Tax Ready Reckoner

Section 293D empowers the Central Government to implement a faceless (digital) scheme for granting approvals or registrations under the Income Tax Act, aiming to enhance efficiency, transparency, and accountability. Here’s a detailed breakdown: 1. Key Features of the Scheme The faceless approval/registration scheme is designed to: Eliminate Physical Interface: Minimize direct interaction between taxpayers and tax authorities through digital […]

1. Overview Section 293C of the Income Tax Act, 1961 empowers the Central Government to withdraw approvals granted to: Institutions Funds Trusts Any other entities that were previously approved under various sections of the Act (e.g., Sections 10(23C), 12AA, 35, etc.). 2. Grounds for Withdrawal Approval may be withdrawn if: The entity violates conditionsof approval Engages in activities contrary

Section 293B of the Income Tax Act, 1961, empowers the Central Board of Direct Taxes (CBDT) to condone delays in obtaining approvals for certain tax-related actions. This provision ensures that procedural delays do not invalidate otherwise valid tax proceedings. 1. When Does Section 293B Apply? This section covers delays in obtaining approvals for: ✅ Reopening of Assessments (Section 147/148) ✅ Search &

Section 285BB of the Income Tax Act, 1961, mandates the Income Tax Department to provide taxpayers with an Annual Information Statement (AIS), a comprehensive summary of their financial transactions. Introduced in 2020, AIS replaces the older Form 26AS and includes expanded details to improve tax transparency and compliance. 1. What is AIS? AIS is a consolidated financial statementthat includes:

Section 285BA of the Income Tax Act, 1961, mandates specified entities to report high-value financial transactions to the tax authorities. This helps curb tax evasion and ensures transparency. Below are the key provisions: 1. Who Must File? The following “specified persons” must report transactions: Banks & Co-operative Banks(cash deposits, withdrawals, credit card payments) . Post Offices(time deposits ≥ ₹10 lakh) .

Section 285B of the Income Tax Act, 1961, mandates producers of cinematograph films and persons engaged in specified activities to submit detailed statements of payments exceeding ₹50,000. Rule 121A prescribes the procedural framework for compliance. 1. Who Must File? Producers of cinematograph films(movies, documentaries, etc.). Persons engaged in specified activities, including: Event management Sports event management Documentary production Production

Section 292B of the Income Tax Act, 1961, protects income tax proceedings from being invalidated due to technical or procedural defects, provided they are substantially compliant with the Act’s intent. Key Provisions of Section 292B Protection from Technical Defects: No return, assessment, notice, summons, or proceedingshall be invalid merely due to: Mistake(e.g., wrong section quoted). Defect(e.g., unsigned notice). Omission(e.g.,

1. What is Section 282A? Section 282A mandates proper authentication of all income tax notices, orders, and documents to ensure they are legally valid. This prevents fraudulent or unauthorized communications. 2. Authentication Requirements For a notice/document to be valid, it must: ✅ Bear Digital Signature (DSC) of the issuing officer OR ✅ Contain a Unique Document Identification Number (DIN) OR

Section 284 of the Income Tax Act, 1961, governs how notices, orders, or summons must be served when a business is discontinued. This ensures tax authorities can still pursue pending assessments, recovery, or penalties even after a business shuts down. 1. Who Can Be Served the Notice? Notices must be issued to: The person who was running the

Section 283 of the Income Tax Act, 1961, provides special rules for serving notices when: A Hindu Undivided Family (HUF)is partitioned, A firm/LLP/companyis dissolved, or A taxpayer dies, leaving legal heirs. 1. Notice to Disrupted HUF (After Partition) If an HUF is partitioned, the notice must be served to: The last known Karta(if alive), or All adult membersof the former HUF. Proof of Partition: Requires