2.CA Final DT Amendments For May 2022 Exam Part 2 Kedar

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Direct Tax by CA Kedar Junnarkar
CA Final Direct Taxes and International Taxation Amendments for May 2022
Exam (Paper 7 / 6C) – Part 2
Amendments as per Finance Act 2021, Notifications / Circulars issued between 1.5.2021 to 31.10.2021
TDS and TCS
Circular 13/2021: Cross application of section 194-O, section 206C(1H) and section 194Q
1) If tax has been deducted by ECO on a transaction Transaction shall not be subjected to tax
under section 194-O or transactions on which tax is deduction under section 194Q
not deducted on account of monetary limit
2) ECO has deducted tax at source on that transaction TCS under section 206C(1H) is not required
of sale of goods by seller to buyer through ECO
3) Transaction falls within the purview of section 194-O TDS under section 194-O is required and not
as well as section 194Q (Purchase of goods through 194Q
ECO)
TDS under section 194-O is required and TCS
4) Transaction falls within the purview of section 194-O under section 206C(1H) is not required. Even if
as well as section 206C(1H) (Sale of goods through tax is collected by seller, still ECO has to deduct
ECO) tax as TDS rate is higher than TCS rate.
TDS under section 194Q is required and TCS
5) Transaction falls within the purview of section 194Q under section 206C(1H) is not required. If tax is
as well as section 206C(1H) collected by seller before TDS, TDS under
section 194Q would not be required
PAN, Return of Income and Assessment Procedure
Due dates for filing Returns

30th November of AY 31st October of AY 31st July of AY
• Assessee who is required • a company
to submit Transfer Pricing • a person (other than a company) whose accounts in the case of
Report (Form 3CEB) are required to be audited under the Income-tax any other
• Partners of such firm or Act, 1961 or any other law in force assessee
spouse of such partner • a partner of a firm whose accounts are required to
(if the provisions of be audited under the Income-tax Act, 1961 or any
section 5A applies to other law
such spouse) (w.e.f. • spouse of such partner if the provisions of
1.4.2021) section 5A (Portuguese Civil Code) applies to
such spouse (w.e.f. 1.4.2021)
Section 234F: Fees for default in furnishing Return of Income

Where a person required to furnish a return of income under section 139, fails to do so within the time
prescribed in 139(1), he shall pay, by way of fee, a sum of Rs. 5,000. (changed w.e.f. 1.4.2021)
If total income of the person does not exceed Rs. 5,00,000, the fee payable shall not exceed Rs. 1,000.
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Types of Returns
Sec 139(4): Belated Return Sec 139(5): Revised Return
Any person who has not furnished a return within If person who has furnished areturn u/s 139(1) or
time allowed under section 139(1) may furnish the 139(4) discovers any omission or wrong
return statement therein, he may furnish revised return
Time Limit to file such return: 3 months prior to end of the relevant assessment year (31st December of
AY) or before the completion of the assessment whichever is earlier
Note
Board may, by notification in the Official Gazette, specify that any of the conditions specified above
shall not apply to such class of assessees or shall apply with such modifications, as may be specified in
such notification. (w.e.f. 1.4.2021)
Return to be filed after Notice u/s 142(1)

• For making an assessment, AO may serve Notice to furnish ROI on any person who has not made a
return u/s 139 or if time allowed u/s 139(1) has expired.
• Such notice may also be served by the prescribed income-tax authority i.e. income-tax authority
not below the rank of Income-tax Officer who has been authorised by the CBDT to act as such
authority for such purposes. (w.e.f. 1.4.2021)
• ROI to be furnished even if income is below taxable limit.
Rule 12AA: Prescribed person for Company or LLP for verification of Return
Person, appointed by the Adjudicating Authority as per Insolvency and Bankruptcy Code for discharging the
duties and functions of an interim resolution professional, a resolution professional, or a liquidator under the
Insolvency and Bankruptcy Code, 2016 and the rules and regulations made thereunder.
Section 143(1): Scheme of Processing of Returns (Highlighted points changed w.e.f. 1.4.2021)
If Return has been filed u/s 139 or in response to notice u/s 142(1), such return shall be processed as follows
• Total Income or Loss shall be computed after making following adjustments
• Arithmetical Error in Return (Manual • Disallowance of loss if return of the year for
Returns) which set off of loss is claimed was furnished
• Incorrect Claim apparent from any beyond due date specified u/s 139(1)
information in the return i.e. • Disallowance of expenditure or increase in
a) Claim on the basis of entry inconsistent income indicated in the audit report but not
with another entry in such Return taken into account in computing the total
b) Information required to be furnished income in the return
to substantiate such entry has not been • Disallowance of deduction claimed u/s 10AA or
so furnished under Chapter VI-A in respect of certain
c) Deduction exceeds statutory limit: incomes if the return is furnished beyond the
monetary amount or % or ratio or due date specified u/s section 139
fraction • Addition of Income appearing in Form 26AS or
16A or 16 not been included in return

Scrutiny Assessment (Time limits changed w.e.f. 1.4.2021)
Section143(2): Notice to make scrutiny Section 143(3): Scrutiny Completion of
assessment u/s 143(3) Assessment Assessment
If return has been furnished u/s 139, or On the day specified in the notice Section 153(1)
142(1), AO or the prescribed income-tax issued or as soon afterwards, after 9 months from the
authority considers it necessary to ensure hearing evidence as the assessee end of the
that assessee has not understated income may produce and such other assessment year in
or has not computed excessive loss or not evidence as the Assessing Officer which the income
under-paid the tax, shall serve a notice may require on specified points, and was first assessable.
requiring him to attend the office or to after taking into account all relevant In case if reference is
produce any evidence on which the material which he has gathered, the made u/s 92CA to
assessee may rely in support of the return AO shall make an assessment and Transfer Pricing
Time limit to serve the notice: 3 determine the sum payable by him Officer, the time limit
months from the end of the financial year or refund of any amount due to him shall be increased by
in which return is filed. on the basis of such assessment. 12 months.
Section 153(1): Time limit for completion of assessments u/s 144 (Time limit changed w.e.f. 1.4.2021)
9 months from the end of the assessment year in which the income was first assessable. In case if
reference is made u/s 92CA to Transfer Pricing Officer, the time limit shall be increased by 12 months.
CA Final Regular Video Lectures (by CA Kedar Junnarkar

for May / Nov 2022 and May / Nov 2023 Exam (Google Drive Version)
Videos 2 Views and 1 1.5 Views and 6
Year Validity months Validity
CA Final DT / International Taxation Regular - Paper 7 9,000 8,000
CA Final IDT Regular - Paper 8 9,000 8,000
CA Final DT / International Taxation - Paper 7 and 6C 9,500 8,500
CA Final International Taxation – Paper 6C 6,000 5,000
CA Final DT and IDT Regular Combo (Paper 7 and 8) 12,500 11,500

CA Final DT / International Taxation & IDT Combo (Paper 7, 6C and 8) 13,000 12,000
Note
1) Video Lectures as well as Updated Books (e-books and physical books) will be provided.
2) Above Prices are for Google Drive Version. In case student wants Pendrive, additional cost of Pendrive,
Processing would be charged.
3) Students who have exam in 2023 can opt for these Videos. Amendment Notes and Videos will be
provided later free of cost.
Section 234H: Fee for default relating to intimation of Aadhaar number (w.e.f. 1.4.2021)
Without prejudice to the provisions of this Act, where a person is required to intimate his Aadhaar number
under section 139AA(2) and such person fails to do so on or before prescribed date, he shall be liable to pay
such fee, as may be prescribed, not exceeding Rs. 1,000 at the time of making intimation under section
139AA(2) after the said date.

Pre-filling of Return of Income (w.e.f. 12.3.2021)
For the purposes of pre-filling the return of income, a statement of financial transaction u/s 285BA of the Act
containing following information shall be furnished by the persons mentioned
Capital gains on transfer of a. Recognised Stock Exchange
listed securities (listed on stock b. depository as per Depositories Act, 1996
exchange in India) or units of c. Recognised Clearing Corporation
Mutual Funds (referred to in d. Registrar to an issue and share transfer agent registered under SEBI
section 10(23D)) Act
Dividend income A company
a. A banking company or a co-operative bank to which the Banking
Interest income Regulation Act, 1949 applies
b. Post Master General as per Indian Post Office Act, 1898
c. Non-banking financial company which holds a certificate of
registration under section 45-IA of the Reserve Bank of India Act to
hold or accept deposit from public
Section 147: Income escaping assessment (Changed w.e.f. 1.4.2021)

• If any income chargeable to tax, in the case of an assessee, has escaped assessment for any assessment
year, AO may, subject to the provisions of sections 148 to 153, assess or reassess such income or
recompute the loss or the depreciation allowance or any other allowance or deduction for such
assessment year.
• AO may assess or reassess the income in respect of any issue, which has escaped assessment, and such
issue comes to his notice subsequently in the course of the proceedings under this section, irrespective
of the fact that the provisions of section 148A have not been complied with.
Section 151: Sanction for issue of notice – Specified authority for section 148 / 148A
If 3 years or less than 3 years have If more than 3 years have elapsed from the end of the
elapsed from the end of relevant AY relevant assessment year
Principal Commissioner or Principal Principal Chief Commissioner or Principal Director General or
Director or Commissioner or Director where there is no Principal Chief Commissioner or Principal
Director General, Chief Commissioner or Director General
Section 148: Issue of notice where income has escaped assessment (Changed w.e.f. 1.4.2021)
• Before making the assessment, reassessment or recomputation u/s 147, and subject to the provisions of
section 148A, AO shall serve on the assessee a notice, along with a copy of the order passed, if required,
u/s 148A(d), requiring him to furnish, within period as may be specified in such notice, a return of his
income or the income of any other person in respect of which he is assessable and the provisions of this
Act shall apply as if such return were a return required to be furnished under section 139.
• No such notice shall be issued unless there is information with AO which suggests that the income
chargeable to tax has escaped assessment in the case of the assessee for the relevant assessment year
and the Assessing Officer has obtained prior approval of the specified authority (referred to in section
151) to issue such notice.
• Information with AO which suggests that income chargeable to tax has escaped assessment means
a) any information flagged in the case of the assessee for the relevant assessment year in accordance
with the risk management strategy formulated by the Board from time to time

b) any final objection raised by the Comptroller and Auditor General of India to the effect that the
assessment in the case of the assessee for the relevant assessment year has not been made in
accordance with the provisions of this Act.
• AO shall be deemed to have information which suggests that the income chargeable to tax has escaped
assessment in the case of the assessee for the 3 assessment years immediately preceding the
assessment year relevant to the previous year in which the search is initiated or books of account, other
documents or any assets are requisitioned or survey is conducted in the case of the assessee or
money, bullion, jewellery or other valuable article or thing or books of account or documents are seized
or requisitioned in case of any other person
a) a search is initiated u/s 132 or books of account, other documents or any assets are requisitioned
under section 132A, on or after 1.4.2021 in the case of the assessee or
b) AO is satisfied, with the prior approval of the Principal Commissioner or Commissioner, that any
money, bullion, jewellery or other valuable article or thing, seized or requisitioned u/s 132 or 132A in
case of any other person on or after 1.4.2021 belongs to the assessee or
c) AO is satisfied, with the prior approval of Principal Commissioner or Commissioner, that any books of
account or documents, seized or requisitioned u/s 132 or 132A in case of any other person on or
after 1.4.2021, pertains or pertain to, or any information contained therein, relate to, the assessee,
d) a survey is conducted under section 133A on or after 1.4.2021 in the case of the assessee other than
• u/s 133A(2A): TDS / TCS Survey
• u/s 133A(5): Survey after function, ceremony or event
Note:
• In case of (a), (b) and (c), provisions of section 148A will not apply. It will apply in case of (d).
• Prior to 1.4.2021, assessment relating to search and requisition was made under section 153A and 153C.
These sections are no longer applicable. Also, section 153B and 153D are also not applicable now.
Section 148A: Conducting inquiry, providing opportunity before issue of notice u/s 148 (w.e.f.
1.4.2021)
• AO shall, before issuing any notice under section 148
a) conduct any enquiry, if required, with the prior approval of specified authority (referred to in section
151) with respect to the information which suggests that the income chargeable to tax has escaped
assessment
b) provide an opportunity of being heard to the assessee, with the prior approval of specified authority,
by serving upon him a notice to show cause within such time, as may be specified in the notice, being
not less than 7 days and but not exceeding 30 days from the date on which such notice is issued,
or such time, as may be extended by him on the basis of an application made, as to why a notice
under section 148 should not be issued on the basis of information which suggests that income
chargeable to tax has escaped assessment in his case for the relevant assessment year and results of
enquiry conducted, if any, as per clause (a)
c) consider the reply of assessee furnished, if any, in response to show-cause notice as per clause (b)
d) decide, on the basis of material available on record including reply of the assessee, whether or not it
is a fit case to issue a notice under section 148, by passing an order, with the prior approval of
specified authority, within 1 month from the end of the month in which the reply referred to in
clause (c) is received by him, or where no such reply is furnished, within 1 month from the end of the
month in which time or extended time allowed to furnish a reply as per clause (b) expires

Section 149: Time limit for notice under section 148 (Changed w.e.f. 1.4.2021)
10 years from the end of AY 3 years from the end of AY
• AO has in his possession books of account or other documents or
evidence which reveal that the income chargeable to tax, represented in Other cases
the form of asset, which has escaped assessment amounts to or is likely
to amount to Rs. 50 Lakhs or more for that year
• Asset shall include immovable property, being land or building or both,
shares and securities, loans and advances, deposits in bank account.
For the purposes of computing the period of limitation as per this section, the time or extended time
allowed to the assessee, as per show-cause notice issued u/s 148A(b) or the period during which the
proceeding under section 148A is stayed by an order or injunction of any court, shall be excluded.
Where immediately after the exclusion of the period referred to above, the period of limitation available to
AO for passing an order u/s 148A(d) is less than 7 days, such remaining period shall be extended to 7 days
and the period of limitation shall be deemed to be extended accordingly.
Section 153(2): Time Limit to complete assessment or reassessment under section 147
Case Time Limit
Notice for assessment 9 months from the end of FY in which the notice under section 148
or reassessment served If reference is made u/s 92CA, the time limit shall be increased by 12 months.
Resolution of Disputes
Section 245MA: Dispute Resolution Committee

• 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.
• Specified order means such order, including draft order, as may be specified by the Board and
Aggregate sum of Such order is not based on search initiated where return has been filed by
variations proposed u/s 132 or requisition u/s 132A in the case the assessee for the assessment
or made in such of assessee or any other person or survey year relevant to such order,
order does not u/s 133A or information received under an total income as per such return
exceed Rs. 10 lakhs agreement referred to in section 90 or 90A does not exceed Rs. 50 lakhs
• Specified conditions in relation to a person means a person who fulfils the following conditions:
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
a. such order of detention, being an order to which the provisions of section 9 or 12A 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
b. such order of detention being an order to which the provisions of section 9 of the said Act
apply, has not been revoked before expiry of the time for, or on the basis of the review u/s
9(3) or on the report of the Advisory Board u/s 8, read with section 9(2) of the said Act or

c. such order of detention, being an order to which the provisions of section 12A of the said
Act apply, has not been revoked before the expiry of the time for, or on the basis of, the
first review u/s 12A(3), or on the basis of the report of the Advisory Board under section 8,
read with section 12A(6) of the said Act or
d. 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, the Unlawful Activities (Prevention) Act, 1967, the Narcotic Drugs and Psychotropic
Substances Act, 1985, the Prohibition of Benami Transactions Act, 1988, the Prevention of
Corruption Act, 1988 or the Prevention of Money Laundering Act, 2002 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.
II. such other conditions, as may be prescribed.
• 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.
• Central Government may make a scheme, by notification in the Official Gazette, for 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;
b) optimising utilisation of the resources through economies of scale and functional specialisation;
c) introducing a dispute resolution system with dynamic jurisdiction.
• The Central Government may, for the purposes of giving effect to the scheme made, 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:
• No such direction shall be issued after the 31.3.2023.
• Every notification issued shall be laid before each House of Parliament.
Interim Board for Setttlement

Income-tax Settlement Commission shall cease to operate on or after 1.2.2021. Pending applications before
Settlement commission shall be transferred to Interim Board. Alternatively, the assessee who had filed such
application to Settlement may, at his option, withdraw such application within 3 months from 1.4.2021 and
intimate the AO and the application shall be transferred to Interim Board.
Powers and functions of the Settlement Commission under this section shall be exercised or performed, by
the Interim Board.
Section 245AA: Interim Boards for Settlement

• The Central Government shall constitute one or more Interim Boards for Settlement, as may be
necessary, for the settlement of pending applications.
• 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.

• 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.
Faceless Procedure
• 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 technologically feasible
b) optimising utilisation of the resources through economies of scale and functional specialisation
c) introducing a mechanism with dynamic jurisdiction
• The Central Government may, for giving effect to the scheme made, 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. No such direction shall be issued after 31.3.2023.
• Every notification issued shall, as soon as may be after the notification is issued, be laid before each
House of Parliament.
Powers of Interim Board includes (a) power to grant immunity from penalty and prosecution (b) power to
order provisional attachment to protect revenue.
Advance Tax and Interest

Proviso to Section 234C
Interest u/s 234C shall not apply to any shortfall on account of under-estimateor failure to estimate
(a) Capital Gains
(b) Winnings from lotteries, crossword puzzles, races, horse races, card games and other games of any sort
or from gambling or betting of any form or nature
(c) Business or Professional income if it accrues or arises for the first time
(d) Dividend income including deemed dividend under section 2(22) except under section 2(22)(e)
(1.4.2021)
Assessee should pay tax as part of the remaining instalments of advance tax which are due or where no
such instalments are due, by 31st March of FY.
Section 281B: Provisional attachment to protect revenue (Highlighted point added w.e.f. 1.4.2021)
• In case of assessment of any income or income which has escaped assessment or for imposition of
penalty u/s 271AAD (False entry related) where the amount or aggregate of amounts of penalty
likely to be imposed exceeds two crore rupees, if AO is of the opinion that for protecting the interests
of the revenue, he may, with the previous approval of seniors, attach provisionally any property
belonging to the assessee in the manner provided in the Second Schedule.
• Provisional attachment shall cease to have effect after 6 months from the date of the order made.
• Seniors can extend the aforesaid period. Total period of extension shall not exceed 2 years or 60 days
after the date of order of assessment or reassessment, whichever is later.

CA Final Fast Track Video Lectures by CA Kedar Junnarkar
for May / Nov 2022 and May / Nov 2023 Exam (Google Drive Version)
Videos 2 Views and 1 1.5 Views and 6
Year Validity months Validity
CA Final DT / International Taxation Regular - Paper 7 7,000 6,000
CA Final IDT Regular - Paper 8 7,000 6,000
CA Final DT / International Taxation - Paper 7 and 6C 7,500 6,500
CA Final DT and IDT Regular Combo (Paper 7 and 8) 10,500 9,500

CA Final DT / International Taxation & IDT Combo (Paper 7, 6C and 8) 11,000 10,000
Difference between Regular and Fast Track Classes

Regular Video Lectures Fast Track Video Lectures
Coverage 100% Syllabus 100% Syllabus
Books Simplified Book and Practice Book Simplified Book and Practice
Book
Discussion on Problems Yes, Problems are discussed in Problems are for self-study; they
from Practice Book Class are not discussed
ICAI Case Studies for All are discussed in Class Not discussed in Class
Paper 7 and 8
Case Laws in DT Discussed in Class Discussed in Class
Case Study for Paper 6C 25 Case Studies are discussed in Not discussed in Class
Class
Chapter VI-A Deductions

Section 80EEA: Interest on loan taken for certain house property
• Deduction is available to an individual only.
• Interest payable on loan taken from any financial institution for acquisition of a residential house
property shall be allowed upto Rs.1,50,000 subject to following conditions
Loan sanctioned during SDV of residential house Assessee does not own any
the period from 1.4.2019 to property does not exceed residential house property on date
31.3.2022 Rs. 45 Lakhs of sanction of loan
• No deduction shall be allowed in respect of such interest under any other provision.
Section 80LA: Deduction for Offshore Banking Units and International Financial Services Centre
Scheduled bank or Foreign Unit of International Financial Services Centre 100% of Income from
Bank and having an Offshore set up in Special Economic Zone transfer of an aircraft
Banking Unit in SEZ or helicopter, which
Deduction = 100% of Deduction = 100% of income for any 10 was leased by a IFSC
income for first 5 years (from consecutive years, at the option of the unit to a person,
the year in which permission assesse, out of 15 years, from the year in subject to the
under Banking Regulation which the permission, under the Banking condition that the unit
Act or EBI Act etc was Regulation Act, 1949 or SEBI Act,1992 or has commenced
obtained) and 50% for the International Financial Services Centre operation on or before
next 5 years. Authority Act, 2019 was obtained 31.3.2024

Report from Chartered Accountant in Form No. 10CCF should be submitted along with the return of income.
A copy of permission obtained u/s 23 of the Banking Regulation Act, 1949 or permission or registration
obtained under the International Financial Services Centre Authority Act, 2019 shall be submitted along with
the return of income
Section 80-IAC: Eligible Start up

• Assessee: Eligible start-up i.e. company or LLP engaged in eligible business (innovation, development or
improvement of products or processes or services or a scalable business model with a high potential of
employment generation or wealth creation)
It is incorporated Total turnover of its business does not It holds a certificate of eligible business
from 1.4.2016 to exceed Rs. 100 crores in the previous from the Inter-Ministerial Board of
31.3.2022 year for which deduction is claimed Certification (IMBC)
• Deduction = 100% of the profits from such business for 3 years out of 10 years beginning from the year
in which the eligible start-up is incorporated.
• Conditions:
it is not formed by splitting up or reconstruction of it is not formed by transfer to a new
business already in existence business of machinery or plant previously used
Exceptions as per section 80-IB will apply
Section 80-IBA: Deductions in respect of Profits and Gains from Housing Projects
Deduction = 100% of profits derived from developing and building Housing Project
Date of Approval by Local Authority Date of completion
01/06/2016 to 31/03/2022 5 years from end of year in which project is approved
If approval is obtained more than once, it shall be deemed to have been approved on the date on which the
building plan of such housing project is first approved by the local authority.
The date of completion of construction of the housing project shall be taken to be the date on which the
completion certificate in respect of such housing project is issued by the local authority.
Location of Project Minimum Size of Residential Unit Carpet Minimum % of permissible
plot of Land Area (Max) floor area used
within Chennai, Delhi, 1000 sq. meters 30 sq. meters not less than 90%
Kolkata or Mumbai
other places 2000 sq. meters 60 sq. meters not less than 80%
The project is the only housing project on the plot of land
The carpet area of the shops and other commercial establishments included in the housing project does not
exceed 3% of the aggregate carpet area.
For Rental Housing Project (w.e.f. AY 2022-23)

• Where the gross total income of an assessee includes any profits and gains derived from the business of
developing and building rental housing project, there shall be allowed a deduction of an amount equal
to hundred per cent of the profits and gains derived from such business.
• Rental housing project means a project which is notified by the Central Government in the Official
Gazette under this clause on or before the 31st day of March, 2022 and fulfils such conditions as may be
specified in the said notification.

Exemptions under section 10
Any income accruing or arising to an institution established for financing the infrastructure and
10(48C) development, set up under an Act of Parliament and notified by the Central Government, for a
period of 10 consecutive assessment years beginning from the assessment year relevant to the
previous year in which such institution is set up
Income accruing or arising to a developmental financing institution, licensed by the Reserve Bank
of India under an Act of the Parliament referred to in section 10(48D) and notified by the Central
10(48D) Government, for a period of 5 consecutive assessment years beginning from the assessment year
relevant to the previous year in which the developmental financing institution is set up. The
Central Government may, by issuing notification under this clause, extend the period of such
exemption for a further period, not exceeding 5 more consecutive assessment years, subject to
fulfilment of such conditions as may be specified in the said notification
10(11) Payment/ Withdrawals/Interest from Statutory Provident Fund or Public Provident Fund
W.e.f. 1.4.2021
This exemption shall not apply to the income by way of interest accrued during the previous year
in the account of a person to the extent it relates to the amount or the aggregate of amounts of
contribution made by that person exceeding Rs. 2,50,000 in any previous year in that fund, on or
after 1st April, 2021 and computed as per Rule 9D.
If the contribution by such person is in a fund in which there is no contribution by the employer
of such person, the above provision will apply if the contribution made by that person exceeds
Rs. 5,00,000 in any previous year.
10(12) Accumulated to an employee in a Recognised Provident Fund (No exemption if continuous
period of service is less than 5 years subject to exceptions)
W.e.f. 1.4.2021
This exemption shall not apply to interest accrued during the previous year in the account of a
person to the extent it relates to amount or aggregate of amounts of contribution made by that
person exceeding Rs. 2,50,000 in any previous year in that fund, on or after 1st April, 2021 and
computed as per Rule 9D.
If the contribution by such person is in a fund in which there is no contribution by the employer
of such person, the above provision will apply if the contribution made by that person exceeds
Rs. 5,00,000 in any previous year.
Rule 9D: Calculation of taxable interest relating to contribution in a provident fund or recognized
provided fund, exceeding specified limit (2.5 Lacs / 5 lacs) – for section 10(11) and 10(12)
• Income by way of interest accrued during the previous year which is not exempt from inclusion in the
total income of a person shall be computed as the interest accrued during the previous year in the
taxable contribution account.
• For the purpose of calculation of taxable interest, separate accounts within the provident fund account
shall be maintained during the previous year 2021-2022 and all subsequent previous years for taxable
contribution and non-taxable contribution made by a person.
Non-Taxable Contribution Account Taxable Contribution Account
It shall be the aggregate of the following It shall be the aggregate of the following:
a) closing balance in the account as on 31st March a) contribution made by the person in a
2021 previous year in the account during the
b) any contribution made in the account during previous year 2021-2022 and subsequent
previous year 2021-2022 and subsequent previous previous years, which is in excess of
years, which is not included in the taxable threshold limit (Rs. 2.5 Lakhs / 5 Lakhs)

contribution account i.e. upto Rs. 2.5 Lakhs / 5 and
Lakhs b) interest accrued on (a) above
c) interest accrued on (a) and (b) above as reduced by the withdrawal, if any, from
as reduced by the withdrawal, if any, from such such account
account
Set off and Carry Forward of Losses
Section 72A: Carry forward of Business Loss (except Speculative Loss) and Unabsorbed Depreciation
Amalgamation (Highlighted points changed w.e.f. 1.4.2021)

This section applies where there has been an amalgamation of
Company owning an industrial undertaking or a ship or a hotel with Banking Company with
another company a specified bank(SBI)
An erstwhile public sector company with one or more company or One or more public
companies, if the share purchase agreement entered into under sector company or
strategic disinvestment restricted immediate amalgamation of the said companies with one or
public sector company and the amalgamation is carried out within 5 more public sector
year from the end of the previous year in which the restriction on company or companies
amalgamation in the share purchase agreement ends (Check Note)
Note: In case of Strategic Disinvestment

• Accumulated loss and the unabsorbed depreciation of the amalgamating company, in case of an
amalgamation which is deemed to be the loss or the allowance for unabsorbed depreciation of the
amalgamated company, shall not be more than the accumulated loss and unabsorbed depreciation of
the public sector company as on the date on which the public sector company ceases to be a public
sector company as a result of strategic disinvestment.
• Strategic disinvestment means sale of shareholding by the Central Government or any State
Government in a public sector company which results in reduction of its shareholding to below 51%
along with transfer of control to the buyer.
• Control shall have same meaning of sec 2(27) of the Companies Act, 2013 i.e. control shall include right
to appoint majority of the directors or to control the management or policy decisions exercisable by a
person or persons acting individually or in concert, directly or indirectly, including by virtue of their
shareholding or management rights or shareholders’ or voting agreements or in any other manner.
Press Release: Carry forward of losses in case of change in shareholding on strategic disinvestment
Section 79 of the Income-tax Act, 1961, shall not apply to public sector company which has become so as a
result of strategic disinvestment. Accordingly, loss incurred in any previous year prior to, and including, the
previous year of strategic disinvestment shall be carried forward and set off by the erstwhile public sector
company. The above relaxation shall cease to apply from the previous year in which the company, that was
the ultimate holding company of such erstwhile public sector company immediately after completion of the
strategic disinvestment, ceases to hold, directly or through its subsidiary or subsidiaries 51% of the voting
power of the erstwhile public sector company.

International Taxation – For Paper 7 and 6C
Residential Status and Accrual of Income

Section 6: Residence in India
To determine whether an Individual assessee is a Resident or not
Section 6(1) Section 6(1A)
Option 1 Option 2 Option 3 – Deemed Resident (Overrides Option 1/2)
He/She is in He/She is in India for Indian citizen having total income, other than the
India for a period/s amounting to income from foreign sources exceeding Rs. 15 lakhs
period/s a) 60 days or more in the during the previous year shall be deemed to be resident
amounting to PY AND in India if he is not liable to tax in any other country
182 days or b) 365 days or more during or territory by reason of his domicile or residence or
more during 4 years preceding any other criteria of similar nature. (Sec 6(1A)). He will be
the PY previous years considered as R- NOR (Resident but not ordinarily
Resident)
Section 6(1A) shall not shall not apply in case of an individual who is said to be resident in India in the
previous year under section 6(1).
Section 2(29A): Liable to tax, in relation to a person and with reference to a country, means that there is an
income-tax liability on such person under the law of that country for the time being in force and shall
include a person who has subsequently been exempted from such liability under the law of that country
(w.e.f. 1.4.2021) It implies that if as per DTAA, Income is taxable in foreign country but exempt as per
taxation laws of that country, it will deemed that such Indian citizen is liable to tax in such country for section
6(1A).
Income from Business Connection
Explanation 1 to section 9(1)(i)

In case of business, other than the business having business connection in India on account of
significant economic presence, operations of which are not carried out in India, the income of the business
deemed to accrue or arise in India shall be only such part of income as is reasonably attributable to the
operations carried out in India. (w.e.f. AY 2022-23)
Explanation 2A to Section 9(1): Significant Economic Presence (w.e.f. AY 2022-23)

Significant Economic Presence of non-resident in India shall constitute “business connection” in India
Nature of transaction Conditions as per Rule 11UD
Transaction for goods, services or property carried out by NR Aggregate payments from
inIndia / provision of download of data or software in India transaction/s exceeds Rs. 2 crores
Systematic and Continuous Soliciting of business activities Users should be 3 Lakhs or more
or engaging in interaction with users in India through digital
means
Transactions or activities shall constitute significant economic presence in India, whether or not
agreement for such transactions non-resident has a residence or non-resident renders services in
or activities is entered in India place of business in India India
Only Income as is attributable to such transactions or activities shall be deemed to accrue or arise in India.
(Explanation 3) CBDT may make rules to determine the manner in which such income will be calculated.

Section 9A
The Central Government may, by notification in the Official Gazette, specify that any one or more of
the conditions shall not apply or shall apply with such modifications, as may be specified in such
notification, in case of an eligible investment fund and its eligible fund manager, if such fund
manager is located in an International Financial Services Centre, as defined in section 80LA i.e. IFSC
set up in SEZ and has commenced its operations on or before 31.3 2024. (w.e.f. 1.4.2021)
Special Provisions for Non Residents and Foreign Companies
Section 10(4E): Any income accrued or arisen to, or received by a non-resident as a result of transfer of non-
deliverable forward contracts entered into with an offshore banking unit of an International Financial
Services Centre as referred to in section 80LA, which fulfils prescribed conditions (w.e.f. AY 2022-23)
Section 10(4F): Any income of a non-resident by way of royalty or interest, on account of lease of an aircraft
in a previous year, paid by a unit of an International Financial Services Centre as referred to in section 80LA, if
the unit has commenced its operations on or before 31.3.2024.
Aircraft means an aircraft or a helicopter, or an engine of an aircraft or a helicopter, or any part thereof
(w.e.f. AY 2022-23)
Global Depository Receipts (Same definition for Section 115AC and 115ACA)
It means any instrument in the form of a depository receipt or certificate created by the Overseas Depository
Bank outside India or in an International Financial Services Centre and issued to non-resident investors
against the issue of
a) ordinary shares of issuing company, being a company listed on a recognised stock exchange in India
b) foreign currency convertible bonds of issuing company GDRs should be issued against
initial issue of shares of an shares of a public sector company existing shares of an Indian
Indian company sold by the Government company
purchased by him in foreign currency through approved intermediary
c) ordinary shares of issuing company, being a company incorporated outside India, if such
depository receipt or certificate is listed and traded on any International Financial Services Centre.
Section 47(viiab): No Capital Gains will arise in the hands of Non-Resident on following assets transferred
on on a recognised stock exchange located in any International Financial Services Centre and where the
consideration for such transaction is paid or payable in foreign currency
• Foreign Currency Convertible Bonds or Global Depository Receipts as per section 115AC
• Rupee denominated bond of Indian company
• Derivative
• Other notified Securities (Not. 16/2020)
Notification no. 16/2020: Notified Securities

Foreign Currency Unit of a (a) Mutual Fund or (b) Business Foreign Currency Denominated Equity
Denominated Bond Trust or (c) Alternative Investment Fund Share of a company

Section 10(4D): Following Income of a specified fund is exempt
1) Income from transfer of capital asset referred to section 47(viiab), on a recognized stock exchange
located in IFSC and where the consideration is paid or payable in convertible foreign exchange
2) Income from transfer of securities (other than shares in a company resident in India)
3) Income from securities issued by a non-resident (not being a permanent establishment of a non-
resident in India) and where such income otherwise does not accrue or arise in India
4) Income from a securitisation trust which is chargeable under the head PGBP
to the extent such it is attributable to units held by non-resident (not being the permanent establishment of
a non-resident in India) or is attributable to the investment division of offshore banking unit computed
in the prescribed manner i.e. as per Rule 21AI.
Investment division of offshore banking unit means an investment division of a banking unit of a non-
resident located in an International Financial Services Centre, as referred to in section 80LA and which has
commenced its operations on or before 31.3.2024.
Specified fund means

1) fund established or incorporated in India in the form of a trust or company or a LLP or a body corporate
a) which has been granted a certificate of registration as a Category III Alternative Investment Fund
and is regulated under SEBI (Alternative Investment Fund) Regulations, 2012 or International
Financial Services Centre Authority Act, 2019
b) which is located in International Financial Services Centre
c) of which all the units other than unit held by a sponsor or manager are held by non- residents or
2) Investment Division of an offshore banking unit, which has been
a) granted a certificate of registration as a Category-I foreign portfolio investor under the Securities
and Exchange Board of India (Foreign Portfolio Investors) Regulations, 2019 made under the SEBI
Act, 1992 and which has commenced its operations on or before 31.3.2024 and
b) fulfils such conditions including maintenance of separate accounts for its investment division, as
may be prescribed.
Rule 21AI: Computation of exempt income of specified fund for section 10(4D) (w.e.f. 9.8.2021)
For the purpose of section 10(4D), income attributable to units held by non-resident (not being the PE of a
non-resident in India) in a specified fund shall be computed in accordance with the following formula:
Income exempt under section 10(4D) = A*C1 + B*C2 +D*FI+E*F2, where
Capital Gains under section 47(viiab) of a specified fund on transfer on a recognised stock exchange
A located in any International Financial Services Centre and where the consideration for such
transaction is paid or payable in convertible foreign exchange
B Any income accrued or arisen to, or received by a specified fund as a result of transfer of securities
(other than shares in a company resident in India)
Ratio of the aggregate of daily ‘assets under management’ of the specified fund held by non-
C1 resident unit holders (not being PE of a non-resident in India) to the aggregate of daily total ‘assets
under management’ of the specified fund, from the date of acquisition of the capital asset referred
to in 47(viiab) to the date of transfer of such capital asset
C2 resident unit holders (not being the PE of a non-resident in India) to the aggregate of daily total
‘assets under management’ of the specified fund, from the date of acquisition of the security (other
than shares in a company resident in India) to the date of transfer of such security
Income accrued or arisen to, or received by specified fund from securities issued by a non-resident

D (not being a PE in India) and if such income otherwise does not accrue or arise in India
E Income accrued or arisen to, or received by a specified fund from a securitisation trust which is
chargeable under the head "profits and gains of business or profession"
Ratio of the ‘assets under management’ in the specified fund held by non-resident unit holders (not
being PE of a non-resident in India) to the total ‘asset under management’ of the specified fund, as
F1 on the date of receipt of such income from securities issued by a non-resident (not being a PE of a
non-resident in India) and where such income otherwise does not accrue or arise in India
Ratio of the ‘assets under management’ in the specified fund held by non-resident unit holders (not
F2 being the PE of a non-resident in India) to the total ‘asset under management’ of the specified fund,
as on the date of receipt of such income from a securitisation trust which is chargeable under the
head "profits and gains of business or profession
Assets under management means closing balance of the value of assets or investments of the specified fund
as on a particular date. Specified fund shall furnish an annual statement of exempt income in Form No. 10IG.
For Foreign Institutional Investors (FII) and Specified Fund (SF)

Section 115AD: Income - For FII as well as SF Tax Rate ROI TDS
exemption
LTCG on sale of securities by FII / FPI registered under SEBI or 10% No No TDS
Specified Fund (Category III AIF located in IFSC)
LTCG on securities specified u/s 112A (in excess of Rs. 1 Lakh) 10% No No TDS
STCG u/s 111A by FII 15% No No TDS
STCG on sale of other securities by FII 30% No No TDS
Interest referred to in section 194LD (TDS – 5%) 5% Yes 5% u/s 194LD
Income from Securities

(Interest or Dividend received in respect of securities (other than units covered u/s 115AB)
For Foreign Institutional Investors Specified Fund (Category III Alternative
Investment Fund located on IFSC)
Tax Rate – 20%; TDS u/s 196D – 20% ** Tax Rate – 10%; TDS u/s 196D – 10%
**Where DTAA u/s 90 or 90A applies to the payee and if the payee has furnished Tax Residency
Certificate, then, tax shall be deducted at the rate of 20% or at the rate/s of income-tax provided in
such agreement for such income, whichever is lower. (w.e.f. 1.4.2021)
In case of specified fund, the provision of this section shall apply only to the extent of income that is
attributable to units held by non-resident (not being PE of a non-resident in India) calculated in the
prescribed manner i.e. as per Rule 21AJ.
Where the specified fund is investment division of an offshore banking unit, the provisions of this
section shall apply to the extent of income that is attributable to the investment division of such
banking units, referred to in section 10(4D), as a Category-I Portfolio Investor under the SEBI (Foreign
Portfolio Investors) Regulations, 2019, calculated in such manner as may be prescribed.
Rule 21AJ: Determination of income of a specified fund attributable to units held by non-residents
under section 115AD(1A) (w.e.f. 9.8.2021)
• Income of a specified fund by way of short-term or long-term capital gains, referred to in section
115AD(1)(b), attributable to the units held by non-resident (not being PE of a non-resident in India) -
A=B*C

A income attributable to the units held by non-resident (not being PE of a non-resident in India)
B income arising from transfer of the security
C resident unit holders (not being the permanent establishment of a non-resident in India) to the
aggregate of daily total ‘assets under management’ of the specified fund, from the date of
acquisition of the security to the date of transfer of such security.
• Income of a specified fund by way of income received in respect of securities, referred to in section
115AD(1)(a), attributable to the units held by non-resident (not being the permanent establishment of a
non-resident in India) shall be calculated in accordance with the following formula: X = Y*Z
X Income attributable to the units held by non-resident (not being the permanent establishment of
a non-resident in India)
Y Income received in respect of securities
Ratio of the ‘assets under management’ in the specified fund held by non-resident unit holders
Z (not being the permanent establishment of a non-resident in India) to the total ‘asset under
management’ of the specified fund, as on the date of receipt of such income.
Assets under management means the closing balance of the value of assets or investments of the
specified fund as on a particular date.
• Specified fund shall furnish annual statement of income eligible for concessional taxation in Form 10IH
Section 10(23FBC)
Any income accruing or arising to, or received by, a unit holder from a specified fund (referred to in section
10(4D)) or on transfer of units in a specified fund shall be exempt.
Section 115JEE: The provisions of AMT shall not apply to specified fund referred to in section 10(4D).
Relocation of Capital Asset by the Original Fund to the Resulting Fund

Section 47(viiac) Section 47(viiad)
Any transfer, in a relocation, of a Any transfer by a shareholder or unit holder or interest holder, in a
capital asset by the original fund relocation, of a capital asset being a share or unit or interest held by
to the resulting fund is not a him in the original fund in consideration for the share or unit or
transfer (w.e.f. AY 2022-23) interest in the resultant fund is not a transfer (w.e.f. AY 2022-23)
Cost of acquisition of the asset shall be deemed to be the cost for which the previous owner of the property
acquired it, as increased by the cost of any improvement of the assets incurred or borne by the previous
owner or the assessee.
Previous owner of the property in relation to any capital asset owned by an assessee means the last previous
owner of the capital asset who acquired it by a mode of acquisition other than those specified above.
Relocation means transfer of assets of the original fund, or of its wholly owned special purpose vehicle, to a
resultant fund on or before 31.3.2023, where consideration for such transfer is discharged in the form of
share or unit or interest in the resulting fund to
i. shareholder or unit holder or interest holder of the original fund, in the same proportion in which the
share or unit or interest was held by such shareholder or unit holder or interest holder in such original
fund, in lieu of their shares or units or interests in the original fund; or
ii. the original fund, in the same proportion as referred to above, in respect of which the share or unit or
interest is not issued by resultant fund to its shareholder or unit holder or interest holder

Original fund means a fund established or incorporated or registered outside India, which collects funds
from its members for investing it for their benefit and fulfils the following conditions:
i. the fund is not a person resident in India
ii. the fund is a resident of a country or a specified territory with which an agreement u/s 90 or 90A has
been entered into; or is established or incorporated or registered in a country or a specified territory as
may be notified by the Central Government in this behalf
iii. the fund and its activities are subject to applicable investor protection regulations in the country or
specified territory where it is established or incorporated or is a resident and
iv. fulfils such other conditions as may be prescribed.
Resultant fund means a fund established or incorporated in India in the form of a trust or a company or a
limited liability partnership, which
i. has been granted a certificate of registration as a Category I or Category II or Category III Alternative
Investment Fund, and is regulated under the SEBI (Alternative Investment Fund) Regulations, 2012 made
under the SEBI Act, 1992 or International Financial Services Centre Authority Act, 2019 and
ii. is located in any International Financial Services Centre as referred to in section 80LA.
Section 10(23FF): Capital gains, arising or received by a non-resident or a specified fund, which is on
account of transfer of share of a company resident in India, by the resultant fund or a specified fund to the
extent attributable to units held by non-resident (not being a PE of a non-resident in India) in such manner
as may be prescribed, and such shares were transferred from the original fund, or from its wholly owned
special purpose vehicle, to the resultant fund in relocation, and where capital gains on such shares were not
chargeable to tax if that relocation had not taken place (w.e.f. AY 2022-23)
Specified fund shall have the meaning assigned to it in section 10(4D).
Provisions of section 79 will not apply if a change in voting power and shareholding takes place to
to a company to the extent that a change in the shareholding has taken place during the previous
year on account of relocation referred to in section 47(viiac) / (viiad) (w.e.f. AY 2022-23)
Books for May / Nov 2022 Exam by CA Kedar Junnarkar

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Transfer Pricing
Section 286 /Rule 10DB: Furnishing of report of international group (Country by Country Report)
These provisions shall apply in respect of an international group for an accounting year, if the total
consolidated group revenue as reflected in the consolidated financial statement (CFS) for the accounting
year preceding such accounting year is above a threshold i.e. Rs. 6,400 crores (w.e.f. 1.4.2021)
Rate of exchange - TTBR as on the last day of the accounting year.
Section 115JB(2D): Adjustment for MAT purpose in case of a Company (w.e.f. AY 2020-21)
• Where there is an increase in book profit of the previous year due to income of past year or years
included in the book profit on account of
a) an advance pricing agreement entered into by the assessee under section 92CC or
b) secondary adjustment required to be made under section 92CE
Assessing Officer shall, on an application made by the assessee, recompute the book profit of the past
year or years and tax payable, if any, by the assessee during the previous year, in such manner as
prescribed in Rule 10RB and the provisions of section 154 shall apply and the period of 4 years shall be
reckoned from the end of the financial year in which such application is received by the AO.
• These provisions shall apply only if the assessee has not utilised the credit of tax paid under this section
in any subsequent assessment year under section 115JAA.
• These provisions shall also apply to AY 2019-20 or earlier years and notwithstanding anything contained
in any other provisions of this Act, no interest shall be payable to such assessee on the refund arising on
account of the provisions of this sub-section.
Rule 10RB: Relief in tax payable u/s 115JB due to operation of section 115JB(2D) (w.e.f. 10.8.2021)
• MAT payable by the assessee company for the previous year referred to in that section, shall be reduced
by the following amount:
(A-B) – (D-C)
Tax payable u/s 115JB (MAT) on the book profit of the previous year including the past income
A A shall be deemed to be 0 if there is no MAT payable u/s 115JB on the book profit of that
previous year including the past income
Tax payable u/s 115JB (MAT) on the book profit of the previous year after reducing the book
B profit with the past income.
B shall be deemed to be zero, if there is no tax payable u/s 115JB on the book profit of that
previous year after reducing the book profit with the past income
Aggregate of tax payable u/s 115JB (MAT) on the book profit of those past year or years to
C which the past income belongs
C shall be deemed to be zero if in any past year/s, there is no tax payable u/s 115JB on the book
profit of that year/s

Aggregate of tax payable u/s 115JB (MAT) on the book profit of past year/s referred to in item C,
D after increasing the book profit with the relevant past income of such year/s
D shall be deemed to be zero if in any past year/s, there is no tax payable u/s 115JB on the book
profit of that year/s after increasing the book profit with the relevant past income of such year/s
If the value of (A-B)-(D-C) in the formula is negative, its value shall be deemed to be zero.
• Past income shall be the amount of income of past year/s included in the book profit or the previous
year on account of an advance pricing agreement entered into by the assessee under section 92CC or
on account of secondary adjustment required to be made under section 92CE.
• Tax credit allowed to the assessee under section 115JAA shall be reduced by the amount which is equal
to the amount of reduction that has been allowed as above.
Advance Ruling
Section 245-OB: Board for Advance Rulings (w.e.f. 1.9.2021)

• 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.
• 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.
Note: Boards for Advance Rulings is set up having its headquarters at

a) Board for Advance Rulings-I Delhi
b) Board for Advance Rulings-II Delhi
c) Board for Advance Rulings-III Mumbai
Section 245P: Vacancies or defect in the constitution of Board shall not invalidate proceedings.
Section 245U: Board for Advance Ruling shall have all the powers of a civil court under the Code of Civil
Procedure, 1908 as are referred to in section 131 and every proceeding before it shall be deemed to be a
judicial proceeding.
Section 245N(a): Advance Ruling means Sec 245N(b): Application

Applicant in Form
1 Determination by for transaction by a non-resident
Board applicant Transaction Non Resident 34C
2 Determination by to tax liability of a non-resident undertaken
the Authority in arising out of a transaction or Resident 34D
relation to undertaken by a resident applicant proposed to
with non-resident be
Tax liability of a resident undertaken Residents - tax
3 Determination by applicant, arising out of a liability out of 34DA
the Authority in transaction including the transaction/s
relation to determination of any question of valuing ₹ 100
law or of fact crores or more

4 Determination or issue relating to computation of Pending
decision by the total income or determination of before any Specified 34E
Authority in any question of law or of fact income-tax Residents:
respect of relating to such computation of authority Public sector
total income or ITAT company
5 Determination or whether an arrangement is an proposed to
decision by the impermissible avoidance be Resident / Non- 34EA
Authority arrangement as per Chapter X-A undertaken Resident
(GAAR)
Section 245Q: Application

An applicant desirous of obtaining an advance ruling under this Chapter shall file application in
quadruplicate with a fee-
Category of Amount of one or more transaction, entered into or proposed to be Fee
applicant undertaken, in respect of which ruling is sought
(1) / (2) / (3) as does not exceed ₹ 100 crore ₹ 2 lacs
per section exceeds ₹ 100 crore but does not exceed ₹ 300 crore. ₹ 5 lacs
245N(a) exceeds ₹ 300 crore ₹ 10 lacs
Other applicant In all cases ₹ 10,000
Any such application can be withdrawn within 30 days from the date of the application.
Note
• Authority for Advance Ruling shall cease to operate w.e.f. 1.9.2021. Applications made before such date
along with all the relevant records, documents or material 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.
• Prior to 1.9.2021, application for Advance Ruling could be made under Chapter IIIA of the Central Excise
Act, 1944 or under Chapter VA of the Finance Act, 1994 (Service Tax). Now it is not allowed.
Section 245R: Procedure

1) On receipt of an application, the Board shall 2) Board may after examining the application
forward to Principal CIT or CIT and if necessary, call and the records either allow or reject the
upon him to furnish the relevant records which application (Rejection only when opportunity
shall be returned as soon as possible. has been given to applicant of being heard)
3) If application is allowed, Board shall examine
further material and provide an opportunity to the 4) The Board shall pronounce its advance ruling
applicant of being heard, either in person or within 6 months of the receipt of application
through a duly authorised representative
Application shall not be allowed if the question raised in the application

Is already pending before any Involves relates to a transaction or issue which is
income-tax authority or Appellate determination designed prima facie for the avoidance of
Tribunal (except in the case of a of fair market income-tax except in the case of a resident
resident applicant specified above in value of any applicant specified above in Point no 4 or
Point no 4) or any court property relating to Point no 5 i.e. GAAR

Faceless Proceedings
• 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
b) optimising utilisation of the resources through economies of scale and functional specialisation
c) introducing a system with dynamic jurisdiction.
• The Central Government may, for the purposes of giving effect to the scheme made, 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.
• No such direction shall be issued after the 31st day of March, 2023.
Section 245RR: Appellate Authority not to proceed in certain cases

Where an application is made by a resident, no Income Tax Authority or the Appellate Tribunal shall
proceed to decide any issue in respect of which such an application has been made.
Note: Resident assessee cannot pursue both the remedies, i.e. an appeal or revision before Income-tax
Authority/Appellate Authority as well as an application for Advance Ruling in respect of an issue.
Section 245S: Applicability of advance ruling (not applicable w.e.f. 1.9.2021)

• Advance ruling shall be binding only on the applicant and Department. It shall not be binding if there is
a change in law or facts on the basis of which the advance ruling has been pronounced.
• Above provisions are not applicable w.e.f. 1.9.2021. Thus, Advance Ruling will not be binding on the
applicant and Department.
Section 245T: Advance ruling to be void

• If the Board finds that advance ruling has been obtained by the applicant by fraud or misrepresentation
of facts, it may by order declare such ruling to be void ab- initio.
• All the provisions of this Act shall apply (After excluding the period from the date of such advance
ruling to the date of this order) to the applicant as if such advance ruling had never been made.
Period of Limitation: Exclusions while computing period of limitation to complete assessment

From the date on which an application is made and From the date on which an application is made to
ending with the date on which the order rejecting the date on which the advance ruling
the application is received by CIT pronounced by it is received by CIT
If, after the exclusion of the aforesaid period, the period of limitation available to AO for making an order is
less than 60 days, such remaining period shall be extended to sixty days.
Section 245W: Appeal

Applicant, if he is aggrieved by any ruling pronounced or order AO, on the directions of the Principal
passed by the Board for Advance Rulings or Commissioner or Commissioner
may appeal to the High Court against such ruling or order within 60 days from the date of the
communication of that ruling or order. If the High Court is satisfied, on an application made by the appellant,
that the appellant was prevented by sufficient cause from presenting the appeal within the period specified
above, it may grant further period of 30 days for filing such appeal.

Faceless Appeals to High Court
• The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of
filing appeal to the High Court by the AO, so as to impart greater efficiency, transparency and
accountability by
a) optimising utilisation of the resources through economies of scale and functional specialisation;
b) introducing a team-based mechanism with dynamic jurisdiction.
• The Central Government may, for the purposes of giving effect to the scheme made, 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.
• No such direction shall be issued after the 31st March, 2023.

2.CA Final DT Amendments For May 2022 Exam Part 2 Kedar

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TDS and TCS

PAN, Return of Income and Assessment Procedure

Due dates for filing Returns

Section 234F: Fees for default in furnishing Return of Income

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Return to be filed after Notice u/s 142(1)

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CA Final Regular Video Lectures (by CA Kedar Junnarkar

CA Final DT and IDT Regular Combo (Paper 7 and 8) 12,500 11,500

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Section 147: Income escaping assessment (Changed w.e.f. 1.4.2021)

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Section 245MA: Dispute Resolution Committee

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Interim Board for Setttlement

Section 245AA: Interim Boards for Settlement

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Advance Tax and Interest

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CA Final DT and IDT Regular Combo (Paper 7 and 8) 10,500 9,500

Difference between Regular and Fast Track Classes

Chapter VI-A Deductions

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Section 80-IAC: Eligible Start up

For Rental Housing Project (w.e.f. AY 2022-23)

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Set off and Carry Forward of Losses

Amalgamation (Highlighted points changed w.e.f. 1.4.2021)

Note: In case of Strategic Disinvestment

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Residential Status and Accrual of Income

Explanation 1 to section 9(1)(i)

Explanation 2A to Section 9(1): Significant Economic Presence (w.e.f. AY 2022-23)

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Special Provisions for Non Residents and Foreign Companies

Notification no. 16/2020: Notified Securities

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Specified fund means

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For Foreign Institutional Investors (FII) and Specified Fund (SF)

Income from Securities

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Relocation of Capital Asset by the Original Fund to the Resulting Fund

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Books for May / Nov 2022 Exam by CA Kedar Junnarkar

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Section 245-OB: Board for Advance Rulings (w.e.f. 1.9.2021)

Note: Boards for Advance Rulings is set up having its headquarters at

Section 245N(a): Advance Ruling means Sec 245N(b): Application

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Section 245Q: Application

Section 245R: Procedure

Application shall not be allowed if the question raised in the application

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Section 245RR: Appellate Authority not to proceed in certain cases

Section 245S: Applicability of advance ruling (not applicable w.e.f. 1.9.2021)

Section 245T: Advance ruling to be void

Period of Limitation: Exclusions while computing period of limitation to complete assessment

Section 245W: Appeal