs. for “three years” by Act 23 of 2012, Section 107(b) (w.e.f. 1-7-2012)
4616. Ins. by Act 14 of 1997, S. 10 (w.e.f 1-1-1997).
4617. Subs. for “or with fine equal to a sum calculated at a rate which shall not be less than
four rupees or more 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).
4620. Subs. by Act 23 of 2012, Section 108(a) (w.e.f. 1-7-2012).
4621. Subs. for “three years” by Act 23 of 2012, Section 108(b) (w.e.f. 1-7-2012).
4623. Subs. for “three years” by Act 23 of 2012, Section 109 (w.e.f. 1-7-2012).
4625. Subs. for “one hundred thousand rupees” by Act 23 of 2012, Section 110(a) (w.e.f. 1-7-
2012).
-----------------------------------------------------------------------------------------------------------------------------------------------------------
4626. Subs. for “three years” by Act 23 of 2012, Section 110(b) (w.e.f. 1-7-2012).
4633.
4637.
4640. Sub-section (1) Subs. for the existing sub-section (1) by Act 49 of 1991, S. 70 (w.e.f. 1
-10-1991).
4641. Ins. by Act 20 of 2002, S. 108 (w.e.f. 1-6-2002).
4644.
Subs. for “or Commissioner (Appeals)” by Act 8 of 2023, S. 125 (w.e.f. 1-4-2023).
4647.
Ins. by Act 28 of 2016, S. 110 (w.e.f. 1-4-2017).
4648. Subs. for existing sub-section (2) by Act 49 of 1991 (w.e.f. 1-4-1991).
4650.
4651. Ins. by Act 49 of 1991, S. 70 (w.r.e.f 1-4-1962).
4652. Ins. by Act 38 of 2020, S. 4(XXXIX) (w.e.f. 1-11-2020).
4653.
-----------------------------------------------------------------------------------------------------------------------------------------------------------
4655.
4656.
4657. Ins. by Act 13 of 2021, S. 88 (w.e.f. 1-4-2021).
4658. Subs. by Act 26 of 1997, S. 57 (w.r.e.f. 1-10-1996).
4659.
4662.
Subs. for “Director” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
4663.
Omitted by Act 28 of 2016, S. 111(a) (w.e.f. 1-6-2016).
4664. Subs. by Act 26 of 1997, S. 57 (w.r.e.f. 1-10-1996).
4665.
4667.
4668.
Subs. for “Director” by Act 25 of 2014, S. 4 (w.r.e.f. 1-6-2013).
4669.
Subs. for “two years” by Act 25 of 2014, S. 75(i) (w.e.f. 1-10-2014).
4670.
Omitted by Act 25 of 2014, S. 75(ii) (w.e.f. 1-10-2014).
4671.
4674.
4675.
Subs. for “signed in manuscript by that authority” by Act 28 of 2016, S. 112 (w.e.f. 1-6-
2016).
4677.
4678. Ins. by Act 20 of 2015, S. 78 (w.e.f. 1-4-2016).
4679. Subs. by Finance Act 6 of 2022, S. 85 (w.e.f. 1-4-2022). Prior to substitution it read as:
“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 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.”
4682.
4683.
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).
4684. Ins. by Act 12 of 2020, S. 103 (w.e.f. 1-6-2020).
4685.
Ins. by Act 28 of 2016, S. 113 (w.e.f. 1-4-2017).
4686.
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).
4688.
Ins. by Act 13 of 2018, S. 55(c )(i) (w.r.e.f. 1-4-2017).
4689. Ins by Act 13 of 2018, S. 55(c )(ii) (w.r.e.f. 1-4-2017).
4690. Relettered by Act 13 of 2018, S. 55(c )(ii) (w.r.e.f. 1-4-2017).
4691. Subs. for “in the said sub-section” by Act 13 of 2018, S. 55(d)(i) (w.r.e.f. 1-4-2017).
4692.
Subs. for “entities” by Act 13 of 2018, S. 55(d)(ii) (w.r.e.f. 1-4-2017).
4693. The words “or alternate reporting entity” omitted by Act 23 of 2019, S. 68 (w.r.e.f. 1-4-
2017).
4694. Subs. by Act 13 of 2018, S. 55(e)(A) (w.r.e.f. 1-4-2017).
4695. Subs. for “clause (i) or clause (ii)” by Act 13 of 2018, S. 55(e)(B) (w.r.e.f. 1-4-2017).
4696. Subs. for “clause (i) or clause (ii)” by Act 13 of 2018, S. 55(e)(C) (w.r.e.f. 1-4-2017).
4697. Subs. for “sub-section (2)” by Act 13 of 2018, S. 55(e)(D) (w.r.e.f. 1-4-2017).
4698. Subs. for “to the Commissioner (Appeals)” by Act 8 of 2023, S. 126 (w.e.f. 1-4-2023).
4699. Ins. by Act 12 of 2020, S. 104 (w.e.f. 1-4-2020).

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4701. Ins. by Act 28 of 2016, S. 114 (w.e.f. 1-4-2017).
4702. Subs. by Act 20 of 2015, S. 79(ii) (w.e.f. 1-6-2015).
4704. Subs. by Act 29 of 2006, Section 19.
4707. Renumbered as sub-section (1) by Act 18 of 2008, Section 57 (w.r.e.f. 1-4-2008).
4708.
4711. Ins. by Act 22 of 1995, S. 49 (w.e.f. 1-4-1993).
4712.
4714. Ins. by Act 38 of 2020, S. 4(XXXX) (w.e.f. 1-11-2020).
4718.
Clause (ee) renumbered as clause (e) by Act 17 of 2013, Section 59(i) (w.e.f. 1-4-
2016).
4719.
Ins. by Act 17 of 2013, Section 59(i) (w.e.f. 1-4-2016).
4722. Ins. by Act 17 of 2013, Section 59(ii) (w.e.f. 1-4-2016).
4724. Ins. by Act 20 of 2015, S. 80 (w.e.f. 1-6-2015).
4725. Subs. for “for the Commissioner (Appeals)” by Act 8 of 2023, S. 127(ii) (w.e.f. 1-4-
2023).
4726. Ins. by Act 32 of 1994 (w.e.f. 1-6-1994).

-----------------------------------------------------------------------------------------------------------------------------------------------------------
4728.
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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Page 1 Tuesday, August 08, 2023

The Income Tax Act, 1961 (Contd.)

151. Sanction for issue of notice

151-A. Faceless assessment of income escaping assessment

152. Other provisions

153. Time limit for completion of assessment, reassessment and

153-A. Assessment in case of search or requisition

153-B. Time limit for completion of assessment under Section 153-A

153-C. Assessment of income of any other person

153-D. Prior approval necessary for assessment in cases or requisition

154. Rectification of mistake

155. Other amendments

156. Notice of demand

156-A. Modification and revision of notice in certain cases

157. Intimation of loss

157-A. Faceless rectification, amendments and issuance of notice or

158. Intimation of assessment of firm

158-A. Procedure when assessee claims identical question of law is

158-AA. Procedure when in an appeal by revenue an identical question

158-AB. Procedure where an identical question of law is pending before

High Courts or Supreme Court

158-BA. Assessment of undisclosed income as a result of search

158-BB. Computation of undisclosed income of the block period

158-BC. Procedure for block assessment

158-BD. Undisclosed income of any other person

158-BE. Time limit for completion of block assessment

158-BF. Certain interests and penalties not to be levied or imposed

158-BFA. Levy of interest and penalty in certain cases

158-BG. Authority competent to make the block assessment

158-BH. Application of other provisions of this Act

158-BI. Chapter not to apply after certain date

159. Legal representatives

160. Representative assessee

161. Liability of representative assessee

162. Right of representative assessee to recover tax paid

163. Who may be regarded as agent

164. Charge of tax where share of beneficiaries unknown

164-A. Charge of tax in case of oral trust

165. Case where part of trust income is chargeable

166. Direct assessment or recovery not barred

167. Remedies against property in cases of representative assessees

167-A. Charge of tax in the case of a firm

167-B. Charge of tax where shares of members in association of

167-C. Liability of partners of limited liability partnership in liquidation

169. Right of executor to recover tax paid

170. Succession to business otherwise than on death

170-A. Effect of order of tribunal or court in respect of business

171. Assessment after partition of a Hindu undivided family

172. Shipping business of non-residents

173. Recovery of tax in respect of non-resident from his assets

174. Assessment of persons leaving India

174-A. Assessment of association of persons or body of individuals or

175. Assessment of persons likely to transfer property to avoid tax

176. Discontinued business

177. Association dissolved or business discontinued

178. Company in liquidation

179. Liability of directors of private company [* * *]

180. Royalties or copyright fees for literary or artistic work

180-A. Consideration for know-how

182. Assessment of registered firms

183. Assessment of unregistered firms

184. Assessment as a firm

185. Assessment when Section 184 not complied with